Report text available as:

  • TXT
  • PDF   (PDF provides a complete and accurate display of this text.) Tip ?

107th Congress                                            Rept. 107-160
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 1

======================================================================



 
                          ENERGY SECURITY ACT

                                _______
                                

                 July 25, 2001.--Ordered to be printed

                                _______
                                

  Mr. Hansen, from the Committee on Resources, submitted the following

                              R E P O R T

                             together with

                    DISSENTING AND ADDITIONAL VIEWS

                        [To accompany H.R. 2436]

  The Committee on Resources, to whom was referred the bill 
(H.R. 2436) to provide secure energy supplies for the people of 
the United States, and for other purposes, having considered 
the same, report favorably thereon with an amendment and 
recommend that the bill as amended do pass.
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Energy Security Act''.

SEC. 2. TABLE OF CONTENTS.

  The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

      TITLE I--GENERAL PROTECTIONS FOR ENERGY SUPPLY AND SECURITY

Sec. 101. Study of existing rights-of-way on Federal lands to determine 
capability to support new pipelines or other transmission facilities.
Sec. 102. Inventory of energy production potential of all Federal 
public lands.
Sec. 103. Review of regulations to eliminate barriers to emerging 
energy technology.
Sec. 104. Interagency agreement on environmental review of interstate 
natural gas pipeline projects.
Sec. 105. Enhancing energy efficiency in management of Federal lands.

                   TITLE II--OIL AND GAS DEVELOPMENT

                    Subtitle A--Offshore Oil and Gas

Sec. 201. Short title.
Sec. 202. Lease sales in Western and Central Planning Area of the Gulf 
of Mexico.
Sec. 203. Savings clause.
Sec. 204. Analysis of Gulf of Mexico field size distribution, 
international competitiveness, and incentives for development.

       Subtitle B--Improvements to Federal Oil and Gas Management

Sec. 221. Short title.
Sec. 222. Study of impediments to efficient lease operations.
Sec. 223. Elimination of unwarranted denials and stays.
Sec. 224. Limitations on cost recovery for applications.
Sec. 225. Consultation with Secretary of Agriculture.

                       Subtitle C--Miscellaneous

Sec. 231. Offshore subsalt development.
Sec. 232. Program on oil and gas royalties in kind.
Sec. 233. Cooperative oil and gas research and information centers.
Sec. 234. Marginal well production incentives.
Sec. 235. Reimbursement for costs of NEPA analyses, documentation, and 
studies.

                TITLE III--GEOTHERMAL ENERGY DEVELOPMENT

Sec. 301. Royalty reduction and relief.
Sec. 302. Exemption from royalties for direct use of low temperature 
geothermal energy resources.
Sec. 303. Amendments relating to leasing on Forest Service lands.
Sec. 304. Deadline for determination on pending noncompetitive lease 
applications.
Sec. 305. Opening of public lands under military jurisdiction.
Sec. 306. Application of amendments.
Sec. 307. Review and report to Congress.
Sec. 308. Reimbursement for costs of NEPA analyses, documentation, and 
studies.

                          TITLE IV--HYDROPOWER

Sec. 401. Study and report on increasing electric power production 
capability of existing facilities.
Sec. 402. Installation of powerformer at Folsom power plant, 
California.
Sec. 403. Conservation through pump modernization.
Sec. 404. Study and implementation of increased operational 
efficiencies in hydroelectric power projects.
Sec. 405. Shift of project loads to off-peak periods.

             TITLE V--ARCTIC COASTAL PLAIN DOMESTIC ENERGY

Sec. 501. Short title.
Sec. 502. Definitions.
Sec. 503. Leasing program for lands within the Coastal Plain.
Sec. 504. Lease sales.
Sec. 505. Grant of leases by the Secretary.
Sec. 506. Lease terms and conditions.
Sec. 507. Coastal Plain environmental protection.
Sec. 508. Expedited judicial review.
Sec. 509. Rights-of-way across the Coastal Plain.
Sec. 510. Conveyance.
Sec. 511. Local government impact aid and community service assistance.

                    TITLE VI--HISTORIC PRESERVATION

Sec. 601. Prohibition.
Sec. 602. Removal from eligibility.

  TITLE VII--CONSERVATION OF ENERGY BY THE DEPARTMENT OF THE INTERIOR

Sec. 701. Energy conservation by the Department of the Interior.

      TITLE I--GENERAL PROTECTIONS FOR ENERGY SUPPLY AND SECURITY

SEC. 101. STUDY OF EXISTING RIGHTS-OF-WAY ON FEDERAL LANDS TO DETERMINE 
                    CAPABILITY TO SUPPORT NEW PIPELINES OR OTHER 
                    TRANSMISSION FACILITIES.

  (a) In General.--Within one year after the date of enactment of this 
Act, the head of each Federal agency that has authorized a right-of-way 
across Federal lands for transportation of energy supplies or 
transmission of electricity shall review each such right-of-way and 
submit a report to the Secretary of Energy and the Chairman of the 
Federal Energy Regulatory Commission regarding--
          (1) whether the right-of-way can be used to support new or 
        additional capacity; and
          (2) what modifications or other changes, if any, would be 
        necessary to accommodate such additional capacity.
  (b) Consultations and Considerations.--In performing the review, the 
head of each agency shall--
          (1) consult with agencies of State, tribal, or local units of 
        government as appropriate; and
          (2) consider whether safety or other concerns related to 
        current uses might preclude the availability of a right-of-way 
        for additional or new transportation or transmission 
        facilities, and set forth those considerations in the report.

SEC. 102. INVENTORY OF ENERGY PRODUCTION POTENTIAL OF ALL FEDERAL 
                    PUBLIC LANDS.

  (a) Inventory Requirement.--The Secretary of the Interior, in 
consultation with the Secretary of Agriculture and the Secretary of 
Energy, shall conduct an inventory of the energy production potential 
of all Federal public lands other than national park lands and lands in 
any wilderness area, with respect to wind, solar, coal, and geothermal 
power production.
  (b) Limitations.--
          (1) In general.--The Secretary shall not include in the 
        inventory under this section the matters to be identified in 
        the inventory under section 604 of the Energy Act of 2000 (42 
        U.S.C. 6217).
          (2) Wind and solar power.--The inventory under this section--
                  (A) with respect to wind power production shall be 
                limited to sites having a mean average wind speed--
                          (i) exceeding 12.5 miles per hour at a height 
                        of 33 feet; and
                          (ii) exceeding 15.7 miles per hour at a 
                        height of 164 feet; and
                  (B) with respect to solar power production shall be 
                limited to areas rated as receiving 450 watts per 
                square meter or greater.
  (c) Examination of Restrictions and Impediments.--The inventory shall 
identify the extent and nature of any restrictions or impediments to 
the development of such energy production potential.
  (d) Geothermal Power.--The inventory shall include an update of the 
1978 Assessment of Geothermal Resources by the United States Geological 
Survey.
  (e) Completion and Updating.--The Secretary--
          (1) shall complete the inventory by not later than 2 years 
        after the date of the enactment of this Act; and
          (2) shall update the inventory regularly thereafter.
  (f) Reports.--The Secretary shall submit to the Committee on 
Resources of the House of Representatives and to the Committee on 
Energy and Natural Resources of the Senate and make publicly 
available--
          (1) a report containing the inventory under this section, by 
        not later than 2 years after the effective date of this 
        section; and
          (2) each update of such inventory.

SEC. 103. REVIEW OF REGULATIONS TO ELIMINATE BARRIERS TO EMERGING 
                    ENERGY TECHNOLOGY.

  (a) In General.--Each Federal agency shall carry out a review of its 
regulations and standards to determine those that act as a barrier to 
market entry for emerging energy-efficient technologies, including fuel 
cells, combined heat and power, and distributed generation (including 
small-scale renewable energy).
  (b) Report to Congress.--No later than 18 months after date of 
enactment of this Act, each agency shall provide a report to the 
Congress and the President detailing all regulatory barriers to 
emerging energy-efficient technologies, along with actions the agency 
intends to take, or has taken, to remove such barriers.
  (c) Periodic Review.--Each agency shall subsequently review its 
regulations and standards in this manner no less frequently than every 
5 years, and report their findings to the Congress and the President. 
Such reviews shall include a detailed analysis of all agency actions 
taken to remove existing barriers to emerging energy technologies.

SEC. 104. INTERAGENCY AGREEMENT ON ENVIRONMENTAL REVIEW OF INTERSTATE 
                    NATURAL GAS PIPELINE PROJECTS.

  (a) In General.--The Secretary of Energy, in coordination with the 
Federal Energy Regulatory Commission, shall establish an administrative 
interagency task force to develop an interagency agreement to expedite 
and facilitate the environmental review and permitting of interstate 
natural gas pipeline projects.
  (b) Task Force Members.--The task force shall include a 
representative of each of the Bureau of Land Management, the United 
States Fish and Wildlife Service, the Army Corps of Engineers, the 
Forest Service, the Environmental Protection Agency, the Advisory 
Council on Historic Preservation, and such other agencies as the 
Secretary of Energy and the Federal Energy Regulatory Commission 
consider appropriate.
  (c) Terms of Agreement.--The interagency agreement shall require that 
agencies complete their review of interstate pipeline projects within a 
specific period of time after referral of the matter by the Federal 
Energy Regulatory Commission.
  (d) Submittal of Agreement.--The Secretary of Energy shall submit a 
final interagency agreement under this section to the Congress by not 
later than 6 months after the effective date of this section.

SEC. 105. ENHANCING ENERGY EFFICIENCY IN MANAGEMENT OF FEDERAL LANDS.

  (a) Sense of the Congress.--It is the sense of Congress that Federal 
land managing agencies should enhance the use of energy efficient 
technologies in the management of natural resources.
  (b) Energy Efficient Buildings.--To the extent economically 
practicable, the Secretary of the Interior and the Secretary of 
Agriculture shall seek to incorporate energy efficient technologies in 
public and administrative buildings associated with management of the 
National Park System, National Wildlife Refuge System, National Forest 
System, and other public lands and resources managed by such 
Secretaries.
  (c) Energy Efficient Vehicles.--To the extent economically 
practicable, the Secretary of the Interior and the Secretary of 
Agriculture shall seek to use energy efficient motor vehicles, 
including vehicles equipped with biodiesel or hybrid engine 
technologies, in the management of the National Park System, National 
Wildlife Refuge System, and other public lands and managed by the 
Secretaries.

                   TITLE II--OIL AND GAS DEVELOPMENT

                    Subtitle A--Offshore Oil and Gas

SEC. 201. SHORT TITLE.

  This subtitle may be referred to as the ``Royalty Relief Extension 
Act of 2001''.

SEC. 202. LEASE SALES IN WESTERN AND CENTRAL PLANNING AREA OF THE GULF 
                    OF MEXICO.

  (a) In General.--For all tracts located in water depths of greater 
than 200 meters in the Western and Central Planning Area of the Gulf of 
Mexico, including that portion of the Eastern Planning Area of the Gulf 
of Mexico encompassing whole lease blocks lying west of 87 degrees, 30 
minutes West longitude, any oil or gas lease sale under the Outer 
Continental Shelf Lands Act occurring within 2 years after the date of 
enactment of this Act shall use the bidding system authorized in 
section 8(a)(1)(H) of the Outer Continental Shelf Lands Act (30 U.S.C. 
1337(a)(1)(H)), except that the suspension of royalties shall be set at 
a volume of not less than the following:
          (1) 17.5 million barrels of oil equivalent for fields in 
        water depths of 200 to 400 meters.
          (2) 52.5 million barrels of oil equivalent for fields in 400 
        to 800 meters of water.
          (3) 9 million barrels of oil equivalent for each lease in 
        water depths of 800 to 1,600 meters.
          (4) 12 million barrels of oil equivalent for each lease in 
        water depths greater than 1,600 meters.
  (b) Relationship to Existing Authority.--Except as expressly provided 
in this section, nothing in this section is intended to limit the 
authority of the Secretary of the Interior under the Outer Continental 
Shelf Lands Act (43 U.S.C. 1301 et seq.) to provide royalty suspension.

SEC. 203. SAVINGS CLAUSE.

  Nothing in this subtitle shall be construed to affect any offshore 
pre-leasing, leasing, or development moratorium, including any 
moratorium applicable to the Eastern Planning Area of the Gulf of 
Mexico located off the Gulf Coast of Florida.

SEC. 204. ANALYSIS OF GULF OF MEXICO FIELD SIZE DISTRIBUTION, 
                    INTERNATIONAL COMPETITIVENESS, AND INCENTIVES FOR 
                    DEVELOPMENT.

  (a) In General.--The Secretary of the Interior and the Secretary of 
Energy shall enter into appropriate arrangements with the National 
Academy of Sciences to commission the Academy to perform the following:
          (1) Conduct an analysis and review of existing Gulf of Mexico 
        oil and natural gas resource assessments, including--
                  (A) analysis and review of assessments recently 
                performed by the Minerals Management Service, the 1999 
                National Petroleum Council Gas Study, the Department of 
                Energy's Offshore Marginal Property Study, and the 
                Advanced Resources International, Inc. Deepwater Gulf 
                of Mexico model; and
                  (B) evaluation and comparison of the accuracy of 
                assumptions of the existing assessments with respect to 
                resource field size distribution, hydrocarbon 
                potential, and scenarios for leasing, exploration, and 
                development.
          (2) Evaluate the lease terms and conditions offered by the 
        Minerals Management Service for Lease Sale 178, and compare the 
        financial incentives offered by such terms and conditions to 
        financial incentives offered by the terms and conditions that 
        apply under leases for other offshore areas that are competing 
        for the same limited offshore oil and gas exploration and 
        development capital, including offshore areas of West Africa 
        and Brazil.
          (3) Recommend what level of incentives for all water depths 
        are appropriate in order to ensure that the United States 
        optimizes the domestic supply of oil and natural gas from the 
        offshore areas of the Gulf of Mexico that are not subject to 
        current leasing moratoria. Recommendations under this paragraph 
        should be made in the context of the importance of the oil and 
        natural gas resources of the Gulf of Mexico to the future 
        energy and economic needs of the United States.
  (b) Report.--Not later than 180 days after the date of enactment of 
this Act, the Secretary of the Interior shall submit a report to the 
Committee on Resources in the House of Representatives and the 
Committee on Energy and Natural Resources in the Senate, summarizing 
the findings of the National Academy of Sciences pursuant to subsection 
(a) and providing recommendations of the Secretary for new policies or 
other actions that could help to further increase oil and natural gas 
production from the Gulf of Mexico.

       Subtitle B--Improvements to Federal Oil and Gas Management

SEC. 221. SHORT TITLE.

  This subtitle may be cited as the ``Federal Oil and Gas Lease 
Management Improvement Demonstration Program Act of 2001''.

SEC. 222. STUDY OF IMPEDIMENTS TO EFFICIENT LEASE OPERATIONS.

  (a) In General.--The Secretary of the Interior and the Secretary of 
Agriculture shall jointly undertake a study of the impediments to 
efficient oil and gas leasing and operations on Federal onshore lands 
in order to identify means by which unnecessary impediments to the 
expeditious exploration and production of oil and natural gas on such 
lands can be removed.
  (b) Contents.--The study under subsection (a) shall include the 
following:
          (1) A review of the process by which Federal land managers 
        accept or reject an offer to lease, including the timeframes in 
        which such offers are acted upon, the reasons for any delays in 
        acting upon such offers, and any recommendations for expediting 
        the response to such offers.
          (2) A review of the approval process for applications for 
        permits to drill, including the timeframes in which such 
        applications are approved, the impact of compliance with other 
        Federal laws on such timeframes, any other reasons for delays 
        in making such approvals, and any recommendations for 
        expediting such approvals.
          (3) A review of the approval process for surface use plans of 
        operation, including the timeframes in which such applications 
        are approved, the impact of compliance with other Federal laws 
        on such timeframes, any other reasons for delays in making such 
        approvals, and any recommendations for expediting such 
        approvals.
          (4) A review of the process for administrative appeal of 
        decisions or orders of officers or employees of the Bureau of 
        Land Management with respect to a Federal oil or gas lease, 
        including the timeframes in which such appeals are heard and 
        decided, any reasons for delays in hearing or deciding such 
        appeals, and any recommendations for expediting the appeals 
        process.
  (c) Report.--The Secretaries shall report the findings and 
recommendations resulting from the study required by this section to 
the Committee on Resources of the House of Representatives and to the 
Committee on Energy and Natural Resources of the Senate no later than 6 
months after the date of the enactment of this Act.

SEC. 223. ELIMINATION OF UNWARRANTED DENIALS AND STAYS.

  (a) In General.--The Secretary shall ensure that unwarranted denials 
and stays of lease issuance and unwarranted restrictions on lease 
operations are eliminated from the administration of oil and natural 
gas leasing on Federal land.
  (b) Land Designated for Multiple Use.--Federal land available for oil 
and natural gas leasing under any Bureau of Land Management resource 
management plan or Forest Service leasing analysis shall be available 
without lease stipulations more stringent than restrictions on surface 
use and operations imposed under the laws (including regulations) of 
the oil and natural gas conservation authority of the State in which 
the lands are located, unless the Secretary includes in the decision 
approving the management plan or leasing analysis or in the Secretary's 
acceptance of an offer to lease a written explanation why more 
stringent stipulations are warranted.
  (c) Rejection of Offer To Lease.--
          (1) In general.--If the Secretary rejects an offer to lease 
        Federal lands for oil or natural gas development on the ground 
        that the land is unavailable for oil and natural gas leasing, 
        the Secretary shall provide a written, detailed explanation of 
        the reasons the land is unavailable for leasing.
          (2) Previous resource management decision.--If the 
        determination of unavailability is based on a previous resource 
        management decision, the explanation shall include a careful 
        assessment of whether the reasons underlying the previous 
        decision are still persuasive.
          (3) Segregation of available land from unavailable land.--The 
        Secretary may not reject an offer to lease Federal land for oil 
        and natural gas development that is available for such leasing 
        on the ground that the offer includes land unavailable for 
        leasing. The Secretary shall segregate available land from 
        unavailable land, on the offeror's request following notice by 
        the Secretary, before acting on the offer to lease.
  (d) Disapproval or Required Modification of Surface Use Plans of 
Operations and Application for Permit To Drill.--The Secretary shall 
provide a written, detailed explanation of the reasons for disapproving 
or requiring modifications of any surface use plan of operations or 
application for permit to drill with respect to oil or natural gas 
development on Federal lands.

SEC. 224. LIMITATION ON COST RECOVERY FOR APPLICATIONS.

  Notwithstanding sections 304 and 504 of the Federal Land Policy and 
Management Act of 1976 (43 U.S.C. 1734, 1764) and section 9701 of title 
31, United States Code, the Secretary shall not recover the Secretary's 
costs with respect to applications and other documents relating to oil 
and gas leases.

SEC. 225. CONSULTATION WITH SECRETARY OF AGRICULTURE.

  Section 17(h) of the Mineral Leasing Act (30 U.S.C. 226(h)) is 
amended to read as follows:
  ``(h)(1) In issuing any lease on National Forest System lands 
reserved from the public domain, the Secretary of the Interior shall 
consult with the Secretary of Agriculture in determining stipulations 
on surface use under the lease.
  ``(2)(A) A lease on lands referred to in paragraph (1) may not be 
issued if the Secretary of Agriculture determines, after consultation 
under paragraph (1), that the terms and conditions of the lease, 
including any prohibition on surface occupancy for lease operations, 
will not be sufficient to adequately protect such lands under the 
National Forest Management Act of 1976 (16 U.S.C. 1600 et seq.).
  ``(B) The authority of the Secretary of Agriculture under this 
paragraph may be delegated only to the Undersecretary of Agriculture 
for Natural Resources and Environment.''.

                       Subtitle C--Miscellaneous

SEC. 231. OFFSHORE SUBSALT DEVELOPMENT.

  Section 5 of the Outer Continental Shelf Lands Act of 1953 (43 U.S.C. 
1334) is amended by adding at the end the following:
  ``(k) Suspension of Operations for Subsalt Exploration.--
Notwithstanding any other provision of law or regulation, to prevent 
waste caused by the drilling of unnecessary wells and to facilitate the 
discovery of additional hydrocarbon reserves, the Secretary may grant a 
request for a suspension of operations under any lease to allow the 
reprocessing and reinterpretation of geophysical data to identify and 
define drilling objectives beneath allocthonus salt sheets.''.

SEC. 232. PROGRAM ON OIL AND GAS ROYALTIES IN KIND.

  (a) Applicability of Section.--Notwithstanding any other provision of 
law, the provisions of this section shall apply to all royalty in kind 
accepted by the Secretary of the Interior under any Federal oil or gas 
lease or permit under section 36 of the Mineral Leasing Act (30 U.S.C. 
192), section 27 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1353), or any other mineral leasing law, in the period beginning on the 
date of enactment of this Act through September 30, 2006.
  (b) Terms and Conditions.--All royalty accruing to the United States 
under any Federal oil or gas lease or permit under the Mineral Leasing 
Act (30 U.S.C. 181 et seq.) or the Outer Continental Shelf Lands Act 
(43 U.S.C. 1331 et seq.) shall, on the demand of the Secretary of the 
Interior, be paid in oil or gas. If the Secretary of the Interior makes 
such a demand, the following provisions apply to such payment:
          (1) Delivery by, or on behalf of, the lessee of the royalty 
        amount and quality due under the lease satisfies the lessee's 
        royalty obligation for the amount delivered, except that 
        transportation and processing reimbursements paid to, or 
        deductions claimed by, the lessee shall be subject to review 
        and audit.
          (2) Royalty production shall be placed in marketable 
        condition by the lessee at no cost to the United States.
          (3) The Secretary of the Interior may--
                  (A) sell or otherwise dispose of any royalty oil or 
                gas taken in kind for not less than the market price; 
                and
                  (B) transport or process any oil or gas royalty taken 
                in kind.
          (4) The Secretary of the Interior may, notwithstanding 
        section 3302 of title 31, United States Code, retain and use a 
        portion of the revenues from the sale of oil and gas royalties 
        taken in kind that otherwise would be deposited to 
        miscellaneous receipts, without regard to fiscal year 
        limitation, or may use royalty production, to pay the cost of--
                  (A) transporting the oil or gas,
                  (B) processing the gas, or
                  (C) disposing of the oil or gas.
          (5) The Secretary may not use revenues from the sale of oil 
        and gas royalties taken in kind to pay for personnel, travel, 
        or other administrative costs of the Federal Government.
  (c) Reimbursement of Cost.--If the lessee, pursuant to an agreement 
with the United States or as provided in the lease, processes the 
royalty gas or delivers the royalty oil or gas at a point not on or 
adjacent to the lease area, the Secretary of the Interior shall--
          (1) reimburse the lessee for the reasonable costs of 
        transportation (not including gathering) from the lease to the 
        point of delivery or for processing costs; or
          (2) at the discretion of the Secretary of the Interior, allow 
        the lessee to deduct such transportation or processing costs in 
        reporting and paying royalties in value for other Federal oil 
        and gas leases.
  (d) Benefit to the United States Required.--The Secretary may receive 
oil or gas royalties in kind only if the Secretary determines that 
receiving such royalties provides benefits to the United States greater 
than or equal to those that would be realized under a comparable 
royalty in value program.
  (e) Report to Congress.--For each of the fiscal years 2002 through 
2006 in which the United States takes oil or gas royalties in kind from 
production in any State or from the Outer Continental Shelf, excluding 
royalties taken in kind and sold to refineries under subsection (h), 
the Secretary of the Interior shall provide a report to the Congress 
describing--
          (1) the methodology or methodologies used by the Secretary to 
        determine compliance with subsection (d), including performance 
        standards for comparing amounts received by the United States 
        derived from such royalties in kind to amounts likely to have 
        been received had royalties been taken in value;
          (2) an explanation of the evaluation that led the Secretary 
        to take royalties in kind from a lease or group of leases, 
        including the expected revenue effect of taking royalties in 
        kind;
          (3) actual amounts received by the United States derived from 
        taking royalties in kind, and costs and savings incurred by the 
        United States associated with taking royalties in kind; and
          (4) an evaluation of other relevant public benefits or 
        detriments associated with taking royalties in kind.
  (f) Deduction of Expenses.--
          (1) In general.--Before making payments under section 35 of 
        the Mineral Leasing Act (30 U.S.C. 191) or section 8(g) of the 
        Outer Continental Shelf Lands Act (30 U.S.C. 1337(g)) of 
        revenues derived from the sale of royalty production taken in 
        kind from a lease, the Secretary of the Interior shall deduct 
        amounts paid or deducted under subsections (b)(4) and (c), and 
        shall deposit such amounts to miscellaneous receipts.
          (2) Accounting for deductions.--If the Secretary of the 
        Interior allows the lessee to deduct transportation or 
        processing costs under subsection (c), the Secretary may not 
        reduce any payments to recipients of revenues derived from any 
        other Federal oil and gas lease as a consequence of that 
        deduction.
  (g) Consultation With States.--The Secretary of the Interior--
          (1) shall consult with a State before conducting a royalty in 
        kind program under this title within the State, and may 
        delegate management of any portion of the Federal royalty in 
        kind program to such State except as otherwise prohibited by 
        Federal law; and
          (2) shall consult annually with any State from which Federal 
        oil or gas royalty is being taken in kind to ensure to the 
        maximum extent practicable that the royalty in kind program 
        provides revenues to the State greater than or equal to those 
        which would be realized under a comparable royalty in value 
        program.
  (h) Provisions for Small Refineries.--
          (1) Preference.--If the Secretary of the Interior determines 
        that sufficient supplies of crude oil are not available in the 
        open market to refineries not having their own source of supply 
        for crude oil, the Secretary may grant preference to such 
        refineries in the sale of any royalty oil accruing or reserved 
        to the United States under Federal oil and gas leases issued 
        under any mineral leasing law, for processing or use in such 
        refineries at private sale at not less than the market price.
          (2) Proration among refineries in production area.--In 
        disposing of oil under this subsection, the Secretary of the 
        Interior may, at the discretion of the Secretary, prorate such 
        oil among such refineries in the area in which the oil is 
        produced.
  (i) Disposition to Federal Agencies.--
          (1) Onshore royalty.--Any royalty oil or gas taken by the 
        Secretary in kind from onshore oil and gas leases may be sold 
        at not less than the market price to any department or agency 
        of the United States.
          (2) Offshore royalty.--Any royalty oil or gas taken in kind 
        from Federal oil and gas leases on the Outer Continental Shelf 
        may be disposed of only under section 27 of the Outer 
        Continental Shelf Lands Act (43 U.S.C. 1353).
  (j) Preference for Federal Low-Income Energy Assistance Programs.--In 
disposing of royalty oil or gas taken in kind under this section, the 
Secretary may grant a preference to any person, including any State or 
Federal agency, for the purpose of providing additional resources to 
any Federal low-income energy assistance program.

SEC. 233. COOPERATIVE OIL AND GAS RESEARCH AND INFORMATION CENTERS.

  (a) In General.--The Secretary of the Interior may establish and 
operate in accordance with this section regional centers administered 
by the United States Geological Survey. Each such center shall be known 
as a United States Geological Survey Cooperative Oil and Gas Research 
and Information Center.
  (b) Partnership.--Each Center shall be established and operated under 
a partnership with the government of the State in which the Center is 
located, through the agency of the State that is responsible for 
geological survey activities.
  (c) Functions.--The Secretary, through each such Center, shall--
          (1) conduct oil and natural gas exploration and production 
        research in the region in which the Center is located; and
          (2) archive and provide public access to data regarding oil 
        and natural gas reserves and production in the region, 
        including information developed through research under 
        paragraph (1).
  (d) Research.--
          (1) Cost sharing.--The Federal share of the cost of research 
        conducted under this section may not exceed 50 percent.
          (2) Private contributions.--The Secretary--
                  (A) may accept private contributions of property and 
                services for research conducted under this section; and
                  (B) shall apply the value of such contributions to 
                the non-Federal share of the costs of such research.

SEC. 234. MARGINAL WELL PRODUCTION INCENTIVES.

  To enhance the economics of marginal oil and gas production by 
increasing the ultimate recovery from marginal wells when the cash 
price of West Texas Intermediate crude oil, as posted on the Dow Jones 
Commodities Index chart, is less than $15 per barrel for 180 
consecutive pricing days or when the price of natural gas delivered at 
Henry Hub, Louisiana, is less than $2.00 per million British thermal 
units for 180 consecutive days, the Secretary shall reduce the royalty 
rate as production declines for--
          (1) onshore oil wells producing less than 30 barrels per day;
          (2) onshore gas wells producing less than 120 million British 
        thermal units per day;
          (3) offshore oil wells producing less than 300 barrels of oil 
        per day; and
          (4) offshore gas wells producing less than 1,200 million 
        British thermal units per day.

SEC. 235. REIMBURSEMENT FOR COSTS OF NEPA ANALYSES, DOCUMENTATION, AND 
                    STUDIES.

  The Mineral Leasing Act (30 U.S.C. 181 et seq.) is amended by 
inserting after section 37 the following:
   ``reimbursement for costs of certain analyses, documentation, and 
                                studies
  ``Sec. 38. (a) In General.--The Secretary of the Interior shall 
reimburse a person who is a lessee, operator, operating rights owner, 
or applicant for an oil or gas lease under this Act for costs incurred 
by the person in preparing any project-level analysis, documentation, 
or related study required under the National Environmental Policy Act 
of 1969 (42 U.S.C. 4321 et seq.) with respect to the lease, through 
royalty credits attributable to the lease, unit agreement, or project 
area for which the analysis, documentation, or related study is 
prepared.
  ``(b) Conditions.--The Secretary shall provide reimbursement under 
subsection (b) only if--
          ``(1) adequate funding to enable the Secretary to timely 
        prepare the analysis, documentation, or related study is not 
        appropriated;
          ``(2) the person paid the costs voluntarily; and
          ``(3) the person maintains records of its costs in accordance 
        with regulations prescribed by the Secretary.''.
  (c) Application.--The amendments made by this section shall apply 
with respect to any lease entered into before, on, or after the date of 
the enactment of this Act.
  (d) Deadline for Regulations.--The Secretary shall issue regulations 
implementing the amendments made by this section by not later than 90 
days after the date of the enactment of this Act.

                TITLE III--GEOTHERMAL ENERGY DEVELOPMENT

SEC. 301. ROYALTY REDUCTION AND RELIEF.

  (a) Royalty Reduction.--Section 5(a) of the Geothermal Steam Act of 
1970 (30 U.S.C. 1004(a)) is amended by striking ``not less than 10 per 
centum or more than 15 per centum'' and inserting ``not more than 8 per 
centum''.
  (b) Royalty Relief.--
          (1) In general.--Notwithstanding section 5 of the Geothermal 
        Steam Act of 1970 (30 U.S.C. 1004(a)) and any provision of any 
        lease under that Act, no royalty is required to be paid--
                  (A) under any qualified geothermal energy lease with 
                respect to commercial production of heat or energy from 
                a facility that begins such production in the 5-year 
                period beginning on the date of the enactment of this 
                Act; or
                  (B) on qualified expansion geothermal energy.
          (2) 3-year application.--Paragraph (1) applies only to 
        commercial production of heat or energy from a facility in the 
        first 3 years of such production.
  (c) Definitions.--In this section:
          (1) Qualified expansion geothermal energy.--The term 
        ``qualified expansion geothermal energy''--
                  (A) subject to subparagraph (B), means geothermal 
                energy produced from a generation facility for which 
                the rated capacity is increased by more than 10 percent 
                as a result of expansion of the facility carried out in 
                the 5-year period beginning on the date of enactment of 
                this Act; and
                  (B) does not include the rated capacity of the 
                generation facility on the date of enactment of this 
                Act.
          (2) Qualified geothermal energy lease.--The term ``qualified 
        geothermal energy lease'' means a lease under the Geothermal 
        Steam Act of 1970 (30 U.S.C. 1001 et seq.)--
                  (A) that was executed before the end of the 5-year 
                period beginning on the date of the enactment of this 
                Act; and
                  (B) under which no commercial production of any form 
                of heat or energy occurred before the date of the 
                enactment of this Act.

SEC. 302. EXEMPTION FROM ROYALTIES FOR DIRECT USE OF LOW TEMPERATURE 
                    GEOTHERMAL ENERGY RESOURCES.

  Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) is 
amended--
          (1) in paragraph (c) by redesignating subparagraphs (1) and 
        (2) as subparagraphs (A) and (B);
          (2) by redesignating paragraphs (a) through (d) in order as 
        paragraphs (1) through (4);
          (3) by inserting ``(a) In General.--'' after ``Sec. 5.''; and
          (4) by adding at the end the following new subsection:
  ``(b) Exemption for Use of Low Temperature Resources.--
          ``(1) In general.--In lieu of any royalty or rental under 
        subsection (a), a lease for qualified development and direct 
        utilization of low temperature geothermal resources shall 
        provide for payment by the lessee of an annual fee of not less 
        than $100, and not more than $1,000, in accordance with the 
        schedule issued under paragraph (2).
          ``(2) Schedule.--The Secretary shall issue a schedule of fees 
        under this section under which a fee is based on the scale of 
        development and utilization to which the fee applies.
          ``(3) Definitions.--In this subsection:
                  ``(A) Low temperature geothermal resources.--The term 
                `low temperature geothermal resources' means geothermal 
                steam and associated geothermal resources having a 
                temperature of less than 195 degrees Fahrenheit.
                  ``(B) Qualified development and direct utilization.--
                The term `qualified development and direct utilization' 
                means development and utilization in which all products 
                of geothermal resources, other than any heat utilized, 
                are returned to the geothermal formation from which 
                they are produced.''.

SEC. 303. AMENDMENTS RELATING TO LEASING ON FOREST SERVICE LANDS.

  The Geothermal Steam Act of 1970 is amended--
          (1) in section 15(b) (30 U.S.C. 1014(b))--
                  (A) by inserting ``(1)'' after ``(b)''; and
                  (B) in paragraph (1) (as designated by subparagraph 
                (A) of this paragraph) in the first sentence--
                          (i) by striking ``with the consent of, and'' 
                        and inserting ``after consultation with the 
                        Secretary of Agriculture and''; and
                          (ii) by striking ``the head of that 
                        Department'' and inserting ``the Secretary of 
                        Agriculture''; and
          (2) by adding at the end the following:
  ``(2)(A) A geothermal lease for lands withdrawn or acquired in aid of 
functions of the Department of Agriculture may not be issued if the 
Secretary of Agriculture, after the consultation required by paragraph 
(1), determines that no terms or conditions, including a prohibition on 
surface occupancy for lease operations, would be sufficient to 
adequately protect such lands under the National Forest Management Act 
of 1976 (16 U.S.C. 1600 et seq.).
  ``(B) The authority of the Secretary of Agriculture under this 
paragraph may be delegated only to the Undersecretary of Agriculture 
for Natural Resources and Environment.''.

SEC. 304. DEADLINE FOR DETERMINATION ON PENDING NONCOMPETITIVE LEASE 
                    APPLICATIONS.

  Not later than 90 days after the date of the enactment of this Act, 
the Secretary of the Interior shall, with respect to each application 
pending on the date of the enactment of this Act for a lease under the 
Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.), issue a final 
determination of--
          (1) whether or not to conduct a lease sale by competitive 
        bidding; and
          (2) whether or not to award a lease without competitive 
        bidding.

SEC. 305. OPENING OF PUBLIC LANDS UNDER MILITARY JURISDICTION.

  (a) In General.--Except as otherwise provided in the Geothermal Steam 
Act of 1970 (30 U.S.C. 1001 et seq.) and other provisions of Federal 
law applicable to development of geothermal energy resources within 
public lands, all public lands under the jurisdiction of a Secretary of 
a military department shall be open to the operation of such laws and 
development and utilization of geothermal steam and associated 
geothermal resources, as that term is defined in section 2 of the 
Geothermal Steam Act of 1970 (30 U.S.C. 1001), without the necessity 
for further action by the Secretary or the Congress.
  (b) Conforming Amendment.--Section 2689 of title 10, United States 
Code, is amended by striking ``including public lands,'' and inserting 
``other than public lands,''.
  (c) Treatment of Existing Leases.--Upon the expiration of any lease 
in effect on the date of the enactment of this Act of public lands 
under the jurisdiction of a military department for the development of 
any geothermal resource, such lease may, at the option of the lessee--
          (1) be treated as a lease under the Geothermal Steam Act of 
        1970 (30 U.S.C. 1001 et seq.), and be renewed in accordance 
        with such Act; or
          (2) be renewed in accordance with the terms of the lease, if 
        such renewal is authorized by such terms.
  (d) Regulations.--The Secretary of the Interior, with the advice and 
concurrence of the Secretary of the military department concerned, 
shall prescribe such regulations to carry out this section as may be 
necessary. Such regulations shall contain guidelines to assist in 
determining how much, if any, of the surface of any lands opened 
pursuant to this section may be used for purposes incident to 
geothermal energy resources development and utilization.
  (e) Closure for Purposes of National Defense or Security.--In the 
event of a national emergency or for purposes of national defense or 
security, the Secretary of the Interior, at the request of the 
Secretary of the military department concerned, shall close any lands 
that have been opened to geothermal energy resources leasing pursuant 
to this section.

SEC. 306. APPLICATION OF AMENDMENTS.

  The amendments made by this title apply with respect to any lease 
executed before, on, or after the date of the enactment of this Act.

SEC. 307. REVIEW AND REPORT TO CONGRESS.

  The Secretary of the Interior shall promptly review and report to the 
Congress regarding the status of all moratoria on and withdrawals from 
leasing under the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) 
of known geothermal resources areas (as that term is defined in section 
2 of that Act (30 U.S.C. 1001), specifying for each such area whether 
the basis for such moratoria or withdrawal still applies.

SEC. 308. REIMBURSEMENT FOR COSTS OF NEPA ANALYSES, DOCUMENTATION, AND 
                    STUDIES.

  (a) In General.--The Geothermal Steam Act of 1970 (30 U.S.C. 1001 et 
seq.) is amended by adding at the end the following:
   ``reimbursement for costs of certain analyses, documentation, and 
                                studies
  ``Sec. 30. (a) In General.--The Secretary of the Interior shall 
reimburse a person who is a lessee, operator, operating rights owner, 
or applicant for a lease under this Act for costs incurred by the 
person in preparing any project-level analysis, documentation, or 
related study required under the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.) with respect to the lease, through 
royalty credits attributable to the lease, unit agreement, or project 
area for which the analysis, documentation, or related study is 
prepared.
  ``(b) Conditions.--The Secretary shall provide reimbursement under 
subsection (a) only if--
          ``(1) adequate funding to enable the Secretary to timely 
        prepare the analysis, documentation, or related study is not 
        appropriated;
          ``(2) the person paid the costs voluntarily; and
          ``(3) the person maintains records of its costs in accordance 
        with regulations prescribed by the Secretary.''.
  (b) Application.--The amendments made by this section shall apply 
with respect to any lease entered into before, on, or after the date of 
the enactment of this Act.
  (c) Deadline for Regulations.--The Secretary shall issue regulations 
implementing the amendments made by this section by not later than 90 
days after the date of the enactment of this Act.

                          TITLE IV--HYDROPOWER

SEC. 401. STUDY AND REPORT ON INCREASING ELECTRIC POWER PRODUCTION 
                    CAPABILITY OF EXISTING FACILITIES.

  (a) In General.--The Secretary of the Interior shall conduct a study 
of the potential for increasing electric power production capability at 
existing facilities under the administrative jurisdiction of the 
Secretary.
  (b) Content.--The study under this section shall include 
identification and description in detail of each facility that is 
capable, with or without modification, of producing additional 
hydroelectric power, including estimation of the existing potential for 
the facility to generate hydroelectric power.
  (c) Report.--The Secretary shall submit to the Congress a report on 
the findings, conclusions, and recommendations of the study under this 
section by not later than 12 months after the date of enactment of this 
Act. The Secretary shall include in the report the following:
          (1) The identifications, descriptions, and estimations 
        referred to in subsection (b).
          (2) A description of activities the Secretary is currently 
        conducting or considering, or that could be considered, to 
        produce additional hydroelectric power from each identified 
        facility.
          (3) A summary of action that has already been taken by the 
        Secretary to produce additional hydroelectric power from each 
        identified facility.
          (4) The costs to install, upgrade, or modify equipment or 
        take other actions to produce additional hydroelectric power 
        from each identified facility.
          (5) The benefits that would be achieved by such installation, 
        upgrade, modification, or other action, including quantified 
        estimates of any additional energy or capacity from each 
        facility identified under subsection (b).
          (6) A description of actions that are planned, underway, or 
        might reasonably be considered to increase hydroelectric power 
        production by replacing turbine runners.
          (7) A description of actions that are planned, underway, or 
        might reasonably be considered to increase hydroelectric power 
        production by performing generator uprates and rewinds.
          (8) The impact of increased hydroelectric power production on 
        irrigation, fish, wildlife, Indian tribes, river health, water 
        quality, navigation, recreation, fishing, and flood control.
          (9) Any additional recommendations the Secretary considers 
        advisable to increase hydroelectric power production from, and 
        reduce costs and improve efficiency at, facilities under the 
        jurisdiction of the Secretary.

SEC. 402. INSTALLATION OF POWERFORMER AT FOLSOM POWER PLANT, 
                    CALIFORNIA.

  (a) In General.--The Secretary of the Interior may install a 
powerformer at the Bureau of Reclamation Folsom power plant in Folsom, 
California, to replace a generator and transformer that are due for 
replacement due to age.
  (b) Reimbursable Costs.--Costs incurred by the United States for 
installation of a powerformer under this section shall be treated as 
reimbursable costs and shall bear interest at current long-term 
borrowing rates of the United States Treasury at the time of 
acquisition.
  (c) Local Cost Sharing.--In addition to reimbursable costs under 
subsection (b), the Secretary shall seek contributions from power users 
toward the costs of the powerformer and its installation.

SEC. 403. CONSERVATION THROUGH PUMP MODERNIZATION.

  (a) Pump Replacement Program.--The Secretary of the Interior shall--
          (1) conduct a study to determine what pumps associated with 
        water delivery projects should be replaced, based on a cost-
        benefit analysis of modernizing pumping installations, 
        including determination and consideration of the savings in 
        energy costs that would result from such replacement; and
          (2) based on the findings of the study, replace each pump for 
        which the benefits of such replacement (including such energy 
        costs savings) is greater than the cost of the pump 
        replacement.
  (b) Costs.--
          (1) Reimbursable costs.--Subject to the limitation in 
        paragraph (3), the costs incurred by the United States for 
        replacement of any pump under this section shall be treated as 
        reimbursable costs and shall bear interest at current long-term 
        borrowing rates of the United States Treasury at the time of 
        acquisition.
          (2) Local cost sharing.--The Secretary may enter into an 
        agreement with project beneficiaries to secure up-front payment 
        of all or a portion of the reimbursable costs of any pump 
        replacement authorized or undertaken by the Secretary under 
        this section.
          (3) Commercial firm power rate impacts.--The commercial firm 
        power rate for the Reclamation project having a pump 
        replacement performed under this section shall not be increased 
        as a result of the replacement.
  (c) Authorization of Appropriations.--For replacement of pumps under 
this section there is authorized to be appropriated to the Secretary 
$20,000,000.

SEC. 404. STUDY AND IMPLEMENTATION OF INCREASED OPERATIONAL 
                    EFFICIENCIES IN HYDROELECTRIC POWER PROJECTS.

  (a) In General.--The Secretary of Interior shall conduct a study of 
operational methods and water scheduling techniques at all 
hydroelectric power plants under the administrative jurisdiction of the 
Secretary that have an electric power production capacity greater than 
50 megawatts, to--
          (1) determine whether such power plants and associated river 
        systems are operated so as to maximize energy and capacity 
        capabilities; and
          (2) identify measures that can be taken to improve 
        operational flexibility at such plants to achieve such 
        maximization.
  (b) Report.--The Secretary shall submit a report on the findings, 
conclusions, and recommendations of the study under this section by not 
later than 18 months after the date of the enactment of this Act, 
including a summary of the determinations and identifications under 
paragraphs (1) and (2) of subsection (a).
  (c) Cooperation by Federal Power Marketing Administrations.--The 
Secretary shall coordinate with the Administrator of each Federal power 
marketing administration in--
          (1) determining how the value of electric power produced by 
        each hydroelectric power facility that produces power marketed 
        by the administration can be maximized; and
          (2) implementing measures identified under subsection (a)(2).
  (d) Limitation on Implementation of Measures.--Implementation under 
subsections (a)(2) and (b)(2) shall be limited to those measures that 
can be implemented within the constraints imposed on Department of the 
Interior facilities by other uses required by law.

SEC. 405. SHIFT OF PROJECT LOADS TO OFF-PEAK PERIODS.

  (a) In General.--The Secretary of the Interior shall--
          (1) review electric power consumption by Bureau of 
        Reclamation facilities for water pumping purposes; and
          (2) make such adjustments in such pumping as possible to 
        minimize the amount of electric power consumed for such pumping 
        during periods of peak electric power consumption, including by 
        performing as much of such pumping as possible during off-peak 
        hours at night.
  (b) Consent of Affected Irrigation Customers Required.--The Secretary 
may not under this section make any adjustment in pumping at a facility 
without the consent of each person that has contracted with the United 
States for delivery of water from the facility for use for irrigation 
and that would be affected by such adjustment.
  (c) Existing Obligations Not Affected.--This section shall not be 
construed to affect any existing obligation of the Secretary to provide 
electric power, water, or other benefits from Bureau of Reclamation 
facilities.

             TITLE V--ARCTIC COASTAL PLAIN DOMESTIC ENERGY

SEC. 501. SHORT TITLE.

  This title may be cited as the ``Arctic Coastal Plain Domestic Energy 
Security Act of 2001''.

SEC. 502. DEFINITIONS.

  In this title:
          (1) Coastal plain.--The term ``Coastal Plain'' means that 
        area identified as such in the map entitled ``Arctic National 
        Wildlife Refuge'', dated August 1980, as referenced in section 
        1002(b) of the Alaska National Interest Lands Conservation Act 
        of 1980 (16 U.S.C. 3142(b)(1)), comprising approximately 
        1,549,000 acres.
          (2) Secretary.--The term ``Secretary'', except as otherwise 
        provided, means the Secretary of the Interior or the 
        Secretary's designee.

SEC. 503. LEASING PROGRAM FOR LANDS WITHIN THE COASTAL PLAIN.

  (a) In General.--The Secretary shall take such actions as are 
necessary--
          (1) to establish and implement in accordance with this title 
        a competitive oil and gas leasing program under the Mineral 
        Leasing Act (30 U.S.C. 181 et seq.) that will result in an 
        environmentally sound program for the exploration, development, 
        and production of the oil and gas resources of the Coastal 
        Plain; and
          (2) to administer the provisions of this title through 
        regulations, lease terms, conditions, restrictions, 
        prohibitions, stipulations, and other provisions that ensure 
        the oil and gas exploration, development, and production 
        activities on the Coastal Plain will result in no significant 
        adverse effect on fish and wildlife, their habitat, subsistence 
        resources, and the environment, and including, in furtherance 
        of this goal, by requiring the application of the best 
        commercially available technology for oil and gas exploration, 
        development, and production to all exploration, development, 
        and production operations under this title in a manner that 
        ensures the receipt of fair market value by the public for the 
        mineral resources to be leased.
  (b) Repeal.--Section 1003 of the Alaska National Interest Lands 
Conservation Act of 1980 (16 U.S.C. 3143) is repealed.
  (c) Compliance With Requirements Under Certain Other Laws.--
          (1) Compatibility.--For purposes of the National Wildlife 
        Refuge System Administration Act of 1966, the oil and gas 
        leasing program and activities authorized by this section in 
        the Coastal Plain are deemed to be compatible with the purposes 
        for which the Arctic National Wildlife Refuge was established, 
        and that no further findings or decisions are required to 
        implement this determination.
          (2) Adequacy of the department of the interior's legislative 
        environmental impact statement.--The ``Final Legislative 
        Environmental Impact Statement'' (April 1987) on the Coastal 
        Plain prepared pursuant to section 1002 of the Alaska National 
        Interest Lands Conservation Act of 1980 (16 U.S.C. 3142) and 
        section 102(2)(C) of the National Environmental Policy Act of 
        1969 (42 U.S.C. 4332(2)(C)) is deemed to satisfy the 
        requirements under the National Environmental Policy Act of 
        1969 that apply with respect to actions authorized to be taken 
        by the Secretary to develop and promulgate the regulations for 
        the establishment of a leasing program authorized by this title 
        before the conduct of the first lease sale.
          (3) Compliance with nepa for other actions.--Before 
        conducting the first lease sale under this title, the Secretary 
        shall prepare an environmental impact statement under the 
        National Environmental Policy Act of 1969 with respect to the 
        actions authorized by this title that are not referred to in 
        paragraph (2). Notwithstanding any other law, the Secretary is 
        not required to identify nonleasing alternative courses of 
        action or to analyze the environmental effects of such courses 
        of action. The Secretary shall only identify a preferred action 
        for such leasing and a single leasing alternative, and analyze 
        the environmental effects and potential mitigation measures for 
        those two alternatives. The identification of the preferred 
        action and related analysis for the first lease sale under this 
        title shall be completed within 18 months after the date of 
        enactment of this Act. The Secretary shall only consider public 
        comments that specifically address the Secretary's preferred 
        action and that are filed within 20 days after publication of 
        an environmental analysis. Notwithstanding any other law, 
        compliance with this paragraph is deemed to satisfy all 
        requirements for the analysis and consideration of the 
        environmental effects of proposed leasing under this title.
  (d) Relationship to State and Local Authority.--Nothing in this title 
shall be considered to expand or limit State and local regulatory 
authority.
  (e) Special Areas.--
          (1) In general.--The Secretary, after consultation with the 
        State of Alaska, the city of Kaktovik, and the North Slope 
        Borough, may designate up to a total of 45,000 acres of the 
        Coastal Plain as a Special Area if the Secretary determines 
        that the Special Area is of such unique character and interest 
        so as to require special management and regulatory protection. 
        The Secretary shall designate as such a Special Area the 
        Sadlerochit Spring area, comprising approximately 4,000 acres 
        as depicted on the map referred to in section 502(1).
          (2) Management.--Each such Special Area shall be managed so 
        as to protect and preserve the area's unique and diverse 
        character including its fish, wildlife, and subsistence 
        resource values.
          (3) Exclusion from leasing or surface occupancy.--The 
        Secretary may exclude any Special Area from leasing. If the 
        Secretary leases a Special Area, or any part thereof, for 
        purposes of oil and gas exploration, development, production, 
        and related activities, there shall be no surface occupancy of 
        the lands comprising the Special Area.
          (4) Directional drilling.--Notwithstanding the other 
        provisions of this subsection, the Secretary may lease all or a 
        portion of a Special Area under terms that permit the use of 
        horizontal drilling technology from sites on leases located 
        outside the area.
  (f) Limitation on Closed Areas.--The Secretary's sole authority to 
close lands within the Coastal Plain to oil and gas leasing and to 
exploration, development, and production is that set forth in this 
title.
  (g) Regulations.--
          (1) In general.--The Secretary shall prescribe such 
        regulations as may be necessary to carry out this title, 
        including rules and regulations relating to protection of the 
        fish and wildlife, their habitat, subsistence resources, and 
        environment of the Coastal Plain, by no later than 15 months 
        after the date of enactment of this Act.
          (2) Revision of regulations.--The Secretary shall 
        periodically review and, if appropriate, revise the rules and 
        regulations issued under subsection (a) to reflect any 
        significant biological, environmental, or engineering data that 
        come to the Secretary's attention.

SEC. 504. LEASE SALES.

  (a) In General.--Lands may be leased pursuant to this title to any 
person qualified to obtain a lease for deposits of oil and gas under 
the Mineral Leasing Act (30 U.S.C. 181 et seq.).
  (b) Procedures.--The Secretary shall, by regulation, establish 
procedures for--
          (1) receipt and consideration of sealed nominations for any 
        area in the Coastal Plain for inclusion in, or exclusion (as 
        provided in subsection (c)) from, a lease sale;
          (2) the holding of lease sales after such nomination process; 
        and
          (3) public notice of and comment on designation of areas to 
        be included in, or excluded from, a lease sale.
  (c) Lease Sale Bids.--Bidding for leases under this title shall be by 
sealed competitive cash bonus bids.
  (d) Acreage Minimum in First Sale.--In the first lease sale under 
this title, the Secretary shall offer for lease those tracts the 
Secretary considers to have the greatest potential for the discovery of 
hydrocarbons, taking into consideration nominations received pursuant 
to subsection (b)(1), but in no case less than 200,000 acres.
  (e) Timing of Lease Sales.--The Secretary shall--
          (1) conduct the first lease sale under this title within 22 
        months after the date of enactment of this title; and
          (2) conduct additional sales so long as sufficient interest 
        in development exists to warrant, in the Secretary's judgment, 
        the conduct of such sales.

SEC. 505. GRANT OF LEASES BY THE SECRETARY.

  (a) In General.--The Secretary may grant to the highest responsible 
qualified bidder in a lease sale conducted pursuant to section 504 any 
lands to be leased on the Coastal Plain upon payment by the lessee of 
such bonus as may be accepted by the Secretary.
  (b) Subsequent Transfers.--No lease issued under this title may be 
sold, exchanged, assigned, sublet, or otherwise transferred except with 
the approval of the Secretary. Prior to any such approval the Secretary 
shall consult with, and give due consideration to the views of, the 
Attorney General.

SEC. 506. LEASE TERMS AND CONDITIONS.

  (a) In General.--An oil or gas lease issued pursuant to this title 
shall--
          (1) provide for the payment of a royalty of not less than 
        12\1/2\ percent in amount or value of the production removed or 
        sold from the lease, as determined by the Secretary under the 
        regulations applicable to other Federal oil and gas leases;
          (2) provide that the Secretary may close, on a seasonal 
        basis, portions of the Coastal Plain to exploratory drilling 
        activities as necessary to protect caribou calving areas and 
        other species of fish and wildlife;
          (3) require that the lessee of lands within the Coastal Plain 
        shall be fully responsible and liable for the reclamation of 
        lands within the Coastal Plain and any other Federal lands that 
        are adversely affected in connection with exploration, 
        development, production, or transportation activities conducted 
        under the lease and within the Coastal Plain by the lessee or 
        by any of the subcontractors or agents of the lessee;
          (4) provide that the lessee may not delegate or convey, by 
        contract or otherwise, the reclamation responsibility and 
        liability to another person without the express written 
        approval of the Secretary;
          (5) provide that the standard of reclamation for lands 
        required to be reclaimed under this title shall be, as nearly 
        as practicable, a condition capable of supporting the uses 
        which the lands were capable of supporting prior to any 
        exploration, development, or production activities, or upon 
        application by the lessee, to a higher or better use as 
        approved by the Secretary;
          (6) contain terms and conditions relating to protection of 
        fish and wildlife, their habitat, and the environment as 
        required pursuant to section 503(a)(2);
          (7) provide that the lessee, its agents, and its contractors 
        use best efforts to provide a fair share, as determined by the 
        level of obligation previously agreed to in the 1974 agreement 
        implementing section 29 of the Federal Agreement and Grant of 
        Right of Way for the Operation of the Trans-Alaska Pipeline, of 
        employment and contracting for Alaska Natives and Alaska Native 
        Corporations from throughout the State;
          (8) prohibit the export of oil produced under the lease; and
          (9) contain such other provisions as the Secretary determines 
        necessary to ensure compliance with the provisions of this 
        title and the regulations issued under this title.
  (b) Project Labor Agreements.--The Secretary, as a term and condition 
of each lease under this title and in recognizing the Government's 
proprietary interest in labor stability and in the ability of 
construction labor and management to meet the particular needs and 
conditions of projects to be developed under the leases issued pursuant 
to this title and the special concerns of the parties to such leases, 
shall require that the lessee and its agents and contractors negotiate 
to obtain a project labor agreement for the employment of laborers and 
mechanics on production, maintenance, and construction under the lease.

SEC. 507. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

  (a) No Significant Adverse Effect Standard To Govern Authorized 
Coastal Plain Activities.--The Secretary shall, consistent with the 
requirements of section 503, administer the provisions of this title 
through regulations, lease terms, conditions, restrictions, 
prohibitions, stipulations, and other provisions that--
          (1) ensure the oil and gas exploration, development, and 
        production activities on the Coastal Plain will result in no 
        significant adverse effect on fish and wildlife, their habitat, 
        and the environment; and
          (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.
  (b) Site-Specific Assessment and Mitigation.--The Secretary shall 
also require, with respect to any proposed drilling and related 
activities, that--
          (1) a site-specific analysis be made of the probable effects, 
        if any, that the drilling or related activities will have on 
        fish and wildlife, their habitat, and the environment;
          (2) a plan be implemented to avoid, minimize, and mitigate 
        (in that order and to the extent practicable) any significant 
        adverse effect identified under paragraph (1); and
          (3) the development of the plan shall occur after 
        consultation with the agency or agencies having jurisdiction 
        over matters mitigated by the plan.
  (c) Regulations To Protect Coastal Plain Fish and Wildlife Resources, 
Subsistence Users, and the Environment.--Before implementing the 
leasing program authorized by this title, the Secretary shall prepare 
and promulgate regulations, lease terms, conditions, restrictions, 
prohibitions, stipulations, and other measures designed to ensure that 
the activities undertaken on the Coastal Plain under this title are 
conducted in a manner consistent with the purposes and environmental 
requirements of this title.
  (d) Compliance With Federal and State Environmental Laws and Other 
Requirements.--The proposed regulations, lease terms, conditions, 
restrictions, prohibitions, and stipulations for the leasing program 
under this title shall require compliance with all applicable 
provisions of Federal and State environmental law and shall also 
require the following:
          (1) Standards at least as effective as the safety and 
        environmental mitigation measures set forth in items 1 through 
        29 at pages 167 through 169 of the ``Final Legislative 
        Environmental Impact Statement'' (April 1987) on the Coastal 
        Plain.
          (2) Seasonal limitations on exploration, development, and 
        related activities, where necessary, to avoid significant 
        adverse effects during periods of concentrated fish and 
        wildlife breeding, denning, nesting, spawning, and migration.
          (3) That exploration activities, except for surface 
        geological studies, be limited to the period between 
        approximately November 1 and May 1 each year and that 
        exploration activities shall be supported by ice roads, winter 
        trails with adequate snow cover, ice pads, ice airstrips, and 
        air transport methods, except that such exploration activities 
        may occur at other times, if--
                  (A) the Secretary determines, after affording an 
                opportunity for public comment and review, that special 
                circumstances exist necessitating that exploration 
                activities be conducted at other times of the year; and
                  (B) the Secretary finds that such exploration will 
                have no significant adverse effect on the fish and 
                wildlife, their habitat, and the environment of the 
                Coastal Plain.
          (4) Design safety and construction standards for all 
        pipelines and any access and service roads, that--
                  (A) minimize, to the maximum extent possible, adverse 
                effects upon the passage of migratory species such as 
                caribou; and
                  (B) minimize adverse effects upon the flow of surface 
                water by requiring the use of culverts, bridges, and 
                other structural devices.
          (5) Prohibitions on public access and use on all pipeline 
        access and service roads.
          (6) Stringent reclamation and rehabilitation requirements, 
        consistent with the standards set forth in this title, 
        requiring the removal from the Coastal Plain of all oil and gas 
        development and production facilities, structures, and 
        equipment upon completion of oil and gas production operations, 
        except that the Secretary may exempt from the requirements of 
        this paragraph those facilities, structures, or equipment that 
        the Secretary determines would assist in the management of the 
        Arctic National Wildlife Refuge and that are donated to the 
        United States for that purpose.
          (7) Appropriate prohibitions or restrictions on access by all 
        modes of transportation.
          (8) Appropriate prohibitions or restrictions on sand and 
        gravel extraction.
          (9) Consolidation of facility siting.
          (10) Appropriate prohibitions or restrictions on use of 
        explosives.
          (11) Avoidance, to the extent practicable, of springs, 
        streams, and river system; the protection of natural surface 
        drainage patterns, wetlands, and riparian habitats; and the 
        regulation of methods or techniques for developing or 
        transporting adequate supplies of water for exploratory 
        drilling.
          (12) Avoidance or reduction of air traffic-related 
        disturbance to fish and wildlife.
          (13) Treatment and disposal of hazardous and toxic wastes, 
        solid wastes, reserve pit fluids, drilling muds and cuttings, 
        and domestic wastewater, including an annual waste management 
        report, a hazardous materials tracking system, and a 
        prohibition on chlorinated solvents, in accordance with 
        applicable Federal and State environmental law.
          (14) Fuel storage and oil spill contingency planning.
          (15) Research, monitoring, and reporting requirements.
          (16) Field crew environmental briefings.
          (17) Avoidance of significant adverse effects upon 
        subsistence hunting, fishing, and trapping by subsistence 
        users.
          (18) Compliance with applicable air and water quality 
        standards.
          (19) Appropriate seasonal and safety zone designations around 
        well sites, within which subsistence hunting and trapping shall 
        be limited.
          (20) Reasonable stipulations for protection of cultural and 
        archeological resources.
          (21) All other protective environmental stipulations, 
        restrictions, terms, and conditions deemed necessary by the 
        Secretary.
  (e) Considerations.--In preparing and promulgating regulations, lease 
terms, conditions, restrictions, prohibitions, and stipulations under 
this section, the Secretary shall consider the following:
          (1) The stipulations and conditions that govern the National 
        Petroleum Reserve-Alaska leasing program, as set forth in the 
        1999 Northeast National Petroleum Reserve-Alaska Final 
        Integrated Activity Plan/Environmental Impact Statement.
          (2) The environmental protection standards that governed the 
        initial Coastal Plain seismic exploration program under parts 
        37.31 to 37.33 of title 50, Code of Federal Regulations.
          (3) The land use stipulations for exploratory drilling on the 
        KIC-ASRC private lands that are set forth in Appendix 2 of the 
        August 9, 1983, agreement between Arctic Slope Regional 
        Corporation and the United States.
  (f) Facility Consolidation Planning.--
          (1) In general.--The Secretary shall, after providing for 
        public notice and comment, prepare and update periodically a 
        plan to govern, guide, and direct the siting and construction 
        of facilities for the exploration, development, production, and 
        transportation of Coastal Plain oil and gas resources.
          (2) Objectives.--The plan shall have the following 
        objectives:
                  (A) Avoiding unnecessary duplication of facilities 
                and activities.
                  (B) Encouraging consolidation of common facilities 
                and activities.
                  (C) Locating or confining facilities and activities 
                to areas that will minimize impact on fish and 
                wildlife, their habitat, and the environment.
                  (D) Utilizing existing facilities wherever 
                practicable.
                  (E) Enhancing compatibility between wildlife values 
                and development activities.

SEC. 508. EXPEDITED JUDICIAL REVIEW.

  (a) Filing of Complaint.--
          (1) Deadline.--Subject to paragraph (2), any complaint 
        seeking judicial review of any provision of this title or any 
        action of the Secretary under this title shall be filed in any 
        appropriate district court of the United States--
                  (A) except as provided in subparagraph (B), within 
                the 90-day period beginning on the date of the action 
                being challenged; or
                  (B) in the case of a complaint based solely on 
                grounds arising after such period, within 90 days after 
                the complainant knew or reasonably should have known of 
                the grounds for the complaint.
          (2) Venue.--Any complaint seeking judicial review of an 
        action of the Secretary under this title may be filed only in 
        the United States Court of Appeals for the District of 
        Columbia.
          (3) Limitation on scope of certain review.--Judicial review 
        of a Secretarial decision to conduct a lease sale under this 
        title, including the environmental analysis thereof, shall be 
        limited to whether the Secretary has complied with the terms of 
        this Act and shall be based upon the administrative record of 
        that decision. The Secretary's identification of a preferred 
        course of action to enable leasing to proceed and the 
        Secretary's analysis of environmental effects under this Act 
        shall be presumed to be correct unless shown otherwise by clear 
        and convincing evidence to the contrary.
  (b) Limitation on Other Review.--Actions of the Secretary with 
respect to which review could have been obtained under this section 
shall not be subject to judicial review in any civil or criminal 
proceeding for enforcement.

SEC. 509. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.

  (a) Exemption.--Title XI of the Alaska National Interest Lands 
Conservation Act of 1980 (16 U.S.C. 3161 et seq.) shall not apply to 
the issuance by the Secretary under section 28 of the Mineral Leasing 
Act (30 U.S.C. 185) of rights-of-way and easements across the Coastal 
Plain for the transportation of oil and gas.
  (b) Terms and Conditions.--The Secretary shall include in any right-
of-way or easement referred to in 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 503(g) provisions granting rights-of-way and easements 
described in subsection (a) of this section.

SEC. 510. CONVEYANCE.

  In order to maximize Federal revenues by removing clouds on title to 
lands and clarifying land ownership patterns within the Coastal Plain, 
the Secretary, notwithstanding the provisions of section 1302(h)(2) of 
the Alaska National Interest Lands Conservation Act (16 U.S.C. 
3192(h)(2)), shall convey--
          (1) to the Kaktovik Inupiat Corporation the surface estate of 
        the lands described in paragraph 2 of Public Land Order 6959, 
        to the extent necessary to fulfill the Corporation's 
        entitlement under section 12 of the Alaska Native Claims 
        Settlement Act (43 U.S.C. 1611); and
          (2) to the Arctic Slope Regional Corporation the subsurface 
        estate beneath such surface estate pursuant to the August 9, 
        1983, agreement between the Arctic Slope Regional Corporation 
        and the United States of America.

SEC. 511. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE ASSISTANCE.

  (a) Financial Assistance Authorized.--
          (1) In general.--The Secretary may use amounts available from 
        the Coastal Plain Local Government Impact Aid Assistance Fund 
        established by subsection (d) to provide timely financial 
        assistance to entities that are eligible under paragraph (2) 
        and that are directly impacted by the exploration for or 
        production of oil and gas on the Coastal Plain under this 
        title.
          (2) Eligible entities.--The North Slope Borough, Kaktovik, 
        and other boroughs, municipal subdivisions, villages, and any 
        other community organized under Alaska State law shall be 
        eligible for financial assistance under this section.
  (b) Use of Assistance.--Financial assistance under this section may 
be used only for--
          (1) planning for mitigation of the potential effects of oil 
        and gas exploration and development on environmental, social, 
        cultural, recreational and subsistence values;
          (2) implementing mitigation plans and maintaining mitigation 
        projects; and
          (3) developing, carrying out, and maintaining projects and 
        programs that provide new or expanded public facilities and 
        services to address needs and problems associated with such 
        effects, including firefighting, police, water, waste 
        treatment, medivac, and medical services.
  (c) Application.--
          (1) In general.--Any community that is eligible for 
        assistance under this section may submit an application for 
        such assistance to the Secretary, in such form and under such 
        procedures as the Secretary may prescribe by regulation.
          (2) North slope borough communities.--A community located in 
        the North Slope Borough may apply for assistance under this 
        section either directly to the Secretary or through the North 
        Slope Borough.
          (3) Application assistance.--The Secretary shall work closely 
        with and assist the North Slope Borough and other communities 
        eligible for assistance under this section in developing and 
        submitting applications for assistance under this section.
  (d) Establishment of Fund.--
          (1) In general.--There is established in the Treasury the 
        Coastal Plain Local Government Impact Aid Assistance Fund.
          (2) Use.--Amounts in the fund may be used only for providing 
        financial assistance under this section.
          (3) Deposits.--Subject to paragraph (4), there shall be 
        deposited into the fund amounts received by the United States 
        as revenues derived from rents, bonuses, and royalties under on 
        leases and lease sales authorized under this title.
          (4) Limitation on deposits.--The total amount in the fund may 
        not exceed $10,000,000.
          (5) Investment of balances.--The Secretary of the Treasury 
        shall invest amounts in the fund in interest bearing government 
        securities.
  (e) Authorization of Appropriations.--To provide financial assistance 
under this section there is authorized to be appropriated to the 
Secretary from the Coastal Plain Local Government Impact Aid Assistance 
Fund $5,000,000 for each fiscal year.

                    TITLE VI--HISTORIC PRESERVATION

SEC. 601. PROHIBITION.

  For purposes of the National Historic Preservation Act (Public Law 
89-665, 16 U.S.C. 470 et seq.), no privately owned and operated 
pipeline and related facilities (including all associated compressor 
stations, taps, valves, and meter stations) that is in service or 
available for service shall be eligible for inclusion on the National 
Register of Historic Places without the consent of the owner thereof.

SEC. 602. REMOVAL FROM ELIGIBILITY.

  Any pipeline and related facility identified in section 601 deemed 
eligible for inclusion on the National Register of Historic Places 
prior to the date of enactment of this title shall no longer be 
eligible for inclusion, unless the owner of the pipeline and related 
facility has given written consent and agreed to such eligibility.

  TITLE VII--CONSERVATION OF ENERGY BY THE DEPARTMENT OF THE INTERIOR

SEC. 701. ENERGY CONSERVATION BY THE DEPARTMENT OF THE INTERIOR.

  (a) In General.--The Secretary of the Interior shall--
          (1) conduct a study to identify, evaluate, and recommend 
        opportunities for conserving energy by reducing the amount of 
        energy used by facilities of the Department of the Interior; 
        and
          (2) wherever feasible and appropriate, reduce the use of 
        energy from traditional sources by encouraging use of 
        alternative energy sources, including solar power and power 
        from fuel cells, throughout such facilities and the public 
        lands of the United States.
  (b) Reports.--The Secretary shall submit to the Congress--
          (1) by not later than 90 days after the date of the enactment 
        of this Act, a report containing the findings, conclusions, and 
        recommendations of the study under subsection (a)(1); and
          (2) by not later than December 31 each year, an annual report 
        describing progress made in--
                  (A) conserving energy through opportunities 
                recommended in the report under paragraph (1); and
                  (B) encouraging use of alternative energy sources 
                under subsection (a)(2).

                          Purpose of the Bill

    The purpose of H.R. 2436 is to provide secure energy 
supplies for the people of the United States, and for other 
purposes.

                  Background and Need for Legislation


                          summary of the bill

    H.R. 2436, the ``Energy Security Act,'' implements several 
components of the President's energy policy agenda within the 
jurisdiction of the Committee on Resources. It is intended to 
increase, diversify, and facilitate delivery of energy supplies 
from federal lands and off-shore areas.
    Title I contains measures related to domestic energy 
security, including an inventory of federal lands (except areas 
managed by the National Park Service and wilderness areas) for 
their wind, solar, coal and geothermal power potential, and 
reviews of federal land rights-of-way to transmit energy 
supplies.
    Title II contains measures related to federal oil and gas 
development, including the reestablishment of incentives for 
certain deepwater leases; expedited reviews of impediments to 
onshore federal lands oil and gas lease administration, with 
requirements for reporting and explanations of decisions which 
hinder such energy development; royalty-in-kind; and other 
measures.
    Title III provides incentives for the development of 
geothermal energy on public lands.
    Title IV contains measures to maximize value of the 
hydroelectric power production of existing Bureau of 
Reclamation facilities.
    Title V authorizes oil and gas exploration, development and 
production on the Coastal Plain (1002 Area) of the Arctic 
National Wildlife Refuge (ANWR).
    Title VI prohibits the listing of certain privately-owned 
and operated pipelines on the National Register of Historic 
Places.

                               Background

    As President George W. Bush noted upon the establishment of 
a White House-level National Energy Policy Development Group 
soon after his inauguration, the country is facing the most 
serious crisis in the supply of energy versus demand since the 
oil market disruptions of the 1970's. Beginning in early March, 
2001, the Committee has held four full committee hearings on 
energy related topics and the several subcommittees have held 
nine hearings on various energy issues as well. This oversight 
was conducted during the interval when the President's task 
group was developing its recommendations.
    On May 17, 2001, the Bush Administration released the 
National Energy Policy report which forms the blueprint for its 
proposed national energy policy. The report, compiled by the 
National Energy Policy Development Group chaired by Vice 
President Richard Cheney, assesses U.S. energy shortages and 
makes recommendations to close the gap between domestic energy 
supply and demand.
    According to the U.S. Energy Information Administration 
(EIA), domestic energy production between 1991 and 2000 
increased by 2.3 percent over the previous decade while energy 
consumption increased by 17 percent. Increases in domestic 
coal, natural gas, nuclear energy and renewable energy 
production have been largely offset by declines in domestic oil 
production. As a result, America has met almost all of its 
rising energy demand during the last decade with increased 
imports.
    Currently, America is trying to meet the energy demand of a 
dynamic, growing 21st century economy with last decade's supply 
base and infrastructure. The EIA projects that by 2020 energy 
consumption will increase by 32 percent. If the energy 
production and consumption trends of the 1990's continue, the 
periodic energy shortages and high prices our nation is 
currently experiencing will soon become chronic. Ultimately, 
the growth of America's economy will be limited by energy 
availability undermining our standard of living and national 
security. If we fail to resolve the energy crisis, California 
provides a vision of the future--homeowners, farmers and 
businesses facing soaring electricity prices, rolling 
blackouts, financial turmoil and recession.
    Legislation designed to ultimately increase energy supply 
from federal lands and off-shore areas of the United States is 
necessary, as many experts believe these areas hold the most 
promise for new discoveries of oil and gas. Furthermore, 
geothermal energy resources are concentrated in the western 
U.S. as is much of the nation's known low-sulfur high-quality 
coal. Other energy resources underlie public lands managed by 
the Bureau of Land Management or the U.S. Forest Service.
    H.R. 2436 is designed to increase energy supply from 
federal lands and off-shore areas of the United States. Many 
provisions of the legislation create new or additional 
incentives for oil and gas development on federal lands and 
areas of the outer continental shelf (OCS) that are not off-
limits to such development. This bill does not open any 
national park, monument, or wilderness area to drilling or 
mining. In addition, it does not attempt to lift existing 
moratoria on OCS pre-leasing or leasing activities along the 
Atlantic Ocean, Pacific Ocean, North Aleutian Basin, or Eastern 
Gulf of Mexico. The bill also increases incentives for 
development of environmentally-friendly geothermal and Bureau 
of Reclamation hydroelectric power.

                  Partial Section-by-Section Analysis


Section 1. Short title

    The short title of this Act is the ``Energy Security Act''.

Section 2. Table of contents

    This section provides a table of contents for the bill.

      Title I--General Protections for Energy Supply and Security

    This title is intended to add to the knowledge base which 
federal government agencies possess to better plan for the 
development of domestic energy supplies and its transmission to 
energy users. This title require studies and reports only. No 
federal lands are opened for exploration or development by the 
provisions of Title I.

Section 101. Study of existing rights-of-way on federal lands to 
        determine capability to support new pipelines and other 
        transmission facilities

    Section 101 provides for a study of existing rights-of-way 
on federal lands to determine whether such rights-of-way could 
support additional capacity and what modifications may be 
necessary to do so. Consultation with State and local officials 
and Indian tribes is required, with deference to public safety 
expressed as well.

Section 102. Inventory of energy production potential of all federal 
        public lands

    Section 102 is parallel to inventory for oil and gas 
resources required under Section 604 of the Energy Act of 2000, 
Public Law 106-469. This section requires an inventory of all 
public lands with energy production potential, except for land 
within national parks and Wilderness Areas designated by 
Congress. This inventory will identify lands with Class Four 
and higher wind energy potential, receiving 450 watts per 
square meter or greater solar radiation, coal and geothermal 
energy resources. The U.S. Geological Survey already has a 
national assessment for coal well underway and little 
additional work will be required to meet these requirements.
    The latest geothermal energy assessment of the United 
States was in 1978 and needs to be updated. This assessment may 
have overstated the abundance of high temperature geothermal 
resources in the western U.S. However, the assessment did not 
estimate the medium temperature resources at all because it was 
not feasible to develop them at that time.
    As part of the inventory, Section 102 requires that 
restrictions and impediments to development of the inventoried 
resources be identified and that the inventory be updated on a 
regular basis after completion. Furthermore, the Committee 
intends the exclusion of national park lands to mean any public 
lands administered by the National Park Service.

Section 103. Review of regulations to eliminate barriers to emerging 
        energy technology

    Section 103 provides for a review of agencies' regulations 
to identify barriers to market-entry for emerging energy-
efficient technologies which may occur.

Section 104. Interagency agreement on environmental review of 
        interstate natural gas pipeline projects

    Section 104 provides for the establishment of an inter-
agency task force to draft an agreement to expedite and 
facilitate the environmental review and permitting of 
interstate natural gas pipelines. A shortage of natural gas 
transmission capacity to meet forecasted demand increases, 
especially by planned electric generation facilities, is one of 
the more immediate energy problems facing the nation. A 
coordinated planning effort among land managers and regulatory 
agencies with a stake in permitting is needed. The Committee 
intends this provision to be fully consistent with the 
Interagency Task Force established under Section 3 of Executive 
Order 13212 of May 18, 2001, except that this provision is 
specific only to natural gas pipelines.

                   Title II--Oil and Gas Development


                    Subtitle A--Offshore Oil and Gas

Section 201. Short title

    The short title of this title is the ``Royalty Relief 
Extension Act of 2001''.

Section 202. Lease sales in western and central planning area of the 
        Gulf of Mexico

    Section 202 extends for two years the mandatory suspension 
of certain volumes of oil and gas from royalty obligation for 
deepwater outer continental shelf (OCS) leases in the central 
and western Gulf of Mexico issued after enactment of H.R. 2436. 
This section replicates the 1995 Deepwater Royalty Relief Act, 
under which mandatory royalty relief expired in November 2000. 
Section 202 differs from the 1995 law: for water depths greater 
than 800 meters the section now reflects the suspension volume 
per lease rather than per field and restricts the relief to the 
same amount the Department of the Interior has granted 
administratively. This section also contains a provision 
expressly stating no intention to limit the Secretary of the 
Interior's current authority to provide royalty suspension.

Section 203. Savings clause

    Section 203 establishes that the bill does not affect 
existing OCS moratoria on pre-leasing and leasing or 
development activities.

Section 204. Analysis of Gulf of Mexico field size distribution, 
        international competitiveness, and incentives for development

    Section 204 provides for a Department of the Interior/
Department of Energy jointly commissioned report by the 
National Academy of Sciences into the various oil and gas 
resource assessments and models of field distribution of the 
Gulf of Mexico; a comparison of the current incentives for 
deepwater development in the Gulf versus those offered in other 
international deepwater areas for which investment capital 
competes; and a recommendation for appropriateincentives to 
optimize future oil and gas supplies from open areas in the Gulf of 
Mexico. The Committee desires that the expert panel look at the full 
range of water depths in the Gulf of Mexico, not just the deep or 
ultradeep water, when making such analysis. Furthermore the Committee 
expects the panel to consider recommendations for the possible need for 
incentives to foster subsalt exploration, the drilling of highly 
deviated wells, and deep drilling for natural gas. The Committee is 
especially concerned that as opportunity to seek new natural gas 
supplies in most other regions of the OCS remain closed, the central 
and western Gulf of Mexico must be made especially attractive for 
exploration and development.

           Subtitle B--Improvements to Oil and Gas Management

Section 221. Short title

    The short title of this subtitle is the ``Federal Oil and 
Gas Lease Management Improvement Demonstration Program Act of 
2001''.

Section 222. Study of impediments to efficient lease operations

    Section 222 provides for the Department of the Interior and 
Department of Agriculture to jointly study and report to 
Congress on impediments to efficient oil and gas leasing on 
Bureau of Land Management (BLM) and U.S. Forest Service-
administered lands. The study shall include a review of: (1) 
action upon offers to lease and related time-frames; (2) 
approval process for applications for permits to drill (APD) 
and related time-frames with any recommendations for expediting 
approvals; (3) approval process for surface use plans of 
operation and related time-frames; and (4) the process for 
administrative appeals of BLM oil and gas leasing-related 
decisions and time-frames with recommendations for expediting 
such appeals.

Section 223. Elimination of unwarranted denials and stays

    Section 223 provides for elimination of unwarranted denials 
and stays of oil and gas administrative decisions. It requires 
the Secretary to explain in writing the reasons in the record 
of decisions accepting land-use plans which incorporate lease 
stipulations more stringent than the relevant State's oil and 
gas conservation authority imposes upon fee and State lands. 
Likewise such written explanation of reasons is required for 
rejections of offers to lease federal lands, and when 
disapprovals or modifications of surface use plans or APDs 
land-use plans are issued with respect to oil and gas 
development.

Section 224. Limitations on cost recovery for applications

    Section 224 limits the Department of the Interior from 
recovering administrative costs from oil and gas lease 
applicants or lessees in recognition that bonus and rental 
payments and production royalties are already paid by such 
persons.

Section 225. Consultation with the Secretary of Agriculture

    Section 225 amends current law to require Secretary of the 
Interior to consult with Secretary of Agriculture with respect 
to leasing decisions on National Forest System lands. An 
amendment adopted in Committee retains the veto power of the 
Secretary of Agriculture over leasing decisions after such 
consultation, but the decision to veto leasing cannot be 
delegated lower than to the Under Secretary for Natural 
Resources and Environment.

                       Subtitle C--Miscellaneous

Section 231. Offshore salt development

    Section 231 provides discretionary authority under the OCS 
Lands Act to the Secretary of the Interior to extend the 
primary lease term for certain salt sheets upon a demonstration 
by the lessee that additional time is necessary to adequately 
reprocess and reinterpret geophysical data (generally seismic) 
to define structures and drilling targets beneath the 
horizontal salt sheets of the Gulf of Mexico.

Section 232. Program on oil and gas royalties in kind

    Section 232 provides additional royalty-in-kind (RIK) 
flexibility to the Secretary of the Interior through Fiscal 
Year 2006 while requiring analysis of expected receipts to the 
Treasury compared to the usual royalty-in-value method. The 
section also establishes annual reporting requirement of such 
analyses. Consultation with a State is required before 
conducting an RIK program for onshore leases and the Secretary 
of the Interior may delegate management of the RIK program to a 
willing State. Preference to qualified small refiners is 
continued and an express provision for Secretarial preference 
to provide RIK volumes to entities involved in low-income 
energy assistance programs consistent with the National Energy 
Policy is included.

Section 233. Cooperative oil and gas research and information centers

    Section 233 provides the Secretary of the Interior with the 
discretion to establish cost-shared oil and gas technology 
transfer centers administered by the U.S. Geological Survey in 
partnership with the various State geological surveys to 
archive and provide public access to oil and gas data and to 
conduct research. An amendment was adopted by the committee to 
change the title of such centers to ``Cooperative Oil and Gas 
Research and Information Centers'' to clarify the intent of 
this section is not to overlap jurisdiction of the Petroleum 
Technology Transfer Council and the regional centers maintained 
by this Department of Energy-adjunct group. The Committee 
intends the centers to be established by this section to be 
focused on the archiving of geological and geophysical data 
from the oil and gas industry, and the promotion of research 
efforts in the earth sciences with impact upon the search for 
oil and gas, rather than an emphasis upon petroleum engineering 
studies.

Section 234. Marginal well production incentives

    Section 234 provides royalty rate reductions to be 
determined by the Secretary of the Interior for marginal oil 
and gas wells on federal lands and the OCS and defines the 
volumetric output, price threshold and length of time necessary 
to trigger relief. This provision is intended as a means to 
keeping such production on-line during oil and gas economic 
downturns. The Committee expects the Secretary to devise relief 
akin to that already in regulation for onshore lease 
``stripper'' oil wells whereby the royalty obligation is 
lowered in steps versus the rate of production, i.e., the less 
the output of the well, the lower the rate.

Section 235. Reimbursement for costs of NEPA analyses, documentation 
        and studies.

    Section 235 amends the Mineral Leasing Act to provide for 
reimbursement of costs for certain project-level analyses, 
documentation and studies when conducted by a lessee, operator 
or applicant for an oil and gas lease post-enactment of this 
section, if the Secretary of the Interior determines 
appropriated funds are unavailable to timely prepare such 
environmental materials. The section requires the Secretary to 
promptly issue regulations to implement this section.

                Title III--Geothermal Energy Development

    Geothermal reservoirs are generally classified according to 
their temperature and nature of the reservoir fluid, which can 
range from fresh water to acidic brines. High temperature 
geothermal systems, greater than 300+F, offer the 
greatest output and lowest cost electrical generation, Medium 
temperature systems, 195+ to 300+F, 
usually require the use of higher cost binary generating plants 
to produce electricity. Low temperature systems, less than 
195+F, generally can only be used for direct use 
applications such as space heating, agricultural process heat, 
geothermal heat pumps and spas.
    Based on the 1978 geothermal assessment by the U.S. 
Geological Survey, 12 western States have identified or 
potential high temperature geothermal resources. The total high 
temperature geothermal resource potential in these States is 
estimated at 22,000 megawatts (MW). Only about 2,800 MW of 
electricity in the United States is currently generated using 
geothermal energy. Most of the country's geothermal resources 
are on public land, which accounts for about 75 percent of the 
electrical power generated by geothermal resources. The United 
States leases rights to develop geothermal energy under the 
Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.).
    Most of the provisions in Title III are based on 
information obtained as the result of an oversight hearing held 
on May 3, 2001, by the Subcommittee on Energy and Mineral 
Resources.
    Under the Geothermal Steam Act of 1970, a royalty on 
production of geothermal energy must be paid to the federal 
government--generally 10 to 15 percent of the value of the 
geothermal steam. Since there is no market for the steam 
itself, valuation of the steam requires a ``net-back'' method 
for calculating the royalty due from the value of the 
electricity produced from the steam. That is, the value of the 
electricity is the starting point from which deductions are 
allowed for the operating costs of the generating plant and a 
return on the capital investment in the plant, as well as 
electric transmission costs. The remaining value is the base 
price of the geothermal steam upon which the royalty is levied.
    The capital costs for constructing a geothermal facility 
are higher than for a conventional fossil fuel facility. The 
present royalty scale makes electrical generation from 
geothermal energy less competitive with fossil fuels in normal 
electricity markets. The present royalty system also 
discourages the use of low temperature (less than 195 degrees 
F) geothermal resources.
    One of the objectives of these amendments to the Geothermal 
Steam Act of 1970 is to make geothermal steam more competitive 
with fossil fuels in generating electricity. A lower royalty is 
key to making geothermal energy more competitive. Title III 
caps the royalty rate on geothermal steam at 8 percent and 
encourages investment in new geothermal power facilities or 
expansions of existing plants by allowing a royalty free period 
of three years. The royalty holiday allows the operator to 
recover some capital costs before paying a royalty. The royalty 
holiday expires after five years. Finally, direct use of low 
temperature geothermal resources is encouraged by eliminating 
royalties and substituting a low cost fee system.
    Many of the constraints on geothermal development are due 
to administrative problems. Geothermal development requires the 
timely and reasonable administration of leasing, permitting and 
environmental reviews by federal land management agencies. 
However, applications for geothermal leases covering thousands 
of acres have been awaiting action for years. Permits to site 
geothermal steam-driven electric generating plants often take 
many months or years to process. Environmental reviews are 
unnecessarily extensive, costly and repetitive. In areas where 
an Environmental Impact Statement has been completed, decisions 
by federal agencies have been subject to years of delay and 
appeal.
    Further complicating the process, the Secretary of the 
Interior may lease geothermal energy beneath U.S. Forest 
Service-administered lands only with the consent of the 
Secretary of Agriculture. There does not appear to be any 
common procedure in place for processing requests for this 
approval. Lease applications languish for years in the Forest 
Service bureaucracy. In the Northwest, for example, every known 
geothermal area is on Forest Service land and application for 
geothermal leases have been made for around 1,000,000 acres. 
Only about 50,000 acres have been leased.
    Section 303 of these amendments requires consultation with 
the Secretary of Agriculture to consult with the Secretary of 
the Interior in prescribing terms and conditions of use for 
surface activities on National Forest System lands. Only after 
this consultation, the Secretary of Agriculture may veto a 
geothermal lease if she finds that none of the stipulations 
attached to the lease are sufficient to adequately protect the 
surface lands under the National Forest Management Act of 1976. 
The Committee hopes that this procedure will restore 
accountability to a process that currently is not working.
    Many of the untapped geothermal resources in the western 
United States are on public land reserved for military use. The 
Committee believes that many these geothermal resources can be 
developed in a manner fully consistent with the primary 
military function of thosereservations. Currently, the military 
can issue geothermal leases on these lands, but there is no uniformity 
among terms or royalties for these leases. Unlike leases under the 
Geothermal Steam Act of 1970, the States do not share in revenue 
collected from military geothermal leases. These amendments place 
geothermal leasing of public lands reserved for military use under the 
Geothermal Steam Act of 1970. Leases on these lands are subject to 
approval of the Secretary of the military department concerned. The 
Committee believes that these changes will encourage greater 
development of geothermal resources on federal land and reduce the 
costs to the federal government of program administration. This change 
also restores State participation in revenue derived from public land.

                          Title IV--Hydropower

    Title IV seeks to maximize the benefits received from the 
federal hydropower facilities under the control of the 
Department of Interior. The Secretary of the Interior is 
directed to submit a report to Congress describing alternatives 
for enhancing capability at existing facilities. The Bureau of 
Reclamation provided to the Committee a report titled ``Power 
Uprating Program. * * * to improve hydroelectric generation'' 
on April 21, 1994. The summary of actions taken to produce 
additional hydroelectric power provided in the report requested 
under Title IV should focus on efforts taken after the 
completion of the Uprate program. This report is meant to focus 
on recent, ongoing, and potential activity; not to focus on a 
historical accounting of past activities. Nothing in the 
language should be construed to indicate that the Bureau of 
Reclamation should slow down efforts it is already engaged in 
to provide enhanced capability. This study should not include 
an analysis of building new dams, but should include analysis 
of any potential that might reasonably be considered to add 
power production facilities to existing dams that do not 
currently have such facilities. This title also grants the 
Secretary the authority to install a powerformer at a Bureau of 
Reclamation power plant in Folsom, California. This high 
voltage generator will result in lower losses and therefore 
increased energy output. The word powerformer is used in this 
Title to refer to the newly available technology, and not to 
any specific vendor of the technology. The Secretary is 
directed to study pumps at Department facilities and proceed 
with replacing those that should be based on an economic 
analysis that includes energy savings and the cost of the new 
pump.
    The Department of Interior shall study, report on, and 
implement improvements to operational methods, efficiency of 
operation, and water scheduling practices, used at Bureau of 
Reclamation powerplants to assure these plants are operated in 
a manner that maximizes the power producing potential of these 
plants, and provides as much operational flexibility for power 
production as possible. The hydroelectric power plant 
facilities under the jurisdiction of the Department of the 
Interior are operated for multiple purposes, one of which is 
power production. This title does not require that other uses 
be placed as subordinate to power in the operation of these 
facilities. Since the Power Marketing Administrations posses 
technical expertise relative to the value of the power 
production, the Secretary is directed to consult with them to 
determine and implement measures to maximize that value. In 
addition to coordinating with the Power Marketing 
Administrations regarding these measures, it is the intent of 
the Committee that the Secretary consult with the appropriate 
Power Marketing Administration whenever it considers taking 
action that will affect hydropower generation and the 
operational flexibility currently present at that facility. 
This title also directs the Department of Interior to shift as 
much of its pumping load as possible at Bureau of Reclamation 
facilities to off peak times. This will be done to increase the 
electrical capacity that is available during the on peak 
(daytime) hours when the value of the energy is the highest and 
it is most needed on the electrical grid.

             Title V--Arctic Coastal Plain Domestic Energy

    Title V opens the coastal plain of ANWR to oil and gas 
leasing, subject to what Secretary of the Interior Gale Norton 
testified would be ``the most stringent environmental 
protection requirements ever applied to Federal energy 
production.'' The Coastal Plain is of unique interest for its 
giant energy potential, with estimated oil resources that could 
make it the largest-ever discovery of oil in the United States. 
The U.S. Geological Survey estimates the Coastal Plain holds 
5.7 billion to 16 billion barrels of recoverable oil, with a 
mean estimate of 10.4 billion barrels. These estimates are 
based on highly conservative assumptions as to the recovery 
rate of oil. In reality, through continually improving 
technology, there is considerably higher success in recovering 
oil in Alaska's arctic than is assumed in these estimates. Up 
to 42 billion barrels are estimated to be ``in-place.''
    Even at 10.4 billion barrels, the Coastal Plain's resources 
would be larger than those of the nearby Prudhoe Bay supergiant 
oil field at its discovery. Prudhoe Bay is the largest oil 
field ever discovered in the United States.
    Applying modern technology and methods now used on Alaska's 
North Slope, a cumulative total of only 2,000 acres within the 
entire ANWR would be necessary to produce all oil from the 
Coastal Plain. Wildlife would be fully protected. Experience 
has shown that caribou, fish, birds, polar bears and wildlife 
species are unharmed by oil development in Alaska's arctic. 
Several species have proliferated amidst the environmentally 
sensitive oil operations. The Central Arctic Caribou herd in 
and near the Prudhoe Bay facilities has grown from a population 
of 3,000 right before development begun to 27,000 today a nine-
fold increase during two decades in which Prudhoe Bay and the 
satellite oil fields have delivered more than 14 billion 
barrels to Americans.
    The Department of Fish and Game of the State of Alaska, 
which has responsibility to manage fish and game resources of 
Alaska, has concluded that caribou can and do exist with oil 
development, and that potential impacts can be mitigated so as 
to avoid a significant adverse affect on this and other species 
that use the Coastal Plain.
    The Coastal Plain is the home to Kaktovik, a Native Village 
which is the only community in ANWR. Representatives of this 
area have testified of overwhelming support within the Inupiat 
Eskimo community of Alaska's North Slope for the benefits of 
opening the Coastal Plain.
    Choosing not to develop domestic supergiant oil fields like 
the one believed to underlie the Coastal Plain only guarantees 
that dependence on foreign sources of oil from places like Iraq 
(which is currently providing Americans with a million barrels 
of oil a day), will rise far into the future.
    In the markup, an amendment was approved to add a new 
condition to oil leases on the Coastal Plain. The new condition 
prohibits the export of oil produced from the Coastal Plain. 
While no Alaska North Slope oil is currently exported (none has 
since May 2000), this amendment is an acceptable means to 
ensure that oil underlying federal lands is required to be sent 
only to the people of the United States.

                    Title VI--Historic Preservation

    Section 601 would exempt any privately owned or operated 
pipeline (including all associated compressor stations, taps, 
valves, and meter stations) that is in service or available for 
service as eligible for inclusion on the National Register of 
Historic Places without the consent of the owner. Any pipeline 
and related facility deemed for inclusion on the National 
Register prior to the date of enactment shall no longer be 
eligible for inclusion unless the owner of the pipeline gives 
written consent and agrees to such eligibility.

  Title VII--Conservation of Energy by the Department of the Interior

    Title VII allows the Secretary of the Interior to conduct a 
study to identify and recommend opportunities for conserving 
energy by reducing the amount of energy used by facilities of 
the Department of the Interior and to encourage the use of 
alternative fuels. This provision was offered by Congressman 
John E. Peterson.

                            Committee Action

    Resources Committee Chairman James V. Hansen (R-UT) 
introduced H.R. 2436 on July 10, 2001. The bill was originally 
cosponsored by Congressman Don Young (R-AK), Congressman W.J. 
``Billy'' Tauzin (R-LA), Congresswoman Barbara Cubin (R-WY), 
Congressman Mac Thornberry (R-TX), Congressman C.L. ``Butch'' 
Otter (R-ID) and Congressman Ken Calvert (R-CA). The bill was 
referred to the Committee on Resources and additionally to the 
Committee on Energy and Commerce. The Committee on Resources 
held a hearing on the bill on July 11, 2001. On July 17, 2001, 
the Committee met to consider the bill. As follows is a list of 
the amendments which were offered at the markup, and their 
disposition:
    Congressman Nick J. Rahall II (D-WV) offered an amendment 
in the nature of a substitute, which was not adopted by a roll 
call as follows:


    Congressman Edward Markey (D-MA) offered an amendment to 
strike Title V (Arctic Coastal Plain Domestic Energy) of the 
bill, which was not adopted by roll call vote as follows:



    Congressman Peter A. DeFazio (D-OR) offered an amendment to 
prohibit the export of oil produced under a lease issued under 
Title V of the bill. The amendment was adopted by unanimous 
consent.
    Congressman Rush D. Holt (D-NJ) offered an amendment to 
authorize a National Academy of Sciences study of the 
availability of sufficient water to conduct various activities 
associated with the activities authorized by Title V of the 
bill. The amendment was not adopted by voice vote.
    Congressman Ken Calvert (R-CA) offered an amendment to 
Title IV (Hydropower) relating to power rates and cost sharing 
for Bureau of Reclamation projects. The amendment was adopted 
by unanimous consent.
    Congressman Ron Kind (D-WI) offered an amendment to strike 
Title II (Oil and Gas Development). The amendment was not 
adopted by a roll call vote as follows:


    Congressman Jay Inslee (D-WA) offered an amendment to 
strike sections 225 (Consultation with Secretary of 
Agriculture) and section 303 (Amendments relating to leasing on 
Forest Service lands). The amendment was not adopted by voice 
vote.
    Congressman Scott McInnis (R-CO) offered an amendment to 
sections 225 and 303 to clarify and condition the authority of 
the Secretary of Agriculture relating to the granting of oil 
and gas and geothermal leases. Congressman Peter DeFazio 
offered an amendment to the McInnis amendment to strike the two 
paragraphs regarding the delegation of authority from the 
Secretary. The DeFazio amendment to the McInnis was not adopted 
on a roll call vote as follows:



    The McInnis amendment was then adopted by voice vote.
    Congressman George Miller (D-CA) offered an amendment to 
strike section 224 (Limitation on cost recovery for 
applications) and insert a new section 224 (Cost recovery for 
oil and gas leasing). The amendment failed by a roll call vote 
as follows:



    Congresswoman Barbara Cubin (R-WY) offered an amendment to 
change the name of the oil and gas technology transfer centers 
authorized by section 233 to ``Cooperative Oil and Gas Research 
and Information Center''. The amendment was adopted by voice 
vote.
    Congressman Betty McCollum (D-MN) offered and withdrew an 
amendment regarding project labor agreements relating to lease 
sales conducted under section 202 (Lease sales in Western and 
Central Planning Area of the Gulf of Mexico).
    Congressman Mac Thornberry (R-TX) offered an amendment to 
prohibit privately owned and operated pipelines from being 
eligible for inclusion on the National Register of Historic 
Places and to mandate the removal of any pipelines currently on 
the Register without the written consent of the owner. The 
amendment was adopted by voice vote.
    Congressman Ron Kind offered and withdrew an amendment 
relating to increased authorizations of appropriations for the 
Land and Water Conservation Fund.
    Congressman John E. Peterson (R-PA) offered an amendment 
regarding energy conservation by the Department of the 
Interior. The amendment was adopted by voice vote.
    Congressman Mark Udall (R-CO) offered an amendment to limit 
the energy resources inventoried on federal lands and limit the 
federal lands included in the inventory. The amendment was not 
adopted by a roll call vote as follows:


    Congressman Jim Gibbons (R-NV) offered an amendment to 
clarify the application of royalty relief to expanded 
geothermal facilities. The amendment was adopted by voice vote.
    Congressman DeFazio offered an amendment requiring, as part 
of a report to Congress, the consideration of increased 
hydroelectric power production on irrigation, fish, wildlife, 
Indian tribes, river health, water quality, navigation, 
recreation, fishing and flood control. The amendment was 
adopted by voice vote.
    Congressman Inslee offered an amendment requiring a 
consideration of pipeline safety as part of a pipeline rights-
of-way study under section 101 of the bill. A point of order 
was sustained against the amendment for violating rule XVI of 
the Rules of the House of Representatives.
    Congresswoman Hilda L. Solis (D-CA) offered an amendment to 
require consultation with Indian tribes as part of the pipeline 
rights-of-way study required under section 101 of the bill. The 
amendment was adopted by voice vote.
    Congressman Inslee offered an amendment to remove the 
limits on the inventory of energy production potential of all 
federal public lands under section 102. The amendment was 
adopted by voice vote.
    Congressman Inslee offered an amendment regarding the 
enhancement of energy efficiency in the management of federal 
lands. Congressman W. J. ``Billy'' Tauzin (R-LA) offered an 
amendment to the Inslee amendment to insert the word 
``economically'' before ``practical''. The Tauzin amendment to 
the Inslee amendment was adopted by voice vote. The Inslee 
amendment, as amended, was adopted by voice vote.
    H.R. 2436, as amended, was then ordered favorably reported 
to the House of Representatives by a roll call vote as follows:


            Committee Oversight Findings and Recommendations

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Resources' oversight findings and recommendations 
are reflected in the body of this report.

                   Constitutional Authority Statement

    Article I, section 8 and Article IV, section 3 of the 
Constitution of the United States grant Congress the authority 
to enact this bill.

                    Compliance With House Rule XIII

    1. Cost of Legislation.--Clause 3(d)(2) of rule XIII of the 
Rules of the House of Representatives requires an estimate and 
a comparison by the Committee of the costs which would be 
incurred in carrying out this bill. However, clause 3(d)(3)(B) 
of that rule provides that this requirement does not apply when 
the Committee has included in its report a timely submitted 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974. The Committee has requested 
but has not yet received a cost estimate from the Congressional 
Budget Office. The Committee believes that enactment of H.R. 
2436 will both raise revenues for the federal treasury and 
reduce receipts; however, the net result will not have a 
significant effect on the budget of the United States.
    2. Congressional Budget Act.--As required by clause 3(c)(2) 
of rule XIII of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, this 
bill does not contain any new budget authority, credit 
authority, or an increase or decrease in tax expenditures. The 
Committee believes that enactment of H.R. 2436 will result in 
increased revenue to the United States, as well as a loss of 
receipts. The net result will not have a significant effect on 
the budget of the United States. In addition, the Committee 
believes that the bill authorizes a minor amount of direct 
spending.
    3. General Performance Goals and Objectives.--As required 
by clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill is to provide secure energy supplies for 
the people of the United States.
    4. Congressional Budget Office Cost Estimate.--Under clause 
3(c)(3) of rule XIII of the Rules of the House of 
Representatives and section 403 of the Congressional Budget Act 
of 1974, the Committee has requested but not received a cost 
estimate for this bill from the Director of the Congressional 
Budget Office.

                    Compliance with Public Law 104-4

    This bill contains no unfunded mandates.

                Preemption of State, Local or Tribal Law

    This bill is not intended to preempt any State, local or 
tribal law.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

MINERAL LEASING ACT

           *       *       *       *       *       *       *


  Sec. 17. (a) * * *

           *       *       *       *       *       *       *

  [(h) The Secretary of the Interior may not issue any lease on 
National Forest System Lands reserved from the public domain 
over the objection of the Secretary of Agriculture.]
  (h)(1) In issuing any lease on National Forest System lands 
reserved from the public domain, the Secretary of the Interior 
shall consult with the Secretary of Agriculture in determining 
stipulations on surface use under the lease.
  (2)(A) A lease on lands referred to in paragraph (1) may not 
be issued if the Secretary of Agriculture determines, after 
consultation under paragraph (1), that the terms and conditions 
of the lease, including any prohibition on surface occupancy 
for lease operations, will not be sufficient to adequately 
protect such lands under the National Forest Management Act of 
1976 (16 U.S.C. 1600 et seq.).
  (B) The authority of the Secretary of Agriculture under this 
paragraph may be delegated only to the Undersecretary of 
Agriculture for Natural Resources and Environment.

           *       *       *       *       *       *       *



reimbursement for costs of certain analyses, documentation, and studies


  Sec. 38. (a) In General.--The Secretary of the Interior shall 
reimburse a person who is a lessee, operator, operating rights 
owner, or applicant for an oil or gas lease under this Act for 
costs incurred by the person in preparing any project-level 
analysis, documentation, or related study required under the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.) with respect to the lease, through royalty credits 
attributable to the lease, unit agreement, or project area for 
which the analysis, documentation, or related study is 
prepared.
  (b) Conditions.--The Secretary shall provide reimbursement 
under subsection (b) only if--
          (1) adequate funding to enable the Secretary to 
        timely prepare the analysis, documentation, or related 
        study is not appropriated;
          (2) the person paid the costs voluntarily; and
          (3) the person maintains records of its costs in 
        accordance with regulations prescribed by the 
        Secretary.

           *       *       *       *       *       *       *

                              ----------                              


       SECTION 5 OF THE OUTER CONTINENTAL SHELF LANDS ACT OF 1953

  Sec. 5. Administration of Leasing of the Outer Continental 
Shelf.--(a) * * *

           *       *       *       *       *       *       *

  (k) Suspension of Operations for Subsalt Exploration.--
Notwithstanding any other provision of law or regulation, to 
prevent waste caused by the drilling of unnecessary wells and 
to facilitate the discovery of additional hydrocarbon reserves, 
the Secretary may grant a request for a suspension of 
operations under any lease to allow the reprocessing and 
reinterpretation of geophysical data to identify and define 
drilling objectives beneath allocthonus salt sheets.

           *       *       *       *       *       *       *

                              ----------                              


GEOTHERMAL STEAM ACT OF 1970

           *       *       *       *       *       *       *


  Sec. 5. (a) In General.--Geothermal leases shall provide 
for--
          [(a)] (1) a royalty of [not less than 10 per centum 
        or more than 15 per centum] not more than 8 per centum 
        of the amount or value of steam, or any other form of 
        heat or energy derived from production under the lease 
        and sold or utilized by the lessee or reasonably 
        susceptible to sale or utilization by the lessee;
          [(b)] (2) a royalty of not more than 5 per centum of 
        the value of any byproduct derived from production 
        under the lease and sold or utilized or reasonably 
        susceptible of sale or utilization by the lessee, 
        except that as to any byproduct which is a mineral 
        named in section 1 of the Mineral Leasing Act of 
        February 25, 1920, as amended (30 U.S.C. 181), the rate 
        of royalty for such mineral shall be the same as that 
        provided in that Act and the maximum rate of royalty 
        for such mineral shall not exceed the maximum royalty 
        applicable under that Act;
          [(c)] (3) payment in advance of an annual rental of 
        not less than $1 per acre or fraction thereof for each 
        year of the lease. If there is no well on the leased 
        lands capable of producing geothermal resources in 
        commercial quantities, the failure to pay rental on or 
        before the anniversary date shall terminate the lease 
        by operation of law: Provided, however, That whenever 
        the Secretary discovers that the rental payment due 
        under a lease is paid timely but the amount of the 
        payment is deficient because of an error or other 
        reason and the deficiency is nominal, as determined by 
        the Secretary pursuant to regulations prescribed by 
        him, he shall notify the lessee of the deficiency and 
        such lease shall not automatically terminate unless the 
        lessee fails to pay the deficiency within the period 
        prescribed in the notice: Provided further, That where 
        any lease has been terminated automatically by 
        operation of law under this section for failure to pay 
        rental timely and it is shown to the satisfaction of 
        the Secretary of the Interior that the failure to pay 
        timely the lease rental was justifiable or not due to a 
        lack of reasonable diligence, he in his judgment may 
        reinstate the lease if--
                  [(1)] (A) a petition for reinstatement, 
                together with the required rental, is filed 
                with the Secretary of the Interior; and
                  [(2)] (B) no valid lease has been issued 
                affecting any of the lands in the terminated 
                lease prior to the filing of the petition for 
                reinstatement; and
          [(d)] (4) a minimum royalty of $2 per acre or 
        fraction thereof in lieu of rental payable at the 
        expiration of each lease year for each producing lease, 
        commencing with the lease year beginning on or after 
        the commencement of production in commercial 
        quantities. For the purpose of determining royalties 
        hereunder the value of any geothermal steam and 
        byproduct used by the lessee and not sold and 
        reasonably susceptible of sale shall be determined by 
        the Secretary, who shall take into consideration the 
        cost of exploration and production and the economic 
        value of the resource in terms of its ultimate 
        utilization.
  (b) Exemption for Use of Low Temperature Resources.--
          (1) In general.--In lieu of any royalty or rental 
        under subsection (a), a lease for qualified development 
        and direct utilization of low temperature geothermal 
        resources shall provide for payment by the lessee of an 
        annual fee of not less than $100, and not more than 
        $1,000, in accordance with the schedule issued under 
        paragraph (2).
          (2) Schedule.--The Secretary shall issue a schedule 
        of fees under this section under which a fee is based 
        on the scale of development and utilization to which 
        the fee applies.
          (3) Definitions.--In this subsection:
                  (A) Low temperature geothermal resources.--
                The term ``low temperature geothermal 
                resources'' means geothermal steam and 
                associated geothermal resources having a 
                temperature of less than 195 degrees 
                Fahrenheit.
                  (B) Qualified development and direct 
                utilization.--The term ``qualified development 
                and direct utilization'' means development and 
                utilization in which all products of geothermal 
                resources, other than any heat utilized, are 
                returned to the geothermal formation from which 
                they are produced.

           *       *       *       *       *       *       *

  Sec. 15. (a) * * *
  (b)(1) Geothermal leases for lands withdrawn or acquired in 
aid of functions of the Department of Agriculture may be issued 
only [with the consent of, and] after consultation with the 
Secretary of Agriculture and subject to such terms and 
conditions as may be prescribed by, [the head of that 
Department] the Secretary of Agriculture to insure adequate 
utilization of the lands for the purposes for which they were 
withdrawn or acquired. Geothermal leases for lands to which 
section 24 of the Federal Power Act, as amended (16 U.S.C. 
818), is applicable, may be issued only with the consent of, 
and subject to, such terms and conditions as the Federal Power 
Commission may prescribe to insure adequate utilization of such 
lands for power and related purposes.
  (2)(A) A geothermal lease for lands withdrawn or acquired in 
aid of functions of the Department of Agriculture may not be 
issued if the Secretary of Agriculture, after the consultation 
required by paragraph (1), determines that no terms or 
conditions, including a prohibition on surface occupancy for 
lease operations, would be sufficient to adequately protect 
such lands under the National Forest Management Act of 1976 (16 
U.S.C. 1600 et seq.).
  (B) The authority of the Secretary of Agriculture under this 
paragraph may be delegated only to the Undersecretary of 
Agriculture for Natural Resources and Environment.

           *       *       *       *       *       *       *



reimbursement for costs of certain analyses, documentation, and studies


  Sec. 30. (a) In General.--The Secretary of the Interior shall 
reimburse a person who is a lessee, operator, operating rights 
owner, or applicant for a lease under this Act for costs 
incurred by the person in preparing any project-level analysis, 
documentation, or related study required under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) with 
respect to the lease, through royalty credits attributable to 
the lease, unit agreement, or project area for which the 
analysis, documentation, or related study is prepared.
  (b) Conditions.--The Secretary shall provide reimbursement 
under subsection (a) only if--
          (1) adequate funding to enable the Secretary to 
        timely prepare the analysis, documentation, or related 
        study is not appropriated;
          (2) the person paid the costs voluntarily; and
          (3) the person maintains records of its costs in 
        accordance with regulations prescribed by the 
        Secretary.

           *       *       *       *       *       *       *

                              ----------                              


              SECTION 2689 OF TITLE 10, UNITED STATES CODE

Sec. 2689. Development of geothermal energy on military lands

  The Secretary of a military department may develop, or 
authorize the development of, any geothermal energy resource 
within lands under the Secretary's jurisdiction, [including 
public lands,] other than public lands, for the use or benefit 
of the Department of Defense if that development is in the 
public interest, as determined by the Secretary concerned, and 
will not deter commercial development and use of other portions 
of such resource if offered for leasing.

           *       *       *       *       *       *       *

                              ----------                              


SECTION 1003 OF THE ALASKA NATIONAL INTERESTS LANDS CONSERVATION ACT OF 
                                  1980

                      [prohibition on development

  [Sec. 1003. Production of oil and gas from the Arctic 
National Wildlife Refuge is prohibited and no leasing or other 
development leading to production of oil and gas from the range 
shall be undertaken until authorized by an Act of Congress.]

                            DISSENTING VIEWS

    We oppose H.R. 2436 as reported by the Resources Committee 
and recommend that our colleagues resist its inclusion in 
whatever ``energy'' package the House ultimately considers.
    As reported by the committee, the bill represents an 
unprecedented assault on America's resources and on American 
taxpayers under the guise of contributing to our energy 
security. The fact of the matter is that if the Committee had 
simply considered legislative initiatives to implement 
President Bush's national energy policy, the only item included 
in H.R. 2436 would have been provisions to open the Arctic 
National Wildlife Refuge to oil and gas development.
    Instead, the legislation represents a grab bag of goodies 
for Big Oil--from granting an unfettered ability to drill on 
federal lands to declaring a $7.4 billion royalty holiday at 
the taxpayer's expense.
    Obviously, the message sent by the bipartisan trifecta of 
amendments to the Interior Appropriations bill recently adopted 
by the House--prohibiting energy development in national 
monuments, postponing lease sale 181 off the coast of Florida, 
and maintaining hardrock mining protections--has been lost on 
the supporters of H.R. 2436. Americans, and the majority of 
their Representatives in this body, do not believe we must 
sacrifice our heritage and our children's future to achieve 
greater energy self-sufficiency in this fashion.
    Committee Democrats believe that there is a need for a 
better national energy policy. During consideration of H.R. 
2436, we offered an alternative to the bill. Unlike H.R. 2436, 
the Democratic alternative was based on the belief that our 
Nation's energy policy must be balanced. In our bid for greater 
energy security, we must take into account the social and 
environmental costs of energy development as well. That concept 
is central to the alternative we offered. Rather than 
exploiting environmentally sensitive areas, we proposed 
facilitating the delivery of over 35 trillion cubic feet of gas 
from developed fields in the North Slope to the lower 48 States 
with the benefit of ``Buy American'' and project labor 
agreement protections.
    Rather than grant a multibillion dollar royalty holiday to 
oil and gas companies, we proposed that the American people 
receive a fair return for the disposition of their resources by 
cracking down on royalty underpayments. Rather than potentially 
disrupting the distribution of western water to farmers and 
cities by emphasizing hydropower over all other purposes, we 
proposed to relieve transmission constraints in the western 
power grid.
    The Democratic alternative was also about empowerment. It 
recognized the contribution Indian Country can make to our 
national energy mix, and the pressing need to help the tribes 
achieve energy self-sufficiency. It sought to empower U.S. 
citizens in the insular areas to have a greater sense of energy 
security as well.
    And our alternative was about endowment. The endowment to 
coastal communities of pristine beaches, viable wildlife 
habitat and the economic prosperity which accompanies these 
attributes. An endowment to the American people of a fair 
return for the disposition of their energy resources by 
combating royalty underpayments. The endowment to coalfield 
communities of the necessary resources to combat the constant 
threat they face from abandoned coal mines. And the endowment 
to America, that our most cherished natural resources will 
receive attention from the Land and Water Conservation Fund.
    None of these values are reflected in H.R. 2436 as reported 
by the Resources Committee. We oppose H.R. 2436 because it is 
little more than a thinly disguised boon to the oil and gas 
industry, with little more than window dressing bestowed on 
conservation and alternative energy alternatives. Our specific 
concerns relating to each title of the bill follow.

   Title I--General Provisions To Protect Energy Supply and Security

    Contrary to the will of the House as expressed in the 
recent Interior Appropriations amendment prohibiting 
development in national monuments, H.R. 2436 would require the 
Interior Secretary to conduct a survey of all federal lands, 
with the exception of National Parks and wilderness areas for 
their coal and geothermal energy potential. Lands subject to 
this provision would include National Park System lands other 
than National Parks, national wildlife refuges, national 
forests, areas of critical environmental concern, national 
marine sanctuaries, national conservation areas, national wild 
and scenic rivers, national trails and wilderness study areas.

                   Title II--Oil and Gas Development

                    subtitle a--offshore oil and gas

    Title II, as amended, provides ``royalty relief'' to major 
oil and gas companies seeking new leases on the Outer 
Continental Shelf in the Gulf of Mexico. In lease sales 
occurring over the next two years, the Secretary of the 
Interior would be required--regardless of whether there is any 
economic justification--to give-away, royalty-free, ``not less 
than'' the following:
          --17.5 million barrels of oil equivalent for fields 
        in water depths of 200 to 400 meters;
          --52.5 million barrels of oil equivalent for fields 
        in water depths of 400 to 800 meters;
          --9 million barrels of oil equivalent for each lease 
        in water depths of 800 to 1,600 meters;
          --12 million barrels of oil equivalent for each lease 
        in water depths of more than 1,600 meters.
    By waiving federal royalty collections on huge amounts of 
publicly--owned oil and gas, title II constitutes a significant 
taxpayer subsidy--for the oil and gas industry at a time of 
high prices and record profits. Informal estimates from the 
Minerals Management Service are that the two years of royalty-
free lease sales required by title II would cost at least $7.4 
billion in lost royalty revenues in future years.
    The ``royalty relief'' provided in title II is more 
generous than that authorized by Congress in the OCS Deep Water 
Royalty Relief Act in 1995. The controversial 1995 Act was 
justified at the time by its proponents on the basis of 
countering low oil and gas prices and the need to encourage 
emerging technology in frontier deep water areas of the OCS. 
Neither rationale exists in 2001 since prices are high and 
technology has evolved so that operating in water deeper than 
200 meters is commonplace. There is no evidence that major oil 
companies will abandon promising areas in the Gulf of Mexico 
absent additional ``royalty relief'' in new lease sales.
    Ironically, George W. Bush attacked Vice-President Gore for 
supporting ``royalty relief'' for deep water OCS drillers 
during the 2000 campaign, criticizing it as ``giving major oil 
companies a huge tax break.'' ``Royalty relief'' was not 
included in the President's energy legislative initiatives 
recently submitted to Congress.

    Subtitle B--Improvements to Federal Oil and Gas Lease Management

    The provisions of this subtitle largely seek to reduce or 
outright eliminate restrictions on onshore oil and gas leasing 
activities on federal lands. Four provisions in particular 
would achieve this goal. First, the subtitle includes a 
legislative directive to the Interior Secretary to eliminate 
``unwarranted'' denials of lease issuance and restrictions on 
lease operations. Although the term ``unwarranted'' is not 
defined, the intent apparently is to eliminate restrictions 
commonly placed in leases aimed at protecting critical wildlife 
habitat, cultural and historical resources, or environmentally 
sensitive areas.
    Second, the subtitle requires that BLM and Forest Service 
lands open to oil and gas leasing be made available without 
lease stipulations that are more stringent than those which may 
be contained in applicable State oil and gas law. The obvious 
effect of this provision is to prohibit restrictions on lease 
operations that may be required under the Endangered Species 
Act or other federal environmental statutes.
    Third, the subtitle originally stripped the Forest Service 
of its authority to ``consent'' to leases proposed to be issued 
in units of the National Forest System, paving the way for 
lease issuance in roadless areas as well as other areas deemed 
sensitive by the Forest Service. While an amendment adopted by 
the Committee gives the Secretary of Agriculture the authority 
veto a decision by the Department of the Interior to open 
Forest Service lands to oil and gas leasing, it prohibits the 
Secretary from delegating this decision-making authority to the 
Forest Service. As such, it removes land management decisions 
form professional land managers in the field and instead turns 
them over to political appointees in Washington.
    Finally, the subtitle would require taxpayers to subsidize 
the costs industry incurs in preparing any documents, such as 
environmental analyses, related to leasing. For environmental 
compliance documents, the Interior Secretary would provide a 
royalty reduction kickback to companies to reimburse them for 
their costs.

                       Subtitle C--Miscellaneous

    In a nod to the Houston-based Anadarko corporation, which 
reported cash flow from operations during the first quarter of 
2001 of $1.1 billion, up from $135 million in the first quarter 
of 2000, the bill would allow the Interior Secretary to 
indefinitely suspend the term of existing subsalt leases so 
that Anadarko would not have to pay to drill a well in order to 
keep its subsalt lease. This company is not hurting. In the 
words of its chairman and CEO, their ``first quarter earnings 
coming within striking distance of earning almost as much as 
[they] did for all of 2000, which was $796 million.''
    In another gift to Big Oil, and in the face of evidence 
that suggests taking royalties in-kind instead of in cash 
actually costs the government revenues, the bill would 
permanently authorize the Secretary to take, market, process 
and transport oil and gas taken in-kind. In other words, 
companies could make their royalty payments in the form of the 
actual oil and gas rather than in cash. The MMS would then be 
saddled with the responsibility of marketing the products in 
order to recoup a royalty. For example, MMS recently completed 
an RIK pilot program in Wyoming that lost $3 million when 
compared to fair market value of the oil and gas.
    Finally, the bill would provide automatic royalty holidays 
for ``marginal'' wells, in theory a boon to smaller domestic 
oil and gas producers. However, without any justification, the 
bill sets up new definitions for marginal wells; i.e., in the 
tax code a marginal well is one producing 15 barrels of oil 
equivalent per day while in this subtitle a marginal well 
onshore is one producing 30 barrels of oil equivalent per day 
onshore and 300 barrels offshore. Under this new definition, 
most onshore wells would qualify for royalty relief. The bill 
does not specify the reduced rate, whether any royalty payment 
would be required, or the duration of the royalty holiday. 
There is also no linkage to the size of the producer. As such, 
major international oil companies would benefit as well as the 
smaller independent companies.

                Title III--Geothermal Energy Development

    For no apparent reason, this title would grant a three-
year, blanket exemption from the payment of royalties for 
geothermal leases which commence production within five years 
after enactment of the bill. Provisions in this title would 
also reduce the federal geothermal royalty rate from a range of 
10% to 15% to a flat 8% rate.
    As with onshore oil and gas leasing, this title also strips 
Forest Service managers in the field of the authority to 
``consent'' to geothermal leases proposed to be issued in units 
of the National Forest System, paving the way for lease 
issuance in roadless areas, as well as other areas deemed 
sensitive by the Forest Service. Also as is the case for 
onshore oil and gas leasing, this title would require taxpayers 
to subsidize the costs industry incurs in preparing any 
environmental compliance documents related to leasing through a 
royalty reduction kickback to companies.
    Finally, this title would open all military land to 
geothermal leasing. Committee Democrats are unaware of the 
reason for this particular provision. As a general matter, 
military bases and otherlands under the administrative 
jurisdiction of the Defense Department are not subject to federal 
mineral and mining laws.

                          Title IV--Hydropower

    Provisions of this title would require the preparation of a 
report to Congress on hydropower facilities, detailing their 
capabilities and cost estimates.
    The title would also authorize the installation of a 
powerformer at the Bureau of Reclamation power plant in Folsom, 
CA. Costs incurred by the U.S. would be treated as reimbursable 
costs and bear interest at long-term borrowing rates.
    Provisions in the title would require preparation of a 
report on pump replacement at unidentified facilities, 
presumably owned by the Bureau of Reclamation or BIA, and would 
mandate pump replacement when the benefits were greater than 
the costs. There is no requirement that the environmental 
effects of pump replacement be considered and there is no 
requirement that the size or capacity of the new pumps be 
controlled to avoid environmental damage over and above that 
already attributable to project pumping.
    The title would require a report to Congress on the 
potential for increased operational efficiencies of hydropower 
facilities under the jurisdiction of the Interior Secretary. 
This would include studies of essentially all Bureau of 
Reclamation projects with hydroelectric facilities, e.g., 
Hoover Dam, Glen Canyon Dam, Flaming Gorge Dam, all of the 
Columbia River Bureau of Reclamation projects, and Shasta and 
Folsom Dams in California.
    Consideration of revised operating criteria for these 
projects is highly controversial because of the potential for 
reallocation of project water supplies, conflicts with 
endangered species, and severe and irreversible environmental 
impacts. The bill makes no provision for considering 
environmental issues.

          Title V--Arctic National Wildlife Refuge Development

    Title V repeals provisions of the Alaska National Interest 
Lands Act of 1980 and opens 1.5 million acres of the Arctic 
National Wildlife Refuge to oil and gas leasing and 
development. The Department of the Interior, which opposed 
leasing during the Clinton Administration, has described this 
area--the coastal plain--as the ``biological heart'' of the 
Arctic Refuge.
    The Arctic Refuge is the only area on the North Slope of 
Alaska that has been set aside by Congress as off-limits to oil 
and gas leasing. Areas currently open to leasing include state-
owned lands at Prudhoe Bay and Federal, public lands in the 23-
million-acre National Petroleum Reserve-Alaska (NPR-A) and the 
Outer Continental Shelf. The Arctic Refuge was first protected 
as an internationally important wildlife conservation area by 
the Eisenhower Administration over four decades ago and 
designated a 19-million-acre national wildlife refuge by 
Congress in 1980.
    Title V authorizes oil and gas leasing in the Arctic Refuge 
under broad exemptions from environmental laws. For example, 
the title exempts oil and gas leasing in the Arctic Refuge from 
the National Wildlife System Administration Act of 1996's 
requirements that such activities be determined to be 
``compatible'' with the conservation purposes of the refuge. 
Title V also dictates that a 1987 Environmental Impact 
Statement prepared by the Reagan Administration satisfies 
National Environmental Policy Act and waives any further ``no-
action'' analysis, thus assuring that leasing will be insulated 
from legal challenges and can move forward no matter what the 
potential environmental consequences.
    Title V also arbitrarily restricts the ability of the Fish 
and Wildlife Service to manage caribou calving and other 
sensitive areas by setting a limit of 45,000 acres--only 3 
percent of the 1.5 million-acre coastal plain--which may be 
administratively protected from development.
    Under existing law, not affected by Title V, ninety percent 
of any revenues from Arctic Refuge oil and gas leasing would go 
to the State of Alaska with only ten percent going to the 
Federal government (generally onshore leasing revenues are 
split 50/50).
    Even if oil were to be discovered in economic quantities, 
the lag time to bring Refuge oil to market (including expensive 
construction of production and delivery system infrastructure) 
would likely be over a decade or more.

                                   Nick J. Rahall II.
                                   George Miller.
                                   Ed Markey.
                                   Peter DeFazio.
                                   Frank Pallone.
                                   Donna Christensen.
                                   Ron Kind.
                                   Jay Inslee.
                                   Grace Napolitano.
                                   Hilda Solis.
                                   Adam Smith.
                                   Dale Kildee.
                                   Betty McCollum.
                                   Tom Udall.
                                   Rush Holt.
                                   James McGovern.
                                   Anibal Acevedo-Vila.
                                   Mark Udall.

           ADDITIONAL DISSENTING VIEWS OF HON. NICK J. RAHALL

    During the Resources Committee's July 17, 2001, markup of 
H.R. 2436, the majority of the Members of the Committee's 
Democratic Caucus supported an alternative to the bill. In our 
view, the Democratic alternative recognizes the need for a 
coherent, comprehensive national energy policy. In contrast to 
the Republican approach, the Democratic alternative relies on 
the recognition that under existing law the vast majority of 
federal lands are currently available for energy development, 
and that concern for the environment and social needs are 
equally important to development of energy resources. A summary 
of our alternative follows.

              Title I--Alaska Natural Gas Pipeline Project

    Title I would facilitate the construction of the Alaska 
Natural Gas Pipeline originally authorized by Congress in 1976. 
The provision would enhance the delivery of 35 trillion cubic 
feet of natural gas already discovered in existing development 
fields to the lower 48 States through the construction of a 
pipeline delivery system that follows the Alaska Highway from 
the North Slope to Fairbanks and east to supply U.S. markets. 
Annual U.S. natural gas consumption is about 23 trillion cubic 
feet. The title also includes a ``Buy America'' provision for 
portions of the pipeline built on federal lands and requires 
the development of a project labor agreement to govern 
construction activities.

         Title II--Western Area Power Administration Provisions

    Title II would provide additional authority to the 
Administrator of the Western Area Power Administration to take 
such actions as necessary to relieve power transmission 
constraints, including construction of new facilities, in 
accordance with all applicable provisions of Federal law and in 
coordination with State authorities. Any new transmission 
capacity would be available to consumers on nondiscriminatory 
basis. The Bonneville Power Administrator has similar 
authority.

 Title III--Energy Alternatives and Efficiency Regarding Federal Lands

    Title III would require the Interior Secretary to survey 
federal lands, except for federally protected areas, for their 
potential to be developed for solar and wind power electrical 
energy generating facilities. The provision also requires the 
Secretary to inventory the extent of geothermal resources 
within the U.S., except for federally protected areas, and 
determine whether impediments exist to its efficient 
development for electricity generation. A provision in the 
title also requires the Secretary to conduct an assessment of 
U.S. ocean thermal resources except for OCS areas under 
moratoria. In addition, the title requires the Secretary to 
conduct a survey of directional oil and gas drilling on federal 
lands in order to assess its benefits as a means of mitigating 
environmental impacts. Finally, provisions in the title 
encourage the Secretaries of Interior, Agriculture and Commerce 
to incorporate energy efficient technologies in public and 
administrative buildings under their jurisdiction and also to 
utilize energy efficient vehicles in natural resources 
management.

                        Title IV--Indian Energy

    Title IV would make a number changes in existing law to 
empower Indian country to achieve energy self-sufficiency as 
well as to contribute to the national energy mix. Provisions in 
the title would expand an existing loan and grant program for 
energy development and electrical generation activities on 
tribal lands; require the Interior Secretary, as trustee, to 
timely review agreements and leases entered into between tribes 
and energy developers to insure the tribes are accruing 
appropriate financial benefits and identify barriers to energy 
development on Indian land; require the Western Power 
Administration to provide transmission access for wind power 
generating facilities developed on tribal lands within its 
service area; and remove barriers to energy resource activities 
in Indian country due to State taxation issues.

                 Title V--Insular Areas Energy Security

    Title V would hold the Secretary, in consultation with the 
Energy Secretary and the heads of insular governments, 
responsible for updating the 1982 Territorial Energy 
Assessment, which is a comprehensive energy report on 
consumption, importation, and potential for indigenous 
alternative energy that can be used by insular areas. The 
updated assessment would also include recommendations to reduce 
the reliance on imported energy and a plan to protect energy 
distribution lines from the effects caused by hurricanes and 
typhoons. Title V also includes language authorizing the 
Interior Secretary to grant financial assistance for projects 
to protect electrical power and distribution lines.

                      Title VI--Coastal Protection

    Title VI would extend through June 30, 2012, the moratoria 
on OCS oil and gas leasing included in annual Interior 
Appropriations bills thereby alleviating the need to enact it 
annually. The date is consistent with Presidential 
determinations made in 1998. The areas included in the 
moratoria are the East Coast, Eastern Gulf, West Coast and the 
North Aleutian area in Bristol Bay, Alaska. Also include are 
national marine sanctuaries (most of which are included in 
areas subject to the annual appropriations moratoria) and the 
Northwest Hawaiian Islands Coral Reef Reserve.

                       Title VII--Royalty Reform

    Title VII would insure the American public receives just 
compensation from the development of oil and gas resources on 
federal lands and waters by trebling existing fines and 
penalties for under-reporting, or short-changing, royalty 
obligations to the government. The existing fines were last 
modified in 1982.

          Title VIII--Reclamation of Abandoned Coal Mine Sites

    Title VIII would reauthorize the collection of fees paid by 
the coal industry that finance efforts under the Abandoned Mine 
Reclamation Fund through the year 2011 in order to provide 
sufficient revenues to complete the reclamation of all high 
priority public health and threatening abandoned coal mine 
sites. The provision recognizes that a balanced energy policy 
should include measures to offset the potential adverse effects 
on land and water resources due to energy development 
activities.

         Title IX--Land and Water Conservation Fund Enhancement

    Title IX would double the Land and Water Conservation 
Fund's authorized annual use of receipts generated by Outer 
Continental Shelf oil and gas leasing activities from $900 
million to $1.8 billion through 2015. The provision also 
provides for a 50/50 share of the receipts between federal and 
State governments (as provided for in the CARA legislation). 
Since 1982, the Department has collected $110.4 billion from 
onshore and offshore leases. Over $16.3 billion of those 
resources have gone to fund the Land and Water Conservation 
Fund. The LWCF authorized provision further represents the need 
to mitigate energy development through conservation programs.

                                                 Nick J. Rahall II.

   ADDITIONAL DISSENTING VIEWS OF HON. RON KIND AND HON. NICK RAHALL

    Most of the attention on H.R. 2436 has focused on Title V, 
which would open the Alaska National Wildlife Refuge to oil and 
gas drilling. However, Title II contains provisions equally 
offensive to U.S. taxpayers and the environment. To start, 
under this Title, the majority would give more than $7 billion 
in deepwater royalty relief to oil and gas companies already 
awash in record profits. President Bush did not propose 
deepwater royalty giveaways in his National Energy Plan. In 
fact, during last year's presidential campaign, he opposed such 
royalty relief for the oil and gas industry.
    Title II also contains a provision that usurps important 
federal environment protections by limiting oil and gas lease 
stipulations to only those allowed under state oil and gas law. 
Not only would this provision override federal environment 
laws, such as the Endangered Species Act--but it would also 
make state fish and gaming laws subservient to state oil and 
gas commissions. Consequently, this provision would seriously 
impede protection of valuable fish and wildlife habitat, such 
as nesting and spawning areas valuable to both 
environmentalists and hunters alike.
    In addition, Title II strips the Forest Service of its 
authority to consent to proposed leases in National Forest 
lands, thus opening the way to drilling in roadless areas and 
other sensitive lands. The Committee's amendment to allow the 
Secretary or Deputy Secretary of Agriculture to make such 
leasing decisions notwithstanding, it makes little sense to 
elevate individual land management decisions on individual oil 
and gas leases in National Forests from professional land 
managers in the field to Cabinet-level political appointees in 
Washington, D.C. In all other respects, this title runs 
roughshod over appropriate administrative procedures to 
``facilitate'' oil and gas leasing on public lands. Yet, in 
this matter, the Majority reveals its overriding antipathy for 
the professionals of the National Forest Service who 
recommended and implemented the ``roadless policy'' and other 
actions designed to protect valuable forest lands.
    The list of unacceptable provisions continues. Title II 
provides a royalty kickback to oil and gas companies for the 
costs of preparing environmental impact analysis documents 
associated with leasing.
    Title II would also provide automatic royalty holidays for 
``marginal wells'' on public lands. However, the bill sets up 
new definitions for marginal wells; i.e., in the tax code, a 
marginal well is one producing 15 barrels of oil equivalent per 
day while in Title II of H.R. 2436, a marginal well onshore is 
one producing 30 barrels per day and 300 barrels offshore. 
Under this definition, most onshore wells would qualify for 
royalty relief. Unfortunately, the bill, as adopted by the 
Committee, does not specify the reduced rate, if any royalty 
payment would be required, or the duration of time the royalty 
holiday would occur. Therefore, estimating the cost of this 
provision to the taxpayers is impossible. There is also no 
linkage between well production and the size of the producer. 
As such, this provision will benefit major international oil 
companies as well as the smaller independent companies. The 
Ways and Means Committee has also included a provision for 
``marginal wells'' in their energy bill (although they define 
such wells as those producing 25 barrels of oil equivalent per 
day) that will provide $900 million in tax relief. Therefore, 
this provision in H.R. 2436 is redundant and unnecessary.
    Finally, Title II would establish a ``royalty in kind'' 
program that will place federal bureaucrats in the oil and gas 
marketing business. Industry has claimed that royalty-in-kind 
programs will end disputes over the fees they owe for drilling 
oil and gas from federal and Indian lands. Under royalty-in-
kind, companies pay in barrels of oil (or units of gas) rather 
than in dollars. The Department of Interior has completed 
several pilot programs to date in order to test whether 
royalty-in-kind programs work at the federal level. However, 
all of the pilots have failed, losing significant revenues in 
comparison to dollars received from programs that collect cash.
    According to the Department of Interior's Inspector 
General, the first pilot program to collect gas royalties-in-
kind lost 6.5 percent of fair market value. Further, when 
projects to the Gulf of Mexico, the Minerals Management Service 
estimated an $82 million loss in royalty revenues for one year. 
The second pilot, according to an audit conducted by the State 
of California, lost $3 million in Wyoming. In 1998, the General 
Accounting Office analyzed the prospect to royalty-in-kind and 
determined that there were significant barriers to ensuring 
that the federal government receives its fair share:

          According to information from studies and the 
        programs themselves, royalty-in-kind programs seem to 
        be feasible if certain conditions are present. However, 
        these conditions do not exist for the federal 
        government or for most federal leases. (Federal Oil 
        Valuation: Efforts to Revise Regulations and an 
        Analysis of Royalties in Kind GAO/RCED-98-242).

    Title II of HR 2436 would give the Secretary of Interior 
authority to further expand collections of royalties-in-kind 
despite their lack of success to date. This provision would 
institutionalize a further loss of millions of taxpayer dollars 
of major oil and gas companies. There is no evidence that 
royalty-in-kind will end litigation or disputes over how much 
oil and gas companies should be paying.
    Past litigation over oil royalty underpayments resulted in 
settlements with the Justice Department for $425 million. And, 
new, extensive litigation nationwide suggests that undervaluing 
royalty payments is not the only way oil and gas companies 
defraud the United States.
    A federal jury in Oklahoma decided that Koch Industries 
``purposely falsified oil measurements * * * Koch admitted that 
it received about $170 million worth of oil it didn't pay 
for.'' (Tulsa World, 7/12/00)
    In a class action suit of private owners against 100 oil 
and gas companies: ``Defendants have systemically deployed a 
variety of inaccurate techniques to under measure the value of 
gas extracted * * *'' (From Complaint)
    From a $3.5 billion case between the State of Alabama and 
Exxon-Mobil: ``Falsely reporting gross gas volumes from the 
Alabama tracts * * *'' (From Complaint)
    Do we really want to have the federal government in the 
business of selling oil and gas? Isn't this something best left 
to the private sector? Given all the rhetoric we hear from the 
other side about the virtues of the free market and private 
enterprise, it is ironic and amusing to see the Republicans 
proposing a new federal bureaucracy to market oil and gas.
    Several weeks ago, a bipartisan House and Senate 
Congressional delegation was invited by President Bush to the 
White House to discuss energy issues. At that meeting, the 
President expressed concern that he was unfairly being 
characterized as ``the Big Oil President'' and asked us to work 
in a bipartisan fashion to develop a balanced national energy 
policy. Title II of H.R. 2436 does not get us there and does 
not heed the President's advice. Title II is largely a license 
for the oil and gas industry to accelerate drilling activity 
while simultaneously scaling back important environmental 
protections. We hear good words from the President and our 
Republican colleagues regarding renewable energy and 
conservation, but where the rubber meets the road, this 
legislation's answer to the country's energy crisis is to 
provide billion dollar royalty holidays to the oil companies, 
open national monuments to drilling, and scale back 
environmental protections.
    H.R. 2436 is clearly out of touch with what the American 
people want and expect of us. Over the short term, we need to 
increase domestic production of our traditional energy sources 
to meet our needs. However, this must be done in a manner that 
is sensitive to the equally important need to protect our 
environment. We should not allow the current situation to be 
used as an excuse to rollback environmental protection.
    Over the long term, our economic and environmental future 
depends on our finding 21st century solutions to our 21st 
century energy challenges, which means using advanced 
technology to develop clean, renewable energy sources and 
becoming more energy efficient.

                                   Ron Kind.
                                   Nick J. Rahall II.

 DISSENTING VIEWS OF REPRESENTATIVES MARKEY, MILLER, DeFAZIO, PALLONE, 
    SMITH, INSLEE, MARK UDALL, SOLIS, McCOLLUM, HOLT, AND NAPOLITANO

    This bill would repeal Section 1003 of the Alaska National 
Interest Lands Conservation Act of 1980, which explicitly 
prohibits the leasing or other activity leading to the 
production of oil or gas from the coastal plain of the Arctic 
National Wildlife Refuge (ANWR). In addition, it would 
authorize oil and gas exploration and development in an area of 
the Refuge, which has never before been subject to such 
development, and would set a precedent not only for ANWR but 
for national wildlife refuges and other conservation areas 
throughout the United States.
    We oppose this provision for two overarching reasons:
          1. Energy development is inherently incompatible with 
        the purposes of the Refuge, and
          2. There are preferable alternatives for energy 
        development that allow us to meet energy needs while 
        preserving the pristine character of the Refuge.
1. Energy development is inherently incompatible with the purposes of 
        the Refuge
    The Arctic National Wildlife Refuge is one of the most 
magnificent wildlife reserves in America. Initially set aside 
by President Eisenhower in 1960 and expanded by Congress in 
1980, it is a very special place--in the words of Justice 
William O. Douglas ``the most wondrous place on God's Earth.''
    While the entire Refuge now contains 19.8 million acres, 
much of its rich wildlife is concentrated on a ``coastal 
plain'' tucked between a range of wild, rugged, glacial peaks--
the Brooks Range--and the polar Beaufort Sea. This plain--1.5 
million acres--comprises less than eight percent of the Refuge, 
but it is considered ``the biological heart of the Refuge'' 
because it is critical to the well-being of a unique caribou 
herd, as well as polar bears, Arctic foxes, wolverines, 
muskoxen, and snow geese. It contains the greatest variety of 
plant and animal life of any conservation area in the 
circumpolar north.
    Industrial development of the coastal plain will have a 
major impact on the existing ecosystem. The Porcupine River 
caribou herd, 130,000 strong, uses the plain to give birth to 
calves and for postcalving activities prior to the onset of 
migration.
    Proponents of drilling assert that the ``footprint'' of oil 
development on the refuge will be small (``just 2000 acres'' or 
``the size of Dulles Airport'') because drilling technology has 
improved, and they intend to use ice roads in the winter that 
melt in the summer. Therefore, they conclude, the threat to the 
wildlife will be minimal.
    In fact, the footprint of industrial development in the 
Refuge is expected to adversely impact a much larger area. To 
get a sense of what oil development would mean for the Refuge, 
we need only look 70 miles east, at Prudhoe Bay, where oil 
development on Alaska state lands has continued for three 
decades under some of the strictest environmental controls in 
the world.
    The actual surface area of the infrasturcture in Prudhoe 
Bay, for example, is approximately 12,000 acres, yet it sprawls 
across an area that exceeds 800 square miles.
    Similarly, oil development equipment only covers 2000 acres 
when it is all assembled in one place. But to produce any oil, 
it has to be deployed over a wide area. In the case of the 
coastal plain of the Arctic Refuge, the infrastructure is 
expected to sprawl across 130,000 to 303,000 acres--one fifth 
of the entire area--including a huge pipeline, smaller feeder 
pipelines, drill pads, haul roads, gathering facilities, valves 
and so forth.
    But the environmental consequences of drilling go well 
beyond the impact of the ``footprint'' itself. Current oil 
operations in Alaska's North Slope include a toxic spill of 
oil, acid or salt water every day, and twice the nitrogen oxide 
pollution of Washington, D.C. every year, causing smog and acid 
rain. Moreover, every year oil development on the North Slope 
emits an estimated 110,000 tons of methane, a greenhouse gas 
that contributes to global warming.
    Sixty million cubic yards of gravel have been mined to 
build roads on the North Slope. In order to minimize that 
particular impact, proponents of drilling in the Refuge propose 
to explore using ice roads in the winter that would melt in the 
summer. But ice roads require huge amounts of water, which does 
not occur in sufficient quantities on the Refuge to support oil 
development. The U.S. Fish and Wildlife Service environmental 
analysis suggests that water on the Refuge could support 
perhaps 6 miles of road where more than 60 miles are needed. 
During the winter, the top seven feet of water in local ponds 
and lakes freeze, so that the water drawn for roads would have 
to come from what remains. If more than 15 percent of the 
remaining water is consumed, ``overdrawing'' occurs, changing 
the fragile tundra ecosystem and killing the food that 
migratory birds and fish feed on.
    Moreover, seasonal ice roads are only useful in the winter 
for exploration, not year-round to support production. Once the 
development begins, haul roads would have to be built involving 
extensive gravel mining.
    Needless to say, none of this is compatible with the 
purposes of the Refuge to ``protect unique wildlife, wilderness 
and recreational value.'' Its pre-eminent value is that it 
remains one of the closet approximations of undistrubed, wholly 
intact, and fully functioning systems of natural ecological 
processes remaining on American soil.
    Sacrificing this special place for a few months-worth of 
oil seems particularly short-sighted, especially in light of 
the available alternatives.

2. There are preferable alternatives for energy development that allow 
        us to meet energy needs while preserving the pristine character 
        of the Refuge

    The same geological structures that have yielded so much 
oil and gas in Prudhoe Bay extend both east to the Artic Refuge 
and west to the National Petroleum Reserve-Alaska (NPR-A). The 
Refuge has been set aside as a protected conservation area and 
is off-limits to the oil industry. The NPR-A, a 23 million acre 
land that dwarfs the size of the Refuge's coastal plain, has 
been specifically set aside for oil and gas development. There 
is simply no reason to begin expansion beyond Prudhoe Bay in 
the direction that is prohibited and away from the direction 
that is permitted.
    While the potential for oil in the Refuge still appears 
larger than in the Reserve, the Reserve holds much greater 
promise for natural gas, so that every exploratory well has a 
greater chance of finding recoverable quantities of one fuel or 
the other. Oil is being found in the NPR-A. In fact, just last 
October, BP announced the discovery of a field in this Reserve 
that it said could be as large as Kuparuk, the second largest 
field on the North Slope. In May, Phillip's Petroleum announced 
three discoveries in NPR-A, which it said might be as large as 
the Alpine field, which would make it among the largest onshore 
oil discoveries in the U.S. in a decade. The USGS estimates 
that there may be as much as 35 trillion cubic feet of natural 
gas on the North Slope, and most of it appears to be in either 
the Prudhoe Bay area or the NPR-A. There is broad support to 
build a natural gas pipeline paralleling the oil pipeline south 
to Fairbanks and east through Canada, a project that the 
Democrats included in the Rahall substitute and that was 
rejected by the majority.
    In short, the National Petroleum Reserve can be developed 
while leaving the Arctic National Wildlife Refuge alone.
    Nevertheless, the drilling proponents have focused on the 
coastal plain of the Refuge alone. The USGS has reviewed 
seismic data and determined that the most likely scenario for 
oil production on the coastal plain would yield 3-5 billion 
barrels of ``economically-recoverable'' oil, or the equivalent 
of just a few months worth of daily consumption in the United 
States.
     Drilling proponents cite much large numbers by relying on 
the notion of ``technically-recoverable'' oil rather than 
``economically-recoverable'' oil. But ``technically-
recoverable'' is a concept based on the notion that money is no 
object. If money were no object, we could recover all the 
``technically-recoverable'' solar energy that falls on the 
surface of the earth every day and never have to build another 
powerplant. But money is always an object, and some of 
proponents of this bill persist in ignoring the fact that any 
oil development would still have to be a profitmaking exercise, 
even in the Refuge.
    The amount of ``economically-recoverable'' oil considered 
likely to be found in the Refuge is small compared to our daily 
consumption and cannot significantly reduce our dependence on 
foreign supplies of oil. We consume 25 percent of the world's 
oil but control only 3 percent of the world's reserves. OPEC 
controls 76 percent of these reserves, so we will continue to 
look to foreign suppliers as long as we continue to fuel our 
transportation system with gasoline. For example, the majority 
has set ambitious new goals for independence by drilling not 
only in the Refuge, but also on other sensitive lands and on 
the outer continental shelf, yet this would only reduce our 
foreign oil dependence from 54 percent today to 50 percent 10 
years from now--which simply underlines the futility of trying 
to drill our way to independence.
    But we are not helpless. We are the technological giant of 
the world, and we have untapped sources of supply in the form 
of increased efficiencies in the energy-consuming appliances we 
use every day. The potential is much larger than for new supply 
in the Arctic Refuge. For example,fourteen years ago, the 
fleetwide average fuel economy of all new passenger vehicles sold in 
America was around 26.2 miles per gallon. That was 1987.
    Now it is the year 2001, yet our automobile fuel economy 
has actually gone backwards! The fleetwide average has slid 
down, not up. It has now fallen back to 24.5 mpg--levels last 
seen in 1981.
    If we increase our overall fuel economy by just the 
difference between these two numbers--1.7 mpg--we will save 
more oil than is expected to be economically-recoverable from 
the Refuge.
    In conclusion, lifting the prohibition on oil and gas 
development in this magnificent refuge is neither wise nor 
necessary. If our current concern about energy supply becomes 
an excuse for the industry to lay claim to public treasures 
such as the Arctic Refuge, we will have failed twice--we will 
remain just as dependent on oil for our energy future, and will 
have hastened the demise of a unique ecosystem.
    We have many choices to make regarding our energy future, 
but we have very few choices when it comes to industrial 
pressures on incomparable natural wonders. Let us be clear with 
the American people that there are places that are so special 
for their environmental, wilderness or recreational value that 
we simply will not drill there as long as alternatives exist.
     We do not dam the Grand Canyon for hydropower.
    We do not strip mine Yellowstone for coal.
    And we should not drill for oil and gas in the Arctic 
Refuge.

                                   Edward Markey.
                                   Peter DeFazio.
                                   Adam Smith.
                                   Mark Udall.
                                   Betty McCollum.
                                   Grace F. Napolitano.
                                   George Miller.
                                   Frank Pallone.
                                   Jay Inslee.
                                   Hilda Solis.
                                   Rush D. Holt.


                            A P P E N D I X

                              ----------                              

                          House of Representatives,
                                    Committee on Resources,
                                     Washington, DC, July 19, 2001.
Hon. F. James Sensenbrenner,
Chairman, Committee on the Judiciary,
Rayburn HOB, Washington, DC.
    Dear Mr. Chairman: On July 17, 2001 the Committee on 
Resources ordered favorably reported H.R. 2436, the Energy 
Security Act. The bill was referred primarily to the Committee 
on Resources, with an additional referral to the Committee on 
Energy and Commerce.
    Section 508 of H.R. 2436 provides for an expedited judicial 
review of any challenges to Title V of the bill or any actions 
taken by the Secretary of the Interior under that Title. After 
consultation with the Parliamentarian, I acknowledge that the 
Committee on the Judiciary has jurisdiction over this provision 
under Rule X of the Rules of the House of Representatives.
    H.R. 2436 is a critical part of the President's energy 
policy initiative and the Leadership plans on scheduling it for 
consideration by the full House of Representatives as early as 
next week. Therefore, I ask you to not seek a referral of the 
bill based on Section 508.
    Of course, by allowing this to occur, the Committee on the 
Judiciary does not waive its jurisdiction over Section 508 or 
any other similar matter. If a conference on H.R. 2436 or a 
similar energy legislative package which contains any expedited 
judicial review provision becomes necessary, I would support 
the Committee on the Judiciary's request to be named to the 
conference. Finally, this action should not be seen as 
precedent for any Committee on Resources bills which affect the 
Committee on the Judiciary's jurisdiction. I would be pleased 
to place this letter and your response in the report on the 
bill to document this agreement.
    Thank you for your consideration of my request and for the 
good work of William E. Moschella and John F. Mautz IV of your 
staff. I look forward to working with you again in the future.
            Sincerely,
                                         James V. Hansen, Chairman.
                                ------                                

                          House of Representatives,
                                Committee on the Judiciary,
                                     Washington, DC, July 19, 2001.
Hon. James V. Hansen,
Chairman, House Committee on Resources, Longworth House Office 
        Building, House of Representatives, Washington, DC.
    Dear Jim: Thank you for working with me regarding H.R. 
2436, the ``Energy Security Act,'' which was referred to the 
Committee on Resources. As you know, the Committee on Judiciary 
has a jurisdictional interest in this legislation, and I 
appreciate your acknowledgement of that jurisdictional 
interest. While the bill would be sequentially referred to the 
Judiciary Committee, I understand the desire to have this 
legislation considered expeditiously by the House; therefore, I 
do not intend to hold a hearing or markup on this legislation.
    In agreeing to waive consideration by our Committee, I 
would expect you to agree that this procedural route should not 
be construed to prejudice the Committee on the Judiciary's 
jurisdictional interest and prerogatives on this or any similar 
legislation and will not be considered as precedent for 
consideration of matters of jurisdictional interest to my 
Committee in the future. The Committee on the Judiciary takes 
this action with the understanding that the Committee's 
jurisdiction over the provisions within the Committee's 
jurisdiction is in no way diminished or altered, and that the 
Committee's right to the appointment of conferees during any 
conference on the bill is preserved. I would also expect your 
support in my request to the speaker for the appointment of 
conferees from my Committee with respect to matters within the 
jurisdiction of my Committee should a conference with the 
Senate be convened on this or similar legislation.
    Again, thank you for your cooperation on this important 
matter. I would appreciate your including our exchange of 
letters in your Committee's report to accompany H.R. 2436.
            Sincerely,
                             F. James Sensenbrenner, Jr., Chairman.
                                ------                                

                          House of Representatives,
                                    Committee on Resources,
                                     Washington, DC, July 20, 2001.
Hon. Larry Combest,
Chairman, Committee on Agriculture,
Longworth HOB, Washington, DC.
    Dear Mr. Chairman: On July 17, 2001, the Committee on 
Resources ordered favorably reported H.R. 2436, the Energy 
Security Act. The bill was referred primarily to the Committee 
on Resources, with an additional referral to the Committee on 
Energy and Commerce.
    H.R. 2436 is a critical part of the President's energy 
policy initiative. The Leadership plans on scheduling an energy 
legislative package for consideration by the full House of 
Representatives as early as next week. Therefore, I ask you to 
not to seek a sequential referral of the bill.
    Of course, by allowing this to occur, the Committee on 
Agriculture does not waive its jurisdiction over H.R. 2436 or 
any other similar matter. If a conference on H.R. 2436 or a 
similar energy legislative package becomes necessary, I would 
support the Committee on Agriculture's request to be named to 
the conference. Finally, this action should not be seen as 
precedent for any Committee on Resources bills which affect the 
Committee on Agriculture's jurisdiction. I would be pleased to 
place this letter and your response in the report on the bill 
to document this agreement.
    Thank you for your consideration of my request. I look 
forward to working with you again on the Floor.
            Sincerely,
                                         James V. Hansen, Chairman.
                                ------                                

                          House of Representatives,
                                  Committee on Agriculture,
                                     Washington, DC, July 23, 2001.
Hon. James V. Hansen,
Chairman, Committee on Resources,
Longworth HOB, Washington, DC.
    Dear Mr. Chairman: Thank you for forwarding a draft copy of 
H.R. 2436, the Energy Security Act, as ordered reported by your 
Committee on July 17, 2001.
    Under clause 1(a) of rule X, the Committee on Agriculture 
has jurisdiction over bills relating to forestry in general and 
forest reserves other than those created from the public 
domain. In exercising this jurisdiction, the Committee on 
Agriculture has worked cooperatively in the past with your 
Committee regarding general matters relating to forestry.
    Aware of your interest in expediting this legislation, the 
Committee on Agriculture will agree to waive jurisdiction and 
will not seek a sequential referral in order to speed its 
timely consideration in the House. In doing so, the Committee 
on Agriculture does not waive any future jurisdiction claim 
over this or similar measures, and reserves the right to seek 
appropriate representation in the event the measure should go 
to conference.
    Once again, I am grateful for the cooperative spirit in 
which you have worked regarding this matter and others between 
our respective committees.
            Sincerely,
                                           Larry Combest, Chairman.
                                ------                                

                          House of Representatives,
                                    Committee on Resources,
                                     Washington, DC, July 19, 2001.
Hon. W.J. ``Billy'' Tauzin,
Chairman, Committee on Energy and Commerce,
Rayburn HOB, Washington, DC.
    Dear Mr. Chairman: On July 17, 2001, the Committee on 
Resources ordered favorably reported H.R. 2436, the Energy 
Security Act. The bill was referred primarily to the Committee 
on Resources, with an additional referral to the Committee on 
Resources, with an additional referral to the Committee on 
Energy and Commerce.
    As you know from your membership on the Resources 
Committee, H.R. 2436 is a critical part of the President's 
energy policy initiative. The Leadership plans on scheduling an 
energy legislative package for consideration by the full House 
of Representatives as early as next week. Therefore, I ask you 
to not to exercise your full referral of the bill.
    Of course, by allowing this to occur, the Committee on 
Energy and Commerce does not waive its jurisdiction over H.R. 
2436 or any other similar matter. If a conference on H.R. 2436 
or a similar energy legislative package becomes necessary, I 
would support the Committee on Energy and Commerce's request to 
be named to the conference. Finally, this action should not be 
seen as precedent for any Committee on Resources bills which 
affect the Committee on Energy and Commerce's jurisdiction. I 
would be pleased this letter and your response in the report on 
the bill to document this agreement.
    Thank you for your consideration of my request and your 
assistance in getting a very sound bill reported from the 
Committee on Resources. I look forward to working with you 
again on the Floor.
            Sincerely,
                                         James V. Hansen, Chairman.
                                ------                                

                          House of Representatives,
                          Committee on Energy and Commerce,
                                     Washington, DC, July 23, 2001.
Hon. James V. Hansen,
Chairman, Committee on Resources,
Longworth House Office Building, Washington, DC.
    Dear Chairman Hansen: Thank you for your letter regarding 
to H.R. 2436, the Energy Security Act, which was ordered 
reported by the Committee on Resources on July 17, 2001. As you 
know, the Committee on Energy and Commerce was named as an 
additional Committee of jurisdiction upon the bills 
introduction.
    I share your strong desire to bring comprehensive energy 
legislation to the House Floor in an expeditious manner. 
Accordingly, I will not exercise the Committee's right to a 
referral. By agreeing to waive its consideration of the bill, 
however, the Energy and Commerce Committee does not waive its 
jurisdiction over H.R. 2436. In addition, the Energy and 
Commerce Committee reserves its authority to seek conferees on 
any provisions of the bill that are within its jurisdiction 
during any House-Senate conference that may be convened on this 
or related legislation. Thank you for your willingness to 
support the Committee in this regard.
    I request that you include this letter as a part of the 
Committee's report in H.R. 2436.
    Thank you for your attention to these matters.
            Sincerely,
                                  W.J. ``Billy'' Tauzin,  Chairman.
                                ------                                

                          House of Representatives,
                                    Committee on Resources,
                                     Washington, DC, July 20, 2001.
Hon. Don Young,
Chairman, Committee on Transportation and Infrastructure,
Rayburn HOB, Washington, DC.
    Dear Mr. Chairman: On July 17, 2001, the Committee on 
Resources ordered favorably reported H.R. 2436, the Energy 
Security Act. The bill was referred primarily to the Committee 
on Resources, with an additional referral to the Committee on 
Energy and Commerce.
    As you know from your membership on the Resources 
Committee, H.R. 2436 is a critical part of the President's 
energy policy initiative. The Leadership plans on scheduling an 
energy legislative package for consideration by the full House 
or Representatives as early as next week. Therefore, I ask you 
to not to exercise your full referral of the bill.
    Of course, by allowing this to occur, the Committee on 
Transportation and Infrastructure does not waive its 
jurisdiction over H.R. 2436 or any other similar matter. If a 
conference on H.R. 2436 or a similar energy legislative package 
becomes necessary, I would support the Committee on 
Transportation and Infrastructure's request to be named to the 
conference. Finally, this action should not be seen as 
precedent for any Committee on Resources bills which affect the 
Committee on Transportation and Infrastructure's jurisdiction. 
I would be pleased to place this letter and your response in 
the report on the bill to document this agreement.
    Thank you for your consideration of my request and your 
assistance in getting a very sound bill reported from the 
Committee on Resources. I look forward to working with you 
again on the Floor.
            Sincerely,
                                         James V. Hansen, Chairman.
                                ------                                

                          House of Representatives,
            Committee on Transportation and Infrastructure,
                                     Washington, DC, July 20, 2001.
Hon. James V. Hansen,
Chairman, Committee on Resources,
Longworth HOB, Washington, DC.
    Dear Mr. Chairman: I have received the text on H.R. 2436, 
the Energy Security Act as reported from the Committee on 
Resources. I believe that the Committee on Transportation and 
Infrastructure has a jurisdictional interest in a number of 
provisions of the bill. These include: (1) Section 104 
regarding the review and permitting of interstate natural gas 
pipelines; (2) Section 105 regarding the use of energy 
efficient technologies in federally owned public buildings; (3) 
Section 401 relative to a study and report on hydropower; and 
(4) Section 601 relative to the historic designation of 
pipelines and related facilities.
    I have no objection to inclusion of these matters within 
the bill and therefore will not seek a sequential referral of 
the bill based on its inclusion.
    Knowing your interest in expediting this legislation, I 
would be pleased to waive any remaining referral of the bill to 
the Committee on Transportation and Infrastructure. I do so 
with the understanding that this waiver does not waive any 
future jurisdictional claims over this or similar measures. In 
addition, in the unlikely event the bill goes to conference 
with the Senate, I ask that the Committee on Resources be 
represented in that conference.
    Once again, I appreciate the extensive and continuing 
consultation between our committees on matters of shared 
jurisdiction.
            Sincerely,
                                               Don Young, Chairman.
                                ------                                

                          House of Representatives,
                                    Committee on Resources,
                                     Washington, DC, July 19, 2001.
Hon. Bob Stump,
Chairman, Committee on Armed Services,
Rayburn HOB, Washington, DC.
    Dear Mr. Chairman: On July 17, 2001, the Committee on 
Resources ordered favorably reported H.R. 2436, the Energy 
Security Act. The bill was referred primarily to the Committee 
on Resources, with an additional referral to the Committee on 
Energy and Commerce.
    Section 305 of H.R. 2436 provides the opening of lands 
under military jurisdiction for the development of geothermal 
resources under the Geothermal Steam Act of 1970. After 
consultation with the Parliamentarian, I acknowledge that the 
Committee on Armed Services has jurisdiction over this 
provision under Rule X of the Rules of the House of 
Representatives.
    H.R. 2436 is a critical part of the President's energy 
policy initiative and the Leadership plans on scheduling it for 
consideration by the full House of Representatives as early as 
next week. Therefore, I ask you to not seek a referral of the 
bill based on Section 305.
    Of course, by allowing this to occur, the Committee on 
Armed Services does not waive its jurisdiction over Section 305 
or any other similar matter. If a conference on H.R. 2436 or a 
similar energy legislative package which contains any expedited 
judicial review provision becomes necessary, I would support 
the Committee on Armed Services' request to be named to the 
conference. Finally, this action should not be seen as 
precedent for any Committee on Resources bills which affect the 
Committee on Armed Services' jurisdiction. I would be pleased 
to place this letter and your response in the report on the 
bill to document this agreement.
    Thank you for your consideration of my request look forward 
to working with you again this Congress.
            Sincerely,
                                         James V. Hansen, Chairman.
                                ------                                

                          House of Representatives,
                               Committee on Armed Services,
                                     Washington, DC, July 20, 2001.
Hon. J. Dennis Hastert,
Speaker, House of Representatives,
Washington, DC.
    Dear Mr. Speaker: In recognition of the desire to expedite 
floor consideration of H.R. 2436, the Energy Security Act, the 
Committee on Armed Services agrees to waive its right to 
consider this legislation. H.R. 2436, as introduced and ordered 
reported by the Committee on Resources on July 17, 2001, 
contains subject matter that falls within the legislative 
jurisdiction of the Committee on Armed Services pursuant to 
rule X of the Rules of the House of Representatives.
    The Committee on Armed Services takes this action with the 
understanding that the Committee's jurisdiction over the 
provisions in question is in no way diminished or altered, and 
that the Committee's rights to the appointment of conferees 
during any conference on the bill remains intact.
            Sincerely,
                                               Bob Stump, Chairman.
                                ------                                

                          House of Representatives,
                                    Committee on Resources,
                                     Washington, DC, July 20, 2001.
Hon. Sherwood L. Boehlert,
Chairman, Committee on Science,
Rayburn HOB, Washington, DC.
    Dear Mr. Chairman: On July 17, 2001, the Committee on 
Resources ordered favorably reported H.R. 2436, the Energy 
Security Act. The bill was referred primarily to the Committee 
on Resources, with an additional referral to the Committee on 
Energy and Commerce.
    H.R. 2436 is a critical part of the President's energy 
policy initiative. The Leadership plans on scheduling an energy 
legislative package for consideration by the full House of 
Representatives as early as next week. Therefore, I ask you to 
not to seek a sequential referral of the bill.
    Of course, by allowing this to occur, the Committee on 
Science does not waive its jurisdiction over H.R. 2436 or any 
other similar matter. If a conference on H.R. 2436 or a similar 
energy legislative package becomes necessary, I would support 
the Committee on Science's request to be named to the 
conference. Finally, this action should not be seen as 
precedent for any Committee on Resources bills which affect the 
Committee on Science's jurisdiction. I would be pleased to 
place this letter and your response in the report on the bill 
to document this agreement.
    Thank you for your consideration of my request. I look 
forward to working with you again on the Floor.
            Sincerely,
                                         James V. Hansen, Chairman.