A bill to amend the Federal Water Pollution Control Act to protect 1/5 of the world's fresh water supply by directing the Administrator of the Environmental Protection Agency to conduct a study on the known and potential environmental effects of oil and gas drilling on land beneath the water in the Great Lakes, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Great Lakes Water Protection Act''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the Great Lakes contain \1/5\ of the world's fresh 
        water supply;
            (2) the Great Lakes basin is home to over 33,000,000 people 
        and is a vital source of safe drinking water for millions of 
        people;
            (3) the Great Lakes support many wetlands, sand dunes, and 
        other fragile coastal habitats;
            (4) those coastal habitats are home to many endangered and 
        threatened wildlife and plant species, including the piping 
        plover, Pitcher's thistle, and the dwarf lake iris;
            (5) the Great Lakes are crucial to the economies of the 
        Great Lakes States for recreation, commercial shipping, and 
        industrial and agriculture uses; and
            (6) oil and gas development beneath the water in any of the 
        Great Lakes could--
                    (A) expose a valuable fresh water supply of the 
                United States to serious contamination; and
                    (B) cause serious environmental damage to the water 
                and shoreline of the Great Lakes.

SEC. 3. EFFECTS OF OIL AND GAS DEVELOPMENT ON THE GREAT LAKES.

    The Federal Water Pollution Control Act is amended by inserting 
after section 108 (33 U.S.C. 1258) the following:

``SEC. 108A. EFFECTS OF OIL AND GAS DEVELOPMENT ON THE GREAT LAKES.

    ``(a) Definitions.--In this section:
            ``(1) Academy.--The term `Academy' means the National 
        Academy of Sciences.
            ``(2) Drilling activity.--
                    ``(A) In general.--The term `drilling activity' 
                means any drilling to extract oil or gas from land 
                beneath the water in any of the Great Lakes.
                    ``(B) Inclusions.--The term `drilling activity' 
                includes--
                            ``(i) directional drilling (also known as 
                        `slant drilling'); and
                            ``(ii) offshore drilling.
            ``(3) Great lake.--The term `Great Lake' means--
                    ``(A) Lake Erie;
                    ``(B) Lake Huron (including Lake Saint Clair);
                    ``(C) Lake Michigan;
                    ``(D) Lake Ontario (including the Saint Lawrence 
                River from Lake Ontario to the 45th parallel of 
                latitude); and
                    ``(E) Lake Superior.
            ``(4) Great lakes state.--The term `Great Lakes State' 
        means each of the States of Illinois, Indiana, Michigan, 
        Minnesota, New York, Ohio, Pennsylvania, and Wisconsin.
    ``(b) Incentives To Prevent Drilling Activity.--
            ``(1) In general.--To be eligible to receive an incentive 
        grant under paragraph (2), a grant under section 601(a), or a 
        grant under section 1452 of the Safe Drinking Water Act (42 
        U.S.C. 300j-12), a Great Lakes State shall not issue any oil or 
        gas permit or lease for drilling activity.
            ``(2) Incentive grants.--
                    ``(A) In general.--For each fiscal year or portion 
                of a fiscal year in which paragraph (1) is in effect, 
                the Secretary of the Interior shall make grants to 
                Great Lakes States.
                    ``(B) Use of grants.--A Great Lakes State shall use 
                a grant under this paragraph to carry out conservation 
                activities in the State, including activities to 
conserve parkland and protect shores.
                    ``(C) Amount of grants.--For each fiscal year or 
                portion of a fiscal year, the amount of a grant to a 
                Great Lakes State under subparagraph (A) shall be equal 
                to the product obtained by multiplying--
                            ``(i) the amount available for grants under 
                        this paragraph for the fiscal year or portion 
                        of a fiscal year; and
                            ``(ii) the ratio that--
                                    ``(I) the amount of funds that the 
                                Great Lakes State would have received, 
                                but for paragraph (1), from the sale of 
                                oil and gas from the Great Lakes during 
                                the fiscal year; bears to
                                    ``(II) the amount of funds that all 
                                Great Lakes States would have received, 
                                but for paragraph (1), from the sale of 
                                oil and gas from the Great Lakes during 
                                the fiscal year.
                    ``(D) Maximum amount of grants.--For each fiscal 
                year, the Secretary of the Interior may make grants 
                under this paragraph in an aggregate amount not to 
                exceed $50,000,000.
    ``(c) Study.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of this section, the Administrator shall conduct a 
        study to examine the known and potential environmental effects 
        of drilling activity, including any effects on--
                    ``(A) water quality (including the quality of 
                drinking water);
                    ``(B) the sediments and shorelines of the Great 
                Lakes;
                    ``(C) fish and other aquatic species, plants, and 
                wildlife that are dependent on Great Lakes resources;
                    ``(D) competing uses of water and shoreline areas 
                of the Great Lakes; and
                    ``(E) public health of local communities.
            ``(2) Consultation.--In designing and conducting the study, 
        the Administrator shall consult with--
                    ``(A) the Secretary of Energy;
                    ``(B) the Administrator of the National Oceanic and 
                Atmospheric Administration;
                    ``(C) the Chief of Engineers;
                    ``(D) the Great Lakes States; and
                    ``(E) as appropriate, representatives of 
                environmental, industry, academic, scientific, public 
                health, and other relevant organizations.
            ``(3) Independent review.--Not later than 180 days after 
        the date of enactment of this section, the Administrator shall 
        enter into an agreement with the Academy under which the 
        Administrator shall submit to the Academy, and the Academy 
        shall review, the results of the study.
            ``(4) Report.--Not later than 1 year after the date of 
        submission to the Academy of the study under paragraph (3), the 
        Academy shall submit to the Administrator and Congress--
                    ``(A) the study; and
                    ``(B) a report that describes the results of the 
                review by the Academy (including any recommendations 
                concerning the results of the study).
            ``(5) Action by congress.--It is the sense of Congress 
        that, after receiving the study and report under paragraph (4), 
        Congress should--
                    ``(A) review the study and report;
                    ``(B) conduct hearings concerning the impact of 
                drilling activity; and
                    ``(C) determine whether to eliminate the condition 
                under subsection (b)(1).
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.''.

Summary: Great Lakes Water Protection Act - Amends the Federal Water Pollution Control Act to allow a Great Lakes State to receive an incentive grant under this Act to carry out conservation activities or a grant under the Safe Drinking Water Act to establish a State revolving loan fund only if the State does not issue any oil or gas permit or lease for drilling to extract oil or gas from land beneath the water in any of the Great Lakes. Requires the Administrator of the Environmental Protection Agency to study the environmental effects of such drilling activity and submit the results of the study to the National Academy of Sciences for review. Expresses the sense of Congress with respect to action upon receipt of the study.