[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6 Placed on Calendar Senate (PCS)]
Calendar No. 9
110th CONGRESS
1st Session
H. R. 6
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 18, 2007
Received and read the first time
January 22, 2007
Read the second time and placed on the calendar
_______________________________________________________________________
AN ACT
To reduce our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Creating Long-Term Energy
Alternatives for the Nation Act of 2007'' or the ``CLEAN Energy Act of
2007''.
TITLE I--DENIAL OF OIL AND GAS TAX BENEFITS
SEC. 101. SHORT TITLE.
This title may be cited as the ``Ending Subsidies for Big Oil Act
of 2007''.
SEC. 102. DENIAL OF DEDUCTION FOR INCOME ATTRIBUTABLE TO DOMESTIC
PRODUCTION OF OIL, NATURAL GAS, OR PRIMARY PRODUCTS
THEREOF.
(a) In General.--Subparagraph (B) of section 199(c)(4) of the
Internal Revenue Code of 1986 (relating to exceptions) is amended by
striking ``or'' at the end of clause (ii), by striking the period at
the end of clause (iii) and inserting ``, or'', and by inserting after
clause (iii) the following new clause:
``(iv) the sale, exchange, or other
disposition of oil, natural gas, or any primary
product thereof.''.
(b) Primary Product.--Section 199(c)(4)(B) of such Code is amended
by adding at the end the following flush sentence:
``For purposes of clause (iv), the term `primary
product' has the same meaning as when used in section
927(a)(2)(C), as in effect before its repeal.''.
(c) Conforming Amendments.--Section 199(c)(4) of such Code is
amended--
(1) in subparagraph (A)(i)(III) by striking ``electricity,
natural gas,'' and inserting ``electricity'', and
(2) in subparagraph (B)(ii) by striking ``electricity,
natural gas,'' and inserting ``electricity''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2007.
SEC. 103. 7-YEAR AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL
EXPENDITURES FOR CERTAIN MAJOR INTEGRATED OIL COMPANIES.
(a) In General.--Subparagraph (A) of section 167(h)(5) of the
Internal Revenue Code of 1986 (relating to special rule for major
integrated oil companies) is amended by striking ``5-year'' and
inserting ``7-year''.
(b) Effective Date.--The amendment made by this section shall apply
to amounts paid or incurred after the date of the enactment of this
Act.
TITLE II--ROYALTIES UNDER OFFSHORE OIL AND GAS LEASES
SEC. 201. SHORT TITLE.
This title may be cited as the ``Royalty Relief for American
Consumers Act of 2007''.
SEC. 202. PRICE THRESHOLDS FOR ROYALTY SUSPENSION PROVISIONS.
The Secretary of the Interior shall agree to a request by any
lessee to amend any lease issued for any Central and Western Gulf of
Mexico tract during the period of January 1, 1998, through December 31,
1999, to incorporate price thresholds applicable to royalty suspension
provisions, that are equal to or less than the price thresholds
described in clauses (v) through (vii) of section 8(a)(3)(C) of the
Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)). Any
amended lease shall impose the new or revised price thresholds
effective October 1, 2006. Existing lease provisions shall prevail
through September 30, 2006.
SEC. 203. CLARIFICATION OF AUTHORITY TO IMPOSE PRICE THRESHOLDS FOR
CERTAIN LEASE SALES.
Congress reaffirms the authority of the Secretary of the Interior
under section 8(a)(1)(H) of the Outer Continental Shelf Lands Act (43
U.S.C. 1337(a)(1)(H)) to vary, based on the price of production from a
lease, the suspension of royalties under any lease subject to section
304 of the Outer Continental Shelf Deep Water Royalty Relief Act
(Public Law 104-58; 43 U.S.C. 1337 note).
SEC. 204. ELIGIBILITY FOR NEW LEASES AND THE TRANSFER OF LEASES;
CONSERVATION OF RESOURCES FEES.
(a) Issuance of New Leases.--
(1) In general.--The Secretary shall not issue any new
lease that authorizes the production of oil or natural gas in
the Gulf of Mexico under the Outer Continental Shelf Lands Act
(43 U.S.C. 1331 et seq.) to a person described in paragraph (2)
unless--
(A) the person has renegotiated each covered lease
with respect to which the person is a lessee, to modify
the payment responsibilities of the person to include
price thresholds that are equal to or less than the
price thresholds described in clauses (v) through (vii)
of section 8(a)(3)(C) of the Outer Continental Shelf
Lands Act (43 U.S.C. 1337(a)(3)(C)); or
(B) the person has--
(i) paid all fees established by the
Secretary under subsection (b) that are due
with respect to each covered lease for which
the person is a lessee; or
(ii) entered into an agreement with the
Secretary under which the person is obligated
to pay such fees.
(2) Persons described.--A person referred to in paragraph
(1) is a person that--
(A) is a lessee that--
(i) holds a covered lease on the date on
which the Secretary considers the issuance of
the new lease; or
(ii) was issued a covered lease before the
date of enactment of this Act, but transferred
the covered lease to another person or entity
(including a subsidiary or affiliate of the
lessee) after the date of enactment of this
Act; or
(B) any other person or entity who has any direct
or indirect interest in, or who derives any benefit
from, a covered lease;
(3) Multiple lessees.--
(A) In general.--For purposes of paragraph (1), if
there are multiple lessees that own a share of a
covered lease, the Secretary may implement separate
agreements with any lessee with a share of the covered
lease that modifies the payment responsibilities with
respect to the share of the lessee to include price
thresholds that are equal to or less than the price
thresholds described in clauses (v) through (vii) of
section 8(a)(3)(C) of the Outer Continental Shelf Lands
Act (43 U.S.C. 1337(a)(3)(C)).
(B) Treatment of share as covered lease.--Beginning
on the effective date of an agreement under
subparagraph (A), any share subject to the agreement
shall not constitute a covered lease with respect to
any lessees that entered into the agreement.
(b) Conservation of Resources Fees.--
(1) In general.--Not later than 60 days after the date of
enactment of this Act, the Secretary of the Interior by
regulation shall establish--
(A) a conservation of resources fee for producing
Federal oil and gas leases in the Gulf of Mexico; and
(B) a conservation of resources fee for
nonproducing Federal oil and gas leases in the Gulf of
Mexico.
(2) Producing lease fee terms.--The fee under paragraph
(1)(A)--
(A) subject to subparagraph (C), shall apply to
covered leases that are producing leases;
(B) shall be set at $9 per barrel for oil and $1.25
per million Btu for gas, respectively, in 2005 dollars;
and
(C) shall apply only to production of oil or gas
occurring--
(i) in any calendar year in which the
arithmetic average of the daily closing prices
for light sweet crude oil on the New York
Mercantile Exchange (NYMEX) exceeds $34.73 per
barrel for oil and $4.34 per million Btu for
gas in 2005 dollars; and
(ii) on or after October 1, 2006.
(3) Nonproducing lease fee terms.--The fee under paragraph
(1)(B)--
(A) subject to subparagraph (C), shall apply to
leases that are nonproducing leases;
(B) shall be set at $3.75 per acre per year in 2005
dollars; and
(C) shall apply on and after October 1, 2006.
(4) Treatment of receipts.--Amounts received by the United
States as fees under this subsection shall be treated as
offsetting receipts.
(c) Transfers.--A lessee or any other person who has any direct or
indirect interest in, or who derives a benefit from, a lease shall not
be eligible to obtain by sale or other transfer (including through a
swap, spinoff, servicing, or other agreement) any covered lease, the
economic benefit of any covered lease, or any other lease for the
production of oil or natural gas in the Gulf of Mexico under the Outer
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), unless--
(1) the lessee or other person has--
(A) renegotiated all covered leases of the lessee
or other person; and
(B) entered into an agreement with the Secretary to
modify the terms of all covered leases of the lessee or
other person to include limitations on royalty relief
based on market prices that are equal to or less than
the price thresholds described in clauses (v) through
(vii) of section 8(a)(3)(C) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)); or
(2) the lessee or other person has--
(A) paid all fees established by the Secretary
under subsection (b) that are due with respect to each
covered lease for which the person is a lessee; or
(B) entered into an agreement with the Secretary
under which the person is obligated to pay such fees.
(d) Definitions.--In this section--
(1) Covered lease.--The term ``covered lease'' means a
lease for oil or gas production in the Gulf of Mexico that is--
(A) in existence on the date of enactment of this
Act;
(B) issued by the Department of the Interior under
section 304 of the Outer Continental Shelf Deep Water
Royalty Relief Act (43 U.S.C. 1337 note; Public Law
104-58); and
(C) not subject to limitations on royalty relief
based on market price that are equal to or less than
the price thresholds described in clauses (v) through
(vii) of section 8(a)(3)(C) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)).
(2) Lessee.--The term ``lessee'' includes any person or
other entity that controls, is controlled by, or is in or under
common control with, a lessee.
(3) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
SEC. 205. REPEAL OF CERTAIN TAXPAYER SUBSIDIZED ROYALTY RELIEF FOR THE
OIL AND GAS INDUSTRY.
(a) Repeal of Provisions of Energy Policy Act of 2005.--The
following provisions of the Energy Policy Act of 2005 (Public Law 109-
58) are repealed:
(1) Section 344 (42 U.S.C. 15904; relating to incentives
for natural gas production from deep wells in shallow waters of
the Gulf of Mexico).
(2) Section 345 (42 U.S.C. 15905; relating to royalty
relief for deep water production in the Gulf of Mexico).
(3) Subsection (i) of section 365 (42 U.S.C. 15924;
relating to the prohibition on drilling-related permit
application cost recovery fees).
(b) Provisions Relating to Planning Areas Offshore Alaska.--Section
8(a)(3)(B) of the Outer Continental Shelf Lands Act (43 U.S.C.
1337(a)(3)(B)) is amended by striking ``and in the Planning Areas
offshore Alaska'' after ``West longitude''.
(c) Provisions Relating to Naval Petroleum Reserve in Alaska.--
Section 107 of the Naval Petroleum Reserves Production Act of 1976 (as
transferred, redesignated, moved, and amended by section 347 of the
Energy Policy Act of 2005 (119 Stat. 704)) is amended--
(1) in subsection (i) by striking paragraphs (2) through
(6); and
(2) by striking subsection (k).
TITLE III--STRATEGIC ENERGY EFFICIENCY AND RENEWABLES RESERVE
SEC. 301. STRATEGIC ENERGY EFFICIENCY AND RENEWABLES RESERVE FOR
INVESTMENTS IN RENEWABLE ENERGY AND ENERGY EFFICIENCY.
(a) In General.--For budgetary purposes, the additional Federal
receipts by reason of the enactment of this Act shall be held in a
separate account to be known as the ``Strategic Energy Efficiency and
Renewables Reserve''. The Strategic Energy Efficiency and Renewables
Reserve shall be available to offset the cost of subsequent
legislation--
(1) to accelerate the use of clean domestic renewable
energy resources and alternative fuels;
(2) to promote the utilization of energy-efficient products
and practices and conservation; and
(3) to increase research, development, and deployment of
clean renewable energy and efficiency technologies.
(b) Procedure for Adjustments.--
(1) Budget committee chairman.--After the reporting of a
bill or joint resolution, or the offering of an amendment
thereto or the submission of a conference report thereon,
providing funding for the purposes set forth in subsection (a)
in excess of the amounts provided for those purposes for fiscal
year 2007, the chairman of the Committee on the Budget of the
applicable House of Congress shall make the adjustments set
forth in paragraph (2) for the amount of new budget authority
and outlays in that measure and the outlays flowing from that
budget authority.
(2) Matters to be adjusted.--The adjustments referred to in
paragraph (1) are to be made to--
(A) the discretionary spending limits, if any, set
forth in the appropriate concurrent resolution on the
budget;
(B) the allocations made pursuant to the
appropriate concurrent resolution on the budget
pursuant to section 302(a) of the Congressional Budget
Act of 1974; and
(C) the budget aggregates contained in the
appropriate concurrent resolution on the budget as
required by section 301(a) of the Congressional Budget
Act of 1974.
(3) Amounts of adjustments.--The adjustments referred to in
paragraphs (1) and (2) shall not exceed the receipts estimated
by the Congressional Budget Office that are attributable to
this Act for the fiscal year in which the adjustments are made.
Passed the House of Representatives January 18, 2007.
Attest:
KAREN L. HAAS,
Clerk.
Calendar No. 9
110th CONGRESS
1st Session
H. R. 6
_______________________________________________________________________
AN ACT
To reduce our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes.
_______________________________________________________________________
January 22, 2007
Read the second time and placed on the calendar