I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘American Renaissance in Manufacturing Act’’. 

4 (b) TABLE OF CONTENTS.—The table of contents for 

5 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. 


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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. 


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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. 


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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. 

1 TITLE I—CREATING A MORE 

2 COMPETITIVE TAX CODE 

3 SEC. 1001. DROPPING CORPORATE TAX RATE. 

4 (a) IN GENERAL.—Subsection (b) of section 11 of the 

5 Internal Revenue Code of 1986 is amended to read as fol6 lows: 

7 ‘‘(b) AMOUNT OF TAX.—The amount of the tax im8 posed by subsection (a) shall be 25 percent of taxable in9 come.’’. 

10 (b) CONFORMING AMENDMENTS.— 

11 (1) Paragraphs (2)(B) and (6)(A)(ii) of section 

12 860E(e) of the Internal Revenue Code of 1986 are 

13 each amended by striking ‘‘highest rate of tax speci14 fied in section 11(b)(1)’’ and inserting ‘‘rate of tax 

15 specified in section 11(b)’’. 


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1 (2)(A) Part I of subchapter P of chapter 1 of 

2 such Code is amended by striking section 1201 (and 

3 by striking the item relating to such section in the 

4 table of sections for such part). 

5 (B) Section 12 of such Code is amended by 

6 striking paragraphs (4) and (6), and by redesig7 nating paragraph (5) as paragraph (4). 

8 (C) Section 527(b) of such Code is amended— 

9 (i) by striking paragraph (2), 

10 (ii) by striking all that precedes ‘‘is hereby 

11 imposed’’ and inserting: 

12 ‘‘(b) TAX IMPOSED.—A tax’’; and 

13 (iii) by striking ‘‘highest’’. 

14 (D) Sections 594(a) of such Code is amended 

15 by striking ‘‘taxes imposed by section 11 or 

16 1201(a)’’ and inserting ‘‘tax imposed by section 11’’. 

17 (E) Section 691(c)(4) of such Code is amended 

18 by striking ‘‘1201,’’. 

19 (F) Section 801(a) of such Code is amended— 

20 (i) by striking paragraph (2), and 

21 (ii) by striking all that precedes ‘‘is hereby 

22 imposed’’ and inserting: 

23 ‘‘(a) TAX IMPOSED.—A tax’’. 

24 (G) Section 831(d) of such Code is amended by 

25 striking paragraph (1) and by redesignating paraVerDate Mar 15 2010 03:23 Aug 16, 2014 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H5360.IH H5360

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1 graphs (2) and (3) as paragraphs (1) and (2), re2 spectively. 

3 (H) Sections 832(c)(5) and 834(b)(1)(D) of 

4 such Code are each amended by striking ‘‘sec. 1201 

5 and following,’’. 

6 (I) Section 852(b)(3)(A) of such Code is 

7 amended by striking ‘‘section 1201(a)’’ and inserting 

8 ‘‘section 11(b)’’. 

9 (J) Section 857(b)(3) of such Code is amend10 ed— 

11 (i) by striking subparagraph (A) and re12 designating subparagraphs (B) through (F) as 

13 subparagraphs (A) through (E), respectively, 

14 (ii) in subparagraph (C), as so redesig15 nated— 

16 (I) by striking ‘‘subparagraph (A)(ii)’’ 

17 in clause (i) thereof and inserting ‘‘para18 graph (1)’’, and 

19 (II) by striking ‘‘the tax imposed by 

20 subparagraph (A)(ii)’’ in clauses (ii) and 

21 (iv) thereof and inserting ‘‘the tax imposed 

22 by paragraph (1) on undistributed capital 

23 gain’’, 


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1 (iii) in subparagraph (E), as so redesig2 nated, by striking ‘‘subparagraph (B) or (D)’’ 

3 and inserting ‘‘subparagraph (A) or (C)’’, and 

4 (iv) by adding at the end the following new 

5 subparagraph: 

6 ‘‘(F) UNDISTRIBUTED CAPITAL GAIN.— 

7 For purposes of this paragraph, the term ‘un8 distributed capital gain’ means the excess of the 

9 net capital gain over the deduction for divi10 dends paid (as defined in section 561) deter11 mined with reference to capital gain dividends 

12 only.’’. 

13 (K) Section 882(a)(1) of such Code is amended 

14 by striking ‘‘, or 1201(a)’’. 

15 (L) Section 1374(b) of such Code is amended 

16 by striking paragraph (4). 

17 (M) Section 1381(b) of such Code is amended 

18 by striking ‘‘taxes imposed by section 11 or 1201’’ 

19 and inserting ‘‘tax imposed by section 11’’. 

20 (N) Sections 6425(c)(1)(A)(i) and 

21 6655(g)(1)(A)(i) of such Code are each amended by 

22 striking ‘‘or 1201(a),’’. 

23 (3)(A) Section 1445(e)(1) of such Code is 

24 amended by striking ‘‘35 percent’’ and inserting ‘‘25 

25 percent’’. 


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1 (B) Section 1445(e)(2) of such Code is amend2 ed by striking ‘‘35 percent’’ and inserting ‘‘25 per3 cent’’. 

4 (C) Section 1445(e)(6) of such Code is amend5 ed by striking ‘‘35 percent’’ and inserting ‘‘25 per6 cent’’. 

7 (D) Section 1446(b)(2)(B) of such Code is 

8 amended by striking ‘‘section 11(b)(1)’’ and insert9 ing ‘‘section 11(b)’’. 

10 (4) Section 852(b)(1) of such Code is amended 

11 by striking the last sentence. 

12 (5)(A) Part I of subchapter B of chapter 5 of 

13 such Code is amended by striking section 1551 (and 

14 by striking the item relating to such section in the 

15 table of sections for such part). 

16 (B) Section 535(c)(5) of such Code is amended 

17 to read as follows: 

18 ‘‘(5) CROSS REFERENCE.—For limitation on 

19 credit provided in paragraph (2) or (3) in the case 

20 of certain controlled corporations, see section 

21 1561.’’. 

22 (6) Section 7874(e)(1)(B) of such Code is 

23 amended by striking ‘‘section 11(b)(1)’’ and insert24 ing ‘‘section 11(b)’’. 

25 (c) EFFECTIVE DATE.— 


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1 (1) IN GENERAL.—Except as otherwise pro2 vided in this subsection, the amendments made by 

3 this section shall apply to taxable years beginning 

4 after December 31, 2014. 

5 (2) WITHHOLDING.—The amendments made by 

6 subsection (b)(3) shall apply to distributions made 

7 after December 31, 2014. 

8 (3) CERTAIN TRANSFERS.—The amendments 

9 made by subsection (b)(5) shall apply to transfers 

10 made after December 31, 2014. 

11 SEC. 1002. REDUCED RECOGNITION PERIOD FOR BUILT-IN 

12 GAINS OF S CORPORATIONS MADE PERMA13 NENT. 

14 (a) IN GENERAL.—Paragraph (7) of section 1374(d) 

15 of the Internal Revenue Code of 1986 is amended to read 

16 as follows: 

17 ‘‘(7) RECOGNITION PERIOD.— 

18 ‘‘(A) IN GENERAL.—The term ‘recognition 

19 period’ means the 5-year period beginning with 

20 the 1st day of the 1st taxable year for which 

21 the corporation was an S corporation. For pur22 poses of applying this section to any amount in23 cludible in income by reason of distributions to 

24 shareholders pursuant to section 593(e), the 


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1 preceding sentence shall be applied without re2 gard to the phrase ‘5-year’. 

3 ‘‘(B) INSTALLMENT SALES.—If an S cor4 poration sells an asset and reports the income 

5 from the sale using the installment method 

6 under section 453, the treatment of all pay7 ments received shall be governed by the provi8 sions of this paragraph applicable to the taxable 

9 year in which such sale was made.’’. 

10 (b) EFFECTIVE DATE.—The amendment made by 

11 this section shall apply to taxable years beginning after 

12 December 31, 2013. 

13 SEC. 1003. PERMANENT RULE REGARDING BASIS ADJUST14 MENT TO STOCK OF S CORPORATIONS MAK15 ING CHARITABLE CONTRIBUTIONS OF PROP16 ERTY. 

17 (a) IN GENERAL.—Section 1367(a)(2) of the Internal 

18 Revenue Code of 1986 is amended by striking the last sen19 tence. 

20 (b) EFFECTIVE DATE.—The amendment made by 

21 this section shall apply to contributions made in taxable 

22 years beginning after December 31, 2013. 

23 SEC. 1004. EXPENSING CERTAIN DEPRECIABLE BUSINESS 

24 ASSETS FOR SMALL BUSINESS. 

25 (a) IN GENERAL.— 


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1 (1) DOLLAR LIMITATION.—Paragraph (1) of 

2 section 179(b) of the Internal Revenue Code of 1986 

3 is amended by striking ‘‘shall not exceed—’’ and all 

4 that follows and inserting ‘‘shall not exceed 

5 $500,000.’’. 

6 (2) REDUCTION IN LIMITATION.—Paragraph 

7 (2) of section 179(b) of such Code is amended by 

8 striking ‘‘exceeds—’’ and all that follows and insert9 ing ‘‘exceeds $2,000,000.’’. 

10 (b) COMPUTER SOFTWARE.—Clause (ii) of section 

11 179(d)(1)(A) of such Code is amended by striking ‘‘, to 

12 which section 167 applies, and which is placed in service 

13 in a taxable year beginning after 2002 and before 2014’’ 

14 and inserting ‘‘and to which section 167 applies’’. 

15 (c) ELECTION.—Paragraph (2) of section 179(c) of 

16 such Code is amended— 

17 (1) by striking ‘‘may not be revoked’’ and all 

18 that follows through ‘‘and before 2014’’, and 

19 (2) by striking ‘‘IRREVOCABLE’’ in the heading 

20 thereof. 

21 (d) AIR CONDITIONING AND HEATING UNITS.— 

22 Paragraph (1) of section 179(d) of such Code is amended 

23 by striking ‘‘and shall not include air conditioning or heat24 ing units’’. 


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1 (e) QUALIFIED REAL PROPERTY.—Subsection (f) of 

2 section 179 of such Code is amended— 

3 (1) by striking ‘‘beginning in 2010, 2011, 2012, 

4 or 2013’’ in paragraph (1), and 

5 (2) by striking paragraphs (3) and (4). 

6 (f) INFLATION ADJUSTMENT.—Subsection (b) of sec7 tion 179 of such Code is amended by adding at the end 

8 the following new paragraph: 

9 ‘‘(6) INFLATION ADJUSTMENT.— 

10 ‘‘(A) IN GENERAL.—In the case of any 

11 taxable year beginning after 2014, the dollar 

12 amounts in paragraphs (1) and (2) shall each 

13 be increased by an amount equal to— 

14 ‘‘(i) such dollar amount, multiplied by 

15 ‘‘(ii) the cost-of-living adjustment de16 termined under section 1(c)(2)(A) for such 

17 calendar year, determined by substituting 

18 ‘calendar year 2013’ for ‘calendar year 

19 2012’ in clause (ii) thereof. 

20 ‘‘(B) ROUNDING.—The amount of any in21 crease under subparagraph (A) shall be round22 ed to the nearest multiple of $10,000.’’. 

23 (g) EFFECTIVE DATE.—The amendments made by 

24 this section shall apply to taxable years beginning after 

25 December 31, 2013. 


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1 SEC. 1005. RESEARCH CREDIT SIMPLIFIED AND MADE PER2 MANENT. 

3 (a) IN GENERAL.—Subsection (a) of section 41 of the 

4 Internal Revenue Code of 1986 is amended to read as fol5 lows: 

6 ‘‘(a) IN GENERAL.—For purposes of section 38, the 

7 research credit determined under this section for the tax8 able year shall be an amount equal to the sum of— 

9 ‘‘(1) 20 percent of so much of the qualified re10 search expenses for the taxable year as exceeds 50 

11 percent of the average qualified research expenses 

12 for the 3 taxable years preceding the taxable year 

13 for which the credit is being determined, 

14 ‘‘(2) 20 percent of so much of the basic re15 search payments for the taxable year as exceeds 50 

16 percent of the average basic research payments for 

17 the 3 taxable years preceding the taxable year for 

18 which the credit is being determined, plus 

19 ‘‘(3) 20 percent of the amounts paid or in20 curred by the taxpayer in carrying on any trade or 

21 business of the taxpayer during the taxable year (in22 cluding as contributions) to an energy research con23 sortium for energy research.’’. 

24 (b) REPEAL OF TERMINATION.—Section 41 of such 

25 Code is amended by striking subsection (h). 

26 (c) CONFORMING AMENDMENTS.— 


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1 (1) Subsection (c) of section 41 of such Code 

2 is amended to read as follows: 

3 ‘‘(c) DETERMINATION OF AVERAGE RESEARCH EX4 PENSES FOR PRIOR YEARS.— 

5 ‘‘(1) SPECIAL RULE IN CASE OF NO QUALIFIED

6 RESEARCH EXPENDITURES IN ANY OF 3 PRECEDING

7 TAXABLE YEARS.—In any case in which the taxpayer 

8 has no qualified research expenses in any one of the 

9 3 taxable years preceding the taxable year for which 

10 the credit is being determined, the amount deter11 mined under subsection (a)(1) for such taxable year 

12 shall be equal to 10 percent of the qualified research 

13 expenses for the taxable year. 

14 ‘‘(2) CONSISTENT TREATMENT OF EX15 PENSES.— 

16 ‘‘(A) IN GENERAL.—Notwithstanding 

17 whether the period for filing a claim for credit 

18 or refund has expired for any taxable year 

19 taken into account in determining the average 

20 qualified research expenses, or average basic re21 search payments, taken into account under sub22 section (a), the qualified research expenses and 

23 basic research payments taken into account in 

24 determining such averages shall be determined 

25 on a basis consistent with the determination of 


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1 qualified research expenses and basic research 

2 payments, respectively, for the credit year. 

3 ‘‘(B) PREVENTION OF DISTORTIONS.—The 

4 Secretary may prescribe regulations to prevent 

5 distortions in calculating a taxpayer’s qualified 

6 research expenses or basic research payments 

7 caused by a change in accounting methods used 

8 by such taxpayer between the current year and 

9 a year taken into account in determining the 

10 average qualified research expenses or average 

11 basic research payments taken into account 

12 under subsection (a).’’. 

13 (2) Section 41(e) of such Code is amended— 

14 (A) by striking all that precedes paragraph 

15 (6) and inserting the following: 

16 ‘‘(e) BASIC RESEARCH PAYMENTS.—For purposes of 

17 this section— 

18 ‘‘(1) IN GENERAL.—The term ‘basic research 

19 payment’ means, with respect to any taxable year, 

20 any amount paid in cash during such taxable year 

21 by a corporation to any qualified organization for 

22 basic research but only if— 

23 ‘‘(A) such payment is pursuant to a writ24 ten agreement between such corporation and 

25 such qualified organization, and 


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1 ‘‘(B) such basic research is to be per2 formed by such qualified organization. 

3 ‘‘(2) EXCEPTION TO REQUIREMENT THAT RE4 SEARCH BE PERFORMED BY THE ORGANIZATION.— 

5 In the case of a qualified organization described in 

6 subparagraph (C) or (D) of paragraph (3), subpara7 graph (B) of paragraph (1) shall not apply.’’, 

8 (B) by redesignating paragraphs (6) and 

9 (7) as paragraphs (3) and (4), respectively, and 

10 (C) in paragraph (4) as so redesignated, 

11 by striking subparagraphs (B) and (C) and by 

12 redesignating subparagraphs (D) and (E) as 

13 subparagraphs (B) and (C), respectively. 

14 (3) Section 41(f)(3) of such Code is amended— 

15 (A)(i) by striking ‘‘, and the gross re16 ceipts’’ in subparagraph (A)(i) and all that fol17 lows through ‘‘determined under clause (iii)’’, 

18 (ii) by striking clause (iii) of subparagraph 

19 (A) and redesignating clauses (iv), (v), and (vi), 

20 thereof, as clauses (iii), (iv), and (v), respec21 tively, 

22 (iii) by striking ‘‘and (iv)’’ each place it 

23 appears in subparagraph (A)(iv) (as so redesig24 nated) and inserting ‘‘and (iii)’’, 


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1 (iv) by striking subclause (IV) of subpara2 graph (A)(iv) (as so redesignated), by striking 

3 ‘‘, and’’ at the end of subparagraph (A)(iv)(III) 

4 (as so redesignated) and inserting a period, and 

5 by adding ‘‘and’’ at the end of subparagraph 

6 (A)(iv)(II) (as so redesignated), 

7 (v) by striking ‘‘(A)(vi)’’ in subparagraph 

8 (B) and inserting ‘‘(A)(v)’’, and 

9 (vi) by striking ‘‘(A)(iv)(II)’’ in subpara10 graph (B)(i)(II) and inserting ‘‘(A)(iii)(II)’’, 

11 (B) by striking ‘‘, and the gross receipts of 

12 the predecessor,’’ in subparagraph (A)(iv)(II) 

13 (as so redesignated), 

14 (C) by striking ‘‘, and the gross receipts 

15 of,’’ in subparagraph (B), 

16 (D) by striking ‘‘, or gross receipts of,’’ in 

17 subparagraph (B)(i)(I), and 

18 (E) by striking subparagraph (C). 

19 (d) EFFECTIVE DATE.— 

20 (1) IN GENERAL.—Except as provided in para21 graph (2), the amendments made by this section 

22 shall apply to taxable years beginning after Decem23 ber 31, 2013. 


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1 (2) SUBSECTION (b).—The amendment made 

2 by subsection (b) shall apply to amounts paid or in3 curred after December 31, 2013. 

4 SEC. 1006. BONUS DEPRECIATION MODIFIED AND MADE 

5 PERMANENT. 

6 (a) MADE PERMANENT; INCLUSION OF QUALIFIED

7 RETAIL IMPROVEMENT PROPERTY.—Section 168(k)(2) of 

8 the Internal Revenue Code of 1986 is amended to read 

9 as follows: 

10 ‘‘(2) QUALIFIED PROPERTY.—For purposes of 

11 this subsection— 

12 ‘‘(A) IN GENERAL.—The term ‘qualified 

13 property’ means property— 

14 ‘‘(i)(I) to which this section applies 

15 which has a recovery period of 20 years or 

16 less, 

17 ‘‘(II) which is computer software (as 

18 defined in section 167(f)(1)(B)) for which 

19 a deduction is allowable under section 

20 167(a) without regard to this subsection, 

21 ‘‘(III) which is water utility property, 

22 ‘‘(IV) which is qualified leasehold im23 provement property, or 

24 ‘‘(V) which is qualified retail improve25 ment property, and 


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1 ‘‘(ii) the original use of which com2 mences with the taxpayer. 

3 ‘‘(B) EXCEPTION FOR ALTERNATIVE DE4 PRECIATION PROPERTY.—The term ‘qualified 

5 property’ shall not include any property to 

6 which the alternative depreciation system under 

7 subsection (g) applies, determined— 

8 ‘‘(i) without regard to paragraph (7) 

9 of subsection (g) (relating to election to 

10 have system apply), and 

11 ‘‘(ii) after application of section 

12 280F(b) (relating to listed property with 

13 limited business use). 

14 ‘‘(C) SPECIAL RULES.— 

15 ‘‘(i) SALE-LEASEBACKS.—For pur16 poses of clause (ii) and subparagraph 

17 (A)(ii), if property is— 

18 ‘‘(I) originally placed in service 

19 by a person, and 

20 ‘‘(II) sold and leased back by 

21 such person within 3 months after the 

22 date such property was originally 

23 placed in service, 

24 such property shall be treated as originally 

25 placed in service not earlier than the date 


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1 on which such property is used under the 

2 leaseback referred to in subclause (II). 

3 ‘‘(ii) SYNDICATION.—For purposes of 

4 subparagraph (A)(ii), if— 

5 ‘‘(I) property is originally placed 

6 in service by the lessor of such prop7 erty, 

8 ‘‘(II) such property is sold by 

9 such lessor or any subsequent pur10 chaser within 3 months after the date 

11 such property was originally placed in 

12 service (or, in the case of multiple 

13 units of property subject to the same 

14 lease, within 3 months after the date 

15 the final unit is placed in service, so 

16 long as the period between the time 

17 the first unit is placed in service and 

18 the time the last unit is placed in 

19 service does not exceed 12 months), 

20 and 

21 ‘‘(III) the user of such property 

22 after the last sale during such 3- 

23 month period remains the same as 

24 when such property was originally 

25 placed in service, 


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1 such property shall be treated as originally 

2 placed in service not earlier than the date 

3 of such last sale. 

4 ‘‘(D) COORDINATION WITH SECTION

5 280F.—For purposes of section 280F— 

6 ‘‘(i) AUTOMOBILES.—In the case of a 

7 passenger automobile (as defined in section 

8 280F(d)(5)) which is qualified property, 

9 the Secretary shall increase the limitation 

10 under section 280F(a)(1)(A)(i) by $8,000. 

11 ‘‘(ii) LISTED PROPERTY.—The deduc12 tion allowable under paragraph (1) shall be 

13 taken into account in computing any re14 capture amount under section 280F(b)(2). 

15 ‘‘(iii) INFLATION ADJUSTMENT.—In 

16 the case of any taxable year beginning in 

17 a calendar year after 2014, the $8,000 

18 amount in clause (i) shall be increased by 

19 an amount equal to— 

20 ‘‘(I) such dollar amount, multi21 plied by 

22 ‘‘(II) the automobile price infla23 tion adjustment determined under sec24 tion 280F(d)(7)(B)(i) for the calendar 

25 year in which such taxable year begins 


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1 by substituting ‘2013’ for ‘1987’ in 

2 subclause (II) thereof. 

3 If any increase under the preceding sen4 tence is not a multiple of $100, such in5 crease shall be rounded to the nearest mul6 tiple of $100. 

7 ‘‘(E) DEDUCTION ALLOWED IN COMPUTING

8 MINIMUM TAX.—For purposes of determining 

9 alternative minimum taxable income under sec10 tion 55, the deduction under section 167 for 

11 qualified property shall be determined without 

12 regard to any adjustment under section 56.’’. 

13 (b) EXPANSION OF ELECTION TO ACCELERATE AMT 

14 CREDITS IN LIEU OF BONUS DEPRECIATION.—Section 

15 168(k)(4) of such Code is amended to read as follows: 

16 ‘‘(4) ELECTION TO ACCELERATE AMT CREDITS

17 IN LIEU OF BONUS DEPRECIATION.— 

18 ‘‘(A) IN GENERAL.—If a corporation elects 

19 to have this paragraph apply for any taxable 

20 year— 

21 ‘‘(i) paragraphs (1)(A), (2)(D)(i), and 

22 (5)(A)(i) shall not apply for such taxable 

23 year, 

24 ‘‘(ii) the applicable depreciation meth25 od used under this section with respect to 


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1 any qualified property shall be the straight 

2 line method, and 

3 ‘‘(iii) the limitation imposed by section 

4 53(c) for such taxable year shall be in5 creased by the bonus depreciation amount 

6 which is determined for such taxable year 

7 under subparagraph (B). 

8 ‘‘(B) BONUS DEPRECIATION AMOUNT.— 

9 For purposes of this paragraph— 

10 ‘‘(i) IN GENERAL.—The bonus depre11 ciation amount for any taxable year is an 

12 amount equal to 20 percent of the excess 

13 (if any) of— 

14 ‘‘(I) the aggregate amount of de15 preciation which would be allowed 

16 under this section for qualified prop17 erty placed in service by the taxpayer 

18 during such taxable year if paragraph 

19 (1) applied to all such property, over 

20 ‘‘(II) the aggregate amount of 

21 depreciation which would be allowed 

22 under this section for qualified prop23 erty placed in service by the taxpayer 

24 during such taxable year if paragraph 


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1 (1) did not apply to any such prop2 erty. 

3 The aggregate amounts determined under 

4 subclauses (I) and (II) shall be determined 

5 without regard to any election made under 

6 subsection (b)(2)(D), (b)(3)(D), or (g)(7) 

7 and without regard to subparagraph 

8 (A)(ii). 

9 ‘‘(ii) LIMITATION.—The bonus depre10 ciation amount for any taxable year shall 

11 not exceed the lesser of— 

12 ‘‘(I) 50 percent of the minimum 

13 tax credit under section 53(b) for the 

14 first taxable year ending after Decem15 ber 31, 2013, or 

16 ‘‘(II) the minimum tax credit 

17 under section 53(b) for such taxable 

18 year determined by taking into ac19 count only the adjusted net minimum 

20 tax for taxable years ending before 

21 January 1, 2014 (determined by 

22 treating credits as allowed on a first23 in, first-out basis). 

24 ‘‘(iii) AGGREGATION RULE.—All cor25 porations which are treated as a single emVerDate Mar 15 2010 03:23 Aug 16, 2014 Jkt 039200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\H5360.IH H5360

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1 ployer under section 52(a) shall be treat2 ed— 

3 ‘‘(I) as 1 taxpayer for purposes 

4 of this paragraph, and 

5 ‘‘(II) as having elected the appli6 cation of this paragraph if any such 

7 corporation so elects. 

8 ‘‘(C) CREDIT REFUNDABLE.—For pur9 poses of section 6401(b), the aggregate increase 

10 in the credits allowable under part IV of sub11 chapter A for any taxable year resulting from 

12 the application of this paragraph shall be treat13 ed as allowed under subpart C of such part 

14 (and not any other subpart). 

15 ‘‘(D) OTHER RULES.— 

16 ‘‘(i) ELECTION.—Any election under 

17 this paragraph may be revoked only with 

18 the consent of the Secretary. 

19 ‘‘(ii) PARTNERSHIPS WITH ELECTING

20 PARTNERS.—In the case of a corporation 

21 which is a partner in a partnership and 

22 which makes an election under subpara23 graph (A) for the taxable year, for pur24 poses of determining such corporation’s 


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1 distributive share of partnership items 

2 under section 702 for such taxable year— 

3 ‘‘(I) paragraphs (1)(A), 

4 (2)(D)(i), and (5)(A)(i) shall not 

5 apply, and 

6 ‘‘(II) the applicable depreciation 

7 method used under this section with 

8 respect to any qualified property shall 

9 be the straight line method. 

10 ‘‘(iii) CERTAIN PARTNERSHIPS.—In 

11 the case of a partnership in which more 

12 than 50 percent of the capital and profits 

13 interests are owned (directly or indirectly) 

14 at all times during the taxable year by 1 

15 corporation (or by corporations treated as 

16 1 taxpayer under subparagraph (B)(iii)), 

17 each partner shall compute its bonus de18 preciation amount under clause (i) of sub19 paragraph (B) by taking into account its 

20 distributive share of the amounts deter21 mined by the partnership under subclauses 

22 (I) and (II) of such clause for the taxable 

23 year of the partnership ending with or 

24 within the taxable year of the partner.’’. 


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1 (c) SPECIAL RULES FOR TREES AND VINES BEARING

2 FRUITS AND NUTS.—Section 168(k) of such Code is 

3 amended— 

4 (1) by striking paragraph (5), and 

5 (2) by inserting after paragraph (4) the fol6 lowing new paragraph: 

7 ‘‘(5) SPECIAL RULES FOR TREES AND VINES

8 BEARING FRUITS AND NUTS.— 

9 ‘‘(A) IN GENERAL.—In the case of any 

10 tree or vine bearing fruits or nuts which is 

11 planted, or is grafted to a plant that has al12 ready been planted, by the taxpayer in the ordi13 nary course of the taxpayer’s farming business 

14 (as defined in section 263A(e)(4))— 

15 ‘‘(i) a depreciation deduction equal to 

16 50 percent of the adjusted basis of such 

17 tree or vine shall be allowed under section 

18 167(a) for the taxable year in which such 

19 tree or vine is so planted or grafted, and 

20 ‘‘(ii) the adjusted basis of such tree or 

21 vine shall be reduced by the amount of 

22 such deduction. 

23 ‘‘(B) ELECTION OUT.—If a taxpayer 

24 makes an election under this subparagraph for 

25 any taxable year, this paragraph shall not apply 


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1 to any tree or vine planted or grafted during 

2 such taxable year. An election under this sub3 paragraph may be revoked only with the con4 sent of the Secretary. 

5 ‘‘(C) ADDITIONAL DEPRECIATION MAY BE

6 CLAIMED ONLY ONCE.—If this paragraph ap7 plies to any tree or vine, such tree or vine shall 

8 not be treated as qualified property in the tax9 able year in which placed in service. 

10 ‘‘(D) COORDINATION WITH ELECTION TO

11 ACCELERATE AMT CREDITS.—If a corporation 

12 makes an election under paragraph (4) for any 

13 taxable year, the amount under paragraph 

14 (4)(B)(i)(I) for such taxable year shall be in15 creased by the amount determined under sub16 paragraph (A)(i) for such taxable year. 

17 ‘‘(E) DEDUCTION ALLOWED IN COMPUTING

18 MINIMUM TAX.—Rules similar to the rules of 

19 paragraph (2)(E) shall apply for purposes of 

20 this paragraph.’’. 

21 (d) CONFORMING AMENDMENTS.— 

22 (1) Section 168(e)(8) of such Code is amended 

23 by striking subparagraph (D). 

24 (2) Section 168(k) of such Code is amended by 

25 adding at the end the following new paragraph: 


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1 ‘‘(6) ELECTION OUT.—If a taxpayer makes an 

2 election under this paragraph with respect to any 

3 class of property for any taxable year, this sub4 section shall not apply to all property in such class 

5 placed in service (or, in the case of paragraph (5), 

6 planted or grafted) during such taxable year. An 

7 election under this paragraph may be revoked only 

8 with the consent of the Secretary.’’. 

9 (3) Section 168(l)(5) of such Code is amended 

10 by striking ‘‘section 168(k)(2)(G)’’ and inserting 

11 ‘‘section 168(k)(2)(E)’’. 

12 (4) Section 263A(c) of such Code is amended 

13 by adding at the end the following new paragraph: 

14 ‘‘(7) COORDINATION WITH SECTION

15 168(k)(5).—This section shall not apply to any 

16 amount allowable as a deduction by reason of section 

17 168(k)(5) (relating to special rules for trees and 

18 vines bearing fruits and nuts).’’. 

19 (5) Section 460(c)(6)(B) of such Code is 

20 amended by striking ‘‘which—’’ and all that follows 

21 and inserting ‘‘which has a recovery period of 7 

22 years or less.’’. 

23 (6) Section 168(k) of such Code is amended by 

24 striking ‘‘ACQUIRED AFTER DECEMBER 31, 2007, 


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1 AND BEFORE JANUARY 1, 2014’’ in the heading 

2 thereof. 

3 (e) EFFECTIVE DATES.— 

4 (1) IN GENERAL.—Except as otherwise pro5 vided in this subsection, the amendments made by 

6 this section shall apply to property placed in service 

7 after December 31, 2013. 

8 (2) EXPANSION OF ELECTION TO ACCELERATE

9 AMT CREDITS IN LIEU OF BONUS DEPRECIATION.— 

10 (A) IN GENERAL.—The amendment made 

11 by subsection (b) (other than so much of such 

12 amendment as relates to section 

13 168(k)(4)(D)(iii) of such Code, as added by 

14 such amendment) shall apply to taxable years 

15 ending after December 31, 2013. 

16 (B) TRANSITIONAL RULE.—In the case of 

17 a taxable year beginning before January 1, 

18 2014, and ending after December 31, 2013, the 

19 bonus depreciation amount determined under 

20 section 168(k)(4) of such Code for such year 

21 shall be the sum of— 

22 (i) such amount determined without 

23 regard to the amendments made by this 

24 section and— 


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1 (I) by taking into account only 

2 property placed in service before Jan3 uary 1, 2014, and 

4 (II) by multiplying the limitation 

5 under section 168(k)(4)(C)(ii) of such 

6 Code (determined without regard to 

7 the amendments made by this section) 

8 by a fraction the numerator of which 

9 is the number of days in the taxable 

10 year before January 1, 2014, and the 

11 denominator of which is the number 

12 of days in the taxable year, and 

13 (ii) such amount determined after 

14 taking into account the amendments made 

15 by this section and— 

16 (I) by taking into account only 

17 property placed in service after De18 cember 31, 2013, and 

19 (II) by multiplying the limitation 

20 under section 168(k)(4)(B)(ii) of such 

21 Code (as amended by this section) by 

22 a fraction the numerator of which is 

23 the number of days in the taxable 

24 year after December 31, 2013, and 


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1 the denominator of which is the num2 ber of days in the taxable year. 

3 (3) SPECIAL RULES FOR CERTAIN TREES AND

4 VINES.—The amendment made by subsection (c)(2) 

5 shall apply to trees and vines planted or grafted 

6 after December 31, 2013. 

7 SEC. 1007. BUDGETARY EFFECTS. 

8 (a) STATUTORY PAY-AS-YOU-GO SCORECARDS.—The 

9 budgetary effects of this title shall not be entered on either 

10 PAYGO scorecard maintained pursuant to section 4(d) of 

11 the Statutory Pay-As-You-Go Act of 2010. 

12 (b) SENATE PAYGO SCORECARDS.—The budgetary 

13 effects of this title shall not be entered on any PAYGO 

14 scorecard maintained for purposes of section 201 of S. 

15 Con. Res. 21 (110th Congress). 

16 TITLE II—REINING IN JOB-KILL17 ING WASHINGTON RED TAPE 

18 Subtitle A—Regulations From the 

19 Executive in Need of Scrutiny Act 

20 SEC. 2001. PURPOSE. 

21 The purpose of this title is to increase accountability 

22 for and transparency in the Federal regulatory process. 

23 Section 1 of article I of the United States Constitution 

24 grants all legislative powers to Congress. Over time, Con25 gress has excessively delegated its constitutional charge 


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1 while failing to conduct appropriate oversight and retain 

2 accountability for the content of the laws it passes. By 

3 requiring a vote in Congress, this subtitle will result in 

4 more carefully drafted and detailed legislation, an im5 proved regulatory process, and a legislative branch that 

6 is truly accountable to the American people for the laws 

7 imposed upon them. Moreover, as a tax on carbon emis8 sions increases energy costs on consumers, reduces eco9 nomic growth and is therefore detrimental to individuals, 

10 families and businesses, this subtitle includes in the defini11 tion of a major rule, any rule that implements or provides 

12 for the imposition or collection of a tax on carbon emis13 sions. 

14 SEC. 2002. CONGRESSIONAL REVIEW OF AGENCY RULE15 MAKING. 

16 Chapter 8 of title 5, United States Code, is amended 

17 to read as follows: 

18 ‘‘CHAPTER 8—CONGRESSIONAL REVIEW 

19 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. 


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1 ‘‘§ 801. Congressional review 

2 ‘‘(a)(1)(A) Before a rule may take effect, the Federal 

3 agency promulgating such rule shall submit to each House 

4 of the Congress and to the Comptroller General a report 

5 containing— 

6 ‘‘(i) a copy of the rule; 

7 ‘‘(ii) a concise general statement relating to the 

8 rule; 

9 ‘‘(iii) a classification of the rule as a major or 

10 nonmajor rule, including an explanation of the clas11 sification specifically addressing each criteria for a 

12 major rule contained within clauses (i) through (iii) 

13 of section 804(2)(A) or within section 804(2)(B); 

14 ‘‘(iv) a list of any other related regulatory ac15 tions taken by or that will be taken by the Federal 

16 agency promulgating the rule that are intended to 

17 implement the same statutory provision or regu18 latory objective as well as the individual and aggre19 gate economic effects of those actions; 

20 ‘‘(v) a list of any other related regulatory ac21 tions taken by or that will be taken by any other 

22 Federal agency with authority to implement the 

23 same statutory provision or regulatory objective that 

24 are intended to implement such provision or objec25 tive, of which the Federal agency promulgating the 


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1 rule is aware, as well as the individual and aggre2 gate economic effects of those actions; and 

3 ‘‘(vi) the proposed effective date of the rule. 

4 ‘‘(B) On the date of the submission of the report 

5 under subparagraph (A), the Federal agency promulgating 

6 the rule shall submit to the Comptroller General and make 

7 available to each House of Congress— 

8 ‘‘(i) a complete copy of the cost-benefit analysis 

9 of the rule, if any, including an analysis of any jobs 

10 added or lost, differentiating between public and pri11 vate sector jobs; 

12 ‘‘(ii) the agency’s actions pursuant to sections 

13 603, 604, 605, 607, and 609 of this title; 

14 ‘‘(iii) the agency’s actions pursuant to sections 

15 202, 203, 204, and 205 of the Unfunded Mandates 

16 Reform Act of 1995; and 

17 ‘‘(iv) any other relevant information or require18 ments under any other Act and any relevant Execu19 tive orders. 

20 ‘‘(C) Upon receipt of a report submitted under sub21 paragraph (A), each House shall provide copies of the re22 port to the chairman and ranking member of each stand23 ing committee with jurisdiction under the rules of the 

24 House of Representatives or the Senate to report a bill 


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1 to amend the provision of law under which the rule is 

2 issued. 

3 ‘‘(2)(A) The Comptroller General shall provide a re4 port on each major rule to the committees of jurisdiction 

5 by the end of 15 calendar days after the submission or 

6 publication date. The report of the Comptroller General 

7 shall include an assessment of the agency’s compliance 

8 with procedural steps required by paragraph (1)(B) and 

9 an assessment of whether the major rule imposes any new 

10 limits or mandates on private-sector activity. 

11 ‘‘(B) Federal agencies shall cooperate with the Comp12 troller General by providing information relevant to the 

13 Comptroller General’s report under subparagraph (A). 

14 ‘‘(3) A major rule relating to a report submitted 

15 under paragraph (1) shall take effect upon enactment of 

16 a joint resolution of approval described in section 802 or 

17 as provided for in the rule following enactment of a joint 

18 resolution of approval described in section 802, whichever 

19 is later. 

20 ‘‘(4) A nonmajor rule shall take effect as provided 

21 by section 803 after submission to Congress under para22 graph (1). 

23 ‘‘(5) If a joint resolution of approval relating to a 

24 major rule is not enacted within the period provided in 

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1 ing to the same rule may not be considered under this 

2 chapter in the same Congress by either the House of Rep3 resentatives or the Senate. 

4 ‘‘(b)(1) A major rule shall not take effect unless the 

5 Congress enacts a joint resolution of approval described 

6 under section 802. 

7 ‘‘(2) If a joint resolution described in subsection (a) 

8 is not enacted into law by the end of 70 session days or 

9 legislative days, as applicable, beginning on the date on 

10 which the report referred to in section 801(a)(1)(A) is re11 ceived by Congress (excluding days either House of Con12 gress is adjourned for more than 3 days during a session 

13 of Congress), then the rule described in that resolution 

14 shall be deemed not to be approved and such rule shall 

15 not take effect. 

16 ‘‘(c)(1) Notwithstanding any other provision of this 

17 section (except subject to paragraph (3)), a major rule 

18 may take effect for one 90-calendar-day period if the 

19 President makes a determination under paragraph (2) and 

20 submits written notice of such determination to the Con21 gress. 

22 ‘‘(2) Paragraph (1) applies to a determination made 

23 by the President by Executive order that the major rule 

24 should take effect because such rule is— 


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1 ‘‘(A) necessary because of an imminent threat 

2 to health or safety or other emergency; 

3 ‘‘(B) necessary for the enforcement of criminal 

4 laws; 

5 ‘‘(C) necessary for national security; or 

6 ‘‘(D) issued pursuant to any statute imple7 menting an international trade agreement. 

8 ‘‘(3) An exercise by the President of the authority 

9 under this subsection shall have no effect on the proce10 dures under section 802. 

11 ‘‘(d)(1) In addition to the opportunity for review oth12 erwise provided under this chapter, in the case of any rule 

13 for which a report was submitted in accordance with sub14 section (a)(1)(A) during the period beginning on the date 

15 occurring— 

16 ‘‘(A) in the case of the Senate, 60 session days, 

17 or 

18 ‘‘(B) in the case of the House of Representa19 tives, 60 legislative days, 

20 before the date the Congress is scheduled to adjourn a 

21 session of Congress through the date on which the same 

22 or succeeding Congress first convenes its next session, sec23 tions 802 and 803 shall apply to such rule in the suc24 ceeding session of Congress. 


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1 ‘‘(2)(A) In applying sections 802 and 803 for pur2 poses of such additional review, a rule described under 

3 paragraph (1) shall be treated as though— 

4 ‘‘(i) such rule were published in the Federal 

5 Register on— 

6 ‘‘(I) in the case of the Senate, the 15th 

7 session day, or 

8 ‘‘(II) in the case of the House of Rep9 resentatives, the 15th legislative day, 

10 after the succeeding session of Congress first con11 venes; and 

12 ‘‘(ii) a report on such rule were submitted to 

13 Congress under subsection (a)(1) on such date. 

14 ‘‘(B) Nothing in this paragraph shall be construed 

15 to affect the requirement under subsection (a)(1) that a 

16 report shall be submitted to Congress before a rule can 

17 take effect. 

18 ‘‘(3) A rule described under paragraph (1) shall take 

19 effect as otherwise provided by law (including other sub20 sections of this section). 

21 ‘‘§ 802. Congressional approval procedure for major 

22 rules 

23 ‘‘(a)(1) For purposes of this section, the term ‘joint 

24 resolution’ means only a joint resolution addressing a reVerDate Mar 15 2010 03:23 Aug 16, 2014 Jkt 039200 PO 00000 Frm 00040 Fmt 6652 Sfmt 6201 E:\BILLS\H5360.IH H5360

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1 port classifying a rule as major pursuant to section 

2 801(a)(1)(A)(iii) that— 

3 ‘‘(A) bears no preamble; 

4 ‘‘(B) bears the following title (with blanks filled 

5 as appropriate): ‘Approving the rule submitted by 

6 lll relating to lll.’; 

7 ‘‘(C) includes after its resolving clause only the 

8 following (with blanks filled as appropriate): ‘That 

9 Congress approves the rule submitted by lll re10 lating to lll.’; and 

11 ‘‘(D) is introduced pursuant to paragraph (2). 

12 ‘‘(2) After a House of Congress receives a report 

13 classifying a rule as major pursuant to section 

14 801(a)(1)(A)(iii), the majority leader of that House (or 

15 his or her respective designee) shall introduce (by request, 

16 if appropriate) a joint resolution described in paragraph 

17 (1)— 

18 ‘‘(A) in the case of the House of Representa19 tives, within three legislative days; and 

20 ‘‘(B) in the case of the Senate, within three ses21 sion days. 

22 ‘‘(3) A joint resolution described in paragraph (1) 

23 shall not be subject to amendment at any stage of pro24 ceeding. 


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1 ‘‘(b) A joint resolution described in subsection (a) 

2 shall be referred in each House of Congress to the commit3 tees having jurisdiction over the provision of law under 

4 which the rule is issued. 

5 ‘‘(c) In the Senate, if the committee or committees 

6 to which a joint resolution described in subsection (a) has 

7 been referred have not reported it at the end of 15 session 

8 days after its introduction, such committee or committees 

9 shall be automatically discharged from further consider10 ation of the resolution and it shall be placed on the cal11 endar. A vote on final passage of the resolution shall be 

12 taken on or before the close of the 15th session day after 

13 the resolution is reported by the committee or committees 

14 to which it was referred, or after such committee or com15 mittees have been discharged from further consideration 

16 of the resolution. 

17 ‘‘(d)(1) In the Senate, when the committee or com18 mittees to which a joint resolution is referred have re19 ported, or when a committee or committees are discharged 

20 (under subsection (c)) from further consideration of a 

21 joint resolution described in subsection (a), it is at any 

22 time thereafter in order (even though a previous motion 

23 to the same effect has been disagreed to) for a motion 

24 to proceed to the consideration of the joint resolution, and 

25 all points of order against the joint resolution (and against 


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1 consideration of the joint resolution) are waived. The mo2 tion is not subject to amendment, or to a motion to post3 pone, or to a motion to proceed to the consideration of 

4 other business. A motion to reconsider the vote by which 

5 the motion is agreed to or disagreed to shall not be in 

6 order. If a motion to proceed to the consideration of the 

7 joint resolution is agreed to, the joint resolution shall re8 main the unfinished business of the Senate until disposed 

9 of. 

10 ‘‘(2) In the Senate, debate on the joint resolution, 

11 and on all debatable motions and appeals in connection 

12 therewith, shall be limited to not more than 2 hours, which 

13 shall be divided equally between those favoring and those 

14 opposing the joint resolution. A motion to further limit 

15 debate is in order and not debatable. An amendment to, 

16 or a motion to postpone, or a motion to proceed to the 

17 consideration of other business, or a motion to recommit 

18 the joint resolution is not in order. 

19 ‘‘(3) In the Senate, immediately following the conclu20 sion of the debate on a joint resolution described in sub21 section (a), and a single quorum call at the conclusion of 

22 the debate if requested in accordance with the rules of the 

23 Senate, the vote on final passage of the joint resolution 

24 shall occur. 


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1 ‘‘(4) Appeals from the decisions of the Chair relating 

2 to the application of the rules of the Senate to the proce3 dure relating to a joint resolution described in subsection 

4 (a) shall be decided without debate. 

5 ‘‘(e) In the House of Representatives, if any com6 mittee to which a joint resolution described in subsection 

7 (a) has been referred has not reported it to the House 

8 at the end of 15 legislative days after its introduction, 

9 such committee shall be discharged from further consider10 ation of the joint resolution, and it shall be placed on the 

11 appropriate calendar. On the second and fourth Thursdays 

12 of each month it shall be in order at any time for the 

13 Speaker to recognize a Member who favors passage of a 

14 joint resolution that has appeared on the calendar for at 

15 least 5 legislative days to call up that joint resolution for 

16 immediate consideration in the House without intervention 

17 of any point of order. When so called up a joint resolution 

18 shall be considered as read and shall be debatable for 1 

19 hour equally divided and controlled by the proponent and 

20 an opponent, and the previous question shall be considered 

21 as ordered to its passage without intervening motion. It 

22 shall not be in order to reconsider the vote on passage. 

23 If a vote on final passage of the joint resolution has not 

24 been taken by the third Thursday on which the Speaker 


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1 may recognize a Member under this subsection, such vote 

2 shall be taken on that day. 

3 ‘‘(f)(1) If, before passing a joint resolution described 

4 in subsection (a), one House receives from the other a 

5 joint resolution having the same text, then— 

6 ‘‘(A) the joint resolution of the other House 

7 shall not be referred to a committee; and 

8 ‘‘(B) the procedure in the receiving House shall 

9 be the same as if no joint resolution had been re10 ceived from the other House until the vote on pas11 sage, when the joint resolution received from the 

12 other House shall supplant the joint resolution of 

13 the receiving House. 

14 ‘‘(2) This subsection shall not apply to the House of 

15 Representatives if the joint resolution received from the 

16 Senate is a revenue measure. 

17 ‘‘(g) If either House has not taken a vote on final 

18 passage of the joint resolution by the last day of the period 

19 described in section 801(b)(2), then such vote shall be 

20 taken on that day. 

21 ‘‘(h) This section and section 803 are enacted by 

22 Congress— 

23 ‘‘(1) as an exercise of the rulemaking power of 

24 the Senate and House of Representatives, respec25 tively, and as such is deemed to be part of the rules 


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1 of each House, respectively, but applicable only with 

2 respect to the procedure to be followed in that 

3 House in the case of a joint resolution described in 

4 subsection (a) and superseding other rules only 

5 where explicitly so; and 

6 ‘‘(2) with full recognition of the Constitutional 

7 right of either House to change the rules (so far as 

8 they relate to the procedure of that House) at any 

9 time, in the same manner and to the same extent as 

10 in the case of any other rule of that House. 

11 ‘‘§ 803. Congressional disapproval procedure for 

12 nonmajor rules 

13 ‘‘(a) For purposes of this section, the term ‘joint res14 olution’ means only a joint resolution introduced in the 

15 period beginning on the date on which the report referred 

16 to in section 801(a)(1)(A) is received by Congress and 

17 ending 60 days thereafter (excluding days either House 

18 of Congress is adjourned for more than 3 days during a 

19 session of Congress), the matter after the resolving clause 

20 of which is as follows: ‘That Congress disapproves the 

21 nonmajor rule submitted by the lll relating to 

22 lll, and such rule shall have no force or effect.’ (The 

23 blank spaces being appropriately filled in). 


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1 ‘‘(b) A joint resolution described in subsection (a) 

2 shall be referred to the committees in each House of Con3 gress with jurisdiction. 

4 ‘‘(c) In the Senate, if the committee to which is re5 ferred a joint resolution described in subsection (a) has 

6 not reported such joint resolution (or an identical joint 

7 resolution) at the end of 15 session days after the date 

8 of introduction of the joint resolution, such committee may 

9 be discharged from further consideration of such joint res10 olution upon a petition supported in writing by 30 Mem11 bers of the Senate, and such joint resolution shall be 

12 placed on the calendar. 

13 ‘‘(d)(1) In the Senate, when the committee to which 

14 a joint resolution is referred has reported, or when a com15 mittee is discharged (under subsection (c)) from further 

16 consideration of a joint resolution described in subsection 

17 (a), it is at any time thereafter in order (even though a 

18 previous motion to the same effect has been disagreed to) 

19 for a motion to proceed to the consideration of the joint 

20 resolution, and all points of order against the joint resolu21 tion (and against consideration of the joint resolution) are 

22 waived. The motion is not subject to amendment, or to 

23 a motion to postpone, or to a motion to proceed to the 

24 consideration of other business. A motion to reconsider the 

25 vote by which the motion is agreed to or disagreed to shall 


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1 not be in order. If a motion to proceed to the consideration 

2 of the joint resolution is agreed to, the joint resolution 

3 shall remain the unfinished business of the Senate until 

4 disposed of. 

5 ‘‘(2) In the Senate, debate on the joint resolution, 

6 and on all debatable motions and appeals in connection 

7 therewith, shall be limited to not more than 10 hours, 

8 which shall be divided equally between those favoring and 

9 those opposing the joint resolution. A motion to further 

10 limit debate is in order and not debatable. An amendment 

11 to, or a motion to postpone, or a motion to proceed to 

12 the consideration of other business, or a motion to recom13 mit the joint resolution is not in order. 

14 ‘‘(3) In the Senate, immediately following the conclu15 sion of the debate on a joint resolution described in sub16 section (a), and a single quorum call at the conclusion of 

17 the debate if requested in accordance with the rules of the 

18 Senate, the vote on final passage of the joint resolution 

19 shall occur. 

20 ‘‘(4) Appeals from the decisions of the Chair relating 

21 to the application of the rules of the Senate to the proce22 dure relating to a joint resolution described in subsection 

23 (a) shall be decided without debate. 


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1 ‘‘(e) In the Senate the procedure specified in sub2 section (c) or (d) shall not apply to the consideration of 

3 a joint resolution respecting a nonmajor rule— 

4 ‘‘(1) after the expiration of the 60 session days 

5 beginning with the applicable submission or publica6 tion date, or 

7 ‘‘(2) if the report under section 801(a)(1)(A) 

8 was submitted during the period referred to in sec9 tion 801(d)(1), after the expiration of the 60 session 

10 days beginning on the 15th session day after the 

11 succeeding session of Congress first convenes. 

12 ‘‘(f) If, before the passage by one House of a joint 

13 resolution of that House described in subsection (a), that 

14 House receives from the other House a joint resolution 

15 described in subsection (a), then the following procedures 

16 shall apply: 

17 ‘‘(1) The joint resolution of the other House 

18 shall not be referred to a committee. 

19 ‘‘(2) With respect to a joint resolution described 

20 in subsection (a) of the House receiving the joint 

21 resolution— 

22 ‘‘(A) the procedure in that House shall be 

23 the same as if no joint resolution had been re24 ceived from the other House; but 


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1 ‘‘(B) the vote on final passage shall be on 

2 the joint resolution of the other House. 

3 ‘‘§ 804. Definitions 

4 ‘‘For purposes of this chapter— 

5 ‘‘(1) The term ‘Federal agency’ means any 

6 agency as that term is defined in section 551(1). 

7 ‘‘(2) The term ‘major rule’ means any rule, in8 cluding an interim final rule, that the Administrator 

9 of the Office of Information and Regulatory Affairs 

10 of the Office of Management and Budget finds— 

11 ‘‘(A) has resulted in or is likely to result 

12 in— 

13 ‘‘(i) an annual effect on the economy 

14 of $50,000,000 or more; 

15 ‘‘(ii) a major increase in costs or 

16 prices for consumers, individual industries, 

17 Federal, State, or local government agen18 cies, or geographic regions; or 

19 ‘‘(iii) significant adverse effects on 

20 competition, employment, investment, pro21 ductivity, innovation, or on the ability of 

22 United States-based enterprises to compete 

23 with foreign-based enterprises in domestic 

24 and export markets; 


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1 ‘‘(B) is made by the Administrator of the 

2 Environmental Protection Agency and that 

3 would have a significant impact on a substan4 tial number of agricultural entities, as deter5 mined by the Secretary of Agriculture (who 

6 shall publish such determination in the Federal 

7 Register); 

8 ‘‘(C) is a rule that implements or provides 

9 for the imposition or collection of a carbon tax; 

10 or 

11 ‘‘(D) is made under the Patient Protection 

12 and Affordable Care Act (Public Law 111– 

13 148). 

14 ‘‘(3) The term ‘nonmajor rule’ means any rule 

15 that is not a major rule. 

16 ‘‘(4) The term ‘rule’ has the meaning given 

17 such term in section 551, except that such term does 

18 not include any rule of particular applicability, in19 cluding a rule that approves or prescribes for the fu20 ture rates, wages, prices, services, or allowances 

21 therefore, corporate or financial structures, reorga22 nizations, mergers, or acquisitions thereof, or ac23 counting practices or disclosures bearing on any of 

24 the foregoing. 


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1 ‘‘(5) The term ‘submission date or publication 

2 date’, except as otherwise provided in this chapter, 

3 means— 

4 ‘‘(A) in the case of a major rule, the date 

5 on which the Congress receives the report sub6 mitted under section 801(a)(1); and 

7 ‘‘(B) in the case of a nonmajor rule, the 

8 later of— 

9 ‘‘(i) the date on which the Congress 

10 receives the report submitted under section 

11 801(a)(1); and 

12 ‘‘(ii) the date on which the nonmajor 

13 rule is published in the Federal Register, if 

14 so published. 

15 ‘‘(6) The term ‘agricultural entity’ means any 

16 entity involved in or related to agricultural enter17 prise, including enterprises that are engaged in the 

18 business of production of food and fiber, ranching 

19 and raising of livestock, aquaculture, and all other 

20 farming and agricultural related industries. 

21 ‘‘(7) The term ‘carbon tax’ means a fee, levy, 

22 or price on— 

23 ‘‘(A) emissions, including carbon dioxide 

24 emissions generated by the burning of coal, nat25 ural gas, or oil; or 


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1 ‘‘(B) coal, natural gas, or oil based on 

2 emissions, including carbon dioxide emissions 

3 that would be generated through the fuel’s com4 bustion. 

5 ‘‘§ 805. Judicial review 

6 ‘‘(a) No determination, finding, action, or omission 

7 under this chapter shall be subject to judicial review. 

8 ‘‘(b) Notwithstanding subsection (a), a court may de9 termine whether a Federal agency has completed the nec10 essary requirements under this chapter for a rule to take 

11 effect. 

12 ‘‘(c) The enactment of a joint resolution of approval 

13 under section 802 shall not be interpreted to serve as a 

14 grant or modification of statutory authority by Congress 

15 for the promulgation of a rule, shall not extinguish or af16 fect any claim, whether substantive or procedural, against 

17 any alleged defect in a rule, and shall not form part of 

18 the record before the court in any judicial proceeding con19 cerning a rule except for purposes of determining whether 

20 or not the rule is in effect. 

21 ‘‘§ 806. Exemption for monetary policy 

22 ‘‘Nothing in this chapter shall apply to rules that con23 cern monetary policy proposed or implemented by the 

24 Board of Governors of the Federal Reserve System or the 

25 Federal Open Market Committee. 


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1 ‘‘§ 807. Effective date of certain rules 

2 ‘‘Notwithstanding section 801— 

3 ‘‘(1) any rule that establishes, modifies, opens, 

4 closes, or conducts a regulatory program for a com5 mercial, recreational, or subsistence activity related 

6 to hunting, fishing, or camping; or 

7 ‘‘(2) any rule other than a major rule which an 

8 agency for good cause finds (and incorporates the 

9 finding and a brief statement of reasons therefore in 

10 the rule issued) that notice and public procedure 

11 thereon are impracticable, unnecessary, or contrary 

12 to the public interest, 

13 shall take effect at such time as the Federal agency pro14 mulgating the rule determines.’’. 

15 SEC. 2003. BUDGETARY EFFECTS OF RULES SUBJECT TO 

16 SECTION 802 OF TITLE 5, UNITED STATES 

17 CODE. 

18 Section 257(b)(2) of the Balanced Budget and Emer19 gency Deficit Control Act of 1985 is amended by adding 

20 at the end the following new subparagraph: 

21 ‘‘(E) BUDGETARY EFFECTS OF RULES

22 SUBJECT TO SECTION 802 OF TITLE 5, UNITED

23 STATES CODE.—Any rules subject to the con24 gressional approval procedure set forth in sec25 tion 802 of chapter 8 of title 5, United States 

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1 ceipts shall be assumed to be effective unless it 

2 is not approved in accordance with such sec3 tion.’’. 

4 SEC. 2004. GOVERNMENT ACCOUNTABILITY OFFICE STUDY 

5 OF RULES. 

6 (a) IN GENERAL.—The Comptroller General of the 

7 United States shall conduct a study to determine, as of 

8 the date of the enactment of this subtitle— 

9 (1) how many rules (as such term is defined in 

10 section 804 of title 5, United States Code) were in 

11 effect; 

12 (2) how many major rules (as such term is de13 fined in section 804 of title 5, United States Code) 

14 were in effect; and 

15 (3) the total estimated economic cost imposed 

16 by all such rules. 

17 (b) REPORT.—Not later than one year after the date 

18 of the enactment of this subtitle, the Comptroller General 

19 of the United States shall submit a report to Congress 

20 that contains the findings of the study conducted under 

21 subsection (a). 


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1 Subtitle B—Energy Consumers 

2 Relief Act 

3 SEC. 2201. PROHIBITION AGAINST FINALIZING CERTAIN EN4 ERGY-RELATED RULES THAT WILL CAUSE 

5 SIGNIFICANT ADVERSE EFFECTS TO THE 

6 ECONOMY. 

7 Notwithstanding any other provision of law, the Ad8 ministrator of the Environmental Protection Agency may 

9 not promulgate as final an energy-related rule that is esti10 mated to cost more than $1 billion if the Secretary of En11 ergy determines under section 2202(3) that the rule will 

12 cause significant adverse effects to the economy. 

13 SEC. 2202. REPORTS AND DETERMINATIONS PRIOR TO PRO14 MULGATING AS FINAL CERTAIN ENERGY-RE15 LATED RULES. 

16 Before promulgating as final any energy-related rule 

17 that is estimated to cost more than $1 billion: 

18 (1) REPORT TO CONGRESS.—The Administrator 

19 of the Environmental Protection Agency shall sub20 mit to Congress a report (and transmit a copy to the 

21 Secretary of Energy) containing— 

22 (A) a copy of the rule; 

23 (B) a concise general statement relating to 

24 the rule; 


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1 (C) an estimate of the total costs of the 

2 rule, including the direct costs and indirect 

3 costs of the rule; 

4 (D)(i) an estimate of the total benefits of 

5 the rule and when such benefits are expected to 

6 be realized; 

7 (ii) a description of the modeling, the cal8 culations, the assumptions, and the limitations 

9 due to uncertainty, speculation, or lack of infor10 mation associated with the estimates under this 

11 subparagraph; and 

12 (iii) a certification that all data and docu13 ments relied upon by the Agency in developing 

14 such estimates— 

15 (I) have been preserved; and 

16 (II) are available for review by the 

17 public on the Agency’s Web site, except to 

18 the extent to which publication of such 

19 data and documents would constitute dis20 closure of confidential information in viola21 tion of applicable Federal law; 

22 (E) an estimate of the increases in energy 

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1 sult from implementation or enforcement of the 

2 rule; and 

3 (F) a detailed description of the employ4 ment effects, including potential job losses and 

5 shifts in employment, that may result from im6 plementation or enforcement of the rule. 

7 (2) INITIAL DETERMINATION ON INCREASES

8 AND IMPACTS.—The Secretary of Energy, in con9 sultation with the Federal Energy Regulatory Com10 mission and the Administrator of the Energy Infor11 mation Administration, shall prepare an independent 

12 analysis to determine whether the rule will cause— 

13 (A) any increase in energy prices for con14 sumers, including low-income households, small 

15 businesses, and manufacturers; 

16 (B) any impact on fuel diversity of the Na17 tion’s electricity generation portfolio or on na18 tional, regional, or local electric reliability; 

19 (C) any adverse effect on energy supply, 

20 distribution, or use due to the economic or tech21 nical infeasibility of implementing the rule; or 

22 (D) any other adverse effect on energy 

23 supply, distribution, or use (including a short24 fall in supply and increased use of foreign sup25 plies). 


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1 (3) SUBSEQUENT DETERMINATION ON ADVERSE

2 EFFECTS TO THE ECONOMY.—If the Secretary of 

3 Energy determines, under paragraph (2), that the 

4 rule will cause an increase, impact, or effect de5 scribed in such paragraph, then the Secretary, in 

6 consultation with the Administrator of the Environ7 mental Protection Agency, the Secretary of Com8 merce, the Secretary of Labor, and the Adminis9 trator of the Small Business Administration, shall— 

10 (A) determine whether the rule will cause 

11 significant adverse effects to the economy, tak12 ing into consideration— 

13 (i) the costs and benefits of the rule 

14 and limitations in calculating such costs 

15 and benefits due to uncertainty, specula16 tion, or lack of information; and 

17 (ii) the positive and negative impacts 

18 of the rule on economic indicators, includ19 ing those related to gross domestic prod20 uct, unemployment, wages, consumer 

21 prices, and business and manufacturing ac22 tivity; and 

23 (B) publish the results of such determina24 tion in the Federal Register. 


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1 SEC. 2203. DEFINITIONS. 

2 In this subtitle: 

3 (1) The terms ‘‘direct costs’’ and ‘‘indirect 

4 costs’’ have the meanings given such terms in chap5 ter 8 of the Environmental Protection Agency’s 

6 ‘‘Guidelines for Preparing Economic Analyses’’ 

7 dated December 17, 2010. 

8 (2) The term ‘‘energy-related rule that is esti9 mated to cost more than $1 billion’’ means a rule of 

10 the Environmental Protection Agency that— 

11 (A) regulates any aspect of the production, 

12 supply, distribution, or use of energy or pro13 vides for such regulation by States or other gov14 ernmental entities; and 

15 (B) is estimated by the Administrator of 

16 the Environmental Protection Agency or the 

17 Director of the Office of Management and 

18 Budget to impose direct costs and indirect 

19 costs, in the aggregate, of more than 

20 $1,000,000,000. 

21 (3) The term ‘‘rule’’ has the meaning given to 

22 such term in section 551 of title 5, United States 

23 Code. 


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1 SEC. 2204. PROHIBITION ON USE OF SOCIAL COST OF CAR2 BON IN ANALYSIS. 

3 (a) IN GENERAL.—Notwithstanding any other provi4 sion of law or any Executive order, the Administrator of 

5 the Environmental Protection Agency may not use the so6 cial cost of carbon in order to incorporate social benefits 

7 of reducing carbon dioxide emissions, or for any other rea8 son, in any cost-benefit analysis relating to an energy-re9 lated rule that is estimated to cost more than $1 billion 

10 unless and until a Federal law is enacted authorizing such 

11 use. 

12 (b) DEFINITION.—In this section, the term ‘‘social 

13 cost of carbon’’ means the social cost of carbon as de14 scribed in the technical support document entitled ‘‘Tech15 nical Support Document: Technical Update of the Social 

16 Cost of Carbon for Regulatory Impact Analysis Under Ex17 ecutive Order 12866’’, published by the Interagency 

18 Working Group on Social Cost of Carbon, United States 

19 Government, in May 2013, or any successor or substan20 tially related document, or any other estimate of the mone21 tized damages associated with an incremental increase in 

22 carbon dioxide emissions in a given year. 


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1 Subtitle C—Electricity Security 

2 and Affordability Act 

3 SEC. 2301. STANDARDS OF PERFORMANCE FOR NEW FOS4 SIL FUEL-FIRED ELECTRIC UTILITY GENER5 ATING UNITS. 

6 (a) LIMITATION.—The Administrator of the Environ7 mental Protection Agency may not issue, implement, or 

8 enforce any proposed or final rule under section 111 of 

9 the Clean Air Act (42 U.S.C. 7411) that establishes a 

10 standard of performance for emissions of any greenhouse 

11 gas from any new source that is a fossil fuel-fired electric 

12 utility generating unit unless such rule meets the require13 ments under subsections (b) and (c). 

14 (b) REQUIREMENTS.—In issuing any rule under sec15 tion 111 of the Clean Air Act (42 U.S.C. 7411) estab16 lishing standards of performance for emissions of any 

17 greenhouse gas from new sources that are fossil fuel-fired 

18 electric utility generating units, the Administrator of the 

19 Environmental Protection Agency (for purposes of estab20 lishing such standards)— 

21 (1) shall separate sources fueled with coal and 

22 natural gas into separate categories; and 

23 (2) shall not set a standard based on the best 

24 system of emission reduction for new sources within 

25 a fossil-fuel category unless— 


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1 (A) such standard has been achieved on 

2 average for at least one continuous 12-month 

3 period (excluding planned outages) by each of 

4 at least 6 units within such category— 

5 (i) each of which is located at a dif6 ferent electric generating station in the 

7 United States; 

8 (ii) which, collectively, are representa9 tive of the operating characteristics of elec10 tric generation at different locations in the 

11 United States; and 

12 (iii) each of which is operated for the 

13 entire 12-month period on a full commer14 cial basis; and 

15 (B) no results obtained from any dem16 onstration project are used in setting such 

17 standard. 

18 (c) COAL HAVING A HEAT CONTENT OF 8300 OR

19 LESS BRITISH THERMAL UNITS PER POUND.— 

20 (1) SEPARATE SUBCATEGORY.—In carrying out 

21 subsection (b)(1), the Administrator of the Environ22 mental Protection Agency shall establish a separate 

23 subcategory for new sources that are fossil fuel-fired 

24 electric utility generating units using coal with an 


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1 average heat content of 8300 or less British Ther2 mal Units per pound. 

3 (2) STANDARD.—Notwithstanding subsection 

4 (b)(2), in issuing any rule under section 111 of the 

5 Clean Air Act (42 U.S.C. 7411) establishing stand6 ards of performance for emissions of any greenhouse 

7 gas from new sources in such subcategory, the Ad8 ministrator of the Environmental Protection Agency 

9 shall not set a standard based on the best system of 

10 emission reduction unless— 

11 (A) such standard has been achieved on 

12 average for at least one continuous 12-month 

13 period (excluding planned outages) by each of 

14 at least 3 units within such subcategory— 

15 (i) each of which is located at a dif16 ferent electric generating station in the 

17 United States; 

18 (ii) which, collectively, are representa19 tive of the operating characteristics of elec20 tric generation at different locations in the 

21 United States; and 

22 (iii) each of which is operated for the 

23 entire 12-month period on a full commer24 cial basis; and 


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1 (B) no results obtained from any dem2 onstration project are used in setting such 

3 standard. 

4 (d) TECHNOLOGIES.—Nothing in this section shall be 

5 construed to preclude the issuance, implementation, or en6 forcement of a standard of performance that— 

7 (1) is based on the use of one or more tech8 nologies that are developed in a foreign country, but 

9 has been demonstrated to be achievable at fossil 

10 fuel-fired electric utility generating units in the 

11 United States; and 

12 (2) meets the requirements of subsections (b) 

13 and (c), as applicable. 

14 SEC. 2302. CONGRESS TO SET EFFECTIVE DATE FOR STAND15 ARDS OF PERFORMANCE FOR EXISTING, 

16 MODIFIED, AND RECONSTRUCTED FOSSIL 

17 FUEL-FIRED ELECTRIC UTILITY GENERATING 

18 UNITS. 

19 (a) APPLICABILITY.—This section applies with re20 spect to any rule or guidelines issued by the Administrator 

21 of the Environmental Protection Agency under section 

22 111 of the Clean Air Act (42 U.S.C. 7411) that— 

23 (1) establish any standard of performance for 

24 emissions of any greenhouse gas from any modified 


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1 or reconstructed source that is a fossil fuel-fired 

2 electric utility generating unit; or 

3 (2) apply to the emissions of any greenhouse 

4 gas from an existing source that is a fossil fuel-fired 

5 electric utility generating unit. 

6 (b) CONGRESS TO SET EFFECTIVE DATE.—A rule 

7 or guidelines described in subsection (a) shall not take ef8 fect unless a Federal law is enacted specifying such rule’s 

9 or guidelines’ effective date. 

10 (c) REPORTING.—A rule or guidelines described in 

11 subsection (a) shall not take effect unless the Adminis12 trator of the Environmental Protection Agency has sub13 mitted to Congress a report containing each of the fol14 lowing: 

15 (1) The text of such rule or guidelines. 

16 (2) The economic impacts of such rule or guide17 lines, including the potential effects on— 

18 (A) economic growth, competitiveness, and 

19 jobs in the United States; 

20 (B) electricity ratepayers, including low-in21 come ratepayers in affected States; 

22 (C) required capital investments and pro23 jected costs for operation and maintenance of 

24 new equipment required to be installed; and 


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1 (D) the global economic competitiveness of 

2 the United States. 

3 (3) The amount of greenhouse gas emissions 

4 that such rule or guidelines are projected to reduce 

5 as compared to overall global greenhouse gas emis6 sions. 

7 (d) CONSULTATION.—In carrying out subsection (c), 

8 the Administrator of the Environmental Protection Agen9 cy shall consult with the Administrator of the Energy In10 formation Administration, the Comptroller General of the 

11 United States, the Director of the National Energy Tech12 nology Laboratory, and the Under Secretary of Commerce 

13 for Standards and Technology. 

14 SEC. 2303. REPEAL OF EARLIER RULES AND GUIDELINES. 

15 The following rules and guidelines shall be of no force 

16 or effect, and shall be treated as though such rules and 

17 guidelines had never been issued: 

18 (1) The proposed rule— 

19 (A) entitled ‘‘Standards of Performance 

20 for Greenhouse Gas Emissions for New Sta21 tionary Sources: Electric Utility Generating 

22 Units’’, published at 77 Fed. Reg. 22392 (April 

23 13, 2012); and 

24 (B) withdrawn pursuant to the notice enti25 tled ‘‘Withdrawal of Proposed Standards of 


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1 Performance for Greenhouse Gas Emissions for 

2 New Stationary Sources: Electric Utility Gener3 ating Units’’, signed by the Administrator of 

4 the Environmental Protection Agency on Sep5 tember 20, 2013, and identified by docket ID 

6 number EPA–HQ–OAR–2011–0660. 

7 (2) The proposed rule entitled ‘‘Standards of 

8 Performance for Greenhouse Gas Emissions from 

9 New Stationary Sources: Electric Utility Generating 

10 Units’’, signed by the Administrator of the Environ11 mental Protection Agency on September 20, 2013, 

12 and identified by docket ID number EPA–HQ– 

13 OAR–2013–0495. 

14 (3) With respect to the proposed rule described 

15 in paragraph (1), any successor or substantially 

16 similar proposed or final rule that— 

17 (A) is issued prior to the date of the enact18 ment of this Act; 

19 (B) is applicable to any new source that is 

20 a fossil fuel-fired electric utility generating unit; 

21 and 

22 (C) does not meet the requirements under 

23 subsections (b) and (c) of section 2. 


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1 (4) Any proposed or final rule or guidelines 

2 under section 111 of the Clean Air Act (42 U.S.C. 

3 7411) that— 

4 (A) are issued prior to the date of the en5 actment of this Act; and 

6 (B) establish any standard of performance 

7 for emissions of any greenhouse gas from any 

8 modified or reconstructed source that is a fossil 

9 fuel-fired electric utility generating unit or 

10 apply to the emissions of any greenhouse gas 

11 from an existing source that is a fossil fuel-fired 

12 electric utility generating unit. 

13 SEC. 2304. DEFINITIONS. 

14 In this subtitle: 

15 (1) DEMONSTRATION PROJECT.—The term 

16 ‘‘demonstration project’’ means a project to test or 

17 demonstrate the feasibility of carbon capture and 

18 storage technologies that has received Federal Gov19 ernment funding or financial assistance. 

20 (2) EXISTING SOURCE.—The term ‘‘existing 

21 source’’ has the meaning given such term in section 

22 111(a) of the Clean Air Act (42 U.S.C. 7411(a)), 

23 except such term shall not include any modified 

24 source. 


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1 (3) GREENHOUSE GAS.—The term ‘‘greenhouse 

2 gas’’ means any of the following: 

3 (A) Carbon dioxide. 

4 (B) Methane. 

5 (C) Nitrous oxide. 

6 (D) Sulfur hexafluoride. 

7 (E) Hydrofluorocarbons. 

8 (F) Perfluorocarbons. 

9 (4) MODIFICATION.—The term ‘‘modification’’ 

10 has the meaning given such term in section 111(a) 

11 of the Clean Air Act (42 U.S.C. 7411(a)). 

12 (5) MODIFIED SOURCE.—The term ‘‘modified 

13 source’’ means any stationary source, the modifica14 tion of which is commenced after the date of the en15 actment of this Act. 

16 (6) NEW SOURCE.—The term ‘‘new source’’ has 

17 the meaning given such term in section 111(a) of 

18 the Clean Air Act (42 U.S.C. 7411(a)), except that 

19 such term shall not include any modified source. 


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1 Subtitle D—Coal Residuals Reuse 

2 and Management 

3 SEC. 2401. MANAGEMENT AND DISPOSAL OF COAL COMBUS4 TION RESIDUALS. 

5 (a) IN GENERAL.—Subtitle D of the Solid Waste Dis6 posal Act (42 U.S.C. 6941 et seq.) is amended by adding 

7 at the end the following: 

8 ‘‘SEC. 4011. MANAGEMENT AND DISPOSAL OF COAL COM9 BUSTION RESIDUALS. 

10 ‘‘(a) STATE PERMIT PROGRAMS FOR COAL COMBUS11 TION RESIDUALS.—Each State may adopt, implement, 

12 and enforce a coal combustion residuals permit program 

13 if such State provides the notification required under sub14 section (b)(1), and the certification required under sub15 section (b)(2). 

16 ‘‘(b) STATE ACTIONS.— 

17 ‘‘(1) NOTIFICATION.—Not later than 6 months 

18 after the date of enactment of this section (except 

19 as provided by the deadline identified under sub20 section (d)(3)(B)), the Governor of each State shall 

21 notify the Administrator, in writing, whether such 

22 State will adopt and implement a coal combustion 

23 residuals permit program. 

24 ‘‘(2) CERTIFICATION.— 


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1 ‘‘(A) IN GENERAL.—Not later than 36 

2 months after the date of enactment of this sec3 tion (except as provided in subsection 

4 (f)(1)(A)), in the case of a State that has noti5 fied the Administrator that it will implement a 

6 coal combustion residuals permit program, the 

7 head of the lead State implementing agency 

8 shall submit to the Administrator a certification 

9 that such coal combustion residuals permit pro10 gram meets the requirements described in sub11 section (c). 

12 ‘‘(B) CONTENTS.—A certification sub13 mitted under this paragraph shall include— 

14 ‘‘(i) a letter identifying the lead State 

15 implementing agency, signed by the head 

16 of such agency; 

17 ‘‘(ii) identification of any other State 

18 agencies involved with the implementation 

19 of the coal combustion residuals permit 

20 program; 

21 ‘‘(iii) an explanation of how the State 

22 coal combustion residuals permit program 

23 meets the requirements of this section, in24 cluding a description of the State’s— 


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1 ‘‘(I) process to inspect or other2 wise determine compliance with such 

3 permit program; 

4 ‘‘(II) process to enforce the re5 quirements of such permit program; 

6 ‘‘(III) public participation proc7 ess for the promulgation, amendment, 

8 or repeal of regulations for, and the 

9 issuance of permits under, such per10 mit program; 

11 ‘‘(IV) statutes, regulations, or 

12 policies pertaining to public access to 

13 information, such as groundwater 

14 monitoring data; and 

15 ‘‘(V) statutes, regulations, or 

16 policies pertaining to structural integ17 rity or dam safety that may be ap18 plied to structures through such per19 mit program; 

20 ‘‘(iv) a certification that the State has 

21 in effect, at the time of certification, stat22 utes or regulations necessary to implement 

23 a coal combustion residuals permit pro24 gram that meets the requirements de25 scribed in subsection (c); 


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1 ‘‘(v) copies of State statutes and regu2 lations described in clause (iv); and 

3 ‘‘(vi) an emergency action plan for 

4 State response to a leak or spill at a struc5 ture that receives coal combustion residu6 als. 

7 ‘‘(C) UPDATES.—A State may update the 

8 certification as needed to reflect changes to the 

9 coal combustion residuals permit program. 

10 ‘‘(3) MAINTENANCE OF 4005(c) OR 3006 PRO11 GRAM.—In order to adopt or implement a coal com12 bustion residuals permit program under this section 

13 (including pursuant to subsection (f)), the State im14 plementing agency shall maintain an approved per15 mit program or other system of prior approval and 

16 conditions under section 4005(c) or an authorized 

17 program under section 3006. 

18 ‘‘(c) REQUIREMENTS FOR A COAL COMBUSTION RE19 SIDUALS PERMIT PROGRAM.—A coal combustion residuals 

20 permit program shall consist of the following: 

21 ‘‘(1) GENERAL REQUIREMENTS.— 

22 ‘‘(A) IN GENERAL.—The implementing 

23 agency shall— 

24 ‘‘(i) apply the subset of the revised 

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1 ers or operators of structures, including 

2 surface impoundments, that receive coal 

3 combustion residuals on or after the date 

4 of enactment of this section; 

5 ‘‘(ii) with respect to structures that 

6 are receiving coal combustion residuals as 

7 of the date of enactment of this section, 

8 take the actions required under paragraph 

9 (3); 

10 ‘‘(iii) impose requirements for surface 

11 impoundments that do not meet certain 

12 criteria pursuant to paragraph (4); and 

13 ‘‘(iv) require that closure of structures 

14 occur in accordance with paragraph (5). 

15 ‘‘(B) STRUCTURAL INTEGRITY.— 

16 ‘‘(i) ENGINEERING CERTIFICATION.— 

17 The implementing agency shall require 

18 that an independent registered professional 

19 engineer certify that— 

20 ‘‘(I) the design of each structure 

21 that receives coal combustion residu22 als on or after the date of enactment 

23 of this section is in accordance with 

24 recognized and generally accepted 

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1 tainment of the maximum volume of 

2 coal combustion residuals and liquids 

3 which can be impounded therein; and 

4 ‘‘(II) the construction and main5 tenance of the structure will ensure 

6 structural stability. 

7 ‘‘(ii) EMERGENCY ACTION PLAN.— 

8 The implementing agency shall require 

9 that the owner or operator of any structure 

10 that is a surface impoundment that re11 ceives coal combustion residuals on or after 

12 the date of enactment of this section and 

13 that is classified by the State as posing a 

14 high hazard potential pursuant to the 

15 guidelines published by the Federal Emer16 gency Management Agency entitled ‘Fed17 eral Guidelines for Dam Safety: Hazard 

18 Potential Classification System for Dams’ 

19 (FEMA Publication Number 333) prepare 

20 and maintain an emergency action plan 

21 that identifies responsible persons and ac22 tions to be taken in the event of a dam 

23 safety emergency. 

24 ‘‘(iii) INSPECTION.— 


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1 ‘‘(I) IN GENERAL.—The imple2 menting agency shall require that 

3 structures that are surface impound4 ments that receive coal combustion re5 siduals on or after the date of enact6 ment of this section be inspected not 

7 less than annually by an independent 

8 registered professional engineer to as9 sure that the design, operation, and 

10 maintenance of the surface impound11 ment is in accordance with recognized 

12 and generally accepted good engineer13 ing practices for containment of the 

14 maximum volume of coal combustion 

15 residuals and liquids which can be im16 pounded therein, so as to ensure dam 

17 stability. 

18 ‘‘(II) POTENTIALLY HAZARDOUS

19 CONDITIONS.—The implementing 

20 agency shall require that if an inspec21 tion under subclause (I), or a periodic 

22 evaluation under clause (iv), reveals a 

23 potentially hazardous condition, the 

24 owner or operator of the structure 

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1 gate the potentially hazardous condi2 tion and notify appropriate State and 

3 local first responders. 

4 ‘‘(iv) PERIODIC EVALUATION.—The 

5 implementing agency shall require that 

6 structures that are surface impoundments 

7 that receive coal combustion residuals on 

8 or after the date of enactment of this sec9 tion be periodically evaluated for appear10 ances of structural weakness. 

11 ‘‘(v) DEFICIENCY.— 

12 ‘‘(I) IN GENERAL.—If the head 

13 of the implementing agency deter14 mines that a structure is deficient 

15 with respect to the requirements in 

16 clause (i), (iii), or (iv), the head of the 

17 agency has the authority to require 

18 action to correct the deficiency accord19 ing to a schedule determined by the 

20 agency. 

21 ‘‘(II) UNCORRECTED DEFI22 CIENCIES.—If a deficiency is not cor23 rected according to the schedule, the 

24 head of the implementing agency has 

25 the authority to require that the 


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1 structure close in accordance with 

2 paragraph (5). 

3 ‘‘(III) DAM SAFETY CONSULTA4 TION.—In the case of a structure that 

5 is a surface impoundment, the head of 

6 the implementing agency shall, in 

7 making a determination under sub8 clause (I), consult with appropriate 

9 State dam safety officials. 

10 ‘‘(C) LOCATION.—The implementing agen11 cy shall require that structures that first receive 

12 coal combustion residuals on or after the date 

13 of enactment of this section shall be constructed 

14 with a base located a minimum of 2 feet above 

15 the upper limit of the water table, unless it is 

16 demonstrated to the satisfaction of the imple17 menting agency that— 

18 ‘‘(i) the hydrogeologic characteristics 

19 of a structure and surrounding land would 

20 preclude such a requirement; and 

21 ‘‘(ii) the function and integrity of the 

22 liner system will not be adversely impacted 

23 by contact with the water table. 

24 ‘‘(D) WIND DISPERSAL.— 


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1 ‘‘(i) IN GENERAL.—The implementing 

2 agency shall require that owners or opera3 tors of structures that receive coal combus4 tion residuals on or after the date of enact5 ment of this section address wind dispersal 

6 of dust by requiring cover, or by wetting 

7 coal combustion residuals with water to a 

8 moisture content that prevents wind dis9 persal, facilitates compaction, and does not 

10 result in free liquids. 

11 ‘‘(ii) ALTERNATIVE METHODS.—Sub12 ject to the review and approval by the im13 plementing agency, owners or operators of 

14 structures that receive coal combustion re15 siduals on or after the date of enactment 

16 of this section may propose alternative 

17 methods to address wind dispersal of dust 

18 that will provide comparable or more effec19 tive control of dust. 

20 ‘‘(E) PERMITS.—The implementing agency 

21 shall require that owners or operators of struc22 tures that receive coal combustion residuals on 

23 or after the date of enactment of this section 

24 apply for and obtain permits incorporating the 


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1 requirements of the coal combustion residuals 

2 permit program. 

3 ‘‘(F) PUBLIC AVAILABILITY OF INFORMA4 TION.—Except for information with respect to 

5 which disclosure is prohibited under section 

6 1905 of title 18, United States Code, the imple7 menting agency shall ensure that— 

8 ‘‘(i) documents for permit determina9 tions are made available for public review 

10 and comment under the public participa11 tion process described in subsection 

12 (b)(2)(B)(iii)(III) or in subsection (e)(6), 

13 as applicable; 

14 ‘‘(ii) final determinations on permit 

15 applications are made known to the public; 

16 and 

17 ‘‘(iii) groundwater monitoring data 

18 collected under paragraph (2) is publicly 

19 available. 

20 ‘‘(G) AGENCY AUTHORITY.— 

21 ‘‘(i) IN GENERAL.—The implementing 

22 agency has the authority to— 

23 ‘‘(I) obtain information necessary 

24 to determine whether the owner or op25 erator of a structure is in compliance 


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1 with the requirements of this sub2 section; 

3 ‘‘(II) conduct or require moni4 toring and testing to ensure that 

5 structures are in compliance with the 

6 requirements of this subsection; and 

7 ‘‘(III) enter, at reasonable times, 

8 any site or premise subject to the coal 

9 combustion residuals permit program 

10 for the purpose of inspecting struc11 tures and reviewing records relevant 

12 to the design, operation, and mainte13 nance of structures. 

14 ‘‘(ii) MONITORING AND TESTING.—If 

15 monitoring or testing is conducted under 

16 clause (i)(II) by or for the implementing 

17 agency, the implementing agency shall, if 

18 requested, provide to the owner or oper19 ator— 

20 ‘‘(I) a written description of the 

21 monitoring or testing completed; 

22 ‘‘(II) at the time of sampling, a 

23 portion of each sample equal in vol24 ume or weight to the portion retained 


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1 by or for the implementing agency; 

2 and 

3 ‘‘(III) a copy of the results of 

4 any analysis of samples collected by or 

5 for the implementing agency. 

6 ‘‘(2) REVISED CRITERIA.—The subset of the re7 vised criteria referred to in paragraph (1)(A)(i) are 

8 as follows: 

9 ‘‘(A) DESIGN REQUIREMENTS.—For new 

10 structures, and lateral expansions of existing 

11 structures, that first receive coal combustion re12 siduals on or after the date of enactment of this 

13 section, the revised criteria regarding design re14 quirements described in section 258.40 of title 

15 40, Code of Federal Regulations, except that 

16 the leachate collection system requirements de17 scribed in section 258.40(a)(2) of title 40, Code 

18 of Federal Regulations, do not apply to struc19 tures that are surface impoundments. 

20 ‘‘(B) GROUNDWATER MONITORING AND

21 CORRECTIVE ACTION.—For all structures that 

22 receive coal combustion residuals on or after the 

23 date of enactment of this section, the revised 

24 criteria regarding groundwater monitoring and 

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1 part E of part 258 of title 40, Code of Federal 

2 Regulations, except that, for the purposes of 

3 this subparagraph, the revised criteria shall also 

4 include— 

5 ‘‘(i) for the purposes of detection 

6 monitoring, the constituents boron, chlo7 ride, conductivity, fluoride, mercury, pH, 

8 sulfate, sulfide, and total dissolved solids; 

9 and 

10 ‘‘(ii) for the purposes of assessment 

11 monitoring, establishing a groundwater 

12 protection standard, and assessment of 

13 corrective measures, the constituents alu14 minum, boron, chloride, fluoride, iron, 

15 manganese, molybdenum, pH, sulfate, and 

16 total dissolved solids. 

17 ‘‘(C) CLOSURE.—For all structures that 

18 receive coal combustion residuals on or after the 

19 date of enactment of this section, in a manner 

20 consistent with paragraph (5), the revised cri21 teria for closure described in subsections (a) 

22 through (c) and (h) through (j) of section 

23 258.60 of title 40, Code of Federal Regulations. 

24 ‘‘(D) POST-CLOSURE.—For all structures 

25 that receive coal combustion residuals on or 


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1 after the date of enactment of this section, the 

2 revised criteria for post-closure care described 

3 in section 258.61 of title 40, Code of Federal 

4 Regulations, except for the requirement de5 scribed in subsection (a)(4) of that section. 

6 ‘‘(E) LOCATION RESTRICTIONS.—The re7 vised criteria for location restrictions described 

8 in— 

9 ‘‘(i) for new structures, and lateral ex10 pansions of existing structures, that first 

11 receive coal combustion residuals on or 

12 after the date of enactment of this section, 

13 sections 258.11 through 258.15 of title 40, 

14 Code of Federal Regulations; and 

15 ‘‘(ii) for existing structures that re16 ceive coal combustion residuals on or after 

17 the date of enactment of this section, sec18 tions 258.11 and 258.15 of title 40, Code 

19 of Federal Regulations. 

20 ‘‘(F) AIR QUALITY.—For all structures 

21 that receive coal combustion residuals on or 

22 after the date of enactment of this section, the 

23 revised criteria for air quality described in sec24 tion 258.24 of title 40, Code of Federal Regula25 tions. 


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1 ‘‘(G) FINANCIAL ASSURANCE.—For all 

2 structures that receive coal combustion residu3 als on or after the date of enactment of this 

4 section, the revised criteria for financial assur5 ance described in subpart G of part 258 of title 

6 40, Code of Federal Regulations. 

7 ‘‘(H) SURFACE WATER.—For all structures 

8 that receive coal combustion residuals on or 

9 after the date of enactment of this section, the 

10 revised criteria for surface water described in 

11 section 258.27 of title 40, Code of Federal Reg12 ulations. 

13 ‘‘(I) RECORDKEEPING.—For all structures 

14 that receive coal combustion residuals on or 

15 after the date of enactment of this section, the 

16 revised criteria for recordkeeping described in 

17 section 258.29 of title 40, Code of Federal Reg18 ulations. 

19 ‘‘(J) RUN-ON AND RUN-OFF CONTROL SYS20 TEMS FOR LAND-BASED UNITS.—For all land21 fills and other land-based units, other than sur22 face impoundments, that receive coal combus23 tion residuals on or after the date of enactment 

24 of this section, the revised criteria for run-on 


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1 and run-off control systems described in section 

2 258.26 of title 40, Code of Federal Regulations. 

3 ‘‘(K) RUN-OFF CONTROL SYSTEMS FOR

4 SURFACE IMPOUNDMENTS.—For all surface im5 poundments that receive coal combustion re6 siduals on or after the date of enactment of this 

7 section, the revised criteria for run-off control 

8 systems described in section 258.26(a)(2) of 

9 title 40, Code of Federal Regulations. 

10 ‘‘(3) PERMIT PROGRAM IMPLEMENTATION FOR

11 EXISTING STRUCTURES.— 

12 ‘‘(A) NOTIFICATION.—Not later than the 

13 date on which a State submits a certification 

14 under subsection (b)(2), not later than 30 

15 months after the Administrator receives notice 

16 under subsection (e)(1)(A), or not later than 36 

17 months after the date of enactment of this sec18 tion with respect to a coal combustion residuals 

19 permit program that is being implemented by 

20 the Administrator under subsection (e)(3), as 

21 applicable, the implementing agency shall notify 

22 owners or operators of structures that are re23 ceiving coal combustion residuals as of the date 

24 of enactment of this section within the State 

25 of— 


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1 ‘‘(i) the obligation to apply for and 

2 obtain a permit under subparagraph (C); 

3 and 

4 ‘‘(ii) the requirements referred to in 

5 subparagraph (B). 

6 ‘‘(B) COMPLIANCE WITH CERTAIN RE7 QUIREMENTS.—Not later than 12 months after 

8 the date on which a State submits a certifi9 cation under subsection (b)(2), not later than 

10 42 months after the Administrator receives no11 tice under subsection (e)(1)(A), or not later 

12 than 48 months after the date of enactment of 

13 this section with respect to a coal combustion 

14 residuals permit program that is being imple15 mented by the Administrator under subsection 

16 (e)(3), as applicable, the implementing agency 

17 shall require owners or operators of structures 

18 that are receiving coal combustion residuals as 

19 of the date of enactment of this section to com20 ply with— 

21 ‘‘(i) the requirements under para22 graphs (1)(B) (ii) and (iii), (1)(D), (2)(B), 

23 (2)(F), (2)(H), (2)(J), and (2)(K); and 

24 ‘‘(ii) the groundwater recordkeeping 

25 requirement described in section 


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1 258.29(a)(5) of title 40, Code of Federal 

2 Regulations. 

3 ‘‘(C) PERMITS.— 

4 ‘‘(i) PERMIT DEADLINE.—Not later 

5 than 48 months after the date on which a 

6 State submits a certification under sub7 section (b)(2), not later than 78 months 

8 after the Administrator receives notice 

9 under subsection (e)(1)(A), or not later 

10 than 84 months after the date of enact11 ment of this section with respect to a coal 

12 combustion residuals permit program that 

13 is being implemented by the Administrator 

14 under subsection (e)(3), as applicable, the 

15 implementing agency shall issue, with re16 spect to a structure that is receiving coal 

17 combustion residuals as of the date of en18 actment of this section, a final permit in19 corporating the requirements of the coal 

20 combustion residuals permit program, or a 

21 final denial for an application submitted 

22 requesting such a permit. 

23 ‘‘(ii) APPLICATION DEADLINE.—The 

24 implementing agency shall identify, in col25 laboration with the owner or operator of a 


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1 structure described in clause (i), a reason2 able deadline by which the owner or oper3 ator shall submit a permit application 

4 under such clause. 

5 ‘‘(D) INTERIM OPERATION.— 

6 ‘‘(i) PRIOR TO DEADLINES.—With re7 spect to any period of time on or after the 

8 date of enactment of this section but prior 

9 to the applicable deadline in subparagraph 

10 (B), the owner or operator of a structure 

11 that is receiving coal combustion residuals 

12 as of the date of enactment of this section 

13 may continue to operate such structure 

14 until such applicable deadline under the 

15 applicable authority in effect. 

16 ‘‘(ii) PRIOR TO PERMIT.—Unless the 

17 implementing agency determines that the 

18 structure should close pursuant to para19 graph (5), if the owner or operator of a 

20 structure that is receiving coal combustion 

21 residuals as of the date of enactment of 

22 this section meets the requirements re23 ferred to in subparagraph (B) by the appli24 cable deadline in such subparagraph, the 

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1 ture until such time as the implementing 

2 agency issues, under subparagraph (C), a 

3 final permit incorporating the requirements 

4 of the coal combustion residuals permit 

5 program, or a final denial for an applica6 tion submitted requesting such a permit. 

7 ‘‘(4) REQUIREMENTS FOR SURFACE IMPOUND8 MENTS THAT DO NOT MEET CERTAIN CRITERIA.— 

9 ‘‘(A) SURFACE IMPOUNDMENTS THAT RE10 QUIRE ASSESSMENT OF CORRECTIVE MEASURES

11 WITHIN 10 YEARS OF THE DATE OF ENACT12 MENT.— 

13 ‘‘(i) IN GENERAL.—In addition to the 

14 groundwater monitoring and corrective ac15 tion requirements described in paragraph 

16 (2)(B), the implementing agency shall re17 quire a surface impoundment that receives 

18 coal combustion residuals on or after the 

19 date of enactment of this section to comply 

20 with the requirements in clause (ii) of this 

21 subparagraph and clauses (i) and (ii) of 

22 subparagraph (D) if the surface impound23 ment— 

24 ‘‘(I) does not— 


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1 ‘‘(aa) have a liner system 

2 described in section 258.40(b) of 

3 title 40, Code of Federal Regula4 tions; and 

5 ‘‘(bb) meet the design cri6 teria described in section 

7 258.40(a)(1) of title 40, Code of 

8 Federal Regulations; and 

9 ‘‘(II) within 10 years after the 

10 date of enactment of this section, is 

11 required under section 258.56(a) of 

12 title 40, Code of Federal Regulations, 

13 to undergo an assessment of correc14 tive measures for any constituent cov15 ered under subpart E of part 258 of 

16 title 40, Code of Federal Regulations, 

17 or otherwise identified in paragraph 

18 (2)(B)(ii) of this subsection, for which 

19 assessment groundwater monitoring is 

20 required. 

21 ‘‘(ii) DEADLINE TO MEET GROUND22 WATER PROTECTION STANDARD.—Except 

23 as provided in subparagraph (C), the im24 plementing agency shall require that the 

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1 face impoundments identified in clause (i) 

2 of this subparagraph, established by the 

3 implementing agency under section 

4 258.55(h) or 258.55(i) of title 40, Code of 

5 Federal Regulations, for any constituent 

6 for which corrective measures are required 

7 shall be met— 

8 ‘‘(I) as soon as practicable at the 

9 relevant point of compliance, as de10 scribed in section 258.40(d) of title 

11 40, Code of Federal Regulations; and 

12 ‘‘(II) not later than 10 years 

13 after the date of enactment of this 

14 section. 

15 ‘‘(B) SURFACE IMPOUNDMENTS SUBJECT

16 TO A STATE CORRECTIVE ACTION REQUIRE17 MENT AS OF THE DATE OF ENACTMENT.— 

18 ‘‘(i) IN GENERAL.—In addition to the 

19 groundwater monitoring and corrective ac20 tion requirements described in paragraph 

21 (2)(B), the implementing agency shall re22 quire a surface impoundment that receives 

23 coal combustion residuals on or after the 

24 date of enactment of this section to comply 

25 with the requirements in clause (ii) of this 


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1 subparagraph and clauses (i) and (ii) of 

2 subparagraph (D) if the surface impound3 ment— 

4 ‘‘(I) does not— 

5 ‘‘(aa) have a liner system 

6 described in section 258.40(b) of 

7 title 40, Code of Federal Regula8 tions; and 

9 ‘‘(bb) meet the design cri10 teria described in section 

11 258.40(a)(1) of title 40, Code of 

12 Federal Regulations; and 

13 ‘‘(II) as of the date of enactment 

14 of this section, is subject to a State 

15 corrective action requirement. 

16 ‘‘(ii) DEADLINE TO MEET GROUND17 WATER PROTECTION STANDARD.—Except 

18 as provided in subparagraph (C), the im19 plementing agency shall require that the 

20 groundwater protection standard, for sur21 face impoundments identified in clause (i) 

22 of this subparagraph, established by the 

23 implementing agency under section 

24 258.55(h) or 258.55(i) of title 40, Code of 

25 Federal Regulations, for any constituent 


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1 for which corrective measures are required 

2 shall be met— 

3 ‘‘(I) as soon as practicable at the 

4 relevant point of compliance, as de5 scribed in section 258.40(d) of title 

6 40, Code of Federal Regulations; and 

7 ‘‘(II) not later than 8 years after 

8 the date of enactment of this section. 

9 ‘‘(C) EXTENSION OF DEADLINE.— 

10 ‘‘(i) IN GENERAL.—Except as pro11 vided in clause (ii) of this subparagraph, 

12 the deadline for meeting a groundwater 

13 protection standard under subparagraph 

14 (A)(ii) or (B)(ii) may be extended by the 

15 implementing agency, after opportunity for 

16 public notice and comment under the pub17 lic participation process described in sub18 section (b)(2)(B)(iii)(III), or in subsection 

19 (e)(6) based on— 

20 ‘‘(I) the effectiveness of any in21 terim measures implemented by the 

22 owner or operator of the facility under 

23 section 258.58(a)(3) of title 40, Code 

24 of Federal Regulations; 


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1 ‘‘(II) the level of progress dem2 onstrated in meeting the groundwater 

3 protection standard; 

4 ‘‘(III) the potential for other ad5 verse human health or environmental 

6 exposures attributable to the contami7 nation from the surface impoundment 

8 undergoing corrective action; and 

9 ‘‘(IV) the lack of available alter10 native management capacity for the 

11 coal combustion residuals and related 

12 materials managed in the impound13 ment at the facility at which the im14 poundment is located if the owner or 

15 operator has used best efforts, as nec16 essary, to design, obtain any nec17 essary permits, finance, construct, and 

18 render operational the alternative 

19 management capacity during the time 

20 period for meeting a groundwater pro21 tection standard in subparagraph 

22 (A)(ii) or (B)(ii). 

23 ‘‘(ii) EXCEPTION.—The deadline 

24 under subparagraph (A)(ii) or (B)(ii) shall 

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1 nation of public or private drinking water 

2 systems attributable to a surface impound3 ment undergoing corrective action, unless 

4 the contamination has been addressed by 

5 providing a permanent replacement water 

6 system. 

7 ‘‘(D) ADDITIONAL REQUIREMENTS.— 

8 ‘‘(i) CLOSURE.—If the deadline under 

9 subparagraph (A)(ii), (B)(ii), or (C) is not 

10 satisfied, the surface impoundment shall 

11 cease receiving coal combustion residuals 

12 and initiate closure under paragraph (5). 

13 ‘‘(ii) INTERIM MEASURES.— 

14 ‘‘(I) IN GENERAL.—Except as 

15 provided in subclause (II), not later 

16 than 90 days after the date on which 

17 the assessment of corrective measures 

18 is initiated, the owner or operator of 

19 a surface impoundment described in 

20 subparagraph (A) or (B) shall imple21 ment interim measures, as necessary, 

22 under the factors in section 

23 258.58(a)(3) of title 40, Code of Fed24 eral Regulations. 


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1 ‘‘(II) IMPOUNDMENTS SUBJECT

2 TO STATE CORRECTIVE ACTION RE3 QUIREMENT AS OF THE DATE OF EN4 ACTMENT.—Subclause (I) shall only 

5 apply to surface impoundments sub6 ject to a State corrective action re7 quirement as of the date of enactment 

8 of this section if the owner or oper9 ator has not implemented interim 

10 measures, as necessary, under the fac11 tors in section 258.58(a)(3) of title 

12 40, Code of Federal Regulations. 

13 ‘‘(E) SURFACE IMPOUNDMENTS THAT RE14 QUIRE ASSESSMENT OF CORRECTIVE MEASURES

15 MORE THAN 10 YEARS AFTER DATE OF ENACT16 MENT.— 

17 ‘‘(i) IN GENERAL.—In addition to the 

18 groundwater monitoring and corrective ac19 tion requirements described in paragraph 

20 (2)(B), the implementing agency shall re21 quire a surface impoundment that receives 

22 coal combustion residuals on or after the 

23 date of enactment of this section to comply 

24 with the requirements in clause (ii) if the 

25 surface impoundment— 


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1 ‘‘(I) does not— 

2 ‘‘(aa) have a liner system 

3 described in section 258.40(b) of 

4 title 40, Code of Federal Regula5 tions; and 

6 ‘‘(bb) meet the design cri7 teria described in section 

8 258.40(a)(1) of title 40, Code of 

9 Federal Regulations; and 

10 ‘‘(II) more than 10 years after 

11 the date of enactment of this section, 

12 is required under section 258.56(a) 

13 title 40, Code of Federal Regulations, 

14 to undergo an assessment of correc15 tive measures for any constituent cov16 ered under subpart E of part 258 of 

17 title 40, Code of Federal Regulations, 

18 or otherwise identified in paragraph 

19 (2)(B)(ii) of this subsection, for which 

20 assessment groundwater monitoring is 

21 required. 

22 ‘‘(ii) REQUIREMENTS.— 

23 ‘‘(I) CLOSURE.—The surface im24 poundments identified in clause (i) 

25 shall cease receiving coal combustion 


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1 residuals and initiate closure in ac2 cordance with paragraph (5) after al3 ternative management capacity at the 

4 facility is available for the coal com5 bustion residuals and related mate6 rials managed in the impoundment. 

7 ‘‘(II) BEST EFFORTS.—The al8 ternative management capacity shall 

9 be developed as soon as practicable 

10 with the owner or operator using best 

11 efforts to design, obtain necessary 

12 permits for, finance, construct, and 

13 render operational the alternative 

14 management capacity. 

15 ‘‘(III) ALTERNATIVE CAPACITY

16 MANAGEMENT PLAN.—The owner or 

17 operator shall, in collaboration with 

18 the implementing agency, prepare a 

19 written plan that describes the steps 

20 necessary to develop the alternative 

21 management capacity and includes a 

22 schedule for completion. 

23 ‘‘(IV) PUBLIC PARTICIPATION.— 

24 The plan described in subclause (III) 

25 shall be subject to public notice and 


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1 comment under the public participa2 tion process described in subsection 

3 (b)(2)(B)(iii)(III) or in subsection 

4 (e)(6), as applicable. 

5 ‘‘(5) CLOSURE.— 

6 ‘‘(A) IN GENERAL.—If it is determined by 

7 the implementing agency that a structure 

8 should close because the requirements of a coal 

9 combustion residuals permit program are not 

10 being satisfied with respect to such structure, 

11 or if it is determined by the owner or operator 

12 that a structure should close, the time period 

13 and method for the closure of such structure 

14 shall be set forth in a closure plan that estab15 lishes a deadline for completion of closure as 

16 soon as practicable and that takes into account 

17 the nature and the site-specific characteristics 

18 of the structure to be closed. 

19 ‘‘(B) SURFACE IMPOUNDMENT.—In the 

20 case of a surface impoundment, the closure plan 

21 under subparagraph (A) shall require, at a min22 imum, the removal of liquid and the stabiliza23 tion of remaining waste, as necessary to sup24 port the final cover. 


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1 ‘‘(d) FEDERAL REVIEW OF STATE PERMIT PRO2 GRAMS.— 

3 ‘‘(1) IN GENERAL.—The Administrator shall 

4 provide to a State written notice and an opportunity 

5 to remedy deficiencies in accordance with paragraph 

6 (3) if at any time the State— 

7 ‘‘(A) does not satisfy the notification re8 quirement under subsection (b)(1); 

9 ‘‘(B) has not submitted a certification re10 quired under subsection (b)(2); 

11 ‘‘(C) does not satisfy the maintenance re12 quirement under subsection (b)(3); 

13 ‘‘(D) is not implementing a coal combus14 tion residuals permit program, with respect to 

15 which the State has submitted a certification 

16 under subsection (b)(2), that meets the require17 ments described in subsection (c); 

18 ‘‘(E) is not implementing a coal combus19 tion residuals permit program, with respect to 

20 which the State has submitted a certification 

21 under subsection (b)(2)— 

22 ‘‘(i) that is consistent with such cer23 tification; and 


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1 ‘‘(ii) for which the State continues to 

2 have in effect statutes or regulations nec3 essary to implement such program; or 

4 ‘‘(F) does not make available to the Ad5 ministrator, within 90 days of a written re6 quest, specific information necessary for the 

7 Administrator to ascertain whether the State 

8 has satisfied the requirements described in sub9 paragraphs (A) through (E). 

10 ‘‘(2) REQUEST.—If a request described in para11 graph (1)(F) is proposed pursuant to a petition to 

12 the Administrator, the Administrator shall only 

13 make the request if the Administrator does not pos14 sess the information necessary to ascertain whether 

15 the State has satisfied the requirements described in 

16 subparagraphs (A) through (E) of such paragraph. 

17 ‘‘(3) CONTENTS OF NOTICE; DEADLINE FOR RE18 SPONSE.—A notice provided under paragraph (1) 

19 shall— 

20 ‘‘(A) include findings of the Administrator 

21 detailing any applicable deficiencies described in 

22 subparagraphs (A) through (F) of paragraph 

23 (1); and 

24 ‘‘(B) identify, in collaboration with the 

25 State, a reasonable deadline by which the State 


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1 shall remedy such applicable deficiencies, which 

2 shall be— 

3 ‘‘(i) in the case of a deficiency de4 scribed in subparagraphs (A) through (E) 

5 of paragraph (1), not earlier than 180 

6 days after the date on which the State re7 ceives the notice; and 

8 ‘‘(ii) in the case of a deficiency de9 scribed in paragraph (1)(F), not later than 

10 90 days after the date on which the State 

11 receives the notice. 

12 ‘‘(4) CRITERIA FOR DETERMINING DEFICIENCY

13 OF STATE PERMIT PROGRAM.—In making a deter14 mination whether a State has failed to satisfy the re15 quirements described in subparagraphs (A) through 

16 (E) of paragraph (1), or a determination under sub17 section (e)(1)(B), the Administrator shall consider, 

18 as appropriate— 

19 ‘‘(A) whether the State’s statutes or regu20 lations to implement a coal combustion residu21 als permit program are not sufficient to meet 

22 the requirements described in subsection (c) be23 cause of— 


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1 ‘‘(i) failure of the State to promulgate 

2 or enact new statutes or regulations when 

3 necessary; or 

4 ‘‘(ii) action by a State legislature or 

5 court striking down or limiting such State 

6 statutes or regulations; 

7 ‘‘(B) whether the operation of the State 

8 coal combustion residuals permit program fails 

9 to comply with the requirements of subsection 

10 (c) because of— 

11 ‘‘(i) failure of the State to issue per12 mits as required in subsection (c)(1)(E); 

13 ‘‘(ii) repeated issuance of permits by 

14 the State which do not meet the require15 ments of subsection (c); 

16 ‘‘(iii) failure of the State to comply 

17 with the public participation requirements 

18 of this section; or 

19 ‘‘(iv) failure of the State to implement 

20 corrective action requirements as described 

21 in subsection (c)(2)(B); and 

22 ‘‘(C) whether the enforcement of a State 

23 coal combustion residuals permit program fails 

24 to comply with the requirements of this section 

25 because of— 


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1 ‘‘(i) failure to act on violations of per2 mits, as identified by the State; or 

3 ‘‘(ii) repeated failure by the State to 

4 inspect or otherwise determine compliance 

5 pursuant to the process identified in sub6 section (b)(2)(B)(iii)(I). 

7 ‘‘(e) IMPLEMENTATION BY ADMINISTRATOR.— 

8 ‘‘(1) FEDERAL BACKSTOP AUTHORITY.—The 

9 Administrator shall implement a coal combustion re10 siduals permit program for a State only if— 

11 ‘‘(A) the Governor of the State notifies the 

12 Administrator under subsection (b)(1) that the 

13 State will not adopt and implement a permit 

14 program; 

15 ‘‘(B) the State has received a notice under 

16 subsection (d) and the Administrator deter17 mines, after providing a 30-day period for no18 tice and public comment, that the State has 

19 failed, by the deadline identified in the notice 

20 under subsection (d)(3)(B), to remedy the defi21 ciencies detailed in the notice under subsection 

22 (d)(3)(A); or 

23 ‘‘(C) the State informs the Administrator, 

24 in writing, that such State will no longer imple25 ment such a permit program. 


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1 ‘‘(2) REVIEW.—A State may obtain a review of 

2 a determination by the Administrator under this 

3 subsection as if the determination was a final regu4 lation for purposes of section 7006. 

5 ‘‘(3) OTHER STRUCTURES.—For structures 

6 that receive coal combustion residuals on or after 

7 the date of enactment of this section located on 

8 property within the exterior boundaries of a State 

9 that the State does not have authority or jurisdiction 

10 to regulate, the Administrator shall implement a coal 

11 combustion residuals permit program only for those 

12 structures. 

13 ‘‘(4) REQUIREMENTS.—If the Administrator 

14 implements a coal combustion residuals permit pro15 gram for a State under paragraph (1) or (3), the 

16 permit program shall consist of the requirements de17 scribed in subsection (c). 

18 ‘‘(5) ENFORCEMENT.— 

19 ‘‘(A) IN GENERAL.—If the Administrator 

20 implements a coal combustion residuals permit 

21 program for a State under paragraph (1)— 

22 ‘‘(i) the authorities referred to in sec23 tion 4005(c)(2)(A) shall apply with respect 

24 to coal combustion residuals and structures 

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1 menting the coal combustion residuals per2 mit program; and 

3 ‘‘(ii) the Administrator may use those 

4 authorities to inspect, gather information, 

5 and enforce the requirements of this sec6 tion in the State. 

7 ‘‘(B) OTHER STRUCTURES.—If the Admin8 istrator implements a coal combustion residuals 

9 permit program under paragraph (3)— 

10 ‘‘(i) the authorities referred to in sec11 tion 4005(c)(2)(A) shall apply with respect 

12 to coal combustion residuals and structures 

13 for which the Administrator is imple14 menting the coal combustion residuals per15 mit program; and 

16 ‘‘(ii) the Administrator may use those 

17 authorities to inspect, gather information, 

18 and enforce the requirements of this sec19 tion for the structures for which the Ad20 ministrator is implementing the coal com21 bustion residuals permit program. 

22 ‘‘(6) PUBLIC PARTICIPATION PROCESS.—If the 

23 Administrator implements a coal combustion residu24 als permit program for a State under this sub25 section, the Administrator shall provide a 30-day peVerDate Mar 15 2010 03:23 Aug 16, 2014 Jkt 039200 PO 00000 Frm 00108 Fmt 6652 Sfmt 6201 E:\BILLS\H5360.IH H5360

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1 riod for the public participation process required in 

2 paragraphs (1)(F)(i), (4)(C)(i), and (4)(E)(ii)(IV) of 

3 subsection (c). 

4 ‘‘(f) STATE CONTROL AFTER IMPLEMENTATION BY

5 ADMINISTRATOR.— 

6 ‘‘(1) STATE CONTROL.— 

7 ‘‘(A) NEW ADOPTION, OR RESUMPTION OF, 

8 AND IMPLEMENTATION BY STATE.—For a State 

9 for which the Administrator is implementing a 

10 coal combustion residuals permit program 

11 under subsection (e)(1)(A), or subsection 

12 (e)(1)(C), the State may adopt and implement 

13 such a permit program by— 

14 ‘‘(i) notifying the Administrator that 

15 the State will adopt and implement such a 

16 permit program; 

17 ‘‘(ii) not later than 6 months after the 

18 date of such notification, submitting to the 

19 Administrator a certification under sub20 section (b)(2); and 

21 ‘‘(iii) receiving from the Adminis22 trator— 

23 ‘‘(I) a determination, after pro24 viding a 30-day period for notice and 

25 public comment, that the State coal 


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1 combustion residuals permit program 

2 meets the requirements described in 

3 subsection (c); and 

4 ‘‘(II) a timeline for transition of 

5 control of the coal combustion residu6 als permit program. 

7 ‘‘(B) REMEDYING DEFICIENT PERMIT PRO8 GRAM.—For a State for which the Adminis9 trator is implementing a coal combustion re10 siduals permit program under subsection 

11 (e)(1)(B), the State may adopt and implement 

12 such a permit program by— 

13 ‘‘(i) remedying only the deficiencies 

14 detailed in the notice pursuant to sub15 section (d)(3)(A); and 

16 ‘‘(ii) receiving from the Adminis17 trator— 

18 ‘‘(I) a determination, after pro19 viding a 30-day period for notice and 

20 public comment, that the deficiencies 

21 detailed in such notice have been rem22 edied; and 

23 ‘‘(II) a timeline for transition of 

24 control of the coal combustion residu25 als permit program. 


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1 ‘‘(2) REVIEW OF DETERMINATION.— 

2 ‘‘(A) DETERMINATION REQUIRED.—The 

3 Administrator shall make a determination 

4 under paragraph (1) not later than 90 days 

5 after the date on which the State submits a cer6 tification under paragraph (1)(A)(ii), or notifies 

7 the Administrator that the deficiencies have 

8 been remedied pursuant to paragraph (1)(B)(i), 

9 as applicable. 

10 ‘‘(B) REVIEW.—A State may obtain a re11 view of a determination by the Administrator 

12 under paragraph (1) as if such determination 

13 was a final regulation for purposes of section 

14 7006. 

15 ‘‘(3) IMPLEMENTATION DURING TRANSITION.— 

16 ‘‘(A) EFFECT ON ACTIONS AND ORDERS.— 

17 Program requirements of, and actions taken or 

18 orders issued pursuant to, a coal combustion re19 siduals permit program shall remain in effect 

20 if— 

21 ‘‘(i) a State takes control of its coal 

22 combustion residuals permit program from 

23 the Administrator under paragraph (1); or 


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1 ‘‘(ii) the Administrator takes control 

2 of a coal combustion residuals permit pro3 gram from a State under subsection (e). 

4 ‘‘(B) CHANGE IN REQUIREMENTS.—Sub5 paragraph (A) shall apply to such program re6 quirements, actions, and orders until such time 

7 as— 

8 ‘‘(i) the implementing agency changes 

9 the requirements of the coal combustion 

10 residuals permit program with respect to 

11 the basis for the action or order; or 

12 ‘‘(ii) the State or the Administrator, 

13 whichever took the action or issued the 

14 order, certifies the completion of a correc15 tive action that is the subject of the action 

16 or order. 

17 ‘‘(4) SINGLE PERMIT PROGRAM.—If a State 

18 adopts and implements a coal combustion residuals 

19 permit program under this subsection, the Adminis20 trator shall cease to implement the permit program 

21 implemented under subsection (e)(1) for such State. 

22 ‘‘(g) EFFECT ON DETERMINATION UNDER 4005(c) 

23 OR 3006.—The Administrator shall not consider the im24 plementation of a coal combustion residuals permit pro25 gram by the Administrator under subsection (e) in making 


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1 a determination of approval for a permit program or other 

2 system of prior approval and conditions under section 

3 4005(c) or of authorization for a program under section 

4 3006. 

5 ‘‘(h) AUTHORITY.— 

6 ‘‘(1) STATE AUTHORITY.—Nothing in this sec7 tion shall preclude or deny any right of any State to 

8 adopt or enforce any regulation or requirement re9 specting coal combustion residuals that is more 

10 stringent or broader in scope than a regulation or 

11 requirement under this section. 

12 ‘‘(2) AUTHORITY OF THE ADMINISTRATOR.— 

13 ‘‘(A) IN GENERAL.—Except as provided in 

14 subsections (d) and (e) and section 6005, the 

15 Administrator shall, with respect to the regula16 tion of coal combustion residuals, defer to the 

17 States pursuant to this section. 

18 ‘‘(B) IMMINENT HAZARD.—Nothing in this 

19 section shall be construed as affecting the au20 thority of the Administrator under section 7003 

21 with respect to coal combustion residuals. 

22 ‘‘(C) ENFORCEMENT ASSISTANCE ONLY

23 UPON REQUEST.—Upon request from the head 

24 of a lead State agency that is implementing a 

25 coal combustion residuals permit program, the 


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1 Administrator may provide to such State agen2 cy only the enforcement assistance requested. 

3 ‘‘(D) CONCURRENT ENFORCEMENT.—Ex4 cept as provided in subparagraph (C), the Ad5 ministrator shall not have concurrent enforce6 ment authority when a State is implementing a 

7 coal combustion residuals permit program, in8 cluding during any period of interim operation 

9 described in subsection (c)(3)(D). 

10 ‘‘(E) OTHER AUTHORITY.—The Adminis11 trator shall not have authority to finalize the 

12 proposed rule published at pages 35128 

13 through 35264 of volume 75 of the Federal 

14 Register (June 21, 2010). 

15 ‘‘(F) OTHER RESPONSE AUTHORITY.— 

16 Nothing in this section shall be construed as af17 fecting the authority of the Administrator 

18 under the Comprehensive Environmental Re19 sponse, Compensation, and Liability Act of 

20 1980 (42 U.S.C. 9601 et seq.) with respect to 

21 coal combustion residuals. 

22 ‘‘(3) CITIZEN SUITS.—Nothing in this section 

23 shall be construed to affect the authority of a person 

24 to commence a civil action in accordance with sec25 tion 7002. 


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1 ‘‘(i) MINE RECLAMATION ACTIVITIES.—A coal com2 bustion residuals permit program implemented by the Ad3 ministrator under subsection (e) shall not apply to the uti4 lization, placement, and storage of coal combustion residu5 als at surface mining and reclamation operations. 

6 ‘‘(j) DEFINITIONS.—In this section: 

7 ‘‘(1) COAL COMBUSTION RESIDUALS.—The 

8 term ‘coal combustion residuals’ means— 

9 ‘‘(A) the solid wastes listed in section 

10 3001(b)(3)(A)(i), including recoverable mate11 rials from such wastes; 

12 ‘‘(B) coal combustion wastes that are co13 managed with wastes produced in conjunction 

14 with the combustion of coal, provided that such 

15 wastes are not segregated and disposed of sepa16 rately from the coal combustion wastes and 

17 comprise a relatively small proportion of the 

18 total wastes being disposed in the structure; 

19 ‘‘(C) fluidized bed combustion wastes; 

20 ‘‘(D) wastes from the co-burning of coal 

21 with non-hazardous secondary materials, pro22 vided that coal makes up at least 50 percent of 

23 the total fuel burned; and 


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1 ‘‘(E) wastes from the co-burning of coal 

2 with materials described in subparagraph (A) 

3 that are recovered from monofills. 

4 ‘‘(2) COAL COMBUSTION RESIDUALS PERMIT

5 PROGRAM.—The term ‘coal combustion residuals 

6 permit program’ means all of the authorities, activi7 ties, and procedures that comprise the system of 

8 prior approval and conditions implemented by or for 

9 a State to regulate the management and disposal of 

10 coal combustion residuals. 

11 ‘‘(3) CODE OF FEDERAL REGULATIONS.—The 

12 term ‘Code of Federal Regulations’ means the Code 

13 of Federal Regulations (as in effect on the date of 

14 enactment of this section) or any successor regula15 tions. 

16 ‘‘(4) IMPLEMENTING AGENCY.—The term ‘im17 plementing agency’ means the agency responsible for 

18 implementing a coal combustion residuals permit 

19 program for a State, which shall either be the lead 

20 State implementing agency identified under sub21 section (b)(2)(B)(i) or the Administrator pursuant 

22 to subsection (e). 

23 ‘‘(5) PERMIT; PRIOR APPROVAL AND CONDI24 TIONS.—Except as provided in subsections (b)(3) 

25 and (g), the terms ‘permit’ and ‘prior approval and 


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1 conditions’ mean any authorization, license, or equiv2 alent control document that incorporates the re3 quirements of subsection (c). 

4 ‘‘(6) REVISED CRITERIA.—The term ‘revised 

5 criteria’ means the criteria promulgated for munic6 ipal solid waste landfill units under section 4004(a) 

7 and under section 1008(a)(3), as revised under sec8 tion 4010(c). 

9 ‘‘(7) STRUCTURE.— 

10 ‘‘(A) IN GENERAL.—Except as provided in 

11 subparagraph (B), the term ‘structure’ means a 

12 landfill, surface impoundment, or other land13 based unit which receives, or is intended to re14 ceive, coal combustion residuals. 

15 ‘‘(B) DE MINIMIS RECEIPT.—The term 

16 ‘structure’ does not include any land-based unit 

17 that receives only de minimis quantities of coal 

18 combustion residuals if the presence of coal 

19 combustion residuals is incidental to the mate20 rial managed in the unit.’’. 

21 (b) CONFORMING AMENDMENT.—The table of con22 tents contained in section 1001 of the Solid Waste Dis23 posal Act is amended by inserting after the item relating 

24 to section 4010 the following: 

‘‘Sec. 4011. Management and disposal of coal combustion residuals.’’. 


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1 SEC. 2402. 2000 REGULATORY DETERMINATION. 

2 Nothing in this subtitle, or the amendments made by 

3 this subtitle, shall be construed to alter in any manner 

4 the Environmental Protection Agency’s regulatory deter5 mination entitled ‘‘Notice of Regulatory Determination on 

6 Wastes From the Combustion of Fossil Fuels’’, published 

7 at 65 Fed. Reg. 32214 (May 22, 2000), that the fossil 

8 fuel combustion wastes addressed in that determination 

9 do not warrant regulation under subtitle C of the Solid 

10 Waste Disposal Act (42 U.S.C. 6921 et seq.). 

11 SEC. 2403. TECHNICAL ASSISTANCE. 

12 Nothing in this subtitle, or the amendments made by 

13 this subtitle, shall be construed to affect the authority of 

14 a State to request, or the Administrator of the Environ15 mental Protection Agency to provide, technical assistance 

16 under the Solid Waste Disposal Act (42 U.S.C. 6901 et 

17 seq.). 

18 SEC. 2404. FEDERAL POWER ACT. 

19 Nothing in this subtitle, or the amendments made by 

20 this subtitle, shall be construed to affect the obligations 

21 of an owner or operator of a structure (as defined in sec22 tion 4011 of the Solid Waste Disposal Act, as added by 

23 this subtitle) under section 215(b)(1) of the Federal 

24 Power Act (16 U.S.C. 824o(b)(1)). 


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1 TITLE III—REDUCING 

2 FRIVOLOUS LEGAL COSTS 

3 Subtitle A—Lawsuit Abuse 

4 Reduction Act 

5 SEC. 3101. ATTORNEY ACCOUNTABILITY. 

6 (a) SANCTIONS UNDER RULE 11.—Rule 11(c) of the 

7 Federal Rules of Civil Procedure is amended— 

8 (1) in paragraph (1), by striking ‘‘may’’ and in9 serting ‘‘shall’’; 

10 (2) in paragraph (2), by striking ‘‘Rule 5’’ and 

11 all that follows through ‘‘motion.’’ and inserting 

12 ‘‘Rule 5.’’; and 

13 (3) in paragraph (4), by striking ‘‘situated’’ 

14 and all that follows through the end of the para15 graph and inserting ‘‘situated, and to compensate 

16 the parties that were injured by such conduct. Sub17 ject to the limitations in paragraph (5), the sanction 

18 shall consist of an order to pay to the party or par19 ties the amount of the reasonable expenses incurred 

20 as a direct result of the violation, including reason21 able attorneys’ fees and costs. The court may also 

22 impose additional appropriate sanctions, such as 

23 striking the pleadings, dismissing the suit, or other 

24 directives of a nonmonetary nature, or, if warranted 


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1 for effective deterrence, an order directing payment 

2 of a penalty into the court.’’. 

3 (b) RULE OF CONSTRUCTION.—Nothing in this sub4 title or an amendment made by this subtitle shall be con5 strued to bar or impede the assertion or development of 

6 new claims, defenses, or remedies under Federal, State, 

7 or local laws, including civil rights laws, or under the Con8 stitution of the United States. 

9 Subtitle B—Furthering Asbestos 

10 Claim Transparency in Bankruptcy 

11 SEC. 3201. AMENDMENTS. 

12 Section 524(g) of title 11, United States Code, is 

13 amended by adding at the end the following: 

14 ‘‘(8) A trust described in paragraph (2) shall, subject 

15 to section 107— 

16 ‘‘(A) file with the bankruptcy court, not later 

17 than 60 days after the end of every quarter, a report 

18 that shall be made available on the court’s public 

19 docket and with respect to such quarter— 

20 ‘‘(i) describes each demand the trust re21 ceived from, including the name and exposure 

22 history of, a claimant and the basis for any 

23 payment from the trust made to such claimant; 

24 and 


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1 ‘‘(ii) does not include any confidential med2 ical record or the claimant’s full social security 

3 number; and 

4 ‘‘(B) upon written request, and subject to pay5 ment (demanded at the option of the trust) for any 

6 reasonable cost incurred by the trust to comply with 

7 such request, provide in a timely manner any infor8 mation related to payment from, and demands for 

9 payment from, such trust, subject to appropriate 

10 protective orders, to any party to any action in law 

11 or equity if the subject of such action concerns li12 ability for asbestos exposure.’’. 

13 SEC. 3202. EFFECTIVE DATE; APPLICATION OF AMEND14 MENTS. 

15 (a) EFFECTIVE DATE.—Except as provided in sub16 section (b), this subtitle and the amendments made by this 

17 subtitle shall take effect on the date of the enactment of 

18 this subtitle. 

19 (b) APPLICATION OF AMENDMENTS.—The amend20 ments made by this subtitle shall apply with respect to 

21 cases commenced under title 11 of the United States Code 

22 before, on, or after the date of the enactment of this sub23 title. 


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1 Subtitle C—Innovation Act 

2 SEC. 3301. DEFINITIONS. 

3 In this subtitle: 

4 (1) DIRECTOR.—The term ‘‘Director’’ means 

5 the Under Secretary of Commerce for Intellectual 

6 Property and Director of the United States Patent 

7 and Trademark Office. 

8 (2) OFFICE.—The term ‘‘Office’’ means the 

9 United States Patent and Trademark Office. 

10 SEC. 3302. PATENT INFRINGEMENT ACTIONS. 

11 (a) PLEADING REQUIREMENTS.— 

12 (1) AMENDMENT.—Chapter 29 of title 35, 

13 United States Code, is amended by inserting after 

14 section 281 the following: 

15 ‘‘§ 281A. Pleading requirements for patent infringe16 ment actions 

17 ‘‘(a) PLEADING REQUIREMENTS.—Except as pro18 vided in subsection (b), in a civil action in which a party 

19 asserts a claim for relief arising under any Act of Con20 gress relating to patents, a party alleging infringement 

21 shall include in the initial complaint, counterclaim, or 

22 cross-claim for patent infringement, unless the informa23 tion is not reasonably accessible to such party, the fol24 lowing: 


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1 ‘‘(1) An identification of each patent allegedly 

2 infringed. 

3 ‘‘(2) An identification of each claim of each pat4 ent identified under paragraph (1) that is allegedly 

5 infringed. 

6 ‘‘(3) For each claim identified under paragraph 

7 (2), an identification of each accused process, ma8 chine, manufacture, or composition of matter (re9 ferred to in this section as an ‘accused instrumen10 tality’) alleged to infringe the claim. 

11 ‘‘(4) For each accused instrumentality identi12 fied under paragraph (3), an identification with par13 ticularity, if known, of— 

14 ‘‘(A) the name or model number of each 

15 accused instrumentality; or 

16 ‘‘(B) if there is no name or model number, 

17 a description of each accused instrumentality. 

18 ‘‘(5) For each accused instrumentality identi19 fied under paragraph (3), a clear and concise state20 ment of— 

21 ‘‘(A) where each element of each claim 

22 identified under paragraph (2) is found within 

23 the accused instrumentality; and 

24 ‘‘(B) with detailed specificity, how each 

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1 graph (2) is met by the accused instrumen2 tality. 

3 ‘‘(6) For each claim of indirect infringement, a 

4 description of the acts of the alleged indirect in5 fringer that contribute to or are inducing the direct 

6 infringement. 

7 ‘‘(7) A description of the authority of the party 

8 alleging infringement to assert each patent identified 

9 under paragraph (1) and of the grounds for the 

10 court’s jurisdiction. 

11 ‘‘(8) A clear and concise description of the prin12 cipal business, if any, of the party alleging infringe13 ment. 

14 ‘‘(9) A list of each complaint filed, of which the 

15 party alleging infringement has knowledge, that as16 serts or asserted any of the patents identified under 

17 paragraph (1). 

18 ‘‘(10) For each patent identified under para19 graph (1), whether a standard-setting body has spe20 cifically declared such patent to be essential, poten21 tially essential, or having potential to become essen22 tial to that standard-setting body, and whether the 

23 United States Government or a foreign government 

24 has imposed specific licensing requirements with re25 spect to such patent. 


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1 ‘‘(b) INFORMATION NOT READILY ACCESSIBLE.—If 

2 information required to be disclosed under subsection (a) 

3 is not readily accessible to a party, that information may 

4 instead be generally described, along with an explanation 

5 of why such undisclosed information was not readily acces6 sible, and of any efforts made by such party to access such 

7 information. 

8 ‘‘(c) CONFIDENTIAL INFORMATION.—A party re9 quired to disclose information described under subsection 

10 (a) may file, under seal, information believed to be con11 fidential, with a motion setting forth good cause for such 

12 sealing. If such motion is denied by the court, the party 

13 may seek to file an amended complaint. 

14 ‘‘(d) EXEMPTION.—A civil action that includes a 

15 claim for relief arising under section 271(e)(2) shall not 

16 be subject to the requirements of subsection (a).’’. 

17 (2) CONFORMING AMENDMENT.—The table of 

18 sections for chapter 29 of title 35, United States 

19 Code, is amended by inserting after the item relating 

20 to section 281 the following new item: 

‘‘281A. Pleading requirements for patent infringement actions.’’. 

21 (b) FEES AND OTHER EXPENSES.— 

22 (1) AMENDMENT.—Section 285 of title 35, 

23 United States Code, is amended to read as follows: 


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1 ‘‘§ 285. Fees and other expenses 

2 ‘‘(a) AWARD.—The court shall award, to a prevailing 

3 party, reasonable fees and other expenses incurred by that 

4 party in connection with a civil action in which any party 

5 asserts a claim for relief arising under any Act of Con6 gress relating to patents, unless the court finds that the 

7 position and conduct of the nonprevailing party or parties 

8 were reasonably justified in law and fact or that special 

9 circumstances (such as severe economic hardship to a 

10 named inventor) make an award unjust. 

11 ‘‘(b) CERTIFICATION AND RECOVERY.—Upon motion 

12 of any party to the action, the court shall require another 

13 party to the action to certify whether or not the other 

14 party will be able to pay an award of fees and other ex15 penses if such an award is made under subsection (a). If 

16 a nonprevailing party is unable to pay an award that is 

17 made against it under subsection (a), the court may make 

18 a party that has been joined under section 299(d) with 

19 respect to such party liable for the unsatisfied portion of 

20 the award. 

21 ‘‘(c) COVENANT NOT TO SUE.—A party to a civil ac22 tion that asserts a claim for relief arising under any Act 

23 of Congress relating to patents against another party, and 

24 that subsequently unilaterally extends to such other party 

25 a covenant not to sue for infringement with respect to the 

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1 vailing party (and the other party the prevailing party) 

2 for purposes of this section, unless the party asserting 

3 such claim would have been entitled, at the time that such 

4 covenant was extended, to voluntarily dismiss the action 

5 or claim without a court order under Rule 41 of the Fed6 eral Rules of Civil Procedure.’’. 

7 (2) CONFORMING AMENDMENT AND AMEND8 MENT.— 

9 (A) CONFORMING AMENDMENT.—The item 

10 relating to section 285 of the table of sections 

11 for chapter 29 of title 35, United States Code, 

12 is amended to read as follows: 

‘‘285. Fees and other expenses.’’. 

13 (B) AMENDMENT.—Section 273 of title 

14 35, United States Code, is amended by striking 

15 subsections (f) and (g). 

16 (3) EFFECTIVE DATE.—The amendments made 

17 by this subsection shall take effect on the date of the 

18 enactment of this Act and shall apply to any action 

19 for which a complaint is filed on or after the first 

20 day of the 6-month period ending on that effective 

21 date. 

22 (c) JOINDER OF INTERESTED PARTIES.—Section 

23 299 of title 35, United States Code, is amended by adding 

24 at the end the following new subsection: 

25 ‘‘(d) JOINDER OF INTERESTED PARTIES.— 


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1 ‘‘(1) JOINDER.—In a civil action arising under 

2 any Act of Congress relating to patents in which 

3 fees and other expenses have been awarded under 

4 section 285 to a prevailing party defending against 

5 an allegation of infringement of a patent claim, and 

6 in which the nonprevailing party alleging infringe7 ment is unable to pay the award of fees and other 

8 expenses, the court shall grant a motion by the pre9 vailing party to join an interested party if such pre10 vailing party shows that the nonprevailing party has 

11 no substantial interest in the subject matter at issue 

12 other than asserting such patent claim in litigation. 

13 ‘‘(2) LIMITATION ON JOINDER.— 

14 ‘‘(A) DISCRETIONARY DENIAL OF MO15 TION.—The court may deny a motion to join an 

16 interested party under paragraph (1) if— 

17 ‘‘(i) the interested party is not subject 

18 to service of process; or 

19 ‘‘(ii) joinder under paragraph (1) 

20 would deprive the court of subject matter 

21 jurisdiction or make venue improper. 

22 ‘‘(B) REQUIRED DENIAL OF MOTION.—The 

23 court shall deny a motion to join an interested 

24 party under paragraph (1) if— 


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1 ‘‘(i) the interested party did not time2 ly receive the notice required by paragraph 

3 (3); or 

4 ‘‘(ii) within 30 days after receiving 

5 the notice required by paragraph (3), the 

6 interested party renounces, in writing and 

7 with notice to the court and the parties to 

8 the action, any ownership, right, or direct 

9 financial interest (as described in para10 graph (4)) that the interested party has in 

11 the patent or patents at issue. 

12 ‘‘(3) NOTICE REQUIREMENT.—An interested 

13 party may not be joined under paragraph (1) unless 

14 it has been provided actual notice, within 30 days 

15 after the date on which it has been identified in the 

16 initial disclosure provided under section 290(b), that 

17 it has been so identified and that such party may 

18 therefore be an interested party subject to joinder 

19 under this subsection. Such notice shall be provided 

20 by the party who subsequently moves to join the in21 terested party under paragraph (1), and shall in22 clude language that— 

23 ‘‘(A) identifies the action, the parties 

24 thereto, the patent or patents at issue, and the 


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1 pleading or other paper that identified the 

2 party under section 290(b); and 

3 ‘‘(B) informs the party that it may be 

4 joined in the action and made subject to paying 

5 an award of fees and other expenses under sec6 tion 285(b) if— 

7 ‘‘(i) fees and other expenses are 

8 awarded in the action against the party al9 leging infringement of the patent or pat10 ents at issue under section 285(a); 

11 ‘‘(ii) the party alleging infringement is 

12 unable to pay the award of fees and other 

13 expenses; 

14 ‘‘(iii) the party receiving notice under 

15 this paragraph is determined by the court 

16 to be an interested party; and 

17 ‘‘(iv) the party receiving notice under 

18 this paragraph has not, within 30 days 

19 after receiving such notice, renounced in 

20 writing, and with notice to the court and 

21 the parties to the action, any ownership, 

22 right, or direct financial interest (as de23 scribed in paragraph (4)) that the inter24 ested party has in the patent or patents at 

25 issue. 


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1 ‘‘(4) INTERESTED PARTY DEFINED.—In this 

2 subsection, the term ‘interested party’ means a per3 son, other than the party alleging infringement, 

4 that— 

5 ‘‘(A) is an assignee of the patent or pat6 ents at issue; 

7 ‘‘(B) has a right, including a contingent 

8 right, to enforce or sublicense the patent or pat9 ents at issue; or 

10 ‘‘(C) has a direct financial interest in the 

11 patent or patents at issue, including the right 

12 to any part of an award of damages or any part 

13 of licensing revenue, except that a person with 

14 a direct financial interest does not include— 

15 ‘‘(i) an attorney or law firm providing 

16 legal representation in the civil action de17 scribed in paragraph (1) if the sole basis 

18 for the financial interest of the attorney or 

19 law firm in the patent or patents at issue 

20 arises from the attorney or law firm’s re21 ceipt of compensation reasonably related to 

22 the provision of the legal representation; or 

23 ‘‘(ii) a person whose sole financial in24 terest in the patent or patents at issue is 

25 ownership of an equity interest in the 


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1 party alleging infringement, unless such 

2 person also has the right or ability to influ3 ence, direct, or control the civil action.’’. 

4 (d) DISCOVERY LIMITS.— 

5 (1) AMENDMENT.—Chapter 29 of title 35, 

6 United States Code, is amended by adding at the 

7 end the following new section: 

8 ‘‘§ 299A. Discovery in patent infringement action 

9 ‘‘(a) DISCOVERY IN PATENT INFRINGEMENT AC10 TION.—Except as provided in subsections (b) and (c), in 

11 a civil action arising under any Act of Congress relating 

12 to patents, if the court determines that a ruling relating 

13 to the construction of terms used in a patent claim as14 serted in the complaint is required, discovery shall be lim15 ited, until such ruling is issued, to information necessary 

16 for the court to determine the meaning of the terms used 

17 in the patent claim, including any interpretation of those 

18 terms used to support the claim of infringement. 

19 ‘‘(b) DISCRETION TO EXPAND SCOPE OF DIS20 COVERY.— 

21 ‘‘(1) TIMELY RESOLUTION OF ACTIONS.—In the 

22 case of an action under any provision of Federal law 

23 (including an action that includes a claim for relief 

24 arising under section 271(e)), for which resolution 

25 within a specified period of time of a civil action 


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1 arising under any Act of Congress relating to pat2 ents will necessarily affect the rights of a party with 

3 respect to the patent, the court shall permit dis4 covery, in addition to the discovery authorized under 

5 subsection (a), before the ruling described in sub6 section (a) is issued as necessary to ensure timely 

7 resolution of the action. 

8 ‘‘(2) RESOLUTION OF MOTIONS.—When nec9 essary to resolve a motion properly raised by a party 

10 before a ruling relating to the construction of terms 

11 described in subsection (a) is issued, the court may 

12 allow limited discovery in addition to the discovery 

13 authorized under subsection (a) as necessary to re14 solve the motion. 

15 ‘‘(3) SPECIAL CIRCUMSTANCES.—In special cir16 cumstances that would make denial of discovery a 

17 manifest injustice, the court may permit discovery, 

18 in addition to the discovery authorized under sub19 section (a), as necessary to prevent the manifest in20 justice. 

21 ‘‘(4) ACTIONS SEEKING RELIEF BASED ON COM22 PETITIVE HARM.—The limitation on discovery pro23 vided under subsection (a) shall not apply to an ac24 tion seeking a preliminary injunction to redress 

25 harm arising from the use, sale, or offer for sale of 


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1 any allegedly infringing instrumentality that com2 petes with a product sold or offered for sale, or a 

3 process used in manufacture, by a party alleging in4 fringement. 

5 ‘‘(c) EXCLUSION FROM DISCOVERY LIMITATION.— 

6 The parties may voluntarily consent to be excluded, in 

7 whole or in part, from the limitation on discovery provided 

8 under subsection (a) if at least one plaintiff and one de9 fendant enter into a signed stipulation, to be filed with 

10 and signed by the court. With regard to any discovery ex11 cluded from the requirements of subsection (a) under the 

12 signed stipulation, with respect to such parties, such dis13 covery shall proceed according to the Federal Rules of 

14 Civil Procedure.’’. 

15 (2) CONFORMING AMENDMENT.—The table of 

16 sections for chapter 29 of title 35, United States 

17 Code, is amended by adding at the end the following 

18 new item: 

‘‘299A. Discovery in patent infringement action.’’. 

19 (e) SENSE OF CONGRESS.—It is the sense of Con20 gress that it is an abuse of the patent system and against 

21 public policy for a party to send out purposely evasive de22 mand letters to end users alleging patent infringement. 

23 Demand letters sent should, at the least, include basic in24 formation about the patent in question, what is being in25 fringed, and how it is being infringed. Any actions or litiVerDate Mar 15 2010 03:23 Aug 16, 2014 Jkt 039200 PO 00000 Frm 00134 Fmt 6652 Sfmt 6201 E:\BILLS\H5360.IH H5360

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1 gation that stem from these types of purposely evasive de2 mand letters to end users should be considered a fraudu3 lent or deceptive practice and an exceptional circumstance 

4 when considering whether the litigation is abusive. 

5 (f) DEMAND LETTERS.—Section 284 of title 35, 

6 United States Code, is amended— 

7 (1) in the first undesignated paragraph, by 

8 striking ‘‘Upon finding’’ and inserting ‘‘(a) IN GEN9 ERAL.—Upon finding’’; 

10 (2) in the second undesignated paragraph, by 

11 striking ‘‘When the damages’’ and inserting ‘‘(b) AS12 SESSMENT BY COURT; TREBLE DAMAGES.—When 

13 the damages’’; 

14 (3) by inserting after subsection (b), as des15 ignated by paragraph (2) of this subsection, the fol16 lowing: 

17 ‘‘(c) WILLFUL INFRINGEMENT.—A claimant seeking 

18 to establish willful infringement may not rely on evidence 

19 of pre-suit notification of infringement unless that notifi20 cation identifies with particularity the asserted patent, 

21 identifies the product or process accused, identifies the ul22 timate parent entity of the claimant, and explains with 

23 particularity, to the extent possible following a reasonable 

24 investigation or inquiry, how the product or process in25 fringes one or more claims of the patent.’’; and 


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1 (4) in the last undesignated paragraph, by 

2 striking ‘‘The court’’ and inserting ‘‘(d) EXPERT

3 TESTIMONY.—The court’’. 

4 (g) EFFECTIVE DATE.—Except as otherwise provided 

5 in this section, the amendments made by this section shall 

6 take effect on the date of the enactment of this Act and 

7 shall apply to any action for which a complaint is filed 

8 on or after that date. 

9 SEC. 3303. TRANSPARENCY OF PATENT OWNERSHIP. 

10 (a) AMENDMENTS.—Section 290 of title 35, United 

11 States Code, is amended— 

12 (1) in the heading, by striking ‘‘suits’’ and in13 serting ‘‘suits; disclosure of interests’’; 

14 (2) by striking ‘‘The clerks’’ and inserting ‘‘(a) 

15 NOTICE OF PATENT SUITS.—The clerks’’; and 

16 (3) by adding at the end the following new sub17 sections: 

18 ‘‘(b) INITIAL DISCLOSURE.— 

19 ‘‘(1) IN GENERAL.—Except as provided in para20 graph (2), upon the filing of an initial complaint for 

21 patent infringement, the plaintiff shall disclose to 

22 the Patent and Trademark Office, the court, and 

23 each adverse party the identity of each of the fol24 lowing: 


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1 ‘‘(A) The assignee of the patent or patents 

2 at issue. 

3 ‘‘(B) Any entity with a right to sublicense 

4 or enforce the patent or patents at issue. 

5 ‘‘(C) Any entity, other than the plaintiff, 

6 that the plaintiff knows to have a financial in7 terest in the patent or patents at issue or the 

8 plaintiff. 

9 ‘‘(D) The ultimate parent entity of any as10 signee identified under subparagraph (A) and 

11 any entity identified under subparagraph (B) or 

12 (C). 

13 ‘‘(2) EXEMPTION.—The requirements of para14 graph (1) shall not apply with respect to a civil ac15 tion filed under subsection (a) that includes a cause 

16 of action described under section 271(e)(2). 

17 ‘‘(c) DISCLOSURE COMPLIANCE.— 

18 ‘‘(1) PUBLICLY TRADED.—For purposes of sub19 section (b)(1)(C), if the financial interest is held by 

20 a corporation traded on a public stock exchange, an 

21 identification of the name of the corporation and the 

22 public exchange listing shall satisfy the disclosure re23 quirement. 

24 ‘‘(2) NOT PUBLICLY TRADED.—For purposes of 

25 subsection (b)(1)(C), if the financial interest is not 


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1 held by a publicly traded corporation, the disclosure 

2 shall satisfy the disclosure requirement if the infor3 mation identifies— 

4 ‘‘(A) in the case of a partnership, the 

5 name of the partnership and the name and cor6 respondence address of each partner or other 

7 entity that holds more than a 5-percent share 

8 of that partnership; 

9 ‘‘(B) in the case of a corporation, the 

10 name of the corporation, the location of incor11 poration, the address of the principal place of 

12 business, and the name of each officer of the 

13 corporation; and 

14 ‘‘(C) for each individual, the name and 

15 correspondence address of that individual. 

16 ‘‘(d) ONGOING DUTY OF DISCLOSURE TO THE PAT17 ENT AND TRADEMARK OFFICE.— 

18 ‘‘(1) IN GENERAL.—A plaintiff required to sub19 mit information under subsection (b) or a subse20 quent owner of the patent or patents at issue shall, 

21 not later than 90 days after any change in the as22 signee of the patent or patents at issue or an entity 

23 described under subparagraph (B) or (D) of sub24 section (b)(1), submit to the Patent and Trademark 


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1 Office the updated identification of such assignee or 

2 entity. 

3 ‘‘(2) FAILURE TO COMPLY.—With respect to a 

4 patent for which the requirement of paragraph (1) 

5 has not been met— 

6 ‘‘(A) the plaintiff or subsequent owner 

7 shall not be entitled to recover reasonable fees 

8 and other expenses under section 285 or in9 creased damages under section 284 with respect 

10 to infringing activities taking place during any 

11 period of noncompliance with paragraph (1), 

12 unless the denial of such damages or fees would 

13 be manifestly unjust; and 

14 ‘‘(B) the court shall award to a prevailing 

15 party accused of infringement reasonable fees 

16 and other expenses under section 285 that are 

17 incurred to discover the updated assignee or en18 tity described under paragraph (1), unless such 

19 sanctions would be unjust. 

20 ‘‘(e) DEFINITIONS.—In this section: 

21 ‘‘(1) FINANCIAL INTEREST.—The term ‘finan22 cial interest’— 

23 ‘‘(A) means— 

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1 ceeds related to the assertion of the patent 

2 or patents, including a fixed or variable 

3 portion of such proceeds; and 

4 ‘‘(ii) with regard to the plaintiff, di5 rect or indirect ownership or control by a 

6 person of more than 5 percent of such 

7 plaintiff; and 

8 ‘‘(B) does not mean— 

9 ‘‘(i) ownership of shares or other in10 terests in a mutual or common investment 

11 fund, unless the owner of such interest 

12 participates in the management of such 

13 fund; or 

14 ‘‘(ii) the proprietary interest of a pol15 icyholder in a mutual insurance company 

16 or of a depositor in a mutual savings asso17 ciation, or a similar proprietary interest, 

18 unless the outcome of the proceeding could 

19 substantially affect the value of such inter20 est. 

21 ‘‘(2) PROCEEDING.—The term ‘proceeding’ 

22 means all stages of a civil action, including pretrial 

23 and trial proceedings and appellate review. 

24 ‘‘(3) ULTIMATE PARENT ENTITY.— 


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1 ‘‘(A) IN GENERAL.—Except as provided in 

2 subparagraph (B), the term ‘ultimate parent 

3 entity’ has the meaning given such term in sec4 tion 801.1(a)(3) of title 16, Code of Federal 

5 Regulations, or any successor regulation. 

6 ‘‘(B) MODIFICATION OF DEFINITION.—The 

7 Director may modify the definition of ‘ultimate 

8 parent entity’ by regulation.’’. 

9 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

10 The item relating to section 290 in the table of sections 

11 for chapter 29 of title 35, United States Code, is amended 

12 to read as follows: 

‘‘290. Notice of patent suits; disclosure of interests.’’. 

13 (c) REGULATIONS.—The Director may promulgate 

14 such regulations as are necessary to establish a registra15 tion fee in an amount sufficient to recover the estimated 

16 costs of administering subsections (b) through (e) of sec17 tion 290 of title 35, United States Code, as added by sub18 section (a), to facilitate the collection and maintenance of 

19 the information required by such subsections, and to en20 sure the timely disclosure of such information to the pub21 lic. 

22 (d) EFFECTIVE DATE.—The amendments made by 

23 this section shall take effect upon the expiration of the 

24 6-month period beginning on the date of the enactment 


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1 of this Act and shall apply to any action for which a com2 plaint is filed on or after such effective date. 

3 SEC. 3304. CUSTOMER-SUIT EXCEPTION. 

4 (a) AMENDMENT.—Section 296 of title 35, United 

5 States Code, is amended to read as follows: 

6 ‘‘§ 296. Stay of action against customer 

7 ‘‘(a) STAY OF ACTION AGAINST CUSTOMER.—Except 

8 as provided in subsection (d), in any civil action arising 

9 under any Act of Congress relating to patents, the court 

10 shall grant a motion to stay at least the portion of the 

11 action against a covered customer related to infringement 

12 of a patent involving a covered product or process if the 

13 following requirements are met: 

14 ‘‘(1) The covered manufacturer and the covered 

15 customer consent in writing to the stay. 

16 ‘‘(2) The covered manufacturer is a party to 

17 the action or to a separate action involving the same 

18 patent or patents related to the same covered prod19 uct or process. 

20 ‘‘(3) The covered customer agrees to be bound 

21 by any issues that the covered customer has in com22 mon with the covered manufacturer and are finally 

23 decided as to the covered manufacturer in an action 

24 described in paragraph (2). 


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1 ‘‘(4) The motion is filed after the first pleading 

2 in the action but not later than the later of— 

3 ‘‘(A) the 120th day after the date on which 

4 the first pleading in the action is served that 

5 specifically identifies the covered product or 

6 process as a basis for the covered customer’s al7 leged infringement of the patent and that spe8 cifically identifies how the covered product or 

9 process is alleged to infringe the patent; or 

10 ‘‘(B) the date on which the first scheduling 

11 order in the case is entered. 

12 ‘‘(b) APPLICABILITY OF STAY.—A stay issued under 

13 subsection (a) shall apply only to the patents, products, 

14 systems, or components accused of infringement in the ac15 tion. 

16 ‘‘(c) LIFT OF STAY.— 

17 ‘‘(1) IN GENERAL.—A stay entered under this 

18 section may be lifted upon grant of a motion based 

19 on a showing that— 

20 ‘‘(A) the action involving the covered man21 ufacturer will not resolve a major issue in suit 

22 against the covered customer; or 

23 ‘‘(B) the stay unreasonably prejudices and 

24 would be manifestly unjust to the party seeking 

25 to lift the stay. 


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1 ‘‘(2) SEPARATE MANUFACTURER ACTION IN2 VOLVED.—In the case of a stay entered based on the 

3 participation of the covered manufacturer in a sepa4 rate action involving the same patent or patents re5 lated to the same covered product or process, a mo6 tion under this subsection may only be made if the 

7 court in such separate action determines the show8 ing required under paragraph (1) has been met. 

9 ‘‘(d) EXEMPTION.—This section shall not apply to an 

10 action that includes a cause of action described under sec11 tion 271(e)(2). 

12 ‘‘(e) CONSENT JUDGMENT.—If, following the grant 

13 of a motion to stay under this section, the covered manu14 facturer seeks or consents to entry of a consent judgment 

15 relating to one or more of the common issues that gave 

16 rise to the stay, or declines to prosecute through appeal 

17 a final decision as to one or more of the common issues 

18 that gave rise to the stay, the court may, upon grant of 

19 a motion, determine that such consent judgment or 

20 unappealed final decision shall not be binding on the cov21 ered customer with respect to one or more of such common 

22 issues based on a showing that such an outcome would 

23 unreasonably prejudice and be manifestly unjust to the 

24 covered customer in light of the circumstances of the case. 


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1 ‘‘(f) RULE OF CONSTRUCTION.—Nothing in this sec2 tion shall be construed to limit the ability of a court to 

3 grant any stay, expand any stay granted under this sec4 tion, or grant any motion to intervene, if otherwise per5 mitted by law. 

6 ‘‘(g) DEFINITIONS.—In this section: 

7 ‘‘(1) COVERED CUSTOMER.—The term ‘covered 

8 customer’ means a party accused of infringing a pat9 ent or patents in dispute based on a covered product 

10 or process. 

11 ‘‘(2) COVERED MANUFACTURER.—The term 

12 ‘covered manufacturer’ means a person that manu13 factures or supplies, or causes the manufacture or 

14 supply of, a covered product or process or a relevant 

15 part thereof. 

16 ‘‘(3) COVERED PRODUCT OR PROCESS.—The 

17 term ‘covered product or process’ means a product, 

18 process, system, service, component, material, or ap19 paratus, or relevant part thereof, that— 

20 ‘‘(A) is alleged to infringe the patent or 

21 patents in dispute; or 

22 ‘‘(B) implements a process alleged to in23 fringe the patent or patents in dispute.’’. 

24 (b) CONFORMING AMENDMENT.—The table of sec25 tions for chapter 29 of title 35, United States Code, is 


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1 amended by striking the item relating to section 296 and 

2 inserting the following: 

‘‘296. Stay of action against customer.’’. 

3 (c) EFFECTIVE DATE.—The amendments made by 

4 this section shall take effect on the date of the enactment 

5 of this Act and shall apply to any action for which a com6 plaint is filed on or after the first day of the 30-day period 

7 that ends on that date. 

8 SEC. 3305. PROCEDURES AND PRACTICES TO IMPLEMENT 

9 RECOMMENDATIONS OF THE JUDICIAL CON10 FERENCE. 

11 (a) JUDICIAL CONFERENCE RULES AND PROCE12 DURES ON DISCOVERY BURDENS AND COSTS.— 

13 (1) RULES AND PROCEDURES.—The Judicial 

14 Conference of the United States, using existing re15 sources, shall develop rules and procedures to imple16 ment the issues and proposals described in para17 graph (2) to address the asymmetries in discovery 

18 burdens and costs in any civil action arising under 

19 any Act of Congress relating to patents. Such rules 

20 and procedures shall include how and when payment 

21 for document discovery in addition to the discovery 

22 of core documentary evidence is to occur, and what 

23 information must be presented to demonstrate finan24 cial capacity before permitting document discovery 


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1 in addition to the discovery of core documentary evi2 dence. 

3 (2) RULES AND PROCEDURES TO BE CONSID4 ERED.—The rules and procedures required under 

5 paragraph (1) should address each of the following 

6 issues and proposals: 

7 (A) DISCOVERY OF CORE DOCUMENTARY

8 EVIDENCE.—Whether and to what extent each 

9 party to the action is entitled to receive core 

10 documentary evidence and shall be responsible 

11 for the costs of producing core documentary 

12 evidence within the possession or control of 

13 each such party, and whether and to what ex14 tent each party to the action may seek non15 documentary discovery as otherwise provided in 

16 the Federal Rules of Civil Procedure. 

17 (B) ELECTRONIC COMMUNICATION.—If the 

18 parties determine that the discovery of elec19 tronic communication is appropriate, whether 

20 such discovery shall occur after the parties have 

21 exchanged initial disclosures and core documen22 tary evidence and whether such discovery shall 

23 be in accordance with the following: 

24 (i) Any request for the production of 

25 electronic communication shall be specific 


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1 and may not be a general request for the 

2 production of information relating to a 

3 product or business. 

4 (ii) Each request shall identify the 

5 custodian of the information requested, the 

6 search terms, and a timeframe. The par7 ties shall cooperate to identify the proper 

8 custodians, the proper search terms, and 

9 the proper timeframe. 

10 (iii) A party may not submit produc11 tion requests to more than 5 custodians, 

12 unless the parties jointly agree to modify 

13 the number of production requests without 

14 leave of the court. 

15 (iv) The court may consider contested 

16 requests for up to 5 additional custodians 

17 per producing party, upon a showing of a 

18 distinct need based on the size, complexity, 

19 and issues of the case. 

20 (v) If a party requests the discovery 

21 of electronic communication for additional 

22 custodians beyond the limits agreed to by 

23 the parties or granted by the court, the re24 questing party shall bear all reasonable 

25 costs caused by such additional discovery. 


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1 (C) ADDITIONAL DOCUMENT DISCOVERY.— 

2 Whether the following should apply: 

3 (i) IN GENERAL.—Each party to the 

4 action may seek any additional document 

5 discovery otherwise permitted under the 

6 Federal Rules of Civil Procedure, if such 

7 party bears the reasonable costs, including 

8 reasonable attorney’s fees, of the additional 

9 document discovery. 

10 (ii) REQUIREMENTS FOR ADDITIONAL

11 DOCUMENT DISCOVERY.—Unless the par12 ties mutually agree otherwise, no party 

13 may be permitted additional document dis14 covery unless such a party posts a bond, or 

15 provides other security, in an amount suffi16 cient to cover the expected costs of such 

17 additional document discovery, or makes a 

18 showing to the court that such party has 

19 the financial capacity to pay the costs of 

20 such additional document discovery. 

21 (iii) LIMITS ON ADDITIONAL DOCU22 MENT DISCOVERY.—A court, upon motion, 

23 may determine that a request for addi24 tional document discovery is excessive, ir25 relevant, or otherwise abusive and may set 


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1 limits on such additional document dis2 covery. 

3 (iv) GOOD CAUSE MODIFICATION.—A 

4 court, upon motion and for good cause 

5 shown, may modify the requirements of 

6 subparagraphs (A) and (B) and any defini7 tion under paragraph (3). Not later than 

8 30 days after the pretrial conference under 

9 Rule 16 of the Federal Rules of Civil Pro10 cedure, the parties shall jointly submit any 

11 proposed modifications of the requirements 

12 of subparagraphs (A) and (B) and any def13 inition under paragraph (3), unless the 

14 parties do not agree, in which case each 

15 party shall submit any proposed modifica16 tion of such party and a summary of the 

17 disagreement over the modification. 

18 (v) COMPUTER CODE.—A court, upon 

19 motion and for good cause shown, may de20 termine that computer code should be in21 cluded in the discovery of core documen22 tary evidence. The discovery of computer 

23 code shall occur after the parties have ex24 changed initial disclosures and other core 

25 documentary evidence. 


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1 (D) DISCOVERY SEQUENCE AND SCOPE.— 

2 Whether the parties shall discuss and address 

3 in the written report filed pursuant to Rule 

4 26(f) of the Federal Rules of Civil Procedure 

5 the views and proposals of each party on the 

6 following: 

7 (i) When the discovery of core docu8 mentary evidence should be completed. 

9 (ii) Whether additional document dis10 covery will be sought under subparagraph 

11 (C). 

12 (iii) Any issues about infringement, 

13 invalidity, or damages that, if resolved be14 fore the additional discovery described in 

15 subparagraph (C) commences, might sim16 plify or streamline the case, including the 

17 identification of any terms or phrases re18 lating to any patent claim at issue to be 

19 construed by the court and whether the 

20 early construction of any of those terms or 

21 phrases would be helpful. 

22 (3) DEFINITIONS.—In this subsection: 

23 (A) CORE DOCUMENTARY EVIDENCE.—The 

24 term ‘‘core documentary evidence’’— 

25 (i) includes— 


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1 (I) documents relating to the 

2 conception of, reduction to practice of, 

3 and application for, the patent or pat4 ents at issue; 

5 (II) documents sufficient to show 

6 the technical operation of the product 

7 or process identified in the complaint 

8 as infringing the patent or patents at 

9 issue; 

10 (III) documents relating to po11 tentially invalidating prior art; 

12 (IV) documents relating to any 

13 licensing of, or other transfer of rights 

14 to, the patent or patents at issue be15 fore the date on which the complaint 

16 is filed; 

17 (V) documents sufficient to show 

18 profit attributable to the claimed in19 vention of the patent or patents at 

20 issue; 

21 (VI) documents relating to any 

22 knowledge by the accused infringer of 

23 the patent or patents at issue before 

24 the date on which the complaint is 

25 filed; 


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1 (VII) documents relating to any 

2 knowledge by the patentee of infringe3 ment of the patent or patents at issue 

4 before the date on which the com5 plaint is filed; 

6 (VIII) documents relating to any 

7 licensing term or pricing commitment 

8 to which the patent or patents may be 

9 subject through any agency or stand10 ard-setting body; and 

11 (IX) documents sufficient to 

12 show any marking or other notice pro13 vided of the patent or patents at 

14 issue; and 

15 (ii) does not include computer code, 

16 except as specified in paragraph (2)(C)(v). 

17 (B) ELECTRONIC COMMUNICATION.—The 

18 term ‘‘electronic communication’’ means any 

19 form of electronic communication, including 

20 email, text message, or instant message. 

21 (4) IMPLEMENTATION BY THE DISTRICT

22 COURTS.—Not later than 6 months after the date on 

23 which the Judicial Conference has developed the 

24 rules and procedures required by this subsection, 

25 each United States district court and the United 


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1 States Court of Federal Claims shall revise the ap2 plicable local rules for such court to implement such 

3 rules and procedures. 

4 (5) AUTHORITY FOR JUDICIAL CONFERENCE TO

5 REVIEW AND MODIFY.— 

6 (A) STUDY OF EFFICACY OF RULES AND

7 PROCEDURES.—The Judicial Conference shall 

8 study the efficacy of the rules and procedures 

9 required by this subsection during the 4-year 

10 period beginning on the date on which such 

11 rules and procedures by the district courts and 

12 the United States Court of Federal Claims are 

13 first implemented. The Judicial Conference may 

14 modify such rules and procedures following 

15 such 4-year period. 

16 (B) INITIAL MODIFICATIONS.—Before the 

17 expiration of the 4-year period described in sub18 paragraph (A), the Judicial Conference may 

19 modify the requirements under this sub20 section— 

21 (i) by designating categories of ‘‘core 

22 documentary evidence’’, in addition to 

23 those designated under paragraph (3)(A), 

24 as the Judicial Conference determines to 

25 be appropriate and necessary; and 


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1 (ii) as otherwise necessary to prevent 

2 a manifest injustice, the imposition of a re3 quirement the costs of which clearly out4 weigh its benefits, or a result that could 

5 not reasonably have been intended by the 

6 Congress. 

7 (b) JUDICIAL CONFERENCE PATENT CASE MANAGE8 MENT.—The Judicial Conference of the United States, 

9 using existing resources, shall develop case management 

10 procedures to be implemented by the United States dis11 trict courts and the United States Court of Federal Claims 

12 for any civil action arising under any Act of Congress re13 lating to patents, including initial disclosure and early case 

14 management conference practices that— 

15 (1) will identify any potential dispositive issues 

16 of the case; and 

17 (2) focus on early summary judgment motions 

18 when resolution of issues may lead to expedited dis19 position of the case. 

20 (c) REVISION OF FORM FOR PATENT INFRINGE21 MENT.— 

22 (1) ELIMINATION OF FORM.—The Supreme 

23 Court, using existing resources, shall eliminate Form 

24 18 in the Appendix to the Federal Rules of Civil 

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1 fringement), effective on the date of the enactment 

2 of this Act. 

3 (2) REVISED FORM.—The Supreme Court may 

4 prescribe a new form or forms setting out model al5 legations of patent infringement that, at a minimum, 

6 notify accused infringers of the asserted claim or 

7 claims, the products or services accused of infringe8 ment, and the plaintiff’s theory for how each ac9 cused product or service meets each limitation of 

10 each asserted claim. The Judicial Conference should 

11 exercise the authority under section 2073 of title 28, 

12 United States Code, to make recommendations with 

13 respect to such new form or forms. 

14 (d) PROTECTION OF INTELLECTUAL-PROPERTY LI15 CENSES IN BANKRUPTCY.— 

16 (1) IN GENERAL.—Section 1522 of title 11, 

17 United States Code, is amended by adding at the 

18 end the following: 

19 ‘‘(e) Section 365(n) shall apply to cases under this 

20 chapter. If the foreign representative rejects or repudiates 

21 a contract under which the debtor is a licensor of intellec22 tual property, the licensee under such contract shall be 

23 entitled to make the election and exercise the rights de24 scribed in section 365(n).’’. 

25 (2) TRADEMARKS.— 


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1 (A) IN GENERAL.—Section 101(35A) of 

2 title 11, United States Code, is amended— 

3 (i) in subparagraph (E), by striking 

4 ‘‘or’’; 

5 (ii) in subparagraph (F), by striking 

6 ‘‘title 17;’’ and inserting ‘‘title 17; or’’; and 

7 (iii) by adding after subparagraph (F) 

8 the following new subparagraph: 

9 ‘‘(G) a trademark, service mark, or trade 

10 name, as those terms are defined in section 45 

11 of the Act of July 5, 1946 (commonly referred 

12 to as the ‘Trademark Act of 1946’) (15 U.S.C. 

13 1127);’’. 

14 (B) CONFORMING AMENDMENT.—Section 

15 365(n)(2) of title 11, United States Code, is 

16 amended— 

17 (i) in subparagraph (B)— 

18 (I) by striking ‘‘royalty pay19 ments’’ and inserting ‘‘royalty or 

20 other payments’’; and 

21 (II) by striking ‘‘and’’ after the 

22 semicolon; 

23 (ii) in subparagraph (C), by striking 

24 the period at the end of clause (ii) and in25 serting ‘‘; and’’; and 


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1 (iii) by adding at the end the fol2 lowing new subparagraph: 

3 ‘‘(D) in the case of a trademark, service mark, 

4 or trade name, the trustee shall not be relieved of 

5 a contractual obligation to monitor and control the 

6 quality of a licensed product or service.’’. 

7 (3) EFFECTIVE DATE.—The amendments made 

8 by this subsection shall take effect on the date of the 

9 enactment of this Act and shall apply to any case 

10 that is pending on, or for which a petition or com11 plaint is filed on or after, such date of enactment. 

12 SEC. 3306. SMALL BUSINESS EDUCATION, OUTREACH, AND 

13 INFORMATION ACCESS. 

14 (a) SMALL BUSINESS EDUCATION AND OUT15 REACH.— 

16 (1) RESOURCES FOR SMALL BUSINESS.—Using 

17 existing resources, the Director shall develop edu18 cational resources for small businesses to address 

19 concerns arising from patent infringement. 

20 (2) SMALL BUSINESS PATENT OUTREACH.—The 

21 existing small business patent outreach programs of 

22 the Office, and the relevant offices at the Small 

23 Business Administration and the Minority Business 

24 Development Agency, shall provide education and 

25 awareness on abusive patent litigation practices. The 


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1 Director may give special consideration to the 

2 unique needs of small firms owned by disabled vet3 erans, service-disabled veterans, women, and minor4 ity entrepreneurs in planning and executing the out5 reach efforts by the Office. 

6 (b) IMPROVING INFORMATION TRANSPARENCY FOR

7 SMALL BUSINESS AND THE UNITED STATES PATENT AND

8 TRADEMARK OFFICE USERS.— 

9 (1) WEB SITE.—Using existing resources, the 

10 Director shall create a user-friendly section on the 

11 official Web site of the Office to notify the public 

12 when a patent case is brought in Federal court and, 

13 with respect to each patent at issue in such case, the 

14 Director shall include— 

15 (A) information disclosed under sub16 sections (b) and (d) of section 290 of title 35, 

17 United States Code, as added by section 3303 

18 of this subtitle; and 

19 (B) any other information the Director de20 termines to be relevant. 

21 (2) FORMAT.—In order to promote accessibility 

22 for the public, the information described in para23 graph (1) shall be searchable by patent number, pat24 ent art area, and entity. 


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1 SEC. 3307. STUDIES ON PATENT TRANSACTIONS, QUALITY, 

2 AND EXAMINATION. 

3 (a) STUDY ON SECONDARY MARKET OVERSIGHT FOR

4 PATENT TRANSACTIONS TO PROMOTE TRANSPARENCY

5 AND ETHICAL BUSINESS PRACTICES.— 

6 (1) STUDY REQUIRED.—The Director, in con7 sultation with the Secretary of Commerce, the Sec8 retary of the Treasury, the Chairman of the Securi9 ties and Exchange Commission, the heads of other 

10 relevant agencies, and interested parties, shall, using 

11 existing resources of the Office, conduct a study— 

12 (A) to develop legislative recommendations 

13 to ensure greater transparency and account14 ability in patent transactions occurring on the 

15 secondary market; 

16 (B) to examine the economic impact that 

17 the patent secondary market has on the United 

18 States; 

19 (C) to examine licensing and other over20 sight requirements that may be placed on the 

21 patent secondary market, including on the par22 ticipants in such markets, to ensure that the 

23 market is a level playing field and that brokers 

24 in the market have the requisite expertise and 

25 adhere to ethical business practices; and 


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1 (D) to examine the requirements placed on 

2 other markets. 

3 (2) REPORT ON STUDY.—Not later than 18 

4 months after the date of the enactment of this Act, 

5 the Director shall submit a report to the Committee 

6 on the Judiciary of the House of Representatives 

7 and the Committee on the Judiciary of the Senate 

8 on the findings and recommendations of the Director 

9 from the study required under paragraph (1). 

10 (b) STUDY ON PATENTS OWNED BY THE UNITED

11 STATES GOVERNMENT.— 

12 (1) STUDY REQUIRED.—The Director, in con13 sultation with the heads of relevant agencies and in14 terested parties, shall, using existing resources of the 

15 Office, conduct a study on patents owned by the 

16 United States Government that— 

17 (A) examines how such patents are li18 censed and sold, and any litigation relating to 

19 the licensing or sale of such patents; 

20 (B) provides legislative and administrative 

21 recommendations on whether there should be 

22 restrictions placed on patents acquired from the 

23 United States Government; 

24 (C) examines whether or not each relevant 

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1 ents owned by such agency, specifically whether 

2 such agency addresses licensing, assignment, 

3 and Government grants for technology related 

4 to such patents; and 

5 (D) provides recommendations to ensure 

6 that each relevant agency has an adequate 

7 point of contact that is responsible for man8 aging the patent portfolio of the agency. 

9 (2) REPORT ON STUDY.—Not later than 1 year 

10 after the date of the enactment of this Act, the Di11 rector shall submit to the Committee on the Judici12 ary of the House of Representatives and the Com13 mittee on the Judiciary of the Senate a report on 

14 the findings and recommendations of the Director 

15 from the study required under paragraph (1). 

16 (c) STUDY ON PATENT QUALITY AND ACCESS TO

17 THE BEST INFORMATION DURING EXAMINATION.— 

18 (1) GAO STUDY.—The Comptroller General of 

19 the United States shall, using existing resources, 

20 conduct a study on patent examination at the Office 

21 and the technologies available to improve examina22 tion and improve patent quality. 

23 (2) CONTENTS OF THE STUDY.—The study re24 quired under paragraph (1) shall include the fol25 lowing: 


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1 (A) An examination of patent quality at 

2 the Office. 

3 (B) An examination of ways to improve 

4 patent quality, specifically through technology, 

5 that shall include examining best practices at 

6 foreign patent offices and the use of existing 

7 off-the-shelf technologies to improve patent ex8 amination. 

9 (C) A description of how patents are clas10 sified. 

11 (D) An examination of procedures in place 

12 to prevent double patenting through filing by 

13 applicants in multiple art areas. 

14 (E) An examination of the types of off-the15 shelf prior art databases and search software 

16 used by foreign patent offices and governments, 

17 particularly in Europe and Asia, and whether 

18 those databases and search tools could be used 

19 by the Office to improve patent examination. 

20 (F) An examination of any other areas the 

21 Comptroller General determines to be relevant. 

22 (3) REPORT ON STUDY.—Not later than 1 year 

23 after the date of the enactment of this Act, the 

24 Comptroller General shall submit to the Committee 

25 on the Judiciary of the House of Representatives 


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1 and the Committee on the Judiciary of the Senate 

2 a report on the findings and recommendations from 

3 the study required by this subsection, including rec4 ommendations for any changes to laws and regula5 tions that will improve the examination of patent ap6 plications and patent quality. 

7 (d) STUDY ON PATENT SMALL CLAIMS COURT.— 

8 (1) STUDY REQUIRED.— 

9 (A) IN GENERAL.—The Director of the 

10 Administrative Office of the United States 

11 Courts, in consultation with the Director of the 

12 Federal Judicial Center and the United States 

13 Patent and Trademark Office, shall, using ex14 isting resources, conduct a study to examine the 

15 idea of developing a pilot program for patent 

16 small claims procedures in certain judicial dis17 tricts within the existing patent pilot program 

18 mandated by Public Law 111–349. 

19 (B) CONTENTS OF STUDY.—The study 

20 under subparagraph (A) shall examine— 

21 (i) the necessary criteria for using 

22 small claims procedures; 

23 (ii) the costs that would be incurred 

24 for establishing, maintaining, and oper25 ating such a pilot program; and 


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1 (iii) the steps that would be taken to 

2 ensure that the procedures used in the 

3 pilot program are not misused for abusive 

4 patent litigation. 

5 (2) REPORT ON STUDY.—Not later than 1 year 

6 after the date of the enactment of this Act, the Di7 rector of the Administrative Office of the United 

8 States Courts shall submit a report to the Com9 mittee on the Judiciary of the House of Representa10 tives and the Committee on the Judiciary of the 

11 Senate on the findings and recommendations of the 

12 Director of the Administrative Office from the study 

13 required under paragraph (1). 

14 (e) STUDY ON DEMAND LETTERS.— 

15 (1) STUDY.—The Director, in consultation with 

16 the heads of other appropriate agencies, shall, using 

17 existing resources, conduct a study of the prevalence 

18 of the practice of sending patent demand letters in 

19 bad faith and the extent to which that practice may, 

20 through fraudulent or deceptive practices, impose a 

21 negative impact on the marketplace. 

22 (2) REPORT TO CONGRESS.—Not later than 1 

23 year after the date of the enactment of this Act, the 

24 Director shall submit a report to the Committee on 

25 the Judiciary of the House of Representatives and 


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1 the Committee on the Judiciary of the Senate on the 

2 findings and recommendations of the Director from 

3 the study required under paragraph (1). 

4 (3) PATENT DEMAND LETTER DEFINED.—In 

5 this subsection, the term ‘‘patent demand letter’’ 

6 means a written communication relating to a patent 

7 that states or indicates, directly or indirectly, that 

8 the recipient or anyone affiliated with the recipient 

9 is or may be infringing the patent. 

10 (f) STUDY ON BUSINESS METHOD PATENT QUAL11 ITY.— 

12 (1) GAO STUDY.—The Comptroller General of 

13 the United States shall, using existing resources, 

14 conduct a study on the volume and nature of litiga15 tion involving business method patents. 

16 (2) CONTENTS OF STUDY.—The study required 

17 under paragraph (1) shall focus on examining the 

18 quality of business method patents asserted in suits 

19 alleging patent infringement, and may include an ex20 amination of any other areas that the Comptroller 

21 General determines to be relevant. 

22 (3) REPORT TO CONGRESS.—Not later than 1 

23 year after the date of the enactment of this Act, the 

24 Comptroller General shall submit to the Committee 

25 on the Judiciary of the House of Representatives 


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1 and the Committee on the Judiciary of the Senate 

2 a report on the findings and recommendations from 

3 the study required by this subsection, including rec4 ommendations for any changes to laws or regula5 tions that the Comptroller General considers appro6 priate on the basis of the study. 

7 (g) STUDY ON IMPACT OF LEGISLATION ON ABILITY

8 OF INDIVIDUALS AND SMALL BUSINESSES TO PROTECT

9 EXCLUSIVE RIGHTS TO INVENTIONS AND DISCOV10 ERIES.— 

11 (1) STUDY REQUIRED.—The Director, in con12 sultation with the Secretary of Commerce, the Direc13 tor of the Administrative Office of the United States 

14 Courts, the Director of the Federal Judicial Center, 

15 the heads of other relevant agencies, and interested 

16 parties, shall, using existing resources of the Office, 

17 conduct a study to examine the economic impact of 

18 sections 3, 4, and 5 of this Act, and any amend19 ments made by such sections, on the ability of indi20 viduals and small businesses owned by women, vet21 erans, and minorities to assert, secure, and vindicate 

22 the constitutionally guaranteed exclusive right to in23 ventions and discoveries by such individuals and 

24 small business. 


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1 (2) REPORT ON STUDY.—Not later than 2 

2 years after the date of the enactment of this Act, the 

3 Director shall submit to the Committee on the Judi4 ciary of the House of Representatives and the Com5 mittee on the Judiciary of the Senate a report on 

6 the findings and recommendations of the Director 

7 from the study required under paragraph (1). 

8 SEC. 3308. IMPROVEMENTS AND TECHNICAL CORRECTIONS 

9 TO THE LEAHY-SMITH AMERICA INVENTS 

10 ACT. 

11 (a) POST-GRANT REVIEW AMENDMENT.—Section 

12 325(e)(2) of title 35, United States Code is amended by 

13 striking ‘‘or reasonably could have raised’’. 

14 (b) USE OF DISTRICT COURT CLAIM CONSTRUCTION

15 IN POST-GRANT AND INTER PARTES REVIEWS.— 

16 (1) INTER PARTES REVIEW.—Section 316(a) of 

17 title 35, United States Code, is amended— 

18 (A) in paragraph (12), by striking ‘‘; and’’ 

19 and inserting a semicolon; 

20 (B) in paragraph (13), by striking the pe21 riod at the end and inserting ‘‘; and’’; and 

22 (C) by adding at the end the following new 

23 paragraph: 

24 ‘‘(14) providing that for all purposes under this 

25 chapter— 


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1 ‘‘(A) each claim of a patent shall be con2 strued as such claim would be in a civil action 

3 to invalidate a patent under section 282(b), in4 cluding construing each claim of the patent in 

5 accordance with the ordinary and customary 

6 meaning of such claim as understood by one of 

7 ordinary skill in the art and the prosecution 

8 history pertaining to the patent; and 

9 ‘‘(B) if a court has previously construed 

10 the claim or a claim term in a civil action in 

11 which the patent owner was a party, the Office 

12 shall consider such claim construction.’’. 

13 (2) POST-GRANT REVIEW.—Section 326(a) of 

14 title 35, United States Code, is amended— 

15 (A) in paragraph (11), by striking ‘‘; and’’ 

16 and inserting a semicolon; 

17 (B) in paragraph (12), by striking the pe18 riod at the end and inserting ‘‘; and’’; and 

19 (C) by adding at the end the following new 

20 paragraph: 

21 ‘‘(13) providing that for all purposes under this 

22 chapter— 

23 ‘‘(A) each claim of a patent shall be con24 strued as such claim would be in a civil action 

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1 cluding construing each claim of the patent in 

2 accordance with the ordinary and customary 

3 meaning of such claim as understood by one of 

4 ordinary skill in the art and the prosecution 

5 history pertaining to the patent; and 

6 ‘‘(B) if a court has previously construed 

7 the claim or a claim term in a civil action in 

8 which the patent owner was a party, the Office 

9 shall consider such claim construction.’’. 

10 (3) TECHNICAL AND CONFORMING AMEND11 MENT.—Section 18(a)(1)(A) of the Leahy-Smith 

12 America Invents Act (Public Law 112–29; 126 Stat. 

13 329; 35 U.S.C. 321 note) is amended by striking 

14 ‘‘Section 321(c)’’ and inserting ‘‘Sections 321(c) and 

15 326(a)(13)’’. 

16 (4) EFFECTIVE DATE.—The amendments made 

17 by this subsection shall take effect upon the expira18 tion of the 90-day period beginning on the date of 

19 the enactment of this Act, and shall apply to any 

20 proceeding under chapter 31 or 32 of title 35, 

21 United States Code, as the case may be, for which 

22 the petition for review is filed on or after such effec23 tive date. 

24 (c) CODIFICATION OF THE DOUBLE-PATENTING

25 DOCTRINE FOR FIRST-INVENTOR-TO-FILE PATENTS.— 


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1 (1) AMENDMENT.—Chapter 10 of title 35, 

2 United States Code, is amended by adding at the 

3 end the following new section: 

4 ‘‘§ 106. Prior art in cases of double patenting 

5 ‘‘A claimed invention of a patent issued under section 

6 151 (referred to as the ‘first patent’) that is not prior art 

7 to a claimed invention of another patent (referred to as 

8 the ‘second patent’) shall be considered prior art to the 

9 claimed invention of the second patent for the purpose of 

10 determining the nonobviousness of the claimed invention 

11 of the second patent under section 103 if— 

12 ‘‘(1) the claimed invention of the first patent 

13 was effectively filed under section 102(d) on or be14 fore the effective filing date of the claimed invention 

15 of the second patent; 

16 ‘‘(2) either— 

17 ‘‘(A) the first patent and second patent 

18 name the same individual or individuals as the 

19 inventor; or 

20 ‘‘(B) the claimed invention of the first pat21 ent would constitute prior art to the claimed in22 vention of the second patent under section 

23 102(a)(2) if an exception under section 

24 102(b)(2) were deemed to be inapplicable and 

25 the claimed invention of the first patent was, or 


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1 were deemed to be, effectively filed under sec2 tion 102(d) before the effective filing date of 

3 the claimed invention of the second patent; and 

4 ‘‘(3) the patentee of the second patent has not 

5 disclaimed the rights to enforce the second patent 

6 independently from, and beyond the statutory term 

7 of, the first patent.’’. 

8 (2) REGULATIONS.—The Director shall promul9 gate regulations setting forth the form and content 

10 of any disclaimer required for a patent to be issued 

11 in compliance with section 106 of title 35, United 

12 States Code, as added by paragraph (1). Such regu13 lations shall apply to any disclaimer filed after a 

14 patent has issued. A disclaimer, when filed, shall be 

15 considered for the purpose of determining the valid16 ity of the patent under section 106 of title 35, 

17 United States Code. 

18 (3) CONFORMING AMENDMENT.—The table of 

19 sections for chapter 10 of title 35, United States 

20 Code, is amended by adding at the end the following 

21 new item: 

‘‘106. Prior art in cases of double patenting.’’. 

22 (4) EXCLUSIVE RULE.—A patent subject to sec23 tion 106 of title 35, United States Code, as added 

24 by paragraph (1), shall not be held invalid on any 

25 nonstatutory, double-patenting ground based on a 


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1 patent described in section 3(n)(1) of the Leahy2 Smith America Invents Act (35 U.S.C. 100 note). 

3 (5) EFFECTIVE DATE.—The amendments made 

4 by this subsection shall take effect upon the expira5 tion of the 1-year period beginning on the date of 

6 the enactment of this Act and shall apply to a pat7 ent or patent application only if both the first and 

8 second patents described in section 106 of title 35, 

9 United States Code, as added by paragraph (1), are 

10 patents or patent applications that are described in 

11 section 3(n)(1) of the Leahy-Smith America Invents 

12 Act (35 U.S.C. 100 note). 

13 (d) PTO PATENT REVIEWS.— 

14 (1) CLARIFICATION.— 

15 (A) SCOPE OF PRIOR ART.—Section 

16 18(a)(1)(C)(i) of the Leahy-Smith America In17 vents Act (35 U.S.C. 321 note) is amended by 

18 striking ‘‘section 102(a)’’ and inserting ‘‘sub19 section (a) or (e) of section 102’’. 

20 (B) EFFECTIVE DATE.—The amendment 

21 made by subparagraph (A) shall take effect on 

22 the date of the enactment of this Act and shall 

23 apply to any proceeding pending on, or filed on 

24 or after, such date of enactment. 


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1 (2) AUTHORITY TO WAIVE FEE.—Subject to 

2 available resources, the Director may waive payment 

3 of a filing fee for a transitional proceeding described 

4 under section 18(a) of the Leahy-Smith America In5 vents Act (35 U.S.C. 321 note). 

6 (e) CLARIFICATION OF LIMITS ON PATENT TERM

7 ADJUSTMENT.— 

8 (1) AMENDMENTS.—Section 154(b)(1)(B) of 

9 title 35, United States Code, is amended— 

10 (A) in the matter preceding clause (i), by 

11 striking ‘‘not including—’’ and inserting ‘‘the 

12 term of the patent shall be extended 1 day for 

13 each day after the end of that 3-year period 

14 until the patent is issued, not including—’’; 

15 (B) in clause (i), by striking ‘‘consumed by 

16 continued examination of the application re17 quested by the applicant’’ and inserting ‘‘con18 sumed after continued examination of the appli19 cation is requested by the applicant’’; 

20 (C) in clause (iii), by striking the comma 

21 at the end and inserting a period; and 

22 (D) by striking the matter following clause 

23 (iii). 

24 (2) EFFECTIVE DATE.—The amendments made 

25 by this subsection shall take effect on the date of the 


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1 enactment of this Act and apply to any patent appli2 cation that is pending on, or filed on or after, such 

3 date of enactment. 

4 (f) CLARIFICATION OF JURISDICTION.— 

5 (1) IN GENERAL.—The Federal interest in pre6 venting inconsistent final judicial determinations as 

7 to the legal force or effect of the claims in a patent 

8 presents a substantial Federal issue that is impor9 tant to the Federal system as a whole. 

10 (2) APPLICABILITY.—Paragraph (1)— 

11 (A) shall apply to all cases filed on or 

12 after, or pending on, the date of the enactment 

13 of this Act; and 

14 (B) shall not apply to a case in which a 

15 Federal court has issued a ruling on whether 

16 the case or a claim arises under any Act of 

17 Congress relating to patents or plant variety 

18 protection before the date of the enactment of 

19 this Act. 

20 (g) PATENT PILOT PROGRAM IN CERTAIN DISTRICT

21 COURTS DURATION.— 

22 (1) DURATION.—Section 1(c) of Public Law 

23 111–349 (124 Stat. 3674; 28 U.S.C. 137 note) is 

24 amended to read as follows: 


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1 ‘‘(c) DURATION.—The program established under 

2 subsection (a) shall be maintained using existing re3 sources, and shall terminate 20 years after the end of the 

4 6-month period described in subsection (b).’’. 

5 (2) EFFECTIVE DATE.—The amendment made 

6 by paragraph (1) shall take effect on the date of the 

7 enactment of this Act. 

8 (h) TECHNICAL CORRECTIONS.— 

9 (1) NOVELTY.— 

10 (A) AMENDMENT.—Section 102(b)(1)(A) 

11 of title 35, United States Code, is amended by 

12 striking ‘‘the inventor or joint inventor or by 

13 another’’ and inserting ‘‘the inventor or a joint 

14 inventor or another’’. 

15 (B) EFFECTIVE DATE.—The amendment 

16 made by subparagraph (A) shall be effective as 

17 if included in the amendment made by section 

18 3(b)(1) of the Leahy-Smith America Invents 

19 Act (Public Law 112–29). 

20 (2) INVENTOR’S OATH OR DECLARATION.— 

21 (A) AMENDMENT.—The second sentence of 

22 section 115(a) of title 35, United States Code, 

23 is amended by striking ‘‘shall execute’’ and in24 serting ‘‘may be required to execute’’. 


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1 (B) EFFECTIVE DATE.—The amendment 

2 made by subparagraph (A) shall be effective as 

3 if included in the amendment made by section 

4 4(a)(1) of the Leahy-Smith America Invents 

5 Act (Public Law 112–29). 

6 (3) ASSIGNEE FILERS.— 

7 (A) BENEFIT OF EARLIER FILING DATE; 

8 RIGHT OF PRIORITY.—Section 119(e)(1) of title 

9 35, United States Code, is amended, in the first 

10 sentence, by striking ‘‘by an inventor or inven11 tors named’’ and inserting ‘‘that names the in12 ventor or a joint inventor’’. 

13 (B) BENEFIT OF EARLIER FILING DATE IN

14 THE UNITED STATES.—Section 120 of title 35, 

15 United States Code, is amended, in the first 

16 sentence, by striking ‘‘names an inventor or 

17 joint inventor’’ and inserting ‘‘names the inven18 tor or a joint inventor’’. 

19 (C) EFFECTIVE DATE.—The amendments 

20 made by this paragraph shall take effect on the 

21 date of the enactment of this Act and shall 

22 apply to any patent application, and any patent 

23 issuing from such application, that is filed on or 

24 after September 16, 2012. 

25 (4) DERIVED PATENTS.— 


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1 (A) AMENDMENT.—Section 291(b) of title 

2 35, United States Code, is amended by striking 

3 ‘‘or joint inventor’’ and inserting ‘‘or a joint in4 ventor’’. 

5 (B) EFFECTIVE DATE.—The amendment 

6 made by subparagraph (A) shall be effective as 

7 if included in the amendment made by section 

8 3(h)(1) of the Leahy-Smith America Invents 

9 Act (Public Law 112–29). 

10 (5) SPECIFICATION.—Notwithstanding section 

11 4(e) of the Leahy-Smith America Invents Act (Pub12 lic Law 112–29; 125 Stat. 297), the amendments 

13 made by subsections (c) and (d) of section 4 of such 

14 Act shall apply to any proceeding or matter that is 

15 pending on, or filed on or after, the date of the en16 actment of this Act. 

17 (6) TIME LIMIT FOR COMMENCING MISCONDUCT

18 PROCEEDINGS.— 

19 (A) AMENDMENT.—The fourth sentence of 

20 section 32 of title 35, United States Code, is 

21 amended by striking ‘‘1 year’’ and inserting 

22 ‘‘18 months’’. 

23 (B) EFFECTIVE DATE.—The amendment 

24 made by this paragraph shall take effect on the 

25 date of the enactment of this Act and shall 


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1 apply to any action in which the Office files a 

2 complaint on or after such date of enactment. 

3 (7) PATENT OWNER RESPONSE.— 

4 (A) CONDUCT OF INTER PARTES RE5 VIEW.—Paragraph (8) of section 316(a) of title 

6 35, United States Code, is amended by striking 

7 ‘‘the petition under section 313’’ and inserting 

8 ‘‘the petition under section 311’’. 

9 (B) CONDUCT OF POST-GRANT REVIEW.— 

10 Paragraph (8) of section 326(a) of title 35, 

11 United States Code, is amended by striking 

12 ‘‘the petition under section 323’’ and inserting 

13 ‘‘the petition under section 321’’. 

14 (C) EFFECTIVE DATE.—The amendments 

15 made by this paragraph shall take effect on the 

16 date of the enactment of this Act. 

17 (8) INTERNATIONAL APPLICATIONS.— 

18 (A) AMENDMENTS.—Section 202(b) of the 

19 Patent Law Treaties Implementation Act of 

20 2012 (Public Law 112–211; 126 Stat. 1536) is 

21 amended— 

22 (i) by striking paragraph (7); and 

23 (ii) by redesignating paragraphs (8) 

24 and (9) as paragraphs (7) and (8), respec25 tively. 


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1 (B) EFFECTIVE DATE.—The amendments 

2 made by subparagraph (A) shall be effective as 

3 if included in title II of the Patent Law Trea4 ties Implementation Act of 2012 (Public Law 

5 112–21). 

6 SEC. 3309. EFFECTIVE DATE. 

7 Except as otherwise provided in this subtitle, the pro8 visions of this subtitle shall take effect on the date of the 

9 enactment of this Act, and shall apply to any patent 

10 issued, or any action filed, on or after that date. 

11 Subtitle D—Resolving Environ12 mental and Grid Reliability 

13 Conflicts 

14 SEC. 3401. AMENDMENTS TO THE FEDERAL POWER ACT. 

15 (a) COMPLIANCE WITH OR VIOLATION OF ENVIRON16 MENTAL LAWS WHILE UNDER EMERGENCY ORDER.— 

17 Section 202(c) of the Federal Power Act (16 U.S.C. 

18 824a(c)) is amended— 

19 (1) by inserting ‘‘(1)’’ after ‘‘(c)’’; and 

20 (2) by adding at the end the following: 

21 ‘‘(2) With respect to an order issued under this sub22 section that may result in a conflict with a requirement 

23 of any Federal, State, or local environmental law or regu24 lation, the Commission shall ensure that such order re25 quires generation, delivery, interchange, or transmission 


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1 of electric energy only during hours necessary to meet the 

2 emergency and serve the public interest, and, to the max3 imum extent practicable, is consistent with any applicable 

4 Federal, State, or local environmental law or regulation 

5 and minimizes any adverse environmental impacts. 

6 ‘‘(3) To the extent any omission or action taken by 

7 a party, that is necessary to comply with an order issued 

8 under this subsection, including any omission or action 

9 taken to voluntarily comply with such order, results in 

10 noncompliance with, or causes such party to not comply 

11 with, any Federal, State, or local environmental law or 

12 regulation, such omission or action shall not be considered 

13 a violation of such environmental law or regulation, or 

14 subject such party to any requirement, civil or criminal 

15 liability, or a citizen suit under such environmental law 

16 or regulation. 

17 ‘‘(4)(A) An order issued under this subsection that 

18 may result in a conflict with a requirement of any Federal, 

19 State, or local environmental law or regulation shall expire 

20 not later than 90 days after it is issued. The Commission 

21 may renew or reissue such order pursuant to paragraphs 

22 (1) and (2) for subsequent periods, not to exceed 90 days 

23 for each period, as the Commission determines necessary 

24 to meet the emergency and serve the public interest. 


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1 ‘‘(B) In renewing or reissuing an order under sub2 paragraph (A), the Commission shall consult with the pri3 mary Federal agency with expertise in the environmental 

4 interest protected by such law or regulation, and shall in5 clude in any such renewed or reissued order such condi6 tions as such Federal agency determines necessary to min7 imize any adverse environmental impacts to the maximum 

8 extent practicable. The conditions, if any, submitted by 

9 such Federal agency shall be made available to the public. 

10 The Commission may exclude such a condition from the 

11 renewed or reissued order if it determines that such condi12 tion would prevent the order from adequately addressing 

13 the emergency necessitating such order and provides in 

14 the order, or otherwise makes publicly available, an expla15 nation of such determination.’’. 

16 (b) TEMPORARY CONNECTION OR CONSTRUCTION BY

17 MUNICIPALITIES.—Section 202(d) of the Federal Power 

18 Act (16 U.S.C. 824a(d)) is amended by inserting ‘‘or mu19 nicipality’’ before ‘‘engaged in the transmission or sale of 

20 electric energy’’. 


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1 TITLE IV—PRESERVING ACCESS 

2 TO ABUNDANT AND AFFORD3 ABLE SOURCES OF ENERGY 

4 Subtitle A—Northern Route 

5 Approval 

6 SEC. 4101. FINDINGS. 

7 The Congress finds the following: 

8 (1) To maintain our Nation’s competitive edge 

9 and ensure an economy built to last, the United 

10 States must have fast, reliable, resilient, and envi11 ronmentally sound means of moving energy. In a 

12 global economy, we will compete for the world’s in13 vestments based in significant part on the quality of 

14 our infrastructure. Investing in the Nation’s infra15 structure provides immediate and long-term eco16 nomic benefits for local communities and the Nation 

17 as a whole. 

18 (2) The delivery of oil from Canada, a close ally 

19 not only in proximity but in shared values and 

20 ideals, to domestic markets is in the national inter21 est because of the need to lessen dependence upon 

22 insecure foreign sources. 

23 (3) The Keystone XL pipeline would provide 

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1 nities and related labor income benefits, such as gov2 ernment revenues associated with taxes. 

3 (4) The State of Nebraska has thoroughly re4 viewed and approved the proposed Keystone XL 

5 pipeline reroute, concluding that the concerns of Ne6 braskans have had a major influence on the pipeline 

7 reroute and that the reroute will have minimal envi8 ronmental impacts. 

9 (5) The Department of State and other Federal 

10 agencies have over a long period of time conducted 

11 extensive studies and analysis of the technical as12 pects and of the environmental, social, and economic 

13 impacts of the proposed Keystone XL pipeline, 

14 and— 

15 (A) the Department of State assessments 

16 found that the Keystone XL pipeline ‘‘is not 

17 likely to impact the amount of crude oil pro18 duced from the oil sands’’ and that ‘‘approval 

19 or denial of the proposed project is unlikely to 

20 have a substantial impact on the rate of devel21 opment in the oil sands’’; 

22 (B) the Department of State found that 

23 incremental life-cycle greenhouse gas emissions 

24 associated with the Keystone XL project are es25 timated in the range of 0.07 to 0.83 million 


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1 metric tons of carbon dioxide equivalents, with 

2 the upper end of this range representing twelve 

3 one-thousandths of one percent of the 6,702 

4 million metric tons of carbon dioxide emitted in 

5 the United States in 2011; and 

6 (C) after extensive evaluation of potential 

7 impacts to land and water resources along the 

8 Keystone XL pipeline’s 875 mile proposed 

9 route, the Department of State found that 

10 ‘‘The analyses of potential impacts associated 

11 with construction and normal operation of the 

12 proposed Project suggest that there would be 

13 no significant impacts to most resources along 

14 the proposed Project route (assuming Keystone 

15 complies with all laws and required conditions 

16 and measures).’’. 

17 (6) The transportation of oil via pipeline is the 

18 safest and most economically and environmentally 

19 effective means of doing so, and— 

20 (A) transportation of oil via pipeline has a 

21 record of unmatched safety and environmental 

22 protection, and the Department of State found 

23 that ‘‘Spills associated with the proposed 

24 Project that enter the environment expected to 

25 be rare and relatively small’’, and that ‘‘there 


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1 is no evidence of increased corrosion or other 

2 pipeline threat due to viscosity’’ of diluted bitu3 men oil that will be transported by the Key4 stone XL pipeline; and 

5 (B) plans to incorporate 57 project-specific 

6 special conditions related to the design, con7 struction, and operations of the Keystone XL 

8 pipeline led the Department of State to find 

9 that the pipeline will have ‘‘a degree of safety 

10 over any other typically constructed domestic oil 

11 pipeline’’. 

12 (7) The Keystone XL is in much the same posi13 tion today as the Alaska Pipeline in 1973 prior to 

14 congressional action. Once again, the Federal regu15 latory process remains an insurmountable obstacle 

16 to a project that is likely to reduce oil imports from 

17 insecure foreign sources. 

18 SEC. 4102. KEYSTONE XL PERMIT APPROVAL. 

19 Notwithstanding Executive Order No. 13337 (3 

20 U.S.C. 301 note), Executive Order No. 11423 (3 U.S.C. 

21 301 note), section 301 of title 3, United States Code, and 

22 any other Executive order or provision of law, no Presi23 dential permit shall be required for the pipeline described 

24 in the application filed on May 4, 2012, by TransCanada 

25 Keystone Pipeline, L.P. to the Department of State for 


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1 the Keystone XL pipeline, as supplemented to include the 

2 Nebraska reroute evaluated in the Final Evaluation Re3 port issued by the Nebraska Department of Environ4 mental Quality in January 2013 and approved by the Ne5 braska governor. The final environmental impact state6 ment issued by the Secretary of State on August 26, 2011, 

7 coupled with the Final Evaluation Report described in the 

8 previous sentence, shall be considered to satisfy all re9 quirements of the National Environmental Policy Act of 

10 1969 (42 U.S.C. 4321 et seq.) and of the National His11 toric Preservation Act (16 U.S.C. 470 et seq.). 

12 SEC. 4103. JUDICIAL REVIEW. 

13 (a) EXCLUSIVE JURISDICTION.—Except for review by 

14 the Supreme Court on writ of certiorari, the United States 

15 Court of Appeals for the District of Columbia Circuit shall 

16 have original and exclusive jurisdiction to determine— 

17 (1) the validity of any final order or action (in18 cluding a failure to act) of any Federal agency or of19 ficer with respect to issuance of a permit relating to 

20 the construction or maintenance of the Keystone XL 

21 pipeline, including any final order or action deemed 

22 to be taken, made, granted, or issued; 

23 (2) the constitutionality of any provision of this 

24 subtitle, or any decision or action taken, made, 


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1 granted, or issued, or deemed to be taken, made, 

2 granted, or issued under this subtitle; or 

3 (3) the adequacy of any environmental impact 

4 statement prepared under the National Environ5 mental Policy Act of 1969 (42 U.S.C. 4321 et seq.), 

6 or of any analysis under any other Act, with respect 

7 to any action taken, made, granted, or issued, or 

8 deemed to be taken, made, granted, or issued under 

9 this subtitle. 

10 (b) DEADLINE FOR FILING CLAIM.—A claim arising 

11 under this subtitle may be brought not later than 60 days 

12 after the date of the decision or action giving rise to the 

13 claim. 

14 (c) EXPEDITED CONSIDERATION.—The United 

15 States Court of Appeals for the District of Columbia Cir16 cuit shall set any action brought under subsection (a) for 

17 expedited consideration, taking into account the national 

18 interest of enhancing national energy security by providing 

19 access to the significant oil reserves in Canada that are 

20 needed to meet the demand for oil. 

21 SEC. 4104. AMERICAN BURYING BEETLE. 

22 (a) FINDINGS.—The Congress finds that— 

23 (1) environmental reviews performed for the 

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1 ments of section 7 of the Endangered Species Act of 

2 1973 (16 U.S.C. 1536(a)(2)) in its entirety; and 

3 (2) for purposes of that Act, the Keystone XL 

4 pipeline project will not jeopardize the continued ex5 istence of the American burying beetle or destroy or 

6 adversely modify American burying beetle critical 

7 habitat. 

8 (b) BIOLOGICAL OPINION.—The Secretary of the In9 terior is deemed to have issued a written statement setting 

10 forth the Secretary’s opinion containing such findings 

11 under section 7(b)(1)(A) of the Endangered Species Act 

12 of 1973 (16 U.S.C. 1536(b)(1)(A)) and any taking of the 

13 American burying beetle that is incidental to the construc14 tion or operation and maintenance of the Keystone XL 

15 pipeline as it may be ultimately defined in its entirety, 

16 shall not be considered a prohibited taking of such species 

17 under such Act. 

18 SEC. 4105. RIGHT-OF-WAY AND TEMPORARY USE PERMIT. 

19 The Secretary of the Interior is deemed to have 

20 granted or issued a grant of right-of-way and temporary 

21 use permit under section 28 of the Mineral Leasing Act 

22 (30 U.S.C. 185) and the Federal Land Policy and Man23 agement Act of 1976 (43 U.S.C. 1701 et seq.), as set forth 

24 in the application tendered to the Bureau of Land Man25 agement for the Keystone XL pipeline. 


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1 SEC. 4106. PERMITS FOR ACTIVITIES IN NAVIGABLE 

2 WATERS. 

3 (a) ISSUANCE OF PERMITS.—The Secretary of the 

4 Army, not later than 90 days after receipt of an applica5 tion therefor, shall issue all permits under section 404 of 

6 the Federal Water Pollution Control Act (33 U.S.C. 1344) 

7 and section 10 of the Act of March 3, 1899 (33 U.S.C. 

8 403; commonly known as the Rivers and Harbors Appro9 priations Act of 1899), necessary for the construction, op10 eration, and maintenance of the pipeline described in the 

11 May 4, 2012, application referred to in section 4103, as 

12 supplemented by the Nebraska reroute. The application 

13 shall be based on the administrative record for the pipeline 

14 as of the date of enactment of this Act, which shall be 

15 considered complete. 

16 (b) WAIVER OF PROCEDURAL REQUIREMENTS.—The 

17 Secretary may waive any procedural requirement of law 

18 or regulation that the Secretary considers desirable to 

19 waive in order to accomplish the purposes of this section. 

20 (c) ISSUANCE IN ABSENCE OF ACTION BY THE SEC21 RETARY.—If the Secretary has not issued a permit de22 scribed in subsection (a) on or before the last day of the 

23 90-day period referred to in subsection (a), the permit 

24 shall be deemed issued under section 404 of the Federal 

25 Water Pollution Control Act (33 U.S.C. 1344) or section 


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1 10 of the Act of March 3, 1899 (33 U.S.C. 403), as appro2 priate, on the day following such last day. 

3 (d) LIMITATION.—The Administrator of the Environ4 mental Protection Agency may not prohibit or restrict an 

5 activity or use of an area that is authorized under this 

6 section. 

7 SEC. 4107. MIGRATORY BIRD TREATY ACT PERMIT. 

8 The Secretary of the Interior is deemed to have 

9 issued a special purpose permit under the Migratory Bird 

10 Treaty Act (16 U.S.C. 703 et seq.), as described in the 

11 application filed with the United States Fish and Wildlife 

12 Service for the Keystone XL pipeline on January 11, 

13 2013. 

14 SEC. 4108. OIL SPILL RESPONSE PLAN DISCLOSURE. 

15 (a) IN GENERAL.—Any pipeline owner or operator 

16 required under Federal law to develop an oil spill response 

17 plan for the Keystone XL pipeline shall make such plan 

18 available to the Governor of each State in which such pipe19 line operates to assist with emergency response prepared20 ness. 

21 (b) UPDATES.—A pipeline owner or operator required 

22 to make available to a Governor a plan under subsection 

23 (a) shall make available to such Governor any update of 

24 such plan not later than 7 days after the date on which 

25 such update is made. 


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1 Subtitle B—Natural Gas Pipeline 

2 Permitting Reform 

3 SEC. 4201. REGULATORY APPROVAL OF NATURAL GAS 

4 PIPELINE PROJECTS. 

5 Section 7 of the Natural Gas Act (15 U.S.C. 717f) 

6 is amended by adding at the end the following new sub7 section: 

8 ‘‘(i)(1) The Commission shall approve or deny an ap9 plication for a certificate of public convenience and neces10 sity for a prefiled project not later than 12 months after 

11 receiving a complete application that is ready to be proc12 essed, as defined by the Commission by regulation. 

13 ‘‘(2) The agency responsible for issuing any license, 

14 permit, or approval required under Federal law in connec15 tion with a prefiled project for which a certificate of public 

16 convenience and necessity is sought under this Act shall 

17 approve or deny the issuance of the license, permit, or ap18 proval not later than 90 days after the Commission issues 

19 its final environmental document relating to the project. 

20 ‘‘(3) The Commission may extend the time period 

21 under paragraph (2) by 30 days if an agency demonstrates 

22 that it cannot otherwise complete the process required to 

23 approve or deny the license, permit, or approval, and 

24 therefor will be compelled to deny the license, permit, or 

25 approval. In granting an extension under this paragraph, 


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1 the Commission may offer technical assistance to the 

2 agency as necessary to address conditions preventing the 

3 completion of the review of the application for the license, 

4 permit, or approval. 

5 ‘‘(4) If an agency described in paragraph (2) does 

6 not approve or deny the issuance of the license, permit, 

7 or approval within the time period specified under para8 graph (2) or (3), as applicable, such license, permit, or 

9 approval shall take effect upon the expiration of 30 days 

10 after the end of such period. The Commission shall incor11 porate into the terms of such license, permit, or approval 

12 any conditions proffered by the agency described in para13 graph (2) that the Commission does not find are incon14 sistent with the final environmental document. 

15 ‘‘(5) For purposes of this subsection, the term 

16 ‘prefiled project’ means a project for the siting, construc17 tion, expansion, or operation of a natural gas pipeline with 

18 respect to which a prefiling docket number has been as19 signed by the Commission pursuant to a prefiling process 

20 established by the Commission for the purpose of facili21 tating the formal application process for obtaining a cer22 tificate of public convenience and necessity.’’. 


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1 Subtitle C—North American 

2 Energy Infrastructure 

3 SEC. 4301. FINDING. 

4 Congress finds that the United States should estab5 lish a more uniform, transparent, and modern process for 

6 the construction, connection, operation, and maintenance 

7 of oil and natural gas pipelines and electric transmission 

8 facilities for the import and export of oil and natural gas 

9 and the transmission of electricity to and from Canada 

10 and Mexico, in pursuit of a more secure and efficient 

11 North American energy market. 

12 SEC. 4302. AUTHORIZATION OF CERTAIN ENERGY INFRA13 STRUCTURE PROJECTS AT THE NATIONAL 

14 BOUNDARY OF THE UNITED STATES. 

15 (a) AUTHORIZATION.—Except as provided in sub16 section (c) and section 4306, no person may construct, 

17 connect, operate, or maintain a cross-border segment of 

18 an oil pipeline or electric transmission facility for the im19 port or export of oil or the transmission of electricity to 

20 or from Canada or Mexico without obtaining a certificate 

21 of crossing for the construction, connection, operation, or 

22 maintenance of the cross-border segment under this sec23 tion. 

24 (b) CERTIFICATE OF CROSSING.— 


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1 (1) REQUIREMENT.—Not later than 120 days 

2 after final action is taken under the National Envi3 ronmental Policy Act of 1969 (42 U.S.C. 4321 et 

4 seq.) with respect to a cross-border segment for 

5 which a request is received under this section, the 

6 relevant official identified under paragraph (2), in 

7 consultation with appropriate Federal agencies, shall 

8 issue a certificate of crossing for the cross-border 

9 segment unless the relevant official finds that the 

10 construction, connection, operation, or maintenance 

11 of the cross-border segment is not in the public in12 terest of the United States. 

13 (2) RELEVANT OFFICIAL.—The relevant official 

14 referred to in paragraph (1) is— 

15 (A) the Secretary of State with respect to 

16 oil pipelines; and 

17 (B) the Secretary of Energy with respect 

18 to electric transmission facilities. 

19 (3) ADDITIONAL REQUIREMENT FOR ELECTRIC

20 TRANSMISSION FACILITIES.—In the case of a request 

21 for a certificate of crossing for the construction, con22 nection, operation, or maintenance of a cross-border 

23 segment of an electric transmission facility, the Sec24 retary of Energy shall require, as a condition of 

25 issuing the certificate of crossing for the request 


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1 under paragraph (1), that the cross-border segment 

2 of the electric transmission facility be constructed, 

3 connected, operated, or maintained consistent with 

4 all applicable policies and standards of— 

5 (A) the Electric Reliability Organization 

6 and the applicable regional entity; and 

7 (B) any Regional Transmission Organiza8 tion or Independent System Operator with 

9 operational or functional control over the cross10 border segment of the electric transmission fa11 cility. 

12 (c) EXCLUSIONS.—This section shall not apply to any 

13 construction, connection, operation, or maintenance of a 

14 cross-border segment of an oil pipeline or electric trans15 mission facility for the import or export of oil or the trans16 mission of electricity to or from Canada or Mexico— 

17 (1) if the cross-border segment is operating for 

18 such import, export, or transmission as of the date 

19 of enactment of this Act; 

20 (2) if a permit described in section 4305 for 

21 such construction, connection, operation, or mainte22 nance has been issued; 

23 (3) if a certificate of crossing for such construc24 tion, connection, operation, or maintenance has pre25 viously been issued under this section; or 


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1 (4) if an application for a permit described in 

2 section 4305 for such construction, connection, oper3 ation, or maintenance is pending on the date of en4 actment of this Act, until the earlier of— 

5 (A) the date on which such application is 

6 denied; or 

7 (B) July 1, 2016. 

8 (d) EFFECT OF OTHER LAWS.— 

9 (1) APPLICATION TO PROJECTS.—Nothing in 

10 this section or section 4306 shall affect the applica11 tion of any other Federal statute to a project for 

12 which a certificate of crossing for the construction, 

13 connection, operation, or maintenance of a cross-bor14 der segment is sought under this section. 

15 (2) NATURAL GAS ACT.—Nothing in this sec16 tion or section 4306 shall affect the requirement to 

17 obtain approval or authorization under sections 3 

18 and 7 of the Natural Gas Act for the siting, con19 struction, or operation of any facility to import or 

20 export natural gas. 

21 (3) ENERGY POLICY AND CONSERVATION

22 ACT.—Nothing in this section or section 4306 shall 

23 affect the authority of the President under section 

24 103(a) of the Energy Policy and Conservation Act. 


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1 SEC. 4303. IMPORTATION OR EXPORTATION OF NATURAL 

2 GAS TO CANADA AND MEXICO. 

3 Section 3(c) of the Natural Gas Act (15 U.S.C. 

4 717b(c)) is amended by adding at the end the following: 

5 ‘‘No order is required under subsection (a) to authorize 

6 the export or import of any natural gas to or from Canada 

7 or Mexico.’’. 

8 SEC. 4304. TRANSMISSION OF ELECTRIC ENERGY TO CAN9 ADA AND MEXICO. 

10 (a) REPEAL OF REQUIREMENT TO SECURE

11 ORDER.—Section 202(e) of the Federal Power Act (16 

12 U.S.C. 824a(e)) is repealed. 

13 (b) CONFORMING AMENDMENTS.— 

14 (1) STATE REGULATIONS.—Section 202(f) of 

15 the Federal Power Act (16 U.S.C. 824a(f)) is 

16 amended by striking ‘‘insofar as such State regula17 tion does not conflict with the exercise of the Com18 mission’s powers under or relating to subsection 

19 202(e)’’. 

20 (2) SEASONAL DIVERSITY ELECTRICITY EX21 CHANGE.—Section 602(b) of the Public Utility Reg22 ulatory Policies Act of 1978 (16 U.S.C. 824a–4(b)) 

23 is amended by striking ‘‘the Commission has con24 ducted hearings and made the findings required 

25 under section 202(e) of the Federal Power Act’’ and 

26 all that follows through the period at the end and 


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1 inserting ‘‘the Secretary has conducted hearings and 

2 finds that the proposed transmission facilities would 

3 not impair the sufficiency of electric supply within 

4 the United States or would not impede or tend to 

5 impede the coordination in the public interest of fa6 cilities subject to the jurisdiction of the Secretary.’’. 

7 SEC. 4305. NO PRESIDENTIAL PERMIT REQUIRED. 

8 No Presidential permit (or similar permit) required 

9 under Executive Order No. 13337 (3 U.S.C. 301 note), 

10 Executive Order No. 11423 (3 U.S.C. 301 note), section 

11 301 of title 3, United States Code, Executive Order No. 

12 12038, Executive Order No. 10485, or any other Execu13 tive order shall be necessary for the construction, connec14 tion, operation, or maintenance of an oil or natural gas 

15 pipeline or electric transmission facility, or any cross-bor16 der segment thereof. 

17 SEC. 4306. MODIFICATIONS TO EXISTING PROJECTS. 

18 No certificate of crossing under section 4302, or per19 mit described in section 4305, shall be required for a 

20 modification to the construction, connection, operation, or 

21 maintenance of an oil or natural gas pipeline or electric 

22 transmission facility— 

23 (1) that is operating for the import or export 

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1 tricity to or from Canada or Mexico as of the date 

2 of enactment of the Act; 

3 (2) for which a permit described in section 

4 4305 for such construction, connection, operation, or 

5 maintenance has been issued; or 

6 (3) for which a certificate of crossing for the 

7 cross-border segment of the pipeline or facility has 

8 previously been issued under section 4302. 

9 SEC. 4307. EFFECTIVE DATE; RULEMAKING DEADLINES. 

10 (a) EFFECTIVE DATE.—Sections 4302 through 4306, 

11 and the amendments made by such sections, shall take ef12 fect on July 1, 2015. 

13 (b) RULEMAKING DEADLINES.—Each relevant offi14 cial described in section 4302(b)(2) shall— 

15 (1) not later than 180 days after the date of 

16 enactment of this Act, publish in the Federal Reg17 ister notice of a proposed rulemaking to carry out 

18 the applicable requirements of section 4302; and 

19 (2) not later than 1 year after the date of en20 actment of this Act, publish in the Federal Register 

21 a final rule to carry out the applicable requirements 

22 of section 4302. 

23 SEC. 4308. DEFINITIONS. 

24 In this subtitle— 


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1 (1) the term ‘‘cross-border segment’’ means the 

2 portion of an oil or natural gas pipeline or electric 

3 transmission facility that is located at the national 

4 boundary of the United States with either Canada or 

5 Mexico; 

6 (2) the term ‘‘modification’’ includes a reversal 

7 of flow direction, change in ownership, volume ex8 pansion, downstream or upstream interconnection, 

9 or adjustment to maintain flow (such as a reduction 

10 or increase in the number of pump or compressor 

11 stations); 

12 (3) the term ‘‘natural gas’’ has the meaning 

13 given that term in section 2 of the Natural Gas Act 

14 (15 U.S.C. 717a); 

15 (4) the term ‘‘oil’’ means petroleum or a petro16 leum product; 

17 (5) the terms ‘‘Electric Reliability Organiza18 tion’’ and ‘‘regional entity’’ have the meanings given 

19 those terms in section 215 of the Federal Power Act 

20 (16 U.S.C. 824o); and 

21 (6) the terms ‘‘Independent System Operator’’ 

22 and ‘‘Regional Transmission Organization’’ have the 

23 meanings given those terms in section 3 of the Fed24 eral Power Act (16 U.S.C. 796). 


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1 Subtitle D—Protecting States’ 

2 Rights To Promote American 

3 Energy Security Act 

4 CHAPTER 1—STATE AUTHORITY FOR 

5 HYDRAULIC FRACTURING REGULATION 

6 SEC. 4411. STATE AUTHORITY FOR HYDRAULIC FRAC7 TURING REGULATION. 

8 The Mineral Leasing Act (30 U.S.C. 181 et seq.) is 

9 amended by redesignating section 44 as section 45, and 

10 by inserting after section 43 the following: 

11 ‘‘SEC. 44. STATE AUTHORITY FOR HYDRAULIC FRACTURING 

12 REGULATION. 

13 ‘‘(a) IN GENERAL.—The Department of the Interior 

14 shall not enforce any Federal regulation, guidance, or per15 mit requirement regarding hydraulic fracturing, or any 

16 component of that process, relating to oil, gas, or geo17 thermal production activities on or under any land in any 

18 State that has regulations, guidance, or permit require19 ments for that activity. 

20 ‘‘(b) STATE AUTHORITY.—The Department of the 

21 Interior shall recognize and defer to State regulations, 

22 permitting, and guidance, for all activities related to hy23 draulic fracturing, or any component of that process, re24 lating to oil, gas, or geothermal production activities on 

25 Federal land. 


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1 ‘‘(c) TRANSPARENCY OF STATE REGULATIONS.— 

2 ‘‘(1) IN GENERAL.—Each State shall submit to 

3 the Bureau of Land Management a copy of its regu4 lations that apply to hydraulic fracturing operations 

5 on Federal land. 

6 ‘‘(2) AVAILABILITY.—The Secretary of the In7 terior shall make available to the public State regu8 lations submitted under this subsection. 

9 ‘‘(d) TRANSPARENCY OF STATE DISCLOSURE RE10 QUIREMENTS.— 

11 ‘‘(1) IN GENERAL.—Each State shall submit to 

12 the Bureau of Land Management a copy of any reg13 ulations of the State that require disclosure of 

14 chemicals used in hydraulic fracturing operations on 

15 Federal land. 

16 ‘‘(2) AVAILABILITY.—The Secretary of the In17 terior shall make available to the public State regu18 lations submitted under this subsection. 

19 ‘‘(e) HYDRAULIC FRACTURING DEFINED.—In this 

20 section the term ‘hydraulic fracturing’ means the process 

21 by which fracturing fluids (or a fracturing fluid system) 

22 are pumped into an underground geologic formation at a 

23 calculated, predetermined rate and pressure to generate 

24 fractures or cracks in the target formation and thereby 


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1 increase the permeability of the rock near the wellbore and 

2 improve production of natural gas or oil.’’. 

3 SEC. 4412. GOVERNMENT ACCOUNTABILITY OFFICE STUDY. 

4 (a) STUDY.—The Comptroller General of the United 

5 States shall conduct a study examining the economic bene6 fits of domestic shale oil and gas production resulting from 

7 the process of hydraulic fracturing. This study will include 

8 identification of— 

9 (1) State and Federal revenue generated as a 

10 result of shale gas production; 

11 (2) jobs created both directly and indirectly as 

12 a result of shale oil and gas production; and 

13 (3) an estimate of potential energy prices with14 out domestic shale oil and gas production. 

15 (b) REPORT.—The Comptroller General shall submit 

16 a report on the findings of such study to the Committee 

17 on Natural Resources of the House of Representatives 

18 within 30 days after completion of the study. 

19 SEC. 4413. TRIBAL AUTHORITY ON TRUST LAND. 

20 The Department of the Interior shall not enforce any 

21 Federal regulation, guidance, or permit requirement re22 garding the process of hydraulic fracturing (as that term 

23 is defined in section 44 of the Mineral Leasing Act, as 

24 amended by section 4411 of this Act), or any component 

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1 tion activities on any land held in trust or restricted status 

2 for the benefit of Indians except with the express consent 

3 of the beneficiary on whose behalf such land is held in 

4 trust or restricted status. 

5 CHAPTER 2—EPA HYDRAULIC 

6 FRACTURING RESEARCH 

7 SEC. 4421. EPA HYDRAULIC FRACTURING RESEARCH. 

8 In conducting its study of the potential impacts of 

9 hydraulic fracturing on drinking water resources, with re10 spect to which a request for information was issued under 

11 Federal Register Vol. 77, No. 218, the Administrator of 

12 the Environmental Protection Agency shall adhere to the 

13 following requirements: 

14 (1) PEER REVIEW AND INFORMATION QUAL15 ITY.—Prior to issuance and dissemination of any 

16 final report or any interim report summarizing the 

17 Environmental Protection Agency’s research on the 

18 relationship between hydraulic fracturing and drink19 ing water, the Administrator shall— 

20 (A) consider such reports to be Highly In21 fluential Scientific Assessments and require 

22 peer review of such reports in accordance with 

23 guidelines governing such assessments, as de24 scribed in— 


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1 (i) the Environmental Protection 

2 Agency’s Peer Review Handbook 3rd Edi3 tion; 

4 (ii) the Environmental Protection 

5 Agency’s Scientific Integrity Policy, as in 

6 effect on the date of enactment of this Act; 

7 and 

8 (iii) the Office of Management and 

9 Budget’s Peer Review Bulletin, as in effect 

10 on the date of enactment of this Act; and 

11 (B) require such reports to meet the stand12 ards and procedures for the dissemination of in13 fluential scientific, financial, or statistical infor14 mation set forth in the Environmental Protec15 tion Agency’s Guidelines for Ensuring and 

16 Maximizing the Quality, Objectivity, Utility, 

17 and Integrity of Information Disseminated by 

18 the Environmental Protection Agency, devel19 oped in response to guidelines issued by the Of20 fice of Management and Budget under section 

21 515(a) of the Treasury and General Govern22 ment Appropriations Act for Fiscal Year 2001 

23 (Public Law 106–554). 

24 (2) PROBABILITY, UNCERTAINTY, AND CON25 SEQUENCE.—In order to maximize the quality and 


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1 utility of information developed through the study, 

2 the Administrator shall ensure that identification of 

3 the possible impacts of hydraulic fracturing on 

4 drinking water resources included in such reports be 

5 accompanied by objective estimates of the prob6 ability, uncertainty, and consequence of each identi7 fied impact, taking into account the risk manage8 ment practices of States and industry. Estimates or 

9 descriptions of probability, uncertainty, and con10 sequence shall be as quantitative as possible given 

11 the validity, accuracy, precision, and other quality 

12 attributes of the underlying data and analyses, but 

13 no more quantitative than the data and analyses can 

14 support. 

15 (3) RELEASE OF FINAL REPORT.—The final re16 port shall be publicly released by September 30, 

17 2016. 

18 CHAPTER 3—MISCELLANEOUS 

19 PROVISIONS 

20 SEC. 4431. REVIEW OF STATE ACTIVITIES. 

21 The Secretary of the Interior shall annually review 

22 and report to Congress on all State activities relating to 

23 hydraulic fracturing. 


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1 Subtitle E—Offshore Energy and 

2 Jobs 

3 CHAPTER 1—OUTER CONTINENTAL SHELF 

4 LEASING PROGRAM REFORMS 

5 SEC. 4511. OUTER CONTINENTAL SHELF LEASING PRO6 GRAM REFORMS. 

7 Section 18(a) of the Outer Continental Shelf Lands 

8 Act (43 U.S.C. 1344(a)) is amended by adding at the end 

9 the following: 

10 ‘‘(5)(A) In each oil and gas leasing program 

11 under this section, the Secretary shall make avail12 able for leasing and conduct lease sales including at 

13 least 50 percent of the available unleased acreage 

14 within each outer Continental Shelf planning area 

15 considered to have the largest undiscovered, tech16 nically recoverable oil and gas resources (on a total 

17 btu basis) based upon the most recent national geo18 logic assessment of the outer Continental Shelf, with 

19 an emphasis on offering the most geologically pro20 spective parts of the planning area. 

21 ‘‘(B) The Secretary shall include in each pro22 posed oil and gas leasing program under this section 

23 any State subdivision of an outer Continental Shelf 

24 planning area that the Governor of the State that 

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1 able for leasing. The Secretary may not remove such 

2 a subdivision from the program until publication of 

3 the final program, and shall include and consider all 

4 such subdivisions in any environmental review con5 ducted and statement prepared for such program 

6 under section 102(2) of the National Environmental 

7 Policy Act of 1969 (42 U.S.C. 4332(2)). 

8 ‘‘(C) In this paragraph the term ‘available un9 leased acreage’ means that portion of the outer Con10 tinental Shelf that is not under lease at the time of 

11 a proposed lease sale, and that has not otherwise 

12 been made unavailable for leasing by law. 

13 ‘‘(6)(A) In the 5-year oil and gas leasing pro14 gram, the Secretary shall make available for leasing 

15 any outer Continental Shelf planning areas that— 

16 ‘‘(i) are estimated to contain more than 

17 2,500,000,000 barrels of oil; or 

18 ‘‘(ii) are estimated to contain more than 

19 7,500,000,000,000 cubic feet of natural gas. 

20 ‘‘(B) To determine the planning areas described 

21 in subparagraph (A), the Secretary shall use the 

22 document entitled ‘Minerals Management Service 

23 Assessment of Undiscovered Technically Recoverable 

24 Oil and Gas Resources of the Nation’s Outer Conti25 nental Shelf, 2006’.’’. 


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1 SEC. 4512. DOMESTIC OIL AND NATURAL GAS PRODUCTION 

2 GOAL. 

3 Section 18(b) of the Outer Continental Shelf Lands 

4 Act (43 U.S.C. 1344(b)) is amended to read as follows: 

5 ‘‘(b) DOMESTIC OIL AND NATURAL GAS PRODUC6 TION GOAL.—– 

7 ‘‘(1) IN GENERAL.—In developing a 5-year oil 

8 and gas leasing program, and subject to paragraph 

9 (2), the Secretary shall determine a domestic stra10 tegic production goal for the development of oil and 

11 natural gas as a result of that program. Such goal 

12 shall be— 

13 ‘‘(A) the best estimate of the possible in14 crease in domestic production of oil and natural 

15 gas from the outer Continental Shelf; 

16 ‘‘(B) focused on meeting domestic demand 

17 for oil and natural gas and reducing the de18 pendence of the United States on foreign en19 ergy; and 

20 ‘‘(C) focused on the production increases 

21 achieved by the leasing program at the end of 

22 the 15-year period beginning on the effective 

23 date of the program. 

24 ‘‘(2) PROGRAM GOAL.—For purposes of the 5- 

25 year oil and gas leasing program, the production 


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1 goal referred to in paragraph (1) shall be an in2 crease by 2032 of— 

3 ‘‘(A) no less than 3,000,000 barrels in the 

4 amount of oil produced per day; and 

5 ‘‘(B) no less than 10,000,000,000 cubic 

6 feet in the amount of natural gas produced per 

7 day. 

8 ‘‘(3) REPORTING.—The Secretary shall report 

9 annually, beginning at the end of the 5-year period 

10 for which the program applies, to the Committee on 

11 Natural Resources of the House of Representatives 

12 and the Committee on Energy and Natural Re13 sources of the Senate on the progress of the pro14 gram in meeting the production goal. The Secretary 

15 shall identify in the report projections for production 

16 and any problems with leasing, permitting, or pro17 duction that will prevent meeting the goal.’’. 

18 SEC. 4513. DEVELOPMENT AND SUBMITTAL OF NEW 5-YEAR 

19 OIL AND GAS LEASING PROGRAM. 

20 (a) IN GENERAL.—The Secretary of the Interior 

21 shall— 

22 (1) by not later than July 15, 2015, publish 

23 and submit to Congress a new proposed oil and gas 

24 leasing program under section 18 of the Outer Con25 tinental Shelf Lands Act (43 U.S.C. 1344) for the 


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1 5-year period beginning on such date and ending 

2 July 15, 2021; and 

3 (2) by not later than July 15, 2016, approve a 

4 final oil and gas leasing program under such section 

5 for such period. 

6 (b) CONSIDERATION OF ALL AREAS.—In preparing 

7 such program the Secretary shall include consideration of 

8 areas of the Continental Shelf off the coasts of all States 

9 (as such term is defined in section 2 of that Act, as 

10 amended by this Act), that are subject to leasing under 

11 this Act. 

12 (c) TECHNICAL CORRECTION.—Section 18(d)(3) of 

13 the Outer Continental Shelf Lands Act (43 U.S.C. 

14 1344(d)(3)) is amended by striking ‘‘or after eighteen 

15 months following the date of enactment of this section, 

16 whichever first occurs,’’. 

17 SEC. 4514. RULE OF CONSTRUCTION. 

18 Nothing in this subtitle shall be construed to author19 ize the issuance of a lease under the Outer Continental 

20 Shelf Lands Act (43 U.S.C. 1331 et seq.) to any person 

21 designated for the imposition of sanctions pursuant to— 

22 (1) the Iran Sanctions Act of 1996 (50 U.S.C. 

23 1701 note), the Comprehensive Iran Sanctions, Ac24 countability and Divestiture Act of 2010 (22 U.S.C. 

25 8501 et seq.), the Iran Threat Reduction and Syria 


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1 Human Rights Act of 2012 (22 U.S.C. 8701 et 

2 seq.), section 1245 of the National Defense Author3 ization Act for Fiscal Year 2012 (22 U.S.C. 8513a), 

4 or the Iran Freedom and Counter-Proliferation Act 

5 of 2012 (22 U.S.C. 8801 et seq.); 

6 (2) Executive Order No. 13622 (July 30, 

7 2012), Executive Order No. 13628 (October 9, 

8 2012), or Executive Order No. 13645 (June 3, 

9 2013); 

10 (3) Executive Order No. 13224 (September 23, 

11 2001) or Executive Order No. 13338 (May 11, 

12 2004); or 

13 (4) the Syria Accountability and Lebanese Sov14 ereignty Restoration Act of 2003 (22 U.S.C. 2151 

15 note). 

16 CHAPTER 2—DIRECTING THE PRESIDENT 

17 TO CONDUCT NEW OCS SALES IN VIR18 GINIA, SOUTH CAROLINA, AND CALI19 FORNIA 

20 SEC. 4521. REQUIREMENT TO CONDUCT PROPOSED OIL 

21 AND GAS LEASE SALE 220 ON THE OUTER 

22 CONTINENTAL SHELF OFFSHORE VIRGINIA. 

23 (a) IN GENERAL.—Notwithstanding the exclusion of 

24 Lease Sale 220 in the Final Outer Continental Shelf Oil 

25 & Gas Leasing Program 2012–2017, the Secretary of the 


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1 Interior shall conduct offshore oil and gas Lease Sale 220 

2 under section 8 of the Outer Continental Shelf Lands Act 

3 (43 U.S.C. 1337) as soon as practicable, but not later 

4 than one year after the date of enactment of this Act. 

5 (b) REQUIREMENT TO MAKE REPLACEMENT LEASE

6 BLOCKS AVAILABLE.—For each lease block in a proposed 

7 lease sale under this section for which the Secretary of 

8 Defense, in consultation with the Secretary of the Interior, 

9 under the Memorandum of Agreement referred to in sec10 tion 4525(b), issues a statement proposing deferral from 

11 a lease offering due to defense-related activities that are 

12 irreconcilable with mineral exploration and development, 

13 the Secretary of the Interior, in consultation with the Sec14 retary of Defense, shall make available in the same lease 

15 sale one other lease block in the Virginia lease sale plan16 ning area that is acceptable for oil and gas exploration 

17 and production in order to mitigate conflict. 

18 (c) BALANCING MILITARY AND ENERGY PRODUC19 TION GOALS.—In recognition that the Outer Continental 

20 Shelf oil and gas leasing program and the domestic energy 

21 resources produced therefrom are integral to national se22 curity, the Secretary of the Interior and the Secretary of 

23 Defense shall work jointly in implementing this section in 

24 order to ensure achievement of the following common 

25 goals: 


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1 (1) Preserving the ability of the Armed Forces 

2 of the United States to maintain an optimum state 

3 of readiness through their continued use of the 

4 Outer Continental Shelf. 

5 (2) Allowing effective exploration, development, 

6 and production of our Nation’s oil, gas, and renew7 able energy resources. 

8 (d) DEFINITIONS.—In this section: 

9 (1) LEASE SALE 220.—The term ‘‘Lease Sale 

10 220’’ means such lease sale referred to in the Re11 quest for Comments on the Draft Proposed 5-Year 

12 Outer Continental Shelf (OCS) Oil and Gas Leasing 

13 Program for 2010–2015 and Notice of Intent To 

14 Prepare an Environmental Impact Statement (EIS) 

15 for the Proposed 5-Year Program published January 

16 21, 2009 (74 Fed. Reg. 3631). 

17 (2) VIRGINIA LEASE SALE PLANNING AREA.— 

18 The term ‘‘Virginia lease sale planning area’’ means 

19 the area of the outer Continental Shelf (as that term 

20 is defined in the Outer Continental Shelf Lands Act 

21 (33 U.S.C. 1331 et seq.)) that is bounded by— 

22 (A) a northern boundary consisting of a 

23 straight line extending from the northernmost 

24 point of Virginia’s seaward boundary to the 

25 point on the seaward boundary of the United 


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1 States exclusive economic zone located at 37 de2 grees 17 minutes 1 second North latitude, 71 

3 degrees 5 minutes 16 seconds West longitude; 

4 and 

5 (B) a southern boundary consisting of a 

6 straight line extending from the southernmost 

7 point of Virginia’s seaward boundary to the 

8 point on the seaward boundary of the United 

9 States exclusive economic zone located at 36 de10 grees 31 minutes 58 seconds North latitude, 71 

11 degrees 30 minutes 1 second West longitude. 

12 SEC. 4522. SOUTH CAROLINA LEASE SALE. 

13 Notwithstanding inclusion of the South Atlantic 

14 Outer Continental Shelf Planning Area in the Final Outer 

15 Continental Shelf Oil & Gas Leasing Program 2012–2017, 

16 the Secretary of the Interior shall conduct a lease sale not 

17 later than 2 years after the date of the enactment of this 

18 Act for areas off the coast of South Carolina determined 

19 by the Secretary to have the most geologically promising 

20 hydrocarbon resources and constituting not less than 25 

21 percent of the leasable area within the South Carolina off22 shore administrative boundaries depicted in the notice en23 titled ‘‘Federal Outer Continental Shelf (OCS) Adminis24 trative Boundaries Extending from the Submerged Lands 

25 Act Boundary seaward to the Limit of the United States 


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1 Outer Continental Shelf’’, published January 3, 2006 (71 

2 Fed. Reg. 127). 

3 SEC. 4523. SOUTHERN CALIFORNIA EXISTING INFRASTRUC4 TURE LEASE SALE. 

5 (a) IN GENERAL.—The Secretary of the Interior shall 

6 offer for sale leases of tracts in the Santa Maria and 

7 Santa Barbara/Ventura Basins of the Southern California 

8 OCS Planning Area as soon as practicable, but not later 

9 than December 31, 2015. 

10 (b) USE OF EXISTING STRUCTURES OR ONSHORE11 BASED DRILLING.—The Secretary of the Interior shall in12 clude in leases offered for sale under this lease sale such 

13 terms and conditions as are necessary to require that de14 velopment and production may occur only from offshore 

15 infrastructure in existence on the date of the enactment 

16 of this Act or from onshore-based, extended-reach drilling. 

17 SEC. 4524. ENVIRONMENTAL IMPACT STATEMENT RE18 QUIREMENT. 

19 (a) IN GENERAL.—For the purposes of this subtitle, 

20 the Secretary of the Interior shall prepare a multisale en21 vironmental impact statement under section 102 of the 

22 National Environmental Policy Act of 1969 (42 U.S.C. 

23 4332) for all lease sales required under this chapter. 


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1 (b) ACTIONS TO BE CONSIDERED.—Notwithstanding 

2 section 102 of the National Environmental Policy Act of 

3 1969 (42 U.S.C. 4332), in such statement— 

4 (1) the Secretary is not required to identify 

5 nonleasing alternative courses of action or to analyze 

6 the environmental effects of such alternative courses 

7 of action; and 

8 (2) the Secretary shall only— 

9 (A) identify a preferred action for leasing 

10 and not more than one alternative leasing pro11 posal; and 

12 (B) analyze the environmental effects and 

13 potential mitigation measures for such pre14 ferred action and such alternative leasing pro15 posal. 

16 SEC. 4525. NATIONAL DEFENSE. 

17 (a) NATIONAL DEFENSE AREAS.—This subtitle does 

18 not affect the existing authority of the Secretary of De19 fense, with the approval of the President, to designate na20 tional defense areas on the Outer Continental Shelf pursu21 ant to section 12(d) of the Outer Continental Shelf Lands 

22 Act (43 U.S.C. 1341(d)). 

23 (b) PROHIBITION ON CONFLICTS WITH MILITARY

24 OPERATIONS.—No person may engage in any exploration, 

25 development, or production of oil or natural gas on the 


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1 Outer Continental Shelf under a lease issued under this 

2 subtitle that would conflict with any military operation, 

3 as determined in accordance with the Memorandum of 

4 Agreement between the Department of Defense and the 

5 Department of the Interior on Mutual Concerns on the 

6 Outer Continental Shelf signed July 20, 1983, and any 

7 revision or replacement for that agreement that is agreed 

8 to by the Secretary of Defense and the Secretary of the 

9 Interior after that date but before the date of issuance 

10 of the lease under which such exploration, development, 

11 or production is conducted. 

12 SEC. 4526. EASTERN GULF OF MEXICO NOT INCLUDED. 

13 Nothing in this subtitle affects restrictions on oil and 

14 gas leasing under the Gulf of Mexico Energy Security Act 

15 of 2006 (title I of division C of Public Law 109–432; 43 

16 U.S.C. 1331 note). 

17 CHAPTER 3—EQUITABLE SHARING OF 

18 OUTER CONTINENTAL SHELF REVENUES 

19 SEC. 4531. DISPOSITION OF OUTER CONTINENTAL SHELF 

20 REVENUES TO COASTAL STATES. 

21 (a) IN GENERAL.—Section 9 of the Outer Conti22 nental Shelf Lands Act (43 U.S.C. 1338) is amended— 

23 (1) in the existing text— 

24 (A) in the first sentence, by striking ‘‘All 

25 rentals,’’ and inserting the following: 


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1 ‘‘(c) DISPOSITION OF REVENUE UNDER OLD

2 LEASES.—All rentals,’’; and 

3 (B) in subsection (c) (as designated by the 

4 amendment made by subparagraph (A) of this 

5 paragraph), by striking ‘‘for the period from 

6 June 5, 1950, to date, and thereafter’’ and in7 serting ‘‘in the period beginning June 5, 1950, 

8 and ending on the date of enactment of the 

9 American Renaissance in Manufacturing Act’’; 

10 (2) by adding after subsection (c) (as so des11 ignated) the following: 

12 ‘‘(d) DEFINITIONS.—In this section: 

13 ‘‘(1) COASTAL STATE.—The term ‘coastal 

14 State’ includes a territory of the United States. 

15 ‘‘(2) NEW LEASING REVENUES.—The term ‘new 

16 leasing revenues’— 

17 ‘‘(A) means amounts received by the 

18 United States as bonuses, rents, and royalties 

19 under leases for oil and gas, wind, tidal, or 

20 other energy exploration, development, and pro21 duction on new areas of the outer Continental 

22 Shelf that are authorized to be made available 

23 for leasing as a result of enactment of the 

24 American Renaissance in Manufacturing Act 

25 and leasing under that Act; and 


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1 ‘‘(B) does not include amounts received by 

2 the United States under any lease of an area lo3 cated in the boundaries of the Central Gulf of 

4 Mexico and Western Gulf of Mexico Outer Con5 tinental Shelf Planning Areas on the date of en6 actment of the American Renaissance in Manu7 facturing Act, including a lease issued before, 

8 on, or after such date of enactment.’’; and 

9 (3) by inserting before subsection (c) (as so 

10 designated) the following: 

11 ‘‘(a) PAYMENT OF NEW LEASING REVENUES TO

12 COASTAL STATES.— 

13 ‘‘(1) IN GENERAL.—Except as provided in para14 graph (2), of the amount of new leasing revenues re15 ceived by the United States each fiscal year, 37.5 

16 percent shall be allocated and paid in accordance 

17 with subsection (b) to coastal States that are af18 fected States with respect to the leases under which 

19 those revenues are received by the United States. 

20 ‘‘(2) PHASE-IN.— 

21 ‘‘(A) IN GENERAL.—Except as provided in 

22 subparagraph (B), paragraph (1) shall be ap23 plied— 

24 ‘‘(i) with respect to new leasing reve25 nues under leases awarded under the first 


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1 leasing program under section 18(a) that 

2 takes effect after the date of enactment of 

3 the American Renaissance in Manufac4 turing Act, by substituting ‘12.5 percent’ 

5 for ‘37.5 percent’; and 

6 ‘‘(ii) with respect to new leasing reve7 nues under leases awarded under the sec8 ond leasing program under section 18(a) 

9 that takes effect after the date of enact10 ment of the American Renaissance in Man11 ufacturing Act, by substituting ‘25 per12 cent’ for ‘37.5 percent’. 

13 ‘‘(B) EXEMPTED LEASE SALES.—This 

14 paragraph shall not apply with respect to any 

15 lease issued under chapter 2 of subtitle E of 

16 title IV of the American Renaissance in Manu17 facturing Act. 

18 ‘‘(b) ALLOCATION OF PAYMENTS.— 

19 ‘‘(1) IN GENERAL.—The amount of new leasing 

20 revenues received by the United States with respect 

21 to a leased tract that are required to be paid to 

22 coastal States in accordance with this subsection 

23 each fiscal year shall be allocated among and paid 

24 to coastal States that are within 200 miles of the 

25 leased tract, in amounts that are inversely proporVerDate Mar 15 2010 03:23 Aug 16, 2014 Jkt 039200 PO 00000 Frm 00222 Fmt 6652 Sfmt 6201 E:\BILLS\H5360.IH H5360

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1 tional to the respective distances between the point 

2 on the coastline of each such State that is closest to 

3 the geographic center of the lease tract, as deter4 mined by the Secretary. 

5 ‘‘(2) MINIMUM AND MAXIMUM ALLOCATION.— 

6 The amount allocated to a coastal State under para7 graph (1) each fiscal year with respect to a leased 

8 tract shall be— 

9 ‘‘(A) in the case of a coastal State that is 

10 the nearest State to the geographic center of 

11 the leased tract, not less than 25 percent of the 

12 total amounts allocated with respect to the 

13 leased tract; 

14 ‘‘(B) in the case of any other coastal State, 

15 not less than 10 percent, and not more than 15 

16 percent, of the total amounts allocated with re17 spect to the leased tract; and 

18 ‘‘(C) in the case of a coastal State that is 

19 the only coastal State within 200 miles of a 

20 leased tract, 100 percent of the total amounts 

21 allocated with respect to the leased tract. 

22 ‘‘(3) ADMINISTRATION.—Amounts allocated to 

23 a coastal State under this subsection— 

24 ‘‘(A) shall be available to the coastal State 

25 without further appropriation; 


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1 ‘‘(B) shall remain available until expended; 

2 ‘‘(C) shall be in addition to any other 

3 amounts available to the coastal State under 

4 this Act; and 

5 ‘‘(D) shall be distributed in the fiscal year 

6 following receipt. 

7 ‘‘(4) USE OF FUNDS.— 

8 ‘‘(A) IN GENERAL.—Except as provided in 

9 subparagraph (B), a coastal State may use 

10 funds allocated and paid to it under this sub11 section for any purpose as determined by the 

12 laws of that State. 

13 ‘‘(B) RESTRICTION ON USE FOR MATCH14 ING.—Funds allocated and paid to a coastal 

15 State under this subsection may not be used as 

16 matching funds for any other Federal pro17 gram.’’. 

18 (b) LIMITATION ON APPLICATION.—This section and 

19 the amendment made by this section shall not affect the 

20 application of section 105 of the Gulf of Mexico Energy 

21 Security Act of 2006 (title I of division C of Public Law 

22 109–432; (43 U.S.C. 1331 note)), as in effect before the 

23 enactment of this Act, with respect to revenues received 

24 by the United States under oil and gas leases issued for 

25 tracts located in the Western and Central Gulf of Mexico 


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1 Outer Continental Shelf Planning Areas, including such 

2 leases issued on or after the date of the enactment of this 

3 Act. 

4 CHAPTER 4—REORGANIZATION OF MIN5 ERALS MANAGEMENT AGENCIES OF 

6 THE DEPARTMENT OF THE INTERIOR 

7 SEC. 4541. ESTABLISHMENT OF UNDER SECRETARY FOR 

8 ENERGY, LANDS, AND MINERALS AND ASSIST9 ANT SECRETARY OF OCEAN ENERGY AND 

10 SAFETY. 

11 There shall be in the Department of the Interior— 

12 (1) an Under Secretary for Energy, Lands, and 

13 Minerals, who shall— 

14 (A) be appointed by the President, by and 

15 with the advise and consent of the Senate; 

16 (B) report to the Secretary of the Interior 

17 or, if directed by the Secretary, to the Deputy 

18 Secretary of the Interior; 

19 (C) be paid at the rate payable for level III 

20 of the Executive Schedule; and 

21 (D) be responsible for— 

22 (i) the safe and responsible develop23 ment of our energy and mineral resources 

24 on Federal lands in appropriate accordance 

25 with United States energy demands; and 


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1 (ii) ensuring multiple-use missions of 

2 the Department of the Interior that pro3 mote the safe and sustained development 

4 of energy and minerals resources on public 

5 lands (as that term is defined in the Fed6 eral Land Policy and Management Act of 

7 1976 (43 U.S.C. 1701 et seq.)); 

8 (2) an Assistant Secretary of Ocean Energy 

9 and Safety, who shall— 

10 (A) be appointed by the President, by and 

11 with the advise and consent of the Senate; 

12 (B) report to the Under Secretary for En13 ergy, Lands, and Minerals; 

14 (C) be paid at the rate payable for level IV 

15 of the Executive Schedule; and 

16 (D) be responsible for ensuring safe and 

17 efficient development of energy and minerals on 

18 the Outer Continental Shelf of the United 

19 States; and 

20 (3) an Assistant Secretary of Land and Min21 erals Management, who shall— 

22 (A) be appointed by the President, by and 

23 with the advise and consent of the Senate; 

24 (B) report to the Under Secretary for En25 ergy, Lands, and Minerals; 


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1 (C) be paid at the rate payable for level IV 

2 of the Executive Schedule; and 

3 (D) be responsible for ensuring safe and 

4 efficient development of energy and minerals on 

5 public lands and other Federal onshore lands 

6 under the jurisdiction of the Department of the 

7 Interior, including implementation of the Min8 eral Leasing Act (30 U.S.C. 181 et seq.) and 

9 the Surface Mining Control and Reclamation 

10 Act (30 U.S.C. 1201 et seq.) and administra11 tion of the Office of Surface Mining. 

12 SEC. 4542. BUREAU OF OCEAN ENERGY. 

13 (a) ESTABLISHMENT.—There is established in the 

14 Department of the Interior a Bureau of Ocean Energy (re15 ferred to in this section as the ‘‘Bureau’’), which shall— 

16 (1) be headed by a Director of Ocean Energy 

17 (referred to in this section as the ‘‘Director’’); and 

18 (2) be administered under the direction of the 

19 Assistant Secretary of Ocean Energy and Safety. 

20 (b) DIRECTOR.— 

21 (1) APPOINTMENT.—The Director shall be ap22 pointed by the Secretary of the Interior. 

23 (2) COMPENSATION.—The Director shall be 

24 compensated at the rate provided for level V of the 


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1 Executive Schedule under section 5316 of title 5, 

2 United States Code. 

3 (c) DUTIES.— 

4 (1) IN GENERAL.—The Secretary of the Inte5 rior shall carry out through the Bureau all func6 tions, powers, and duties vested in the Secretary re7 lating to the administration of a comprehensive pro8 gram of offshore mineral and renewable energy re9 sources management. 

10 (2) SPECIFIC AUTHORITIES.—The Director 

11 shall promulgate and implement regulations— 

12 (A) for the proper issuance of leases for 

13 the exploration, development, and production of 

14 nonrenewable and renewable energy and min15 eral resources on the Outer Continental Shelf; 

16 (B) relating to resource identification, ac17 cess, evaluation, and utilization; 

18 (C) for development of leasing plans, lease 

19 sales, and issuance of leases for such resources; 

20 and 

21 (D) regarding issuance of environmental 

22 impact statements related to leasing and post 

23 leasing activities including exploration, develop24 ment, and production, and the use of third 


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1 party contracting for necessary environmental 

2 analysis for the development of such resources. 

3 (3) LIMITATION.—The Secretary shall not carry 

4 out through the Bureau any function, power, or duty 

5 that is— 

6 (A) required by section 4543 to be carried 

7 out through the Ocean Energy Safety Service; 

8 or 

9 (B) required by section 4544 to be carried 

10 out through the Office of Natural Resources 

11 Revenue. 

12 (d) RESPONSIBILITIES OF LAND MANAGEMENT

13 AGENCIES.—Nothing in this section shall affect the au14 thorities of the Bureau of Land Management under the 

15 Federal Land Policy and Management Act of 1976 (43 

16 U.S.C. 1701 et seq.) or of the Forest Service under the 

17 National Forest Management Act of 1976 (Public Law 

18 94–588). 

19 SEC. 4543. OCEAN ENERGY SAFETY SERVICE. 

20 (a) ESTABLISHMENT.—There is established in the 

21 Department of the Interior an Ocean Energy Safety Serv22 ice (referred to in this section as the ‘‘Service’’), which 

23 shall— 

24 (1) be headed by a Director of Energy Safety 

25 (referred to in this section as the ‘‘Director’’); and 


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1 (2) be administered under the direction of the 

2 Assistant Secretary of Ocean Energy and Safety. 

3 (b) DIRECTOR.— 

4 (1) APPOINTMENT.—The Director shall be ap5 pointed by the Secretary of the Interior. 

6 (2) COMPENSATION.—The Director shall be 

7 compensated at the rate provided for level V of the 

8 Executive Schedule under section 5316 of title 5, 

9 United States Code. 

10 (c) DUTIES.— 

11 (1) IN GENERAL.—The Secretary of the Inte12 rior shall carry out through the Service all functions, 

13 powers, and duties vested in the Secretary relating 

14 to the administration of safety and environmental 

15 enforcement activities related to offshore mineral 

16 and renewable energy resources on the Outer Conti17 nental Shelf pursuant to the Outer Continental Shelf 

18 Lands Act (43 U.S.C. 1331 et seq.) including the 

19 authority to develop, promulgate, and enforce regu20 lations to ensure the safe and sound exploration, de21 velopment, and production of mineral and renewable 

22 energy resources on the Outer Continental Shelf in 

23 a timely fashion. 

24 (2) SPECIFIC AUTHORITIES.—The Director 

25 shall be responsible for all safety activities related to 


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1 exploration and development of renewable and min2 eral resources on the Outer Continental Shelf, in3 cluding— 

4 (A) exploration, development, production, 

5 and ongoing inspections of infrastructure; 

6 (B) the suspending or prohibiting, on a 

7 temporary basis, any operation or activity, in8 cluding production under leases held on the 

9 Outer Continental Shelf, in accordance with 

10 section 5(a)(1) of the Outer Continental Shelf 

11 Lands Act (43 U.S.C. 1334(a)(1)); 

12 (C) cancelling any lease, permit, or right13 of-way on the Outer Continental Shelf, in ac14 cordance with section 5(a)(2) of the Outer Con15 tinental Shelf Lands Act (43 U.S.C. 

16 1334(a)(2)); 

17 (D) compelling compliance with applicable 

18 Federal laws and regulations relating to worker 

19 safety and other matters; 

20 (E) requiring comprehensive safety and en21 vironmental management programs for persons 

22 engaged in activities connected with the explo23 ration, development, and production of mineral 

24 or renewable energy resources; 


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1 (F) developing and implementing regula2 tions for Federal employees to carry out any in3 spection or investigation to ascertain compli4 ance with applicable regulations, including 

5 health, safety, or environmental regulations; 

6 (G) implementing the Offshore Technology 

7 Research and Risk Assessment Program under 

8 section 21 of the Outer Continental Shelf 

9 Lands Act (43 U.S.C. 1347); 

10 (H) summoning witnesses and directing 

11 the production of evidence; 

12 (I) levying fines and penalties and disquali13 fying operators; 

14 (J) carrying out any safety, response, and 

15 removal preparedness functions; and 

16 (K) the processing of permits, exploration 

17 plans, development plans. 

18 (d) EMPLOYEES.— 

19 (1) IN GENERAL.—The Secretary shall ensure 

20 that the inspection force of the Bureau consists of 

21 qualified, trained employees who meet qualification 

22 requirements and adhere to the highest professional 

23 and ethical standards. 

24 (2) QUALIFICATIONS.—The qualification re25 quirements referred to in paragraph (1)— 


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1 (A) shall be determined by the Secretary, 

2 subject to subparagraph (B); and 

3 (B) shall include— 

4 (i) 3 years of practical experience in 

5 oil and gas exploration, development, or 

6 production; or 

7 (ii) a degree in an appropriate field of 

8 engineering from an accredited institution 

9 of higher learning. 

10 (3) ASSIGNMENT.—In assigning oil and gas in11 spectors to the inspection and investigation of indi12 vidual operations, the Secretary shall give due con13 sideration to the extent possible to their previous ex14 perience in the particular type of oil and gas oper15 ation in which such inspections are to be made. 

16 (4) BACKGROUND CHECKS.—The Director shall 

17 require that an individual to be hired as an inspec18 tion officer undergo an employment investigation 

19 (including a criminal history record check). 

20 (5) LANGUAGE REQUIREMENTS.—Individuals 

21 hired as inspectors must be able to read, speak, and 

22 write English well enough to— 

23 (A) carry out written and oral instructions 

24 regarding the proper performance of inspection 

25 duties; and 


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1 (B) write inspection reports and state2 ments and log entries in the English language. 

3 (6) VETERANS PREFERENCE.—The Director 

4 shall provide a preference for the hiring of an indi5 vidual as a inspection officer if the individual is a 

6 member or former member of the Armed Forces and 

7 is entitled, under statute, to retired, retirement, or 

8 retainer pay on account of service as a member of 

9 the Armed Forces. 

10 (7) ANNUAL PROFICIENCY REVIEW.— 

11 (A) ANNUAL PROFICIENCY REVIEW.—The 

12 Director shall provide that an annual evaluation 

13 of each individual assigned inspection duties is 

14 conducted and documented. 

15 (B) CONTINUATION OF EMPLOYMENT.—An 

16 individual employed as an inspector may not 

17 continue to be employed in that capacity unless 

18 the evaluation demonstrates that the indi19 vidual— 

20 (i) continues to meet all qualifications 

21 and standards; 

22 (ii) has a satisfactory record of per23 formance and attention to duty based on 

24 the standards and requirements in the in25 spection program; and 


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1 (iii) demonstrates the current knowl2 edge and skills necessary to courteously, 

3 vigilantly, and effectively perform inspec4 tion functions. 

5 (8) LIMITATION ON RIGHT TO STRIKE.—Any 

6 individual that conducts permitting or inspections 

7 under this section may not participate in a strike, or 

8 assert the right to strike. 

9 (9) PERSONNEL AUTHORITY.—Notwithstanding 

10 any other provision of law, the Director may employ, 

11 appoint, discipline and terminate for cause, and fix 

12 the compensation, terms, and conditions of employ13 ment of Federal service for individuals as the em14 ployees of the Service in order to restore and main15 tain the trust of the people of the United States in 

16 the accountability of the management of our Na17 tion’s energy safety program. 

18 (10) TRAINING ACADEMY.— 

19 (A) IN GENERAL.—The Secretary shall es20 tablish and maintain a National Offshore En21 ergy Safety Academy (referred to in this para22 graph as the ‘‘Academy’’) as an agency of the 

23 Ocean Energy Safety Service. 


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1 (B) FUNCTIONS OF ACADEMY.—The Sec2 retary, through the Academy, shall be respon3 sible for— 

4 (i) the initial and continued training 

5 of both newly hired and experienced off6 shore oil and gas inspectors in all aspects 

7 of health, safety, environmental, and oper8 ational inspections; 

9 (ii) the training of technical support 

10 personnel of the Bureau; 

11 (iii) any other training programs for 

12 offshore oil and gas inspectors, Bureau 

13 personnel, Department personnel, or other 

14 persons as the Secretary shall designate; 

15 and 

16 (iv) certification of the successful 

17 completion of training programs for newly 

18 hired and experienced offshore oil and gas 

19 inspectors. 

20 (C) COOPERATIVE AGREEMENTS.— 

21 (i) IN GENERAL.—In performing func22 tions under this paragraph, and subject to 

23 clause (ii), the Secretary may enter into 

24 cooperative educational and training agree25 ments with educational institutions, related 


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1 Federal academies, other Federal agencies, 

2 State governments, safety training firms, 

3 and oil and gas operators and related in4 dustries. 

5 (ii) TRAINING REQUIREMENT.—Such 

6 training shall be conducted by the Acad7 emy in accordance with curriculum needs 

8 and assignment of instructional personnel 

9 established by the Secretary. 

10 (11) USE OF DEPARTMENT PERSONNEL.—In 

11 performing functions under this subsection, the Sec12 retary shall use, to the extent practicable, the facili13 ties and personnel of the Department of the Interior. 

14 The Secretary may appoint or assign to the Acad15 emy such officers and employees as the Secretary 

16 considers necessary for the performance of the du17 ties and functions of the Academy. 

18 (12) ADDITIONAL TRAINING PROGRAMS.— 

19 (A) IN GENERAL.—The Secretary shall 

20 work with appropriate educational institutions, 

21 operators, and representatives of oil and gas 

22 workers to develop and maintain adequate pro23 grams with educational institutions and oil and 

24 gas operators that are designed— 


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1 (i) to enable persons to qualify for po2 sitions in the administration of this sub3 title; and 

4 (ii) to provide for the continuing edu5 cation of inspectors or other appropriate 

6 Department of the Interior personnel. 

7 (B) FINANCIAL AND TECHNICAL ASSIST8 ANCE.—The Secretary may provide financial 

9 and technical assistance to educational institu10 tions in carrying out this paragraph. 

11 (e) LIMITATION.—The Secretary shall not carry out 

12 through the Service any function, power, or duty that is— 

13 (1) required by section 4542 to be carried out 

14 through the Bureau of Ocean Energy; or 

15 (2) required by section 4544 to be carried out 

16 through the Office of Natural Resources Revenue. 

17 SEC. 4544. OFFICE OF NATURAL RESOURCES REVENUE. 

18 (a) ESTABLISHMENT.—There is established in the 

19 Department of the Interior an Office of Natural Resources 

20 Revenue (referred to in this section as the ‘‘Office’’) to 

21 be headed by a Director of Natural Resources Revenue 

22 (referred to in this section as the ‘‘Director’’). 

23 (b) APPOINTMENT AND COMPENSATION.— 

24 (1) IN GENERAL.—The Director shall be ap25 pointed by the Secretary of the Interior. 


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1 (2) COMPENSATION.—The Director shall be 

2 compensated at the rate provided for level V of the 

3 Executive Schedule under section 5316 of title 5, 

4 United States Code. 

5 (c) DUTIES.— 

6 (1) IN GENERAL.—The Secretary of the Inte7 rior shall carry out, through the Office, all functions, 

8 powers, and duties vested in the Secretary and relat9 ing to the administration of offshore royalty and rev10 enue management functions. 

11 (2) SPECIFIC AUTHORITIES.—The Secretary 

12 shall carry out, through the Office, all functions, 

13 powers, and duties previously assigned to the Min14 erals Management Service (including the authority 

15 to develop, promulgate, and enforce regulations) re16 garding offshore royalty and revenue collection; roy17 alty and revenue distribution; auditing and compli18 ance; investigation and enforcement of royalty and 

19 revenue regulations; and asset management for on20 shore and offshore activities. 

21 (d) LIMITATION.—The Secretary shall not carry out 

22 through the Office any function, power, or duty that is— 

23 (1) required by section 4542 to be carried out 

24 through the Bureau of Ocean Energy; or 


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1 (2) required by section 4543 to be carried out 

2 through the Ocean Energy Safety Service. 

3 SEC. 4545. ETHICS AND DRUG TESTING. 

4 (a) CERTIFICATION.—The Secretary of the Interior 

5 shall certify annually that all Department of the Interior 

6 officers and employees having regular, direct contact with 

7 lessees, contractors, concessionaires, and other businesses 

8 interested before the Government as a function of their 

9 official duties, or conducting investigations, issuing per10 mits, or responsible for oversight of energy programs, are 

11 in full compliance with all Federal employee ethics laws 

12 and regulations under the Ethics in Government Act of 

13 1978 (5 U.S.C. App.) and part 2635 of title 5, Code of 

14 Federal Regulations, and all guidance issued under sub15 section (c). 

16 (b) DRUG TESTING.—The Secretary shall conduct a 

17 random drug testing program of all Department of the 

18 Interior personnel referred to in subsection (a). 

19 (c) GUIDANCE.—Not later than 90 days after the 

20 date of enactment of this Act, the Secretary shall issue 

21 supplementary ethics and drug testing guidance for the 

22 employees for which certification is required under sub23 section (a). The Secretary shall update the supplementary 

24 ethics guidance not less than once every 3 years there25 after. 


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1 SEC. 4546. ABOLISHMENT OF MINERALS MANAGEMENT 

2 SERVICE. 

3 (a) ABOLISHMENT.—The Minerals Management 

4 Service is abolished. 

5 (b) COMPLETED ADMINISTRATIVE ACTIONS.— 

6 (1) IN GENERAL.—Completed administrative 

7 actions of the Minerals Management Service shall 

8 not be affected by the enactment of this Act, but 

9 shall continue in effect according to their terms until 

10 amended, modified, superseded, terminated, set 

11 aside, or revoked in accordance with law by an offi12 cer of the United States or a court of competent ju13 risdiction, or by operation of law. 

14 (2) COMPLETED ADMINISTRATIVE ACTION DE15 FINED.—For purposes of paragraph (1), the term 

16 ‘‘completed administrative action’’ includes orders, 

17 determinations, memoranda of understanding, 

18 memoranda of agreements, rules, regulations, per19 sonnel actions, permits, agreements, grants, con20 tracts, certificates, licenses, registrations, and privi21 leges. 

22 (c) PENDING PROCEEDINGS.—Subject to the author23 ity of the Secretary of the Interior and the officers of the 

24 Department of the Interior under this subtitle— 

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1 making, and applications for licenses, permits, cer2 tificates, grants, and financial assistance, shall con3 tinue, notwithstanding the enactment of this subtitle 

4 or the vesting of functions of the Service in another 

5 agency, unless discontinued or modified under the 

6 same terms and conditions and to the same extent 

7 that such discontinuance or modification could have 

8 occurred if this subtitle had not been enacted; and 

9 (2) orders issued in such proceedings, and ap10 peals therefrom, and payments made pursuant to 

11 such orders, shall issue in the same manner and on 

12 the same terms as if this subtitle had not been en13 acted, and any such orders shall continue in effect 

14 until amended, modified, superseded, terminated, set 

15 aside, or revoked by an officer of the United States 

16 or a court of competent jurisdiction, or by operation 

17 of law. 

18 (d) PENDING CIVIL ACTIONS.—Subject to the au19 thority of the Secretary of the Interior or any officer of 

20 the Department of the Interior under this subtitle, pend21 ing civil actions shall continue notwithstanding the enact22 ment of this subtitle, and in such civil actions, proceedings 

23 shall be had, appeals taken, and judgments rendered and 

24 enforced in the same manner and with the same effect 

25 as if such enactment had not occurred. 


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1 (e) REFERENCES.—References relating to the Min2 erals Management Service in statutes, Executive orders, 

3 rules, regulations, directives, or delegations of authority 

4 that precede the effective date of this Act are deemed to 

5 refer, as appropriate, to the Department, to its officers, 

6 employees, or agents, or to its corresponding organiza7 tional units or functions. Statutory reporting requirements 

8 that applied in relation to the Minerals Management Serv9 ice immediately before the effective date of this subtitle 

10 shall continue to apply. 

11 SEC. 4547. CONFORMING AMENDMENTS TO EXECUTIVE 

12 SCHEDULE PAY RATES. 

13 (a) UNDER SECRETARY FOR ENERGY, LANDS, AND

14 MINERALS.—Section 5314 of title 5, United States Code, 

15 is amended by inserting after the item relating to ‘‘Under 

16 Secretaries of the Treasury (3).’’ the following: 

17 ‘‘Under Secretary for Energy, Lands, and Min18 erals, Department of the Interior.’’. 

19 (b) ASSISTANT SECRETARIES.—Section 5315 of title 

20 5, United States Code, is amended by striking ‘‘Assistant 

21 Secretaries of the Interior (6).’’ and inserting the fol22 lowing: 

23 ‘‘Assistant Secretaries, Department of the Inte24 rior (7).’’. 


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1 (c) DIRECTORS.—Section 5316 of title 5, United 

2 States Code, is amended by striking ‘‘Director, Bureau of 

3 Mines, Department of the Interior.’’ and inserting the fol4 lowing new items: 

5 ‘‘Director, Bureau of Ocean Energy, Depart6 ment of the Interior. 

7 ‘‘Director, Ocean Energy Safety Service, De8 partment of the Interior. 

9 ‘‘Director, Office of Natural Resources Rev10 enue, Department of the Interior.’’. 

11 SEC. 4548. OUTER CONTINENTAL SHELF ENERGY SAFETY 

12 ADVISORY BOARD. 

13 (a) ESTABLISHMENT.—The Secretary of the Interior 

14 shall establish, under the Federal Advisory Committee 

15 Act, an Outer Continental Shelf Energy Safety Advisory 

16 Board (referred to in this section as the ‘‘Board’’)— 

17 (1) to provide the Secretary and the Directors 

18 established by this Act with independent scientific 

19 and technical advice on safe, responsible, and timely 

20 mineral and renewable energy exploration, develop21 ment, and production activities; and 

22 (2) to review operations of the National Off23 shore Energy Health and Safety Academy estab24 lished under section 4543(d), including submitting 

25 to the Secretary recommendations of curriculum to 


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1 ensure training scientific and technical advance2 ments. 

3 (b) MEMBERSHIP.— 

4 (1) SIZE.—The Board shall consist of not more 

5 than 11 members, who— 

6 (A) shall be appointed by the Secretary 

7 based on their expertise in oil and gas drilling, 

8 well design, operations, well containment and 

9 oil spill response; and 

10 (B) must have significant scientific, engi11 neering, management, and other credentials and 

12 a history of working in the field related to safe 

13 energy exploration, development, and produc14 tion activities. 

15 (2) CONSULTATION AND NOMINATIONS.—The 

16 Secretary shall consult with the National Academy 

17 of Sciences and the National Academy of Engineer18 ing to identify potential candidates for the Board 

19 and shall take nominations from the public. 

20 (3) TERM.—The Secretary shall appoint Board 

21 members to staggered terms of not more than 4 

22 years, and shall not appoint a member for more 

23 than 2 consecutive terms. 


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1 (4) BALANCE.—In appointing members to the 

2 Board, the Secretary shall ensure a balanced rep3 resentation of industry and research interests. 

4 (c) CHAIR.—The Secretary shall appoint the Chair 

5 for the Board from among its members. 

6 (d) MEETINGS.—The Board shall meet not less than 

7 3 times per year and shall host, at least once per year, 

8 a public forum to review and assess the overall energy 

9 safety performance of Outer Continental Shelf mineral 

10 and renewable energy resource activities. 

11 (e) OFFSHORE DRILLING SAFETY ASSESSMENTS

12 AND RECOMMENDATIONS.—As part of its duties under 

13 this section, the Board shall, by not later than 180 days 

14 after the date of enactment of this section and every 5 

15 years thereafter, submit to the Secretary a report that— 

16 (1) assesses offshore oil and gas well control 

17 technologies, practices, voluntary standards, and 

18 regulations in the United States and elsewhere; and 

19 (2) as appropriate, recommends modifications 

20 to the regulations issued under this subtitle to en21 sure adequate protection of safety and the environ22 ment, including recommendations on how to reduce 

23 regulations and administrative actions that are du24 plicative or unnecessary. 


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1 (f) REPORTS.—Reports of the Board shall be sub2 mitted by the Board to the Committee on Natural Re3 sources of the House of Representatives and the Com4 mittee on Energy and Natural Resources of the Senate 

5 and made available to the public in electronically acces6 sible form. 

7 (g) TRAVEL EXPENSES.—Members of the Board, 

8 other than full-time employees of the Federal Government, 

9 while attending a meeting of the Board or while otherwise 

10 serving at the request of the Secretary or the Director 

11 while serving away from their homes or regular places of 

12 business, may be allowed travel expenses, including per 

13 diem in lieu of subsistence, as authorized by section 5703 

14 of title 5, United States Code, for individuals in the Gov15 ernment serving without pay. 

16 SEC. 4549. OUTER CONTINENTAL SHELF INSPECTION FEES. 

17 Section 22 of the Outer Continental Shelf Lands Act 

18 (43 U.S.C. 1348) is amended by adding at the end of the 

19 section the following: 

20 ‘‘(g) INSPECTION FEES.— 

21 ‘‘(1) ESTABLISHMENT.—The Secretary of the 

22 Interior shall collect from the operators of facilities 

23 subject to inspection under subsection (c) non-re24 fundable fees for such inspections— 


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1 ‘‘(A) at an aggregate level equal to the 

2 amount necessary to offset the annual expenses 

3 of inspections of outer Continental Shelf facili4 ties (including mobile offshore drilling units) by 

5 the Department of the Interior; and 

6 ‘‘(B) using a schedule that reflects the dif7 ferences in complexity among the classes of fa8 cilities to be inspected. 

9 ‘‘(2) OCEAN ENERGY SAFETY FUND.—There is 

10 established in the Treasury a fund, to be known as 

11 the ‘Ocean Energy Enforcement Fund’ (referred to 

12 in this subsection as the ‘Fund’), into which shall be 

13 deposited all amounts collected as fees under para14 graph (1) and which shall be available as provided 

15 under paragraph (3). 

16 ‘‘(3) AVAILABILITY OF FEES.— 

17 ‘‘(A) IN GENERAL.—Notwithstanding sec18 tion 3302 of title 31, United States Code, all 

19 amounts deposited in the Fund— 

20 ‘‘(i) shall be credited as offsetting col21 lections; 

22 ‘‘(ii) shall be available for expenditure 

23 for purposes of carrying out inspections of 

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1 ministration of the inspection program 

2 under this section; 

3 ‘‘(iii) shall be available only to the ex4 tent provided for in advance in an appro5 priations Act; and 

6 ‘‘(iv) shall remain available until ex7 pended. 

8 ‘‘(B) USE FOR FIELD OFFICES.—Not less 

9 than 75 percent of amounts in the Fund may 

10 be appropriated for use only for the respective 

11 Department of the Interior field offices where 

12 the amounts were originally assessed as fees. 

13 ‘‘(4) INITIAL FEES.—Fees shall be established 

14 under this subsection for the fiscal year in which 

15 this subsection takes effect and the subsequent 10 

16 years, and shall not be raised without advise and 

17 consent of the Congress, except as determined by the 

18 Secretary to be appropriate as an adjustment equal 

19 to the percentage by which the Consumer Price 

20 Index for the month of June of the calendar year 

21 preceding the adjustment exceeds the Consumer 

22 Price Index for the month of June of the calendar 

23 year in which the claim was determined or last ad24 justed. 


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1 ‘‘(5) ANNUAL FEES.—Annual fees shall be col2 lected under this subsection for facilities that are 

3 above the waterline, excluding drilling rigs, and are 

4 in place at the start of the fiscal year. Fees for fiscal 

5 year 2014 shall be— 

6 ‘‘(A) $10,500 for facilities with no wells, 

7 but with processing equipment or gathering 

8 lines; 

9 ‘‘(B) $17,000 for facilities with 1 to 10 

10 wells, with any combination of active or inactive 

11 wells; and 

12 ‘‘(C) $31,500 for facilities with more than 

13 10 wells, with any combination of active or in14 active wells. 

15 ‘‘(6) FEES FOR DRILLING RIGS.—Fees for drill16 ing rigs shall be assessed under this subsection for 

17 all inspections completed in fiscal years 2014 

18 through 2023. Fees for fiscal year 2014 shall be— 

19 ‘‘(A) $30,500 per inspection for rigs oper20 ating in water depths of 1,000 feet or more; 

21 and 

22 ‘‘(B) $16,700 per inspection for rigs oper23 ating in water depths of less than 1,000 feet. 

24 ‘‘(7) BILLING.—The Secretary shall bill des25 ignated operators under paragraph (5) within 60 


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1 days after the date of the inspection, with payment 

2 required within 30 days of billing. The Secretary 

3 shall bill designated operators under paragraph (6) 

4 within 30 days of the end of the month in which the 

5 inspection occurred, with payment required within 

6 30 days after billing. 

7 ‘‘(8) SUNSET.—No fee may be collected under 

8 this subsection for any fiscal year after fiscal year 

9 2023. 

10 ‘‘(9) ANNUAL REPORTS.— 

11 ‘‘(A) IN GENERAL.—Not later than 60 

12 days after the end of each fiscal year beginning 

13 with fiscal year 2015, the Secretary shall sub14 mit to the Committee on Energy and Natural 

15 Resources of the Senate and the Committee on 

16 Natural Resources of the House of Representa17 tives a report on the operation of the Fund dur18 ing the fiscal year. 

19 ‘‘(B) CONTENTS.—Each report shall in20 clude, for the fiscal year covered by the report, 

21 the following: 

22 ‘‘(i) A statement of the amounts de23 posited into the Fund. 

24 ‘‘(ii) A description of the expenditures 

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1 cluding the purpose of the expenditures 

2 and the additional hiring of personnel. 

3 ‘‘(iii) A statement of the balance re4 maining in the Fund at the end of the fis5 cal year. 

6 ‘‘(iv) An accounting of pace of permit 

7 approvals. 

8 ‘‘(v) If fee increases are proposed 

9 after the initial 10-year period referred to 

10 in paragraph (5), a proper accounting of 

11 the potential adverse economic impacts 

12 such fee increases will have on offshore 

13 economic activity and overall production, 

14 conducted by the Secretary. 

15 ‘‘(vi) Recommendations to increase 

16 the efficacy and efficiency of offshore in17 spections. 

18 ‘‘(vii) Any corrective actions levied 

19 upon offshore inspectors as a result of any 

20 form of misconduct.’’. 

21 SEC. 4550. PROHIBITION ON ACTION BASED ON NATIONAL 

22 OCEAN POLICY DEVELOPED UNDER EXECU23 TIVE ORDER NO. 13547. 

24 (a) PROHIBITION.—The Bureau of Ocean Energy 

25 and the Ocean Energy Safety Service may not develop, 


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1 propose, finalize, administer, or implement, any limitation 

2 on activities under their jurisdiction as a result of the 

3 coastal and marine spatial planning component of the Na4 tional Ocean Policy developed under Executive Order No. 

5 13547. 

6 (b) REPORT ON EXPENDITURES.—Not later than 60 

7 days after the date of enactment of this Act, the President 

8 shall submit a report to the Committee on Natural Re9 sources of the House of Representatives and the Com10 mittee on Energy and Natural Resources of the Senate 

11 identifying all Federal expenditures in fiscal years 2011, 

12 2012, 2013, and 2014, by the Bureau of Ocean Energy 

13 and the Ocean Energy Safety Service and their prede14 cessor agencies, by agency, account, and any pertinent 

15 subaccounts, for the development, administration, or im16 plementation of the coastal and marine spatial planning 

17 component of the National Ocean Policy developed under 

18 Executive Order No. 13547, including staff time, travel, 

19 and other related expenses. 


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1 CHAPTER 5—UNITED STATES 

2 TERRITORIES 

3 SEC. 4551. APPLICATION OF OUTER CONTINENTAL SHELF 

4 LANDS ACT WITH RESPECT TO TERRITORIES 

5 OF THE UNITED STATES. 

6 Section 2 of the Outer Continental Shelf Lands Act 

7 (43 U.S.C. 1331) is amended— 

8 (1) in paragraph (a), by inserting after ‘‘con9 trol’’ the following: ‘‘or lying within the United 

10 States exclusive economic zone and the Continental 

11 Shelf adjacent to any territory of the United 

12 States’’; 

13 (2) in paragraph (p), by striking ‘‘and’’ after 

14 the semicolon at the end; 

15 (3) in paragraph (q), by striking the period at 

16 the end and inserting ‘‘; and’’; and 

17 (4) by adding at the end the following: 

18 ‘‘(r) The term ‘State’ includes each territory of the 

19 United States.’’. 


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1 CHAPTER 6—MISCELLANEOUS 

2 PROVISIONS 

3 SEC. 4561. RULES REGARDING DISTRIBUTION OF REVE4 NUES UNDER GULF OF MEXICO ENERGY SE5 CURITY ACT OF 2006. 

6 (a) IN GENERAL.—Not later than 60 days after the 

7 date of enactment of this Act, the Secretary of the Interior 

8 shall issue rules to provide more clarity, certainty, and sta9 bility to the revenue streams contemplated by the Gulf of 

10 Mexico Energy Security Act of 2006 (43 U.S.C. 1331 

11 note). 

12 (b) CONTENTS.—The rules shall include clarification 

13 of the timing and methods of disbursements of funds 

14 under section 105(b)(2) of such Act. 

15 SEC. 4562. AMOUNT OF DISTRIBUTED QUALIFIED OUTER 

16 CONTINENTAL SHELF REVENUES. 

17 Section 105(f)(1) of the Gulf of Mexico Energy Secu18 rity Act of 2006 (title I of division C of Public Law 109– 

19 432; 43 U.S.C. 1331 note) shall be applied by substituting 

20 ‘‘2024, and shall not exceed $999,999,999 for each of fis21 cal years 2025 through 2056’’ for ‘‘2055’’. 

22 CHAPTER 7—JUDICIAL REVIEW 

23 SEC. 4571. TIME FOR FILING COMPLAINT. 

24 (a) IN GENERAL.—Any cause of action that arises 

25 from a covered energy decision must be filed not later than 


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1 the end of the 60-day period beginning on the date of the 

2 covered energy decision. Any cause of action not filed with3 in this time period shall be barred. 

4 (b) EXCEPTION.—Subsection (a) shall not apply to 

5 a cause of action brought by a party to a covered energy 

6 lease. 

7 SEC. 4572. DISTRICT COURT DEADLINE. 

8 (a) IN GENERAL.—All proceedings that are subject 

9 to section 4571— 

10 (1) shall be brought in the United States dis11 trict court for the district in which the Federal prop12 erty for which a covered energy lease is issued is lo13 cated or the United States District Court of the Dis14 trict of Columbia; 

15 (2) shall be resolved as expeditiously as pos16 sible, and in any event not more than 180 days after 

17 such cause or claim is filed; and 

18 (3) shall take precedence over all other pending 

19 matters before the district court. 

20 (b) FAILURE TO COMPLY WITH DEADLINE.—If an 

21 interlocutory or final judgment, decree, or order has not 

22 been issued by the district court by the deadline described 

23 under this section, the cause or claim shall be dismissed 

24 with prejudice and all rights relating to such cause or 

25 claim shall be terminated. 


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1 SEC. 4573. ABILITY TO SEEK APPELLATE REVIEW. 

2 An interlocutory or final judgment, decree, or order 

3 of the district court in a proceeding that is subject to sec4 tion 4571 may be reviewed by the U.S. Court of Appeals 

5 for the District of Columbia Circuit. The D.C. Circuit 

6 shall resolve any such appeal as expeditiously as possible 

7 and, in any event, not more than 180 days after such in8 terlocutory or final judgment, decree, or order of the dis9 trict court was issued. 

10 SEC. 4574. LIMITATION ON SCOPE OF REVIEW AND RELIEF. 

11 (a) ADMINISTRATIVE FINDINGS AND CONCLU12 SIONS.—In any judicial review of any Federal action under 

13 this chapter, any administrative findings and conclusions 

14 relating to the challenged Federal action shall be pre15 sumed to be correct unless shown otherwise by clear and 

16 convincing evidence contained in the administrative 

17 record. 

18 (b) LIMITATION ON PROSPECTIVE RELIEF.—In any 

19 judicial review of any action, or failure to act, under this 

20 chapter, the Court shall not grant or approve any prospec21 tive relief unless the Court finds that such relief is nar22 rowly drawn, extends no further than necessary to correct 

23 the violation of a Federal law requirement, and is the least 

24 intrusive means necessary to correct the violation con25 cerned. 


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1 SEC. 4575. LEGAL FEES. 

2 Any person filing a petition seeking judicial review 

3 of any action, or failure to act, under this chapter who 

4 is not a prevailing party shall pay to the prevailing parties 

5 (including intervening parties), other than the United 

6 States, fees and other expenses incurred by that party in 

7 connection with the judicial review, unless the Court finds 

8 that the position of the person was substantially justified 

9 or that special circumstances make an award unjust. 

10 SEC. 4576. EXCLUSION. 

11 This chapter shall not apply with respect to disputes 

12 between the parties to a lease issued pursuant to an au13 thorizing leasing statute regarding the obligations of such 

14 lease or the alleged breach thereof. 

15 SEC. 4577. DEFINITIONS. 

16 In this chapter, the following definitions apply: 

17 (1) COVERED ENERGY DECISION.—The term 

18 ‘‘covered energy decision’’ means any action or deci19 sion by a Federal official regarding the issuance of 

20 a covered energy lease. 

21 (2) COVERED ENERGY LEASE.—The term ‘‘cov22 ered energy lease’’ means any lease under this sub23 title or under an oil and gas leasing program under 

24 this subtitle. 

Æ 


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