American Innovation Act of 2008 - Directs the Secretary of Energy to carry out the Alternative Fuel Vehicle Innovation Prize program to award cash prizes to eligible contestants to advance the research, development, demonstration, and commercial application of alternative fuel vehicles, including: (1) a $10 billion grand prize for the production of a prototype alternative fuel vehicle meeting fuel efficiency, emissions, cost, and commercial application criteria; and (2) $100 million in additional prizes for substantial advancements in specific areas of alternative vehicle technologies, components, or systems or for transformational changes in technology.
Establishes the Innovation Trust Fund in the Treasury, to be funded with amounts attributable to the exploration for, development of, or production of oil, natural gas, or oil shale located on federal lands in the Outer Continental Shelf (OCS) or in the Arctic National Wildlife Refuge (ANWR). Directs the Secretary of the Treasury to transfer amounts in the Fund that are not required to carry out this Act to the account for public debt reduction.
Declares without force or effect all existing federal law prohibiting spending appropriated funds to conduct oil or natural gas leasing and preleasing activities for any area of OCS.
Revokes all presidential: (1) withdrawals from leasing under the Outer Continental Shelf Lands Act of areas for exploration for, and development and production of, oil or natural gas; and (2) authorities to withdraw from disposition any unleased OCS lands, except in the interest of natural security or military operations.
Amends the Alaska National Interest Lands Conservation Act to repeal provisions: (1) withdrawing public lands within the coastal plain of ANWR from entry or appropriation under U.S. mining laws and from operation of U.S. mineral leasing laws; and (2) prohibiting production, or development leading to production, of oil and gas from ANWR.