S.Amdt. 1958

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

   Replaces the full textEverything after the enacting clause

   In S. 2204 · Placed on Calendar Senate

   SECTION 1. SHORT TITLE[inserted: ; TABLE OF CONTENTS].

   [inserted: (a) Short Title.--]This Act may be cited as the "[struck: Repeal Big Oil Tax Subsidies Act][inserted: Gas Price Relief Act of 2012]".

   Struck: TITLE I--TAX EXTENSIONS RELATING TO ENERGY

   Struck: SEC. 101. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT EXISTING HOMES.

   Struck: (a) In General.--Paragraph (2) of section 25C(g) of the Internal Revenue Code of 1986 is amended by striking "December 31, 2011" and inserting "December 31, 2012".

   Struck: (b) Effective Date.--The amendment made by this section shall apply to property placed in service after December 31, 2011.

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   Struck: SEC. 102. EXTENSION OF CREDIT FOR CERTAIN PLUG-IN ELECTRIC VEHICLES.

   Struck: (a) In General.--Subsection (f) of section 30 of the Internal Revenue Code of 1986 is amended by striking "December 31, 2011" and inserting "December 31, 2012".

   Struck: (b) Effective Date.--The amendment made by this section shall apply to vehicles acquired after December 31, 2011.

   Struck: SEC. 103. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY.

   Struck: (a) Extension.--Paragraph (2) of section 30C(g) of the Internal Revenue Code of 1986 is amended by striking "December 31, 2011." and inserting "December 31, 2012".

   Struck: (b) Effective Date.--The amendment made by this section shall apply to property placed in service after December 31, 2011.

   Struck: SEC. 104. EXTENSION OF CELLULOSIC BIOFUEL PRODUCER CREDIT.

   Struck: (a) In General.--Subparagraph (H) of section 40(b)(6) of the Internal Revenue Code of 1986 is amended to read as follows:

   Struck: "(H) Application of paragraph.--

   Struck: "(i) In general.--This paragraph shall apply with respect to qualified cellulosic biofuel production after December 31, 2008, and before January 1, 2014.

   Struck: "(ii) No carryover to certain years after expiration.--If this paragraph ceases to apply for any period by reason of clause (i), rules similar to the rules of subsection (e)(2) shall apply.".

   Struck: (b) Conforming Amendment.--

   Struck: (1) In general.--Paragraph (2) of section 40(e) of the Internal Revenue Code of 1986 is amended by striking "or subsection (b)(6)(H)".

   Struck: (2) Effective date.--The amendment made by this subsection shall take effect as if included in section 15321(b) of the Heartland, Habitat, and Horticulture Act of 2008.

   Struck: SEC. 105. ALGAE TREATED AS A QUALIFIED FEEDSTOCK FOR PURPOSES OF THE CELLULOSIC BIOFUEL PRODUCER CREDIT, ETC.

   Struck: (a) In General.--Subclause (I) of section 40(b)(6)(E)(i) of the Internal Revenue Code of 1986 is amended to read as follows:

   Struck: "(I) is derived by, or from, qualified feedstocks, and".

   Struck: (b) Qualified Feedstock; Special Rules for Algae.--Paragraph (6) of section 40(b) of the Internal Revenue Code of 1986 is amended by redesignating subparagraphs (F), (G), and (H), as amended by this Act, as subparagraphs (H), (I), and (J), respectively, and by inserting after subparagraph (E) the following new subparagraphs:

   Struck: "(F) Qualified feedstock.--For purposes of this paragraph, the term 'qualified feedstock' means--

   Struck: "(i) any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis, and

   Struck: "(ii) any cultivated algae, cyanobacteria, or lemna.

   Struck: "(G) Special rules for algae.--In the case of fuel which is derived by, or from, feedstock described in subparagraph (F)(ii) and which is sold by the taxpayer to another person for refining by such other person into a fuel which meets the requirements of subparagraph (E)(i)(II) and the refined fuel is not excluded under subparagraph (E)(iii)--

   Struck: "(i) such sale shall be treated as described in subparagraph (C)(i),

   Struck: "(ii) such fuel shall be treated as meeting the requirements of subparagraph (E)(i)(II) and as not being excluded under subparagraph (E)(iii) in the hands of such taxpayer, and

   Struck: "(iii) except as provided in this subparagraph, such fuel (and any fuel derived from such fuel) shall not be taken into account under subparagraph (C) with respect to the taxpayer or any other person.".

   Struck: (c) Algae Treated as a Qualified Feedstock for Purposes of Bonus Depreciation for Biofuel Plant Property.--

   Struck: (1) In general.--Subparagraph (A) of section 168(l)(2) of the Internal Revenue Code of 1986 is amended by striking "solely to produce cellulosic biofuel" and inserting "solely to produce second generation biofuel (as defined in section 40(b)(6)(E))".

   Struck: (2) Conforming amendments.--Subsection (l) of section 168 of such Code is amended--

   Struck: (A) by striking "cellulosic biofuel" each place it appears in the text thereof and inserting "second generation biofuel",

   Struck: (B) by striking paragraph (3) and redesignating paragraphs (4) through (8) as paragraphs (3) through (7), respectively,

   Struck: (C) by striking "Cellulosic" in the heading of such subsection and inserting "Second Generation", and

   Struck: (D) by striking "cellulosic" in the heading of paragraph (2) and inserting "second generation".

   Struck: (d) Conforming Amendments.--

   Struck: (1) Section 40 of the Internal Revenue Code of 1986, as amended by subsection (b), is amended--

   Struck: (A) by striking "cellulosic biofuel" each place it appears in the text thereof and inserting "second generation biofuel",

   Struck: (B) by striking "Cellulosic" in the headings of subsections (b)(6), (b)(6)(E), and (d)(3)(D) and inserting "Second generation", and

   Struck: (C) by striking "cellulosic" in the headings of subsections (b)(6)(C), (b)(6)(D), (b)(6)(H), (d)(6), and (e)(3) and inserting "second generation".

   Struck: (2) Clause (ii) of section 40(b)(6)(E) of such Code is amended by striking "Such term shall not" and inserting "The term 'second generation biofuel' shall not".

   Struck: (3) Paragraph (1) of section 4101(a) of such Code is amended by striking "cellulosic biofuel" and inserting "second generation biofuel".

   Struck: (e) Effective Dates.--

   Struck: (1) In general.--Except as provided in paragraph (2), the amendments made by this section shall apply to fuels sold or used after the date of the enactment of this Act.

   Struck: (2) Application to bonus depreciation.--The amendments made by subsection (c) shall apply to property placed in service after the date of the enactment of this Act.

   Struck: SEC. 106. EXTENSION OF INCENTIVES FOR BIODIESEL AND RENEWABLE DIESEL.

   Struck: (a) Credits for Biodiesel and Renewable Diesel Used as Fuel.-- Subsection (g) of section 40A of the Internal Revenue Code of 1986 is amended by striking "December 31, 2011" and inserting "December 31, 2012".

   Struck: (b) Excise Tax Credits and Outlay Payments for Biodiesel and Renewable Diesel Fuel Mixtures.--

   Struck: (1) Paragraph (6) of section 6426(c) of the Internal Revenue Code of 1986 is amended by striking "December 31, 2011" and inserting "December 31, 2012".

   Struck: (2) Subparagraph (B) of section 6427(e)(6) of such Code is amended by striking "December 31, 2011" and inserting "December 31, 2012".

   Struck: (c) Effective Date.--The amendments made by this section shall apply to fuel sold or used after December 31, 2011.

   Struck: SEC. 107. EXTENSION OF PRODUCTION CREDIT FOR REFINED COAL.

   Struck: (a) In General.--Subparagraph (B) of section 45(d)(8) of the Internal Revenue Code of 1986 is amended by striking "January 1, 2012" and inserting "January 1, 2013".

   Struck: (b) Effective Date.--The amendment made by this section shall apply to facilities placed in service after December 31, 2011.

   Struck: SEC. 108. EXTENSION OF PRODUCTION CREDIT.

   Struck: (a) In General.--Section 45(d) of the Internal Revenue Code of 1986 is amended by striking "January 1, 2014" each place it appears in paragraphs (2), (3), (4), (6), (7), (9), and (11) and inserting "January 1, 2015".

   Struck: (b) Wind Facilities.--Paragraph (1) of section 45(d) of the Internal Revenue Code of 1986 is amended by striking "January 1, 2013" and inserting "January 1, 2014".

   Struck: (c) Increased Credit Amount for Indian Coal Facilities Placed in Service Before 2009.--Subparagraph (A) of section 45(e)(10) of the Internal Revenue Code of 1986 is amended by striking "7-year period" each place it appears and inserting "8-year period".

   Struck: (d) Conforming Amendments.--Subsection (e) of section 1603 of division B of the American Recovery and Reinvestment Act of 2009 is amended--

   Struck: (1) by striking "January 1, 2013" in paragraph (1) and inserting "January 1, 2014", and

   Struck: (2) by striking "January 1, 2014" in paragraph (2) and inserting "January 1, 2015".

   Struck: (e) Effective Dates.--

   Struck: (1) In general.--Except as provided in paragraph (2), the amendments made by this section shall apply to facilities placed in service after December 31, 2012.

   Struck: (2) Indian coal.--The amendment made by subsection (c) shall take effect on the date of the enactment of this Act.

   Struck: SEC. 109. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT NEW HOMES.

   Struck: (a) In General.--Subsection (g) of section 45L of the Internal Revenue Code of 1986 is amended by striking "December 31, 2011" and inserting "December 31, 2012".

   Struck: (b) Effective Date.--The amendment made by this section shall apply to homes acquired after December 31, 2011.

   Struck: SEC. 110. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT APPLIANCES.

   Struck: (a) In General.--Section 45M(b) of the Internal Revenue Code of 1986 is amended by striking "2011" each place it appears other than in the provisions specified in subsection (b), and inserting "2011 or 2012".

   Struck: (b) Provisions Specified.--The provisions of section 45M(b) of the Internal Revenue Code of 1986 specified in this subsection are subparagraph (C) of paragraph (1) and subparagraph (E) of paragraph (2).

   Struck: (c) Effective Date.--The amendments made by this section shall apply to appliances produced after December 31, 2011.

   Struck: SEC. 111. EXTENSION OF ELECTION OF INVESTMENT TAX CREDIT IN LIEU OF PRODUCTION CREDIT.

   Struck: (a) In General.--Clause (ii) of section 48(a)(5)(C) of the Internal Revenue Code of 1986 is amended by striking "or 2013" and inserting "2013, or 2014".

   Struck: (b) Wind Facilities.--Clause (i) of section 48(a)(5)(C) of the Internal Revenue Code of 1986 is amended by striking "Any qualified facility" and all that follows and inserting "Any facility which is--

   Struck: "(I) a qualified facility (within the meaning of section 45) described in paragraph (1) of section 45(d) if such facility is placed in service in 2009, 2010, 2011, 2012, or 2013, or

   Struck: "(II) a qualifying offshore wind facility, if such facility is placed in service in 2012, 2013, or 2014.".

   Struck: (c) Qualifying Offshore Wind Facility.--Paragraph (5) of section 48(a) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

   Struck: "(E) Qualifying offshore wind facility.--For purposes of this paragraph--

   Struck: "(i) In general.--The term 'qualifying offshore wind facility' means an offshore facility using wind to produce electricity.

   Struck: "(ii) Offshore facility.--The term 'offshore facility' means any facility located in the inland navigable waters of the United States, including the Great Lakes, or in the coastal waters of the United States, including the territorial seas of the United States, the exclusive economic zone of the United States, and the Outer Continental Shelf of the United States. For purposes of the preceding sentence, the term 'United States' has the meaning given in section 638(1).".

   Struck: (d) Effective Date.--The amendments made by this section shall apply to facilities placed in service after December 31, 2011.

   Struck: SEC. 112. EXPANSION OF QUALIFYING ADVANCED ENERGY PROJECT CREDIT.

   Struck: (a) In General.--Subparagraph (B) of section 48C(d)(1) of the Internal Revenue Code of 1986 is amended by striking "$2,300,000,000" and inserting "$4,600,000,000".

   Struck: (b) Effective Date.--The amendment made by this section shall take effect on the date of the enactment of this Act.

   Struck: SEC. 113. EXTENSION OF SPECIAL ALLOWANCE FOR CELLULOSIC BIOFUEL PLANT PROPERTY.

   Struck: (a) In General.--Subparagraph (D) of section 168(l)(2) of the Internal Revenue Code of 1986 is amended by striking "January 1, 2013" and inserting "January 1, 2014".

   Struck: (b) Conforming Amendment.--Paragraph (4) of section 168(l) of the Internal Revenue Code of 1986, as redesignated by this Act, is amended--

   Struck: (1) by striking "and" at the end of subparagraph (A),

   Struck: (2) by redesignating subparagraph (B) as subparagraph (C), and

   Struck: (3) by inserting after subparagraph (A) the following new subparagraph:

   Struck: "(B) by substituting 'January 1, 2014' for 'January 1, 2013' in clause (i) thereof, and".

   Struck: SEC. 114. EXTENSION OF SUSPENSION OF LIMITATION ON PERCENTAGE DEPLETION FOR OIL AND GAS FROM MARGINAL WELLS.

   Struck: (a) In General.--Clause (ii) of section 613A(c)(6)(H) of the Internal Revenue Code of 1986 is amended by striking "January 1, 2012" and inserting "January 1, 2013".

   Struck: (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2011.

   Struck: SEC. 115. EXTENSION OF ALTERNATIVE FUELS EXCISE TAX CREDITS.

   Struck: (a) In General.--Sections 6426(d)(5), 6426(e)(3), and 6427(e)(6)(C) of the Internal Revenue Code of 1986 are each amended by striking "December 31, 2011" and inserting "December 31, 2012".

   Struck: (b) Effective Date.--The amendments made by this section shall apply to fuel sold or used after December 31, 2011.

   Struck: SEC. 116. EXTENSION OF GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF TAX CREDITS.

   Struck: (a) In General.--Subsection (a) of section 1603 of division B of the American Recovery and Reinvestment Act of 2009, as amended by section 707 of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, is amended--

   Struck: (1) by striking "or 2011" in paragraph (1) and inserting "2011, or 2012", and

   Struck: (2) in paragraph (2)--

   Struck: (A) by striking "after 2011" and inserting "after 2012", and

   Struck: (B) by striking "or 2011" and inserting "2011, or 2012".

   Struck: (b) Conforming Amendment.--Subsection (j) of section 1603 of division B of such Act, as so amended, is amended by striking "2012" and inserting "2013".

   Struck: (c) Effective Date.--The amendments made by this section shall apply to property placed in service after December 31, 2011.

   Struck: SEC. 117. EXTENSION OF MINE RESCUE TEAM TRAINING CREDIT.

   Struck: (a) In General.--Subsection (e) of section 45N of the Internal Revenue Code of 1986 is amended by striking "December 31, 2011" and inserting "December 31, 2012".

   Struck: (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2011.

   Struck: SEC. 118. EXTENSION OF ELECTION TO EXPENSE MINE SAFETY EQUIPMENT.

   Struck: (a) In General.--Subsection (g) of section 179E of the Internal Revenue Code of 1986 is amended by striking "December 31, 2011" and inserting "December 31, 2012".

   Struck: (b) Effective Date.--The amendment made by this section shall apply to property placed in service after December 31, 2011.

   Struck: TITLE II--REPEAL OF OIL AND GAS SUBSIDIES

   Struck: Subtitle A--Close Big Oil Tax Loopholes

   Struck: SEC. 201. MODIFICATIONS OF FOREIGN TAX CREDIT RULES APPLICABLE TO MAJOR INTEGRATED OIL COMPANIES WHICH ARE DUAL CAPACITY TAXPAYERS.

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

   Inserted: Sec. 1. Short title; table of contents.

   Inserted: TITLE I--CONSUMER GAS PRICE RELIEF

   Inserted: Sec. 101. Reduction of fuel taxes on highway motor fuels.

   Inserted: TITLE II--INCREASING DOMESTIC TRANSPORTATION FUEL PRODUCTION

   Inserted: Subtitle A--Outer Continental Shelf Leasing

   Inserted: Sec. 201. Leasing program considered approved.

   Inserted: Sec. 202. Lease sales.

   Inserted: Sec. 203. Coastal Impact assistance program amendments.

   Inserted: Sec. 204. Seaward boundaries of States.

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

   Inserted: Sec. 211. Definitions.

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   Inserted: Sec. 212. Leasing program for land within the Coastal Plain.

   Inserted: Sec. 213. Lease sales.

   Inserted: Sec. 214. Grant of leases by the Secretary.

   Inserted: Sec. 215. Lease terms and conditions.

   Inserted: Sec. 216. Coastal plain environmental protection.

   Inserted: Sec. 217. Expedited judicial review.

   Inserted: Sec. 218. Federal and State distribution of revenues.

   Inserted: Sec. 219. Rights-of-way across the Coastal plain.

   Inserted: Sec. 220. Conveyance.

   Inserted: Sec. 221. Local government impact aid and community service assistance.

   Inserted: Subtitle C--Approval of Keystone XL Pipeline Project

   Inserted: Sec. 231. Approval of Keystone XL pipeline project.

   Inserted: TITLE III--CLOSING LOOPHOLES TO FUND CONSUMER RELIEF AT THE PUMP

   Inserted: Sec. 301. Modifications of foreign tax credit rules applicable to major integrated oil companies which are dual capacity taxpayers.

   Inserted: Sec. 302. Limitation on section 199 deduction attributable to oil, natural gas, or primary products thereof.

   Inserted: Sec. 303. Limitation on deduction for intangible drilling and development costs.

   Inserted: Sec. 304. Transfer of revenues to Highway Trust Fund.

   Inserted: TITLE I--CONSUMER GAS PRICE RELIEF

   Inserted: SEC. 101. REDUCTION OF FUEL TAXES ON HIGHWAY MOTOR FUELS.

   Inserted: (a) Taxable Fuels.--

   Inserted: (1) In general.--Subparagraph (A) of section 4081(a)(2) of the Internal Revenue Code of 1986 is amended--

   Inserted: (A) by striking "18.3 cents" in clause (i) and inserting "17.3 cents",

   Inserted: (B) by striking "and" at the end of clause (ii), and

   Inserted: (C) by striking clause (iii) and inserting the following new clauses:

   Inserted: "(iii) in the case of aviation-grade kerosene, 24.3 cents per gallon, and

   Inserted: "(iv) in the case of diesel fuel or kerosene not described in clause (iii), 23.3 cents per gallon".

   Inserted: (2) Conforming amendment.--Subparagraph (D) of section 4081(a)(2) of such Code is amended by striking "subparagraph (A)(iii) shall be applied by substituting '19.7 cents' for '24.3 cents' " and inserting "subparagraph (A)(iv) shall be applied by substituting '17.7 cents' for '23.3 cents' ".

   Inserted: (3) Floor stock refunds.--

   Inserted: (A) In general.--If--

   Inserted: (i) before the tax reduction date, tax has been imposed under section 4081 of the Internal Revenue Code of 1986 on any highway motor fuel, and

   Inserted: (ii) on such date such fuel is held by a dealer and has not been used and is intended for sale, there shall be credited or refunded (without interest) to the person who paid such tax (hereafter in this subsection referred to as the "taxpayer") an amount equal to the excess of the tax paid by the taxpayer over the tax which would be imposed on such fuel had the taxable event occurred on such date.

   Inserted: (B) Time for filing claims.--No credit or refund shall be allowed or made under this subsection unless--

   Inserted: (i) claim therefor is filed with the Secretary of the Treasury before the date which is 6 months after the tax reduction date based on a request submitted to the taxpayer before the date which is 3 months after the tax date by the dealer who held the highway motor fuel on such date, and

   Inserted: (ii) the taxpayer has repaid or agreed to repay the amount so claimed to such dealer or has obtained the written consent of such dealer to the allowance of the credit or the making of the refund.

   Inserted: (C) Exception for fuel held in retail stocks.--No credit or refund shall be allowed under this subsection with respect to any highway motor fuel in retail stocks held at the place where intended to be sold at retail.

   Inserted: (D) Definitions.--For purposes of this subsection--

   Inserted: (i) Tax reduction date.--The term "tax reduction date" means the date of enactment of this Act.

   Inserted: (ii) Other terms.--The terms "dealer" and "held by a dealer" have the respective meanings given to such terms by section 6412 of such Code.

   Inserted: (E) Certain rules to apply.--Rules similar to the rules of subsections (b) and (c) of section 6412 of such Code shall apply for purposes of this subsection.

   Inserted: (b) Retail Tax on Special Fuels.--

   Inserted: (1) School buses.--Subclause (I) of section 4041(a)(1)(C)(iii) of the Internal Revenue Code of 1986 is amended by striking "7.3 cents" and inserting "6.3 cents".

   Inserted: (2) Certain alternative fuels.--Clause (ii) of section 4041(a)(2)(B) of such Code is amended by striking "24.3 cents" and inserting "23.3 cents".

   Inserted: (3) Compressed natural gas.--Subparagraph (A) of section 4041(a)(3) of such Code is amended by striking "18.3 cents" and inserting "17.3 cents".

   Inserted: (4) Certain alcohol fuels.--Subparagraph (A) of section 4041(m) of such Code is amended--

   Inserted: (A) by striking "9.15 cents" in clause (i) and inserting "8.15 cents", and

   Inserted: (B) by striking "11.3 cents" in clause (ii) and inserting "10.3 cents".

   Inserted: (c) Effective Date.--The amendment made by this section shall take effect on the date of the enactment of this Act.

   Inserted: (d) Sense of the Senate Regarding Consumer Relief.--It is the sense of the Senate that the reduction in tax rates under the amendments made by this section is for the purpose of lowering consumer gas prices.

   Inserted: TITLE II--INCREASING DOMESTIC TRANSPORTATION FUEL PRODUCTION

   Inserted: Subtitle A--Outer Continental Shelf Leasing SEC. 201. LEASING PROGRAM CONSIDERED APPROVED.

   Inserted: (a) In General.--The Draft Proposed Outer Continental Shelf Oil and Gas Leasing Program 2010 2015 issued by the Secretary of the Interior (referred to in this section as the "Secretary") under section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 1344) is considered to have been approved by the Secretary as a final oil and gas leasing program under that section.

   Inserted: (b) Final Environmental Impact Statement.--The Secretary is considered to have issued a final environmental impact statement for the program described in subsection (a) in accordance with all requirements under section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)).

   Inserted: (c) Exceptions.--Notwithstanding subsections (a) and (b), lease sales 214, 232, and 239 shall not be included in the final leasing program for 2013-2018.

   Inserted: SEC. 202. LEASE SALES.

   Inserted: (a) Outer Continental Shelf.--

   Inserted: (1) In general.--Except as provided in paragraph (2), not later than 30 days after the date of enactment of this Act and every 270 days thereafter, the Secretary of the Interior (referred to in this section as the "Secretary") shall conduct a lease sale in each outer Continental Shelf planning area for which the Secretary determines that there is a commercial interest in purchasing Federal oil and gas leases for production on the outer Continental Shelf.

   Inserted: (2) Subsequent determinations and sales.--If the Secretary determines that there is not a commercial interest in purchasing Federal oil and gas leases for production on the outer Continental Shelf in a planning area under this subsection, not later than 2 years after the date of enactment of the determination and every 2 years thereafter, the Secretary shall--

   Inserted: (A) determine whether there is a commercial interest in purchasing Federal oil and gas leases for production on the outer Continental Shelf in the planning area; and

   Inserted: (B) if the Secretary determines that there is a commercial interest described in subparagraph (A), conduct a lease sale in the planning area.

   Inserted: (b) Renewable Energy and Mariculture.--The Secretary may conduct commercial lease sales of resources owned by United States--

   Inserted: (1) to produce renewable energy (as defined in section 203(b) of the Energy Policy Act of 2005 (42 U.S.C. 15852(b))); or

   Inserted: (2) to cultivate marine organisms in the natural habitat of the organisms.

   Inserted: SEC. 203. COASTAL IMPACT ASSISTANCE PROGRAM AMENDMENTS.

   Inserted: Section 31 of the Outer Continental Shelf Lands Act (43 U.S.C. 1356a) is amended--

   Inserted: (1) in subsection (c), by adding at the end the following:

   Inserted: "(5) Application requirements; availability of funding.--On approval of a plan by the Secretary under this section, the producing State shall--

   Inserted: "(A) not be subject to any additional application or other requirements (other than notifying the Secretary of which projects are being carried out under the plan) to receive the payments; and

   Inserted: "(B) be immediately eligible to receive payments under this section."; and

   Inserted: (2) by adding at the end the following:

   Inserted: "(e) Funding.--

   Inserted: "(1) Streamlining.--

   Inserted: "(A) Report.--Not later than 180 days after the date of enactment of this subsection, the Secretary of the Interior (acting through the Director of the Minerals Management Service) (referred to in this subsection as the 'Secretary') shall develop a plan that addresses streamlining the process by which payments are made under this section, including recommendations for--

   Inserted: "(i) decreasing the time required to approve plans submitted under subsection (c)(1);

   Inserted: "(ii) ensuring that allocations to producing States under subsection (b) are adequately funded; and

   Inserted: "(iii) any modifications to the authorized uses for payments under subsection (d).

   Inserted: "(B) Clean water.--Not later than 180 days after the date of enactment of this subsection, the Secretary and the Administrator of the Environmental Protection Agency shall jointly develop procedures for streamlining the permit process required under the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.) and State laws for restoration projects that are included in an approved plan under subsection (c).

   Inserted: "(C) Environmental requirements.--A project funded under this section that does not involve wetlands shall not be subject to environmental review requirements under Federal law.

   Inserted: "(2) Cost-sharing requirements.--Any amounts made available to producing States under this section may be used to meet the cost-sharing requirements of other Federal grant programs, including grant programs that support coastal wetland protection and restoration.

   Inserted: "(3) Expedited funding.--Not later than 180 days after the date of enactment of this subsection, the Secretary shall develop a procedure to provide expedited funding to projects under this section based on estimated revenues to ensure that the projects may--

   Inserted: "(A) secure additional funds from other sources; and

   Inserted: "(B) use the amounts made available under this section on receipt.".

   Inserted: SEC. 204. SEAWARD BOUNDARIES OF STATES.

   Inserted: (a) Seaward Boundaries.--Section 4 of the Submerged Lands Act (43 U.S.C. 1312) is amended by striking "three geographical miles" each place it appears and inserting "12 nautical miles".

   Inserted: (b) Conforming Amendments.--Section 2 of the Submerged Lands Act (43 U.S.C. 1301) is amended--

   Inserted: (1) in subsection (a)(2), by striking "three geographical miles" and inserting "12 nautical miles"; and

   Inserted: (2) in subsection (b)--

   Inserted: (A) by striking "three geographical miles" and inserting "12 nautical miles"; and

   Inserted: (B) by striking "three marine leagues" and inserting "12 nautical miles".

   Inserted: (c) Effect of Amendments.--

   Inserted: (1) In general.--Subject to paragraphs (2) through (4), the amendments made by this section shall not effect Federal oil and gas mineral rights.

   Inserted: (2) Submerged land.--Submerged land within the seaward boundaries of States shall be--

   Inserted: (A) subject to Federal oil and gas mineral rights to the extent provided by law;

   Inserted: (B) considered to be part of the Federal outer Continental Shelf for purposes of the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.); and

   Inserted: (C) subject to leasing under the authority of that Act and to laws applicable to the leasing of the oil and gas resources of the Federal outer Continental Shelf.

   Inserted: (3) Existing leases.--The amendments made by this section shall not affect any Federal oil and gas lease in effect on the date of enactment of this Act.

   Inserted: (4) Taxation.--

   Inserted: (A) In general.--Subject to subparagraph (B), a State may exercise all of the sovereign powers of taxation of the State within the entire extent of the seaward boundaries of the State (as extended by the amendments made by this section).

   Inserted: (B) Limitation.--Nothing in this paragraph affects the authority of a State to tax any Federal oil and gas lease in effect on the date of enactment of this Act.

   Inserted: Subtitle B--Leasing Program for Land Within Coastal Plain SEC. 211. 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.

   Inserted: SEC. 212. LEASING PROGRAM FOR LAND WITHIN THE COASTAL PLAIN.

   Inserted: (a) In General.--The Secretary shall take such actions as are necessary--

   Inserted: (1) to establish and implement, in accordance with this subtitle, a competitive oil and gas leasing program that will result in an environmentally sound program for the exploration, development, and production of the oil and gas resources of the Coastal Plain; and

   Inserted: (2) to administer this subtitle through regulations, lease terms, conditions, restrictions, prohibitions, stipulations, and other provisions that--

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

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

   Inserted: (b) Repeal.--

   Inserted: (1) Repeal.--Section 1003 of the Alaska National Interest Lands Conservation Act of 1980 (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: (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: (c) Relationship to State and Local Authority.--Nothing in this subtitle expands or limits any State or local regulatory authority.

   Inserted: (d) 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 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: (e) 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: (f) Regulations.--

   Inserted: (1) In general.--Not later than 15 months after the date of enactment of this Act, the Secretary shall promulgate such regulations as are necessary to carry out this subtitle, including rules and regulations relating to protection of the fish and wildlife, fish and wildlife habitat, subsistence resources, and environment of the Coastal Plain.

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

   Inserted: SEC. 213. 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 90 days after the date of the completion of the sale, evaluate the bids in the sale and issue leases resulting from the sale; and

   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. 214. GRANT OF LEASES BY THE SECRETARY.

   Inserted: (a) In General.--On payment by a lessee of such bonus as may be accepted by the Secretary, the Secretary may grant to the highest responsible qualified bidder in a lease sale conducted pursuant to section 213 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. 215. LEASE TERMS AND CONDITIONS.

   Inserted: An oil or gas lease issued pursuant to this subtitle shall--

   Inserted: (1) provide for the payment of a royalty of not less than 12\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) on 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 212(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 the regulations promulgated under this subtitle.

   Inserted: SEC. 216. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

   Inserted: (a) No Significant Adverse Effect Standard To Govern Authorized Coastal Plain Activities.--In accordance with section 212, 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 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 shall occur after consultation with the 1 or more agencies having jurisdiction over matters mitigated by the plan.

   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, 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 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. 217. 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), by not later than 90 days after the date on which the complainant knew or reasonably should have known about the grounds for the complaint.

   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 Circuit.

   Inserted: (3) Scope.--

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

   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. 218. FEDERAL AND STATE DISTRIBUTION OF REVENUES.

   Inserted: (a) In General.--Notwithstanding any other provision of law, of the amount of adjusted bonus, rental, and royalty revenues from Federal oil and gas leasing and operations authorized under this subtitle for each fiscal year--

   Inserted: (1) 50 percent shall be paid to the State of Alaska; and

   Inserted: (2) except as provided in section 221(d), the balance shall be deposited in the Treasury and used for Federal budget deficit reduction.

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

   Inserted: SEC. 219. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.

   Inserted: (a) In General.--The Secretary shall issue rights-of-way and easements across the Coastal Plain for the transportation of oil and gas--

   Inserted: (1) except as provided in paragraph (2), under section 28 of the Mineral Leasing Act (30 U.S.C. 185), without regard to title XI of the Alaska National Interest Lands Conservation Act (16 U.S.C. 3161 et seq.); and

   Inserted: (2) under title XI of the Alaska National Interest Lands Conservation Act (16 U.S.C. 3161 et seq.), for access authorized by sections 1110 and 1111 of that Act (16 U.S.C. 3170, 3171).

   Inserted: (b) Terms and Conditions.--The Secretary shall include in any right-of-way or easement issued under subsection (a) such terms and conditions as may be necessary to ensure that transportation of oil and gas does not result in a significant adverse effect on the fish and wildlife, subsistence resources, their habitat, and the environment of the Coastal Plain, including requirements that facilities be sited or designed so as to avoid unnecessary duplication of roads and pipelines.

   Inserted: (c) Regulations.--The Secretary shall include in regulations under section 212(f) provisions granting rights-of-way and easements described in subsection (a).

   Inserted: SEC. 220. 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. 221. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE ASSISTANCE.

   Inserted: (a) Financial Assistance Authorized.--

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

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

   Inserted: (b) Use of Assistance.--Financial assistance under this section may be used only--

   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; and

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

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

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

   Inserted: (c) Application.--

   Inserted: (1) In general.--Any community that is eligible for assistance under this section may submit an application for such assistance to the Secretary, in such form and under such procedures as the Secretary may prescribe by regulation.

   Inserted: (2) North slope borough communities.--A community located in the North Slope Borough may apply for assistance under this section either directly to the Secretary or through the North Slope Borough.

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

   Inserted: (d) Establishment of Fund.--

   Inserted: (1) In general.--There is established in the Treasury the "Coastal Plain Local Government Impact Aid Assistance Fund" (referred to in this section as the "Fund").

   Inserted: (2) Use.--Amounts in the Fund may be used only for providing financial assistance under this section.

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

   Inserted: (4) Limitation on deposits.--The total amount in the Fund may not exceed $11,000,000.

   Inserted: (5) Investment of balances.--The Secretary of the Treasury shall invest amounts in the Fund in interest bearing government securities.

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

   Inserted: Subtitle C--Approval of Keystone XL Pipeline Project SEC. 231. APPROVAL OF KEYSTONE XL PIPELINE PROJECT.

   Inserted: (a) Approval of Cross-border Facilities.--

   Inserted: (1) In general.--In accordance with section 8 of article 1 of the Constitution (delegating to Congress the power to regulate commerce with foreign nations), TransCanada Keystone Pipeline, L.P. is authorized to construct, connect, operate, and maintain pipeline facilities, subject to subsection (c), for the import of crude oil and other hydrocarbons at the United States-Canada Border at Phillips County, Montana, in accordance with the application filed with the Department of State on September 19, 2008 (as supplemented and amended).

   Inserted: (2) Permit.--Notwithstanding any other provision of law, no permit pursuant to Executive Order 13337 (3 U.S.C. 301 note) or any other similar Executive Order regulating construction, connection, operation, or maintenance of facilities at the borders of the United States, and no additional environmental impact statement, shall be required for TransCanada Keystone Pipeline, L.P. to construct, connect, operate, and maintain the facilities described in paragraph (1).

   Inserted: (b) Construction and Operation of Keystone XL Pipeline in United States.--

   Inserted: (1) In general.--The final environmental impact statement issued by the Department of State on August 26, 2011, shall be considered to satisfy all requirements of the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and any other provision of law that requires Federal agency consultation or review with respect to the cross-border facilities described in subsection (a)(1) and the related facilities in the United States described in the application filed with the Department of State on September 19, 2008 (as supplemented and amended).

   Inserted: (2) Permits.--Any Federal permit or authorization issued before the date of enactment of this Act for the cross-border facilities described in subsection (a)(1), and the related facilities in the United States described in the application filed with the Department of State on September 19, 2008 (as supplemented and amended), shall remain in effect.

   Inserted: (c) Conditions.--In constructing, connecting, operating, and maintaining the cross-border facilities described in subsection (a)(1) and related facilities in the United States described in the application filed with the Department of State on September 19, 2008 (as supplemented and amended), TransCanada Keystone Pipeline, L.P. shall comply with the following conditions:

   Inserted: (1) TransCanada Keystone Pipeline, L.P. shall comply with all applicable Federal and State laws (including regulations) and all applicable industrial codes regarding the construction, connection, operation, and maintenance of the facilities.

   Inserted: (2) Except as provided in subsection (a)(2), TransCanada Keystone Pipeline, L.P. shall comply with all requisite permits from Canadian authorities and applicable Federal, State, and local government agencies in the United States.

   Inserted: (3) TransCanada Keystone Pipeline, L.P. shall take all appropriate measures to prevent or mitigate any adverse environmental impact or disruption of historic properties in connection with the construction, connection, operation, and maintenance of the facilities.

   Inserted: (4) The construction, connection, operation, and maintenance of the facilities shall be--

   Inserted: (A) in all material respects, similar to that described in--

   Inserted: (i) the application filed with the Department of State on September 19, 2008 (as supplemented and amended); and

   Inserted: (ii) the final environmental impact statement described in subsection (b)(1); and

   Inserted: (B) carried out in accordance with--

   Inserted: (i) the construction, mitigation, and reclamation measures agreed to for the project in the construction mitigation and reclamation plan contained in appendix B of the final environmental impact statement described in subsection (b)(1);

   Inserted: (ii) the special conditions agreed to between the owners and operators of the project and the Administrator of the Pipeline and Hazardous Materials Safety Administration of the Department of Transportation, as contained in appendix U of the final environmental impact statement;

   Inserted: (iii) the measures identified in appendix H of the final environmental impact statement, if the modified route submitted by the State of Nebraska to the Secretary of State crosses the Sand Hills region; and

   Inserted: (iv) the stipulations identified in appendix S of the final environmental impact statement.

   Inserted: (d) Route in Nebraska.--

   Inserted: (1) In general.--Any route and construction, mitigation, and reclamation measures for the project in the State of Nebraska that is identified by the State of Nebraska and submitted to the Secretary of State under this section is considered sufficient for the purposes of this section.

   Inserted: (2) Prohibition.--Construction of the facilities in the United States described in the application filed with the Department of State on September 19, 2008 (as supplemented and amended), shall not commence in the State of Nebraska until the date on which the Secretary of State receives a route for the project in the State of Nebraska that is identified by the State of Nebraska.

   Inserted: (3) Receipt.--On the date of receipt of the route described in paragraph (1) by the Secretary of State, the route for the project within the State of Nebraska under this section shall supersede the route for the project in the State specified in the application filed with the Department of State on September 19, 2008 (including supplements and amendments).

   Inserted: (4) Cooperation.--Not later than 30 days after the date on which the State of Nebraska submits a request to the Secretary of State or any appropriate Federal official, the Secretary of State or Federal official shall provide assistance that is consistent with the law of the State of Nebraska.

   Inserted: (e) Administration.--

   Inserted: (1) In general.--Any action taken to carry out this section (including the modification of any route under subsection (d)) shall not constitute a major Federal action under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

   Inserted: (2) State siting authority.--Nothing in this section alters any provision of State law relating to the siting of pipelines.

   Inserted: (3) Private property.--Nothing in this section alters any Federal, State, or local process or condition in effect on the date of enactment of this Act that is necessary to secure access from an owner of private property to construct the project.

   Inserted: (f) Federal Judicial Review.--The cross-border facilities described in subsection (a)(1), and the related facilities in the United States described in the application filed with the Department of State on September 19, 2008 (as supplemented and amended), that are approved by this section, and any permit, right-of-way, or other action taken to construct or complete the project pursuant to Federal law, shall only be subject to judicial review on direct appeal to the United States Court of Appeals for the District of Columbia Circuit.

   Inserted: TITLE III--CLOSING LOOPHOLES TO FUND CONSUMER RELIEF AT THE PUMP

   Inserted: SEC. 301. MODIFICATIONS OF FOREIGN TAX CREDIT RULES APPLICABLE TO MAJOR INTEGRATED OIL COMPANIES WHICH ARE DUAL CAPACITY TAXPAYERS.

   (a) In General.--Section 901 of the Internal Revenue Code of 1986 is amended by redesignating subsection (n) as subsection (o) and by inserting after subsection (m) the following new subsection:

   "(n) Special Rules Relating to Major Integrated Oil Companies Which Are Dual Capacity Taxpayers.--

   "(1) General rule.--Notwithstanding any other provision of this chapter, any amount paid or accrued by a dual capacity taxpayer which is a major integrated oil company (as defined in section 167(h)(5)(B)) to a foreign country or possession of the United States [struck: for any period ]shall not be considered a tax--

   "(A) if, for such period, the foreign country or possession does not impose a generally applicable income tax, or

   "(B) to the extent such amount exceeds the amount (determined in accordance with regulations) which--

   "(i) is paid by such dual capacity taxpayer pursuant to the generally applicable income tax imposed by the country or possession, or

   "(ii) would be paid if the generally applicable income tax imposed by the country or possession were applicable to such dual capacity taxpayer.[struck: Nothing in this paragraph shall be construed to imply the proper treatment of any such amount not in excess of the amount determined under subparagraph (B).]

   Inserted: Nothing in this paragraph shall be construed to imply the proper treatment of any such amount not in excess of the amount determined under subparagraph (B).

   "(2) Dual capacity taxpayer.--For purposes of this subsection, the term 'dual capacity taxpayer' means, with respect to any foreign country or possession of the United States, a person who--

   "(A) is subject to a levy of such country or possession, and

   7 unchanged paragraphsHide unchanged text

   "(B) receives (or will receive) directly or indirectly a specific economic benefit (as determined in accordance with regulations) from such country or possession.

   "(3) Generally applicable income tax.--For purposes of this subsection--

   "(A) In general.--The term 'generally applicable income tax' means an income tax (or a series of income taxes) which is generally imposed under the laws of a foreign country or possession on income derived from the conduct of a trade or business within such country or possession.

   "(B) Exceptions.--Such term shall not include a tax unless it has substantial application, by its terms and in practice, to--

   "(i) persons who are not dual capacity taxpayers, and

   "(ii) persons who are citizens or residents of the foreign country or possession.".

   (b) Effective Date.--

   (1) In general.--The amendments made by this section shall apply to taxes paid or accrued in taxable years beginning after the date of the enactment of this Act.

   (2) Contrary treaty obligations upheld.--The amendments made by this section shall not apply to the extent contrary to any treaty obligation of the United States.

   SEC. [struck: 202][inserted: 302]. LIMITATION ON SECTION 199 DEDUCTION ATTRIBUTABLE TO OIL, NATURAL GAS, OR PRIMARY PRODUCTS THEREOF.

   (a) Denial of Deduction.--Paragraph (4) of section 199(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

   "(E) Special rule for certain oil and gas income.--In the case of any taxpayer who is a major integrated oil company (as defined in section 167(h)(5)(B)) for the taxable year, the term 'domestic production gross receipts' shall not include gross receipts from the production, transportation, or distribution of oil, natural gas, or any primary product (within the meaning of subsection (d)(9)) thereof.".

   (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2011.

   SEC. [struck: 203][inserted: 303]. LIMITATION ON DEDUCTION FOR INTANGIBLE DRILLING AND DEVELOPMENT COSTS.

   (a) In General.--Section 263(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: "This subsection shall not apply to amounts paid or incurred by a taxpayer in any taxable year in which such taxpayer is a major integrated oil company (as defined in section 167(h)(5)(B)).".

   (b) Effective Date.--The amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2011.

   Struck: SEC. 204. LIMITATION ON PERCENTAGE DEPLETION ALLOWANCE FOR OIL AND GAS WELLS.

   Inserted: SEC. 304. TRANSFER OF REVENUES TO HIGHWAY TRUST FUND.

   [inserted: Subsection ]([struck: a][inserted: b]) [struck: In General.--Section 613A][inserted: of section 9503] of the Internal Revenue Code of 1986 is amended by adding at the end the following new [struck: subsection][inserted: paragraph]:

   Struck: "(f) Application With Respect to Major Integrated Oil Companies.-- In the case of any taxable year in which the taxpayer is a major integrated oil company (as defined in section 167(h)(5)(B)), the allowance for percentage depletion shall be zero.".

   Struck: (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2011.

   Struck: SEC. 205. LIMITATION ON DEDUCTION FOR TERTIARY INJECTANTS.

   Struck: (a) In General.--Section 193 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

   Show 11 more struck paragraphsShow less

   Struck: "(d) Application With Respect to Major Integrated Oil Companies.-- This section shall not apply to amounts paid or incurred by a taxpayer in any taxable year in which such taxpayer is a major integrated oil company (as defined in section 167(h)(5)(B)).".

   Struck: (b) Effective Date.--The amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2011.

   Struck: Subtitle B--Outer Continental Shelf Oil and Natural Gas

   Struck: SEC. 211. REPEAL OF OUTER CONTINENTAL SHELF DEEP WATER AND DEEP GAS ROYALTY RELIEF.

   Struck: (a) In General.--Sections 344 and 345 of the Energy Policy Act of 2005 (42 U.S.C. 15904, 15905) are repealed.

   Struck: (b) Administration.--The Secretary of the Interior shall not be required to provide for royalty relief in the lease sale terms beginning with the first lease sale held on or after the date of enactment of this Act for which a final notice of sale has not been published.

   Struck: TITLE III--BUDGETARY EFFECTS

   Struck: SEC. 301. DEFICIT REDUCTION.

   Struck: The net amount of any savings realized as a result of the enactment of this Act and the amendments made by this Act (after any expenditures authorized by this Act and the amendments made by this Act) shall be deposited in the Treasury and used for Federal budget deficit reduction or, if there is no Federal budget deficit, for reducing the Federal debt in such manner as the Secretary of the Treasury considers appropriate.

   Struck: SEC. 302. BUDGETARY EFFECTS.

   Struck: The budgetary effects of this Act, for the purpose of complying with the Statutory Pay-As-You-Go Act of 2010, shall be determined by reference to the latest statement titled "Budgetary Effects of PAYGO Legislation" for this Act, submitted for printing in the Congressional Record by the Chairman of the Senate Budget Committee, provided that such statement has been submitted prior to the vote on passage.

   Inserted: "(7) Transfers of certain revenues.--There are hereby appropriated the Highway Trust Fund amounts equivalent to the amounts received in the Treasury that are attributable to the amendments made by sections 301, 302, and 303 of the Gas Price Relief Act of 2012.".

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