S.Amdt. 5116

1. Replaces the bill's text with a full substitute

   Replaces the full textEverything after the enacting clause

   In S. 3268 · Placed on Calendar Senate

   SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

   (a) Short Title.--This Act may be cited as the "[struck: Stop Excessive ][inserted: American ]Energy [struck: Speculation][inserted: Production] Act of 2008".

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

   Sec. 1. Short title; table of contents.

   Sec. 2. Definition of [struck: energy commodity][inserted: Secretary].

   Struck: Sec. 3. Speculative limits and transparency of off-shore trading.

   Struck: Sec. 4. Authority of Commodity Futures Trading Commission with respect to certain traders.

   Struck: Sec. 5. Working group of international regulators.

   Struck: Sec. 6. Elimination of manipulation and excessive speculation as cause of high oil, gas, and energy prices.

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   Struck: Sec. 7. Large over-the-counter transactions.

   Struck: Sec. 8. Index traders and swap dealers.

   Struck: Sec. 9. Disaggregation of index funds and other data in energy markets.

   Struck: Sec. 10. Additional Commodity Futures Trading Commission employees for improved enforcement.

   Struck: Sec. 11. Working Group on Energy Markets.

   Struck: Sec. 12. Study of regulatory framework for energy markets.

   Struck: Sec. 13. Collection and analysis of information on energy commodities.

   Struck: Sec. 14. National natural gas market investigation.

   Struck: Sec. 15. Studies; reports.

   Struck: Sec. 16. Expedited procedures.

   Struck: SEC. 2. DEFINITION OF ENERGY COMMODITY.

   Struck: (a) Definition of Energy Commodity.--Section 1a of the Commodity Exchange Act (7 U.S.C. 1a) is amended--

   Struck: (1) by redesignating paragraphs (13) through (34) as paragraphs (14) through (35), respectively; and

   Struck: (2) by inserting after paragraph (12) the following:

   Struck: "(13) Energy commodity.--The term 'energy commodity' means--

   Struck: "(A) a petroleum product; and

   Struck: "(B) natural gas.".

   Struck: (b) Conforming Amendments.--

   Struck: (1) Section 2(c)(2)(B)(i)(II)(cc) of the Commodity Exchange Act (7 U.S.C. 2(c)(2)(B)(i)(II)(cc)) is amended--

   Struck: (A) in subitem (AA), by striking "section 1a(20)" and inserting "section 1a(21)"; and

   Struck: (B) in subitem (BB), by striking "section 1a(20)" and inserting "section 1a(21)".

   Struck: (2) Section 13106(b)(1) of the Food, Conservation, and Energy Act of 2008 is amended by striking "section 1a(32)" and inserting "section 1a".

   Struck: (3) Section 402 of the Legal Certainty for Bank Products Act of 2000 (7 U.S.C. 27) is amended--

   Struck: (A) in subsection (a)(7), by striking "section 1a(20)" and inserting "section 1a"; and

   Struck: (B) in subsection (d)--

   Struck: (i) in paragraph (1)(B), by striking "section 1a(33)" and inserting "section 1a"; and

   Struck: (ii) in paragraph (2)(D), by striking "section 1a(13)" and inserting "section 1a".

   Struck: SEC. 3. SPECULATIVE LIMITS AND TRANSPARENCY OF OFF-SHORE TRADING.

   Struck: Section 4 of the Commodity Exchange Act (7 U.S.C. 6) is amended by adding at the end the following:

   Struck: "(e) Foreign Boards of Trade.--

   Struck: "(1) In general.--The Commission may not permit a foreign board of trade to provide to the members of the foreign board of trade or other participants located in the United States, or otherwise subject to the jurisdiction of the Commission, direct access to the electronic trading and order matching system of the foreign board of trade with respect to an agreement, contract, or transaction in an energy commodity that settles against any price (including the daily or final settlement price) of 1 or more contracts listed for trading on a registered entity, unless--

   Struck: "(A) the foreign board of trade--

   Struck: "(i) makes public daily trading information regarding the agreement, contract, or transaction that is comparable to the daily trading information published by the registered entity for the 1 or more contracts against which the foreign board of trade settles; and

   Struck: "(ii) promptly notifies the Commission of any change regarding--

   Struck: "(I) the information that the foreign board of trade will make publicly available;

   Struck: "(II) the position limits, speculation limits, and position accountability provisions that the foreign board of trade will adopt and enforce;

   Struck: "(III) the position reductions required to prevent manipulation; and

   Struck: "(IV) any other area of interest expressed by the Commission to the foreign board of trade; and

   Struck: "(B) the foreign board of trade (or the foreign futures authority that oversees the foreign board of trade)--

   Struck: "(i) adopts position limits (including related hedge exemption provisions), speculation limits, or position accountability provisions for speculators for the agreement, contract, or transaction that are comparable to the position limits (including related hedge exemption provisions), speculation limits, or position accountability provisions adopted by the registered entity for the 1 or more contracts against which the foreign board of trade settles;

   Struck: "(ii) has the authority to require or direct market participants to limit, reduce, or liquidate any position the foreign board of trade (or the foreign futures authority that oversees the foreign board of trade) determines to be necessary to prevent or reduce the threat of price manipulation, excessive speculation, price distortion, or disruption of delivery or the cash settlement process; and

   Struck: "(iii) provides information to the Commission regarding the extent of legitimate and nonlegitimate hedge trading in the agreement, contract, or transaction that is comparable to the information that the Commission determines to be necessary to publish the commitments of traders report of the Commission for the 1 or more contracts against which the foreign board of trade settles.

   Struck: "(2) Existing foreign boards of trade.--Paragraph (1) shall not be effective with respect to any agreement, contract, or transaction in an energy commodity executed on a foreign board of trade to which the Commission had granted direct access permission prior to the date of enactment of this subsection until the date that is 180 days after the date of enactment of this subsection.".

   Struck: SEC. 4. AUTHORITY OF COMMODITY FUTURES TRADING COMMISSION WITH RESPECT TO CERTAIN TRADERS.

   Inserted: TITLE I--TRADITIONAL RESOURCES

   Inserted: Subtitle A--Outer Continental Shelf

   Inserted: Sec. 101. Publication of projected State lines on outer Continental Shelf.

   Inserted: Sec. 102. Production of oil and natural gas in new producing areas.

   Inserted: Sec. 103. Conforming amendment.

   Inserted: Subtitle B--Leasing Program for Land Within Coastal Plain

   Inserted: Sec. 111. Definitions.

   Inserted: Sec. 112. Leasing program for land within the Coastal Plain.

   Inserted: Sec. 113. Lease sales.

   Inserted: Sec. 114. Grant of leases by the Secretary.

   Inserted: Sec. 115. Lease terms and conditions.

   Inserted: Sec. 116. Coastal Plain environmental protection.

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   Inserted: Sec. 117. Expedited judicial review.

   Inserted: Sec. 118. Rights-of-way and easements across Coastal Plain.

   Inserted: Sec. 119. Conveyance.

   Inserted: Sec. 120. Local government impact aid and community service assistance.

   Inserted: Sec. 121. Prohibition on exports.

   Inserted: Sec. 122. Allocation of revenues.

   Inserted: Subtitle C--Permitting

   Inserted: Sec. 131. Refinery permitting process.

   Inserted: Sec. 132. Removal of additional fee for new applications for permits to drill.

   Inserted: Subtitle D--Restoration of State Revenue

   Inserted: Sec. 141. Restoration of State revenue.

   Inserted: TITLE II--ALTERNATIVE RESOURCES

   Inserted: Subtitle A--Renewable Fuel and Advanced Energy Technology

   Inserted: Sec. 201. Definition of renewable biomass.

   Inserted: Sec. 202. Advanced battery manufacturing incentive program.

   Inserted: Sec. 203. Biofuels infrastructure and additives research and development.

   Inserted: Sec. 204. Study of increased consumption of ethanol-blended gasoline with higher levels of ethanol.

   Inserted: Sec. 205. Study of diesel vehicle attributes.

   Inserted: Subtitle B--Clean Coal-Derived Fuels for Energy Security

   Inserted: Sec. 211. Short title.

   Inserted: Sec. 212. Definitions.

   Inserted: Sec. 213. Clean coal-derived fuel program.

   Inserted: Subtitle C--Oil Shale

   Inserted: Sec. 221. Removal of prohibition on final regulations for commercial leasing program for oil shale resources on public land.

   Inserted: Subtitle D--Department of Defense Facilitation of Secure Domestic Fuel Development

   Inserted: Sec. 231. Procurement and acquisition of alternative fuels.

   Inserted: Sec. 232. Multiyear contract authority for the Department of Defense for the procurement of synthetic fuels.

   Inserted: SEC. 2. DEFINITION OF SECRETARY.

   Inserted: In this Act, the term "Secretary" means the Secretary of Energy.

   Inserted: TITLE I--TRADITIONAL RESOURCES

   Inserted: Subtitle A--Outer Continental Shelf SEC. 101. PUBLICATION OF PROJECTED STATE LINES ON OUTER CONTINENTAL SHELF.

   Inserted: Section 4(a)(2)(A) of the Outer Continental Shelf Lands Act (43 U.S.C. 1333(a)(2)(A)) is amended--

   Inserted: (1) by designating the first, second, and third sentences as clause (i), (iii), and (iv), respectively;

   Inserted: (2) in clause (i) (as so designated), by inserting before the period at the end the following: "not later than 90 days after the date of enactment of the American Energy Production Act of 2008"; and

   Inserted: (3) by inserting after clause (i) (as so designated) the following:

   Inserted: "(ii)(I) The projected lines shall also be used for the purpose of preleasing and leasing activities conducted in new producing areas under section 32.

   Inserted: "(II) This clause shall not affect any property right or title to Federal submerged land on the outer Continental Shelf.

   Inserted: "(III) In carrying out this clause, the President shall consider the offshore administrative boundaries beyond State submerged lands for planning, coordination, and administrative purposes of the Department of the Interior, but may establish different boundaries.".

   Inserted: SEC. 102. PRODUCTION OF OIL AND NATURAL GAS IN NEW PRODUCING AREAS.

   Inserted: The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) is amended by adding at the end the following:

   Inserted: "SEC. 32. PRODUCTION OF OIL AND NATURAL GAS IN NEW PRODUCING AREAS.

   Inserted: "(a) Definitions.--In this section:

   Inserted: "(1) Coastal political subdivision.--The term 'coastal political subdivision' means a political subdivision of a new producing State any part of which political subdivision is--

   Inserted: "(A) within the coastal zone (as defined in section 304 of the Coastal Zone Management Act of 1972 (16 U.S.C. 1453)) of the new producing State as of the date of enactment of this section; and

   Inserted: "(B) not more than 200 nautical miles from the geographic center of any leased tract.

   Inserted: "(2) Moratorium area.--

   Inserted: "(A) In general.--The term 'moratorium area' means an area covered by sections 104 through 105 of the Department of the Interior, Environment, and Related Agencies Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 2118) (as in effect on the day before the date of enactment of this section).

   Inserted: "(B) Exclusion.--The term 'moratorium area' does not include an area located in the Gulf of Mexico.

   Inserted: "(3) New producing area.--The term 'new producing area' means any moratorium area within the offshore administrative boundaries beyond the submerged land of a State that is located greater than 50 miles from the coastline of the State.

   Inserted: "(4) New producing state.--The term 'new producing State' means a State that has, within the offshore administrative boundaries beyond the submerged land of the State, a new producing area available for oil and gas leasing under subsection (b).

   Inserted: "(5) Offshore administrative boundaries.--The term 'offshore administrative boundaries' means the administrative boundaries established by the Secretary beyond State submerged land for planning, coordination, and administrative purposes of the Department of the Interior and published in the Federal Register on January 3, 2006 (71 Fed. Reg. 127).

   Inserted: "(6) Qualified outer continental shelf revenues.--

   Inserted: "(A) In general.--The term 'qualified outer Continental Shelf revenues' means all rentals, royalties, bonus bids, and other sums due and payable to the United States from leases entered into on or after the date of enactment of this section for new producing areas.

   Inserted: "(B) Exclusions.--The term 'qualified outer Continental Shelf revenues' does not include--

   Inserted: "(i) revenues from a bond or other surety forfeited for obligations other than the collection of royalties;

   Inserted: "(ii) revenues from civil penalties;

   Inserted: "(iii) royalties taken by the Secretary in-kind and not sold;

   Inserted: "(iv) revenues generated from leases subject to section 8(g); or

   Inserted: "(v) any revenues considered qualified outer Continental Shelf revenues under section 102 of the Gulf of Mexico Energy Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109-432).

   Inserted: "(b) Petition for Leasing New Producing Areas.--

   Inserted: "(1) In general.--Beginning on the date on which the President delineates projected State lines under section 4(a)(2)(A)(ii), the Governor of a State with a new producing area within the offshore administrative boundaries beyond the submerged land of the State may submit to the Secretary a petition requesting that the Secretary make the new producing area available for oil and gas leasing.

   Inserted: "(2) Action by secretary.--Notwithstanding section 18, as soon as practicable after receipt of a petition under paragraph (1), the Secretary shall approve the petition if the Secretary determines that leasing the new producing area would not create an unreasonable risk of harm to the marine, human, or coastal environment.

   Inserted: "(c) Disposition of Qualified Outer Continental Shelf Revenues From New Producing Areas.--

   Inserted: "(1) In general.--Notwithstanding section 9 and subject to the other provisions of this subsection, for each applicable fiscal year, the Secretary of the Treasury shall deposit--

   Inserted: "(A) 50 percent of qualified outer Continental Shelf revenues in the general fund of the Treasury; and

   Inserted: "(B) 50 percent of qualified outer Continental Shelf revenues in a special account in the Treasury from which the Secretary shall disburse--

   Inserted: "(i) 75 percent to new producing States in accordance with paragraph (2); and

   Inserted: "(ii) 25 percent to provide financial assistance to States in accordance with section 6 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l -8), which shall be considered income to the Land and Water Conservation Fund for purposes of section 2 of that Act (16 U.S.C. 460l-5).

   Inserted: "(2) Allocation to new producing states and coastal political subdivisions.--

   Inserted: "(A) Allocation to new producing states.--Effective for fiscal year 2008 and each fiscal year thereafter, the amount made available under paragraph (1)(B)(i) shall be allocated to each new producing State in amounts (based on a formula established by the Secretary by regulation) proportional to the amount of qualified outer Continental Shelf revenues generated in the new producing area offshore each State.

   Inserted: "(B) Payments to coastal political subdivisions.--

   Inserted: "(i) In general.--The Secretary shall pay 20 percent of the allocable share of each new producing State, as determined under subparagraph (A), to the coastal political subdivisions of the new producing State.

   Inserted: "(ii) Allocation.--The amount paid by the Secretary to coastal political subdivisions shall be allocated to each coastal political subdivision in accordance with subparagraphs (B) and (C) of section 31(b)(4).

   Inserted: "(3) Minimum allocation.--The amount allocated to a new producing State for each fiscal year under paragraph (2) shall be at least 5 percent of the amounts available under for the fiscal year under paragraph (1)(B)(i).

   Inserted: "(4) Timing.--The amounts required to be deposited under subparagraph (B) of paragraph (1) for the applicable fiscal year shall be made available in accordance with that subparagraph during the fiscal year immediately following the applicable fiscal year.

   Inserted: "(5) Authorized uses.--

   Inserted: "(A) In general.--Subject to subparagraph (B), each new producing State and coastal political subdivision shall use all amounts received under paragraph (2) in accordance with all applicable Federal and State laws, only for 1 or more of the following purposes:

   Inserted: "(i) Projects and activities for the purposes of coastal protection, including conservation, coastal restoration, hurricane protection, and infrastructure directly affected by coastal wetland losses.

   Inserted: "(ii) Mitigation of damage to fish, wildlife, or natural resources.

   Inserted: "(iii) Implementation of a federally approved marine, coastal, or comprehensive conservation management plan.

   Inserted: "(iv) Mitigation of the impact of outer Continental Shelf activities through the funding of onshore infrastructure projects.

   Inserted: "(v) Planning assistance and the administrative costs of complying with this section.

   Inserted: "(B) Limitation.--Not more than 3 percent of amounts received by a new producing State or coastal political subdivision under paragraph (2) may be used for the purposes described in subparagraph (A)(v).

   Inserted: "(6) Administration.--Amounts made available under paragraph (1)(B) shall--

   Inserted: "(A) be made available, without further appropriation, in accordance with this subsection;

   Inserted: "(B) remain available until expended; and

   Inserted: "(C) be in addition to any amounts appropriated under--

   Inserted: "(i) other provisions of this Act;

   Inserted: "(ii) the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-4 et seq.); or

   Inserted: "(iii) any other provision of law.

   Inserted: "(d) Disposition of Qualified Outer Continental Shelf Revenues From Other Areas.--Notwithstanding section 9, for each applicable fiscal year, the terms and conditions of subsection (c) shall apply to the disposition of qualified outer Continental Shelf revenues that--

   Inserted: "(1) are derived from oil or gas leasing in an area that is not included in the current 5-year plan of the Secretary for oil or gas leasing; and

   Inserted: "(2) are not assumed in the budget of the United States Government submitted by the President under section 1105 of title 31, United States Code.".

   Inserted: SEC. 103. CONFORMING AMENDMENT.

   Inserted: Sections 104 through 105 of the Department of the Interior, Environment, and Related Agencies Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 2118) are repealed.

   Inserted: Subtitle B--Leasing Program for Land Within Coastal Plain SEC. 111. DEFINITIONS.

   Inserted: In this subtitle:

   Inserted: (1) Coastal plain.--The term "Coastal Plain" means that area identified as the "1002 Coastal Plain Area" on the map.

   Inserted: (2) Federal agreement.--The term "Federal Agreement" means the Federal Agreement and Grant Right-of-Way for the Trans-Alaska Pipeline issued on January 23, 1974, in accordance with section 28 of the Mineral Leasing Act (30 U.S.C. 185) and the Trans-Alaska Pipeline Authorization Act (43 U.S.C. 1651 et seq.).

   Inserted: (3) Final statement.--The term "Final Statement" means the final legislative environmental impact statement on the Coastal Plain, dated April 1987, and prepared pursuant to section 1002 of the Alaska National Interest Lands Conservation Act (16 U.S.C. 3142) and section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)).

   Inserted: (4) Map.--The term "map" means the map entitled "Arctic National Wildlife Refuge", dated September 2005, and prepared by the United States Geological Survey.

   Inserted: (5) Secretary.--The term "Secretary" means the Secretary of the Interior (or the designee of the Secretary), acting through the Director of the Bureau of Land Management in consultation with the Director of the United States Fish and Wildlife Service and in coordination with a State coordinator appointed by the Governor of the State of Alaska.

   Inserted: SEC. 112. LEASING PROGRAM FOR LAND WITHIN THE COASTAL PLAIN.

   (a) In General.--

   Struck: (1) Restriction of futures trading to contract markets or derivatives transaction execution facilities.--Section 4(b) of the Commodity Exchange Act (7 U.S.C. 6(b)) is amended by inserting after the first sentence the following: "The Commission may adopt rules and regulations requiring the maintenance of books and records by any person that is located within the United States (including the territories and possessions of the United States) or that enters trades directly into the trade matching system of a foreign board of trade from the United States (including the territories and possessions of the United States)." (2) Excessive speculation as a burden on interstate commerce.--Section 4a of the Commodity Exchange Act (7 U.S.C. 6a) is amended--

   Struck: (A) in subsection (e), in the second sentence--

   Struck: (i) by striking "this Act for any person" and inserting "this Act for (1) any person"; and

   Struck: (ii) by inserting after "to section 5c(c)(1)" the following: ", and (2) any person that is located within the United States (including the territories and possessions of the United States) or that enters trades directly into the trade matching system of a foreign board of trade from the United States (including the territories and possessions of the United States) to violate any bylaw, rule, regulation, or resolution of any foreign board of trade or foreign futures authority fixing limits on the amount of trading that may be carried out or positions that may be held under any contract of sale of an energy commodity for future delivery or under any option on such contract or energy commodity, that settles against any price (including the daily or final settlement price) of 1 or more contracts listed for trading on a registered entity"; and

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   Struck: (B) by adding at the end the following:

   Struck: "(f) Consultation.--Before taking any action under subsection (e), the Commission shall consult with the appropriate--

   Struck: "(1) foreign board of trade; and

   Struck: "(2) foreign futures authority.".

   Struck: (3) Violations.--Section 9(a) of the Commodity Exchange Act (7 U.S.C. 13(a)) is amended by inserting "(including any person trading on a foreign board of trade)" after "Any person" each place it appears.

   Struck: (4) Effect.--No amendment made by this subsection limits any of the otherwise applicable authorities of the Commodity Futures Trading Commission.

   Struck: SEC. 5. WORKING GROUP OF INTERNATIONAL REGULATORS.

   Struck: Section 4a of the Commodity Exchange Act (7 U.S.C. 6a) (as amended by section 4(a)(2)(B)) is amended by adding at the end the following:

   Struck: "(g) Working Group of International Regulators.--Not later than 90 days after the date of enactment of this subsection, the Commission shall convene a working group of international regulators to develop uniform international reporting and regulatory standards to ensure the protection of the energy futures markets from nonlegitimate hedge trading, excessive speculation, manipulation, location shopping, and lowest common dominator regulation, each of which pose systemic risks to all energy futures markets, countries, and consumers.".

   Struck: SEC. 6. ELIMINATION OF MANIPULATION AND EXCESSIVE SPECULATION AS CAUSE OF HIGH OIL, GAS, AND ENERGY PRICES.

   Struck: Section 4a of the Commodity Exchange Act (7 U.S.C. 6a) (as amended by section 5) is amended by adding at the end the following:

   Struck: "(h) Elimination of Excessive Speculation and Nonlegitimate Hedge Trading as a Cause of High Oil, Gas, and Energy Prices.--

   Struck: "(1) Definition of legitimate hedge trading.--

   Struck: "(A) In general.--The term 'legitimate hedge trading' means the conduct of trading that involves transactions by commercial producers and purchasers of actual physical petroleum and energy commodities for future delivery and the direct counterparties to such trades (regardless of whether the counterparties are commercial producers or purchasers).

   Struck: "(B) Inclusion.--To the extent a commercial producer or purchaser of an actual physical energy commodity for future delivery trades with an intermediary (referred to in this subparagraph as an 'initial trade'), each subsequent trade by the intermediary arising solely due to the initial trade and that directly results from such initial trade (referred to in this subparagraph as a 'follow-on trade') shall be considered to be the conduct of 'legitimate hedge trading' if each follow-on trade executed by the intermediary is--

   Struck: "(i) done proximate to the initial trade; and

   Struck: "(ii) in the aggregate, economically the same in size and substance as the initial trade.

   Struck: "(2) Identification of legitimate hedge trading.--In carrying out this Act, the Commission shall distinguish between--

   Struck: "(A) legitimate hedge trading; and

   Struck: "(B) all other trading in energy commodities.

   Struck: "(3) Type of trading.--Notwithstanding any other provision of this Act, the Commission shall modify (or delegate any appropriate entity to modify) such definitions, classifications, and data collection under this Act as are necessary to ensure that all direct and indirect parties and counterparties to all trades in the energy commodities market are clearly identified for all purposes as engaging in--

   Struck: "(A) legitimate hedge trading; or

   Struck: "(B) any other type of trading.

   Struck: "(4) Elimination of excessive speculation.--

   Struck: "(A) In general.--Notwithstanding any other provision of this Act, the Commission shall review all regulations, rules, exemptions, exclusions, guidance, no action letters, orders, and other actions taken by or on behalf of the Commission (including any action or inaction taken pursuant to delegated authority by an exchange, self-regulatory organization, or any other entity) regarding all energy futures market participants or market activity (referred to in this subsection individually as a 'prior action') to ensure that--

   Struck: "(i) legitimate hedge trading is protected and promoted; and

   Struck: "(ii) excessive speculation is eliminated.

   Struck: "(B) Prior action.--

   Struck: "(i) In general.--The Commission shall consider modifying or revoking the application after the date of enactment of this subsection of any prior action taken by the Commission (including any prior action taken pursuant to delegated authority by any other entity) with respect to any trade on any market, exchange, foreign board of trade, swap or swap transaction, index or index market participant or trade, hedge fund, pension fund, and any other transaction, trade, trader, or petroleum or energy futures market activity unless the Commission affirmatively determines that such prior action will protect and promote legitimate hedge trading and does not permit or encourage excessive speculation.

   Struck: "(ii) Revocation.--In carrying out this subparagraph, the Commission shall consider modifying or revoking the results of each prior action that, in whole or in part, has the direct or indirect affect of limiting, reducing, or eliminating the filing of any report or data regarding any direct or indirect trade or trader, including the filing of large trader reports.

   Struck: "(C) Speculative position limits applicable to nonlegitimate hedge trading in energy commodities and derivatives.--

   Struck: "(i) Speculative position limits.--

   Struck: "(I) In general.--Not later than 30 days after the date of enactment of this subsection, the Commission shall impose, by rule, regulation, or order, speculative position limits on trading that is not legitimate hedge trading.

   Struck: "(II) Application.--The Commission shall apply the limits imposed under subclause (I) to any person who executes accounts, agreements, or transactions involving an energy commodity for the own account of the person and to any person for whom an agent in fact or substance executes accounts, agreements, or transactions involving an energy commodity, on a registered entity or in covered over- the-counter trading.

   Struck: "(ii) Advisory group.--

   Struck: "(I) In general.--Not later than 30 days after the date of enactment of this subsection, the Commission shall convene an advisory group primarily consisting of commercial producers and purchasers of actual physical energy commodities for future delivery.

   Struck: "(II) Recommendations.--Not later than 60 days after the date on which the advisory group is convened under subclause (I), and annually thereafter, the advisory group shall submit to the Commission recommendations regarding an appropriate level for position limits--

   Struck: "(aa) that are designed for traders or entities that are not legitimate hedge traders; and

   Struck: "(bb) to replace the position limits imposed by the Commission under clause (i)(I).

   Struck: "(III) Applicability of faca.--The advisory group shall be subject to the Federal Advisory Committee Act (5 U.S.C. App.).

   Struck: "(iii) Review of recommendations.--Not later than 270 days after the date of enactment of this subsection, the Commission shall--

   Struck: "(I) analyze and review the recommendations submitted by the advisory group under clause (ii)(II); and

   Struck: "(II) submit to the appropriate committees of Congress a report describing each recommendation (including each modification to the statutory authority of the Commission that the Commission determines to be necessary to effectuate each recommendation).

   Struck: "(iv) Rulemaking.--

   Struck: "(I) In general.--Not later than 18 months after the date of enactment of this subsection, the Commission shall promulgate a final rule that establishes speculative position limits--

   Struck: "(aa) for any person engaged in nonlegitimate hedge trading of an energy commodity; and

   Struck: "(bb) that are consistent with this Act.

   Struck: "(II) Effective date.--The final rule described in subclause (I) shall take effect on the date that is 30 days after the date on which the Commission promulgates the final rule.

   Struck: "(v) Development of methodology.--

   Struck: "(I) In general.--Not later than 180 days after the date of enactment of this subsection, the Commission shall propose a methodology to determine and set aggregate speculative position limits at the control entity level for all nonlegitimate traders of energy commodities--

   Struck: "(aa) on designated contract markets;

   Struck: "(bb) on derivatives transaction execution facilities; and

   Struck: "(cc) in over-the-counter commodity derivatives.

   Struck: "(II) Report.--Not later than 180 days after the date of enactment of this subsection, the Commission shall submit to the appropriate committees of Congress a report that contains--

   Struck: "(aa) any recommendations regarding any additional statutory authority that the Commission determines to be necessary for the imposition of the speculative position limits described in subclause (I); and

   Struck: "(bb) a description of the resources that the Commission considers to be necessary to implement the speculative position limits.

   Struck: "(D) Maximum level of speculative position limits.--

   Struck: "(i) In general.--In establishing speculative position limits under this section (including subparagraph (C)(iv)), the Commission shall set the limits at the maximum level practicable--

   Struck: "(I) to ensure sufficient market liquidity for the conduct of legitimate hedging activities;

   Struck: "(II) to ensure that price discovery is not disrupted;

   Struck: "(III) to protect and promote legitimate hedge trading;

   Struck: "(IV) to minimize nonlegitimate hedge trading; and

   Struck: "(V) to eliminate excess speculation.

   Struck: "(ii) Effect.--

   Struck: "(I) In general.--Nothing in this subparagraph modifies the spot month position limitation of 3,000 contracts that is designed to prevent a corner or squeeze at the delivery date.

   Struck: "(II) Commission action.--If the Commission sets position limits under clause (i) that are different from the spot month position limit described in subclause (I), the Commission shall include in the report required under subparagraph (C)(v)(II) an analysis describing the reasons for the position limits.".

   Struck: SEC. 7. LARGE OVER-THE-COUNTER TRANSACTIONS.

   Struck: Section 2 of the Commodity Exchange Act (7 U.S.C. 2) is amended by adding at the end the following:

   Struck: "(j) Over-the-Counter Transactions.--

   Struck: "(1) Definitions.--In this subsection:

   Struck: "(A) Covered over-the-counter transaction.--The term 'covered over-the-counter transaction' means an over-the-counter transaction the reporting of which is required by the Commission as the result of a determination made under paragraph (3)(C).

   Struck: "(B) Covered person.--The term 'covered person' means a person that enters into a covered over-the- counter transaction.

   Struck: "(C) Major market disturbance.--The term 'major market disturbance' means any disturbance in a commodity market that disrupts the liquidity and price discovery function of that market from accurately reflecting the forces of supply and demand for a commodity, including--

   Struck: "(i) a threatened or actual market manipulation or corner;

   Struck: "(ii) excessive speculation;

   Struck: "(iii) nonlegitimate hedge trading; and

   Struck: "(iv) any action of the United States or a foreign government that affects a commodity.

   Struck: "(D) Market disturbance.--The term 'market disturbance' shall be interpreted in accordance with section 8a(9)).

   Struck: "(E) Over-the-counter transaction.--The term 'over-the-counter transaction' means a contract, agreement, or transaction in a petroleum or energy commodity that is--

   Struck: "(i) entered into only between persons that are eligible contract participants at the time the persons enter into the agreement, contract, or transaction;

   Struck: "(ii) not entered into on a trading facility; and

   Struck: "(iii) not a sale of any cash commodity for deferred shipment or delivery.

   Struck: "(2) Commission oversight authority.--

   Struck: "(A) In general.--In the case of a major market disturbance, as determined by the Commission, the Commission may require any trader subject to the reporting requirements described in paragraph (3) to take such action as the Commission considers to be necessary to maintain or restore orderly trading in any contract listed for trading on a registered entity, including--

   Struck: "(i) the liquidation of any over-the- counter transaction; and

   Struck: "(ii) the fixing of any limit that may apply to a market position involving any over- the-counter transaction acquired in good faith before the date of the determination of the Commission.

   Struck: "(B) Judicial review.--Any action taken by the Commission under subparagraph (A) shall be subject to judicial review carried out in accordance with section 8a(9).

   Struck: "(3) Reporting; recordkeeping.--

   Struck: "(A) In general.--The Commission shall require each covered person to submit to the Commission a report--

   Struck: "(i) at such time and in such manner as the Commission determines to be appropriate; and

   Struck: "(ii) containing the information required under subparagraph (B) to assist the Commission in detecting and preventing potential price manipulation of, or excessive speculation in, any contract listed for trading on a registered entity.

   Struck: "(B) Contents of report.--A report required under subparagraph (A) shall contain--

   Struck: "(i) information describing large trading positions of the covered person obtained through 1 or more over-the-counter transactions that involve--

   Struck: "(I) substantial quantities of a commodity in the cash market; or

   Struck: "(II) substantial positions, investments, or trades in agreements or contracts relating to the commodity;

   Struck: "(ii) any other information relating to each covered over-the-counter transaction carried out by the covered person that the Commission determines to be necessary to accomplish the purposes described in subparagraph (A); and

   Struck: "(iii) information distinguishing legitimate hedge trading from nonlegitimate hedge trading.

   Struck: "(C) Determination of covered over-the-counter transactions.--

   Struck: "(i) In general.--The Commission shall identify each large over-the-counter transaction or class of large over-the-counter transactions the reporting of which the Commission determines to be appropriate to assist the Commission in detecting and preventing potential price manipulation of, or excessive speculation in, any contract listed for trading on a registered entity.

   Struck: "(ii) Mandatory factors for determinations.--

   Struck: "(I) In general.--In carrying out a determination under clause (i), the Commission shall consider the extent to which each factor described in subclause (II) applies.

   Struck: "(II) Factors.--The factors required for carrying out a determination under clause (i) include whether--

   Struck: "(aa) a standardized agreement is used to execute the over-the-counter transaction;

   Struck: "(bb) the over-the-counter transaction settles against any price (including the daily or final settlement price) of 1 or more contracts listed for trading on a registered entity;

   Struck: "(cc) the price of the over-the-counter transaction is reported to a third party, published, or otherwise disseminated;

   Struck: "(dd) the price of the over-the-counter transaction is referenced in any other transaction;

   Struck: "(ee) there is a significant volume of the over- the-counter transaction or class of over-the-counter transactions; and

   Struck: "(ff) there is any other factor that the Commission determines to be appropriate.

   Struck: "(D) Recordkeeping.--The Commission, by rule, shall require each covered person--

   Struck: "(i) in accordance with section 4i, to maintain such records as directed by the Commission for a period of 5 years, or longer, if directed by the Commission; and

   Struck: "(ii) to provide such records upon request to the Commission or the Department of Justice.

   Struck: "(4) Protection of proprietary information.--In carrying out this subsection, the Commission may not--

   Struck: "(A) require the real-time publication of any proprietary information;

   Struck: "(B) prohibit the commercial sale or licensing of any real-time proprietary information; and

   Struck: "(C) except as provided in section 8, publicly disclose any information relating to any market position, business transaction, trade secret, or name of any customer of a covered person.

   Struck: "(5) Applicability.--Notwithstanding subsections (g) and (h), and any exemption issued by the Commission for any energy commodity, each over-the-counter transaction shall be subject to this subsection.

   Struck: "(6) Savings clause.--Nothing in this subsection modifies or alters--

   Struck: "(A) the guidance of the Commission; or

   Struck: "(B) any applicable requirements with respect the disclosure of proprietary information.".

   Struck: SEC. 8. INDEX TRADERS AND SWAP DEALERS.

   Struck: Section 4 of the Commodity Exchange Act (7 U.S.C. 6) (as amended by section 3) is amended by adding at the end the following:

   Struck: "(f) Index Traders and Swap Dealers.--Not later than 60 days after the date of enactment of this subsection, the Commission shall--

   Struck: "(1) routinely require detailed reporting from index traders and swap dealers in markets under the jurisdiction of the Commission;

   Struck: "(2) reclassify the types of traders for regulatory and reporting purposes to distinguish between index traders and swaps dealers;

   Struck: "(3) review the trading practices for index traders in markets under the jurisdiction of the Commission--

   Struck: "(A) to ensure that index trading is not adversely impacting the price discovery process; and

   Struck: "(B) to determine whether different practices or regulations should be implemented; and

   Struck: "(4) ensure, to the maximum extent practicable, that the reports required under this subsection distinguish between legitimate and nonlegitimate hedge trading.".

   Struck: SEC. 9. DISAGGREGATION OF INDEX FUNDS AND OTHER DATA IN ENERGY MARKETS.

   Struck: Section 4 of the Commodity Exchange Act (7 U.S.C. 6) (as amended by section 8) is amended by adding at the end the following:

   Struck: "(g) Disaggregation of Index Funds and Other Data in Energy Markets.--The Commission shall disaggregate and make public monthly--

   Struck: "(1) the number of positions and total value of index funds and other passive, long-only positions in energy markets; and

   Struck: "(2) data on speculative positions relative to bona fide physical hedgers in those markets.".

   Struck: SEC. 10. ADDITIONAL COMMODITY FUTURES TRADING COMMISSION EMPLOYEES FOR IMPROVED ENFORCEMENT.

   Struck: Section 2(a)(7) of the Commodity Exchange Act (7 U.S.C. 2(a)(7)) is amended by adding at the end the following:

   Struck: "(D) Additional employees.--As soon as practicable after the date of enactment of this subparagraph, the Commission shall appoint at least 100 full-time employees (in addition to the employees employed by the Commission as of the date of enactment of this subparagraph)--

   Struck: "(i) to increase the public transparency of operations in energy futures markets;

   Struck: "(ii) to improve the enforcement of this Act in those markets; and

   Struck: "(iii) to carry out such other duties as are prescribed by the Commission.".

   Struck: SEC. 11. WORKING GROUP ON ENERGY MARKETS.

   Struck: (a) Establishment.--There is established a Working Group on Energy Markets.

   Struck: (b) Composition.--The Working Group shall be composed of--

   Struck: (1) the Secretary of Energy (referred to in this section as the "Secretary");

   Struck: (2) the Secretary of the Treasury;

   Struck: (3) the Chairman of the Federal Energy Regulatory Commission;

   Struck: (4) the Chairman of Federal Trade Commission;

   Struck: (5) the Chairman of the Securities and Exchange Commission;

   Struck: (6) the Chairman of the Commodity Futures Trading Commission; and

   Struck: (7) the Administrator of the Energy Information Administration.

   Struck: (c) Chairperson.--

   Struck: (1) Initial chairperson.--The Secretary shall serve as the Chairperson of the Working Group for the 1-year period beginning on the date of enactment of this Act.

   Struck: (2) Rotation of chairpersons.--For each 1-year period following the period described in paragraph (1), each individual described in subsection (b) shall serve as the Chairperson of the Working Group in the order corresponding to which the individual is described in that subsection.

   Struck: (d) Purpose and Function.--The Working Group shall--

   Struck: (1) investigate the effect of speculation in energy commodities on energy prices and the energy security of the United States;

   Struck: (2) recommend to the President and Congress laws (including regulations) that may be needed to prevent excessive speculation in energy commodities to prevent or minimize the adverse impact of high energy prices on consumers and the economy of the United States; and

   Struck: (3) review energy security considerations posed by developments in international energy markets.

   Struck: (e) Administration.--The Secretary shall provide the Working Group with such administrative and support services as may be necessary for the performance of the functions of the Working Group.

   Struck: (f) Cooperation of Other Agencies.--The heads of Executive departments, agencies, and independent instrumentalities shall, to the extent permitted by law, provide the Working Group with such information as the Working Group requires to carry out this section.

   Struck: (g) Consultation.--The Working Group shall consult, as appropriate, with representatives of the various exchanges, clearinghouses, self- regulatory bodies, other major market participants, consumers, and the general public.

   Struck: SEC. 12. STUDY OF REGULATORY FRAMEWORK FOR ENERGY MARKETS.

   Struck: (a) Study.--The Working Group established under section 11(a) shall conduct a study to--

   Struck: (1) identify the factors that affect the pricing of crude oil and refined petroleum products, including an examination of the effects of market speculation on prices; and

   Struck: (2) review and assess the roles, missions, and structures of relevant Federal agencies, examine interagency coordination, and identify and assess the gaps that need to be filled for the Federal Government to effectively oversee and regulate markets critical to the energy security of the United States.

   Struck: (b) Elements of Study.--The study shall include--

   Struck: (1) an examination of price formation with respect to crude oil and refined petroleum products;

   Struck: (2) an examination of relevant international regulatory regimes; and

   Struck: (3) an examination of the degree to which changes in energy market transparency, liquidity, and structure have influenced or driven abuse, manipulation, excessive speculation, or inefficient price formation.

   Struck: (c) Report and Recommendations.--Not later than 1 year after the date of enactment of this Act, the Secretary of Energy shall submit to the appropriate committees of Congress a report that--

   Struck: (1) describes the results of the study; and

   Struck: (2) provides options and the recommendations of the Working Group for appropriate Federal coordination of oversight and regulatory actions to ensure transparency of crude oil and refined petroleum product pricing and the elimination of excessive speculation.

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

   Struck: SEC. 13. COLLECTION AND ANALYSIS OF INFORMATION ON ENERGY COMMODITIES.

   Struck: (a) Accurate and Complete Information on Energy Producing Companies.--Section 205(h)(1) of the Department of Energy Organization Act (42 U.S.C. 7135(h)(1)) is amended by adding at the end the following:

   Struck: "(C) Information on energy-producing companies.-- Notwithstanding any other provision of law, the head of each Federal department or agency shall provide to the Administrator, on the request of the Administrator, such information as the Administrator may require to identify each energy-producing company.".

   Struck: (b) Enhanced Data on Ownership of Critical Energy Commodities.-- Section 205 of the Department of Energy Organization Act (42 U.S.C. 7135) is amended by adding at the end the following:

   Struck: "(n) Collection of Information on Ownership of Energy Commodities.--

   Struck: "(1) In general.--To ensure transparency of information with respect to critical energy infrastructure and product ownership in the United States, the Administrator shall collect on a weekly basis information identifying the ownership of all commercially held oil and natural gas inventories in the United States.

   Struck: "(2) Company-specific data.--The information shall include company-specific data, including--

   Struck: "(A) volumes of product under ownership; and

   Struck: "(B) storage and transportation capacity (including owned and leased capacity).

   Struck: "(3) Protection of proprietary information.--Section 11(d) of the Energy Supply and Environmental Coordination Act of 1974 (15 U.S.C. 796(d)) shall apply to information collected under this section.

   Struck: "(o) Monthly Reporting on Energy Commodity Transactions.--

   Struck: "(1) In general.--In accordance with paragraph (2), to improve the ability to evaluate the energy security of the United States, any person holding or controlling energy futures contracts or energy commodity swaps (as defined in section 202 of the Energy Policy and Conservation Act) at a level to be determined by the Secretary for which the underlying energy commodity is physically delivered within the United States shall report on a monthly basis, with respect to the energy commodities and the byproducts of the energy commodities--

   Struck: "(A) the quantity of physical stocks owned;

   Struck: "(B) the quantity of fixed price purchase commitments open;

   Struck: "(C) the quantity of fixed price sales commitments open;

   Struck: "(D) the physical storage capacity owned or leased; and

   Struck: "(E) such other information as the Secretary determines is necessary to provide adequate transparency with respect to entities that control critical energy assets in the United States.

   Struck: "(2) Use of data.--Any data collected under paragraph (1) shall not be made public in a manner that is inconsistent with this Act.

   Struck: "(p) Financial Market Analysis Office.--

   Struck: "(1) Establishment.--There shall be within the Energy Information Administration a Financial Market Analysis Office, headed by a director, who shall report directly to the Administrator of the Energy Information Administration.

   Struck: "(2) Duties.--The Office shall be responsible for analysis of the financial aspects of energy markets.

   Struck: "(3) Analyses.--The Administrator of the Energy Information Administration shall take analyses by the Office into account in conducting analyses and forecasting of energy prices.".

   Struck: (c) Conforming Amendment.--Section 645 of the Department of Energy Organization Act (42 U.S.C. 7255) is amended by inserting "(15 U.S.C. 3301 et seq.) and the Natural Gas Act (15 U.S.C. 717 et seq.)" after "Natural Gas Policy Act of 1978".

   Struck: SEC. 14. NATIONAL NATURAL GAS MARKET INVESTIGATION.

   Struck: (a) In General.--Not later than 30 days after the date of enactment of this Act, in order to ensure the integrity of natural gas markets, the Federal Energy Regulatory Commission (referred to in this section as the "Commission") shall commence an investigation into the role of financial institutions in natural gas markets, including--

   Struck: (1) trends in investment in natural gas storage, transportation capacity, and pipeline infrastructure;

   Struck: (2) factors contributing to potential effects on wholesale natural gas prices, including the mechanisms covered by physical natural gas supply contracts;

   Struck: (3) the character and number of positions held in related financial markets; and

   Struck: (4) any international considerations the Commission considers relevant.

   Struck: (b) Assessment.--The Commission may include in the investigation an assessment of real-time market dynamics during the 2008 winter heating season.

   Struck: (c) Required Data.--Each Federal department and agency shall comply with any request from the Commission for records, papers, and information in the possession of the department or agency relating to any agreement, contract, or transaction for the sale of an energy commodity for future delivery in interstate or foreign commerce, or any energy commodity swap.

   Struck: (d) Reports.--Not later than 270 days after the date of enactment of this Act, the Commission shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report on the findings, conclusions, and recommendations of the investigation conducted under this section.

   Struck: (e) Additional Investigations.--On an annual basis and during any other period the Commission determines necessary, the Commission shall--

   Struck: (1) conduct an investigation that is similar to the investigation required under subsections (a) through (c); and

   Struck: (2) submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report on the findings, conclusions, and recommendations of the investigation.

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

   Struck: SEC. 15. STUDIES; REPORTS.

   Struck: (a) Study Relating to International Regulation of Energy Commodity Markets.--

   Struck: (1) In general.--The Comptroller General of the United States shall conduct a study of the international regime for regulating the trading of energy commodity futures and derivatives.

   Struck: (2) Analysis.--The study shall include an analysis of, at a minimum--

   Struck: (A) key common features and differences among countries in the regulation of energy commodity trading, including with respect to market oversight and enforcement standards and activities;

   Struck: (B) variations among countries with respect to the use of position limits, accountability limits, or other thresholds to detect and prevent price manipulation, excessive speculation, or other unfair trading practices;

   Struck: (C) variations in practices regarding the differentiation of commercial and noncommercial trading;

   Struck: (D) agreements and practices for sharing market and trading data among regulatory bodies and among individual regulators and the entities that the bodies and regulators oversee; and

   Struck: (E) agreements and practices for facilitating international cooperation on market oversight, compliance, and enforcement.

   Struck: (3) Report.--Not later than 1 year after the date of enactment of this Act, the Comptroller General shall submit to the appropriate committees of Congress a report that--

   Struck: (A) describes the results of the study;

   Struck: (B) addresses the effects of excessive speculation and energy price volatility on energy futures; and

   Struck: (C) provides recommendations to improve openness, transparency, and other necessary elements of a properly functioning market in a manner that protects consumers in the United States.

   Struck: (b) Study Relating to Effects of Noncommercial Speculators on Energy Futures Markets and Energy Prices.--

   Struck: (1) Study.--The Comptroller General of the United States shall conduct a study of the effects of noncommercial speculators on energy futures markets and energy prices.

   Struck: (2) Analysis.--The study shall include an analysis of, at a minimum--

   Struck: (A) the effect of increased amounts of capital in energy futures markets;

   Struck: (B) the impact of the roll-over of positions by index fund traders and swap dealers on energy futures markets and energy prices; and

   Struck: (C) the extent to which each factor described in subparagraphs (A) and (B) and noncommercial speculators--

   Struck: (i) affect--

   Struck: (I) the pricing of energy commodities; and

   Struck: (II) risk management functions; and

   Struck: (ii) contribute to economically efficient price discovery.

   Struck: (3) Report.--Not later than 2 years after the date of enactment of this Act, the Comptroller General shall submit to the appropriate committees of Congress a report that describes the results of the study.

   Struck: (c) Reports of Commodity Futures Trading Commission.--

   Struck: (1) In general.--The Commission shall submit to Congress--

   Struck: (A) not later than 60 days after the date of enactment of this Act, a report that describes in detail the actions the Commission has taken, is taking, and intends to take to carry out this subsection (including any recommended legislative changes that are necessary to carry out this subsection); and

   Struck: (B) not later than 45 days after the date described in subparagraph (A) and every 45 days thereafter until the date of implementation of this subsection, an update on the report required under subparagraph (A).

   Struck: (2) Additional employees or resources.--Not later than 60 days after the date of enactment of this Act, the Commission shall submit to Congress a report that describes the number of additional positions and resources that the Commission determines to be necessary to carry out this subsection (including the specific duty of each additional employee).

   Struck: SEC. 16. EXPEDITED PROCEDURES.

   Struck: (a) In General.--Subject to subsection (b), the Commodity Futures Trading Commission (referred to in this section as the "Commission") shall use emergency and expedited procedures (including any administrative or other procedure as appropriate) to carry out this Act (including the amendments made by this Act).

   Struck: (b) Report.--If the Commission decides not to use the procedures described in subsection (a) in a specific instance, not later than 30 days after the date of the decision, the Commission shall submit to Congress a detailed report that describes in each instance the reasons for not using the procedures.

   Inserted: (1) Authorization.--Congress authorizes the exploration, leasing, development, production, and economically feasible and prudent transportation of oil and gas in and from the Coastal Plain.

   Inserted: (2) Actions.--The Secretary shall take such actions as are necessary--

   Inserted: (A) to establish and implement, in accordance with this subtitle, a competitive oil and gas leasing program that will result in an environmentally sound program for the exploration, development, and production of the oil and gas resources of the Coastal Plain while taking into consideration the interests and concerns of residents of the Coastal Plain, which is the homeland of the Kaktovikmiut Inupiat; and

   Inserted: (B) to administer this subtitle through regulations, lease terms, conditions, restrictions, prohibitions, stipulations, and other provisions that--

   Inserted: (i) ensure the oil and gas exploration, development, and production activities on the Coastal Plain will result in no significant adverse effect on fish and wildlife, their habitat, subsistence resources, and the environment; and

   Inserted: (ii) require the application of the best commercially available technology for oil and gas exploration, development, and production to all exploration, development, and production operations under this subtitle in a manner that ensures the receipt of fair market value by the public for the mineral resources to be leased.

   Inserted: (b) Repeal.--

   Inserted: (1) Repeal.--Section 1003 of the Alaska National Interest Lands Conservation Act (16 U.S.C. 3143) is repealed.

   Inserted: (2) Conforming amendment.--The table of contents contained in section 1 of that Act (16 U.S.C. 3101 note) is amended by striking the item relating to section 1003.

   Inserted: (c) Compliance With Requirements Under Certain Other Laws.--

   Inserted: (1) Compatibility.--For purposes of the National Wildlife Refuge System Administration Act of 1966 (16 U.S.C. 668dd et seq.)--

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

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

   Inserted: (2) Adequacy of the department of the interior's legislative environmental impact statement.--The Final Statement shall be considered to satisfy the requirements under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) that apply with respect to pre-leasing activities, including exploration programs and actions authorized to be taken by the Secretary to develop and promulgate the regulations for the establishment of a leasing program authorized by this subtitle before the conduct of the first lease sale.

   Inserted: (3) Compliance with nepa for other actions.--

   Inserted: (A) In general.--Before conducting the first lease sale under this subtitle, the Secretary shall prepare an environmental impact statement in accordance with the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) with respect to the actions authorized by this subtitle that are not referred to in paragraph (2).

   Inserted: (B) Identification and analysis.--Notwithstanding any other provision of law, in carrying out this paragraph, the Secretary shall not be required--

   Inserted: (i) to identify nonleasing alternative courses of action; or

   Inserted: (ii) to analyze the environmental effects of those courses of action.

   Inserted: (C) Identification of preferred action.--Not later than 18 months after the date of enactment of this Act, the Secretary shall--

   Inserted: (i) identify only a preferred action and a single leasing alternative for the first lease sale authorized under this subtitle; and

   Inserted: (ii) analyze the environmental effects and potential mitigation measures for those 2 alternatives.

   Inserted: (D) Public comments.--In carrying out this paragraph, the Secretary shall consider only public comments that are filed not later than 20 days after the date of publication of a draft environmental impact statement.

   Inserted: (E) Effect of compliance.--Notwithstanding any other provision of law, compliance with this paragraph shall be considered to satisfy all requirements for the analysis and consideration of the environmental effects of proposed leasing under this subtitle.

   Inserted: (d) Relationship to State and Local Authority.--Nothing in this subtitle expands or limits any State or local regulatory authority.

   Inserted: (e) Special Areas.--

   Inserted: (1) Designation.--

   Inserted: (A) In general.--The Secretary, after consultation with the State of Alaska, the North Slope Borough, Alaska, and the City of Kaktovik, Alaska, may designate not more than 45,000 acres of the Coastal Plain as a special area if the Secretary determines that the special area would be of such unique character and interest as to require special management and regulatory protection.

   Inserted: (B) Sadlerochit spring area.--The Secretary shall designate as a special area in accordance with subparagraph (A) the Sadlerochit Spring area, comprising approximately 4,000 acres as depicted on the map.

   Inserted: (2) Management.--The Secretary shall manage each special area designated under this subsection in a manner that--

   Inserted: (A) respects and protects the Native people of the area; and

   Inserted: (B) preserves the unique and diverse character of the area, including fish, wildlife, subsistence resources, and cultural values of the area.

   Inserted: (3) Exclusion from leasing or surface occupancy.--

   Inserted: (A) In general.--The Secretary may exclude any special area designated under this subsection from leasing.

   Inserted: (B) No surface occupancy.--If the Secretary leases all or a portion of a special area for the purposes of oil and gas exploration, development, production, and related activities, there shall be no surface occupancy of the land comprising the special area.

   Inserted: (4) Directional drilling.--Notwithstanding any other provision of this subsection, the Secretary may lease all or a portion of a special area under terms that permit the use of horizontal drilling technology from sites on leases located outside the special area.

   Inserted: (f) Limitation on Closed Areas.--The Secretary may not close land within the Coastal Plain to oil and gas leasing or to exploration, development, or production except in accordance with this subtitle.

   Inserted: (g) Regulations.--

   Inserted: (1) In general.--Not later than 15 months after the date of enactment of this Act, in consultation with appropriate agencies of the State of Alaska, the North Slope Borough, Alaska, and the City of Kaktovik, Alaska, the Secretary shall issue such regulations as are necessary to carry out this subtitle, including rules and regulations relating to protection of the fish and wildlife, fish and wildlife habitat, and subsistence resources of the Coastal Plain.

   Inserted: (2) Revision of regulations.--The Secretary may periodically review and, as appropriate, revise the rules and regulations issued under paragraph (1) to reflect any significant scientific or engineering data that come to the attention of the Secretary.

   Inserted: SEC. 113. LEASE SALES.

   Inserted: (a) In General.--Land may be leased pursuant to this subtitle to any person qualified to obtain a lease for deposits of oil and gas under the Mineral Leasing Act (30 U.S.C. 181 et seq.).

   Inserted: (b) Procedures.--The Secretary shall, by regulation, establish procedures for--

   Inserted: (1) receipt and consideration of sealed nominations for any area in the Coastal Plain for inclusion in, or exclusion (as provided in subsection (c)) from, a lease sale;

   Inserted: (2) the holding of lease sales after that nomination process; and

   Inserted: (3) public notice of and comment on designation of areas to be included in, or excluded from, a lease sale.

   Inserted: (c) Lease Sale Bids.--Bidding for leases under this subtitle shall be by sealed competitive cash bonus bids.

   Inserted: (d) Acreage Minimum in First Sale.--For the first lease sale under this subtitle, the Secretary shall offer for lease those tracts the Secretary considers to have the greatest potential for the discovery of hydrocarbons, taking into consideration nominations received pursuant to subsection (b)(1), but in no case less than 200,000 acres.

   Inserted: (e) Timing of Lease Sales.--The Secretary shall--

   Inserted: (1) not later than 22 months after the date of enactment of this Act, conduct the first lease sale under this subtitle;

   Inserted: (2) not later than September 30, 2012, conduct a second lease sale under this subtitle; and

   Inserted: (3) conduct additional sales at appropriate intervals if sufficient interest in exploration or development exists to warrant the conduct of the additional sales.

   Inserted: SEC. 114. GRANT OF LEASES BY THE SECRETARY.

   Inserted: (a) In General.--Upon payment by a lessee of such bonus as may be accepted by the Secretary, the Secretary may grant to the highest responsible qualified bidder in a lease sale conducted pursuant to section 113 a lease for any land on the Coastal Plain.

   Inserted: (b) Subsequent Transfers.--

   Inserted: (1) In general.--No lease issued under this subtitle may be sold, exchanged, assigned, sublet, or otherwise transferred except with the approval of the Secretary.

   Inserted: (2) Condition for approval.--Before granting any approval described in paragraph (1), the Secretary shall consult with and give due consideration to the opinion of the Attorney General.

   Inserted: SEC. 115. LEASE TERMS AND CONDITIONS.

   Inserted: (a) In General.--An oil or gas lease issued pursuant to this subtitle shall--

   Inserted: (1) provide for the payment of a royalty of not less than 16\1/2\ percent of the amount or value of the production removed or sold from the lease, as determined by the Secretary in accordance with regulations applicable to other Federal oil and gas leases;

   Inserted: (2) provide that the Secretary may close, on a seasonal basis, such portions of the Coastal Plain to exploratory drilling activities as are necessary to protect caribou calving areas and other species of fish and wildlife;

   Inserted: (3) require that each lessee of land within the Coastal Plain shall be fully responsible and liable for the reclamation of land within the Coastal Plain and any other Federal land that is adversely affected in connection with exploration, development, production, or transportation activities within the Coastal Plain conducted by the lessee or by any of the subcontractors or agents of the lessee;

   Inserted: (4) provide that the lessee may not delegate or convey, by contract or otherwise, that reclamation responsibility and liability to another person without the express written approval of the Secretary;

   Inserted: (5) provide that the standard of reclamation for land required to be reclaimed under this subtitle shall be, to the maximum extent practicable--

   Inserted: (A) a condition capable of supporting the uses that the land was capable of supporting prior to any exploration, development, or production activities; or

   Inserted: (B) upon application by the lessee, to a higher or better standard, as approved by the Secretary;

   Inserted: (6) contain terms and conditions relating to protection of fish and wildlife, fish and wildlife habitat, subsistence resources, and the environment as required under section 112(a)(2);

   Inserted: (7) provide that each lessee, and each agent and contractor of a lessee, use their best efforts to provide a fair share of employment and contracting for Alaska Natives and Alaska Native Corporations from throughout the State of Alaska, as determined by the level of obligation previously agreed to in the Federal Agreement; and

   Inserted: (8) contain such other provisions as the Secretary determines to be necessary to ensure compliance with this subtitle and regulations issued under this subtitle.

   Inserted: (b) Project Labor Agreements.--The Secretary, as a term and condition of each lease under this subtitle, and in recognizing the proprietary interest of the Federal Government in labor stability and in the ability of construction labor and management to meet the particular needs and conditions of projects to be developed under the leases issued pursuant to this subtitle (including the special concerns of the parties to those leases), shall require that each lessee, and each agent and contractor of a lessee, under this subtitle negotiate to obtain a project labor agreement for the employment of laborers and mechanics on production, maintenance, and construction under the lease.

   Inserted: SEC. 116. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

   Inserted: (a) No Significant Adverse Effect Standard To Govern Authorized Coastal Plain Activities.--In accordance with section 112, the Secretary shall administer this subtitle through regulations, lease terms, conditions, restrictions, prohibitions, stipulations, or other provisions that--

   Inserted: (1) ensure, to the maximum extent practicable, that oil and gas exploration, development, and production activities on the Coastal Plain will result in no significant adverse effect on fish and wildlife, fish and wildlife habitat, and the environment;

   Inserted: (2) require the application of the best commercially available technology for oil and gas exploration, development, and production on all new exploration, development, and production operations; and

   Inserted: (3) ensure that the maximum surface acreage covered in connection with the leasing program by production and support facilities, including airstrips and any areas covered by gravel berms or piers for support of pipelines, does not exceed 2,000 acres on the Coastal Plain.

   Inserted: (b) Site-Specific Assessment and Mitigation.--The Secretary shall require, with respect to any proposed drilling and related activities on the Coastal Plain, that--

   Inserted: (1) a site-specific environmental analysis be made of the probable effects, if any, that the drilling or related activities will have on fish and wildlife, fish and wildlife habitat, subsistence resources, subsistence uses, and the environment;

   Inserted: (2) a plan be implemented to avoid, minimize, and mitigate (in that order and to the maximum extent practicable) any significant adverse effect identified under paragraph (1); and

   Inserted: (3) the development of the plan occur after consultation with--

   Inserted: (A) each agency having jurisdiction over matters mitigated by the plan;

   Inserted: (B) the State of Alaska;

   Inserted: (C) North Slope Borough, Alaska; and

   Inserted: (D) the City of Kaktovik, Alaska.

   Inserted: (c) Regulations To Protect Coastal Plain Fish and Wildlife Resources, Subsistence Users, and the Environment.--Before implementing the leasing program authorized by this subtitle, the Secretary shall prepare and issue regulations, lease terms, conditions, restrictions, prohibitions, stipulations, or other measures designed to ensure, to the maximum extent practicable, that the activities carried out on the Coastal Plain under this subtitle are conducted in a manner consistent with the purposes and environmental requirements of this subtitle.

   Inserted: (d) Compliance With Federal and State Environmental Laws and Other Requirements.--The proposed regulations, lease terms, conditions, restrictions, prohibitions, and stipulations for the leasing program under this subtitle shall require--

   Inserted: (1) compliance with all applicable provisions of Federal and State environmental law (including regulations);

   Inserted: (2) implementation of and compliance with--

   Inserted: (A) standards that are at least as effective as the safety and environmental mitigation measures, as described in items 1 through 29 on pages 167 through 169 of the Final Statement, on the Coastal Plain;

   Inserted: (B) seasonal limitations on exploration, development, and related activities, as necessary, to avoid significant adverse effects during periods of concentrated fish and wildlife breeding, denning, nesting, spawning, and migration;

   Inserted: (C) design safety and construction standards for all pipelines and any access and service roads that minimize, to the maximum extent practicable, adverse effects on--

   Inserted: (i) the passage of migratory species (such as caribou); and

   Inserted: (ii) the flow of surface water by requiring the use of culverts, bridges, or other structural devices;

   Inserted: (D) prohibitions on general public access to, and use of, all pipeline access and service roads;

   Inserted: (E) stringent reclamation and rehabilitation requirements in accordance with this subtitle for the removal from the Coastal Plain of all oil and gas development and production facilities, structures, and equipment on completion of oil and gas production operations, except in a case in which the Secretary determines that those facilities, structures, or equipment--

   Inserted: (i) would assist in the management of the Arctic National Wildlife Refuge; and

   Inserted: (ii) are donated to the United States for that purpose;

   Inserted: (F) appropriate prohibitions or restrictions on--

   Inserted: (i) access by all modes of transportation;

   Inserted: (ii) sand and gravel extraction; and

   Inserted: (iii) use of explosives;

   Inserted: (G) reasonable stipulations for protection of cultural and archaeological resources;

   Inserted: (H) measures to protect groundwater and surface water, including--

   Inserted: (i) avoidance, to the maximum extent practicable, of springs, streams, and river systems;

   Inserted: (ii) the protection of natural surface drainage patterns and wetland and riparian habitats; and

   Inserted: (iii) the regulation of methods or techniques for developing or transporting adequate supplies of water for exploratory drilling; and

   Inserted: (I) research, monitoring, and reporting requirements;

   Inserted: (3) that exploration activities (except surface geological studies) be limited to the period between approximately November 1 and May 1 of each year and be supported, if necessary, by ice roads, winter trails with adequate snow cover, ice pads, ice airstrips, and air transport methods (except that those exploration activities may be permitted at other times if the Secretary determines that the exploration will have no significant adverse effect on fish and wildlife, fish and wildlife habitat, subsistence resources, and the environment of the Coastal Plain);

   Inserted: (4) consolidation of facility siting;

   Inserted: (5) avoidance or reduction of air traffic-related disturbance to fish and wildlife;

   Inserted: (6) treatment and disposal of hazardous and toxic wastes, solid wastes, reserve pit fluids, drilling muds and cuttings, and domestic wastewater, including, in accordance with applicable Federal and State environmental laws (including regulations)--

   Inserted: (A) preparation of an annual waste management report;

   Inserted: (B) development and implementation of a hazardous materials tracking system; and

   Inserted: (C) prohibition on the use of chlorinated solvents;

   Inserted: (7) fuel storage and oil spill contingency planning;

   Inserted: (8) conduct of periodic field crew environmental briefings;

   Inserted: (9) avoidance of significant adverse effects on subsistence hunting, fishing, and trapping;

   Inserted: (10) compliance with applicable air and water quality standards;

   Inserted: (11) appropriate seasonal and safety zone designations around well sites, within which subsistence hunting and trapping shall be limited; and

   Inserted: (12) development and implementation of such other protective environmental requirements, restrictions, terms, or conditions as the Secretary, after consultation with the State of Alaska, North Slope Borough, Alaska, and the City of Kaktovik, Alaska, determines to be necessary.

   Inserted: (e) Considerations.--In preparing and issuing regulations, lease terms, conditions, restrictions, prohibitions, or stipulations under this section, the Secretary shall take into consideration--

   Inserted: (1) the stipulations and conditions that govern the National Petroleum Reserve-Alaska leasing program, as set forth in the 1999 Northeast National Petroleum Reserve-Alaska Final Integrated Activity Plan/Environmental Impact Statement;

   Inserted: (2) the environmental protection standards that governed the initial Coastal Plain seismic exploration program under parts 37.31 through 37.33 of title 50, Code of Federal Regulations (or successor regulations); and

   Inserted: (3) the land use stipulations for exploratory drilling on the KIC-ASRC private land described in Appendix 2 of the agreement between Arctic Slope Regional Corporation and the United States dated August 9, 1983.

   Inserted: (f) Facility Consolidation Planning.--

   Inserted: (1) In general.--After providing for public notice and comment, the Secretary shall prepare and periodically update a plan to govern, guide, and direct the siting and construction of facilities for the exploration, development, production, and transportation of oil and gas resources from the Coastal Plain.

   Inserted: (2) Objectives.--The objectives of the plan shall be--

   Inserted: (A) the avoidance of unnecessary duplication of facilities and activities;

   Inserted: (B) the encouragement of consolidation of common facilities and activities;

   Inserted: (C) the location or confinement of facilities and activities to areas that will minimize impact on fish and wildlife, fish and wildlife habitat, subsistence resources, and the environment;

   Inserted: (D) the use of existing facilities, to the maximum extent practicable; and

   Inserted: (E) the enhancement of compatibility between wildlife values and development activities.

   Inserted: (g) Access to Public Land.--The Secretary shall--

   Inserted: (1) manage public land in the Coastal Plain in accordance with subsections (a) and (b) of section 811 of the Alaska National Interest Lands Conservation Act (16 U.S.C. 3121); and

   Inserted: (2) ensure that local residents shall have reasonable access to public land in the Coastal Plain for traditional uses.

   Inserted: SEC. 117. EXPEDITED JUDICIAL REVIEW.

   Inserted: (a) Filing of Complaints.--

   Inserted: (1) Deadline.--A complaint seeking judicial review of a provision of this subtitle or an action of the Secretary under this subtitle shall be filed--

   Inserted: (A) except as provided in subparagraph (B), during the 90-day period beginning on the date on which the action being challenged was carried out; or

   Inserted: (B) in the case of a complaint based solely on grounds arising after the 90-day period described in subparagraph (A), during the 90-day period beginning on the date on which the complainant knew or reasonably should have known about the grounds for the complaint.

   Inserted: (2) Venue.--A complaint seeking judicial review of a provision of this subtitle or an action of the Secretary under this subtitle shall be filed in the United States Court of Appeals for the District of Columbia.

   Inserted: (3) Scope.--

   Inserted: (A) In general.--Judicial review of a decision of the Secretary under this subtitle (including an environmental analysis of such a lease sale) shall be--

   Inserted: (i) limited to a review of whether the decision is in accordance with this subtitle; and

   Inserted: (ii) based on the administrative record of the decision.

   Inserted: (B) Presumptions.--Any identification by the Secretary of a preferred course of action relating to a lease sale, and any analysis by the Secretary of environmental effects, under this subtitle shall be presumed to be correct unless proven otherwise by clear and convincing evidence.

   Inserted: (b) Limitation on Other Review.--Any action of the Secretary that is subject to judicial review under this section shall not be subject to judicial review in any civil or criminal proceeding for enforcement.

   Inserted: SEC. 118. RIGHTS-OF-WAY AND EASEMENTS ACROSS COASTAL PLAIN.

   Inserted: For purposes of section 1102(4)(A) of the Alaska National Interest Lands Conservation Act (16 U.S.C. 3162(4)(A)), any rights-of-way or easements across the Coastal Plain for the exploration, development, production, or transportation of oil and gas shall be considered to be established incident to the management of the Coastal Plain under this section.

   Inserted: SEC. 119. CONVEYANCE.

   Inserted: Notwithstanding section 1302(h)(2) of the Alaska National Interest Lands Conservation Act (16 U.S.C. 3192(h)(2)), to remove any cloud on title to land, and to clarify land ownership patterns in the Coastal Plain, the Secretary shall--

   Inserted: (1) to the extent necessary to fulfill the entitlement of the Kaktovik Inupiat Corporation under sections 12 and 14 of the Alaska Native Claims Settlement Act (43 U.S.C. 1611, 1613), as determined by the Secretary, convey to that Corporation the surface estate of the land described in paragraph (1) of Public Land Order 6959, in accordance with the terms and conditions of the agreement between the Secretary, the United States Fish and Wildlife Service, the Bureau of Land Management, and the Kaktovik Inupiat Corporation, dated January 22, 1993; and

   Inserted: (2) convey to the Arctic Slope Regional Corporation the remaining subsurface estate to which that Corporation is entitled under the agreement between that corporation and the United States, dated August 9, 1983.

   Inserted: SEC. 120. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE ASSISTANCE.

   Inserted: (a) Establishment of Fund.--

   Inserted: (1) In general.--As a condition on the receipt of funds under section 122(2), the State of Alaska shall establish in the treasury of the State, and administer in accordance with this section, a fund to be known as the "Coastal Plain Local Government Impact Aid Assistance Fund" (referred to in this section as the "Fund").

   Inserted: (2) Deposits.--Subject to paragraph (1), the Secretary of the Treasury shall deposit into the Fund, $35,000,000 each year from the amount available under section 122(2)(A).

   Inserted: (3) Investment.--The Governor of the State of Alaska (referred to in this section as the "Governor") shall invest amounts in the Fund in interest-bearing securities of the United States or the State of Alaska.

   Inserted: (b) Assistance.--The Governor, in cooperation with the Mayor of the North Slope Borough, shall use amounts in the Fund to provide assistance to North Slope Borough, Alaska, the City of Kaktovik, Alaska, and any other borough, municipal subdivision, village, or other community in the State of Alaska that is directly impacted by exploration for, or the production of, oil or gas on the Coastal Plain under this subtitle, or any Alaska Native Regional Corporation acting on behalf of the villages and communities within its region whose lands lie along the right of way of the Trans Alaska Pipeline System, as determined by the Governor.

   Inserted: (c) Application.--

   Inserted: (1) In general.--To receive assistance under subsection (b), a community or Regional Corporation described in that subsection shall submit to the Governor, or to the Mayor of the North Slope Borough, an application in such time, in such manner, and containing such information as the Governor may require.

   Inserted: (2) Action by north slope borough.--The Mayor of the North Slope Borough shall submit to the Governor each application received under paragraph (1) as soon as practicable after the date on which the application is received.

   Inserted: (3) Assistance of governor.--The Governor shall assist communities in submitting applications under this subsection, to the maximum extent practicable.

   Inserted: (d) Use of Funds.--A community or Regional Corporation that receives funds under subsection (b) may use the funds--

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

   Inserted: (2) to develop, carry out, and maintain--

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

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

   Inserted: (3) to compensate residents of the Coastal Plain for significant damage to environmental, social, cultural, recreational, or subsistence resources; and

   Inserted: (4) in the City of Kaktovik, Alaska--

   Inserted: (A) to develop a mechanism for providing members of the Kaktovikmiut Inupiat community an opportunity to--

   Inserted: (i) monitor development on the Coastal Plain; and

   Inserted: (ii) provide information and recommendations to the Governor based on traditional aboriginal knowledge of the natural resources, flora, fauna, and ecological processes of the Coastal Plain; and

   Inserted: (B) to establish a local coordination office, to be managed by the Mayor of the North Slope Borough, in coordination with the City of Kaktovik, Alaska--

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

   Inserted: (ii) to provide to the Committee on Resources of the House of Representatives and the Committee on Energy and Natural Resources of the Senate annual reports on the status of the coordination between developers and communities affected by development;

   Inserted: (iii) to collect from residents of the Coastal Plain information regarding the impacts of development on fish, wildlife, habitats, subsistence resources, and the environment of the Coastal Plain; and

   Inserted: (iv) to ensure that the information collected under clause (iii) is submitted to--

   Inserted: (I) developers; and

   Inserted: (II) any appropriate Federal agency.

   Inserted: SEC. 121. PROHIBITION ON EXPORTS.

   Inserted: An oil lease issued under this subtitle shall prohibit the exportation of oil produced under the lease.

   Inserted: SEC. 122. ALLOCATION OF REVENUES.

   Inserted: Notwithstanding the Mineral Leasing Act (30 U.S.C. 181 et seq.) or any other provision of law, of the adjusted bonus, rental, and royalty receipts from Federal oil and gas leasing and operations authorized under this subtitle:

   Inserted: (1) 50 percent shall be deposited in the general fund of the Treasury.

   Inserted: (2) The remainder shall be available as follows:

   Inserted: (A) $35,000,000 shall be deposited by the Secretary of the Treasury into the fund created under section 120(a)(1).

   Inserted: (B) The remainder shall be disbursed to the State of Alaska.

   Inserted: Subtitle C--Permitting SEC. 131. REFINERY PERMITTING PROCESS.

   Inserted: (a) Definitions.--In this section:

   Inserted: (1) Administrator.--The term "Administrator" means the Administrator of the Environmental Protection Agency.

   Inserted: (2) Indian tribe.--The term "Indian tribe" has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b).

   Inserted: (3) Permit.--The term "permit" means any permit, license, approval, variance, or other form of authorization that a refiner is required to obtain--

   Inserted: (A) under any Federal law; or

   Inserted: (B) from a State or Indian tribal government agency delegated authority by the Federal Government, or authorized under Federal law, to issue permits.

   Inserted: (4) Refiner.--The term "refiner" means a person that--

   Inserted: (A) owns or operates a refinery; or

   Inserted: (B) seeks to become an owner or operator of a refinery.

   Inserted: (5) Refinery.--

   Inserted: (A) In general.--The term "refinery" means--

   Inserted: (i) a facility at which crude oil is refined into transportation fuel or other petroleum products; and

   Inserted: (ii) a coal liquification or coal-to-liquid facility at which coal is processed into synthetic crude oil or any other fuel.

   Inserted: (B) Inclusions.--The term "refinery" includes an expansion of a refinery.

   Inserted: (6) Refinery expansion.--The term "refinery expansion" means a physical change in a refinery that results in an increase in the capacity of the refinery.

   Inserted: (7) Refinery permitting agreement.--The term "refinery permitting agreement" means an agreement entered into between the Administrator and a State or Indian tribe under subsection (b).

   Inserted: (8) Secretary.--The term "Secretary" means the Secretary of Commerce.

   Inserted: (9) State.--The term "State" means--

   Inserted: (A) a State;

   Inserted: (B) the District of Columbia;

   Inserted: (C) the Commonwealth of Puerto Rico; and

   Inserted: (D) any other territory or possession of the United States.

   Inserted: (b) Streamlining of Refinery Permitting Process.--

   Inserted: (1) In general.--At the request of the Governor of a State or the governing body of an Indian tribe, the Administrator shall enter into a refinery permitting agreement with the State or Indian tribe under which the process for obtaining all permits necessary for the construction and operation of a refinery shall be streamlined using a systematic interdisciplinary multimedia approach as provided in this section.

   Inserted: (2) Authority of administrator.--Under a refinery permitting agreement--

   Inserted: (A) the Administrator shall have authority, as applicable and necessary, to--

   Inserted: (i) accept from a refiner a consolidated application for all permits that the refiner is required to obtain to construct and operate a refinery;

   Inserted: (ii) in consultation and cooperation with each Federal, State, or Indian tribal government agency that is required to make any determination to authorize the issuance of a permit, establish a schedule under which each agency shall--

   Inserted: (I) concurrently consider, to the maximum extent practicable, each determination to be made; and

   Inserted: (II) complete each step in the permitting process; and

   Inserted: (iii) issue a consolidated permit that combines all permits issued under the schedule established under clause (ii); and

   Inserted: (B) the Administrator shall provide to State and Indian tribal government agencies--

   Inserted: (i) financial assistance in such amounts as the agencies reasonably require to hire such additional personnel as are necessary to enable the government agencies to comply with the applicable schedule established under subparagraph (A)(ii); and

   Inserted: (ii) technical, legal, and other assistance in complying with the refinery permitting agreement.

   Inserted: (3) Agreement by the state.--Under a refinery permitting agreement, a State or governing body of an Indian tribe shall agree that--

   Inserted: (A) the Administrator shall have each of the authorities described in paragraph (2); and

   Inserted: (B) each State or Indian tribal government agency shall--

   Inserted: (i) in accordance with State law, make such structural and operational changes in the agencies as are necessary to enable the agencies to carry out consolidated project-wide permit reviews concurrently and in coordination with the Environmental Protection Agency and other Federal agencies; and

   Inserted: (ii) comply, to the maximum extent practicable, with the applicable schedule established under paragraph (2)(A)(ii).

   Inserted: (4) Deadlines.--

   Inserted: (A) New refineries.--In the case of a consolidated permit for the construction of a new refinery, the Administrator and the State or governing body of an Indian tribe shall approve or disapprove the consolidated permit not later than--

   Inserted: (i) 360 days after the date of the receipt of the administratively complete application for the consolidated permit; or

   Inserted: (ii) on agreement of the applicant, the Administrator, and the State or governing body of the Indian tribe, 90 days after the expiration of the deadline established under clause (i).

   Inserted: (B) Expansion of existing refineries.--In the case of a consolidated permit for the expansion of an existing refinery, the Administrator and the State or governing body of an Indian tribe shall approve or disapprove the consolidated permit not later than--

   Inserted: (i) 120 days after the date of the receipt of the administratively complete application for the consolidated permit; or

   Inserted: (ii) on agreement of the applicant, the Administrator, and the State or governing body of the Indian tribe, 30 days after the expiration of the deadline established under clause (i).

   Inserted: (5) Federal agencies.--Each Federal agency that is required to make any determination to authorize the issuance of a permit shall comply with the applicable schedule established under paragraph (2)(A)(ii).

   Inserted: (6) Judicial review.--Any civil action for review of any permit determination under a refinery permitting agreement shall be brought exclusively in the United States district court for the district in which the refinery is located or proposed to be located.

   Inserted: (7) Efficient permit review.--In order to reduce the duplication of procedures, the Administrator shall use State permitting and monitoring procedures to satisfy substantially equivalent Federal requirements under this title.

   Inserted: (8) Severability.--If 1 or more permits that are required for the construction or operation of a refinery are not approved on or before any deadline established under paragraph (4), the Administrator may issue a consolidated permit that combines all other permits that the refiner is required to obtain other than any permits that are not approved.

   Inserted: (9) Savings.--Nothing in this subsection affects the operation or implementation of otherwise applicable law regarding permits necessary for the construction and operation of a refinery.

   Inserted: (10) Consultation with local governments.--Congress encourages the Administrator, States, and tribal governments to consult, to the maximum extent practicable, with local governments in carrying out this subsection.

   Inserted: (11) Authorization of appropriations.--There are authorized to be appropriated such sums as are necessary to carry out this subsection.

   Inserted: (12) Effect on local authority.--Nothing in this subsection affects--

   Inserted: (A) the authority of a local government with respect to the issuance of permits; or

   Inserted: (B) any requirement or ordinance of a local government (such as a zoning regulation).

   Inserted: (c) Fischer-Tropsch Fuels.--

   Inserted: (1) In general.--In cooperation with the Secretary of Energy, the Secretary of Defense, the Administrator of the Federal Aviation Administration, Secretary of Health and Human Services, and Fischer-Tropsch industry representatives, the Administrator shall--

   Inserted: (A) conduct a research and demonstration program to evaluate the air quality benefits of ultra-clean Fischer-Tropsch transportation fuel, including diesel and jet fuel;

   Inserted: (B) evaluate the use of ultra-clean Fischer-Tropsch transportation fuel as a mechanism for reducing engine exhaust emissions; and

   Inserted: (C) submit recommendations to Congress on the most effective use and associated benefits of these ultra-clean fuel for reducing public exposure to exhaust emissions.

   Inserted: (2) Guidance and technical support.--The Administrator shall, to the extent necessary, issue any guidance or technical support documents that would facilitate the effective use and associated benefit of Fischer-Tropsch fuel and blends.

   Inserted: (3) Requirements.--The program described in paragraph (1) shall consider--

   Inserted: (A) the use of neat (100 percent) Fischer-Tropsch fuel and blends with conventional crude oil-derived fuel for heavy-duty and light-duty diesel engines and the aviation sector; and

   Inserted: (B) the production costs associated with domestic production of those ultra clean fuel and prices for consumers.

   Inserted: (4) Reports.--The Administrator shall submit to the Committee on Environment and Public Works and the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives--

   Inserted: (A) not later than 1 year, an interim report on actions taken to carry out this subsection; and

   Inserted: (B) not later than 2 years, a final report on actions taken to carry out this subsection.

   Inserted: SEC. 132. REMOVAL OF ADDITIONAL FEE FOR NEW APPLICATIONS FOR PERMITS TO DRILL.

   Inserted: The second undesignated paragraph of the matter under the heading "management of lands and resources" under the heading "Bureau of Land Management" of title I of the Department of the Interior, Environment, and Related Agencies Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 2098) is amended by striking "to be reduced" and all that follows through "each new application,".

   Inserted: Subtitle D--Restoration of State Revenue SEC. 141. RESTORATION OF STATE REVENUE.

   Inserted: The matter under the heading "administrative provisions" under the heading "Minerals Management Service" of title I of the Department of the Interior, Environment, and Related Agencies Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 2109) is amended by striking "Notwithstanding" and all that follows through "Treasury.".

   Inserted: TITLE II--ALTERNATIVE RESOURCES

   Inserted: Subtitle A--Renewable Fuel and Advanced Energy Technology SEC. 201. DEFINITION OF RENEWABLE BIOMASS.

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

   Inserted: "(I) Renewable biomass.--The term 'renewable biomass' means--

   Inserted: "(i) nonmerchantable materials or precommercial thinnings that--

   Inserted: "(I) are byproducts of preventive treatments, such as trees, wood, brush, thinnings, chips, and slash, that are removed--

   Inserted: "(aa) to reduce hazardous fuels;

   Inserted: "(bb) to reduce or contain disease or insect infestation; or

   Inserted: "(cc) to restore forest health;

   Inserted: "(II) would not otherwise be used for higher-value products; and

   Inserted: "(III) are harvested from National Forest System land or public land (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702))--

   Inserted: "(aa) where permitted by law; and

   Inserted: "(bb) in accordance with applicable land management plans and the requirements for old-growth maintenance, restoration, and management direction of paragraphs (2), (3), and (4) of subsection (e) and the requirements for large-tree retention of subsection (f) of section 102 of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6512); or

   Inserted: "(ii) any organic matter that is available on a renewable or recurring basis from non-Federal land or from land belonging to an Indian tribe, or an Indian individual, that is held in trust by the United States or subject to a restriction against alienation imposed by the United States, including--

   Inserted: "(I) renewable plant material, including--

   Inserted: "(aa) feed grains;

   Inserted: "(bb) other agricultural commodities;

   Inserted: "(cc) other plants and trees; and

   Inserted: "(dd) algae; and

   Inserted: "(II) waste material, including--

   Inserted: "(aa) crop residue;

   Inserted: "(bb) other vegetative waste material (including wood waste and wood residues);

   Inserted: "(cc) animal waste and byproducts (including fats, oils, greases, and manure); and

   Inserted: "(dd) food waste and yard waste.".

   Inserted: SEC. 202. ADVANCED BATTERY MANUFACTURING INCENTIVE PROGRAM.

   Inserted: (a) Definitions.--In this section:

   Inserted: (1) Advanced battery.--The term "advanced battery" means an electrical storage device suitable for vehicle applications.

   Inserted: (2) Engineering integration costs.--The term "engineering integration costs" includes the cost of engineering tasks relating to--

   Inserted: (A) incorporation of qualifying components into the design of advanced batteries; and

   Inserted: (B) design of tooling and equipment and developing manufacturing processes and material suppliers for production facilities that produce qualifying components or advanced batteries.

   Inserted: (b) Advanced Battery Manufacturing Facility.--The Secretary shall provide facility funding awards under this section to advanced battery manufacturers to pay not more than 30 percent of the cost of reequipping, expanding, or establishing a manufacturing facility in the United States to produce advanced batteries.

   Inserted: (c) Period of Availability.--An award under subsection (b) shall apply to--

   Inserted: (1) facilities and equipment placed in service before December 30, 2020; and

   Inserted: (2) engineering integration costs incurred during the period beginning on the date of enactment of this Act and ending on December 30, 2020.

   Inserted: (d) Direct Loan Program.--

   Inserted: (1) In general.--Not later than 1 year after the date of enactment of this Act, and subject to the availability of appropriated funds, the Secretary shall carry out a program to provide a total of not more than $25,000,000 in loans to eligible individuals and entities (as determined by the Secretary) for the costs of activities described in subsection (b).

   Inserted: (2) Selection of eligible projects.--The Secretary shall select eligible projects to receive loans under this subsection in cases in which, as determined by the Secretary, the award recipient--

   Inserted: (A) is financially viable without the receipt of additional Federal funding associated with the proposed project;

   Inserted: (B) will provide sufficient information to the Secretary for the Secretary to ensure that the qualified investment is expended efficiently and effectively; and

   Inserted: (C) has met such other criteria as may be established and published by the Secretary.

   Inserted: (3) Rates, terms, and repayment of loans.--A loan provided under this subsection--

   Inserted: (A) shall have an interest rate that, as of the date on which the loan is made, is equal to the cost of funds to the Department of the Treasury for obligations of comparable maturity;

   Inserted: (B) shall have a term equal to the lesser of--

   Inserted: (i) the projected life, in years, of the eligible project to be carried out using funds from the loan, as determined by the Secretary; and

   Inserted: (ii) 25 years;

   Inserted: (C) may be subject to a deferral in repayment for not more than 5 years after the date on which the eligible project carried out using funds from the loan first begins operations, as determined by the Secretary; and

   Inserted: (D) shall be made by the Federal Financing Bank.

   Inserted: (e) Fees.--The cost of administering a loan made under this section shall not exceed $100,000.

   Inserted: (f) Set Aside for Small Manufacturers.--

   Inserted: (1) Definition of covered firm.--In this subsection, the term "covered firm" means a firm that--

   Inserted: (A) employs fewer than 500 individuals; and

   Inserted: (B) manufactures automobiles or components of automobiles.

   Inserted: (2) Set aside.--Of the amount of funds used to provide awards for each fiscal year under subsection (b), the Secretary shall use not less than 10 percent to provide awards to covered firms or consortia led by a covered firm.

   Inserted: (g) Authorization of Appropriations.--There are authorized to be appropriated such sums as are necessary to carry out this section for each of fiscal years 2009 through 2013.

   Inserted: SEC. 203. BIOFUELS INFRASTRUCTURE AND ADDITIVES RESEARCH AND DEVELOPMENT.

   Inserted: (a) In General.--The Assistant Administrator of the Office of Research and Development of the Environmental Protection Agency (referred to in this section as the "Assistant Administrator"), in consultation with the Secretary and the National Institute of Standards and Technology, shall carry out a program of research and development of materials to be added to biofuels to make the biofuels more compatible with infrastructure used to store and deliver petroleum-based fuels to the point of final sale.

   Inserted: (b) Requirements.--In carrying out the program described in subsection (a), the Assistant Administrator shall address--

   Inserted: (1) materials to prevent or mitigate--

   Inserted: (A) corrosion of metal, plastic, rubber, cork, fiberglass, glues, or any other material used in pipes and storage tanks;

   Inserted: (B) dissolving of storage tank sediments;

   Inserted: (C) clogging of filters;

   Inserted: (D) contamination from water or other adulterants or pollutants;

   Inserted: (E) poor flow properties relating to low temperatures;

   Inserted: (F) oxidative and thermal instability in long-term storage and use; and

   Inserted: (G) microbial contamination;

   Inserted: (2) problems associated with electrical conductivity;

   Inserted: (3) alternatives to conventional methods for refurbishment and cleaning of gasoline and diesel tanks, including tank lining applications;

   Inserted: (4) strategies to minimize emissions from infrastructure;

   Inserted: (5) issues with respect to certification by a nationally recognized testing laboratory of components for fuel-dispensing devises that specifically reference compatibility with alcohol-blended fuels and other biofuels that contain greater than 15 percent alcohol;

   Inserted: (6) challenges for design, reforming, storage, handling, and dispensing hydrogen fuel from various feedstocks, including biomass, from neighborhood fueling stations, including codes and standards development necessary beyond that carried out under section 809 of the Energy Policy Act of 2005 (42 U.S.C. 16158);

   Inserted: (7) issues with respect to at which point in the fuel supply chain additives optimally should be added to fuels; and

   Inserted: (8) other problems, as identified by the Assistant Administrator, in consultation with the Secretary and the National Institute of Standards and Technology.

   Inserted: SEC. 204. STUDY OF INCREASED CONSUMPTION OF ETHANOL-BLENDED GASOLINE WITH HIGHER LEVELS OF ETHANOL.

   Inserted: (a) In General.--The Secretary, in cooperation with the Secretary of Agriculture, the Administrator of the Environmental Protection Agency, and the Secretary of Transportation, and after providing notice and an opportunity for public comment, shall conduct a study of the feasibility of increasing consumption in the United States of ethanol-blended gasoline with levels of ethanol that are not less than 10 percent and not more than 40 percent.

   Inserted: (b) Study.--The study under subsection (a) shall include--

   Inserted: (1) a review of production and infrastructure constraints on increasing consumption of ethanol;

   Inserted: (2) an evaluation of the economic, market, and energy-related impacts of State and regional differences in ethanol blends;

   Inserted: (3) an evaluation of the economic, market, and energy-related impacts on gasoline retailers and consumers of separate and distinctly labeled fuel storage facilities and dispensers;

   Inserted: (4) an evaluation of the environmental impacts of mid-level ethanol blends on evaporative and exhaust emissions from on-road, off-road, and marine engines, recreational boats, vehicles, and equipment;

   Inserted: (5) an evaluation of the impacts of mid-level ethanol blends on the operation, durability, and performance of on-road, off-road, and marine engines, recreational boats, vehicles, and equipment;

   Inserted: (6) an evaluation of the safety impacts of mid-level ethanol blends on consumers that own and operate off-road and marine engines, recreational boats, vehicles, or equipment; and

   Inserted: (7) an evaluation of the impacts of increased use of renewable fuels derived from food crops on the price and supply of agricultural commodities in both domestic and global markets.

   Inserted: (c) Report.--Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to Congress a report describing the results of the study conducted under this section.

   Inserted: SEC. 205. STUDY OF DIESEL VEHICLE ATTRIBUTES.

   Inserted: (a) In General.--The Secretary, in consultation with the Administrator of the Environmental Protection Agency and the Secretary of Transportation, shall conduct a study to identify--

   Inserted: (1) the environmental and efficiency attributes of diesel-fueled vehicles as the vehicles compare to comparable gasoline fueled, E-85 fueled, and hybrid vehicles;

   Inserted: (2) the technical, economic, regulatory, environmental, and other obstacles to increasing the usage of diesel-fueled vehicles;

   Inserted: (3) the legislative, administrative, and other actions that could reduce or eliminate the obstacles identified under paragraph (2); and

   Inserted: (4) the costs and benefits associated with reducing or eliminating the obstacles identified under paragraph (2).

   Inserted: (b) Report.--Not later than 90 days after the date of enactment of this Act, the Secretary shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report describing the results of the study conducted under subsection (a).

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

   Inserted: Subtitle B--Clean Coal-Derived Fuels for Energy Security SEC. 211. SHORT TITLE.

   Inserted: This subtitle may be cited as the "Clean Coal-Derived Fuels for Energy Security Act of 2008".

   Inserted: SEC. 212. DEFINITIONS.

   Inserted: In this subtitle:

   Inserted: (1) Clean coal-derived fuel.--

   Inserted: (A) In general.--The term "clean coal-derived fuel" means aviation fuel, motor vehicle fuel, home heating oil, or boiler fuel that is--

   Inserted: (i) substantially derived from the coal resources of the United States; and

   Inserted: (ii) refined or otherwise processed at a facility located in the United States that captures up to 100 percent of the carbon dioxide emissions that would otherwise be released at the facility.

   Inserted: (B) Inclusions.--The term "clean coal-derived fuel" may include any other resource that is extracted, grown, produced, or recovered in the United States.

   Inserted: (2) Covered fuel.--The term "covered fuel" means--

   Inserted: (A) aviation fuel;

   Inserted: (B) motor vehicle fuel;

   Inserted: (C) home heating oil; and

   Inserted: (D) boiler fuel.

   Inserted: (3) Small refinery.--The term "small refinery" means a refinery for which the average aggregate daily crude oil throughput for a calendar year (as determined by dividing the aggregate throughput for the calendar year by the number of days in the calendar year) does not exceed 75,000 barrels.

   Inserted: SEC. 213. CLEAN COAL-DERIVED FUEL PROGRAM.

   Inserted: (a) Program.--

   Inserted: (1) In general.--Not later than 1 year after the date of enactment of this Act, the President shall promulgate regulations to ensure that covered fuel sold or introduced into commerce in the United States (except in noncontiguous States or territories), on an annual average basis, contains the applicable volume of clean coal-derived fuel determined in accordance with paragraph (4).

   Inserted: (2) Provisions of regulations.--Regardless of the date of promulgation, the regulations promulgated under paragraph (1)--

   Inserted: (A) shall contain compliance provisions applicable to refineries, blenders, distributors, and importers, as appropriate, to ensure that--

   Inserted: (i) the requirements of this subsection are met; and

   Inserted: (ii) clean coal-derived fuels produced from facilities for the purpose of compliance with this subtitle result in life cycle greenhouse gas emissions that are not greater than gasoline; and

   Inserted: (B) shall not--

   Inserted: (i) restrict geographic areas in the contiguous United States in which clean coal-derived fuel may be used; or

   Inserted: (ii) impose any per-gallon obligation for the use of clean coal-derived fuel.

   Inserted: (3) Relationship to other regulations.--Regulations promulgated under this paragraph shall, to the maximum extent practicable, incorporate the program structure, compliance and reporting requirements established under the final regulations promulgated to implement the renewable fuel program established by the amendment made by section 1501(a)(2) of the Energy Policy Act of 2005 (Public Law 109-58; 119 Stat. 1067).

   Inserted: (4) Applicable volume.--

   Inserted: (A) Calendar years 2015 through 2022.--For the purpose of this subsection, the applicable volume for any of calendar years 2015 through 2022 shall be determined in accordance with the following table:

   Inserted: Applicable volume of clean coal-derived fuel Calendar year: (in billions of gallons):

   Inserted: 2015............................................................0.75 2016.............................................................1.5 2017............................................................2.25 2018............................................................3.00 2019............................................................3.75 2020.............................................................4.5 2021............................................................5.25 2022.............................................................6.0.

   Inserted: (B) Calendar year 2023 and thereafter.--Subject to subparagraph (C), for the purposes of this subsection, the applicable volume for calendar year 2023 and each calendar year thereafter shall be determined by the President, in coordination with the Secretary and the Administrator of the Environmental Protection Agency, based on a review of the implementation of the program during calendar years 2015 through 2022, including a review of--

   Inserted: (i) the impact of clean coal-derived fuels on the energy security of the United States;

   Inserted: (ii) the expected annual rate of future production of clean coal-derived fuels; and

   Inserted: (iii) the impact of the use of clean coal-derived fuels on other factors, including job creation, rural economic development, and the environment.

   Inserted: (C) Minimum applicable volume.--For the purpose of this subsection, the applicable volume for calendar year 2023 and each calendar year thereafter shall be equal to the product obtained by multiplying--

   Inserted: (i) the number of gallons of covered fuel that the President estimates will be sold or introduced into commerce in the calendar year; and

   Inserted: (ii) the ratio that--

   Inserted: (I) 6,000,000,000 gallons of clean coal-derived fuel; bears to

   Inserted: (II) the number of gallons of covered fuel sold or introduced into commerce in calendar year 2022.

   Inserted: (b) Applicable Percentages.--

   Inserted: (1) Provision of estimate of volumes of certain fuel sales.--Not later than October 31 of each of calendar years 2015 through 2021, the Administrator of the Energy Information Administration shall provide to the President an estimate, with respect to the following calendar year, of the volumes of covered fuel projected to be sold or introduced into commerce in the United States.

   Inserted: (2) Determination of applicable percentages.--

   Inserted: (A) In general.--Not later than November 30 of each of calendar years 2015 through 2022, based on the estimate provided under paragraph (1), the President shall determine and publish in the Federal Register, with respect to the following calendar year, the clean coal-derived fuel obligation that ensures that the requirements of subsection (a) are met.

   Inserted: (B) Required elements.--The clean coal-derived fuel obligation determined for a calendar year under subparagraph (A) shall--

   Inserted: (i) be applicable to refineries, blenders, and importers, as appropriate;

   Inserted: (ii) be expressed in terms of a volume percentage of covered fuel sold or introduced into commerce in the United States; and

   Inserted: (iii) subject to paragraph (3)(A), consist of a single applicable percentage that applies to all categories of persons specified in clause (i).

   Inserted: (3) Adjustments.--In determining the applicable percentage for a calendar year, the President shall make adjustments--

   Inserted: (A) to prevent the imposition of redundant obligations on any person specified in paragraph (2)(B)(i); and

   Inserted: (B) to account for the use of clean coal-derived fuel during the previous calendar year by small refineries that are exempt under subsection (f).

   Inserted: (c) Volume Conversion Factors for Clean Coal-Derived Fuels Based on Energy Content.--

   Inserted: (1) In general.--For the purpose of subsection (a), the President shall assign values to specific types of clean coal-derived fuel for the purpose of satisfying the fuel volume requirements of subsection (a)(4) in accordance with this subsection.

   Inserted: (2) Energy content relative to diesel fuel.--For clean coal-derived fuels, 1 gallon of the clean coal-derived fuel shall be considered to be the equivalent of 1 gallon of diesel fuel multiplied by the ratio that--

   Inserted: (A) the number of British thermal units of energy produced by the combustion of 1 gallon of the clean coal-derived fuel (as measured under conditions determined by the Secretary); bears to

   Inserted: (B) the number of British thermal units of energy produced by the combustion of 1 gallon of diesel fuel (as measured under conditions determined by the Secretary to be comparable to conditions described in subparagraph (A)).

   Inserted: (d) Credit Program.--

   Inserted: (1) In general.--The President, in consultation with the Secretary and the clean coal-derived fuel requirement of this section.

   Inserted: (2) Market transparency.--In carrying out the credit program under this subsection, the President shall facilitate price transparency in markets for the sale and trade of credits, with due regard for the public interest, the integrity of those markets, fair competition, and the protection of consumers.

   Inserted: (e) Waivers.--

   Inserted: (1) In general.--The President, in consultation with the Secretary and the Administrator of the Environmental Protection Agency, may waive the requirements of subsection (a) in whole or in part on petition by 1 or more States by reducing the national quantity of clean coal-derived fuel required under subsection (a), based on a determination by the President (after public notice and opportunity for comment), that--

   Inserted: (A) implementation of the requirement would severely harm the economy or environment of a State, a region, or the United States; or

   Inserted: (B) extreme and unusual circumstances exist that prevent distribution of an adequate supply of domestically produced clean coal-derived fuel to consumers in the United States.

   Inserted: (2) Petitions for waivers.--The President, in consultation with the Secretary and the Administrator of the Environmental Protection Agency, shall approve or disapprove a State petition for a waiver of the requirements of subsection (a) within 90 days after the date on which the petition is received by the President.

   Inserted: (3) Termination of waivers.--A waiver granted under paragraph (1) shall terminate after 1 year, but may be renewed by the President after consultation with the Secretary and the Administrator of the Environmental Protection Agency.

   Inserted: (f) Small Refineries.--

   Inserted: (1) Temporary exemption.--

   Inserted: (A) In general.--The requirements of subsection (a) shall not apply to small refineries until calendar year 2018.

   Inserted: (B) Extension of exemption.--

   Inserted: (i) Study by secretary.--Not later than December 31, 2013, the Secretary shall submit to the President and Congress a report describing the results of a study to determine whether compliance with the requirements of subsection (a) would impose a disproportionate economic hardship on small refineries.

   Inserted: (ii) Extension of exemption.--In the case of a small refinery that the Secretary determines under clause (i) would be subject to a disproportionate economic hardship if required to comply with subsection (a), the President shall extend the exemption under subparagraph (A) for the small refinery for a period of not less than 2 additional years.

   Inserted: (2) Petitions based on disproportionate economic hardship.--

   Inserted: (A) Extension of exemption.--A small refinery may at any time petition the President for an extension of the exemption under paragraph (1) for the reason of disproportionate economic hardship.

   Inserted: (B) Evaluation of petitions.--In evaluating a petition under subparagraph (A), the President, in consultation with the Secretary, shall consider the findings of the study under paragraph (1)(B) and other economic factors.

   Inserted: (C) Deadline for action on petitions.--The President shall act on any petition submitted by a small refinery for a hardship exemption not later than 90 days after the date of receipt of the petition.

   Inserted: (3) Opt-in for small refineries.--A small refinery shall be subject to the requirements of subsection (a) if the small refinery notifies the President that the small refinery waives the exemption under paragraph (1).

   Inserted: (g) Penalties and Enforcement.--

   Inserted: (1) Civil penalties.--

   Inserted: (A) In general.--Any person that violates a regulation promulgated under subsection (a), or that fails to furnish any information required under such a regulation, shall be liable to the United States for a civil penalty of not more than the total of--

   Inserted: (i) $25,000 for each day of the violation; and

   Inserted: (ii) the amount of economic benefit or savings received by the person resulting from the violation, as determined by the President.

   Inserted: (B) Collection.--Civil penalties under subparagraph (A) shall be assessed by, and collected in a civil action brought by, the Secretary or such other officer of the United States as is designated by the President.

   Inserted: (2) Injunctive authority.--

   Inserted: (A) In general.--The district courts of the United States shall have jurisdiction to--

   Inserted: (i) restrain a violation of a regulation promulgated under subsection (a);

   Inserted: (ii) award other appropriate relief; and

   Inserted: (iii) compel the furnishing of information required under the regulation.

   Inserted: (B) Actions.--An action to restrain such violations and compel such actions shall be brought by and in the name of the United States.

   Inserted: (C) Subpoenas.--In the action, a subpoena for a witness who is required to attend a district court in any district may apply in any other district.

   Inserted: (h) Effective Date.--Except as otherwise specifically provided in this section, this section takes effect on January 1, 2016.

   Inserted: Subtitle C--Oil Shale SEC. 221. REMOVAL OF PROHIBITION ON FINAL REGULATIONS FOR COMMERCIAL LEASING PROGRAM FOR OIL SHALE RESOURCES ON PUBLIC LAND.

   Inserted: Section 433 of the Department of the Interior, Environment, and Related Agencies Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 2152) is repealed.

   Inserted: Subtitle D--Department of Defense Facilitation of Secure Domestic Fuel Development SEC. 231. PROCUREMENT AND ACQUISITION OF ALTERNATIVE FUELS.

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

   Inserted: SEC. 232. MULTIYEAR CONTRACT AUTHORITY FOR THE DEPARTMENT OF DEFENSE FOR THE PROCUREMENT OF SYNTHETIC FUELS.

   Inserted: (a) Multiyear Contracts for the Procurement of Synthetic Fuels Authorized.--

   Inserted: (1) In general.--Chapter 141 of title 10, United States Code, is amended by adding at the end the following new section:

   Inserted: "Sec. 2410r. Multiyear contract authority: purchase of synthetic fuels

   Inserted: "(a) Multiyear Contracts Authorized.--The head of an agency may enter into contracts for a period not to exceed 25 years for the purchase of synthetic fuels.

   Inserted: "(b) Definitions.--In this section:

   Inserted: "(1) The term 'head of an agency' has the meaning given that term in section 2302(1) of this title.

   Inserted: "(2) The term 'synthetic fuel' means any liquid, gas, or combination thereof that--

   Inserted: "(A) can be used as a substitute for petroleum or natural gas (or any derivative thereof, including chemical feedstocks); and

   Inserted: "(B) is produced by chemical or physical transformation of domestic sources of energy.".

   Inserted: (2) Clerical amendment.--The table of sections at the beginning of chapter 141 of such title is amended by adding at the end the following new item:

   Inserted: "2410r. Multiyear contract authority: purchase of synthetic fuels.".

   Inserted: (b) Regulations.--Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense shall prescribe regulations providing that the head of an agency may initiate a multiyear contract as authorized by section 2410r of title 10, United States Code (as added by subsection (a)), only if the head of the agency has determined in writing that--

   Inserted: (1) there is a reasonable expectation that throughout the contemplated contract period the head of the agency will request funding for the contract at the level required to avoid contract cancellation;

   Inserted: (2) the technical risks associated with the technologies for the production of synthetic fuel under the contract are not excessive; and

   Inserted: (3) the contract will contain appropriate pricing mechanisms to minimize risk to the Government from significant changes in market prices for energy.

   Inserted: (c) Limitation on Use of Authority.--No contract may be entered into under the authority in section 2410r of title 10, United States Code (as so added), until the regulations required by subsection (b) are prescribed.

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