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[House Report 112-302]
[From the U.S. Government Publishing Office]

112th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    112-302

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  TECHNOLOGICAL ASSESSMENT, INVENTORY, AND STUDY OF SHALLOW AND DEEP 
                            SEABED MINERALS

                                _______
                                

December 1, 2011.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Hastings of Washington, from the Committee on Natural Resources, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 2803]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Natural Resources, to whom was referred the 
bill (H.R. 2803) to direct the Secretary of the Interior, 
acting through the Bureau of Ocean Energy Management, 
Regulation and Enforcement, to conduct a technological 
capability assessment, survey, and economic feasibility study 
regarding recovery of minerals, other than oil and natural gas, 
from the shallow and deep seabed of the United States, having 
considered the same, report favorably thereon with amendments 
and recommend that the bill as amended do pass.
  The amendments are as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. TECHNOLOGICAL ASSESSMENT, INVENTORY, AND STUDY OF SHALLOW 
                    AND DEEP SEABED MINERALS.

  (a) Authorization.--The Secretary of the Interior, acting through the 
Bureau of Ocean Energy Management, Regulation and Enforcement and the 
United States Geological Survey and in consultation with the heads of 
other appropriate Federal agencies, shall conduct--
          (1) an inventory of existing data on offshore mineral 
        resources, other than oil and natural gas, and an analysis of 
        existing samples of such offshore minerals, to identify and 
        quantify known resources;
          (2) an assessment of all available domestic technological 
        capabilities required for the location and the efficient and 
        environmentally sound recovery of such minerals from the 
        shallow and deep seabed of the United States;
          (3) an economic feasibility study on the recovery of such 
        minerals; and
          (4) an assessment of the environmental and safety risks 
        associated with shallow and deep sea mineral production, other 
        than oil and natural gas.
  (b) Report.--No later than 2 years after the date of enactment of 
this Act, the Secretary shall submit a report to Congress containing 
the findings and recommendations of the inventory, assessment, and 
study under this section.
  (c) Definition.--In this section the term ``shallow and deep seabed 
of the United States''--
          (1) means areas of the seabed that are contiguous to and 
        within 200 miles of the territorial sea of the United States 
        and the resources of which are subject to its jurisdiction or 
        control; and
          (2) includes such areas that are contiguous to and within 200 
        miles of the territorial sea around any inhabited and 
        uninhabited territory or possession of the United States 
        including American Samoa, the Commonwealth of the Northern 
        Mariana Islands, Guam, Puerto Rico, the Virgin Islands, Midway 
        Islands, the Federated States of Micronesia, Palau, Marshall 
        Islands, Wake Island, Johnston Atoll, Baker, Howland, and 
        Jarvis Islands, Kingman Reef, Navassa Island, Serranilla Bank, 
        Bajo Nuevo Bank, and Palmyra Atoll.
  (d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this Act $500,000 for each 
of fiscal years 2012 and 2013.

  Amend the title so as to read:

    A bill to direct the Secretary of the Interior to conduct a 
technological capability assessment, inventory, and economic 
feasibility study regarding the recovery of minerals, other 
than oil and natural gas, from the shallow and deep seabed of 
the United States.

                          PURPOSE OF THE BILL

    The purpose of H.R. 2803, as ordered reported, is to direct 
the Secretary of the Interior to conduct a technological 
capability assessment, inventory, and economic feasibility 
study regarding the recovery of minerals, other than oil and 
natural gas, from the shallow and deep seabed of the United 
States.

                  BACKGROUND AND NEED FOR LEGISLATION

    Manganese or polymetalic nodules, containing manganese, 
nickel, copper, cobalt, and other mineral commodities, were 
first discovered in the Kara Sea in the Siberian Arctic in 
1868. During the 1870s, scientific expeditions of the HMS 
Challenger found manganese nodules throughout the world's 
oceans. The highest concentrations are found on the abysmal 
plains of the deep ocean between 13,000 and 20,000 feet below 
sea level. Three areas are thought to contain nodules with 
economically recoverable concentrations of metals: the North 
Central Pacific Ocean, the Peru Basin, and the North Central 
Indian Ocean.
    During the 1960s and 1970s, numerous private sector and 
government led consortiums conducted extensive research to try 
and identify and harvest these resources. At the time, metal 
prices and technology were not sufficient to warrant further 
development.
    In addition to manganese nodules, massive sulfide deposits 
form around hydrothermal vents such as black smokers in certain 
tectonically active areas on the sea floor. These deposits may 
contain economic concentrations of copper, gold, silver, zinc, 
and rare earth minerals.
    Today, with access to new technology developed to support 
deepwater and ultra deepwater oil and gas development, 
increased demand for mineral resources, and the subsequent 
increase in commodity prices, there has been a renewed interest 
in deep seabed mining, and in particular, for the massive 
sulfide deposits described above.
    H.R. 2803 directs the Bureau of Ocean Energy Management, 
Regulation and Enforcement to assess the non-fuel mineral 
resources within the United States' Exclusive Economic Zone, 
including the territories and affiliated states; the 
technological capability of the U.S. to explore for and harvest 
these mineral resources; and the economic feasibility of deep 
seabed mining. The agency is to report its findings back to 
Congress within two years.
    If these mineral resources occur within the U.S. Exclusive 
Economic Zone and can be harvested economically, they would 
provide opportunities for private sector job growth and a 
revenue stream for government entities.

                            COMMITTEE ACTION

    H.R. 2803 was introduced on August 5, 2011, by Delegate Eni 
Faleomavaega (D-AS). The bill was referred to the Committee on 
Natural Resources, and within the Committee to the Subcommittee 
on Energy and Mineral Resources. On September 13, 2011, the 
Subcommittee on Energy and Mineral Resources held a hearing on 
the bill. On October 5, 2011, the Full Natural Resources 
Committee met to consider the bill. The Subcommittee on Energy 
and Mineral Resources was discharged by unanimous consent. 
Congressman Doug Lamborn (R-CO) offered an amendment to the 
bill; the amendment was adopted by unanimous consent. The bill 
was then ordered favorably reported to the House of 
Representatives by unanimous consent.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Natural Resources' oversight findings and 
recommendations are reflected in the body of this report.

                    COMPLIANCE WITH HOUSE RULE XIII

    1. Cost of Legislation. Clause 3(d)(1) of rule XIII of the 
Rules of the House of Representatives requires an estimate and 
a comparison by the Committee of the costs which would be 
incurred in carrying out this bill. However, clause 3(d)(2)(B) 
of that rule provides that this requirement does not apply when 
the Committee has included in its report a timely submitted 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974. Under clause 3(c)(3) of rule 
XIII of the Rules of the House of Representatives and section 
403 of the Congressional Budget Act of 1974, the Committee has 
received the following cost estimate for this bill from the 
Director of the Congressional Budget Office:

H.R. 2803--A bill to direct the Secretary of the Interior to conduct a 
        technological capability assessment, inventory, and economic 
        feasibility study regarding the recovery of minerals, other 
        than oil and natural gas, from the shallow and deep seabed of 
        the United States

    H.R. 2803 would authorize the appropriation of $500,000 a 
year over the 2012-2013 period for the Department of the 
Interior to study the recovery of offshore minerals other than 
oil and gas. The bill would require the Bureau of Ocean Energy 
Management, Regulation, and Enforcement and the United States 
Geological Survey to conduct an inventory of offshore minerals 
and to assess the technical and economic feasibility of 
offshore mineral development.
    Assuming appropriation of the authorized amounts, CBO 
estimates that implementing the legislation would cost $1 
million over the 2012-2013 period. Enacting H.R. 2803 would not 
affect direct spending or revenues; therefore, pay-as-you-go 
procedures do not apply.
    H.R. 2803 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    The CBO staff contact for this estimate is Jeff LaFave. The 
estimate was approved by Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.
    2. Section 308(a) of Congressional Budget Act. As required 
by clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives and section 308(a) of the Congressional Budget 
Act of 1974, this bill does not contain any new spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures. Assuming appropriation of the 
authorized amounts, CBO estimates that implementing the 
legislation would cost $1 million over the 2012-2013 period.
    3. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill, as ordered reported, is to direct the 
Secretary of the Interior to conduct a technological capability 
assessment, inventory, and economic feasibility study regarding 
the recovery of minerals, other than oil and natural gas, from 
the shallow and deep seabed of the United States.

                           EARMARK STATEMENT

    This bill does not contain any Congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined 
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of 
the House of Representatives.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    This bill contains no unfunded mandates.

                PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

    This bill is not intended to preempt any State, local or 
tribal law.

                        CHANGES IN EXISTING LAW

    If enacted, this bill would make no changes in existing 
law.

                                  
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