II
Calendar No. 854
110th CONGRESS
2d Session
S. 3202
IN THE SENATE OF THE UNITED STATES
June 26, 2008
Mr. McConnell (for himself, Mr. Alexander, Mr. Allard, Mr. Barrasso, Mr. Bennett, Mr. Bond, Mr. Brownback, Mr. Bunning, Mr. Burr, Mr. Chambliss, Mr. Coburn, Mr. Cochran, Mr. Coleman, Mr. Corker, Mr. Cornyn, Mr. Craig, Mr. Crapo, Mr. DeMint, Mrs. Dole, Mr. Domenici, Mr. Ensign, Mr. Enzi, Mr. Graham, Mr. Grassley, Mr. Gregg, Mr. Hatch, Mrs. Hutchison, Mr. Inhofe, Mr. Isakson, Mr. Kyl, Mr. Lugar, Mr. Martinez, Ms. Murkowski, Mr. Roberts, Mr. Sessions, Mr. Shelby, Mr. Specter, Mr. Stevens, Mr. Sununu, Mr. Thune, Mr. Vitter, Mr. Voinovich, Mr. Warner, and Mr. Wicker) introduced the following bill; which was read the first time
June 27, 2008
Read the second time and placed on the calendar
A BILL
To address record high gas prices at the pump, and for other purposes.
Short title; table of contents
Short title
This Act may be cited as the Gas Price Reduction Act of
2008
.
Table of contents
The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—Deep sea exploration
Sec. 101. Publication of projected State lines on outer Continental Shelf.
Sec. 102. Production of oil and natural gas in new producing areas.
Sec. 103. Conforming amendments.
TITLE II—Western State oil shale exploration
Sec. 201. Removal of prohibition on final regulations for commercial leasing program for oil shale resources on public land.
TITLE III—Plug-in electric cars and trucks
Sec. 301. Advanced batteries for electric drive vehicles.
TITLE IV—Energy commodity markets
Sec. 401. Study of international regulation of energy commodity markets.
Sec. 402. Foreign boards of trade.
Sec. 403. Index traders and swap dealers; disaggregation of index funds.
Sec. 404. Improved oversight and enforcement.
Deep sea exploration
Publication of projected State lines on outer Continental Shelf
Section 4(a)(2)(A) of the Outer Continental Shelf Lands Act (43 U.S.C. 1333(a)(2)(A)) is amended—
by designating the first, second, and third sentences as clause (i), (iii), and (iv), respectively;
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
Gas Price Reduction Act of
2008
; and
by inserting after clause (i) (as so designated) the following:
The projected lines shall also be used for the purpose of preleasing and leasing activities conducted in new producing areas under section 32.
This clause shall not affect any property right or title to Federal submerged land on the outer Continental Shelf.
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.
.
Production of oil and natural gas in new producing areas
The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) is amended by adding at the end the following:
Production of oil and natural gas in new producing areas
Definitions
In this section:
Coastal political subdivision
The term coastal political subdivision means a political subdivision of a new producing State any part of which political subdivision is—
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
not more than 200 nautical miles from the geographic center of any leased tract.
Moratorium area
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).
Exclusion
The term moratorium area does not include an area located in the Gulf of Mexico.
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.
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).
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).
Qualified outer Continental Shelf revenues
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.
Exclusions
The term qualified outer Continental Shelf revenues does not include—
revenues from a bond or other surety forfeited for obligations other than the collection of royalties;
revenues from civil penalties;
royalties taken by the Secretary in-kind and not sold;
revenues generated from leases subject to section 8(g); or
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).
Petition for Leasing New Producing Areas
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 the concurrence of the legislature of the 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.
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.
Disposition of qualified outer Continental Shelf revenues from new producing areas
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—
50 percent of qualified outer Continental Shelf revenues in the general fund of the Treasury; and
50 percent of qualified outer Continental Shelf revenues in a special account in the Treasury from which the Secretary shall disburse—
75 percent to new producing States in accordance with paragraph (2); and
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).
Allocation to new producing States and coastal political subdivisions
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.
Payments to coastal political subdivisions
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.
Allocation
The amount paid by the Secretary to coastal political subdivisions shall be allocated to each coastal political subdivision in accordance with the regulations promulgated under subparagraph (A).
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 for the fiscal year under paragraph (1)(B)(i).
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.
Authorized uses
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:
Projects and activities for the purposes of coastal protection, including conservation, coastal restoration, hurricane protection, and infrastructure directly affected by coastal wetland losses.
Mitigation of damage to fish, wildlife, or natural resources.
Implementation of a federally approved marine, coastal, or comprehensive conservation management plan.
Funding of onshore infrastructure projects.
Planning assistance and the administrative costs of complying with this section.
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).
Administration
Amounts made available under paragraph (1)(B) shall—
be made available, without further appropriation, in accordance with this subsection;
remain available until expended; and
be in addition to any amounts appropriated under—
other provisions of this Act;
the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l–4 et seq.); or
any other provision of law.
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—
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
are not assumed in the budget of the United States Government submitted by the President under section 1105 of title 31, United States Code.
.
Conforming amendments
Sections 104 and
105 of the Department of the Interior, Environment, and Related Agencies
Appropriations Act, 2008 (Public Law 110–161; 121 Stat. 2118) are amended by
striking No funds
each place it appears and inserting
Except as provided in section 32 of the Outer Continental Shelf Lands
Act, no funds
.
Western State oil shale exploration
Removal of prohibition on final regulations for commercial leasing program for oil shale resources on public land
Section 433 of the Department of the Interior, Environment, and Related Agencies Appropriations Act, 2008 (Public Law 110–161; 121 Stat. 2152) is repealed.
Plug-in electric cars and trucks
Advanced batteries for electric drive vehicles
Definitions
In this section:
Advanced battery
The term advanced battery means an electrical storage device that is suitable for a vehicle application.
Engineering integration costs
The term engineering integration costs includes the cost of engineering tasks relating to—
the incorporation of qualifying components into the design of an advanced battery; and
the design of tooling and equipment and the development of manufacturing processes and material for suppliers of production facilities that produce qualifying components or advanced batteries.
Secretary
The term Secretary means the Secretary of Energy.
Advanced battery research and development
In general
The Secretary shall—
expand and accelerate research and development efforts for advanced batteries; and
emphasize lower cost means of producing abuse-tolerant advanced batteries with the appropriate balance of power and energy capacity to meet market requirements.
Authorization of appropriations
There is authorized to be appropriated to carry out this subsection $100,000,000 for each of fiscal years 2010 through 2014.
Direct loan program
In general
Subject to the availability of appropriated funds, not later than 1 year after the date of enactment of this Act, the Secretary shall carry out a program to provide a total of not more than $250,000,000 in loans to eligible individuals and entities for not more than 30 percent of the costs of 1 or more of—
reequipping a manufacturing facility in the United States to produce advanced batteries;
expanding a manufacturing facility in the United States to produce advanced batteries; or
establishing a manufacturing facility in the United States to produce advanced batteries.
Eligibility
In general
To be eligible to obtain a loan under this subsection, an individual or entity shall—
be financially viable without the receipt of additional Federal funding associated with a proposed project under this subsection;
provide sufficient information to the Secretary for the Secretary to ensure that the qualified investment is expended efficiently and effectively; and
meet such other criteria as may be established and published by the Secretary.
Consideration
In selecting eligible individuals or entities for loans under this subsection, the Secretary may consider whether the proposed project of an eligible individual or entity under this subsection would—
reduce manufacturing time;
reduce manufacturing energy intensity;
reduce negative environmental impacts or byproducts; or
increase spent battery or component recycling
Rates, terms, and repayment of loans
A loan provided under this subsection—
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;
shall have a term that is equal to the lesser of—
the projected life, in years, of the eligible project to be carried out using funds from the loan, as determined by the Secretary; or
25 years; and
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.
Period of availability
A loan under this subsection shall be available for—
facilities and equipment placed in service before December 30, 2020; and
engineering integration costs incurred during the period beginning on the date of enactment of this Act and ending on December 30, 2020.
Fees
The cost of administering a loan made under this subsection shall not exceed $100,000.
Authorization of appropriations
There are authorized to be appropriated such sums as are necessary to carry out this subsection for each of fiscal years 2009 through 2013.
Sense of the Senate on purchase of plug-in electric drive vehicles
It is the sense of the Senate that, to the maximum extent practicable, the Federal Government should implement policies to increase the purchase of plug-in electric drive vehicles by the Federal Government.
Energy commodity markets
Study of international regulation of energy commodity markets
In general
The Secretary of the Treasury, the Chairman of the Board of Governors of the Federal Reserve System, the Chairman of the Securities and Exchange Commission, and the Chairman of the Commodity Futures Trading Commission shall jointly conduct a study of the international regime for regulating the trading of energy commodity futures and derivatives.
Analysis
The study shall include an analysis of, at a minimum—
key common features and differences among countries in the regulation of energy commodity trading, including with respect to market oversight and enforcement;
agreements and practices for sharing market and trading data;
the use of position limits or thresholds to detect and prevent price manipulation, excessive speculation as described in section 4a(a) of the Commodity Exchange Act (7 U.S.C. 6a(a)) or other unfair trading practices;
practices regarding the identification of commercial and noncommercial trading and the extent of market speculation; and
agreements and practices for facilitating international cooperation on market oversight, compliance, and enforcement.
Report
Not later than 120 days after the date of enactment of this Act, the heads of the Federal agencies described in subsection (a) shall jointly submit to the appropriate committees of Congress a report that—
describes the results of the study; and
provides recommendations to improve openness, transparency, and other necessary elements of a properly functioning market.
Foreign boards of trade
Section 4 of the Commodity Exchange Act (7 U.S.C. 6) is amended by adding at the end the following:
Foreign boards of trade
In general
The Commission shall not permit a foreign board of trade’s members or other participants located in the United States to enter trades directly into the foreign board of trade’s trade matching system with respect to an agreement, contract, or transaction in an energy commodity (as defined by the Commission) that settles against any price, including the daily or final settlement price, of a contract or contracts listed for trading on a registered entity, unless—
the foreign board of trade makes public daily information on settlement prices, volume, open interest, and opening and closing ranges for the agreement, contract, or transaction that is comparable to the daily trade information published by the registered entity for the contract or contracts against which it settles;
the foreign board of trade or a foreign futures authority adopts position limitations (including related hedge exemption provisions) or position accountability for speculators for the agreement, contract, or transaction that are comparable to the position limitations (including related hedge exemption provisions) or position accountability adopted by the registered entity for the contract or contracts against which it settles; and
the foreign board of trade or a foreign futures authority provides such information to the Commission regarding the extent of speculative and non-speculative trading in the agreement, contract, or transaction that is comparable to the information the Commission determines is necessary to publish its weekly report of traders (commonly known as the Commitments of Traders report) for the contract or contracts against which it settles.
Existing foreign boards of trade
Paragraph (1) shall become effective 1 year after the date of enactment of this subsection with respect to any agreement, contract, or transaction in an energy commodity (as defined by the Commission) conducted on a foreign board of trade for which the Commission’s staff had granted relief from the requirements of this Act prior to the date of enactment of this subsection.
.
Index traders and swap dealers; disaggregation of index funds
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:
Index traders and swap dealers
Reporting
The Commission shall—
issue a proposed rule regarding routine reporting requirements for index traders and swap dealers (as those terms are defined by the Commission) in energy and agricultural transactions (as those terms are defined by the Commission) within the jurisdiction of the Commission not later than 180 days after the date of enactment of this subsection, and issue a final rule regarding such reporting requirements not later than 270 days after the date of enactment of this subsection; and
subject to the provisions of section 8, disaggregate and make public monthly information on the positions and value of index funds and other passive, long-only positions in the energy and agricultural futures markets.
Report
Not later than 90 days after the date of enactment of this subsection, the Commission shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report regarding—
the scope of commodity index trading in the futures markets;
whether classification of index traders and swap dealers in the futures markets can be improved for regulatory and reporting purposes; and
whether, based on a review of the trading practices for index traders in the futures markets—
index trading activity is adversely impacting the price discovery process in the futures markets; and
different practices and controls should be required.
.
Improved oversight and enforcement
Findings
The Senate finds that—
crude oil prices are at record levels and consumers in the United States are paying record prices for gasoline;
funding for the Commodity Futures Trading Commission has been insufficient to cover the significant growth of the futures markets;
since the establishment of the Commodity Futures Trading Commission, the volume of trading on futures exchanges has grown 8,000 percent while staffing numbers have decreased 12 percent; and
in today’s dynamic market environment, it is essential that the Commodity Futures Trading Commission receive the funding necessary to enforce existing authority to ensure that all commodity markets, including energy markets, are properly monitored for market manipulation.
Additional employees
As soon as practicable after the date of enactment of this Act, the Commodity Futures Trading Commission shall hire at least 100 additional full-time employees—
to increase the public transparency of operations in energy futures markets;
to improve the enforcement in those markets; and
to carry out such other duties as are prescribed by the Commission.
Authorization of appropriations
In addition to any other funds made available to carry out the Commodity Exchange Act (7 U.S.C. 1 et seq.), there are authorized to be appropriated such sums as are necessary to carry out this section for fiscal year 2009.
June 27, 2008
Read the second time and placed on the calendar