Text: H.R.2828 — 111th Congress (2009-2010)All Bill Information (Except Text)

There is one version of the bill.

Bill text available as:

Shown Here:
Introduced in House (06/11/2009)


Formatting necessary for an accurate reading of this legislative text may be shown by tags (e.g., <DELETED> or <BOLD>) or may be missing from this TXT display. For complete and accurate display of this text, see the PDF or HTML/XML.




[Congressional Bills 111th Congress]
[From the U.S. Government Printing Office]
[H.R. 2828 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 2828

  To provide the United States with a comprehensive energy package to 
place Americans on a path to a secure economic future through increased 
            energy innovation, conservation, and production.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 11, 2009

    Mr. Bishop of Utah (for himself, Mr. Akin, Mr. Alexander, Mrs. 
 Bachmann, Mr. Bonner, Mr. Boozman, Mr. Boustany, Mr. Brady of Texas, 
   Mr. Broun of Georgia, Mr. Brown of South Carolina, Mr. Burton of 
    Indiana, Mr. Carter, Mr. Cassidy, Mr. Chaffetz, Mr. Coffman of 
  Colorado, Mr. Conaway, Mr. Culberson, Ms. Fallin, Mr. Fleming, Ms. 
Foxx, Mr. Franks of Arizona, Mr. Gallegly, Mr. Gingrey of Georgia, Mr. 
  Goodlatte, Mr. Harper, Mr. Heller, Mr. Hensarling, Mr. Herger, Mr. 
Hoekstra, Mr. Hunter, Ms. Jenkins, Mr. Sam Johnson of Texas, Mr. Jordan 
 of Ohio, Mr. Lamborn, Mr. Latta, Mr. Lee of New York, Mr. Linder, Mr. 
    Lucas, Mrs. Lummis, Mr. Manzullo, Mr. Marchant, Mr. McCaul, Mr. 
  McCotter, Mr. McHenry, Mr. McKeon, Mrs. Myrick, Mr. Neugebauer, Mr. 
     Pence, Mr. Pitts, Mr. Poe of Texas, Mr. Price of Georgia, Mr. 
   Radanovich, Mr. Rehberg, Mr. Ryan of Wisconsin, Mr. Scalise, Mr. 
 Sessions, Mr. Simpson, Mr. Smith of Texas, Mr. Souder, Mr. Sullivan, 
      Mr. Thompson of Pennsylvania, Mr. Thornberry, Mr. Wamp, Mr. 
 Westmoreland, and Mr. Young of Alaska) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addition 
 to the Committees on Natural Resources, Energy and Commerce, Science 
   and Technology, Rules, and Oversight and Government Reform, 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 provide the United States with a comprehensive energy package to 
place Americans on a path to a secure economic future through increased 
            energy innovation, conservation, and production.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``American Energy 
Innovation Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                          TITLE I--INNOVATION

                    Subtitle A--Energy Independence

Sec. 1001. Sense of Congress.
    Subtitle B--Tax Exempt Financing for Qualified Renewable Energy 
                               Facilities

Sec. 1101. Special depreciation allowance for cellulosic biomass 
                            ethanol plant property.
Sec. 1102. Coal-to-liquid facilities.
Sec. 1103. Dedicated ethanol pipelines treated as 15-year property.
Sec. 1104. Credit for pollution abatement equipment.
Sec. 1105. Modifications relating to clean renewable energy bonds.
Sec. 1106. Extension of renewable energy production tax credit.
          Subtitle C--Repeal of Federal Purchasing Requirement

Sec. 1201. Repeal of Federal purchasing requirement.
                   Subtitle D--Renewable Technologies

Sec. 1301. Pilot project for developing solar energy on Federal lands.
Sec. 1302. Three-year depreciation for solar and fuel cell property.
Sec. 1303. Extension of credit for electricity produced from wind and 
                            biomass.
Sec. 1304. Nuclear, hydropower, and biomass defined as renewable.
Sec. 1305. Permanent extension of the credit for nonbusiness energy 
                            property and the credit for gas produced 
                            from biomass and for synthetic fuels 
                            produced from coal.
Sec. 1306. Algae-based fuels parity.
             Subtitle E--Rewarding Innovation in Technology

Sec. 1401. Increase in Alternative Simplified Research Credit.
Sec. 1402. Research and Experimentation Credit permanent.
Sec. 1403. Alternative Fuel Vehicle Innovation Prize.
              Subtitle F--Improve National Grid Efficiency

Sec. 1501. Income and gains from electricity transmission systems 
                            treated as qualifying income for publicly 
                            traded partnerships.
Sec. 1502. Five-year applicable recovery period for depreciation of 
                            qualified smart electric meters.
                     Subtitle G--Regulatory Burdens

Sec. 1601. Greenhouse gas regulation under Clean Air Act.
Sec. 1602. NEPA judicial review.
Sec. 1603. Repeal of 2007 amendments to renewable fuel standard.
Sec. 1604. Repeal of requirement to consult regarding impacts on global 
                            warming and polar bear population.
Sec. 1605. Light bulb choice.
Sec. 1606. Repeal of limitation of deduction for income attributable to 
                            domestic production of oil, gas, or primary 
                            products thereof.
Sec. 1607. Hydraulic fracturing.
         Subtitle H--Judicial Review Regarding Energy Projects

           Part 1--Judicial Review Regarding Energy Projects

Sec. 1701. Exclusive jurisdiction over causes and claims relating to 
                            covered energy projects.
Sec. 1702. Time for filing complaint.
Sec. 1703. District Court for the District of Columbia deadline.
Sec. 1704. Ability to seek appellate review.
Sec. 1705. Deadline for appeal to the Supreme Court.
Sec. 1706. Covered energy project defined.
Sec. 1707. Limitation on application.
                       Part 2--Permitting Reform

Sec. 1711. Purposes.
Sec. 1712. Federal Coordinator.
Sec. 1713. Regional Offices and Regional Permit Coordinators.
Sec. 1714. Reviews and actions of Federal agencies.
Sec. 1715. State coordination.
Sec. 1716. Savings provision.
Sec. 1717. Administrative and Judicial Review.
Sec. 1718. Amendments to publication process.
Sec. 1719. Alaska Offshore Continental Shelf Coordination Office.
   Subtitle I--Innovation in Carbon Capture and Clean Coal Technology

Sec. 1801. Coal-to-liquid fuel loan guarantee program.
Sec. 1802. Coal-to-liquid facilities loan program.
Sec. 1803. Allows for 7-year depreciation for power-plants that install 
                            clean coal technology or retro-fit plants 
                            for carbon sequestration technology.
Sec. 1804. Extension of 50 cent per gallon alternative fuels excise tax 
                            credit.
Sec. 1805. Provides a 20 percent investment tax credit capped at $200 
                            million total per CTL plant placed in 
                            service before 2016.
Sec. 1806. Reduces recovery period for certain energy production and 
                            distribution facilities.
Sec. 1807. DOE clean coal technology loan guarantees and direct loans.
                        Subtitle J--Natural Gas

Sec. 1901. Natural gas vehicle research, development, and demonstration 
                            projects.
Sec. 1902. Modification of alternative fuel credit.
Sec. 1903. Extension and modification of alternative fuel vehicle 
                            credit.
Sec. 1904. Allowance of vehicle and infrastructure credits against 
                            regular and minimum tax and transferability 
                            of credits.
Sec. 1905. Credit for producing vehicles fueled by natural gas or 
                            liquified natural gas.
                         TITLE II--CONSERVATION

                        Subtitle A--Conservation

Sec. 2001. Permanent extension of the credit for nonbusiness energy 
                            property, the credit for gas produced from 
                            biomass and for synthetic fuels produced 
                            from coal, and the credit for energy 
                            efficient appliances.
Sec. 2002. Extension and clarification of new energy efficient home 
                            credit.
Sec. 2003. Extension and modification of deduction for energy efficient 
                            commercial buildings.
Sec. 2004. Deduction for energy efficient low-rise buildings.
             Subtitle B--Clean Coal Alternative Transition

Sec. 2101. Carbon dioxide storage capacity assessment.
Sec. 2102. Efficiency audit and quantification.
                   Subtitle C--Natural Gas Transition

Sec. 2201. Extension of alternative vehicle credit purchase of natural 
                            gas powered vehicle from 2010 till 2020; 
                            increase in amount of credit for cars.
Sec. 2202. Extension of credit of 50 percent of the auto conversion 
                            cost to a natural gas powered automobile 
                            from gasoline or diesel powered engine and 
                            the CNG home filling station cost.
             Subtitle D--Carbon Capture and Storage Credit

Sec. 2301. Increase in carbon capture and storage tax credit.
                         TITLE III--PRODUCTION

                  Subtitle A--Outer Continental Shelf

Sec. 3001. End moratorium of oil and gas leasing in certain areas of 
                            the Gulf of Mexico.
Sec. 3002. Outer Continental Shelf directed lease sales.
Sec. 3003. Leasing program considered approved.
Sec. 3004. Outer Continental Shelf lease sales.
Sec. 3005. Restrictions on leasing of the outer Continental Shelf.
Sec. 3006. Sharing of OCS receipts with States and local governments.
                    Subtitle B--Arctic Coastal Plain

Sec. 3101. Definitions.
Sec. 3102. Leasing program for land within the Coastal Plain.
Sec. 3103. Lease sales.
Sec. 3104. Grant of leases by the Secretary.
Sec. 3105. Lease terms and conditions.
Sec. 3106. Coastal plain environmental protection.
Sec. 3107. Expedited judicial review.
Sec. 3108. Federal and State distribution of revenues.
Sec. 3109. Rights-of-way across the Coastal Plain.
Sec. 3110. Conveyance.
                   Subtitle C--Nuclear Energy Reforms

Sec. 3201. Amendments to title XVII of the Energy Policy Act 2005.
Sec. 3202. Amendments to section 638 of the Energy Policy Act of 2005.
Sec. 3203. Amendments to section 952(c) of the Energy Policy Act 2005.
Sec. 3204. Domestic manufacturing base for nuclear components and 
                            equipment.
Sec. 3205. Use of funds for recycling.
Sec. 3206. Licensing of new nuclear power plants.
Sec. 3207. Investment tax credit for investments in nuclear power 
                            facilties.
Sec. 3208. National nuclear energy council.
Sec. 3209. Temporary spent nuclear fuel storage agreements.
Sec. 3210. Implementation of temporary spent nuclear fuel storage 
                            agreements.
Sec. 3211. Expedited procedures for congressional review of temporary 
                            spent nuclear fuel storage agreements.
Sec. 3212. Contracting and nuclear waste fund.
Sec. 3213. Confidence in availability of waste disposal.
Sec. 3214. Limitation on use of funds.
 Subtitle D--Expedited Oil, Gas, and Oil Shale Leasing of Federal Lands

Sec. 3301. Expedited permitting of covered energy projects.
Sec. 3302. Waiver of laws applicable to covered energy projects.
Sec. 3303. Permitting for year-round conduct of covered energy 
                            projects.
              Subtitle E--Refining Capacity and Efficiency

Sec. 3401. Refinery revitalization repeal.
Sec. 3402. Reduction in number of boutique fuels.
Sec. 3403. Refinery permitting process.
Sec. 3404. Existing refinery permit application deadline.
Sec. 3405. Removal of additional fee for new applications for permits 
                            to drill.
                Subtitle F--Alternative Sources of Fuel

Sec. 3501. Year extension of election to expense certain refineries.
Sec. 3502. Opening of lands to oil shale leasing.
Sec. 3503. Oil shale and tar sands amendments.
Sec. 3504. Tax credit for carbon dioxide captured from industrial 
                            sources and used in enhanced oil and 
                            natural gas recovery.
             Subtitle G--Domestic Energy Impact Statements

Sec. 3601. Committee reports in House of Representatives required to 
                            include domestic energy impact statements.
Sec. 3602. Domestic energy impact statements.
                     Subtitle H--Deficit Reduction

Sec. 3701. Deficit Reduction Trust Fund.
                         TITLE IV--JOB CREATION

Sec. 4001. Sense of Congress.

                          TITLE I--INNOVATION

                    Subtitle A--Energy Independence

SEC. 1001. SENSE OF CONGRESS.

    It is the sense of Congress that the fastest way to reach energy 
independence and effectively address climate change is through 
innovation, conservation, and responsible production. Imposing a carbon 
tax or artificial regulatory mandates which promise no reduction in 
global carbon emissions will lead to the loss of millions of jobs for 
Americans. Congress must rely on the most sound and complete scientific 
evidence in order to tackle these challenges.

    Subtitle B--Tax Exempt Financing for Qualified Renewable Energy 
                               Facilities

SEC. 1101. SPECIAL DEPRECIATION ALLOWANCE FOR CELLULOSIC BIOMASS 
              ETHANOL PLANT PROPERTY.

    (a) In General.--Section 168 of the Internal Revenue Code of 1986 
(relating to accelerated cost recovery system) is amended by adding at 
the end the following:
    ``(o) Special Allowance for Cellulosic Biomass Ethanol Plant 
Property.--
            ``(1) Additional allowance.--In the case of any qualified 
        cellulosic biomass ethanol plant property--
                    ``(A) the depreciation deduction provided by 
                section 167(a) for the taxable year in which such 
                property is placed in service shall include an 
                allowance equal to 50 percent of the adjusted basis of 
                such property, and
                    ``(B) the adjusted basis of such property shall be 
                reduced by the amount of such deduction before 
                computing the amount otherwise allowable as a 
                depreciation deduction under this chapter for such 
                taxable year and any subsequent taxable year.
            ``(2) Qualified cellulosic biomass ethanol plant 
        property.--
                    ``(A) In general.--The term `qualified cellulosic 
                biomass ethanol plant property' means property of a 
                character subject to the allowance for depreciation--
                            ``(i) which is used in the United States 
                        solely to produce cellulosic biomass ethanol,
                            ``(ii) the original use of which commences 
                        with the taxpayer after the date of the 
                        enactment of this subsection,
                            ``(iii) which has a nameplate capacity of 
                        100,000,000 gallons per year of cellulosic 
                        biomass ethanol,
                            ``(iv) which is acquired by the taxpayer by 
                        purchase (as defined in section 179(d)) after 
                        the date of the enactment of this subsection, 
                        but only if no written binding contract for the 
                        acquisition was in effect on or before the date 
                        of the enactment of this subsection, and
                            ``(v) which is placed in service by the 
                        taxpayer before January 1, 2013.
                    ``(B) Exceptions.--
                            ``(i) Alternative depreciation property.--
                        Such term shall not include any property 
                        described in section 168(k)(2)(D)(i).
                            ``(ii) Tax-exempt bond-financed property.--
                        Such term shall not include any property any 
                        portion of which is financed with the proceeds 
                        of any obligation the interest on which is 
                        exempt from tax under section 103.
                            ``(iii) Election out.--If a taxpayer makes 
                        an election under this subparagraph with 
                        respect to any class of property for any 
                        taxable year, this subsection shall not apply 
                        to all property in such class placed in service 
                        during such taxable year.
            ``(3) Cellulosic biomass ethanol.--For purposes of this 
        subsection, the term `cellulosic biomass ethanol'--
                    ``(A) means ethanol derived from any 
                lignocellulosic or hemicellulosic matter that is 
                available on a renewable or recurring basis, 
                including--
                            ``(i) dedicated energy crops and trees,
                            ``(ii) wood and wood residues,
                            ``(iii) plants,
                            ``(iv) grasses,
                            ``(v) agricultural residues,
                            ``(vi) fibers,
                            ``(vii) animal wastes and other waste 
                        materials, and
                            ``(viii) municipal and solid waste, and
                    ``(B) includes any ethanol produced in facilities 
                where animal wastes or other waste materials are 
                digested or otherwise used to displace 90 percent or 
                more of the fossil fuel normally used in the production 
                of ethanol.
            ``(4) Special rules.--For purposes of this subsection, 
        rules similar to the rules of subparagraph (E) of section 
        168(k)(2) shall apply, except that such subparagraph shall be 
        applied--
                    ``(A) by substituting `the date of the enactment of 
                subsection (o)' for `December 31, 2007' each place it 
                appears therein,
                    ``(B) by substituting `January 1, 2013' for 
                `January 1, 2010' in clause (i) thereof, and
                    ``(C) by substituting `qualified cellulosic biomass 
                ethanol plant property' for `qualified property' in 
                clause (iv) thereof.
            ``(5) Allowance against alternative minimum tax.--For 
        purposes of this subsection, rules similar to the rules of 
        section 168(k)(2)(G) shall apply.
            ``(6) Recapture.--For purposes of this subsection, rules 
        similar to the rules under section 179(d)(10) shall apply with 
        respect to any qualified cellulosic biomass ethanol plant 
        property which ceases to be qualified cellulosic biomass 
        ethanol plant property.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after the date of the enactment of this 
Act, in taxable years ending after such date.

SEC. 1102. COAL-TO-LIQUID FACILITIES.

    (a) In General.--Section 168 of the Internal Revenue Code of 1986 
(relating to accelerated cost recovery system), as amended by this Act, 
is amended by adding at the end the following:
    ``(p) Special Allowance for Coal-to-Liquid Plant Property.--
            ``(1) Additional allowance.--In the case of any qualified 
        coal-to-liquid plant property--
                    ``(A) the depreciation deduction provided by 
                section 167(a) for the taxable year in which such 
                property is placed in service shall include an 
                allowance equal to 50 percent of the adjusted basis of 
                such property, and
                    ``(B) the adjusted basis of such property shall be 
                reduced by the amount of such deduction before 
                computing the amount otherwise allowable as a 
                depreciation deduction under this chapter for such 
                taxable year and any subsequent taxable year.
            ``(2) Qualified coal-to-liquid plant property.--
                    ``(A) In general.--The term `qualified coal-to-
                liquid plant property' means property of a character 
                subject to the allowance for depreciation--
                            ``(i) which is part of a commercial-scale 
                        project that converts coal to 1 or more liquid 
                        or gaseous transportation fuel that 
                        demonstrates the capture, and sequestration or 
                        disposal or use of, the carbon dioxide produced 
                        in the conversion process, and that, on the 
                        basis of carbon dioxide sequestration plan 
                        prepared by the applicant, is certified by the 
                        Administrator of the Environmental Protection 
                        Agency, in consultation with the Secretary of 
                        Energy, as producing fuel with life cycle 
                        carbon dioxide emissions at or below the 
                        average life-cycle carbon dioxide emissions for 
                        the same type of fuel produced at traditional 
                        petroleum based facilities with similar annual 
                        capacities,
                            ``(ii) which is used in the United States 
                        solely to produce coal-to-liquid fuels,
                            ``(iii) the original use of which commences 
                        with the taxpayer after the date of the 
                        enactment of this subsection,
                            ``(iv) which has a nameplate capacity of 
                        30,000 barrels per day production of coal-to-
                        liquid fuels,
                            ``(v) which is acquired by the taxpayer by 
                        purchase (as defined in section 179(d)) after 
                        the date of the enactment of this subsection, 
                        but only if no written binding contract for the 
                        acquisition was in effect on or before the date 
                        of the enactment of this subsection, and
                            ``(vi) which is placed in service by the 
                        taxpayer before January 1, 2013.
                    ``(B) Exceptions.--
                            ``(i) Alternative depreciation property.--
                        Such term shall not include any property 
                        described in section 168(k)(2)(D)(i).
                            ``(ii) Tax-exempt bond-financed property.--
                        Such term shall not include any property any 
                        portion of which is financed with the proceeds 
                        of any obligation the interest on which is 
                        exempt from tax under section 103.
                            ``(iii) Election out.--If a taxpayer makes 
                        an election under this subparagraph with 
                        respect to any class of property for any 
                        taxable year, this subsection shall not apply 
                        to all property in such class placed in service 
                        during such taxable year.
            ``(3) Special rules.--For purposes of this subsection, 
        rules similar to the rules of subparagraph (E) of section 
        168(k)(2) shall apply, except that such subparagraph shall be 
        applied--
                    ``(A) by substituting `the date of the enactment of 
                subsection (l)' for `December 31, 2007' each place it 
                appears therein,
                    ``(B) by substituting `January 1, 2013' for 
                `January 1, 2010' in clause (i) thereof, and
                    ``(C) by substituting `qualified coal-to-liquid 
                plant property' for `qualified property' in clause (iv) 
                thereof.
            ``(4) Allowance against alternative minimum tax.--For 
        purposes of this subsection, rules similar to the rules of 
        section 168(k)(2)(G) shall apply.
            ``(5) Recapture.--For purposes of this subsection, rules 
        similar to the rules under section 179(d)(10) shall apply with 
        respect to any qualified coal-to-liquid plant property which 
        ceases to be qualified coal-to-liquid plant property.''.
    (b) Effective Date.--The amendment made by this subsection shall 
apply to property placed in service after the date of the enactment of 
this Act, in taxable years ending after such date.

SEC. 1103. DEDICATED ETHANOL PIPELINES TREATED AS 15-YEAR PROPERTY.

    (a) In General.--Section 168(e)(3)(E) of the Internal Revenue Code 
of 1986 (defining 15-year property), is amended by striking ``and'' at 
the end of clause (viii), by striking the period at the end of clause 
(ix) and by inserting ``, and'', and by adding at the end the following 
new clause:
                            ``(x) any dedicated ethanol distribution 
                        line the original use of which commences with 
                        the taxpayer after August 1, 2007, and which is 
                        placed in service before January 1, 2013.''.
    (b) Alternative System.--The table contained in section 
168(g)(3)(B) of such Code (relating to special rule for certain 
property assigned to classes) is amended by inserting after the item 
relating to subparagraph (E)(ix) the following new item:

        ``(E)(x)...............................................   35''.
    (c) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to property placed in service after August 1, 2008.
            (2) Exception.--The amendments made by this section shall 
        not apply to any property with respect to which the taxpayer or 
        related party has entered into a binding contract for the 
        construction thereof on or before August 1, 2009, or, in the 
        case of self-constructed property, has started construction on 
        or before such date.

SEC. 1104. CREDIT FOR POLLUTION ABATEMENT EQUIPMENT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 45Q the following new section:

``SEC. 45R. CREDIT FOR POLLUTION ABATEMENT EQUIPMENT.

    ``(a) General Rule.--For purposes of section 38, the pollution 
abatement equipment credit for any taxable year is an amount equal to 
30 percent of the costs of any qualified pollution abatement equipment 
property placed in service by the taxpayer during the taxable year.
    ``(b) Limitation.--The credit allowed under subsection (a) for any 
taxable year with respect to any qualified pollution abatement 
equipment property shall not exceed--
            ``(1) $50,000,000 in the case of a property of a character 
        subject an allowance for depreciation provided in section 167, 
        and
            ``(2) $30,000,000 in any other case.
    ``(c) Qualified Pollution Abatement Equipment Property.--For 
purposes of this section, the term `qualified pollution abatement 
equipment property' means pollution abatement equipment--
            ``(1) which is part of a unit or facility which either--
                    ``(A) utilizes technologies that meet relevant 
                Federal and State clean air requirements applicable to 
                the unit or facility, including being adequately 
                demonstrated for purposes of section 111 of the Clean 
                Air Act (42 U.S.C. 7411), achievable for purposes of 
                section 169 of that Act (42 U.S.C. 7479), or achievable 
                in practice for purposes of section 171 of that Act (42 
                U.S.C. 7501), or
                    ``(B) utilizes equipment or processes that exceed 
                relevant Federal or State clean air requirements 
                applicable to the unit or facility by achieving greater 
                efficiency or environmental performance,
            ``(2) which is installed on a voluntary basis and not as a 
        result of an agreement with a Federal or State agency or 
        required as a decree from a judicial decision, and
            ``(3) with respect to which an election under section 169 
        is not in effect.''.
    (b) Credit Treated as Part of General Business Credit.--Section 
38(b) of such Code is amended by striking ``plus'' at the end of 
paragraph (34), by striking the period at the end of paragraph (35) and 
inserting ``, plus'', and by adding at the end the following new 
paragraph:
            ``(36) the pollution abatement equipment credit determined 
        under section 45R(a).''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 45Q the following new 
item:

``Sec. 45R. Credit for pollution abatement equipment.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to expenditures made after the date of the enactment of this Act, 
in taxable years ending after such date.

SEC. 1105. MODIFICATIONS RELATING TO CLEAN RENEWABLE ENERGY BONDS.

    (a) Clean Renewable Energy Bond.--Paragraph (1) of section 54(d) of 
the Internal Revenue Code of 1986 (defining clean renewable energy 
bond) is amended--
            (1) in subparagraph (A), by striking ``pursuant'' and all 
        that follows through ``subsection (f)(2)'',
            (2) in subparagraph (B), by striking ``95 percent or more 
        of the proceeds'' and inserting ``90 percent or more of the net 
        proceeds'', and
            (3) in subparagraph (D), by striking ``subsection (h)'' and 
        inserting ``subsection (g)''.
    (b) Qualified Project.--Subparagraph (A) of section 54(d)(2) of 
such Code (defining qualified project) is amended to read as follows:
                    ``(A) In general.--The term `qualified project' 
                means any qualified facility (as determined under 
                section 45(d) without regard to paragraphs (8) and (10) 
                thereof and to any placed in service requirement) owned 
                by a qualified borrower and also without regard to the 
                following:
                            ``(i) In the case of a qualified facility 
                        described in section 45(d)(9) (regarding 
                        incremental hydropower production), any 
                        determination of incremental hydropower 
                        production and related calculations shall be 
                        determined by the qualified borrower based on a 
                        methodology that meets Federal Energy 
                        Regulatory Commission standards.
                            ``(ii) In the case of a qualified facility 
                        described in section 45(d)(9) (regarding 
                        hydropower production), the facility need not 
                        be licensed by the Federal Energy Regulation 
                        Commission if the facility, when constructed, 
                        will meet Federal Energy Regulatory Commission 
                        licensing requirements and other applicable 
                        environmental, licensing, and regulatory 
                        requirements.''.
    (c) Reimbursement.--Subparagraph (C) of section 54(d)(2) of such 
Code (relating to reimbursement) is amended to read as follows:
                    ``(C) Reimbursement.--For purposes of paragraph 
                (1)(B), proceeds of a clean renewable energy bond may 
                be issued to reimburse a qualified borrower for amounts 
                paid after the date of the enactment of this 
                subparagraph in the same manner as proceeds of State 
                and local government obligations the interest upon 
                which is exempt from tax under section 103.''.
    (d) Change in Use.--Subparagraph (D) of section 54(d)(2) of such 
Code (relating to treatment of changes in use) is amended by striking 
``or qualified issuer''.
    (e) Maximum Term.--Paragraph (2) of section 54(e) of such Code 
(relating to maximum term) is amended by striking ``without regard to 
the requirements of subsection (1)(6) and''.
    (f) Repeal of Limitation on Amount of Bonds Designated.--Section 54 
of such Code is amended by striking subsection (f) (relating to repeal 
of limitation on amount of bonds designated).
    (g) Special Rules Relating to Expenditures.--Subsection (h) of 
section 54 of such Code (relating to special rules relating to 
expenditures) is amended--
            (1) in paragraph (1)(A), by striking ``95 percent of the 
        proceeds'' and inserting ``90 percent of the net proceeds'',
            (2) in paragraph (1)(B)--
                    (A) by striking ``10 percent of the proceeds'' and 
                inserting ``5 percent of the net proceeds'', and
                    (B) by striking ``the 6-month period beginning on'' 
                both places it appears and inserting ``1 year of'',
            (3) in paragraph (1)(C), by inserting ``net'' before 
        ``proceeds'', and
            (4) in paragraph (3), by striking ``95 percent of the 
        proceeds'' and inserting ``90 percent of the net proceeds''.
    (h) Repeal of Special Rules Relating to Arbitrage.--Section 54 of 
such Code is amended by striking subsection (i) (relating to repeal of 
special rules relating to arbitrage).
    (i) Public Power Entity.--Subsection (j) of section 54 of such Code 
(defining cooperative electric company; qualified energy tax credit 
bond lender; governmental body; qualified borrower) is amended--
            (1) by redesignating paragraphs (4) and (5) as paragraphs 
        (5) and (6), respectively,
            (2) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) Public power entity.--The term `public power entity' 
        means a State utility with a service obligation, as such terms 
        are defined in section 217 of the Federal Power Act (as in 
        effect on the date of enactment of this paragraph).'',
            (3) in paragraph (5), as so redesignated--
                    (A) by striking ``or'' at the end of subparagraph 
                (B),
                    (B) by striking the period at the end of 
                subparagraph (C) and inserting ``, or'', and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(D) a public power entity.'', and
            (4) in paragraph (6), as so redesignated--
                    (A) by striking ``or'' at the end of subparagraph 
                (A),
                    (B) by striking the period at the end of 
                subparagraph (B) and inserting ``, or'', and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(C) a public power entity.''.
    (j) Repeal of Ratable Principal Amortization Requirement.--
Subsection (l) of section 54 of such Code (relating to other 
definitions and special rules) is amended by striking paragraph (5) and 
redesignating paragraph (6) as paragraph (5).
    (k) Net Proceeds.--Subsection (l) of section 54 of such Code 
(relating to other definitions and special rules), as amended by 
subsection (j), is amended by redesignating paragraphs (2), (3), (4), 
and (5) as paragraphs (4), (5), (6), and (7), respectively, and by 
inserting after paragraph (1) the following new paragraphs:
            ``(2) Net proceeds.--The term `net proceeds' means, with 
        respect to an issue, the proceeds of such issue reduced by 
        amounts in a reasonably required reserve or replacement fund.
            ``(3) Limitation on amount in reserve or replacement fund 
        which may be financed by issue.--A bond issued as part of an 
        issue shall not be treated as a clean renewable energy bond if 
        the amount of the proceeds from the sale of such issue which is 
        part of any reserve or replacement fund exceeds 10 percent of 
        the proceeds of the issue (or such higher amount which the 
        issuer establishes is necessary to the satisfaction of the 
        Secretary).''.
    (l) Other Special Rules.--Subsection (l) of section 54 of such Code 
(relating to other definitions and special rules), as amended by 
subsections (j) and (k), is amended by adding at the end the following 
new paragraphs:
            ``(8) Credits may be separated.--There may be a separation 
        (including at issuance) of the ownership of a clean renewable 
        energy bond and the entitlement to the credit under this 
        section with respect to such bond. In case of any such 
        separation, the credit under this section shall be allowed to 
        the person who on the credit allowance date holds the 
        instrument evidencing the entitlement to the credit and not to 
        the holder of the bond.
            ``(9) Treatment for estimated tax purposes.--Solely for the 
        purposes of sections 6654 and 6655, the credit allowed by this 
        section to a taxpayer by reason of holding a qualified energy 
        tax credit bond on a credit allowance date (or the credit in 
        the case of a separation as provided in paragraph (8)) shall be 
        treated as if it were a payment of estimated tax made by the 
        taxpayer on such date.
            ``(10) Carryback and carryforward of unused credits.--If 
        the sum of the credit exceeds the limitation imposed by 
        subsection (c) for any taxable year, any credits may be applied 
        in a manner similar to the rules set forth in section 39.''.
    (m) Termination.--Subsection (m) of section 54 of such Code 
(relating to termination) is amended by striking ``2008'' and inserting 
``2013''.
    (n) Clerical Redesignations.--Section 54 of such Code, as amended 
by the preceding provisions of this section, is amended by 
redesignating subsections (g), (h), (j), (k), (l), and (m) as 
subsections (f), (g), (h), (i), (j), and (k), respectively.
    (o) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.

SEC. 1106. EXTENSION OF RENEWABLE ENERGY PRODUCTION TAX CREDIT.

    (a) In General.--Section 45 of the Internal Revenue Code of 1986 is 
amended--
            (1) by striking ``10-year period beginning on the date the 
        facility was originally placed in service,'' in subsection 
        (a)(2)(A)(ii) and inserting ``5-year period beginning on the 
        date the facility was originally placed in service,'',
            (2) by striking ``in subsection (a)(2)(A)(ii).'' in 
        subsection (b)(4)(B)(i) and inserting ``beginning on the date 
        the facility was originally placed in service.'',
            (3) by striking ``in subsection (a)(2)(A)(ii).'' in 
        subsection (b)(4)(B)(ii) and inserting ``beginning on the date 
        the facility was originally placed in service.'', and
            (4) by striking ``January 1, 2009'' each place it appears 
        in subsection (d) and inserting ``January 1, 2020''.
    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

          Subtitle C--Repeal of Federal Purchasing Requirement

SEC. 1201. REPEAL OF FEDERAL PURCHASING REQUIREMENT.

    Section 526 of the Energy Independence and Security Act of 2007 is 
repealed.

                   Subtitle D--Renewable Technologies

SEC. 1301. PILOT PROJECT FOR DEVELOPING SOLAR ENERGY ON FEDERAL LANDS.

    (a) In General.--The Secretary of the Interior shall carry out in 
accordance with this section a pilot project for the leasing of Federal 
lands for the advancement, development, assessment, installation, and 
operation of commercial photovoltaic and concentrating solar power 
energy systems.
    (b) Identification of Lands for Leasing.--
            (1) Lands selection.--For purposes of this section, the 
        Secretary of the Interior, acting through the Director of the 
        Bureau of Land Management and in consultation with the 
        Secretary of Energy, shall--
                    (A) identify lease sites of Federal lands under the 
                jurisdiction of the Bureau of Land Management in the 
                States of Arizona, California, New Mexico, Nevada, and 
                Utah, that are suitable and feasible for the 
                installation and operation of photovoltaic and 
                concentrating solar power energy systems under the 
                pilot project, subject to valid existing rights; and
                    (B) incorporate solar energy development under the 
                pilot project into the relevant agency land use and 
                resource management plans or equivalent plans for the 
                lands identified under subparagraph (A).
            (2) Minimum and maximum acreage of sites.--Each individual 
        lease site identified under paragraph (1)(A) shall be a minimum 
        of 1280 acres and shall not exceed 12,800 acres.
            (3) Lands released for leasing.--The Secretary shall 
        release for leasing under the pilot project lease sites 
        identified under paragraph (1), in acreages that meet the 
        following annual milestones:
                    (A) By 2010, 79,012 acres.
                    (B) By 2011, 316,049 acres.
            (4) Lands not included.--The following Federal lands shall 
        not be included within the pilot project:
                    (A) Components of the National Landscape 
                Conservation System.
                    (B) Wilderness and Wilderness Study Areas.
                    (C) Wild and Scenic Rivers.
                    (D) National Scenic and Historic Trails.
                    (E) Monuments.
                    (F) Resource Natural Areas.
    (c) Report.--The Secretary shall report to the Congress by not 
later than December 31, 2013, regarding the results of the pilot 
project and the viability of leasing Bureau of Land Management lands 
for solar power energy production.

SEC. 1302. THREE-YEAR DEPRECIATION FOR SOLAR AND FUEL CELL PROPERTY.

    (a) In General.--Subparagraph (A) of section 168(e)(3) of the 
Internal Revenue Code of 1986 (defining 3-year property) is amended by 
striking ``and'' at the end of clause (ii), by striking the period at 
the end of clause (iii) and inserting a comma, and by inserting after 
clause (iii) the following:
                            ``(iv) any property which is described in 
                        clause (i) or (ii) of section 48(a)(3)(A) 
                        (relating to solar), or would be so described 
                        if the last sentence of such section did not 
                        apply to such clauses, and
                            ``(v) any property which is described in 
                        paragraph (1) of section 48(c) (defining 
                        qualified fuel cell property).''.
    (b) Conforming Amendment.--Section 168(e)(3)(B)(vi)(I) of such Code 
is amended by inserting ``(other than (i) or (ii) thereof and so much 
of clause (iv) thereof as relates to qualified fuel cell property)'' 
after ``subparagraph (A)''.
    (c) Effective Date.--The amendment made by this section shall apply 
to property placed in service on or after December 31, 2009.

SEC. 1303. EXTENSION OF CREDIT FOR ELECTRICITY PRODUCED FROM WIND AND 
              BIOMASS.

    (a) Wind.--Paragraph (1) of section 45(d) of the Internal Revenue 
Code of 1986 is amended by striking ``January 1, 2013'' and inserting 
``January 1, 2018''.
    (b) Biomass.--Paragraphs (2) and (3) of section 45(d) of such Code 
is amended by striking ``January 1, 2014'' each place it appears and 
inserting ``January 1, 2019''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

SEC. 1304. NUCLEAR, HYDROPOWER, AND BIOMASS DEFINED AS RENEWABLE.

    For any public law after the enactment of the American Energy 
Innovation Act, any requirement that a percentage our total electrical 
supply must come from renewable sources, or if a Renewable Energy 
Portfolio is enacted, for purposes of that law, nuclear energy, 
biomass, and hydroelectircty shall be defined as renewable.

SEC. 1305. PERMANENT EXTENSION OF THE CREDIT FOR NONBUSINESS ENERGY 
              PROPERTY AND THE CREDIT FOR GAS PRODUCED FROM BIOMASS AND 
              FOR SYNTHETIC FUELS PRODUCED FROM COAL.

    (a) Credit for Nonbusiness Energy Property Made Permanent.--
            (1) In general.--Section 25C of the Internal Revenue Code 
        of 1986 is amended by striking subsection (g).
            (2) Effective date.--The amendment made by this subsection 
        shall apply to property placed in service after December 31, 
        2008.
    (b) Credit for Gas Produced From Biomass and for Synthetic Fuels 
Produced From Coal Made Permanent.--
            (1) In general.--Subparagraph (B) of section 45K(f)(1) of 
        such Code is amended to read as follows:
                    ``(B) if such facility is originally placed in 
                service after December 31, 1992, paragraph (2) of 
                subsection (e) shall not apply.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to fuel sold after December 31, 2008.

SEC. 1306. ALGAE-BASED FUELS PARITY.

    (a) With Alcohol, etc., Used as Fuel.--Section 40(b) of the 
Internal Revenue Code is amended by inserting after paragraph (6) the 
following:
            ``(7) Algae-based biofuel credit.--
                    ``(A) In general.--For the purpose of this section, 
                algae-based biofuels shall be treated in the same 
                manner as cellulosic biofuel.
                    ``(B) Definitions.--For purposes of subparagraph 
                (A)--
                            ``(i) the term `algae-based fuel' means a 
                        liquid fuel derived from the biomass of algal 
                        organisms that can replace fuel derived from 
                        petroleum, and
                            ``(ii) the term `algal organisms' means 
                        single or multi-cellular organisms which are 
                        inherently aquatic and classified as non-
                        vascular plants, which include (i) microalgae, 
                        (ii) blue-green algae (cyanobacteria), and 
                        (iii) macroalgae (seaweeds).''.
    (b) With Renewable Diesel.--Section 40A of such Code is amended by 
inserting after paragraph (4) the following:
            ``(5) Algae-based biofuel.--
                    ``(A) In general.--Except as provided in the last 3 
                sentences of paragraph (3), the term `renewable diesel' 
                shall include algae-based biofuels.
                    ``(B) Definitions.--For purposes of this 
                paragraph--
                            ``(i) the term `algae-based fuel' means a 
                        liquid fuel derived from the biomass of algal 
                        organisms that can replace fuel derived from 
                        petroleum, and
                            ``(ii) the term `algal organisms' means 
                        single or multi-cellular organisms which are 
                        inherently aquatic and classified as non-
                        vascular plants, which include (i) microalgae, 
                        (ii) blue-green algae (cyanobacteria), and 
                        (iii) macroalgae (seaweeds).''.
    (c) Bonus Depreciation for Algae-Based Fuel Equipment.--Subsection 
(l) of section 168 of such Code is amended by inserting after paragraph 
(8) the following:
            ``(9) Algae-based fuel plant property.--
                    ``(A) In general.--For the purpose of this section, 
                qualified algae-based fuel plant property equipment 
                shall be treated in the same manner as qualified 
                cellulosic biofuel plant property.
                    ``(B) Definitions.--For purposes of subparagraph 
                (A)--
                            ``(i) Qualified algae-based fuel plant 
                        property.--The term `qualified algae-based fuel 
                        plant property' means property of a character 
                        subject to the allowance for depreciation--
                                    ``(I) which is used in the United 
                                States solely to produce algae-based 
                                fuel,
                                    ``(II) the original use of which 
                                commences with the taxpayer after the 
                                date of the enactment of this 
                                paragraph,
                                    ``(III) which is acquired by the 
                                taxpayer by purchase after the date of 
                                the enactment of this paragraph, but 
                                only if no written binding contract for 
                                the acquisition was in effect on or 
                                before the date of the enactment of 
                                this paragraph, and
                                    ``(IV) which is placed in service 
                                by the taxpayer before January 1, 2017.
                            ``(ii) Algae-based fuel.--The term `algae-
                        based fuel' means a liquid fuel derived from 
                        the biomass of algal organisms that can replace 
                        fuel derived from petroleum.
                            ``(iii) Algal organisms.--The term `algal 
                        organisms' means single or multi-cellular 
                        organisms which are inherently aquatic and 
                        classified as non-vascular plants, which 
                        include (i) microalgae, (ii) blue-green algae 
                        (cyanobacteria), and (iii) macroalgae 
                        (seaweeds).''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

             Subtitle E--Rewarding Innovation in Technology

SEC. 1401. INCREASE IN ALTERNATIVE SIMPLIFIED RESEARCH CREDIT.

    Subparagraph (A) of section 41(c)(5) of the Internal Revenue Code 
of 1986 (relating to election of alternative simplified credit) is 
amended by striking ``14 percent (12 percent in the case of taxable 
years ending before January 1, 2009)'' and inserting ``20 percent''.

SEC. 1402. RESEARCH AND EXPERIMENTATION CREDIT PERMANENT.

    (a) In General.--Section 41 of the Internal Revenue Code of 1986 is 
amended by striking subsection (h).
    (b) Conforming Amendment.--Paragraph (1) of section 45C(b) of such 
Code is amended by striking subparagraph (D).
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after December 31, 2009.

SEC. 1403. ALTERNATIVE FUEL VEHICLE INNOVATION PRIZE.

    (a) In General.--The Secretary shall carry out a program to be 
referred to as the ``Alternative Fuel Vehicle Innovation Prize'' to 
competitively award cash prizes to eligible contestants in conformity 
with this Act to advance the research, development, demonstration, and 
commercial application of alterative fuel vehicles.
    (b) Advertising and Solicitation of Competitors.--
            (1) Advertising.--The Secretary shall widely advertise 
        prize competitions to encourage broad participation in the 
        program carried out under subsection (a).
            (2) Announcement through federal register notice.--The 
        Secretary shall announce each prize competition by publishing a 
        notice in the Federal Register. This notice shall include the 
        subject of the competition, the duration of the competition, 
        the eligibility requirements for participation in the 
        competition, the process for participants to register for the 
        competition, the amount of the prize, and the criteria for 
        awarding the prize.
    (c) Prizes; Selection Criteria.--
            (1) Grand prize.--
                    (A) In general.--There shall be one grand prize of 
                $10,000,000,000.
                    (B) Prototype requirement.--In order to be eligible 
                to receive the grand prize under this section, an 
                eligible contestant must produce a prototype of an 
                alternative fuel vehicle.
                    (C) Selection criteria.--The Secretary shall 
                develop, in consultation with the Secretary of 
                Transportation and the Director of the National Science 
                Foundation, criteria on which to select the grand prize 
                winner. Such criteria shall include, at a minimum, the 
                following factors:
                            (i) The extent to which the prototype will 
                        reduce the reliance of the United States on 
                        foreign sources of energy.
                            (ii) The reduction in fuel costs of 
                        operating the prototype compared to a similar 
                        non-alternative fuel vehicle.
                            (iii) The extent to which the prototype 
                        meets or exceeds Federal safety standards.
                            (iv) Whether the prototype has a fuel 
                        economy of at least 100 miles per gallon.
                            (v) The extent to which the prototype 
                        limits hazardous emissions compared to a 
                        comparable non-alternative fuel vehicle.
                            (vi) The possibility of wide commercial 
                        application, including the production of 
                        vehicles that are not hindered by lack of 
                        refueling infrastructure.
                            (vii) The estimated cost of the prototype, 
                        if it were mass-produced, and whether such cost 
                        is equivalent to the cost of a comparable non-
                        alternative fuel vehicle.
                            (viii) Whether the prototype could be mass-
                        produced in the United States.
                    (D) Deadline for awarding grand prize.--The 
                Secretary shall set a deadline of not later than 5 
                years after the date of the enactment of this Act for 
                awarding the grand prize.
            (2) Additional prizes.--
                    (A) In general.--The Secretary may choose to award 
                no more than 5 additional prizes, with such additional 
                prizes having a total combined value of no more than 
                $100,000,000.
                    (B) Selection criteria.--Winners of additional 
                prizes shall be selected based on their demonstration 
                of--
                            (i) Substantial advancements in specific 
                        areas of alternative vehicle technologies, 
                        components, or systems; or
                            (ii) transformational changes in 
                        technology.
                    (C) Deadline for awarding additional prizes.--The 
                Secretary shall set a deadline of not later than 5 
                years after the date of the enactment of this Act for 
                awarding any additional prizes.
    (d) Judging.--
            (1) In general.--The Secretary shall appoint 5 individuals 
        to serve as judges for the purpose of selecting the prize 
        winners under this section. The judges shall select the grand 
        prize winner based on the criteria developed under subsection 
        (c)(1)(C) and shall select any additional prize winners based 
        on the criteria described under subsection (c)(2)(B).
            (2) Judge requirements.--In order to be appointed as a 
        judge, an individual may not have a financial interest in any 
        contestant and may not be an employee, officer, director, 
        agent, or family member of any contestant.
    (e) Report.--Not later than 60 days after all prizes are awarded 
under this section, the Secretary shall transmit a report to the 
Congress containing--
            (1) a list of award recipients;
            (2) a description of the technologies developed by the 
        award recipients; and
            (3) a description of the actions being taken toward the 
        commercial application of the technologies developed by the 
        award recipients.
    (f) Intellectual Property.--The Federal Government shall not, by 
virtue of offering or awarding a prize under this section, be entitled 
to any intellectual property rights derived as a consequence of, or in 
direct relation to, the participation by a participant in a competition 
authorized by this section. This subsection shall not be construed to 
prevent the Federal Government from negotiating a license for the use 
of intellectual property developed for a prize competition under this 
section. The Federal Government may seek assurances that technologies 
for which prizes are awarded under this section are offered for 
commercialization in the event an award recipient does not take, or is 
not expected to take within a reasonable time, effective steps to 
achieve practical application of the technology.
    (g) Waiver of Liability.--The Secretary may require participants to 
waive claims against the Federal Government for any injury, death, 
damage, or loss of property, revenue, or profits arising from the 
participants' participation in a competition under this section. The 
Secretary shall give notice of any waiver required under this section 
in the notice required by subsection (b)(2).
    (h) Authorization of Appropriations.--There are authorized such 
sums as may be necessary to carry out the provisions of this section.

              Subtitle F--Improve National Grid Efficiency

SEC. 1501. INCOME AND GAINS FROM ELECTRICITY TRANSMISSION SYSTEMS 
              TREATED AS QUALIFYING INCOME FOR PUBLICLY TRADED 
              PARTNERSHIPS.

    (a) In General.--Section 7704(d)(1) of the Internal Revenue Code of 
1986 (defining qualifying income) is amended by redesignating 
subparagraphs (F) and (G) as subparagraphs (G) and (H), respectively, 
and by inserting after subparagraph (E) the following new subparagraph:
                    ``(F) income and gains from the transmission of 
                electricity at 69 or more kilovolts through any 
                property the original use of which commences after 
                December 31, 2006,''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act, in taxable years 
ending after such date.

SEC. 1502. FIVE-YEAR APPLICABLE RECOVERY PERIOD FOR DEPRECIATION OF 
              QUALIFIED SMART ELECTRIC METERS.

    (a) In General.--Section 168(e)(3)(B) of the Internal Revenue Code 
of 1986 (defining 5-year property) is amended by striking ``and'' at 
the end of clause (vi), by striking the period at the end of clause 
(vii) and inserting ``, and'', and by inserting after clause (vii) the 
following new clause:
                            ``(viii) any qualified smart electric 
                        meter.''.
    (b) Conforming Amendment.--Section 168(e)(3)(D) of such Code is 
amended by striking clause (iii) and redesignating clause (iv) as 
clause (iii).
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service in taxable years ending after the 
date of the enactment of this Act.

                     Subtitle G--Regulatory Burdens

SEC. 1601. GREENHOUSE GAS REGULATION UNDER CLEAN AIR ACT.

    (a) Definition of Air Pollutant.--Section 302(g) of the Clean Air 
Act (42 U.S.C. 7602(g)) is amended by adding the following at the end 
thereof: ``The term `air pollutant' shall not include carbon dioxide, 
water vapor, methane, nitrous oxide, hydrofluorocarbons, 
perfluorocarbons, or sulfur hexafluoride.''.
    (b) Climate Change Not Regulated by Clean Air Act.--Nothing in the 
Clean Air Act shall be treated as authorizing or requiring the 
regulation of climate change or global warming.

SEC. 1602. NEPA JUDICIAL REVIEW.

    Title I of the National Environmental Policy Act of 1969 (42 U.S.C. 
4331 et seq.) is amended by adding at the end the following new 
section:

``SEC. 106. JUDICIAL REVIEW.

    ``(a) In General.--Review of a Federal agency's compliance with 
section 102 of the Act may be filed in the circuit in which the 
petitioner resides or transacts business which is directly affected by 
the action. Any such application for review shall be made within ninety 
days from the date of promulgation of the Federal agency's decision.
    ``(b) Procedures for Review.--
            ``(1) Limitation.--In any judicial action under this Act, 
        judicial review of any issues concerning a Federal agency's 
        compliance with section 102 shall be limited to the 
        administrative record. Otherwise applicable principles of 
        administrative law shall govern whether any supplemental 
        materials may be considered by the court.
            ``(2) Standard.--In considering objections raised in any 
        judicial action under this Act, the court shall uphold the 
        Federal agency's decision, whether in is the first instance, a 
        revocation, recession or other action, unless the objecting 
        party can demonstrate, on the administrative record, that the 
        decision was arbitrary and capricious or otherwise not in 
        accordance with law.
            ``(3) Remedy.--If the court finds that the selection of the 
        response action was arbitrary and capricious or otherwise not 
        in accordance with law, the court shall award such relief as 
        the court deems appropriate.
            ``(4) Procedural errors.--In reviewing alleged procedural 
        errors, the court may disallow costs or damages only if the 
        errors were so serious and related to matters of such central 
        relevance to the action that the action would have been 
        significantly changed had such errors not been made.
    ``(c) Notice of Actions.--Whenever any action is brought under this 
Act in a court of the United States by a plaintiff other than the 
United States, the plaintiff shall provide a copy of the complaint to 
the Attorney General of the United States and to the Secretary or 
Administrator of the affected Federal agency.
    ``(d) Intervention.--In any action commenced under this Act, any 
person may intervene as a matter of right when such person claims an 
interest relating to the subject of the action and is so situated that 
the disposition of the action may, as a practical matter, impair or 
impede the person's ability to protect that interest, unless the 
Secretary or Administrator shows that the person's interest is 
adequately represented by existing parties.''.

SEC. 1603. REPEAL OF 2007 AMENDMENTS TO RENEWABLE FUEL STANDARD.

    Section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) is amended 
to read as provided in section 1501(a)(2) of the Energy Policy Act of 
2005 (Public Law 109-58; 119 Stat. 594, 1067).

SEC. 1604. REPEAL OF REQUIREMENT TO CONSULT REGARDING IMPACTS ON GLOBAL 
              WARMING AND POLAR BEAR POPULATION.

    Section 429 of the Department of the Interior, Environment, and 
Related Agencies Appropriations Act, 2009 (division E of Public Law 
111-8) is repealed.

SEC. 1605. LIGHT BULB CHOICE.

    (b) In General.--Effective 6 months after the date of enactment of 
this Act, sections 321 and 322, and the items in the table of contents 
relating thereto, of the Energy Independence and Security Act of 2007 
are repealed.
    (c) Reversion.--When the repeal occurs under paragraph (1), the 
amendments made by sections 321 and 322 of the Energy Independence and 
Security Act of 2007 are hereby repealed, and the laws amended thereby 
shall read as if those amendments had not been enacted.

SEC. 1606. REPEAL OF LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO 
              DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY PRODUCTS 
              THEREOF.

    (a) In General.--Subsection (d) of section 199 of the Internal 
Revenue Code of 1986 (as amended by section 401 of the Energy 
Improvement and Extension Act of 2008) is amended by striking paragraph 
(9) and redesignating paragraph (10) as paragraph (9).
    (b) Conforming Amendment.--Section 199(d)(2) of such Code is 
amended by striking ``subsections (a)(1)(B) and (d)(9)(A)(iii)'' and 
inserting ``subsection (a)(1)(B)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.

SEC. 1607. HYDRAULIC FRACTURING.

    It is the sense of Congress that--
            (1) the Safe Drinking Water Act was never intended to 
        regulate natural gas and oil well construction and stimulation;
            (2) this responsibility has been effectively managed by the 
        States reflecting their unique needs; and
            (3) the modification of the Safe Drinking Water Act in the 
        Energy Policy Act of 2005 to clarify that it was not intended 
        to regulate the use of hydraulic fracturing was an appropriate 
        and necessary action that should be retained.

         Subtitle H--Judicial Review Regarding Energy Projects

           PART 1--JUDICIAL REVIEW REGARDING ENERGY PROJECTS

SEC. 1701. EXCLUSIVE JURISDICTION OVER CAUSES AND CLAIMS RELATING TO 
              COVERED ENERGY PROJECTS.

    Notwithstanding any other provision of law, the United States 
District Court for the District of Columbia shall have exclusive 
jurisdiction to hear all causes and claims under this title or any 
other provision of law that arise from any covered energy project.

SEC. 1702. TIME FOR FILING COMPLAINT.

    All causes and claims referred to in section 1701 must be filed not 
later than the end of the 60-day period beginning on the date of the 
action or decision by a Federal official that constitutes the covered 
energy project concerned. Any cause or claim not filed within that time 
period shall be barred.

SEC. 1703. DISTRICT COURT FOR THE DISTRICT OF COLUMBIA DEADLINE.

    (a) In General.--All proceedings that are subject to section 1701--
            (1) shall be resolved as expeditiously as possible, and in 
        any event not more than 180 days after such cause or claim is 
        filed; and
            (2) shall take precedence over all other pending matters 
        before the district court.
    (b) Failure To Comply With Deadline.--If an interlocutory or final 
judgment, decree, or order has not been issued by the district court by 
the deadline described under this section, the cause or claim shall be 
dismissed with prejudice and all rights relating to such cause or claim 
shall be terminated.

SEC. 1704. ABILITY TO SEEK APPELLATE REVIEW.

    An interlocutory or final judgment, decree, or order of the 
district court in a proceeding that is subject to section 1701 may be 
reviewed by no other court except the Supreme Court.

SEC. 1705. DEADLINE FOR APPEAL TO THE SUPREME COURT.

    If a writ of certiorari has been granted by the Supreme Court 
pursuant to section 1704, then--
            (1) the interlocutory or final judgment, decree, or order 
        of the district court shall be resolved as expeditiously as 
        possible and in any event not more than 180 days after such 
        interlocutory or final judgment, decree, order of the district 
        court is issued; and
            (2) all such proceedings shall take precedence over all 
        other matters then before the Supreme Court.

SEC. 1706. COVERED ENERGY PROJECT DEFINED.

    In this part, the term ``covered energy project'' means any action 
or decision by the President or a Federal official regarding--
            (1) the leasing of Federal lands (including submerged 
        lands) for the exploration, development, production, 
        processing, or transmission of oil, natural gas, or any other 
        source or form of energy, including actions and decisions 
        regarding the selection or offering of Federal lands for such 
        leasing; or
            (2) any action under such a lease.

SEC. 1707. LIMITATION ON APPLICATION.

    This part shall not apply with respect to a covered energy project 
to the extent such application would be inconsistent with part 2.

                       PART 2--PERMITTING REFORM

SEC. 1711. PURPOSES.

    The purposes of this part are to--
            (1) respond to the Nation's increased need for domestic 
        energy resources;
            (2) facilitate interagency coordination and cooperation in 
        the processing of permits required to support oil and gas use 
        authorization on Federal lands, both onshore and on the outer 
        Continental Shelf, in order to achieve greater consistency, 
        certainty, and timeliness in permit processing requirements;
            (3) promote process streamlining and increased interagency 
        efficiency, including elimination of interagency duplication of 
        effort;
            (4) improve information sharing among agencies and 
        understanding of respective agency roles and responsibilities;
            (5) promote coordination with State agencies with expertise 
        and responsibilities related to Federal oil and gas permitting 
        decisions;
            (6) promote responsible stewardship of Federal oil and gas 
        resources;
            (7) maintain high standards of safety and environmental 
        protection; and
            (8) enhance the benefits to Federal permitting already 
        occurring as a result of a coordinated and timely interagency 
        process for oil and gas permit review for certain Federal oil 
        and gas leases.

SEC. 1712. FEDERAL COORDINATOR.

    (a) Establishment.--There is established, as an independent agency 
in the Executive Branch, the Office of the Federal Oil and Gas Permit 
Coordinator.
    (b) Federal Permit Coordinator.--The Office shall be headed by a 
Federal Permit Coordinator, who shall be appointed by the President 
within 90 days after the date of enactment of this Act.
    (c) Duties.--The Federal Permit Coordinator shall be responsible 
for the following:
            (1) Coordinating the timely completion of all permitting 
        activities by Federal agencies, and State agencies to the 
        maximum extent practicable, with respect to any oil and gas 
        project under a Federal lease issued pursuant to the mineral 
        leasing laws, either onshore or on the outer Continental Shelf. 
        For purposes of this part only, such oil and gas projects shall 
        include oil shale projects under Federal oil shale leases.
            (2) Ensuring the compliance of Federal agencies, and State 
        agencies to the extent they participate, with this part.

SEC. 1713. REGIONAL OFFICES AND REGIONAL PERMIT COORDINATORS.

    (a) Regional Offices.--Within 90 days after the date of appointment 
of the Federal Permit Coordinator, the Secretary of the Interior 
(Secretary), in consultation with the Federal Permit Coordinator, shall 
establish regional offices to coordinate review of Federal permits for 
oil and gas projects on Federal lands onshore and on the outer 
Continental Shelf.
    (b) Number and Location of Regional Offices.--The number of 
regional offices shall be established by the Secretary in consultation 
with the Federal Permit Coordinator. The Secretary shall ensure that 
there is an adequate number of offices in each region proximate to 
available Federal oil and gas lease tracts onshore and on the outer 
Continental Shelf to meet the demands for expeditious permitting in 
that region. The Secretary shall designate as regional offices under 
this section all offices established under section 365 of the Energy 
Policy Act of 2005 (42 U.S.C. 15924).
    (c) Memorandum of Understanding.--Within 90 days after the 
appointment of the Federal Permit Coordinator, the Federal Permit 
Coordinator, the Secretary, the Secretary of Agriculture, the Secretary 
of Commerce, the Secretary of Homeland Security, the Administrator of 
the Environmental Protection Agency, the Secretary of Defense, and the 
head of any other Federal agency with responsibilities related to 
permitting of Federal oil and gas leases, shall enter into a memorandum 
of understanding (MOU) establishing respective duties and 
responsibilities for staffing the regional offices and accomplishing 
the objectives of this section.
    (d) Designation of Qualified Staff.--
            (1) In general.--Not later than 30 days after the date of 
        signing of the MOU under subsection (c), all Federal signatory 
        agencies shall assign to each regional office the appropriate 
        employees with expertise in the oil and gas permitting issues 
        relating to that office, including, but not limited, with 
        respect to--
                    (A) consultation and preparation of biological 
                opinions under section 7 of the Endangered Species Act 
                of 1973 (16 U.S.C. 1536);
                    (B) permits under section 404 of Federal Water 
                Pollution Control Act (33 U.S.C. 1344);
                    (C) regulatory matters under the Clean Air Act (42 
                U.S.C. 7401 et seq.);
                    (D) planning under the National Forest Management 
                Act of 1976 (16 U.S.C. 472a et seq.);
                    (E) the preparation of analyses under the National 
                Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
                seq.) (NEPA);
                    (F) applications for permits to drill under the 
                Mineral Leasing Act (30 U.S.C. 181 et seq.); and
                    (G) exploration plans and development and 
                production plans under the Outer Continental Shelf 
                Lands Act (43 U.S.C. 1331 et seq.).
            (2) Preference and incentives.--To the maximum extent 
        practicable, for purposes of this subsection, Federal agencies 
        shall give preference to employees volunteering for 
        reassignment to the regional offices, and shall offer 
        incentives to attract and retain regional office employees, 
        including, but not limited to, retaining contract employees, 
        rotational assignments, salary incentives of up to 120 percent 
        of an employee's existing salary immediately prior to 
        reassignment, or any combination of strategies.
    (e) Duties.--Each employee assigned under subsection (d) shall--
            (1) within 90 days after the date of assignment, report to 
        the regional office to which the employee is assigned;
            (2) be responsible for all issues relating to the 
        jurisdiction of the home office or agency of the employee; and
            (3) participate as part of the team working on proposed oil 
        and gas projects, planning, and environmental analyses.
    (f) Creation of and Delegation of Authority to Regional Permit 
Coordinators.--The Federal Permit Coordinator shall appoint a Regional 
Permit Coordinator to be located within each regional office 
established under this section, with full authority to act on behalf of 
the Federal Permit Coordinator.
    (g) Additional Personnel.--The Federal Permit Coordinator or 
Regional Permit Coordinators may at any time direct that any Federal 
agency party to the MOU under subsection (c) assign additional staff 
required to implement the duties of the regional offices.

SEC. 1714. REVIEWS AND ACTIONS OF FEDERAL AGENCIES.

    (a) Schedules for Timely Permit Decisionmaking.--Within 10 days 
after the date on which the Secretary receives any oil and gas permit 
application or amended application, the Secretary shall either notify 
the applicant that the application is complete or notify the applicant 
that information is missing and specify the information that is 
required to be submitted for the application to be complete. Within 30 
days after notifying a permit applicant that an application is 
complete, the Secretary, in consultation with the permit applicant as 
necessary, shall determine and inform the Regional Permit Coordinator 
responsible for that project area whether the proposed permit is a 
class I, class II, or class III permit. The Regional Permit Coordinator 
shall as soon as possible but in no event later than 30 days following 
the Secretary's determination establish a binding schedule to ensure 
the most expeditious possible review and processing of the requested 
permit, in accordance with this section.
    (b) Permit Classes and Schedules.--
            (1) Class i permits.--An oil and gas permit shall be 
        designated as a class I permit under this section if the 
        permitted activity is of a nature that would typically require 
        preparation of an environmental impact statement under NEPA to 
        inform the permitting decision. For such permits, the Regional 
        Permit Coordinator shall establish a schedule for timely 
        completion of all permit reviews and processing, not to exceed 
        30 months. The Regional Permit Coordinator shall make the 
        schedule publicly available within 10 days after the schedule 
        is established.
            (2) Class ii permits.--An oil and gas permit shall be 
        designated as a class II permit under this section if the 
        permitted activity is of a nature that would typically be found 
        not to significantly affect the quality of the human 
        environment under NEPA. For such permits, the Regional Permit 
        Coordinator shall establish the most expeditious schedule 
        possible for completion of all permit reviews and processing, 
        not to exceed 90 days. The Regional Permit Coordinator may 
        grant a one-time extension of that schedule, not to exceed 60 
        days, upon a good cause showing that additional time is 
        necessary to complete permit decisions. Not later than 15 days 
        after establishing or extending any schedule for a class II 
        permit, the Regional Permit Coordinator shall provide the 
        permit applicant with the schedule.
            (3) Class iii permits.--Notwithstanding paragraphs (1) and 
        (2), an oil and gas permit shall be designated as a class III 
        permit under this section if the permitted activity either 
        qualifies for a statutory or regulatory categorical exclusion 
        under NEPA or if the requirements under NEPA and other 
        applicable law for the permit have been completed within 30 
        days after the date of a complete application. For such 
        permits, the permit shall be issued within 30 days after the 
        date of a complete application.
            (4) Reclassification of class ii permit.--If prior to the 
        expiration of the established schedule for a class II permit 
        newly discovered information indicates that the class II permit 
        will significantly affect the quality of the human environment, 
        the Secretary may, in consultation with the permit applicant, 
        reclassify the permit as a class I permit under paragraph (1), 
        and the Regional Coordinator shall establish an amended 
        schedule that complies with the provisions of that paragraph.
    (c) Reporting.--The Regional Permit Coordinators shall include data 
on all schedule timing and compliance in their reports to the Federal 
Permit Coordinator required under subsection (i), who shall include 
such data in the report to the President and Congress required under 
subsection (i).
    (d) Dispute Resolution.--The Regional Permit Coordinator shall 
resolve all administrative issues that affect oil and gas permit 
reviews. The Regional Permit Coordinator shall report jointly to the 
Federal Permit Coordinator and to the head of the relevant action 
agency, or his or her designee, for resolution of any issue regarding 
an oil and gas permit that may result in missing the schedule deadlines 
established pursuant to subsection (b). The Regional Permit 
Coordinators shall include data regarding the incidence and resolution 
of disputes under this subsection in their reports to the Federal 
Permit Coordinator required under subsection (i), who shall include 
such reported data and develop recommendations in the report to the 
President and Congress required under subsection (i).
    (f) Prohibition of Certain Terms and Conditions.--No Federal agency 
may include in any permit, right-of-way, or other authorization issued 
for an oil and gas project subject to the provisions of this part, any 
term or condition that may be authorized, but is not required, by the 
provisions of any applicable law, if the Federal Permit Coordinator 
determines that such term or condition would prevent or impair in any 
significant respect completion of a permit review within the time 
schedule established pursuant to subsection (b) or would otherwise 
impair in any significant respect expeditious oil and gas development. 
The Federal Permit Coordinator shall not have any authority to impose 
any terms, conditions, or requirements beyond those imposed by any 
Federal law, agency, regulation, or lease term.
    (g) Consolidated Record.--The Federal Permit Coordinator, acting 
through the appropriate Regional Permit Coordinator, with the 
cooperation of Federal and State administrative officials and agencies, 
shall maintain a complete, consolidated record of all decisions made or 
actions taken by the Federal Permit Coordinator or Regional Permit 
Coordinator or by any Federal agency with respect to any oil and gas 
permit.
    (h) Relationship to NEPA and Energy Policy Act of 2005.--
            (1) Section 390(a) of the Energy Policy Act of 2005 (42 
        U.S.C. 15942(a)) is amended--
                    (A) by striking ``rebuttable presumption that the 
                use of a''; and
                    (B) by striking ``would apply''.
            (2) Section 17(p) of the Mineral Leasing Act (30 U.S.C. 
        226(p)) is repealed.
    (i) Additional Powers and Responsibilities.--
            (1) Regional permit coordinator reports.--The Regional 
        Permit Coordinators shall each submit a report to the Federal 
        Permit Coordinator by December 31 of each year that documents 
        each office's performance in meeting the objectives under this 
        part, including recommendations to further streamline the 
        permitting process.
            (2) Redirection of priorities or resources.--In order to 
        expedite overall permitting activity, the Federal Permit 
        Coordinator may redirect the priority of regional office 
        activities or the allocation of resources among such offices, 
        and shall engage the agencies that are parties to the MOU to 
        the extent such adjustments implicate their respective staffs 
        or resources.
            (3) Report to congress.--Beginning three years after the 
        date of enactment of this Act, the Federal Permit Coordinator 
        shall prepare and submit a report to the President and Congress 
        by April 15 of each year that outlines the results achieved 
        under this part and makes recommendations to the President and 
        Congress for further improvements in processing oil and gas 
        permits on Federal lands.

SEC. 1715. STATE COORDINATION.

    The Governor of any State wherein an oil and gas operation may 
require a Federal permit, or the coastline of which is in immediate 
geographic proximity to oil and gas operations on the outer Continental 
Shelf, may be a signatory to the MOU for purposes of fulfilling any 
State responsibilities with respect to Federal oil and gas permitting 
decisions. The Regional Permit Coordinators shall facilitate and 
coordinate concurrent State reviews of requested permits for oil and 
gas projects on the outer Continental Shelf.

SEC. 1716. SAVINGS PROVISION.

    Except as expressly stated, nothing in this part affects--
            (1) the applicability of any Federal or State law; or
            (2) any delegation of authority made by the head of a 
        Federal agency the employees of which are participating in the 
        implementation of this section.

SEC. 1717. ADMINISTRATIVE AND JUDICIAL REVIEW.

    (a) Administrative Review.--Any oil and gas permitting decision for 
Federal lands onshore or on the outer Continental Shelf that was issued 
in accordance with the procedures established by this part shall not be 
subject to further administrative review within the respective Federal 
agency responsible for that decision, and shall be the final decision 
of that agency for purposes of judicial review.
    (b) Exclusive Jurisdiction Over Permit Decisions.--Only the United 
States District Court for the District of Columbia shall have original 
jurisdiction over any civil action for the review of such a permit 
decision.
    (c) Limitations on Claims.--Notwithstanding any other provision of 
law, any action arising under Federal law seeking judicial review of a 
permit, license, or approval issued by a Federal agency for an oil and 
gas permit subject to this part shall be barred unless it is filed 
within 90 days of the date of the decision. Nothing in this part shall 
creates a right to judicial review or places any limit on filing a 
claim that a person has violated the terms of a permit, license, or 
approval.
    (d) Filing of Record.--When any civil action is brought pursuant to 
this part, the Federal Permit Coordinator shall immediately prepare for 
the court a consolidated record.
    (e) Expedited Review.--Any action for judicial review challenging a 
decision approved pursuant to this section shall be set for 
consideration by not later than 90 days after the date the action is 
filed.
    (f) Expedited Mandamus Review.--Notwithstanding subsection (e), 
within 30 days after the filing of an action challenging or seeking to 
enforce an established permit review schedule for a class I permit, the 
court shall issue a decision either compelling permit issuance or 
sanctioning the delay and establishing a new schedule that enables the 
most expeditious possible completion of proceedings. In rendering its 
decision, the court shall review whether the agencies subject to the 
schedule have been acting in good faith, whether the permit applicant 
has been cooperating fully with the agencies that are responsible for 
issuing the requested permits, and any other relevant matters. The 
court may issue orders to enforce any schedule it establishes under 
this subsection.
    (g) No Private Right of Action.--This part shall not be construed 
to create any additional right, benefit, or trust responsibility, 
substantive or procedural, enforceable at law or equity, by a person 
against the United States, its agencies, its officers, or any person.
    (h) Finality of Leasing Decisions.--Notwithstanding the provisions 
of any law or regulation to the contrary, a decision by the Bureau of 
Land Management or the Minerals Management Service to issue a Final 
Notice of Sale and proceed with an oil and gas lease sale pursuant to 
any mineral leasing law shall not be subject to further administrative 
review within the Department of the Interior, and shall be the final 
decision of the agency for purposes of judicial review.

SEC. 1718. AMENDMENTS TO PUBLICATION PROCESS.

    Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1344) is amended--
            (1) by amending subsection (c)(2) to read as follows:
            ``(2) The Secretary shall publish a proposed leasing 
        program in the Federal Register, and shall submit a copy of 
        such 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 his State which he, in 
        his discretion, determines will be affected by the proposed 
        program.'';
            (2) by striking subsection (c)(3); and
            (3) in subsection (d)(2) by inserting ``final'' after 
        ``proposed''.

SEC. 1719. ALASKA OFFSHORE CONTINENTAL SHELF COORDINATION OFFICE.

    (a) Establishment.--The Secretary of the Interior shall establish 
and maintain, in coordination with the Mayor of the North Slope Borough 
of Alaska, a separate office to be known as the Alaska Offshore 
Continental Shelf Coordination Office.
    (b) Purpose.--The purpose of the office shall be to--
            (1) coordinate the leasing of the outer Continental Shelf 
        off the coast of Alaska;
            (2) advise persons awarded such leases on local conditions 
        and the history of areas affected by development of the oil and 
        gas resources of the outer Continental Shelf off the coast of 
        Alaska;
            (3) provide to the Committee on Resources of the House of 
        Representatives and the Committee on Energy and Natural 
        Resources of the Senate annual reports on the status of the 
        coordination between such and communities affected by such 
        development;
            (4) collect from residents of the North Slope of Alaska 
        information regarding the impacts of such development on marine 
        wildlife, coastal habitats, marine and coastal subsistence 
        resources, and the marine and coastal environment of Alaska's 
        North Slope region; and
            (5) ensure that the information collected under paragraph 
        (3) is submitted to--
                    (A) developers of such resources; and
                    (B) any appropriate Federal agency.

   Subtitle I--Innovation in Carbon Capture and Clean Coal Technology

SEC. 1801. COAL-TO-LIQUID FUEL LOAN GUARANTEE PROGRAM.

    (a) Eligible Projects.--Section 1703(b) of the Energy Policy Act of 
2005 (42 U.S.C. 16513(b)) is amended by adding at the end the 
following:
            ``(11) Large-scale coal-to-liquid facilities (as defined in 
        section 101 of the Coal-to-Liquid Fuel Promotion Act of 2007) 
        that use a feedstock, the majority of which is the coal 
        resources of the United States, to produce not less than 10,000 
        barrels a day of liquid transportation fuel.''.
    (b) Authorization of Appropriations.--Section 1704 of the Energy 
Policy Act of 2005 (42 U.S.C. 16514) is amended by adding at the end 
the following:
    ``(c) Coal-to-Liquid Projects.--
            ``(1) In general.--There are authorized to be appropriated 
        such sums as are necessary to provide the cost of guarantees 
        for projects involving large-scale coal-to-liquid facilities 
        under section 1703(b)(11).
            ``(2) Alternative funding.--If no appropriations are made 
        available under paragraph (1), an eligible applicant may elect 
        to provide payment to the Secretary, to be delivered if and at 
        the time the application is approved, in the amount of the 
        estimated cost of the loan guarantee to the Federal Government, 
        as determined by the Secretary.
            ``(3) Limitations.--
                    ``(A) In general.--No loan guarantees shall be 
                provided under this title for projects described in 
                paragraph (1) after (as determined by the Secretary)--
                            ``(i) the tenth such loan guarantee is 
                        issued under this title; or
                            ``(ii) production capacity covered by such 
                        loan guarantees reaches 100,000 barrels per day 
                        of coal-to-liquid fuel.
                    ``(B) Individual projects.--
                            ``(i) In general.--A loan guarantee may be 
                        provided under this title for any large-scale 
                        coal-to-liquid facility described in paragraph 
                        (1) that produces no more than 20,000 barrels 
                        of coal-to-liquid fuel per day.
                            ``(ii) Non-federal funding requirement.--To 
                        be eligible for a loan guarantee under this 
                        title, a large-scale coal-to-liquid facility 
                        described in paragraph (1) that produces more 
                        than 20,000 barrels per day of coal-to-liquid 
                        fuel shall be eligible to receive a loan 
                        guarantee for the proportion of the cost of the 
                        facility that represents 20,000 barrels of 
                        coal-to-liquid fuel per day of production.
            ``(4) Requirements.--
                    ``(A) Guidelines.--Not later than 180 days after 
                the date of enactment of this subsection, the Secretary 
                shall publish guidelines for the coal-to-liquids loan 
                guarantee application process.
                    ``(B) Applications.--Not later than 1 year after 
                the date of enactment of this subsection, the Secretary 
                shall begin to accept applications for coal-to-liquid 
                loan guarantees under this subsection.
                    ``(C) Deadline.--Not later than 1 year from the 
                date of acceptance of an application under subparagraph 
                (B), the Secretary shall evaluate the application and 
                make final determinations under this subsection.
            ``(5) Reports to congress.--The Secretary shall submit to 
        the Committee on Energy and Natural Resources of the Senate and 
        the Committee on Energy and Commerce of the House of 
        Representatives a report describing the status of the program 
        under this subsection not later than each of--
                    ``(A) 180 days after the date of enactment of this 
                subsection;
                    ``(B) 1 year after the date of enactment of this 
                subsection; and
                    ``(C) the dates on which the Secretary approves the 
                first and fifth applications for coal-to-liquid loan 
                guarantees under this subsection.''.

SEC. 1802. COAL-TO-LIQUID FACILITIES LOAN PROGRAM.

    (a) Definition of Eligible Recipient.--In this section, the term 
``eligible recipient'' means an individual, organization, or other 
entity that owns, operates, or plans to construct a coal-to-liquid 
facility that will produce at least 10,000 barrels per day of coal-to-
liquid fuel.
    (b) Establishment.--The Secretary shall establish a program under 
which the Secretary shall provide loans, in a total amount not to 
exceed $20,000,000, for use by eligible recipients to pay the Federal 
share of the cost of obtaining any services necessary for the planning, 
permitting, and construction of a coal-to-liquid facility.
    (c) Application.--To be eligible to receive a loan under subsection 
(b), the eligible recipient shall submit to the Secretary an 
application at such time, in such manner, and containing such 
information as the Secretary may require.
    (d) Non-Federal Match.--To be eligible to receive a loan under this 
section, an eligible recipient shall use non-Federal funds to provide a 
dollar-for-dollar match of the amount of the loan.
    (e) Repayment of Loan.--
            (1) In general.--To be eligible to receive a loan under 
        this section, an eligible recipient shall agree to repay the 
        original amount of the loan to the Secretary not later than 5 
        years after the date of the receipt of the loan.
            (2) Source of funds.--Repayment of a loan under paragraph 
        (1) may be made from any financing or assistance received for 
        the construction of a coal-to-liquid facility described in 
        subsection (a), including a loan guarantee provided under 
        section 1703(b)(11) of the Energy Policy Act of 2005 (42 U.S.C. 
        16513(b)(11)).
    (f) Requirements.--
            (1) Guidelines.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall publish guidelines 
        for the coal-to-liquids loan application process.
            (2) Applications.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary shall begin to accept 
        applications for coal-to-liquid loans under this section.
    (g) Reports to Congress.--Not later than each of 180 days and 1 
year after the date of enactment of this Act, the Secretary shall 
submit to the Committee on Energy and Natural Resources of the Senate 
and the Committee on Energy and Commerce of the House of 
Representatives a report describing the status of the program under 
this section.
    (h) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $200,000,000, to remain 
available until expended.

SEC. 1803. ALLOWS FOR 7-YEAR DEPRECIATION FOR POWER-PLANTS THAT INSTALL 
              CLEAN COAL TECHNOLOGY OR RETRO-FIT PLANTS FOR CARBON 
              SEQUESTRATION TECHNOLOGY.

    Any coal fired power plant generating power that retrofits their 
operation to decrease their carbon output by at least 10 percent per 
year will get a 7-year accelerated depreciation credit for property 
placed in service after December 31, 2009.

SEC. 1804. EXTENSION OF 50 CENT PER GALLON ALTERNATIVE FUELS EXCISE TAX 
              CREDIT.

    Paragraph (5) of section 6426(d) of the Internal Revenue Code of 
1986 is amended by striking ``2009'' and inserting ``2019'' and by 
striking ``2014'' and inserting ``2024''.

SEC. 1805. PROVIDES A 20 PERCENT INVESTMENT TAX CREDIT CAPPED AT $200 
              MILLION TOTAL PER CTL PLANT PLACED IN SERVICE BEFORE 
              2016.

    The Internal Revenue Service shall treat the synthetic gas produced 
from coal-to-liquids with the same tax treatment as covered by the 
industrial gasification tax credit.

SEC. 1806. REDUCES RECOVERY PERIOD FOR CERTAIN ENERGY PRODUCTION AND 
              DISTRIBUTION FACILITIES.

    In the case of an individual or business, there shall be allowed as 
a credit against the taxes imposed by subtitle A of the Internal 
Revenue Code of 1986 an amount equal to 30 percent of the expenditures 
made by such individual or business for energy production and 
distribution facilities.

SEC. 1807. DOE CLEAN COAL TECHNOLOGY LOAN GUARANTEES AND DIRECT LOANS.

    The Secretary of Energy may provide clean coal technology loan 
guarantees and direct loans for the research, development, 
demonstration, and deployment of clean coal technology, to build up to 
five commercial-scale coal-fired plants with carbon capture and 
sequestration capabilities. For each such loan guarantee or loan, at 
least 50 percent of the total cost of the project shall be provided by 
the private sector.

                        Subtitle J--Natural Gas

SEC. 1901. NATURAL GAS VEHICLE RESEARCH, DEVELOPMENT, AND DEMONSTRATION 
              PROJECTS.

    (a) In General.--The Secretary of Energy shall conduct a 5-year 
program of natural gas vehicle research, development, and 
demonstration. The Secretary shall coordinate with the Administrator of 
the Environmental Protection Agency, as necessary.
    (b) Purpose.--The program under this section shall focus on--
            (1) the continued improvement and development of new, 
        cleaner, more efficient light-duty, medium-duty, and heavy-duty 
        natural gas vehicle engines;
            (2) the integration of those engines into light-duty, 
        medium-duty, and heavy-duty natural gas vehicles for onroad and 
        offroad applications;
            (3) expanding product availability by assisting 
        manufacturers with the certification of the engines or vehicles 
        described in paragraph (1) or (2) to Federal or California 
        certification requirements and in-use emission standards;
            (4) the demonstration and proper operation and use of the 
        vehicles described in paragraph (2) under all operating 
        conditions;
            (5) the development and improvement of nationally 
        recognized codes and standards for the continued safe operation 
        of natural gas vehicles and their components;
            (6) improvement in the reliability and efficiency of 
        natural gas fueling station infrastructure;
            (7) the certification of natural gas fueling station 
        infrastructure to nationally recognized and industry safety 
        standards;
            (8) the improvement in the reliability and efficiency of 
        onboard natural gas fuel storage systems;
            (9) the development of new natural gas fuel storage 
        materials;
            (10) the certification of onboard natural gas fuel storage 
        systems to nationally recognized and industry safety standards; 
        and
            (11) the use of natural gas engines in hybrid vehicles.
    (c) Certification of Conversion Systems.--The Secretary shall 
coordinate with the Administrator on issues related to streamlining the 
certification of natural gas conversion systems to the appropriate 
Federal certification requirements and in-use emission standards.
    (d) Cooperation and Coordination With Industry.--In developing and 
carrying out the program under this section, the Secretary shall 
coordinate with the natural gas vehicle industry to ensure cooperation 
between the public and the private sector.
    (e) Conduct of Program.--The program under this section shall be 
conducted in accordance with sections 3001 and 3002 of the Energy 
Policy Act of 1992.
    (f) Report.--Not later than 2 years after the date of enactment of 
this Act, the Secretary shall provide a report to Congress on the 
implementation of this section.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary $30,000,000 for each of the fiscal years 
2010 through 2014 to carry out this section.
    (h) Definition.--For purposes of this section, the term ``natural 
gas'' means compressed natural gas, liquefied natural gas, biomethane, 
and mixtures of hydrogen and methane or natural gas.

SEC. 1902. MODIFICATION OF ALTERNATIVE FUEL CREDIT.

    (a) Alternative Fuel Credit.--Paragraph (5) of section 6426(d) of 
the Internal Revenue Code of 1986 (relating to alternative fuel credit) 
is amended by inserting ``, and December 31, 2027, in the case of any 
sale or use involving compressed or liquefied natural gas)'' after 
``hydrogen''.
    (b) Alternative Fuel Mixture Credit.--Paragraph (3) of section 
6426(d) of such Code is amended by inserting ``, and December 31, 2027, 
in the case of any sale or use involving compressed or liquefied 
natural gas)'' after ``hydrogen''.
    (c) Payments Relating to Alternative Fuel or Alternative Fuel 
Mixtures.--Paragraph (6) of section 6427(e) of such Code is amended--
            (1) in subparagraph (C)--
                    (A) by striking ``subparagraph (D)'' in 
                subparagraph (C) and inserting ``subparagraphs (D) and 
                (E)'', and
                    (B) by striking ``and'' at the end thereof,
            (2) by striking the period at the end of subparagraph (D) 
        and inserting ``, and'',
            (3) by inserting the following: ``or with respect to 
        compressed or liquefied natural gas'' after ``subparagraph 
        (D)'', and
            (4) by inserting the following new subparagraph:
                    ``(E) any alternative fuel or alternative fuel 
                mixture (as so defined) involving compressed or 
                liquefied natural gas.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to fuel sold or used after the date of the enactment of this Act.

SEC. 1903. EXTENSION AND MODIFICATION OF ALTERNATIVE FUEL VEHICLE 
              CREDIT.

    (a) In General.--Paragraph (4) of section 30B(k) of the Internal 
Revenue Code of 1986 (relating to termination) is amended by inserting 
``(December 31, 2027, in the case of a vehicle powered by compressed or 
liquefied natural gas)'' before the period at the end.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to property placed in service after the date of the enactment of 
this Act.

SEC. 1904. ALLOWANCE OF VEHICLE AND INFRASTRUCTURE CREDITS AGAINST 
              REGULAR AND MINIMUM TAX AND TRANSFERABILITY OF CREDITS.

    (a) Business Credits.--Subparagraph (B) of section 38(c)(4) of the 
Internal Revenue Code of 1986 is amended by striking ``and'' at the end 
of clause (vii), by striking the period at the end of clause (viii) and 
inserting ``, and'', and by inserting after clause (viii) the following 
new clauses:
                            ``(ix) the portion of the credit determined 
                        under section 30B which is attributable to the 
                        application of subsection (e)(3) thereof with 
                        respect to qualified alternative fuel motor 
                        vehicles which are capable of being powered by 
                        compressed or liquefied natural gas, and
                            ``(x) the portion of the credit determined 
                        under section 30C which is attributable to the 
                        application of subsection (b) thereof with 
                        respect to refueling property which is used to 
                        store and or dispense compressed or liquefied 
                        natural gas.''.
    (b) Personal Credits.--
            (1) New qualified alternative fuel motor vehicles.--
        Subsection (g) of section 30B of such Code is amended by adding 
        at the end the following new paragraph:
            ``(3) Special rule relating to certain new qualified 
        alternative fuel motor vehicles.--In the case of the portion of 
        the credit determined under subsection (a) which is 
        attributable to the application of subsection (e)(3) with 
        respect to qualified alternative fuel motor vehicles which are 
        capable of being powered by compressed or liquefied natural 
        gas--
                    ``(A) paragraph (2) shall (after the application of 
                paragraph (1)) be applied separately with respect to 
                such portion, and
                    ``(B) in lieu of the limitation determined under 
                paragraph (2), such limitation shall not exceed the 
                excess (if any) of--
                            ``(i) the sum of the regular tax liability 
                        (as defined in section 26(b)) plus the 
                        tentative minimum tax for the taxable year, 
                        reduced by
                            ``(ii) the sum of the credits allowable 
                        under subpart A and sections 27 and 30.''.
            (2) Alternative fuel vehicle refueling properties.--
        Subsection (d) of section 30C of such Code is amended by adding 
        at the end the following new paragraph:
            ``(3) Special rule relating to certain alternative fuel 
        vehicle refueling properties.--In the case of the portion of 
        the credit determined under subsection (a) with respect to 
        refueling property which is used to store and or dispense 
        compressed or liquefied natural gas and which is attributable 
        to the application of subsection (b)--
                    ``(A) paragraph (2) shall (after the application of 
                paragraph (1)) be applied separately with respect to 
                such portion, and
                    ``(B) in lieu of the limitation determined under 
                paragraph (2), such limitation shall not exceed the 
                excess (if any) of--
                            ``(i) the sum of the regular tax liability 
                        (as defined in section 26(b)) plus the 
                        tentative minimum tax for the taxable year, 
                        reduced by
                            ``(ii) the sum of the credits allowable 
                        under subpart A and sections 27, 30, and the 
                        portion of the credit determined under section 
                        30B which is attributable to the application of 
                        subsection (e)(3) thereof.''.
    (c) Credits May Be Transferred.--
            (1) Vehicle credits.--Subsection (h) of section 30B of such 
        Code is amended by adding at the end the following new 
        paragraph:
            ``(11) Transferability of credit.--Nothing in any law or 
        rule of law shall be construed to limit a taxpayer from 
        transferring, through sale and repurchase agreement, the credit 
        allowed by this section for qualified alternative fuel motor 
        vehicles which are capable of being powered by compressed or 
        liquefied natural gas.''.
            (2) Infrastructure credit.--Subsection (e) of section 30C 
        of such Code is amended by adding at the end the following new 
        paragraph:
            ``(6) Credit may be transferred.--Nothing in any law or 
        rule of law shall be construed to limit a taxpayer from 
        transferring the credit allowed by this section through sale 
        and repurchase agreements.''.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to property placed in service after the date of the 
enactment of this Act.

SEC. 1905. CREDIT FOR PRODUCING VEHICLES FUELED BY NATURAL GAS OR 
              LIQUIFIED NATURAL GAS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business-related 
credits) is amended by inserting after section 45Q the following new 
section:

``SEC. 45R. PRODUCTION OF VEHICLES FUELED BY NATURAL GAS OR LIQUIFIED 
              NATURAL GAS.

    ``(a) In General.--For purposes of section 38, in the case of a 
taxpayer who is a manufacturer of natural gas vehicles, the natural gas 
vehicle credit determined under this section for any taxable year with 
respect to each eligible natural gas vehicle produced by the taxpayer 
during such year is an amount equal to the lesser of--
            ``(1) 10 percent of the manufacturer's basis in such 
        vehicle, or
            ``(2) $4,000.
    ``(b) Aggregate Credit Allowed.--The aggregate amount of credit 
allowed under subsection (a) with respect to a taxpayer for any taxable 
year shall not exceed $200,000,000 reduced by the amount of the credit 
allowed under subsection (a) to the taxpayer (or any predecessor) for 
all prior taxable years.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Eligible natural gas vehicle.--The term `eligible 
        natural gas vehicle' means any motor vehicle (as defined in 
        section 30(c)(2))--
                    ``(A) which--
                            ``(i) is only capable of operating on 
                        natural gas or liquefied natural gas, or
                            ``(ii) is capable of operating on 
                        compressed or liquefied natural gas and (but 
                        not in combination with) gasoline or diesel 
                        fuel, but in no case shall such vehicle have an 
                        operating range of less than 200 miles on 
                        compressed or liquefied natural gas, and
                    ``(B) the final assembly of which is in the United 
                States.
            ``(2) Manufacturer.--The term `manufacturer' has the 
        meaning given such term in regulations prescribed by the 
        Administrator of the Environmental Protection Agency for 
        purposes of the administration of title II of the Clean Air Act 
        (42 U.S.C. 7521 et seq.).
    ``(d) Special Rules.--For purposes of this section--
            ``(1) In general.--Rules similar to the rules of 
        subsections (c), (d), and (e) of section 52 shall apply.
            ``(2) Controlled groups.--
                    ``(A) In general.--All persons treated as a single 
                employer under subsection (a) or (b) of section 52 or 
                subsection (m) or (o) of section 414 shall be treated 
                as a single producer.
                    ``(B) Inclusion of foreign corporations.--For 
                purposes of subparagraph (A), in applying subsections 
                (a) and (b) of section 52 to this section, section 1563 
                shall be applied without regard to subsection (b)(2)(C) 
                thereof.
            ``(3) Verification.--No amount shall be allowed as a credit 
        under subsection (a) with respect to which the taxpayer has not 
        submitted such information or certification as the Secretary, 
        in consultation with the Secretary of Energy, determines 
        necessary.
    ``(e) Termination.--This section shall not apply to any vehicle 
produced after December 31, 2017.''.
    (b) Credit To Be Part of Business Credit.--Section 38(b) of such 
Code is amended by striking ``plus'' at the end of paragraph (34), by 
striking the period at the end of paragraph (35) and inserting ``, 
plus'', and by adding at the end the following:
            ``(36) the natural gas vehicle credit determined under 
        section 45R(a).''.
    (c) Conforming Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 45Q the following new 
item:

``Sec. 45R. Production of vehicles fueled by natural gas or liquified 
                            natural gas.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to vehicles produced after December 31, 2008.

                         TITLE II--CONSERVATION

                        Subtitle A--Conservation

SEC. 2001. PERMANENT EXTENSION OF THE CREDIT FOR NONBUSINESS ENERGY 
              PROPERTY, THE CREDIT FOR GAS PRODUCED FROM BIOMASS AND 
              FOR SYNTHETIC FUELS PRODUCED FROM COAL, AND THE CREDIT 
              FOR ENERGY EFFICIENT APPLIANCES.

    (a) Credit for Nonbusiness Energy Property Made Permanent.--
            (1) In general.--Section 25C of the Internal Revenue Code 
        of 1986 is amended by striking subsection (g).
            (2) Effective date.--The amendment made by this subsection 
        shall apply to property placed in service after December 31, 
        2008.
    (b) Credit for Gas Produced From Biomass and for Synthetic Fuels 
Produced From Coal Made Permanent.--
            (1) In general.--Subparagraph (B) of section 45K(f)(1) of 
        such Code is amended to read as follows:
                    ``(B) if such facility is originally placed in 
                service after December 31, 1992, paragraph (2) of 
                subsection (e) shall not apply.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to fuel sold after December 31, 2008.
    (c) Extension of Credit for Energy Efficient Appliances.--
            (1) Dishwashers.--Section 45M(b)(1) of such Code is 
        amended--
                    (A) in subparagraph (A) by striking ``calendar year 
                2008 or 2009'' and inserting ``any of calendar years 
                2008 through 2019'', and
                    (B) in subparagraph (B) by striking ``calendar year 
                2008, 2009, or 2010'' and inserting ``any of calendar 
                years 2008 through 2020''.
            (2) Clothes washers.--Section 45M(b)(2) of such Code is 
        amended--
                    (A) in subparagraph (B) by striking ``calendar year 
                2008 or 2009'' and inserting ``any of calendar years 
                2008 through 2019'',
                    (B) in subparagraphs (C) and (D) by striking 
                ``calendar year 2008, 2009, or 2010'' both places it 
                appears and inserting ``any of calendar years 2008 
                through 2020''.
            (3) Refrigerators.--Section 45M(b)(3) of such Code is 
        amended--
                    (A) in subparagraph (B) by striking ``calendar year 
                2008 or 2009'' and inserting ``any of calendar years 
                2008 through 2019'', and
                    (B) in subparagraphs (C) and (D) by striking 
                ``calendar year 2008, 2009, or 2010'' both places it 
                appears and inserting ``any of calendar years 2008 
                through 2020''.
            (4) Effective date.--The amendments made by this subsection 
        shall apply to appliances manufactured after December 31, 2008.

SEC. 2002. EXTENSION AND CLARIFICATION OF NEW ENERGY EFFICIENT HOME 
              CREDIT.

    (a) Extension.--Subsection (g) of section 45L of the Internal 
Revenue Code of 1986 (relating to termination) is amended by striking 
``December 31, 2009'' and inserting ``December 31, 2013''.
    (b) Clarification.--
            (1) In general.--Paragraph (1) of section 45L(a) is amended 
        by striking ``and'' at the end of subparagraph (A) and by 
        striking subparagraph (B) and inserting the following:
                    ``(B) acquired by a person from such eligible 
                contractor, and
                    ``(C) used by any person as a residence during the 
                taxable year.''.
            (2) Effective date.--The amendments made by this subsection 
        shall take effect as if included in section 1332 of the Energy 
        Policy Act of 2005.

SEC. 2003. EXTENSION AND MODIFICATION OF DEDUCTION FOR ENERGY EFFICIENT 
              COMMERCIAL BUILDINGS.

    (a) Extension.--Subsection (h) of section 179D of the Internal 
Revenue Code of 1986 (relating to termination) is amended to read as 
follows:
    ``(h) Termination.--This section shall not apply with respect to 
property--
            ``(1) which is certified under subsection (d)(6) after 
        December 31, 2012, or
            ``(2) which is placed in service after December 31, 2014.
A provisional certification shall be treated as meeting the 
requirements of paragraph (1) if it is based on the building plans, 
subject to inspection and testing after installation.''.
    (b) Increase in Maximum Amount of Deduction.--
            (1) In general.--Subparagraph (A) of section 179D(b)(1) of 
        such Code is amended by striking ``$1.80'' and inserting 
        ``$2.25''.
            (2) Partial allowance.--Paragraph (1) of section 179D(d) of 
        such Code is amended--
                    (A) by striking ``$.60'' and inserting ``$0.75'', 
                and
                    (B) by striking ``$1.80'' and inserting ``$2.25''.
    (c) Modifications to Certain Special Rules.--
            (1) Methods of calculating energy savings.--
                    (A) In general.--Paragraph (2) of section 179D(d) 
                of such Code is amended--
                            (i) by inserting ``, except that the 
                        Secretary shall use Standard 90.1-2001 in lieu 
                        of the California title 24 energy standards and 
                        the tables contained therein and the Secretary 
                        may add requirements from Standard 90.1-2001 
                        (or any successor standard)'' before the period 
                        at the end, and
                            (ii) by adding at the end the following new 
                        sentence: ``The calculation methods contained 
                        in such regulations shall also provide for the 
                        calculation of appropriate energy savings for 
                        design methods and technologies not otherwise 
                        credited in such manual or standard, including 
                        energy savings associated with natural 
                        ventilation, evaporative cooling, automatic 
                        lighting controls (such as occupancy sensors, 
                        photocells, and time clocks), day lighting, 
                        designs utilizing semi-conditioned spaces which 
                        maintain adequate comfort conditions without 
                        air conditioning or without heating, improved 
                        fan system efficiency (including reductions in 
                        static pressure), advanced unloading mechanisms 
                        for mechanical cooling (such as multiple or 
                        variable speed compressors), on-site generation 
                        of electricity (including combined heat and 
                        power systems, fuel cells, and renewable energy 
                        generation such as solar energy), and wiring 
                        with lower energy losses than wiring satisfying 
                        Standard 90.1-2001 requirements for building 
                        power distribution systems.''.
                    (B) Requirements for computer software used in 
                calculating energy and power consumption costs.--
                Paragraph (3)(B) of section 179D(d) of such Code is 
                amended by striking ``and'' at the end of clause (ii), 
                by striking the period at the end of clause (iii) and 
                inserting ``, and'', and by adding at the end the 
                following:
                            ``(iv) which automatically--
                                    ``(I) generates the features, 
                                energy use, and energy and power 
                                consumption costs of a reference 
                                building which meets Standard 90.1-
                                2001,
                                    ``(II) generates the features, 
                                energy use, and energy and power 
                                consumption costs of a compliant 
                                building or system which reduces the 
                                annual energy and power costs by 50 
                                percent compared to Standard 90.1-2001, 
                                and
                                    ``(III) compares such features, 
                                energy use, and consumption costs to 
                                the features, energy use, and 
                                consumption costs of the building or 
                                system with respect to which the 
                                calculation is being made.''.
            (2) Targets for partial allowance of credit.--Paragraph 
        (1)(B) of section 179D(d) of such Code is amended--
                    (A) by striking ``The Secretary'' and inserting the 
                following:
                            ``(i) In general.--The Secretary'', and
                    (B) by adding at the end the following:
                            ``(ii) Additional requirements.--For 
                        purposes of clause (i)--
                                    ``(I) the Secretary shall determine 
                                prescriptive criteria that can be 
                                modeled explicitly for reference 
                                buildings which meet the requirements 
                                of subsection (c)(1)(D) for different 
                                building types and regions,
                                    ``(II) a system may be certified as 
                                meeting the target under subparagraph 
                                (A)(ii) if the appropriate reference 
                                building either meets the requirements 
                                of subsection (c)(1)(D) with such 
                                system rather than the comparable 
                                reference system (using the calculation 
                                under paragraph (2)) or meets the 
                                relevant prescriptive criteria under 
                                subclause (I), and
                                    ``(III) the lighting system target 
                                shall be based on lighting power 
                                density, except that it shall allow 
                                lighting controls credits that trade 
                                off for lighting power density savings 
                                based on section 3.2.2 of the 2005 
                                California Nonresidential Alternative 
                                Calculation Method Approval Manual.
                    ``(B) Publication.--The Secretary shall publish in 
                the Federal Register the bases for the target levels 
                established in the regulations under clause (i).''.
    (d) Alternative Standards.--Section 179D(d) of such Code is amended 
by adding at the end the following new paragraph:
            ``(7) Alternative standards pending final regulations.--
        Until such time as the Secretary issues final regulations under 
        paragraph (1)(B)--
                    ``(A) in the case of property which is part of a 
                building envelope, the building envelope system target 
                under paragraph (1)(A)(ii) shall be a 7 percent 
                reduction in total annual energy and power costs 
                (determined in the same manner as under subsection 
                (c)(1)(D)), and
                    ``(B) in the case of property which is part of the 
                heating, cooling, ventilation, and hot water systems, 
                the heating, cooling, ventilation, and hot water system 
                shall be treated as meeting the target under paragraph 
                (1)(A)(ii) if it would meet the requirement in 
                subsection (c)(1)(D) if combined with a building 
                envelope system and lighting system which met their 
                respective targets under paragraph (1)(A)(ii) 
                (including interim targets in effect under subsection 
                (f) and subparagraph (A)).''.
    (e) Modifications to Lighting Standards.--
            (1) Standards to be alternate standards.--Subsection (f) of 
        section 179D of such Code is amended by--
                    (A) striking ``Interim'' in the heading and 
                inserting ``Alternative'', and
                    (B) inserting ``, or, if the taxpayer elects, in 
                lieu of the target set forth in such final 
                regulations'' after ``lighting system'' at the end of 
                the matter preceding paragraph (1).
            (2) Qualified individuals.--Section 179D(d)(6)(C) of such 
        Code is amended by adding at the end the following: ``For 
        purposes of certification of whether the alternative target for 
        lighting systems under subsection (f) is met, individuals 
        qualified to determine compliance shall include individuals who 
        are certified as Lighting Certified (LC) by the National 
        Council on Qualifications for the Lighting Professions, 
        Certified Energy Managers (CEM) by the Association of Energy 
        Engineers, and LEED Accredited Professionals (AP) by the U.S. 
        Green Buildings Council.''.
            (3) Requirement for bilevel switching.--Section 179D(f)(2) 
        of such Code is amended by adding at the end the following new 
        subparagraph:
            ``(3) Application of subsection to bilevel switching.--
                    ``(A) In general.--Notwithstanding paragraph 
                (2)(C)(i), this subsection shall apply to a system 
                which does not include provisions for bilevel switching 
                if the reduction in lighting power density is at least 
                37.5 percent of the minimum requirements in Table 
                9.3.1.1 or Table 9.3.1.2 (not including additional 
                interior lighting allowances) of Standard 90.1-2001.
                    ``(B) Reduction in deduction.--In the case of a 
                system to which this subsection applies by reason of 
                subparagraph (A), paragraph (2) shall be applied--
                            ``(i) by striking `40 percent' and 
                        inserting `50 percent' in subparagraph (A) 
                        thereof, and
                            ``(ii) in subparagraph (B)(ii) thereof--
                                    ``(I) by striking `25 percentage 
                                points' and inserting `37.5 percentage 
                                points'; and
                                    ``(II) by striking `15' and 
                                inserting `12.5'.''.
    (f) Public Property.--Paragraph (4) of section 179(d) of such Code 
is amended by striking ``the Secretary shall promulgate a regulation to 
allow the allocation of the deduction'' and inserting ``the deduction 
under this section shall be allowed''.
    (g) Effective Date.--The amendments made by this section shall 
apply to property placed in service in taxable years beginning after 
the date of the enactment of this Act.

SEC. 2004. DEDUCTION FOR ENERGY EFFICIENT LOW-RISE BUILDINGS.

    (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. ENERGY EFFICIENT LOW-RISE BUILDINGS DEDUCTION.

    ``(a) In General.--There shall be allowed as a deduction an amount 
equal to the amount of qualified energy efficiency expenditures paid or 
incurred by the taxpayer during the taxable year.
    ``(b) Limitations.--
            ``(1) In general.--The amount allowed as a credit under 
        subsection (a) with respect to any dwelling unit shall not 
        exceed the product of--
                    ``(A) the qualified energy savings achieved, and
                    ``(B) $12,000.
            ``(2) Minimum amount of qualified energy savings.--No 
        credit shall be allowed under subsection (a) with respect to 
        any dwelling unit in a qualified low-rise building which 
        achieves a qualified energy savings of less than 20 percent.
    ``(c) Qualified Energy Efficiency Expenditures.--For purposes of 
this section--
            ``(1) In general.--The term `qualified energy efficiency 
        expenditures' means any amount paid or incurred which is 
        related to producing qualified energy savings in any dwelling 
        unit located in a qualified low-rise building of the taxpayer 
        which is located in the United States.
            ``(2) No double benefit for certain expenditures.--The term 
        `qualified energy efficiency expenditures' shall not include 
        any expenditure for any property for which a deduction has been 
        allowed to the taxpayer under section 179G.
            ``(3) Qualified low-rise building.--The term `qualified 
        low-rise building' means a building--
                    ``(A) with respect to which depreciation is 
                allowable under section 167,
                    ``(B) which is used for multifamily housing, and
                    ``(C) which is not within the scope of Standard 
                90.1-2001 (as defined under section 179D(c)(2)).
    ``(d) Qualified Energy Savings.--For purposes of this section--
            ``(1) In general.--The term `qualified energy savings' 
        means, with respect to any dwelling unit in a qualified low-
        rise building, the amount (measured as a percentage) by which--
                    ``(A) the annual energy use with respect to such 
                dwelling unit after qualified energy efficiency 
                expenditures are made, as certified under paragraph 
                (2), is less than
                    ``(B) the annual energy use with respect to such 
                dwelling unit before the qualified energy efficiency 
                expenditures were made, as certified under paragraph 
                (2).
        In determining annual energy use under subparagraph (B), any 
        energy efficiency improvements which are not attributable to 
        qualified energy efficiency expenditures shall be disregarded.
            ``(2) Certification.--
                    ``(A) In general.--The Secretary, in consultation 
                with the Secretary of Energy, shall prescribe the 
                procedures and method for the making of certifications 
                under this paragraph based on the Residential Energy 
                Services Network (RESNET) Technical Guidelines in 
                effect on the date of the enactment of this Act.
                    ``(B) Qualified individuals.--Any certification 
                made under this paragraph may only be made by an 
                individual who is recognized by an organization 
                certified by the Secretary for such purposes.
    ``(e) Special Rules.--For purposes of this section, rules similar 
to the rules under paragraphs (8) and (9) of section 25D(e) shall 
apply.
    ``(f) Basis Adjustments.--For purposes of this subtitle, if a 
credit is allowed under this section with respect to any expenditure 
with respect to any property, the increase in the basis of such 
property which would (but for this subsection) result from such 
expenditure shall be reduced by the amount of the credit so allowed.
    ``(g) Termination.--This section shall not apply with respect to 
any property placed in service after December 31, 2013.''.
    (b) Conforming Amendments.--
            (1) Section 263(a)(1) of such Code is amended by striking 
        ``or'' at the end of subparagraph (K), by striking the period 
        at the end of subparagraph (L) and inserting ``, or'', and by 
        inserting after subparagraph (L) the following new 
        subparagraph:
                    ``(M) expenditures for which a deduction is allowed 
                under section 179F.''.
            (2) Section 312(k)(3)(B) of such Code is amended by 
        striking ``179, 179A, 179B, 179C, 179D, or 179E'' each place it 
        appears in the heading and text and inserting ``179, 179A, 
        179B, 179C, 179D, 179E, or 179F''.
            (3) Section 1016(a) of such Code 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(f).''.
            (4) Section 1245(a) of such Code is amended by inserting 
        ``179F,'' after ``179E,'' both places it appears in paragraphs 
        (2)(C) and (3)(C).
            (5) The table of sections for part VI of subchapter B of 
        such Code is amended by inserting after the item relating to 
        section 179E the following new item:

``Sec. 179F. Energy efficient low-rise buildings deduction.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred in taxable years beginning after the 
date of the enactment of this Act.

             Subtitle B--Clean Coal Alternative Transition

SEC. 2101. CARBON DIOXIDE STORAGE CAPACITY ASSESSMENT.

    (a) Definitions.--In this section:
            (1) Assessment.--The term ``assessment'' means the national 
        assessment of capacity for carbon dioxide completed under 
        subsection (f).
            (2) Capacity.--The term ``capacity'' means the portion of a 
        storage formation that can retain carbon dioxide in accordance 
        with the requirements (including physical, geological, and 
        economic requirements) established under the methodology 
        developed under subsection (b).
            (3) Engineered hazard.--The term ``engineered hazard'' 
        includes the location and completion history of any well that 
        could affect potential storage.
            (4) Risk.--The term ``risk'' includes any risk posed by 
        geomechanical, geochemical, hydrogeological, structural, and 
        engineered hazards.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior, acting through the Director of the United 
        States Geological Survey.
            (6) Storage formation.--The term ``storage formation'' 
        means a deep saline formation, unmineable coal seam, or oil or 
        gas reservoir that is capable of accommodating a volume of 
        industrial carbon dioxide.
    (b) Methodology.--Not later than 1 year after the date of enactment 
of this Act, the Secretary shall develop a methodology for conducting 
an assessment under subsection (f), taking into consideration--
            (1) the geographical extent of all potential storage 
        formations in all States;
            (2) the capacity of the potential storage formations;
            (3) the injectivity of the potential storage formations;
            (4) an estimate of potential volumes of oil and gas 
        recoverable by injection and storage of industrial carbon 
        dioxide in potential storage formations;
            (5) the risk associated with the potential storage 
        formations; and
            (6) the Carbon Sequestration Atlas of the United States and 
        Canada that was completed by the Department of Energy in April 
        2006.
    (c) Coordination.--
            (1) Federal coordination.--
                    (A) Consultation.--The Secretary shall consult with 
                the Secretary of Energy and the Administrator of the 
                Environmental Protection Agency on issues of data 
                sharing, format, development of the methodology, and 
                content of the assessment required under this title to 
                ensure the maximum usefulness and success of the 
                assessment.
                    (B) Cooperation.--The Secretary of Energy and the 
                Administrator shall cooperate with the Secretary to 
                ensure, to the maximum extent practicable, the 
                usefulness and success of the assessment.
            (2) State coordination.--The Secretary shall consult with 
        State geological surveys and other relevant entities to ensure, 
        to the maximum extent practicable, the usefulness and success 
        of the assessment.
    (d) External Review and Publication.--On completion of the 
methodology under subsection (b), the Secretary shall--
            (1) publish the methodology and solicit comments from the 
        public and the heads of affected Federal and State agencies;
            (2) establish a panel of individuals with expertise in the 
        matters described in paragraphs (1) through (5) of subsection 
        (b) composed, as appropriate, of representatives of Federal 
        agencies, institutions of higher education, nongovernmental 
        organizations, State organizations, industry, and international 
        geoscience organizations to review the methodology and comments 
        received under paragraph (1); and
            (3) on completion of the review under paragraph (2), 
        publish in the Federal Register the revised final methodology.
    (e) Periodic Updates.--The methodology developed under this section 
shall be updated periodically (including at least once every 5 years) 
to incorporate new data as the data becomes available.
    (f) National Assessment.--
            (1) In general.--Not later than 2 years after the date of 
        publication of the methodology under subsection (d)(1), the 
        Secretary, in consultation with the Secretary of Energy and 
        State geological surveys, shall complete a national assessment 
        of capacity for carbon dioxide in accordance with the 
        methodology.
            (2) Geological verification.--As part of the assessment 
        under this subsection, the Secretary shall carry out a drilling 
        program to supplement the geological data relevant to 
        determining storage capacity of carbon dioxide in geological 
        storage formations, including--
                    (A) well log data;
                    (B) core data; and
                    (C) fluid sample data.
            (3) Partnership with other drilling programs.--As part of 
        the drilling program under paragraph (2), the Secretary shall 
        enter, as appropriate, into partnerships with other entities to 
        collect and integrate data from other drilling programs 
        relevant to the storage of carbon dioxide in geologic 
        formations.
            (4) Incorporation into natcarb.--
                    (A) In general.--On completion of the assessment, 
                the Secretary of Energy shall incorporate the results 
                of the assessment using the NatCarb database, to the 
                maximum extent practicable.
                    (B) Ranking.--The database shall include the data 
                necessary to rank potential storage sites for capacity 
                and risk, across the United States, within each State, 
                by formation, and within each basin.
            (5) Report.--Not later than 180 days after the date on 
        which the assessment is completed, the Secretary shall submit 
        to the Committee on Energy and Natural Resources of the Senate 
        and the Committee on Science and Technology of the House of 
        Representatives a report describing the findings under the 
        assessment.
            (6) Periodic updates.--The national assessment developed 
        under this section shall be updated periodically (including at 
        least once every 5 years) to support public and private sector 
        decisionmaking.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $30,000,000 for the period of 
fiscal years 2009 through 2013.

SEC. 2102. EFFICIENCY AUDIT AND QUANTIFICATION.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary of Energy (referred to in this section as 
the ``Secretary'') shall conduct an efficiency audit, and quantify the 
operating efficiencies, of all coal-fired electric generation 
facilities in the United States.
    (b) Report.--Not later than 180 days after the date of completion 
of the audit and quantification under subsection (a), the Secretary, in 
consultation with the Administrator of the Environmental Protection 
Agency, shall submit to the Committees on Energy and Natural Resources 
and Environment and Public Works of the Senate and the Committee on 
Energy and Commerce of the House of Representatives, a report that--
            (1) identifies all commercially available technologies, 
        processes, and other approaches to increasing the efficiency of 
        the coal-fired electric generation facilities audited;
            (2) includes a methodology for determining which 
        technologies and processes, in the absence of the obstacles 
        identified under paragraph (3), would be sufficiently cost 
        effective to recoup all costs of the technologies and processes 
        in not more than 5 years after the date of installation or 
        implementation, respectively, of the technologies or processes;
            (3) identifies the technical, economic, regulatory, 
        environmental, and other obstacles to coal-fired electric 
        generation facilities undertaking the installation of the 
        technologies or incorporation of the processes described in 
        paragraph (2);
            (4) includes recommendations as to legislative, 
        administrative, and other actions that could reduce or 
        eliminate the obstacles identified under paragraph (3); and
            (5) includes calculations of--
                    (A) the additional power to be expected from the 
                installation or implementation of those technologies 
                and processes that are considered to be economic under 
                the methodology described in paragraph (2); and
                    (B) the greenhouse gas emissions that are or could 
                be avoided through installation or implementation of 
                those technologies and processes.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

                   Subtitle C--Natural Gas Transition

SEC. 2201. EXTENSION OF ALTERNATIVE VEHICLE CREDIT PURCHASE OF NATURAL 
              GAS POWERED VEHICLE FROM 2010 TILL 2020; INCREASE IN 
              AMOUNT OF CREDIT FOR CARS.

    (a) Extension.--Section 30B(k)(4) of the Internal Revenue Code of 
1986 is amended by striking ``2010'' and inserting ``2020''.
    (b) Increase in Credit Amount for Cars.--
            (1) In general.--Subparagraph (A) of section (30)(B)(e)(3) 
        of such Code is amended by striking ``$5,000'' and inserting 
        ``$8,000''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to property purchased after December 31, 2008.

SEC. 2202. EXTENSION OF CREDIT OF 50 PERCENT OF THE AUTO CONVERSION 
              COST TO A NATURAL GAS POWERED AUTOMOBILE FROM GASOLINE OR 
              DIESEL POWERED ENGINE AND THE CNG HOME FILLING STATION 
              COST.

    (a) Auto Conversion.--Section 30B(k)(4) of the Internal Revenue 
Code is amended by striking ``2010'' and inserting ``2020''.
    (b) CNG Home Filling Station.--Section 30C(e)(6) of such Code is 
amended--
            (1) in the text by striking ``2011'' and inserting 
        ``2021'', and
            (2) in the heading by striking ``and 2010'' and inserting 
        ``through 2020''.

             Subtitle D--Carbon Capture and Storage Credit

SEC. 2301. INCREASE IN CARBON CAPTURE AND STORAGE TAX CREDIT.

    (a) Application of Section.--Section 45Q(e) of the Internal Revenue 
Code of 1986 is amended by striking ``75,000,000'' and inserting 
``225,000,000''.
    (b) Increase in Credit Amount.--
            (1) Section 45(a) of such Code is amended--
                    (A) in paragraph (1) by striking ``$20'' and 
                inserting ``$50'', and
                    (B) in paragraph (2) by striking ``$10'' and 
                inserting ``$40''.
            (2) Conforming amendment.--Section 45Q(d)(7) of such Code 
        is amended--
                    (A) by striking ``2009'' and inserting ``2010'', 
                and
                    (B) by striking ``2008'' and inserting ``2009''.

                         TITLE III--PRODUCTION

                  Subtitle A--Outer Continental Shelf

SEC. 3001. END MORATORIUM OF OIL AND GAS LEASING IN CERTAIN AREAS OF 
              THE GULF OF MEXICO.

    (a) Repeal of Moratorium.--
            (1) Repeal.--Section 104 of the Gulf of Mexico Energy 
        Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109-432) 
        is repealed.
            (2) National defense area.--Section 12(d) of the Outer 
        Continental Shelf Lands Act (43 U.S.C. 1341(d)) is amended--
                    (A) by striking ``(d) The United States'' and 
                inserting the following:
    ``(d) Restriction of Areas for National Defense.--
            ``(1) In general.--The United States''; and
                    (B) by adding at the end the following:
            ``(2) Review.--Annually, the Secretary of Defense shall 
        review the areas of the outer Continental Shelf that have been 
        designated as restricted from exploration and operation to 
        determine whether the areas should remain under restriction.''.
    (b) Leasing of Moratorium Areas.--
            (1) In general.--As soon as practicable, but not later than 
        1 year, after the date of enactment of this Act, the Secretary 
        shall offer for leasing under the Outer Continental Shelf Lands 
        Act (43 U.S.C. 1331 et seq.), any areas made available for 
        leasing as a result of the enactment of subsection (a).
            (2) Leasing plan.--Any areas made available for leasing 
        under paragraph (1) shall be offered for lease under this 
        section notwithstanding the omission of any of these respective 
        areas from the applicable 5-year plan developed by the 
        Secretary pursuant to section 18 of the Outer Continental Shelf 
        Lands Act (43 U.S.C. 1344).
    (c) Military Mission.--Section 104 of the Gulf of Mexico Energy 
Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109-432) is 
further amended--
            (1) by striking ``(b) Military Mission Line.--
        Notwithstanding subsection (a), the'' and inserting ``(c) 
        Military Mission.--'';
            (2) by redesignating subsection (c) as subsection (b);
            (3) in subsection (b)(1), as so redesignated, by striking 
        ``paragraph (2) or (3) of subsection (a)'' and inserting 
        ``paragraph (5)''; and
            (4) by adding at the end the following:
            ``(5) Areas described.--The areas referred to in paragraph 
        (1) are--
                    ``(A) any area in the Eastern Planning Area that is 
                within 125 miles of the coastline of the State of 
                Florida; and
                    ``(B) any area in the Central Planning Area that 
                is--
                            ``(i) within--
                                    ``(I) the 181 Area; and
                                    ``(II) 100 miles of the coastline 
                                of the State of Florida; or
                            ``(ii)(I) outside the 181 Area;
                            ``(II) east of the western edge of the 
                        Pensacola Official Protraction Diagram (UTM X 
                        coordinate 1,393,920 (NAD 27 feet)); and
                            ``(III) within 100 miles of the coastline 
                        of the State of Florida.''.

SEC. 3002. OUTER CONTINENTAL SHELF DIRECTED LEASE SALES.

    (a) 209 Lease Sale.--The Secretary of the Interior (referred to in 
this section as the ``Secretary'') shall offer the Beaufort Sea Program 
Area for oil and gas leasing pursuant to the Outer Continental Shelf 
Lands Act (43 U.S.C. 1331 et seq.) in 2010 as established in the 2007-
2012 Lease Sale Schedule.
    (b) 210 Lease Sale.--The Secretary shall offer the Western Gulf of 
Mexico Program Area for oil and gas leasing pursuant to the Outer 
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) in 2009 as 
established in the 2007-2012 Lease Sale Schedule.
    (c) 212 Lease Sale.--The Secretary shall offer the Chukchi Sea 
Program Area for oil and gas leasing pursuant to the Outer Continental 
Shelf Lands Act (43 U.S.C. 1331 et seq.) in 2010 as established in the 
2007-2012 Lease Sale Schedule.
    (d) 213 Lease Sale.--The Secretary shall offer the Central Gulf of 
Mexico Program Area for oil and gas leasing pursuant to the Outer 
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) in 2010 as 
established in the 2007-2012 Lease Sale Schedule.
    (e) 215 Lease Sale.--The Secretary shall offer the Western Gulf of 
Mexico Program Area for oil and gas leasing pursuant to the Outer 
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) in 2010 as 
established in the 2007-2012 Lease Sale Schedule.
    (f) 216 Lease Sale.--The Secretary shall offer the Central Gulf of 
Mexico Program Area for oil and gas leasing pursuant to the Outer 
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) in 2011 as 
established in the 2007-2012 Lease Sale Schedule.
    (g) 217 Lease Sale.--The Secretary shall offer the Beaufort Sea 
Program Area for oil and gas leasing pursuant to the Outer Continental 
Shelf Lands Act (43 U.S.C. 1331 et seq.) in 2011 as established in the 
2007-2012 Lease Sale Schedule.
    (h) 214 Lease Sale.--The Secretary shall offer the North Aleutian 
Basin Program Area for oil and gas leasing pursuant to the Outer 
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) in 2011 as 
established in the 2007-2012 Lease Sale Schedule.
    (i) 218 Lease Sale.--The Secretary shall offer the Western Gulf of 
Mexico Program Area for oil and gas leasing pursuant to the Outer 
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) in 2011 as 
established in the 2007-2012 Lease Sale Schedule.
    (j) 219 Lease Sale.--The Secretary shall offer the Cook Inlet 
Program Area for oil and gas leasing pursuant to the Outer Continental 
Shelf Lands Act (43 U.S.C. 1331 et seq.) in 2011 as established in the 
2007-2012 Lease Sale Schedule.
    (k) 220 Lease Sale.--The Secretary shall offer the Mid-Atlantic 
Program Area for oil and gas leasing pursuant to the Outer Continental 
Shelf Lands Act (43 U.S.C. 1331 et seq.) in 2011 as established in the 
2007-2012 Lease Sale Schedule.
    (l) 221 Lease Sale.--The Secretary shall offer the Chukchi Sea 
Program Area for oil and gas leasing pursuant to the Outer Continental 
Shelf Lands Act (43 U.S.C. 1331 et seq.) in 2012 as established in the 
2007-2012 Lease Sale Schedule.
    (m) 222 Lease Sale.--The Secretary shall offer the Central Gulf of 
Mexico Program Area for oil and gas leasing pursuant to the Outer 
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) in 2012 as 
established in the 2007-2012 Lease Sale Schedule.

SEC. 3003. LEASING PROGRAM CONSIDERED APPROVED.

    (a) In General.--The Draft Proposed Outer Continental Shelf Oil and 
Gas Leasing Program 2010-2015 issued by the Secretary of the Interior 
(referred to in this section as the ``Secretary'') under section 18 of 
the Outer Continental Shelf Lands Act (43 U.S.C. 1344) is considered to 
have been approved by the Secretary as a final oil and gas leasing 
program under that section.
    (b) Final Environmental Impact Statement.--The Secretary is 
considered to have issued a final environmental impact statement for 
the program described in subsection (a) in accordance with all of the 
requirements of sections 18, 19, and 20 of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1344, 1345, and 1346), in accordance with all 
requirements under section 102(2)(C) of the National Environmental 
Policy Act of 1969 (42 U.S.C. 4332(2)(C)), and in accordance with all 
requirements of the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 
et seq.)

SEC. 3004. OUTER CONTINENTAL SHELF LEASE SALES.

    (a) Requirement To Conduct Lease Sales.--
            (1) In general.--Except as provided in paragraph (2), not 
        later than one year after the date of enactment of this Act and 
        annually thereafter, the Secretary of the Interior (referred to 
        in this section as the ``Secretary'') shall conduct at a 
        minimum one lease sale in an Atlantic Planning Area, one lease 
        sale in the Pacific Planning Area, one lease sale in the Alaska 
        Planning Area, and three lease sales in a Gulf of Mexico 
        Planning Area for which the Secretary determines that there is 
        a commercial interest in purchasing Federal oil and gas leases 
        for production on the outer Continental Shelf.
            (2) Subsequent determinations and sales.--If the Secretary 
        determines that there is not a commercial interest in 
        purchasing Federal oil and gas leases for production on the 
        outer Continental Shelf in a planning area under this 
        subsection, not later than 2 years after the date of enactment 
        of the determination and every 2 years thereafter, the 
        Secretary shall--
                    (A) determine whether there is a commercial 
                interest in purchasing Federal oil and gas leases for 
                production on the outer Continental Shelf in the 
                planning area; and
                    (B) if the Secretary determines that there is a 
                commercial interest described in subparagraph (A), 
                conduct a lease sale in the planning area
    (b) Leasing Plan.--Any areas made available for leasing under 
subsection (a) shall be offered for lease under this section 
notwithstanding the omission of any of these respective areas from the 
applicable 5-year plan developed by the Secretary pursuant to section 
18 of the Outer Continental Shelf Lands Act (43 U.S.C. 1344).

SEC. 3005. RESTRICTIONS ON LEASING OF THE OUTER CONTINENTAL SHELF.

    (a) State Opt-Out.--No lease authorizing a permanent surface energy 
project for the exploration, development, or production of oil or gas 
may be issued for any area of the outer Continental Shelf located 
within 10 miles of the coastline of a State if the State has notified 
the Secretary of the Interior that the State does not want to 
participate in such leasing.
    (b) Existing Leases Not Affected.--This section shall not affect 
any lease issued before the date of enactment of this Act.

SEC. 3006. SHARING OF OCS RECEIPTS WITH STATES AND LOCAL GOVERNMENTS.

    Section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338) 
is amended as follows:
            (1) By designating the existing text as subsection (a).
            (2) In subsection (a) (as so designated) by inserting ``, 
        if not paid as otherwise provided in this title'' after 
        ``receipts''.
            (3) by adding the following:
    ``(b) Treatment of OCS Receipts.--
            ``(1) Deposit.--The Secretary shall deposit into a separate 
        account in the Treasury the portion of OCS Receipts for each 
        fiscal year that will be shared under paragraph (2).
            ``(2) Immediate receipts sharing.--Beginning October 1, 
        2009, the Secretary shall share 50 percent of OCS Receipts 
        derived from all leases, except that the Secretary shall only 
        share 25 percent of such OCS Receipts derived from all such 
        leases within a State's Adjacent Zone if leasing is not allowed 
        within at least 25 percent of that State's Adjacent Zone 
        located completely within 75 miles of any coastline.
            ``(3) Allocations.--The Secretary shall allocate the OCS 
        Receipts deposited into the separate account established by 
        paragraph (1) that are shared under paragraph (2) as follows:
                    ``(A) Bonus bids.--Deposits derived from bonus bids 
                from a leased tract, including interest thereon, shall 
                be allocated at the end of each fiscal year to the 
                Adjacent State.
                    ``(B) Royalties.--Deposits derived from royalties 
                and net profit shares from a leased tract, including 
                interest thereon, shall be allocated at the end of each 
                fiscal year as follows:
                            ``(i) 50 percent to the Adjacent State.
                            ``(ii) 50 percent to all States, including 
                        the Adjacent State, having a coastline point 
                        within 300 miles of the leased tract, divided 
                        equally, if such State allows leasing within at 
                        least 25 percent of its Adjacent Zone within 75 
                        miles of the coastline.
                    ``(C) Limitation if not admitted to the union as a 
                state.--Any entity defined as a `State' under section 
                2(r), that has not been admitted to the Union as a 
                State shall only be entitled to one-half of a `State' 
                share under this paragraph.
    ``(c) Transmission of Allocations.--
            ``(1) In general.--Not later than 90 days after the end of 
        each fiscal year, the Secretary shall transmit--
                    ``(A) to each State 60 percent of such State's 
                allocations under subsections (b)(2), (b)(3)(A), and 
                (b)(3)(B) (i) and (ii) for the immediate prior fiscal 
                year; and
                    ``(B) to each coastal county-equivalent and 
                municipal political subdivisions of such State a total 
                of 40 percent of such State's allocations under 
                subsections (b)(2), (b)(3)(A), and (b)(3)(B) (i) and 
                (ii), for the immediate prior fiscal year, together 
                with all accrued interest thereon.
            ``(2) Allocations to coastal county-equivalent political 
        subdivisions.--The Secretary shall make an initial allocation 
        of the OCS Receipts to be shared under paragraph (1)(B) as 
        follows:
                    ``(A) 25 percent shall be allocated to coastal 
                county-equivalent political subdivisions that are 
                completely more than 25 miles landward of the coastline 
                and at least a part of which lies not more than 75 
                miles landward from the coastline, with the allocation 
                among such coastal county-equivalent political 
                subdivisions based on population.
                    ``(B) 75 percent shall be allocated to coastal 
                county-equivalent political subdivisions that are 
                completely or partially less than 25 miles landward of 
                the coastline, with the allocation among such coastal 
                county-equivalent political subdivisions to be further 
                allocated as follows:
                            ``(i) 25 percent shall be allocated based 
                        on the ratio of such coastal county-equivalent 
                        political subdivision's population to the 
                        coastal population of all coastal county-
                        equivalent political subdivisions in the State.
                            ``(ii) 25 percent shall be allocated based 
                        on the ratio of such coastal county-equivalent 
                        political subdivision's coastline miles to the 
                        coastline miles of all coastal county-
                        equivalent political subdivisions in the State 
                        as calculated by the Secretary. In such 
                        calculations, coastal county-equivalent 
                        political subdivisions without a coastline 
                        shall be considered to have 50 percent of the 
                        average coastline miles of the coastal county-
                        equivalent political subdivisions that do have 
                        coastlines.
                            ``(iii) 50 percent shall be allocated 
                        equally to all coastal county-equivalent 
                        political subdivisions having a coastline point 
                        within 300 miles of the leased tract for which 
                        OCS Receipts are being shared.
            ``(3) Allocations to coastal municipal political 
        subdivisions.--The initial allocation to each coastal county-
        equivalent political subdivision under paragraph (2) shall be 
        further allocated to the coastal county-equivalent political 
        subdivision and any coastal municipal political subdivisions 
        located partially or wholly within the boundaries of the 
        coastal county-equivalent political subdivision as follows:
                    ``(A) One-third shall be allocated to the coastal 
                county-equivalent political subdivision.
                    ``(B) Two-thirds shall be allocated on a per capita 
                basis to the municipal political subdivisions and the 
                county-equivalent political subdivision, with the 
                allocation to the latter based upon its population not 
                included within the boundaries of a municipal political 
                subdivision.
    ``(d) Investment of Deposits.--Amounts deposited under this section 
shall be invested by the Secretary of the Treasury in securities backed 
by the full faith and credit of the United States having maturities 
suitable to the needs of the account in which they are deposited and 
yielding the highest reasonably available interest rates as determined 
by the Secretary of the Treasury.
    ``(e) Use of Funds.--A recipient of funds under this section may 
use the funds for one or more of the following:
            ``(1) To reduce in-State college tuition at public 
        institutions of higher learning and otherwise support public 
        education, including career technical education.
            ``(2) To make transportation infrastructure improvements.
            ``(3) To reduce taxes.
            ``(4) To promote, fund, and provide for--
                    ``(A) coastal or environmental restoration;
                    ``(B) fish, wildlife, and marine life habitat 
                enhancement;
                    ``(C) waterways construction and maintenance;
                    ``(D) levee construction and maintenance and shore 
                protection; and
                    ``(E) marine and oceanographic education and 
                research.
            ``(5) To promote, fund, and provide for--
                    ``(A) infrastructure associated with energy 
                production activities conducted on the outer 
                Continental Shelf;
                    ``(B) energy demonstration projects;
                    ``(C) supporting infrastructure for shore-based 
                energy projects;
                    ``(D) State geologic programs, including geologic 
                mapping and data storage programs, and State 
                geophysical data acquisition;
                    ``(E) State seismic monitoring programs, including 
                operation of monitoring stations;
                    ``(F) development of oil and gas resources through 
                enhanced recovery techniques;
                    ``(G) alternative energy development, including bio 
                fuels, coal-to-liquids, oil shale, tar sands, 
                geothermal, geopressure, wind, waves, currents, hydro, 
                and other renewable energy;
                    ``(H) energy efficiency and conservation programs; 
                and
                    ``(I) front-end engineering and design for 
                facilities that produce liquid fuels from hydrocarbons 
                and other biological matter.
            ``(6) To promote, fund, and provide for--
                    ``(A) historic preservation programs and projects;
                    ``(B) natural disaster planning and response; and
                    ``(C) hurricane and natural disaster insurance 
                programs.
            ``(7) For any other purpose as determined by State law.
    ``(f) No Accounting Required.--No recipient of funds under this 
section shall be required to account to the Federal Government for the 
expenditure of such funds, except as otherwise may be required by law. 
However, States may enact legislation providing for accounting for and 
auditing of such expenditures. Further, funds allocated under this 
section to States and political subdivisions may be used as matching 
funds for other Federal programs.
    ``(g) Effect of Future Laws.--Enactment of any future Federal 
statute that has the effect, as determined by the Secretary, of 
restricting any Federal agency from spending appropriated funds, or 
otherwise preventing it from fulfilling its pre-existing 
responsibilities as of the date of enactment of the statute, unless 
such responsibilities have been reassigned to another Federal agency by 
the statute with no prevention of performance, to issue any permit or 
other approval impacting on the OCS oil and gas leasing program, or any 
lease issued thereunder, or to implement any provision of this Act 
shall automatically prohibit any sharing of OCS Receipts under this 
section directly with the States, and their coastal political 
subdivisions, for the duration of the restriction. The Secretary shall 
make the determination of the existence of such restricting effects 
within 30 days of a petition by any outer Continental Shelf lessee or 
producing State.
    ``(h) Definitions.--In this section:
            ``(1) Coastal county-equivalent political subdivision.--The 
        term `coastal county-equivalent political subdivision' means a 
        political jurisdiction immediately below the level of State 
        government, including a county, parish, borough in Alaska, 
        independent municipality not part of a county, parish, or 
        borough in Alaska, or other equivalent subdivision of a coastal 
        State, that lies within the coastal zone.
            ``(2) Coastal municipal political subdivision.--The term 
        `coastal municipal political subdivision' means a municipality 
        located within and part of a county, parish, borough in Alaska, 
        or other equivalent subdivision of a State, all or part of 
        which coastal municipal political subdivision lies within the 
        coastal zone.
            ``(3) Coastal population.--The term `coastal population' 
        means the population of all coastal county-equivalent political 
        subdivisions, as determined by the most recent official data of 
        the Census Bureau.
            ``(4) Coastal zone.--The term `coastal zone' means that 
        portion of a coastal State, including the entire territory of 
        any coastal county-equivalent political subdivision at least a 
        part of which lies, within 75 miles landward from the 
        coastline, or a greater distance as determined by State law 
        enacted to implement this section.
            ``(5) Bonus bids.--The term `bonus bids' means all funds 
        received by the Secretary to issue an outer Continental Shelf 
        minerals lease.
            ``(6) Royalties.--The term `royalties' means all funds 
        received by the Secretary from production of oil or natural 
        gas, or the sale of production taken in-kind, or from net 
        profit shares, from an outer Continental Shelf minerals lease.
            ``(7) Producing state.--The term `producing State' means an 
        Adjacent State having an Adjacent Zone containing leased tracts 
        from which OCS Receipts were derived.
            ``(8) OCS receipts.--The term `OCS Receipts' means bonus 
        bids and royalties, excluding royalties from leases amended 
        under the authority of section 8(s) of this Act.''.

                    Subtitle B--Arctic Coastal Plain

SEC. 3101. DEFINITIONS.

    In this subtitle:
            (1) Coastal plain.--The term ``Coastal Plain'' means that 
        area identified as the ``1002 Coastal Plain Area'' on the map.
            (2) Federal agreement.--The term ``Federal Agreement'' 
        means the Federal Agreement and Grant Right-of-Way for the 
        Trans-Alaska Pipeline issued on January 23, 1974, in accordance 
        with section 28 of the Mineral Leasing Act (30 U.S.C. 185) and 
        the Trans-Alaska Pipeline Authorization Act (43 U.S.C. 1651 et 
        seq.).
            (3) Final statement.--The term ``Final Statement'' means 
        the final legislative environmental impact statement on the 
        Coastal Plain, dated April 1987, and prepared pursuant to 
        section 1002 of the Alaska National Interest Lands Conservation 
        Act (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)).
            (4) Map.--The term ``map'' means the map entitled ``Arctic 
        National Wildlife Refuge'', dated September 2005, and prepared 
        by the United States Geological Survey.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior (or the designee of the Secretary), acting 
        through the Director of the Bureau of Land Management, in 
        consultation with the Director of the United States Fish and 
        Wildlife Service.

SEC. 3102. LEASING PROGRAM FOR LAND WITHIN THE COASTAL PLAIN.

    (a) In General.--The Secretary shall take such actions as are 
necessary--
            (1) to establish and implement, in accordance with this 
        subtitle, 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 this subtitle through regulations, lease 
        terms, conditions, restrictions, prohibitions, stipulations, 
        and other provisions that--
                    (A) ensure the oil and gas exploration, 
                development, and production activities on the Coastal 
                Plain will result in no significant adverse effect on 
                fish and wildlife, their habitat, subsistence 
                resources, and the environment; and
                    (B) require the application of the best 
                commercially available technology for oil and gas 
                exploration, development, and production to all 
                exploration, development, and production operations 
                under this subtitle in a manner that ensures the 
                receipt of fair market value by the public for the 
                mineral resources to be leased.
    (b) Repeal.--
            (1) Repeal.--Section 1003 of the Alaska National Interest 
        Lands Conservation Act of 1980 (16 U.S.C. 3143) is repealed.
            (2) Conforming amendment.--The table of contents contained 
        in section 1 of that Act (16 U.S.C. 3101 note) is amended by 
        striking the item relating to section 1003.
            (3) Compliance with nepa for other actions.--
                    (A) In general.--Before conducting the first lease 
                sale under this subtitle, the Secretary shall prepare 
                an environmental impact statement in accordance with 
                the National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.) with respect to the actions 
                authorized by this subtitle that are not referred to in 
                paragraph (2).
                    (B) Identification and analysis.--Notwithstanding 
                any other provision of law, in carrying out this 
                paragraph, the Secretary shall not be required--
                            (i) to identify nonleasing alternative 
                        courses of action; or
                            (ii) to analyze the environmental effects 
                        of those courses of action.
                    (C) Identification of preferred action.--Not later 
                than 18 months after the date of enactment of this Act, 
                the Secretary shall--
                            (i) identify only a preferred action and a 
                        single leasing alternative for the first lease 
                        sale authorized under this subtitle; and
                            (ii) analyze the environmental effects and 
                        potential mitigation measures for those 2 
                        alternatives.
                    (D) Public comments.--In carrying out this 
                paragraph, the Secretary shall consider only public 
                comments that are filed not later than 20 days after 
                the date of publication of a draft environmental impact 
                statement.
                    (E) Effect of compliance.--Notwithstanding any 
                other provision of law, compliance with this paragraph 
                shall be considered to satisfy all requirements for the 
                analysis and consideration of the environmental effects 
                of proposed leasing under this subtitle.
    (c) Relationship to State and Local Authority.--Nothing in this 
subtitle expands or limits any State or local regulatory authority.
    (d) Special Areas.--
            (1) Designation.--
                    (A) In general.--The Secretary, after consultation 
                with the State of Alaska, the North Slope Borough, 
                Alaska, and the City of Kaktovik, Alaska, may designate 
                not more than 45,000 acres of the Coastal Plain as a 
                special area if the Secretary determines that the 
                special area would be of such unique character and 
                interest as to require special management and 
                regulatory protection.
                    (B) Sadlerochit spring area.--The Secretary shall 
                designate as a special area in accordance with 
                subparagraph (A) the Sadlerochit Spring area, 
                comprising approximately 4,000 acres as depicted on the 
                map.
            (2) Management.--The Secretary shall manage each special 
        area designated under this subsection in a manner that 
        preserves the unique and diverse character of the area, 
        including fish, wildlife, subsistence resources, and cultural 
        values of the area.
            (3) Exclusion from leasing or surface occupancy.--
                    (A) In general.--The Secretary may exclude any 
                special area designated under this subsection from 
                leasing.
                    (B) No surface occupancy.--If the Secretary leases 
                all or a portion of a special area for the purposes of 
                oil and gas exploration, development, production, and 
                related activities, there shall be no surface occupancy 
                of the land comprising the special area.
            (4) Directional drilling.--Notwithstanding any other 
        provision 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.
    (e) Limitation on Closed Areas.--The Secretary may not close land 
within the Coastal Plain to oil and gas leasing or to exploration, 
development, or production except in accordance with this subtitle.
    (f) Regulations.--
            (1) In general.--Not later than 15 months after the date of 
        enactment of this Act, the Secretary shall promulgate such 
        regulations as are necessary to carry out this subtitle, 
        including rules and regulations relating to protection of the 
        fish and wildlife, fish and wildlife habitat, subsistence 
        resources, and environment of the Coastal Plain.
            (2) Revision of regulations.--The Secretary shall 
        periodically review and, as appropriate, revise the rules and 
        regulations issued under paragraph (1) to reflect any 
        significant biological, environmental, scientific or 
        engineering data that come to the attention of the Secretary.

SEC. 3103. LEASE SALES.

    (a) In General.--Land may be leased pursuant to this subtitle to 
any person qualified to obtain a lease for deposits of oil and gas 
under the Mineral Leasing Act (30 U.S.C. 181 et seq.).
    (b) Procedures.--The Secretary shall, by regulation, establish 
procedures for--
            (1) receipt and consideration of sealed nominations for any 
        area in the Coastal Plain for inclusion in, or exclusion (as 
        provided in subsection (c)) from, a lease sale;
            (2) the holding of lease sales after that nomination 
        process; and
            (3) public notice of and comment on designation of areas to 
        be included in, or excluded from, a lease sale.
    (c) Lease Sale Bids.--Bidding for leases under this subtitle shall 
be by sealed competitive cash bonus bids.
    (d) Acreage Minimum in First Sale.--For the first lease sale under 
this subtitle, the Secretary shall offer for lease those tracts the 
Secretary considers to have the greatest potential for the discovery of 
hydrocarbons, taking into consideration nominations received pursuant 
to subsection (b)(1), but in no case less than 200,000 acres.
    (e) Timing of Lease Sales.--The Secretary shall--
            (1) not later than 22 months after the date of enactment of 
        this Act, conduct the first lease sale under this subtitle;
            (2) not later than 90 days after the date of the completion 
        of the sale, evaluate the bids in the sale and issue leases 
        resulting from the sale; and
            (3) conduct additional sales at appropriate intervals if 
        sufficient interest in exploration or development exists to 
        warrant the conduct of the additional sales.

SEC. 3104. GRANT OF LEASES BY THE SECRETARY.

    (a) In General.--On payment by a lessee of such bonus as may be 
accepted by the Secretary, the Secretary may grant to the highest 
responsible qualified bidder in a lease sale conducted pursuant to 
section 3103 a lease for any land on the Coastal Plain.
    (b) Subsequent Transfers.--
            (1) In general.--No lease issued under this subtitle may be 
        sold, exchanged, assigned, sublet, or otherwise transferred 
        except with the approval of the Secretary.
            (2) Condition for approval.--Before granting any approval 
        described in paragraph (1), the Secretary shall consult with 
        and give due consideration to the opinion of the Attorney 
        General.

SEC. 3105. LEASE TERMS AND CONDITIONS.

    An oil or gas lease issued pursuant to this subtitle shall--
            (1) provide for the payment of a royalty of not less than 
        12\1/2\ percent of the amount or value of the production 
        removed or sold from the lease, as determined by the Secretary 
        in accordance with regulations applicable to other Federal oil 
        and gas leases;
            (2) provide that the Secretary may close, on a seasonal 
        basis, such portions of the Coastal Plain to exploratory 
        drilling activities as are necessary to protect caribou calving 
        areas and other species of fish and wildlife;
            (3) require that each lessee of land within the Coastal 
        Plain shall be fully responsible and liable for the reclamation 
        of land within the Coastal Plain and any other Federal land 
        that is adversely affected in connection with exploration, 
        development, production, or transportation activities within 
        the Coastal Plain conducted 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, that reclamation responsibility and 
        liability to another person without the express written 
        approval of the Secretary;
            (5) provide that the standard of reclamation for land 
        required to be reclaimed under this subtitle shall be, to the 
        maximum extent practicable--
                    (A) a condition capable of supporting the uses that 
                the land was capable of supporting prior to any 
                exploration, development, or production activities; or
                    (B) on application by the lessee, to a higher or 
                better standard, as approved by the Secretary;
            (6) contain terms and conditions relating to protection of 
        fish and wildlife, fish and wildlife habitat, subsistence 
        resources, and the environment as required under section 
        3102(a)(2);
            (7) provide that each lessee, and each agent and contractor 
        of a lessee, use their best efforts to provide a fair share of 
        employment and contracting for Alaska Natives and Alaska Native 
        Corporations from throughout the State of Alaska, as determined 
        by the level of obligation previously agreed to in the Federal 
        Agreement; and
            (8) contain such other provisions as the Secretary 
        determines to be necessary to ensure compliance with this 
        subtitle and the regulations promulgated under this subtitle.

SEC. 3106. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

    (a) No Significant Adverse Effect Standard To Govern Authorized 
Coastal Plain Activities.--In accordance with section 3102, the 
Secretary shall administer this subtitle through regulations, lease 
terms, conditions, restrictions, prohibitions, stipulations, or other 
provisions that--
            (1) ensure, to the maximum extent practicable, that oil and 
        gas exploration, development, and production activities on the 
        Coastal Plain will result in no significant adverse effect on 
        fish and wildlife, fish and wildlife 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 surface acreage covered in 
        connection with the leasing program 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 
require, with respect to any proposed drilling and related activities 
on the Coastal Plain, 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, fish and wildlife habitat, 
        subsistence resources, subsistence uses, and the environment;
            (2) a plan be implemented to avoid, minimize, and mitigate 
        (in that order and to the maximum extent practicable) any 
        significant adverse effect identified under paragraph (1); and
            (3) the development of the plan shall occur after 
        consultation with the 1 or more agencies having jurisdiction 
        over matters mitigated by the plan.
    (c) Regulations To Protect Coastal Plain Fish and Wildlife 
Resources, Subsistence Users, and the Environment.--Before implementing 
the leasing program authorized by this subtitle, the Secretary shall 
prepare and issue regulations, lease terms, conditions, restrictions, 
prohibitions, stipulations, or other measures designed to ensure, to 
the maximum extent practicable, that the activities carried out on the 
Coastal Plain under this subtitle are conducted in a manner consistent 
with the purposes and environmental requirements of this subtitle.
    (d) Compliance With Federal and State Environmental Laws and Other 
Requirements.--The proposed regulations, lease terms, conditions, 
restrictions, prohibitions, and stipulations for the leasing program 
under this subtitle shall require--
            (1) compliance with all applicable provisions of Federal 
        and State environmental law (including regulations);
            (2) implementation of and compliance with--
                    (A) standards that are at least as effective as the 
                safety and environmental mitigation measures, as 
                described in items 1 through 29 on pages 167 through 
                169 of the Final Statement, on the Coastal Plain;
                    (B) seasonal limitations on exploration, 
                development, and related activities, as necessary, to 
                avoid significant adverse effects during periods of 
                concentrated fish and wildlife breeding, denning, 
                nesting, spawning, and migration;
                    (C) design safety and construction standards for 
                all pipelines and any access and service roads that 
                minimize, to the maximum extent practicable, adverse 
                effects on--
                            (i) the passage of migratory species (such 
                        as caribou); and
                            (ii) the flow of surface water by requiring 
                        the use of culverts, bridges, or other 
                        structural devices;
                    (D) prohibitions on general public access to, and 
                use of, all pipeline access and service roads;
                    (E) stringent reclamation and rehabilitation 
                requirements in accordance with this subtitle for the 
                removal from the Coastal Plain of all oil and gas 
                development and production facilities, structures, and 
                equipment on completion of oil and gas production 
                operations, except in a case in which the Secretary 
                determines that those facilities, structures, or 
                equipment--
                            (i) would assist in the management of the 
                        Arctic National Wildlife Refuge; and
                            (ii) are donated to the United States for 
                        that purpose;
                    (F) appropriate prohibitions or restrictions on--
                            (i) access by all modes of transportation;
                            (ii) sand and gravel extraction; and
                            (iii) use of explosives;
                    (G) reasonable stipulations for protection of 
                cultural and archaeological resources;
                    (H) measures to protect groundwater and surface 
                water, including--
                            (i) avoidance, to the maximum extent 
                        practicable, of springs, streams, and river 
                        systems;
                            (ii) the protection of natural surface 
                        drainage patterns and wetland and riparian 
                        habitats; and
                            (iii) the regulation of methods or 
                        techniques for developing or transporting 
                        adequate supplies of water for exploratory 
                        drilling; and
                    (I) research, monitoring, and reporting 
                requirements;
            (3) that exploration activities (except surface geological 
        studies) be limited to the period between approximately 
        November 1 and May 1 of each year and be supported, if 
        necessary, by ice roads, winter trails with adequate snow 
        cover, ice pads, ice airstrips, and air transport methods 
        (except that those exploration activities may be permitted at 
        other times if the Secretary determines that the exploration 
        will have no significant adverse effect on fish and wildlife, 
        fish and wildlife habitat, and the environment of the Coastal 
        Plain);
            (4) consolidation of facility siting;
            (5) avoidance or reduction of air traffic-related 
        disturbance to fish and wildlife;
            (6) treatment and disposal of hazardous and toxic wastes, 
        solid wastes, reserve pit fluids, drilling muds and cuttings, 
        and domestic wastewater, including, in accordance with 
        applicable Federal and State environmental laws (including 
        regulations)--
                    (A) preparation of an annual waste management 
                report;
                    (B) development and implementation of a hazardous 
                materials tracking system; and
                    (C) prohibition on the use of chlorinated solvents;
            (7) fuel storage and oil spill contingency planning;
            (8) conduct of periodic field crew environmental briefings;
            (9) avoidance of significant adverse effects on subsistence 
        hunting, fishing, and trapping;
            (10) compliance with applicable air and water quality 
        standards;
            (11) appropriate seasonal and safety zone designations 
        around well sites, within which subsistence hunting and 
        trapping shall be limited; and
            (12) development and implementation of such other 
        protective environmental requirements, restrictions, terms, or 
        conditions as the Secretary determines to be necessary.
    (e) Considerations.--In preparing and issuing regulations, lease 
terms, conditions, restrictions, prohibitions, or stipulations under 
this section, the Secretary shall take into consideration--
            (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 through 37.33 of title 50, Code of Federal 
        Regulations (or successor regulations); and
            (3) the land use stipulations for exploratory drilling on 
        the KIC-ASRC private land described in appendix 2 of the 
        agreement between Arctic Slope Regional Corporation and the 
        United States dated August 9, 1983.
    (f) Facility Consolidation Planning.--
            (1) In general.--After providing for public notice and 
        comment, the Secretary shall prepare and periodically update a 
        plan to govern, guide, and direct the siting and construction 
        of facilities for the exploration, development, production, and 
        transportation of oil and gas resources from the Coastal Plain.
            (2) Objectives.--The objectives of the plan shall be--
                    (A) the avoidance of unnecessary duplication of 
                facilities and activities;
                    (B) the encouragement of consolidation of common 
                facilities and activities;
                    (C) the location or confinement of facilities and 
                activities to areas that will minimize impact on fish 
                and wildlife, fish and wildlife habitat, subsistence 
                resources, and the environment;
                    (D) the use of existing facilities, to the maximum 
                extent practicable; and
                    (E) the enhancement of compatibility between 
                wildlife values and development activities.
    (g) Access to Public Land.--The Secretary shall--
            (1) manage public land in the Coastal Plain in accordance 
        with 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 land in the Coastal Plain for traditional 
        uses.

SEC. 3107. EXPEDITED JUDICIAL REVIEW.

    (a) Filing of Complaints.--
            (1) Deadline.--A complaint seeking judicial review of a 
        provision of this subtitle or an action of the Secretary under 
        this subtitle shall be filed--
                    (A) except as provided in subparagraph (B), during 
                the 90-day period beginning on the date on which the 
                action being challenged was carried out; or
                    (B) in the case of a complaint based solely on 
                grounds arising after the 90-day period described in 
                subparagraph (A), by not later than 90 days after the 
                date on which the complainant knew or reasonably should 
                have known about the grounds for the complaint.
            (2) Venue.--A complaint seeking judicial review of a 
        provision of this subtitle or an action of the Secretary under 
        this subtitle shall be filed in the United States Court of 
        Appeals for the District of Columbia Circuit.
            (3) Scope.--
                    (A) In general.--Judicial review of a decision of 
                the Secretary relating to a lease sale under this 
                subtitle (including an environmental analysis of such a 
                lease sale) shall be--
                            (i) limited to a review of whether the 
                        decision is in accordance with this subtitle; 
                        and
                            (ii) based on the administrative record of 
                        the decision.
                    (B) Presumptions.--Any identification by the 
                Secretary of a preferred course of action relating to a 
                lease sale, and any analysis by the Secretary of 
                environmental effects, under this subtitle shall be 
                presumed to be correct unless proven otherwise by clear 
                and convincing evidence.
    (b) Limitation on Other Review.--Any action of the Secretary that 
is subject to judicial review under this section shall not be subject 
to judicial review in any civil or criminal proceeding for enforcement.

SEC. 3108. FEDERAL AND STATE DISTRIBUTION OF REVENUES.

    (a) In General.--Notwithstanding any other provision of law, of the 
amount of adjusted bonus, rental, and royalty revenues from Federal oil 
and gas leasing and operations authorized under this subtitle for each 
fiscal year--
            (1) 50 percent shall be paid to the State of Alaska; and
            (2) the balance shall be used to offset the provisions of 
        this Act.
    (b) Payments to Alaska.--Payments to the State of Alaska under this 
section shall be made semiannually.

SEC. 3109. 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 
        (16 U.S.C. 3161 et seq.); and
            (2) under title XI of the Alaska National Interest Lands 
        Conservation Act (16 U.S.C. 3161 et seq.), for access 
        authorized by sections 1110 and 1111 of that Act (16 U.S.C. 
        3170, 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 3102(f) provisions granting rights-of-way and easements 
described in subsection (a).

SEC. 3110. CONVEYANCE.

    Notwithstanding section 1302(h)(2) of the Alaska National Interest 
Lands Conservation Act (16 U.S.C. 3192(h)(2)), to remove any cloud on 
title to land, and to clarify land ownership patterns in the Coastal 
Plain, the Secretary shall--
            (1) to the extent necessary to fulfill the entitlement of 
        the Kaktovik Inupiat Corporation under sections 12 and 14 of 
        the Alaska Native Claims Settlement Act (43 U.S.C. 1611, 1613), 
        as determined by the Secretary, convey to that Corporation the 
        surface estate of the land described in paragraph (1) of Public 
        Land Order 6959, in accordance with the terms and conditions of 
        the agreement between the Secretary, the United States Fish and 
        Wildlife Service, the Bureau of Land Management, and the 
        Kaktovik Inupiat Corporation, dated January 22, 1993; and
            (2) convey to the Arctic Slope Regional Corporation the 
        remaining subsurface estate to which that Corporation is 
        entitled under the agreement between that corporation and the 
        United States, dated August 9, 1983.

                   Subtitle C--Nuclear Energy Reforms

SEC. 3201. AMENDMENTS TO TITLE XVII OF THE ENERGY POLICY ACT 2005.

    (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;
                    ``(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.''.

SEC. 3202. AMENDMENTS TO SECTION 638 OF THE ENERGY POLICY ACT OF 2005.

    (a) Definitions.--Section 638(a) of the Energy Policy Act of 2005 
(42 U.S.C. 16014(a)) is amended--
            (1) by inserting after paragraph (3) 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 demobilization, 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.''; and
            (2) by redesignating paragraph (4) as paragraph (7).
    (b) Contract Authority.--Section 638(b) of the Energy Policy Act of 
2005 (42 U.S.C. 16014(b)) is amended by striking paragraph (1) and 
inserting the following:
            ``(1) In general.--The Secretary may enter into contracts 
        under this section with sponsors of an advanced nuclear 
        facility that cover at any one time outstanding a total of not 
        more than 6 reactors, with the 6 reactors consisting of not 
        more than 3 different reactor designs, in accordance with 
        paragraph (2). In the event that any contract entered into 
        under this section terminates or expires without a claim being 
        paid by the Secretary thereunder, then the Secretary may enter 
        into a new contract under this section in replacement or 
        substitution for such contract.''.
    (c) Covered Costs.--Section 638(d) of the Energy Policy Act of 2005 
(42 U.S.C. 16014(d)) is amended by striking paragraphs (2) and (3) and 
inserting the following:
            ``(2) Coverage.--In the case of reactors that receive 
        combined licenses and on which construction is commenced, the 
        Secretary shall pay--
                    ``(A) 100 percent of the covered costs of delay 
                that occur after the initial 30-day period of covered 
                delay; but
                    ``(B) not more than $500,000,000 per contract.
            ``(3) Covered debt obligations.--Debt obligations covered 
        under subparagraph (A) of paragraph (5) shall include but not 
        be limited to debt obligations incurred to pay increased 
        project costs.''.
    (d) Dispute Resolution.--Section 638 of the Energy Policy Act of 
2005 (42 U.S.C. 16014) is amended--
            (1) by inserting after subsection (e) 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. 3203. AMENDMENTS TO SECTION 952(C) OF THE ENERGY POLICY ACT 2005.

    Section 952(c) of the Energy Policy Act of 2005 (42 U.S.C. 16014) 
is amended by striking paragraphs (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 2009;
                    ``(B) $159,600,000 for fiscal year 2010;
                    ``(C) $135,600,000 for fiscal year 2011;
                    ``(D) $46,900,000 for fiscal year 2012; and
                    ``(E) $2,200,000 for fiscal year 2013.''.

SEC. 3204. DOMESTIC MANUFACTURING BASE FOR NUCLEAR COMPONENTS AND 
              EQUIPMENT.

    (a) Establishment of Interagency Working Group.--
            (1) Purposes.--The purposes of this section are--
                    (A) to increase the competitiveness of the United 
                States nuclear energy products and services industries;
                    (B) to identify the stimulus or incentives 
                necessary to cause United States manufacturers of 
                nuclear energy products to expand manufacturing 
                capacity;
                    (C) to facilitate the export of United States 
                nuclear energy products and services;
                    (D) to reduce the trade deficit of the United 
                States through the export of United States nuclear 
                energy products and services;
                    (E) to retain and create nuclear energy 
                manufacturing and related service jobs in the United 
                States;
                    (F) to integrate the objectives in 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 
                as follows:
                            (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 paragraph (2) 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 subparagraphs (A) and (B), including 
                recommendations for new legislative authority where 
                necessary.
            (4) Trade assistance.--The interagency working group shall 
        encourage the member agencies of the interagency working group 
        to--
                    (A) provide technical training and education for 
                international development personnel and local users in 
                their own country;
                    (B) provide financial and technical assistance to 
                nonprofit institutions that support the marketing and 
                export efforts of domestic companies that provide 
                nuclear energy products and services;
                    (C) develop nuclear energy projects in foreign 
                countries;
                    (D) provide technical assistance and training 
                materials to loan officers of the World Bank, 
                international lending institutions, commercial and 
                energy attaches at embassies of the United States and 
                other appropriate personnel in order to provide 
                information about nuclear energy products and services 
                to foreign governments or other potential project 
                sponsors;
                    (E) support, through financial incentives, private 
                sector efforts to commercialize and export nuclear 
                energy products and services in accordance with the 
                subsidy codes of the World Trade Organization; and
                    (F) augment budgets for trade and development 
                programs in order to support pre-feasibility or 
                feasibility studies for projects that utilize nuclear 
                energy products and services.
            (5) Authorization of appropriations.--There are authorized 
        to be appropriated to the Secretary for purposes of carrying 
        out this section $20,000,000 for fiscal years 2009 and 2010.
    (b) Credit for Qualifying Nuclear Power Manufacturing.--Subpart E 
of part IV of subchapter A of chapter 1 of the Internal Revenue Code is 
amended by inserting after section 48B the following new section:

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

    ``(a) In General.--For purposes of section 46, the qualifying 
nuclear power manufacturing credit for any taxable year is an amount 
equal to 20 percent of the qualified investment for such taxable year.
    ``(b) Qualified Investment.--
            ``(1) In general.--For purposes of subsection (a), the 
        qualified investment for any taxable year is the basis of 
        eligible property placed in service by the taxpayer during such 
        taxable year--
                    ``(A) which is either part of a qualifying nuclear 
                power manufacturing project or is qualifying nuclear 
                power manufacturing equipment,
                    ``(B)(i) the construction, reconstruction, or 
                erection of which is completed by the taxpayer, or
                    ``(ii) which is acquired by the taxpayer if the 
                original use of such property commences with the 
                taxpayer,
                    ``(C) with respect to which depreciation (or 
                amortization in lieu of depreciation) is allowable, and
                    ``(D) which is placed in service on or before 
                December 31, 2015.
            ``(2) Special rule for certain subsidized property.--Rules 
        similar to section 48(a)(4) shall apply for purposes of this 
        section.
            ``(3) Certain qualified progress expenditures rules made 
        applicable.--Rules similar to the rules of subsections (c)(4) 
        and (d) of section 46 (as in effect on the day before the 
        enactment of the Revenue Reconciliation Act of 1990) shall 
        apply for purposes of this section.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualifying nuclear power manufacturing project.--The 
        term `qualifying nuclear power manufacturing project' means any 
        project which is designed primarily to enable the taxpayer to 
        produce or test equipment necessary for the construction or 
        operation of a nuclear power plant.
            ``(2) Qualifying nuclear power manufacturing equipment.--
        The term `qualifying nuclear power manufacturing equipment' 
        means machine tools and other similar equipment, including 
        computers and other peripheral equipment, acquired or 
        constructed primarily to enable the taxpayer to produce or test 
        equipment necessary for the construction or operation of a 
        nuclear power plant.
            ``(3) Project.--The term `project' includes any building 
        constructed to house qualifying nuclear power manufacturing 
        equipment.''.
    (c) Conforming Amendments.--
            (1) Additional investment credit.--Section 46 of such Code 
        is amended 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) of such Code 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. 3205. USE OF FUNDS FOR RECYCLING.

    Section 302 of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 
10222) is amended--
            (1) in subsection (d), by striking ``The Secretary may'' 
        and inserting ``Except as provided in subsection (f), the 
        Secretary may''; and
            (2) by adding at the end the following new subsection:
    ``(f) Recycling.--
            ``(1) In general.--Amounts in the Waste Fund may be used by 
        the Secretary of Energy to make grants to or enter into long-
        term contracts with private sector entities for the recycling 
        of spent nuclear fuel.
            ``(2) Competitive selection.--Grants and contracts 
        authorized under paragraph (1) shall be awarded on the basis of 
        a competitive bidding process that--
                    ``(A) maximizes the competitive efficiency of the 
                projects funded;
                    ``(B) best serves the goal of reducing the amount 
                of waste requiring disposal under this Act; and
                    ``(C) ensures adequate protection against the 
                proliferation of nuclear materials that could be used 
                in the manufacture of nuclear weapons.''.

SEC. 3206. LICENSING OF NEW NUCLEAR POWER PLANTS.

    (a) Sections 189A(1)(A) of the Atomic Energy Act of 1954 is 
modified thus:
                    ``(A) 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.''.
    (b) Section 185b of the Atomic Energy Act of 1954 is modified thus:
    ``b. 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. 3207. INVESTMENT TAX CREDIT FOR INVESTMENTS IN NUCLEAR POWER 
              FACILTIES.

    (a) New Credit for Nuclear Power Facilities.--Section 46 of the 
Internal Revenue Code of 1986 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 of such Code 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 taxpayer.
                    ``(B) A component of a facility shall be treated as 
                not self-constructed if the cost of the component is at 
                least 5 percent of the expected cost of the facility 
                and the component is acquired by the taxpayer.
            ``(4) Election.--An election shall be made under this 
        section for a qualified nuclear power facility by claiming the 
        nuclear power facility construction credit for expenditures 
        described in paragraph (1) on a tax return filed by the due 
        date for such return (taking into account extensions). Such an 
        election shall apply to the taxable year for which made and all 
        subsequent taxable years. Such an election, once made, may be 
        revoked only with the consent of the Secretary.
    ``(d) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Qualified nuclear power facility.--The term 
        `qualified nuclear power facility' means an advanced nuclear 
        power facility, as defined in section 45J, the construction of 
        which was approved by the Nuclear Regulatory Commission on or 
        before December 31, 2013.
            ``(2) Qualified nuclear power facility expenditures.--
                    ``(A) In general.--The term `qualified nuclear 
                power facility expenditures' means any amount properly 
                chargeable to capital account--
                            ``(i) with respect to a qualified nuclear 
                        power facility,
                            ``(ii) for which depreciation is allowable 
                        under section 168, and
                            ``(iii) which are incurred before the 
                        qualified nuclear power facility is placed in 
                        service or in connection with the placement of 
                        such facility in service.
                    ``(B) Pre-effective date expenditures.--Qualified 
                nuclear power facility expenditures do not include any 
                expenditures incurred by the taxpayer before 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) of such Code is amended to read as follows:
                    ``(A) In general.--If during any taxable year any 
                building to which section 47(d) applied or any facility 
                to which section 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) of such Code 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) of such Code 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) of such Code is amended by inserting ``or 
                section 48C(c)'' after ``section 47(d)''.
    (d) No Basis Adjustment.--Section 50(c) of such Code is amended by 
inserting at the end thereof the following new paragraph:
            ``(6) Nuclear power facility construction credit.--
        Paragraphs (1) and (2) shall not apply to the nuclear power 
        facility construction credit.''.
    (e) Technical Amendments.--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 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. 3208. 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. 3209. 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 intended 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. 3210. 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 paragraph (3) apply to implementing bills submitted with 
respect to temporary spent nuclear fuel storage agreements entered into 
and submitted pursuant to paragraph (2).

SEC. 3211. 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 described 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 3210;
            (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); and
            (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. 3212. 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 CFR 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;
                    ``(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; and
                    ``(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).'';
            (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 of the amount 
to be determined by the Secretary of Energy 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. 3213. CONFIDENCE IN AVAILABILITY OF WASTE DISPOSAL.

    (a) Congressional Determination.--The Congress finds that--
            (1) there is reasonable assurance that high-level 
        radioactive waste and spent nuclear fuel generated in reactors 
        licensed by the Nuclear Regulatory Commission in the past, 
        currently, or in the future will be managed in a safe manner 
        without significant environmental impact until capacity for 
        ultimate disposal is available; and
            (2) the Federal Government is responsible and has an 
        established a policy for the ultimate safe and environmentally 
        sound disposal of such high-level radioactive waste and spent 
        nuclear fuel.
    (b) Regulatory Consideration.--Notwithstanding any other provision 
of law, for the period following the licensed operation of a civilian 
nuclear power reactor or any facility for the treatment or storage of 
spent nuclear fuel or high-level radioactive waste, no consideration of 
the public health and safety, common defense and security, or 
environmental impacts of the storage of high-level radioactive waste 
and spent nuclear fuel generated in reactors licensed by the Nuclear 
Regulatory Commission in the past, currently, or in the future, is 
required by the Department of Energy or the Nuclear Regulatory 
Commission in connection with the development, construction, and 
operation of, or any permit, license, license amendment, or siting 
approval for, a civilian nuclear power reactor or any facility for the 
treatment or storage of spent nuclear fuel or high-level radioactive 
waste. Nothing in this section shall affect the Department of Energy's 
and Nuclear Regulatory Commission's obligation to consider the public 
health and safety, common defense and security, and environmental 
impacts of storage during the period of licensed operation of a 
civilian nuclear power reactor or facility for the treatment or storage 
of spent nuclear fuel or high-level radioactive waste.

SEC. 3214. LIMITATION ON USE OF FUNDS.

    None of the funds authorized by this Act may be used to improve or 
build any temporary storage or spent nuclear fuel and high-level 
radioactive waste disposal facility in a State previously recommended 
for repository development under Public Law 97-425.

 Subtitle D--Expedited Oil, Gas, and Oil Shale Leasing of Federal Lands

SEC. 3301. EXPEDITED PERMITTING OF COVERED ENERGY PROJECTS.

    (a) Permit Applications Deemed Approved.--
            (1) In general.--Any application for a permit under Federal 
        law for a covered energy project is deemed approved upon the 
        expiration of the 6-month period beginning on the date of the 
        submittal of a completed application for such permit, unless 
        before the end of such period the Federal official authorized 
        by law to issue such permit affirmatively disapproves the 
        application and certifies to Congress the reasons for such 
        disapproval.
            (2) Extension of period.--
                    (A) In general.--The President may extend the 
                period under subsection (a) for a permit application by 
                an additional 6 months by submitting to Congress a 
                certification of the reasons why such extension is 
                necessary.
                    (B) Limitation.--The President may not extend such 
                period more than one time with respect to any 
                particular permit application.
    (b) Appeal of Disapproval of Permit Application.--
            (1) In general.--Any person who submits an application for 
        a permit under Federal law for a covered energy project that is 
        disapproved may file an action seeking judicial review (subject 
        to subtitle B) of such disapproval within the 2-month period 
        beginning on the date of the disapproval.
            (2) Deadline for decision.--If a person files such an 
        action--
                    (A) a final decision shall be issued before the end 
                of the 2-month period beginning on the date the appeal 
                is filed; and
                    (B) if a decision is not issued before the end of 
                such period the permit application is deemed approved 
                and the permit issued upon the expiration of such 
                period.

SEC. 3302. WAIVER OF LAWS APPLICABLE TO COVERED ENERGY PROJECTS.

    (a) In General.--Notwithstanding any other provision of law, the 
President or a designee of the President may waive any legal 
requirement under any provision of Federal law otherwise applicable to 
a covered energy project, including any provision of law relating to 
any administrative protest of any agency action taken with respect to 
such a project, as the President or such designee, in his or her sole 
discretion, determines necessary to ensure expeditious conduct of such 
project. Any such determination shall be effective upon being published 
in the Federal Register.
    (b) Federal Court Review.--
            (1) In general.--The district courts of the United States 
        shall have exclusive jurisdiction to hear all causes or claims 
        arising from any action undertaken, or any decision made, by 
        the President or such designee pursuant to subsection (a). Such 
        a cause of action or claim may only be brought alleging a 
        violation of the Constitution of the United States. The court 
        shall not have jurisdiction to hear any claim not specified in 
        this paragraph.
            (2) Time for filing of complaint.--Any cause or claim 
        brought pursuant to paragraph (1) shall be filed not later than 
        the end of the 60-day period beginning upon the expiration of 
        the date of the action or decision made by the President or 
        such designee. A claim shall be barred unless it is filed 
        within that period.
            (3) Ability to seek appellate review.--An interlocutory or 
        final judgment, decree, or order of the district court may be 
        reviewed only upon petition for a writ of certiorari to the 
        Supreme Court of the United States.

SEC. 3303. PERMITTING FOR YEAR-ROUND CONDUCT OF COVERED ENERGY 
              PROJECTS.

    Notwithstanding any other provision of law--
            (1) nothing in Federal law shall be construed as 
        prohibiting the issuance of a permit authorizing conduct of a 
        covered energy project throughout the year; and
            (2) any Federal official who is otherwise authorized to 
        issue a permit authorizing a covered energy project is 
        encouraged to issue such a permit authorizing conduct of a 
        covered energy project throughout the year.

              Subtitle E--Refining Capacity and Efficiency

SEC. 3401. REFINERY REVITALIZATION REPEAL.

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

SEC. 3402. REDUCTION IN NUMBER OF BOUTIQUE FUELS.

    Section 211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)) 
is amended as follows:
            (1) By redesignating the clause (v) added by section 
        1541(b) of the Energy Policy Act of 2005 (Public Law 109-58; 
        119 Stat. 1106) as clause (vi).
            (2) In clause (vi) (as so redesignated)--
                    (A) in subclause (I) by striking ``approved under 
                this paragraph as of September 1, 2004, in all State 
                implementation plans'' and by inserting in lieu there 
                of ``set forth on the list published under subclause 
                (II) (or on the revised list referred to in subclause 
                (III) if the list has been revised)'';
                    (B) by amending subclause (III) to read as follows:
                    ``(III) The Administrator shall, after notice and 
                opportunity for comment, remove a fuel from the list 
                published under subclause (II) if the Administrator 
                determines that such fuel has ceased to be included in 
                any State implementation plan or is identical to a 
                Federal fuel control or prohibition promulgated and 
                implemented by the Administrator. The Administrator 
                shall publish a revised list reflecting the reduction 
                in the number of fuels.'';
                    (C) in subclause (IV) by striking ``Subclause (I)'' 
                and inserting ``Neither subclause (I) nor subclause 
                (V)'' and by striking ``not'' and by striking ``if such 
                new fuel''; and
                    (D) by amending subclause (IV) to read as follows:
                                            ``(IV) Subclause (I) shall 
                                        not limit the Administrator's 
                                        authority to approve a control 
                                        or prohibition respecting any 
                                        new fuel under this paragraph 
                                        in a State implementation plan 
                                        or revision to a State 
                                        implementation plan if such new 
                                        fuel completely replaces a fuel 
                                        on the list published under 
                                        subclause (II) (or the revised 
                                        list referred to in subclause 
                                        (III) if the list has been 
                                        revised) and if the 
                                        Administrator, after 
                                        consultation with the Secretary 
                                        of Energy, publishes in the 
                                        Federal Register after notice 
                                        and comment a finding that, in 
                                        the Administrator's judgment, 
                                        such control or prohibition 
                                        respecting such new fuel will 
                                        not cause fuel supply or 
                                        distribution interruptions or 
                                        have a significant adverse 
                                        impact on fuel producibility in 
                                        the affected area or contiguous 
                                        areas.''.

SEC. 3403. REFINERY PERMITTING PROCESS.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            (3) Permit.--The term ``permit'' means any permit, license, 
        approval, variance, or other form of authorization that a 
        refiner is required to obtain--
                    (A) under any Federal law; or
                    (B) from a State or Indian tribal government agency 
                delegated authority by the Federal Government, or 
                authorized under Federal law, to issue permits.
            (4) Refiner.--The term ``refiner'' means a person that--
                    (A) owns or operates a refinery; or
                    (B) seeks to become an owner or operator of a 
                refinery.
            (5) Refinery.--
                    (A) In general.--The term ``refinery'' means--
                            (i) a facility at which crude oil is 
                        refined into transportation fuel or other 
                        petroleum products; and
                            (ii) a coal liquification or coal-to-liquid 
                        facility at which coal is processed into 
                        synthetic crude oil or any other fuel.
                    (B) Inclusions.--The term ``refinery'' includes an 
                expansion of a refinery.
            (6) Refinery expansion.--The term ``refinery expansion'' 
        means a physical change in a refinery that results in an 
        increase in the capacity of the refinery.
            (7) Refinery permitting agreement.--The term ``refinery 
        permitting agreement'' means an agreement entered into between 
        the Administrator and a State or Indian tribe under subsection 
        (b).
            (8) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.
            (9) State.--The term ``State'' means--
                    (A) a State;
                    (B) the District of Columbia;
                    (C) the Commonwealth of Puerto Rico; and
                    (D) any other territory or possession of the United 
                States.
    (b) Streamlining of Refinery Permitting Process.--
            (1) In general.--At the request of the Governor of a State 
        or the governing body of an Indian tribe, the Administrator 
        shall enter into a refinery permitting agreement with the State 
        or Indian tribe under which the process for obtaining all 
        permits necessary for the construction and operation of a 
        refinery shall be streamlined using a systematic 
        interdisciplinary multimedia approach as provided in this 
        section.
            (2) Authority of administrator.--Under a refinery 
        permitting agreement--
                    (A) the Administrator shall have authority, as 
                applicable and necessary, to--
                            (i) accept from a refiner a consolidated 
                        application for all permits that the refiner is 
                        required to obtain to construct and operate a 
                        refinery;
                            (ii) in consultation and cooperation with 
                        each Federal, State, or Indian tribal 
                        government agency that is required to make any 
                        determination to authorize the issuance of a 
                        permit, establish a schedule under which each 
                        agency shall--
                                    (I) concurrently consider, to the 
                                maximum extent practicable, each 
                                determination to be made; and
                                    (II) complete each step in the 
                                permitting process; and
                            (iii) issue a consolidated permit that 
                        combines all permits issued under the schedule 
                        established under clause (ii); and
                    (B) the Administrator shall provide to State and 
                Indian tribal government agencies--
                            (i) financial assistance in such amounts as 
                        the agencies reasonably require to hire such 
                        additional personnel as are necessary to enable 
                        the Government agencies to comply with the 
                        applicable schedule established under 
                        subparagraph (A)(ii); and
                            (ii) technical, legal, and other assistance 
                        in complying with the refinery permitting 
                        agreement.
            (3) Agreement by the state.--Under a refinery permitting 
        agreement, a State or governing body of an Indian tribe shall 
        agree that--
                    (A) the Administrator shall have each of the 
                authorities described in paragraph (2); and
                    (B) each State or Indian tribal government agency 
                shall--
                            (i) in accordance with State law, make such 
                        structural and operational changes in the 
                        agencies as are necessary to enable the 
                        agencies to carry out consolidated project-wide 
                        permit reviews concurrently and in coordination 
                        with the Environmental Protection Agency and 
                        other Federal agencies; and
                            (ii) comply, to the maximum extent 
                        practicable, with the applicable schedule 
                        established under paragraph (2)(A)(ii).
            (4) Deadlines.--
                    (A) New refineries.--In the case of a consolidated 
                permit for the construction of a new refinery, the 
                Administrator and the State or governing body of an 
                Indian tribe shall approve or disapprove the 
                consolidated permit not later than--
                            (i) 360 days after the date of the receipt 
                        of the administratively complete application 
                        for the consolidated permit; or
                            (ii) on agreement of the applicant, the 
                        Administrator, and the State or governing body 
                        of the Indian tribe, 90 days after the 
                        expiration of the deadline established under 
                        clause (i).
                    (B) Expansion of existing refineries.--In the case 
                of a consolidated permit for the expansion of an 
                existing refinery, the Administrator and the State or 
                governing body of an Indian tribe shall approve or 
                disapprove the consolidated permit not later than--
                            (i) 120 days after the date of the receipt 
                        of the administratively complete application 
                        for the consolidated permit; or
                            (ii) on agreement of the applicant, the 
                        Administrator, and the State or governing body 
                        of the Indian tribe, 30 days after the 
                        expiration of the deadline established under 
                        clause (i).
            (5) Federal agencies.--Each Federal agency that is required 
        to make any determination to authorize the issuance of a permit 
        shall comply with the applicable schedule established under 
        paragraph (2)(A)(ii).
            (6) Judicial review.--Any civil action for review of any 
        permit determination under a refinery permitting agreement 
        shall be brought exclusively in the United States district 
        court for the district in which the refinery is located or 
        proposed to be located.
            (7) Efficient permit review.--In order to reduce the 
        duplication of procedures, the Administrator shall use State 
        permitting and monitoring procedures to satisfy substantially 
        equivalent Federal requirements under this title.
            (8) Severability.--If 1 or more permits that are required 
        for the construction or operation of a refinery are not 
        approved on or before any deadline established under paragraph 
        (4), the Administrator may issue a consolidated permit that 
        combines all other permits that the refiner is required to 
        obtain other than any permits that are not approved.
            (9) Savings.--Nothing in this subsection affects the 
        operation or implementation of otherwise applicable law 
        regarding permits necessary for the construction and operation 
        of a refinery.
            (10) Consultation with local governments.--Congress 
        encourages the Administrator, States, and tribal governments to 
        consult, to the maximum extent practicable, with local 
        governments in carrying out this subsection.
            (11) Authorization of appropriations.--There are authorized 
        to be appropriated such sums as are necessary to carry out this 
        subsection.
            (12) Effect on local authority.--Nothing in this subsection 
        affects--
                    (A) the authority of a local government with 
                respect to the issuance of permits; or
                    (B) any requirement or ordinance of a local 
                government (such as a zoning regulation).
    (c) Fischer-Tropsch Fuels.--
            (1) In general.--In cooperation with the Secretary of 
        Energy, the Secretary of Defense, the Administrator of the 
        Federal Aviation Administration, Secretary of Health and Human 
        Services, and Fischer-Tropsch industry representatives, the 
        Administrator shall--
                    (A) conduct a research and demonstration program to 
                evaluate the air quality benefits of ultra-clean 
                Fischer-Tropsch transportation fuel, including diesel 
                and jet fuel;
                    (B) evaluate the use of ultra-clean Fischer-Tropsch 
                transportation fuel as a mechanism for reducing engine 
                exhaust emissions; and
                    (C) submit recommendations to Congress on the most 
                effective use and associated benefits of these ultra-
                clean fuel for reducing public exposure to exhaust 
                emissions.
            (2) Guidance and technical support.--The Administrator 
        shall, to the extent necessary, issue any guidance or technical 
        support documents that would facilitate the effective use and 
        associated benefit of Fischer-Tropsch fuel and blends.
            (3) Requirements.--The program described in paragraph (1) 
        shall consider--
                    (A) the use of neat (100 percent) Fischer-Tropsch 
                fuel and blends with conventional crude oil-derived 
                fuel for heavy-duty and light-duty diesel engines and 
                the aviation sector; and
                    (B) the production costs associated with domestic 
                production of those ultra clean fuel and prices for 
                consumers.
            (4) Reports.--The Administrator shall submit to the 
        Committee on Environment and Public Works and the Committee on 
        Energy and Natural Resources of the Senate and the Committee on 
        Energy and Commerce of the House of Representatives--
                    (A) not later than 1 year, an interim report on 
                actions taken to carry out this subsection; and
                    (B) not later than 2 years, a final report on 
                actions taken to carry out this subsection.

SEC. 3404. EXISTING REFINERY PERMIT APPLICATION DEADLINE.

    Notwithstanding any other provision of law, applications for a 
permit for existing refinery applications shall not be considered to be 
timely if submitted after 120 days after the date of the enactment of 
this Act.

SEC. 3405. REMOVAL OF ADDITIONAL FEE FOR NEW APPLICATIONS FOR PERMITS 
              TO DRILL.

    The second undesignated paragraph of the matter under the heading 
``MANAGEMENT OF LANDS AND RESOURCES'' under the heading ``Bureau of 
Land Management'' of title I of the Department of the Interior, 
Environment, and Related Agencies Appropriations Act, 2008 (Public Law 
110-161; 121 Stat. 2098) is amended by striking ``to be be reduced'' 
and all that follows through ``each new application''.

                Subtitle F--Alternative Sources of Fuel

SEC. 3501. YEAR EXTENSION OF ELECTION TO EXPENSE CERTAIN REFINERIES.

    (a) In General.--Paragraph (1) of section 179C(c) of the Internal 
Revenue Code of 1986 (defining qualified refinery property) is 
amended--
            (1) by striking ``January 1, 2014'' in subparagraph (B) and 
        inserting ``January 1, 2017'', and
            (2) by striking ``January 1, 2010'' each place it appears 
        in subparagraph (F) and inserting ``January 1, 2013''.
    (b) Implementation Through Secretarial Guidance.--
            (1) Guidance.--Paragraph (1) of section 179C(b) of such 
        Code (relating to general rule for election) is amended by 
        inserting ``or other guidance'' after ``regulations''.
            (2) Reporting.--Subsection (h) of section 179C of such Code 
        (relating to reporting) is amended by striking ``shall 
        require'' and inserting ``may, through guidance, require''.
    (c) Effective Date.--The amendments made by this Act shall apply to 
property placed in service after December 31, 2008.
    (d) Requirement for Issuance of Guidance.--Not later than 90 days 
after the date of the enactment of this Act, the Secretary of the 
Treasury shall issue regulations or other guidance to carry out section 
179C of the Internal Revenue Code of 1986 (as amended by this section).

SEC. 3502. OPENING OF LANDS TO OIL SHALE LEASING.

    (a) Repeal of Limitation on Use of Funds.--Section 433 of division 
F of the Consolidated Appropriations Act, 2008 (Public Law 110-161; 121 
Stat. 2152) is repealed.
    (b) Issuance of Regulations.--The Secretary of the Interior shall 
issue all regulations necessary to implement section 369 of the Energy 
Policy Act of 2005 (Public Law 109-58; 42 U.S.C. 15927) with respect to 
oil shale by not later than 60 days after the date of the enactment of 
this Act. Such regulations shall include such safeguards and assurances 
as the Secretary considers necessary to allow States to exercise their 
regulatory and statutory authorities under State law, consistent with 
otherwise applicable Federal law.
    (c) Leasing of Oil Shale Resource.--Immediately after issuing 
regulations under subsection (b), the Secretary of the Interior shall--
            (1) offer for leasing for research and development of oil 
        shale resources under subsection (c) of section 369 of the 
        Energy Policy Act of 2005 (Public Law 109-58; 42 U.S.C. 15927), 
        additional 160-acre tracts of lands the Secretary considers 
        necessary to fulfill the research and development objectives of 
        such Act; and
            (2) offer for leasing for commercial exploration, 
        development, and production of oil shale resources under 
        subsection (e) of such section, public lands in States for 
        which the Secretary finds sufficient support and interest as 
        required by that subsection.

SEC. 3503. OIL SHALE AND TAR SANDS AMENDMENTS.

    (a) Repeal of Requirement To Establish Payments.--Section 369(o) of 
the Energy Policy Act of 2005 (Public Law 109-58; 119 Stat. 728; 42 
U.S.C. 15927) is repealed.
    (b) Treatment of Revenues.--Section 21 of the Mineral Leasing Act 
(30 U.S.C. 241) is amended by adding at the end the following:
    ``(e) Revenues.--
            ``(1) In general.--Notwithstanding the provisions of 
        section 35, all revenues received from and under an oil shale 
        or tar sands lease shall be disposed of as provided in this 
        subsection.
            ``(2) Royalty rates for commercial leases.--
                    ``(A) Royalty rates.--The Secretary shall model the 
                royalty schedule for oil shale and tar sands leases 
                based on the royalty program currently in effect for 
                the production of synthetic crude oil from oil sands in 
                the Province of Alberta, Canada.
                    ``(B) Reduction.--The Secretary shall reduce any 
                royalty otherwise required to be paid under 
                subparagraph (A) under any oil shale or tar sands lease 
                on a sliding scale based upon market price, with a 10 
                percent reduction if the average futures price of NYMEX 
                Light Sweet Crude, or a similar index, drops, for the 
                previous quarter year, below $50 (in January 1, 2008, 
                dollars), and an 80 percent reduction if the average 
                price drops below $30 (in January 1, 2008, dollars) for 
                the quarter previous to the one in which the production 
                is sold.
            ``(3) Disposition of revenues.--
                    ``(A) Deposit.--The Secretary shall deposit into a 
                separate account in the Treasury all revenues derived 
                from any oil shale or tar sands lease.
                    ``(B) Allocations to states and local political 
                subdivisions.--The Secretary shall allocate 50 percent 
                of the revenues deposited into the account established 
                under subparagraph (A) to the State within the 
                boundaries of which the leased lands are located, with 
                a portion of that to be paid directly by the Secretary 
                to the State's local political subdivisions as provided 
                in this paragraph.
                    ``(C) Transmission of allocations.--
                            ``(i) In general.--Not later than the last 
                        business day of the month after the month in 
                        which the revenues were received, the Secretary 
                        shall transmit--
                                    ``(I) to each State two-thirds of 
                                such State's allocations under 
                                subparagraph (B), and in accordance 
                                with clauses (ii) and (iii) to certain 
                                county-equivalent and municipal 
                                political subdivisions of such State a 
                                total of one-third of such States 
                                allocations under subparagraph (B), 
                                together with all accrued interest 
                                thereon; and
                                    ``(II) the remaining balance of 
                                such revenues shall be deposited into 
                                the Deficit Reduction Trust Fund 
                                created by this Act.
                            ``(ii) Allocations to certain county-
                        equivalent political subdivisions.--The 
                        Secretary shall under clause (i)(I) make 
                        equitable allocations of the revenues to 
                        county-equivalent political subdivisions that 
                        the Secretary determines are closely associated 
                        with the leasing and production of oil shale 
                        and tar sands, under a formula that the 
                        Secretary shall determine by regulation.
                            ``(iii) Allocations to municipal political 
                        subdivisions.--The initial allocation to each 
                        county-equivalent political subdivision under 
                        clause (ii) shall be further allocated to the 
                        county-equivalent political subdivision and any 
                        municipal political subdivisions located 
                        partially or wholly within the boundaries of 
                        the county-equivalent political subdivision on 
                        an equitable basis under a formula that the 
                        Secretary shall determine by regulation.
                    ``(D) Investment of deposits.--The deposits in the 
                Treasury account established under this section shall 
                be invested by the Secretary of the Treasury in 
                securities backed by the full faith and credit of the 
                United States having maturities suitable to the needs 
                of the account and yielding the highest reasonably 
                available interest rates as determined by the Secretary 
                of the Treasury.
                    ``(E) Use of funds.--A recipient of funds under 
                this subsection may use the funds for any lawful 
                purpose as determined by State law. Funds allocated 
                under this subsection to States and local political 
                subdivisions may be used as matching funds for other 
                Federal programs without limitation. Funds allocated to 
                local political subdivisions under this subsection may 
                not be used in calculation of payments to such local 
                political subdivisions under programs for payments in 
                lieu of taxes or other similar programs.
                    ``(F) No accounting required.--No recipient of 
                funds under this subsection shall be required to 
                account to the Federal Government for the expenditure 
                of such funds, except as otherwise may be required by 
                law.
            ``(4) Definitions.--In this subsection:
                    ``(A) County-equivalent political subdivision.--The 
                term `county-equivalent political subdivision' means a 
                political jurisdiction immediately below the level of 
                State government, including a county, parish, borough 
                in Alaska, independent municipality not part of a 
                county, parish, or borough in Alaska, or other 
                equivalent subdivision of a State.
                    ``(B) Municipal political subdivision.--The term 
                `municipal political subdivision' means a municipality 
                located within and part of a county, parish, borough in 
                Alaska, or other equivalent subdivision of a State.''.

SEC. 3504. TAX CREDIT FOR CARBON DIOXIDE CAPTURED FROM INDUSTRIAL 
              SOURCES AND USED IN ENHANCED OIL AND NATURAL GAS 
              RECOVERY.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business credits) is 
amended by adding at the end the following new section:

``SEC. 45R. CREDIT FOR CARBON DIOXIDE CAPTURED FROM INDUSTRIAL SOURCES 
              AND USED AS A TERTIARY INJECTANT IN ENHANCED OIL AND 
              NATURAL GAS RECOVERY.

    ``(a) General Rule.--For purposes of section 38, the captured 
carbon dioxide tertiary injectant credit for any taxable year is an 
amount equal to the product of--
            ``(1) the credit amount, and
            ``(2) the qualified carbon dioxide captured from industrial 
        sources and used as a tertiary injectant in qualified enhanced 
        oil and natural gas recovery which is attributable to the 
        taxpayer.
    ``(b) Credit Amount.--For purposes of this section--
            ``(1) In general.--The credit amount is $0.75 per 1,000 
        standard cubic feet.
            ``(2) Inflation adjustment.--In the case of any taxable 
        year beginning in a calendar year after 2009, there shall be 
        substituted for the $0.75 amount under paragraph (1) an amount 
        equal to the product of--
                    ``(A) $0.75, multiplied by
                    ``(B) the inflation adjustment factor for such 
                calendar year determined under section 43(b)(3)(B) for 
                such calendar year, determined by substituting `2008' 
                for `1990'.
    ``(c) Qualified Carbon Dioxide.--For purposes of this section--
            ``(1) In general.--The term `qualified carbon dioxide' 
        means carbon dioxide captured from an anthropogenic source 
        that--
                    ``(A) would otherwise be released into the 
                atmosphere as industrial emission of greenhouse gas,
                    ``(B) is measurable at the source of capture,
                    ``(C) is compressed, treated, and transported via 
                pipeline,
                    ``(D) is sold as a tertiary injectant in qualified 
                enhanced oil and natural gas recovery, and
                    ``(E) is permanently sequestered in geological 
                formations as a result of the enhanced oil and natural 
                gas recovery process.
            ``(2) Anthropogenic source.--An anthropogenic source of 
        carbon dioxide is an industrial source, including any of the 
        following types of plants, and facilities related to such 
        plant--
                    ``(A) a coal and natural gas fired electrical 
                generating power station,
                    ``(B) a natural gas processing and treating plant,
                    ``(C) an ethanol plant,
                    ``(D) a fertilizer plant, and
                    ``(E) a chemical plant.
            ``(3) Definitions.--
                    ``(A) Qualified enhanced oil and natural gas 
                recovery.--The term `qualified enhanced oil and natural 
                gas recovery' has the meaning given such term by 
                section 43(c)(2).
                    ``(B) Tertiary injectant.--The term `tertiary 
                injectant' has the same meaning as when used within 
                section 193(b)(1).
    ``(d) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Only carbon dioxide captured within the united states 
        taken into account.--Sales shall be taken into account under 
        this section only with respect to qualified carbon dioxide of 
        which is within--
                    ``(A) the United States (within the meaning of 
                section 638(1)), or
                    ``(B) a possession of the United States (within the 
                meaning of section 638(2)).
            ``(2) Recycled carbon dioxide.--The term `qualified carbon 
        dioxide' includes the initial deposit of captured carbon 
        dioxide used as a tertiary injectant. Such term does not 
        include carbon dioxide that is re-captured, recycled, and re-
        injected as part of the enhanced oil and natural gas recovery 
        process.
            ``(3) Credit attributable to taxpayer.--Any credit under 
        this section shall be attributable to the person that captures, 
        treats, compresses, transports and sells the carbon dioxide for 
        use as a tertiary injectant in enhanced oil and natural gas 
        recovery, except to the extent provided in regulations 
        prescribed by the Secretary.''.
    (b) Conforming Amendment.--Section 38(b) of such Code (relating to 
general business credit), as amended by section 302, is amended by 
striking ``plus'' at the end of paragraph (34), by striking the period 
at the end of paragraph (35) and inserting ``, plus'', and by adding at 
the end of following new paragraph:
            ``(36) the captured carbon dioxide tertiary injectant 
        credit determined under section 45P(a).''.
    (c) Clerical Amendment.--The table of sections for subpart B of 
part IV of subchapter A of chapter 1 of such Code (relating to other 
credits) is amended by adding at the end the following new section:

``Sec. 45R. Credit for carbon dioxide captured from industrial sources 
                            and used as a tertiary injectant in 
                            enhanced oil and natural gas recovery.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

             Subtitle G--Domestic Energy Impact Statements

SEC. 3601. COMMITTEE REPORTS IN HOUSE OF REPRESENTATIVES REQUIRED TO 
              INCLUDE DOMESTIC ENERGY IMPACT STATEMENTS.

    (a) Amendment to Rule.--Clause 3(d) of rule XIII of the Rules of 
the House of Representatives is amended by adding at the end the 
following new subparagraph:
            ``(4)(A) A statement (if timely submitted to the committee 
        by the Comptroller General before the filing of the report) for 
        each such bill or joint resolution that would have an impact on 
        the governance of public lands, including the outer Continental 
        Shelf, of the impact of such bill on domestic energy 
        availability.
            ``(B) Each such statement shall contain--
                    ``(i) the physical/geographic size of any new areas 
                of public lands which are opened up or closed off for 
                energy exploration; and
                    ``(ii) the total amount of cubic feet of dry 
                natural gas or the total number of barrels of oil or 
                liquid natural gas, or the total number of short tons 
                of coal, which could be recovered from any public lands 
                which are opened up or closed off for energy 
                exploration.''.
    (b) Exercise of Rulemaking Powers.--The amendment made by 
subsection (a) is enacted as an exercise of the rulemaking power of the 
House of Representatives, and as such shall be considered as part of 
the Rules of the House of Representatives, with full recognition of the 
constitutional right of the House of Representatives to change such 
Rules at any time, in the same manner, and to the same extent as in the 
case of any other Rule of the House of Representatives.

SEC. 3602. DOMESTIC ENERGY IMPACT STATEMENTS.

    (a) In General.--Section 719 of title 31, United States Code, is 
amended by adding at the end the following new subsection:
    ``(i) The Comptroller General shall, to the extent practicable, 
prepare for each bill or joint resolution reported by any committee of 
the House of Representatives or the Senate that would have an impact on 
domestic energy availability, and submit to such committee a domestic 
energy impact statement containing--
            ``(1) the physical/geographic size of any new areas of 
        public lands which are opened up or closed off for energy 
        exploration; and
            ``(2) the total amount of cubic feet of dry natural gas or 
        the total number of barrels of oil or liquid natural gas, or 
        the total number of short tons of coal, which could be 
        recovered from any public lands which are opened up or closed 
        off for energy exploration.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to bills and joint resolutions reported by committees of the 
House of Representatives or the Senate 90 or more days after the date 
of the enactment of this Act.

                     Subtitle H--Deficit Reduction

SEC. 3701. DEFICIT REDUCTION TRUST FUND.

    (a) In General.--Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``SEC. 9511. DEFICIT REDUCTION TRUST FUND.

    ``(a) Creation.--There is established in the Treasury of the United 
States a trust fund to be known as the `Deficit Reduction Trust Fund', 
consisting of such amounts as may be appropriated or credited to the 
Deficit Reduction Trust Fund as provided in this section.
    ``(b) Transfers.--There are hereby appropriated to the Deficit 
Reduction Trust Fund amounts equivalent to 25 percent of all OCS 
Receipts, as defined in section 9(i)(8) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1338), that are derived from leases under that Act 
on tracts that would not have been available for leasing prior to the 
enactment of the American Energy Innovation Act and that would 
otherwise have been deposited in the General Fund of the Treasury and 
not allocated to any other specific use.
    ``(c) Expenditures.--Amounts in the Deficit Reduction Trust Fund 
shall be available as provided in appropriation Acts only for the 
purpose of reducing the Federal debt.''.
    (b) Clerical Amendment.--The table of sections for such subchapter 
is amended by adding at the end the following new item:

``Sec. 9511. Deficit Reduction Trust Fund.''.

                         TITLE IV--JOB CREATION

SEC. 4001. SENSE OF CONGRESS.

    (a) Findings.--Congress finds the following:
            (1) A comprehensive energy policy would enhance the 
        national security of the United States in two ways, by reducing 
        our dependency on foreign sources of fuel and by simultaneously 
        creating tens of millions of jobs over the next few decades.
            (2) Opening the full outer Continental Shelf to energy 
        production would create 36 million jobs over the next 30 years.
            (3) Despite its distance from the continental United 
        States, the opening of just 2,000 acres of land in the Arctic 
        Coastal plain of Alaska is enough to supply up to an additional 
        million jobs throughout the Nation. Millions more jobs will be 
        created in sectors of the economy that make our traditional 
        sources of energy more efficient and clean.
            (4) Despite the progress being made in the development of 
        new and renewable energy sources and technologies, for the 
        foreseeable future, there are no viable substitutes for the 
        widely available, affordable petroleum resources located within 
        the United States.
            (5) While support must be given to continue to encourage 
        the development of alternative energy sources, Congress must 
        embrace a comprehensive energy policy that understands fossil 
        fuels will continue to play a significant role in our energy 
        policy for at least several more generations.
            (6) By doing so, the United States will embrace a realistic 
        plan to reduce our dependency on foreign sources of energy and 
        ensure our economic security.
    (b) Sense of Congress.--It is the sense of Congress that a 
comprehensive energy policy that promotes conservation, production, and 
innovation will consequently lead to massive long-term job creation.
                                 <all>