American Renaissance in Manufacturing Act - Title I: Creating a More Competitive Tax Code - Amends the Internal Revenue Code to reduce to 25% of taxable income the income tax rate for corporations (currently, the maximum rate is 35%). Makes permanent: (1) the reduction in the recognition period for the built-in gains of S corporations, (2) the basis adjustments to the stock of S corporations making charitable contributions of appreciated property, (3) the expensing allowance for depreciable business assets, (4) the research tax credit, and (5) the additional depreciation allowance (bonus depreciation) for business assets.
Title II: Reining In Job-Killing Washington Red Tape - States that the purpose of this title is to increase accountability for and transparency in the federal regulatory process by requiring Congress to approve all new major regulations.
Revises provisions relating to congressional review of agency rulemaking to require a federal agency promulgating a rule to include in its report to Congress and to the Comptroller General (GAO) a classification of the rule as a major or nonmajor rule. Sets forth a congressional approval procedure for major rules and a congressional disapproval procedure for nonmajor rules. Amends the Balanced Budget and Emergency Deficit Control Act of 1985 to provide that any rule subject to such congressional approval procedure affecting budget authority, outlays, or receipts shall be assumed to be effective unless it is not approved in accordance with such procedure.
Requires the Administrator of the Environmental Protection Agency (EPA), before promulgating as final an energy-related rule that is estimated to cost more than $1 billion, to report to Congress on the effects of such rule on the economy and on employment. Prohibits the Administrator from: (1) using the social cost of carbon in any cost-benefit analysis relating to such energy-related rule; and (2) issuing, implementing, or enforcing any proposed or final rule under the Clean Air Act that establishes a performance standard for greenhouse gas emissions from any new source that is a fossil fuel-fired electric utility generating unit unless the rule meets specified requirements.
Nullifies the force and effect of specified proposed rules (or similar successor proposed or final rules) for Standards of Performance for Greenhouse Gas Emissions for New Stationary Sources: Electric Utility Generating Units.
Amends the Solid Waste Disposal Act to authorize states to adopt and implement coal combustion residuals permit programs.
Title III: Reducing Frivolous Legal Costs - Amends the sanctions provisions in Rule 11 of the Federal Rules of Civil Procedure to require the court to impose an appropriate sanction on any attorney, law firm, or party that has violated, or is responsible for the violation of, the rule with regard to representations to the court. Requires any sanction to compensate parties injured by the conduct in question.
Repeals the provision that prohibits filing a motion for sanctions if the challenged paper, claim, defense, contention, or denial is withdrawn or appropriately corrected within 21 days after service or within another time the court sets.
Authorizes the court to impose additional sanctions, such as striking the pleadings, dismissing the suit, or other nonmonetary directives or ordering penalty payments if warranted for effective deterrence.
Amends federal bankruptcy law to require a quarterly report on asbestos claims.
Revises pleading and procedural requirements for patent infringement actions. Directs the U.S. Patent and Trademark Office (USPTO) to notify the public on its website when a patent case is brought in federal court.
Codifies judicial doctrine relating to the consideration of prior art in cases of double patenting for the purpose of determining the nonobviousness of a second patent's claimed invention, thereby specifying that such doctrine continues to apply to the first-inventor-to-file patent system under the Leahy-Smith America Invents Act.
Amends the Federal Power Act to require the Federal Energy Regulatory Commission (FERC) to ensure that any emergency order issued under such Act for the interconnection of facilities for the generation, transmission, and sale of electric energy that may result in a conflict with a requirement of any environmental law: (1) requires generation, delivery, interchange, or transmission of electric energy only during hours necessary to meet the emergency and serve the public interest; and (2) to the maximum extent practical, is consistent with any other applicable environmental law and minimizes any adverse environmental impacts.
Title IV: Preserving Access to Abundant and Affordable Sources of Energy - Expedites the permit approval process for the Keystone Pipeline by eliminating the requirement for a presidential permit and other requirements.
Amends the Natural Gas Act to direct the Federal Energy Regulatory Commission (FERC) to approve or deny a certificate of public convenience and necessity within 12 months after providing public notice of the permit application for a natural gas pipeline project.
Prohibits any person from constructing, connecting, operating, or maintaining a cross-border segment of an oil or natural gas pipeline or electric transmission facility at the national boundary of the United States for the import or export of oil, natural gas, or electricity to or from Canada or Mexico without obtaining a certificate of crossing under this Act.
Amends the Mineral Leasing Act to prohibit the Department of the Interior from enforcing any federal regulation, guidance, or permit requirement regarding hydraulic fracturing (including any component of that process), relating to oil, gas, or geothermal production activities on or under any land in any state that has regulations, guidance, or permit requirements for that activity.
Amends the Outer Continental Shelf Lands Act to direct the Secretary of the Interior to implement a leasing program that includes at least 50% of the available unleased acreage within each Outer Continental Shelf (OCS) planning area considered to have the largest undiscovered, technically recoverable oil and gas resources, with an emphasis on offering the most geologically prospective parts of the planning area.
Directs the Secretary of the Interior to conduct specified oil and gas lease sales on the Outer Continental Shelf off the coasts of Virginia and South Carolina and to offer for sale leases of tracts in the Southern California area.
Allocates 37.5% of the amount of new federal leasing revenues to coastal states that are: (1) impacted by the leases under which those revenues are received by the United States, and (2) within 200 miles of the leased tract.
Establishes in the Department of the Interior: (1) an Under Secretary for Energy, Lands, and Minerals; (2) an Assistant Secretary of Ocean Energy and Safety; (3) an Assistant Secretary of Land and Minerals Management; (4) a Bureau of Ocean Energy; (5) an Ocean Energy Safety Service; and (6) an Office of Natural Resources Revenue.
Directs the Secretary to establish: (1) a National Offshore Energy Safety Academy to train oil and gas inspectors and other Department of Interior personnel; and (2) an Outer Continental Shelf Energy Safety Advisory Board to provide advice on mineral and renewable energy exploration, development, and production activities.
Abolishes the Minerals Management Service.
Prohibits the Bureau of Ocean Energy and the Ocean Energy Safety Service from developing, proposing, finalizing, administering, or implementing any limitation on activities under their jurisdictions as a result of the coastal and marine spatial planning component of the National Ocean Policy developed under Executive Order No. 13547.
Redefines the OCS to include all submerged lands lying within the U.S. exclusive economic zone and the Continental Shelf adjacent to any U.S. territory.
Sets forth requirements for filing complaints for judicial review of federal actions relating to energy leases.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5360 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 5360
To enhance the competitiveness of American manufacturers and exports in
the global marketplace by providing tax relief, regulatory relief,
liability relief, and ensuring access to abundant and affordable
supplies of energy, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 31, 2014
Mr. Mulvaney (for himself, Mr. Hensarling, Mr. Price of Georgia, Mr.
Lamborn, Mr. Chabot, Mr. LaMalfa, Mr. Hultgren, Mr. Roe of Tennessee,
Mr. McClintock, Mr. Schweikert, Mr. DeSantis, Mr. Brooks of Alabama,
Mr. Jordan, Mr. Huizenga of Michigan, Mr. Duncan of Tennessee, and Mr.
Crawford) introduced the following bill; which was referred to the
Committee on Energy and Commerce, and in addition to the Committees on
Ways and Means, the Budget, the Judiciary, Rules, Natural Resources,
Transportation and Infrastructure, and Science, Space, and Technology,
for a period to be subsequently determined by the Speaker, in each case
for consideration of such provisions as fall within the jurisdiction of
the committee concerned
_______________________________________________________________________
A BILL
To enhance the competitiveness of American manufacturers and exports in
the global marketplace by providing tax relief, regulatory relief,
liability relief, and ensuring access to abundant and affordable
supplies of 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``American
Renaissance in Manufacturing Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--CREATING A MORE COMPETITIVE TAX CODE
Sec. 1001. Dropping corporate tax rate.
Sec. 1002. Reduced recognition period for built-in gains of S
corporations made permanent.
Sec. 1003. Permanent rule regarding basis adjustment to stock of S
corporations making charitable
contributions of property.
Sec. 1004. Expensing certain depreciable business assets for small
business.
Sec. 1005. Research credit simplified and made permanent.
Sec. 1006. Bonus depreciation modified and made permanent.
Sec. 1007. Budgetary effects.
TITLE II--REINING IN JOB-KILLING WASHINGTON RED TAPE
Subtitle A--Regulations From the Executive in Need of Scrutiny Act
Sec. 2001. Purpose.
Sec. 2002. Congressional review of agency rulemaking.
Sec. 2003. Budgetary effects of rules subject to section 802 of title
5, United States Code.
Sec. 2004. Government Accountability Office study of rules.
Subtitle B--Energy Consumers Relief Act
Sec. 2201. Prohibition against finalizing certain energy-related rules
that will cause significant adverse effects
to the economy.
Sec. 2202. Reports and determinations prior to promulgating as final
certain energy-related rules.
Sec. 2203. Definitions.
Sec. 2204. Prohibition on use of social cost of carbon in analysis.
Subtitle C--Electricity Security and Affordability Act
Sec. 2301. Standards of performance for new fossil fuel-fired electric
utility generating units.
Sec. 2302. Congress to set effective date for standards of performance
for existing, modified, and reconstructed
fossil fuel-fired electric utility
generating units.
Sec. 2303. Repeal of earlier rules and guidelines.
Sec. 2304. Definitions.
Subtitle D--Coal Residuals Reuse and Management
Sec. 2401. Management and disposal of coal combustion residuals.
Sec. 2402. 2000 regulatory determination.
Sec. 2403. Technical assistance.
Sec. 2404. Federal Power Act.
TITLE III--REDUCING FRIVOLOUS LEGAL COSTS
Subtitle A--Lawsuit Abuse Reduction Act
Sec. 3101. Attorney accountability.
Subtitle B--Furthering Asbestos Claim Transparency in Bankruptcy
Sec. 3201. Amendments.
Sec. 3202. Effective date; application of amendments.
Subtitle C--Innovation Act
Sec. 3301. Definitions.
Sec. 3302. Patent infringement actions.
Sec. 3303. Transparency of patent ownership.
Sec. 3304. Customer-suit exception.
Sec. 3305. Procedures and practices to implement recommendations of the
Judicial Conference.
Sec. 3306. Small business education, outreach, and information access.
Sec. 3307. Studies on patent transactions, quality, and examination.
Sec. 3308. Improvements and technical corrections to the Leahy-Smith
America Invents Act.
Sec. 3309. Effective date.
Subtitle D--Resolving Environmental and Grid Reliability Conflicts
Sec. 3401. Amendments to the Federal Power Act.
TITLE IV--PRESERVING ACCESS TO ABUNDANT AND AFFORDABLE SOURCES OF
ENERGY
Subtitle A--Northern Route Approval
Sec. 4101. Findings.
Sec. 4102. Keystone XL permit approval.
Sec. 4103. Judicial review.
Sec. 4104. American burying beetle.
Sec. 4105. Right-of-way and temporary use permit.
Sec. 4106. Permits for activities in navigable waters.
Sec. 4107. Migratory Bird Treaty Act permit.
Sec. 4108. Oil spill response plan disclosure.
Subtitle B--Natural Gas Pipeline Permitting Reform
Sec. 4201. Regulatory approval of natural gas pipeline projects.
Subtitle C--North American Energy Infrastructure
Sec. 4301. Finding.
Sec. 4302. Authorization of certain energy infrastructure projects at
the national boundary of the United States.
Sec. 4303. Importation or exportation of natural gas to Canada and
Mexico.
Sec. 4304. Transmission of electric energy to Canada and Mexico.
Sec. 4305. No Presidential permit required.
Sec. 4306. Modifications to existing projects.
Sec. 4307. Effective date; rulemaking deadlines.
Sec. 4308. Definitions.
Subtitle D--Protecting States' Rights To Promote American Energy
Security Act
Chapter 1--State Authority for Hydraulic Fracturing Regulation
Sec. 4411. State authority for hydraulic fracturing regulation.
Sec. 4412. Government Accountability Office study.
Sec. 4413. Tribal authority on trust land.
Chapter 2--EPA Hydraulic Fracturing Research
Sec. 4421. EPA hydraulic fracturing research.
Chapter 3--Miscellaneous Provisions
Sec. 4431. Review of State activities.
Subtitle E--Offshore Energy and Jobs
Chapter 1--Outer Continental Shelf Leasing Program Reforms
Sec. 4511. Outer Continental Shelf leasing program reforms.
Sec. 4512. Domestic oil and natural gas production goal.
Sec. 4513. Development and submittal of new 5-year oil and gas leasing
program.
Sec. 4514. Rule of construction.
Chapter 2--Directing the President To Conduct New OCS Sales in
Virginia, South Carolina, and California
Sec. 4521. Requirement to conduct proposed oil and gas Lease Sale 220
on the Outer Continental Shelf offshore
Virginia.
Sec. 4522. South Carolina lease sale.
Sec. 4523. Southern California existing infrastructure lease sale.
Sec. 4524. Environmental impact statement requirement.
Sec. 4525. National defense.
Sec. 4526. Eastern Gulf of Mexico not included.
Chapter 3--Equitable Sharing of Outer Continental Shelf Revenues
Sec. 4531. Disposition of Outer Continental Shelf revenues to coastal
States.
Chapter 4--Reorganization of Minerals Management Agencies of the
Department of the Interior
Sec. 4541. Establishment of Under Secretary for Energy, Lands, and
Minerals and Assistant Secretary of Ocean
Energy and Safety.
Sec. 4542. Bureau of Ocean Energy.
Sec. 4543. Ocean Energy Safety Service.
Sec. 4544. Office of Natural Resources revenue.
Sec. 4545. Ethics and drug testing.
Sec. 4546. Abolishment of Minerals Management Service.
Sec. 4547. Conforming amendments to Executive Schedule pay rates.
Sec. 4548. Outer Continental Shelf Energy Safety Advisory Board.
Sec. 4549. Outer Continental Shelf inspection fees.
Sec. 4550. Prohibition on action based on National Ocean Policy
developed under Executive Order No. 13547.
Chapter 5--United States Territories
Sec. 4551. Application of Outer Continental Shelf Lands Act with
respect to territories of the United
States.
Chapter 6--Miscellaneous Provisions
Sec. 4561. Rules regarding distribution of revenues under Gulf of
Mexico Energy Security Act of 2006.
Sec. 4562. Amount of distributed qualified outer Continental Shelf
revenues.
Chapter 7--Judicial Review
Sec. 4571. Time for filing complaint.
Sec. 4572. District court deadline.
Sec. 4573. Ability to seek appellate review.
Sec. 4574. Limitation on scope of review and relief.
Sec. 4575. Legal fees.
Sec. 4576. Exclusion.
Sec. 4577. Definitions.
TITLE I--CREATING A MORE COMPETITIVE TAX CODE
SEC. 1001. DROPPING CORPORATE TAX RATE.
(a) In General.--Subsection (b) of section 11 of the Internal
Revenue Code of 1986 is amended to read as follows:
``(b) Amount of Tax.--The amount of the tax imposed by subsection
(a) shall be 25 percent of taxable income.''.
(b) Conforming Amendments.--
(1) Paragraphs (2)(B) and (6)(A)(ii) of section 860E(e) of
the Internal Revenue Code of 1986 are each amended by striking
``highest rate of tax specified in section 11(b)(1)'' and
inserting ``rate of tax specified in section 11(b)''.
(2)(A) Part I of subchapter P of chapter 1 of such Code is
amended by striking section 1201 (and by striking the item
relating to such section in the table of sections for such
part).
(B) Section 12 of such Code is amended by striking
paragraphs (4) and (6), and by redesignating paragraph (5) as
paragraph (4).
(C) Section 527(b) of such Code is amended--
(i) by striking paragraph (2),
(ii) by striking all that precedes ``is hereby
imposed'' and inserting:
``(b) Tax Imposed.--A tax''; and
(iii) by striking ``highest''.
(D) Sections 594(a) of such Code is amended by striking
``taxes imposed by section 11 or 1201(a)'' and inserting ``tax
imposed by section 11''.
(E) Section 691(c)(4) of such Code is amended by striking
``1201,''.
(F) Section 801(a) of such Code is amended--
(i) by striking paragraph (2), and
(ii) by striking all that precedes ``is hereby
imposed'' and inserting:
``(a) Tax Imposed.--A tax''.
(G) Section 831(d) of such Code is amended by striking
paragraph (1) and by redesignating paragraphs (2) and (3) as
paragraphs (1) and (2), respectively.
(H) Sections 832(c)(5) and 834(b)(1)(D) of such Code are
each amended by striking ``sec. 1201 and following,''.
(I) Section 852(b)(3)(A) of such Code is amended by
striking ``section 1201(a)'' and inserting ``section 11(b)''.
(J) Section 857(b)(3) of such Code is amended--
(i) by striking subparagraph (A) and redesignating
subparagraphs (B) through (F) as subparagraphs (A)
through (E), respectively,
(ii) in subparagraph (C), as so redesignated--
(I) by striking ``subparagraph (A)(ii)'' in
clause (i) thereof and inserting ``paragraph
(1)'', and
(II) by striking ``the tax imposed by
subparagraph (A)(ii)'' in clauses (ii) and (iv)
thereof and inserting ``the tax imposed by
paragraph (1) on undistributed capital gain'',
(iii) in subparagraph (E), as so redesignated, by
striking ``subparagraph (B) or (D)'' and inserting
``subparagraph (A) or (C)'', and
(iv) by adding at the end the following new
subparagraph:
``(F) Undistributed capital gain.--For purposes of
this paragraph, the term `undistributed capital gain'
means the excess of the net capital gain over the
deduction for dividends paid (as defined in section
561) determined with reference to capital gain
dividends only.''.
(K) Section 882(a)(1) of such Code is amended by striking
``, or 1201(a)''.
(L) Section 1374(b) of such Code is amended by striking
paragraph (4).
(M) Section 1381(b) of such Code is amended by striking
``taxes imposed by section 11 or 1201'' and inserting ``tax
imposed by section 11''.
(N) Sections 6425(c)(1)(A)(i) and 6655(g)(1)(A)(i) of such
Code are each amended by striking ``or 1201(a),''.
(3)(A) Section 1445(e)(1) of such Code is amended by
striking ``35 percent'' and inserting ``25 percent''.
(B) Section 1445(e)(2) of such Code is amended by striking
``35 percent'' and inserting ``25 percent''.
(C) Section 1445(e)(6) of such Code is amended by striking
``35 percent'' and inserting ``25 percent''.
(D) Section 1446(b)(2)(B) of such Code is amended by
striking ``section 11(b)(1)'' and inserting ``section 11(b)''.
(4) Section 852(b)(1) of such Code is amended by striking
the last sentence.
(5)(A) Part I of subchapter B of chapter 5 of such Code is
amended by striking section 1551 (and by striking the item
relating to such section in the table of sections for such
part).
(B) Section 535(c)(5) of such Code is amended to read as
follows:
``(5) Cross reference.--For limitation on credit provided
in paragraph (2) or (3) in the case of certain controlled
corporations, see section 1561.''.
(6) Section 7874(e)(1)(B) of such Code is amended by
striking ``section 11(b)(1)'' and inserting ``section 11(b)''.
(c) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
taxable years beginning after December 31, 2014.
(2) Withholding.--The amendments made by subsection (b)(3)
shall apply to distributions made after December 31, 2014.
(3) Certain transfers.--The amendments made by subsection
(b)(5) shall apply to transfers made after December 31, 2014.
SEC. 1002. REDUCED RECOGNITION PERIOD FOR BUILT-IN GAINS OF S
CORPORATIONS MADE PERMANENT.
(a) In General.--Paragraph (7) of section 1374(d) of the Internal
Revenue Code of 1986 is amended to read as follows:
``(7) Recognition period.--
``(A) In general.--The term `recognition period'
means the 5-year period beginning with the 1st day of
the 1st taxable year for which the corporation was an S
corporation. For purposes of applying this section to
any amount includible in income by reason of
distributions to shareholders pursuant to section
593(e), the preceding sentence shall be applied without
regard to the phrase `5-year'.
``(B) Installment sales.--If an S corporation sells
an asset and reports the income from the sale using the
installment method under section 453, the treatment of
all payments received shall be governed by the
provisions of this paragraph applicable to the taxable
year in which such sale was made.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2013.
SEC. 1003. PERMANENT RULE REGARDING BASIS ADJUSTMENT TO STOCK OF S
CORPORATIONS MAKING CHARITABLE CONTRIBUTIONS OF PROPERTY.
(a) In General.--Section 1367(a)(2) of the Internal Revenue Code of
1986 is amended by striking the last sentence.
(b) Effective Date.--The amendment made by this section shall apply
to contributions made in taxable years beginning after December 31,
2013.
SEC. 1004. EXPENSING CERTAIN DEPRECIABLE BUSINESS ASSETS FOR SMALL
BUSINESS.
(a) In General.--
(1) Dollar limitation.--Paragraph (1) of section 179(b) of
the Internal Revenue Code of 1986 is amended by striking
``shall not exceed--'' and all that follows and inserting
``shall not exceed $500,000.''.
(2) Reduction in limitation.--Paragraph (2) of section
179(b) of such Code is amended by striking ``exceeds--'' and
all that follows and inserting ``exceeds $2,000,000.''.
(b) Computer Software.--Clause (ii) of section 179(d)(1)(A) of such
Code is amended by striking ``, to which section 167 applies, and which
is placed in service in a taxable year beginning after 2002 and before
2014'' and inserting ``and to which section 167 applies''.
(c) Election.--Paragraph (2) of section 179(c) of such Code is
amended--
(1) by striking ``may not be revoked'' and all that follows
through ``and before 2014'', and
(2) by striking ``irrevocable'' in the heading thereof.
(d) Air Conditioning and Heating Units.--Paragraph (1) of section
179(d) of such Code is amended by striking ``and shall not include air
conditioning or heating units''.
(e) Qualified Real Property.--Subsection (f) of section 179 of such
Code is amended--
(1) by striking ``beginning in 2010, 2011, 2012, or 2013''
in paragraph (1), and
(2) by striking paragraphs (3) and (4).
(f) Inflation Adjustment.--Subsection (b) of section 179 of such
Code is amended by adding at the end the following new paragraph:
``(6) Inflation adjustment.--
``(A) In general.--In the case of any taxable year
beginning after 2014, the dollar amounts in paragraphs
(1) and (2) shall each be increased by an amount equal
to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(c)(2)(A) for such
calendar year, determined by substituting
`calendar year 2013' for `calendar year 2012'
in clause (ii) thereof.
``(B) Rounding.--The amount of any increase under
subparagraph (A) shall be rounded to the nearest
multiple of $10,000.''.
(g) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2013.
SEC. 1005. RESEARCH CREDIT SIMPLIFIED AND MADE PERMANENT.
(a) In General.--Subsection (a) of section 41 of the Internal
Revenue Code of 1986 is amended to read as follows:
``(a) In General.--For purposes of section 38, the research credit
determined under this section for the taxable year shall be an amount
equal to the sum of--
``(1) 20 percent of so much of the qualified research
expenses for the taxable year as exceeds 50 percent of the
average qualified research expenses for the 3 taxable years
preceding the taxable year for which the credit is being
determined,
``(2) 20 percent of so much of the basic research payments
for the taxable year as exceeds 50 percent of the average basic
research payments for the 3 taxable years preceding the taxable
year for which the credit is being determined, plus
``(3) 20 percent of the amounts paid or incurred by the
taxpayer in carrying on any trade or business of the taxpayer
during the taxable year (including as contributions) to an
energy research consortium for energy research.''.
(b) Repeal of Termination.--Section 41 of such Code is amended by
striking subsection (h).
(c) Conforming Amendments.--
(1) Subsection (c) of section 41 of such Code is amended to
read as follows:
``(c) Determination of Average Research Expenses for Prior Years.--
``(1) Special rule in case of no qualified research
expenditures in any of 3 preceding taxable years.--In any case
in which the taxpayer has no qualified research expenses in any
one of the 3 taxable years preceding the taxable year for which
the credit is being determined, the amount determined under
subsection (a)(1) for such taxable year shall be equal to 10
percent of the qualified research expenses for the taxable
year.
``(2) Consistent treatment of expenses.--
``(A) In general.--Notwithstanding whether the
period for filing a claim for credit or refund has
expired for any taxable year taken into account in
determining the average qualified research expenses, or
average basic research payments, taken into account
under subsection (a), the qualified research expenses
and basic research payments taken into account in
determining such averages shall be determined on a
basis consistent with the determination of qualified
research expenses and basic research payments,
respectively, for the credit year.
``(B) Prevention of distortions.--The Secretary may
prescribe regulations to prevent distortions in
calculating a taxpayer's qualified research expenses or
basic research payments caused by a change in
accounting methods used by such taxpayer between the
current year and a year taken into account in
determining the average qualified research expenses or
average basic research payments taken into account
under subsection (a).''.
(2) Section 41(e) of such Code is amended--
(A) by striking all that precedes paragraph (6) and
inserting the following:
``(e) Basic Research Payments.--For purposes of this section--
``(1) In general.--The term `basic research payment' means,
with respect to any taxable year, any amount paid in cash
during such taxable year by a corporation to any qualified
organization for basic research but only if--
``(A) such payment is pursuant to a written
agreement between such corporation and such qualified
organization, and
``(B) such basic research is to be performed by
such qualified organization.
``(2) Exception to requirement that research be performed
by the organization.--In the case of a qualified organization
described in subparagraph (C) or (D) of paragraph (3),
subparagraph (B) of paragraph (1) shall not apply.'',
(B) by redesignating paragraphs (6) and (7) as
paragraphs (3) and (4), respectively, and
(C) in paragraph (4) as so redesignated, by
striking subparagraphs (B) and (C) and by redesignating
subparagraphs (D) and (E) as subparagraphs (B) and (C),
respectively.
(3) Section 41(f)(3) of such Code is amended--
(A)(i) by striking ``, and the gross receipts'' in
subparagraph (A)(i) and all that follows through
``determined under clause (iii)'',
(ii) by striking clause (iii) of subparagraph (A)
and redesignating clauses (iv), (v), and (vi), thereof,
as clauses (iii), (iv), and (v), respectively,
(iii) by striking ``and (iv)'' each place it
appears in subparagraph (A)(iv) (as so redesignated)
and inserting ``and (iii)'',
(iv) by striking subclause (IV) of subparagraph
(A)(iv) (as so redesignated), by striking ``, and'' at
the end of subparagraph (A)(iv)(III) (as so
redesignated) and inserting a period, and by adding
``and'' at the end of subparagraph (A)(iv)(II) (as so
redesignated),
(v) by striking ``(A)(vi)'' in subparagraph (B) and
inserting ``(A)(v)'', and
(vi) by striking ``(A)(iv)(II)'' in subparagraph
(B)(i)(II) and inserting ``(A)(iii)(II)'',
(B) by striking ``, and the gross receipts of the
predecessor,'' in subparagraph (A)(iv)(II) (as so
redesignated),
(C) by striking ``, and the gross receipts of,'' in
subparagraph (B),
(D) by striking ``, or gross receipts of,'' in
subparagraph (B)(i)(I), and
(E) by striking subparagraph (C).
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 2013.
(2) Subsection (b).--The amendment made by subsection (b)
shall apply to amounts paid or incurred after December 31,
2013.
SEC. 1006. BONUS DEPRECIATION MODIFIED AND MADE PERMANENT.
(a) Made Permanent; Inclusion of Qualified Retail Improvement
Property.--Section 168(k)(2) of the Internal Revenue Code of 1986 is
amended to read as follows:
``(2) Qualified property.--For purposes of this
subsection--
``(A) In general.--The term `qualified property'
means property--
``(i)(I) to which this section applies
which has a recovery period of 20 years or
less,
``(II) which is computer software (as
defined in section 167(f)(1)(B)) for which a
deduction is allowable under section 167(a)
without regard to this subsection,
``(III) which is water utility property,
``(IV) which is qualified leasehold
improvement property, or
``(V) which is qualified retail improvement
property, and
``(ii) the original use of which commences
with the taxpayer.
``(B) Exception for alternative depreciation
property.--The term `qualified property' shall not
include any property to which the alternative
depreciation system under subsection (g) applies,
determined--
``(i) without regard to paragraph (7) of
subsection (g) (relating to election to have
system apply), and
``(ii) after application of section 280F(b)
(relating to listed property with limited
business use).
``(C) Special rules.--
``(i) Sale-leasebacks.--For purposes of
clause (ii) and subparagraph (A)(ii), if
property is--
``(I) originally placed in service
by a person, and
``(II) sold and leased back by such
person within 3 months after the date
such property was originally placed in
service,
such property shall be treated as originally
placed in service not earlier than the date on
which such property is used under the leaseback
referred to in subclause (II).
``(ii) Syndication.--For purposes of
subparagraph (A)(ii), if--
``(I) property is originally placed
in service by the lessor of such
property,
``(II) such property is sold by
such lessor or any subsequent purchaser
within 3 months after the date such
property was originally placed in
service (or, in the case of multiple
units of property subject to the same
lease, within 3 months after the date
the final unit is placed in service, so
long as the period between the time the
first unit is placed in service and the
time the last unit is placed in service
does not exceed 12 months), and
``(III) the user of such property
after the last sale during such 3-month
period remains the same as when such
property was originally placed in
service,
such property shall be treated as originally
placed in service not earlier than the date of
such last sale.
``(D) Coordination with section 280f.--For purposes
of section 280F--
``(i) Automobiles.--In the case of a
passenger automobile (as defined in section
280F(d)(5)) which is qualified property, the
Secretary shall increase the limitation under
section 280F(a)(1)(A)(i) by $8,000.
``(ii) Listed property.--The deduction
allowable under paragraph (1) shall be taken
into account in computing any recapture amount
under section 280F(b)(2).
``(iii) Inflation adjustment.--In the case
of any taxable year beginning in a calendar
year after 2014, the $8,000 amount in clause
(i) shall be increased by an amount equal to--
``(I) such dollar amount,
multiplied by
``(II) the automobile price
inflation adjustment determined under
section 280F(d)(7)(B)(i) for the
calendar year in which such taxable
year begins by substituting `2013' for
`1987' in subclause (II) thereof.
If any increase under the preceding sentence is
not a multiple of $100, such increase shall be
rounded to the nearest multiple of $100.
``(E) Deduction allowed in computing minimum tax.--
For purposes of determining alternative minimum taxable
income under section 55, the deduction under section
167 for qualified property shall be determined without
regard to any adjustment under section 56.''.
(b) Expansion of Election To Accelerate AMT Credits in Lieu of
Bonus Depreciation.--Section 168(k)(4) of such Code is amended to read
as follows:
``(4) Election to accelerate amt credits in lieu of bonus
depreciation.--
``(A) In general.--If a corporation elects to have
this paragraph apply for any taxable year--
``(i) paragraphs (1)(A), (2)(D)(i), and
(5)(A)(i) shall not apply for such taxable
year,
``(ii) the applicable depreciation method
used under this section with respect to any
qualified property shall be the straight line
method, and
``(iii) the limitation imposed by section
53(c) for such taxable year shall be increased
by the bonus depreciation amount which is
determined for such taxable year under
subparagraph (B).
``(B) Bonus depreciation amount.--For purposes of
this paragraph--
``(i) In general.--The bonus depreciation
amount for any taxable year is an amount equal
to 20 percent of the excess (if any) of--
``(I) the aggregate amount of
depreciation which would be allowed
under this section for qualified
property placed in service by the
taxpayer during such taxable year if
paragraph (1) applied to all such
property, over
``(II) the aggregate amount of
depreciation which would be allowed
under this section for qualified
property placed in service by the
taxpayer during such taxable year if
paragraph (1) did not apply to any such
property.
The aggregate amounts determined under
subclauses (I) and (II) shall be determined
without regard to any election made under
subsection (b)(2)(D), (b)(3)(D), or (g)(7) and
without regard to subparagraph (A)(ii).
``(ii) Limitation.--The bonus depreciation
amount for any taxable year shall not exceed
the lesser of--
``(I) 50 percent of the minimum tax
credit under section 53(b) for the
first taxable year ending after
December 31, 2013, or
``(II) the minimum tax credit under
section 53(b) for such taxable year
determined by taking into account only
the adjusted net minimum tax for
taxable years ending before January 1,
2014 (determined by treating credits as
allowed on a first-in, first-out
basis).
``(iii) Aggregation rule.--All corporations
which are treated as a single employer under
section 52(a) shall be treated--
``(I) as 1 taxpayer for purposes of
this paragraph, and
``(II) as having elected the
application of this paragraph if any
such corporation so elects.
``(C) Credit refundable.--For purposes of section
6401(b), the aggregate increase in the credits
allowable under part IV of subchapter A for any taxable
year resulting from the application of this paragraph
shall be treated as allowed under subpart C of such
part (and not any other subpart).
``(D) Other rules.--
``(i) Election.--Any election under this
paragraph may be revoked only with the consent
of the Secretary.
``(ii) Partnerships with electing
partners.--In the case of a corporation which
is a partner in a partnership and which makes
an election under subparagraph (A) for the
taxable year, for purposes of determining such
corporation's distributive share of partnership
items under section 702 for such taxable year--
``(I) paragraphs (1)(A), (2)(D)(i),
and (5)(A)(i) shall not apply, and
``(II) the applicable depreciation
method used under this section with
respect to any qualified property shall
be the straight line method.
``(iii) Certain partnerships.--In the case
of a partnership in which more than 50 percent
of the capital and profits interests are owned
(directly or indirectly) at all times during
the taxable year by 1 corporation (or by
corporations treated as 1 taxpayer under
subparagraph (B)(iii)), each partner shall
compute its bonus depreciation amount under
clause (i) of subparagraph (B) by taking into
account its distributive share of the amounts
determined by the partnership under subclauses
(I) and (II) of such clause for the taxable
year of the partnership ending with or within
the taxable year of the partner.''.
(c) Special Rules for Trees and Vines Bearing Fruits and Nuts.--
Section 168(k) of such Code is amended--
(1) by striking paragraph (5), and
(2) by inserting after paragraph (4) the following new
paragraph:
``(5) Special rules for trees and vines bearing fruits and
nuts.--
``(A) In general.--In the case of any tree or vine
bearing fruits or nuts which is planted, or is grafted
to a plant that has already been planted, by the
taxpayer in the ordinary course of the taxpayer's
farming business (as defined in section 263A(e)(4))--
``(i) a depreciation deduction equal to 50
percent of the adjusted basis of such tree or
vine shall be allowed under section 167(a) for
the taxable year in which such tree or vine is
so planted or grafted, and
``(ii) the adjusted basis of such tree or
vine shall be reduced by the amount of such
deduction.
``(B) Election out.--If a taxpayer makes an
election under this subparagraph for any taxable year,
this paragraph shall not apply to any tree or vine
planted or grafted during such taxable year. An
election under this subparagraph may be revoked only
with the consent of the Secretary.
``(C) Additional depreciation may be claimed only
once.--If this paragraph applies to any tree or vine,
such tree or vine shall not be treated as qualified
property in the taxable year in which placed in
service.
``(D) Coordination with election to accelerate amt
credits.--If a corporation makes an election under
paragraph (4) for any taxable year, the amount under
paragraph (4)(B)(i)(I) for such taxable year shall be
increased by the amount determined under subparagraph
(A)(i) for such taxable year.
``(E) Deduction allowed in computing minimum tax.--
Rules similar to the rules of paragraph (2)(E) shall
apply for purposes of this paragraph.''.
(d) Conforming Amendments.--
(1) Section 168(e)(8) of such Code is amended by striking
subparagraph (D).
(2) Section 168(k) of such Code is amended by adding at the
end the following new paragraph:
``(6) Election out.--If a taxpayer makes an election under
this paragraph with respect to any class of property for any
taxable year, this subsection shall not apply to all property
in such class placed in service (or, in the case of paragraph
(5), planted or grafted) during such taxable year. An election
under this paragraph may be revoked only with the consent of
the Secretary.''.
(3) Section 168(l)(5) of such Code is amended by striking
``section 168(k)(2)(G)'' and inserting ``section
168(k)(2)(E)''.
(4) Section 263A(c) of such Code is amended by adding at
the end the following new paragraph:
``(7) Coordination with section 168(k)(5).--This section
shall not apply to any amount allowable as a deduction by
reason of section 168(k)(5) (relating to special rules for
trees and vines bearing fruits and nuts).''.
(5) Section 460(c)(6)(B) of such Code is amended by
striking ``which--'' and all that follows and inserting ``which
has a recovery period of 7 years or less.''.
(6) Section 168(k) of such Code is amended by striking
``Acquired After December 31, 2007, and Before January 1,
2014'' in the heading thereof.
(e) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
property placed in service after December 31, 2013.
(2) Expansion of election to accelerate amt credits in lieu
of bonus depreciation.--
(A) In general.--The amendment made by subsection
(b) (other than so much of such amendment as relates to
section 168(k)(4)(D)(iii) of such Code, as added by
such amendment) shall apply to taxable years ending
after December 31, 2013.
(B) Transitional rule.--In the case of a taxable
year beginning before January 1, 2014, and ending after
December 31, 2013, the bonus depreciation amount
determined under section 168(k)(4) of such Code for
such year shall be the sum of--
(i) such amount determined without regard
to the amendments made by this section and--
(I) by taking into account only
property placed in service before
January 1, 2014, and
(II) by multiplying the limitation
under section 168(k)(4)(C)(ii) of such
Code (determined without regard to the
amendments made by this section) by a
fraction the numerator of which is the
number of days in the taxable year
before January 1, 2014, and the
denominator of which is the number of
days in the taxable year, and
(ii) such amount determined after taking
into account the amendments made by this
section and--
(I) by taking into account only
property placed in service after
December 31, 2013, and
(II) by multiplying the limitation
under section 168(k)(4)(B)(ii) of such
Code (as amended by this section) by a
fraction the numerator of which is the
number of days in the taxable year
after December 31, 2013, and the
denominator of which is the number of
days in the taxable year.
(3) Special rules for certain trees and vines.--The
amendment made by subsection (c)(2) shall apply to trees and
vines planted or grafted after December 31, 2013.
SEC. 1007. BUDGETARY EFFECTS.
(a) Statutory Pay-As-You-Go Scorecards.--The budgetary effects of
this title shall not be entered on either PAYGO scorecard maintained
pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010.
(b) Senate PAYGO Scorecards.--The budgetary effects of this title
shall not be entered on any PAYGO scorecard maintained for purposes of
section 201 of S. Con. Res. 21 (110th Congress).
TITLE II--REINING IN JOB-KILLING WASHINGTON RED TAPE
Subtitle A--Regulations From the Executive in Need of Scrutiny Act
SEC. 2001. PURPOSE.
The purpose of this title is to increase accountability for and
transparency in the Federal regulatory process. Section 1 of article I
of the United States Constitution grants all legislative powers to
Congress. Over time, Congress has excessively delegated its
constitutional charge while failing to conduct appropriate oversight
and retain accountability for the content of the laws it passes. By
requiring a vote in Congress, this subtitle will result in more
carefully drafted and detailed legislation, an improved regulatory
process, and a legislative branch that is truly accountable to the
American people for the laws imposed upon them. Moreover, as a tax on
carbon emissions increases energy costs on consumers, reduces economic
growth and is therefore detrimental to individuals, families and
businesses, this subtitle includes in the definition of a major rule,
any rule that implements or provides for the imposition or collection
of a tax on carbon emissions.
SEC. 2002. CONGRESSIONAL REVIEW OF AGENCY RULEMAKING.
Chapter 8 of title 5, United States Code, is amended to read as
follows:
``CHAPTER 8--CONGRESSIONAL REVIEW OF AGENCY RULEMAKING
``Sec.
``801. Congressional review.
``802. Congressional approval procedure for major rules.
``803. Congressional disapproval procedure for nonmajor rules.
``804. Definitions.
``805. Judicial review.
``806. Exemption for monetary policy.
``807. Effective date of certain rules.
``Sec. 801. Congressional review
``(a)(1)(A) Before a rule may take effect, the Federal agency
promulgating such rule shall submit to each House of the Congress and
to the Comptroller General a report containing--
``(i) a copy of the rule;
``(ii) a concise general statement relating to the rule;
``(iii) a classification of the rule as a major or nonmajor
rule, including an explanation of the classification
specifically addressing each criteria for a major rule
contained within clauses (i) through (iii) of section 804(2)(A)
or within section 804(2)(B);
``(iv) a list of any other related regulatory actions taken
by or that will be taken by the Federal agency promulgating the
rule that are intended to implement the same statutory
provision or regulatory objective as well as the individual and
aggregate economic effects of those actions;
``(v) a list of any other related regulatory actions taken
by or that will be taken by any other Federal agency with
authority to implement the same statutory provision or
regulatory objective that are intended to implement such
provision or objective, of which the Federal agency
promulgating the rule is aware, as well as the individual and
aggregate economic effects of those actions; and
``(vi) the proposed effective date of the rule.
``(B) On the date of the submission of the report under
subparagraph (A), the Federal agency promulgating the rule shall submit
to the Comptroller General and make available to each House of
Congress--
``(i) a complete copy of the cost-benefit analysis of the
rule, if any, including an analysis of any jobs added or lost,
differentiating between public and private sector jobs;
``(ii) the agency's actions pursuant to sections 603, 604,
605, 607, and 609 of this title;
``(iii) the agency's actions pursuant to sections 202, 203,
204, and 205 of the Unfunded Mandates Reform Act of 1995; and
``(iv) any other relevant information or requirements under
any other Act and any relevant Executive orders.
``(C) Upon receipt of a report submitted under subparagraph (A),
each House shall provide copies of the report to the chairman and
ranking member of each standing committee with jurisdiction under the
rules of the House of Representatives or the Senate to report a bill to
amend the provision of law under which the rule is issued.
``(2)(A) The Comptroller General shall provide a report on each
major rule to the committees of jurisdiction by the end of 15 calendar
days after the submission or publication date. The report of the
Comptroller General shall include an assessment of the agency's
compliance with procedural steps required by paragraph (1)(B) and an
assessment of whether the major rule imposes any new limits or mandates
on private-sector activity.
``(B) Federal agencies shall cooperate with the Comptroller General
by providing information relevant to the Comptroller General's report
under subparagraph (A).
``(3) A major rule relating to a report submitted under paragraph
(1) shall take effect upon enactment of a joint resolution of approval
described in section 802 or as provided for in the rule following
enactment of a joint resolution of approval described in section 802,
whichever is later.
``(4) A nonmajor rule shall take effect as provided by section 803
after submission to Congress under paragraph (1).
``(5) If a joint resolution of approval relating to a major rule is
not enacted within the period provided in subsection (b)(2), then a
joint resolution of approval relating to the same rule may not be
considered under this chapter in the same Congress by either the House
of Representatives or the Senate.
``(b)(1) A major rule shall not take effect unless the Congress
enacts a joint resolution of approval described under section 802.
``(2) If a joint resolution described in subsection (a) is not
enacted into law by the end of 70 session days or legislative days, as
applicable, beginning on the date on which the report referred to in
section 801(a)(1)(A) is received by Congress (excluding days either
House of Congress is adjourned for more than 3 days during a session of
Congress), then the rule described in that resolution shall be deemed
not to be approved and such rule shall not take effect.
``(c)(1) Notwithstanding any other provision of this section
(except subject to paragraph (3)), a major rule may take effect for one
90-calendar-day period if the President makes a determination under
paragraph (2) and submits written notice of such determination to the
Congress.
``(2) Paragraph (1) applies to a determination made by the
President by Executive order that the major rule should take effect
because such rule is--
``(A) necessary because of an imminent threat to health or
safety or other emergency;
``(B) necessary for the enforcement of criminal laws;
``(C) necessary for national security; or
``(D) issued pursuant to any statute implementing an
international trade agreement.
``(3) An exercise by the President of the authority under this
subsection shall have no effect on the procedures under section 802.
``(d)(1) In addition to the opportunity for review otherwise
provided under this chapter, in the case of any rule for which a report
was submitted in accordance with subsection (a)(1)(A) during the period
beginning on the date occurring--
``(A) in the case of the Senate, 60 session days, or
``(B) in the case of the House of Representatives, 60
legislative days,
before the date the Congress is scheduled to adjourn a session of
Congress through the date on which the same or succeeding Congress
first convenes its next session, sections 802 and 803 shall apply to
such rule in the succeeding session of Congress.
``(2)(A) In applying sections 802 and 803 for purposes of such
additional review, a rule described under paragraph (1) shall be
treated as though--
``(i) such rule were published in the Federal Register on--
``(I) in the case of the Senate, the 15th session
day, or
``(II) in the case of the House of Representatives,
the 15th legislative day,
after the succeeding session of Congress first convenes; and
``(ii) a report on such rule were submitted to Congress
under subsection (a)(1) on such date.
``(B) Nothing in this paragraph shall be construed to affect the
requirement under subsection (a)(1) that a report shall be submitted to
Congress before a rule can take effect.
``(3) A rule described under paragraph (1) shall take effect as
otherwise provided by law (including other subsections of this
section).
``Sec. 802. Congressional approval procedure for major rules
``(a)(1) For purposes of this section, the term `joint resolution'
means only a joint resolution addressing a report classifying a rule as
major pursuant to section 801(a)(1)(A)(iii) that--
``(A) bears no preamble;
``(B) bears the following title (with blanks filled as
appropriate): `Approving the rule submitted by ___ relating to
___.';
``(C) includes after its resolving clause only the
following (with blanks filled as appropriate): `That Congress
approves the rule submitted by ___ relating to ___.'; and
``(D) is introduced pursuant to paragraph (2).
``(2) After a House of Congress receives a report classifying a
rule as major pursuant to section 801(a)(1)(A)(iii), the majority
leader of that House (or his or her respective designee) shall
introduce (by request, if appropriate) a joint resolution described in
paragraph (1)--
``(A) in the case of the House of Representatives, within
three legislative days; and
``(B) in the case of the Senate, within three session days.
``(3) A joint resolution described in paragraph (1) shall not be
subject to amendment at any stage of proceeding.
``(b) A joint resolution described in subsection (a) shall be
referred in each House of Congress to the committees having
jurisdiction over the provision of law under which the rule is issued.
``(c) In the Senate, if the committee or committees to which a
joint resolution described in subsection (a) has been referred have not
reported it at the end of 15 session days after its introduction, such
committee or committees shall be automatically discharged from further
consideration of the resolution and it shall be placed on the calendar.
A vote on final passage of the resolution shall be taken on or before
the close of the 15th session day after the resolution is reported by
the committee or committees to which it was referred, or after such
committee or committees have been discharged from further consideration
of the resolution.
``(d)(1) In the Senate, when the committee or committees to which a
joint resolution is referred have reported, or when a committee or
committees are discharged (under subsection (c)) from further
consideration of a joint resolution described in subsection (a), it is
at any time thereafter in order (even though a previous motion to the
same effect has been disagreed to) for a motion to proceed to the
consideration of the joint resolution, and all points of order against
the joint resolution (and against consideration of the joint
resolution) are waived. The motion is not subject to amendment, or to a
motion to postpone, or to a motion to proceed to the consideration of
other business. A motion to reconsider the vote by which the motion is
agreed to or disagreed to shall not be in order. If a motion to proceed
to the consideration of the joint resolution is agreed to, the joint
resolution shall remain the unfinished business of the Senate until
disposed of.
``(2) In the Senate, debate on the joint resolution, and on all
debatable motions and appeals in connection therewith, shall be limited
to not more than 2 hours, which shall be divided equally between those
favoring and those opposing the joint resolution. A motion to further
limit debate is in order and not debatable. An amendment to, or a
motion to postpone, or a motion to proceed to the consideration of
other business, or a motion to recommit the joint resolution is not in
order.
``(3) In the Senate, immediately following the conclusion of the
debate on a joint resolution described in subsection (a), and a single
quorum call at the conclusion of the debate if requested in accordance
with the rules of the Senate, the vote on final passage of the joint
resolution shall occur.
``(4) Appeals from the decisions of the Chair relating to the
application of the rules of the Senate to the procedure relating to a
joint resolution described in subsection (a) shall be decided without
debate.
``(e) In the House of Representatives, if any committee to which a
joint resolution described in subsection (a) has been referred has not
reported it to the House at the end of 15 legislative days after its
introduction, such committee shall be discharged from further
consideration of the joint resolution, and it shall be placed on the
appropriate calendar. On the second and fourth Thursdays of each month
it shall be in order at any time for the Speaker to recognize a Member
who favors passage of a joint resolution that has appeared on the
calendar for at least 5 legislative days to call up that joint
resolution for immediate consideration in the House without
intervention of any point of order. When so called up a joint
resolution shall be considered as read and shall be debatable for 1
hour equally divided and controlled by the proponent and an opponent,
and the previous question shall be considered as ordered to its passage
without intervening motion. It shall not be in order to reconsider the
vote on passage. If a vote on final passage of the joint resolution has
not been taken by the third Thursday on which the Speaker may recognize
a Member under this subsection, such vote shall be taken on that day.
``(f)(1) If, before passing a joint resolution described in
subsection (a), one House receives from the other a joint resolution
having the same text, then--
``(A) the joint resolution of the other House shall not be
referred to a committee; and
``(B) the procedure in the receiving House shall be the
same as if no joint resolution had been received from the other
House until the vote on passage, when the joint resolution
received from the other House shall supplant the joint
resolution of the receiving House.
``(2) This subsection shall not apply to the House of
Representatives if the joint resolution received from the Senate is a
revenue measure.
``(g) If either House has not taken a vote on final passage of the
joint resolution by the last day of the period described in section
801(b)(2), then such vote shall be taken on that day.
``(h) This section and section 803 are enacted by Congress--
``(1) as an exercise of the rulemaking power of the Senate
and House of Representatives, respectively, and as such is
deemed to be part of the rules of each House, respectively, but
applicable only with respect to the procedure to be followed in
that House in the case of a joint resolution described in
subsection (a) and superseding other rules only where
explicitly so; and
``(2) with full recognition of the Constitutional right of
either House to change the rules (so far as they relate to the
procedure of that House) at any time, in the same manner and to
the same extent as in the case of any other rule of that House.
``Sec. 803. Congressional disapproval procedure for nonmajor rules
``(a) For purposes of this section, the term `joint resolution'
means only a joint resolution introduced in the period beginning on the
date on which the report referred to in section 801(a)(1)(A) is
received by Congress and ending 60 days thereafter (excluding days
either House of Congress is adjourned for more than 3 days during a
session of Congress), the matter after the resolving clause of which is
as follows: `That Congress disapproves the nonmajor rule submitted by
the ___ relating to ___, and such rule shall have no force or effect.'
(The blank spaces being appropriately filled in).
``(b) A joint resolution described in subsection (a) shall be
referred to the committees in each House of Congress with jurisdiction.
``(c) In the Senate, if the committee to which is referred a joint
resolution described in subsection (a) has not reported such joint
resolution (or an identical joint resolution) at the end of 15 session
days after the date of introduction of the joint resolution, such
committee may be discharged from further consideration of such joint
resolution upon a petition supported in writing by 30 Members of the
Senate, and such joint resolution shall be placed on the calendar.
``(d)(1) In the Senate, when the committee to which a joint
resolution is referred has reported, or when a committee is discharged
(under subsection (c)) from further consideration of a joint resolution
described in subsection (a), it is at any time thereafter in order
(even though a previous motion to the same effect has been disagreed
to) for a motion to proceed to the consideration of the joint
resolution, and all points of order against the joint resolution (and
against consideration of the joint resolution) are waived. The motion
is not subject to amendment, or to a motion to postpone, or to a motion
to proceed to the consideration of other business. A motion to
reconsider the vote by which the motion is agreed to or disagreed to
shall not be in order. If a motion to proceed to the consideration of
the joint resolution is agreed to, the joint resolution shall remain
the unfinished business of the Senate until disposed of.
``(2) In the Senate, debate on the joint resolution, and on all
debatable motions and appeals in connection therewith, shall be limited
to not more than 10 hours, which shall be divided equally between those
favoring and those opposing the joint resolution. A motion to further
limit debate is in order and not debatable. An amendment to, or a
motion to postpone, or a motion to proceed to the consideration of
other business, or a motion to recommit the joint resolution is not in
order.
``(3) In the Senate, immediately following the conclusion of the
debate on a joint resolution described in subsection (a), and a single
quorum call at the conclusion of the debate if requested in accordance
with the rules of the Senate, the vote on final passage of the joint
resolution shall occur.
``(4) Appeals from the decisions of the Chair relating to the
application of the rules of the Senate to the procedure relating to a
joint resolution described in subsection (a) shall be decided without
debate.
``(e) In the Senate the procedure specified in subsection (c) or
(d) shall not apply to the consideration of a joint resolution
respecting a nonmajor rule--
``(1) after the expiration of the 60 session days beginning
with the applicable submission or publication date, or
``(2) if the report under section 801(a)(1)(A) was
submitted during the period referred to in section 801(d)(1),
after the expiration of the 60 session days beginning on the
15th session day after the succeeding session of Congress first
convenes.
``(f) If, before the passage by one House of a joint resolution of
that House described in subsection (a), that House receives from the
other House a joint resolution described in subsection (a), then the
following procedures shall apply:
``(1) The joint resolution of the other House shall not be
referred to a committee.
``(2) With respect to a joint resolution described in
subsection (a) of the House receiving the joint resolution--
``(A) the procedure in that House shall be the same
as if no joint resolution had been received from the
other House; but
``(B) the vote on final passage shall be on the
joint resolution of the other House.
``Sec. 804. Definitions
``For purposes of this chapter--
``(1) The term `Federal agency' means any agency as that
term is defined in section 551(1).
``(2) The term `major rule' means any rule, including an
interim final rule, that the Administrator of the Office of
Information and Regulatory Affairs of the Office of Management
and Budget finds--
``(A) has resulted in or is likely to result in--
``(i) an annual effect on the economy of
$50,000,000 or more;
``(ii) a major increase in costs or prices
for consumers, individual industries, Federal,
State, or local government agencies, or
geographic regions; or
``(iii) significant adverse effects on
competition, employment, investment,
productivity, innovation, or on the ability of
United States-based enterprises to compete with
foreign-based enterprises in domestic and
export markets;
``(B) is made by the Administrator of the
Environmental Protection Agency and that would have a
significant impact on a substantial number of
agricultural entities, as determined by the Secretary
of Agriculture (who shall publish such determination in
the Federal Register);
``(C) is a rule that implements or provides for the
imposition or collection of a carbon tax; or
``(D) is made under the Patient Protection and
Affordable Care Act (Public Law 111-148).
``(3) The term `nonmajor rule' means any rule that is not a
major rule.
``(4) The term `rule' has the meaning given such term in
section 551, except that such term does not include any rule of
particular applicability, including a rule that approves or
prescribes for the future rates, wages, prices, services, or
allowances therefore, corporate or financial structures,
reorganizations, mergers, or acquisitions thereof, or
accounting practices or disclosures bearing on any of the
foregoing.
``(5) The term `submission date or publication date',
except as otherwise provided in this chapter, means--
``(A) in the case of a major rule, the date on
which the Congress receives the report submitted under
section 801(a)(1); and
``(B) in the case of a nonmajor rule, the later
of--
``(i) the date on which the Congress
receives the report submitted under section
801(a)(1); and
``(ii) the date on which the nonmajor rule
is published in the Federal Register, if so
published.
``(6) The term `agricultural entity' means any entity
involved in or related to agricultural enterprise, including
enterprises that are engaged in the business of production of
food and fiber, ranching and raising of livestock, aquaculture,
and all other farming and agricultural related industries.
``(7) The term `carbon tax' means a fee, levy, or price
on--
``(A) emissions, including carbon dioxide emissions
generated by the burning of coal, natural gas, or oil;
or
``(B) coal, natural gas, or oil based on emissions,
including carbon dioxide emissions that would be
generated through the fuel's combustion.
``Sec. 805. Judicial review
``(a) No determination, finding, action, or omission under this
chapter shall be subject to judicial review.
``(b) Notwithstanding subsection (a), a court may determine whether
a Federal agency has completed the necessary requirements under this
chapter for a rule to take effect.
``(c) The enactment of a joint resolution of approval under section
802 shall not be interpreted to serve as a grant or modification of
statutory authority by Congress for the promulgation of a rule, shall
not extinguish or affect any claim, whether substantive or procedural,
against any alleged defect in a rule, and shall not form part of the
record before the court in any judicial proceeding concerning a rule
except for purposes of determining whether or not the rule is in
effect.
``Sec. 806. Exemption for monetary policy
``Nothing in this chapter shall apply to rules that concern
monetary policy proposed or implemented by the Board of Governors of
the Federal Reserve System or the Federal Open Market Committee.
``Sec. 807. Effective date of certain rules
``Notwithstanding section 801--
``(1) any rule that establishes, modifies, opens, closes,
or conducts a regulatory program for a commercial,
recreational, or subsistence activity related to hunting,
fishing, or camping; or
``(2) any rule other than a major rule which an agency for
good cause finds (and incorporates the finding and a brief
statement of reasons therefore in the rule issued) that notice
and public procedure thereon are impracticable, unnecessary, or
contrary to the public interest,
shall take effect at such time as the Federal agency promulgating the
rule determines.''.
SEC. 2003. BUDGETARY EFFECTS OF RULES SUBJECT TO SECTION 802 OF TITLE
5, UNITED STATES CODE.
Section 257(b)(2) of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended by adding at the end the following new
subparagraph:
``(E) Budgetary effects of rules subject to section
802 of title 5, united states code.--Any rules subject
to the congressional approval procedure set forth in
section 802 of chapter 8 of title 5, United States
Code, affecting budget authority, outlays, or receipts
shall be assumed to be effective unless it is not
approved in accordance with such section.''.
SEC. 2004. GOVERNMENT ACCOUNTABILITY OFFICE STUDY OF RULES.
(a) In General.--The Comptroller General of the United States shall
conduct a study to determine, as of the date of the enactment of this
subtitle--
(1) how many rules (as such term is defined in section 804
of title 5, United States Code) were in effect;
(2) how many major rules (as such term is defined in
section 804 of title 5, United States Code) were in effect; and
(3) the total estimated economic cost imposed by all such
rules.
(b) Report.--Not later than one year after the date of the
enactment of this subtitle, the Comptroller General of the United
States shall submit a report to Congress that contains the findings of
the study conducted under subsection (a).
Subtitle B--Energy Consumers Relief Act
SEC. 2201. PROHIBITION AGAINST FINALIZING CERTAIN ENERGY-RELATED RULES
THAT WILL CAUSE SIGNIFICANT ADVERSE EFFECTS TO THE
ECONOMY.
Notwithstanding any other provision of law, the Administrator of
the Environmental Protection Agency may not promulgate as final an
energy-related rule that is estimated to cost more than $1 billion if
the Secretary of Energy determines under section 2202(3) that the rule
will cause significant adverse effects to the economy.
SEC. 2202. REPORTS AND DETERMINATIONS PRIOR TO PROMULGATING AS FINAL
CERTAIN ENERGY-RELATED RULES.
Before promulgating as final any energy-related rule that is
estimated to cost more than $1 billion:
(1) Report to congress.--The Administrator of the
Environmental Protection Agency shall submit to Congress a
report (and transmit a copy to the Secretary of Energy)
containing--
(A) a copy of the rule;
(B) a concise general statement relating to the
rule;
(C) an estimate of the total costs of the rule,
including the direct costs and indirect costs of the
rule;
(D)(i) an estimate of the total benefits of the
rule and when such benefits are expected to be
realized;
(ii) a description of the modeling, the
calculations, the assumptions, and the limitations due
to uncertainty, speculation, or lack of information
associated with the estimates under this subparagraph;
and
(iii) a certification that all data and documents
relied upon by the Agency in developing such
estimates--
(I) have been preserved; and
(II) are available for review by the public
on the Agency's Web site, except to the extent
to which publication of such data and documents
would constitute disclosure of confidential
information in violation of applicable Federal
law;
(E) an estimate of the increases in energy prices,
including potential increases in gasoline or
electricity prices for consumers, that may result from
implementation or enforcement of the rule; and
(F) a detailed description of the employment
effects, including potential job losses and shifts in
employment, that may result from implementation or
enforcement of the rule.
(2) Initial determination on increases and impacts.--The
Secretary of Energy, in consultation with the Federal Energy
Regulatory Commission and the Administrator of the Energy
Information Administration, shall prepare an independent
analysis to determine whether the rule will cause--
(A) any increase in energy prices for consumers,
including low-income households, small businesses, and
manufacturers;
(B) any impact on fuel diversity of the Nation's
electricity generation portfolio or on national,
regional, or local electric reliability;
(C) any adverse effect on energy supply,
distribution, or use due to the economic or technical
infeasibility of implementing the rule; or
(D) any other adverse effect on energy supply,
distribution, or use (including a shortfall in supply
and increased use of foreign supplies).
(3) Subsequent determination on adverse effects to the
economy.--If the Secretary of Energy determines, under
paragraph (2), that the rule will cause an increase, impact, or
effect described in such paragraph, then the Secretary, in
consultation with the Administrator of the Environmental
Protection Agency, the Secretary of Commerce, the Secretary of
Labor, and the Administrator of the Small Business
Administration, shall--
(A) determine whether the rule will cause
significant adverse effects to the economy, taking into
consideration--
(i) the costs and benefits of the rule and
limitations in calculating such costs and
benefits due to uncertainty, speculation, or
lack of information; and
(ii) the positive and negative impacts of
the rule on economic indicators, including
those related to gross domestic product,
unemployment, wages, consumer prices, and
business and manufacturing activity; and
(B) publish the results of such determination in
the Federal Register.
SEC. 2203. DEFINITIONS.
In this subtitle:
(1) The terms ``direct costs'' and ``indirect costs'' have
the meanings given such terms in chapter 8 of the Environmental
Protection Agency's ``Guidelines for Preparing Economic
Analyses'' dated December 17, 2010.
(2) The term ``energy-related rule that is estimated to
cost more than $1 billion'' means a rule of the Environmental
Protection Agency that--
(A) regulates any aspect of the production, supply,
distribution, or use of energy or provides for such
regulation by States or other governmental entities;
and
(B) is estimated by the Administrator of the
Environmental Protection Agency or the Director of the
Office of Management and Budget to impose direct costs
and indirect costs, in the aggregate, of more than
$1,000,000,000.
(3) The term ``rule'' has the meaning given to such term in
section 551 of title 5, United States Code.
SEC. 2204. PROHIBITION ON USE OF SOCIAL COST OF CARBON IN ANALYSIS.
(a) In General.--Notwithstanding any other provision of law or any
Executive order, the Administrator of the Environmental Protection
Agency may not use the social cost of carbon in order to incorporate
social benefits of reducing carbon dioxide emissions, or for any other
reason, in any cost-benefit analysis relating to an energy-related rule
that is estimated to cost more than $1 billion unless and until a
Federal law is enacted authorizing such use.
(b) Definition.--In this section, the term ``social cost of
carbon'' means the social cost of carbon as described in the technical
support document entitled ``Technical Support Document: Technical
Update of the Social Cost of Carbon for Regulatory Impact Analysis
Under Executive Order 12866'', published by the Interagency Working
Group on Social Cost of Carbon, United States Government, in May 2013,
or any successor or substantially related document, or any other
estimate of the monetized damages associated with an incremental
increase in carbon dioxide emissions in a given year.
Subtitle C--Electricity Security and Affordability Act
SEC. 2301. STANDARDS OF PERFORMANCE FOR NEW FOSSIL FUEL-FIRED ELECTRIC
UTILITY GENERATING UNITS.
(a) Limitation.--The Administrator of the Environmental Protection
Agency may not issue, implement, or enforce any proposed or final rule
under section 111 of the Clean Air Act (42 U.S.C. 7411) that
establishes a standard of performance for emissions of any greenhouse
gas from any new source that is a fossil fuel-fired electric utility
generating unit unless such rule meets the requirements under
subsections (b) and (c).
(b) Requirements.--In issuing any rule under section 111 of the
Clean Air Act (42 U.S.C. 7411) establishing standards of performance
for emissions of any greenhouse gas from new sources that are fossil
fuel-fired electric utility generating units, the Administrator of the
Environmental Protection Agency (for purposes of establishing such
standards)--
(1) shall separate sources fueled with coal and natural gas
into separate categories; and
(2) shall not set a standard based on the best system of
emission reduction for new sources within a fossil-fuel
category unless--
(A) such standard has been achieved on average for
at least one continuous 12-month period (excluding
planned outages) by each of at least 6 units within
such category--
(i) each of which is located at a different
electric generating station in the United
States;
(ii) which, collectively, are
representative of the operating characteristics
of electric generation at different locations
in the United States; and
(iii) each of which is operated for the
entire 12-month period on a full commercial
basis; and
(B) no results obtained from any demonstration
project are used in setting such standard.
(c) Coal Having a Heat Content of 8300 or Less British Thermal
Units Per Pound.--
(1) Separate subcategory.--In carrying out subsection
(b)(1), the Administrator of the Environmental Protection
Agency shall establish a separate subcategory for new sources
that are fossil fuel-fired electric utility generating units
using coal with an average heat content of 8300 or less British
Thermal Units per pound.
(2) Standard.--Notwithstanding subsection (b)(2), in
issuing any rule under section 111 of the Clean Air Act (42
U.S.C. 7411) establishing standards of performance for
emissions of any greenhouse gas from new sources in such
subcategory, the Administrator of the Environmental Protection
Agency shall not set a standard based on the best system of
emission reduction unless--
(A) such standard has been achieved on average for
at least one continuous 12-month period (excluding
planned outages) by each of at least 3 units within
such subcategory--
(i) each of which is located at a different
electric generating station in the United
States;
(ii) which, collectively, are
representative of the operating characteristics
of electric generation at different locations
in the United States; and
(iii) each of which is operated for the
entire 12-month period on a full commercial
basis; and
(B) no results obtained from any demonstration
project are used in setting such standard.
(d) Technologies.--Nothing in this section shall be construed to
preclude the issuance, implementation, or enforcement of a standard of
performance that--
(1) is based on the use of one or more technologies that
are developed in a foreign country, but has been demonstrated
to be achievable at fossil fuel-fired electric utility
generating units in the United States; and
(2) meets the requirements of subsections (b) and (c), as
applicable.
SEC. 2302. CONGRESS TO SET EFFECTIVE DATE FOR STANDARDS OF PERFORMANCE
FOR EXISTING, MODIFIED, AND RECONSTRUCTED FOSSIL FUEL-
FIRED ELECTRIC UTILITY GENERATING UNITS.
(a) Applicability.--This section applies with respect to any rule
or guidelines issued by the Administrator of the Environmental
Protection Agency under section 111 of the Clean Air Act (42 U.S.C.
7411) that--
(1) establish any standard of performance for emissions of
any greenhouse gas from any modified or reconstructed source
that is a fossil fuel-fired electric utility generating unit;
or
(2) apply to the emissions of any greenhouse gas from an
existing source that is a fossil fuel-fired electric utility
generating unit.
(b) Congress To Set Effective Date.--A rule or guidelines described
in subsection (a) shall not take effect unless a Federal law is enacted
specifying such rule's or guidelines' effective date.
(c) Reporting.--A rule or guidelines described in subsection (a)
shall not take effect unless the Administrator of the Environmental
Protection Agency has submitted to Congress a report containing each of
the following:
(1) The text of such rule or guidelines.
(2) The economic impacts of such rule or guidelines,
including the potential effects on--
(A) economic growth, competitiveness, and jobs in
the United States;
(B) electricity ratepayers, including low-income
ratepayers in affected States;
(C) required capital investments and projected
costs for operation and maintenance of new equipment
required to be installed; and
(D) the global economic competitiveness of the
United States.
(3) The amount of greenhouse gas emissions that such rule
or guidelines are projected to reduce as compared to overall
global greenhouse gas emissions.
(d) Consultation.--In carrying out subsection (c), the
Administrator of the Environmental Protection Agency shall consult with
the Administrator of the Energy Information Administration, the
Comptroller General of the United States, the Director of the National
Energy Technology Laboratory, and the Under Secretary of Commerce for
Standards and Technology.
SEC. 2303. REPEAL OF EARLIER RULES AND GUIDELINES.
The following rules and guidelines shall be of no force or effect,
and shall be treated as though such rules and guidelines had never been
issued:
(1) The proposed rule--
(A) entitled ``Standards of Performance for
Greenhouse Gas Emissions for New Stationary Sources:
Electric Utility Generating Units'', published at 77
Fed. Reg. 22392 (April 13, 2012); and
(B) withdrawn pursuant to the notice entitled
``Withdrawal of Proposed Standards of Performance for
Greenhouse Gas Emissions for New Stationary Sources:
Electric Utility Generating Units'', signed by the
Administrator of the Environmental Protection Agency on
September 20, 2013, and identified by docket ID number
EPA-HQ-OAR-2011-0660.
(2) The proposed rule entitled ``Standards of Performance
for Greenhouse Gas Emissions from New Stationary Sources:
Electric Utility Generating Units'', signed by the
Administrator of the Environmental Protection Agency on
September 20, 2013, and identified by docket ID number EPA-HQ-
OAR-2013-0495.
(3) With respect to the proposed rule described in
paragraph (1), any successor or substantially similar proposed
or final rule that--
(A) is issued prior to the date of the enactment of
this Act;
(B) is applicable to any new source that is a
fossil fuel-fired electric utility generating unit; and
(C) does not meet the requirements under
subsections (b) and (c) of section 2.
(4) Any proposed or final rule or guidelines under section
111 of the Clean Air Act (42 U.S.C. 7411) that--
(A) are issued prior to the date of the enactment
of this Act; and
(B) establish any standard of performance for
emissions of any greenhouse gas from any modified or
reconstructed source that is a fossil fuel-fired
electric utility generating unit or apply to the
emissions of any greenhouse gas from an existing source
that is a fossil fuel-fired electric utility generating
unit.
SEC. 2304. DEFINITIONS.
In this subtitle:
(1) Demonstration project.--The term ``demonstration
project'' means a project to test or demonstrate the
feasibility of carbon capture and storage technologies that has
received Federal Government funding or financial assistance.
(2) Existing source.--The term ``existing source'' has the
meaning given such term in section 111(a) of the Clean Air Act
(42 U.S.C. 7411(a)), except such term shall not include any
modified source.
(3) Greenhouse gas.--The term ``greenhouse gas'' means any
of the following:
(A) Carbon dioxide.
(B) Methane.
(C) Nitrous oxide.
(D) Sulfur hexafluoride.
(E) Hydrofluorocarbons.
(F) Perfluorocarbons.
(4) Modification.--The term ``modification'' has the
meaning given such term in section 111(a) of the Clean Air Act
(42 U.S.C. 7411(a)).
(5) Modified source.--The term ``modified source'' means
any stationary source, the modification of which is commenced
after the date of the enactment of this Act.
(6) New source.--The term ``new source'' has the meaning
given such term in section 111(a) of the Clean Air Act (42
U.S.C. 7411(a)), except that such term shall not include any
modified source.
Subtitle D--Coal Residuals Reuse and Management
SEC. 2401. MANAGEMENT AND DISPOSAL OF COAL COMBUSTION RESIDUALS.
(a) In General.--Subtitle D of the Solid Waste Disposal Act (42
U.S.C. 6941 et seq.) is amended by adding at the end the following:
``SEC. 4011. MANAGEMENT AND DISPOSAL OF COAL COMBUSTION RESIDUALS.
``(a) State Permit Programs for Coal Combustion Residuals.--Each
State may adopt, implement, and enforce a coal combustion residuals
permit program if such State provides the notification required under
subsection (b)(1), and the certification required under subsection
(b)(2).
``(b) State Actions.--
``(1) Notification.--Not later than 6 months after the date
of enactment of this section (except as provided by the
deadline identified under subsection (d)(3)(B)), the Governor
of each State shall notify the Administrator, in writing,
whether such State will adopt and implement a coal combustion
residuals permit program.
``(2) Certification.--
``(A) In general.--Not later than 36 months after
the date of enactment of this section (except as
provided in subsection (f)(1)(A)), in the case of a
State that has notified the Administrator that it will
implement a coal combustion residuals permit program,
the head of the lead State implementing agency shall
submit to the Administrator a certification that such
coal combustion residuals permit program meets the
requirements described in subsection (c).
``(B) Contents.--A certification submitted under
this paragraph shall include--
``(i) a letter identifying the lead State
implementing agency, signed by the head of such
agency;
``(ii) identification of any other State
agencies involved with the implementation of
the coal combustion residuals permit program;
``(iii) an explanation of how the State
coal combustion residuals permit program meets
the requirements of this section, including a
description of the State's--
``(I) process to inspect or
otherwise determine compliance with
such permit program;
``(II) process to enforce the
requirements of such permit program;
``(III) public participation
process for the promulgation,
amendment, or repeal of regulations
for, and the issuance of permits under,
such permit program;
``(IV) statutes, regulations, or
policies pertaining to public access to
information, such as groundwater
monitoring data; and
``(V) statutes, regulations, or
policies pertaining to structural
integrity or dam safety that may be
applied to structures through such
permit program;
``(iv) a certification that the State has
in effect, at the time of certification,
statutes or regulations necessary to implement
a coal combustion residuals permit program that
meets the requirements described in subsection
(c);
``(v) copies of State statutes and
regulations described in clause (iv); and
``(vi) an emergency action plan for State
response to a leak or spill at a structure that
receives coal combustion residuals.
``(C) Updates.--A State may update the
certification as needed to reflect changes to the coal
combustion residuals permit program.
``(3) Maintenance of 4005(c) or 3006 program.--In order to
adopt or implement a coal combustion residuals permit program
under this section (including pursuant to subsection (f)), the
State implementing agency shall maintain an approved permit
program or other system of prior approval and conditions under
section 4005(c) or an authorized program under section 3006.
``(c) Requirements for a Coal Combustion Residuals Permit
Program.--A coal combustion residuals permit program shall consist of
the following:
``(1) General requirements.--
``(A) In general.--The implementing agency shall--
``(i) apply the subset of the revised
criteria described in paragraph (2) to owners
or operators of structures, including surface
impoundments, that receive coal combustion
residuals on or after the date of enactment of
this section;
``(ii) with respect to structures that are
receiving coal combustion residuals as of the
date of enactment of this section, take the
actions required under paragraph (3);
``(iii) impose requirements for surface
impoundments that do not meet certain criteria
pursuant to paragraph (4); and
``(iv) require that closure of structures
occur in accordance with paragraph (5).
``(B) Structural integrity.--
``(i) Engineering certification.--The
implementing agency shall require that an
independent registered professional engineer
certify that--
``(I) the design of each structure
that receives coal combustion residuals
on or after the date of enactment of
this section is in accordance with
recognized and generally accepted good
engineering practices for containment
of the maximum volume of coal
combustion residuals and liquids which
can be impounded therein; and
``(II) the construction and
maintenance of the structure will
ensure structural stability.
``(ii) Emergency action plan.--The
implementing agency shall require that the
owner or operator of any structure that is a
surface impoundment that receives coal
combustion residuals on or after the date of
enactment of this section and that is
classified by the State as posing a high hazard
potential pursuant to the guidelines published
by the Federal Emergency Management Agency
entitled `Federal Guidelines for Dam Safety:
Hazard Potential Classification System for
Dams' (FEMA Publication Number 333) prepare and
maintain an emergency action plan that
identifies responsible persons and actions to
be taken in the event of a dam safety
emergency.
``(iii) Inspection.--
``(I) In general.--The implementing
agency shall require that structures
that are surface impoundments that
receive coal combustion residuals on or
after the date of enactment of this
section be inspected not less than
annually by an independent registered
professional engineer to assure that
the design, operation, and maintenance
of the surface impoundment is in
accordance with recognized and
generally accepted good engineering
practices for containment of the
maximum volume of coal combustion
residuals and liquids which can be
impounded therein, so as to ensure dam
stability.
``(II) Potentially hazardous
conditions.--The implementing agency
shall require that if an inspection
under subclause (I), or a periodic
evaluation under clause (iv), reveals a
potentially hazardous condition, the
owner or operator of the structure
shall immediately take action to
mitigate the potentially hazardous
condition and notify appropriate State
and local first responders.
``(iv) Periodic evaluation.--The
implementing agency shall require that
structures that are surface impoundments that
receive coal combustion residuals on or after
the date of enactment of this section be
periodically evaluated for appearances of
structural weakness.
``(v) Deficiency.--
``(I) In general.--If the head of
the implementing agency determines that
a structure is deficient with respect
to the requirements in clause (i),
(iii), or (iv), the head of the agency
has the authority to require action to
correct the deficiency according to a
schedule determined by the agency.
``(II) Uncorrected deficiencies.--
If a deficiency is not corrected
according to the schedule, the head of
the implementing agency has the
authority to require that the structure
close in accordance with paragraph (5).
``(III) Dam safety consultation.--
In the case of a structure that is a
surface impoundment, the head of the
implementing agency shall, in making a
determination under subclause (I),
consult with appropriate State dam
safety officials.
``(C) Location.--The implementing agency shall
require that structures that first receive coal
combustion residuals on or after the date of enactment
of this section shall be constructed with a base
located a minimum of 2 feet above the upper limit of
the water table, unless it is demonstrated to the
satisfaction of the implementing agency that--
``(i) the hydrogeologic characteristics of
a structure and surrounding land would preclude
such a requirement; and
``(ii) the function and integrity of the
liner system will not be adversely impacted by
contact with the water table.
``(D) Wind dispersal.--
``(i) In general.--The implementing agency
shall require that owners or operators of
structures that receive coal combustion
residuals on or after the date of enactment of
this section address wind dispersal of dust by
requiring cover, or by wetting coal combustion
residuals with water to a moisture content that
prevents wind dispersal, facilitates
compaction, and does not result in free
liquids.
``(ii) Alternative methods.--Subject to the
review and approval by the implementing agency,
owners or operators of structures that receive
coal combustion residuals on or after the date
of enactment of this section may propose
alternative methods to address wind dispersal
of dust that will provide comparable or more
effective control of dust.
``(E) Permits.--The implementing agency shall
require that owners or operators of structures that
receive coal combustion residuals on or after the date
of enactment of this section apply for and obtain
permits incorporating the requirements of the coal
combustion residuals permit program.
``(F) Public availability of information.--Except
for information with respect to which disclosure is
prohibited under section 1905 of title 18, United
States Code, the implementing agency shall ensure
that--
``(i) documents for permit determinations
are made available for public review and
comment under the public participation process
described in subsection (b)(2)(B)(iii)(III) or
in subsection (e)(6), as applicable;
``(ii) final determinations on permit
applications are made known to the public; and
``(iii) groundwater monitoring data
collected under paragraph (2) is publicly
available.
``(G) Agency authority.--
``(i) In general.--The implementing agency
has the authority to--
``(I) obtain information necessary
to determine whether the owner or
operator of a structure is in
compliance with the requirements of
this subsection;
``(II) conduct or require
monitoring and testing to ensure that
structures are in compliance with the
requirements of this subsection; and
``(III) enter, at reasonable times,
any site or premise subject to the coal
combustion residuals permit program for
the purpose of inspecting structures
and reviewing records relevant to the
design, operation, and maintenance of
structures.
``(ii) Monitoring and testing.--If
monitoring or testing is conducted under clause
(i)(II) by or for the implementing agency, the
implementing agency shall, if requested,
provide to the owner or operator--
``(I) a written description of the
monitoring or testing completed;
``(II) at the time of sampling, a
portion of each sample equal in volume
or weight to the portion retained by or
for the implementing agency; and
``(III) a copy of the results of
any analysis of samples collected by or
for the implementing agency.
``(2) Revised criteria.--The subset of the revised criteria
referred to in paragraph (1)(A)(i) are as follows:
``(A) Design requirements.--For new structures, and
lateral expansions of existing structures, that first
receive coal combustion residuals on or after the date
of enactment of this section, the revised criteria
regarding design requirements described in section
258.40 of title 40, Code of Federal Regulations, except
that the leachate collection system requirements
described in section 258.40(a)(2) of title 40, Code of
Federal Regulations, do not apply to structures that
are surface impoundments.
``(B) Groundwater monitoring and corrective
action.--For all structures that receive coal
combustion residuals on or after the date of enactment
of this section, the revised criteria regarding
groundwater monitoring and corrective action
requirements described in subpart E of part 258 of
title 40, Code of Federal Regulations, except that, for
the purposes of this subparagraph, the revised criteria
shall also include--
``(i) for the purposes of detection
monitoring, the constituents boron, chloride,
conductivity, fluoride, mercury, pH, sulfate,
sulfide, and total dissolved solids; and
``(ii) for the purposes of assessment
monitoring, establishing a groundwater
protection standard, and assessment of
corrective measures, the constituents aluminum,
boron, chloride, fluoride, iron, manganese,
molybdenum, pH, sulfate, and total dissolved
solids.
``(C) Closure.--For all structures that receive
coal combustion residuals on or after the date of
enactment of this section, in a manner consistent with
paragraph (5), the revised criteria for closure
described in subsections (a) through (c) and (h)
through (j) of section 258.60 of title 40, Code of
Federal Regulations.
``(D) Post-closure.--For all structures that
receive coal combustion residuals on or after the date
of enactment of this section, the revised criteria for
post-closure care described in section 258.61 of title
40, Code of Federal Regulations, except for the
requirement described in subsection (a)(4) of that
section.
``(E) Location restrictions.--The revised criteria
for location restrictions described in--
``(i) for new structures, and lateral
expansions of existing structures, that first
receive coal combustion residuals on or after
the date of enactment of this section, sections
258.11 through 258.15 of title 40, Code of
Federal Regulations; and
``(ii) for existing structures that receive
coal combustion residuals on or after the date
of enactment of this section, sections 258.11
and 258.15 of title 40, Code of Federal
Regulations.
``(F) Air quality.--For all structures that receive
coal combustion residuals on or after the date of
enactment of this section, the revised criteria for air
quality described in section 258.24 of title 40, Code
of Federal Regulations.
``(G) Financial assurance.--For all structures that
receive coal combustion residuals on or after the date
of enactment of this section, the revised criteria for
financial assurance described in subpart G of part 258
of title 40, Code of Federal Regulations.
``(H) Surface water.--For all structures that
receive coal combustion residuals on or after the date
of enactment of this section, the revised criteria for
surface water described in section 258.27 of title 40,
Code of Federal Regulations.
``(I) Recordkeeping.--For all structures that
receive coal combustion residuals on or after the date
of enactment of this section, the revised criteria for
recordkeeping described in section 258.29 of title 40,
Code of Federal Regulations.
``(J) Run-on and run-off control systems for land-
based units.--For all landfills and other land-based
units, other than surface impoundments, that receive
coal combustion residuals on or after the date of
enactment of this section, the revised criteria for
run-on and run-off control systems described in section
258.26 of title 40, Code of Federal Regulations.
``(K) Run-off control systems for surface
impoundments.--For all surface impoundments that
receive coal combustion residuals on or after the date
of enactment of this section, the revised criteria for
run-off control systems described in section
258.26(a)(2) of title 40, Code of Federal Regulations.
``(3) Permit program implementation for existing
structures.--
``(A) Notification.--Not later than the date on
which a State submits a certification under subsection
(b)(2), not later than 30 months after the
Administrator receives notice under subsection
(e)(1)(A), or not later than 36 months after the date
of enactment of this section with respect to a coal
combustion residuals permit program that is being
implemented by the Administrator under subsection
(e)(3), as applicable, the implementing agency shall
notify owners or operators of structures that are
receiving coal combustion residuals as of the date of
enactment of this section within the State of--
``(i) the obligation to apply for and
obtain a permit under subparagraph (C); and
``(ii) the requirements referred to in
subparagraph (B).
``(B) Compliance with certain requirements.--Not
later than 12 months after the date on which a State
submits a certification under subsection (b)(2), not
later than 42 months after the Administrator receives
notice under subsection (e)(1)(A), or not later than 48
months after the date of enactment of this section with
respect to a coal combustion residuals permit program
that is being implemented by the Administrator under
subsection (e)(3), as applicable, the implementing
agency shall require owners or operators of structures
that are receiving coal combustion residuals as of the
date of enactment of this section to comply with--
``(i) the requirements under paragraphs
(1)(B) (ii) and (iii), (1)(D), (2)(B), (2)(F),
(2)(H), (2)(J), and (2)(K); and
``(ii) the groundwater recordkeeping
requirement described in section 258.29(a)(5)
of title 40, Code of Federal Regulations.
``(C) Permits.--
``(i) Permit deadline.--Not later than 48
months after the date on which a State submits
a certification under subsection (b)(2), not
later than 78 months after the Administrator
receives notice under subsection (e)(1)(A), or
not later than 84 months after the date of
enactment of this section with respect to a
coal combustion residuals permit program that
is being implemented by the Administrator under
subsection (e)(3), as applicable, the
implementing agency shall issue, with respect
to a structure that is receiving coal
combustion residuals as of the date of
enactment of this section, a final permit
incorporating the requirements of the coal
combustion residuals permit program, or a final
denial for an application submitted requesting
such a permit.
``(ii) Application deadline.--The
implementing agency shall identify, in
collaboration with the owner or operator of a
structure described in clause (i), a reasonable
deadline by which the owner or operator shall
submit a permit application under such clause.
``(D) Interim operation.--
``(i) Prior to deadlines.--With respect to
any period of time on or after the date of
enactment of this section but prior to the
applicable deadline in subparagraph (B), the
owner or operator of a structure that is
receiving coal combustion residuals as of the
date of enactment of this section may continue
to operate such structure until such applicable
deadline under the applicable authority in
effect.
``(ii) Prior to permit.--Unless the
implementing agency determines that the
structure should close pursuant to paragraph
(5), if the owner or operator of a structure
that is receiving coal combustion residuals as
of the date of enactment of this section meets
the requirements referred to in subparagraph
(B) by the applicable deadline in such
subparagraph, the owner or operator may operate
the structure until such time as the
implementing agency issues, under subparagraph
(C), a final permit incorporating the
requirements of the coal combustion residuals
permit program, or a final denial for an
application submitted requesting such a permit.
``(4) Requirements for surface impoundments that do not
meet certain criteria.--
``(A) Surface impoundments that require assessment
of corrective measures within 10 years of the date of
enactment.--
``(i) In general.--In addition to the
groundwater monitoring and corrective action
requirements described in paragraph (2)(B), the
implementing agency shall require a surface
impoundment that receives coal combustion
residuals on or after the date of enactment of
this section to comply with the requirements in
clause (ii) of this subparagraph and clauses
(i) and (ii) of subparagraph (D) if the surface
impoundment--
``(I) does not--
``(aa) have a liner system
described in section 258.40(b)
of title 40, Code of Federal
Regulations; and
``(bb) meet the design
criteria described in section
258.40(a)(1) of title 40, Code
of Federal Regulations; and
``(II) within 10 years after the
date of enactment of this section, is
required under section 258.56(a) of
title 40, Code of Federal Regulations,
to undergo an assessment of corrective
measures for any constituent covered
under subpart E of part 258 of title
40, Code of Federal Regulations, or
otherwise identified in paragraph
(2)(B)(ii) of this subsection, for
which assessment groundwater monitoring
is required.
``(ii) Deadline to meet groundwater
protection standard.--Except as provided in
subparagraph (C), the implementing agency shall
require that the groundwater protection
standard, for surface impoundments identified
in clause (i) of this subparagraph, established
by the implementing agency under section
258.55(h) or 258.55(i) of title 40, Code of
Federal Regulations, for any constituent for
which corrective measures are required shall be
met--
``(I) as soon as practicable at the
relevant point of compliance, as
described in section 258.40(d) of title
40, Code of Federal Regulations; and
``(II) not later than 10 years
after the date of enactment of this
section.
``(B) Surface impoundments subject to a state
corrective action requirement as of the date of
enactment.--
``(i) In general.--In addition to the
groundwater monitoring and corrective action
requirements described in paragraph (2)(B), the
implementing agency shall require a surface
impoundment that receives coal combustion
residuals on or after the date of enactment of
this section to comply with the requirements in
clause (ii) of this subparagraph and clauses
(i) and (ii) of subparagraph (D) if the surface
impoundment--
``(I) does not--
``(aa) have a liner system
described in section 258.40(b)
of title 40, Code of Federal
Regulations; and
``(bb) meet the design
criteria described in section
258.40(a)(1) of title 40, Code
of Federal Regulations; and
``(II) as of the date of enactment
of this section, is subject to a State
corrective action requirement.
``(ii) Deadline to meet groundwater
protection standard.--Except as provided in
subparagraph (C), the implementing agency shall
require that the groundwater protection
standard, for surface impoundments identified
in clause (i) of this subparagraph, established
by the implementing agency under section
258.55(h) or 258.55(i) of title 40, Code of
Federal Regulations, for any constituent for
which corrective measures are required shall be
met--
``(I) as soon as practicable at the
relevant point of compliance, as
described in section 258.40(d) of title
40, Code of Federal Regulations; and
``(II) not later than 8 years after
the date of enactment of this section.
``(C) Extension of deadline.--
``(i) In general.--Except as provided in
clause (ii) of this subparagraph, the deadline
for meeting a groundwater protection standard
under subparagraph (A)(ii) or (B)(ii) may be
extended by the implementing agency, after
opportunity for public notice and comment under
the public participation process described in
subsection (b)(2)(B)(iii)(III), or in
subsection (e)(6) based on--
``(I) the effectiveness of any
interim measures implemented by the
owner or operator of the facility under
section 258.58(a)(3) of title 40, Code
of Federal Regulations;
``(II) the level of progress
demonstrated in meeting the groundwater
protection standard;
``(III) the potential for other
adverse human health or environmental
exposures attributable to the
contamination from the surface
impoundment undergoing corrective
action; and
``(IV) the lack of available
alternative management capacity for the
coal combustion residuals and related
materials managed in the impoundment at
the facility at which the impoundment
is located if the owner or operator has
used best efforts, as necessary, to
design, obtain any necessary permits,
finance, construct, and render
operational the alternative management
capacity during the time period for
meeting a groundwater protection
standard in subparagraph (A)(ii) or
(B)(ii).
``(ii) Exception.--The deadline under
subparagraph (A)(ii) or (B)(ii) shall not be
extended if there has been contamination of
public or private drinking water systems
attributable to a surface impoundment
undergoing corrective action, unless the
contamination has been addressed by providing a
permanent replacement water system.
``(D) Additional requirements.--
``(i) Closure.--If the deadline under
subparagraph (A)(ii), (B)(ii), or (C) is not
satisfied, the surface impoundment shall cease
receiving coal combustion residuals and
initiate closure under paragraph (5).
``(ii) Interim measures.--
``(I) In general.--Except as
provided in subclause (II), not later
than 90 days after the date on which
the assessment of corrective measures
is initiated, the owner or operator of
a surface impoundment described in
subparagraph (A) or (B) shall implement
interim measures, as necessary, under
the factors in section 258.58(a)(3) of
title 40, Code of Federal Regulations.
``(II) Impoundments subject to
state corrective action requirement as
of the date of enactment.--Subclause
(I) shall only apply to surface
impoundments subject to a State
corrective action requirement as of the
date of enactment of this section if
the owner or operator has not
implemented interim measures, as
necessary, under the factors in section
258.58(a)(3) of title 40, Code of
Federal Regulations.
``(E) Surface impoundments that require assessment
of corrective measures more than 10 years after date of
enactment.--
``(i) In general.--In addition to the
groundwater monitoring and corrective action
requirements described in paragraph (2)(B), the
implementing agency shall require a surface
impoundment that receives coal combustion
residuals on or after the date of enactment of
this section to comply with the requirements in
clause (ii) if the surface impoundment--
``(I) does not--
``(aa) have a liner system
described in section 258.40(b)
of title 40, Code of Federal
Regulations; and
``(bb) meet the design
criteria described in section
258.40(a)(1) of title 40, Code
of Federal Regulations; and
``(II) more than 10 years after the
date of enactment of this section, is
required under section 258.56(a) title
40, Code of Federal Regulations, to
undergo an assessment of corrective
measures for any constituent covered
under subpart E of part 258 of title
40, Code of Federal Regulations, or
otherwise identified in paragraph
(2)(B)(ii) of this subsection, for
which assessment groundwater monitoring
is required.
``(ii) Requirements.--
``(I) Closure.--The surface
impoundments identified in clause (i)
shall cease receiving coal combustion
residuals and initiate closure in
accordance with paragraph (5) after
alternative management capacity at the
facility is available for the coal
combustion residuals and related
materials managed in the impoundment.
``(II) Best efforts.--The
alternative management capacity shall
be developed as soon as practicable
with the owner or operator using best
efforts to design, obtain necessary
permits for, finance, construct, and
render operational the alternative
management capacity.
``(III) Alternative capacity
management plan.--The owner or operator
shall, in collaboration with the
implementing agency, prepare a written
plan that describes the steps necessary
to develop the alternative management
capacity and includes a schedule for
completion.
``(IV) Public participation.--The
plan described in subclause (III) shall
be subject to public notice and comment
under the public participation process
described in subsection
(b)(2)(B)(iii)(III) or in subsection
(e)(6), as applicable.
``(5) Closure.--
``(A) In general.--If it is determined by the
implementing agency that a structure should close
because the requirements of a coal combustion residuals
permit program are not being satisfied with respect to
such structure, or if it is determined by the owner or
operator that a structure should close, the time period
and method for the closure of such structure shall be
set forth in a closure plan that establishes a deadline
for completion of closure as soon as practicable and
that takes into account the nature and the site-
specific characteristics of the structure to be closed.
``(B) Surface impoundment.--In the case of a
surface impoundment, the closure plan under
subparagraph (A) shall require, at a minimum, the
removal of liquid and the stabilization of remaining
waste, as necessary to support the final cover.
``(d) Federal Review of State Permit Programs.--
``(1) In general.--The Administrator shall provide to a
State written notice and an opportunity to remedy deficiencies
in accordance with paragraph (3) if at any time the State--
``(A) does not satisfy the notification requirement
under subsection (b)(1);
``(B) has not submitted a certification required
under subsection (b)(2);
``(C) does not satisfy the maintenance requirement
under subsection (b)(3);
``(D) is not implementing a coal combustion
residuals permit program, with respect to which the
State has submitted a certification under subsection
(b)(2), that meets the requirements described in
subsection (c);
``(E) is not implementing a coal combustion
residuals permit program, with respect to which the
State has submitted a certification under subsection
(b)(2)--
``(i) that is consistent with such
certification; and
``(ii) for which the State continues to
have in effect statutes or regulations
necessary to implement such program; or
``(F) does not make available to the Administrator,
within 90 days of a written request, specific
information necessary for the Administrator to
ascertain whether the State has satisfied the
requirements described in subparagraphs (A) through
(E).
``(2) Request.--If a request described in paragraph (1)(F)
is proposed pursuant to a petition to the Administrator, the
Administrator shall only make the request if the Administrator
does not possess the information necessary to ascertain whether
the State has satisfied the requirements described in
subparagraphs (A) through (E) of such paragraph.
``(3) Contents of notice; deadline for response.--A notice
provided under paragraph (1) shall--
``(A) include findings of the Administrator
detailing any applicable deficiencies described in
subparagraphs (A) through (F) of paragraph (1); and
``(B) identify, in collaboration with the State, a
reasonable deadline by which the State shall remedy
such applicable deficiencies, which shall be--
``(i) in the case of a deficiency described
in subparagraphs (A) through (E) of paragraph
(1), not earlier than 180 days after the date
on which the State receives the notice; and
``(ii) in the case of a deficiency
described in paragraph (1)(F), not later than
90 days after the date on which the State
receives the notice.
``(4) Criteria for determining deficiency of state permit
program.--In making a determination whether a State has failed
to satisfy the requirements described in subparagraphs (A)
through (E) of paragraph (1), or a determination under
subsection (e)(1)(B), the Administrator shall consider, as
appropriate--
``(A) whether the State's statutes or regulations
to implement a coal combustion residuals permit program
are not sufficient to meet the requirements described
in subsection (c) because of--
``(i) failure of the State to promulgate or
enact new statutes or regulations when
necessary; or
``(ii) action by a State legislature or
court striking down or limiting such State
statutes or regulations;
``(B) whether the operation of the State coal
combustion residuals permit program fails to comply
with the requirements of subsection (c) because of--
``(i) failure of the State to issue permits
as required in subsection (c)(1)(E);
``(ii) repeated issuance of permits by the
State which do not meet the requirements of
subsection (c);
``(iii) failure of the State to comply with
the public participation requirements of this
section; or
``(iv) failure of the State to implement
corrective action requirements as described in
subsection (c)(2)(B); and
``(C) whether the enforcement of a State coal
combustion residuals permit program fails to comply
with the requirements of this section because of--
``(i) failure to act on violations of
permits, as identified by the State; or
``(ii) repeated failure by the State to
inspect or otherwise determine compliance
pursuant to the process identified in
subsection (b)(2)(B)(iii)(I).
``(e) Implementation by Administrator.--
``(1) Federal backstop authority.--The Administrator shall
implement a coal combustion residuals permit program for a
State only if--
``(A) the Governor of the State notifies the
Administrator under subsection (b)(1) that the State
will not adopt and implement a permit program;
``(B) the State has received a notice under
subsection (d) and the Administrator determines, after
providing a 30-day period for notice and public
comment, that the State has failed, by the deadline
identified in the notice under subsection (d)(3)(B), to
remedy the deficiencies detailed in the notice under
subsection (d)(3)(A); or
``(C) the State informs the Administrator, in
writing, that such State will no longer implement such
a permit program.
``(2) Review.--A State may obtain a review of a
determination by the Administrator under this subsection as if
the determination was a final regulation for purposes of
section 7006.
``(3) Other structures.--For structures that receive coal
combustion residuals on or after the date of enactment of this
section located on property within the exterior boundaries of a
State that the State does not have authority or jurisdiction to
regulate, the Administrator shall implement a coal combustion
residuals permit program only for those structures.
``(4) Requirements.--If the Administrator implements a coal
combustion residuals permit program for a State under paragraph
(1) or (3), the permit program shall consist of the
requirements described in subsection (c).
``(5) Enforcement.--
``(A) In general.--If the Administrator implements
a coal combustion residuals permit program for a State
under paragraph (1)--
``(i) the authorities referred to in
section 4005(c)(2)(A) shall apply with respect
to coal combustion residuals and structures for
which the Administrator is implementing the
coal combustion residuals permit program; and
``(ii) the Administrator may use those
authorities to inspect, gather information, and
enforce the requirements of this section in the
State.
``(B) Other structures.--If the Administrator
implements a coal combustion residuals permit program
under paragraph (3)--
``(i) the authorities referred to in
section 4005(c)(2)(A) shall apply with respect
to coal combustion residuals and structures for
which the Administrator is implementing the
coal combustion residuals permit program; and
``(ii) the Administrator may use those
authorities to inspect, gather information, and
enforce the requirements of this section for
the structures for which the Administrator is
implementing the coal combustion residuals
permit program.
``(6) Public participation process.--If the Administrator
implements a coal combustion residuals permit program for a
State under this subsection, the Administrator shall provide a
30-day period for the public participation process required in
paragraphs (1)(F)(i), (4)(C)(i), and (4)(E)(ii)(IV) of
subsection (c).
``(f) State Control After Implementation by Administrator.--
``(1) State control.--
``(A) New adoption, or resumption of, and
implementation by state.--For a State for which the
Administrator is implementing a coal combustion
residuals permit program under subsection (e)(1)(A), or
subsection (e)(1)(C), the State may adopt and implement
such a permit program by--
``(i) notifying the Administrator that the
State will adopt and implement such a permit
program;
``(ii) not later than 6 months after the
date of such notification, submitting to the
Administrator a certification under subsection
(b)(2); and
``(iii) receiving from the Administrator--
``(I) a determination, after
providing a 30-day period for notice
and public comment, that the State coal
combustion residuals permit program
meets the requirements described in
subsection (c); and
``(II) a timeline for transition of
control of the coal combustion
residuals permit program.
``(B) Remedying deficient permit program.--For a
State for which the Administrator is implementing a
coal combustion residuals permit program under
subsection (e)(1)(B), the State may adopt and implement
such a permit program by--
``(i) remedying only the deficiencies
detailed in the notice pursuant to subsection
(d)(3)(A); and
``(ii) receiving from the Administrator--
``(I) a determination, after
providing a 30-day period for notice
and public comment, that the
deficiencies detailed in such notice
have been remedied; and
``(II) a timeline for transition of
control of the coal combustion
residuals permit program.
``(2) Review of determination.--
``(A) Determination required.--The Administrator
shall make a determination under paragraph (1) not
later than 90 days after the date on which the State
submits a certification under paragraph (1)(A)(ii), or
notifies the Administrator that the deficiencies have
been remedied pursuant to paragraph (1)(B)(i), as
applicable.
``(B) Review.--A State may obtain a review of a
determination by the Administrator under paragraph (1)
as if such determination was a final regulation for
purposes of section 7006.
``(3) Implementation during transition.--
``(A) Effect on actions and orders.--Program
requirements of, and actions taken or orders issued
pursuant to, a coal combustion residuals permit program
shall remain in effect if--
``(i) a State takes control of its coal
combustion residuals permit program from the
Administrator under paragraph (1); or
``(ii) the Administrator takes control of a
coal combustion residuals permit program from a
State under subsection (e).
``(B) Change in requirements.--Subparagraph (A)
shall apply to such program requirements, actions, and
orders until such time as--
``(i) the implementing agency changes the
requirements of the coal combustion residuals
permit program with respect to the basis for
the action or order; or
``(ii) the State or the Administrator,
whichever took the action or issued the order,
certifies the completion of a corrective action
that is the subject of the action or order.
``(4) Single permit program.--If a State adopts and
implements a coal combustion residuals permit program under
this subsection, the Administrator shall cease to implement the
permit program implemented under subsection (e)(1) for such
State.
``(g) Effect on Determination Under 4005(c) or 3006.--The
Administrator shall not consider the implementation of a coal
combustion residuals permit program by the Administrator under
subsection (e) in making a determination of approval for a permit
program or other system of prior approval and conditions under section
4005(c) or of authorization for a program under section 3006.
``(h) Authority.--
``(1) State authority.--Nothing in this section shall
preclude or deny any right of any State to adopt or enforce any
regulation or requirement respecting coal combustion residuals
that is more stringent or broader in scope than a regulation or
requirement under this section.
``(2) Authority of the administrator.--
``(A) In general.--Except as provided in
subsections (d) and (e) and section 6005, the
Administrator shall, with respect to the regulation of
coal combustion residuals, defer to the States pursuant
to this section.
``(B) Imminent hazard.--Nothing in this section
shall be construed as affecting the authority of the
Administrator under section 7003 with respect to coal
combustion residuals.
``(C) Enforcement assistance only upon request.--
Upon request from the head of a lead State agency that
is implementing a coal combustion residuals permit
program, the Administrator may provide to such State
agency only the enforcement assistance requested.
``(D) Concurrent enforcement.--Except as provided
in subparagraph (C), the Administrator shall not have
concurrent enforcement authority when a State is
implementing a coal combustion residuals permit
program, including during any period of interim
operation described in subsection (c)(3)(D).
``(E) Other authority.--The Administrator shall not
have authority to finalize the proposed rule published
at pages 35128 through 35264 of volume 75 of the
Federal Register (June 21, 2010).
``(F) Other response authority.--Nothing in this
section shall be construed as affecting the authority
of the Administrator under the Comprehensive
Environmental Response, Compensation, and Liability Act
of 1980 (42 U.S.C. 9601 et seq.) with respect to coal
combustion residuals.
``(3) Citizen suits.--Nothing in this section shall be
construed to affect the authority of a person to commence a
civil action in accordance with section 7002.
``(i) Mine Reclamation Activities.--A coal combustion residuals
permit program implemented by the Administrator under subsection (e)
shall not apply to the utilization, placement, and storage of coal
combustion residuals at surface mining and reclamation operations.
``(j) Definitions.--In this section:
``(1) Coal combustion residuals.--The term `coal combustion
residuals' means--
``(A) the solid wastes listed in section
3001(b)(3)(A)(i), including recoverable materials from
such wastes;
``(B) coal combustion wastes that are co-managed
with wastes produced in conjunction with the combustion
of coal, provided that such wastes are not segregated
and disposed of separately from the coal combustion
wastes and comprise a relatively small proportion of
the total wastes being disposed in the structure;
``(C) fluidized bed combustion wastes;
``(D) wastes from the co-burning of coal with non-
hazardous secondary materials, provided that coal makes
up at least 50 percent of the total fuel burned; and
``(E) wastes from the co-burning of coal with
materials described in subparagraph (A) that are
recovered from monofills.
``(2) Coal combustion residuals permit program.--The term
`coal combustion residuals permit program' means all of the
authorities, activities, and procedures that comprise the
system of prior approval and conditions implemented by or for a
State to regulate the management and disposal of coal
combustion residuals.
``(3) Code of federal regulations.--The term `Code of
Federal Regulations' means the Code of Federal Regulations (as
in effect on the date of enactment of this section) or any
successor regulations.
``(4) Implementing agency.--The term `implementing agency'
means the agency responsible for implementing a coal combustion
residuals permit program for a State, which shall either be the
lead State implementing agency identified under subsection
(b)(2)(B)(i) or the Administrator pursuant to subsection (e).
``(5) Permit; prior approval and conditions.--Except as
provided in subsections (b)(3) and (g), the terms `permit' and
`prior approval and conditions' mean any authorization,
license, or equivalent control document that incorporates the
requirements of subsection (c).
``(6) Revised criteria.--The term `revised criteria' means
the criteria promulgated for municipal solid waste landfill
units under section 4004(a) and under section 1008(a)(3), as
revised under section 4010(c).
``(7) Structure.--
``(A) In general.--Except as provided in
subparagraph (B), the term `structure' means a
landfill, surface impoundment, or other land-based unit
which receives, or is intended to receive, coal
combustion residuals.
``(B) De minimis receipt.--The term `structure'
does not include any land-based unit that receives only
de minimis quantities of coal combustion residuals if
the presence of coal combustion residuals is incidental
to the material managed in the unit.''.
(b) Conforming Amendment.--The table of contents contained in
section 1001 of the Solid Waste Disposal Act is amended by inserting
after the item relating to section 4010 the following:
``Sec. 4011. Management and disposal of coal combustion residuals.''.
SEC. 2402. 2000 REGULATORY DETERMINATION.
Nothing in this subtitle, or the amendments made by this subtitle,
shall be construed to alter in any manner the Environmental Protection
Agency's regulatory determination entitled ``Notice of Regulatory
Determination on Wastes From the Combustion of Fossil Fuels'',
published at 65 Fed. Reg. 32214 (May 22, 2000), that the fossil fuel
combustion wastes addressed in that determination do not warrant
regulation under subtitle C of the Solid Waste Disposal Act (42 U.S.C.
6921 et seq.).
SEC. 2403. TECHNICAL ASSISTANCE.
Nothing in this subtitle, or the amendments made by this subtitle,
shall be construed to affect the authority of a State to request, or
the Administrator of the Environmental Protection Agency to provide,
technical assistance under the Solid Waste Disposal Act (42 U.S.C. 6901
et seq.).
SEC. 2404. FEDERAL POWER ACT.
Nothing in this subtitle, or the amendments made by this subtitle,
shall be construed to affect the obligations of an owner or operator of
a structure (as defined in section 4011 of the Solid Waste Disposal
Act, as added by this subtitle) under section 215(b)(1) of the Federal
Power Act (16 U.S.C. 824o(b)(1)).
TITLE III--REDUCING FRIVOLOUS LEGAL COSTS
Subtitle A--Lawsuit Abuse Reduction Act
SEC. 3101. ATTORNEY ACCOUNTABILITY.
(a) Sanctions Under Rule 11.--Rule 11(c) of the Federal Rules of
Civil Procedure is amended--
(1) in paragraph (1), by striking ``may'' and inserting
``shall'';
(2) in paragraph (2), by striking ``Rule 5'' and all that
follows through ``motion.'' and inserting ``Rule 5.''; and
(3) in paragraph (4), by striking ``situated'' and all that
follows through the end of the paragraph and inserting
``situated, and to compensate the parties that were injured by
such conduct. Subject to the limitations in paragraph (5), the
sanction shall consist of an order to pay to the party or
parties the amount of the reasonable expenses incurred as a
direct result of the violation, including reasonable attorneys'
fees and costs. The court may also impose additional
appropriate sanctions, such as striking the pleadings,
dismissing the suit, or other directives of a nonmonetary
nature, or, if warranted for effective deterrence, an order
directing payment of a penalty into the court.''.
(b) Rule of Construction.--Nothing in this subtitle or an amendment
made by this subtitle shall be construed to bar or impede the assertion
or development of new claims, defenses, or remedies under Federal,
State, or local laws, including civil rights laws, or under the
Constitution of the United States.
Subtitle B--Furthering Asbestos Claim Transparency in Bankruptcy
SEC. 3201. AMENDMENTS.
Section 524(g) of title 11, United States Code, is amended by
adding at the end the following:
``(8) A trust described in paragraph (2) shall, subject to section
107--
``(A) file with the bankruptcy court, not later than 60
days after the end of every quarter, a report that shall be
made available on the court's public docket and with respect to
such quarter--
``(i) describes each demand the trust received
from, including the name and exposure history of, a
claimant and the basis for any payment from the trust
made to such claimant; and
``(ii) does not include any confidential medical
record or the claimant's full social security number;
and
``(B) upon written request, and subject to payment
(demanded at the option of the trust) for any reasonable cost
incurred by the trust to comply with such request, provide in a
timely manner any information related to payment from, and
demands for payment from, such trust, subject to appropriate
protective orders, to any party to any action in law or equity
if the subject of such action concerns liability for asbestos
exposure.''.
SEC. 3202. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.
(a) Effective Date.--Except as provided in subsection (b), this
subtitle and the amendments made by this subtitle shall take effect on
the date of the enactment of this subtitle.
(b) Application of Amendments.--The amendments made by this
subtitle shall apply with respect to cases commenced under title 11 of
the United States Code before, on, or after the date of the enactment
of this subtitle.
Subtitle C--Innovation Act
SEC. 3301. DEFINITIONS.
In this subtitle:
(1) Director.--The term ``Director'' means the Under
Secretary of Commerce for Intellectual Property and Director of
the United States Patent and Trademark Office.
(2) Office.--The term ``Office'' means the United States
Patent and Trademark Office.
SEC. 3302. PATENT INFRINGEMENT ACTIONS.
(a) Pleading Requirements.--
(1) Amendment.--Chapter 29 of title 35, United States Code,
is amended by inserting after section 281 the following:
``Sec. 281A. Pleading requirements for patent infringement actions
``(a) Pleading Requirements.--Except as provided in subsection (b),
in a civil action in which a party asserts a claim for relief arising
under any Act of Congress relating to patents, a party alleging
infringement shall include in the initial complaint, counterclaim, or
cross-claim for patent infringement, unless the information is not
reasonably accessible to such party, the following:
``(1) An identification of each patent allegedly infringed.
``(2) An identification of each claim of each patent
identified under paragraph (1) that is allegedly infringed.
``(3) For each claim identified under paragraph (2), an
identification of each accused process, machine, manufacture,
or composition of matter (referred to in this section as an
`accused instrumentality') alleged to infringe the claim.
``(4) For each accused instrumentality identified under
paragraph (3), an identification with particularity, if known,
of--
``(A) the name or model number of each accused
instrumentality; or
``(B) if there is no name or model number, a
description of each accused instrumentality.
``(5) For each accused instrumentality identified under
paragraph (3), a clear and concise statement of--
``(A) where each element of each claim identified
under paragraph (2) is found within the accused
instrumentality; and
``(B) with detailed specificity, how each
limitation of each claim identified under paragraph (2)
is met by the accused instrumentality.
``(6) For each claim of indirect infringement, a
description of the acts of the alleged indirect infringer that
contribute to or are inducing the direct infringement.
``(7) A description of the authority of the party alleging
infringement to assert each patent identified under paragraph
(1) and of the grounds for the court's jurisdiction.
``(8) A clear and concise description of the principal
business, if any, of the party alleging infringement.
``(9) A list of each complaint filed, of which the party
alleging infringement has knowledge, that asserts or asserted
any of the patents identified under paragraph (1).
``(10) For each patent identified under paragraph (1),
whether a standard-setting body has specifically declared such
patent to be essential, potentially essential, or having
potential to become essential to that standard-setting body,
and whether the United States Government or a foreign
government has imposed specific licensing requirements with
respect to such patent.
``(b) Information Not Readily Accessible.--If information required
to be disclosed under subsection (a) is not readily accessible to a
party, that information may instead be generally described, along with
an explanation of why such undisclosed information was not readily
accessible, and of any efforts made by such party to access such
information.
``(c) Confidential Information.--A party required to disclose
information described under subsection (a) may file, under seal,
information believed to be confidential, with a motion setting forth
good cause for such sealing. If such motion is denied by the court, the
party may seek to file an amended complaint.
``(d) Exemption.--A civil action that includes a claim for relief
arising under section 271(e)(2) shall not be subject to the
requirements of subsection (a).''.
(2) Conforming amendment.--The table of sections for
chapter 29 of title 35, United States Code, is amended by
inserting after the item relating to section 281 the following
new item:
``281A. Pleading requirements for patent infringement actions.''.
(b) Fees and Other Expenses.--
(1) Amendment.--Section 285 of title 35, United States
Code, is amended to read as follows:
``Sec. 285. Fees and other expenses
``(a) Award.--The court shall award, to a prevailing party,
reasonable fees and other expenses incurred by that party in connection
with a civil action in which any party asserts a claim for relief
arising under any Act of Congress relating to patents, unless the court
finds that the position and conduct of the nonprevailing party or
parties were reasonably justified in law and fact or that special
circumstances (such as severe economic hardship to a named inventor)
make an award unjust.
``(b) Certification and Recovery.--Upon motion of any party to the
action, the court shall require another party to the action to certify
whether or not the other party will be able to pay an award of fees and
other expenses if such an award is made under subsection (a). If a
nonprevailing party is unable to pay an award that is made against it
under subsection (a), the court may make a party that has been joined
under section 299(d) with respect to such party liable for the
unsatisfied portion of the award.
``(c) Covenant Not To Sue.--A party to a civil action that asserts
a claim for relief arising under any Act of Congress relating to
patents against another party, and that subsequently unilaterally
extends to such other party a covenant not to sue for infringement with
respect to the patent or patents at issue, shall be deemed to be a
nonprevailing party (and the other party the prevailing party) for
purposes of this section, unless the party asserting such claim would
have been entitled, at the time that such covenant was extended, to
voluntarily dismiss the action or claim without a court order under
Rule 41 of the Federal Rules of Civil Procedure.''.
(2) Conforming amendment and amendment.--
(A) Conforming amendment.--The item relating to
section 285 of the table of sections for chapter 29 of
title 35, United States Code, is amended to read as
follows:
``285. Fees and other expenses.''.
(B) Amendment.--Section 273 of title 35, United
States Code, is amended by striking subsections (f) and
(g).
(3) Effective date.--The amendments made by this subsection
shall take effect on the date of the enactment of this Act and
shall apply to any action for which a complaint is filed on or
after the first day of the 6-month period ending on that
effective date.
(c) Joinder of Interested Parties.--Section 299 of title 35, United
States Code, is amended by adding at the end the following new
subsection:
``(d) Joinder of Interested Parties.--
``(1) Joinder.--In a civil action arising under any Act of
Congress relating to patents in which fees and other expenses
have been awarded under section 285 to a prevailing party
defending against an allegation of infringement of a patent
claim, and in which the nonprevailing party alleging
infringement is unable to pay the award of fees and other
expenses, the court shall grant a motion by the prevailing
party to join an interested party if such prevailing party
shows that the nonprevailing party has no substantial interest
in the subject matter at issue other than asserting such patent
claim in litigation.
``(2) Limitation on joinder.--
``(A) Discretionary denial of motion.--The court
may deny a motion to join an interested party under
paragraph (1) if--
``(i) the interested party is not subject
to service of process; or
``(ii) joinder under paragraph (1) would
deprive the court of subject matter
jurisdiction or make venue improper.
``(B) Required denial of motion.--The court shall
deny a motion to join an interested party under
paragraph (1) if--
``(i) the interested party did not timely
receive the notice required by paragraph (3);
or
``(ii) within 30 days after receiving the
notice required by paragraph (3), the
interested party renounces, in writing and with
notice to the court and the parties to the
action, any ownership, right, or direct
financial interest (as described in paragraph
(4)) that the interested party has in the
patent or patents at issue.
``(3) Notice requirement.--An interested party may not be
joined under paragraph (1) unless it has been provided actual
notice, within 30 days after the date on which it has been
identified in the initial disclosure provided under section
290(b), that it has been so identified and that such party may
therefore be an interested party subject to joinder under this
subsection. Such notice shall be provided by the party who
subsequently moves to join the interested party under paragraph
(1), and shall include language that--
``(A) identifies the action, the parties thereto,
the patent or patents at issue, and the pleading or
other paper that identified the party under section
290(b); and
``(B) informs the party that it may be joined in
the action and made subject to paying an award of fees
and other expenses under section 285(b) if--
``(i) fees and other expenses are awarded
in the action against the party alleging
infringement of the patent or patents at issue
under section 285(a);
``(ii) the party alleging infringement is
unable to pay the award of fees and other
expenses;
``(iii) the party receiving notice under
this paragraph is determined by the court to be
an interested party; and
``(iv) the party receiving notice under
this paragraph has not, within 30 days after
receiving such notice, renounced in writing,
and with notice to the court and the parties to
the action, any ownership, right, or direct
financial interest (as described in paragraph
(4)) that the interested party has in the
patent or patents at issue.
``(4) Interested party defined.--In this subsection, the
term `interested party' means a person, other than the party
alleging infringement, that--
``(A) is an assignee of the patent or patents at
issue;
``(B) has a right, including a contingent right, to
enforce or sublicense the patent or patents at issue;
or
``(C) has a direct financial interest in the patent
or patents at issue, including the right to any part of
an award of damages or any part of licensing revenue,
except that a person with a direct financial interest
does not include--
``(i) an attorney or law firm providing
legal representation in the civil action
described in paragraph (1) if the sole basis
for the financial interest of the attorney or
law firm in the patent or patents at issue
arises from the attorney or law firm's receipt
of compensation reasonably related to the
provision of the legal representation; or
``(ii) a person whose sole financial
interest in the patent or patents at issue is
ownership of an equity interest in the party
alleging infringement, unless such person also
has the right or ability to influence, direct,
or control the civil action.''.
(d) Discovery Limits.--
(1) Amendment.--Chapter 29 of title 35, United States Code,
is amended by adding at the end the following new section:
``Sec. 299A. Discovery in patent infringement action
``(a) Discovery in Patent Infringement Action.--Except as provided
in subsections (b) and (c), in a civil action arising under any Act of
Congress relating to patents, if the court determines that a ruling
relating to the construction of terms used in a patent claim asserted
in the complaint is required, discovery shall be limited, until such
ruling is issued, to information necessary for the court to determine
the meaning of the terms used in the patent claim, including any
interpretation of those terms used to support the claim of
infringement.
``(b) Discretion To Expand Scope of Discovery.--
``(1) Timely resolution of actions.--In the case of an
action under any provision of Federal law (including an action
that includes a claim for relief arising under section 271(e)),
for which resolution within a specified period of time of a
civil action arising under any Act of Congress relating to
patents will necessarily affect the rights of a party with
respect to the patent, the court shall permit discovery, in
addition to the discovery authorized under subsection (a),
before the ruling described in subsection (a) is issued as
necessary to ensure timely resolution of the action.
``(2) Resolution of motions.--When necessary to resolve a
motion properly raised by a party before a ruling relating to
the construction of terms described in subsection (a) is
issued, the court may allow limited discovery in addition to
the discovery authorized under subsection (a) as necessary to
resolve the motion.
``(3) Special circumstances.--In special circumstances that
would make denial of discovery a manifest injustice, the court
may permit discovery, in addition to the discovery authorized
under subsection (a), as necessary to prevent the manifest
injustice.
``(4) Actions seeking relief based on competitive harm.--
The limitation on discovery provided under subsection (a) shall
not apply to an action seeking a preliminary injunction to
redress harm arising from the use, sale, or offer for sale of
any allegedly infringing instrumentality that competes with a
product sold or offered for sale, or a process used in
manufacture, by a party alleging infringement.
``(c) Exclusion From Discovery Limitation.--The parties may
voluntarily consent to be excluded, in whole or in part, from the
limitation on discovery provided under subsection (a) if at least one
plaintiff and one defendant enter into a signed stipulation, to be
filed with and signed by the court. With regard to any discovery
excluded from the requirements of subsection (a) under the signed
stipulation, with respect to such parties, such discovery shall proceed
according to the Federal Rules of Civil Procedure.''.
(2) Conforming amendment.--The table of sections for
chapter 29 of title 35, United States Code, is amended by
adding at the end the following new item:
``299A. Discovery in patent infringement action.''.
(e) Sense of Congress.--It is the sense of Congress that it is an
abuse of the patent system and against public policy for a party to
send out purposely evasive demand letters to end users alleging patent
infringement. Demand letters sent should, at the least, include basic
information about the patent in question, what is being infringed, and
how it is being infringed. Any actions or litigation that stem from
these types of purposely evasive demand letters to end users should be
considered a fraudulent or deceptive practice and an exceptional
circumstance when considering whether the litigation is abusive.
(f) Demand Letters.--Section 284 of title 35, United States Code,
is amended--
(1) in the first undesignated paragraph, by striking ``Upon
finding'' and inserting ``(a) In General.--Upon finding'';
(2) in the second undesignated paragraph, by striking
``When the damages'' and inserting ``(b) Assessment by Court;
Treble Damages.--When the damages'';
(3) by inserting after subsection (b), as designated by
paragraph (2) of this subsection, the following:
``(c) Willful Infringement.--A claimant seeking to establish
willful infringement may not rely on evidence of pre-suit notification
of infringement unless that notification identifies with particularity
the asserted patent, identifies the product or process accused,
identifies the ultimate parent entity of the claimant, and explains
with particularity, to the extent possible following a reasonable
investigation or inquiry, how the product or process infringes one or
more claims of the patent.''; and
(4) in the last undesignated paragraph, by striking ``The
court'' and inserting ``(d) Expert Testimony.--The court''.
(g) Effective Date.--Except as otherwise provided in this section,
the amendments made by this section shall take effect on the date of
the enactment of this Act and shall apply to any action for which a
complaint is filed on or after that date.
SEC. 3303. TRANSPARENCY OF PATENT OWNERSHIP.
(a) Amendments.--Section 290 of title 35, United States Code, is
amended--
(1) in the heading, by striking ``suits'' and inserting
``suits; disclosure of interests'';
(2) by striking ``The clerks'' and inserting ``(a) Notice
of Patent Suits.--The clerks''; and
(3) by adding at the end the following new subsections:
``(b) Initial Disclosure.--
``(1) In general.--Except as provided in paragraph (2),
upon the filing of an initial complaint for patent
infringement, the plaintiff shall disclose to the Patent and
Trademark Office, the court, and each adverse party the
identity of each of the following:
``(A) The assignee of the patent or patents at
issue.
``(B) Any entity with a right to sublicense or
enforce the patent or patents at issue.
``(C) Any entity, other than the plaintiff, that
the plaintiff knows to have a financial interest in the
patent or patents at issue or the plaintiff.
``(D) The ultimate parent entity of any assignee
identified under subparagraph (A) and any entity
identified under subparagraph (B) or (C).
``(2) Exemption.--The requirements of paragraph (1) shall
not apply with respect to a civil action filed under subsection
(a) that includes a cause of action described under section
271(e)(2).
``(c) Disclosure Compliance.--
``(1) Publicly traded.--For purposes of subsection
(b)(1)(C), if the financial interest is held by a corporation
traded on a public stock exchange, an identification of the
name of the corporation and the public exchange listing shall
satisfy the disclosure requirement.
``(2) Not publicly traded.--For purposes of subsection
(b)(1)(C), if the financial interest is not held by a publicly
traded corporation, the disclosure shall satisfy the disclosure
requirement if the information identifies--
``(A) in the case of a partnership, the name of the
partnership and the name and correspondence address of
each partner or other entity that holds more than a 5-
percent share of that partnership;
``(B) in the case of a corporation, the name of the
corporation, the location of incorporation, the address
of the principal place of business, and the name of
each officer of the corporation; and
``(C) for each individual, the name and
correspondence address of that individual.
``(d) Ongoing Duty of Disclosure to the Patent and Trademark
Office.--
``(1) In general.--A plaintiff required to submit
information under subsection (b) or a subsequent owner of the
patent or patents at issue shall, not later than 90 days after
any change in the assignee of the patent or patents at issue or
an entity described under subparagraph (B) or (D) of subsection
(b)(1), submit to the Patent and Trademark Office the updated
identification of such assignee or entity.
``(2) Failure to comply.--With respect to a patent for
which the requirement of paragraph (1) has not been met--
``(A) the plaintiff or subsequent owner shall not
be entitled to recover reasonable fees and other
expenses under section 285 or increased damages under
section 284 with respect to infringing activities
taking place during any period of noncompliance with
paragraph (1), unless the denial of such damages or
fees would be manifestly unjust; and
``(B) the court shall award to a prevailing party
accused of infringement reasonable fees and other
expenses under section 285 that are incurred to
discover the updated assignee or entity described under
paragraph (1), unless such sanctions would be unjust.
``(e) Definitions.--In this section:
``(1) Financial interest.--The term `financial interest'--
``(A) means--
``(i) with regard to a patent or patents,
the right of a person to receive proceeds
related to the assertion of the patent or
patents, including a fixed or variable portion
of such proceeds; and
``(ii) with regard to the plaintiff, direct
or indirect ownership or control by a person of
more than 5 percent of such plaintiff; and
``(B) does not mean--
``(i) ownership of shares or other
interests in a mutual or common investment
fund, unless the owner of such interest
participates in the management of such fund; or
``(ii) the proprietary interest of a
policyholder in a mutual insurance company or
of a depositor in a mutual savings association,
or a similar proprietary interest, unless the
outcome of the proceeding could substantially
affect the value of such interest.
``(2) Proceeding.--The term `proceeding' means all stages
of a civil action, including pretrial and trial proceedings and
appellate review.
``(3) Ultimate parent entity.--
``(A) In general.--Except as provided in
subparagraph (B), the term `ultimate parent entity' has
the meaning given such term in section 801.1(a)(3) of
title 16, Code of Federal Regulations, or any successor
regulation.
``(B) Modification of definition.--The Director may
modify the definition of `ultimate parent entity' by
regulation.''.
(b) Technical and Conforming Amendment.--The item relating to
section 290 in the table of sections for chapter 29 of title 35, United
States Code, is amended to read as follows:
``290. Notice of patent suits; disclosure of interests.''.
(c) Regulations.--The Director may promulgate such regulations as
are necessary to establish a registration fee in an amount sufficient
to recover the estimated costs of administering subsections (b) through
(e) of section 290 of title 35, United States Code, as added by
subsection (a), to facilitate the collection and maintenance of the
information required by such subsections, and to ensure the timely
disclosure of such information to the public.
(d) Effective Date.--The amendments made by this section shall take
effect upon the expiration of the 6-month period beginning on the date
of the enactment of this Act and shall apply to any action for which a
complaint is filed on or after such effective date.
SEC. 3304. CUSTOMER-SUIT EXCEPTION.
(a) Amendment.--Section 296 of title 35, United States Code, is
amended to read as follows:
``Sec. 296. Stay of action against customer
``(a) Stay of Action Against Customer.--Except as provided in
subsection (d), in any civil action arising under any Act of Congress
relating to patents, the court shall grant a motion to stay at least
the portion of the action against a covered customer related to
infringement of a patent involving a covered product or process if the
following requirements are met:
``(1) The covered manufacturer and the covered customer
consent in writing to the stay.
``(2) The covered manufacturer is a party to the action or
to a separate action involving the same patent or patents
related to the same covered product or process.
``(3) The covered customer agrees to be bound by any issues
that the covered customer has in common with the covered
manufacturer and are finally decided as to the covered
manufacturer in an action described in paragraph (2).
``(4) The motion is filed after the first pleading in the
action but not later than the later of--
``(A) the 120th day after the date on which the
first pleading in the action is served that
specifically identifies the covered product or process
as a basis for the covered customer's alleged
infringement of the patent and that specifically
identifies how the covered product or process is
alleged to infringe the patent; or
``(B) the date on which the first scheduling order
in the case is entered.
``(b) Applicability of Stay.--A stay issued under subsection (a)
shall apply only to the patents, products, systems, or components
accused of infringement in the action.
``(c) Lift of Stay.--
``(1) In general.--A stay entered under this section may be
lifted upon grant of a motion based on a showing that--
``(A) the action involving the covered manufacturer
will not resolve a major issue in suit against the
covered customer; or
``(B) the stay unreasonably prejudices and would be
manifestly unjust to the party seeking to lift the
stay.
``(2) Separate manufacturer action involved.--In the case
of a stay entered based on the participation of the covered
manufacturer in a separate action involving the same patent or
patents related to the same covered product or process, a
motion under this subsection may only be made if the court in
such separate action determines the showing required under
paragraph (1) has been met.
``(d) Exemption.--This section shall not apply to an action that
includes a cause of action described under section 271(e)(2).
``(e) Consent Judgment.--If, following the grant of a motion to
stay under this section, the covered manufacturer seeks or consents to
entry of a consent judgment relating to one or more of the common
issues that gave rise to the stay, or declines to prosecute through
appeal a final decision as to one or more of the common issues that
gave rise to the stay, the court may, upon grant of a motion, determine
that such consent judgment or unappealed final decision shall not be
binding on the covered customer with respect to one or more of such
common issues based on a showing that such an outcome would
unreasonably prejudice and be manifestly unjust to the covered customer
in light of the circumstances of the case.
``(f) Rule of Construction.--Nothing in this section shall be
construed to limit the ability of a court to grant any stay, expand any
stay granted under this section, or grant any motion to intervene, if
otherwise permitted by law.
``(g) Definitions.--In this section:
``(1) Covered customer.--The term `covered customer' means
a party accused of infringing a patent or patents in dispute
based on a covered product or process.
``(2) Covered manufacturer.--The term `covered
manufacturer' means a person that manufactures or supplies, or
causes the manufacture or supply of, a covered product or
process or a relevant part thereof.
``(3) Covered product or process.--The term `covered
product or process' means a product, process, system, service,
component, material, or apparatus, or relevant part thereof,
that--
``(A) is alleged to infringe the patent or patents
in dispute; or
``(B) implements a process alleged to infringe the
patent or patents in dispute.''.
(b) Conforming Amendment.--The table of sections for chapter 29 of
title 35, United States Code, is amended by striking the item relating
to section 296 and inserting the following:
``296. Stay of action against customer.''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act and shall apply to any
action for which a complaint is filed on or after the first day of the
30-day period that ends on that date.
SEC. 3305. PROCEDURES AND PRACTICES TO IMPLEMENT RECOMMENDATIONS OF THE
JUDICIAL CONFERENCE.
(a) Judicial Conference Rules and Procedures on Discovery Burdens
and Costs.--
(1) Rules and procedures.--The Judicial Conference of the
United States, using existing resources, shall develop rules
and procedures to implement the issues and proposals described
in paragraph (2) to address the asymmetries in discovery
burdens and costs in any civil action arising under any Act of
Congress relating to patents. Such rules and procedures shall
include how and when payment for document discovery in addition
to the discovery of core documentary evidence is to occur, and
what information must be presented to demonstrate financial
capacity before permitting document discovery in addition to
the discovery of core documentary evidence.
(2) Rules and procedures to be considered.--The rules and
procedures required under paragraph (1) should address each of
the following issues and proposals:
(A) Discovery of core documentary evidence.--
Whether and to what extent each party to the action is
entitled to receive core documentary evidence and shall
be responsible for the costs of producing core
documentary evidence within the possession or control
of each such party, and whether and to what extent each
party to the action may seek nondocumentary discovery
as otherwise provided in the Federal Rules of Civil
Procedure.
(B) Electronic communication.--If the parties
determine that the discovery of electronic
communication is appropriate, whether such discovery
shall occur after the parties have exchanged initial
disclosures and core documentary evidence and whether
such discovery shall be in accordance with the
following:
(i) Any request for the production of
electronic communication shall be specific and
may not be a general request for the production
of information relating to a product or
business.
(ii) Each request shall identify the
custodian of the information requested, the
search terms, and a timeframe. The parties
shall cooperate to identify the proper
custodians, the proper search terms, and the
proper timeframe.
(iii) A party may not submit production
requests to more than 5 custodians, unless the
parties jointly agree to modify the number of
production requests without leave of the court.
(iv) The court may consider contested
requests for up to 5 additional custodians per
producing party, upon a showing of a distinct
need based on the size, complexity, and issues
of the case.
(v) If a party requests the discovery of
electronic communication for additional
custodians beyond the limits agreed to by the
parties or granted by the court, the requesting
party shall bear all reasonable costs caused by
such additional discovery.
(C) Additional document discovery.--Whether the
following should apply:
(i) In general.--Each party to the action
may seek any additional document discovery
otherwise permitted under the Federal Rules of
Civil Procedure, if such party bears the
reasonable costs, including reasonable
attorney's fees, of the additional document
discovery.
(ii) Requirements for additional document
discovery.--Unless the parties mutually agree
otherwise, no party may be permitted additional
document discovery unless such a party posts a
bond, or provides other security, in an amount
sufficient to cover the expected costs of such
additional document discovery, or makes a
showing to the court that such party has the
financial capacity to pay the costs of such
additional document discovery.
(iii) Limits on additional document
discovery.--A court, upon motion, may determine
that a request for additional document
discovery is excessive, irrelevant, or
otherwise abusive and may set limits on such
additional document discovery.
(iv) Good cause modification.--A court,
upon motion and for good cause shown, may
modify the requirements of subparagraphs (A)
and (B) and any definition under paragraph (3).
Not later than 30 days after the pretrial
conference under Rule 16 of the Federal Rules
of Civil Procedure, the parties shall jointly
submit any proposed modifications of the
requirements of subparagraphs (A) and (B) and
any definition under paragraph (3), unless the
parties do not agree, in which case each party
shall submit any proposed modification of such
party and a summary of the disagreement over
the modification.
(v) Computer code.--A court, upon motion
and for good cause shown, may determine that
computer code should be included in the
discovery of core documentary evidence. The
discovery of computer code shall occur after
the parties have exchanged initial disclosures
and other core documentary evidence.
(D) Discovery sequence and scope.--Whether the
parties shall discuss and address in the written report
filed pursuant to Rule 26(f) of the Federal Rules of
Civil Procedure the views and proposals of each party
on the following:
(i) When the discovery of core documentary
evidence should be completed.
(ii) Whether additional document discovery
will be sought under subparagraph (C).
(iii) Any issues about infringement,
invalidity, or damages that, if resolved before
the additional discovery described in
subparagraph (C) commences, might simplify or
streamline the case, including the
identification of any terms or phrases relating
to any patent claim at issue to be construed by
the court and whether the early construction of
any of those terms or phrases would be helpful.
(3) Definitions.--In this subsection:
(A) Core documentary evidence.--The term ``core
documentary evidence''--
(i) includes--
(I) documents relating to the
conception of, reduction to practice
of, and application for, the patent or
patents at issue;
(II) documents sufficient to show
the technical operation of the product
or process identified in the complaint
as infringing the patent or patents at
issue;
(III) documents relating to
potentially invalidating prior art;
(IV) documents relating to any
licensing of, or other transfer of
rights to, the patent or patents at
issue before the date on which the
complaint is filed;
(V) documents sufficient to show
profit attributable to the claimed
invention of the patent or patents at
issue;
(VI) documents relating to any
knowledge by the accused infringer of
the patent or patents at issue before
the date on which the complaint is
filed;
(VII) documents relating to any
knowledge by the patentee of
infringement of the patent or patents
at issue before the date on which the
complaint is filed;
(VIII) documents relating to any
licensing term or pricing commitment to
which the patent or patents may be
subject through any agency or standard-
setting body; and
(IX) documents sufficient to show
any marking or other notice provided of
the patent or patents at issue; and
(ii) does not include computer code, except
as specified in paragraph (2)(C)(v).
(B) Electronic communication.--The term
``electronic communication'' means any form of
electronic communication, including email, text
message, or instant message.
(4) Implementation by the district courts.--Not later than
6 months after the date on which the Judicial Conference has
developed the rules and procedures required by this subsection,
each United States district court and the United States Court
of Federal Claims shall revise the applicable local rules for
such court to implement such rules and procedures.
(5) Authority for judicial conference to review and
modify.--
(A) Study of efficacy of rules and procedures.--The
Judicial Conference shall study the efficacy of the
rules and procedures required by this subsection during
the 4-year period beginning on the date on which such
rules and procedures by the district courts and the
United States Court of Federal Claims are first
implemented. The Judicial Conference may modify such
rules and procedures following such 4-year period.
(B) Initial modifications.--Before the expiration
of the 4-year period described in subparagraph (A), the
Judicial Conference may modify the requirements under
this subsection--
(i) by designating categories of ``core
documentary evidence'', in addition to those
designated under paragraph (3)(A), as the
Judicial Conference determines to be
appropriate and necessary; and
(ii) as otherwise necessary to prevent a
manifest injustice, the imposition of a
requirement the costs of which clearly outweigh
its benefits, or a result that could not
reasonably have been intended by the Congress.
(b) Judicial Conference Patent Case Management.--The Judicial
Conference of the United States, using existing resources, shall
develop case management procedures to be implemented by the United
States district courts and the United States Court of Federal Claims
for any civil action arising under any Act of Congress relating to
patents, including initial disclosure and early case management
conference practices that--
(1) will identify any potential dispositive issues of the
case; and
(2) focus on early summary judgment motions when resolution
of issues may lead to expedited disposition of the case.
(c) Revision of Form for Patent Infringement.--
(1) Elimination of form.--The Supreme Court, using existing
resources, shall eliminate Form 18 in the Appendix to the
Federal Rules of Civil Procedure (relating to Complaint for
Patent Infringement), effective on the date of the enactment of
this Act.
(2) Revised form.--The Supreme Court may prescribe a new
form or forms setting out model allegations of patent
infringement that, at a minimum, notify accused infringers of
the asserted claim or claims, the products or services accused
of infringement, and the plaintiff's theory for how each
accused product or service meets each limitation of each
asserted claim. The Judicial Conference should exercise the
authority under section 2073 of title 28, United States Code,
to make recommendations with respect to such new form or forms.
(d) Protection of Intellectual-Property Licenses in Bankruptcy.--
(1) In general.--Section 1522 of title 11, United States
Code, is amended by adding at the end the following:
``(e) Section 365(n) shall apply to cases under this chapter. If
the foreign representative rejects or repudiates a contract under which
the debtor is a licensor of intellectual property, the licensee under
such contract shall be entitled to make the election and exercise the
rights described in section 365(n).''.
(2) Trademarks.--
(A) In general.--Section 101(35A) of title 11,
United States Code, is amended--
(i) in subparagraph (E), by striking
``or'';
(ii) in subparagraph (F), by striking
``title 17;'' and inserting ``title 17; or'';
and
(iii) by adding after subparagraph (F) the
following new subparagraph:
``(G) a trademark, service mark, or trade name, as
those terms are defined in section 45 of the Act of
July 5, 1946 (commonly referred to as the `Trademark
Act of 1946') (15 U.S.C. 1127);''.
(B) Conforming amendment.--Section 365(n)(2) of
title 11, United States Code, is amended--
(i) in subparagraph (B)--
(I) by striking ``royalty
payments'' and inserting ``royalty or
other payments''; and
(II) by striking ``and'' after the
semicolon;
(ii) in subparagraph (C), by striking the
period at the end of clause (ii) and inserting
``; and''; and
(iii) by adding at the end the following
new subparagraph:
``(D) in the case of a trademark, service mark, or trade
name, the trustee shall not be relieved of a contractual
obligation to monitor and control the quality of a licensed
product or service.''.
(3) Effective date.--The amendments made by this subsection
shall take effect on the date of the enactment of this Act and
shall apply to any case that is pending on, or for which a
petition or complaint is filed on or after, such date of
enactment.
SEC. 3306. SMALL BUSINESS EDUCATION, OUTREACH, AND INFORMATION ACCESS.
(a) Small Business Education and Outreach.--
(1) Resources for small business.--Using existing
resources, the Director shall develop educational resources for
small businesses to address concerns arising from patent
infringement.
(2) Small business patent outreach.--The existing small
business patent outreach programs of the Office, and the
relevant offices at the Small Business Administration and the
Minority Business Development Agency, shall provide education
and awareness on abusive patent litigation practices. The
Director may give special consideration to the unique needs of
small firms owned by disabled veterans, service-disabled
veterans, women, and minority entrepreneurs in planning and
executing the outreach efforts by the Office.
(b) Improving Information Transparency for Small Business and the
United States Patent and Trademark Office Users.--
(1) Web site.--Using existing resources, the Director shall
create a user-friendly section on the official Web site of the
Office to notify the public when a patent case is brought in
Federal court and, with respect to each patent at issue in such
case, the Director shall include--
(A) information disclosed under subsections (b) and
(d) of section 290 of title 35, United States Code, as
added by section 3303 of this subtitle; and
(B) any other information the Director determines
to be relevant.
(2) Format.--In order to promote accessibility for the
public, the information described in paragraph (1) shall be
searchable by patent number, patent art area, and entity.
SEC. 3307. STUDIES ON PATENT TRANSACTIONS, QUALITY, AND EXAMINATION.
(a) Study on Secondary Market Oversight for Patent Transactions To
Promote Transparency and Ethical Business Practices.--
(1) Study required.--The Director, in consultation with the
Secretary of Commerce, the Secretary of the Treasury, the
Chairman of the Securities and Exchange Commission, the heads
of other relevant agencies, and interested parties, shall,
using existing resources of the Office, conduct a study--
(A) to develop legislative recommendations to
ensure greater transparency and accountability in
patent transactions occurring on the secondary market;
(B) to examine the economic impact that the patent
secondary market has on the United States;
(C) to examine licensing and other oversight
requirements that may be placed on the patent secondary
market, including on the participants in such markets,
to ensure that the market is a level playing field and
that brokers in the market have the requisite expertise
and adhere to ethical business practices; and
(D) to examine the requirements placed on other
markets.
(2) Report on study.--Not later than 18 months after the
date of the enactment of this Act, the Director shall submit a
report to the Committee on the Judiciary of the House of
Representatives and the Committee on the Judiciary of the
Senate on the findings and recommendations of the Director from
the study required under paragraph (1).
(b) Study on Patents Owned by the United States Government.--
(1) Study required.--The Director, in consultation with the
heads of relevant agencies and interested parties, shall, using
existing resources of the Office, conduct a study on patents
owned by the United States Government that--
(A) examines how such patents are licensed and
sold, and any litigation relating to the licensing or
sale of such patents;
(B) provides legislative and administrative
recommendations on whether there should be restrictions
placed on patents acquired from the United States
Government;
(C) examines whether or not each relevant agency
maintains adequate records on the patents owned by such
agency, specifically whether such agency addresses
licensing, assignment, and Government grants for
technology related to such patents; and
(D) provides recommendations to ensure that each
relevant agency has an adequate point of contact that
is responsible for managing the patent portfolio of the
agency.
(2) Report on study.--Not later than 1 year after the date
of the enactment of this Act, the Director shall submit to the
Committee on the Judiciary of the House of Representatives and
the Committee on the Judiciary of the Senate a report on the
findings and recommendations of the Director from the study
required under paragraph (1).
(c) Study on Patent Quality and Access to the Best Information
During Examination.--
(1) GAO study.--The Comptroller General of the United
States shall, using existing resources, conduct a study on
patent examination at the Office and the technologies available
to improve examination and improve patent quality.
(2) Contents of the study.--The study required under
paragraph (1) shall include the following:
(A) An examination of patent quality at the Office.
(B) An examination of ways to improve patent
quality, specifically through technology, that shall
include examining best practices at foreign patent
offices and the use of existing off-the-shelf
technologies to improve patent examination.
(C) A description of how patents are classified.
(D) An examination of procedures in place to
prevent double patenting through filing by applicants
in multiple art areas.
(E) An examination of the types of off-the-shelf
prior art databases and search software used by foreign
patent offices and governments, particularly in Europe
and Asia, and whether those databases and search tools
could be used by the Office to improve patent
examination.
(F) An examination of any other areas the
Comptroller General determines to be relevant.
(3) Report on study.--Not later than 1 year after the date
of the enactment of this Act, the Comptroller General shall
submit to the Committee on the Judiciary of the House of
Representatives and the Committee on the Judiciary of the
Senate a report on the findings and recommendations from the
study required by this subsection, including recommendations
for any changes to laws and regulations that will improve the
examination of patent applications and patent quality.
(d) Study on Patent Small Claims Court.--
(1) Study required.--
(A) In general.--The Director of the Administrative
Office of the United States Courts, in consultation
with the Director of the Federal Judicial Center and
the United States Patent and Trademark Office, shall,
using existing resources, conduct a study to examine
the idea of developing a pilot program for patent small
claims procedures in certain judicial districts within
the existing patent pilot program mandated by Public
Law 111-349.
(B) Contents of study.--The study under
subparagraph (A) shall examine--
(i) the necessary criteria for using small
claims procedures;
(ii) the costs that would be incurred for
establishing, maintaining, and operating such a
pilot program; and
(iii) the steps that would be taken to
ensure that the procedures used in the pilot
program are not misused for abusive patent
litigation.
(2) Report on study.--Not later than 1 year after the date
of the enactment of this Act, the Director of the
Administrative Office of the United States Courts shall submit
a report to the Committee on the Judiciary of the House of
Representatives and the Committee on the Judiciary of the
Senate on the findings and recommendations of the Director of
the Administrative Office from the study required under
paragraph (1).
(e) Study on Demand Letters.--
(1) Study.--The Director, in consultation with the heads of
other appropriate agencies, shall, using existing resources,
conduct a study of the prevalence of the practice of sending
patent demand letters in bad faith and the extent to which that
practice may, through fraudulent or deceptive practices, impose
a negative impact on the marketplace.
(2) Report to congress.--Not later than 1 year after the
date of the enactment of this Act, the Director shall submit a
report to the Committee on the Judiciary of the House of
Representatives and the Committee on the Judiciary of the
Senate on the findings and recommendations of the Director from
the study required under paragraph (1).
(3) Patent demand letter defined.--In this subsection, the
term ``patent demand letter'' means a written communication
relating to a patent that states or indicates, directly or
indirectly, that the recipient or anyone affiliated with the
recipient is or may be infringing the patent.
(f) Study on Business Method Patent Quality.--
(1) GAO study.--The Comptroller General of the United
States shall, using existing resources, conduct a study on the
volume and nature of litigation involving business method
patents.
(2) Contents of study.--The study required under paragraph
(1) shall focus on examining the quality of business method
patents asserted in suits alleging patent infringement, and may
include an examination of any other areas that the Comptroller
General determines to be relevant.
(3) Report to congress.--Not later than 1 year after the
date of the enactment of this Act, the Comptroller General
shall submit to the Committee on the Judiciary of the House of
Representatives and the Committee on the Judiciary of the
Senate a report on the findings and recommendations from the
study required by this subsection, including recommendations
for any changes to laws or regulations that the Comptroller
General considers appropriate on the basis of the study.
(g) Study on Impact of Legislation on Ability of Individuals and
Small Businesses To Protect Exclusive Rights to Inventions and
Discoveries.--
(1) Study required.--The Director, in consultation with the
Secretary of Commerce, the Director of the Administrative
Office of the United States Courts, the Director of the Federal
Judicial Center, the heads of other relevant agencies, and
interested parties, shall, using existing resources of the
Office, conduct a study to examine the economic impact of
sections 3, 4, and 5 of this Act, and any amendments made by
such sections, on the ability of individuals and small
businesses owned by women, veterans, and minorities to assert,
secure, and vindicate the constitutionally guaranteed exclusive
right to inventions and discoveries by such individuals and
small business.
(2) Report on study.--Not later than 2 years after the date
of the enactment of this Act, the Director shall submit to the
Committee on the Judiciary of the House of Representatives and
the Committee on the Judiciary of the Senate a report on the
findings and recommendations of the Director from the study
required under paragraph (1).
SEC. 3308. IMPROVEMENTS AND TECHNICAL CORRECTIONS TO THE LEAHY-SMITH
AMERICA INVENTS ACT.
(a) Post-Grant Review Amendment.--Section 325(e)(2) of title 35,
United States Code is amended by striking ``or reasonably could have
raised''.
(b) Use of District Court Claim Construction in Post-Grant and
Inter Partes Reviews.--
(1) Inter partes review.--Section 316(a) of title 35,
United States Code, is amended--
(A) in paragraph (12), by striking ``; and'' and
inserting a semicolon;
(B) in paragraph (13), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following new
paragraph:
``(14) providing that for all purposes under this chapter--
``(A) each claim of a patent shall be construed as
such claim would be in a civil action to invalidate a
patent under section 282(b), including construing each
claim of the patent in accordance with the ordinary and
customary meaning of such claim as understood by one of
ordinary skill in the art and the prosecution history
pertaining to the patent; and
``(B) if a court has previously construed the claim
or a claim term in a civil action in which the patent
owner was a party, the Office shall consider such claim
construction.''.
(2) Post-grant review.--Section 326(a) of title 35, United
States Code, is amended--
(A) in paragraph (11), by striking ``; and'' and
inserting a semicolon;
(B) in paragraph (12), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following new
paragraph:
``(13) providing that for all purposes under this chapter--
``(A) each claim of a patent shall be construed as
such claim would be in a civil action to invalidate a
patent under section 282(b), including construing each
claim of the patent in accordance with the ordinary and
customary meaning of such claim as understood by one of
ordinary skill in the art and the prosecution history
pertaining to the patent; and
``(B) if a court has previously construed the claim
or a claim term in a civil action in which the patent
owner was a party, the Office shall consider such claim
construction.''.
(3) Technical and conforming amendment.--Section
18(a)(1)(A) of the Leahy-Smith America Invents Act (Public Law
112-29; 126 Stat. 329; 35 U.S.C. 321 note) is amended by
striking ``Section 321(c)'' and inserting ``Sections 321(c) and
326(a)(13)''.
(4) Effective date.--The amendments made by this subsection
shall take effect upon the expiration of the 90-day period
beginning on the date of the enactment of this Act, and shall
apply to any proceeding under chapter 31 or 32 of title 35,
United States Code, as the case may be, for which the petition
for review is filed on or after such effective date.
(c) Codification of the Double-Patenting Doctrine for First-
Inventor-To-File Patents.--
(1) Amendment.--Chapter 10 of title 35, United States Code,
is amended by adding at the end the following new section:
``Sec. 106. Prior art in cases of double patenting
``A claimed invention of a patent issued under section 151
(referred to as the `first patent') that is not prior art to a claimed
invention of another patent (referred to as the `second patent') shall
be considered prior art to the claimed invention of the second patent
for the purpose of determining the nonobviousness of the claimed
invention of the second patent under section 103 if--
``(1) the claimed invention of the first patent was
effectively filed under section 102(d) on or before the
effective filing date of the claimed invention of the second
patent;
``(2) either--
``(A) the first patent and second patent name the
same individual or individuals as the inventor; or
``(B) the claimed invention of the first patent
would constitute prior art to the claimed invention of
the second patent under section 102(a)(2) if an
exception under section 102(b)(2) were deemed to be
inapplicable and the claimed invention of the first
patent was, or were deemed to be, effectively filed
under section 102(d) before the effective filing date
of the claimed invention of the second patent; and
``(3) the patentee of the second patent has not disclaimed
the rights to enforce the second patent independently from, and
beyond the statutory term of, the first patent.''.
(2) Regulations.--The Director shall promulgate regulations
setting forth the form and content of any disclaimer required
for a patent to be issued in compliance with section 106 of
title 35, United States Code, as added by paragraph (1). Such
regulations shall apply to any disclaimer filed after a patent
has issued. A disclaimer, when filed, shall be considered for
the purpose of determining the validity of the patent under
section 106 of title 35, United States Code.
(3) Conforming amendment.--The table of sections for
chapter 10 of title 35, United States Code, is amended by
adding at the end the following new item:
``106. Prior art in cases of double patenting.''.
(4) Exclusive rule.--A patent subject to section 106 of
title 35, United States Code, as added by paragraph (1), shall
not be held invalid on any nonstatutory, double-patenting
ground based on a patent described in section 3(n)(1) of the
Leahy-Smith America Invents Act (35 U.S.C. 100 note).
(5) Effective date.--The amendments made by this subsection
shall take effect upon the expiration of the 1-year period
beginning on the date of the enactment of this Act and shall
apply to a patent or patent application only if both the first
and second patents described in section 106 of title 35, United
States Code, as added by paragraph (1), are patents or patent
applications that are described in section 3(n)(1) of the
Leahy-Smith America Invents Act (35 U.S.C. 100 note).
(d) PTO Patent Reviews.--
(1) Clarification.--
(A) Scope of prior art.--Section 18(a)(1)(C)(i) of
the Leahy-Smith America Invents Act (35 U.S.C. 321
note) is amended by striking ``section 102(a)'' and
inserting ``subsection (a) or (e) of section 102''.
(B) Effective date.--The amendment made by
subparagraph (A) shall take effect on the date of the
enactment of this Act and shall apply to any proceeding
pending on, or filed on or after, such date of
enactment.
(2) Authority to waive fee.--Subject to available
resources, the Director may waive payment of a filing fee for a
transitional proceeding described under section 18(a) of the
Leahy-Smith America Invents Act (35 U.S.C. 321 note).
(e) Clarification of Limits on Patent Term Adjustment.--
(1) Amendments.--Section 154(b)(1)(B) of title 35, United
States Code, is amended--
(A) in the matter preceding clause (i), by striking
``not including--'' and inserting ``the term of the
patent shall be extended 1 day for each day after the
end of that 3-year period until the patent is issued,
not including--'';
(B) in clause (i), by striking ``consumed by
continued examination of the application requested by
the applicant'' and inserting ``consumed after
continued examination of the application is requested
by the applicant'';
(C) in clause (iii), by striking the comma at the
end and inserting a period; and
(D) by striking the matter following clause (iii).
(2) Effective date.--The amendments made by this subsection
shall take effect on the date of the enactment of this Act and
apply to any patent application that is pending on, or filed on
or after, such date of enactment.
(f) Clarification of Jurisdiction.--
(1) In general.--The Federal interest in preventing
inconsistent final judicial determinations as to the legal
force or effect of the claims in a patent presents a
substantial Federal issue that is important to the Federal
system as a whole.
(2) Applicability.--Paragraph (1)--
(A) shall apply to all cases filed on or after, or
pending on, the date of the enactment of this Act; and
(B) shall not apply to a case in which a Federal
court has issued a ruling on whether the case or a
claim arises under any Act of Congress relating to
patents or plant variety protection before the date of
the enactment of this Act.
(g) Patent Pilot Program in Certain District Courts Duration.--
(1) Duration.--Section 1(c) of Public Law 111-349 (124
Stat. 3674; 28 U.S.C. 137 note) is amended to read as follows:
``(c) Duration.--The program established under subsection (a) shall
be maintained using existing resources, and shall terminate 20 years
after the end of the 6-month period described in subsection (b).''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on the date of the enactment of this Act.
(h) Technical Corrections.--
(1) Novelty.--
(A) Amendment.--Section 102(b)(1)(A) of title 35,
United States Code, is amended by striking ``the
inventor or joint inventor or by another'' and
inserting ``the inventor or a joint inventor or
another''.
(B) Effective date.--The amendment made by
subparagraph (A) shall be effective as if included in
the amendment made by section 3(b)(1) of the Leahy-
Smith America Invents Act (Public Law 112-29).
(2) Inventor's oath or declaration.--
(A) Amendment.--The second sentence of section
115(a) of title 35, United States Code, is amended by
striking ``shall execute'' and inserting ``may be
required to execute''.
(B) Effective date.--The amendment made by
subparagraph (A) shall be effective as if included in
the amendment made by section 4(a)(1) of the Leahy-
Smith America Invents Act (Public Law 112-29).
(3) Assignee filers.--
(A) Benefit of earlier filing date; right of
priority.--Section 119(e)(1) of title 35, United States
Code, is amended, in the first sentence, by striking
``by an inventor or inventors named'' and inserting
``that names the inventor or a joint inventor''.
(B) Benefit of earlier filing date in the united
states.--Section 120 of title 35, United States Code,
is amended, in the first sentence, by striking ``names
an inventor or joint inventor'' and inserting ``names
the inventor or a joint inventor''.
(C) Effective date.--The amendments made by this
paragraph shall take effect on the date of the
enactment of this Act and shall apply to any patent
application, and any patent issuing from such
application, that is filed on or after September 16,
2012.
(4) Derived patents.--
(A) Amendment.--Section 291(b) of title 35, United
States Code, is amended by striking ``or joint
inventor'' and inserting ``or a joint inventor''.
(B) Effective date.--The amendment made by
subparagraph (A) shall be effective as if included in
the amendment made by section 3(h)(1) of the Leahy-
Smith America Invents Act (Public Law 112-29).
(5) Specification.--Notwithstanding section 4(e) of the
Leahy-Smith America Invents Act (Public Law 112-29; 125 Stat.
297), the amendments made by subsections (c) and (d) of section
4 of such Act shall apply to any proceeding or matter that is
pending on, or filed on or after, the date of the enactment of
this Act.
(6) Time limit for commencing misconduct proceedings.--
(A) Amendment.--The fourth sentence of section 32
of title 35, United States Code, is amended by striking
``1 year'' and inserting ``18 months''.
(B) Effective date.--The amendment made by this
paragraph shall take effect on the date of the
enactment of this Act and shall apply to any action in
which the Office files a complaint on or after such
date of enactment.
(7) Patent owner response.--
(A) Conduct of inter partes review.--Paragraph (8)
of section 316(a) of title 35, United States Code, is
amended by striking ``the petition under section 313''
and inserting ``the petition under section 311''.
(B) Conduct of post-grant review.--Paragraph (8) of
section 326(a) of title 35, United States Code, is
amended by striking ``the petition under section 323''
and inserting ``the petition under section 321''.
(C) Effective date.--The amendments made by this
paragraph shall take effect on the date of the
enactment of this Act.
(8) International applications.--
(A) Amendments.--Section 202(b) of the Patent Law
Treaties Implementation Act of 2012 (Public Law 112-
211; 126 Stat. 1536) is amended--
(i) by striking paragraph (7); and
(ii) by redesignating paragraphs (8) and
(9) as paragraphs (7) and (8), respectively.
(B) Effective date.--The amendments made by
subparagraph (A) shall be effective as if included in
title II of the Patent Law Treaties Implementation Act
of 2012 (Public Law 112-21).
SEC. 3309. EFFECTIVE DATE.
Except as otherwise provided in this subtitle, the provisions of
this subtitle shall take effect on the date of the enactment of this
Act, and shall apply to any patent issued, or any action filed, on or
after that date.
Subtitle D--Resolving Environmental and Grid Reliability Conflicts
SEC. 3401. AMENDMENTS TO THE FEDERAL POWER ACT.
(a) Compliance With or Violation of Environmental Laws While Under
Emergency Order.--Section 202(c) of the Federal Power Act (16 U.S.C.
824a(c)) is amended--
(1) by inserting ``(1)'' after ``(c)''; and
(2) by adding at the end the following:
``(2) With respect to an order issued under this subsection that
may result in a conflict with a requirement of any Federal, State, or
local environmental law or regulation, the Commission shall ensure that
such order requires generation, delivery, interchange, or transmission
of electric energy only during hours necessary to meet the emergency
and serve the public interest, and, to the maximum extent practicable,
is consistent with any applicable Federal, State, or local
environmental law or regulation and minimizes any adverse environmental
impacts.
``(3) To the extent any omission or action taken by a party, that
is necessary to comply with an order issued under this subsection,
including any omission or action taken to voluntarily comply with such
order, results in noncompliance with, or causes such party to not
comply with, any Federal, State, or local environmental law or
regulation, such omission or action shall not be considered a violation
of such environmental law or regulation, or subject such party to any
requirement, civil or criminal liability, or a citizen suit under such
environmental law or regulation.
``(4)(A) An order issued under this subsection that may result in a
conflict with a requirement of any Federal, State, or local
environmental law or regulation shall expire not later than 90 days
after it is issued. The Commission may renew or reissue such order
pursuant to paragraphs (1) and (2) for subsequent periods, not to
exceed 90 days for each period, as the Commission determines necessary
to meet the emergency and serve the public interest.
``(B) In renewing or reissuing an order under subparagraph (A), the
Commission shall consult with the primary Federal agency with expertise
in the environmental interest protected by such law or regulation, and
shall include in any such renewed or reissued order such conditions as
such Federal agency determines necessary to minimize any adverse
environmental impacts to the maximum extent practicable. The
conditions, if any, submitted by such Federal agency shall be made
available to the public. The Commission may exclude such a condition
from the renewed or reissued order if it determines that such condition
would prevent the order from adequately addressing the emergency
necessitating such order and provides in the order, or otherwise makes
publicly available, an explanation of such determination.''.
(b) Temporary Connection or Construction by Municipalities.--
Section 202(d) of the Federal Power Act (16 U.S.C. 824a(d)) is amended
by inserting ``or municipality'' before ``engaged in the transmission
or sale of electric energy''.
TITLE IV--PRESERVING ACCESS TO ABUNDANT AND AFFORDABLE SOURCES OF
ENERGY
Subtitle A--Northern Route Approval
SEC. 4101. FINDINGS.
The Congress finds the following:
(1) To maintain our Nation's competitive edge and ensure an
economy built to last, the United States must have fast,
reliable, resilient, and environmentally sound means of moving
energy. In a global economy, we will compete for the world's
investments based in significant part on the quality of our
infrastructure. Investing in the Nation's infrastructure
provides immediate and long-term economic benefits for local
communities and the Nation as a whole.
(2) The delivery of oil from Canada, a close ally not only
in proximity but in shared values and ideals, to domestic
markets is in the national interest because of the need to
lessen dependence upon insecure foreign sources.
(3) The Keystone XL pipeline would provide both short-term
and long-term employment opportunities and related labor income
benefits, such as government revenues associated with taxes.
(4) The State of Nebraska has thoroughly reviewed and
approved the proposed Keystone XL pipeline reroute, concluding
that the concerns of Nebraskans have had a major influence on
the pipeline reroute and that the reroute will have minimal
environmental impacts.
(5) The Department of State and other Federal agencies have
over a long period of time conducted extensive studies and
analysis of the technical aspects and of the environmental,
social, and economic impacts of the proposed Keystone XL
pipeline, and--
(A) the Department of State assessments found that
the Keystone XL pipeline ``is not likely to impact the
amount of crude oil produced from the oil sands'' and
that ``approval or denial of the proposed project is
unlikely to have a substantial impact on the rate of
development in the oil sands'';
(B) the Department of State found that incremental
life-cycle greenhouse gas emissions associated with the
Keystone XL project are estimated in the range of 0.07
to 0.83 million metric tons of carbon dioxide
equivalents, with the upper end of this range
representing twelve one-thousandths of one percent of
the 6,702 million metric tons of carbon dioxide emitted
in the United States in 2011; and
(C) after extensive evaluation of potential impacts
to land and water resources along the Keystone XL
pipeline's 875 mile proposed route, the Department of
State found that ``The analyses of potential impacts
associated with construction and normal operation of
the proposed Project suggest that there would be no
significant impacts to most resources along the
proposed Project route (assuming Keystone complies with
all laws and required conditions and measures).''.
(6) The transportation of oil via pipeline is the safest
and most economically and environmentally effective means of
doing so, and--
(A) transportation of oil via pipeline has a record
of unmatched safety and environmental protection, and
the Department of State found that ``Spills associated
with the proposed Project that enter the environment
expected to be rare and relatively small'', and that
``there is no evidence of increased corrosion or other
pipeline threat due to viscosity'' of diluted bitumen
oil that will be transported by the Keystone XL
pipeline; and
(B) plans to incorporate 57 project-specific
special conditions related to the design, construction,
and operations of the Keystone XL pipeline led the
Department of State to find that the pipeline will have
``a degree of safety over any other typically
constructed domestic oil pipeline''.
(7) The Keystone XL is in much the same position today as
the Alaska Pipeline in 1973 prior to congressional action. Once
again, the Federal regulatory process remains an insurmountable
obstacle to a project that is likely to reduce oil imports from
insecure foreign sources.
SEC. 4102. KEYSTONE XL PERMIT APPROVAL.
Notwithstanding Executive Order No. 13337 (3 U.S.C. 301 note),
Executive Order No. 11423 (3 U.S.C. 301 note), section 301 of title 3,
United States Code, and any other Executive order or provision of law,
no Presidential permit shall be required for the pipeline described in
the application filed on May 4, 2012, by TransCanada Keystone Pipeline,
L.P. to the Department of State for the Keystone XL pipeline, as
supplemented to include the Nebraska reroute evaluated in the Final
Evaluation Report issued by the Nebraska Department of Environmental
Quality in January 2013 and approved by the Nebraska governor. The
final environmental impact statement issued by the Secretary of State
on August 26, 2011, coupled with the Final Evaluation Report described
in the previous sentence, shall be considered to satisfy all
requirements of the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.) and of the National Historic Preservation Act (16
U.S.C. 470 et seq.).
SEC. 4103. JUDICIAL REVIEW.
(a) Exclusive Jurisdiction.--Except for review by the Supreme Court
on writ of certiorari, the United States Court of Appeals for the
District of Columbia Circuit shall have original and exclusive
jurisdiction to determine--
(1) the validity of any final order or action (including a
failure to act) of any Federal agency or officer with respect
to issuance of a permit relating to the construction or
maintenance of the Keystone XL pipeline, including any final
order or action deemed to be taken, made, granted, or issued;
(2) the constitutionality of any provision of this
subtitle, or any decision or action taken, made, granted, or
issued, or deemed to be taken, made, granted, or issued under
this subtitle; or
(3) the adequacy of any environmental impact statement
prepared under the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.), or of any analysis under any other
Act, with respect to any action taken, made, granted, or
issued, or deemed to be taken, made, granted, or issued under
this subtitle.
(b) Deadline for Filing Claim.--A claim arising under this subtitle
may be brought not later than 60 days after the date of the decision or
action giving rise to the claim.
(c) Expedited Consideration.--The United States Court of Appeals
for the District of Columbia Circuit shall set any action brought under
subsection (a) for expedited consideration, taking into account the
national interest of enhancing national energy security by providing
access to the significant oil reserves in Canada that are needed to
meet the demand for oil.
SEC. 4104. AMERICAN BURYING BEETLE.
(a) Findings.--The Congress finds that--
(1) environmental reviews performed for the Keystone XL
pipeline project satisfy the requirements of section 7 of the
Endangered Species Act of 1973 (16 U.S.C. 1536(a)(2)) in its
entirety; and
(2) for purposes of that Act, the Keystone XL pipeline
project will not jeopardize the continued existence of the
American burying beetle or destroy or adversely modify American
burying beetle critical habitat.
(b) Biological Opinion.--The Secretary of the Interior is deemed to
have issued a written statement setting forth the Secretary's opinion
containing such findings under section 7(b)(1)(A) of the Endangered
Species Act of 1973 (16 U.S.C. 1536(b)(1)(A)) and any taking of the
American burying beetle that is incidental to the construction or
operation and maintenance of the Keystone XL pipeline as it may be
ultimately defined in its entirety, shall not be considered a
prohibited taking of such species under such Act.
SEC. 4105. RIGHT-OF-WAY AND TEMPORARY USE PERMIT.
The Secretary of the Interior is deemed to have granted or issued a
grant of right-of-way and temporary use permit under section 28 of the
Mineral Leasing Act (30 U.S.C. 185) and the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1701 et seq.), as set forth in the
application tendered to the Bureau of Land Management for the Keystone
XL pipeline.
SEC. 4106. PERMITS FOR ACTIVITIES IN NAVIGABLE WATERS.
(a) Issuance of Permits.--The Secretary of the Army, not later than
90 days after receipt of an application therefor, shall issue all
permits under section 404 of the Federal Water Pollution Control Act
(33 U.S.C. 1344) and section 10 of the Act of March 3, 1899 (33 U.S.C.
403; commonly known as the Rivers and Harbors Appropriations Act of
1899), necessary for the construction, operation, and maintenance of
the pipeline described in the May 4, 2012, application referred to in
section 4103, as supplemented by the Nebraska reroute. The application
shall be based on the administrative record for the pipeline as of the
date of enactment of this Act, which shall be considered complete.
(b) Waiver of Procedural Requirements.--The Secretary may waive any
procedural requirement of law or regulation that the Secretary
considers desirable to waive in order to accomplish the purposes of
this section.
(c) Issuance in Absence of Action by the Secretary.--If the
Secretary has not issued a permit described in subsection (a) on or
before the last day of the 90-day period referred to in subsection (a),
the permit shall be deemed issued under section 404 of the Federal
Water Pollution Control Act (33 U.S.C. 1344) or section 10 of the Act
of March 3, 1899 (33 U.S.C. 403), as appropriate, on the day following
such last day.
(d) Limitation.--The Administrator of the Environmental Protection
Agency may not prohibit or restrict an activity or use of an area that
is authorized under this section.
SEC. 4107. MIGRATORY BIRD TREATY ACT PERMIT.
The Secretary of the Interior is deemed to have issued a special
purpose permit under the Migratory Bird Treaty Act (16 U.S.C. 703 et
seq.), as described in the application filed with the United States
Fish and Wildlife Service for the Keystone XL pipeline on January 11,
2013.
SEC. 4108. OIL SPILL RESPONSE PLAN DISCLOSURE.
(a) In General.--Any pipeline owner or operator required under
Federal law to develop an oil spill response plan for the Keystone XL
pipeline shall make such plan available to the Governor of each State
in which such pipeline operates to assist with emergency response
preparedness.
(b) Updates.--A pipeline owner or operator required to make
available to a Governor a plan under subsection (a) shall make
available to such Governor any update of such plan not later than 7
days after the date on which such update is made.
Subtitle B--Natural Gas Pipeline Permitting Reform
SEC. 4201. REGULATORY APPROVAL OF NATURAL GAS PIPELINE PROJECTS.
Section 7 of the Natural Gas Act (15 U.S.C. 717f) is amended by
adding at the end the following new subsection:
``(i)(1) The Commission shall approve or deny an application for a
certificate of public convenience and necessity for a prefiled project
not later than 12 months after receiving a complete application that is
ready to be processed, as defined by the Commission by regulation.
``(2) The agency responsible for issuing any license, permit, or
approval required under Federal law in connection with a prefiled
project for which a certificate of public convenience and necessity is
sought under this Act shall approve or deny the issuance of the
license, permit, or approval not later than 90 days after the
Commission issues its final environmental document relating to the
project.
``(3) The Commission may extend the time period under paragraph (2)
by 30 days if an agency demonstrates that it cannot otherwise complete
the process required to approve or deny the license, permit, or
approval, and therefor will be compelled to deny the license, permit,
or approval. In granting an extension under this paragraph, the
Commission may offer technical assistance to the agency as necessary to
address conditions preventing the completion of the review of the
application for the license, permit, or approval.
``(4) If an agency described in paragraph (2) does not approve or
deny the issuance of the license, permit, or approval within the time
period specified under paragraph (2) or (3), as applicable, such
license, permit, or approval shall take effect upon the expiration of
30 days after the end of such period. The Commission shall incorporate
into the terms of such license, permit, or approval any conditions
proffered by the agency described in paragraph (2) that the Commission
does not find are inconsistent with the final environmental document.
``(5) For purposes of this subsection, the term `prefiled project'
means a project for the siting, construction, expansion, or operation
of a natural gas pipeline with respect to which a prefiling docket
number has been assigned by the Commission pursuant to a prefiling
process established by the Commission for the purpose of facilitating
the formal application process for obtaining a certificate of public
convenience and necessity.''.
Subtitle C--North American Energy Infrastructure
SEC. 4301. FINDING.
Congress finds that the United States should establish a more
uniform, transparent, and modern process for the construction,
connection, operation, and maintenance of oil and natural gas pipelines
and electric transmission facilities for the import and export of oil
and natural gas and the transmission of electricity to and from Canada
and Mexico, in pursuit of a more secure and efficient North American
energy market.
SEC. 4302. AUTHORIZATION OF CERTAIN ENERGY INFRASTRUCTURE PROJECTS AT
THE NATIONAL BOUNDARY OF THE UNITED STATES.
(a) Authorization.--Except as provided in subsection (c) and
section 4306, no person may construct, connect, operate, or maintain a
cross-border segment of an oil pipeline or electric transmission
facility for the import or export of oil or the transmission of
electricity to or from Canada or Mexico without obtaining a certificate
of crossing for the construction, connection, operation, or maintenance
of the cross-border segment under this section.
(b) Certificate of Crossing.--
(1) Requirement.--Not later than 120 days after final
action is taken under the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.) with respect to a cross-border
segment for which a request is received under this section, the
relevant official identified under paragraph (2), in
consultation with appropriate Federal agencies, shall issue a
certificate of crossing for the cross-border segment unless the
relevant official finds that the construction, connection,
operation, or maintenance of the cross-border segment is not in
the public interest of the United States.
(2) Relevant official.--The relevant official referred to
in paragraph (1) is--
(A) the Secretary of State with respect to oil
pipelines; and
(B) the Secretary of Energy with respect to
electric transmission facilities.
(3) Additional requirement for electric transmission
facilities.--In the case of a request for a certificate of
crossing for the construction, connection, operation, or
maintenance of a cross-border segment of an electric
transmission facility, the Secretary of Energy shall require,
as a condition of issuing the certificate of crossing for the
request under paragraph (1), that the cross-border segment of
the electric transmission facility be constructed, connected,
operated, or maintained consistent with all applicable policies
and standards of--
(A) the Electric Reliability Organization and the
applicable regional entity; and
(B) any Regional Transmission Organization or
Independent System Operator with operational or
functional control over the cross-border segment of the
electric transmission facility.
(c) Exclusions.--This section shall not apply to any construction,
connection, operation, or maintenance of a cross-border segment of an
oil pipeline or electric transmission facility for the import or export
of oil or the transmission of electricity to or from Canada or Mexico--
(1) if the cross-border segment is operating for such
import, export, or transmission as of the date of enactment of
this Act;
(2) if a permit described in section 4305 for such
construction, connection, operation, or maintenance has been
issued;
(3) if a certificate of crossing for such construction,
connection, operation, or maintenance has previously been
issued under this section; or
(4) if an application for a permit described in section
4305 for such construction, connection, operation, or
maintenance is pending on the date of enactment of this Act,
until the earlier of--
(A) the date on which such application is denied;
or
(B) July 1, 2016.
(d) Effect of Other Laws.--
(1) Application to projects.--Nothing in this section or
section 4306 shall affect the application of any other Federal
statute to a project for which a certificate of crossing for
the construction, connection, operation, or maintenance of a
cross-border segment is sought under this section.
(2) Natural gas act.--Nothing in this section or section
4306 shall affect the requirement to obtain approval or
authorization under sections 3 and 7 of the Natural Gas Act for
the siting, construction, or operation of any facility to
import or export natural gas.
(3) Energy policy and conservation act.--Nothing in this
section or section 4306 shall affect the authority of the
President under section 103(a) of the Energy Policy and
Conservation Act.
SEC. 4303. IMPORTATION OR EXPORTATION OF NATURAL GAS TO CANADA AND
MEXICO.
Section 3(c) of the Natural Gas Act (15 U.S.C. 717b(c)) is amended
by adding at the end the following: ``No order is required under
subsection (a) to authorize the export or import of any natural gas to
or from Canada or Mexico.''.
SEC. 4304. TRANSMISSION OF ELECTRIC ENERGY TO CANADA AND MEXICO.
(a) Repeal of Requirement To Secure Order.--Section 202(e) of the
Federal Power Act (16 U.S.C. 824a(e)) is repealed.
(b) Conforming Amendments.--
(1) State regulations.--Section 202(f) of the Federal Power
Act (16 U.S.C. 824a(f)) is amended by striking ``insofar as
such State regulation does not conflict with the exercise of
the Commission's powers under or relating to subsection
202(e)''.
(2) Seasonal diversity electricity exchange.--Section
602(b) of the Public Utility Regulatory Policies Act of 1978
(16 U.S.C. 824a-4(b)) is amended by striking ``the Commission
has conducted hearings and made the findings required under
section 202(e) of the Federal Power Act'' and all that follows
through the period at the end and inserting ``the Secretary has
conducted hearings and finds that the proposed transmission
facilities would not impair the sufficiency of electric supply
within the United States or would not impede or tend to impede
the coordination in the public interest of facilities subject
to the jurisdiction of the Secretary.''.
SEC. 4305. NO PRESIDENTIAL PERMIT REQUIRED.
No Presidential permit (or similar permit) required under Executive
Order No. 13337 (3 U.S.C. 301 note), Executive Order No. 11423 (3
U.S.C. 301 note), section 301 of title 3, United States Code, Executive
Order No. 12038, Executive Order No. 10485, or any other Executive
order shall be necessary for the construction, connection, operation,
or maintenance of an oil or natural gas pipeline or electric
transmission facility, or any cross-border segment thereof.
SEC. 4306. MODIFICATIONS TO EXISTING PROJECTS.
No certificate of crossing under section 4302, or permit described
in section 4305, shall be required for a modification to the
construction, connection, operation, or maintenance of an oil or
natural gas pipeline or electric transmission facility--
(1) that is operating for the import or export of oil or
natural gas or the transmission of electricity to or from
Canada or Mexico as of the date of enactment of the Act;
(2) for which a permit described in section 4305 for such
construction, connection, operation, or maintenance has been
issued; or
(3) for which a certificate of crossing for the cross-
border segment of the pipeline or facility has previously been
issued under section 4302.
SEC. 4307. EFFECTIVE DATE; RULEMAKING DEADLINES.
(a) Effective Date.--Sections 4302 through 4306, and the amendments
made by such sections, shall take effect on July 1, 2015.
(b) Rulemaking Deadlines.--Each relevant official described in
section 4302(b)(2) shall--
(1) not later than 180 days after the date of enactment of
this Act, publish in the Federal Register notice of a proposed
rulemaking to carry out the applicable requirements of section
4302; and
(2) not later than 1 year after the date of enactment of
this Act, publish in the Federal Register a final rule to carry
out the applicable requirements of section 4302.
SEC. 4308. DEFINITIONS.
In this subtitle--
(1) the term ``cross-border segment'' means the portion of
an oil or natural gas pipeline or electric transmission
facility that is located at the national boundary of the United
States with either Canada or Mexico;
(2) the term ``modification'' includes a reversal of flow
direction, change in ownership, volume expansion, downstream or
upstream interconnection, or adjustment to maintain flow (such
as a reduction or increase in the number of pump or compressor
stations);
(3) the term ``natural gas'' has the meaning given that
term in section 2 of the Natural Gas Act (15 U.S.C. 717a);
(4) the term ``oil'' means petroleum or a petroleum
product;
(5) the terms ``Electric Reliability Organization'' and
``regional entity'' have the meanings given those terms in
section 215 of the Federal Power Act (16 U.S.C. 824o); and
(6) the terms ``Independent System Operator'' and
``Regional Transmission Organization'' have the meanings given
those terms in section 3 of the Federal Power Act (16 U.S.C.
796).
Subtitle D--Protecting States' Rights To Promote American Energy
Security Act
CHAPTER 1--STATE AUTHORITY FOR HYDRAULIC FRACTURING REGULATION
SEC. 4411. STATE AUTHORITY FOR HYDRAULIC FRACTURING REGULATION.
The Mineral Leasing Act (30 U.S.C. 181 et seq.) is amended by
redesignating section 44 as section 45, and by inserting after section
43 the following:
``SEC. 44. STATE AUTHORITY FOR HYDRAULIC FRACTURING REGULATION.
``(a) In General.--The Department of the Interior shall not enforce
any Federal regulation, guidance, or permit requirement regarding
hydraulic fracturing, or any component of that process, relating to
oil, gas, or geothermal production activities on or under any land in
any State that has regulations, guidance, or permit requirements for
that activity.
``(b) State Authority.--The Department of the Interior shall
recognize and defer to State regulations, permitting, and guidance, for
all activities related to hydraulic fracturing, or any component of
that process, relating to oil, gas, or geothermal production activities
on Federal land.
``(c) Transparency of State Regulations.--
``(1) In general.--Each State shall submit to the Bureau of
Land Management a copy of its regulations that apply to
hydraulic fracturing operations on Federal land.
``(2) Availability.--The Secretary of the Interior shall
make available to the public State regulations submitted under
this subsection.
``(d) Transparency of State Disclosure Requirements.--
``(1) In general.--Each State shall submit to the Bureau of
Land Management a copy of any regulations of the State that
require disclosure of chemicals used in hydraulic fracturing
operations on Federal land.
``(2) Availability.--The Secretary of the Interior shall
make available to the public State regulations submitted under
this subsection.
``(e) Hydraulic Fracturing Defined.--In this section the term
`hydraulic fracturing' means the process by which fracturing fluids (or
a fracturing fluid system) are pumped into an underground geologic
formation at a calculated, predetermined rate and pressure to generate
fractures or cracks in the target formation and thereby increase the
permeability of the rock near the wellbore and improve production of
natural gas or oil.''.
SEC. 4412. GOVERNMENT ACCOUNTABILITY OFFICE STUDY.
(a) Study.--The Comptroller General of the United States shall
conduct a study examining the economic benefits of domestic shale oil
and gas production resulting from the process of hydraulic fracturing.
This study will include identification of--
(1) State and Federal revenue generated as a result of
shale gas production;
(2) jobs created both directly and indirectly as a result
of shale oil and gas production; and
(3) an estimate of potential energy prices without domestic
shale oil and gas production.
(b) Report.--The Comptroller General shall submit a report on the
findings of such study to the Committee on Natural Resources of the
House of Representatives within 30 days after completion of the study.
SEC. 4413. TRIBAL AUTHORITY ON TRUST LAND.
The Department of the Interior shall not enforce any Federal
regulation, guidance, or permit requirement regarding the process of
hydraulic fracturing (as that term is defined in section 44 of the
Mineral Leasing Act, as amended by section 4411 of this Act), or any
component of that process, relating to oil, gas, or geothermal
production activities on any land held in trust or restricted status
for the benefit of Indians except with the express consent of the
beneficiary on whose behalf such land is held in trust or restricted
status.
CHAPTER 2--EPA HYDRAULIC FRACTURING RESEARCH
SEC. 4421. EPA HYDRAULIC FRACTURING RESEARCH.
In conducting its study of the potential impacts of hydraulic
fracturing on drinking water resources, with respect to which a request
for information was issued under Federal Register Vol. 77, No. 218, the
Administrator of the Environmental Protection Agency shall adhere to
the following requirements:
(1) Peer review and information quality.--Prior to issuance
and dissemination of any final report or any interim report
summarizing the Environmental Protection Agency's research on
the relationship between hydraulic fracturing and drinking
water, the Administrator shall--
(A) consider such reports to be Highly Influential
Scientific Assessments and require peer review of such
reports in accordance with guidelines governing such
assessments, as described in--
(i) the Environmental Protection Agency's
Peer Review Handbook 3rd Edition;
(ii) the Environmental Protection Agency's
Scientific Integrity Policy, as in effect on
the date of enactment of this Act; and
(iii) the Office of Management and Budget's
Peer Review Bulletin, as in effect on the date
of enactment of this Act; and
(B) require such reports to meet the standards and
procedures for the dissemination of influential
scientific, financial, or statistical information set
forth in the Environmental Protection Agency's
Guidelines for Ensuring and Maximizing the Quality,
Objectivity, Utility, and Integrity of Information
Disseminated by the Environmental Protection Agency,
developed in response to guidelines issued by the
Office of Management and Budget under section 515(a) of
the Treasury and General Government Appropriations Act
for Fiscal Year 2001 (Public Law 106-554).
(2) Probability, uncertainty, and consequence.--In order to
maximize the quality and utility of information developed
through the study, the Administrator shall ensure that
identification of the possible impacts of hydraulic fracturing
on drinking water resources included in such reports be
accompanied by objective estimates of the probability,
uncertainty, and consequence of each identified impact, taking
into account the risk management practices of States and
industry. Estimates or descriptions of probability,
uncertainty, and consequence shall be as quantitative as
possible given the validity, accuracy, precision, and other
quality attributes of the underlying data and analyses, but no
more quantitative than the data and analyses can support.
(3) Release of final report.--The final report shall be
publicly released by September 30, 2016.
CHAPTER 3--MISCELLANEOUS PROVISIONS
SEC. 4431. REVIEW OF STATE ACTIVITIES.
The Secretary of the Interior shall annually review and report to
Congress on all State activities relating to hydraulic fracturing.
Subtitle E--Offshore Energy and Jobs
CHAPTER 1--OUTER CONTINENTAL SHELF LEASING PROGRAM REFORMS
SEC. 4511. OUTER CONTINENTAL SHELF LEASING PROGRAM REFORMS.
Section 18(a) of the Outer Continental Shelf Lands Act (43 U.S.C.
1344(a)) is amended by adding at the end the following:
``(5)(A) In each oil and gas leasing program under this
section, the Secretary shall make available for leasing and
conduct lease sales including at least 50 percent of the
available unleased acreage within each outer Continental Shelf
planning area considered to have the largest undiscovered,
technically recoverable oil and gas resources (on a total btu
basis) based upon the most recent national geologic assessment
of the outer Continental Shelf, with an emphasis on offering
the most geologically prospective parts of the planning area.
``(B) The Secretary shall include in each proposed oil and
gas leasing program under this section any State subdivision of
an outer Continental Shelf planning area that the Governor of
the State that represents that subdivision requests be made
available for leasing. The Secretary may not remove such a
subdivision from the program until publication of the final
program, and shall include and consider all such subdivisions
in any environmental review conducted and statement prepared
for such program under section 102(2) of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)).
``(C) In this paragraph the term `available unleased
acreage' means that portion of the outer Continental Shelf that
is not under lease at the time of a proposed lease sale, and
that has not otherwise been made unavailable for leasing by
law.
``(6)(A) In the 5-year oil and gas leasing program, the
Secretary shall make available for leasing any outer
Continental Shelf planning areas that--
``(i) are estimated to contain more than
2,500,000,000 barrels of oil; or
``(ii) are estimated to contain more than
7,500,000,000,000 cubic feet of natural gas.
``(B) To determine the planning areas described in
subparagraph (A), the Secretary shall use the document entitled
`Minerals Management Service Assessment of Undiscovered
Technically Recoverable Oil and Gas Resources of the Nation's
Outer Continental Shelf, 2006'.''.
SEC. 4512. DOMESTIC OIL AND NATURAL GAS PRODUCTION GOAL.
Section 18(b) of the Outer Continental Shelf Lands Act (43 U.S.C.
1344(b)) is amended to read as follows:
``(b) Domestic Oil and Natural Gas Production Goal.---
``(1) In general.--In developing a 5-year oil and gas
leasing program, and subject to paragraph (2), the Secretary
shall determine a domestic strategic production goal for the
development of oil and natural gas as a result of that program.
Such goal shall be--
``(A) the best estimate of the possible increase in
domestic production of oil and natural gas from the
outer Continental Shelf;
``(B) focused on meeting domestic demand for oil
and natural gas and reducing the dependence of the
United States on foreign energy; and
``(C) focused on the production increases achieved
by the leasing program at the end of the 15-year period
beginning on the effective date of the program.
``(2) Program goal.--For purposes of the 5-year oil and gas
leasing program, the production goal referred to in paragraph
(1) shall be an increase by 2032 of--
``(A) no less than 3,000,000 barrels in the amount
of oil produced per day; and
``(B) no less than 10,000,000,000 cubic feet in the
amount of natural gas produced per day.
``(3) Reporting.--The Secretary shall report annually,
beginning at the end of the 5-year period for which the program
applies, to the Committee on Natural Resources of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate on the progress of the program in
meeting the production goal. The Secretary shall identify in
the report projections for production and any problems with
leasing, permitting, or production that will prevent meeting
the goal.''.
SEC. 4513. DEVELOPMENT AND SUBMITTAL OF NEW 5-YEAR OIL AND GAS LEASING
PROGRAM.
(a) In General.--The Secretary of the Interior shall--
(1) by not later than July 15, 2015, publish and submit to
Congress a new proposed oil and gas leasing program under
section 18 of the Outer Continental Shelf Lands Act (43 U.S.C.
1344) for the 5-year period beginning on such date and ending
July 15, 2021; and
(2) by not later than July 15, 2016, approve a final oil
and gas leasing program under such section for such period.
(b) Consideration of All Areas.--In preparing such program the
Secretary shall include consideration of areas of the Continental Shelf
off the coasts of all States (as such term is defined in section 2 of
that Act, as amended by this Act), that are subject to leasing under
this Act.
(c) Technical Correction.--Section 18(d)(3) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1344(d)(3)) is amended by
striking ``or after eighteen months following the date of enactment of
this section, whichever first occurs,''.
SEC. 4514. RULE OF CONSTRUCTION.
Nothing in this subtitle shall be construed to authorize the
issuance of a lease under the Outer Continental Shelf Lands Act (43
U.S.C. 1331 et seq.) to any person designated for the imposition of
sanctions pursuant to--
(1) the Iran Sanctions Act of 1996 (50 U.S.C. 1701 note),
the Comprehensive Iran Sanctions, Accountability and
Divestiture Act of 2010 (22 U.S.C. 8501 et seq.), the Iran
Threat Reduction and Syria Human Rights Act of 2012 (22 U.S.C.
8701 et seq.), section 1245 of the National Defense
Authorization Act for Fiscal Year 2012 (22 U.S.C. 8513a), or
the Iran Freedom and Counter-Proliferation Act of 2012 (22
U.S.C. 8801 et seq.);
(2) Executive Order No. 13622 (July 30, 2012), Executive
Order No. 13628 (October 9, 2012), or Executive Order No. 13645
(June 3, 2013);
(3) Executive Order No. 13224 (September 23, 2001) or
Executive Order No. 13338 (May 11, 2004); or
(4) the Syria Accountability and Lebanese Sovereignty
Restoration Act of 2003 (22 U.S.C. 2151 note).
CHAPTER 2--DIRECTING THE PRESIDENT TO CONDUCT NEW OCS SALES IN
VIRGINIA, SOUTH CAROLINA, AND CALIFORNIA
SEC. 4521. REQUIREMENT TO CONDUCT PROPOSED OIL AND GAS LEASE SALE 220
ON THE OUTER CONTINENTAL SHELF OFFSHORE VIRGINIA.
(a) In General.--Notwithstanding the exclusion of Lease Sale 220 in
the Final Outer Continental Shelf Oil & Gas Leasing Program 2012-2017,
the Secretary of the Interior shall conduct offshore oil and gas Lease
Sale 220 under section 8 of the Outer Continental Shelf Lands Act (43
U.S.C. 1337) as soon as practicable, but not later than one year after
the date of enactment of this Act.
(b) Requirement To Make Replacement Lease Blocks Available.--For
each lease block in a proposed lease sale under this section for which
the Secretary of Defense, in consultation with the Secretary of the
Interior, under the Memorandum of Agreement referred to in section
4525(b), issues a statement proposing deferral from a lease offering
due to defense-related activities that are irreconcilable with mineral
exploration and development, the Secretary of the Interior, in
consultation with the Secretary of Defense, shall make available in the
same lease sale one other lease block in the Virginia lease sale
planning area that is acceptable for oil and gas exploration and
production in order to mitigate conflict.
(c) Balancing Military and Energy Production Goals.--In recognition
that the Outer Continental Shelf oil and gas leasing program and the
domestic energy resources produced therefrom are integral to national
security, the Secretary of the Interior and the Secretary of Defense
shall work jointly in implementing this section in order to ensure
achievement of the following common goals:
(1) Preserving the ability of the Armed Forces of the
United States to maintain an optimum state of readiness through
their continued use of the Outer Continental Shelf.
(2) Allowing effective exploration, development, and
production of our Nation's oil, gas, and renewable energy
resources.
(d) Definitions.--In this section:
(1) Lease sale 220.--The term ``Lease Sale 220'' means such
lease sale referred to in the Request for Comments on the Draft
Proposed 5-Year Outer Continental Shelf (OCS) Oil and Gas
Leasing Program for 2010-2015 and Notice of Intent To Prepare
an Environmental Impact Statement (EIS) for the Proposed 5-Year
Program published January 21, 2009 (74 Fed. Reg. 3631).
(2) Virginia lease sale planning area.--The term ``Virginia
lease sale planning area'' means the area of the outer
Continental Shelf (as that term is defined in the Outer
Continental Shelf Lands Act (33 U.S.C. 1331 et seq.)) that is
bounded by--
(A) a northern boundary consisting of a straight
line extending from the northernmost point of
Virginia's seaward boundary to the point on the seaward
boundary of the United States exclusive economic zone
located at 37 degrees 17 minutes 1 second North
latitude, 71 degrees 5 minutes 16 seconds West
longitude; and
(B) a southern boundary consisting of a straight
line extending from the southernmost point of
Virginia's seaward boundary to the point on the seaward
boundary of the United States exclusive economic zone
located at 36 degrees 31 minutes 58 seconds North
latitude, 71 degrees 30 minutes 1 second West
longitude.
SEC. 4522. SOUTH CAROLINA LEASE SALE.
Notwithstanding inclusion of the South Atlantic Outer Continental
Shelf Planning Area in the Final Outer Continental Shelf Oil & Gas
Leasing Program 2012-2017, the Secretary of the Interior shall conduct
a lease sale not later than 2 years after the date of the enactment of
this Act for areas off the coast of South Carolina determined by the
Secretary to have the most geologically promising hydrocarbon resources
and constituting not less than 25 percent of the leasable area within
the South Carolina offshore administrative boundaries depicted in the
notice entitled ``Federal Outer Continental Shelf (OCS) Administrative
Boundaries Extending from the Submerged Lands Act Boundary seaward to
the Limit of the United States Outer Continental Shelf'', published
January 3, 2006 (71 Fed. Reg. 127).
SEC. 4523. SOUTHERN CALIFORNIA EXISTING INFRASTRUCTURE LEASE SALE.
(a) In General.--The Secretary of the Interior shall offer for sale
leases of tracts in the Santa Maria and Santa Barbara/Ventura Basins of
the Southern California OCS Planning Area as soon as practicable, but
not later than December 31, 2015.
(b) Use of Existing Structures or Onshore-Based Drilling.--The
Secretary of the Interior shall include in leases offered for sale
under this lease sale such terms and conditions as are necessary to
require that development and production may occur only from offshore
infrastructure in existence on the date of the enactment of this Act or
from onshore-based, extended-reach drilling.
SEC. 4524. ENVIRONMENTAL IMPACT STATEMENT REQUIREMENT.
(a) In General.--For the purposes of this subtitle, the Secretary
of the Interior shall prepare a multisale environmental impact
statement under section 102 of the National Environmental Policy Act of
1969 (42 U.S.C. 4332) for all lease sales required under this chapter.
(b) Actions To Be Considered.--Notwithstanding section 102 of the
National Environmental Policy Act of 1969 (42 U.S.C. 4332), in such
statement--
(1) the Secretary is not required to identify nonleasing
alternative courses of action or to analyze the environmental
effects of such alternative courses of action; and
(2) the Secretary shall only--
(A) identify a preferred action for leasing and not
more than one alternative leasing proposal; and
(B) analyze the environmental effects and potential
mitigation measures for such preferred action and such
alternative leasing proposal.
SEC. 4525. NATIONAL DEFENSE.
(a) National Defense Areas.--This subtitle does not affect the
existing authority of the Secretary of Defense, with the approval of
the President, to designate national defense areas on the Outer
Continental Shelf pursuant to section 12(d) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1341(d)).
(b) Prohibition on Conflicts With Military Operations.--No person
may engage in any exploration, development, or production of oil or
natural gas on the Outer Continental Shelf under a lease issued under
this subtitle that would conflict with any military operation, as
determined in accordance with the Memorandum of Agreement between the
Department of Defense and the Department of the Interior on Mutual
Concerns on the Outer Continental Shelf signed July 20, 1983, and any
revision or replacement for that agreement that is agreed to by the
Secretary of Defense and the Secretary of the Interior after that date
but before the date of issuance of the lease under which such
exploration, development, or production is conducted.
SEC. 4526. EASTERN GULF OF MEXICO NOT INCLUDED.
Nothing in this subtitle affects restrictions on oil and gas
leasing under the Gulf of Mexico Energy Security Act of 2006 (title I
of division C of Public Law 109-432; 43 U.S.C. 1331 note).
CHAPTER 3--EQUITABLE SHARING OF OUTER CONTINENTAL SHELF REVENUES
SEC. 4531. DISPOSITION OF OUTER CONTINENTAL SHELF REVENUES TO COASTAL
STATES.
(a) In General.--Section 9 of the Outer Continental Shelf Lands Act
(43 U.S.C. 1338) is amended--
(1) in the existing text--
(A) in the first sentence, by striking ``All
rentals,'' and inserting the following:
``(c) Disposition of Revenue Under Old Leases.--All rentals,''; and
(B) in subsection (c) (as designated by the
amendment made by subparagraph (A) of this paragraph),
by striking ``for the period from June 5, 1950, to
date, and thereafter'' and inserting ``in the period
beginning June 5, 1950, and ending on the date of
enactment of the American Renaissance in Manufacturing
Act'';
(2) by adding after subsection (c) (as so designated) the
following:
``(d) Definitions.--In this section:
``(1) Coastal state.--The term `coastal State' includes a
territory of the United States.
``(2) New leasing revenues.--The term `new leasing
revenues'--
``(A) means amounts received by the United States
as bonuses, rents, and royalties under leases for oil
and gas, wind, tidal, or other energy exploration,
development, and production on new areas of the outer
Continental Shelf that are authorized to be made
available for leasing as a result of enactment of the
American Renaissance in Manufacturing Act and leasing
under that Act; and
``(B) does not include amounts received by the
United States under any lease of an area located in the
boundaries of the Central Gulf of Mexico and Western
Gulf of Mexico Outer Continental Shelf Planning Areas
on the date of enactment of the American Renaissance in
Manufacturing Act, including a lease issued before, on,
or after such date of enactment.''; and
(3) by inserting before subsection (c) (as so designated)
the following:
``(a) Payment of New Leasing Revenues to Coastal States.--
``(1) In general.--Except as provided in paragraph (2), of
the amount of new leasing revenues received by the United
States each fiscal year, 37.5 percent shall be allocated and
paid in accordance with subsection (b) to coastal States that
are affected States with respect to the leases under which
those revenues are received by the United States.
``(2) Phase-in.--
``(A) In general.--Except as provided in
subparagraph (B), paragraph (1) shall be applied--
``(i) with respect to new leasing revenues
under leases awarded under the first leasing
program under section 18(a) that takes effect
after the date of enactment of the American
Renaissance in Manufacturing Act, by
substituting `12.5 percent' for `37.5 percent';
and
``(ii) with respect to new leasing revenues
under leases awarded under the second leasing
program under section 18(a) that takes effect
after the date of enactment of the American
Renaissance in Manufacturing Act, by
substituting `25 percent' for `37.5 percent'.
``(B) Exempted lease sales.--This paragraph shall
not apply with respect to any lease issued under
chapter 2 of subtitle E of title IV of the American
Renaissance in Manufacturing Act.
``(b) Allocation of Payments.--
``(1) In general.--The amount of new leasing revenues
received by the United States with respect to a leased tract
that are required to be paid to coastal States in accordance
with this subsection each fiscal year shall be allocated among
and paid to coastal States that are within 200 miles of the
leased tract, in amounts that are inversely proportional to the
respective distances between the point on the coastline of each
such State that is closest to the geographic center of the
lease tract, as determined by the Secretary.
``(2) Minimum and maximum allocation.--The amount allocated
to a coastal State under paragraph (1) each fiscal year with
respect to a leased tract shall be--
``(A) in the case of a coastal State that is the
nearest State to the geographic center of the leased
tract, not less than 25 percent of the total amounts
allocated with respect to the leased tract;
``(B) in the case of any other coastal State, not
less than 10 percent, and not more than 15 percent, of
the total amounts allocated with respect to the leased
tract; and
``(C) in the case of a coastal State that is the
only coastal State within 200 miles of a leased tract,
100 percent of the total amounts allocated with respect
to the leased tract.
``(3) Administration.--Amounts allocated to a coastal State
under this subsection--
``(A) shall be available to the coastal State
without further appropriation;
``(B) shall remain available until expended;
``(C) shall be in addition to any other amounts
available to the coastal State under this Act; and
``(D) shall be distributed in the fiscal year
following receipt.
``(4) Use of funds.--
``(A) In general.--Except as provided in
subparagraph (B), a coastal State may use funds
allocated and paid to it under this subsection for any
purpose as determined by the laws of that State.
``(B) Restriction on use for matching.--Funds
allocated and paid to a coastal State under this
subsection may not be used as matching funds for any
other Federal program.''.
(b) Limitation on Application.--This section and the amendment made
by this section shall not affect the application of section 105 of the
Gulf of Mexico Energy Security Act of 2006 (title I of division C of
Public Law 109-432; (43 U.S.C. 1331 note)), as in effect before the
enactment of this Act, with respect to revenues received by the United
States under oil and gas leases issued for tracts located in the
Western and Central Gulf of Mexico Outer Continental Shelf Planning
Areas, including such leases issued on or after the date of the
enactment of this Act.
CHAPTER 4--REORGANIZATION OF MINERALS MANAGEMENT AGENCIES OF THE
DEPARTMENT OF THE INTERIOR
SEC. 4541. ESTABLISHMENT OF UNDER SECRETARY FOR ENERGY, LANDS, AND
MINERALS AND ASSISTANT SECRETARY OF OCEAN ENERGY AND
SAFETY.
There shall be in the Department of the Interior--
(1) an Under Secretary for Energy, Lands, and Minerals, who
shall--
(A) be appointed by the President, by and with the
advise and consent of the Senate;
(B) report to the Secretary of the Interior or, if
directed by the Secretary, to the Deputy Secretary of
the Interior;
(C) be paid at the rate payable for level III of
the Executive Schedule; and
(D) be responsible for--
(i) the safe and responsible development of
our energy and mineral resources on Federal
lands in appropriate accordance with United
States energy demands; and
(ii) ensuring multiple-use missions of the
Department of the Interior that promote the
safe and sustained development of energy and
minerals resources on public lands (as that
term is defined in the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1701 et
seq.));
(2) an Assistant Secretary of Ocean Energy and Safety, who
shall--
(A) be appointed by the President, by and with the
advise and consent of the Senate;
(B) report to the Under Secretary for Energy,
Lands, and Minerals;
(C) be paid at the rate payable for level IV of the
Executive Schedule; and
(D) be responsible for ensuring safe and efficient
development of energy and minerals on the Outer
Continental Shelf of the United States; and
(3) an Assistant Secretary of Land and Minerals Management,
who shall--
(A) be appointed by the President, by and with the
advise and consent of the Senate;
(B) report to the Under Secretary for Energy,
Lands, and Minerals;
(C) be paid at the rate payable for level IV of the
Executive Schedule; and
(D) be responsible for ensuring safe and efficient
development of energy and minerals on public lands and
other Federal onshore lands under the jurisdiction of
the Department of the Interior, including
implementation of the Mineral Leasing Act (30 U.S.C.
181 et seq.) and the Surface Mining Control and
Reclamation Act (30 U.S.C. 1201 et seq.) and
administration of the Office of Surface Mining.
SEC. 4542. BUREAU OF OCEAN ENERGY.
(a) Establishment.--There is established in the Department of the
Interior a Bureau of Ocean Energy (referred to in this section as the
``Bureau''), which shall--
(1) be headed by a Director of Ocean Energy (referred to in
this section as the ``Director''); and
(2) be administered under the direction of the Assistant
Secretary of Ocean Energy and Safety.
(b) Director.--
(1) Appointment.--The Director shall be appointed by the
Secretary of the Interior.
(2) Compensation.--The Director shall be compensated at the
rate provided for level V of the Executive Schedule under
section 5316 of title 5, United States Code.
(c) Duties.--
(1) In general.--The Secretary of the Interior shall carry
out through the Bureau all functions, powers, and duties vested
in the Secretary relating to the administration of a
comprehensive program of offshore mineral and renewable energy
resources management.
(2) Specific authorities.--The Director shall promulgate
and implement regulations--
(A) for the proper issuance of leases for the
exploration, development, and production of
nonrenewable and renewable energy and mineral resources
on the Outer Continental Shelf;
(B) relating to resource identification, access,
evaluation, and utilization;
(C) for development of leasing plans, lease sales,
and issuance of leases for such resources; and
(D) regarding issuance of environmental impact
statements related to leasing and post leasing
activities including exploration, development, and
production, and the use of third party contracting for
necessary environmental analysis for the development of
such resources.
(3) Limitation.--The Secretary shall not carry out through
the Bureau any function, power, or duty that is--
(A) required by section 4543 to be carried out
through the Ocean Energy Safety Service; or
(B) required by section 4544 to be carried out
through the Office of Natural Resources Revenue.
(d) Responsibilities of Land Management Agencies.--Nothing in this
section shall affect the authorities of the Bureau of Land Management
under the Federal Land Policy and Management Act of 1976 (43 U.S.C.
1701 et seq.) or of the Forest Service under the National Forest
Management Act of 1976 (Public Law 94-588).
SEC. 4543. OCEAN ENERGY SAFETY SERVICE.
(a) Establishment.--There is established in the Department of the
Interior an Ocean Energy Safety Service (referred to in this section as
the ``Service''), which shall--
(1) be headed by a Director of Energy Safety (referred to
in this section as the ``Director''); and
(2) be administered under the direction of the Assistant
Secretary of Ocean Energy and Safety.
(b) Director.--
(1) Appointment.--The Director shall be appointed by the
Secretary of the Interior.
(2) Compensation.--The Director shall be compensated at the
rate provided for level V of the Executive Schedule under
section 5316 of title 5, United States Code.
(c) Duties.--
(1) In general.--The Secretary of the Interior shall carry
out through the Service all functions, powers, and duties
vested in the Secretary relating to the administration of
safety and environmental enforcement activities related to
offshore mineral and renewable energy resources on the Outer
Continental Shelf pursuant to the Outer Continental Shelf Lands
Act (43 U.S.C. 1331 et seq.) including the authority to
develop, promulgate, and enforce regulations to ensure the safe
and sound exploration, development, and production of mineral
and renewable energy resources on the Outer Continental Shelf
in a timely fashion.
(2) Specific authorities.--The Director shall be
responsible for all safety activities related to exploration
and development of renewable and mineral resources on the Outer
Continental Shelf, including--
(A) exploration, development, production, and
ongoing inspections of infrastructure;
(B) the suspending or prohibiting, on a temporary
basis, any operation or activity, including production
under leases held on the Outer Continental Shelf, in
accordance with section 5(a)(1) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1334(a)(1));
(C) cancelling any lease, permit, or right-of-way
on the Outer Continental Shelf, in accordance with
section 5(a)(2) of the Outer Continental Shelf Lands
Act (43 U.S.C. 1334(a)(2));
(D) compelling compliance with applicable Federal
laws and regulations relating to worker safety and
other matters;
(E) requiring comprehensive safety and
environmental management programs for persons engaged
in activities connected with the exploration,
development, and production of mineral or renewable
energy resources;
(F) developing and implementing regulations for
Federal employees to carry out any inspection or
investigation to ascertain compliance with applicable
regulations, including health, safety, or environmental
regulations;
(G) implementing the Offshore Technology Research
and Risk Assessment Program under section 21 of the
Outer Continental Shelf Lands Act (43 U.S.C. 1347);
(H) summoning witnesses and directing the
production of evidence;
(I) levying fines and penalties and disqualifying
operators;
(J) carrying out any safety, response, and removal
preparedness functions; and
(K) the processing of permits, exploration plans,
development plans.
(d) Employees.--
(1) In general.--The Secretary shall ensure that the
inspection force of the Bureau consists of qualified, trained
employees who meet qualification requirements and adhere to the
highest professional and ethical standards.
(2) Qualifications.--The qualification requirements
referred to in paragraph (1)--
(A) shall be determined by the Secretary, subject
to subparagraph (B); and
(B) shall include--
(i) 3 years of practical experience in oil
and gas exploration, development, or
production; or
(ii) a degree in an appropriate field of
engineering from an accredited institution of
higher learning.
(3) Assignment.--In assigning oil and gas inspectors to the
inspection and investigation of individual operations, the
Secretary shall give due consideration to the extent possible
to their previous experience in the particular type of oil and
gas operation in which such inspections are to be made.
(4) Background checks.--The Director shall require that an
individual to be hired as an inspection officer undergo an
employment investigation (including a criminal history record
check).
(5) Language requirements.--Individuals hired as inspectors
must be able to read, speak, and write English well enough to--
(A) carry out written and oral instructions
regarding the proper performance of inspection duties;
and
(B) write inspection reports and statements and log
entries in the English language.
(6) Veterans preference.--The Director shall provide a
preference for the hiring of an individual as a inspection
officer if the individual is a member or former member of the
Armed Forces and is entitled, under statute, to retired,
retirement, or retainer pay on account of service as a member
of the Armed Forces.
(7) Annual proficiency review.--
(A) Annual proficiency review.--The Director shall
provide that an annual evaluation of each individual
assigned inspection duties is conducted and documented.
(B) Continuation of employment.--An individual
employed as an inspector may not continue to be
employed in that capacity unless the evaluation
demonstrates that the individual--
(i) continues to meet all qualifications
and standards;
(ii) has a satisfactory record of
performance and attention to duty based on the
standards and requirements in the inspection
program; and
(iii) demonstrates the current knowledge
and skills necessary to courteously,
vigilantly, and effectively perform inspection
functions.
(8) Limitation on right to strike.--Any individual that
conducts permitting or inspections under this section may not
participate in a strike, or assert the right to strike.
(9) Personnel authority.--Notwithstanding any other
provision of law, the Director may employ, appoint, discipline
and terminate for cause, and fix the compensation, terms, and
conditions of employment of Federal service for individuals as
the employees of the Service in order to restore and maintain
the trust of the people of the United States in the
accountability of the management of our Nation's energy safety
program.
(10) Training academy.--
(A) In general.--The Secretary shall establish and
maintain a National Offshore Energy Safety Academy
(referred to in this paragraph as the ``Academy'') as
an agency of the Ocean Energy Safety Service.
(B) Functions of academy.--The Secretary, through
the Academy, shall be responsible for--
(i) the initial and continued training of
both newly hired and experienced offshore oil
and gas inspectors in all aspects of health,
safety, environmental, and operational
inspections;
(ii) the training of technical support
personnel of the Bureau;
(iii) any other training programs for
offshore oil and gas inspectors, Bureau
personnel, Department personnel, or other
persons as the Secretary shall designate; and
(iv) certification of the successful
completion of training programs for newly hired
and experienced offshore oil and gas
inspectors.
(C) Cooperative agreements.--
(i) In general.--In performing functions
under this paragraph, and subject to clause
(ii), the Secretary may enter into cooperative
educational and training agreements with
educational institutions, related Federal
academies, other Federal agencies, State
governments, safety training firms, and oil and
gas operators and related industries.
(ii) Training requirement.--Such training
shall be conducted by the Academy in accordance
with curriculum needs and assignment of
instructional personnel established by the
Secretary.
(11) Use of department personnel.--In performing functions
under this subsection, the Secretary shall use, to the extent
practicable, the facilities and personnel of the Department of
the Interior. The Secretary may appoint or assign to the
Academy such officers and employees as the Secretary considers
necessary for the performance of the duties and functions of
the Academy.
(12) Additional training programs.--
(A) In general.--The Secretary shall work with
appropriate educational institutions, operators, and
representatives of oil and gas workers to develop and
maintain adequate programs with educational
institutions and oil and gas operators that are
designed--
(i) to enable persons to qualify for
positions in the administration of this
subtitle; and
(ii) to provide for the continuing
education of inspectors or other appropriate
Department of the Interior personnel.
(B) Financial and technical assistance.--The
Secretary may provide financial and technical
assistance to educational institutions in carrying out
this paragraph.
(e) Limitation.--The Secretary shall not carry out through the
Service any function, power, or duty that is--
(1) required by section 4542 to be carried out through the
Bureau of Ocean Energy; or
(2) required by section 4544 to be carried out through the
Office of Natural Resources Revenue.
SEC. 4544. OFFICE OF NATURAL RESOURCES REVENUE.
(a) Establishment.--There is established in the Department of the
Interior an Office of Natural Resources Revenue (referred to in this
section as the ``Office'') to be headed by a Director of Natural
Resources Revenue (referred to in this section as the ``Director'').
(b) Appointment and Compensation.--
(1) In general.--The Director shall be appointed by the
Secretary of the Interior.
(2) Compensation.--The Director shall be compensated at the
rate provided for level V of the Executive Schedule under
section 5316 of title 5, United States Code.
(c) Duties.--
(1) In general.--The Secretary of the Interior shall carry
out, through the Office, all functions, powers, and duties
vested in the Secretary and relating to the administration of
offshore royalty and revenue management functions.
(2) Specific authorities.--The Secretary shall carry out,
through the Office, all functions, powers, and duties
previously assigned to the Minerals Management Service
(including the authority to develop, promulgate, and enforce
regulations) regarding offshore royalty and revenue collection;
royalty and revenue distribution; auditing and compliance;
investigation and enforcement of royalty and revenue
regulations; and asset management for onshore and offshore
activities.
(d) Limitation.--The Secretary shall not carry out through the
Office any function, power, or duty that is--
(1) required by section 4542 to be carried out through the
Bureau of Ocean Energy; or
(2) required by section 4543 to be carried out through the
Ocean Energy Safety Service.
SEC. 4545. ETHICS AND DRUG TESTING.
(a) Certification.--The Secretary of the Interior shall certify
annually that all Department of the Interior officers and employees
having regular, direct contact with lessees, contractors,
concessionaires, and other businesses interested before the Government
as a function of their official duties, or conducting investigations,
issuing permits, or responsible for oversight of energy programs, are
in full compliance with all Federal employee ethics laws and
regulations under the Ethics in Government Act of 1978 (5 U.S.C. App.)
and part 2635 of title 5, Code of Federal Regulations, and all guidance
issued under subsection (c).
(b) Drug Testing.--The Secretary shall conduct a random drug
testing program of all Department of the Interior personnel referred to
in subsection (a).
(c) Guidance.--Not later than 90 days after the date of enactment
of this Act, the Secretary shall issue supplementary ethics and drug
testing guidance for the employees for which certification is required
under subsection (a). The Secretary shall update the supplementary
ethics guidance not less than once every 3 years thereafter.
SEC. 4546. ABOLISHMENT OF MINERALS MANAGEMENT SERVICE.
(a) Abolishment.--The Minerals Management Service is abolished.
(b) Completed Administrative Actions.--
(1) In general.--Completed administrative actions of the
Minerals Management Service shall not be affected by the
enactment of this Act, but shall continue in effect according
to their terms until amended, modified, superseded, terminated,
set aside, or revoked in accordance with law by an officer of
the United States or a court of competent jurisdiction, or by
operation of law.
(2) Completed administrative action defined.--For purposes
of paragraph (1), the term ``completed administrative action''
includes orders, determinations, memoranda of understanding,
memoranda of agreements, rules, regulations, personnel actions,
permits, agreements, grants, contracts, certificates, licenses,
registrations, and privileges.
(c) Pending Proceedings.--Subject to the authority of the Secretary
of the Interior and the officers of the Department of the Interior
under this subtitle--
(1) pending proceedings in the Minerals Management Service,
including notices of proposed rulemaking, and applications for
licenses, permits, certificates, grants, and financial
assistance, shall continue, notwithstanding the enactment of
this subtitle or the vesting of functions of the Service in
another agency, unless discontinued or modified under the same
terms and conditions and to the same extent that such
discontinuance or modification could have occurred if this
subtitle had not been enacted; and
(2) orders issued in such proceedings, and appeals
therefrom, and payments made pursuant to such orders, shall
issue in the same manner and on the same terms as if this
subtitle had not been enacted, and any such orders shall
continue in effect until amended, modified, superseded,
terminated, set aside, or revoked by an officer of the United
States or a court of competent jurisdiction, or by operation of
law.
(d) Pending Civil Actions.--Subject to the authority of the
Secretary of the Interior or any officer of the Department of the
Interior under this subtitle, pending civil actions shall continue
notwithstanding the enactment of this subtitle, and in such civil
actions, proceedings shall be had, appeals taken, and judgments
rendered and enforced in the same manner and with the same effect as if
such enactment had not occurred.
(e) References.--References relating to the Minerals Management
Service in statutes, Executive orders, rules, regulations, directives,
or delegations of authority that precede the effective date of this Act
are deemed to refer, as appropriate, to the Department, to its
officers, employees, or agents, or to its corresponding organizational
units or functions. Statutory reporting requirements that applied in
relation to the Minerals Management Service immediately before the
effective date of this subtitle shall continue to apply.
SEC. 4547. CONFORMING AMENDMENTS TO EXECUTIVE SCHEDULE PAY RATES.
(a) Under Secretary for Energy, Lands, and Minerals.--Section 5314
of title 5, United States Code, is amended by inserting after the item
relating to ``Under Secretaries of the Treasury (3).'' the following:
``Under Secretary for Energy, Lands, and Minerals,
Department of the Interior.''.
(b) Assistant Secretaries.--Section 5315 of title 5, United States
Code, is amended by striking ``Assistant Secretaries of the Interior
(6).'' and inserting the following:
``Assistant Secretaries, Department of the Interior (7).''.
(c) Directors.--Section 5316 of title 5, United States Code, is
amended by striking ``Director, Bureau of Mines, Department of the
Interior.'' and inserting the following new items:
``Director, Bureau of Ocean Energy, Department of the
Interior.
``Director, Ocean Energy Safety Service, Department of the
Interior.
``Director, Office of Natural Resources Revenue, Department
of the Interior.''.
SEC. 4548. OUTER CONTINENTAL SHELF ENERGY SAFETY ADVISORY BOARD.
(a) Establishment.--The Secretary of the Interior shall establish,
under the Federal Advisory Committee Act, an Outer Continental Shelf
Energy Safety Advisory Board (referred to in this section as the
``Board'')--
(1) to provide the Secretary and the Directors established
by this Act with independent scientific and technical advice on
safe, responsible, and timely mineral and renewable energy
exploration, development, and production activities; and
(2) to review operations of the National Offshore Energy
Health and Safety Academy established under section 4543(d),
including submitting to the Secretary recommendations of
curriculum to ensure training scientific and technical
advancements.
(b) Membership.--
(1) Size.--The Board shall consist of not more than 11
members, who--
(A) shall be appointed by the Secretary based on
their expertise in oil and gas drilling, well design,
operations, well containment and oil spill response;
and
(B) must have significant scientific, engineering,
management, and other credentials and a history of
working in the field related to safe energy
exploration, development, and production activities.
(2) Consultation and nominations.--The Secretary shall
consult with the National Academy of Sciences and the National
Academy of Engineering to identify potential candidates for the
Board and shall take nominations from the public.
(3) Term.--The Secretary shall appoint Board members to
staggered terms of not more than 4 years, and shall not appoint
a member for more than 2 consecutive terms.
(4) Balance.--In appointing members to the Board, the
Secretary shall ensure a balanced representation of industry
and research interests.
(c) Chair.--The Secretary shall appoint the Chair for the Board
from among its members.
(d) Meetings.--The Board shall meet not less than 3 times per year
and shall host, at least once per year, a public forum to review and
assess the overall energy safety performance of Outer Continental Shelf
mineral and renewable energy resource activities.
(e) Offshore Drilling Safety Assessments and Recommendations.--As
part of its duties under this section, the Board shall, by not later
than 180 days after the date of enactment of this section and every 5
years thereafter, submit to the Secretary a report that--
(1) assesses offshore oil and gas well control
technologies, practices, voluntary standards, and regulations
in the United States and elsewhere; and
(2) as appropriate, recommends modifications to the
regulations issued under this subtitle to ensure adequate
protection of safety and the environment, including
recommendations on how to reduce regulations and administrative
actions that are duplicative or unnecessary.
(f) Reports.--Reports of the Board shall be submitted by the Board
to the Committee on Natural Resources of the House of Representatives
and the Committee on Energy and Natural Resources of the Senate and
made available to the public in electronically accessible form.
(g) Travel Expenses.--Members of the Board, other than full-time
employees of the Federal Government, while attending a meeting of the
Board or while otherwise serving at the request of the Secretary or the
Director while serving away from their homes or regular places of
business, may be allowed travel expenses, including per diem in lieu of
subsistence, as authorized by section 5703 of title 5, United States
Code, for individuals in the Government serving without pay.
SEC. 4549. OUTER CONTINENTAL SHELF INSPECTION FEES.
Section 22 of the Outer Continental Shelf Lands Act (43 U.S.C.
1348) is amended by adding at the end of the section the following:
``(g) Inspection Fees.--
``(1) Establishment.--The Secretary of the Interior shall
collect from the operators of facilities subject to inspection
under subsection (c) non-refundable fees for such inspections--
``(A) at an aggregate level equal to the amount
necessary to offset the annual expenses of inspections
of outer Continental Shelf facilities (including mobile
offshore drilling units) by the Department of the
Interior; and
``(B) using a schedule that reflects the
differences in complexity among the classes of
facilities to be inspected.
``(2) Ocean energy safety fund.--There is established in
the Treasury a fund, to be known as the `Ocean Energy
Enforcement Fund' (referred to in this subsection as the
`Fund'), into which shall be deposited all amounts collected as
fees under paragraph (1) and which shall be available as
provided under paragraph (3).
``(3) Availability of fees.--
``(A) In general.--Notwithstanding section 3302 of
title 31, United States Code, all amounts deposited in
the Fund--
``(i) shall be credited as offsetting
collections;
``(ii) shall be available for expenditure
for purposes of carrying out inspections of
outer Continental Shelf facilities (including
mobile offshore drilling units) and the
administration of the inspection program under
this section;
``(iii) shall be available only to the
extent provided for in advance in an
appropriations Act; and
``(iv) shall remain available until
expended.
``(B) Use for field offices.--Not less than 75
percent of amounts in the Fund may be appropriated for
use only for the respective Department of the Interior
field offices where the amounts were originally
assessed as fees.
``(4) Initial fees.--Fees shall be established under this
subsection for the fiscal year in which this subsection takes
effect and the subsequent 10 years, and shall not be raised
without advise and consent of the Congress, except as
determined by the Secretary to be appropriate as an adjustment
equal to the percentage by which the Consumer Price Index for
the month of June of the calendar year preceding the adjustment
exceeds the Consumer Price Index for the month of June of the
calendar year in which the claim was determined or last
adjusted.
``(5) Annual fees.--Annual fees shall be collected under
this subsection for facilities that are above the waterline,
excluding drilling rigs, and are in place at the start of the
fiscal year. Fees for fiscal year 2014 shall be--
``(A) $10,500 for facilities with no wells, but
with processing equipment or gathering lines;
``(B) $17,000 for facilities with 1 to 10 wells,
with any combination of active or inactive wells; and
``(C) $31,500 for facilities with more than 10
wells, with any combination of active or inactive
wells.
``(6) Fees for drilling rigs.--Fees for drilling rigs shall
be assessed under this subsection for all inspections completed
in fiscal years 2014 through 2023. Fees for fiscal year 2014
shall be--
``(A) $30,500 per inspection for rigs operating in
water depths of 1,000 feet or more; and
``(B) $16,700 per inspection for rigs operating in
water depths of less than 1,000 feet.
``(7) Billing.--The Secretary shall bill designated
operators under paragraph (5) within 60 days after the date of
the inspection, with payment required within 30 days of
billing. The Secretary shall bill designated operators under
paragraph (6) within 30 days of the end of the month in which
the inspection occurred, with payment required within 30 days
after billing.
``(8) Sunset.--No fee may be collected under this
subsection for any fiscal year after fiscal year 2023.
``(9) Annual reports.--
``(A) In general.--Not later than 60 days after the
end of each fiscal year beginning with fiscal year
2015, the Secretary shall submit to the Committee on
Energy and Natural Resources of the Senate and the
Committee on Natural Resources of the House of
Representatives a report on the operation of the Fund
during the fiscal year.
``(B) Contents.--Each report shall include, for the
fiscal year covered by the report, the following:
``(i) A statement of the amounts deposited
into the Fund.
``(ii) A description of the expenditures
made from the Fund for the fiscal year,
including the purpose of the expenditures and
the additional hiring of personnel.
``(iii) A statement of the balance
remaining in the Fund at the end of the fiscal
year.
``(iv) An accounting of pace of permit
approvals.
``(v) If fee increases are proposed after
the initial 10-year period referred to in
paragraph (5), a proper accounting of the
potential adverse economic impacts such fee
increases will have on offshore economic
activity and overall production, conducted by
the Secretary.
``(vi) Recommendations to increase the
efficacy and efficiency of offshore
inspections.
``(vii) Any corrective actions levied upon
offshore inspectors as a result of any form of
misconduct.''.
SEC. 4550. PROHIBITION ON ACTION BASED ON NATIONAL OCEAN POLICY
DEVELOPED UNDER EXECUTIVE ORDER NO. 13547.
(a) Prohibition.--The Bureau of Ocean Energy and the Ocean Energy
Safety Service may not develop, propose, finalize, administer, or
implement, any limitation on activities under their jurisdiction as a
result of the coastal and marine spatial planning component of the
National Ocean Policy developed under Executive Order No. 13547.
(b) Report on Expenditures.--Not later than 60 days after the date
of enactment of this Act, the President shall submit a report to the
Committee on Natural Resources of the House of Representatives and the
Committee on Energy and Natural Resources of the Senate identifying all
Federal expenditures in fiscal years 2011, 2012, 2013, and 2014, by the
Bureau of Ocean Energy and the Ocean Energy Safety Service and their
predecessor agencies, by agency, account, and any pertinent
subaccounts, for the development, administration, or implementation of
the coastal and marine spatial planning component of the National Ocean
Policy developed under Executive Order No. 13547, including staff time,
travel, and other related expenses.
CHAPTER 5--UNITED STATES TERRITORIES
SEC. 4551. APPLICATION OF OUTER CONTINENTAL SHELF LANDS ACT WITH
RESPECT TO TERRITORIES OF THE UNITED STATES.
Section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 1331)
is amended--
(1) in paragraph (a), by inserting after ``control'' the
following: ``or lying within the United States exclusive
economic zone and the Continental Shelf adjacent to any
territory of the United States'';
(2) in paragraph (p), by striking ``and'' after the
semicolon at the end;
(3) in paragraph (q), by striking the period at the end and
inserting ``; and''; and
(4) by adding at the end the following:
``(r) The term `State' includes each territory of the United
States.''.
CHAPTER 6--MISCELLANEOUS PROVISIONS
SEC. 4561. RULES REGARDING DISTRIBUTION OF REVENUES UNDER GULF OF
MEXICO ENERGY SECURITY ACT OF 2006.
(a) In General.--Not later than 60 days after the date of enactment
of this Act, the Secretary of the Interior shall issue rules to provide
more clarity, certainty, and stability to the revenue streams
contemplated by the Gulf of Mexico Energy Security Act of 2006 (43
U.S.C. 1331 note).
(b) Contents.--The rules shall include clarification of the timing
and methods of disbursements of funds under section 105(b)(2) of such
Act.
SEC. 4562. AMOUNT OF DISTRIBUTED QUALIFIED OUTER CONTINENTAL SHELF
REVENUES.
Section 105(f)(1) of the Gulf of Mexico Energy Security Act of 2006
(title I of division C of Public Law 109-432; 43 U.S.C. 1331 note)
shall be applied by substituting ``2024, and shall not exceed
$999,999,999 for each of fiscal years 2025 through 2056'' for ``2055''.
CHAPTER 7--JUDICIAL REVIEW
SEC. 4571. TIME FOR FILING COMPLAINT.
(a) In General.--Any cause of action that arises from a covered
energy decision must be filed not later than the end of the 60-day
period beginning on the date of the covered energy decision. Any cause
of action not filed within this time period shall be barred.
(b) Exception.--Subsection (a) shall not apply to a cause of action
brought by a party to a covered energy lease.
SEC. 4572. DISTRICT COURT DEADLINE.
(a) In General.--All proceedings that are subject to section 4571--
(1) shall be brought in the United States district court
for the district in which the Federal property for which a
covered energy lease is issued is located or the United States
District Court of the District of Columbia;
(2) shall be resolved as expeditiously as possible, and in
any event not more than 180 days after such cause or claim is
filed; and
(3) shall take precedence over all other pending matters
before the district court.
(b) Failure To Comply With Deadline.--If an interlocutory or final
judgment, decree, or order has not been issued by the district court by
the deadline described under this section, the cause or claim shall be
dismissed with prejudice and all rights relating to such cause or claim
shall be terminated.
SEC. 4573. ABILITY TO SEEK APPELLATE REVIEW.
An interlocutory or final judgment, decree, or order of the
district court in a proceeding that is subject to section 4571 may be
reviewed by the U.S. Court of Appeals for the District of Columbia
Circuit. The D.C. Circuit shall resolve any such appeal as
expeditiously as possible and, in any event, not more than 180 days
after such interlocutory or final judgment, decree, or order of the
district court was issued.
SEC. 4574. LIMITATION ON SCOPE OF REVIEW AND RELIEF.
(a) Administrative Findings and Conclusions.--In any judicial
review of any Federal action under this chapter, any administrative
findings and conclusions relating to the challenged Federal action
shall be presumed to be correct unless shown otherwise by clear and
convincing evidence contained in the administrative record.
(b) Limitation on Prospective Relief.--In any judicial review of
any action, or failure to act, under this chapter, the Court shall not
grant or approve any prospective relief unless the Court finds that
such relief is narrowly drawn, extends no further than necessary to
correct the violation of a Federal law requirement, and is the least
intrusive means necessary to correct the violation concerned.
SEC. 4575. LEGAL FEES.
Any person filing a petition seeking judicial review of any action,
or failure to act, under this chapter who is not a prevailing party
shall pay to the prevailing parties (including intervening parties),
other than the United States, fees and other expenses incurred by that
party in connection with the judicial review, unless the Court finds
that the position of the person was substantially justified or that
special circumstances make an award unjust.
SEC. 4576. EXCLUSION.
This chapter shall not apply with respect to disputes between the
parties to a lease issued pursuant to an authorizing leasing statute
regarding the obligations of such lease or the alleged breach thereof.
SEC. 4577. DEFINITIONS.
In this chapter, the following definitions apply:
(1) Covered energy decision.--The term ``covered energy
decision'' means any action or decision by a Federal official
regarding the issuance of a covered energy lease.
(2) Covered energy lease.--The term ``covered energy
lease'' means any lease under this subtitle or under an oil and
gas leasing program under this subtitle.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, the Budget, the Judiciary, Rules, Natural Resources, Transportation and Infrastructure, and Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, the Budget, the Judiciary, Rules, Natural Resources, Transportation and Infrastructure, and Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, the Budget, the Judiciary, Rules, Natural Resources, Transportation and Infrastructure, and Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, the Budget, the Judiciary, Rules, Natural Resources, Transportation and Infrastructure, and Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, the Budget, the Judiciary, Rules, Natural Resources, Transportation and Infrastructure, and Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, the Budget, the Judiciary, Rules, Natural Resources, Transportation and Infrastructure, and Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, the Budget, the Judiciary, Rules, Natural Resources, Transportation and Infrastructure, and Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, the Budget, the Judiciary, Rules, Natural Resources, Transportation and Infrastructure, and Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Energy and Power.
Referred to the Subcommittee on Coast Guard and Maritime Transportation.
Referred to the Subcommittee on Railroads, Pipelines, and Hazardous Materials.
Referred to the Subcommittee on Water Resources and Environment.
Referred to the Subcommittee on Environment.
Referred to the Subcommittee on Energy and Mineral Resources.
Referred to the Subcommittee on Public Lands and Environmental Regulation.