S.Amdt. 947

1. Rewrites page 290, line 6 through page 296, line 25

   ReplacesPrinted page

   Removes page 290, line 6 through page 296, line 25 of the printed bill. See that page

   Inserted: SEC. 346. OIL SHALE AND TAR SANDS.

   Inserted: (a) Declaration of Policy.--Congress declares that it is the policy of the United States that--

   Inserted: (1) United States oil shale and tar sands are strategically important domestic resources that should be developed through methods that help reduce the growing dependence of the United States on politically and economically unstable sources of foreign oil imports;

   Inserted: (2) the development of oil shale and tar sands, for research and commercial development, should be conducted in an economically feasible and environmentally sound manner, using practices that minimize impacts; and

   Inserted: (3) development should occur, with an emphasis on sustainability, to benefit the United States while taking into account affected States and communities.

   Inserted: (b) Leasing Program for Research and Development.--

   Inserted: (1) In general.--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 1 year 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, for a period determined by the Secretary, 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 shale oil from oil shale resources on public land.

   Inserted: (2) Administration.--In carrying out this subsection, the Secretary shall provide for--

   Inserted: (A) research and development of oil shale in accordance with the laws applicable to public land;

   Inserted: (B) an adequate bond, surety, or other financial arrangement to ensure reclamation;

   Inserted: (C) appropriate value-for-value oil shale land exchanges that can provide early access to qualified oil shale developers, except that the exchanges shall be favorable to and in the overall best interests of the United States;

   Inserted: (D) consultation with affected State and local governments; and

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   Inserted: (E) such requirements as the Secretary determines to be in the public interest.

   Inserted: (c) Programmatic Environmental Impact Statement.--Not later than 18 months after the date of enactment of this Act, 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 that analyzes potential leasing for commercial development of oil shale resources on public land.

   Inserted: (d) Leasing Program.--Not later than 1 year after completion of the 5-year plan required under subsection (e), the Secretary shall establish procedures for conducting a leasing program for the commercial development of oil shale on public land.

   Inserted: (e) Oil Shale and Tar Sands Task Force.--

   Inserted: (1) Establishment.--The Secretary of Energy, in cooperation with the Secretary of the Interior, shall establish an Oil Shale and Tar Sands Task Force to develop a program to coordinate and accelerate the commercial development of oil shale and tar sands in an integrated manner.

   Inserted: (2) Composition.--The Task Force shall be composed of--

   Inserted: (A) the Secretary of Energy (or the designee of the Secretary of Energy);

   Inserted: (B) the Secretary of the Interior (or the designee of the Secretary of the Interior);

   Inserted: (C) the Secretary of Defense (or the designee of the Secretary of Defense);

   Inserted: (D) the Governors of the affected States; and

   Inserted: (E) representatives of local governments in affected areas.

   Inserted: (3) Development of a 5-year plan.--

   Inserted: (A) In general.--The Task Force shall formulate a 5-year plan to promote the development of oil shale and tar sands.

   Inserted: (B) Components.--In formulating the plan, the Task Force shall--

   Inserted: (i) identify public actions that are required to stimulate prudent development of oil shale and tar sands;

   Inserted: (ii) analyze the costs and benefits of those actions;

   Inserted: (iii) make recommendations concerning specific actions that should be taken to stimulate prudent development of oil shale and tar sands, including economic, investment, tax, technology, research and development, infrastructure, environmental, education, and socio-economic actions;

   Inserted: (iv) make recommendations concerning infrastructure (such as roads, utilities, and pipelines) required to support oil shale development in industry and communities;

   Inserted: (v) consult with representatives of industry and other stakeholders;

   Inserted: (vi) provide notice and opportunity for public comment on the plan;

   Inserted: (vii) identify oil shale and tar sands technologies that--

   Inserted: (I) are ready for pilot plant and semiworks development; and

   Inserted: (II) have a high probability of leading to advanced technology for first- or second-generation commercial production; and

   Inserted: (viii) assess the availability of water from the Green River Formation to meet the potential needs of oil shale and tar sands development.

   Inserted: (4) National program office.--The Task Force shall analyze and make recommendations regarding the need for a national program office.

   Inserted: (5) Partnership.--The Task Force shall make recommendations with respect to initiating a partnership with Alberta, Canada, for purposes of sharing information relating to the development and production of oil from tar sands.

   Inserted: (6) Reports.--

   Inserted: (A) Initial report.--Not later than 180 days after the date of enactment of this Act, the Task Force shall submit to the President and Congress a report that describes the analysis and recommendations of the Task Force and contains the 5-year plan.

   Inserted: (B) Subsequent reports.--The Secretary of Energy shall provide an annual report describing the progress in carrying out the plan for each of the 5 years following submission of the report provided for in subparagraph (A).

   Inserted: (f) Mineral Leasing Act Amendments.--Section 21(a) of the Mineral Leasing Act (30 U.S.C. 241(a)) is amended--

   Inserted: (1) by designating the first, second, and third sentences as paragraphs (1), (2), and (3), respectively; and

   Inserted: (2) in paragraph (3) (as designated by paragraph (1))--

   Inserted: (A) by striking "rate of 50 cents per acre" and inserting "rate of $2.00 per acre"; and

   Inserted: (B) in the last proviso--

   Inserted: (i) by striking "That not more than one lease shall be granted under this section to any" and inserting "That no"; and

   Inserted: (ii) by striking "except that with respect to leases for" and inserting "shall acquire or hold more than 50,000 acres of oil shale leases in any 1 State. For".

   Inserted: (g) Cost-Shared Demonstration Technologies.--

   Inserted: (1) Identification.--The Secretary of Energy shall identify technologies for the development of oil shale and tar sands that--

   Inserted: (A) are ready for demonstration at a commercially-representative scale; and

   Inserted: (B) have a high probability of leading to commercial production.

   Inserted: (2) Assistance.--For each technology identified under paragraph (1), the Secretary of Energy may provide--

   Inserted: (A) technical assistance;

   Inserted: (B) assistance in meeting environmental and regulatory requirements; and

   Inserted: (C) cost-sharing assistance in accordance with section 1002.

   Inserted: (h) Technical Assistance.--

   Inserted: (1) In general.--The Secretary of Energy may provide technical assistance for the purpose of overcoming technical challenges to the development of oil shale and tar sands technologies for application in the United States.

   Inserted: (2) Administration.--The Secretary of Energy may provide technical assistance under this section on a cost-shared basis in accordance with section 1002.

   Inserted: (i) National Oil Shale Assessment.--

   Inserted: (1) Assessment.--

   Inserted: (A) In general.--The Secretary shall carry out a national assessment of oil shale resources for the purposes of evaluating and mapping oil shale deposits, in the geographic areas described in subparagraph (B).

   Inserted: (B) Geographic areas.--The geographic areas referred to in subparagraph (A), listed in the order in which the Secretary shall assign priority, are--

   Inserted: (i) the Green River Region of the States of Colorado, Utah, and Wyoming;

   Inserted: (ii) the Devonian oil shales of the eastern United States; and

   Inserted: (iii) any remaining area in the central and western United States (including the State of Alaska) that contains oil shale, as determined by the Secretary.

   Inserted: (2) Use of state surveys and universities.--In carrying out the assessment under paragraph (1), the Secretary may request assistance from any State-administered geological survey or university.

   Inserted: (j) Procurement of Unconventional Fuel by the Department of Defense.--

   Inserted: (1) In general.--Chapter 141 of title 10, United States Code, is amended by inserting after section 2398 the following:

   Inserted: "Sec. 2398a. Procurement of fuel derived from coal, oil shale, and tar sands

   Inserted: "(a) Use of Fuel to Meet Department of Defense Needs.--The Secretary of Defense shall develop a strategy to use fuel produced from coal, oil shale, and tar sands (referred to in this section as a 'covered fuel') that are extracted by either mining or in-situ methods and refined in the United States in order to assist in meeting the fuel requirements of the Department of Defense.

   Inserted: "(b) Authority to Procure.--The Secretary of Defense may enter into 1 or more contracts or other agreements (that meet the requirements of this section) to procure a covered fuel to meet 1 or more fuel requirements of the Department of Defense.

   Inserted: "(c) Clean Fuel Requirements.--A covered fuel may be procured under subsection (b) only if the covered fuel meets such standards for clean fuel produced from domestic sources as the Secretary of Defense shall establish for purposes of this section in consultation with the Office of Strategic Fuel Analysis of the Department of Energy.

   Inserted: "(d) Multiyear Contract Authority.--Subject to applicable provisions of appropriations Acts, any contract or other agreement for the procurement of covered fuel under subsection (b) may be for 1 or more years at the election of the Secretary of Defense.

   Inserted: "(e) Price Limitations.--(1) Each contract or other agreement for the procurement of covered fuel under subsection (b) shall set forth the maximum price and minimum price to be paid for a unit of covered fuel under the contract or agreement, which prices shall be established by the Secretary of Defense at the time of entry into the contract or agreement.

   Inserted: "(2) In establishing under paragraph (1) the maximum price and minimum price to be paid for covered fuel under a contract or agreement under subsection (b), the Secretary shall take into account applicable information on world oil markets from the Department of Energy, including--

   Inserted: "(A) global prices for crude oil;

   Inserted: "(B) costs of production of the covered fuel from both conventional and unconventional sources; and

   Inserted: "(C) returns on investment in the production of the covered fuel.

   Inserted: "(f) Fuel Source Analysis.--In order to facilitate the procurement by the Department of Defense of covered fuel under subsection (b), the Secretary of Defense may carry out a comprehensive assessment of current and potential locations in the United States for the supply of covered fuel to the Department.".

   Inserted: (2) Clerical amendment.--The table of sections for chapter 141 of title 10, United States Code, is amended by inserting after the item relating to section 2398 the following:

   Inserted: "2398a. Procurement of fuel derived from coal, oil shale, and tar sands.".

   Inserted: (k) State Water Rights.--Nothing in this section preempts or affects any State water law or interstate compact relating to water.

   Inserted: (l) Authorization of Appropriations.--There are authorized to be appropriated such sums as are necessary to carry out this section.

   Original wording

   Beginning on page 290, strike line 6 and all that follows through page 296, line 25, and insert the following:

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As printed