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110th Congress                                            Rept. 110-296
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 1

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



 
          ENERGY POLICY REFORM AND REVITALIZATION ACT OF 2007

                                _______
                                

 August 3, 2007.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Rahall, from the Committee on Natural Resources, submitted the 
                               following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 2337]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Natural Resources, to whom was referred the 
bill (H.R. 2337) to promote energy policy reforms and public 
accountability, alternative energy and efficiency, and carbon 
capture and climate change mitigation, 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 Policy Reform and 
Revitalization Act of 2007''.

SEC. 2. TABLE OF CONTENTS.

  The table of contents of this Act is as follows:

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

               TITLE I--ENERGY POLICY ACT OF 2005 REFORMS

Sec. 101. Fiscally responsible energy amendments.
Sec. 102. Extension of deadline for consideration of applications for 
permits.
Sec. 103. Energy rights-of-way corridors on Federal land.
Sec. 104. Oil shale and tar sands leasing.
Sec. 105. Limitation of rebuttable presumption regarding application of 
categorical exclusion under NEPA for oil and gas exploration and 
development activities.
Sec. 106. Best management practices.
Sec. 107. Federal consistency appeals.

 TITLE II--FEDERAL ENERGY PUBLIC ACCOUNTABILITY, INTEGRITY, AND PUBLIC 
                                INTEREST

 Subtitle A--Accountability and Integrity in the Federal Energy Program

Sec. 201. Limitations on royalty in-kind.
Sec. 202. Audits.
Sec. 203. Fines and penalties.

Subtitle B--Amendments to Federal Oil and Gas Royalty Management Act of 
                                  1982

Sec. 211. Amendments to definitions.
Sec. 212. Interest.
Sec. 213. Obligation period.
Sec. 214. Tolling agreements and subpoenas.
Sec. 215. Liability for royalty payments.

       Subtitle C--Public Interest in the Federal Energy Program

Sec. 221. Surface owner protection.
Sec. 222. Onshore oil and gas reclamation and bonding.
Sec. 223. Protection of water resources.
Sec. 224. Due diligence fee.

                        Subtitle D--Wind Energy

Sec. 231. Wind Turbine Guidelines Advisory Committee.
Sec. 232. Authorization of appropriations for research to study wind 
energy impacts on wildlife.
Sec. 233. Enforcement.
Sec. 234. Savings clause.

               Subtitle E--Enhancing Energy Transmission

Sec. 241. Power Marketing Administrations report.

              TITLE III--ALTERNATIVE ENERGY AND EFFICIENCY

Sec. 301. State ocean and coastal alternative energy planning.
Sec. 302. Canal-side power production at Bureau of Reclamation 
projects.
Sec. 303. Increasing energy efficiencies for water desalination.
Sec. 304. Establishing a pilot program for the development of strategic 
solar reserves on Federal lands.
Sec. 305. OTEC regulations.
Sec. 306. Biomass utilization pilot program.
Sec. 307. Programmatic environmental impact statement.

         TITLE IV--CARBON CAPTURE AND CLIMATE CHANGE MITIGATION

            Subtitle A--Geological Sequestration Assessment

Sec. 401. Short title.
Sec. 402. National assessment.

            Subtitle B--Terrestrial Sequestration Assessment

Sec. 421. Requirement to conduct an assessment.
Sec. 422. Methodology.
Sec. 423. Completion of assessment and report.
Sec. 424. Authorization of appropriations.

                  Subtitle C--Sequestration Activities

Sec. 431. Carbon dioxide storage inventory.
Sec. 432. Framework for geological carbon sequestration on Federal 
lands.

          Subtitle D--Natural Resources and Wildlife Programs

       Chapter 1--Natural Resources Management and Climate Change

Sec. 441. Interagency Council on Climate Change.

          Chapter 2--National Policy and Strategy for Wildlife

Sec. 451. Short title.
Sec. 452. National policy on wildlife and global warming.
Sec. 453. Definitions.
Sec. 454. National strategy.
Sec. 455. Advisory board.
Sec. 456. Authorization of appropriations.

          Chapter 3--State and Tribal Wildlife Grants Program

Sec. 461. State and Tribal Wildlife Grants Program.

                       Subtitle E--Ocean Programs

Sec. 471. Ocean Policy, Global Warming, and Acidification Program.
Sec. 472. Planning for climate change in the coastal zone.
Sec. 473. Enhancing climate change predictions.

                     TITLE V--ADDITIONAL PROVISIONS

Sec. 501. Sharing of penalties.
Sec. 502. Sharing of fees.
Sec. 503. Oil shale community impact assistance.
Sec. 504. Additional notice requirements.

               TITLE I--ENERGY POLICY ACT OF 2005 REFORMS

SEC. 101. FISCALLY RESPONSIBLE ENERGY AMENDMENTS.

  (a) Requirement to Establish Cost Recovery Fee.--Section 365(i) of 
the Energy Policy Act of 2005 (Public Law 109-58; 42 U.S.C. 15924(i)) 
is amended to read as follows:
  ``(i) Fee for Applications for Permits to Drill.--
          ``(1) Requirement to establish cost recovery fee.--The 
        Secretary of the Interior shall promulgate regulations to 
        establish a cost recovery fee for applications for a permit to 
        drill for oil and gas on Federal lands administered by the 
        Secretary.
          ``(2) Temporary fee.--Until such time as a fee is established 
        by such regulations, the Secretary shall charge a cost recovery 
        fee of $1,700 for each such application received on or after 
        October 1, 2007.''.
  (b) Repeal of BLM Permit Processing Improvement Fund.--
          (1) Repeal.--Section 35 of the Mineral Leasing Act (30 U.S.C. 
        191) is amended by striking subsection (c).
          (2) Treatment of balance.--Any balances remaining in the BLM 
        Permit Processing Improvement Fund on the effective date of 
        this subsection shall be transferred to the general fund of the 
        Treasury of the United States.
          (3) Effective date.--This subsection shall take effect on 
        October 1, 2007.

SEC. 102. EXTENSION OF DEADLINE FOR CONSIDERATION OF APPLICATIONS FOR 
                    PERMITS.

  Subsection (p)(2) of section 17 of the Mineral Leasing Act (30 U.S.C. 
226) is amended by striking ``30'' and inserting ``90''.

SEC. 103. ENERGY RIGHTS-OF-WAY CORRIDORS ON FEDERAL LAND.

  (a) Repeal of Requirements To Designate Energy Rights-of-Way 
Corridors on Federal Land.--Section 368 of the Energy Policy Act of 
2005 (Public Law 109-58; 42 U.S.C.15926) is amended--
          (1) in subsection (a), by striking ``Not later than 2 years 
        after the date of enactment of this Act, the'' and inserting 
        ``The''; and
          (2) in subsection (b), by striking ``Not later than 4 years 
        after the date of enactment of this Act, the'' and inserting 
        ``The''.
  (b) Study.--
          (1) Study.--Not later than 6 months after the date of 
        enactment of this Act, the Secretary of Agriculture, the 
        Secretary of Commerce, the Secretary of Defense, the Secretary 
        of Energy, and the Secretary of the Interior (in this 
        subsection referred to collectively as ``the Secretaries'') 
        shall, in consultation with affected States, complete a study 
        of--
                  (A) congestion and constraints in transmission of 
                electricity, carbon dioxide captured from coal-fired 
                powerplants and coal-to-liquids plants, liquid fuels 
                derived from coal, oil, gas, and hydrogen;
                  (B) barriers to access for transmission from 
                renewable energy sources, such as large and small 
                conventional hydropower, wind energy, and solar energy; 
                and
                  (C) the need for energy corridors on public lands to 
                address identified congestion or constraints.
          (2) Considerations.--In performing the study, the 
        Secretaries--
                  (A) shall take into account the studies of electrical 
                transmission congestion completed under section 
                216(a)(1) of the Federal Power Act (16 U.S.C. 
                824(p)(a)(1)), other projects authorized or under 
                consideration on public lands and such projects outside 
                public lands, and alternatives, individually and in 
                concert, that could be implemented to address the needs 
                identified, including an analysis of demand reduction, 
                available new technology, and distributed generation 
                measures that could be taken;
                  (B) shall not consider as available for designation 
                as a corridor, any area that is--
                          (i) within one mile of any place designated 
                        or otherwise identified by State or Federal law 
                        or any applicable Federal or State land use 
                        plan for recognition or protection of scenic, 
                        natural, cultural, or historic resources; or
                          (ii) in a sensitive ecological area, 
                        including any area that is designated as 
                        critical habitat under the Endangered Species 
                        Act of 1973 or otherwise identified as 
                        sensitive or crucial habitat, including 
                        seasonal habitat, by the United States Fish and 
                        Wildlife Service, by a State agency responsible 
                        for managing wildlife or wildlife habitat, or 
                        in a Federal or State land use plan;
                  (C) identify opportunities to mitigate to the maximum 
                extent practicable the potential impact of designating 
                energy corridors, and of the reasonably foreseeable 
                uses of those corridors for power lines, pipelines, and 
                other transmission facilities, on natural, scenic, 
                cultural, and historic values and areas referred to in 
                subparagraph (B), the protection of which is in the 
                national interest, including opportunities to minimize 
                the width of corridors, limiting the types and numbers 
                of uses of corridors, and placement of facilities 
                underground; and
                  (D) identify opportunities to improve access to the 
                national electric power grid for generators of 
                renewable energy, such as wind, hydropower, biomass, 
                hydrogen, geothermal, and solar.
          (3) Updates.--The Secretaries shall periodically update the 
        results of the study as they consider appropriate.
          (4) Reports.--After considering recommendations from 
        interested persons (including an opportunity for comment from 
        the public and affected States), the Secretaries shall issue--
                  (A) a report presenting the results of the study; and
                  (B) a report on each update of the study under 
                paragraph (3).
  (c) Deferral of Designation of Energy Corridors Pending Completion of 
Study.--
          (1) Limitation on actions pending completion of study.--The 
        Secretaries shall not designate energy corridors on public 
        lands, including those corridors under consideration based on 
        section 368 of the Energy Policy Act of 2005 (Public Law 109-
        58) as in effect prior to the enactment of this Act, and shall 
        not authorize specific rights-of-way or projects in such 
        corridors, until the study under subsection (b) is completed.
          (2) Use of study results for actions after completion of 
        study.--
                  (A) In general.--Subject to subparagraph (B), after 
                completion of the study under subsection (b), the 
                Secretaries shall use the results of the study to 
                inform subsequent decisions to grant rights-of-way, 
                including under title V of the Federal Land Policy and 
                Management Act of 1976 (43 U.S.C. 1761 et seq.), and to 
                amend land use plans to designate energy corridors or 
                authorize rights-of-way, in any area for which no such 
                designation or authorization currently exists.
                  (B) Limitation on use.--The results of the study 
                shall not affect the Secretaries' obligations to 
                analyze the environmental consequences of a designation 
                or authorization referred to in subparagraph (A), or to 
                otherwise comply with applicable laws.
  (d) Authority to Authorize Rights-of-Way.--Nothing in this section 
shall limit the ability of the Secretaries to authorize rights-of-way 
for energy transmission projects that are consistent with the governing 
land use plan, after completion of environmental analysis and 
compliance with applicable laws.

SEC. 104. OIL SHALE AND TAR SANDS LEASING.

  Section 369 of the Energy Policy Act of 2005 (42 U.S.C. 15927) is 
amended--
          (1) in subsection (c), by striking ``not later than 180 days 
        after the date of enactment of this Act,'';
          (2) in subsection (c), by striking ``shall make'' and 
        inserting ``may make'';
          (3) in subsection (d)(1), by striking ``Not later than 18 
        months after the date of enactment of this Act, in'' and 
        inserting ``In'';
          (4) in subsection (d)(2)--
                  (A) in the heading by striking ``Final'' and 
                inserting ``Proposed''; and
                  (B) in the text by striking ``final'' and inserting 
                ``proposed'';
          (5) in subsection (d)(2), by striking ``6'' and inserting 
        ``12'';
          (6) in subsection (d)(2) by inserting after the period ``The 
        proposed regulations developed under this paragraph are to be 
        open for public comment for no less than 180 days.'';
          (7) by redesignating subsections (e) through (s) as 
        subsections (g) through (u), and by inserting after subsection 
        (d) the following:
  ``(e) Oil Shale and Tar Sands Leasing and Development Strategy.--
          ``(1) General.--Not later than 6 months after the completion 
        of the programmatic environmental impact statement under 
        subsection (d), the Secretary shall prepare an oil shale and 
        tar sands leasing and development strategy, in cooperation with 
        the Secretary of Energy and the Administrator of the 
        Environmental Protection Agency.
          ``(2) Purpose.--The purpose of the strategy developed under 
        this subsection is to allow for the sustainable and publicly 
        acceptable large-scale development of oil shale within the 
        Green River Formation.
          ``(3) Contents.--The strategy shall include plans and 
        programs for obtaining information required for determining the 
        optimal methods, locations, amount, and timeframe for potential 
        development on federal lands within the Green River Formation. 
        The strategy shall also include plans for conducting critical 
        environmental and ecological research, high-payoff process 
        improvement research, an assessment of carbon management 
        options, and a large-scale demonstration of carbon dioxide 
        sequestration in the general vicinity of the Piceance Basin.
  ``(f) Alternative Approaches.--Not later than nine months after the 
completion of the programmatic environmental impact statement under 
subsection (d), the Secretary shall, in cooperation with the Secretary 
of Energy and the Administrator of the Environmental Protection Agency, 
prepare and publish a report on alternative approaches to providing 
access to Federal lands for early first-of-a-kind commercial facilities 
for extracting and processing oil shale and tar sands.'';
          (8) in subsection (g), as so redesignated, by striking ``of 
        the final regulation required by subsection (d)'' and inserting 
        ``of final regulations issued under this section'';
          (9) in subsection (g), as so redesignated, by adding at the 
        end the following: ``Compliance with the National Environmental 
        Policy Act of 1969 is required on a site-by-site basis for all 
        lands proposed to be leased under the commercial leasing 
        program established in this subsection.''; and
          (10) in subsection (i)(1)(B), as so redesignated, by striking 
        ``subsection (e)'' and inserting ``subsection (g)''.

SEC. 105. LIMITATION OF REBUTTABLE PRESUMPTION REGARDING APPLICATION OF 
                    CATEGORICAL EXCLUSION UNDER NEPA FOR OIL AND GAS 
                    EXPLORATION AND DEVELOPMENT ACTIVITIES.

  Section 390 of the Energy Policy Act of 2005 (Public Law 109-58; 42 
U.S.C. 15942) is amended--
          (1) in subsection (b)(3), by inserting ``, other than at such 
        a location or site in an area that is crucial wildlife habitat 
        or a significant wildlife corridor'' after ``activity'' ; and
          (2) by adding at the end the following:
  ``(c) Adherence to CEQ Regulations.--In administering this section, 
the Secretary of the Interior in managing the public lands, and the 
Secretary of Agriculture in managing National Forest System lands, 
shall adhere to the regulations issued by the Council on Environmental 
Quality relating to categorical exclusions (40 C.F.R. 1507.3 and 
1508.4), as in effect on the date of enactment of this Act.''.

SEC. 106. BEST MANAGEMENT PRACTICES.

  Not later than 180 days after the date of enactment of this Act, the 
Secretary of the Interior, through the Bureau of Land Management, shall 
amend the best management practices guidelines for oil and gas 
development on Federal lands, to--
          (1) require public review and comment prior to waiving any 
        stipulation of an oil and gas lease for such lands, except in 
        the case of an emergency; and
          (2) create an incentive for oil and gas operators to adopt 
        best management practices that minimize adverse impacts to 
        wildlife habitat, by providing expedited permit review for any 
        operator that commits to adhering to those practices without 
        seeking waiver of such stipulations.

SEC. 107. FEDERAL CONSISTENCY APPEALS.

  (a) Short Title.--This section may be cited as the ``Federal 
Consistency Appeals Decision Refinement Act''.
  (b) Clarification of Appeal Decision Time Periods and Information 
Requirements.--Section 319(b) of the Coastal Zone Management Act of 
1972 (16 U.S.C. 1465(b)) is amended--
          (1) in paragraph (1), by striking ``160-day'' and inserting 
        ``320-day'';
          (2) in paragraph (3)(A)--
                  (A) by striking ``160-day'' and inserting ``320-
                day''; and
                  (B) by amending clause (ii) to read as follows:
                          ``(ii) as the Secretary determines necessary 
                        to receive, on an expedited basis, any 
                        supplemental or clarifying information relevant 
                        to the consolidated record compiled by the lead 
                        Federal permitting agency to complete a 
                        consistency review under this title.''; and
          (3) in paragraph (3)(B)--
                  (A) by striking ``160-day'' and inserting ``320-
                day''; and
                  (B) by striking ``for a period not to exceed 60 
                days.'' and inserting ``once.''.

 TITLE II--FEDERAL ENERGY PUBLIC ACCOUNTABILITY, INTEGRITY, AND PUBLIC 
                                INTEREST

 Subtitle A--Accountability and Integrity in the Federal Energy Program

SEC. 201. LIMITATIONS ON ROYALTY IN-KIND.

  Section 342 of the Energy Policy Act of 2005 (42 U.S.C. 15902(d)) is 
amended--
          (1) in subsection (d)--
                  (A) in the heading by striking ``Benefit'' and 
                inserting ``Filling of Strategic Petroleum Reserve and 
                Benefit''; and
                  (B) by striking ``only if'' and inserting ``only if 
                receiving such royalties in-kind is for the purpose of 
                filling the Strategic Petroleum Reserve and''; and
          (2) by adding at the end:
  ``(k) Limitation.--
          ``(1) In general.--No amount of the total amount of royalties 
        collected by the Secretary in a fiscal year may be collected as 
        royalties in-kind.
          ``(2) Exception.--Paragraph (1) shall not apply with respect 
        to royalties in-kind collected for the purpose of filling the 
        Strategic Petroleum Reserve.''.

SEC. 202. AUDITS.

  (a) Requirement To Increase the Number of Audits.--The Secretary of 
the Interior shall ensure that by fiscal year 2009 the Minerals 
Management Service shall perform no less that 550 audits of oil and gas 
leases each fiscal year.
  (b) Standards.--Not later than 120 days after the date of enactment 
of this Act, the Secretary of the Interior shall issue regulations that 
require that all employees that conduct audits or compliance reviews 
must meet professional auditor qualifications that are consistent with 
the latest revision of the Government Auditing Standards published by 
the Government Accountability Office. Such regulations shall also 
ensure that all audits conducted by the Department of the Interior are 
performed in accordance with such standards.

SEC. 203. FINES AND PENALTIES.

  (a) Sanctions for Violations Relating to Federal Oil and Gas 
Royalties.--Section 109 of the Federal Oil and Gas Royalty Management 
Act of 1982 (30 U.S.C. 1719) is amended to read as follows:
                           ``civil penalties
  ``Sec. 109.  (a) Royalty Violations.--(1) No person shall--
          ``(A) after due notice of violation or after such violation 
        has been reported under paragraph (3)(A), fail or refuse to 
        comply with any requirement of any mineral leasing law or any 
        regulation, order, lease, or permit under such a law;
          ``(B) fail or refuse to make any royalty payment in the 
        amount or value required by any mineral leasing law or any 
        regulation, order, or lease under such a law;
          ``(C) fail or refuse to make any royalty payment by the date 
        required by any mineral leasing law or any regulation, order, 
        or lease under such a law; or
          ``(D) prepare, maintain, or submit any false, inaccurate, or 
        misleading report, notice, affidavit, record, data, or other 
        written information or filing related to royalty payments that 
        is required under any mineral leasing law or regulation issued 
        under any mineral leasing law.
  ``(2) A person who violates paragraph (1) shall be liable--
          ``(A) in the case of a violation of subparagraph (B) or (C) 
        of paragraph (1) for an amount equal to 3 times the royalty the 
        person fails or refuses to pay, plus interest on that trebled 
        amount measured from the first date the royalty payment was 
        due; and
          ``(B) in the case of any violation, for a civil penalty of up 
        to $25,000 per violation for each day the violation continues.
  ``(3) Paragraph (2) shall not apply to a violation of paragraph (1) 
if the person who commits the violation, within 30 days of the 
violation--
          ``(A) reports the violation to the Secretary or a 
        representative designated by the Secretary; and
          ``(B) corrects the violation.
  ``(b) Lease Administration Violations.--Any person who--
          ``(1) fails to notify the Secretary of--
                  ``(A) any designation by the person under section 
                102(a); or
                  ``(B) any other assignment of obligations or 
                responsibilities of the person under a lease;
          ``(2) fails or refuses to permit--
                  ``(A) lawful entry;
                  ``(B) inspection, including any inspection authorized 
                by section 108; or
                  ``(C) audit, including any failure or refusal to 
                promptly tender requested documents;
          ``(3) fails or refuses to comply with subsection 102(b)(3) 
        (relating to notification regarding beginning or resumption of 
        production); or
          ``(4) fails to correctly report and timely provide operations 
        or financial records necessary for the Secretary or any 
        authorized designee of the Secretary to accomplish lease 
        management responsibilities,
shall be liable for a penalty of up to $10,000 per violation for each 
day such violation continues.
  ``(c) Theft.--Any person who--
          ``(1) knowingly or willfully takes or removes, transports, 
        uses or diverts any oil or gas from any lease site without 
        having valid legal authority to do so; or
          ``(2) purchases, accepts, sells, transports, or conveys to 
        another, any oil or gas knowing or having reason to know that 
        such oil or gas was stolen or unlawfully removed or diverted,
shall be liable for a penalty of up to $25,000 per violation for each 
day such violation continues without correction.
  ``(d) Repeated Violations.--(1)(A) If the Secretary or an authorized 
designee of the Secretary determines that any person has repeatedly 
violated subsection (a), (b), or (c), the Secretary or designee shall 
notify the person of the violation and demand compliance.
  ``(B) A person notified pursuant to subparagraph (A) shall correct 
the violations by not later than 30 calendar days after the date of the 
notification.
  ``(C) Any person who fails to comply with a demand under subparagraph 
(A) shall be liable to the United States for a civil penalty equal to 3 
times the amount of any civil penalty that otherwise applies under 
subsection (a), (b), or (c) to the violations to which the demand 
relates.
  ``(2) In addition to the penalty provided in paragraph (1)(C), if the 
Secretary determines that any person has repeatedly violated subsection 
(a), (b), or (c) or any lease management order, the Secretary may--
          ``(A) shut in and cease production of any oil or gas lease 
        held by the person;
          ``(B) prohibit the person--
                  ``(i) from acquiring any additional oil or gas lease, 
                including by transfer or assignment; and
                  ``(ii) from being designated under section 102(a) to 
                make payments due under any lease;
          ``(C) cancel or transfer any interest in an oil or gas lease 
        held by the person; and
          ``(D) collect from the person reimbursement, including 
        interest, of all costs of release, transfer, or reclamation of 
        lease sites canceled or transferred, including costs of 
        disposing of lease property, facilities, and equipment.
  ``(e) Administrative Appeal.--(1) Any determination by the Secretary 
or a designee of the Secretary of the amount of any royalties or civil 
penalties owed under subsection (a), (b), (c), or (d) shall be final, 
unless within 15 days after notification by the Secretary or designee 
the person liable for such amount files an administrative appeal in 
accordance with regulations issued by the Secretary.
  ``(2) If a person files an administrative appeal pursuant to 
paragraph (1), the Secretary or designee shall make a final 
determination in accordance with the regulations referred to in 
paragraph (1).
  ``(f) Deduction.--The amount of any penalty under this section, as 
finally determined may be deducted from any sums owing by the United 
States to the person charged.
  ``(g) Compromise and Reduction.--On a case-by-case basis the 
Secretary may compromise or reduce civil penalties under this section.
  ``(h) Notice.--Notice under this subsection (a) shall be by personal 
service by an authorized representative of the Secretary or by 
registered mail. Any person may, in the manner prescribed by the 
Secretary, designate a representative to receive any notice under this 
subsection.
  ``(i) Record of Determination.--In determining the amount of such 
penalty, or whether it should be remitted or reduced, and in what 
amount, the Secretary shall state on the record the reasons for his 
determinations.
  ``(j) Judicial Review.--Any person who has requested a hearing in 
accordance with subsection (e) within the time the Secretary has 
prescribed for such a hearing and who is aggrieved by a final order of 
the Secretary under this section may seek review of such order in the 
United States district court for the judicial district in which the 
violation allegedly took place. Review by the district court shall be 
only on the administrative record and not de novo. Such an action shall 
be barred unless filed within 90 days after the Secretary's final 
order.
  ``(k) Failure To Pay.--If any person fails to pay an assessment of a 
civil penalty under this Act--
          ``(1) after the order making the assessment has become a 
        final order and if such person does not file a petition for 
        judicial review of the order in accordance with subsection (j), 
        or
          ``(2) after a court in an action brought under subsection (j) 
        has entered a final judgment in favor of the Secretary,
the court shall have jurisdiction to award the amount assessed plus 
interest from the date of the expiration of the 90-day period referred 
to in subsection (j). Judgment by the court shall include an order to 
pay.
  ``(l) Relationship to Mineral Leasing Act.--No person shall be liable 
for a civil penalty under subsection (a) or (b) for failure to pay any 
rental for any lease automatically terminated pursuant to section 31 of 
the Mineral Leasing Act.
  ``(m) Tolling of Statutes of Limitation.--(1) Any determination by 
the Secretary or a designee of the Secretary that a person has violated 
subsection (a), (b)(2), or (b)(4) shall toll any applicable statute of 
limitations for all oil and gas leases held or operated by such person, 
until the later of--
          ``(A) the date on which the person corrects the violation and 
        certifies that all violations of a like nature have been 
        corrected for all of the oil and gas leases held or operated by 
        such person; or
          ``(B) the date a final, nonappealable order has been issued 
        by the Secretary or a court of competent jurisdiction.
  ``(2) A person determined by the Secretary or a designee of the 
Secretary to have violated subsection (a), (b)(2), or (b)(4) shall 
maintain all records with respect to the person's oil and gas leases 
until the later of--
          ``(A) the date the Secretary releases the person from the 
        obligation to maintain such records; and
          ``(B) the expiration of the period during which the records 
        must be maintained under section 103(b).
  ``(n) State Sharing of Penalties.--Amounts received by the United 
States in an action brought under section 3730 of title 31, United 
States Code, that arises from any underpayment of royalties owed to the 
United States under any lease shall be treated as royalties paid to the 
United States under that lease for purposes of the mineral leasing laws 
and the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-4 
et seq.).''.
  (b) Shared Civil Penalties.--Section 206 of the Federal Oil and Gas 
Royalty Management Act of 1982 (30 U.S.C. 1736) is amended--
          (1) by inserting ``trebled royalties or'' after ``50 per 
        centum of any''; and
          (2) by striking the second sentence.

Subtitle B--Amendments to Federal Oil and Gas Royalty Management Act of 
                                  1982

SEC. 211. AMENDMENTS TO DEFINITIONS.

  Section 3 of the Federal Oil and Gas Royalty Management Act of 1982 
(30 U.S.C. 1702) is amended--
          (1) in paragraph (20)(A), by striking ``: Provided, That'' 
        and all that follows through ``subject of the judicial 
        proceeding'';
          (2) in paragraph (20)(B), by striking ``(with written notice 
        to the lessee who designated the designee)'';
          (3) in paragraph (23)(A), by striking ``(with written notice 
        to the lessee who designated the designee)'' ;
          (4) by amending paragraph (24) to read as follows:
          ``(24) `designee' means any person who pays, offsets, or 
        credits monies, makes adjustments, requests and receives 
        refunds, or submits reports with respect to payments a lessee 
        must make pursuant to section 102(a);'';
          (5) in paragraph (25)(B), by striking ``(subject to the 
        provisions of section 102(a) of this Act)''; and
          (6) in paragraph (26), by striking ``(with notice to the 
        lessee who designated the designee)''.

SEC. 212. INTEREST.

  (a) Estimated Payments; Interest on Amount of Underpayment.--Section 
111(j) of the Federal Oil and Gas Royalty Management Act of 1982 (30 
U.S.C. 1721(j)) is amended by striking ``If the estimated payment 
exceeds the actual royalties due, interest is owed on the 
overpayment.''.
  (b) Overpayments.--Section 111 of the Federal Oil and Gas Royalty 
Management Act of 1982 (30 U.S.C. 1721) is amended by striking 
subsections (h) and (i).
  (c) Effective Date.--The amendments made by this section shall be 
effective one year after the date of enactment of this Act.

SEC. 213. OBLIGATION PERIOD.

  Section 115(c) of the Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1724(c)) is amended by adding at the end the following:
          ``(3) Adjustments.--In the case of an adjustment under 
        section 111A(a) (30 U.S.C. 1721a(a)) in which a recoupment by 
        the lessee results in an underpayment of an obligation, for 
        purposes of this Act the obligation becomes due on the date the 
        lessee or its designee makes the adjustment.''.

SEC. 214. TOLLING AGREEMENTS AND SUBPOENAS.

  (a) Tolling Agreements.--Section 115(d)(1) of the Federal Oil and Gas 
Royalty Management Act of 1982 (30 U.S.C. 1724(d)(1)) is amended by 
striking ``(with notice to the lessee who designated the designee)''.
  (b) Subpoenas.--Section 115(d)(2)(A) of the Federal Oil and Gas 
Royalty Management Act of 1982 (30 U.S.C. 1724(d)(2)(A)) is amended by 
striking ``(with notice to the lessee who designated the designee, 
which notice shall not constitute a subpoena to the lessee)''.

SEC. 215. LIABILITY FOR ROYALTY PAYMENTS.

  Section 102(a) of the Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1712(a)) is amended to read as follows:
  ``(a) In order to increase receipts and achieve effective collections 
of royalty and other payments, a lessee who is required to make any 
royalty or other payment under a lease or under the mineral leasing 
laws, shall make such payments in the time and manner as may be 
specified by the Secretary or the applicable delegated State. Any 
person who pays, offsets or credits monies, makes adjustments, requests 
and receives refunds, or submits reports with respect to payments the 
lessee must make is the lessee's designee under this Act. 
Notwithstanding any other provision of this Act to the contrary, a 
designee shall be liable for any payment obligation of any lessee on 
whose behalf the designee pays royalty under the lease. The person 
owning operating rights in a lease and a person owning legal record 
title in a lease shall be liable for that person's pro rata share of 
payment obligations under the lease.''.

       Subtitle C--Public Interest in the Federal Energy Program

SEC. 221. SURFACE OWNER PROTECTION.

  (a) Definitions.--As used in this section--
          (1) the term ``Secretary'' means the Secretary of the 
        Interior;
          (2) the term ``lease'' means a lease issued by the Secretary 
        under the Mineral Leasing Act (30 U.S.C. 181 et seq.);
          (3) the term ``lessee'' means the holder of a lease; and
          (4) the term ``operator'' means any person that is 
        responsible under the terms and conditions of a lease for the 
        operations conducted on leased lands or any portion thereof.
  (b) Post-Lease Surface Use Agreement.--
          (1) In general.--Except as provided in subsection (c), the 
        Secretary may not authorize any operator to conduct exploration 
        and drilling operations on lands with respect to which title to 
        oil and gas resources is held by the United States but title to 
        the surface estate is not held by the United States, until the 
        operator has filed with the Secretary a document, signed by the 
        operator and the surface owner or owners, showing that the 
        operator has secured a written surface use agreement between 
        the operator and the surface owner or owners that meets the 
        requirements of paragraph (2).
          (2) Contents.--The surface use agreement shall provide for--
                  (A) the use of only such portion of the surface 
                estate as is reasonably necessary for exploration and 
                drilling operations based on site-specific conditions;
                  (B) the accommodation of the surface estate owner to 
                the maximum extent practicable, including the location, 
                use, timing, and type of exploration and drilling 
                operations, consistent with the operator's right to 
                develop the oil and gas estate;
                  (C) the reclamation of the site to a condition 
                capable of supporting the uses which such lands were 
                capable of supporting prior to exploration and drilling 
                operations or other uses as agreed to by the operator 
                and the surface owner; and
                  (D) compensation for damages as a result of 
                exploration and drilling operations, including but not 
                limited to--
                          (i) loss of income and increased costs 
                        incurred;
                          (ii) damage to or destruction of personal 
                        property, including crops, forage, and 
                        livestock; and
                          (iii) failure to reclaim the site in 
                        accordance with this subparagraph (C).
          (3) Procedure.--
                  (A) In general.--An operator shall notify the surface 
                estate owner or owners of the operator's desire to 
                conclude an agreement under this section. If the 
                surface estate owner and the operator do not reach an 
                agreement within 90 days after the operator has 
                provided such notice, the matter shall be referred to 
                third party arbitration for resolution within a period 
                of 90 days. The cost of such arbitration shall be the 
                responsibility of the operator.
                  (B) Identification of arbiters.--The Secretary shall 
                identify persons with experience in conducting 
                arbitrations and shall make this information available 
                to operators and surface owners.
                  (C) Referral to identified arbiter.--Referral of a 
                matter for arbitration by a person identified by the 
                Secretary pursuant to subparagraph (B) shall be 
                sufficient to constitute compliance with subparagraph 
                (A).
          (4) Attorneys fees.--If action is taken to enforce or 
        interpret any of the terms and conditions contained in a 
        surface use agreement, the prevailing party shall be reimbursed 
        by the other party for reasonable attorneys fees and actual 
        costs incurred, in addition to any other relief which a court 
        or arbitration panel may grant.
  (c) Authorized Exploration and Drilling Operations.--
          (1) Authorization without surface use agreement.--The 
        Secretary may authorize an operator to conduct exploration and 
        drilling operations on lands covered by subsection (b) in the 
        absence of an agreement with the surface estate owner or 
        owners, if--
                  (A) the Secretary makes a determination in writing 
                that the operator made a good faith attempt to conclude 
                such an agreement, including referral of the matter to 
                arbitration pursuant to subsection (b)(3), but that no 
                agreement was concluded within 90 days after the 
                referral to arbitration;
                  (B) the operator submits a plan of operations that 
                provides for the matters specified in subsection (b)(2) 
                and for compliance with all other applicable 
                requirements of Federal and State law; and
                  (C) the operator posts a bond or other financial 
                assurance in an amount the Secretary determines to be 
                adequate to ensure compensation to the surface estate 
                owner for any damages to the site, in the form of a 
                surety bond, trust fund, letter of credit, government 
                security, certificate of deposit, cash, or equivalent.
          (2) Surface owner participation.--The Secretary shall provide 
        surface estate owners with an opportunity to--
                  (A) comment on plans of operations in advance of a 
                determination of compliance with this section;
                  (B) participate in bond level determinations and bond 
                release proceedings under this subsection;
                  (C) attend an on-site inspection during such 
                determinations and proceedings;
                  (D) file written objections to a proposed bond 
                release; and
                  (E) request and participate in an on-site inspection 
                when they have reason to believe there is a violation 
                of the terms and conditions of a plan of operations.
          (3) Payment of financial guarantee.--A surface estate owner 
        with respect to any land subject to a lease may petition the 
        Secretary for payment of all or any portion of a bond or other 
        financial assurance required under this subsection as 
        compensation for any damages as a result of exploration and 
        drilling operations. Pursuant to such a petition, the Secretary 
        may use such bond or other guarantee to provide compensation to 
        the surface estate owner for such damages.
          (4) Bond release.--Upon request and after inspection and 
        opportunity for surface estate owner review, the Secretary may 
        release the financial assurance required under this subsection 
        if the Secretary determines that exploration and drilling 
        operations have ended and all damages have been fully 
        compensated.
  (d) Surface Owner Notification.--The Secretary shall--
          (1) notify surface estate owners in writing at least 45 days 
        in advance of lease sales;
          (2) within ten working days after a lease is issued, notify 
        surface estate owners regarding the identity of the lessee;
          (3) notify surface estate owners in writing within 10 working 
        days concerning any subsequent decisions regarding a lease, 
        such as modifying or waiving stipulations and approving rights-
        of-way; and
          (4) notify surface estate owners within five business days 
        after issuance of a drilling permit under a lease.
  (e) Regulations.--The Secretary shall issue regulations implementing 
this section by not later than 1 year after the date of the enactment 
of this Act.

SEC. 222. ONSHORE OIL AND GAS RECLAMATION AND BONDING.

  Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is amended by 
adding at the end the following:
  ``(q) Reclamation Requirements.--An operator producing oil or gas 
(including coalbed methane) under a lease issued pursuant to this Act 
shall--
          ``(1) at a minimum restore the land affected to a condition 
        capable of supporting the uses that it was capable of 
        supporting prior to any drilling, or higher or better uses of 
        which there is reasonable likelihood, so long as such use or 
        uses do not present any actual or probable hazard to public 
        health or safety or pose any actual or probable threat of water 
        diminution or pollution, and the permit applicants' declared 
        proposed land use following reclamation is not impractical or 
        unreasonable, inconsistent with applicable land use policies 
        and plans, or involve unreasonable delay in implementation, or 
        is violative of Federal or State law;
          ``(2) ensure that all reclamation efforts proceed in an 
        environmentally sound manner and as contemporaneously as 
        practicable with the oil and gas drilling operations; and
          ``(3) submit with the plan of operations a reclamation plan 
        that describes in detail the methods and practices that will be 
        used to ensure complete and timely restoration of all lands 
        affected by oil and gas operations.
  ``(r) Reclamation Bond or Other Financial Assurances.--An operator 
producing oil or gas (including coalbed methane) under a lease issued 
under this Act shall post a bond or other financial assurances that 
cover the reclamation of that area of land within the permit area upon 
which the operator will initiate and conduct oil and gas drilling and 
reclamation operations within the initial term of the permit. As 
succeeding increments of oil and gas drilling and reclamation 
operations are to be initiated and conducted within the permit area, 
the lessee shall file with the regulatory authority an additional bond 
or bonds or other financial assurances to cover such increments in 
accordance with this section. The amount of the bond or other financial 
assurances required for each bonded area shall depend upon the 
reclamation requirements of the approved permit; shall reflect the 
probable difficulty of reclamation giving consideration to such factors 
as topography, geology of the site, hydrology, and revegetation 
potential; and shall be determined by the Secretary. The amount of the 
bond or other financial assurances shall be sufficient to assure the 
completion of the reclamation plan if the work had to be performed by 
the Secretary in the event of forfeiture.
  ``(s) Regulations.--No later than one year after the date of the 
enactment of this subsection, the Secretary shall promulgate 
regulations to implement the requirements, including for the release of 
bonds or other financial assurances, of subsections (q) and (r).''.

SEC. 223. PROTECTION OF WATER RESOURCES.

  (a) Mineral Leasing Act Requirements.--Section 17 of the Mineral 
Leasing Act (30 U.S.C. 226) is further amended by adding at the end the 
following:
  ``(t) Water Requirements.--
          ``(1) In general.--An operator producing oil or gas 
        (including coalbed methane) under a lease issued under this Act 
        shall--
                  ``(A) remediate or replace the water supply of a 
                water user who obtains all or part of such user's 
                supply of water for domestic, agricultural, or other 
                purposes from an underground or surface source that has 
                been affected by contamination, diminution, or 
                interruption proximately resulting from drilling 
                operations for such production; and
                  ``(B) comply with all applicable requirements of 
                Federal and State law for discharge of any water 
                produced under the lease.
          ``(2) Water management plan.--An application for a permit to 
        drill submitted pursuant to a lease issued under this Act shall 
        be accompanied by a proposed water management plan including 
        provisions to--
                  ``(A) protect the quantity and quality of surface and 
                ground water systems, both on-site and off-site, from 
                adverse effects of the exploration, development, and 
                reclamation processes or to provide alternative sources 
                of water if such protection cannot be assured;
                  ``(B) protect the rights of present users of water 
                that would be affected by operations under the lease, 
                including the discharge of any water produced in 
                connection with such operations that is not reinjected; 
                and
                  ``(C) identify any agreements with other parties for 
                the beneficial use of produced waters and the steps 
                that will be taken to comply with State and Federal 
                laws related to such use.''.
  (b) Relation to State Law.--Nothing in this subtitle or any amendment 
made by this subtitle shall--
          (1) be construed as impairing or in any manner affecting any 
        right or jurisdiction of any State with respect to the waters 
        of such State; or
          (2) be construed as limiting, altering, modifying, or 
        amending any of the interstate compacts or equitable 
        apportionment decrees that apportion water among and between 
        States.
  (c) Regulations.--No later than one year after the date of the 
enactment of this Act, the Secretary of the Interior shall promulgate 
regulations to implement this section.

SEC. 224. DUE DILIGENCE FEE.

  (a) Establishment.--The Secretary of the Interior shall, within 180 
days after the date of enactment of this Act, issue regulations to 
establish a fee with respect to Federal onshore lands that are subject 
to a lease for production of oil, natural gas, or coal under which 
production is not occurring. Such fee shall apply with respect to lands 
that are subject to such a lease that is in effect on the date final 
regulations are promulgated under this subsection or that is issued 
thereafter.
  (b) Amount.--The amount of the fee shall be $1 per year for each acre 
of land that is not in production for that year.
  (c) Assessment and Collection.--The Secretary shall assess and 
collect the fee established under this section.
  (d) Deposit and Use.--Amounts received by the United States in the 
form of the fee established under this section shall be available to 
the Secretary of the Interior for use to repair damage to Federal lands 
and resources caused by oil and gas development, in accordance with the 
the documents submitted by the President with the budget submission for 
fiscal year 2008 relating to the Healthy Lands Initiative. Amounts 
received by the United States as fees under this section shall be 
treated as offsetting receipts. Amounts received by the United States 
in the form of the fee established under this section from nonproducing 
coal leases shall also be available to the Secretary of the Interior 
for any coal-to-liquids programs or pilot projects funded in whole or 
in part by the Federal Government.

                        Subtitle D--Wind Energy

SEC. 231. WIND TURBINE GUIDELINES ADVISORY COMMITTEE.

  (a) In General.--The Secretary of the Interior, within 30 days after 
the date of enactment of this Act, shall convene or utilize an existing 
Wind Turbine Guidelines Advisory Committee to study and make 
recommendations to the Secretary on guidance for avoiding or minimizing 
impacts to wildlife and their habitats related to land-based wind 
energy facilities. The matters assessed by the Committee shall include 
the following:
          (1) The Service Interim Guidance on Avoiding and Minimizing 
        Wildlife Impacts from Wind Turbines of 2003.
          (2) Balancing potential impacts to wildlife with requirements 
        for acquiring the information necessary to assess those impacts 
        prior to selecting sites and designing facilities.
          (3) The scientific tools and procedures best able to assess 
        pre-development risk or benefits provided to wildlife, measure 
        post-development mortality, assess behavioral modification, and 
        provide compensatory mitigation for unavoidable impacts.
          (4) A process for coordinating State, tribal, local, and 
        national review and evaluation of the impacts to wildlife from 
        wind energy consistent with State and Federal laws and 
        international treaties.
          (5) Determination of project size thresholds or impacts below 
        which guidelines may not apply.
          (6) Appropriate timetables for phasing-in guidance.
          (7) Current State actions to avoid and minimize wildlife 
        impacts from wind turbines in consultation with State wildlife 
        agencies.
  (b) Committee Operations.--The Wind Turbine Guidelines Advisory 
Committee shall conduct its activities in accordance with the Federal 
Advisory Committee Act (5 U.S.C. App.). The Secretary is authorized to 
provide such technical analyses and support as is requested by such 
advisory committee.
  (c) Committee Membership.--The membership of the Wind Turbine 
Guidelines Advisory Committee shall not exceed 20 members, and shall be 
appointed by the Secretary of the Interior to achieve balanced 
representation of wind energy development, wildlife conservation, and 
government. The members shall include representatives from the United 
States Fish and Wildlife Service and other Federal agencies, and 
representatives from other interested persons, including States, 
tribes, wind energy development organizations, nongovernmental 
conservation organizations, and local regulatory or licensing 
commissions.
  (d) Report.--The Wind Turbine Advisory Committee shall, within 18 
months after the date of enactment of this Act, submit a report to 
Congress and the Secretary providing recommended guidance for 
developing effective measures to protect wildlife resources and enhance 
potential benefits to wildlife that may be identified.
  (e) Issuance of Guidance.--Not later than 6 months after receiving 
the report of the Wind Turbine Guidelines Advisory Committee under 
subsection (d), the Secretary shall following public notice and comment 
issue final guidance to avoid and minimize impacts to wildlife and 
their habitats related to land-based wind energy facilities. Such 
guidance shall be based upon the findings and recommendations made in 
the report.

SEC. 232. AUTHORIZATION OF APPROPRIATIONS FOR RESEARCH TO STUDY WIND 
                    ENERGY IMPACTS ON WILDLIFE.

  There is authorized to be appropriated to the Secretary of the 
Interior $2,000,000 for each of fiscal years 2008 through 2015 for new 
and ongoing research efforts to evaluate methods for minimizing 
wildlife impacts at wind energy projects and to explore effective 
mitigation methods that may be utilized for that purpose.

SEC. 233. ENFORCEMENT.

  The Secretary shall enforce the Endangered Species Act of 1973, the 
Migratory Bird Treaty Act, the Bald Eagle Protection Act, the Golden 
Eagle Protection Act, the Marine Mammal Protection Act of 1973, the 
National Environmental Policy Act of 1969, and any other relevant 
Federal law to address adverse wildlife impacts related to wind 
projects. Nothing in this section preempts State enforcement of 
applicable State laws.

SEC. 234. SAVINGS CLAUSE.

  Nothing in this subtitle preempts any provision of State law or 
regulation relating to the siting of wind projects or to consideration 
or review of any environmental impacts of wind projects.

               Subtitle E--Enhancing Energy Transmission

SEC. 241. POWER MARKETING ADMINISTRATIONS REPORT.

  (a) Analysis.--The Secretary of Energy, acting through the 
Administrators of the Bonneville and Western Area Power Marketing 
Administrations and in coordination with regional transmission 
entities, shall conduct, or participate with such regional transmission 
entities to conduct, an analysis of the existing capacity of 
transmission systems serving the States of California, Oregon, and 
Washington to determine whether the existing capacity is adequate to 
accommodate and integrate development and commercial operation of ocean 
wave, tidal, and current energy projects in State and Federal marine 
waters adjacent to those States.
  (b) Report.--Based on the analysis conducted under subsection (a), 
the Secretary of Energy shall prepare and provide to the Natural 
Resources Committee of the House of Representatives and the Energy and 
Natural Resources Committee of the Senate, not later than one year 
after the date of enactment of this Act, a report identifying changes 
required, if any, in the capacity of existing transmission systems 
serving the States referred to in subsection (a) in order to reliably 
and efficiently accommodate and integrate generation from commercial 
ocean wave, tidal, and current energy projects in aggregate, escalating 
amounts equal to 2.5, 5, and 10 percent of the current electrical 
energy consumption in those States.
  (c) Limitation on Implementation of Changes.--The Secretary of Energy 
shall not implement any changes identified in the report under 
subsection (b) until the Secretary determines that transmission 
capacity backlogs associated with other renewable energies and existing 
at the time the report is issued have been accommodated and integrated 
within transmission systems serving the States of California, Oregon, 
and Washington.
  (d) Activities Nonreimbursable.--Activities carried out under 
subsection (a) or (b) shall be nonreimbursable.
  (e) Existing Procedures and Queuing Not Affected.--Nothing in this 
section supercedes existing procedures and queuing pursuant to the 
appropriate Open Access Transmission Tariffs filed by the 
Administrators of the Bonneville and Western Area Power 
Administrations.

              TITLE III--ALTERNATIVE ENERGY AND EFFICIENCY

SEC. 301. STATE OCEAN AND COASTAL ALTERNATIVE ENERGY PLANNING.

  (a) In General.--The Coastal Zone Management Act of 1972 (16 U.S.C. 
1451 et seq.) is amended by inserting after section 306A the following:
   ``ocean and coastal alternative energy state surveys; alternative 
                energy site identification and planning
  ``Sec. 306B.  (a) Grants to States.--The Secretary may make grants to 
eligible coastal States to support voluntary State efforts to initiate 
and complete surveys of portions of coastal State waters and Federal 
waters adjacent to a State's coastal zone, in consultation with the 
Minerals Management Service, to identify potential areas suitable or 
unsuitable for the exploration, development, and production of 
alternative energy that are consistent with the enforceable policies of 
coastal management plans approved pursuant to section 306A.
  ``(b) Survey Elements.--Surveys developed with grants under this 
section may include, but not be limited to--
          ``(1) hydrographic and bathymetric surveys;
          ``(2) oceanographic observations and measurements of the 
        physical ocean environment, especially seismically active 
        areas;
          ``(3) identification and characterization of significant or 
        sensitive marine ecosystems or other areas possessing important 
        conservation, recreational, ecological, historic, or aesthetic 
        values;
          ``(4) surveys of existing marine uses in the outer 
        Continental Shelf and identification of potential conflicts;
          ``(5) inventories and surveys of shore locations and 
        infrastructure capable of supporting alternative energy 
        development;
          ``(6) inventories and surveys of offshore locations and 
        infrastructure capable of supporting alternative energy 
        development; and
          ``(7) other actions as may be necessary.
  ``(c) Participation and Cooperation.--To the extent practicable, 
coastal States shall provide opportunity for the participation in 
surveys under this section by relevant Federal agencies, State 
agencies, local governments, regional organizations, port authorities, 
and other interested parties and stakeholders, public and private, that 
is adequate to develop a comprehensive survey.
  ``(d) Guidelines.--The Secretary shall, within 180 days after the 
date of enactment of this section and after consultation with the 
coastal States, publish guidelines for the application for and use of 
grants under this section.
  ``(e) Annual Grants.--For each of fiscal years 2008 through 2011, the 
Secretary may make a grant to a coastal State under this section if the 
coastal State demonstrates to the satisfaction of the Secretary that 
the grant will be used to develop an alternative energy survey 
consistent with the requirements set forth in section 306A and this 
section.
  ``(f) Grant Amounts.--The amount of any grant under this section 
shall not exceed $750,000 for any fiscal year.
  ``(g) State Match.--
          ``(1) Before fiscal year 2010.--The Secretary shall not 
        require any State matching fund contribution for grants awarded 
        under this section for any fiscal year before fiscal year 2010.
          ``(2) After fiscal year 2010.--The Secretary shall require a 
        coastal State to provide a matching fund contribution for a 
        grant under this section for surveys of a State's coastal 
        waters, according to--
                  ``(A) a 2-to-1 ratio of Federal-to-State 
                contributions for fiscal year 2010; and
                  ``(B) a 1-to-1 ratio of Federal-to-State 
                contributions for fiscal year 2011.
          ``(3) Limitation.--The Secretary shall not require any 
        matching funds for surveys of Federal waters adjacent to a 
        State's coastal zone.
  ``(h) Secretarial Review.--After an initial grant is made to a 
coastal State under this section, no subsequent grant may be made to 
that coastal State under this section unless the Secretary finds that 
the coastal State is satisfactorily developing its survey.
  ``(i) Limitation on Eligibility.--No coastal State is eligible to 
receive grants under this section for more than 4 fiscal years.
  ``(j) Applicability.--This section and the surveys conducted with 
assistance under this section shall not be construed to convey any new 
authority to any coastal State, or repeal or supersede any existing 
authority of any Federal agency, to regulate the siting, licensing, 
leasing, or permitting of alternative energy facilities in areas of the 
outer Continental Shelf under the administration of the Federal 
Government. Nothing in this section repeals or supersedes any existing 
coastal State authority pursuant to State or Federal law.
  ``(k) Priority.--Any area that is identified as suitable for 
potential alternative energy development under surveys developed with 
assistance under this section shall be given priority consideration by 
Federal agencies for the siting, licensing, leasing, or permitting of 
alternative energy facilities. Any area that is identified as 
unsuitable under surveys developed with assistance under this section 
shall be avoided by Federal agencies to the maximum extent practicable.
  ``(l) Assistance by the Secretary.--The Secretary shall--
          ``(1) under section 307(a) and to the extent practicable, 
        make available to coastal States the resources and capabilities 
        of the National Oceanic and Atmospheric Administration to 
        provide technical assistance to the coastal States to develop 
        surveys under this section; and
          ``(2) encourage other Federal agencies with relevant 
        expertise to participate in providing technical assistance 
        under this subsection.''.
  (b) Authorization of Appropriations.--Section 318(a) of the Coastal 
Zone Management Act of 1972 (16 U.S.C. 1464) is amended--
          (1) in paragraph (1)(C) by striking ``and'' after the 
        semicolon;
          (2) in paragraph (2), by striking the period at the end and 
        inserting a semicolon; and
          (3) by adding at the end the following:
          ``(3) for grants under section 306B such sums as are 
        necessary; and''.

SEC. 302. CANAL-SIDE POWER PRODUCTION AT BUREAU OF RECLAMATION 
                    PROJECTS.

  (a) Evaluation and Report.--Not later than one year after the date of 
the enactment of this Act, the Secretary of the Interior shall complete 
an evaluation and report to Congress on the potential for developing 
rights-of-way along Bureau of Reclamation canals and infrastructure for 
solar or wind energy production through leasing of lands or other 
means. The report to Congress shall specify--
          (1) location of potential rights-of-way for energy 
        production;
          (2) total acreage available for energy production;
          (3) existing transmission infrastructure at sites;
          (4) estimates of fair market leasing value of potential 
        energy sites; and
          (5) estimate energy development potential at sites.
  (b) Consultation.--In carrying out this section the Secretary of the 
Interior shall consult with persons that would be affected by 
development of rights-of-ways referred to in subsection (a), including 
the beneficiaries of the canal and infrastructure evaluated under that 
subsection.
  (c) Limitations.--Nothing in this section--
          (1) shall be construed to authorize the Bureau of Reclamation 
        or any contractor hired by the Bureau of Reclamation to 
        inventory or access rights-of-way owned or operated and 
        maintained by non-Federal interests, unless such interests 
        provide written permission for such inventory or an agreement 
        or contract governing Federal access is in effect;
          (2) shall be construed to impede accessibility, impair 
        project operations and maintenance, or create additional costs 
        for entities managing the rights-of-way; or
          (3) shall be used as the basis of an increase in project-use 
        power or preference power costs that will be borne by the 
        consumer.

SEC. 303. INCREASING ENERGY EFFICIENCIES FOR WATER DESALINATION.

  The Water Desalination Act of 1996 (42 U.S.C. 10301 note; Public Law 
104-298) is amended by adding at the end the following new section:

``SEC. 10. RESEARCH ON REVERSE OSMOSIS TECHNOLOGY FOR WATER 
                    DESALINATION AND WATER RECYCLING.

  ``(a) Research Program.--The Secretary of the Interior, in 
consultation with the Secretary of Energy, shall implement a program to 
research methods for improving the energy efficiency of reverse osmosis 
technology for water desalination, water contamination, and water 
recycling.
  ``(b) Report.--Not later than one year after the date of the 
enactment of this Act, the Secretary of the Interior shall submit to 
Congress a report which shall include--
          ``(1) a review of existing and emerging technologies, both 
        domestic and international, that are likely to improve energy 
        efficiency or utilize renewable energy sources at existing and 
        future desalination and recycling facilities; and
          ``(2) an analysis of the economic viability of energy 
        efficiency technologies.''.

SEC. 304. ESTABLISHING A PILOT PROGRAM FOR THE DEVELOPMENT OF STRATEGIC 
                    SOLAR RESERVES ON FEDERAL LANDS.

  (a) Purpose.--The purpose of this section is to establish a pilot 
program for the development of strategic solar reserve on Federal lands 
for the advancement, development, assessment, and installation of 
commercial concentrating solar power energy systems.
  (b) Strategic Solar Reserve Program.--
          (1) Site selection.--The Secretary of the Interior, in 
        consultation with the Secretary of Energy, the Secretary of 
        Defense, and the Federal Energy Regulatory Commission, States, 
        tribal, or local units of governments, as appropriate, affected 
        utility industries, and other interested persons, shall 
        complete the following:
                  (A) Identify Federal lands under the jurisdiction of 
                the Bureau of Land Management, subject to valid 
                existing rights, that are suitable and feasible for the 
                installation of concentrating solar power energy 
                systems sufficient to create a solar energy reserve of 
                no less than 4 GW and no more than 25 GW.
                  (B) Perform any environmental reviews that may be 
                required to complete the designation of such solar 
                reserves.
                  (C) Incorporate the designated solar reserves into 
                the relevant agency land use and resource management 
                plans or equivalent plans.
                  (D) Identify the needed transmission upgrades to the 
                solar reserves.
          (2) Minimum power of sites.--Each site identified as suitable 
        and feasible for the installation of concentrating solar power 
        systems shall be sufficient for the installation of at least 1 
        GW.
          (3) Lands not included.--The following Federal lands shall 
        not be included within a strategic solar reserve site:
                  (A) Components of the National Landscape Conservation 
                System.
                  (B) Areas of Critical Environmental Concern.
          (4) Implementation of the strategic solar reserve leasing 
        program.--
                  (A)  In general.--The Secretary of the Interior, in 
                consultation with the Secretary of Energy and following 
                the completion of the requirements under paragraph 
                (1)(B), shall expeditiously implement a strategic solar 
                reserve leasing program in order to lease lands 
                identified under paragraph (1)(A) to produce no less 
                than 4 GW and no more than 25 GW of concentrating solar 
                power from those lands.
                  (B) Criteria for applications.--The Secretary of the 
                Interior, in consultation with the Secretary of Energy, 
                shall establish criteria for approving applications to 
                lease lands under this paragraph based, in part, on the 
                proposed concentrating solar power technologies 
                proposed to be used under such leases.
                  (C) Variety of technologies.--The Secretary of the 
                Interior, in consultation with the Secretary of Energy, 
                shall provide for a variety of concentrating solar 
                power technologies to be used under leases under this 
                paragraph.
                  (D)  Milestones.--The Secretary of the Interior, in 
                consultation with the Secretary of Energy, shall 
                develop milestones for activities under leases under 
                this subsection to ensure due diligence in the 
                development of lands under such leases.
          (5) Environmental compliance.--The Secretary of the Interior 
        shall complete all necessary environmental surveys, compliance 
        and permitting for rights-of-way pursuant to title V of the 
        Federal Land Policy and Management Act of 1976 for each 
        strategic solar reserve, as expeditiously as possible. The 
        applicant shall pay all costs of environmental compliance, 
        including when a determination is made that the land is not 
        suitable and feasible for such installation or the bid is 
        withdrawn following the initiation of such environmental 
        compliance.
          (6) Permits.--The Secretary of the Interior shall ensure that 
        all strategic solar reserve installation pursuant to this 
        section is permitted using an expedited permitting process. The 
        Secretary shall, in consultation with the Secretary of Energy, 
        complete the preparation of a Programmatic Environmental Impact 
        Statement by the Departments of Energy and the Interior for 
        concentrating solar power on Federal lands.
          (7) Rental fees; lease term.--The rental fee for each 
        strategic solar reserve right-of-way authorization under this 
        subsection shall be established at $300 per acre during the 10-
        year period beginning on the date of the enactment of this Act. 
        Rental fees after such period shall be established by 
        regulations promulgated by the Secretary of the Interior and 
        shall be adjusted by the Secretary each 5 years thereafter. The 
        rental fee shall be paid in annual payments commencing on the 
        day of operation. During the development and construction phase 
        of a project, the rental fee shall be waived. The leases shall 
        be for a term of 30 years. The rental fees established in this 
        section shall apply to all concentrating solar power projects 
        that have pending applications with the Bureau of Land 
        Management as of June 1, 2007.
          (8) Report to congress.--The Secretary of the Interior, in 
        consultation with the Secretary of Energy, shall submit a 
        report to Congress on the findings of the pilot project--
                  (A) not later than 3 years after the installation of 
                the first facility pursuant to this section; and
                  (B) 10 years after the installation of the first 
                facility pursuant to this section.
  (c) Buy American Act.--Beginning 3 years after the date of enactment 
of this Act, any equipment used on lands included within a strategic 
solar reserve site must be American-made, as that term is used in the 
Buy American Act (41 U.S.C. 10a et seq.).
  (d) Davis-Bacon Act.--Notwithstanding any other provision of law, the 
prevailing wage requirements of subchapter IV of chapter 31 of title 
40, United State Code, shall apply to any labor funded under this Act.
  (e) Sunset.--Except as provided in subsection (b)(7), the authorities 
contained in this section shall expire 10 years after the date of the 
enactment of this Act.

SEC. 305. OTEC REGULATIONS.

  The Administrator of the National Oceanic and Atmospheric 
Administration shall, within two years after the date of enactment of 
this Act, issue regulations necessary to implement the Administrator's 
authority to license offshore thermal energy conversion facilities 
under the Ocean Thermal Energy Conversion Research, Development, and 
Demonstration Act (42 U.S.C. 9001 et seq.).

SEC. 306. BIOMASS UTILIZATION PILOT PROGRAM.

  (a) Replacement of Current Grant Program.--Section 210 of the Energy 
Policy Act of 2005 (42 U.S.C. 15855) is amended to read as follows:

``SEC. 210. BIOMASS UTILIZATION PILOT PROGRAM.

  ``(a) Findings.--Congress finds the following:
          ``(1) The supply of woody biomass for energy production is 
        directly linked to forest management planning to a degree far 
        greater than in the case of other types of energy development.
          ``(2) As a consequence of this linkage, the process of 
        developing and evaluating appropriate technologies and 
        facilities for woody biomass energy and utilization must be 
        integrated with long-term forest management planning processes, 
        particularly in situations where Federal lands dominate the 
        forested landscape.
  ``(b) Biomass Definition for Federal Forest Lands.--In this section, 
with respect to organic material removed from National Forest System 
lands or from public lands administered by the Secretary of the 
Interior, the term `biomass' covers only organic material from--
          ``(1) ecological forest restoration;
          ``(2) small-diameter byproducts of hazardous fuels 
        treatments;
          ``(3) pre-commercial thinnings;
          ``(4) brush;
          ``(5) mill residues; and
          ``(6) slash.
  ``(c) Pilot Program.--The Secretary of Agriculture and the Secretary 
of the Interior shall establish a pilot program, to be known as the 
`Biomass Utilization Pilot Program', involving 10 different forest 
types on Federal lands, under which the Secretary concerned will 
provide technical assistance and grants to persons to support the 
following biomass-related activities:
          ``(1) The development of biomass utilization infrastructure 
        to support hazardous fuel reduction and ecological forest 
        restoration.
          ``(2) The research and implementation of integrated 
        facilities that seek to utilize woody biomass for its highest 
        and best uses, with particular emphasis on projects that are 
        linked to implementing community wildfire protection plans, 
        ecological forest restoration, and economic development in 
        rural communities.
          ``(3) The testing of multiple technologies and approaches to 
        biomass utilization for energy, with emphasis on improving 
        energy efficiency, developing thermal applications and 
        distributed heat, biofuels, and achieving cleaner emissions 
        including through combustion with other fuels, as well as other 
        value-added uses.
  ``(d) Biomass Supply Study.--Prior to the development of any biomass 
utilization pilot projects, the Secretary concerned shall develop a 
study to determine the long-term, ecologically sustainable, biomass 
supply available in the pilot program area. The study shall incorporate 
results form coordinated resource offering protocol (CROP) studies. The 
study shall also analyze the long-term availability of biomass 
materials within a reasonable transportation distance. The biomass 
supply studies shall be developed through a collaborative approach, as 
evidenced by the broad involvement, analysis, and agreement of 
interested persons, including local governments, energy developers, 
conservationists, and land management agencies. The results of the 
biomass supply study shall be a basis for determining the project 
scale, as outlined in subsection (g).
  ``(e) Exclusion of Certain Federal Land.--The following Federal lands 
may not be included within a pilot project site:
          ``(1) Federal land containing old-growth forest or late-
        successional forest, unless the Secretary concerned determines 
        that the pilot project on such land is appropriate for the 
        applicable forest type and maximizes and enhances the retention 
        of late-successional and large- and old-growth trees, late-
        successional and old-growth forest structure, and late-
        successional and old-growth forest composition.
          ``(2) Federal land on which the removal of vegetation is 
        prohibited, including components of the National Wilderness 
        Preservation System.
          ``(3) Wilderness Study Areas.
          ``(4) Inventoried roadless areas.
          ``(5) Components of the National Landscape Conservation 
        System.
          ``(6) National Monuments.
  ``(f) Multiple Projects.--In conducting the pilot program, the 
Secretary concerned shall include a variety of projects involving--
          ``(1) innovations in facilities of various sizes and 
        processing techniques; and
          ``(2) the full spectrum of woody biomass producing regions of 
        the United States.
  ``(g) Selection Criteria and Project Scale.--In selecting the 
projects to be conducted under the pilot program, and the appropriate 
scale of projects, the Secretary concerned shall consider criteria that 
evaluate existing economic, ecological, and social conditions, focusing 
on opportunities such as workforce training, job creation, ecosystem 
health, reducing energy costs, and facilitating the production of 
alternative energy fuels. The agreement on the scale of a project shall 
be reached through a collaborative approach, as evidenced by the broad 
involvement, analysis, and agreement of interested persons, including 
local governments, energy developers, conservationists, and land 
management agencies. In selecting the appropriate scale of projects to 
be conducted under the pilot program, the Secretary concerned shall 
also consider the results of the supply study as outlined in subsection 
(d).
  ``(h) Monitoring and Reporting Requirements.--As part of the pilot 
program, the Secretary concerned shall impose monitoring and reporting 
requirements to ensure that the ecological, social, and economic 
effects of the projects conducted under the pilot program are being 
monitored and that the accomplishments, challenges, and lessons of each 
project are recorded and reported.
  ``(i) Other Definitions.--In this section:
          ``(1) Highest and best use.--The term `highest and best use', 
        with regard to biomass, means--
                  ``(A) creating from raw materials those products and 
                those biomass uses that will achieve the highest market 
                value; and
                  ``(B) yielding a wide range of existing and 
                innovative products and biomass uses that create new 
                markets, stimulate existing ones, and improve rural 
                economies, maintains or improves ecosystem integrity, 
                while also supporting traditional biomass energy 
                generation.
          ``(2) Pilot program.--The term `pilot program' means the 
        Biomass Utilization Pilot Program established pursuant to this 
        section.
          ``(3) Secretary concerned.--The term `Secretary concerned' 
        means the Secretary of Agriculture, with respect to National 
        Forest System lands, and the Secretary of the Interior, with 
        respect to public lands administered by the Secretary of the 
        Interior.
          ``(4) Community wildfire protection plan.--The term 
        `community wildfire protection plan' has the meaning given that 
        term in section 101(3) of the Healthy Forest Restoration Act of 
        2003 (16 U.S.C. 6511(3)), which is further described by the 
        Western Governors Association in the document entitled 
        `Preparing a Community Wildfire Protection Plan: A Handbook for 
        Wildland-Interface Communities' and dated March 2004.
          ``(5) Federal land.--The term `Federal land' means--
                  ``(A) land of the National Forest System (as defined 
                in section 11(a) of the Forest and Rangeland Renewable 
                Resources Planning Act of 1974 (16 U.S.C. 1609(a)) 
                administered by the Secretary of Agriculture, acting 
                through the Chief of the Forest Service; and
                  ``(B) public lands (as defined in section 103 of the 
                Federal Land Policy and Management Act of 1976 (43 
                U.S.C. 1702)), the surface of which is administered by 
                the Secretary of the Interior, acting through the 
                Director of the Bureau of Land Management.
          ``(6) Inventoried roadless area.--The term `Inventoried 
        roadless area' means one of the areas identified in the set of 
        inventoried roadless areas maps contained in the Forest Service 
        Roadless Areas Conservation, Final Environmental Impact 
        Statement, Volume 2, dated November 2000.
  ``(j) Authorization of Appropriations.--There is authorized to be 
appropriated such sums as may be necessary to carry out the pilot 
program.''.
  (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is amended by striking the item relating to section 210 and 
inserting the following new item:

``Sec. 210. Biomass utilization pilot program.''.

SEC. 307. PROGRAMMATIC ENVIRONMENTAL IMPACT STATEMENT.

  The Secretary of Commerce and the Secretary of the Interior shall, in 
cooperation with the Federal Energy Regulatory Commission and the 
Secretary of Energy, and in consultation with appropriate State 
agencies, jointly prepare programmatic environmental impact statements 
which contain all the elements of an environmental impact statement 
under section 102 of the National Environmental Policy Act of 1969 (42 
U.S.C. 4332), regarding the impacts of the deployment of marine and 
hydrokinetic renewable energy technologies in the navigable waters of 
the United States. One programmatic environmental impact statement 
shall be prepared under this section for each of the Environmental 
Protection Agency regions of the United States. The agencies shall 
issue the programmatic environmental impact statements under this 
section not later than 18 months after the date of enactment of this 
Act. The programmatic environmental impact statements shall evaluate 
among other things the potential impacts of site selection on fish and 
wildlife and related habitat. Nothing in this section shall operate to 
delay consideration of any application for a license or permit for a 
marine and hydrokinetic renewable energy technology project.

         TITLE IV--CARBON CAPTURE AND CLIMATE CHANGE MITIGATION

            Subtitle A--Geological Sequestration Assessment

SEC. 401. SHORT TITLE.

  This subtitle may be cited as the ``National Carbon Dioxide Storage 
Capacity Assessment Act of 2007''.

SEC. 402. NATIONAL ASSESSMENT.

  (a) Definitions.--In this section:
          (1) Assessment.--The term ``assessment'' means the national 
        assessment of capacity for carbon dioxide completed under 
        subsection (f).
          (2) Capacity.--The term ``capacity'' means the portion of a 
        storage formation that can retain carbon dioxide in accordance 
        with the requirements (including physical, geological, and 
        economic requirements) established under the methodology 
        developed under subsection (b).
          (3) Engineered hazard.--The term ``engineered hazard'' 
        includes the location and completion history of any well that 
        could affect potential storage.
          (4) Risk.--The term ``risk'' includes any risk posed by 
        geomechanical, geochemical, hydrogeological, structural, and 
        engineered hazards.
          (5) Secretary.--The term ``Secretary'' means the Secretary of 
        the Interior, acting through the Director of the United States 
        Geological Survey.
          (6) Storage formation.--The term ``storage formation'' means 
        a deep saline formation, unmineable coal seam, or oil or gas 
        reservoir that is capable of accommodating a volume of 
        industrial carbon dioxide.
  (b) Methodology.--Not later than 1 year after the date of enactment 
of this Act, the Secretary shall develop a methodology for conducting 
an assessment under subsection (f), taking into consideration--
          (1) the geographical extent of all potential storage 
        formations in all States;
          (2) the capacity of the potential storage formations;
          (3) the injectivity of the potential storage formations;
          (4) an estimate of potential volumes of oil and gas 
        recoverable by injection and storage of industrial carbon 
        dioxide in potential storage formations;
          (5) the risk associated with the potential storage 
        formations; and
          (6) the Carbon Sequestration Atlas of the United States and 
        Canada that was completed by the Department of Energy in April 
        2006.
  (c) Coordination.--
          (1) Federal coordination.--
                  (A) Consultation.--The Secretary shall consult with 
                the Secretary of Energy and the Administrator of the 
                Environmental Protection Agency on issues of data 
                sharing, format, development of the methodology, and 
                content of the assessment required under this section 
                to ensure the maximum usefulness and success of the 
                assessment.
                  (B) Cooperation.--The Secretary of Energy and the 
                Administrator shall cooperate with the Secretary to 
                ensure, to the maximum extent practicable, the 
                usefulness and success of the assessment.
          (2) State coordination.--The Secretary shall consult with 
        State geological surveys and other relevant entities to ensure, 
        to the maximum extent practicable, the usefulness and success 
        of the assessment.
  (d) External Review and Publication.--On completion of the 
methodology under subsection (b), the Secretary shall--
          (1) publish the methodology and solicit comments from the 
        public and the heads of affected Federal and State agencies;
          (2) establish a panel of individuals with expertise in the 
        matters described in paragraphs (1) through (5) of subsection 
        (b) composed, as appropriate, of representatives of Federal 
        agencies, institutions of higher education, nongovernmental 
        organizations, State organizations, industry, and international 
        geoscience organizations to review the methodology and comments 
        received under paragraph (1); and
          (3) on completion of the review under paragraph (2), publish 
        in the Federal Register the revised final methodology.
  (e) Periodic Updates.--The methodology developed under this section 
shall be updated periodically (including at least once every 5 years) 
to incorporate new data as the data becomes available.
  (f) National Assessment.--
          (1) In general.--Not later than 2 years after the date of 
        publication of the methodology under subsection (d)(1), the 
        Secretary, in consultation with the Secretary of Energy and 
        State geological surveys, shall complete a national assessment 
        of capacity for carbon dioxide in accordance with the 
        methodology.
          (2) Geological verification.--As part of the assessment under 
        this subsection, the Secretary shall carry out a drilling 
        program to supplement the geological data relevant to 
        determining storage capacity of carbon dioxide in geological 
        storage formations, including--
                  (A) well log data;
                  (B) core data; and
                  (C) fluid sample data.
          (3) Partnership with other drilling programs.--As part of the 
        drilling program under paragraph (2), the Secretary shall 
        enter, as appropriate, into partnerships with other entities to 
        collect and integrate data from other drilling programs 
        relevant to the storage of carbon dioxide in geologic 
        formations.
          (4) Incorporation into natcarb.--
                  (A) In general.--On completion of the assessment, the 
                Secretary of Energy shall incorporate the results of 
                the assessment using the NatCarb database, to the 
                maximum extent practicable.
                  (B) Ranking.--The database shall include the data 
                necessary to rank potential storage sites for capacity 
                and risk, across the United States, within each State, 
                by formation, and within each basin.
          (5) Report.--Not later than 180 days after the date on which 
        the assessment is completed, the Secretary shall submit to the 
        Committee on Natural Resources of the House of Representatives 
        and the Committee on Energy and Natural Resources of the Senate 
        a report describing the findings under the assessment.
          (6) Periodic updates.--The national assessment developed 
        under this section shall be updated periodically (including at 
        least once every 5 years) to support public and private sector 
        decisionmaking.
  (g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $30,000,000 for the period of 
fiscal years 2008 through 2012.

            Subtitle B--Terrestrial Sequestration Assessment

SEC. 421. REQUIREMENT TO CONDUCT AN ASSESSMENT.

  (a) In General.--The Secretary of the Interior, acting through the 
United States Geological Survey, shall--
          (1) conduct an assessment of the amount of carbon stored in 
        terrestrial, aquatic, and coastal ecosystems (including 
        estuaries);
          (2) determine the processes that control the flux of carbon 
        in and out of each ecosystem;
          (3) estimate the potential for increasing carbon 
        sequestration in natural systems through management measures or 
        restoration activities in each ecosystem; and
          (4) develop near-term and long-term adaptation strategies 
        that can be employed to enhance the sequestration of carbon in 
        each ecosystem.
  (b) Use of Native Plant Species.--In developing management measures, 
restoration activities, or adaptation strategies, the Secretary shall 
emphasize the use of native plant species for each ecosystem.
  (c) Consultation.--The Secretary shall develop the methodology and 
conduct the assessment in consultation with the Secretary of Energy, 
the Administrator of the National Oceanic and Atmospheric 
Administration, and the heads of other relevant agencies.

SEC. 422. METHODOLOGY.

  (a) In General.--Within 270 days after the date of enactment of this 
Act, the Secretary shall develop a methodology for conducting the 
assessment.
  (b) Publication of Proposed Methodology; Comment.--Upon completion of 
a proposed methodology, the Secretary shall publish the proposed 
methodology and solicit comments from the public and heads of affected 
Federal and State agencies for 60 days before publishing a final 
methodology.

SEC. 423. COMPLETION OF ASSESSMENT AND REPORT.

  The Secretary shall--
          (1) complete the national assessment within 2 years after 
        publication of the final methodology under section 422; and
          (2) submit a report describing the results of the assessment 
        to the House Committee on Natural Resources and the Senate 
        Committee on Energy and Natural Resources within 180 days after 
        the assessment is completed.

SEC. 424. AUTHORIZATION OF APPROPRIATIONS.

  There is authorized to be appropriated to carry out this subtitle 
$15,000,000 for the period of fiscal years 2008 through 2012.

                  Subtitle C--Sequestration Activities

SEC. 431. CARBON DIOXIDE STORAGE INVENTORY.

  Section 354 of the Energy Policy Act of 2005 (42 U.S.C. 15910) is 
amended by redesignating subsection (d) as subsection (e), and by 
inserting after subsection (c) the following:
  ``(d) Records and Inventory.--The Secretary of the Interior, acting 
through the Bureau of Land Management, shall maintain records on and an 
inventory of the amount of carbon dioxide stored from Federal energy 
leases.''.

SEC. 432. FRAMEWORK FOR GEOLOGICAL CARBON SEQUESTRATION ON FEDERAL 
                    LANDS.

  Not later than 1 year after the date of enactment of this Act, the 
Secretary of the Interior shall submit to the Committee on Natural 
Resources of the House of Representatives and the Committee on Energy 
and Natural Resources of the Senate a report on a recommended 
regulatory and certification framework for conducting geological carbon 
sequestration activities on Federal lands. The Secretary shall identify 
a lead agency within the Department of the Interior to develop this 
framework. One of the goals of the framework shall be to identify what 
actions need to be taken in order to allow for commercial-scale 
geological carbon sequestration activities to be undertaken on Federal 
lands as expeditiously as possible.

          Subtitle D--Natural Resources and Wildlife Programs

       CHAPTER 1--NATURAL RESOURCES MANAGEMENT AND CLIMATE CHANGE

SEC. 441. INTERAGENCY COUNCIL ON CLIMATE CHANGE.

  (a) Establishment.--The Secretary of the Interior shall establish an 
Interagency Council on Climate Change to address the impacts of climate 
change on Federal lands, the ocean environment, and the Federal water 
infrastructure. The panel shall include the head of each of the 
following agencies:
          (1) The Bureau of Land Management.
          (2) The National Park Service.
          (3) United States Geological Survey.
          (4) The United States Fish and Wildlife Service.
          (5) The Forest Service.
          (6) The National Oceanic and Atmospheric Administration.
          (7) The Bureau of Reclamation.
          (8) The Council on Environmental Quality.
          (9) The Minerals Management Service.
          (10) The Office of Surface Mining Reclamation and 
        Enforcement.
  (b) Plan.--Not later than one year after the date of the enactment of 
this Act, the Secretary of the Interior shall submit a plan to Congress 
describing what the agencies listed in subsection (a) shall do both 
individually and cooperatively to accomplish the following:
          (1) Working in cooperation with the United States Geological 
        Survey, develop an interagency inventory and Geographic 
        Information System database of United States ecosystems, water 
        supplies, and water infrastructure vulnerable to climate 
        change.
          (2) Manage land, water, and ocean resources in a manner that 
        takes into account projected climate change impacts, including 
        but not limited to, prolonged periods of drought, changing 
        hydrology, and in the case of oceans, increasing ocean 
        acidification.
          (3) Develop consistent protocols to incorporate climate 
        change impacts in land and water management decisions across 
        land and water resources under the jurisdiction of those 
        agencies listed in subsection (a).
          (4) Incorporate the most current, peer-reviewed science on 
        climate change and the economic, social, and ecological impacts 
        of climate change into the decision making process of those 
        agencies listed in subsection (a).

          CHAPTER 2--NATIONAL POLICY AND STRATEGY FOR WILDLIFE

SEC. 451. SHORT TITLE.

  This chapter may be cited as the ``Global Warming Wildlife Survival 
Act''.

SEC. 452. NATIONAL POLICY ON WILDLIFE AND GLOBAL WARMING.

  It is the policy of the Federal Government, in cooperation with 
State, tribal, and affected local governments, other concerned public 
and private organizations, landowners, and citizens to use all 
practicable means and measures--
          (1) to assist wildlife populations and their habitats in 
        adapting to and surviving the effects of global warming; and
          (2) to ensure the persistence and resilience of the wildlife 
        of the United States, together with its habitat, as an 
        essential part of our Nation's culture, landscape, and natural 
        resources.

SEC. 453. DEFINITIONS.

  In this chapter:
          (1) Ecological processes.--The term ``ecological processes'' 
        means the biological, chemical, and physical interactions 
        between the biotic and abiotic components of ecosystems, 
        including nutrient cycling, pollination, predator-prey 
        relationships, soil formation, gene flow, hydrologic cycling, 
        decomposition, and disturbance regimes such as fire and 
        flooding.
          (2) Habitat linkages.--The term ``habitat linkages'' means 
        areas that connect wildlife habitat or potential wildlife 
        habitat, and that facilitate the ability of wildlife to move 
        within a landscape in response to the effects of global 
        warming.
          (3) Secretary.--The term ``Secretary'' means the Secretary of 
        the Interior.
          (4) Wildlife.--The term ``wildlife'' means--
                  (A) any species of wild, free-ranging fauna, 
                including fish and other aquatic species; and
                  (B) any fauna in a captive breeding program the 
                object of which is to reintroduce individuals of a 
                depleted indigenous species into previously occupied 
                range.
          (5) Habitat.--The term ``habitat'' means the physical, 
        chemical, and biological properties that are used by wildlife 
        for growth, reproduction, and survival, including aquatic and 
        terrestrial plant communities, food, water, cover, and space, 
        on a tract of land, in a body of water, or in an area or 
        region.

SEC. 454. NATIONAL STRATEGY.

  (a) Requirement.--
          (1) In general.--The Secretary shall, within two years after 
        the date of the enactment of this Act, on the basis of the best 
        available science as provided by the science advisory board 
        under section 455, promulgate a national strategy for assisting 
        wildlife populations and their habitats in adapting to the 
        impacts of global warming.
          (2) Consultation and comment.--In developing the national 
        strategy, the Secretary shall--
                  (A) consult with the Secretary of Agriculture, the 
                Secretary of Commerce, the Administrator of the 
                Environmental Protection Agency, State fish and 
                wildlife agencies, Indian tribes, local governments, 
                conservation organizations, scientists, and other 
                interested stakeholders; and
                  (B) provide opportunity for public comment.
  (b) Contents.--
          (1) In general.--The Secretary shall include in the national 
        strategy prioritized goals and measures to--
                  (A) identify and monitor wildlife populations, 
                including game species, likely to be adversely affected 
                by global warming, with particular emphasis on wildlife 
                populations at greatest need for conservation;
                  (B) identify and monitor coastal, marine, 
                terrestrial, and freshwater habitat at greatest risk of 
                being damaged by global warming;
                  (C) assist species in adapting to the impacts of 
                global warming;
                  (D) protect, acquire, and restore wildlife habitat to 
                build resilience to global warming;
                  (E) provide habitat linkages and corridors to 
                facilitate wildlife movements in response to global 
                warming;
                  (F) restore and protect ecological processes that 
                sustain wildlife populations vulnerable to global 
                warming; and
                  (G) incorporate consideration of climate change in, 
                and integrate climate change adaptation strategies for 
                wildlife and its habitat into, the planning and 
                management of Federal lands administered by the 
                Department of the Interior and lands administered by 
                the Forest Service.
          (2) Coordination with other plans.--In developing the 
        national strategy, the Secretary shall to the maximum extent 
        practicable--
                  (A) take into consideration research and information 
                in State comprehensive wildlife conservation plans, the 
                North American Waterfowl Management Plan, the National 
                Fish Habitat Action Plan, and other relevant wildlife 
                conservation plans; and
                  (B) coordinate and integrate, to the extent 
                consistent with the policy set forth in section 452, 
                the goals and measures identified in the national 
                strategy with goals and measures identified in such 
                plans.
  (c) Revision.--The Secretary shall revise the national strategy not 
later than five years after its initial promulgation, and not later 
than every ten years thereafter, to reflect new information on the 
impacts of global warming on wildlife and its habitat and advances in 
the development of strategies for adapting to or mitigating for such 
impacts.
  (d) Implementation.--
          (1) Implementation on federal land systems.--To achieve the 
        goals of the national strategy and to implement measures for 
        the conservation of wildlife and its habitat identified in the 
        national strategy--
                  (A) the Secretary of the Interior shall exercise the 
                authority of such Secretary under this Act and other 
                laws within the Secretary's jurisdiction pertaining to 
                the administration of lands; and
                  (B) the Secretary of Agriculture shall exercise the 
                authority of such Secretary under this Act and other 
                laws within the Secretary's jurisdiction pertaining to 
                the administration of lands.
          (2) Wildlife conservation programs.--Consistent with their 
        authorities under other laws, the Secretary, the Secretary of 
        Agriculture, and the Secretary of Commerce shall administer 
        wildlife conservation programs authorized under other laws to 
        achieve the goals of the national strategy and to implement 
        measures for the conservation of wildlife and its habitat 
        identified in the national strategy.

SEC. 455. ADVISORY BOARD.

  (a) Science Advisory Board.--
          (1) In general.--The Secretary shall establish and appoint 
        the members of a science advisory board comprised of not less 
        than 10 and not more than 20 members recommended by the 
        President of the National Academy of Sciences with expertise in 
        wildlife biology, ecology, climate change and other relevant 
        disciplines. The director of the National Global Warming and 
        Wildlife Science Center established under subsection (b) shall 
        be an ex officio member of the science advisory board.
          (2) Functions.--The science advisory board shall--
                  (A) provide scientific and technical advice and 
                recommendations to the Secretary on the impacts of 
                global warming on wildlife and its habitat, areas of 
                habitat of particular importance for the conservation 
                of wildlife populations affected by global warming, and 
                strategies and mechanisms to assist wildlife 
                populations and their habitats in adapting to the 
                impacts of global warming in the management of Federal 
                lands and in other Federal programs for wildlife 
                conservation;
                  (B) advise the National Global Warming and Wildlife 
                Science Center established under subsection (b) and 
                review the quality of the research programs of the 
                Center; and
                  (C) advise the Secretary regarding the best science 
                available for purposes of section 454(a)(1).
          (3) Public availability.--The advice and recommendations of 
        the science advisory board shall be available to the public.
  (b) National Global Warming and Wildlife Science Center.--
          (1) In general.--The Secretary shall establish the National 
        Global Warming and Wildlife Science Center within the United 
        States Geological Survey.
          (2) Functions.--The National Global Warming and Wildlife 
        Science Center shall--
                  (A) conduct scientific research on national issues 
                related to the impacts of global warming on wildlife 
                and its habitat and mechanisms for adaptation to, 
                mitigation of, or prevention of such impacts;
                  (B) consult with and advise Federal land management 
                agencies and Federal wildlife agencies regarding the 
                impacts of global warming on wildlife and its habitat 
                and mechanisms for adaptation to or mitigation of such 
                impacts, and the incorporation of information regarding 
                such impacts and the adoption of mechanisms for 
                adaptation or mitigation of such impacts in the 
                management and planning for Federal lands and in the 
                administration of Federal wildlife programs; and
                  (C) consult with State and local agencies, 
                universities, and other public and private entities 
                regarding their research, monitoring, and other efforts 
                to address the impacts of global warming on wildlife 
                and its habitat.
          (3) Integration with other federal activities.--The 
        Secretary, the Secretary of Agriculture, and the Secretary of 
        Commerce shall ensure that activities carried out pursuant to 
        this section are integrated with climate change program 
        activities carried out pursuant to other Federal law.
  (c) Detection of Changes.--The Secretary, the Secretary of 
Agriculture, and the Secretary of Commerce shall each exercise 
authorities under other laws to carry out programs to detect changes in 
wildlife abundance, distribution, and behavior related to global 
warming, including--
          (1) conducting species inventories on Federal lands and in 
        marine areas within the exclusive economic zone of the United 
        States; and
          (2) establishing and implementing robust, coordinated 
        monitoring programs.

SEC. 456. AUTHORIZATION OF APPROPRIATIONS.

  (a) Implementation of National Strategy.--Of the amounts appropriated 
to carry out this chapter for each fiscal year--
          (1) 45 percent are authorized to be made available to Federal 
        agencies to develop and implement the national strategy 
        promulgated under section 454 in the administration of the 
        Federal land systems, of which--
                  (A) 35 percent shall be allocated to the Department 
                of the Interior to--
                          (i) operate the National Global Warming and 
                        Wildlife Science Center established under 
                        section 455; and
                          (ii) carry out the policy set forth in 
                        section 452 and implement the national strategy 
                        in the administration of the National Park 
                        System the National Wildlife Refuge System, and 
                        on the Bureau of Land Management's public 
                        lands; and
                  (B) 10 percent shall be allocated to the Department 
                of Agriculture to carry out the policy set forth in 
                section 452 and implement the national strategy in the 
                administration of the National Forest System;
          (2) 25 percent are authorized to be made available to Federal 
        agencies to carry out the policy set forth in section 452 and 
        to implement the national strategy through fish and wildlife 
        programs, other than for the operation and maintenance of 
        Federal lands, of which--
                  (A) 10 percent shall be allocated to the Department 
                of the Interior to fund endangered species, migratory 
                bird, and other fish and wildlife programs administered 
                by the United States Fish and Wildlife Service, other 
                than operations and maintenance of the national 
                wildlife refuges; and
                  (B) 15 percent shall be allocated to the Department 
                of the Interior for implementation of cooperative grant 
                programs benefitting wildlife including the Cooperative 
                Endangered Species Fund, Private Stewardship Grants, 
                the North American Wetlands Conservation Act, the 
                Neotropical Migratory Bird Conservation Fund, and the 
                National Fish Habitat Action Plan, and used for 
                activities that assist wildlife and its habitat in 
                adapting to the impacts of global warming; and
          (3) 30 percent are authorized to be made available for grants 
        to States and Indian tribes through the State and tribal 
        wildlife grants program authorized under section 461, to--
                  (A) carry out activities that assist wildlife and its 
                habitat in adapting to the impacts of global warming in 
                accordance with State comprehensive wildlife 
                conservation plans developed and approved under that 
                program; and
                  (B) revise or supplement existing State comprehensive 
                wildlife conservation plans as necessary to include 
                specific strategies for assisting wildlife and its 
                habitat in adapting to the impacts of global warming.
  (b) Availability.--
          (1) In general.--Funding is authorized to be made available 
        to States and Indian tribes pursuant to this section subject to 
        paragraphs (2) and (3).
          (2) Initial 5-year period.--During the 5-year period 
        beginning on the effective date of this Act, a State shall not 
        be eligible to receive such funding unless the head of the 
        State's wildlife agency has--
                  (A) approved, and provided to the Secretary, an 
                explicit strategy to assist wildlife populations in 
                adapting to the impacts of global warming; and
                  (B) incorporated such strategy as a supplement to the 
                State's comprehensive wildlife conservation plan.
          (3) Subsequent period.--After such 5-year period, a State 
        shall not be eligible to receive such funding unless the State 
        has submitted to the Secretary, and the Secretary has approved, 
        a revision to its comprehensive wildlife conservation plan 
        that--
                  (A) describes the impacts of global warming on the 
                diversity and health of the State's wildlife 
                populations and their habitat;
                  (B) describes and prioritizes proposed conservation 
                actions to assist wildlife populations in adapting to 
                such impacts;
                  (C) establishes programs for monitoring the impacts 
                of global warming on wildlife populations and their 
                habitats; and
                  (D) establishes methods for assessing the 
                effectiveness of conservation actions taken to assist 
                wildlife populations in adapting to such impacts and 
                for adapting such actions to respond appropriately to 
                new information or changing conditions.
  (c) Intent of Congress.--It is the intent of Congress that funding 
provided to Federal agencies and States pursuant to this chapter 
supplement, and not replace, existing sources of funding for wildlife 
conservation.

          CHAPTER 3--STATE AND TRIBAL WILDLIFE GRANTS PROGRAM

SEC. 461. STATE AND TRIBAL WILDLIFE GRANTS PROGRAM.

  (a) Authorization of Program.--There is authorized to be established 
a State and Tribal Wildlife Grants Program to be administered by the 
Secretary of the Interior and to provide wildlife conservation grants 
to States and to the District of Columbia, Puerto Rico, Guam, the 
United States Virgin Islands, the Northern Mariana Islands, American 
Samoa, and federally recognized Indian tribes for the planning, 
development, and implementation of programs for the benefit of wildlife 
and their habitat, including species that are not hunted or fished.
  (b) Allocation of Funds.--
          (1) In general.--Of the amounts made available to carry out 
        this section for each fiscal year--
                  (A) 10 percent shall be for a competitive grant 
                program for Indian tribes that are not subject to the 
                remaining provisions of this section;
                  (B) of the amounts remaining after the application of 
                subparagraph (A), and after the deduction of the 
                Secretary's administrative expenses to carry out this 
                section--
                          (i) not more than one-half of 1 percent shall 
                        be allocated to each of the District of 
                        Columbia and to the Common wealth of Puerto 
                        Rico; and
                          (ii) not more than one-fourth of 1 percent 
                        shall be allocated to each of Guam, American 
                        Samoa, the United States Virgin Islands, and 
                        the Commonwealth of the Northern Mariana 
                        Islands; and
                  (C) of the amount remaining after the application of 
                subparagraphs (B) and (C), the secretary shall 
                apportion among the States--
                          (i) one-third based on the ratio that the 
                        land area of each State bears to the total land 
                        area of all States; and
                          (ii) two-thirds based on the ratio that the 
                        population of each State bears to the total 
                        population of all States.
          (2) Adjustments.--The amounts apportioned under subparagraph 
        (C) of paragraph (1) for a fiscal year shall be adjusted 
        equitably so that no State is apportioned under such 
        subparagraph a sum that is--
                  (A) less than 1 percent of the amount available for 
                apportionment under that subparagraph that fiscal year; 
                or
                  (B) more than 5 percent of such amount.
  (c) Cost Sharing.--
          (1) Plan development grants.--The Federal share of the costs 
        of developing or revising a comprehensive wildlife conservation 
        plan shall not exceed 75 percent of the total costs of 
        developing or revising such plan.
          (2) Plan implementation grants.--The Federal share of the 
        costs of implementing an activity in an approved comprehensive 
        wildlife conservation plan carried out with a grant under this 
        section shall not exceed 50 percent of the total costs of such 
        activities.
          (3) Prohibition on use of federal funds.--The non-Federal 
        share of costs of an activity carried out under this section 
        shall not be paid with amounts derived from any Federal grant 
        program.
  (d) Requirement for Plan.--
          (1) In general.--No State, territory, or other jurisdiction 
        shall be eligible for a grant under this section unless it 
        submits to the Secretary a comprehensive wildlife conservation 
        plan that--
                  (A) complies with paragraph (2); and
                  (B) considers the broad range of the State, 
                territory, or other jurisdiction's wildlife and 
                associated habitats, with appropriate priority placed 
                on those species with the greatest conservation need 
                and taking into consideration the relative level of 
                funding available for the conservation of those 
                species.
          (2) Contents.--The comprehensive wildlife conservation plan 
        must contain--
                  (A) information on the distribution and abundance of 
                species of wildlife, including low and declining 
                populations as the State, territory, or other 
                jurisdiction's fish and wildlife agency considers 
                appropriate, that are indicative of the diversity and 
                health of the jurisdiction's wildlife;
                  (B) the location and relative condition of key 
                habitats and community types essential to conservation 
                of species identified in subparagraph (A);
                  (C) descriptions of problems which may adversely 
                affect species identified in subparagraph (A) or their 
                habitats, and priority research and survey efforts 
                needed to identify factors that may assist in 
                restoration and improved conservation of these species 
                and habitats;
                  (D) descriptions of conservation actions proposed to 
                conserve the identified species and habitats and 
                priorities for implementing such actions;
                  (E) proposed plans for monitoring species identified 
                in subparagraph (A) and their habitats, for monitoring 
                the effectiveness of the conservation actions proposed 
                in subparagraph (D), and for adapting these 
                conservation actions to respond appropriately to new 
                information or changing conditions;
                  (F) descriptions of procedures to review the 
                comprehensive wildlife conservation plan at intervals 
                not to exceed ten years;
                  (G) plans for coordinating the development, 
                implementation, review, and revision of the 
                comprehensive wildlife conservation plan with Federal, 
                State, and local agencies and Indian tribes that manage 
                significant land and water areas within the 
                jurisdiction or administer programs that significantly 
                affect the conservation of identified species and 
                habitats; and
                  (H) provisions for broad public participation as an 
                essential element of the development, revision, and 
                implementation of the comprehensive wildlife 
                conservation plan.
  (e) Savings Clause.--State comprehensive wildlife strategies approved 
by the Secretary pursuant to previous congressional authorizations and 
appropriations Acts shall remain in effect until such strategies expire 
or are revised in accordance with their terms. Except as specified in 
section 456(b) with respect to funds made available under such section, 
conservation and education activities conducted or proposed to be 
conducted pursuant to such previously approved strategies shall remain 
authorized.
  (f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

                       Subtitle E--Ocean Programs

SEC. 471. OCEAN POLICY, GLOBAL WARMING, AND ACIDIFICATION PROGRAM.

   (a) Development and Implementation.--
          (1) In general.--The Secretary of Commerce, shall, within two 
        years after the date of enactment of this Act, and on the basis 
        of the best available science, develop and implement a national 
        strategy using existing authorities and the authority provided 
        in this section to support coastal State and Federal agency 
        efforts to--
                  (A) predict, plan for, and mitigate the impacts on 
                ocean and coastal ecosystems from global warming, 
                relative sea level rise and ocean acidification; and
                  (B) ensure the recovery, resiliency, and health of 
                ocean and coastal ecosystems.
          (2) Consultation and comment.--Before and during the 
        development of the national strategy, the Secretary shall--
                  (A) consult with the Secretary of the Interior, the 
                Administrator of the Environmental Protection Agency, 
                the Regional Fishery Management Councils, coastal 
                States, Indian tribes, local governments, conservation 
                organizations, scientists, and other interested 
                stakeholders; and
                  (B) provide opportunities for public notice and 
                comment.
  (b) Contents.--
          (1) In general.--The Secretary shall include in the national 
        strategy prioritized goals and measures to--
                  (A) incorporate climate change adaptation strategies 
                into the planning and management of ocean and coastal 
                programs and resources administered by the Department 
                of Commerce;
                  (B) support restoration, protection, and enhancement 
                of natural processes that minimize the impacts of 
                relative sea level rise, global warming, and ocean 
                acidification;
                  (C) minimize the impacts of global warming and ocean 
                acidification on marine species and their habitats;
                  (D) identify, protect, and restore ocean and coastal 
                habitats needed to build healthy and resilient 
                ecosystems;
                  (E) support the development of climate change 
                resiliency plans under the Coastal Zone Management Act 
                of 1972 (16 U.S.C. 1451 et seq.);
                  (F) provide technical assistance and training to 
                other Federal agencies, States, local communities, 
                universities, and other stakeholders; and
                  (G) identify additional research that is needed to 
                better anticipate and plan for the impacts of global 
                warming and ocean acidification on ocean and coastal 
                resources.
          (2) Coordination with other plans.--In developing the 
        national strategy, the Secretary shall--
                  (A) take into consideration research and information 
                available in Federal, regional, and State management 
                and restoration plans and any other relevant reports 
                and information; and
                  (B) encourage and take into account State and 
                regional plans for protecting and restoring the health 
                and resilience of ocean and coastal ecosystems.
  (c) Revision.--The Secretary shall revise the national strategy not 
later than 5 years after its promulgation, and not later than every 10 
years thereafter, to reflect new information on the impacts of global 
warming, relative sea level rise, and acidification on ocean and 
coastal ecosystems and their resources and advances in the development 
of strategies for adapting to or mitigating for such impacts.
  (d) Science Advisory Board.--
          (1) Consultation.--The Secretary shall consult with the 
        National Oceanic and Atmospheric Administration's Science 
        Advisory Board in the development and implementation of the 
        strategy.
          (2) Review information.--The Science Advisory Board shall 
        periodically--
                  (A) review new information on the impacts of global 
                warming, relative sea level rise, and acidification on 
                ocean and coastal ecosystems and their resources and 
                advances in the development of strategies for adapting 
                to or mitigating for such impacts; and
                  (B) provide that information to the Secretary.
  (e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to implement this section. 
Amounts appropriated shall be used for the exclusive purpose of 
carrying out the activities specified in this section.
  (f) Report to Congress.--Copies of the strategy and implementation 
plan and any updates shall be provided to the Congress.

SEC. 472. PLANNING FOR CLIMATE CHANGE IN THE COASTAL ZONE.

  (a) In General.--The Coastal Zone Management Act of 1972 (16 U.S.C. 
1451 et seq.) is amended by adding at the end the following:
                  ``climate change resiliency planning
  ``Sec. 320.  (a) In General.--The Secretary shall establish 
consistent with the national policies set forth in section 303 a 
coastal climate change resiliency planning and response program to--
          ``(1) provide assistance to coastal states to voluntarily 
        develop coastal climate change resiliency plans pursuant to 
        approved management programs approved under section 306, to 
        minimize contributions to climate change and to prepare for and 
        reduce the negative consequences that may result from climate 
        change in the coastal zone; and
          ``(2) provide financial and technical assistance and training 
        to enable coastal states to implement plans developed pursuant 
        to this section through coastal states' enforceable policies.
  ``(b) Guidelines.--Within 180 days after the date of enactment of 
this section, the Secretary, in consultation with the coastal states, 
shall issue guidelines for the implementation of the grant program 
established under subsection (c).
  ``(c) Climate Change Resiliency Planning Grants.--
          ``(1) In general.--The Secretary, subject to the availability 
        of appropriations, may make a grant to any coastal state for 
        the purpose of developing climate change resiliency plans 
        pursuant to guidelines issued by the Secretary under subsection 
        (b).
          ``(2) Plan content.--A plan developed with a grant under this 
        section shall include the following:
                  ``(A) Identification of public facilities and public 
                services, coastal resources of national significance, 
                coastal waters, energy facilities, or other water uses 
                located in the coastal zone that are likely to be 
                impacted by climate change.
                  ``(B) Adaptive management strategies for land use to 
                respond or adapt to changing environmental conditions, 
                including strategies to protect biodiversity and 
                establish habitat buffer zones, migration corridors, 
                and climate refugia.
                  ``(C) Requirements to initiate and maintain long-term 
                monitoring of environmental change to assess coastal 
                zone resiliency and to adjust when necessary adaptive 
                management strategies and new planning guidelines to 
                attain the policies under section 303.
          ``(3) State hazard mitigation plans.--Plans developed with a 
        grant under this section shall be consistent with State hazard 
        mitigation plans developed under State or Federal law.
          ``(4) Allocation.--Grants under this section shall be 
        available only to coastal states with management programs 
        approved by the Secretary under section 306 and shall be 
        allocated among such coastal states in a manner consistent with 
        regulations promulgated pursuant to section 306(c).
          ``(5) Priority.--In the awarding of grants under this 
        subsection the Secretary may give priority to any coastal state 
        that has received grant funding to develop program changes 
        pursuant to paragraphs (1), (2), (3), (5), (6), (7), and (8) of 
        section 309(a).
          ``(6) Technical assistance.--The Secretary may provide 
        technical assistance to a coastal state consistent with section 
        310 to ensure the timely development of plans supported by 
        grants awarded under this subsection.
          ``(7) Federal approval.--In order to be eligible for a grant 
        under subsection (d), a coastal state must have its plan 
        developed under this section approved by the Secretary under 
        regulations adopted pursuant to section 306(e).
  ``(d) Coastal Resiliency Project Grants.--
          ``(1) In general.--The Secretary, subject to the availability 
        of appropriations, may make grants to any coastal state that 
        has a climate change resiliency plan approved under subsection 
        (c)(7), in order to support projects that implement strategies 
        contained within such plans.
          ``(2) Program requirements.--The Secretary within 90 days 
        after approval of the first plan approved under subsection 
        (c)(7), shall publish in the Federal Register requirements 
        regarding applications, allocations, eligible activities, and 
        all terms and conditions for grants awarded under this 
        subsection. No less than 30 percent of the funds appropriated 
        in any fiscal year for grants under this subsection shall be 
        awarded through a merit-based competitive process.
          ``(3) Eligible activities.--The Secretary may award grants to 
        coastal states to implement projects in the coastal zone to 
        address stress factors in order to improve coastal climate 
        change resiliency, including the following:
                  ``(A) Activities to address physical disturbances 
                within the coastal zone, especially activities related 
                to public facilities and public services, tourism, 
                sedimentation, and other factors negatively impacting 
                coastal waters, and fisheries-associated habitat 
                destruction or alteration.
                  ``(B) Monitoring, control, or eradication of disease 
                organisms and invasive species.
                  ``(C) Activities to address the loss, degradation or 
                fragmentation of wildlife habitat through projects to 
                establish marine and terrestrial habitat buffers, 
                wildlife refugia or networks thereof, and preservation 
                of migratory wildlife corridors and other transition 
                zones.
                  ``(D) Implementation of projects to reduce, mitigate, 
                or otherwise address likely impacts caused by natural 
                hazards in the coastal zone, including sea level rise, 
                coastal inundation, coastal erosion and subsidence, 
                severe weather events such as cyclonic storms, tsunamis 
                and other seismic threats, and fluctuating Great Lakes 
                water levels.
                  ``(E) Provide technical training and assistance to 
                local coastal policy makers to increase awareness of 
                science, management, and technology information related 
                to climate change and adaptation strategies.''.
  (b) Authorization of Appropriations.--Section 318(a) of the Coastal 
Zone Management Act of 1972 (16 U.S.C. 1464) is further amended by 
adding at the end the following:
          ``(4) for grants under section 320(c) and (d), such sums as 
        are necessary.''.

SEC. 473. ENHANCING CLIMATE CHANGE PREDICTIONS.

  (a) Short Title.--This section may be cited as the ``National 
Integrated Coastal and Ocean Observation Act of 2007''.
  (b) Purposes.--The purposes of this section are the following:
          (1) Establish a National Integrated Coastal and Ocean 
        Observation System comprised of Federal and non-Federal 
        components, coordinated at the regional level by a network of 
        Regional Information Coordination Entities, that includes in 
        situ, remote, and other coastal and ocean observations, 
        technologies, and data management and communication systems, to 
        gather daily specific coastal and ocean data variables and to 
        ensure the timely dissemination and availability of usable 
        observation data to support national defense, marine commerce, 
        energy production, scientific research, ecosystem-based marine 
        and coastal resource management, and public safety and to 
        promote the general public welfare.
          (2) Improve the Nation's capability to measure, track, 
        explain, and predict events related directly and indirectly to 
        climate change, natural climate variability, and interactions 
        between the oceanic and atmospheric environments, including the 
        Great Lakes.
          (3) Authorize activities to promote basic and applied 
        research to develop, test, and deploy innovations and 
        improvements in coastal and ocean observation technologies, 
        modeling systems, and other scientific and technological 
        capabilities to improve our conceptual understanding of global 
        climate change and physical, chemical, and biological dynamics 
        of the ocean and coastal and Great Lakes environments.
          (4) Institutionalize coordinated programs of public outreach, 
        education, and training--
                  (A) to enhance public understanding of the ocean, 
                coastal and Great Lakes environment, the influence and 
                effects of global climate change on the coastal and 
                ocean environment; and
                  (B) to promote greater public awareness and 
                stewardship of the Nation's ocean, coastal, and Great 
                Lakes resources.
  (c) Definitions.--In this section:
          (1) Council.--The term ``Council'' means the National Ocean 
        Research Leadership Council referred to in section 7902 of 
        title 10, United States Code.
          (2) Administrator.--The term ``Administrator'' means the 
        Administrator of the National Oceanic and Atmospheric 
        Administration.
          (3) Federal assets.--The term ``Federal assets'' means all 
        relevant non-classified civilian coastal and ocean 
        observations, technologies, and related modeling, research, 
        data management, basic and applied technology research and 
        development, and public education and outreach programs, that 
        are managed by member agencies of the Council.
          (4) Non-federal assets.--The term ``non-Federal assets'' 
        means all relevant coastal and ocean observations, 
        technologies, related basic and applied technology research and 
        development, and public education and outreach programs managed 
        through States, regional organizations, universities, 
        nongovernmental organizations, or the private sector.
          (5) Regional information coordination entities.--
                  (A) In general.--The term ``Regional Information 
                Coordination Entity'', subject to subparagraphs (B) and 
                (C), means an organizational body that is certified or 
                established by the lead Federal agency designated in 
                subsection (d)(3)(C)(iii) and coordinating State, 
                Federal, local, and private interests at a regional 
                level with the responsibility of engaging the private 
                and public sectors in designing, operating, and 
                improving regional coastal and ocean observing systems 
                in order to ensure the provision of data and 
                information that meet the needs of user groups from the 
                respective regions.
                  (B) Included associations.--Such term includes 
                Regional Associations as described by the System Plan.
                  (C) Limitation.--Nothing in this section shall be 
                construed to invalidate existing certifications, 
                contracts, or agreements between Regional Associations 
                and other elements of the System.
          (6) Secretary.--The term ``Secretary'' means the Secretary of 
        Commerce.
          (7) System.--The term ``System'' means the National 
        Integrated Coastal and Ocean Observation System established 
        under subsection (d).
          (8) System plan.--The term ``System Plan'' means the plan 
        contained in the document entitled ``Ocean.US publication #9, 
        The First Integrated Ocean Observing System (IOOS) Development 
        Plan''.
          (9) Interagency working group.--The term ``Interagency 
        Working Group'' means the Interagency Working Group on Ocean 
        Observations as established by the U.S. Ocean Policy Committee 
        Subcommittee on Ocean Science and Technology pursuant to 
        Executive Order 13366 signed December 17, 2004.
  (d) National Integrated Coastal and Ocean Observing System.--
          (1) Establishment.--The President, acting through the 
        Council, shall establish a National Integrated Coastal and 
        Ocean Observation System to fulfill the purposes set forth in 
        subsection (b) and the System plan and to fulfill the Nation's 
        international obligations to contribute to the global earth 
        observation system of systems and the global ocean observing 
        system.
          (2) Support of purposes.--The head of each agency that is a 
        member of the Interagency Working Group shall support the 
        purposes of this section.
          (3) Availability of data.--The head of each Federal agency 
        that has administrative jurisdiction over a Federal asset shall 
        make available data that are produced by that asset and that 
        are not otherwise restricted for integration, management, and 
        dissemination by the System.
          (4) Enhancing administration and management.--The head of 
        each Federal agency that has administrative jurisdiction over a 
        Federal asset may take appropriate actions to enhance internal 
        agency administration and management to better support, 
        integrate, finance, and utilize observation data, products, and 
        services developed under this section to further its own agency 
        mission and responsibilities.
          (5) Participation in regional information coordination 
        entity.--The head of each Federal agency that has 
        administrative jurisdiction over a Federal asset may 
        participate in regional information coordination entity 
        activities.
          (6) Non-federal assets.--Non-Federal assets shall be 
        coordinated by the Interagency Working Group or by Regional 
        Information Coordination Entities.
  (e) Policy Oversight, Administration, and Regional Coordination.--
          (1) National ocean research leadership council.--The National 
        Ocean Research Leadership Council shall be responsible for 
        establishing broad coordination and long-term operations plans, 
        policies, protocols, and standards for the System consistent 
        with the policies, goals, and objectives contained in the 
        System Plan, and coordination of the System with other earth 
        observing activities.
          (2) Interagency working group.--The Interagency Working Group 
        shall, with respect to the System, be responsible for--
                  (A) implementation of operations plans and policies 
                developed by the Council;
                  (B) development of an annual coordinated, 
                comprehensive System budget;
                  (C) identification of gaps in observation coverage or 
                needs for capital improvements of both Federal assets 
                and non-Federal assets;
                  (D) establishment of data management and 
                communication protocols and standards;
                  (E) establishment of required observation data 
                variables;
                  (F) development of certification standards for all 
                non-Federal assets or Regional Information Coordination 
                Entities to be eligible for integration into the 
                System; and
                  (G) periodically review and recommend to the Council 
                revisions to the System plan.
          (3) Lead federal agency.--The Secretary, acting through the 
        Administrator, shall function as the lead Federal agency for 
        the System. The Secretary, through the Administrator, may 
        establish an Interagency Program Coordinating Office to 
        facilitate the Secretary's responsibilities as the lead Federal 
        agency for System oversight and management. The Administrator 
        shall--
                  (A) implement policies, protocols, and standards 
                established by the Council and delegated by the 
                Interagency Working Group;
                  (B) promulgate regulations to integrate the 
                participation of non-Federal assets into the System and 
                enter into and oversee contracts and agreements with 
                Regional Information Coordination Entities to effect 
                this purpose;
                  (C) implement a competitive funding process for the 
                purpose of assigning contracts and agreements to 
                Regional Information Coordination Entities;
                  (D) certify or establish Regional Information 
                Coordination Entities to coordinate State, Federal, 
                local, and private interests at a regional level with 
                the responsibility of engaging private and public 
                sectors in designing, operating, and improving regional 
                coastal and ocean observing systems in order to ensure 
                the provision of data and information that meet the 
                needs of user groups from the respective regions;
                  (E) formulate a process by which gaps in observation 
                coverage or needs for capital improvements of Federal 
                assets and non-Federal assets of the System can be 
                identified by the Regional Information Coordination 
                Entities, the Administrator, or other members of the 
                System and transmitted to the Interagency Working 
                Group;
                  (F) be responsible for the coordination, storage, 
                management, and communication of observation data 
                gathered through the System to all end-user 
                communities;
                  (G) subject to the availability of appropriations and 
                pursuant to procedures adopted by the Administrator 
                after consultation with the working group and the 
                system advisory panel, implement a competitive matching 
                grant or other grant program to promote research and 
                development of innovative and new observation 
                technologies, including testing and field trials;
                  (H) implement a program of public education and 
                outreach to improve public awareness of global climate 
                change and effects on the ocean, coastal, and Great 
                Lakes environment; and
                  (I) report annually to the Council through the 
                Interagency Working Group on the accomplishments, 
                operational needs, and performance of the System to 
                achieve the purposes of this Act and the System plan.
          (4) Regional information coordination entity.--To be 
        certified or established under paragraph (3)(D), a Regional 
        Information Coordination Entity must be certified or 
        established by contract or agreement by the Administrator, and 
        must agree to--
                  (A) gather required System observation data and other 
                requirements specified under this section and the 
                System plan;
                  (B) identify gaps in observation coverage or needs 
                for capital improvements of Federal assets and non-
                Federal assets of the System, and transmit such 
                information to the Interagency Working Group via the 
                Administrator;
                  (C) demonstrate an organizational structure and 
                strategic operational plan to ensure the efficient and 
                effective administration of programs and assets to 
                support daily data observations for integration into 
                the System;
                  (D) comply with all financial oversight requirements 
                established by the Administrator, including 
                requirements relating to audits; and
                  (E) demonstrate a capability to work with other 
                governmental and nongovernmental entities at all levels 
                to identify and provide information products of the 
                System for multiple users within the service area of 
                the Regional Information Coordination Entities and 
                otherwise.
          (5) System advisory panel.--The Secretary, through the 
        Administrator, may establish and appoint an advisory panel to 
        advise the Council on the operations, management, and needs of 
        the System. The appointment of this panel shall be done in 
        consultation with the Interagency Working Group. Panel 
        membership shall be broadly representative of all stakeholders 
        and the user community of the System, including State and local 
        governments.
          (6) Civil liability.--For purposes of determining liability 
        arising from the dissemination and use of observation data 
        gathered pursuant to this section, any non-Federal asset or 
        Regional Information Coordination Entity that is certified 
        under paragraph (3)(D) and that is participating in the System 
        shall be considered to be part of the National Oceanic and 
        Atmospheric Administration. Any employee of such a non-Federal 
        asset or Regional Information Coordination Entity, while 
        operating within the scope of his or her employment in carrying 
        out the purposes of this section, with respect to tort 
        liability, is deemed to be an employee of the Federal 
        Government.
  (f) Interagency Financing, Grants, Contracts, and Agreements.--
          (1) In general.--The member departments and agencies of the 
        Council, subject to the availability of appropriations, may 
        participate in interagency financing and share, transfer, 
        receive, obligate, and expend funds appropriated to any member 
        agency for the purposes of carrying out any administrative or 
        programmatic project or activity to further the purposes of 
        this section, including support for the Interagency Working 
        Group, the Interagency Coordinating Program Office, a common 
        infrastructure, and integration to expand or otherwise enhance 
        the System.
          (2) Joint centers and agreements.--Member Departments and 
        agencies of the Council shall have the authority to create, 
        support, and maintain joint centers, and to enter into and 
        perform such contracts, leases, grants, cooperative agreements, 
        or other transactions as may be necessary to carry out the 
        purposes of this section and fulfillment of the System Plan.
  (g) Application With Other Laws.--Nothing in this section supersedes 
or limits the authority of any agency to carry out its responsibilities 
and missions under other laws.
  (h) Report to Congress.--Two years after the date of enactment of 
this Act, and biennially thereafter, the Secretary through the Council 
shall submit to the Congress a report on the performance of the System, 
achievement of the purposes and objectives of this section and the 
System plan, and recommendations for operational improvements to 
enhance the efficiency, accuracy, and overall capability of the System.

                     TITLE V--ADDITIONAL PROVISIONS

SEC. 501. SHARING OF PENALTIES.

  Notwithstanding any other provision of this Act, any amounts received 
by the United States in an action brought under section 3730 of title 
31, United States Code, that arise from any underpayment of royalties 
owed to the United States under any lease, and are treated as royalties 
paid to the United States under that lease for the purposes of the 
mineral leasing laws and the Land and Water Conservation Fund Act of 
1965 (16 U.S.C. 4601-4 et seq.), and that are being made available for 
any coal-to-liquids programs or pilot projects funded in whole or part 
by the Federal Government, shall also be equally available for wind, 
solar, biomass, geothermal, cellulosic ethanol, or other renewable 
energy program funded in whole or part by the Federal Government, 
subject to appropriations.

SEC. 502. SHARING OF FEES.

  Notwithstanding any other provision of this Act, of the amounts 
received by the United States pursuant to a fee established by this Act 
with respect to Federal onshore lands that are subject to a lease for 
production of oil, natural gas, or coal under which production is not 
occurring, and that are made available under this Act for any coal-to-
liquids programs or pilot projects funded in whole or part by the 
Federal Government, shall also be made equally available for wind, 
solar, biomass, geothermal, cellulosic ethanol, or other renewable 
energy program funded in whole or part by the Federal Government, 
subject to appropriations.

SEC. 503. OIL SHALE COMMUNITY IMPACT ASSISTANCE.

  (a) Establishment of Fund.--There is established on the books of the 
Treasury of the United States a separate account to be known as the Oil 
Shale Community Impact Assistance Fund (hereinafter in this section 
referred to as the ``Fund''). The Fund shall be administered by the 
Secretary of the Interior acting through the Director of the Bureau of 
Land Management.
  (b) Contents.--
          (1) In general.--There shall be credited to the Fund--
                  (A) all amounts paid to the United States as bonus 
                bids in connection with the award of commercial oil 
                shale leases pursuant to section 369(e) of the Energy 
                Policy Act of 2005 (42 U.S.C. 15927(e)); and
                  (B) an amount equal to 25 percent of the portion of 
                the other amounts deposited into the Treasury pursuant 
                to section 35(a) of the Mineral Leasing Act (30 U.S.C. 
                191) with respect to such leases, that remains after 
                deduction of all payments made pursuant to of such 
                section.
          (2) Termination of crediting of royalties.--Paragraph (1)(B) 
        shall not apply to royalties received by the United States 
        under a commercial oil shale lease after the end of the 10-year 
        period beginning on the date on which the first amount of 
        royalty under such lease is paid to the United States.
  (c) Distribution.--
          (1) In general.--The Secretary, subject to the availability 
        of appropriations, shall use amounts in the Fund to annually 
        pay to each county in which is located land subject to a 
        commercial oil shale lease referred to in subsection (b)(1) an 
        amount equal to the amount credited to the Fund during the 
        preceding year pursuant to section (b) with respect to such 
        lease. If such land is located in more than one county, the 
        Secretary shall allocate such payment among such counties on 
        the basis of the relative amount of lands subject to the lease 
        within each such county.
          (2) Use of payment.--Amounts paid to a county under this 
        subsection shall be used by the county for the planning, 
        construction, and maintenance of public facilities and the 
        provision of public services.

SEC. 504. ADDITIONAL NOTICE REQUIREMENTS.

  (a) Permittees.--At least 45 days before offering lands for lease 
pursuant to section 17(f) of the Mineral Leasing Act (30 U.S.C. 
226(f)), the Secretary of the Interior shall provide notice of the 
proposed leasing activity in writing to the holders of special 
recreation permits for commercial use, competitive events, and other 
organized activities on the lands being offered for lease.
  (b) Conservation Easement Holders.--
          (1) If the holder of a conservation easement or similar 
        property interest in the surface estate of lands eligible for 
        leasing under the Mineral Leasing Act has informed the 
        Secretary of the Interior of the existence of such property 
        interest, the Secretary shall treat such holder as a surface 
        estate owner for purposes of section 221(d) of this Act.
          (2) As soon as possible after the date of enactment of this 
        Act, the Secretary of the Interior shall establish a means for 
        holders of property interests described in paragraph (1) to 
        provide notice of such interests, and shall inform the public 
        regarding such means.

                          Purpose of the Bill

    The purpose of H.R. 2337, the Energy Policy Reform and 
Revitalization Act, is to promote energy policy reforms and 
public accountability, alternative energy and efficiency, and 
carbon capture and climate change mitigation, and for other 
purposes.

                  Background and Need for Legislation

    The Energy Policy Reform and Revitalization Act is fiscally 
responsible legislation which addresses the nation's needs for 
a sounder energy policy and the challenges of climate change 
mitigation in regards to public lands and natural resources. 
The bill restores accountability to the Federal oil and gas 
leasing program, both in terms of permitting and royalty 
collection. The bill further addresses the development of oil 
and gas resources on split-estate lands, so that surface 
owners, who do not hold title to the minerals, are notified and 
compensated when the sub-surface oil and gas resources are 
developed. H.R. 2337 includes a number of renewable energy 
provisions relating to biomass, hydropower, ocean thermal, and 
solar. The bill also authorizes USGS carbon capture and 
sequestration assessments and inventories, requires the BLM to 
develop a framework for carbon sequestration on public lands, 
and sets forth several new climate change initiatives related 
to the oceans, wildlife and climate change projections.
    In developing this legislation, the committee considered 
the recommendations of more than 100 witnesses who testified at 
14 hearings since January 2007. Key provisions included in H.R. 
2337 as reported by the Committee will:
    Give the Department of the Interior enhanced enforcement 
authority and auditing capability to ensure that companies pay 
oil and gas royalties that they owe for the development of 
publicly-owned resources. These provisions have no impact on 
the vast majority of companies that pay their royalties in full 
and on time. Underpayment and fraudulent activity by oil and 
gas lessees is a serious problem in the Federal oil and gas 
royalty management program. In 2001, a number of the nation's 
biggest oil companies settled allegations of systematic 
cheating on royalty payments by paying nearly $440 million to 
the United States.
    Initiate a framework for enabling our nation to sequester 
carbon dioxide under the ground to insure the future use of 
fuels, such as coal, in an environmentally responsible 
fashion--helping to mitigate the impact of global warming and 
reasserting America's responsibility to address worldwide 
climate change.
    Rather than have taxpayers foot the bill, implement the 
Administration's proposed fee for the processing of 
applications for a permit to drill on public lands and also 
impose a $1 per acre fee on non-producing oil and gas and coal 
leases, generating revenue that is reinvested to restore 
degraded public lands.
    Codify the Western Governors' Association policy concerning 
categorical exclusions from the National Environmental Policy 
Act to better protected wildlife migration corridors and 
crucial wildlife habitat on western public lands.
    Eliminate the arbitrary deadlines of the western energy 
corridor process, and allow for a study to ensure that 
officials look at where the congestion really exists and 
consider where those special places are that should not have 
pipelines running through or wires strung over.
    Provide for more responsible development of oil shale 
resources.
    Help protect the right to healthy lands and waters for 
surface owners in split eState situations--areas in which the 
surface rights belong to private individuals, while the rights 
to the oil and gas resources under the surface are publicly 
held and managed by the government.
    Encourage the development of renewable resources through 
the establishment of an innovative program to more effectively 
use woody biomass derived from brush, hazardous fuel reduction, 
and ecological restoration on Federal forest lands. It would 
also set up a process for generating between 4 and 25 gigawatts 
of solar power on Federal lands.
    Authorize guidance for avoiding and minimizing impacts to 
wildlife and habitat for the wind energy industry--a need 
affirmed by the Fish and Wildlife Service--to help ensure that 
the industry is able to develop and grow in a responsible 
manner.
    Establish a national ocean observation system to detect 
daily changes and cyclical shifts in the ocean environment and 
gather information important to national defense, marine 
commerce, and scientific research--a key recommendation 
outlined by the Joint Ocean Commission Initiative.
    Direct the Secretary of the Interior to develop a national 
strategy to assist wildlife populations and their habitats in 
adapting to the impacts of climate change--and provide States 
new funding opportunities to assist wildlife in adapting to 
global warming.

                            Committee Action

    H.R. 2337 was introduced by Natural Resources Committee 
Chairman Nick J. Rahall, II (D-WV) and Energy and Mineral 
Resources Subcommittee Chairman Jim Costa (D-CA) on May 16, 
2007. The bill was referred to the Committee on Natural 
Resources. A full committee hearing was held on May 23, 2007.
    In addition, 13 hearings were held by the full committee or 
the subcommittees on topics related to H.R. 2337 in the weeks 
preceding introduction of the bill:
     February 16, 2007, Natural Resources Committee 
oversight hearing on ``Reports, Audits and Investigations by 
the Government Accountability Office and the Office of 
Inspector General Regarding the Department of the Interior.'' 
This hearing provided an overview of issues and problems 
identified or under review by the Department of the Interior's 
Inspector General (IG) and the Government Accountability Office 
(GAO). The Committee heard testimony related to the ongoing, 
serious problems at the Minerals Management Service (MMS) 
relating to royalty collection and auditing of oil and gas 
lessees. Specifically, the IG's December 2006 report (Report 
No. C-IN-MMS-0006-2006), on the audit and compliance review 
process at MMS found that there are aspects of the process that 
should be improved, including data collection and the threshold 
for conducting full-scale audits. In addition, the report 
states that MMS has reduced the number of auditor positions 
located in the Compliance and Asset Management Program by 35, 
or 20.7 percent, since 2000. The MMS has reduced the number of 
audits by 22 percent over the period from 2000/2001 to 2004/
2005.
    The Committee also heard testimony from GAO relating to a 
2005 report on oil and gas drilling permits approved by the 
Bureau of Land Management (BLM) between 1999 and 2004. In its 
report, GAO concluded that the BLM's increased oil and gas 
permitting activity ``has lessened BLM's ability to meet its 
environmental protection responsibilities.'' GAO's analysis 
found that as permits for oil and gas development tripled 
nationwide--from 1,803 in fiscal year 1999 to 6,399 in 2004--in 
five out of eight BLM field offices, staff had to spend 
increased time processing drilling permits, resulting in less 
time for mitigation activities, such as environmental 
inspections and idle-well reviews.
     February 28, 2007, Natural Resources Committee 
oversight hearing on the ``Evolving West.'' This hearing 
focused on the changing environmental and economic conditions 
of the western States, and the increasing pressures on public 
lands and resources. Witnesses identified growing conflicts 
between poorly managed oil and gas development and other uses 
of the public lands.
     March 20, 2007, Subcommittee on Energy and Mineral 
Resources oversight hearing on ``Toward a Clean Energy Future: 
Energy Policy and Climate Change on Public Lands.'' This 
hearing provided an overview of the challenges posed by global 
climate change on our public lands, from a potential increase 
in California fires to the impact of melting polar ice on 
wildlife to negative impacts on the environmental and 
ecotourism industry. Approximately 30% of the nation's land, 
almost 700 million acres, is public land managed by the 
Department of the Interior and the U.S. Forest Service. Climate 
change is having a significant effect on national parks and 
other protected areas, as evidenced by increasing cycles of 
drought, wildfire and severe storms. Witnesses advocated a 
range of approaches, some of which are included in H.R. 2337, 
especially as it relates to wildlife protection.
     March 27, 2007, Natural Resources Committee 
oversight hearing on ``Access Denied: The Growing Conflict 
between Fishing, Hunting and Energy Development on Federal 
Lands.'' This hearing highlighted the concerns of hunters and 
anglers in the debate on the balanced use of Federal lands. 
Hunting and fishing constitute an important component of the 
American way of life and should remain available to all 
Americans regardless of financial means. Yet, as the hearing 
documented, hunters and anglers are alarmed by the escalating 
harm to fish and wildlife habitat from oil and gas development. 
The Committee heard from a labor-sportsman coalition that has 
coalesced to address concerns about the adverse effects of oil 
and gas activities on wildlife, who recommended amendments to 
EPAct, greater protection of wildlife corridors and habitat, 
and surface owner protections for split-estate lands.
     March 28, 2007, Natural Resources Committee 
oversight hearing on ``Royalties at Risk.'' This full committee 
hearing focused on the mismanagement of Federal royalty 
collection at the Minerals Management Service, brought to light 
by recent Inspector General and GAO reports and by the press. 
Assistant Secretary of the Department of the Interior C. 
Stephen Allred and the Acting Director of the Natural Resources 
and Environment section of the GAO testified on the changes 
that have been made at the Department of the Interior and 
within MMS to address some of the many problems facing that 
agency. Witnesses also included former MMS auditors who 
testified on the significant problems at MMS, and the resultant 
significant losses to the Federal treasury, States and Native 
tribes as a result of mismanagement. Problems identified 
included both institutional weaknesses and inadequacies in 
existing law.
    Over the last decade, MMS has shifted its emphasis toward 
the royalty-in-kind (RIK) program to the detriment of effective 
royalty collection. Since 1997, when it initiated three ``pilot 
programs,'' MMS has progressively increased the size and scope 
of the RIK program. At Chairman Rahall's request, GAO reviewed 
the RIK program and found that revenue impacts from RIK sales 
in three pilot-project areas indicated a mixed performance, 
that MMS needed to identify and acquire key information to 
monitor and evaluate the RIK program prior to expanding the 
program further, and that MMS was unable to determine whether 
it was losing revenue through its RIK pilot programs. In 
addition, the New York Times has recently reported that the 
Justice Department is conducting criminal investigations into 
officials in charge of the RIK program.
     March 29, 2007, Subcommittee on Fisheries, 
Wildlife and Oceans oversight hearing on ``Ocean Policy 
Priorities in the United States.'' This hearing provided an 
overview of the recommendations of the U.S. Commission on Ocean 
Policy and the Pew Oceans Commission. While the recommendations 
of the two Commissions were broad and far reaching, both 
emphasized the need for better coordination and alignment of 
purpose amongst the Federal agencies that authorize or conduct 
activities in the oceans to minimize the impacts of those 
activities--including energy development--on the marine 
environment. Witnesses testified about the need for Congress to 
quickly authorize a national integrated coastal ocean 
observation system in order to collect more and better data 
from the oceans and better predict and manage the impacts that 
climate change is having and will have on the oceans and our 
atmosphere. They also testified on the need for additional 
research and planning to understand and accommodate the impacts 
of climate change on the coastal zone and the communities that 
live there.
     April 17, 2007, Subcommittee on Energy and Mineral 
Resources oversight hearing on ``Implementation of Title III, 
the Oil and Gas Provisions of the Energy Policy Act of 2005.'' 
This hearing took an in-depth look at some of the problems 
created by Title III of EPAct 2005, specifically Sections 
365(g), 366, 368, 369 and 390. Witness testimony supported the 
2005 GAO report finding that the BLM's increased oil and gas 
permitting activity ``has lessened BLM's ability to meet its 
environmental protection responsibilities.''
    As discussed during the hearing, oil and gas development 
has ecological consequences. The ``footprint'' of an individual 
well or pad may be relatively small, but production requires 
infrastructure and development such as roads and pipelines that 
can contaminate water, reduce water quantity, degrade fish 
habitat, and fragment wildlife corridors, calving grounds, and 
nesting areas. Economically and culturally, wildlife is an 
important component of the West. Trout Unlimited estimates that 
nine million people spend more than $5 billion each year to 
hunt, fish, or otherwise enjoy the wildlife populations in the 
five Rocky Mountain States.
    Section 390 of EPAct allows BLM to use categorical 
exclusions under the National Environmental Policy Act of 1969 
for individual sites that involve surface disturbance of less 
than five acres; for a well at a location on which drilling has 
previously occurred within 5 years; for a well within a 
developed field that has an approved land use plan ``or any 
environmental document prepared pursuant to NEPA'' within the 
preceding 5 years; for a new pipeline in an approved right-of-
way corridor as long as the approval occurred within five years 
of construction of the pipeline; and for maintenance of a minor 
activity. In a resolution approved Feb. 27, 2007, the Western 
Governors Association called on Congress to remove that 
categorical exclusion language for exploration or development 
of oil and gas in wildlife corridors and crucial wildlife 
habitat on Federal land.
    In general, witnesses recommended repeal of Section 390 of 
EPAct 2005, asserting that without the blanket exemption for 
oil and gas activities on Federal lands, BLM would be able to 
consider applications for ``categorical exclusions'' from NEPA 
review, but all such applications would be subject to the 
``extraordinary circumstances'' criteria of the Department of 
the Interior's NEPA rules. In other words, repeal of the 
provision would allow the BLM some discretion in applying a 
categorical exclusion to NEPA for oil and gas activities.
     April 17, 2007, Subcommittee on Fisheries, 
Wildlife and Oceans oversight hearing on ``Wildlife and Oceans 
in a Changing Climate.'' This hearing provided an overview of 
the impacts that climate change is having and will continue to 
have on oceans and wildlife.
    Several witnesses, including experts on chemical 
oceanography, wildlife biology, and conservation testified 
regarding the need to research, anticipate and plan for the 
impacts of ocean acidification on marine life and the impacts 
of climate change on wildlife populations and their habitats.
     April 19, 2007, Subcommittee on Energy and Mineral 
Resources oversight hearing on ``Review of Title II, Subtitle 
B--Geothermal Energy of EPAct; and other renewable programs and 
proposals for public resources.'' This hearing focused on the 
vast potential for increasing domestic energy production on 
public lands using renewable energy. According to witnesses 
from the geothermal, solar, wind, and biomass industries, 
renewable energy has the potential to create American jobs, 
reduce fossil fuel emissions from energy production, and create 
substantial amounts of green energy. However, significant 
challenges to the industry still exist, and long term research 
and development projects are needed to bring these new and 
emerging technologies to a commercial scale, in addition to 
ensuring the energy produced by renewable energy can obtain 
access to the Federal transmission system.
     April 24, 2007, Subcommittees on Energy and 
Mineral Resources and Fisheries, Wildlife and Oceans joint 
oversight hearing: ``Renewable Energy Opportunities and Issues 
on the Outer Continental Shelf.'' This hearing reviewed the 
opportunities for renewable energy development on the Outer 
Continental Shelf (OCS). While it was generally acknowledged 
that there is a vast potential for renewable energy generation 
on the OCS, the roles of the Minerals Management Service, 
Federal Energy Regulatory Commission, and National Oceanic and 
Atmospheric Administration in managing projects are not clear. 
Additional environmental concerns indicate the need for more 
careful and thorough study of the potential projects. Witnesses 
from State organizations, the renewable energy industry, and 
fisheries associations testified that while the challenges 
associated with OCS renewable energy development are real, so 
are the opportunities.
     April 26, 2007, Subcommittees on Energy and 
Mineral Resources and National Parks, Forests and Public Lands 
joint oversight hearing on ``Land Use Issues Associated with 
Onshore Oil and Gas Leasing and Development.'' This hearing 
focused on the effects of provisions in EPAct 2005 that 
facilitate oil and natural gas activities on public lands, and 
the concern that this emphasis results in inadequate 
environmental planning. Additionally, witnesses raised the 
issue of stockpiling leases, noting the recent steep increase 
in permits without increased production.
    A representative of the Western Governors Association 
testified about their call for the repeal of a provision in the 
Energy Policy Act of 2005 that created new categorical 
exclusions from the National Environmental Policy Act. 
Witnesses also discussed conflicts arising from split estate 
ownership, the surface disposal of large quantities of mineral-
laden water produced as a result of gas drilling, the perceived 
failure of the agencies to require that drilling companies 
provide adequate bonds and perform appropriate reclamation, and 
the damage and potential harm to sacred sites, cultural 
treasures, and recreational opportunities.
    As was noted during the hearing, a 2003 BLM report 
indicates that 85% of the oil and 88% of proven gas reserves on 
Federal lands in Colorado, New Mexico, Montana, Utah, and 
Wyoming were (and are) available for leasing and development. 
Today, approximately 36 million acres of onshore public lands 
are under lease for oil and gas development with ample room for 
expanded production: just 12.5 million acres, or 35%, are in 
production.
    BLM estimates it received 11,500 applications for permits 
to drill in Fiscal Year 2007, compared to 8,350 in Fiscal Year 
2005. A May 2006 BLM internal report entitled ``Commitments 
Made in Decision Documents Not Yet Achieved'' documented 
failures in the Pinedale, Wyoming Field Office to uphold 
mitigation and monitoring commitments made in past oil and gas 
decisions in the Upper Green River Valley. Witnesses raised 
concern that BLM's leasing frenzy is undermining other Federal 
and State expenditures to protect other resources: for 
instance, FWS and the States spent a lot of time and effort 
crafting a plan intended to help sage grouse and prevent a 
formal ESA listing for that bird.
     May 1, 2007, Subcommittees on Energy and Mineral 
Resources and National Parks, Forests and Public Lands joint 
oversight hearing on ``The Future of Fossil Fuels: Geological 
and Terrestrial Sequestration of Carbon Dioxide.'' Witnesses at 
this hearing affirmed that coal will be a necessary and 
important part of our energy future, and that it is important 
to develop technologies which will enable us to use coal in the 
most environmentally sound manner possible. Both terrestrial 
and geological carbon sequestration were discussed, with the 
consensus being that these offer real opportunities to reduce 
carbon dioxide emissions. However, more research needs to be 
done to map the potential areas for geological sequestration of 
carbon dioxide, and to develop this important new technology. 
While the Department of Energy's Regional Sequestration 
Partnerships have done an excellent job in gathering data and 
conducting initial tests, there was no standard peer-reviewed 
methodology used by the different partnerships, and there are 
still some data gaps that need to be addressed.
     May 1, 2007, Subcommittee on Fisheries, Wildlife 
and Oceans: ``Gone with the Wind: Impacts of Wind Turbines on 
Birds and Bats.'' The purpose of this hearing was to follow up 
on a September, 2005 GAO report requested by Chairman Rahall 
and Congressman Alan Mollohan entitled, ``Wind Power: Impacts 
on Wildlife and Government Responsibilities for Regulating 
Development and Protecting Wildlife.'' The GAO testified that 
utility-scale wind energy facilities have killed large numbers 
of birds and bats in various locations across the country, and 
that environmental regulatory oversight of this industry is 
minimal and/or inconsistent from State to State. The GAO 
determined that our current understanding of interactions 
between wind turbines and wildlife is insufficient and that any 
significant expansion of the wind energy sector could 
substantially increase the potential for negative population-
level impacts on wildlife.
    Witnesses at this hearing affirmed that wind energy is 
having a demonstratively negative impact on wildlife, 
especially bats in the Appalachian region. Witnesses also 
stated that the existing Federal wind energy tax credit 
provides another nexus to justify Federal oversight. A witness 
from the U.S. Fish and Wildlife Service testified that the wind 
industry's compliance with the Service's voluntary, interim 
wind energy guidelines was ``sketchy at best'' and that the 
Federal government needed specific regulatory and enforcement 
authority to minimize impacts to protected wildlife. Other 
witnesses expressed a glaring need for additional research 
regarding engineering and design standards in order to minimize 
impacts before the industry expands.

                      Full Committee Markup Action

    On Wednesday, June 6, 2007, Thursday, June 7, 2007, and 
Wednesday, June 13, 2007, the Natural Resources Committee met 
in open session to consider the bill. Natural Resources 
Committee Chairman Nick J. Rahall, II (D-WV) offered an 
amendment in the nature of a substitute.
    Mr. Costa offered an amendment to amend section 102, 
extending the deadline for processing of applications for 
permits to drill from 30 to 90 days, rather than repealing the 
deadline, which was agreed to by voice vote.
    Mr. Costa offered an amendment to adjust the Healthy Lands 
fees to apply to lands that are subject to the relevant leases 
when the regulations go into effect, and to count such fees as 
offsetting receipts, which was agreed to by voice vote.
    Mr. Costa offered an amendment to clarify language in 
section 304, dealing with the Strategic Solar Reserve Leasing 
Program, which was agreed to by voice vote.
    Mr. DeFazio offered an amendment relating to old growth 
forests and the biomass utilization pilot program, which was 
agreed to by voice vote.
    Mr. Grijalva offered an amendment to ensure that nothing in 
section 103 limits the ability of the Secretaries to authorize 
rights of way for energy transmission projects that are 
consistent with the governing land use plan, after completion 
of environmental analysis and in compliance with applicable 
laws, which was agreed to by voice vote.
    Mr. Abercrombie offered an amendment to change the energy 
corridor right of way study deadline from 18 months to 6 
months, which was agreed to by voice vote.
    Mr. Gilchrest offered an amendment to introduce a new title 
to delay implementation of Titles I and II pending 
determinations by the Secretary of the Interior, which was 
withdrawn.
    Mr. Inslee offered an amendment to add a title requiring a 
deadline for a memorandum of understanding between the Minerals 
Management Service and the Federal Regulatory Commission 
relating to jurisdiction over the permitting of ocean power 
projects in Federal waters, which was withdrawn.
    Mr. Inslee offered an amendment to add a title on Ocean 
Energy Licensing and Leasing, which was withdrawn.
    Mr. Inslee offered an amendment to add a new title 
regarding a seven year nonpayment period for ocean renewable 
energy resources, which was withdrawn.
    Mr. Jindal offered an amendment to provide for payments to 
adjacent States of 37.5% of revenues from alternative energy 
leases on the outer continental shelf, which was withdrawn.
    Mr. Jindal offered an amendment to add inventories of 
offshore infrastructure capable of supporting alternative 
energy development to section 301, which was passed by voice 
vote.
    Mr. Jindal offered an amendment to designate 37.5% of the 
cost recovery fees under section 101 for coastal restoration 
activities, which was withdrawn.
    Mrs. McMorris Rodgers offered an amendment to section 241, 
which was agreed to by voice vote.
    Mr. Heller offered an amendment to transfer the remaining 
balance in the permit processing pilot fund into the payment in 
lieu of taxes program, which was withdrawn.
    Mr. Sali offered an amendment to strike section 231, which 
was withdrawn.
    Mr. Pearce offered an amendment to include additional 
renewable energy definitions in section 103, which was agreed 
to by voice vote.
    Mr. Udall offered an amendment to add a section on Oil 
Shale Community Impact Assistance, which was agreed to by voice 
vote.
    Mr. Udall offered an amendment to provide for additional 
notice to conservation easement holders and special-use 
recreation permit holders, which was agreed to by voice vote.
    Mr. Baca offered an amendment to broaden the reverse 
osmosis research program in section 303, which was agreed to by 
voice vote.
    Mr. Pearce offered an amendment to expand the maximum size 
of the strategic solar reserve program to 25 gigawatts, which 
was accepted by voice vote.
    Mr. Flake offered an amendment to strike language relating 
to coordination of the national strategy for wildlife in 
section 454 with other plans, which was withdrawn.
    Mr. Flake offered an amendment to strike the National 
Global Warming and Wildlife Science Center in section 455, 
which was withdrawn.
    Mr. Bishop offered an amendment to strike the phrase 
``ecological forest restoration'' and offer a more detailed 
definition for the biomass provisions, which was withdrawn.
    Mr. Pearce offered an amendment to make the effective date 
of the bill dependent upon the Secretary of the Interior 
certifying that nothing in the bill would reduce the production 
of domestic energy or increase imports or prices, which was not 
agreed to by a rollcall vote of 16 yeas and 23 nays as follows:


    Mr. Pearce offered an amendment to include carbon dioxide 
captured from coal- and coal-to-liquids facilities, and liquid 
fuels derived from coal, in the proposed study of congestion 
and constraints in energy transmission, which was agreed to by 
a rollcall vote of 32 yeas and 10 nays as follows:


    Mr. Pearce offered an amendment to allocate twenty percent 
of any penalties received due to underpayment of royalties for 
coal-to-liquids programs and pilot projects, which was not 
agreed to by a rollcall vote of 20 yeas and 26 nays as follows:


    Mr. Pearce offered an amendment to make funds received from 
non-producing coal leases under the due diligence fee 
established in section 224 available for coal-to-liquids 
programs and pilot projects, which was agreed to by a rollcall 
vote of 30 yeas and 15 nays as follows:


    Mr. Pearce offered an amendment to add the Office of 
Surface Mining Reclamation and Enforcement to the Interagency 
Council on Climate Change, which was agreed to by a rollcall 
vote of 45 yeas and 0 nays as follows:


    Mr. Pearce offered an amendment to exclude the 
consideration of the impact of coal-fired power plants and 
coal-to-liquids plants in developing climate change resiliency 
planning grants, which was not agreed to by a rollcall vote of 
18 yeas and 27 nays as follows:


    Mr. Markey offered an amendment to create a wind turbine 
advisory committee by substituting a new subtitle D in title 
II, which was agreed to by a rollcall vote of 43 yeas and 1 nay 
as follows:


    Mr. Bishop offered an amendment to require a fee to file 
protests against applications for permits to drill, which was 
not agreed to by a rollcall vote of 17 yeas and 27 nays as 
follows:


    Mr. Inslee offered an amendment to require the preparation 
of Programmatic Environmental Impact Statements for marine and 
hydrokinetic renewable energy projects in each of the 
Environmental Protection Agency regions, which was agreed to by 
a rollcall vote of 45 yeas and 0 nays as follows:


    Mrs. McMorris Rodgers offered an amendment to include 
hydropower projects in the study of constraints of energy 
transmission due to congestion and lack of access to the 
Federal grid, which was agreed to by a rollcall vote of 44 yeas 
and 0 nays as follows:


    Mr. Markey offered an amendment to add a new title, Title 
V, to include renewable energy projects as potential recipients 
of money that is also made available for coal-to-liquids 
projects as a result of the bill, which was agreed to by a 
rollcall vote of 26 yeas and 18 nays as follows:


    Mr. Lamborn offered an amendment to generally increase 
owner's rights with respect to canal side power production at 
Bureau of Reclamation projects, which was agreed to by a 
rollcall vote of 23 yeas and 21 nays as follows:


    Mr. Pearce offered an amendment to allow the Secretary of 
the Interior to reimburse States for any loss of revenue as a 
result of the bill, which was not agreed to by a rollcall vote 
of 18 yeas and 21 nays as follows:


    Mr. Pearce offered an amendment to require that the 
Secretary of the Interior issue no fewer oil and gas leases 
between Fiscal Years 2001-2008 as were issued between 1992-
2000, which was not agreed to by a rollcall vote of 15 yeas and 
25 nays as follows:


    Mr. Sali offered an amendment to require the Secretary of 
Energy to determine that this Act will not increase domestic 
crude oil, natural gas, or petroleum product prices before 
Titles I and II can take effect, which was not agreed to by a 
rollcall vote of 17 yeas and 25 nays as follows:


    Mr. Sali offered an amendment to remove inventoried 
roadless areas from the biomass supply study of Section 307, 
which was not agreed to by a rollcall vote of 17 yeas and 28 
nays as follows:


    Mr. Flake offered an amendment to strike the National 
Global Warming and Wildlife Science Center, which was not 
agreed to by a rollcall vote of 20 yeas and 28 nays as follows:


    Mr. Jindal offered an amendment to treat any leases 
extended as a result of renegotiation in an attempt to 
incorporate price thresholds as being subject to the revenue 
sharing provisions of the Gulf of Mexico Energy Security Act, 
which was not agreed to by a rollcall vote of 22 yeas and 26 
nays as follows:


    Mr. Pearce offered an amendment to strike titles I and II, 
which was not agreed to by a rollcall vote of 21 yeas and 27 
nays as follows:


    Mr. Cannon offered an amendment to strike the oil shale and 
tar sands leasing provisions of the bill, which was not agreed 
to by a rollcall vote of 22 yeas and 26 nays as follows:


    Mr. Gohmert offered an amendment to strike the biomass 
utilization program, which was not agreed to by a rollcall vote 
of 21 yeas and 27 nays as follows:


    The amendment in the nature of a substitute, as amended, 
was adopted by a vote of 28 ayes to 20 nays, as follows:


    The bill, as amended, was then ordered favorably reported 
to the House of Representatives by a rollcall vote of 26 yeas 
and 22 nays, as follows:


             Section-by-Section Analysis of the Legislation


Section 1. Short title

    Section 1 provides the short title of the legislation, the 
``Energy Policy Reform and Revitalization Act of 2007.''

               Title I--Energy Policy Act of 2005 Reforms


Section 101. Fiscally responsible energy amendments

    As recommended by the Administration, subsection (a) 
repeals Sec. 365(i) of the Energy Policy Act of 2005 (EPACT), 
which prohibited the recovery of additional fees to cover the 
processing of drilling-related permit applications, and directs 
the Secretary of the Interior to promulgate regulations 
establishing a fee to recover costs incurred during processing 
of Applications for Permits to Drill (APD). This subsection 
also establishes a $1,700 per application fee until such 
regulations are promulgated. This proposal is consistent with 
the administration's budget for FY08.
    Subsection (b) repeals the permit processing improvement 
fund created by EPACT Sec. 365(g), and transfers any money in 
the permit processing improvement fund into the general fund of 
the U.S. Treasury. EPACT Sec. 365(g) amended section 191 of the 
Minerals Leasing Act to require that 50% of all rentals 
collected be made automatically available to BLM, without 
further appropriation, for oil and gas permit processing.

Section 102. Extension of deadline for consideration of applications 
        for permits

    This section amends EPACT Sec. 366 to extend to 90 days the 
previous 30-day timeframe for the BLM to process onshore oil 
and gas permits. The mandatory 30-day timeframe minimized 
public involvement and the ability for BLM to review impacts on 
resources.

Section 103. Energy rights-of-way corridors on Federal land

    EPACT Sec. 368 required the designation of pipeline and 
electricity transmission corridors on Federal land by August, 
2007, minimizing the amount of time available for environmental 
review and State and Tribal consultation. section 103(a) 
eliminates the arbitrary deadlines in Sec. 368.
    Section 103(b) gives the Secretaries of Agriculture, 
Commerce, Defense, Energy, and Interior six months to complete 
a study of the need for energy corridors on public lands, 
excluding from potential corridor designation any lands 
protected by Federal or State law for their natural, cultural, 
or historic resources. The study will look at congestion and 
constraints in the transmission of electricity, oil, gas, 
hydrogen, liquids from coal, and carbon dioxide, as well as 
barriers to access by renewable energy sources.
    Section 103(d) clarifies that this section does not 
restrict the Secretary from authorizing rights-of-way for 
energy transmission when that is consistent with current land 
use plans.

Section 104. Oil shale and tar sands leasing

    EPACT Sec. 369 mandated an accelerated timetable for the 
creation of a commercial leasing program for oil shale and tar 
sands. This section eliminates the deadline for the completion 
of the Programmatic Environmental Impact Statement, and 
provides additional time for the development of proposed 
leasing regulations, rather than final leasing regulations, 
after the completion of the PEIS. The proposed regulations 
would be open to public comment for 180 days. This section also 
requires the Departments of Interior and Energy to work with 
the Environmental Protection Agency on an oil shale and tar 
sands leasing and development strategy, and to develop 
alternative approaches for providing access to Federal lands 
for pioneering commercial facilities for oil shale and tar 
sands. These changes are consistent with the position of the 
State of Colorado.

Section 105. Limitation on rebuttable presumption regarding application 
        of categorical exclusion under NEPA for oil and gas exploration 
        and development activities

    This section amends EPACT Sec. 390, which created 
categorical exclusions (thereby obviating the need for further 
environmental review) for a series of oil and gas drilling 
activities. Sec. 390(b)(3) is amended in accordance with the 
resolution of the Western Governors Association by protecting 
crucial wildlife habitat and significant wildlife migration 
corridors in developed fields. This section also clarifies that 
the EPACT categorical exclusions are to be treated in 
accordance with Council for Environmental Quality (CEQ) 
regulations regarding categorical exclusions.

Section 106. Best management practices

    This section requires BLM to update their best management 
practices guidelines to require public review and comment 
before any lease stipulations are waived, except in emergency 
situations. Lease stipulations are specific conditions on a 
lease, often used to protect wildlife habitat, water quality, 
air quality, or provide other environmental safeguards. This 
section provides for expedited permit reviews for operators 
that commit to adhere to best management practices for 
protection of wildlife habitat without seeking a waiver of any 
stipulations.

Section 107. Federal consistency appeals

    This section amends Sec. 319 of the Coastal Zone Management 
Act to increase from 160 days to 320 days the amount of time 
allotted to the Secretary of Commerce to compile a record of 
decision (ROD) used in an appeal of State consistency. This 
time period is more representative of the actual record of time 
used by the Secretary to compile past RODs.

 Title II--Federal Energy Public Accountability, Integrity, and Public 
                                Interest


 SUBTITLE A--ACCOUNTABILITY AND INTEGRITY IN THE FEDERAL ENERGY PROGRAM

Section 201. Limitations on royalty in-kind

    This section amends EPACT Sec. 342 to prohibit the Federal 
Government from taking royalties in-kind, as opposed to in-
value, except for when the oil taken in-kind is to be used for 
filling the Strategic Petroleum Reserve.

Section 202. Audits

    This section requires the Minerals Management Service (MMS) 
to perform no less than 550 audits each year by 2009. The 
average number of audits conducted by MMS was roughly 540 per 
year from 1998 to 2001; the average from 2002 to 2005 was 393, 
and in 2006 MMS only conducted 144 audits. This section also 
requires that all audits conducted by MMS be in accordance with 
the Government Auditing Standards published by the Government 
Accountability Office. In addition, all staff performing audits 
or compliance reviews much meet professional qualifications 
consistent with those standards.

Section 203. Fines and penalties

    This section amends the Federal Oil and Gas Royalty 
Management Act to increase fines for underpayment or late 
payment of royalties. After a 30-day grace period, violators 
would be liable for three times the royalty plus interest, plus 
a fee of up to $25,000 per day until the violation is 
corrected. Penalties for administrative violations are doubled 
to up to $10,000 per violation per day. A new provision is 
added to subject repeat violators to further tripling of the 
penalty and the potential for a cancellation of the lease and a 
prohibition from acquiring future leases. The section also 
extends the statute of limitations for oil and gas leases held 
by violators, and provides that money awarded to the federal 
government under civil lawsuits for the underpayment of 
royalties be shared with states or the Land and Water 
Conservation Fund (for offshore lease violations).

  SUBTITLE B--AMENDMENTS TO FEDERAL OIL AND GAS ROYALTY MANAGEMENT ACT

Section 211. Amendments to definitions

    This section clarifies the definition of ``designee'' under 
FOGRMA, and allows the Secretary to correspond with the 
designee only, as opposed to having to contact each individual 
lessee (that has designated that designee) in writing.

Section 212. Interest

    This section eliminates the requirement that the Federal 
government pay interest on royalty overpayments made by 
operators. This eliminates the incentives that operators had to 
make errors in their favor on their royalty calculation and 
receive a guaranteed return.

Section 213. Obligation period

    This section establishes that in the case of an adjustment 
made by a lessee that results in an underpayment, the lessee 
will be obligated to repay that amount (plus interest) from the 
date the lessee makes the adjustment, thus extending the 
statute of limitations on that royalty payment. This will 
enable the MMS to audit such lease during the ensuing six-year 
cycle.

Section 214. Tolling agreements and subpoenas

    This section allows the Secretary to only correspond with 
the lease designee in the case of subpoenas or agreements to 
pause the statute of limitations, as opposed to having to 
contact each lessee individually.

Section 215. Liability for royalty payments

    This section establishes that designees are liable for 
royalty payments under a lease, and that lease owners and 
operators are liable for their pro-rated share of payment 
obligations under a lease.

       SUBTITLE C--PUBLIC INTEREST IN THE FEDERAL ENERGY PROGRAM

Section 221. Surface owner protection

    This section requires written agreements between an 
operator and surface owner prior to exploration and drilling 
operations, including a reclamation plan that is acceptable to 
both surface estate owner and operator, and compensation for 
damages to a surface owner's income and property. It also sets 
procedural guidelines and a timetable for arbitration. The 
section further authorizes the Secretary, under certain 
conditions and criteria, to authorize exploration and drilling 
operations when arbitration between parties fails, and to 
compensate surface estate owners from bonds and financial 
assurances when property is damaged, or to release the bonds 
when operations end without damage. A schedule is established 
for surface owner notification of lease sales, issuances, and 
other leasing decisions.

Section 222. Onshore oil and gas reclamation and bonding

    This section amends section 17 of the Mineral Leasing Act 
to require oil, gas, and coalbed methane operators to undertake 
complete and timely restoration necessary to return lands to a 
condition that can support comparable or higher uses than their 
condition prior to drilling. It also requires operators to post 
a bond, or other financial guaranty, that covers reclamation of 
all operations within a permit area, to post additional 
financial assurances as operations expand, and authorizes the 
Secretary to determine the amount of the bond based on the 
probable difficulty of reclamation.

Section 223. Protection of water resources

    This section amends section 17 of the Mineral Leasing Act 
to require oil, gas, and coalbed methane operators to replace 
or remediate any lost or contaminated surface or groundwater 
supply to water users. This section also requires applicants 
for permits to drill to provide a water management plan that 
protects the quantity and quality of water supplies onsite and 
downstream, or to provide alternative sources of water. That 
plan must include a means of preventing produced water from 
harming present water users and establish beneficial uses of 
the water where possible.

Section 224. Due diligence fee

    This section establishes a $1 per acre annual fee on oil, 
gas, and coal leases which are not in production, and reinvests 
that revenue to help fund the Administration's ``Healthy Lands 
Initiative'' to restore federal lands and resources damaged by 
oil and gas development. This section also provides that funds 
from non-producing coal leases are to be made available for 
coal-to-liquids programs or pilot projects, although that 
eligibility is broadened by the terms of Section 502.

                        SUBTITLE D--WIND ENERGY

    In an effort to reduce impacts to wildlife from wind energy 
facilities, in 2003 the U.S. Fish and Wildlife Service proposed 
voluntary interim guidelines for wind energy developers. The 
public comment period ended in 2005, but the Fish and Wildlife 
Service never published final guidelines.

Section 231. Wind Turbine Guidelines Advisory Committee

    This section authorizes the Secretary of the Interior to 
convene or utilize an existing Wind Turbine Guidelines Advisory 
Committee, in accordance with the Federal Advisory Committee 
Act, to study and make recommendations on guidance for wind 
energy developers to follow to avoid or minimize impacts to 
wildlife and their habitats related to wind energy facilities. 
The advisory committee would evaluate many issues, including: 
the Fish and Wildlife Service's 2003 interim guidance; methods 
to acquire information to assess and balance potential impacts 
to wildlife when siting and designing wind energy facilities; 
scientific tools and procedures to conduct pre-development 
assessments, post-construction monitoring for impacts to 
wildlife, and options for compensatory mitigation for 
unavoidable impacts; a process to coordinate State, tribal, 
local and national review of wind energy proposals consistent 
with existing Federal and State law and international treaties; 
determinations of project size thresholds and timetables to 
phase in guidance; and consultation with State wildlife 
agencies to assess current efforts to avoid or minimize 
wildlife impacts from wind turbines.
    No more than 20 members would serve on the advisory 
committee, and they would be appointed to achieve balanced 
representation from all stakeholders including the wind 
industry, wildlife conservation organizations and government. 
Within 18 months after date of enactment, the advisory 
committee would report to both the Secretary and the Congress 
on recommendations for effective measures that the wind 
industry, other stakeholders, government and tribal agencies 
could take to protect wildlife resources and enhance potential 
benefits to wildlife. Based upon these recommendations, the 
Secretary is directed, after public notice and comment, to 
issue final guidance to avoid or minimize impacts to wildlife 
from land-based wind energy facilities.

Section 232. Authorization of appropriations for research to study wind 
        energy impacts on wildlife

    This section authorizes $2 million per year for Fiscal 
Years 2008-2015 for research into minimizing wildlife impacts 
and developing effective mitigation methods for that purpose. 
It is expected that the research authorized will build on 
existing joint research conducted by the Fish and Wildlife 
Service and the U.S. Geological Survey to assess bird and bat 
migratory habitat and migration behavior.

Section 233. Enforcement

    This section reaffirms the Secretary's responsibility to 
enforce the Endangered Species Act, Migratory Bird Treaty Act, 
Bald and Golden Eagle Protection Acts, Marine Mammal Protection 
Act and National Environmental Protection Act to protect 
wildlife, and address adverse impacts on wildlife attributed to 
wind projects wherever those facilities are located. It does 
not change any of those existing laws.

Section 234. Savings clause

    This section explicitly states that nothing in this section 
preempts any State laws or regulations relating to wind 
projects or enforcement of applicable State laws.

               SUBTITLE E--ENHANCING ENERGY TRANSMISSION

Section 241. Power Marketing Administrations report

    This section directs Bonneville and Western Area Power 
Marketing Administration, in consultation with regional 
transmission entities, to study the adequacy of their 
transmission systems to carry an increased load from ocean 
wave, tidal and current energy projects in State and Federal 
waters adjacent to California, Washington, and Oregon. An 
amendment adopted during Committee consideration clarified that 
the costs of the study will be covered by the agency and not 
ratepayers. In addition, the amendment affirmed current law 
regarding the order for processing requests for transmission.

              Title III--Alternative Energy and Efficiency


Section 301. State ocean and coastal alternative energy planning

    This section amends the Coastal Zone Management Act to 
establish a new grant program to encourage coastal States to 
voluntarily complete surveys of the Outer Continental Shelf and 
adjacent coastal waters to identify areas suitable for 
development of renewable energy projects. The overall goal is 
to encourage States, in consultation with the MMS, to plan 
where they would like renewable energy projects to be located, 
and eliminate future State consistency certification conflicts 
between the State and Federal governments. The Secretary would 
be required to publish guidelines within 180 days after date of 
enactment. Grants awarded during FY 2008-FY 2010 would not 
require a non-Federal contribution, but matching funds would be 
required in subsequent years. A savings clause is included to 
clearly state that this provision does not supersede or preempt 
existing Federal authority to regulate energy development in 
the OCS nor grant new authorities to the coastal States.

Section 302. Canal-side power production at Bureau of Reclamation 
        projects

    This section requires the Secretary of the Interior to 
evaluate the potential for developing Bureau of Reclamation 
canal-side rights-of-way lands for solar or wind energy 
production through leasing of lands or other means. The Bureau 
of Reclamation owns and operates hundreds of water projects in 
17 Western States. Thousands of miles of open canals deliver 
project water to farms and cities. Project canals typically 
include a generous amount of adjacent federally-owned right-of-
way lands. In many cases these rights-of-way are used for 
project maintenance roads, but there may be opportunities to 
use these canal-side rights-of-way lands as locations for 
alternative electric energy production facilities, especially 
wind or solar. Energy produced canal-side could be used as a 
local power source for pumps, gates, and other facilities on 
the irrigation project. Any excess energy could be supplied to 
the grid for credit.
    Subsection (b) requires the Secretary of the Interior to 
consult with landowners and others who would be affected by 
development of canal-side rights-of-way for renewable energy 
production while carrying out the evaluation under this 
section.
    Subsection (c) requires written permission from land owners 
before non-Federal rights-of-way can be inventoried, forbids 
using this section as a basis for increasing power costs, and 
forbids using this section as a means to impede accessibility 
or create additional costs for entities managing the right-of-
way.

Section 303. Increasing energy efficiencies for water desalination

    This section directs the Secretary of the Interior to 
implement an aggressive research program aimed at improving the 
energy efficiency and utilizing renewable energy generated 
reverse osmosis technology. Modern water desalination and water 
recycling facilities often use reverse osmosis technology to 
remove salts and other impurities from water. A current 
drawback of this process is its high energy cost.

Section 304. Establishing a pilot program for the development of 
        strategic solar reserves on Federal lands

    This section requires the Secretary to identify and 
designate a set of areas on Federal lands managed by BLM as 
``solar reserves,'' with each area being large enough to permit 
the generation of one GW of concentrating solar power. This 
pilot program will allow for the generation of 4-25 GW of solar 
power, and require the environmental and permitting process to 
be completed as quickly as possible. Companies that are granted 
leases to establish concentrating solar power systems on the 
reserves will pay a rental fee of $300 during the 10-year 
duration of this pilot program, and fees established by the 
Secretary of the Interior for the remaining duration of the 
leases.

Section 305. OTEC regulations

    This section directs the National Oceanic and Atmospheric 
Administration to use its authority under the Ocean Thermal 
Energy Conversion (OTEC) Research, Development and 
Demonstration Act of 1980 to reissue regulations (prior 
regulations were withdrawn) providing for the licensing, 
construction and operation of OTEC facilities in U.S. waters. 
Under current law, no OTEC facilities may operate in U.S. 
waters without a license from NOAA, and there is renewed 
interest in this technology in the insular areas that may 
warrant licensing within the next few years.

Section 306. Biomass Utilization Pilot Program

    This section establishes a Biomass Utilization Pilot 
Program using technical assistance and grants to provide 
incentives for biomass utilization. The pilot program applies 
to National Forest System lands and Bureau of Land Management 
lands, wilderness areas, wilderness study areas, inventoried 
roadless areas, and components of the National Landscape 
Conservation System. The pilot program would include a variety 
of techniques that represent innovations in facilities 
operations. A study of the long-term and ecologically 
sustainable supply of biomass is required to be completed prior 
to the development of a pilot project to ensure a reliable 
investment. The highest and best use of woody biomass is also 
emphasized. Selection of the appropriate scale of a biomass 
facility is to include a collaborative process that evaluates 
existing economic, ecological and social conditions, and 
encourages rural economic development.

Section 307. Programmatic environmental impact statement

    This section directs the Secretaries of Commerce and Energy 
to prepare programmatic environmental impact statements (PEIS) 
within 18 months for the deployment of marine and hydrokinetic 
renewable energies (such as wave, tidal, and current energy), 
with one PEIS being completed for each EPA region in the United 
States.

         Title IV--Carbon Capture and Climate Change Mitigation


            SUBTITLE A--GEOLOGICAL SEQUESTRATION ASSESSMENT

Section 401. Short title

    Section 401 titles the subtitle the ``National Carbon 
Dioxide Storage Capacity Assessment Act of 2007.''

Section 402. National assessment

    This section directs the U.S. Geological Survey (USGS) to 
develop a peer-reviewed methodology for conducting a nationwide 
assessment of underground carbon dioxide storage capacity, and 
then to conduct the assessment focusing on deep saline 
formations, unmineable coal seams or oil and gas reservoirs 
capable of accommodating industrial carbon dioxide. The USGS 
will coordinate with the Department of Energy, EPA, and State 
geological surveys for various portions of the methodology and 
assessment, and will publish the methodology for external 
review and comment. USGS is given one year to complete the 
methodology and two years to complete the assessment. $30 
million is authorized to carry out this section.

            SUBTITLE B--TERRESTRIAL SEQUESTRATION ASSESSMENT

Section 421. Requirement to conduct an assessment

    This section directs the USGS to conduct an assessment of 
the potential for the terrestrial sequestration of carbon 
dioxide in different ecosystems, and to develop management 
measures or restoration activities that can increase the amount 
of carbon sequestered by each ecosystem. The USGS is directed 
to emphasize the use of native plant species in developing such 
measures or activities.

Section 422. Methodology

    This section requires the USGS to develop a methodology for 
conducting the assessment under Sec. 421 within 270 days of 
enactment of this Act.

Section 423. Completion of assessment and report

    This section requires the USGS to complete the assessment 
within two years after the publication of the final methodology 
under Sec. 422.

Section 424. Authorization of appropriations

    This section authorizes $15 million for the USGS to carry 
out this subtitle.

                  SUBTITLE C--SEQUESTRATION ACTIVITIES

Section 431. Carbon dioxide storage inventory

    This section amends EPACT Sec. 354, ``Enhanced Oil and 
Natural Gas Production Through Carbon Dioxide Injection,'' to 
require BLM to keep records of the amount of carbon dioxide 
stored during enhanced oil recovery (EOR) or enhanced gas 
recovery (EGR) activities under Federal leases.

Section 432. Framework for geological carbon sequestration on Federal 
        lands

    This section directs the Interior Department to report on a 
recommended regulatory framework for conducting geological 
carbon sequestration activities on Federal lands.

          SUBTITLE D--NATURAL RESOURCES AND WILDLIFE PROGRAMS

Chapter 1--National Resources Management and Climate Change

Section 441. Interagency Council on Climate Change

    This provision creates a Climate Change Adaptability Intra-
Governmental Panel to address the impacts of climate change on 
Federal lands, the ocean environment, and the Federal water 
infrastructure. The provision is needed due to the ad hoc basis 
that Federal resource management and development agencies are 
currently using to address climate change with little 
communication and coordination among agencies. The panel would 
include the agency heads from the Bureau of Land Management, 
National Park Service, Fish and Wildlife Service, United States 
Forest Service, Minerals Management Service, NOAA, Bureau of 
Reclamation, Council on Environmental Quality, and Office of 
Surface Mining Reclamation and Enforcement. The Panel will 
report to Congress on the common protocol they will adopt to 
address the impacts on climate change including the integration 
of climate science into management decisions.

Chapter 2--National Policy and Strategy for Wildlife

Section 451. Short title

    Section 441 titles the chapter the ``Global Warming 
Wildlife Survival Act.''

Section 452. National policy on wildlife and global warming

    This section establishes that it is the policy of the 
Federal government, in cooperation with State, tribal, and 
affected local governments, other concerned public and private 
organizations, landowners, and citizens to use all practicable 
means and measures--(1) to assist wildlife populations in 
adapting to and surviving the effects of global warming; and 
(2) to ensure the persistence and resilience of the wildlife of 
the United States as an essential part of our Nation's culture, 
landscape, and natural resources.

Section 453. Definitions

    This section defines the terms used in the chapter, 
including ``Secretary,'' ``wildlife'' and ``habitat linkages.''

Section 454. National strategy

    This section requires the Secretary of the Interior to 
promulgate a national strategy to mitigate the impacts of 
global warming on wildlife populations in the United States.

Section 455. Advisory board

    This section establishes a Scientific Advisory Board to 
provide scientific and technical advice and recommendations to 
the Secretary on the impacts of global warming on wildlife and 
its habitat, areas of habitat of particular importance for the 
conservation of wildlife populations affected by global 
warming, and strategies and mechanisms to mitigate the impacts 
of global warming on wildlife in the management of Federal 
lands and in other Federal programs for wildlife conservation. 
The provision also establishes a Global Warming and Wildlife 
Science Center within the U.S. Geological Survey to conduct and 
coordinate research on the impacts of global warming on 
wildlife and habitat, and mechanisms for adaptation or 
mitigation of such impacts.

Section 456. Authorization of appropriations

    This section authorizes new funding for Federal and State 
agencies to carry out the purposes of this chapter.

Chapter 3--State and Tribal Wildlife Grants Program

Section 461. State and Tribal Wildlife Grants Program

    This section establishes a permanent authorization for the 
State and Tribal Wildlife Grants Program consistent with the 
language included annually in the law providing appropriations 
to the Department of the Interior.

                       SUBTITLE E--OCEAN PROGRAMS

Section 471. Ocean Policy, Global Warming, and Acidification Program

    This section directs the Secretary of Commerce to develop 
and implement a national strategy to support coastal State and 
Federal agency efforts to (1) predict, plan for and mitigate 
the impacts on ocean and coastal ecosystems from global 
warming, relative sea level rise and ocean acidification; and 
(2) ensure the recovery, resiliency and health of ocean and 
coastal ecosystems.

Section 472. Planning for climate change in the coastal zone

    This section recognizes the lead role of coastal States in 
comprehensive coastal planning by amending the Coastal Zone 
Management Act to add a new coastal climate change resiliency 
grant program. The program would provide grants to States to 
(1) voluntarily develop plans to complement existing coastal 
programs to address potential climate change impacts; and (2) 
provide project grants to implement strategies developed within 
such plans. The Secretary would be required to publish 
guidelines within 180 days after the date of enactment after 
consultation with the States. To be approved by the Secretary, 
State climate change resiliency plans would need to identify 
coastal resources at risk, develop strategies to address 
threats, and specify monitoring requirements to regularly 
assess conditions. To be eligible to receive project grants to 
implement activities identified under resiliency plans, States 
would be required to have their resiliency plans approved by 
the Secretary.

Section 473. Enhancing climate change predictions

    This section implements a key recommendation of the Joint 
Ocean Commission Initiative by establishing a National 
Integrated Coastal Ocean Observation System administered by the 
National Oceanic and Atmospheric Administration as the lead 
Federal agency and coordinated within a regional framework that 
includes both Federal and non-Federal partners. The observation 
system would gather real-time and other observation data on the 
ocean environment (i.e., temperature, salinity, currents, etc.) 
to refine and enhance predictive capabilities for climate 
change and to provide other immediate societal benefits, such 
as better fisheries management and safe navigation.

                     Title V--Additional Provisions


Section 501. Sharing of penalties

    This section provides that in the event that the United 
States receives money in a civil action arising from the 
underpayment of royalties (including qui tam cases brought by 
private parties), and there is a provision of law that allows 
for those funds to be spent on coal-to-liquids programs or 
pilot projects, then those funds should also be available to be 
spent on other types of renewable energy programs on a 
competitive basis, subject to appropriations.

Section 502. Sharing of fees

    Section 224 of this Act required that funds obtained from 
the due diligence fee on non-producing coal leases be spent on 
coal-to-liquids programs or pilot projects. This section 
expands the eligible use of those funds to include different 
types of renewable energy programs, subject to appropriations.

Section 503. Oil shale community impact assistance

    This section establishes an Oil Shale Community Impact 
Assistance Fund, which would receive all bonus bids that come 
from a commercial oil shale leasing program, 25% of the rental 
payments from those leases, and 25% of the first 10 years of 
royalties from those leases. Money from this Fund would be 
distributed to counties that host commercial oil shale leases, 
subject to appropriations, and can be used by those counties 
for construction, operation, and maintenance of public 
facilities and for the provision of public services.

Section 504. Additional notice requirements

    Section 504(a) requires the Secretary of the Interior to 
notify holders of special use recreation permits (such as 
outdoor recreation companies, hosts of annual events, etc.) 
when lands that are covered by their permits are being offered 
for leasing.
    Section 504(b) requires holders of conservation easements 
on split-estate lands to be notified about lease sales, lease 
issuances, lease modifications, and approvals of applications 
for permits to drill, provided the conservation easement holder 
has notified the Secretary of the Interior about the existence 
of the easement. This subsection also requires the Secretary to 
develop a means for conservation easement holders to notify the 
Secretary about such easements.

            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 Natural Resources' oversight findings and 
recommendations are reflected in the body of this report.

                  Federal Advisory Committee Statement

    The functions of the proposed advisory committee authorized 
in the bill are not currently being nor could they be performed 
by one or more agencies, an advisory committee already in 
existence or by enlarging the mandate of an existing advisory 
committee.

                   Constitutional Authority Statement

    Article I, section 8 of the Constitution of the United 
States grants 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.
    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, any new 
budget authority included in this bill will include a 
comparison of the total estimated funding level for the 
relevant programs to the appropriate levels under current law, 
as described in the cost estimate obtained from the Director of 
the Congressional Budget Office, which follows below.
    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 promote energy policy reforms and 
public accountability, alternative energy and efficiency, and 
carbon capture and climate change mitigation.
    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 received the following cost estimate 
for this bill from the Director of the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 13, 2007.
Hon. Nick J. Rahall II,
Chairman, Committee on Natural Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
completed the enclosed cost estimate for H.R. 2337, the Energy 
Policy Reform and Revitalization Act of 2007.
    The CBO staff contacts for this estimate are Deborah Reis 
(for federal costs), Leo Lex (for the impact on state and local 
governments), and Craig Cammarata (for the impact on the 
private sector).
            Sincerely,
                                           Peter R. Orszag,
                                                          Director.
    Enclosure.

H.R. 2337--Energy Policy Reform and Revitalization Act of 2007

    Summary: H.R. 2337 would establish a framework of national 
strategies to protect natural resources affected by the 
production, distribution, and use of energy. The bill also 
would revise programs managed by the Department of the Interior 
(DOI) to promote and regulate the production and transmission 
of alternative energy (such as solar or wind power) on Federal 
lands.
    Assuming appropriation of the necessary or authorized 
amounts, CBO estimates that implementing this legislation would 
result in new discretionary spending of $2.6 billion over the 
2008-2012 period. In addition, H.R. 2337 would affect direct 
spending by establishing new fees and repealing existing 
mandatory spending programs. We estimate that the net effect of 
such changes would be a $52 million reduction in direct 
spending in 2008 and a $431 million reduction over the next 10 
years. Enacting H.R. 2337 would have no significant impact on 
revenues.
    H.R. 2337 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA); state and tribal 
governments would benefit from grants authorized by the bill.
    H.R. 2337 would impose a private-sector mandate, as defined 
in UMRA, on certain oil, gas, and coal operators that hold 
onshore federal leases by requiring those operators to pay a 
fee for land not in production. Based on information from the 
Bureau of Land Management (BLM), CBO estimates that the direct 
cost of the mandate would be about $30 million in 2008. As 
those existing leases expire, the cost of the mandate would 
decrease in subsequent years. Consequently, the cost of the 
mandate would fall below the annual threshold established by 
UMRA for private-sector mandates ($131 million in 2007, 
adjusted annually for inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 2337 is summarized in Table 1. The 
costs of this legislation fall within budget functions 270 
(energy), 300 (natural resources and environment), and 950 
(undistributed offsetting receipts).

                                    TABLE 1.--BUDGETARY EFFECTS OF H.R. 2337
----------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in millions of dollars--
                                                                    --------------------------------------------
                                                                       2008     2009     2010     2011     2012
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorizations...........................................      352      538      683      828      944
Estimated Outlays..................................................      156      330      529      709      841
                                           CHANGES IN DIRECT SPENDING

Estimated Budget Authority.........................................      -48      -49      -50      -51      -52
Estimated Outlays..................................................      -52      -54      -50      -51      -52
----------------------------------------------------------------------------------------------------------------
\1\ Changes in direct spending through 2017 are detailed in Table 3.

    Basis of estimate: CBO estimates that implementing H.R. 
2337 would result in discretionary spending of $2.6 billion 
over the 2008-2012 period, assuming the appropriation of the 
necessary funds. In addition, CBO estimates that the bill would 
decrease net direct spending by $431 million over the 2008-2017 
period. The bill also could increase revenues by establishing 
civil penalties for violations of laws regarding oil and gas 
leasing royalties, but we estimate that any increase would be 
less than $500,000 annually.
    For this estimate, CBO assumes that the legislation will be 
enacted near the beginning of fiscal year 2008 and that the 
entire amounts authorized by the bill or estimated to be 
necessary will be appropriated each year. Estimated outlays are 
based on historical spending patterns for existing or similar 
programs. The estimate is based on information provided by the 
affected Federal agencies.

Spending subject to appropriation

    H.R. 2337 would:
           Direct agencies within the Departments of 
        Commerce, Agriculture, and the Interior to establish 
        national strategies to protect natural resources from 
        the effects of global warming and other environmental 
        impacts of energy production, transmission, and use;
           Authorize or reauthorize grants to states 
        and tribes for specified natural resource programs, 
        including coastal zone management projects;
           Require new programs and regulations 
        concerning the development and transmission of energy, 
        including wind and solar power, on public lands and 
        waters; and
           Authorize appropriations for three studies 
        concerning the production of wind energy and the 
        storage of carbon.
    Estimates of discretionary spending are detailed in Table 2 
and discussed below.
    Natural Resources Strategies and Systems. H.R. 2337 would 
authorize three major programs to protect natural resources: a 
National Policy and Strategy to Protect Wildlife from the 
Effects of Global Warming; an Ocean Policy, Global Warming, and 
Acidification Program; and a National Integrated Coastal Ocean 
Observation System.
    National Policy on Wildlife and Global Warming. Section 454 
would direct DOI to create and implement a national strategy 
for assisting wildlife populations and their habitats to adapt 
to global warming. The costs of carrying out section 454 are 
uncertain because the affected federal agencies have not 
completed the necessary plans or undertaken sufficient research 
to allow detailed estimates. CBO expects that a basic program 
to develop a national strategy, design in-house research and 
conservation programs, and manage grants to states and others 
would cost $15 million in 2008 and $285 million over the 2008-
2012 period. Most of those amounts would be used by the U.S. 
Fish and Wildlife Service (USFWS) and other DOI agencies, the 
National Oceanic and Atmospheric Administration (NOAA), and the 
Forest Service. This estimate is based on the cost of 
implementing other nationwide, comprehensive programs such as 
the North American Waterfowl Conservation Plan. It does not 
include potential expenditures to acquire land for wildlife 
habitat, as would be authorized by the bill. Depending on the 
location and size of such acquisitions and the appropriation of 
funding for that purpose, the costs could be significant. 
However, it is unlikely that such costs would be incurred over 
the next five years.

                           TABLE 2.--ESTIMATED DISCRETIONARY SPENDING UNDER H.R. 2337
----------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in millions of dollars--
                                                                    --------------------------------------------
                                                                       2008     2009     2010     2011     2012
----------------------------------------------------------------------------------------------------------------
              Natural Resource Strategies and Systems

National Policy on Wildlife and Global Warming:
    Estimated Authorization Level..................................       40       60       90       80       80
    Estimated Outlays..............................................       15       30       60       90       90
Ocean Policy, Global Warming, and Acidification Program:
    Estimated Authorization Level:.................................       10       15       20       25       25
    Estimated Outlays..............................................        5       10       15       20       25
National Integrated Coastal and Ocean Observation System:
    Estimated Authorization Level..................................      100      250      350      500      600
    Estimated Outlays..............................................       50      155      260      380      485
    Subtotal:
        Estimated Authorization Level..............................      150      325      460      605      705
        Estimated Outlays..........................................       70      195      335      490      600

                 Authorizations for Grant Programs

USFWS State and Tribal Wildlife Grants:
    Estimated Authorization Level..................................       70       70       70       70       70
    Estimated Outlays..............................................        5       20       50       65       70
Coastal Zone Management Grants:
    Estimated Authorization Level..................................       61       61       61       61       61
    Estimated Outlays..............................................       20       42       61       61       61
    Subtotal:
        Estimated Authorization Level..............................      131      131      131      131      131
        Estimated Outlays..........................................       25       62      111      126      131

          Energy Development and Other Federal Activities

Increased Audits of Oil and Gas Leases:
    Estimated Authorization Level..................................       10       20       30       30       30
    Estimated Outlays..............................................        8       12       20       30       30
Bureau of Land Management Regulatory Programs:
    Estimated Authorization Level..................................       32       33       34       35       36
    Estimated Outlays..............................................       26       33       34       35       36
Water Desalination Research:
    Estimated Authorization Level..................................       10       10       10       10       10
    Estimated Outlays..............................................       10       10       10       10       10
Oil Shale Impact Assistance:
    Estimated Authorization Level..................................        0        0        0        0       25
    Estimated Outlays..............................................        0        0        0        0       25
Other Federal Activities:
    Estimated Authorization Level..................................        5        5        5        5        5
    Estimated Outlays..............................................        5        5        5        5        5
    Subtotal:
        Estimated Authorization Level..............................       57       68       79       80      106
        Estimated Outlays..........................................       49       60       69       80      106
Studies:
    Authorization Level............................................       14       14       13       12        2
    Estimated Outlays..............................................       11       13       14       13        4
Total Spending Subject to Appropriation
    Estimated Authorization Level..................................      352      538      683      828      944
    Estimated Outlays..............................................      155      330      529      709      841
----------------------------------------------------------------------------------------------------------------

    Ocean Policy, Global Warming, and Acidification Program. 
Section 471 would direct the National Oceanic and Atmospheric 
Administration (NOAA) to develop and implement a national 
strategy to respond to the effects of global warming on oceans 
and coastal areas. The costs of carrying out this program are 
also uncertain, but based on the costs of implementing programs 
of similar scope such as the coastal zone management program 
and the endangered species program, CBO estimates that carrying 
out section 471 would cost $5 million in 2008 and $75 million 
over the 2008-2012 period. We expect that most of those amounts 
would be spent for planning and research.
    National Integrated Coastal and Ocean Observation System. 
Section 473 would direct the National Ocean Research Council to 
develop and operate an integrated coastal and ocean observation 
system. The system would conduct ocean monitoring, data 
collection, analysis, public education, and research.
    Based on projections and plans developed by the U.S. 
Commission on Ocean Policy, CBO estimates that developing the 
infrastructure for a fully integrated system would require the 
expenditure of about $200 million over the next two years. This 
amount would be used to improve existing systems operated by 
federal agencies such as NOAA, establish regional observing 
systems, and develop new sensor technologies, forecasting 
models, and other system products. CBO expects that initial 
system operating costs would commence in 2010; once fully 
operational (by 2012), the system would require annual funding 
of about $600 million. In total, we estimate that outlays for 
the system would be $50 million in 2008 and $1.3 billion over 
the 2008-2012 period.
    Grant Authorizations or Reauthorizations. The bill would 
codify an existing grant program for wildlife conservation and 
would authorize new grants under the coastal zone management 
(CZM) program, as discussed below.
    State and Tribal Wildlife Grants. Section 461 would 
establish a permanent authorization of whatever amounts are 
necessary for the USFWS's wildlife conservation grant program. 
Based on the enacted funding level for such grants in recent 
years, CBO estimates that the USFWS would spend $5 million in 
2008 and $210 million over the 2008-2012 period to provide 
grants to eligible states and tribes.
    Coastal Zone Management (CZM) Grants. The bill would amend 
the Coastal Zone Management Act to authorize two new purposes 
for CZM grants--surveys of state (or adjacent federal) waters 
to determine their suitability for developing alternative 
energy resources and planning and developing strategies for 
addressing climate change. The bill would authorize the 
appropriation of whatever amounts are necessary for such 
grants. CBO estimates that providing grants to all eligible 
states for the newly authorized purposes would cost $20 million 
in 2008 and $245 million over the 2008-2012 period. For this 
estimate, we assume that each of the 35 coastal states with 
approved CZM plans would receive $750,000 for alternative 
energy surveys and $1 million for climate-change planning.
    Energy Development and Other Federal Activities. Several 
provisions of the bill would affect Federal programs carried 
out by DOI and NOAA. Major provisions are described below.
    Increased Audits of Oil and Gas Leases. Section 202 would 
require the Minerals Management Service (MMS) to perform at 
least 550 audits of oil and gas leases each fiscal year. Based 
on information provided by DOI, CBO estimates that hiring, 
training, and equipping the nearly 200 additional auditors and 
supervisors needed to perform the additional audits would cost 
$8 million in 2008 and $100 million over the 2008-2012 period, 
assuming appropriation of the necessary amounts.
    BLM Activities. CBO estimates that implementing H.R. 2337 
would increase discretionary outlays by $26 million in 2008 and 
by $162 million over the 2008-2012 period. We estimate that 
most of those amounts--$23 million in 2008 and $147 million 
over the 2008-2012 period--would be spent from appropriated 
funds needed to replace existing direct spending. Section 101 
would repeal the authority to spend, without further 
appropriation, certain receipts from rental payments on onshore 
mineral leases. Those funds are used to administer applications 
for drilling-related permits.
    Under the bill, we estimate that BLM would spend an 
additional $3 million a year to carry out various energy and 
regulatory programs, including developing guidelines on best 
practices for oil and gas development, creating an inventory of 
carbon dioxide on leased Federal lands, promulgating 
regulations to protect certain landowners from the effects of 
drilling underneath their property, and establishing a pilot 
program for developing solar energy resources on Federal lands.
    Water Desalination Research. Section 303 would require DOI 
to implement a program to research methods to use reverse 
osmosis technology for water desalination and other water-
treatment activities. Based on the level of funding provided to 
the Bureau of Reclamation for similar research in the past, CBO 
estimates that the agency would spend $8 million for the 
required research program in 2008 and $50 million over the 
2008-2012 period.
    Oil Shale Community Impact Assistance. The bill would 
establish a new fund to be credited with certain receipts from 
Federal leases for oil shale. The bill would authorize DOI to 
make payments from the fund subject to appropriation to certain 
state and local governments for use in planning, constructing, 
and maintaining public property. Based on information from DOI 
on the likely timing of federal lease sales for oil shale and 
the anticipated magnitude of receipts from such sales, CBO 
estimates that making such payments would cost $25 million in 
2012.
    Other Provisions. H.R. 2337 would require Federal agencies 
to complete numerous studies and reports, conduct pilot 
projects, and establish national guidelines and regulations for 
addressing global warming. CBO estimates that carrying out 
those requirements would cost $5 million in 2008 and about $25 
million over the 2008-2012 period.
    Studies. The bill would authorize specific appropriations 
for three programs:
     Section 232 would authorize the appropriation of 
$2 million for each of fiscal years 2008 through 2015 for 
research on the impact to wildlife of producing wind energy.
     Section 403 would authorize the appropriation of 
$30 million over the 2008-2012 period for a national assessment 
by the U.S. Geological Survey (USGS) of geological formations 
in the United States and their potential capacity for storing 
carbon dioxide.
     Section 424 would authorize the appropriation of 
$15 million over the 2008-2012 period for a USGS study to 
determine the potential for increasing carbon storage 
underground.
    Assuming appropriation of the authorized amounts, CBO 
estimates that completing those three studies would cost $11 
million in 2008 and $55 million over the 2008-2012 period.

Direct spending

    Several provisions of the bill would amend the Department 
of the Interior's authority to collect and spend offsetting 
receipts from energy and mineral development on federal lands. 
The legislation's estimated effect on direct spending over the 
next 10 years is shown in Table 3. Major provisions that would 
affect direct spending are described below.
    BLM Fees for Onshore Oil and Gas Drilling Permits. The 
Energy Policy Act of 2005 (EPAct) established a pilot program 
to better coordinate federal agencies' efforts to review and 
process applications for drilling-related permits under federal 
onshore mineral leases. For that program, EPAct authorizes BLM 
to spend, without further appropriation, one-half of rental 
payments collected from onshore lessees. Until the pilot 
program ends in 2015, EPAct prohibits BLM from charging fees to 
recover costs to administer drilling-related permits.
    H.R. 2337 would repeal BLM's authority to spend rental 
payments for the permit coordination pilot program. Based on 
anticipated levels of such payments and historical spending 
patterns for administrative activities, CBO estimates that 
reductions in direct spending would total $23 million in 2008 
and $261 million over the next 10 years. (We also estimate that 
eliminating BLM's direct spending authority would require 
additional discretionary appropriations to administer 
applications for drilling-related permits, as described earlier 
in the section on ``Spending Subject to Appropriation.'')
    H.R. 2337 also would require BLM to charge a fee of $1,700 
for all drilling-related permits. CBO expects that this 
provision would increase offsetting receipts (a credit against 
direct spending) during the 2008-2015 period when the 
prohibition on such fees would otherwise be in effect. Based on 
information from BLM about the anticipated volume of 
applications, CBO estimates the proposed fee would reduce 
direct spending by $17 million in 2008, $85 million over the 
2008-2012 period, and $136 million over the 2008-2015 period.

                                         TABLE 3.--ESTIMATED CHANGES IN DIRECT SPENDING FROM ENACTING H.R. 2337
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  By fiscal year, in millions of dollars--
                                                   -----------------------------------------------------------------------------------------------------
                                                     2008    2009    2010    2011    2012    2013    2014    2015    2016    2017   2008-2012  2008-2017
--------------------------------------------------------------------------------------------------------------------------------------------------------
              Repeal of BLM Spending
Authority of Rental Payments:
    Estimated Budget Authority....................     -29     -30     -31     -32     -33     -34     -35     -36       0       0      -155       -260
    Estimated Outlays.............................     -23     -30     -31     -32     -33     -34     -35     -36      -6       0      -149       -260
Collections of BLM Drilling Permit Fees:
    Estimated Budget Authority....................     -17     -17     -17     -17     -17     -17     -17     -17       0       0       -85       -136
    Estimated Outlays.............................     -17     -17     -17     -17     -17     -17     -17     -17       0       0       -85       -136
Changes in MMS Royalty Management:
    Estimated Budget Authority....................      -2      -2      -2      -2      -2      -2      -2      -2      -2      -2       -10        -20
    Estimated Outlays.............................      -2      -2      -2      -2      -2      -2      -2      -2      -2      -2       -10        -20

               BLM Due Diligence Fee
Offsetting Receipts:
    Estimated Budget Authority....................     -30     -30     -30     -30     -30     -30     -30     -30     -30     -30      -150       -300
    Estimated Outlays.............................     -30     -30     -30     -30     -30     -30     -30     -30     -30     -30      -150       -300
Spending of Offsetting Receipts:
    Estimated Budget Authority....................      30      30      30      30      30      30      30      30      30      30       150        300
    Estimated Outlays.............................      20      25      30      30      30      30      30      30      30      30       135        285
    Net Effect, Due-Diligence Fees:
        Estimated Budget Authority................       0       0       0       0       0       0       0       0       0       0         0          0
        Estimated Outlays.........................     -10      -5       0       0       0       0       0       0       0       0       -15        -15
Total Changes in Direct Spending:
    Estimated Budget Authority....................     -48     -49     -50     -51     -52     -53     -54     -55      -2      -2      -250       -416
    Estimated Outlays.............................     -52     -54     -50     -51     -52     -53     -54     -55      -8      -2      -259       -431
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Changes in MMS Royalty Management. CBO estimates that 
enacting H.R. 2337 would reduce direct spending by MMS by about 
$2 million a year. Most of the estimated savings would result 
from the repeal of provisions that require MMS to pay interest 
to lessees if they overpay royalties. According to MMS, such 
interest payments totaled about $10 million over the 2001-2006 
period.
    The legislation also would require most lessees to pay 
royalties in cash, rather than making in-kind payments in the 
form oil, gas, or other fuel. Under this bill, MMS could accept 
in-kind payments only when royalty oil is needed to fill the 
Strategic Petroleum Reserve. Based on information regarding 
MMS's existing royalty-in-kind (RIK) program, CBO estimates 
that this change would have a negligible effect on the 
government's net income from royalties. Although more than half 
of the royalties from the Outer Continental Shelf are currently 
paid in-kind, MMS reports indicate that the estimated 
difference in collections between the two methods has been very 
small--about two-tenths of one percent over the last three 
years--after adjusting for the direct spending for the RIK 
program's administrative costs. Whether either approach will 
yield higher or lower collections in the future is difficult to 
predict because of uncertainty regarding market conditions, 
contract terms, and the availability of information to verify 
the relative merits of each approach. Thus, CBO estimates that 
implementing this provision would have no significant net 
effect on direct spending over the 2008-2017 period.
    BLM Due Diligence Fee. Section 224 would require BLM to 
establish a fee of $1 per acre on all nonproducing onshore oil 
and gas leases within 180 days after enactment. The agency 
would be authorized to use the proceeds from the fee, without 
further appropriation, to repair damage to Federal lands caused 
by oil and gas development under the Healthy Lands Initiative 
or for certain innovative energy projects. CBO estimates that 
enacting this provision would increase offsetting receipts (a 
credit against direct spending) by $30 million a year beginning 
in 2008. We estimate that the net effect of the new fees and 
associated spending would be a net decrease in direct spending 
of $10 million in 2008, $15 million over the 2008-2012 period, 
and $15 million over the 2008-2017 period--reflecting a short 
lag between the collection of new fees and their expenditure.

Revenues

    H.R. 2337 would establish new civil penalties for 
violations of law regarding oil and gas leasing royalties. 
Enforcing the new penalty provisions of the bill could result 
in additional revenues, but CBO estimates that such increases 
would be less than $500,000 a year.
    Estimated impact on state, local, and tribal governments: 
H.R. 2337 contains no intergovernmental mandates as defined in 
UMRA. The bill would authorize grants to state, local, or 
tribal governments for a number of programs including 
assistance for surveying coastal zones and coastal waters to 
identify potential areas for energy exploration and production; 
grants for state and tribal wildlife programs; and, grants to 
coastal states for developing resiliency plans related to 
climate change. Some of those grants would require matching 
contributions, but any additional costs to state or tribal 
governments would be incurred voluntarily. State and local 
governments also could receive payments from the Oil Shale 
Community Impact Assistance Fund that would be established by 
the bill.
    Estimated impact on the private sector: H.R. 2337 would 
impose a private-sector mandate, as defined in UMRA, on certain 
oil, gas, and coal operators that hold onshore Federal leases 
by requiring those operators to pay $1 for each acre of land 
that is not in production for a given year. The fee would apply 
to new and existing onshore federal leases. Operators entering 
into a new lease after the fee has been established would do so 
voluntarily, and thus this provision would not constitute a 
mandate for those operators. However, operators with existing 
Federal leases would be required to pay a fee that is not a 
duty under their current lease agreements. The new requirement 
for those operators would be considered a mandate under UMRA. 
Based on information from BLM, CBO estimates that the direct 
cost of the mandate would be about $30 million in 2008. As 
those existing leases expire, the cost of the mandate would 
decrease in subsequent years. Consequently, the cost of the 
mandate would fall below the annual threshold established by 
UMRA for private-sector mandates ($131 million in 2007, 
adjusted annually for inflation).
    Estimate prepared by: Federal Costs: Natural resources 
programs: Deb Reis; Offshore leasing: Kathleen Gramp; Onshore 
leasing: Megan Carroll. Impact on State, Local, and Tribal 
Governments: Leo Lex. Impact on the Private Sector: Craig 
Cammarata.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                    Compliance With Public Law 104-4

    This bill contains no unfunded mandates.

                           Earmark Statement

    H.R. 2337 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9(d), 9(e) or 9(f) of rule XXI.

                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):

                       ENERGY POLICY ACT OF 2005

SECTION 1. SHORT TITLE; TABLE OF CONTENTS

  (a) * * *
  (b) Table of Contents.--The table of contents for this Act is 
as follows:
     * * * * * * *

                       TITLE II--RENEWABLE ENERGY

                     Subtitle A--General Provisions

     * * * * * * *
[Sec. 210. Grants to improve the commercial value of forest biomass for 
          electric energy, useful heat, transportation fuels, and other 
          commercial purposes.]
Sec. 210. Biomass utilization pilot program.
     * * * * * * *

                       TITLE II--RENEWABLE ENERGY

Subtitle A--General Provisions

           *       *       *       *       *       *       *


[SEC. 210. GRANTS TO IMPROVE THE COMMERCIAL VALUE OF FOREST BIOMASS FOR 
                    ELECTRIC ENERGY, USEFUL HEAT, TRANSPORTATION FUELS, 
                    AND OTHER COMMERCIAL PURPOSES.

  [(a) Definitions.--In this section:
          [(1) Biomass.--The term ``biomass'' means 
        nonmerchantable materials or precommercial thinnings 
        that are byproducts of preventive treatments, such as 
        trees, wood, brush, thinnings, chips, and slash, that 
        are removed--
                  [(A) to reduce hazardous fuels;
                  [(B) to reduce or contain disease or insect 
                infestation; or
                  [(C) to restore forest health.
          [(2) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4(e) of the Indian 
        Self-Determination and Education Assistance Act (25 
        U.S.C. 450b(e)).
          [(3) Nonmerchantable.--For purposes of subsection 
        (b), the term ``nonmerchantable'' means that portion of 
        the byproducts of preventive treatments that would not 
        otherwise be used for higher value products.
          [(4) Person.--The term ``person'' includes--
                  [(A) an individual;
                  [(B) a community (as determined by the 
                Secretary concerned);
                  [(C) an Indian tribe;
                  [(D) a small business or a corporation that 
                is incorporated in the United States; and
                  [(E) a nonprofit organization.
          [(5) Preferred community.--The term ``preferred 
        community'' means--
                  [(A) any Indian tribe;
                  [(B) any town, township, municipality, or 
                other similar unit of local government (as 
                determined by the Secretary concerned) that--
                          [(i) has a population of not more 
                        than 50,000 individuals; and
                          [(ii) the Secretary concerned, in the 
                        sole discretion of the Secretary 
                        concerned, determines contains or is 
                        located near Federal or Indian land, 
                        the condition of which is at 
                        significant risk of catastrophic 
                        wildfire, disease, or insect 
                        infestation or which suffers from 
                        disease or insect infestation; or
                  [(C) any county that--
                          [(i) is not contained within a 
                        metropolitan statistical area; and
                          [(ii) the Secretary concerned, in the 
                        sole discretion of the Secretary 
                        concerned, determines contains or is 
                        located near Federal or Indian land, 
                        the condition of which is at 
                        significant risk of catastrophic 
                        wildfire, disease, or insect 
                        infestation or which suffers from 
                        disease or insect infestation.
          [(6) Secretary concerned.--The term ``Secretary 
        concerned'' means the Secretary of Agriculture or the 
        Secretary of the Interior.
  [(b) Biomass Commercial Use Grant Program.--
          [(1) In general.--The Secretary concerned may make 
        grants to any person in a preferred community that owns 
        or operates a facility that uses biomass as a raw 
        material to produce electric energy, sensible heat, or 
        transportation fuels to offset the costs incurred to 
        purchase biomass for use by such facility.
          [(2) Grant amounts.--A grant under this subsection 
        may not exceed $20 per green ton of biomass delivered.
          [(3) Monitoring of grant recipient activities.--As a 
        condition of a grant under this subsection, the grant 
        recipient shall keep such records as the Secretary 
        concerned may require to fully and correctly disclose 
        the use of the grant funds and all transactions 
        involved in the purchase of biomass. Upon notice by a 
        representative of the Secretary concerned, the grant 
        recipient shall afford the representative reasonable 
        access to the facility that purchases or uses biomass 
        and an opportunity to examine the inventory and records 
        of the facility.
  [(c) Improved Biomass Use Grant Program.--
          [(1) In general.--The Secretary concerned may make 
        grants to persons to offset the cost of projects to 
        develop or research opportunities to improve the use 
        of, or add value to, biomass. In making such grants, 
        the Secretary concerned shall give preference to 
        persons in preferred communities.
          [(2) Selection.--The Secretary concerned shall select 
        a grant recipient under paragraph (1) after giving 
        consideration to--
                  [(A) the anticipated public benefits of the 
                project, including the potential to develop 
                thermal or electric energy resources or 
                affordable energy;
                  [(B) opportunities for the creation or 
                expansion of small businesses and micro-
                businesses;
                  [(C) the potential for new job creation;
                  [(D) the potential for the project to improve 
                efficiency or develop cleaner technologies for 
                biomass utilization; and
                  [(E) the potential for the project to reduce 
                the hazardous fuels from the areas in greatest 
                need of treatment.
          [(3) Grant amount.--A grant under this subsection may 
        not exceed $500,000.
  [(d) Authorization of Appropriations.--There are authorized 
to be appropriated $50,000,000 for fiscal year 2006 and 
$35,000,000 for each of fiscal years 2007 through 2016 to carry 
out this section.
  [(e) Report.--Not later than October 1, 2010, the Secretary 
of Agriculture, in consultation with the Secretary of the 
Interior, shall submit to the Committee on Energy and Natural 
Resources and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate, and the Committee on Resources, the 
Committee on Energy and Commerce, and the Committee on 
Agriculture of the House of Representatives, a report 
describing the results of the grant programs authorized by this 
section. The report shall include the following:
          [(1) An identification of the size, type, and use of 
        biomass by persons that receive grants under this 
        section.
          [(2) The distance between the land from which the 
        biomass was removed and the facility that used the 
        biomass.
          [(3) The economic impacts, particularly new job 
        creation, resulting from the grants to and operation of 
        the eligible operations.]

SEC. 210. BIOMASS UTILIZATION PILOT PROGRAM.

  (a) Findings.--Congress finds the following:
          (1) The supply of woody biomass for energy production 
        is directly linked to forest management planning to a 
        degree far greater than in the case of other types of 
        energy development.
          (2) As a consequence of this linkage, the process of 
        developing and evaluating appropriate technologies and 
        facilities for woody biomass energy and utilization 
        must be integrated with long-term forest management 
        planning processes, particularly in situations where 
        Federal lands dominate the forested landscape.
  (b) Biomass Definition for Federal Forest Lands.--In this 
section, with respect to organic material removed from National 
Forest System lands or from public lands administered by the 
Secretary of the Interior, the term ``biomass'' covers only 
organic material from--
          (1) ecological forest restoration;
          (2) small-diameter byproducts of hazardous fuels 
        treatments;
          (3) pre-commercial thinnings;
          (4) brush;
          (5) mill residues; and
          (6) slash.
  (c) Pilot Program.--The Secretary of Agriculture and the 
Secretary of the Interior shall establish a pilot program, to 
be known as the ``Biomass Utilization Pilot Program'', 
involving 10 different forest types on Federal lands, under 
which the Secretary concerned will provide technical assistance 
and grants to persons to support the following biomass-related 
activities:
          (1) The development of biomass utilization 
        infrastructure to support hazardous fuel reduction and 
        ecological forest restoration.
          (2) The research and implementation of integrated 
        facilities that seek to utilize woody biomass for its 
        highest and best uses, with particular emphasis on 
        projects that are linked to implementing community 
        wildfire protection plans, ecological forest 
        restoration, and economic development in rural 
        communities.
          (3) The testing of multiple technologies and 
        approaches to biomass utilization for energy, with 
        emphasis on improving energy efficiency, developing 
        thermal applications and distributed heat, biofuels, 
        and achieving cleaner emissions including through 
        combustion with other fuels, as well as other value-
        added uses.
  (d) Biomass Supply Study.--Prior to the development of any 
biomass utilization pilot projects, the Secretary concerned 
shall develop a study to determine the long-term, ecologically 
sustainable, biomass supply available in the pilot program 
area. The study shall incorporate results form coordinated 
resource offering protocol (CROP) studies. The study shall also 
analyze the long-term availability of biomass materials within 
a reasonable transportation distance. The biomass supply 
studies shall be developed through a collaborative approach, as 
evidenced by the broad involvement, analysis, and agreement of 
interested persons, including local governments, energy 
developers, conservationists, and land management agencies. The 
results of the biomass supply study shall be a basis for 
determining the project scale, as outlined in subsection (g).
  (e) Exclusion of Certain Federal Land.--The following Federal 
lands may not be included within a pilot project site:
          (1) Federal land containing old-growth forest or 
        late-successional forest, unless the Secretary 
        concerned determines that the pilot project on such 
        land is appropriate for the applicable forest type and 
        maximizes and enhances the retention of late-
        successional and large- and old-growth trees, late-
        successional and old-growth forest structure, and late-
        successional and old-growth forest composition.
          (2) Federal land on which the removal of vegetation 
        is prohibited, including components of the National 
        Wilderness Preservation System.
          (3) Wilderness Study Areas.
          (4) Inventoried roadless areas.
          (5) Components of the National Landscape Conservation 
        System.
          (6) National Monuments.
  (f) Multiple Projects.--In conducting the pilot program, the 
Secretary concerned shall include a variety of projects 
involving--
          (1) innovations in facilities of various sizes and 
        processing techniques; and
          (2) the full spectrum of woody biomass producing 
        regions of the United States.
  (g) Selection Criteria and Project Scale.--In selecting the 
projects to be conducted under the pilot program, and the 
appropriate scale of projects, the Secretary concerned shall 
consider criteria that evaluate existing economic, ecological, 
and social conditions, focusing on opportunities such as 
workforce training, job creation, ecosystem health, reducing 
energy costs, and facilitating the production of alternative 
energy fuels. The agreement on the scale of a project shall be 
reached through a collaborative approach, as evidenced by the 
broad involvement, analysis, and agreement of interested 
persons, including local governments, energy developers, 
conservationists, and land management agencies. In selecting 
the appropriate scale of projects to be conducted under the 
pilot program, the Secretary concerned shall also consider the 
results of the supply study as outlined in subsection (d).
  (h) Monitoring and Reporting Requirements.--As part of the 
pilot program, the Secretary concerned shall impose monitoring 
and reporting requirements to ensure that the ecological, 
social, and economic effects of the projects conducted under 
the pilot program are being monitored and that the 
accomplishments, challenges, and lessons of each project are 
recorded and reported.
  (i) Other Definitions.--In this section:
          (1) Highest and best use.--The term ``highest and 
        best use'', with regard to biomass, means--
                  (A) creating from raw materials those 
                products and those biomass uses that will 
                achieve the highest market value; and
                  (B) yielding a wide range of existing and 
                innovative products and biomass uses that 
                create new markets, stimulate existing ones, 
                and improve rural economies, maintains or 
                improves ecosystem integrity, while also 
                supporting traditional biomass energy 
                generation.
          (2) Pilot program.--The term ``pilot program'' means 
        the Biomass Utilization Pilot Program established 
        pursuant to this section.
          (3) Secretary concerned.--The term ``Secretary 
        concerned'' means the Secretary of Agriculture, with 
        respect to National Forest System lands, and the 
        Secretary of the Interior, with respect to public lands 
        administered by the Secretary of the Interior.
          (4) Community wildfire protection plan.--The term 
        ``community wildfire protection plan'' has the meaning 
        given that term in section 101(3) of the Healthy Forest 
        Restoration Act of 2003 (16 U.S.C. 6511(3)), which is 
        further described by the Western Governors Association 
        in the document entitled ``Preparing a Community 
        Wildfire Protection Plan: A Handbook for Wildland-
        Interface Communities'' and dated March 2004.
          (5) Federal land.--The term ``Federal land'' means--
                  (A) land of the National Forest System (as 
                defined in section 11(a) of the Forest and 
                Rangeland Renewable Resources Planning Act of 
                1974 (16 U.S.C. 1609(a)) administered by the 
                Secretary of Agriculture, acting through the 
                Chief of the Forest Service; and
                  (B) public lands (as defined in section 103 
                of the Federal Land Policy and Management Act 
                of 1976 (43 U.S.C. 1702)), the surface of which 
                is administered by the Secretary of the 
                Interior, acting through the Director of the 
                Bureau of Land Management.
          (6) Inventoried roadless area.--The term 
        ``Inventoried roadless area'' means one of the areas 
        identified in the set of inventoried roadless areas 
        maps contained in the Forest Service Roadless Areas 
        Conservation, Final Environmental Impact Statement, 
        Volume 2, dated November 2000.
  (j) Authorization of Appropriations.--There is authorized to 
be appropriated such sums as may be necessary to carry out the 
pilot program.

           *       *       *       *       *       *       *


TITLE III--OIL AND GAS

           *       *       *       *       *       *       *


Subtitle E--Production Incentives

           *       *       *       *       *       *       *


SEC. 342. PROGRAM ON OIL AND GAS ROYALTIES IN-KIND.

  (a) * * *

           *       *       *       *       *       *       *

  (d) [Benefit] Filling of Strategic Petroleum Reserve and 
benefit to the United States Required.--The Secretary may 
receive oil or gas royalties in-kind [only if] only if 
receiving such royalties in-kind is for the purpose of filling 
the Strategic Petroleum Reserve and the Secretary determines 
that receiving royalties in-kind provides benefits to the 
United States that are greater than or equal to the benefits 
that are likely to have been received had royalties been taken 
in-value.

           *       *       *       *       *       *       *

  (k) Limitation.--
          (1) In general.--No amount of the total amount of 
        royalties collected by the Secretary in a fiscal year 
        may be collected as royalties in-kind.
          (2) Exception.--Paragraph (1) shall not apply with 
        respect to royalties in-kind collected for the purpose 
        of filling the Strategic Petroleum Reserve.

           *       *       *       *       *       *       *


SEC. 354. ENHANCED OIL AND NATURAL GAS PRODUCTION THROUGH CARBON 
                    DIOXIDE INJECTION.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Records and Inventory.--The Secretary of the Interior, 
acting through the Bureau of Land Management, shall maintain 
records on and an inventory of the amount of carbon dioxide 
stored from Federal energy leases.
  [(d)] (e) Authorization of Appropriations.--There are 
authorized to be appropriated such sums as are necessary to 
carry out this section.

           *       *       *       *       *       *       *


Subtitle F--Access to Federal Lands

           *       *       *       *       *       *       *


SEC. 365. PILOT PROJECT TO IMPROVE FEDERAL PERMIT COORDINATION.

  (a) * * *

           *       *       *       *       *       *       *

  [(i) Fees.--During the period in which the Pilot Project is 
authorized, the Secretary shall not implement a rulemaking that 
would enable an increase in fees to recover additional costs 
related to processing drilling-related permit applications and 
use authorizations.]
  (i) Fee for Applications for Permits to Drill.--
          (1) Requirement to establish cost recovery fee.--The 
        Secretary of the Interior shall promulgate regulations 
        to establish a cost recovery fee for applications for a 
        permit to drill for oil and gas on Federal lands 
        administered by the Secretary.
          (2) Temporary fee.--Until such time as a fee is 
        established by such regulations, the Secretary shall 
        charge a cost recovery fee of $1,700 for each such 
        application received on or after October 1, 2007.

           *       *       *       *       *       *       *


SEC. 368. ENERGY RIGHT-OF-WAY CORRIDORS ON FEDERAL LAND.

  (a) Western States.--[Not later than 2 years after the date 
of enactment of this Act, the] The Secretary of Agriculture, 
the Secretary of Commerce, the Secretary of Defense, the 
Secretary of Energy, and the Secretary of the Interior (in this 
section referred to collectively as ``the Secretaries''), in 
consultation with the Federal Energy Regulatory Commission, 
States, tribal or local units of governments as appropriate, 
affected utility industries, and other interested persons, 
shall consult with each other and shall--
          (1)  * * *

           *       *       *       *       *       *       *

  (b) Other States.--[Not later than 4 years after the date of 
enactment of this Act, the] The Secretaries, in consultation 
with the Federal Energy Regulatory Commission, affected utility 
industries, and other interested persons, shall jointly--
          (1)  * * *

           *       *       *       *       *       *       *


SEC. 369. OIL SHALE, TAR SANDS, AND OTHER STRATEGIC UNCONVENTIONAL 
                    FUELS.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Leasing Program for Research and Development of Oil Shale 
and Tar Sands.--In accordance with section 21 of the Mineral 
Leasing Act (30 U.S.C. 241) and any other applicable law, 
except as provided in this section, [not later than 180 days 
after the date of enactment of this Act,] from land otherwise 
available for leasing, the Secretary of the Interior (referred 
to in this section as the ``Secretary'') [shall make] may make 
available for leasing such land as the Secretary considers to 
be necessary to conduct research and development activities 
with respect to technologies for the recovery of liquid fuels 
from oil shale and tar sands resources on public lands. 
Prospective public lands within each of the States of Colorado, 
Utah, and Wyoming shall be made available for such research and 
development leasing.
  (d) Programmatic Environmental Impact Statement and 
Commercial Leasing Program for Oil Shale and Tar Sands.--
          (1) Programmatic environmental impact statement.--
        [Not later than 18 months after the date of enactment 
        of this Act, in] In accordance with section 102(2)(C) 
        of the National Environmental Policy Act of 1969 (42 
        U.S.C. 4332(2)(C)), the Secretary shall complete a 
        programmatic environmental impact statement for a 
        commercial leasing program for oil shale and tar sands 
        resources on public lands, with an emphasis on the most 
        geologically prospective lands within each of the 
        States of Colorado, Utah, and Wyoming.
          (2) [Final] Proposed regulation.--Not later than [6] 
        12 months after the completion of the programmatic 
        environmental impact statement under this subsection, 
        the Secretary shall publish a [final] proposed 
        regulation establishing such program. The proposed 
        regulations developed under this paragraph are to be 
        open for public comment for no less than 180 days.
  (e) Oil Shale and Tar Sands Leasing and Development 
Strategy.--
          (1) General.--Not later than 6 months after the 
        completion of the programmatic environmental impact 
        statement under subsection (d), the Secretary shall 
        prepare an oil shale and tar sands leasing and 
        development strategy, in cooperation with the Secretary 
        of Energy and the Administrator of the Environmental 
        Protection Agency.
          (2) Purpose.--The purpose of the strategy developed 
        under this subsection is to allow for the sustainable 
        and publicly acceptable large-scale development of oil 
        shale within the Green River Formation.
          (3) Contents.--The strategy shall include plans and 
        programs for obtaining information required for 
        determining the optimal methods, locations, amount, and 
        timeframe for potential development on federal lands 
        within the Green River Formation. The strategy shall 
        also include plans for conducting critical 
        environmental and ecological research, high-payoff 
        process improvement research, an assessment of carbon 
        management options, and a large-scale demonstration of 
        carbon dioxide sequestration in the general vicinity of 
        the Piceance Basin.
  (f) Alternative Approaches.--Not later than nine months after 
the completion of the programmatic environmental impact 
statement under subsection (d), the Secretary shall, in 
cooperation with the Secretary of Energy and the Administrator 
of the Environmental Protection Agency, prepare and publish a 
report on alternative approaches to providing access to Federal 
lands for early first-of-a-kind commercial facilities for 
extracting and processing oil shale and tar sands.
  [(e)] (g) Commencement of Commercial Leasing of Oil Shale and 
Tar Sands.--Not later than 180 days after publication [of the 
final regulation required by subsection (d)] of final 
regulations issued under this section, the Secretary shall 
consult with the Governors of States with significant oil shale 
and tar sands resources on public lands, representatives of 
local governments in such States, interested Indian tribes, and 
other interested persons, to determine the level of support and 
interest in the States in the development of tar sands and oil 
shale resources. If the Secretary finds sufficient support and 
interest exists in a State, the Secretary may conduct a lease 
sale in that State under the commercial leasing program 
regulations. Evidence of interest in a lease sale under this 
subsection shall include, but not be limited to, appropriate 
areas nominated for leasing by potential lessees and other 
interested parties. Compliance with the National Environmental 
Policy Act of 1969 is required on a site-by-site basis for all 
lands proposed to be leased under the commercial leasing 
program established in this subsection.
  [(f)] (h) Diligent Development Requirements.--The Secretary 
shall, by regulation, designate work requirements and 
milestones to ensure the diligent development of the lease.
  [(g)] (i) Initial Report by the Secretary of the Interior.--
Within 90 days after the date of enactment of this Act, the 
Secretary of the Interior shall report to the Committee on 
Resources of the House of Representatives and the Committee on 
Energy and Natural Resources of the Senate on--
          (1) the interim actions necessary to--
                  (A) * * *
                  (B) conduct the first lease sales under the 
                program as required by [subsection (e)] 
                subsection (g); and

           *       *       *       *       *       *       *

  [(h)] (j) Task Force.--
          (1)  * * *

           *       *       *       *       *       *       *

  [(i)] (k) Office of Petroleum Reserves.--
          (1) * * *

           *       *       *       *       *       *       *

  [(j)] (l) Mineral Leasing Act Amendments.--
          (1) * * *

           *       *       *       *       *       *       *

  [(k)] (m) Interagency Coordination and Expeditious Review of 
Permitting Process.--
          (1) * * *

           *       *       *       *       *       *       *

  [(l)] (n) Cost-Shared Demonstration Technologies.--
          (1) * * *

           *       *       *       *       *       *       *

  [(m)] (o) National Oil Shale and Tar Sands Assessment.--
          (1) * * *

           *       *       *       *       *       *       *

  [(n)] (p) Land Exchanges.--
          (1) * * *

           *       *       *       *       *       *       *

  [(o)] (q) Royalty Rates for Leases.--The Secretary shall 
establish royalties, fees, rentals, bonus, or other payments 
for leases under this section that shall--
          (1)  * * *

           *       *       *       *       *       *       *

  [(p)] (r) Heavy Oil Technical and Economic Assessment.--The 
Secretary of Energy shall update the 1987 technical and 
economic assessment of domestic heavy oil resources that was 
prepared by the Interstate Oil and Gas Compact Commission. Such 
an update should include all of North America and cover all 
unconventional oil, including heavy oil, tar sands (oil sands), 
and oil shale.
  [(q)] (s) Procurement of Unconventional Fuels by the 
Department of Defense.--
          (1) * * *

           *       *       *       *       *       *       *

  [(r)] (t) State Water Rights.--Nothing in this section 
preempts or affects any State water law or interstate compact 
relating to water.
  [(s)] (u) Authorization of Appropriations.--There are 
authorized to be appropriated such sums as are necessary to 
carry out this section.

           *       *       *       *       *       *       *


Subtitle G--Miscellaneous

           *       *       *       *       *       *       *


SEC. 390. NEPA REVIEW.

  (a) * * *
  (b) Activities Described.--The activities referred to in 
subsection (a) are the following:
          (1) * * *

           *       *       *       *       *       *       *

          (3) Drilling an oil or gas well within a developed 
        field for which an approved land use plan or any 
        environmental document prepared pursuant to NEPA 
        analyzed such drilling as a reasonably foreseeable 
        activity, other than at such a location or site in an 
        area that is crucial wildlife habitat or a significant 
        wildlife corridor, so long as such plan or document was 
        approved within 5 years prior to the date of spudding 
        the well.

           *       *       *       *       *       *       *

  (c) Adherence to CEQ Regulations.--In administering this 
section, the Secretary of the Interior in managing the public 
lands, and the Secretary of Agriculture in managing National 
Forest System lands, shall adhere to the regulations issued by 
the Council on Environmental Quality relating to categorical 
exclusions (40 C.F.R. 1507.3 and 1508.4), as in effect on the 
date of enactment of this Act.

           *       *       *       *       *       *       *

                              ----------                              


MINERAL LEASING ACT

           *       *       *       *       *       *       *


  Sec. 17. (a) * * *

           *       *       *       *       *       *       *

  (p) Deadlines for Consideration of Applications for 
Permits.--
          (1)  * * * .--

           *       *       *       *       *       *       *

          (2) Issuance or deferral.--Not later than [30] 90 
        days after the applicant for a permit has submitted a 
        complete application, the Secretary shall--
                  (A) * * *

           *       *       *       *       *       *       *

  (q) Reclamation Requirements.--An operator producing oil or 
gas (including coalbed methane) under a lease issued pursuant 
to this Act shall--
          (1) at a minimum restore the land affected to a 
        condition capable of supporting the uses that it was 
        capable of supporting prior to any drilling, or higher 
        or better uses of which there is reasonable likelihood, 
        so long as such use or uses do not present any actual 
        or probable hazard to public health or safety or pose 
        any actual or probable threat of water diminution or 
        pollution, and the permit applicants' declared proposed 
        land use following reclamation is not impractical or 
        unreasonable, inconsistent with applicable land use 
        policies and plans, or involve unreasonable delay in 
        implementation, or is violative of Federal or State 
        law;
          (2) ensure that all reclamation efforts proceed in an 
        environmentally sound manner and as contemporaneously 
        as practicable with the oil and gas drilling 
        operations; and
          (3) submit with the plan of operations a reclamation 
        plan that describes in detail the methods and practices 
        that will be used to ensure complete and timely 
        restoration of all lands affected by oil and gas 
        operations.
  (r) Reclamation Bond or Other Financial Assurances.--An 
operator producing oil or gas (including coalbed methane) under 
a lease issued under this Act shall post a bond or other 
financial assurances that cover the reclamation of that area of 
land within the permit area upon which the operator will 
initiate and conduct oil and gas drilling and reclamation 
operations within the initial term of the permit. As succeeding 
increments of oil and gas drilling and reclamation operations 
are to be initiated and conducted within the permit area, the 
lessee shall file with the regulatory authority an additional 
bond or bonds or other financial assurances to cover such 
increments in accordance with this section. The amount of the 
bond or other financial assurances required for each bonded 
area shall depend upon the reclamation requirements of the 
approved permit; shall reflect the probable difficulty of 
reclamation giving consideration to such factors as topography, 
geology of the site, hydrology, and revegetation potential; and 
shall be determined by the Secretary. The amount of the bond or 
other financial assurances shall be sufficient to assure the 
completion of the reclamation plan if the work had to be 
performed by the Secretary in the event of forfeiture.
  (s) Regulations.--No later than one year after the date of 
the enactment of this subsection, the Secretary shall 
promulgate regulations to implement the requirements, including 
for the release of bonds or other financial assurances, of 
subsections (q) and (r).
  (t) Water Requirements.--
          (1) In general.--An operator producing oil or gas 
        (including coalbed methane) under a lease issued under 
        this Act shall--
                  (A) remediate or replace the water supply of 
                a water user who obtains all or part of such 
                user's supply of water for domestic, 
                agricultural, or other purposes from an 
                underground or surface source that has been 
                affected by contamination, diminution, or 
                interruption proximately resulting from 
                drilling operations for such production; and
                  (B) comply with all applicable requirements 
                of Federal and State law for discharge of any 
                water produced under the lease.
          (2) Water management plan.--An application for a 
        permit to drill submitted pursuant to a lease issued 
        under this Act shall be accompanied by a proposed water 
        management plan including provisions to--
                  (A) protect the quantity and quality of 
                surface and ground water systems, both on-site 
                and off-site, from adverse effects of the 
                exploration, development, and reclamation 
                processes or to provide alternative sources of 
                water if such protection cannot be assured;
                  (B) protect the rights of present users of 
                water that would be affected by operations 
                under the lease, including the discharge of any 
                water produced in connection with such 
                operations that is not reinjected; and
                  (C) identify any agreements with other 
                parties for the beneficial use of produced 
                waters and the steps that will be taken to 
                comply with State and Federal laws related to 
                such use.

           *       *       *       *       *       *       *

  Sec. 35. (a) * * *

           *       *       *       *       *       *       *

  [(c)(1) Notwithstanding the first sentence of subsection (a), 
any rentals received from leases in any State (other than the 
State of Alaska) on or after the date of enactment of this 
subsection shall be deposited in the Treasury, to be allocated 
in accordance with paragraph (2).
  [(2) Of the amounts deposited in the Treasury under paragraph 
(1)--
          [(A) 50 percent shall be paid by the Secretary of the 
        Treasury to the State within the boundaries of which 
        the leased land is located or the deposits were 
        derived; and
          [(B) 50 percent shall be deposited in a special fund 
        in the Treasury, to be known as the ``BLM Permit 
        Processing Improvement Fund'' (referred to in this 
        subsection as the ``Fund'').
  [(3) For each of fiscal years 2006 through 2015, the Fund 
shall be available to the Secretary of the Interior for 
expenditure, without further appropriation and without fiscal 
year limitation, for the coordination and processing of oil and 
gas use authorizations on onshore Federal land under the 
jurisdiction of the Pilot Project offices identified in section 
365(d) of the Energy Policy Act of 2005.]

           *       *       *       *       *       *       *

                              ----------                              


                  COASTAL ZONE MANAGEMENT ACT OF 1972

TITLE III--MANAGEMENT OF THE COASTAL ZONE

           *       *       *       *       *       *       *


OCEAN AND COASTAL ALTERNATIVE ENERGY STATE SURVEYS; ALTERNATIVE ENERGY 
                    SITE IDENTIFICATION AND PLANNING

  Sec. 306B. (a) Grants to States.--The Secretary may make 
grants to eligible coastal States to support voluntary State 
efforts to initiate and complete surveys of portions of coastal 
State waters and Federal waters adjacent to a State's coastal 
zone, in consultation with the Minerals Management Service, to 
identify potential areas suitable or unsuitable for the 
exploration, development, and production of alternative energy 
that are consistent with the enforceable policies of coastal 
management plans approved pursuant to section 306A.
  (b) Survey Elements.--Surveys developed with grants under 
this section may include, but not be limited to--
          (1) hydrographic and bathymetric surveys;
          (2) oceanographic observations and measurements of 
        the physical ocean environment, especially seismically 
        active areas;
          (3) identification and characterization of 
        significant or sensitive marine ecosystems or other 
        areas possessing important conservation, recreational, 
        ecological, historic, or aesthetic values;
          (4) surveys of existing marine uses in the outer 
        Continental Shelf and identification of potential 
        conflicts;
          (5) inventories and surveys of shore locations and 
        infrastructure capable of supporting alternative energy 
        development;
          (6) inventories and surveys of offshore locations and 
        infrastructure capable of supporting alternative energy 
        development; and
          (7) other actions as may be necessary.
  (c) Participation and Cooperation.--To the extent 
practicable, coastal States shall provide opportunity for the 
participation in surveys under this section by relevant Federal 
agencies, State agencies, local governments, regional 
organizations, port authorities, and other interested parties 
and stakeholders, public and private, that is adequate to 
develop a comprehensive survey.
  (d) Guidelines.--The Secretary shall, within 180 days after 
the date of enactment of this section and after consultation 
with the coastal States, publish guidelines for the application 
for and use of grants under this section.
  (e) Annual Grants.--For each of fiscal years 2008 through 
2011, the Secretary may make a grant to a coastal State under 
this section if the coastal State demonstrates to the 
satisfaction of the Secretary that the grant will be used to 
develop an alternative energy survey consistent with the 
requirements set forth in section 306A and this section.
  (f) Grant Amounts.--The amount of any grant under this 
section shall not exceed $750,000 for any fiscal year.
  (g) State Match.--
          (1) Before fiscal year 2010.--The Secretary shall not 
        require any State matching fund contribution for grants 
        awarded under this section for any fiscal year before 
        fiscal year 2010.
          (2) After fiscal year 2010.--The Secretary shall 
        require a coastal State to provide a matching fund 
        contribution for a grant under this section for surveys 
        of a State's coastal waters, according to--
                  (A) a 2-to-1 ratio of Federal-to-State 
                contributions for fiscal year 2010; and
                  (B) a 1-to-1 ratio of Federal-to-State 
                contributions for fiscal year 2011.
          (3) Limitation.--The Secretary shall not require any 
        matching funds for surveys of Federal waters adjacent 
        to a State's coastal zone.
  (h) Secretarial Review.--After an initial grant is made to a 
coastal State under this section, no subsequent grant may be 
made to that coastal State under this section unless the 
Secretary finds that the coastal State is satisfactorily 
developing its survey.
  (i) Limitation on Eligibility.--No coastal State is eligible 
to receive grants under this section for more than 4 fiscal 
years.
  (j) Applicability.--This section and the surveys conducted 
with assistance under this section shall not be construed to 
convey any new authority to any coastal State, or repeal or 
supersede any existing authority of any Federal agency, to 
regulate the siting, licensing, leasing, or permitting of 
alternative energy facilities in areas of the outer Continental 
Shelf under the administration of the Federal Government. 
Nothing in this section repeals or supersedes any existing 
coastal State authority pursuant to State or Federal law.
  (k) Priority.--Any area that is identified as suitable for 
potential alternative energy development under surveys 
developed with assistance under this section shall be given 
priority consideration by Federal agencies for the siting, 
licensing, leasing, or permitting of alternative energy 
facilities. Any area that is identified as unsuitable under 
surveys developed with assistance under this section shall be 
avoided by Federal agencies to the maximum extent practicable.
  (l) Assistance by the Secretary.--The Secretary shall--
          (1) under section 307(a) and to the extent 
        practicable, make available to coastal States the 
        resources and capabilities of the National Oceanic and 
        Atmospheric Administration to provide technical 
        assistance to the coastal States to develop surveys 
        under this section; and
          (2) encourage other Federal agencies with relevant 
        expertise to participate in providing technical 
        assistance under this subsection.

           *       *       *       *       *       *       *


                    AUTHORIZATION OF APPROPRIATIONS

  Sec. 318. (a) There are authorized to be appropriated to the 
Secretary, to remain available until expended--
          (1) for grants under sections 306, 306A, and 309--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) $50,500,000 for fiscal year 1999; [and]
          (2) for grants under section 315--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) $4,600,000 for fiscal year 1999[.];
          (3) for grants under section 306B such sums as are 
        necessary; and
          (4) for grants under section 320(c) and (d), such 
        sums as are necessary.

           *       *       *       *       *       *       *


                        APPEALS TO THE SECRETARY

  Sec. 319. (a) * * *
  (b) Closure of Record.--
          (1) In general.--Not later than the end of the [160-
        day] 320-day period beginning on the date of 
        publication of an initial notice under subsection (a), 
        except as provided in paragraph (3), the Secretary 
        shall immediately close the decision record and receive 
        no more filings on the appeal.

           *       *       *       *       *       *       *

          (3) Exception.--
                  (A) In general.--Subject to subparagraph (B), 
                during the [160-day] 320-day period described 
                in paragraph (1), the Secretary may stay the 
                closing of the decision record--
                          (i) * * *
                          [(ii) as the Secretary determines 
                        necessary to receive, on an expedited 
                        basis--
                                  [(I) any supplemental 
                                information specifically 
                                requested by the Secretary to 
                                complete a consistency review 
                                under this Act; or
                                  [(II) any clarifying 
                                information submitted by a 
                                party to the proceeding related 
                                to information in the 
                                consolidated record compiled by 
                                the lead Federal permitting 
                                agency.]
                          (ii) as the Secretary determines 
                        necessary to receive, on an expedited 
                        basis, any supplemental or clarifying 
                        information relevant to the 
                        consolidated record compiled by the 
                        lead Federal permitting agency to 
                        complete a consistency review under 
                        this title.
                  (B) Applicability.--The Secretary may only 
                stay the [160-day] 320-day period described in 
                paragraph (1) [for a period not to exceed 60 
                days.] once.

           *       *       *       *       *       *       *


                   CLIMATE CHANGE RESILIENCY PLANNING

  Sec. 320. (a) In General.--The Secretary shall establish 
consistent with the national policies set forth in section 303 
a coastal climate change resiliency planning and response 
program to--
          (1) provide assistance to coastal states to 
        voluntarily develop coastal climate change resiliency 
        plans pursuant to approved management programs approved 
        under section 306, to minimize contributions to climate 
        change and to prepare for and reduce the negative 
        consequences that may result from climate change in the 
        coastal zone; and
          (2) provide financial and technical assistance and 
        training to enable coastal states to implement plans 
        developed pursuant to this section through coastal 
        states' enforceable policies.
  (b) Guidelines.--Within 180 days after the date of enactment 
of this section, the Secretary, in consultation with the 
coastal states, shall issue guidelines for the implementation 
of the grant program established under subsection (c).
  (c) Climate Change Resiliency Planning Grants.--
          (1) In general.--The Secretary, subject to the 
        availability of appropriations, may make a grant to any 
        coastal state for the purpose of developing climate 
        change resiliency plans pursuant to guidelines issued 
        by the Secretary under subsection (b).
          (2) Plan content.--A plan developed with a grant 
        under this section shall include the following:
                  (A) Identification of public facilities and 
                public services, coastal resources of national 
                significance, coastal waters, energy 
                facilities, or other water uses located in the 
                coastal zone that are likely to be impacted by 
                climate change.
                  (B) Adaptive management strategies for land 
                use to respond or adapt to changing 
                environmental conditions, including strategies 
                to protect biodiversity and establish habitat 
                buffer zones, migration corridors, and climate 
                refugia.
                  (C) Requirements to initiate and maintain 
                long-term monitoring of environmental change to 
                assess coastal zone resiliency and to adjust 
                when necessary adaptive management strategies 
                and new planning guidelines to attain the 
                policies under section 303.
          (3) State hazard mitigation plans.--Plans developed 
        with a grant under this section shall be consistent 
        with State hazard mitigation plans developed under 
        State or Federal law.
          (4) Allocation.--Grants under this section shall be 
        available only to coastal states with management 
        programs approved by the Secretary under section 306 
        and shall be allocated among such coastal states in a 
        manner consistent with regulations promulgated pursuant 
        to section 306(c).
          (5) Priority.--In the awarding of grants under this 
        subsection the Secretary may give priority to any 
        coastal state that has received grant funding to 
        develop program changes pursuant to paragraphs (1), 
        (2), (3), (5), (6), (7), and (8) of section 309(a).
          (6) Technical assistance.--The Secretary may provide 
        technical assistance to a coastal state consistent with 
        section 310 to ensure the timely development of plans 
        supported by grants awarded under this subsection.
          (7) Federal approval.--In order to be eligible for a 
        grant under subsection (d), a coastal state must have 
        its plan developed under this section approved by the 
        Secretary under regulations adopted pursuant to section 
        306(e).
  (d) Coastal Resiliency Project Grants.--
          (1) In general.--The Secretary, subject to the 
        availability of appropriations, may make grants to any 
        coastal state that has a climate change resiliency plan 
        approved under subsection (c)(7), in order to support 
        projects that implement strategies contained within 
        such plans.
          (2) Program requirements.--The Secretary within 90 
        days after approval of the first plan approved under 
        subsection (c)(7), shall publish in the Federal 
        Register requirements regarding applications, 
        allocations, eligible activities, and all terms and 
        conditions for grants awarded under this subsection. No 
        less than 30 percent of the funds appropriated in any 
        fiscal year for grants under this subsection shall be 
        awarded through a merit-based competitive process.
          (3) Eligible activities.--The Secretary may award 
        grants to coastal states to implement projects in the 
        coastal zone to address stress factors in order to 
        improve coastal climate change resiliency, including 
        the following:
                  (A) Activities to address physical 
                disturbances within the coastal zone, 
                especially activities related to public 
                facilities and public services, tourism, 
                sedimentation, and other factors negatively 
                impacting coastal waters, and fisheries-
                associated habitat destruction or alteration.
                  (B) Monitoring, control, or eradication of 
                disease organisms and invasive species.
                  (C) Activities to address the loss, 
                degradation or fragmentation of wildlife 
                habitat through projects to establish marine 
                and terrestrial habitat buffers, wildlife 
                refugia or networks thereof, and preservation 
                of migratory wildlife corridors and other 
                transition zones.
                  (D) Implementation of projects to reduce, 
                mitigate, or otherwise address likely impacts 
                caused by natural hazards in the coastal zone, 
                including sea level rise, coastal inundation, 
                coastal erosion and subsidence, severe weather 
                events such as cyclonic storms, tsunamis and 
                other seismic threats, and fluctuating Great 
                Lakes water levels.
                  (E) Provide technical training and assistance 
                to local coastal policy makers to increase 
                awareness of science, management, and 
                technology information related to climate 
                change and adaptation strategies.

           *       *       *       *       *       *       *

                              ----------                              


FEDERAL OIL AND GAS ROYALTY MANAGEMENT ACT OF 1982

           *       *       *       *       *       *       *


                              DEFINITIONS

  Sec. 3. For the purposes of this Act, the term--
          (1) * * *

           *       *       *       *       *       *       *

          (20) ``commence'' means--
                  (A) with respect to a judicial proceeding, 
                the service of a complaint, petition, 
                counterclaim, cross claim, or other pleading 
                seeking affirmative relief or seeking credit or 
                recoupment[: Provided, That if the Secretary 
                commences a judicial proceeding against a 
                designee, the Secretary shall give notice of 
                that commencement to the lessee who designated 
                the designee, but the Secretary is not required 
                to give notice to other lessees who may be 
                liable pursuant to section 102(a) of this Act, 
                for the obligation that is the subject of the 
                judicial proceeding]; or
                  (B) with respect to a demand, the receipt by 
                the Secretary or a delegated State or a lessee 
                or its designee [(with written notice to the 
                lessee who designated the designee)] of the 
                demand;

           *       *       *       *       *       *       *

          (23) ``demand'' means--
                  (A) an order to pay issued by the Secretary 
                or the applicable delegated State to a lessee 
                or its designee [(with written notice to the 
                lessee who designated the designee)] that has a 
                reasonable basis to conclude that the 
                obligation in the amount of the demand is due 
                and owing; or

           *       *       *       *       *       *       *

          [(24) ``designee'' means the person designated by a 
        lessee pursuant to section 102(a) of this Act, with 
        such written designation effective on the date such 
        designation is received by the Secretary and remaining 
        in effect until the Secretary receives notice in 
        writing that the designation is modified or 
        terminated;]
          (24) ``designee'' means any person who pays, offsets, 
        or credits monies, makes adjustments, requests and 
        receives refunds, or submits reports with respect to 
        payments a lessee must make pursuant to section 102(a);
          (25) ``obligation'' means--
                  (A) * * *
                  (B) any duty of a lessee or its designee 
                [(subject to the provisions of section 102(a) 
                of this Act)]--
                          (i)  * * *

           *       *       *       *       *       *       *

          (26) ``order to pay'' means a written order issued by 
        the Secretary or the applicable delegated State to a 
        lessee or its designee [(with notice to the lessee who 
        designated the designee)] which--
                  (A) * * *

           *       *       *       *       *       *       *


TITLE I--FEDERAL ROYALTY MANAGEMENT AND ENFORCEMENT

           *       *       *       *       *       *       *


      DUTIES OF LESSEES, OPERATORS, AND MOTOR VEHICLE TRANSPORTERS

  Sec. 102.
  [(a) In order to increase receipts and achieve effective 
collections of royalty and other payments, a lessee who is 
required to make any royalty or other payment under a lease or 
under the mineral leasing laws, shall make such payments in the 
time and manner as may be specified by the Secretary or the 
applicable delegated State. A lessee may designate a person to 
make all or part of the payments due under a lease on the 
lessee's behalf and shall notify the Secretary or the 
applicable delegated State in writing of such designation, in 
which event said designated person may, in its own name, pay, 
offset or credit monies, make adjustments, request and receive 
refunds and submit reports with respect to payments required by 
the lessee. Notwithstanding any other provision of this Act to 
the contrary, a designee shall not be liable for any payment 
obligation under the lease. The person owning operating rights 
in a lease shall be primarily liable for its pro rata share of 
payment obligations under the lease. If the person owning the 
legal record title in a lease is other than the operating 
rights owner, the person owning the legal record title shall be 
secondarily liable for its pro rata share of such payment 
obligations under the lease.]
  (a) In order to increase receipts and achieve effective 
collections of royalty and other payments, a lessee who is 
required to make any royalty or other payment under a lease or 
under the mineral leasing laws, shall make such payments in the 
time and manner as may be specified by the Secretary or the 
applicable delegated State. Any person who pays, offsets or 
credits monies, makes adjustments, requests and receives 
refunds, or submits reports with respect to payments the lessee 
must make is the lessee's designee under this Act. 
Notwithstanding any other provision of this Act to the 
contrary, a designee shall be liable for any payment obligation 
of any lessee on whose behalf the designee pays royalty under 
the lease. The person owning operating rights in a lease and a 
person owning legal record title in a lease shall be liable for 
that person's pro rata share of payment obligations under the 
lease.

           *       *       *       *       *       *       *


                            [CIVIL PENALTIES

  [Sec. 109. (a) Any person who--
          [(1) after due notice of violation or after such 
        violation has been reported under subparagraph (A), 
        fails or refuses to comply with any requirements of 
        this Act or any mineral leasing law, any rule or 
        regulation thereunder, or the terms of any lease or 
        permit issued thereunder; or
          [(2) fails to permit inspection authorized in section 
        108 or fails to notify the Secretary of any assignment 
        under section 102(a)(2)
shall be liable for a penalty of up to $500 per violation for 
each day such violation continues, dating from the date of such 
notice or report. A penalty under this subsection may not be 
applied to any person who is otherwise liable for a violation 
of paragraph (1) if:
          [(A) the violation was discovered and reported to the 
        Secretary or his authorized representative by the 
        liable person and corrected within 20 days after such 
        report or such longer time as the Secretary may agree 
        to; or
          [(B) after the due notice of violation required in 
        paragraph (1) has been given to such person by the 
        Secretary or his authorized representative, such person 
        has corrected the violation within 20 days of such 
        notification or such longer time as the Secretary may 
        agree to.
  [(b) If corrective action is not taken within 40 days or a 
longer period as the Secretary may agree to, after due notice 
or the report referred to in subsection (a)(1), such person 
shall be liable for a civil penalty of not more than $5,000 per 
violation for each day such violation continues, dating from 
the date of such notice or report.
  [(c) Any person who--
          [(1) knowingly or willfully fails to make any royalty 
        payment by the date as specified by statute, 
        regulation, order or terms of the lease;
          [(2) fails or refuses to permit lawful entry, 
        inspection, or audit; or
          [(3) knowingly or willfully fails or refuses to 
        comply with subsection 102(b)(3),
shall be liable for a penalty of up to $10,000 per violation 
for each day such violation continues.
  [(d) Any person who--
          [(1) knowingly or willfully prepares, maintains, or 
        submits false, inaccurate, or misleading reports, 
        notices, affidavits, records, data, or other written 
        information;
          [(2) knowingly or willfully takes or removes, 
        transports, uses or diverts any oil or gas from any 
        lease site without having valid legal authority to do 
        so; or
          [(3) purchases, accepts, sells, transports, or 
        conveys to another, any oil or gas knowing or having 
        reason to know that such oil or gas was stolen or 
        unlawfully removed or diverted.
shall be liable for a penalty of up to $25,000 per violation 
for each day such violation continues.
  [(e) No penalty under this section shall be assessed until 
the person charged with a violation has been given the 
opportunity for a hearing on the record.
  [(f) The amount of any penalty under this section, as finally 
determined may be deducted from any sums owing by the United 
States to the person charged.
  [(g) On a case-by-case basis the Secretary may compromise or 
reduce civil penalties under this section.
  [(h) Notice under this subsection (a) shall be by personal 
service by an authorized representative of the Secretary or by 
registered mail. Any person may, in the manner prescribed by 
the Secretary, designate a representative to receive any notice 
under this subsection.
  [(i) In determining the amount of such penalty, or whether it 
should be remitted or reduced, and in what amount, the 
secretary shall state on the record the reasons for his 
determinations.
  [(j) Any person who has requested a hearing in accordance 
with subsection (e) within the time the Secretary has 
prescribed for such a hearing and who is aggrieved by a final 
order of the Secretary under this section may seek review of 
such order in the United States district court for the judicial 
district in which the violation allegedly took place. Review by 
the district court shall be only on the administrative record 
and not de novo. Such an action shall be barred unless filed 
within 90 days after the Secretary's final order.
  [(k) If any person fails to pay an assessment of a civil 
penalty under this Act--
          [(1) after the order making the assessment has become 
        a final order and if such person does not file a 
        petition for judicial review of the order in accordance 
        with subsection (j), or
          [(2) after a court in an action brought under 
        subsection (j) has entered a final judgment in favor of 
        the Secretary.
the court shall have jurisdiction to award the amount assessed 
plus interest from the date of the expiration of the 90-day 
period referred to in subsection (j). Judgment by the court 
shall include an order to pay.
  [(l) No person shall be liable for a civil penalty under 
subsection (a) or (b) for failure to pay any rental for any 
lease automatically terminated pursuant to section 31 of the 
Mineral Leasing Act of 1920.]

                            CIVIL PENALTIES

  Sec. 109. (a) Royalty Violations.--(1) No person shall--
          (A) after due notice of violation or after such 
        violation has been reported under paragraph (3)(A), 
        fail or refuse to comply with any requirement of any 
        mineral leasing law or any regulation, order, lease, or 
        permit under such a law;
          (B) fail or refuse to make any royalty payment in the 
        amount or value required by any mineral leasing law or 
        any regulation, order, or lease under such a law;
          (C) fail or refuse to make any royalty payment by the 
        date required by any mineral leasing law or any 
        regulation, order, or lease under such a law; or
          (D) prepare, maintain, or submit any false, 
        inaccurate, or misleading report, notice, affidavit, 
        record, data, or other written information or filing 
        related to royalty payments that is required under any 
        mineral leasing law or regulation issued under any 
        mineral leasing law.
  (2) A person who violates paragraph (1) shall be liable--
          (A) in the case of a violation of subparagraph (B) or 
        (C) of paragraph (1) for an amount equal to 3 times the 
        royalty the person fails or refuses to pay, plus 
        interest on that trebled amount measured from the first 
        date the royalty payment was due; and
          (B) in the case of any violation, for a civil penalty 
        of up to $25,000 per violation for each day the 
        violation continues.
  (3) Paragraph (2) shall not apply to a violation of paragraph 
(1) if the person who commits the violation, within 30 days of 
the violation--
          (A) reports the violation to the Secretary or a 
        representative designated by the Secretary; and
          (B) corrects the violation.
  (b) Lease Administration Violations.--Any person who--
          (1) fails to notify the Secretary of--
                  (A) any designation by the person under 
                section 102(a); or
                  (B) any other assignment of obligations or 
                responsibilities of the person under a lease;
          (2) fails or refuses to permit--
                  (A) lawful entry;
                  (B) inspection, including any inspection 
                authorized by section 108; or
                  (C) audit, including any failure or refusal 
                to promptly tender requested documents;
          (3) fails or refuses to comply with subsection 
        102(b)(3) (relating to notification regarding beginning 
        or resumption of production); or
          (4) fails to correctly report and timely provide 
        operations or financial records necessary for the 
        Secretary or any authorized designee of the Secretary 
        to accomplish lease management responsibilities,
shall be liable for a penalty of up to $10,000 per violation 
for each day such violation continues.
  (c) Theft.--Any person who--
          (1) knowingly or willfully takes or removes, 
        transports, uses or diverts any oil or gas from any 
        lease site without having valid legal authority to do 
        so; or
          (2) purchases, accepts, sells, transports, or conveys 
        to another, any oil or gas knowing or having reason to 
        know that such oil or gas was stolen or unlawfully 
        removed or diverted,
shall be liable for a penalty of up to $25,000 per violation 
for each day such violation continues without correction.
  (d) Repeated Violations.--(1)(A) If the Secretary or an 
authorized designee of the Secretary determines that any person 
has repeatedly violated subsection (a), (b), or (c), the 
Secretary or designee shall notify the person of the violation 
and demand compliance.
  (B) A person notified pursuant to subparagraph (A) shall 
correct the violations by not later than 30 calendar days after 
the date of the notification.
  (C) Any person who fails to comply with a demand under 
subparagraph (A) shall be liable to the United States for a 
civil penalty equal to 3 times the amount of any civil penalty 
that otherwise applies under subsection (a), (b), or (c) to the 
violations to which the demand relates.
  (2) In addition to the penalty provided in paragraph (1)(C), 
if the Secretary determines that any person has repeatedly 
violated subsection (a), (b), or (c) or any lease management 
order, the Secretary may--
          (A) shut in and cease production of any oil or gas 
        lease held by the person;
          (B) prohibit the person--
                  (i) from acquiring any additional oil or gas 
                lease, including by transfer or assignment; and
                  (ii) from being designated under section 
                102(a) to make payments due under any lease;
          (C) cancel or transfer any interest in an oil or gas 
        lease held by the person; and
          (D) collect from the person reimbursement, including 
        interest, of all costs of release, transfer, or 
        reclamation of lease sites canceled or transferred, 
        including costs of disposing of lease property, 
        facilities, and equipment.
  (e) Administrative Appeal.--(1) Any determination by the 
Secretary or a designee of the Secretary of the amount of any 
royalties or civil penalties owed under subsection (a), (b), 
(c), or (d) shall be final, unless within 15 days after 
notification by the Secretary or designee the person liable for 
such amount files an administrative appeal in accordance with 
regulations issued by the Secretary.
  (2) If a person files an administrative appeal pursuant to 
paragraph (1), the Secretary or designee shall make a final 
determination in accordance with the regulations referred to in 
paragraph (1).
  (f) Deduction.--The amount of any penalty under this section, 
as finally determined may be deducted from any sums owing by 
the United States to the person charged.
  (g) Compromise and Reduction.--On a case-by-case basis the 
Secretary may compromise or reduce civil penalties under this 
section.
  (h) Notice.--Notice under this subsection (a) shall be by 
personal service by an authorized representative of the 
Secretary or by registered mail. Any person may, in the manner 
prescribed by the Secretary, designate a representative to 
receive any notice under this subsection.
  (i) Record of Determination.--In determining the amount of 
such penalty, or whether it should be remitted or reduced, and 
in what amount, the Secretary shall state on the record the 
reasons for his determinations.
  (j) Judicial Review.--Any person who has requested a hearing 
in accordance with subsection (e) within the time the Secretary 
has prescribed for such a hearing and who is aggrieved by a 
final order of the Secretary under this section may seek review 
of such order in the United States district court for the 
judicial district in which the violation allegedly took place. 
Review by the district court shall be only on the 
administrative record and not de novo. Such an action shall be 
barred unless filed within 90 days after the Secretary's final 
order.
  (k) Failure To Pay.--If any person fails to pay an assessment 
of a civil penalty under this Act--
          (1) after the order making the assessment has become 
        a final order and if such person does not file a 
        petition for judicial review of the order in accordance 
        with subsection (j), or
          (2) after a court in an action brought under 
        subsection (j) has entered a final judgment in favor of 
        the Secretary,
the court shall have jurisdiction to award the amount assessed 
plus interest from the date of the expiration of the 90-day 
period referred to in subsection (j). Judgment by the court 
shall include an order to pay.
  (l) Relationship to Mineral Leasing Act.--No person shall be 
liable for a civil penalty under subsection (a) or (b) for 
failure to pay any rental for any lease automatically 
terminated pursuant to section 31 of the Mineral Leasing Act.
  (m) Tolling of Statutes of Limitation.--(1) Any determination 
by the Secretary or a designee of the Secretary that a person 
has violated subsection (a), (b)(2), or (b)(4) shall toll any 
applicable statute of limitations for all oil and gas leases 
held or operated by such person, until the later of--
          (A) the date on which the person corrects the 
        violation and certifies that all violations of a like 
        nature have been corrected for all of the oil and gas 
        leases held or operated by such person; or
          (B) the date a final, nonappealable order has been 
        issued by the Secretary or a court of competent 
        jurisdiction.
  (2) A person determined by the Secretary or a designee of the 
Secretary to have violated subsection (a), (b)(2), or (b)(4) 
shall maintain all records with respect to the person's oil and 
gas leases until the later of--
          (A) the date the Secretary releases the person from 
        the obligation to maintain such records; and
          (B) the expiration of the period during which the 
        records must be maintained under section 103(b).
  (n) State Sharing of Penalties.--Amounts received by the 
United States in an action brought under section 3730 of title 
31, United States Code, that arises from any underpayment of 
royalties owed to the United States under any lease shall be 
treated as royalties paid to the United States under that lease 
for purposes of the mineral leasing laws and the Land and Water 
Conservation Fund Act of 1965 (16 U.S.C. 460l--4 et seq.).

           *       *       *       *       *       *       *


         ROYALTY TERMS AND CONDITIONS, INTEREST, AND PENALTIES

  Sec. 111. (a) * * *

           *       *       *       *       *       *       *

  [(h) Interest shall be allowed and paid or credited on any 
overpayment, with such interest to accrue from the date such 
overpayment was made, at the rate obtained by applying the 
provisions of subparagraphs (A) and (B) of section 6621(a)(1) 
of the Internal Revenue Code of 1986, but determined without 
regard to the sentence following subparagraph (B) of section 
6621(a)(1). Interest which has accrued on any overpayment may 
be applied to reduce an underpayment. This subsection applies 
to overpayments made later than six months after the date of 
enactment of this subsection or September 1, 1996, whichever is 
later. Such interest shall be paid from amounts received as 
current receipts from sales, bonuses, royalties (including 
interest charges collected under this section) and rentals of 
the public lands and the Outer Continental Shelf under the 
provisions of the Mineral Leasing Act, and the Outer 
Continental Shelf Lands Act, which are not payable to a State 
or the Reclamation Fund. The portion of any such interest 
payment attributable to any amounts previously disbursed to a 
State, the Reclamation Fund, or any other recipient designated 
by law shall be deducted from the next disbursements to that 
recipient made under the applicable law. Such amounts deducted 
from subsequent disbursements shall be credited to 
miscellaneous receipts in the Treasury.
  [(i) Upon a determination by the Secretary that an excessive 
overpayment (based upon all obligations of a lessee or its 
designee for a given reporting month) was made for the sole 
purpose of receiving interest, interest shall not be paid on 
the excessive amount of such overpayment. For purposes of this 
Act, an ``excessive overpayment'' shall be the amount that any 
overpayment a lessee or its designee pays for a given reporting 
month (excluding payments for demands for obligations 
determined to be due as a result of judicial or administrative 
proceedings or agreed to be paid pursuant to settlement 
agreements) for the aggregate of all of its Federal leases 
exceeds 10 percent of the total royalties paid that month for 
those leases.]
  (j) A lessee or its designee may make a payment for the 
approximate amount of royalties (hereinafter in this subsection 
``estimated payment'') that would otherwise be due for such 
lease by the date royalties are due for that lease. When an 
estimated payment is made, actual royalties are payable at the 
end of the month following the month in which the estimated 
payment is made. If the estimated payment was less than the 
amount of actual royalties due, interest is owed on the 
underpaid amount. [If the estimated payment exceeds the actual 
royalties due, interest is owed on the overpayment.] If the 
lessee or its designee makes a payment for such actual 
royalties, the lessee or its designee may apply the estimated 
payment to future royalties. Any estimated payment may be 
adjusted, recouped, or reinstated at any time by the lessee or 
its designee.

           *       *       *       *       *       *       *


SEC. 115. SECRETARIAL AND DELEGATED STATES' ACTIONS AND LIMITATION 
                    PERIODS.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Obligation Becomes Due.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Adjustments.--In the case of an adjustment under 
        section 111A(a) (30 U.S.C. 1721a(a)) in which a 
        recoupment by the lessee results in an underpayment of 
        an obligation, for purposes of this Act the obligation 
        becomes due on the date the lessee or its designee 
        makes the adjustment.
  (d) Tolling of Limitation Period.--The running of the 
limitation period under subsection (b) shall not be suspended, 
tolled, extended, or enlarged for any obligation for any reason 
by any action, including an action by the Secretary or a 
delegated State, other than the following:
          (1) Tolling agreement.--A written agreement executed 
        during the limitation period between the Secretary or a 
        delegated State and a lessee or its designee [(with 
        notice to the lessee who designated the designee)] 
        shall toll the limitation period for the amount of time 
        during which the agreement is in effect.
          (2) Subpoena.--
                  (A) The issuance of a subpoena to a lessee or 
                its designee [(with notice to the lessee who 
                designated the designee, which notice shall not 
                constitute a subpoena to the lessee)] in 
                accordance with the provisions of subparagraph 
                (B)(i) shall toll the limitation period with 
                respect to the obligation which is the subject 
                of a subpoena only for the period beginning on 
                the date the lessee or its designee receives 
                the subpoena and ending on the date on which 
                (i) the lessee or its designee has produced 
                such subpoenaed records for the subject 
                obligation, (ii) the Secretary or a delegated 
                State receives written notice that the 
                subpoenaed records for the subject obligation 
                are not in existence or are not in the lessee's 
                or its designee's possession or control, or 
                (iii) a court has determined in a final 
                decision that such records are not required to 
                be produced, whichever occurs first.

           *       *       *       *       *       *       *


TITLE II--STATES AND INDIAN TRIBES

           *       *       *       *       *       *       *


                         SHARED CIVIL PENALTIES

  Sec. 206. An amount equal to 50 per centum of any trebled 
royalties or civil penalty collected by the Federal Government 
under this Act resulting from activities conducted by a State 
or Indian tribe pursuant to a cooperative agreement under 
section 202 or a State under a delegation under section 205, 
shall be payable to such State or tribe. [Such amount shall be 
deducted from any compensation due such State or Indian tribe 
under section 202 or such State under section 205.]

           *       *       *       *       *       *       *

                              ----------                              


WATER DESALINATION ACT OF 1996

           *       *       *       *       *       *       *


SEC. 10. RESEARCH ON REVERSE OSMOSIS TECHNOLOGY FOR WATER DESALINATION 
                    AND WATER RECYCLING.

  (a) Research Program.--The Secretary of the Interior, in 
consultation with the Secretary of Energy, shall implement a 
program to research methods for improving the energy efficiency 
of reverse osmosis technology for water desalination, water 
contamination, and water recycling.
  (b) Report.--Not later than one year after the date of the 
enactment of this Act, the Secretary of the Interior shall 
submit to Congress a report which shall include--
          (1) a review of existing and emerging technologies, 
        both domestic and international, that are likely to 
        improve energy efficiency or utilize renewable energy 
        sources at existing and future desalination and 
        recycling facilities; and
          (2) an analysis of the economic viability of energy 
        efficiency technologies.