Red Hill Oversight and Environmental Protection Act of 2017

Summary: Red Hill Oversight and Environmental Protection Act of 2017 This bill requires the Department of Defense (DOD) to ensure that: (1) its budget justification materials submitted to Congress include a description of how it will use funds to support any deliverables that the parties of the agreement between the Department of the Navy, the Defense Logistics Agency, the Environmental Protection Agency (EPA), Region 9, and the State of Hawaii Department of Health, entered into on September 28, 2015, have identified as necessary to mitigate and prevent fuel leaks at the Red Hill Bulk Fuel Storage Facility on Oahu, Hawaii; and (2) each future-years defense program describes how DOD will use funds to support deliverables that the parties to such agreement identified as necessary to mitigate and prevent such leaks.  The EPA must ensure that its budget justification materials submitted to Congress include a description of how it will use funds to support such deliverables. DOD may obligate or expend specified amounts to carry out an unspecified minor military construction project for the sustainment and maintenance of the facility. DOD shall submit to the congressional defense committees written notice of any decision to carry out such project, including a justification for, and the estimated cost of, such project. The authority to carry out such project shall terminate on September 30, 2030.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Red Hill Oversight and Environmental 
Protection Act of 2017''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Administrative order on consent/statement of work; 
        (aoc/sow).--The terms ``Administrative Order on Consent/
        Statement of Work'' and ``(AOC/SOW)'' mean a legally 
        enforceable agreement between the United States Department of 
        the Navy (Navy), the Defense Logistics Agency (DLA), the United 
        States Environmental Protection Agency (EPA), Region 9, and the 
        State of Hawaii Department of Health (DOH) that the parties 
        voluntarily entered into on September 28, 2015 (EPA DKT NO. 
        RCRA 7003-R9-2015-01/DOH DKT NO. 15-UST-EA-01).
            (2) Congressional defense committees.--The term 
        ``congressional defense committees'' has the meaning given the 
        term in section 101(a)(16) of title 10, United States Code.
            (3) Facility.--The term ``facility'' means the Red Hill 
        Bulk Fuel Storage Facility located on Oahu, Hawaii.

SEC. 3. FINDINGS.

    Congress makes the following findings:
            (1) Construction on the Red Hill Bulk Fuel Storage Facility 
        began in secret in December 1940.
            (2) More than 3,900 workers constructed the underground 
        facility.
            (3) Construction of the facility continued nonstop except 
        for the time of the attack on Pearl Harbor, on December 7, 
        1941. The facility was completed in September 1943, nine months 
        ahead of schedule.
            (4) The facility was constructed underground in hollowed 
        out volcanic rock to allow for maximum protection of the fuel 
        supply.
            (5) The facility's 20 steel tanks are encased by 2.5-4 feet 
        of concrete and surrounded by basalt bedrock.
            (6) Only 18 fuel tanks are currently operational.
            (7) The facility is the largest single Department of 
        Defense fuel storage facility in the Pacific theater.
            (8) The facility protects more than 250,000,000 gallons of 
        fuel.
            (9) The fuels stored are marine diesel, F-76, and two types 
        of jet fuel: JP-5 and JP-8.
            (10) The fuel stored at the facility directly supports 
        vessels and aircraft of--
                    (A) the United States Navy and Air Force in Hawaii, 
                the Pacific theater, and around the world;
                    (B) the Hawaii National Guard;
                    (C) the United States Coast Guard; and
                    (D) the National Oceanic and Atmospheric 
                Administration.
            (11) The facility allows the United States military to--
                    (A) maintain a forward presence;
                    (B) build cooperation with partner nations, 
                including through the biannual Rim of the Pacific 
                exercise;
                    (C) ensure maritime security; and
                    (D) maintain regional stability.
            (12) Military forward presence--
                    (A) keeps sea lanes open; and
                    (B) ensures the free flow of commerce to Hawaii, 
                the continental United States, and the Indo-Asia-
                Pacific region.
            (13) In 1991, the facility was used as a transfer point for 
        moving fuel from the continental United States to the Persian 
        Gulf.
            (14) This transfer of fuel was done as part of the first 
        Gulf War.
            (15) The facility was declassified in 1995.
            (16) The facility is physically protected and cyber-
        hardened.
            (17) The facility can be operated entirely off the electric 
        grid by using gravity flow to transport fuel from the facility 
        to Pearl Harbor, Hickam Airfield, and a truck loading site.
            (18) The facility is located approximately 100 feet above 
        the basal groundwater table on the boundary of the Waimalu and 
        Moanalua Aquifer Systems.
            (19) The Waimalu and Moanalua aquifers are sources of 
        potable water and are potentially vulnerable to contamination 
        from an unscheduled discharge of fuel from the facility.
            (20) The Navy and the Defense Logistics Agency have kept 
        the drinking water safe through 70 years of operation.
            (21) The Navy and the Defense Logistics Agency are 
        responsible for protecting the public from unscheduled fuel 
        leaks that may pose a risk to the drinking water.
            (22) The facility has experienced unscheduled fuel leaks as 
        evidenced by stains beneath several of the existing fuel tanks.
            (23) Chronic releases of petroleum, oils, and lubricants 
        have the potential to cause damage to Oahu's drinking water 
        supply.
            (24) Historic records compiled by the Navy in a 2008 ground 
        water protection plan indicated that there were more than 30 
        leaks dating back to 1947.
            (25) The 2008 ground water protection plan suggested at 
        least 170,000 gallons of fuel has leaked since the facility 
        began operating.
            (26) In January 2014, the United States Navy discovered a 
        loss of fuel from Tank #5 and notified the Environmental 
        Protection Agency and the Hawaii Department of Health (DOH).
            (27) The Navy estimated the fuel loss at approximately 
        27,000 gallons.
            (28) Following the January 2014 fuel release, the EPA and 
        DOH negotiated an enforceable agreement, an Administrative 
        Order on Consent (AOC), with the Navy and the DLA [EPA DKT NO. 
        RCRA 7003-R9-2015-01/DOH DKT NO. 15-UST-EA-01].
            (29) The order requires the Navy and the DLA to take 
        actions, subject to DOH and EPA approval.
            (30) The order addresses fuel releases and implementable 
        infrastructure improvements to protect human health and the 
        environment.
            (31) The order includes a Statement of Work (SOW) that lays 
        out the specific tasks the Navy and the DLA must implement.
            (32) The SOW consists of 8 sections on overall project 
        management:
                    (A) Tank inspection.
                    (B) Repair and maintenance.
                    (C) Tank upgrade alternatives.
                    (D) Release detection and tank tightness testing.
                    (E) Corrosion and metal fatigue practices.
                    (F) Investigation and remediation of releases.
                    (G) Groundwater protection and evaluation.
                    (H) Risk and vulnerability assessment.
            (33) Each section includes deadlines for the Navy and DLA 
        to meet planned deliverables.
            (34) The Fiscal Year 2018-2019 Area Cost Factor for Pearl 
        Harbor is 2.26.
            (35) The Area Cost Factor may impact decisionmaking for 
        sustainment, repair, and maintenance priorities.
            (36) Since the January 2014 fuel loss, the Navy has--
                    (A) increased standards for contractor workmanship;
                    (B) increased government oversight;
                    (C) updated operator procedures;
                    (D) increased training;
                    (E) instituted new safeguards, checks, balances, 
                and alarm procedures; and
                    (F) installed two additional groundwater monitoring 
                wells.
            (37) The facility has 12 total groundwater monitoring 
        sites.

SEC. 4. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) the facility is a national strategic asset that--
                    (A) supports combatant commander theater security 
                requirements;
                    (B) supports contingency operations;
                    (C) provides essential and timely support to the 
                United States and allies' military mobilizations and 
                disaster response efforts in the Indo-Asia-Pacific and 
                around the world; and
                    (D) is routinely used to support normal transit of 
                Navy and Air Force movements in the region;
            (2) the facility in its current form cannot be replicated 
        anywhere else in the world;
            (3) moving the fuel to another storage facility in the 
        Indo-Asia-Pacific would have implications for the United States 
        military force structure in the State of Hawaii and put at risk 
        billions of dollars in annual economic activity that the Armed 
        Forces bring to the State of Hawaii;
            (4) if the facility were closed, the United States Armed 
        Forces would be unable to support the National Military 
        Strategy, including the goals of the United States Pacific 
        Commander, and national security interests would be 
        significantly undermined;
            (5) constant vigilance is required to ensure that facility 
        degradation and fuel leaks do not pose a threat to the people 
        of Hawaii, especially the drinking water on Oahu;
            (6) despite its importance, the facility continues to face 
        long-term challenges without robust and consistent funding that 
        provides the Navy and DLA with the resources needed to improve 
        the tanks and associated infrastructure;
            (7) achieving the AOC/SOW deliverables is a multiyear 
        effort that will require sustained commitment from the 
        Department of Defense and Congress;
            (8) the annual budget submissions of the Department of 
        Defense and the Environmental Protection Agency must adequately 
        reflect the funding requirements necessary to meet the 
        deliverables committed to under the AOC/SOW;
            (9) the Department of Defense must also include information 
        about how future years budgets will support the near-term and 
        long-term measures detailed in the reported schedule of work to 
        prevent future fuel leaks; and
            (10) for facility sustainment and maintenance, Pearl Harbor 
        has a high Area Cost Factor (ACF), and the Department of 
        Defense should develop a strategy that fiscally accounts for 
        that ACF.

SEC. 5. BUDGET SUBMISSIONS.

    (a) Department of Defense.--
            (1) Annual budget justification.--The Secretary of Defense, 
        in consultation with the Secretary of the Navy, shall ensure 
        that the budget justification materials submitted to Congress 
        in support of the Department of Defense budget for any fiscal 
        year (as submitted with the budget of the President under 
        section 1105(a) of title 31, United States Code) include a 
        description of how the Department will use funds to support any 
        deliverables that the parties to the AOC/SOW have identified as 
        necessary to mitigate and prevent fuel leaks at the Red Hill 
        Bulk Fuel Storage Facility on Oahu, Hawaii.
            (2) Future years defense program.--The Secretary of 
        Defense, in consultation with the Secretary of the Navy, shall 
        ensure that each future-years defense program submitted to 
        Congress under section 221 of title 10, United States Code, 
        describes how the Department will use funds to support any 
        deliverables that the parties to the AOC/SOW have identified as 
        necessary to mitigate and prevent fuel leaks at the Red Hill 
        Bulk Fuel Storage Facility on Oahu, Hawaii, in the period 
        covered by the future-years defense program.
    (b) Environmental Protection Agency.--The Administrator of the 
Environmental Protection Agency shall ensure that the budget 
justification materials submitted to Congress in support of the budget 
for the Agency for any fiscal year (as submitted with the budget of the 
President under section 1105(a) of title 31) includes a description of 
how the Agency will use funds to support any deliverables that the 
parties of the AOC/SOW have identified as necessary to mitigate and 
prevent fuel leaks at the Red Hill Bulk Fuel Storage Facility on Oahu, 
Hawaii.

SEC. 6. ANNUAL LOCALITY ADJUSTMENT OF DOLLAR THRESHOLDS APPLICABLE TO 
              RED HILL.

    (a) In General.--Notwithstanding the dollar limitations in section 
2805 of title 10, United States Code, the Secretary of Defense may 
obligate or expend, from the amounts described in subsection (b), not 
more than $6,780,000 to carry out an unspecified minor military 
construction project for the sustainment and maintenance of the Red 
Hill Bulk Fuel Storage Facility on Oahu, Hawaii.
    (b) Amounts.--The amounts described in this subsection are--
            (1) amounts authorized to be appropriated for the 
        Department of Defense for operation and maintenance, Defense-
        wide, for any of fiscal years 2017 through 2030; and
            (2) amounts authorized to be appropriated for the 
        Department of Defense for military construction not otherwise 
        authorized by law for any of fiscal years 2017 through 2030.
    (c) Notification.--In accordance with section 2805(b) of title 10, 
United States Code, the Secretary shall submit to the congressional 
defense committees written notice of any decision to carry out an 
unspecified minor military construction project under subsection (a). 
Such notice shall include--
            (1) the justification for the project; and
            (2) the estimated cost of the project.
    (d) Sunset.--The authority to carry out a project under subsection 
(a) shall terminate on September 30, 2030.