Text: S.1333 — 111th Congress (2009-2010)All Information (Except Text)

There is one version of the bill.

Text available as:

Shown Here:
Introduced in Senate (06/24/2009)


111th CONGRESS
1st Session
S. 1333


To provide clean, affordable, and reliable energy, and for other purposes.


IN THE SENATE OF THE UNITED STATES

June 24, 2009

Mr. Barrasso (for himself, Mr. Crapo, Mr. Hatch, Mr. Vitter, Mr. Risch, Mr. Bennett, and Mr. Enzi) introduced the following bill; which was read twice and referred to the Committee on Finance


A BILL

To provide clean, affordable, and reliable energy, and for other purposes.

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

SECTION 1. Short title; table of contents.

(a) Short title.—This Act may be cited as the “Clean, Affordable, and Reliable Energy Act of 2009”.

(b) Table of contents.—The table of contents for this Act is as follows:


Sec. 1. Short title; table of contents.

Sec. 101. American Renewable and Alternative Energy Trust Fund.

Sec. 111. Use of funds for recycling; Nuclear Waste Fund budget status.

Sec. 112. Rulemaking for licensing of spent nuclear fuel recycling facilities.

Sec. 113. Waste confidence.

Sec. 114. Domestic manufacturing base for nuclear components and equipment.

Sec. 121. Repeal of Federal purchasing requirement.

Sec. 122. Procurement of fuel derived from coal, oil shale, and oil sands.

Sec. 123. Expanded definition of biomass for certain programs.

Sec. 131. Stewardship end-result contracting projects.

Sec. 201. Short title.

Sec. 202. Findings and policy.

Sec. 203. Definitions.

Sec. 204. Maintaining science and technology education programs.

Sec. 205. Grants for scholarships and fellowships.

Sec. 206. Use of grant funds by institutions.

Sec. 207. Career technical and community college education.

Sec. 208. Funding.

TITLE III—DOMESTIC PRODUCTION

Subtitle A—Outer Continental Shelf


Sec. 301. Disposition of receipts.

Sec. 302. Leasing program considered approved.

Sec. 303. Outer Continental Shelf lease sales.

Sec. 304. Repeal of the Gulf of Mexico Energy Security Act of 2006.

Subtitle B—Arctic National Wildlife Refuge


Sec. 331. Short title.

Sec. 332. Definitions.

Sec. 333. Leasing program for land within the Coastal Plain.

Sec. 334. Lease sales.

Sec. 335. Grant of leases by the Secretary.

Sec. 336. Lease terms and conditions.

Sec. 337. Coastal plain environmental protection.

Sec. 338. Expedited judicial review.

Sec. 339. Federal and State distribution of revenues.

Sec. 340. Rights-of-way across the Coastal plain.

Sec. 341. Conveyance.

Sec. 342. Local government impact aid and community service assistance.

Subtitle C—Oil shale


Sec. 351. Leasing of oil shale resources.

TITLE IV—ENERGY INFRASTRUCTURE

Subtitle A—Transmission


Sec. 401. Natural gas pipeline integrity reassessment intervals based on risk.

Subtitle B—Small refinery study and temporary exemption


Sec. 411. Small refinery study and temporary exemption.

TITLE V—REDUCING GOVERNMENT RED TAPE AND EXCESSIVE LITIGATION


Sec. 501. Alaska Offshore Continental Shelf Coordination Office.

Sec. 502. Clean air regulation.

Sec. 503. Endangered species.

Sec. 504. Minerals Management Service.

Sec. 505. Completion and review of environmental impact statements.

TITLE VI—CONSERVATION AND EFFICIENCY

Subtitle A—New source review


Sec. 601. Clarifying new source review requirements.

Subtitle B—Clean coal alternative transition


Sec. 611. Carbon dioxide storage capacity assessment.

TITLE VII—TAX PROVISIONS


Sec. 701. Amendment of 1986 Code.

Subtitle A—Nuclear energy


Sec. 711. ASME Nuclear Certification credit.

Sec. 712. Expansion of energy investment tax credit to include nuclear and clean-coal equipment.

Sec. 713. Credit for qualifying nuclear power manufacturing.

Subtitle B—Synthetic and alternative energy


Sec. 721. Coal-to-liquid facilities.

Sec. 722. 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. 723. Extension of 50 cent per gallon alternative fuels excise tax credit.

Sec. 724. Tax credit parity for open-loop biomass facilities.

Subtitle C—Alternative fuel vehicles


Sec. 731. Extension of credit for alternative fuel vehicles.

Sec. 732. Extension of alternative fuel vehicle refueling property credit.

Sec. 733. Extension of credit for new qualified plug-in electric drive motor vehicles.

Subtitle D—Energy infrastructure


Sec. 741. Tax-exempt financing of energy transportation infrastructure not subject to private business use tests.

Sec. 742. Limitation on discriminatory taxation of certain pipeline property.

Subtitle E—Building efficiency incentives


Sec. 751. Home energy audits.

Sec. 752. Extension and clarification of new energy efficient home credit.

Sec. 753. Extension of credit for energy efficient appliances.

Sec. 754. Extension and modification of deduction for energy efficient commercial buildings.

SEC. 101. American Renewable and Alternative Energy Trust Fund.

(a) Establishment.—There is established in the Treasury of the United States a trust fund, to be known as the “American Renewable and Alternative Energy Trust Fund”, consisting of such amounts as are transferred to the American Renewable and Alternative Energy Trust Fund by law.

(b) Expenditures.—

(1) IN GENERAL.—Subject to paragraph (2), of the amounts in the American Renewable and Alternative Energy Trust Fund, the Secretary of Energy shall use for each fiscal year, without further appropriation—

(A) 2 percent to provide grants to improve the commercial value of forest biomass for electric energy, useful heat, transportation fuels, and other commercial purposes under section 210 of the Energy Policy Act of 2005 (42 U.S.C. 15855);

(B) 2 percent to provide hydroelectric production incentives under section 242 of the Energy Policy Act of 2005 (42 U.S.C. 15881);

(C) 3 percent for development of oil shale, oil sands, and other strategic unconventional fuels under section 369 of the Energy Policy Act of 2005 (42 U.S.C. 15927);

(D) 7 percent for the Clean Coal Power Initiative under subtitle A of title IV of the Energy Policy Act of 2005 (42 U.S.C. 15961 et seq.);

(E) 6 percent for development of solar and wind technologies under section 812 of the Energy Policy Act of 2005 (42 U.S.C. 16161);

(F) 20 percent for renewable energy activities under section 931 of the Energy Policy Act of 2005 (42 U.S.C. 16231);

(G) 2.5 percent to provide production incentives for cellulosic biofuels under section 942 of the Energy Policy Act of 2005 (42 U.S.C. 16251);

(H) 4 percent for the coal and related technologies program under section 962 of the Energy Policy Act of 2005 (42 U.S.C. 16292);

(I) 2.5 percent for methane hydrate research activities under the Methane Hydrate Research and Development Act of 2000 (30 U.S.C. 2001 et seq.);

(J) 7 percent to provide incentives for innovative technologies under title XVII of the Energy Policy Act of 2005 (42 U.S.C. 16511 et seq.);

(K) 14 percent to provide grants for the production of advanced biofuels under section 207 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17022);

(L) 2.5 percent for the photovoltaic demonstration program under section 607 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17175);

(M) 4 percent for activities for geothermal energy under subtitle B of title VI of the Energy Independence and Security Act of 2007 (42 U.S.C. 17191 et seq.);

(N) 2.5 percent for marine and hydrokinetic renewable energy technologies under subtitle C of title VI of the Energy Independence and Security Act of 2007 (42 U.S.C. 17211 et seq.);

(O) 8 percent for energy storage competitiveness activities under section 641 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17231);

(P) 6 percent for the smart grid technology research, development, and demonstration program under section 1304 of Energy Independence and Security Act of 2007 (42 U.S.C. 17384);

(Q) 5 percent for the domestic energy education and workforce program under title II of this Act; and

(R) 2 percent for renewable energy sources that supply base load power generation.

(2) APPORTIONMENT OF EXCESS AMOUNTS.—Notwithstanding paragraph (1), any amounts allocated to carry out a program or activity under that paragraph that are in excess of the amounts otherwise authorized to be appropriated carry out that program or activity shall be reallocated proportionally among the remaining activities and programs specified in paragraph (1).

SEC. 111. Use of funds for recycling; Nuclear Waste Fund budget status.

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”;

(2) in subsection (e), by adding at the end the following:

“(7) BUDGET AUTHORITY.—The receipts and disbursements of the Waste Fund shall not be counted as new budget authority, outlays, receipts, deficits, or surplus for purposes of—

“(A) the budget of the Federal Government, as submitted by the President;

“(B) the congressional budget; or

“(C) the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900 et seq.).”; and

(3) by adding at the end the following:

“(f) Recycling.—

“(1) IN GENERAL.—Amounts in the Waste Fund may be used by the Secretary 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 provided or awarded on the basis of a competitive bidding process that—

“(A) maximizes the competitive efficiency of the projects to be funded;

“(B) best serves the goal of reducing the quantity 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. 112. Rulemaking for licensing of spent nuclear fuel recycling facilities.

(a) Requirement.—The Nuclear Regulatory Commission shall, as expeditiously as practicable, but in no event later than 2 years after the date of enactment of this Act, complete a rulemaking establishing a process for the licensing by the Nuclear Regulatory Commission, under the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.), of facilities for the recycling of spent nuclear fuel.

(b) Funding.—Amounts in the Nuclear Waste Fund established by section 302(c) of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222(c)) shall be made available to the Nuclear Regulatory Commission to cover the costs incurred in carrying out subsection (a).

SEC. 113. Waste confidence.

The Nuclear Regulatory Commission may not deny an application for a license, permit, or other authorization under the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.) on the grounds that sufficient capacity does not exist, or will not become available on a timely basis, for the disposal of spent nuclear fuel or high-level radioactive waste from the facility for which the license, permit, or other authorization is sought.

SEC. 114. Domestic manufacturing base for nuclear components and equipment.

(a) Purposes.—The purposes of this section are—

(1) to increase the competitiveness of the United States nuclear energy product and service industries;

(2) to identify the stimulus or incentives necessary to cause United States manufacturers of nuclear energy products to expand manufacturing capacity;

(3) to facilitate the export of United States nuclear energy products and services;

(4) to reduce the trade deficit of the United States through the export of United States nuclear energy products and services;

(5) to retain and create nuclear energy manufacturing and related service jobs in the United States;

(6) to integrate into the foreign policy of the United States, in a manner consistent with the interests of the United States, the objectives described in paragraphs (1) through (4); and

(7) to authorize funds for increasing United States capacity to manufacture nuclear energy products and supply nuclear energy services.

(b) Establishment.—

(1) IN GENERAL.—There is established an interagency working group (referred to in this section as the “Working Group”).

(2) COMPOSITION.—The Working Group shall be composed of—

(A) the Secretary of Energy (or a designee of the Secretary of Energy), who shall serve as Chairperson of the Working Group; and

(B) such representatives of Federal agencies as the President determines to be appropriate, including 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; and

(xi) the Office of the United States Trade Representative.

(C) PERSONNEL AND SERVICES.—The Secretary of Energy and the heads of other Federal agencies represented on the Working Group shall detail such personnel and furnish such services to the Working Group, with or without reimbursement, as are necessary to carry out the duties of the Working Group.

(c) Duties.—

(1) RECOMMENDATIONS.—

(A) IN GENERAL.—The Working Group, in consultation with representative industry organizations and manufacturers of nuclear energy products, shall make recommendations in accordance with this paragraph to coordinate the actions and programs of the Federal Government in order to promote—

(i) the increasing of domestic manufacturing capacity; and

(ii) the export of domestic nuclear energy products and services.

(B) ACTIONS, MECHANISMS, AND INITIATIVES.—Not later than 180 days after the date of enactment of this Act, the Working Group shall identify—

(i) the actions necessary to promote the safe development and application in foreign countries of nuclear energy products and services—

(I) to increase electricity generation from nuclear energy sources through development of new generation facilities;

(II) to improve the efficiency, safety, and reliability of existing nuclear generating facilities through modifications; and

(III) to enhance the safe treatment, handling, storage, and disposal of used nuclear fuel;

(ii) mechanisms (including tax stimulus for investment, loans and loan guarantees, and grants) necessary for United States companies to increase—

(I) the capacity of the companies to produce or provide nuclear energy products and services; and

(II) the exports of the companies of nuclear energy products and services; and

(iii) administrative or legislative initiatives necessary—

(I) to encourage United States companies to increase the manufacturing capacity of the companies for nuclear energy products;

(II) to 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) to encourage, through financial incentives, private sector capital investment to expand manufacturing capacity; and

(IV) to provide technical assistance and financial incentives to small and mid-sized businesses to develop the workforce necessary to increase manufacturing capacity and meet domestic and international nuclear quality assurance code requirements.

(C) REPORT.—Not later than 270 days after the date of enactment of this Act, the Working Group shall submit to Congress a report that describes the findings and recommendations of the Working Group under this paragraph, including any recommendations of the Working Group for new legislative authority, as appropriate.

(2) TRADE ASSISTANCE.—The Working Group shall encourage the agencies represented on the Working Group—

(A) to provide technical training and education for international development personnel and local users in the home countries of the personnel and users;

(B) to 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) to develop nuclear energy projects in foreign countries;

(D) to provide technical assistance and training materials to loan officers of the World Bank, international lending institutions, commercial and energy attachés 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) to 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) to augment budgets for trade and development programs in order to support prefeasibility or feasibility studies for projects that use nuclear energy products and services.

(d) Authorization of appropriations.—There is authorized to be appropriated to the Secretary of Energy for use in carrying out this section $20,000,000 for the period of fiscal years 2009 and 2010.

SEC. 121. Repeal of Federal purchasing requirement.

Section 526 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17142) is repealed.

SEC. 122. Procurement of fuel derived from coal, oil shale, and oil sands.

Section 2922d(d) of title 10, United States Code, is amended by striking “1 or more” and inserting “up to 25”.

SEC. 123. Expanded definition of biomass for certain programs.

Section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)(1)) is amended by striking subparagraph (I) and inserting the following:

“(I) RENEWABLE BIOMASS.—The term ‘renewable biomass’ has the meaning given the term ‘biomass’ in section 203(b) of the Energy Policy Act of 2005 (42 U.S.C. 15852(b)).”.

SEC. 131. Stewardship end-result contracting projects.

Section 8 of the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2104) is amended—

(1) by redesignating subsection (h) as subsection (j) and moving that subsection so as to appear at the end of the section; and

(2) by inserting after subsection (g) the following:

“(h) Cancellation or termination costs.—

“(1) IN GENERAL.—Notwithstanding section 304B of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 254c), the Secretary is not required to obligate funds to cover the cost of cancelling a Forest Service stewardship multiyear contract under section 347 of the Department of the Interior and Related Agencies Appropriations Act, 1999 (16 U.S.C. 2104 note; section 101(e) of division A of Public Law 105–277) until the contract is cancelled.

“(2) FUNDING SOURCES.—The costs of any cancellation or termination of a multiyear stewardship contract described in paragraph (1) may be paid from—

“(A) appropriations originally made available for the performance of the contract concerned;

“(B) appropriations currently available for procurement of the type of service concerned, and not otherwise obligated; or

“(C) funds appropriated for payments for that performance or procurement.

“(3) ANTI-DEFICIENCY ACT VIOLATIONS.—In a case in which payment or obligation of funds under this subsection would constitute a violation of section 1341 of title 31, United States Code (commonly known as the ‘Anti-Deficiency Act’), the Secretary may—

“(A) seek a supplemental appropriation; or

“(B) request funds from the permanent judgment appropriation established pursuant to section 1304 of title 31, United States Code.”.

SEC. 201. Short title.

This title may be cited as the “Strengthening America's Science and Technology Education Act”.

SEC. 202. Findings and policy.

(a) Findings.—Congress finds that the science and technology programs that produce the human capital needed for the energy and mineral resources security of the United States—

(1) are national assets; and

(2) should be assisted with Federal funds to ensure the continued success and existence of the programs.

(b) Policy.—It is the policy of the United States to maintain the human capital needed to preserve and foster the economic, energy, and mineral resources security of the United States.

SEC. 203. Definitions.

In this title:

(1) INSTITUTION OF HIGHER EDUCATION.—The term “institution of higher education” has the meaning given the term in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002).

(2) RECOGNIZED PROGRAM.—The term “recognized program” means a program of study at an institution of higher education that—

(A)(i) is an engineering program for energy, petroleum, chemical, mining, nuclear, or mineral engineering that is accredited as of the date of enactment of this Act;

(ii) is a geological engineering or geophysical engineering program that—

(I) is accredited as of the date of enactment of this Act; and

(II) is focused on petroleum or natural gas production, the production of mineral resources, or the development of permanent underground workings, as demonstrated by the curriculum and the expertise of the faculty of the program; or

(iii) is a program in geology or geophysics that—

(I) the Secretary determines to be acceptable under this title; and

(II) has undergraduate and graduate programs of research and education in the geology and geophysics of conventional or nonconventional energy, geothermal energy, or metallic and nonmetallic deposits, including industrial minerals, sand and gravel deposits; and

(B)(i) in the case of an engineering program, meets the specific program criteria established by the 1 or more applicable member societies of ABET, Inc.; or

(ii) in the case of a geology or geophysics program, meets the appropriate criteria established by the Secretary.

(3) SECRETARY.—The term “Secretary” means the Secretary of Energy.

SEC. 204. Maintaining science and technology education programs.

(a) In general.—Not later than 1 year after the date of enactment of this Act, the Secretary shall issue such regulations as are necessary to carry out this title.

(b) Research grants.—In support of the policy described in section 202(b), the Secretary shall provide research grants to institutions of higher education and other institutions to assist in maintaining recognized programs in education and research.

(c) Requirements.—

(1) RESEARCH.—Research funded at recognized programs by grants under this section shall include studies and research—

(A) to enhance basic science and engineering;

(B) to provide proof of scientific or engineering concepts; and

(C) to determine scientific or engineering feasibility.

(2) MAINTENANCE OF PROGRAM.—As a condition on receipt of a grant under this section, each institution of higher education or other institution that receives a grant shall—

(A) maintain the recognized program for which the grant is provided for not less than 10 years after the date of the last receipt of a grant; and

(B) take steps described in the application for funding the grant of the institution to increase the number of undergraduate students enrolled in and completing the recognized programs.

(d) Consortia.—

(1) IN GENERAL.—Subject to paragraph (2), the Secretary may make grants available under this section to consortia of institutions to conduct projects of broad application that could not otherwise be undertaken, including national and regional projects in geology or geophysics and engineering as applied to petroleum, geothermal, alternative energy, renewable energy, mining, nuclear, and mineral processing or beneficiation.

(2) REQUIREMENT.—Grants made to a consortium under paragraph (1) shall only be provided to a single eligible institution with a recognized program, which shall be responsible for distribution, monitoring, and reporting on the activities of the consortium as required by the Secretary.

SEC. 205. Grants for scholarships and fellowships.

(a) In general.—The Secretary shall provide grants to eligible institutions of higher education for the purpose of providing merit-based scholarships for undergraduate education, graduate fellowships, and postdoctoral fellowships at the institutions.

(b) Eligibility.—

(1) IN GENERAL.—To be eligible to receive a grant under this section, an institution of higher education shall agree—

(A) to enforce the requirements of this section for scholarship or fellowship students; and

(B) to return to the Secretary any funds recovered from an individual under subsection (d)(2)(B).

(2) APPLICATION.—An institution of higher education that seeks a grant under this section shall describe, in the application of the institution of higher education to the Secretary—

(A) the number of students that would be awarded scholarships or fellowships if the application is approved;

(B) the manner in which the students would be selected; and

(C) the manner in which the institution of higher education would enforce this section.

(c) Preference.—Scholarships and fellowships funded through grants under this section shall give a preference for veterans and service members who have received or will receive the Afghanistan Campaign Medal or the Iraq Campaign Medal as authorized by Public Law 108-234 (118 Stat. 655), and Executive Order 13363 (69 Fed. Reg. 70175; relating to establishing the Afghanistan and Iraq Campaign Medals).

(d) Requirements.—

(1) IN GENERAL.—To receive a scholarship or fellowship funded through a grant under this section, an individual shall—

(A) be a lawful permanent resident or citizen of the United States;

(B) agree in writing to complete a course of studies and receive a degree in petroleum, chemical, mining, geological, geophysical, nuclear, or mineral engineering, petroleum geology, geothermal geology, mining and economic geology, petroleum and mining geophysics, mineral economics, or alternative or renewable energy in a recognized program; and

(C) agree to notify, through the institution of higher education of the individual, the Secretary—

(i) of the progress of the individual towards completion of the course of studies; and

(ii) not later than 30 days after the date on which the individual is awarded a degree from the institution of higher education.

(2) RETENTION.—

(A) IN GENERAL.—To retain a scholarship or fellowship funded through a grant under this section, an individual shall—

(i) continue in 1 of the course of studies described in paragraph (1)(B);

(ii) remain in good academic standing and demonstrate satisfactory academic progress, as determined by the institution of higher education; and

(iii) allow for reinstatement of the scholarship or fellowship by the Secretary, upon the recommendation of the institution of higher education.

(B) RECOVERY OF FUNDS.—An institution of higher education may recover remaining funds from a scholarship or fellowship funded by a grant under this section from an individual who fails to complete any of the courses of study described in paragraph (1)(B) after notice that completion is a requirement of continued funding.

(C) CHANGE OF COURSE.—An individual receiving a scholarship or graduate fellowship funded by a grant under this section may change courses of study and continue receiving funding if the individual remains within a course of study described in paragraph (1)(B).

SEC. 206. Use of grant funds by institutions.

(a) In general.—Each institution of higher education that receives a grant under this title shall—

(1) have an officer appointed by the governing authority of the institution of higher education who shall—

(A) receive and account for all grant funds received under this title; and

(B) make an annual report to the Secretary on or before the first day of September of each year, that—

(i) describes work accomplished and the status of projects underway; and

(ii) includes a detailed statement of the grant funds received under this title during the preceding fiscal year and of the disbursement of the grant funds on schedules prescribed by the Secretary;

(2) submit to the Secretary detailed reports about projects completed, in progress, or planned with grants made under this title.

(b) Matching funds.—

(1) IN GENERAL.—Grants made under this title for basic science and engineering studies and research, as determined by the Secretary, shall not require additional participation by funding partners.

(2) OTHER GRANTS.—All other grants for studies made under this title—

(A) shall include participation by industry; and

(B) may include funding from other Federal agencies.

(c) Prohibitions.—

(1) IN GENERAL.—No funds made available under this title may be applied to the acquisition by purchase or lease of any land or interests in land, or the rental, purchase, construction, preservation, or repair of any building.

(2) MAINTENANCE.—With the express approval of the Secretary, funding made available under this title may be used for proposals to maintain or upgrade existing laboratories and laboratory equipment, but not for any university overhead expenses.

(d) Public availability.—

(1) IN GENERAL.—All uses, products, processes, and other developments resulting from any research, demonstration, or experiment funded in whole or in part under this title shall be made available promptly to the general public, subject to—

(A) any exceptions or limitations that the Secretary may find necessary in the interest of national security; and

(B) applicable Federal patent law.

(2) REPORTS.—On not less than an annual basis, the Secretary shall make available to the public reports submitted under subsection (a)(2).

SEC. 207. Career technical and community college education.

(a) In general.—The Secretary shall provide grants for the operation or development of programs in mining engineering technology, petroleum engineering technology, industrial engineering technology, industrial technology, alternative and renewable energy technology, electric power technology, extractive resources technology, and diesel power technology, construction, retrofitting, and design that—

(1) are focused on technology and the use of technology in energy and mineral production and related maintenance, operational safety, or energy infrastructure protection and security;

(2) prepare students for advanced or supervisory roles in the mining industry, the petroleum industry, or alternative and renewable energy industry; and

(3) grant an associate degree or a baccalaureate degree.

(b) Vocational programs.—

(1) IN GENERAL.—The Secretary shall provide grants for the operation or development of programs, including joint apprenticeship programs authorized by Federal law, programs at institutions of higher education, secondary school vocational education programs, or career academy programs, that provide training for individuals seeking to enter the geothermal, petroleum, mining, mineral mining, or alternative and renewable energy industries.

(2) PROGRESSIVE CAREER PATH.—The Secretary shall give particular consideration to supporting programs that provide training for a progressive career path in the industries described in paragraph (1).

(3) ESSENTIAL SUPPORT.—The Secretary may provide grants to programs that grant degrees or certificates in programs that provide training in disciplines that provide essential support for the industries described in paragraph (1) or subsection (c), even if the programs are not purposely designed to provide personnel for those industries.

(c) Other programs.—The Secretary shall provide grants for the operation or development of programs of career technical education at a secondary school, offered cooperatively with a community college in 1 of the industrial sectors of—

(1) agriculture, forestry, or fisheries;

(2) utilities, particularly power transmission and pipeline construction and operations;

(3) maintenance and maintenance logistics;

(4) construction;

(5) manufacturing;

(6) transportation and warehousing;

(7) industrial engineering and technology; or

(8) energy and natural resources.

(d) Requirements.—As a condition of receiving a grant under this section, an institution of higher education or other entity shall—

(1) demonstrate to the satisfaction of the Secretary—

(A) an institutional commitment to career technical education; and

(B) that the institution of higher education or entity has received or will receive industry cooperation in the form of equipment, employee time, or donations of funds to support the activities that are within the scope of this section; and

(2) agree to maintain the programs for which the grant is sought for a period of 10 years beginning on the date of receipt of the funding, unless the Secretary finds that a shorter period of time is appropriate for the local labor market or is required by State authorities.

(e) Use of funds for program operation.—

(1) INITIAL USE.—An institution of higher education or other entity that receives a grant under this section for the operation of a program may initially only use the funds to enhance the instructional skills of teachers through additional training and necessary resources.

(2) EQUIPMENT.—After teachers have achieved enhanced skills and meet an appropriate standard as agreed to by local authorities in consultation with the Secretary, grant funds received under this section may be used to purchase classroom and laboratory equipment.

(f) Use of funds for program development.—An institution of higher education or other entity that receives a grant under this section for the development of a new program shall use the grant—

(1) to support the purchase of classroom and laboratory equipment; and

(2) to supplement teacher salaries to encourage the hiring of highly qualified teachers.

(g) Other funding.—An institution of higher education or other entity that receives a grant under this section may combine the grant funds with State funds, and other Federal funds if allowed by law, to carry out programs described in this section, if the use of the funds is reported to the Secretary not less than annually.

SEC. 208. Funding.

The Secretary shall use amounts from the American Renewable and Alternative Energy Trust Fund under section 101(b)(1)(Q) to carry out this title for each of fiscal years 2009 through 2019, to remain available until expended.

TITLE IIIDomestic production

subtitle AOuter Continental Shelf

SEC. 301. Disposition of receipts.

(a) Definitions.—In this section:

(1) ADJACENT STATE.—The term “Adjacent State” means a coastal State that—

(A) has a coastal seaward boundary that is within a 100 statute miles distance of the geographical center of a leased tract in an outer Continental Shelf planning area; and

(B) as of January 1, 2000, had no oil or natural gas production within a 100 statute miles distance of the geographical center of a leased tract in an outer Continental Shelf planning area.

(2) COASTAL POLITICAL SUBDIVISION.—The term “coastal political subdivision”, with respect to an Adjacent State, means a county-equivalent subdivision of the Adjacent State all or part of which—

(A) lies within the coastal zone (as defined in section 304(1) of the Coastal Zone Management Act of 1972 (16 U.S.C. 1453(1)); and

(B) the closest point of which is not more than 100 statute miles from the geographical center of any leased tract.

(3) DISTANCE.—The term “distance” means minimum great circle distance.

(4) LEASED TRACT.—The term “leased tract” means a tract leased under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) for the purpose of drilling for, developing, and producing oil or natural gas resources.

(5) QUALIFIED OUTER CONTINENTAL SHELF RECEIPTS.—

(A) IN GENERAL.—The term “qualified outer Continental Shelf receipts” means all amounts received by the United States in the fiscal year immediately following the fiscal year during which this Act is enacted and each fiscal year thereafter—

(i) from each leased tract or portion of a leased tract, the geographical center of which lies within a distance of 100 statute miles from any part of the coastline of an Adjacent State, including bonus bids, rents, royalties (including the value of royalties taken in kind), net profit share payments, fees, and related late payment interest; and

(ii) from leases entered into on or after January 1, 2000.

(B) EXCLUSIONS.—The term “qualified outer Continental Shelf receipts” does not include—

(i) receipts from the forfeiture of a bond or other surety securing obligations other than royalties, or civil penalties; or

(ii) receipts generated from leases subject to section 8(g) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(g)).

(6) SECRETARY.—The term “Secretary” means the Secretary of the Interior.

(b) Disposition of qualified outer continental shelf receipts from outer continental shelf oil and gas leasing planning areas.—

(1) IN GENERAL.—Notwithstanding section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338) and subject to the other provisions of this subsection, for each applicable fiscal year, the Secretary of the Treasury shall deposit—

(A) 62.5 percent of qualified outer Continental Shelf revenues in the miscellaneous receipts of the Treasury; and

(B) 37.5 percent of qualified outer Continental Shelf revenues in a special account in the Treasury that the Secretary shall disburse to—

(i) Adjacent States; and

(ii) certain coastal political subdivisions of the Adjacent States.

(2) ALLOCATION AMONG ADJACENT STATES AND COASTAL POLITICAL SUBDIVISIONS.—

(A) ALLOCATION AMONG ADJACENT STATES.—

(i) IN GENERAL.—Effective for the fiscal year immediately following the fiscal year in which this Act is enacted and each fiscal year thereafter, the amount made available under paragraph (1)(B) shall be allocated by the Secretary to each Adjacent State in amounts (based on a formula established by the Secretary by regulation) that are inversely proportional to the respective distances between the point on the coastline of each Adjacent State that is closest to the geographical center of the applicable leased tract and the geographical center of the leased tract.

(ii) SINGLE ADJACENT STATE.—If only 1 Adjacent State is within 100 miles of the geographical center of a lease described in clause (i), the entire amount made available under paragraph (1)(B) from the lease shall be allocated to the Adjacent State.

(B) ALLOCATION AMONG COASTAL POLITICAL SUBDIVISIONS OF ADJACENT STATES.—

(i) IN GENERAL.—The Secretary shall pay 40 percent of the allocable share of each Adjacent State (as determined under subparagraph (A)) to certain coastal political subdivisions of the Adjacent State.

(ii) ALLOCATION.—

(I) IN GENERAL.—For each leased tract that is used to calculate the allocation of an Adjacent State, the Secretary shall allocate funds to the coastal political subdivisions that are within 100 miles of the geographical center of the leased tract based on the relative distance of the coastal political subdivisions from the leased tract.

(II) DISTANCE.—For each coastal political subdivision described in subclause (I), the Secretary shall determine the distance between—

(aa) the point on the coastal political subdivision coastline closest to the geographical center of the leased tract; and

(bb) the geographical center of the tract.

(III) INVERSELY PROPORTIONAL ALLOCATION.—The Secretary shall divide and allocate the qualified outer Continental Shelf revenues derived from the leased tract among the coastal political subdivisions described in subclause (I) in amounts that are inversely proportional to the distances determined under subclause (II).

(3) TIMING.—The amounts required to be deposited under paragraph (1)(B) for the applicable fiscal year shall be made available in accordance with paragraph (1)(B) during the first 90 days of the fiscal year immediately following the applicable fiscal year.

(4) AUTHORIZED USES.—Each Adjacent State and coastal political subdivision shall use all amounts received under paragraph (2) in accordance with all applicable Federal and State laws, only for 1 or more of the following purposes:

(A) Projects and activities for the purposes of coastal protection (including conservation), coastal restoration, storm protection, and infrastructure directly affected by coastal wetland and tundra losses.

(B) Mitigation of damage to fish, wildlife, or natural resources.

(C) Implementation of a federally approved marine, coastal, or comprehensive conservation management plan.

(D) Mitigation of the impact of outer Continental Shelf activities through the funding of onshore infrastructure projects.

(E) Any other purpose authorized for the use of those amounts under State law.

(5) LIMITATIONS ON AMOUNT OF DISTRIBUTED QUALIFIED OUTER CONTINENTAL SHELF RECEIPTS.—The total amount of qualified outer Continental Shelf receipts made available under paragraph (1)(B) to an Adjacent State and coastal political subdivisions of the Adjacent State shall not exceed $500,000,000 for each fiscal year (in 2008 dollars), as adjusted for inflation.

(6) AMERICAN RENEWABLE AND ALTERNATIVE ENERGY TRUST FUND.—Of the amounts of qualified outer Continental Shelf revenues described in paragraph (1)(A), 90 percent of the amounts shall be deposited in the American Renewable and Alternative Energy Trust Fund established by section 101.

SEC. 302. 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) Completion and review of environmental impact statements.—

(1) COMPLETION.—

(A) IN GENERAL.—Notwithstanding any other provision of law, each review carried out in accordance with the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) for the program described in subsection (a) shall be completed not later than 270 days after the date of enactment of this Act.

(B) FAILURE TO COMPLETE REVIEW.—If a review described in subparagraph (A) has not been completed for an action subject to the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) by the date specified in subparagraph (A)—

(i) the action shall be considered to have no significant impact to the human environment for purposes of the Act (42 U.S.C. 4321 et seq.); and

(ii) that classification shall be considered to be a final agency action.

(2) LEAD AGENCY.—The lead agency for a review of an action under this subsection shall be the Federal agency to which funds are made available for the action.

(3) REVIEW.—

(A) JUDICIAL REVIEW.—

(i) IN GENERAL.—Judicial review of the final agency decision after exhaustion of administrative remedies shall lie with the United States Court of Appeals for the District of Columbia Circuit.

(ii) ADMINISTRATIVE RECORD.—An appeal to the court described in clause (i) shall be based only on the administrative record.

(iii) PENDENCY OF JUDICIAL REVIEW.—After an agency has made a final decision with respect to a review carried out under this subsection, the decision shall be effective during the course of any subsequent appeal to a court described in clause (i).

(B) CIVIL ACTION.—Each civil action covered by this subsection shall be considered to arise under the laws of the United States.

SEC. 303. Outer Continental Shelf lease sales.

(a) Requirement To conduct lease sales.—

(1) IN GENERAL.—Except as provided in paragraph (2), not later than 1 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 least 1 lease sale in an Atlantic Planning Area, 1 lease sale in the Pacific Planning Area, 1 lease sale in the Alaska Planning Area, and 3 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 the applicable area 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. 304. Repeal of the Gulf of Mexico Energy Security Act of 2006.

The Gulf of Mexico Energy Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109–432) is repealed.

subtitle BArctic National Wildlife Refuge

SEC. 331. Short title.

This subtitle may be cited as the “American Energy Independence and Price Reduction Act”.

SEC. 332. Definitions.

In this subtitle:

(1) COASTAL PLAIN.—The term “Coastal Plain” means the area described in appendix I to part 37 of title 50, Code of Federal Regulations, as in effect on July 14, 2008, popularly known as the “Coastal Plain of the Arctic National Wildlife Refuge”.

(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—

(A) section 1002 of the Alaska National Interest Lands Conservation Act (16 U.S.C. 3142); and

(B) section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)).

(4) 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. 333. 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, fish and wildlife 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 of prohibition.—

(1) IN GENERAL.—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 the Alaska National Interest Lands Conservation Act of 1980 (16 U.S.C. prec. 3143) is amended by striking the item relating to section 1003.

(c) Compliance with requirements under certain other laws.—

(1) COMPATIBILITY.—For purposes of the National Wildlife Refuge System Administration Act of 1966 (16 U.S.C. 668dd et seq.)—

(A) the oil and gas leasing program and activities authorized by this section in the Coastal Plain shall be considered to be compatible with the purposes for which the Arctic National Wildlife Refuge was established; and

(B) no further findings or decisions shall be required to implement that program and those activities.

(2) ADEQUACY OF DOI LEGISLATIVE ENVIRONMENTAL IMPACT STATEMENT.—The Final Statement shall be considered to satisfy the requirements of the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) that apply with respect to prelease activities, including actions authorized to be taken by the Secretary to develop and promulgate the regulations for the establishment of a leasing program authorized by this subtitle before the conduct of the first lease sale.

(3) COMPLIANCE WITH NEPA FOR OTHER ACTIONS.—

(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.

(d) Relationship to State and local authority.—Nothing in this subtitle expands or limits State or local regulatory authority.

(e) 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.

(f) 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.

(g) 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. 334. 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. 335. 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 334 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. 336. 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 1212 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 333(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;

(8) prohibit the export of oil produced under the lease; and

(9) 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. 337. Coastal plain environmental protection.

(a) No significant adverse effect standard To govern authorized coastal plain activities.—In accordance with section 333, 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; and

(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;

(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) design safety and construction standards for all pipelines and any access and service roads, that—

(A) minimize, to the maximum extent practicable, adverse effects on the passage of migratory species such as caribou; and

(B) minimize adverse effects on the flow of surface water by requiring the use of culverts, bridges, and other structural devices;

(5) prohibitions on general public access and use on all pipeline access and service roads;

(6) stringent reclamation and rehabilitation requirements, consistent with the standards described in this subtitle, requiring 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 that the Secretary may exempt from the requirements of this paragraph those facilities, structures, or equipment that the Secretary determines would assist in the management of the Arctic National Wildlife Refuge and that are donated to the United States for that purpose;

(7) appropriate prohibitions or restrictions on access by all modes of transportation;

(8) appropriate prohibitions or restrictions on sand and gravel extraction;

(9) consolidation of facility siting;

(10) appropriate prohibitions or restrictions on use of explosives;

(11)(A) avoidance, to the maximum extent practicable, of springs, streams, and river system;

(B) the protection of natural surface drainage patterns, wetland, and riparian habitats; and

(C) the regulation of methods or techniques for developing or transporting adequate supplies of water for exploratory drilling;

(12) the avoidance or minimization of air traffic-related disturbance to fish and wildlife;

(13) treatment and disposal of hazardous and toxic wastes, solid wastes, reserve pit fluids, drilling muds and cuttings, and domestic wastewater, including, 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;

(14) fuel storage and oil spill contingency planning;

(15) research, monitoring, and reporting stipulations;

(16) conduct of periodic field crew environmental briefings;

(17) avoidance of significant adverse effects on subsistence hunting, fishing, and trapping;

(18) compliance with applicable air and water quality standards;

(19) appropriate seasonal and safety zone designations around well sites, within which subsistence hunting and trapping shall be limited;

(20) reasonable stipulations for protection of cultural and archeological resources; and

(21) 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. 338. 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. 339. 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) except as otherwise provided in this Act, 90 percent of the balance shall be deposited into the American Renewable and Alternative Energy Trust Fund established by section 101.

(b) Payments to Alaska.—Payments to the State of Alaska under this section shall be made semiannually.

SEC. 340. 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 333(g) provisions granting rights-of-way and easements described in subsection (a).

SEC. 341. 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.

SEC. 342. Local government impact aid and community service assistance.

(a) Financial assistance authorized.—

(1) IN GENERAL.—The Secretary may use amounts available from the Coastal Plain Local Government Impact Aid Assistance Fund established by subsection (d) to provide timely financial assistance to entities that are eligible under paragraph (2).

(2) ELIGIBLE ENTITIES.—The North Slope Borough, the City of Kaktovik, and any other borough, municipal subdivision, village, or other community in the State of Alaska that is directly impacted by exploration for, or the production of, oil or gas on the Coastal Plain under this subtitle, as determined by the Secretary, shall be eligible for financial assistance under this section.

(b) Use of assistance.—Financial assistance under this section may be used only—

(1) to plan for mitigation, implement a mitigation plan, or maintain a mitigation project to address the potential effects of oil and gas exploration and development on environmental, social, cultural, recreational, and subsistence resources of the community;

(2) to develop, carry out, and maintain—

(A) a project to provide new or expanded public facilities; or

(B) services to address the needs and problems associated with the effects described in paragraph (1), including firefighting, police, water and waste treatment, first responder, and other medical services; and

(3) to establish a local coordination office, to be managed by the Mayor of the North Slope Borough, in coordination with the City of Kaktovik, Alaska—

(A) to coordinate with and advise developers on local conditions and the history of areas affected by development; and

(B) to 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 developers and communities affected by development.

(c) Application.—

(1) IN GENERAL.—Any community that is eligible for assistance under this section may submit an application for such assistance to the Secretary, in such form and under such procedures as the Secretary may prescribe by regulation.

(2) NORTH SLOPE BOROUGH COMMUNITIES.—A community located in the North Slope Borough may apply for assistance under this section either directly to the Secretary or through the North Slope Borough.

(3) APPLICATION ASSISTANCE.—The Secretary shall work closely with and assist the North Slope Borough and other communities eligible for assistance under this section in developing and submitting applications for assistance under this section.

(d) Establishment of Fund.—

(1) IN GENERAL.—There is established in the Treasury the “Coastal Plain Local Government Impact Aid Assistance Fund” (referred to in this section as the “Fund”).

(2) USE.—Amounts in the Fund may be used only for providing financial assistance under this section.

(3) DEPOSITS.—Subject to paragraph (4), there shall be deposited into the Fund amounts received by the United States as revenues derived from rents, bonuses, and royalties from Federal leases and lease sales authorized under this subtitle.

(4) LIMITATION ON DEPOSITS.—The total amount in the Fund may not exceed $11,000,000.

(5) INVESTMENT OF BALANCES.—The Secretary of the Treasury shall invest amounts in the Fund in interest bearing government securities.

(e) Authorization of appropriations.—There is authorized to be appropriated to the Secretary from the Fund to provide financial assistance under this section $5,000,000 for each fiscal year.

subtitle COil shale

SEC. 351. Leasing of oil shale resources.

The Secretary of the Interior shall—

(1) offer for leasing for research and development of oil shale resources under subsection (c) of the Oil Shale, Tar Sands, and Other Strategic Unconventional Fuels Act of 2005 (42 U.S.C. 15927(c)), any additional 160-acre tracts of land that the Secretary determines to be necessary to fulfill the research and development objectives of that Act; and

(2) offer for leasing for commercial exploration, development, and production of oil shale resources under subsection (e) of the Oil Shale, Tar Sands, and Other Strategic Unconventional Fuels Act of 2005 (42 U.S.C. 15927(e)), public land in States for which the Secretary finds sufficient support and interest as required by that subsection.

TITLE IVEnergy infrastructure

subtitle ATransmission

SEC. 401. Natural gas pipeline integrity reassessment intervals based on risk.

(a) In general.—Section 60109(c)(3)(B) of title 49, United States Code, is amended by inserting “, until the date on which the Secretary promulgates regulations basing the reassessment intervals on technical data, risk factors, and engineering analyses, consistent with the recommendations of the Comptroller General of the United States contained in the report numbered 06–945” before the period at the end.

(b) Effective date.—The amendment made by subsection (a) takes effect on the date of enactment of this Act.

subtitle BSmall refinery study and temporary exemption

SEC. 411. Small refinery study and temporary exemption.

Section 211(o)(9)(A) of the Clean Air Act (42 U.S.C. 7545(o)(9)(A)) is amended—

(1) in clause (i), by striking “‘calendar year 2011”’ and inserting “‘calendar year 2015”’; and

(2) in clause (ii), by striking subclause (I) and inserting the following

        “(I) STUDY.—Not later than December 31, 2012, the Secretary of Energy, in consultation with States and stakeholders (including small refineries), shall conduct a study—

        “(aa) to evaluate the economic viability of small refineries in the United States;

        “(bb) to evaluate the cost of compliance with the requirements of paragraph (2) for small refineries in the United States;

        “(cc) to determine whether compliance would impose an economic hardship on small refineries; and

        “(dd) to assess the impact on availability and prices of gas for consumers in areas with small refineries.”.

TITLE VReducing Government red tape and excessive litigation

SEC. 501. Alaska Offshore Continental Shelf Coordination Office.

(a) Establishment.—The Secretary of the Interior, in coordination with the Mayor of the North Slope Borough of Alaska, shall establish and maintain in the Department of the Interior a separate office, to be known as the “Alaska Offshore Continental Shelf Coordination Office”.

(b) Duties.—The Alaska Offshore Continental Shelf Coordination Office shall—

(1) coordinate leasing of the outer Continental Shelf off the coast of Alaska;

(2) advise persons awarded leases of the outer Continental Shelf off the coast of Alaska regarding local conditions and history of areas affected by development of the oil and gas resources of that area of the outer Continental Shelf;

(3) provide to the Committee on Natural Resources of the House of Representatives and the Committee on Energy and Natural Resources of the Senate annual reports describing the status of coordination between the Office and the communities affected by development of the outer Continental Shelf off the coast of Alaska;

(4) collect from residents of the North Slope region of Alaska information regarding the impacts of that development on marine wildlife, coastal habitats, marine and coastal subsistence resources, and the marine and coastal environment of the region; and

(5) ensure that the information collected under paragraph (4) is submitted to—

(A) developers of resources in the North Slope region; and

(B) appropriate Federal departments and agencies.

SEC. 502. Clean air regulation.

(a) Definition of air pollutant.—Section 302(g) of the Clean Air Act (42 U.S.C. 7602(g)) is amended—

(1) by striking “(g) The term” and inserting the following:

“(g) Air pollutant.—

“(1) IN GENERAL.—The term”;

(2) in the second sentence, by striking “Such term” and inserting the following:

“(2) INCLUSIONS.—The term ‘air pollutant”; and’

(3) by adding at the end the following:

“(3) EXCLUSIONS.—The term ‘air pollutant’ does not include—

“(A) carbon dioxide;

“(B) methane from agriculture or livestock; or

“(C) water vapor.”.

(b) State standards.—The Administrator of the Environmental Protection Agency shall not provide to any State a waiver under section 209(b) of the Clean Air Act (42 U.S.C. 7543(b)) for preemption under that Act of any regulation of the State to control greenhouse gas emissions from motor vehicles.

SEC. 503. Endangered species.

(a) Emergencies.—Section 10 of the Endangered Species Act of 1973 (16 U.S.C. 1539) is amended by adding at the end the following:

“(k) Emergencies.—On the declaration of an emergency by the Governor of a State, the Secretary, for the duration of the emergency, shall temporarily exempt from the prohibition against taking and the prohibition against the adverse modification of critical habitat under this Act any action that is reasonably necessary to avoid or ameliorate the impact of the emergency, including the operation of any water supply or flood control project by a Federal agency.”.

(b) Prohibition of consideration of impact of greenhouse gas.—

(1) IN GENERAL.—The Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) is amended by adding at the end the following:

“SEC. 19. Prohibition of consideration of impact of greenhouse gas.

“(a) Definition of greenhouse gas.—In this section, the term ‘greenhouse gas’ means any of—

“(1) carbon dioxide;

“(2) methane;

“(3) nitrous oxide;

“(4) sulfur hexafluoride;

“(5) a hydrofluorocarbon;

“(6) a perfluorocarbon; or

“(7) any other anthropogenic gas designated by the Secretary for purposes of this section.

“(b) Impact of greenhouse gas.—The impact of a greenhouse gas on any species of fish, wildlife, or plant shall not be considered for any purpose in the implementation of this Act.”.

(2) CONFORMING AMENDMENT.—The table of contents of the Endangered Species Act of 1973 (16 U.S.C. prec. 1531) is amended by adding at the end the following:


“Sec. 18. Annual cost analysis by the Fish and Wildlife Service.

“Sec. 19. Prohibition of consideration of impact of greenhouse gas.”.

SEC. 504. Minerals Management Service.

Title III of the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1751 et seq.) is amended by adding at the end the following:

“SEC. 310. Minerals Management Service.

“Any Director of the Minerals Management Service shall be appointed by the President, by and with the advice and consent of the Senate.”.

SEC. 505. Completion and review of environmental impact statements.

(a) Completion.—

(1) IN GENERAL.—Notwithstanding any other provision of law, each review carried out in accordance with the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) for any project carried out under this Act shall be completed not later than 270 days after the date on which the conduct of the project is initiated.

(2) FAILURE TO COMPLETE REVIEW.—If a review described in paragraph (1) has not been completed for an action subject to the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) by the date specified in paragraph (1)—

(A) the action shall be considered to have no significant impact to the human environment for purposes of the Act (42 U.S.C. 4321 et seq.); and

(B) that classification shall be considered to be a final agency action.

(b) Lead agency.—The lead agency for a review of an action under this section shall be the Federal agency to which funds are made available for the action.

(c) Review.—

(1) ADMINISTRATIVE APPEALS.—There shall be a single administrative appeal for each review carried out pursuant to this section.

(2) JUDICIAL REVIEW.—

(A) IN GENERAL.—On resolution of the administrative appeal, judicial review of the final agency decision after exhaustion of administrative remedies shall lie with the United States Court of Appeals for the District of Columbia Circuit.

(B) ADMINISTRATIVE RECORD.—An appeal to the court described in subparagraph (A) shall be based only on the administrative record.

(C) PENDENCY OF JUDICIAL REVIEW.—After an agency has made a final decision with respect to a review carried out under this section, the decision shall be effective during the course of any subsequent appeal to a court described in subparagraph (A).

(3) CIVIL ACTION.—Each civil action covered by this section shall be considered to arise under the laws of the United States.

TITLE VIConservation and efficiency

subtitle ANew source review

SEC. 601. Clarifying new source review requirements.

Notwithstanding any other provision of law, routine maintenance and repair at a facility, and the replacement of equipment at a facility in accordance with such requirements as the Administrator of the Environmental Protection Agency shall specify, shall not constitute a modification of an existing source requiring compliance with new source review requirements under parts C and D of title I of the Clean Air Act (42 U.S.C. 7470 et seq.).

subtitle BClean coal alternative transition

SEC. 611. Carbon dioxide storage capacity assessment.

(a) Definitions.—In this section:

(1) ADMINISTRATOR.—The term “Administrator” means the Administrator of the Environmental Protection Agency.

(2) ASSESSMENT.—The term “assessment” means the national assessment of capacity for carbon dioxide completed under subsection (f).

(3) 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).

(4) ENGINEERED HAZARD.—The term “engineered hazard” includes the location and completion history of any well that could affect potential storage.

(5) RISK.—The term “risk” includes any risk posed by geomechanical, geochemical, hy­dro­geo­log­i­cal, structural, and engineered hazards.

(6) SECRETARY.—The term “Secretary” means the Secretary of the Interior, acting through the Director of the United States Geological Survey.

(7) 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 on issues of data sharing, format, development of the methodology under subsection (b), 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) that is 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 become 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 geological 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 2010 through 2014.

TITLE VIITax provisions

SEC. 701. Amendment of 1986 Code.

Except as otherwise expressly provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.

subtitle ANuclear energy

SEC. 711. ASME Nuclear Certification credit.

(a) In general.—Subpart D of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section:

“SEC. 45R. ASME Nuclear Certification credit.

“(a) In general.—For purposes of section 38, the ASME Nuclear Certification credit determined under this section for any taxable year is an amount equal to 15 percent of the qualified nuclear expenditures paid or incurred by the taxpayer.

“(b) Qualified nuclear expenditures.—For purposes of this section, the term ‘qualified nuclear expenditures’ means any expenditure related to—

“(1) obtaining a certification under the American Society of Mechanical Engineers Nuclear Component Certification program, or

“(2) increasing the taxpayer’s capacity to construct, fabricate, assemble, or install components—

“(A) for any facility which uses nuclear energy to produce electricity, and

“(B) with respect to the construction, fabrication, assembly, or installation of which the taxpayer is certified under such program.

“(c) Timing of credit.—The credit allowed under subsection (a) for any expenditures shall be allowed—

“(1) in the case of a qualified nuclear expenditure described in subsection (b)(1), for the taxable year of such certification, and

“(2) in the case of any other qualified nuclear expenditure, for the taxable year in which such expenditure is paid or incurred.

“(d) Special rules.—

“(1) BASIS ADJUSTMENT.—For purposes of this subtitle, if a credit is allowed under this section for an expenditure, the increase in basis which would result (but for this subsection) for such expenditure shall be reduced by the amount of the credit allowed under this section.

“(2) DENIAL OF DOUBLE BENEFIT.—No deduction shall be allowed under this chapter for any amount taken into account in determining the credit under this section.

“(e) Termination.—This section shall not apply to any expenditures paid or incurred in taxable years beginning after December 31, 2019.”.

(b) Credit To be part of business credit.—Subsection (b) of section 38 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 ASME Nuclear Certification credit determined under section 45R(a).”.

(c) Conforming amendment.—Subsection (a) of section 1016 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 45R(d)(1).”.

(d) Clerical amendment.—The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item:


“Sec. 45R. ASME Nuclear Certification credit.”.

(e) Effective date.—The amendments made by this section shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2009.

SEC. 712. Expansion of energy investment tax credit to include nuclear and clean-coal equipment.

(a) In general.—Clause (i) of section 48C(c)(1)(A) is amended—

(1) by striking “or” at the end of subclause (VI),

(2) by striking “and” at the end of subclause (VII), and

(3) by inserting after subclause (VII) the following new subclauses:

“(VIII) property designed to be used to produce energy from an advanced nuclear power facility (as defined in section 45J(d)), or

“(IX) property designed to be used to produce energy from clean-coal equipment, and”.

(b) Denial of double benefit.—Subsection (e) of section 48C is amended by inserting “45J, 45R,” before “48”.

(c) Effective date.—The amendments made by this section shall apply to property placed in service after December 31, 2009.

SEC. 713. Credit for qualifying nuclear power manufacturing.

(a) In general.—Subpart E of part IV of subchapter A of chapter 1 is amended by inserting after section 48C the following new section:

“SEC. 48D. 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.”.

(b) Conforming amendments.—

(1) ADDITIONAL INVESTMENT CREDIT.—Section 46 is amended—

(A) by striking the period at the end of paragraph (5) and inserting “, and”, and

(B) by adding at the end the following new paragraph:

“(6) the qualifying nuclear power manufacturing credit.”.

(2) APPLICATION OF SECTION 49.—Subparagraph (C) of section 49(a)(1) is amended—

(A) by striking “and” at the end of clause (iv),

(B) by striking the period at the end of clause (v) and inserting “, and”, and

(C) by adding at the end the following new clause:

“(vi) the basis of any property which is part of a qualifying nuclear power equipment manufacturing project under section 48D.”.

(3) TABLE OF SECTIONS.—The table of sections for subpart E of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item:


“Sec. 48D. Qualifying nuclear power manufacturing credit.”.

(c) Effective date.—The amendments made by this section shall apply to property—

(1) the construction, reconstruction, or erection of which began after the date of the enactment of this Act, or

(2) which was acquired by the taxpayer on or after the date of the enactment of this Act and not pursuant to a binding contract which was in effect on the day prior to such date.

subtitle BSynthetic and alternative energy

SEC. 721. Coal-to-liquid facilities.

(a) In general.—Section 168 is amended by adding at the end the following:

“(o) 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 such date, 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 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. 722. 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 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, 2009.

(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) 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, 2009.

SEC. 723. Extension of 50 cent per gallon alternative fuels excise tax credit.

Paragraph (5) of section 6426(d) is amended by striking “2009” and inserting “2019” and by striking “2014” and inserting “2024”.

SEC. 724. Tax credit parity for open-loop biomass facilities.

(a) In general.—Subparagraph (A) of section 45(b)(4) is amended by striking “paragraph (3),” and inserting “paragraph”.

(b) Effective date.—The amendment made by this section shall apply to electricity produced and sold after the date of the enactment of this Act.

subtitle CAlternative fuel vehicles

SEC. 731. Extension of credit for alternative fuel vehicles.

Paragraph (4) of section 30B(k) is amended by striking “December 31, 2010” and inserting “December 31, 2020”.

SEC. 732. Extension of alternative fuel vehicle refueling property credit.

Paragraph (1) of section 30C(g) is amended—

(1) by striking “hydrogen,” and inserting “hydrogen or alternative fuels (as defined in section 30B(e)(4)(B)),”, and

(2) by striking “December 31, 2014” and inserting “December 31, 2020”.

SEC. 733. Extension of credit for new qualified plug-in electric drive motor vehicles.

(a) In general.—Section 30D is amended by adding at the end the following new subsection:

“(g) Termination.—This section shall not apply to property placed in service after December 31, 2020.”.

(b) Repeal of limitation on number of new qualified plug-In electric drive motor vehicles eligible for credit.—Section 30D, as amended by subsection (a), is amended by striking subsection (e) and redesignating subsections (f) and (g) as subsections (e) and (f), respectively.

(c) Conforming amendments.—

(1) Section 1016(a)(37) is amended by striking “section 30D(e)(4)” and inserting “section 30D(e)(1)”.

(2) Section 6501(m) is amended by striking “section 30D(e)(4)” and inserting “section 30D(e)(6)”.

(d) Effective date.—The amendments made by this section shall apply to vehicles acquired after December 31, 2009.

subtitle DEnergy infrastructure

SEC. 741. Tax-exempt financing of energy transportation infrastructure not subject to private business use tests.

(a) In general.—Section 141(b)(6) is amended by adding at the end the following new subparagraph:

“(C) EXCEPTION FOR CERTAIN ENERGY TRANSPORTATION INFRASTRUCTURE.—

“(i) IN GENERAL.—For purposes of the 1st sentence of subparagraph (A), the operation or use of any property described in clause (ii) by any person which is not a governmental unit shall not be considered a private business use.

“(ii) PROPERTY DESCRIBED.—For purposes of clause (i), the following property is described in this clause:

“(I) Any tangible property used to transmit electricity at 230 or more kilovolts if such property is placed in service as part of a State or multi-State effort to improve interstate electricity transmission and is physically located in not less than 2 States.

“(II) Any tangible property used to transmit electricity generated from renewable resources.

“(III) Any tangible property used as a transmission pipeline for crude oil or diesel fuel produced from coal or other synthetic petroleum products produced from coal if such property is placed in service as part of a State or multi-State effort to improve the transportation of crude oil or diesel fuel produced from coal or other synthetic petroleum products produced from coal.

“(IV) Any tangible property used as a carbon dioxide transmission pipeline if such property is placed in service as part of a State or multi-State effort to improve interstate or intrastate efforts to develop transportation infrastructure for purposes of permanently sequestering carbon dioxide.”.

(b) Exception to private loan financing test.—Section 141(c)(2) is amended—

(1) by striking “or” at the end of subparagraph (B),

(2) by striking the period at the end of subparagraph (C) and inserting “, or”, and

(3) by adding at the end the following new subparagraph:

“(D) enables the borrower to finance any property described in subsection (b)(6)(C)(ii).”.

(c) Reduction of State volume cap by amount of energy transportation infrastructure financing.—Section 146 is amended by adding at the end the following new subsection:

“(o) Reduction for energy transportation infrastructure financing.—The volume cap of any issuing authority for any calendar year shall be reduced by the amount of bonds issued as part of an issue by such authority to provide for property described in section 141(b)(6)(C)(ii).”.

(d) Effective date.—The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act and before December 31, 2016.

SEC. 742. Limitation on discriminatory taxation of certain pipeline property.

(a) Definitions.—For purposes of this section:

(1) ASSESSMENT.—The term “assessment” means valuation for a property tax levied by a taxing authority.

(2) ASSESSMENT JURISDICTION.—The term “assessment jurisdiction” means a geographical area used in determining the assessed value of property for ad valorem taxation.

(3) COMMERCIAL AND INDUSTRIAL PROPERTY.—The term “commercial and industrial property” means property (excluding pipeline property, public utility property, and land used primarily for agricultural purposes or timber growth) devoted to commercial or industrial use and subject to a property tax levy.

(4) PIPELINE PROPERTY.—The term “pipeline property” means all property, real, personal, and intangible, owned or used by a natural gas pipeline providing transportation or storage of natural gas, subject to the jurisdiction of the Federal Energy Regulatory Commission.

(5) PUBLIC UTILITY PROPERTY.—The term “public utility property” means property (excluding pipeline property) that is devoted to public service and is owned or used by any entity that performs a public service and is regulated by any governmental agency.

(b) Discriminatory Acts.—The acts specified in this subsection unreasonably burden and discriminate against interstate commerce. A State, subdivision of a State, authority acting for a State or subdivision of a State, or any other taxing authority (including a taxing jurisdiction and a taxing district) may not do any of the following such acts:

(1) Assess pipeline property at a value that has a higher ratio to the true market value of the pipeline property than the ratio that the assessed value of other commercial and industrial property in the same assessment jurisdiction has to the true market value of the other commercial and industrial property.

(2) Levy or collect a tax on an assessment that may not be made under paragraph (1).

(3) Levy or collect an ad valorem property tax on pipeline property at a tax rate that exceeds the tax rate applicable to commercial and industrial property in the same assessment jurisdiction.

(4) Impose any other tax that discriminates against a pipeline providing transportation subject to the jurisdiction of the Federal Energy Regulatory Commission.

(c) Jurisdiction of courts; relief.—

(1) GRANT OF JURISDICTION.—Notwithstanding section 1341 of title 28, United States Code, and notions of comity, and without regard to the amount in controversy or citizenship of the parties, the district courts of the United States shall have jurisdiction, concurrent with other jurisdiction of the courts of the United States, of States, and of all other taxing authorities and taxing jurisdictions, to prevent a violation of subsection (b).

(2) RELIEF.—Except as otherwise provided in this paragraph, relief may be granted under this Act only if the ratio of assessed value to true market value of pipeline property exceeds by at least 5 percent the ratio of assessed value to true market value of other commercial and industrial property in the same assessment jurisdiction. If the ratio of the assessed value of other commercial and industrial property in the assessment jurisdiction to the true market value of all other commercial and industrial property cannot be determined to the satisfaction of the court through the random-sampling method known as a sales assessment ratio study (to be carried out under statistical principles applicable to such a study), each of the following shall be a violation of subsection (b) for which relief under this section may be granted:

(A) An assessment of the pipeline property at a value that has a higher ratio of assessed value to the true market value of the pipeline property than the ratio of the assessed value of all other property (excluding public utility property) subject to a property tax levy in the assessment jurisdiction has to the true market value of all other property (excluding public utility property).

(B) The collection of an ad valorem property tax on the pipeline property at a tax rate that exceeds the tax rate applicable to all other taxable property (excluding public utility property) in the taxing jurisdiction.

subtitle EBuilding efficiency incentives

SEC. 751. Home energy audits.

(a) In general.—Subpart A of part IV of subchapter A of chapter 1 is amended by inserting after section 25D the following new section:

“SEC. 25E. Home energy audits.

“(a) In general.—In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 50 percent of the amount of qualified home energy audit expenses paid or incurred by the taxpayer during the taxable year.

“(b) Limitations.—

“(1) DOLLAR LIMITATION.—The amount of the credit allowed under subsection (a) for any taxable year shall not exceed $400.

“(2) LIMITATION BASED ON AMOUNT OF TAX.—In the case of any taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) shall not exceed the excess of—

“(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over

“(B) the sum of the credits allowable under this subpart (other than this section) and section 27 for the taxable year.

“(c) Qualified home energy audit expenses.—

“(1) IN GENERAL.—For purposes of this section, the term ‘qualified home energy audit expenses’ means expenses paid or incurred for an energy audit, performed by a qualified energy auditor through a comprehensive site visit, of a principal residence of the taxpayer which is located in the United States. Such audit may include a blower door test, an infra-red camera test, and a furnace combustion efficiency test.

“(2) INCLUDED TESTS.—The audit described in paragraph (1) shall include such tests as the Secretary may by regulation require, including substitute tests for the tests specified in such paragraph.

“(3) PRINCIPAL RESIDENCE.—For purposes of this subsection, the term ‘principal residence’ has the same meaning as when used in section 121.

“(4) QUALIFIED ENERGY AUDITOR.—

“(A) IN GENERAL.—The Secretary shall specify by regulations the qualifications required for an auditor to be considered a qualified energy auditor for purposes of this section. Such regulations shall include rules prohibiting conflicts of interest, including the disallowance of commissions or other payments based on goods or non-audit services purchased by the taxpayer from the auditor.

“(B) CERTIFICATION.—The Secretary shall prescribe the procedures and methods for certifying that an auditor is a qualified energy auditor. To the maximum extent practicable, such procedures and methods shall provide for a variety of sources from which an auditor may obtain certifications.”.

(b) Conforming amendments.—

(1) Section 23(b)(4)(B) is amended by striking “section 25D” and inserting “sections 25D and 25E”.

(2) Section 23(c)(1) is amended by inserting “, 25E,” after “25D”.

(3) Section 24(b)(3)(B) is amended by inserting “25E,” after “25D,”.

(4) Section 25(e)(1)(C) is amended by inserting “25E,” after “25D,” each place it appears in clauses (i) and (ii).

(5) Section 25B(g)(2) is amended by inserting “25E,” after “25D,”.

(6) Section 25D(c) is amended by inserting “and section 25E” after “this section” each place it appears in paragraphs (1)(B) and (2)(A).

(7) Section 904(i) is amended by inserting “25E,” after “25B,”.

(c) Clerical amendment.—The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 25D the following new item:


“Sec. 25E. Home energy audits.”.

(d) Effective dates.—

(1) IN GENERAL.—The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2009.

(2) APPLICATION OF EGGTRA SUNSET.—The amendments made by paragraphs (1) and (3) of subsection (b) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provisions of such Act to which such amendments relate.

SEC. 752. Extension and clarification of new energy efficient home credit.

(a) Extension.—Subsection (g) of section 45L 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. 753. Extension of credit for energy efficient appliances.

(a) In general.—Subsection (b) of section 45M is amended—

(1) in paragraph (1)—

(A) by striking “2008 or 2009” in subparagraph (A) and inserting “2008, 2009, 2010, 2011, or 2012”, and

(B) by striking “2008, 2009, or 2010” in subparagraph (B) and inserting “2008, 2009, 2010, 2011, 2012, or 2013”,

(2) in paragraph (2)—

(A) by striking “2008 or 2009” in subparagraph (B) and inserting “2008, 2009, 2010, 2011, or 2012”,

(B) by striking “2008, 2009, or 2010” in subparagraph (C) and inserting “2008, 2009, 2010, 2011, 2012, or 2013”, and

(C) by striking “2008, 2009, or 2010” in subparagraph (D) and inserting “2008, 2009, 2010, 2011, 2012, or 2013”, and

(3) in paragraph (3)—

(A) by striking “2008 or 2009” in subparagraph (B) and inserting “2008, 2009, 2010, 2011, or 2012”,

(B) by striking “2008, 2009, or 2010” in subparagraph (C) and inserting “2008, 2009, 2010, 2011, 2012, or 2013”, and

(C) by striking “2008, 2009, or 2010” in subparagraph (D) and inserting “2008, 2009, 2010, 2011, 2012, or 2013”.

(b) Increase in aggregate credit amount allowed.—Paragraph (1) of section 45M(e) is amended by striking “$75,000,000” and inserting “$100,000,000”.

(c) Effective date.—The amendments made by this section shall apply to appliances produced after December 31, 2009.

SEC. 754. Extension and modification of deduction for energy efficient commercial buildings.

(a) Extension.—Subsection (h) of section 179D 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) is amended by striking “$1.80” and inserting “$2.25”.

(2) PARTIAL ALLOWANCE.—Paragraph (1) of section 179D(d) 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) 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) 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) 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) 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 is amended—

(A) by striking “Interim” in the heading and inserting “Alternative”, and

(B) by 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) 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) is amended by adding at the end the following new paragraph:

“(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) 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.