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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5360 Introduced in House (IH)]

113th CONGRESS
  2d Session
                                H. R. 5360

To enhance the competitiveness of American manufacturers and exports in 
  the global marketplace by providing tax relief, regulatory relief, 
   liability relief, and ensuring access to abundant and affordable 
              supplies of energy, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 31, 2014

 Mr. Mulvaney (for himself, Mr. Hensarling, Mr. Price of Georgia, Mr. 
 Lamborn, Mr. Chabot, Mr. LaMalfa, Mr. Hultgren, Mr. Roe of Tennessee, 
 Mr. McClintock, Mr. Schweikert, Mr. DeSantis, Mr. Brooks of Alabama, 
Mr. Jordan, Mr. Huizenga of Michigan, Mr. Duncan of Tennessee, and Mr. 
  Crawford) introduced the following bill; which was referred to the 
Committee on Energy and Commerce, and in addition to the Committees on 
 Ways and Means, the Budget, the Judiciary, Rules, Natural Resources, 
Transportation and Infrastructure, and Science, Space, and Technology, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of 
                        the committee concerned

_______________________________________________________________________

                                 A BILL

 
To enhance the competitiveness of American manufacturers and exports in 
  the global marketplace by providing tax relief, regulatory relief, 
   liability relief, and ensuring access to abundant and affordable 
              supplies of energy, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``American 
Renaissance in Manufacturing Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
             TITLE I--CREATING A MORE COMPETITIVE TAX CODE

Sec. 1001. Dropping corporate tax rate.
Sec. 1002. Reduced recognition period for built-in gains of S 
                            corporations made permanent.
Sec. 1003. Permanent rule regarding basis adjustment to stock of S 
                            corporations making charitable 
                            contributions of property.
Sec. 1004. Expensing certain depreciable business assets for small 
                            business.
Sec. 1005. Research credit simplified and made permanent.
Sec. 1006. Bonus depreciation modified and made permanent.
Sec. 1007. Budgetary effects.
          TITLE II--REINING IN JOB-KILLING WASHINGTON RED TAPE

   Subtitle A--Regulations From the Executive in Need of Scrutiny Act

Sec. 2001. Purpose.
Sec. 2002. Congressional review of agency rulemaking.
Sec. 2003. Budgetary effects of rules subject to section 802 of title 
                            5, United States Code.
Sec. 2004. Government Accountability Office study of rules.
                Subtitle B--Energy Consumers Relief Act

Sec. 2201. Prohibition against finalizing certain energy-related rules 
                            that will cause significant adverse effects 
                            to the economy.
Sec. 2202. Reports and determinations prior to promulgating as final 
                            certain energy-related rules.
Sec. 2203. Definitions.
Sec. 2204. Prohibition on use of social cost of carbon in analysis.
         Subtitle C--Electricity Security and Affordability Act

Sec. 2301. Standards of performance for new fossil fuel-fired electric 
                            utility generating units.
Sec. 2302. Congress to set effective date for standards of performance 
                            for existing, modified, and reconstructed 
                            fossil fuel-fired electric utility 
                            generating units.
Sec. 2303. Repeal of earlier rules and guidelines.
Sec. 2304. Definitions.
            Subtitle D--Coal Residuals Reuse and Management

Sec. 2401. Management and disposal of coal combustion residuals.
Sec. 2402. 2000 regulatory determination.
Sec. 2403. Technical assistance.
Sec. 2404. Federal Power Act.
               TITLE III--REDUCING FRIVOLOUS LEGAL COSTS

                Subtitle A--Lawsuit Abuse Reduction Act

Sec. 3101. Attorney accountability.
    Subtitle B--Furthering Asbestos Claim Transparency in Bankruptcy

Sec. 3201. Amendments.
Sec. 3202. Effective date; application of amendments.
                       Subtitle C--Innovation Act

Sec. 3301. Definitions.
Sec. 3302. Patent infringement actions.
Sec. 3303. Transparency of patent ownership.
Sec. 3304. Customer-suit exception.
Sec. 3305. Procedures and practices to implement recommendations of the 
                            Judicial Conference.
Sec. 3306. Small business education, outreach, and information access.
Sec. 3307. Studies on patent transactions, quality, and examination.
Sec. 3308. Improvements and technical corrections to the Leahy-Smith 
                            America Invents Act.
Sec. 3309. Effective date.
   Subtitle D--Resolving Environmental and Grid Reliability Conflicts

Sec. 3401. Amendments to the Federal Power Act.
   TITLE IV--PRESERVING ACCESS TO ABUNDANT AND AFFORDABLE SOURCES OF 
                                 ENERGY

                  Subtitle A--Northern Route Approval

Sec. 4101. Findings.
Sec. 4102. Keystone XL permit approval.
Sec. 4103. Judicial review.
Sec. 4104. American burying beetle.
Sec. 4105. Right-of-way and temporary use permit.
Sec. 4106. Permits for activities in navigable waters.
Sec. 4107. Migratory Bird Treaty Act permit.
Sec. 4108. Oil spill response plan disclosure.
           Subtitle B--Natural Gas Pipeline Permitting Reform

Sec. 4201. Regulatory approval of natural gas pipeline projects.
            Subtitle C--North American Energy Infrastructure

Sec. 4301. Finding.
Sec. 4302. Authorization of certain energy infrastructure projects at 
                            the national boundary of the United States.
Sec. 4303. Importation or exportation of natural gas to Canada and 
                            Mexico.
Sec. 4304. Transmission of electric energy to Canada and Mexico.
Sec. 4305. No Presidential permit required.
Sec. 4306. Modifications to existing projects.
Sec. 4307. Effective date; rulemaking deadlines.
Sec. 4308. Definitions.
   Subtitle D--Protecting States' Rights To Promote American Energy 
                              Security Act

     Chapter 1--State Authority for Hydraulic Fracturing Regulation

Sec. 4411. State authority for hydraulic fracturing regulation.
Sec. 4412. Government Accountability Office study.
Sec. 4413. Tribal authority on trust land.
              Chapter 2--EPA Hydraulic Fracturing Research

Sec. 4421. EPA hydraulic fracturing research.
                  Chapter 3--Miscellaneous Provisions

Sec. 4431. Review of State activities.
                  Subtitle E--Offshore Energy and Jobs

       Chapter 1--Outer Continental Shelf Leasing Program Reforms

Sec. 4511. Outer Continental Shelf leasing program reforms.
Sec. 4512. Domestic oil and natural gas production goal.
Sec. 4513. Development and submittal of new 5-year oil and gas leasing 
                            program.
Sec. 4514. Rule of construction.
    Chapter 2--Directing the President To Conduct New OCS Sales in 
                Virginia, South Carolina, and California

Sec. 4521. Requirement to conduct proposed oil and gas Lease Sale 220 
                            on the Outer Continental Shelf offshore 
                            Virginia.
Sec. 4522. South Carolina lease sale.
Sec. 4523. Southern California existing infrastructure lease sale.
Sec. 4524. Environmental impact statement requirement.
Sec. 4525. National defense.
Sec. 4526. Eastern Gulf of Mexico not included.
    Chapter 3--Equitable Sharing of Outer Continental Shelf Revenues

Sec. 4531. Disposition of Outer Continental Shelf revenues to coastal 
                            States.
   Chapter 4--Reorganization of Minerals Management Agencies of the 
                       Department of the Interior

Sec. 4541. Establishment of Under Secretary for Energy, Lands, and 
                            Minerals and Assistant Secretary of Ocean 
                            Energy and Safety.
Sec. 4542. Bureau of Ocean Energy.
Sec. 4543. Ocean Energy Safety Service.
Sec. 4544. Office of Natural Resources revenue.
Sec. 4545. Ethics and drug testing.
Sec. 4546. Abolishment of Minerals Management Service.
Sec. 4547. Conforming amendments to Executive Schedule pay rates.
Sec. 4548. Outer Continental Shelf Energy Safety Advisory Board.
Sec. 4549. Outer Continental Shelf inspection fees.
Sec. 4550. Prohibition on action based on National Ocean Policy 
                            developed under Executive Order No. 13547.
                  Chapter 5--United States Territories

Sec. 4551. Application of Outer Continental Shelf Lands Act with 
                            respect to territories of the United 
                            States.
                  Chapter 6--Miscellaneous Provisions

Sec. 4561. Rules regarding distribution of revenues under Gulf of 
                            Mexico Energy Security Act of 2006.
Sec. 4562. Amount of distributed qualified outer Continental Shelf 
                            revenues.
                       Chapter 7--Judicial Review

Sec. 4571. Time for filing complaint.
Sec. 4572. District court deadline.
Sec. 4573. Ability to seek appellate review.
Sec. 4574. Limitation on scope of review and relief.
Sec. 4575. Legal fees.
Sec. 4576. Exclusion.
Sec. 4577. Definitions.

             TITLE I--CREATING A MORE COMPETITIVE TAX CODE

SEC. 1001. DROPPING CORPORATE TAX RATE.

    (a) In General.--Subsection (b) of section 11 of the Internal 
Revenue Code of 1986 is amended to read as follows:
    ``(b) Amount of Tax.--The amount of the tax imposed by subsection 
(a) shall be 25 percent of taxable income.''.
    (b) Conforming Amendments.--
            (1) Paragraphs (2)(B) and (6)(A)(ii) of section 860E(e) of 
        the Internal Revenue Code of 1986 are each amended by striking 
        ``highest rate of tax specified in section 11(b)(1)'' and 
        inserting ``rate of tax specified in section 11(b)''.
            (2)(A) Part I of subchapter P of chapter 1 of such Code is 
        amended by striking section 1201 (and by striking the item 
        relating to such section in the table of sections for such 
        part).
            (B) Section 12 of such Code is amended by striking 
        paragraphs (4) and (6), and by redesignating paragraph (5) as 
        paragraph (4).
            (C) Section 527(b) of such Code is amended--
                    (i) by striking paragraph (2),
                    (ii) by striking all that precedes ``is hereby 
                imposed'' and inserting:
    ``(b) Tax Imposed.--A tax''; and
                    (iii) by striking ``highest''.
            (D) Sections 594(a) of such Code is amended by striking 
        ``taxes imposed by section 11 or 1201(a)'' and inserting ``tax 
        imposed by section 11''.
            (E) Section 691(c)(4) of such Code is amended by striking 
        ``1201,''.
            (F) Section 801(a) of such Code is amended--
                    (i) by striking paragraph (2), and
                    (ii) by striking all that precedes ``is hereby 
                imposed'' and inserting:
    ``(a) Tax Imposed.--A tax''.
            (G) Section 831(d) of such Code is amended by striking 
        paragraph (1) and by redesignating paragraphs (2) and (3) as 
        paragraphs (1) and (2), respectively.
            (H) Sections 832(c)(5) and 834(b)(1)(D) of such Code are 
        each amended by striking ``sec. 1201 and following,''.
            (I) Section 852(b)(3)(A) of such Code is amended by 
        striking ``section 1201(a)'' and inserting ``section 11(b)''.
            (J) Section 857(b)(3) of such Code is amended--
                    (i) by striking subparagraph (A) and redesignating 
                subparagraphs (B) through (F) as subparagraphs (A) 
                through (E), respectively,
                    (ii) in subparagraph (C), as so redesignated--
                            (I) by striking ``subparagraph (A)(ii)'' in 
                        clause (i) thereof and inserting ``paragraph 
                        (1)'', and
                            (II) by striking ``the tax imposed by 
                        subparagraph (A)(ii)'' in clauses (ii) and (iv) 
                        thereof and inserting ``the tax imposed by 
                        paragraph (1) on undistributed capital gain'',
                    (iii) in subparagraph (E), as so redesignated, by 
                striking ``subparagraph (B) or (D)'' and inserting 
                ``subparagraph (A) or (C)'', and
                    (iv) by adding at the end the following new 
                subparagraph:
                    ``(F) Undistributed capital gain.--For purposes of 
                this paragraph, the term `undistributed capital gain' 
                means the excess of the net capital gain over the 
                deduction for dividends paid (as defined in section 
                561) determined with reference to capital gain 
                dividends only.''.
            (K) Section 882(a)(1) of such Code is amended by striking 
        ``, or 1201(a)''.
            (L) Section 1374(b) of such Code is amended by striking 
        paragraph (4).
            (M) Section 1381(b) of such Code is amended by striking 
        ``taxes imposed by section 11 or 1201'' and inserting ``tax 
        imposed by section 11''.
            (N) Sections 6425(c)(1)(A)(i) and 6655(g)(1)(A)(i) of such 
        Code are each amended by striking ``or 1201(a),''.
            (3)(A) Section 1445(e)(1) of such Code is amended by 
        striking ``35 percent'' and inserting ``25 percent''.
            (B) Section 1445(e)(2) of such Code is amended by striking 
        ``35 percent'' and inserting ``25 percent''.
            (C) Section 1445(e)(6) of such Code is amended by striking 
        ``35 percent'' and inserting ``25 percent''.
            (D) Section 1446(b)(2)(B) of such Code is amended by 
        striking ``section 11(b)(1)'' and inserting ``section 11(b)''.
            (4) Section 852(b)(1) of such Code is amended by striking 
        the last sentence.
            (5)(A) Part I of subchapter B of chapter 5 of such Code is 
        amended by striking section 1551 (and by striking the item 
        relating to such section in the table of sections for such 
        part).
            (B) Section 535(c)(5) of such Code is amended to read as 
        follows:
            ``(5) Cross reference.--For limitation on credit provided 
        in paragraph (2) or (3) in the case of certain controlled 
        corporations, see section 1561.''.
            (6) Section 7874(e)(1)(B) of such Code is amended by 
        striking ``section 11(b)(1)'' and inserting ``section 11(b)''.
    (c) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        taxable years beginning after December 31, 2014.
            (2) Withholding.--The amendments made by subsection (b)(3) 
        shall apply to distributions made after December 31, 2014.
            (3) Certain transfers.--The amendments made by subsection 
        (b)(5) shall apply to transfers made after December 31, 2014.

SEC. 1002. REDUCED RECOGNITION PERIOD FOR BUILT-IN GAINS OF S 
              CORPORATIONS MADE PERMANENT.

    (a) In General.--Paragraph (7) of section 1374(d) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(7) Recognition period.--
                    ``(A) In general.--The term `recognition period' 
                means the 5-year period beginning with the 1st day of 
                the 1st taxable year for which the corporation was an S 
                corporation. For purposes of applying this section to 
                any amount includible in income by reason of 
                distributions to shareholders pursuant to section 
                593(e), the preceding sentence shall be applied without 
                regard to the phrase `5-year'.
                    ``(B) Installment sales.--If an S corporation sells 
                an asset and reports the income from the sale using the 
                installment method under section 453, the treatment of 
                all payments received shall be governed by the 
                provisions of this paragraph applicable to the taxable 
                year in which such sale was made.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2013.

SEC. 1003. PERMANENT RULE REGARDING BASIS ADJUSTMENT TO STOCK OF S 
              CORPORATIONS MAKING CHARITABLE CONTRIBUTIONS OF PROPERTY.

    (a) In General.--Section 1367(a)(2) of the Internal Revenue Code of 
1986 is amended by striking the last sentence.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made in taxable years beginning after December 31, 
2013.

SEC. 1004. EXPENSING CERTAIN DEPRECIABLE BUSINESS ASSETS FOR SMALL 
              BUSINESS.

    (a) In General.--
            (1) Dollar limitation.--Paragraph (1) of section 179(b) of 
        the Internal Revenue Code of 1986 is amended by striking 
        ``shall not exceed--'' and all that follows and inserting 
        ``shall not exceed $500,000.''.
            (2) Reduction in limitation.--Paragraph (2) of section 
        179(b) of such Code is amended by striking ``exceeds--'' and 
        all that follows and inserting ``exceeds $2,000,000.''.
    (b) Computer Software.--Clause (ii) of section 179(d)(1)(A) of such 
Code is amended by striking ``, to which section 167 applies, and which 
is placed in service in a taxable year beginning after 2002 and before 
2014'' and inserting ``and to which section 167 applies''.
    (c) Election.--Paragraph (2) of section 179(c) of such Code is 
amended--
            (1) by striking ``may not be revoked'' and all that follows 
        through ``and before 2014'', and
            (2) by striking ``irrevocable'' in the heading thereof.
    (d) Air Conditioning and Heating Units.--Paragraph (1) of section 
179(d) of such Code is amended by striking ``and shall not include air 
conditioning or heating units''.
    (e) Qualified Real Property.--Subsection (f) of section 179 of such 
Code is amended--
            (1) by striking ``beginning in 2010, 2011, 2012, or 2013'' 
        in paragraph (1), and
            (2) by striking paragraphs (3) and (4).
    (f) Inflation Adjustment.--Subsection (b) of section 179 of such 
Code is amended by adding at the end the following new paragraph:
            ``(6) Inflation adjustment.--
                    ``(A) In general.--In the case of any taxable year 
                beginning after 2014, the dollar amounts in paragraphs 
                (1) and (2) shall each be increased by an amount equal 
                to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(c)(2)(A) for such 
                        calendar year, determined by substituting 
                        `calendar year 2013' for `calendar year 2012' 
                        in clause (ii) thereof.
                    ``(B) Rounding.--The amount of any increase under 
                subparagraph (A) shall be rounded to the nearest 
                multiple of $10,000.''.
    (g) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2013.

SEC. 1005. RESEARCH CREDIT SIMPLIFIED AND MADE PERMANENT.

    (a) In General.--Subsection (a) of section 41 of the Internal 
Revenue Code of 1986 is amended to read as follows:
    ``(a) In General.--For purposes of section 38, the research credit 
determined under this section for the taxable year shall be an amount 
equal to the sum of--
            ``(1) 20 percent of so much of the qualified research 
        expenses for the taxable year as exceeds 50 percent of the 
        average qualified research expenses for the 3 taxable years 
        preceding the taxable year for which the credit is being 
        determined,
            ``(2) 20 percent of so much of the basic research payments 
        for the taxable year as exceeds 50 percent of the average basic 
        research payments for the 3 taxable years preceding the taxable 
        year for which the credit is being determined, plus
            ``(3) 20 percent of the amounts paid or incurred by the 
        taxpayer in carrying on any trade or business of the taxpayer 
        during the taxable year (including as contributions) to an 
        energy research consortium for energy research.''.
    (b) Repeal of Termination.--Section 41 of such Code is amended by 
striking subsection (h).
    (c) Conforming Amendments.--
            (1) Subsection (c) of section 41 of such Code is amended to 
        read as follows:
    ``(c) Determination of Average Research Expenses for Prior Years.--
            ``(1) Special rule in case of no qualified research 
        expenditures in any of 3 preceding taxable years.--In any case 
        in which the taxpayer has no qualified research expenses in any 
        one of the 3 taxable years preceding the taxable year for which 
        the credit is being determined, the amount determined under 
        subsection (a)(1) for such taxable year shall be equal to 10 
        percent of the qualified research expenses for the taxable 
        year.
            ``(2) Consistent treatment of expenses.--
                    ``(A) In general.--Notwithstanding whether the 
                period for filing a claim for credit or refund has 
                expired for any taxable year taken into account in 
                determining the average qualified research expenses, or 
                average basic research payments, taken into account 
                under subsection (a), the qualified research expenses 
                and basic research payments taken into account in 
                determining such averages shall be determined on a 
                basis consistent with the determination of qualified 
                research expenses and basic research payments, 
                respectively, for the credit year.
                    ``(B) Prevention of distortions.--The Secretary may 
                prescribe regulations to prevent distortions in 
                calculating a taxpayer's qualified research expenses or 
                basic research payments caused by a change in 
                accounting methods used by such taxpayer between the 
                current year and a year taken into account in 
                determining the average qualified research expenses or 
                average basic research payments taken into account 
                under subsection (a).''.
            (2) Section 41(e) of such Code is amended--
                    (A) by striking all that precedes paragraph (6) and 
                inserting the following:
    ``(e) Basic Research Payments.--For purposes of this section--
            ``(1) In general.--The term `basic research payment' means, 
        with respect to any taxable year, any amount paid in cash 
        during such taxable year by a corporation to any qualified 
        organization for basic research but only if--
                    ``(A) such payment is pursuant to a written 
                agreement between such corporation and such qualified 
                organization, and
                    ``(B) such basic research is to be performed by 
                such qualified organization.
            ``(2) Exception to requirement that research be performed 
        by the organization.--In the case of a qualified organization 
        described in subparagraph (C) or (D) of paragraph (3), 
        subparagraph (B) of paragraph (1) shall not apply.'',
                    (B) by redesignating paragraphs (6) and (7) as 
                paragraphs (3) and (4), respectively, and
                    (C) in paragraph (4) as so redesignated, by 
                striking subparagraphs (B) and (C) and by redesignating 
                subparagraphs (D) and (E) as subparagraphs (B) and (C), 
                respectively.
            (3) Section 41(f)(3) of such Code is amended--
                    (A)(i) by striking ``, and the gross receipts'' in 
                subparagraph (A)(i) and all that follows through 
                ``determined under clause (iii)'',
                    (ii) by striking clause (iii) of subparagraph (A) 
                and redesignating clauses (iv), (v), and (vi), thereof, 
                as clauses (iii), (iv), and (v), respectively,
                    (iii) by striking ``and (iv)'' each place it 
                appears in subparagraph (A)(iv) (as so redesignated) 
                and inserting ``and (iii)'',
                    (iv) by striking subclause (IV) of subparagraph 
                (A)(iv) (as so redesignated), by striking ``, and'' at 
                the end of subparagraph (A)(iv)(III) (as so 
                redesignated) and inserting a period, and by adding 
                ``and'' at the end of subparagraph (A)(iv)(II) (as so 
                redesignated),
                    (v) by striking ``(A)(vi)'' in subparagraph (B) and 
                inserting ``(A)(v)'', and
                    (vi) by striking ``(A)(iv)(II)'' in subparagraph 
                (B)(i)(II) and inserting ``(A)(iii)(II)'',
                    (B) by striking ``, and the gross receipts of the 
                predecessor,'' in subparagraph (A)(iv)(II) (as so 
                redesignated),
                    (C) by striking ``, and the gross receipts of,'' in 
                subparagraph (B),
                    (D) by striking ``, or gross receipts of,'' in 
                subparagraph (B)(i)(I), and
                    (E) by striking subparagraph (C).
    (d) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to taxable years 
        beginning after December 31, 2013.
            (2) Subsection (b).--The amendment made by subsection (b) 
        shall apply to amounts paid or incurred after December 31, 
        2013.

SEC. 1006. BONUS DEPRECIATION MODIFIED AND MADE PERMANENT.

    (a) Made Permanent; Inclusion of Qualified Retail Improvement 
Property.--Section 168(k)(2) of the Internal Revenue Code of 1986 is 
amended to read as follows:
            ``(2) Qualified property.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `qualified property' 
                means property--
                            ``(i)(I) to which this section applies 
                        which has a recovery period of 20 years or 
                        less,
                            ``(II) which is computer software (as 
                        defined in section 167(f)(1)(B)) for which a 
                        deduction is allowable under section 167(a) 
                        without regard to this subsection,
                            ``(III) which is water utility property,
                            ``(IV) which is qualified leasehold 
                        improvement property, or
                            ``(V) which is qualified retail improvement 
                        property, and
                            ``(ii) the original use of which commences 
                        with the taxpayer.
                    ``(B) Exception for alternative depreciation 
                property.--The term `qualified property' shall not 
                include any property to which the alternative 
                depreciation system under subsection (g) applies, 
                determined--
                            ``(i) without regard to paragraph (7) of 
                        subsection (g) (relating to election to have 
                        system apply), and
                            ``(ii) after application of section 280F(b) 
                        (relating to listed property with limited 
                        business use).
                    ``(C) Special rules.--
                            ``(i) Sale-leasebacks.--For purposes of 
                        clause (ii) and subparagraph (A)(ii), if 
                        property is--
                                    ``(I) originally placed in service 
                                by a person, and
                                    ``(II) sold and leased back by such 
                                person within 3 months after the date 
                                such property was originally placed in 
                                service,
                        such property shall be treated as originally 
                        placed in service not earlier than the date on 
                        which such property is used under the leaseback 
                        referred to in subclause (II).
                            ``(ii) Syndication.--For purposes of 
                        subparagraph (A)(ii), if--
                                    ``(I) property is originally placed 
                                in service by the lessor of such 
                                property,
                                    ``(II) such property is sold by 
                                such lessor or any subsequent purchaser 
                                within 3 months after the date such 
                                property was originally placed in 
                                service (or, in the case of multiple 
                                units of property subject to the same 
                                lease, within 3 months after the date 
                                the final unit is placed in service, so 
                                long as the period between the time the 
                                first unit is placed in service and the 
                                time the last unit is placed in service 
                                does not exceed 12 months), and
                                    ``(III) the user of such property 
                                after the last sale during such 3-month 
                                period remains the same as when such 
                                property was originally placed in 
                                service,
                        such property shall be treated as originally 
                        placed in service not earlier than the date of 
                        such last sale.
                    ``(D) Coordination with section 280f.--For purposes 
                of section 280F--
                            ``(i) Automobiles.--In the case of a 
                        passenger automobile (as defined in section 
                        280F(d)(5)) which is qualified property, the 
                        Secretary shall increase the limitation under 
                        section 280F(a)(1)(A)(i) by $8,000.
                            ``(ii) Listed property.--The deduction 
                        allowable under paragraph (1) shall be taken 
                        into account in computing any recapture amount 
                        under section 280F(b)(2).
                            ``(iii) Inflation adjustment.--In the case 
                        of any taxable year beginning in a calendar 
                        year after 2014, the $8,000 amount in clause 
                        (i) shall be increased by an amount equal to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the automobile price 
                                inflation adjustment determined under 
                                section 280F(d)(7)(B)(i) for the 
                                calendar year in which such taxable 
                                year begins by substituting `2013' for 
                                `1987' in subclause (II) thereof.
                        If any increase under the preceding sentence is 
                        not a multiple of $100, such increase shall be 
                        rounded to the nearest multiple of $100.
                    ``(E) Deduction allowed in computing minimum tax.--
                For purposes of determining alternative minimum taxable 
                income under section 55, the deduction under section 
                167 for qualified property shall be determined without 
                regard to any adjustment under section 56.''.
    (b) Expansion of Election To Accelerate AMT Credits in Lieu of 
Bonus Depreciation.--Section 168(k)(4) of such Code is amended to read 
as follows:
            ``(4) Election to accelerate amt credits in lieu of bonus 
        depreciation.--
                    ``(A) In general.--If a corporation elects to have 
                this paragraph apply for any taxable year--
                            ``(i) paragraphs (1)(A), (2)(D)(i), and 
                        (5)(A)(i) shall not apply for such taxable 
                        year,
                            ``(ii) the applicable depreciation method 
                        used under this section with respect to any 
                        qualified property shall be the straight line 
                        method, and
                            ``(iii) the limitation imposed by section 
                        53(c) for such taxable year shall be increased 
                        by the bonus depreciation amount which is 
                        determined for such taxable year under 
                        subparagraph (B).
                    ``(B) Bonus depreciation amount.--For purposes of 
                this paragraph--
                            ``(i) In general.--The bonus depreciation 
                        amount for any taxable year is an amount equal 
                        to 20 percent of the excess (if any) of--
                                    ``(I) the aggregate amount of 
                                depreciation which would be allowed 
                                under this section for qualified 
                                property placed in service by the 
                                taxpayer during such taxable year if 
                                paragraph (1) applied to all such 
                                property, over
                                    ``(II) the aggregate amount of 
                                depreciation which would be allowed 
                                under this section for qualified 
                                property placed in service by the 
                                taxpayer during such taxable year if 
                                paragraph (1) did not apply to any such 
                                property.
                        The aggregate amounts determined under 
                        subclauses (I) and (II) shall be determined 
                        without regard to any election made under 
                        subsection (b)(2)(D), (b)(3)(D), or (g)(7) and 
                        without regard to subparagraph (A)(ii).
                            ``(ii) Limitation.--The bonus depreciation 
                        amount for any taxable year shall not exceed 
                        the lesser of--
                                    ``(I) 50 percent of the minimum tax 
                                credit under section 53(b) for the 
                                first taxable year ending after 
                                December 31, 2013, or
                                    ``(II) the minimum tax credit under 
                                section 53(b) for such taxable year 
                                determined by taking into account only 
                                the adjusted net minimum tax for 
                                taxable years ending before January 1, 
                                2014 (determined by treating credits as 
                                allowed on a first-in, first-out 
                                basis).
                            ``(iii) Aggregation rule.--All corporations 
                        which are treated as a single employer under 
                        section 52(a) shall be treated--
                                    ``(I) as 1 taxpayer for purposes of 
                                this paragraph, and
                                    ``(II) as having elected the 
                                application of this paragraph if any 
                                such corporation so elects.
                    ``(C) Credit refundable.--For purposes of section 
                6401(b), the aggregate increase in the credits 
                allowable under part IV of subchapter A for any taxable 
                year resulting from the application of this paragraph 
                shall be treated as allowed under subpart C of such 
                part (and not any other subpart).
                    ``(D) Other rules.--
                            ``(i) Election.--Any election under this 
                        paragraph may be revoked only with the consent 
                        of the Secretary.
                            ``(ii) Partnerships with electing 
                        partners.--In the case of a corporation which 
                        is a partner in a partnership and which makes 
                        an election under subparagraph (A) for the 
                        taxable year, for purposes of determining such 
                        corporation's distributive share of partnership 
                        items under section 702 for such taxable year--
                                    ``(I) paragraphs (1)(A), (2)(D)(i), 
                                and (5)(A)(i) shall not apply, and
                                    ``(II) the applicable depreciation 
                                method used under this section with 
                                respect to any qualified property shall 
                                be the straight line method.
                            ``(iii) Certain partnerships.--In the case 
                        of a partnership in which more than 50 percent 
                        of the capital and profits interests are owned 
                        (directly or indirectly) at all times during 
                        the taxable year by 1 corporation (or by 
                        corporations treated as 1 taxpayer under 
                        subparagraph (B)(iii)), each partner shall 
                        compute its bonus depreciation amount under 
                        clause (i) of subparagraph (B) by taking into 
                        account its distributive share of the amounts 
                        determined by the partnership under subclauses 
                        (I) and (II) of such clause for the taxable 
                        year of the partnership ending with or within 
                        the taxable year of the partner.''.
    (c) Special Rules for Trees and Vines Bearing Fruits and Nuts.--
Section 168(k) of such Code is amended--
            (1) by striking paragraph (5), and
            (2) by inserting after paragraph (4) the following new 
        paragraph:
            ``(5) Special rules for trees and vines bearing fruits and 
        nuts.--
                    ``(A) In general.--In the case of any tree or vine 
                bearing fruits or nuts which is planted, or is grafted 
                to a plant that has already been planted, by the 
                taxpayer in the ordinary course of the taxpayer's 
                farming business (as defined in section 263A(e)(4))--
                            ``(i) a depreciation deduction equal to 50 
                        percent of the adjusted basis of such tree or 
                        vine shall be allowed under section 167(a) for 
                        the taxable year in which such tree or vine is 
                        so planted or grafted, and
                            ``(ii) the adjusted basis of such tree or 
                        vine shall be reduced by the amount of such 
                        deduction.
                    ``(B) Election out.--If a taxpayer makes an 
                election under this subparagraph for any taxable year, 
                this paragraph shall not apply to any tree or vine 
                planted or grafted during such taxable year. An 
                election under this subparagraph may be revoked only 
                with the consent of the Secretary.
                    ``(C) Additional depreciation may be claimed only 
                once.--If this paragraph applies to any tree or vine, 
                such tree or vine shall not be treated as qualified 
                property in the taxable year in which placed in 
                service.
                    ``(D) Coordination with election to accelerate amt 
                credits.--If a corporation makes an election under 
                paragraph (4) for any taxable year, the amount under 
                paragraph (4)(B)(i)(I) for such taxable year shall be 
                increased by the amount determined under subparagraph 
                (A)(i) for such taxable year.
                    ``(E) Deduction allowed in computing minimum tax.--
                Rules similar to the rules of paragraph (2)(E) shall 
                apply for purposes of this paragraph.''.
    (d) Conforming Amendments.--
            (1) Section 168(e)(8) of such Code is amended by striking 
        subparagraph (D).
            (2) Section 168(k) of such Code is amended by adding at the 
        end the following new paragraph:
            ``(6) Election out.--If a taxpayer makes an election under 
        this paragraph with respect to any class of property for any 
        taxable year, this subsection shall not apply to all property 
        in such class placed in service (or, in the case of paragraph 
        (5), planted or grafted) during such taxable year. An election 
        under this paragraph may be revoked only with the consent of 
        the Secretary.''.
            (3) Section 168(l)(5) of such Code is amended by striking 
        ``section 168(k)(2)(G)'' and inserting ``section 
        168(k)(2)(E)''.
            (4) Section 263A(c) of such Code is amended by adding at 
        the end the following new paragraph:
            ``(7) Coordination with section 168(k)(5).--This section 
        shall not apply to any amount allowable as a deduction by 
        reason of section 168(k)(5) (relating to special rules for 
        trees and vines bearing fruits and nuts).''.
            (5) Section 460(c)(6)(B) of such Code is amended by 
        striking ``which--'' and all that follows and inserting ``which 
        has a recovery period of 7 years or less.''.
            (6) Section 168(k) of such Code is amended by striking 
        ``Acquired After December 31, 2007, and Before January 1, 
        2014'' in the heading thereof.
    (e) Effective Dates.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        property placed in service after December 31, 2013.
            (2) Expansion of election to accelerate amt credits in lieu 
        of bonus depreciation.--
                    (A) In general.--The amendment made by subsection 
                (b) (other than so much of such amendment as relates to 
                section 168(k)(4)(D)(iii) of such Code, as added by 
                such amendment) shall apply to taxable years ending 
                after December 31, 2013.
                    (B) Transitional rule.--In the case of a taxable 
                year beginning before January 1, 2014, and ending after 
                December 31, 2013, the bonus depreciation amount 
                determined under section 168(k)(4) of such Code for 
                such year shall be the sum of--
                            (i) such amount determined without regard 
                        to the amendments made by this section and--
                                    (I) by taking into account only 
                                property placed in service before 
                                January 1, 2014, and
                                    (II) by multiplying the limitation 
                                under section 168(k)(4)(C)(ii) of such 
                                Code (determined without regard to the 
                                amendments made by this section) by a 
                                fraction the numerator of which is the 
                                number of days in the taxable year 
                                before January 1, 2014, and the 
                                denominator of which is the number of 
                                days in the taxable year, and
                            (ii) such amount determined after taking 
                        into account the amendments made by this 
                        section and--
                                    (I) by taking into account only 
                                property placed in service after 
                                December 31, 2013, and
                                    (II) by multiplying the limitation 
                                under section 168(k)(4)(B)(ii) of such 
                                Code (as amended by this section) by a 
                                fraction the numerator of which is the 
                                number of days in the taxable year 
                                after December 31, 2013, and the 
                                denominator of which is the number of 
                                days in the taxable year.
            (3) Special rules for certain trees and vines.--The 
        amendment made by subsection (c)(2) shall apply to trees and 
        vines planted or grafted after December 31, 2013.

SEC. 1007. BUDGETARY EFFECTS.

    (a) Statutory Pay-As-You-Go Scorecards.--The budgetary effects of 
this title shall not be entered on either PAYGO scorecard maintained 
pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010.
    (b) Senate PAYGO Scorecards.--The budgetary effects of this title 
shall not be entered on any PAYGO scorecard maintained for purposes of 
section 201 of S. Con. Res. 21 (110th Congress).

          TITLE II--REINING IN JOB-KILLING WASHINGTON RED TAPE

   Subtitle A--Regulations From the Executive in Need of Scrutiny Act

SEC. 2001. PURPOSE.

    The purpose of this title is to increase accountability for and 
transparency in the Federal regulatory process. Section 1 of article I 
of the United States Constitution grants all legislative powers to 
Congress. Over time, Congress has excessively delegated its 
constitutional charge while failing to conduct appropriate oversight 
and retain accountability for the content of the laws it passes. By 
requiring a vote in Congress, this subtitle will result in more 
carefully drafted and detailed legislation, an improved regulatory 
process, and a legislative branch that is truly accountable to the 
American people for the laws imposed upon them. Moreover, as a tax on 
carbon emissions increases energy costs on consumers, reduces economic 
growth and is therefore detrimental to individuals, families and 
businesses, this subtitle includes in the definition of a major rule, 
any rule that implements or provides for the imposition or collection 
of a tax on carbon emissions.

SEC. 2002. CONGRESSIONAL REVIEW OF AGENCY RULEMAKING.

    Chapter 8 of title 5, United States Code, is amended to read as 
follows:

         ``CHAPTER 8--CONGRESSIONAL REVIEW OF AGENCY RULEMAKING

``Sec.
``801. Congressional review.
``802. Congressional approval procedure for major rules.
``803. Congressional disapproval procedure for nonmajor rules.
``804. Definitions.
``805. Judicial review.
``806. Exemption for monetary policy.
``807. Effective date of certain rules.
``Sec. 801. Congressional review
    ``(a)(1)(A) Before a rule may take effect, the Federal agency 
promulgating such rule shall submit to each House of the Congress and 
to the Comptroller General a report containing--
            ``(i) a copy of the rule;
            ``(ii) a concise general statement relating to the rule;
            ``(iii) a classification of the rule as a major or nonmajor 
        rule, including an explanation of the classification 
        specifically addressing each criteria for a major rule 
        contained within clauses (i) through (iii) of section 804(2)(A) 
        or within section 804(2)(B);
            ``(iv) a list of any other related regulatory actions taken 
        by or that will be taken by the Federal agency promulgating the 
        rule that are intended to implement the same statutory 
        provision or regulatory objective as well as the individual and 
        aggregate economic effects of those actions;
            ``(v) a list of any other related regulatory actions taken 
        by or that will be taken by any other Federal agency with 
        authority to implement the same statutory provision or 
        regulatory objective that are intended to implement such 
        provision or objective, of which the Federal agency 
        promulgating the rule is aware, as well as the individual and 
        aggregate economic effects of those actions; and
            ``(vi) the proposed effective date of the rule.
    ``(B) On the date of the submission of the report under 
subparagraph (A), the Federal agency promulgating the rule shall submit 
to the Comptroller General and make available to each House of 
Congress--
            ``(i) a complete copy of the cost-benefit analysis of the 
        rule, if any, including an analysis of any jobs added or lost, 
        differentiating between public and private sector jobs;
            ``(ii) the agency's actions pursuant to sections 603, 604, 
        605, 607, and 609 of this title;
            ``(iii) the agency's actions pursuant to sections 202, 203, 
        204, and 205 of the Unfunded Mandates Reform Act of 1995; and
            ``(iv) any other relevant information or requirements under 
        any other Act and any relevant Executive orders.
    ``(C) Upon receipt of a report submitted under subparagraph (A), 
each House shall provide copies of the report to the chairman and 
ranking member of each standing committee with jurisdiction under the 
rules of the House of Representatives or the Senate to report a bill to 
amend the provision of law under which the rule is issued.
    ``(2)(A) The Comptroller General shall provide a report on each 
major rule to the committees of jurisdiction by the end of 15 calendar 
days after the submission or publication date. The report of the 
Comptroller General shall include an assessment of the agency's 
compliance with procedural steps required by paragraph (1)(B) and an 
assessment of whether the major rule imposes any new limits or mandates 
on private-sector activity.
    ``(B) Federal agencies shall cooperate with the Comptroller General 
by providing information relevant to the Comptroller General's report 
under subparagraph (A).
    ``(3) A major rule relating to a report submitted under paragraph 
(1) shall take effect upon enactment of a joint resolution of approval 
described in section 802 or as provided for in the rule following 
enactment of a joint resolution of approval described in section 802, 
whichever is later.
    ``(4) A nonmajor rule shall take effect as provided by section 803 
after submission to Congress under paragraph (1).
    ``(5) If a joint resolution of approval relating to a major rule is 
not enacted within the period provided in subsection (b)(2), then a 
joint resolution of approval relating to the same rule may not be 
considered under this chapter in the same Congress by either the House 
of Representatives or the Senate.
    ``(b)(1) A major rule shall not take effect unless the Congress 
enacts a joint resolution of approval described under section 802.
    ``(2) If a joint resolution described in subsection (a) is not 
enacted into law by the end of 70 session days or legislative days, as 
applicable, beginning on the date on which the report referred to in 
section 801(a)(1)(A) is received by Congress (excluding days either 
House of Congress is adjourned for more than 3 days during a session of 
Congress), then the rule described in that resolution shall be deemed 
not to be approved and such rule shall not take effect.
    ``(c)(1) Notwithstanding any other provision of this section 
(except subject to paragraph (3)), a major rule may take effect for one 
90-calendar-day period if the President makes a determination under 
paragraph (2) and submits written notice of such determination to the 
Congress.
    ``(2) Paragraph (1) applies to a determination made by the 
President by Executive order that the major rule should take effect 
because such rule is--
            ``(A) necessary because of an imminent threat to health or 
        safety or other emergency;
            ``(B) necessary for the enforcement of criminal laws;
            ``(C) necessary for national security; or
            ``(D) issued pursuant to any statute implementing an 
        international trade agreement.
    ``(3) An exercise by the President of the authority under this 
subsection shall have no effect on the procedures under section 802.
    ``(d)(1) In addition to the opportunity for review otherwise 
provided under this chapter, in the case of any rule for which a report 
was submitted in accordance with subsection (a)(1)(A) during the period 
beginning on the date occurring--
            ``(A) in the case of the Senate, 60 session days, or
            ``(B) in the case of the House of Representatives, 60 
        legislative days,
before the date the Congress is scheduled to adjourn a session of 
Congress through the date on which the same or succeeding Congress 
first convenes its next session, sections 802 and 803 shall apply to 
such rule in the succeeding session of Congress.
    ``(2)(A) In applying sections 802 and 803 for purposes of such 
additional review, a rule described under paragraph (1) shall be 
treated as though--
            ``(i) such rule were published in the Federal Register on--
                    ``(I) in the case of the Senate, the 15th session 
                day, or
                    ``(II) in the case of the House of Representatives, 
                the 15th legislative day,
        after the succeeding session of Congress first convenes; and
            ``(ii) a report on such rule were submitted to Congress 
        under subsection (a)(1) on such date.
    ``(B) Nothing in this paragraph shall be construed to affect the 
requirement under subsection (a)(1) that a report shall be submitted to 
Congress before a rule can take effect.
    ``(3) A rule described under paragraph (1) shall take effect as 
otherwise provided by law (including other subsections of this 
section).
``Sec. 802. Congressional approval procedure for major rules
    ``(a)(1) For purposes of this section, the term `joint resolution' 
means only a joint resolution addressing a report classifying a rule as 
major pursuant to section 801(a)(1)(A)(iii) that--
            ``(A) bears no preamble;
            ``(B) bears the following title (with blanks filled as 
        appropriate): `Approving the rule submitted by ___ relating to 
        ___.';
            ``(C) includes after its resolving clause only the 
        following (with blanks filled as appropriate): `That Congress 
        approves the rule submitted by ___ relating to ___.'; and
            ``(D) is introduced pursuant to paragraph (2).
    ``(2) After a House of Congress receives a report classifying a 
rule as major pursuant to section 801(a)(1)(A)(iii), the majority 
leader of that House (or his or her respective designee) shall 
introduce (by request, if appropriate) a joint resolution described in 
paragraph (1)--
            ``(A) in the case of the House of Representatives, within 
        three legislative days; and
            ``(B) in the case of the Senate, within three session days.
    ``(3) A joint resolution described in paragraph (1) shall not be 
subject to amendment at any stage of proceeding.
    ``(b) A joint resolution described in subsection (a) shall be 
referred in each House of Congress to the committees having 
jurisdiction over the provision of law under which the rule is issued.
    ``(c) In the Senate, if the committee or committees to which a 
joint resolution described in subsection (a) has been referred have not 
reported it at the end of 15 session days after its introduction, such 
committee or committees shall be automatically discharged from further 
consideration of the resolution and it shall be placed on the calendar. 
A vote on final passage of the resolution shall be taken on or before 
the close of the 15th session day after the resolution is reported by 
the committee or committees to which it was referred, or after such 
committee or committees have been discharged from further consideration 
of the resolution.
    ``(d)(1) In the Senate, when the committee or committees to which a 
joint resolution is referred have reported, or when a committee or 
committees are discharged (under subsection (c)) from further 
consideration of a joint resolution described in subsection (a), it is 
at any time thereafter in order (even though a previous motion to the 
same effect has been disagreed to) for a motion to proceed to the 
consideration of the joint resolution, and all points of order against 
the joint resolution (and against consideration of the joint 
resolution) are waived. The motion is not subject to amendment, or to a 
motion to postpone, or to a motion to proceed to the consideration of 
other business. A motion to reconsider the vote by which the motion is 
agreed to or disagreed to shall not be in order. If a motion to proceed 
to the consideration of the joint resolution is agreed to, the joint 
resolution shall remain the unfinished business of the Senate until 
disposed of.
    ``(2) In the Senate, debate on the joint resolution, and on all 
debatable motions and appeals in connection therewith, shall be limited 
to not more than 2 hours, which shall be divided equally between those 
favoring and those opposing the joint resolution. A motion to further 
limit debate is in order and not debatable. An amendment to, or a 
motion to postpone, or a motion to proceed to the consideration of 
other business, or a motion to recommit the joint resolution is not in 
order.
    ``(3) In the Senate, immediately following the conclusion of the 
debate on a joint resolution described in subsection (a), and a single 
quorum call at the conclusion of the debate if requested in accordance 
with the rules of the Senate, the vote on final passage of the joint 
resolution shall occur.
    ``(4) Appeals from the decisions of the Chair relating to the 
application of the rules of the Senate to the procedure relating to a 
joint resolution described in subsection (a) shall be decided without 
debate.
    ``(e) In the House of Representatives, if any committee to which a 
joint resolution described in subsection (a) has been referred has not 
reported it to the House at the end of 15 legislative days after its 
introduction, such committee shall be discharged from further 
consideration of the joint resolution, and it shall be placed on the 
appropriate calendar. On the second and fourth Thursdays of each month 
it shall be in order at any time for the Speaker to recognize a Member 
who favors passage of a joint resolution that has appeared on the 
calendar for at least 5 legislative days to call up that joint 
resolution for immediate consideration in the House without 
intervention of any point of order. When so called up a joint 
resolution shall be considered as read and shall be debatable for 1 
hour equally divided and controlled by the proponent and an opponent, 
and the previous question shall be considered as ordered to its passage 
without intervening motion. It shall not be in order to reconsider the 
vote on passage. If a vote on final passage of the joint resolution has 
not been taken by the third Thursday on which the Speaker may recognize 
a Member under this subsection, such vote shall be taken on that day.
    ``(f)(1) If, before passing a joint resolution described in 
subsection (a), one House receives from the other a joint resolution 
having the same text, then--
            ``(A) the joint resolution of the other House shall not be 
        referred to a committee; and
            ``(B) the procedure in the receiving House shall be the 
        same as if no joint resolution had been received from the other 
        House until the vote on passage, when the joint resolution 
        received from the other House shall supplant the joint 
        resolution of the receiving House.
    ``(2) This subsection shall not apply to the House of 
Representatives if the joint resolution received from the Senate is a 
revenue measure.
    ``(g) If either House has not taken a vote on final passage of the 
joint resolution by the last day of the period described in section 
801(b)(2), then such vote shall be taken on that day.
    ``(h) This section and section 803 are enacted by Congress--
            ``(1) as an exercise of the rulemaking power of the Senate 
        and House of Representatives, respectively, and as such is 
        deemed to be part of the rules of each House, respectively, but 
        applicable only with respect to the procedure to be followed in 
        that House in the case of a joint resolution described in 
        subsection (a) and superseding other rules only where 
        explicitly so; and
            ``(2) with full recognition of the Constitutional right of 
        either House to change the rules (so far as they relate to the 
        procedure of that House) at any time, in the same manner and to 
        the same extent as in the case of any other rule of that House.
``Sec. 803. Congressional disapproval procedure for nonmajor rules
    ``(a) For purposes of this section, the term `joint resolution' 
means only a joint resolution introduced in the period beginning on the 
date on which the report referred to in section 801(a)(1)(A) is 
received by Congress and ending 60 days thereafter (excluding days 
either House of Congress is adjourned for more than 3 days during a 
session of Congress), the matter after the resolving clause of which is 
as follows: `That Congress disapproves the nonmajor rule submitted by 
the ___ relating to ___, and such rule shall have no force or effect.' 
(The blank spaces being appropriately filled in).
    ``(b) A joint resolution described in subsection (a) shall be 
referred to the committees in each House of Congress with jurisdiction.
    ``(c) In the Senate, if the committee to which is referred a joint 
resolution described in subsection (a) has not reported such joint 
resolution (or an identical joint resolution) at the end of 15 session 
days after the date of introduction of the joint resolution, such 
committee may be discharged from further consideration of such joint 
resolution upon a petition supported in writing by 30 Members of the 
Senate, and such joint resolution shall be placed on the calendar.
    ``(d)(1) In the Senate, when the committee to which a joint 
resolution is referred has reported, or when a committee is discharged 
(under subsection (c)) from further consideration of a joint resolution 
described in subsection (a), it is at any time thereafter in order 
(even though a previous motion to the same effect has been disagreed 
to) for a motion to proceed to the consideration of the joint 
resolution, and all points of order against the joint resolution (and 
against consideration of the joint resolution) are waived. The motion 
is not subject to amendment, or to a motion to postpone, or to a motion 
to proceed to the consideration of other business. A motion to 
reconsider the vote by which the motion is agreed to or disagreed to 
shall not be in order. If a motion to proceed to the consideration of 
the joint resolution is agreed to, the joint resolution shall remain 
the unfinished business of the Senate until disposed of.
    ``(2) In the Senate, debate on the joint resolution, and on all 
debatable motions and appeals in connection therewith, shall be limited 
to not more than 10 hours, which shall be divided equally between those 
favoring and those opposing the joint resolution. A motion to further 
limit debate is in order and not debatable. An amendment to, or a 
motion to postpone, or a motion to proceed to the consideration of 
other business, or a motion to recommit the joint resolution is not in 
order.
    ``(3) In the Senate, immediately following the conclusion of the 
debate on a joint resolution described in subsection (a), and a single 
quorum call at the conclusion of the debate if requested in accordance 
with the rules of the Senate, the vote on final passage of the joint 
resolution shall occur.
    ``(4) Appeals from the decisions of the Chair relating to the 
application of the rules of the Senate to the procedure relating to a 
joint resolution described in subsection (a) shall be decided without 
debate.
    ``(e) In the Senate the procedure specified in subsection (c) or 
(d) shall not apply to the consideration of a joint resolution 
respecting a nonmajor rule--
            ``(1) after the expiration of the 60 session days beginning 
        with the applicable submission or publication date, or
            ``(2) if the report under section 801(a)(1)(A) was 
        submitted during the period referred to in section 801(d)(1), 
        after the expiration of the 60 session days beginning on the 
        15th session day after the succeeding session of Congress first 
        convenes.
    ``(f) If, before the passage by one House of a joint resolution of 
that House described in subsection (a), that House receives from the 
other House a joint resolution described in subsection (a), then the 
following procedures shall apply:
            ``(1) The joint resolution of the other House shall not be 
        referred to a committee.
            ``(2) With respect to a joint resolution described in 
        subsection (a) of the House receiving the joint resolution--
                    ``(A) the procedure in that House shall be the same 
                as if no joint resolution had been received from the 
                other House; but
                    ``(B) the vote on final passage shall be on the 
                joint resolution of the other House.
``Sec. 804. Definitions
    ``For purposes of this chapter--
            ``(1) The term `Federal agency' means any agency as that 
        term is defined in section 551(1).
            ``(2) The term `major rule' means any rule, including an 
        interim final rule, that the Administrator of the Office of 
        Information and Regulatory Affairs of the Office of Management 
        and Budget finds--
                    ``(A) has resulted in or is likely to result in--
                            ``(i) an annual effect on the economy of 
                        $50,000,000 or more;
                            ``(ii) a major increase in costs or prices 
                        for consumers, individual industries, Federal, 
                        State, or local government agencies, or 
                        geographic regions; or
                            ``(iii) significant adverse effects on 
                        competition, employment, investment, 
                        productivity, innovation, or on the ability of 
                        United States-based enterprises to compete with 
                        foreign-based enterprises in domestic and 
                        export markets;
                    ``(B) is made by the Administrator of the 
                Environmental Protection Agency and that would have a 
                significant impact on a substantial number of 
                agricultural entities, as determined by the Secretary 
                of Agriculture (who shall publish such determination in 
                the Federal Register);
                    ``(C) is a rule that implements or provides for the 
                imposition or collection of a carbon tax; or
                    ``(D) is made under the Patient Protection and 
                Affordable Care Act (Public Law 111-148).
            ``(3) The term `nonmajor rule' means any rule that is not a 
        major rule.
            ``(4) The term `rule' has the meaning given such term in 
        section 551, except that such term does not include any rule of 
        particular applicability, including a rule that approves or 
        prescribes for the future rates, wages, prices, services, or 
        allowances therefore, corporate or financial structures, 
        reorganizations, mergers, or acquisitions thereof, or 
        accounting practices or disclosures bearing on any of the 
        foregoing.
            ``(5) The term `submission date or publication date', 
        except as otherwise provided in this chapter, means--
                    ``(A) in the case of a major rule, the date on 
                which the Congress receives the report submitted under 
                section 801(a)(1); and
                    ``(B) in the case of a nonmajor rule, the later 
                of--
                            ``(i) the date on which the Congress 
                        receives the report submitted under section 
                        801(a)(1); and
                            ``(ii) the date on which the nonmajor rule 
                        is published in the Federal Register, if so 
                        published.
            ``(6) The term `agricultural entity' means any entity 
        involved in or related to agricultural enterprise, including 
        enterprises that are engaged in the business of production of 
        food and fiber, ranching and raising of livestock, aquaculture, 
        and all other farming and agricultural related industries.
            ``(7) The term `carbon tax' means a fee, levy, or price 
        on--
                    ``(A) emissions, including carbon dioxide emissions 
                generated by the burning of coal, natural gas, or oil; 
                or
                    ``(B) coal, natural gas, or oil based on emissions, 
                including carbon dioxide emissions that would be 
                generated through the fuel's combustion.
``Sec. 805. Judicial review
    ``(a) No determination, finding, action, or omission under this 
chapter shall be subject to judicial review.
    ``(b) Notwithstanding subsection (a), a court may determine whether 
a Federal agency has completed the necessary requirements under this 
chapter for a rule to take effect.
    ``(c) The enactment of a joint resolution of approval under section 
802 shall not be interpreted to serve as a grant or modification of 
statutory authority by Congress for the promulgation of a rule, shall 
not extinguish or affect any claim, whether substantive or procedural, 
against any alleged defect in a rule, and shall not form part of the 
record before the court in any judicial proceeding concerning a rule 
except for purposes of determining whether or not the rule is in 
effect.
``Sec. 806. Exemption for monetary policy
    ``Nothing in this chapter shall apply to rules that concern 
monetary policy proposed or implemented by the Board of Governors of 
the Federal Reserve System or the Federal Open Market Committee.
``Sec. 807. Effective date of certain rules
    ``Notwithstanding section 801--
            ``(1) any rule that establishes, modifies, opens, closes, 
        or conducts a regulatory program for a commercial, 
        recreational, or subsistence activity related to hunting, 
        fishing, or camping; or
            ``(2) any rule other than a major rule which an agency for 
        good cause finds (and incorporates the finding and a brief 
        statement of reasons therefore in the rule issued) that notice 
        and public procedure thereon are impracticable, unnecessary, or 
        contrary to the public interest,
shall take effect at such time as the Federal agency promulgating the 
rule determines.''.

SEC. 2003. BUDGETARY EFFECTS OF RULES SUBJECT TO SECTION 802 OF TITLE 
              5, UNITED STATES CODE.

    Section 257(b)(2) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is amended by adding at the end the following new 
subparagraph:
                    ``(E) Budgetary effects of rules subject to section 
                802 of title 5, united states code.--Any rules subject 
                to the congressional approval procedure set forth in 
                section 802 of chapter 8 of title 5, United States 
                Code, affecting budget authority, outlays, or receipts 
                shall be assumed to be effective unless it is not 
                approved in accordance with such section.''.

SEC. 2004. GOVERNMENT ACCOUNTABILITY OFFICE STUDY OF RULES.

    (a) In General.--The Comptroller General of the United States shall 
conduct a study to determine, as of the date of the enactment of this 
subtitle--
            (1) how many rules (as such term is defined in section 804 
        of title 5, United States Code) were in effect;
            (2) how many major rules (as such term is defined in 
        section 804 of title 5, United States Code) were in effect; and
            (3) the total estimated economic cost imposed by all such 
        rules.
    (b) Report.--Not later than one year after the date of the 
enactment of this subtitle, the Comptroller General of the United 
States shall submit a report to Congress that contains the findings of 
the study conducted under subsection (a).

                Subtitle B--Energy Consumers Relief Act

SEC. 2201. PROHIBITION AGAINST FINALIZING CERTAIN ENERGY-RELATED RULES 
              THAT WILL CAUSE SIGNIFICANT ADVERSE EFFECTS TO THE 
              ECONOMY.

    Notwithstanding any other provision of law, the Administrator of 
the Environmental Protection Agency may not promulgate as final an 
energy-related rule that is estimated to cost more than $1 billion if 
the Secretary of Energy determines under section 2202(3) that the rule 
will cause significant adverse effects to the economy.

SEC. 2202. REPORTS AND DETERMINATIONS PRIOR TO PROMULGATING AS FINAL 
              CERTAIN ENERGY-RELATED RULES.

    Before promulgating as final any energy-related rule that is 
estimated to cost more than $1 billion:
            (1) Report to congress.--The Administrator of the 
        Environmental Protection Agency shall submit to Congress a 
        report (and transmit a copy to the Secretary of Energy) 
        containing--
                    (A) a copy of the rule;
                    (B) a concise general statement relating to the 
                rule;
                    (C) an estimate of the total costs of the rule, 
                including the direct costs and indirect costs of the 
                rule;
                    (D)(i) an estimate of the total benefits of the 
                rule and when such benefits are expected to be 
                realized;
                    (ii) a description of the modeling, the 
                calculations, the assumptions, and the limitations due 
                to uncertainty, speculation, or lack of information 
                associated with the estimates under this subparagraph; 
                and
                    (iii) a certification that all data and documents 
                relied upon by the Agency in developing such 
                estimates--
                            (I) have been preserved; and
                            (II) are available for review by the public 
                        on the Agency's Web site, except to the extent 
                        to which publication of such data and documents 
                        would constitute disclosure of confidential 
                        information in violation of applicable Federal 
                        law;
                    (E) an estimate of the increases in energy prices, 
                including potential increases in gasoline or 
                electricity prices for consumers, that may result from 
                implementation or enforcement of the rule; and
                    (F) a detailed description of the employment 
                effects, including potential job losses and shifts in 
                employment, that may result from implementation or 
                enforcement of the rule.
            (2) Initial determination on increases and impacts.--The 
        Secretary of Energy, in consultation with the Federal Energy 
        Regulatory Commission and the Administrator of the Energy 
        Information Administration, shall prepare an independent 
        analysis to determine whether the rule will cause--
                    (A) any increase in energy prices for consumers, 
                including low-income households, small businesses, and 
                manufacturers;
                    (B) any impact on fuel diversity of the Nation's 
                electricity generation portfolio or on national, 
                regional, or local electric reliability;
                    (C) any adverse effect on energy supply, 
                distribution, or use due to the economic or technical 
                infeasibility of implementing the rule; or
                    (D) any other adverse effect on energy supply, 
                distribution, or use (including a shortfall in supply 
                and increased use of foreign supplies).
            (3) Subsequent determination on adverse effects to the 
        economy.--If the Secretary of Energy determines, under 
        paragraph (2), that the rule will cause an increase, impact, or 
        effect described in such paragraph, then the Secretary, in 
        consultation with the Administrator of the Environmental 
        Protection Agency, the Secretary of Commerce, the Secretary of 
        Labor, and the Administrator of the Small Business 
        Administration, shall--
                    (A) determine whether the rule will cause 
                significant adverse effects to the economy, taking into 
                consideration--
                            (i) the costs and benefits of the rule and 
                        limitations in calculating such costs and 
                        benefits due to uncertainty, speculation, or 
                        lack of information; and
                            (ii) the positive and negative impacts of 
                        the rule on economic indicators, including 
                        those related to gross domestic product, 
                        unemployment, wages, consumer prices, and 
                        business and manufacturing activity; and
                    (B) publish the results of such determination in 
                the Federal Register.

SEC. 2203. DEFINITIONS.

    In this subtitle:
            (1) The terms ``direct costs'' and ``indirect costs'' have 
        the meanings given such terms in chapter 8 of the Environmental 
        Protection Agency's ``Guidelines for Preparing Economic 
        Analyses'' dated December 17, 2010.
            (2) The term ``energy-related rule that is estimated to 
        cost more than $1 billion'' means a rule of the Environmental 
        Protection Agency that--
                    (A) regulates any aspect of the production, supply, 
                distribution, or use of energy or provides for such 
                regulation by States or other governmental entities; 
                and
                    (B) is estimated by the Administrator of the 
                Environmental Protection Agency or the Director of the 
                Office of Management and Budget to impose direct costs 
                and indirect costs, in the aggregate, of more than 
                $1,000,000,000.
            (3) The term ``rule'' has the meaning given to such term in 
        section 551 of title 5, United States Code.

SEC. 2204. PROHIBITION ON USE OF SOCIAL COST OF CARBON IN ANALYSIS.

    (a) In General.--Notwithstanding any other provision of law or any 
Executive order, the Administrator of the Environmental Protection 
Agency may not use the social cost of carbon in order to incorporate 
social benefits of reducing carbon dioxide emissions, or for any other 
reason, in any cost-benefit analysis relating to an energy-related rule 
that is estimated to cost more than $1 billion unless and until a 
Federal law is enacted authorizing such use.
    (b) Definition.--In this section, the term ``social cost of 
carbon'' means the social cost of carbon as described in the technical 
support document entitled ``Technical Support Document: Technical 
Update of the Social Cost of Carbon for Regulatory Impact Analysis 
Under Executive Order 12866'', published by the Interagency Working 
Group on Social Cost of Carbon, United States Government, in May 2013, 
or any successor or substantially related document, or any other 
estimate of the monetized damages associated with an incremental 
increase in carbon dioxide emissions in a given year.

         Subtitle C--Electricity Security and Affordability Act

SEC. 2301. STANDARDS OF PERFORMANCE FOR NEW FOSSIL FUEL-FIRED ELECTRIC 
              UTILITY GENERATING UNITS.

    (a) Limitation.--The Administrator of the Environmental Protection 
Agency may not issue, implement, or enforce any proposed or final rule 
under section 111 of the Clean Air Act (42 U.S.C. 7411) that 
establishes a standard of performance for emissions of any greenhouse 
gas from any new source that is a fossil fuel-fired electric utility 
generating unit unless such rule meets the requirements under 
subsections (b) and (c).
    (b) Requirements.--In issuing any rule under section 111 of the 
Clean Air Act (42 U.S.C. 7411) establishing standards of performance 
for emissions of any greenhouse gas from new sources that are fossil 
fuel-fired electric utility generating units, the Administrator of the 
Environmental Protection Agency (for purposes of establishing such 
standards)--
            (1) shall separate sources fueled with coal and natural gas 
        into separate categories; and
            (2) shall not set a standard based on the best system of 
        emission reduction for new sources within a fossil-fuel 
        category unless--
                    (A) such standard has been achieved on average for 
                at least one continuous 12-month period (excluding 
                planned outages) by each of at least 6 units within 
                such category--
                            (i) each of which is located at a different 
                        electric generating station in the United 
                        States;
                            (ii) which, collectively, are 
                        representative of the operating characteristics 
                        of electric generation at different locations 
                        in the United States; and
                            (iii) each of which is operated for the 
                        entire 12-month period on a full commercial 
                        basis; and
                    (B) no results obtained from any demonstration 
                project are used in setting such standard.
    (c) Coal Having a Heat Content of 8300 or Less British Thermal 
Units Per Pound.--
            (1) Separate subcategory.--In carrying out subsection 
        (b)(1), the Administrator of the Environmental Protection 
        Agency shall establish a separate subcategory for new sources 
        that are fossil fuel-fired electric utility generating units 
        using coal with an average heat content of 8300 or less British 
        Thermal Units per pound.
            (2) Standard.--Notwithstanding subsection (b)(2), in 
        issuing any rule under section 111 of the Clean Air Act (42 
        U.S.C. 7411) establishing standards of performance for 
        emissions of any greenhouse gas from new sources in such 
        subcategory, the Administrator of the Environmental Protection 
        Agency shall not set a standard based on the best system of 
        emission reduction unless--
                    (A) such standard has been achieved on average for 
                at least one continuous 12-month period (excluding 
                planned outages) by each of at least 3 units within 
                such subcategory--
                            (i) each of which is located at a different 
                        electric generating station in the United 
                        States;
                            (ii) which, collectively, are 
                        representative of the operating characteristics 
                        of electric generation at different locations 
                        in the United States; and
                            (iii) each of which is operated for the 
                        entire 12-month period on a full commercial 
                        basis; and
                    (B) no results obtained from any demonstration 
                project are used in setting such standard.
    (d) Technologies.--Nothing in this section shall be construed to 
preclude the issuance, implementation, or enforcement of a standard of 
performance that--
            (1) is based on the use of one or more technologies that 
        are developed in a foreign country, but has been demonstrated 
        to be achievable at fossil fuel-fired electric utility 
        generating units in the United States; and
            (2) meets the requirements of subsections (b) and (c), as 
        applicable.

SEC. 2302. CONGRESS TO SET EFFECTIVE DATE FOR STANDARDS OF PERFORMANCE 
              FOR EXISTING, MODIFIED, AND RECONSTRUCTED FOSSIL FUEL-
              FIRED ELECTRIC UTILITY GENERATING UNITS.

    (a) Applicability.--This section applies with respect to any rule 
or guidelines issued by the Administrator of the Environmental 
Protection Agency under section 111 of the Clean Air Act (42 U.S.C. 
7411) that--
            (1) establish any standard of performance for emissions of 
        any greenhouse gas from any modified or reconstructed source 
        that is a fossil fuel-fired electric utility generating unit; 
        or
            (2) apply to the emissions of any greenhouse gas from an 
        existing source that is a fossil fuel-fired electric utility 
        generating unit.
    (b) Congress To Set Effective Date.--A rule or guidelines described 
in subsection (a) shall not take effect unless a Federal law is enacted 
specifying such rule's or guidelines' effective date.
    (c) Reporting.--A rule or guidelines described in subsection (a) 
shall not take effect unless the Administrator of the Environmental 
Protection Agency has submitted to Congress a report containing each of 
the following:
            (1) The text of such rule or guidelines.
            (2) The economic impacts of such rule or guidelines, 
        including the potential effects on--
                    (A) economic growth, competitiveness, and jobs in 
                the United States;
                    (B) electricity ratepayers, including low-income 
                ratepayers in affected States;
                    (C) required capital investments and projected 
                costs for operation and maintenance of new equipment 
                required to be installed; and
                    (D) the global economic competitiveness of the 
                United States.
            (3) The amount of greenhouse gas emissions that such rule 
        or guidelines are projected to reduce as compared to overall 
        global greenhouse gas emissions.
    (d) Consultation.--In carrying out subsection (c), the 
Administrator of the Environmental Protection Agency shall consult with 
the Administrator of the Energy Information Administration, the 
Comptroller General of the United States, the Director of the National 
Energy Technology Laboratory, and the Under Secretary of Commerce for 
Standards and Technology.

SEC. 2303. REPEAL OF EARLIER RULES AND GUIDELINES.

    The following rules and guidelines shall be of no force or effect, 
and shall be treated as though such rules and guidelines had never been 
issued:
            (1) The proposed rule--
                    (A) entitled ``Standards of Performance for 
                Greenhouse Gas Emissions for New Stationary Sources: 
                Electric Utility Generating Units'', published at 77 
                Fed. Reg. 22392 (April 13, 2012); and
                    (B) withdrawn pursuant to the notice entitled 
                ``Withdrawal of Proposed Standards of Performance for 
                Greenhouse Gas Emissions for New Stationary Sources: 
                Electric Utility Generating Units'', signed by the 
                Administrator of the Environmental Protection Agency on 
                September 20, 2013, and identified by docket ID number 
                EPA-HQ-OAR-2011-0660.
            (2) The proposed rule entitled ``Standards of Performance 
        for Greenhouse Gas Emissions from New Stationary Sources: 
        Electric Utility Generating Units'', signed by the 
        Administrator of the Environmental Protection Agency on 
        September 20, 2013, and identified by docket ID number EPA-HQ-
        OAR-2013-0495.
            (3) With respect to the proposed rule described in 
        paragraph (1), any successor or substantially similar proposed 
        or final rule that--
                    (A) is issued prior to the date of the enactment of 
                this Act;
                    (B) is applicable to any new source that is a 
                fossil fuel-fired electric utility generating unit; and
                    (C) does not meet the requirements under 
                subsections (b) and (c) of section 2.
            (4) Any proposed or final rule or guidelines under section 
        111 of the Clean Air Act (42 U.S.C. 7411) that--
                    (A) are issued prior to the date of the enactment 
                of this Act; and
                    (B) establish any standard of performance for 
                emissions of any greenhouse gas from any modified or 
                reconstructed source that is a fossil fuel-fired 
                electric utility generating unit or apply to the 
                emissions of any greenhouse gas from an existing source 
                that is a fossil fuel-fired electric utility generating 
                unit.

SEC. 2304. DEFINITIONS.

    In this subtitle:
            (1) Demonstration project.--The term ``demonstration 
        project'' means a project to test or demonstrate the 
        feasibility of carbon capture and storage technologies that has 
        received Federal Government funding or financial assistance.
            (2) Existing source.--The term ``existing source'' has the 
        meaning given such term in section 111(a) of the Clean Air Act 
        (42 U.S.C. 7411(a)), except such term shall not include any 
        modified source.
            (3) Greenhouse gas.--The term ``greenhouse gas'' means any 
        of the following:
                    (A) Carbon dioxide.
                    (B) Methane.
                    (C) Nitrous oxide.
                    (D) Sulfur hexafluoride.
                    (E) Hydrofluorocarbons.
                    (F) Perfluorocarbons.
            (4) Modification.--The term ``modification'' has the 
        meaning given such term in section 111(a) of the Clean Air Act 
        (42 U.S.C. 7411(a)).
            (5) Modified source.--The term ``modified source'' means 
        any stationary source, the modification of which is commenced 
        after the date of the enactment of this Act.
            (6) New source.--The term ``new source'' has the meaning 
        given such term in section 111(a) of the Clean Air Act (42 
        U.S.C. 7411(a)), except that such term shall not include any 
        modified source.

            Subtitle D--Coal Residuals Reuse and Management

SEC. 2401. MANAGEMENT AND DISPOSAL OF COAL COMBUSTION RESIDUALS.

    (a) In General.--Subtitle D of the Solid Waste Disposal Act (42 
U.S.C. 6941 et seq.) is amended by adding at the end the following:

``SEC. 4011. MANAGEMENT AND DISPOSAL OF COAL COMBUSTION RESIDUALS.

    ``(a) State Permit Programs for Coal Combustion Residuals.--Each 
State may adopt, implement, and enforce a coal combustion residuals 
permit program if such State provides the notification required under 
subsection (b)(1), and the certification required under subsection 
(b)(2).
    ``(b) State Actions.--
            ``(1) Notification.--Not later than 6 months after the date 
        of enactment of this section (except as provided by the 
        deadline identified under subsection (d)(3)(B)), the Governor 
        of each State shall notify the Administrator, in writing, 
        whether such State will adopt and implement a coal combustion 
        residuals permit program.
            ``(2) Certification.--
                    ``(A) In general.--Not later than 36 months after 
                the date of enactment of this section (except as 
                provided in subsection (f)(1)(A)), in the case of a 
                State that has notified the Administrator that it will 
                implement a coal combustion residuals permit program, 
                the head of the lead State implementing agency shall 
                submit to the Administrator a certification that such 
                coal combustion residuals permit program meets the 
                requirements described in subsection (c).
                    ``(B) Contents.--A certification submitted under 
                this paragraph shall include--
                            ``(i) a letter identifying the lead State 
                        implementing agency, signed by the head of such 
                        agency;
                            ``(ii) identification of any other State 
                        agencies involved with the implementation of 
                        the coal combustion residuals permit program;
                            ``(iii) an explanation of how the State 
                        coal combustion residuals permit program meets 
                        the requirements of this section, including a 
                        description of the State's--
                                    ``(I) process to inspect or 
                                otherwise determine compliance with 
                                such permit program;
                                    ``(II) process to enforce the 
                                requirements of such permit program;
                                    ``(III) public participation 
                                process for the promulgation, 
                                amendment, or repeal of regulations 
                                for, and the issuance of permits under, 
                                such permit program;
                                    ``(IV) statutes, regulations, or 
                                policies pertaining to public access to 
                                information, such as groundwater 
                                monitoring data; and
                                    ``(V) statutes, regulations, or 
                                policies pertaining to structural 
                                integrity or dam safety that may be 
                                applied to structures through such 
                                permit program;
                            ``(iv) a certification that the State has 
                        in effect, at the time of certification, 
                        statutes or regulations necessary to implement 
                        a coal combustion residuals permit program that 
                        meets the requirements described in subsection 
                        (c);
                            ``(v) copies of State statutes and 
                        regulations described in clause (iv); and
                            ``(vi) an emergency action plan for State 
                        response to a leak or spill at a structure that 
                        receives coal combustion residuals.
                    ``(C) Updates.--A State may update the 
                certification as needed to reflect changes to the coal 
                combustion residuals permit program.
            ``(3) Maintenance of 4005(c) or 3006 program.--In order to 
        adopt or implement a coal combustion residuals permit program 
        under this section (including pursuant to subsection (f)), the 
        State implementing agency shall maintain an approved permit 
        program or other system of prior approval and conditions under 
        section 4005(c) or an authorized program under section 3006.
    ``(c) Requirements for a Coal Combustion Residuals Permit 
Program.--A coal combustion residuals permit program shall consist of 
the following:
            ``(1) General requirements.--
                    ``(A) In general.--The implementing agency shall--
                            ``(i) apply the subset of the revised 
                        criteria described in paragraph (2) to owners 
                        or operators of structures, including surface 
                        impoundments, that receive coal combustion 
                        residuals on or after the date of enactment of 
                        this section;
                            ``(ii) with respect to structures that are 
                        receiving coal combustion residuals as of the 
                        date of enactment of this section, take the 
                        actions required under paragraph (3);
                            ``(iii) impose requirements for surface 
                        impoundments that do not meet certain criteria 
                        pursuant to paragraph (4); and
                            ``(iv) require that closure of structures 
                        occur in accordance with paragraph (5).
                    ``(B) Structural integrity.--
                            ``(i) Engineering certification.--The 
                        implementing agency shall require that an 
                        independent registered professional engineer 
                        certify that--
                                    ``(I) the design of each structure 
                                that receives coal combustion residuals 
                                on or after the date of enactment of 
                                this section is in accordance with 
                                recognized and generally accepted good 
                                engineering practices for containment 
                                of the maximum volume of coal 
                                combustion residuals and liquids which 
                                can be impounded therein; and
                                    ``(II) the construction and 
                                maintenance of the structure will 
                                ensure structural stability.
                            ``(ii) Emergency action plan.--The 
                        implementing agency shall require that the 
                        owner or operator of any structure that is a 
                        surface impoundment that receives coal 
                        combustion residuals on or after the date of 
                        enactment of this section and that is 
                        classified by the State as posing a high hazard 
                        potential pursuant to the guidelines published 
                        by the Federal Emergency Management Agency 
                        entitled `Federal Guidelines for Dam Safety: 
                        Hazard Potential Classification System for 
                        Dams' (FEMA Publication Number 333) prepare and 
                        maintain an emergency action plan that 
                        identifies responsible persons and actions to 
                        be taken in the event of a dam safety 
                        emergency.
                            ``(iii) Inspection.--
                                    ``(I) In general.--The implementing 
                                agency shall require that structures 
                                that are surface impoundments that 
                                receive coal combustion residuals on or 
                                after the date of enactment of this 
                                section be inspected not less than 
                                annually by an independent registered 
                                professional engineer to assure that 
                                the design, operation, and maintenance 
                                of the surface impoundment is in 
                                accordance with recognized and 
                                generally accepted good engineering 
                                practices for containment of the 
                                maximum volume of coal combustion 
                                residuals and liquids which can be 
                                impounded therein, so as to ensure dam 
                                stability.
                                    ``(II) Potentially hazardous 
                                conditions.--The implementing agency 
                                shall require that if an inspection 
                                under subclause (I), or a periodic 
                                evaluation under clause (iv), reveals a 
                                potentially hazardous condition, the 
                                owner or operator of the structure 
                                shall immediately take action to 
                                mitigate the potentially hazardous 
                                condition and notify appropriate State 
                                and local first responders.
                            ``(iv) Periodic evaluation.--The 
                        implementing agency shall require that 
                        structures that are surface impoundments that 
                        receive coal combustion residuals on or after 
                        the date of enactment of this section be 
                        periodically evaluated for appearances of 
                        structural weakness.
                            ``(v) Deficiency.--
                                    ``(I) In general.--If the head of 
                                the implementing agency determines that 
                                a structure is deficient with respect 
                                to the requirements in clause (i), 
                                (iii), or (iv), the head of the agency 
                                has the authority to require action to 
                                correct the deficiency according to a 
                                schedule determined by the agency.
                                    ``(II) Uncorrected deficiencies.--
                                If a deficiency is not corrected 
                                according to the schedule, the head of 
                                the implementing agency has the 
                                authority to require that the structure 
                                close in accordance with paragraph (5).
                                    ``(III) Dam safety consultation.--
                                In the case of a structure that is a 
                                surface impoundment, the head of the 
                                implementing agency shall, in making a 
                                determination under subclause (I), 
                                consult with appropriate State dam 
                                safety officials.
                    ``(C) Location.--The implementing agency shall 
                require that structures that first receive coal 
                combustion residuals on or after the date of enactment 
                of this section shall be constructed with a base 
                located a minimum of 2 feet above the upper limit of 
                the water table, unless it is demonstrated to the 
                satisfaction of the implementing agency that--
                            ``(i) the hydrogeologic characteristics of 
                        a structure and surrounding land would preclude 
                        such a requirement; and
                            ``(ii) the function and integrity of the 
                        liner system will not be adversely impacted by 
                        contact with the water table.
                    ``(D) Wind dispersal.--
                            ``(i) In general.--The implementing agency 
                        shall require that owners or operators of 
                        structures that receive coal combustion 
                        residuals on or after the date of enactment of 
                        this section address wind dispersal of dust by 
                        requiring cover, or by wetting coal combustion 
                        residuals with water to a moisture content that 
                        prevents wind dispersal, facilitates 
                        compaction, and does not result in free 
                        liquids.
                            ``(ii) Alternative methods.--Subject to the 
                        review and approval by the implementing agency, 
                        owners or operators of structures that receive 
                        coal combustion residuals on or after the date 
                        of enactment of this section may propose 
                        alternative methods to address wind dispersal 
                        of dust that will provide comparable or more 
                        effective control of dust.
                    ``(E) Permits.--The implementing agency shall 
                require that owners or operators of structures that 
                receive coal combustion residuals on or after the date 
                of enactment of this section apply for and obtain 
                permits incorporating the requirements of the coal 
                combustion residuals permit program.
                    ``(F) Public availability of information.--Except 
                for information with respect to which disclosure is 
                prohibited under section 1905 of title 18, United 
                States Code, the implementing agency shall ensure 
                that--
                            ``(i) documents for permit determinations 
                        are made available for public review and 
                        comment under the public participation process 
                        described in subsection (b)(2)(B)(iii)(III) or 
                        in subsection (e)(6), as applicable;
                            ``(ii) final determinations on permit 
                        applications are made known to the public; and
                            ``(iii) groundwater monitoring data 
                        collected under paragraph (2) is publicly 
                        available.
                    ``(G) Agency authority.--
                            ``(i) In general.--The implementing agency 
                        has the authority to--
                                    ``(I) obtain information necessary 
                                to determine whether the owner or 
                                operator of a structure is in 
                                compliance with the requirements of 
                                this subsection;
                                    ``(II) conduct or require 
                                monitoring and testing to ensure that 
                                structures are in compliance with the 
                                requirements of this subsection; and
                                    ``(III) enter, at reasonable times, 
                                any site or premise subject to the coal 
                                combustion residuals permit program for 
                                the purpose of inspecting structures 
                                and reviewing records relevant to the 
                                design, operation, and maintenance of 
                                structures.
                            ``(ii) Monitoring and testing.--If 
                        monitoring or testing is conducted under clause 
                        (i)(II) by or for the implementing agency, the 
                        implementing agency shall, if requested, 
                        provide to the owner or operator--
                                    ``(I) a written description of the 
                                monitoring or testing completed;
                                    ``(II) at the time of sampling, a 
                                portion of each sample equal in volume 
                                or weight to the portion retained by or 
                                for the implementing agency; and
                                    ``(III) a copy of the results of 
                                any analysis of samples collected by or 
                                for the implementing agency.
            ``(2) Revised criteria.--The subset of the revised criteria 
        referred to in paragraph (1)(A)(i) are as follows:
                    ``(A) Design requirements.--For new structures, and 
                lateral expansions of existing structures, that first 
                receive coal combustion residuals on or after the date 
                of enactment of this section, the revised criteria 
                regarding design requirements described in section 
                258.40 of title 40, Code of Federal Regulations, except 
                that the leachate collection system requirements 
                described in section 258.40(a)(2) of title 40, Code of 
                Federal Regulations, do not apply to structures that 
                are surface impoundments.
                    ``(B) Groundwater monitoring and corrective 
                action.--For all structures that receive coal 
                combustion residuals on or after the date of enactment 
                of this section, the revised criteria regarding 
                groundwater monitoring and corrective action 
                requirements described in subpart E of part 258 of 
                title 40, Code of Federal Regulations, except that, for 
                the purposes of this subparagraph, the revised criteria 
                shall also include--
                            ``(i) for the purposes of detection 
                        monitoring, the constituents boron, chloride, 
                        conductivity, fluoride, mercury, pH, sulfate, 
                        sulfide, and total dissolved solids; and
                            ``(ii) for the purposes of assessment 
                        monitoring, establishing a groundwater 
                        protection standard, and assessment of 
                        corrective measures, the constituents aluminum, 
                        boron, chloride, fluoride, iron, manganese, 
                        molybdenum, pH, sulfate, and total dissolved 
                        solids.
                    ``(C) Closure.--For all structures that receive 
                coal combustion residuals on or after the date of 
                enactment of this section, in a manner consistent with 
                paragraph (5), the revised criteria for closure 
                described in subsections (a) through (c) and (h) 
                through (j) of section 258.60 of title 40, Code of 
                Federal Regulations.
                    ``(D) Post-closure.--For all structures that 
                receive coal combustion residuals on or after the date 
                of enactment of this section, the revised criteria for 
                post-closure care described in section 258.61 of title 
                40, Code of Federal Regulations, except for the 
                requirement described in subsection (a)(4) of that 
                section.
                    ``(E) Location restrictions.--The revised criteria 
                for location restrictions described in--
                            ``(i) for new structures, and lateral 
                        expansions of existing structures, that first 
                        receive coal combustion residuals on or after 
                        the date of enactment of this section, sections 
                        258.11 through 258.15 of title 40, Code of 
                        Federal Regulations; and
                            ``(ii) for existing structures that receive 
                        coal combustion residuals on or after the date 
                        of enactment of this section, sections 258.11 
                        and 258.15 of title 40, Code of Federal 
                        Regulations.
                    ``(F) Air quality.--For all structures that receive 
                coal combustion residuals on or after the date of 
                enactment of this section, the revised criteria for air 
                quality described in section 258.24 of title 40, Code 
                of Federal Regulations.
                    ``(G) Financial assurance.--For all structures that 
                receive coal combustion residuals on or after the date 
                of enactment of this section, the revised criteria for 
                financial assurance described in subpart G of part 258 
                of title 40, Code of Federal Regulations.
                    ``(H) Surface water.--For all structures that 
                receive coal combustion residuals on or after the date 
                of enactment of this section, the revised criteria for 
                surface water described in section 258.27 of title 40, 
                Code of Federal Regulations.
                    ``(I) Recordkeeping.--For all structures that 
                receive coal combustion residuals on or after the date 
                of enactment of this section, the revised criteria for 
                recordkeeping described in section 258.29 of title 40, 
                Code of Federal Regulations.
                    ``(J) Run-on and run-off control systems for land-
                based units.--For all landfills and other land-based 
                units, other than surface impoundments, that receive 
                coal combustion residuals on or after the date of 
                enactment of this section, the revised criteria for 
                run-on and run-off control systems described in section 
                258.26 of title 40, Code of Federal Regulations.
                    ``(K) Run-off control systems for surface 
                impoundments.--For all surface impoundments that 
                receive coal combustion residuals on or after the date 
                of enactment of this section, the revised criteria for 
                run-off control systems described in section 
                258.26(a)(2) of title 40, Code of Federal Regulations.
            ``(3) Permit program implementation for existing 
        structures.--
                    ``(A) Notification.--Not later than the date on 
                which a State submits a certification under subsection 
                (b)(2), not later than 30 months after the 
                Administrator receives notice under subsection 
                (e)(1)(A), or not later than 36 months after the date 
                of enactment of this section with respect to a coal 
                combustion residuals permit program that is being 
                implemented by the Administrator under subsection 
                (e)(3), as applicable, the implementing agency shall 
                notify owners or operators of structures that are 
                receiving coal combustion residuals as of the date of 
                enactment of this section within the State of--
                            ``(i) the obligation to apply for and 
                        obtain a permit under subparagraph (C); and
                            ``(ii) the requirements referred to in 
                        subparagraph (B).
                    ``(B) Compliance with certain requirements.--Not 
                later than 12 months after the date on which a State 
                submits a certification under subsection (b)(2), not 
                later than 42 months after the Administrator receives 
                notice under subsection (e)(1)(A), or not later than 48 
                months after the date of enactment of this section with 
                respect to a coal combustion residuals permit program 
                that is being implemented by the Administrator under 
                subsection (e)(3), as applicable, the implementing 
                agency shall require owners or operators of structures 
                that are receiving coal combustion residuals as of the 
                date of enactment of this section to comply with--
                            ``(i) the requirements under paragraphs 
                        (1)(B) (ii) and (iii), (1)(D), (2)(B), (2)(F), 
                        (2)(H), (2)(J), and (2)(K); and
                            ``(ii) the groundwater recordkeeping 
                        requirement described in section 258.29(a)(5) 
                        of title 40, Code of Federal Regulations.
                    ``(C)  Permits.--
                            ``(i) Permit deadline.--Not later than 48 
                        months after the date on which a State submits 
                        a certification under subsection (b)(2), not 
                        later than 78 months after the Administrator 
                        receives notice under subsection (e)(1)(A), or 
                        not later than 84 months after the date of 
                        enactment of this section with respect to a 
                        coal combustion residuals permit program that 
                        is being implemented by the Administrator under 
                        subsection (e)(3), as applicable, the 
                        implementing agency shall issue, with respect 
                        to a structure that is receiving coal 
                        combustion residuals as of the date of 
                        enactment of this section, a final permit 
                        incorporating the requirements of the coal 
                        combustion residuals permit program, or a final 
                        denial for an application submitted requesting 
                        such a permit.
                            ``(ii) Application deadline.--The 
                        implementing agency shall identify, in 
                        collaboration with the owner or operator of a 
                        structure described in clause (i), a reasonable 
                        deadline by which the owner or operator shall 
                        submit a permit application under such clause.
                    ``(D) Interim operation.--
                            ``(i) Prior to deadlines.--With respect to 
                        any period of time on or after the date of 
                        enactment of this section but prior to the 
                        applicable deadline in subparagraph (B), the 
                        owner or operator of a structure that is 
                        receiving coal combustion residuals as of the 
                        date of enactment of this section may continue 
                        to operate such structure until such applicable 
                        deadline under the applicable authority in 
                        effect.
                            ``(ii) Prior to permit.--Unless the 
                        implementing agency determines that the 
                        structure should close pursuant to paragraph 
                        (5), if the owner or operator of a structure 
                        that is receiving coal combustion residuals as 
                        of the date of enactment of this section meets 
                        the requirements referred to in subparagraph 
                        (B) by the applicable deadline in such 
                        subparagraph, the owner or operator may operate 
                        the structure until such time as the 
                        implementing agency issues, under subparagraph 
                        (C), a final permit incorporating the 
                        requirements of the coal combustion residuals 
                        permit program, or a final denial for an 
                        application submitted requesting such a permit.
            ``(4) Requirements for surface impoundments that do not 
        meet certain criteria.--
                    ``(A) Surface impoundments that require assessment 
                of corrective measures within 10 years of the date of 
                enactment.--
                            ``(i) In general.--In addition to the 
                        groundwater monitoring and corrective action 
                        requirements described in paragraph (2)(B), the 
                        implementing agency shall require a surface 
                        impoundment that receives coal combustion 
                        residuals on or after the date of enactment of 
                        this section to comply with the requirements in 
                        clause (ii) of this subparagraph and clauses 
                        (i) and (ii) of subparagraph (D) if the surface 
                        impoundment--
                                    ``(I) does not--
                                            ``(aa) have a liner system 
                                        described in section 258.40(b) 
                                        of title 40, Code of Federal 
                                        Regulations; and
                                            ``(bb) meet the design 
                                        criteria described in section 
                                        258.40(a)(1) of title 40, Code 
                                        of Federal Regulations; and
                                    ``(II) within 10 years after the 
                                date of enactment of this section, is 
                                required under section 258.56(a) of 
                                title 40, Code of Federal Regulations, 
                                to undergo an assessment of corrective 
                                measures for any constituent covered 
                                under subpart E of part 258 of title 
                                40, Code of Federal Regulations, or 
                                otherwise identified in paragraph 
                                (2)(B)(ii) of this subsection, for 
                                which assessment groundwater monitoring 
                                is required.
                            ``(ii) Deadline to meet groundwater 
                        protection standard.--Except as provided in 
                        subparagraph (C), the implementing agency shall 
                        require that the groundwater protection 
                        standard, for surface impoundments identified 
                        in clause (i) of this subparagraph, established 
                        by the implementing agency under section 
                        258.55(h) or 258.55(i) of title 40, Code of 
                        Federal Regulations, for any constituent for 
                        which corrective measures are required shall be 
                        met--
                                    ``(I) as soon as practicable at the 
                                relevant point of compliance, as 
                                described in section 258.40(d) of title 
                                40, Code of Federal Regulations; and
                                    ``(II) not later than 10 years 
                                after the date of enactment of this 
                                section.
                    ``(B) Surface impoundments subject to a state 
                corrective action requirement as of the date of 
                enactment.--
                            ``(i) In general.--In addition to the 
                        groundwater monitoring and corrective action 
                        requirements described in paragraph (2)(B), the 
                        implementing agency shall require a surface 
                        impoundment that receives coal combustion 
                        residuals on or after the date of enactment of 
                        this section to comply with the requirements in 
                        clause (ii) of this subparagraph and clauses 
                        (i) and (ii) of subparagraph (D) if the surface 
                        impoundment--
                                    ``(I) does not--
                                            ``(aa) have a liner system 
                                        described in section 258.40(b) 
                                        of title 40, Code of Federal 
                                        Regulations; and
                                            ``(bb) meet the design 
                                        criteria described in section 
                                        258.40(a)(1) of title 40, Code 
                                        of Federal Regulations; and
                                    ``(II) as of the date of enactment 
                                of this section, is subject to a State 
                                corrective action requirement.
                            ``(ii) Deadline to meet groundwater 
                        protection standard.--Except as provided in 
                        subparagraph (C), the implementing agency shall 
                        require that the groundwater protection 
                        standard, for surface impoundments identified 
                        in clause (i) of this subparagraph, established 
                        by the implementing agency under section 
                        258.55(h) or 258.55(i) of title 40, Code of 
                        Federal Regulations, for any constituent for 
                        which corrective measures are required shall be 
                        met--
                                    ``(I) as soon as practicable at the 
                                relevant point of compliance, as 
                                described in section 258.40(d) of title 
                                40, Code of Federal Regulations; and
                                    ``(II) not later than 8 years after 
                                the date of enactment of this section.
                    ``(C) Extension of deadline.--
                            ``(i) In general.--Except as provided in 
                        clause (ii) of this subparagraph, the deadline 
                        for meeting a groundwater protection standard 
                        under subparagraph (A)(ii) or (B)(ii) may be 
                        extended by the implementing agency, after 
                        opportunity for public notice and comment under 
                        the public participation process described in 
                        subsection (b)(2)(B)(iii)(III), or in 
                        subsection (e)(6) based on--
                                    ``(I) the effectiveness of any 
                                interim measures implemented by the 
                                owner or operator of the facility under 
                                section 258.58(a)(3) of title 40, Code 
                                of Federal Regulations;
                                    ``(II) the level of progress 
                                demonstrated in meeting the groundwater 
                                protection standard;
                                    ``(III) the potential for other 
                                adverse human health or environmental 
                                exposures attributable to the 
                                contamination from the surface 
                                impoundment undergoing corrective 
                                action; and
                                    ``(IV) the lack of available 
                                alternative management capacity for the 
                                coal combustion residuals and related 
                                materials managed in the impoundment at 
                                the facility at which the impoundment 
                                is located if the owner or operator has 
                                used best efforts, as necessary, to 
                                design, obtain any necessary permits, 
                                finance, construct, and render 
                                operational the alternative management 
                                capacity during the time period for 
                                meeting a groundwater protection 
                                standard in subparagraph (A)(ii) or 
                                (B)(ii).
                            ``(ii) Exception.--The deadline under 
                        subparagraph (A)(ii) or (B)(ii) shall not be 
                        extended if there has been contamination of 
                        public or private drinking water systems 
                        attributable to a surface impoundment 
                        undergoing corrective action, unless the 
                        contamination has been addressed by providing a 
                        permanent replacement water system.
                    ``(D) Additional requirements.--
                            ``(i) Closure.--If the deadline under 
                        subparagraph (A)(ii), (B)(ii), or (C) is not 
                        satisfied, the surface impoundment shall cease 
                        receiving coal combustion residuals and 
                        initiate closure under paragraph (5).
                            ``(ii) Interim measures.--
                                    ``(I) In general.--Except as 
                                provided in subclause (II), not later 
                                than 90 days after the date on which 
                                the assessment of corrective measures 
                                is initiated, the owner or operator of 
                                a surface impoundment described in 
                                subparagraph (A) or (B) shall implement 
                                interim measures, as necessary, under 
                                the factors in section 258.58(a)(3) of 
                                title 40, Code of Federal Regulations.
                                    ``(II) Impoundments subject to 
                                state corrective action requirement as 
                                of the date of enactment.--Subclause 
                                (I) shall only apply to surface 
                                impoundments subject to a State 
                                corrective action requirement as of the 
                                date of enactment of this section if 
                                the owner or operator has not 
                                implemented interim measures, as 
                                necessary, under the factors in section 
                                258.58(a)(3) of title 40, Code of 
                                Federal Regulations.
                    ``(E) Surface impoundments that require assessment 
                of corrective measures more than 10 years after date of 
                enactment.--
                            ``(i) In general.--In addition to the 
                        groundwater monitoring and corrective action 
                        requirements described in paragraph (2)(B), the 
                        implementing agency shall require a surface 
                        impoundment that receives coal combustion 
                        residuals on or after the date of enactment of 
                        this section to comply with the requirements in 
                        clause (ii) if the surface impoundment--
                                    ``(I) does not--
                                            ``(aa) have a liner system 
                                        described in section 258.40(b) 
                                        of title 40, Code of Federal 
                                        Regulations; and
                                            ``(bb) meet the design 
                                        criteria described in section 
                                        258.40(a)(1) of title 40, Code 
                                        of Federal Regulations; and
                                    ``(II) more than 10 years after the 
                                date of enactment of this section, is 
                                required under section 258.56(a) title 
                                40, Code of Federal Regulations, to 
                                undergo an assessment of corrective 
                                measures for any constituent covered 
                                under subpart E of part 258 of title 
                                40, Code of Federal Regulations, or 
                                otherwise identified in paragraph 
                                (2)(B)(ii) of this subsection, for 
                                which assessment groundwater monitoring 
                                is required.
                            ``(ii) Requirements.--
                                    ``(I) Closure.--The surface 
                                impoundments identified in clause (i) 
                                shall cease receiving coal combustion 
                                residuals and initiate closure in 
                                accordance with paragraph (5) after 
                                alternative management capacity at the 
                                facility is available for the coal 
                                combustion residuals and related 
                                materials managed in the impoundment.
                                    ``(II) Best efforts.--The 
                                alternative management capacity shall 
                                be developed as soon as practicable 
                                with the owner or operator using best 
                                efforts to design, obtain necessary 
                                permits for, finance, construct, and 
                                render operational the alternative 
                                management capacity.
                                    ``(III) Alternative capacity 
                                management plan.--The owner or operator 
                                shall, in collaboration with the 
                                implementing agency, prepare a written 
                                plan that describes the steps necessary 
                                to develop the alternative management 
                                capacity and includes a schedule for 
                                completion.
                                    ``(IV) Public participation.--The 
                                plan described in subclause (III) shall 
                                be subject to public notice and comment 
                                under the public participation process 
                                described in subsection 
                                (b)(2)(B)(iii)(III) or in subsection 
                                (e)(6), as applicable.
            ``(5) Closure.--
                    ``(A) In general.--If it is determined by the 
                implementing agency that a structure should close 
                because the requirements of a coal combustion residuals 
                permit program are not being satisfied with respect to 
                such structure, or if it is determined by the owner or 
                operator that a structure should close, the time period 
                and method for the closure of such structure shall be 
                set forth in a closure plan that establishes a deadline 
                for completion of closure as soon as practicable and 
                that takes into account the nature and the site-
                specific characteristics of the structure to be closed.
                    ``(B) Surface impoundment.--In the case of a 
                surface impoundment, the closure plan under 
                subparagraph (A) shall require, at a minimum, the 
                removal of liquid and the stabilization of remaining 
                waste, as necessary to support the final cover.
    ``(d) Federal Review of State Permit Programs.--
            ``(1) In general.--The Administrator shall provide to a 
        State written notice and an opportunity to remedy deficiencies 
        in accordance with paragraph (3) if at any time the State--
                    ``(A) does not satisfy the notification requirement 
                under subsection (b)(1);
                    ``(B) has not submitted a certification required 
                under subsection (b)(2);
                    ``(C) does not satisfy the maintenance requirement 
                under subsection (b)(3);
                    ``(D) is not implementing a coal combustion 
                residuals permit program, with respect to which the 
                State has submitted a certification under subsection 
                (b)(2), that meets the requirements described in 
                subsection (c);
                    ``(E) is not implementing a coal combustion 
                residuals permit program, with respect to which the 
                State has submitted a certification under subsection 
                (b)(2)--
                            ``(i) that is consistent with such 
                        certification; and
                            ``(ii) for which the State continues to 
                        have in effect statutes or regulations 
                        necessary to implement such program; or
                    ``(F) does not make available to the Administrator, 
                within 90 days of a written request, specific 
                information necessary for the Administrator to 
                ascertain whether the State has satisfied the 
                requirements described in subparagraphs (A) through 
                (E).
            ``(2) Request.--If a request described in paragraph (1)(F) 
        is proposed pursuant to a petition to the Administrator, the 
        Administrator shall only make the request if the Administrator 
        does not possess the information necessary to ascertain whether 
        the State has satisfied the requirements described in 
        subparagraphs (A) through (E) of such paragraph.
            ``(3) Contents of notice; deadline for response.--A notice 
        provided under paragraph (1) shall--
                    ``(A) include findings of the Administrator 
                detailing any applicable deficiencies described in 
                subparagraphs (A) through (F) of paragraph (1); and
                    ``(B) identify, in collaboration with the State, a 
                reasonable deadline by which the State shall remedy 
                such applicable deficiencies, which shall be--
                            ``(i) in the case of a deficiency described 
                        in subparagraphs (A) through (E) of paragraph 
                        (1), not earlier than 180 days after the date 
                        on which the State receives the notice; and
                            ``(ii) in the case of a deficiency 
                        described in paragraph (1)(F), not later than 
                        90 days after the date on which the State 
                        receives the notice.
            ``(4) Criteria for determining deficiency of state permit 
        program.--In making a determination whether a State has failed 
        to satisfy the requirements described in subparagraphs (A) 
        through (E) of paragraph (1), or a determination under 
        subsection (e)(1)(B), the Administrator shall consider, as 
        appropriate--
                    ``(A) whether the State's statutes or regulations 
                to implement a coal combustion residuals permit program 
                are not sufficient to meet the requirements described 
                in subsection (c) because of--
                            ``(i) failure of the State to promulgate or 
                        enact new statutes or regulations when 
                        necessary; or
                            ``(ii) action by a State legislature or 
                        court striking down or limiting such State 
                        statutes or regulations;
                    ``(B) whether the operation of the State coal 
                combustion residuals permit program fails to comply 
                with the requirements of subsection (c) because of--
                            ``(i) failure of the State to issue permits 
                        as required in subsection (c)(1)(E);
                            ``(ii) repeated issuance of permits by the 
                        State which do not meet the requirements of 
                        subsection (c);
                            ``(iii) failure of the State to comply with 
                        the public participation requirements of this 
                        section; or
                            ``(iv) failure of the State to implement 
                        corrective action requirements as described in 
                        subsection (c)(2)(B); and
                    ``(C) whether the enforcement of a State coal 
                combustion residuals permit program fails to comply 
                with the requirements of this section because of--
                            ``(i) failure to act on violations of 
                        permits, as identified by the State; or
                            ``(ii) repeated failure by the State to 
                        inspect or otherwise determine compliance 
                        pursuant to the process identified in 
                        subsection (b)(2)(B)(iii)(I).
    ``(e) Implementation by Administrator.--
            ``(1) Federal backstop authority.--The Administrator shall 
        implement a coal combustion residuals permit program for a 
        State only if--
                    ``(A) the Governor of the State notifies the 
                Administrator under subsection (b)(1) that the State 
                will not adopt and implement a permit program;
                    ``(B) the State has received a notice under 
                subsection (d) and the Administrator determines, after 
                providing a 30-day period for notice and public 
                comment, that the State has failed, by the deadline 
                identified in the notice under subsection (d)(3)(B), to 
                remedy the deficiencies detailed in the notice under 
                subsection (d)(3)(A); or
                    ``(C) the State informs the Administrator, in 
                writing, that such State will no longer implement such 
                a permit program.
            ``(2) Review.--A State may obtain a review of a 
        determination by the Administrator under this subsection as if 
        the determination was a final regulation for purposes of 
        section 7006.
            ``(3) Other structures.--For structures that receive coal 
        combustion residuals on or after the date of enactment of this 
        section located on property within the exterior boundaries of a 
        State that the State does not have authority or jurisdiction to 
        regulate, the Administrator shall implement a coal combustion 
        residuals permit program only for those structures.
            ``(4) Requirements.--If the Administrator implements a coal 
        combustion residuals permit program for a State under paragraph 
        (1) or (3), the permit program shall consist of the 
        requirements described in subsection (c).
            ``(5) Enforcement.--
                    ``(A) In general.--If the Administrator implements 
                a coal combustion residuals permit program for a State 
                under paragraph (1)--
                            ``(i) the authorities referred to in 
                        section 4005(c)(2)(A) shall apply with respect 
                        to coal combustion residuals and structures for 
                        which the Administrator is implementing the 
                        coal combustion residuals permit program; and
                            ``(ii) the Administrator may use those 
                        authorities to inspect, gather information, and 
                        enforce the requirements of this section in the 
                        State.
                    ``(B) Other structures.--If the Administrator 
                implements a coal combustion residuals permit program 
                under paragraph (3)--
                            ``(i) the authorities referred to in 
                        section 4005(c)(2)(A) shall apply with respect 
                        to coal combustion residuals and structures for 
                        which the Administrator is implementing the 
                        coal combustion residuals permit program; and
                            ``(ii) the Administrator may use those 
                        authorities to inspect, gather information, and 
                        enforce the requirements of this section for 
                        the structures for which the Administrator is 
                        implementing the coal combustion residuals 
                        permit program.
            ``(6) Public participation process.--If the Administrator 
        implements a coal combustion residuals permit program for a 
        State under this subsection, the Administrator shall provide a 
        30-day period for the public participation process required in 
        paragraphs (1)(F)(i), (4)(C)(i), and (4)(E)(ii)(IV) of 
        subsection (c).
    ``(f) State Control After Implementation by Administrator.--
            ``(1) State control.--
                    ``(A) New adoption, or resumption of, and 
                implementation by state.--For a State for which the 
                Administrator is implementing a coal combustion 
                residuals permit program under subsection (e)(1)(A), or 
                subsection (e)(1)(C), the State may adopt and implement 
                such a permit program by--
                            ``(i) notifying the Administrator that the 
                        State will adopt and implement such a permit 
                        program;
                            ``(ii) not later than 6 months after the 
                        date of such notification, submitting to the 
                        Administrator a certification under subsection 
                        (b)(2); and
                            ``(iii) receiving from the Administrator--
                                    ``(I) a determination, after 
                                providing a 30-day period for notice 
                                and public comment, that the State coal 
                                combustion residuals permit program 
                                meets the requirements described in 
                                subsection (c); and
                                    ``(II) a timeline for transition of 
                                control of the coal combustion 
                                residuals permit program.
                    ``(B) Remedying deficient permit program.--For a 
                State for which the Administrator is implementing a 
                coal combustion residuals permit program under 
                subsection (e)(1)(B), the State may adopt and implement 
                such a permit program by--
                            ``(i) remedying only the deficiencies 
                        detailed in the notice pursuant to subsection 
                        (d)(3)(A); and
                            ``(ii) receiving from the Administrator--
                                    ``(I) a determination, after 
                                providing a 30-day period for notice 
                                and public comment, that the 
                                deficiencies detailed in such notice 
                                have been remedied; and
                                    ``(II) a timeline for transition of 
                                control of the coal combustion 
                                residuals permit program.
            ``(2) Review of determination.--
                    ``(A) Determination required.--The Administrator 
                shall make a determination under paragraph (1) not 
                later than 90 days after the date on which the State 
                submits a certification under paragraph (1)(A)(ii), or 
                notifies the Administrator that the deficiencies have 
                been remedied pursuant to paragraph (1)(B)(i), as 
                applicable.
                    ``(B) Review.--A State may obtain a review of a 
                determination by the Administrator under paragraph (1) 
                as if such determination was a final regulation for 
                purposes of section 7006.
            ``(3) Implementation during transition.--
                    ``(A) Effect on actions and orders.--Program 
                requirements of, and actions taken or orders issued 
                pursuant to, a coal combustion residuals permit program 
                shall remain in effect if--
                            ``(i) a State takes control of its coal 
                        combustion residuals permit program from the 
                        Administrator under paragraph (1); or
                            ``(ii) the Administrator takes control of a 
                        coal combustion residuals permit program from a 
                        State under subsection (e).
                    ``(B) Change in requirements.--Subparagraph (A) 
                shall apply to such program requirements, actions, and 
                orders until such time as--
                            ``(i) the implementing agency changes the 
                        requirements of the coal combustion residuals 
                        permit program with respect to the basis for 
                        the action or order; or
                            ``(ii) the State or the Administrator, 
                        whichever took the action or issued the order, 
                        certifies the completion of a corrective action 
                        that is the subject of the action or order.
            ``(4) Single permit program.--If a State adopts and 
        implements a coal combustion residuals permit program under 
        this subsection, the Administrator shall cease to implement the 
        permit program implemented under subsection (e)(1) for such 
        State.
    ``(g) Effect on Determination Under 4005(c) or 3006.--The 
Administrator shall not consider the implementation of a coal 
combustion residuals permit program by the Administrator under 
subsection (e) in making a determination of approval for a permit 
program or other system of prior approval and conditions under section 
4005(c) or of authorization for a program under section 3006.
    ``(h) Authority.--
            ``(1) State authority.--Nothing in this section shall 
        preclude or deny any right of any State to adopt or enforce any 
        regulation or requirement respecting coal combustion residuals 
        that is more stringent or broader in scope than a regulation or 
        requirement under this section.
            ``(2) Authority of the administrator.--
                    ``(A) In general.--Except as provided in 
                subsections (d) and (e) and section 6005, the 
                Administrator shall, with respect to the regulation of 
                coal combustion residuals, defer to the States pursuant 
                to this section.
                    ``(B) Imminent hazard.--Nothing in this section 
                shall be construed as affecting the authority of the 
                Administrator under section 7003 with respect to coal 
                combustion residuals.
                    ``(C) Enforcement assistance only upon request.--
                Upon request from the head of a lead State agency that 
                is implementing a coal combustion residuals permit 
                program, the Administrator may provide to such State 
                agency only the enforcement assistance requested.
                    ``(D) Concurrent enforcement.--Except as provided 
                in subparagraph (C), the Administrator shall not have 
                concurrent enforcement authority when a State is 
                implementing a coal combustion residuals permit 
                program, including during any period of interim 
                operation described in subsection (c)(3)(D).
                    ``(E) Other authority.--The Administrator shall not 
                have authority to finalize the proposed rule published 
                at pages 35128 through 35264 of volume 75 of the 
                Federal Register (June 21, 2010).
                    ``(F) Other response authority.--Nothing in this 
                section shall be construed as affecting the authority 
                of the Administrator under the Comprehensive 
                Environmental Response, Compensation, and Liability Act 
                of 1980 (42 U.S.C. 9601 et seq.) with respect to coal 
                combustion residuals.
            ``(3) Citizen suits.--Nothing in this section shall be 
        construed to affect the authority of a person to commence a 
        civil action in accordance with section 7002.
    ``(i) Mine Reclamation Activities.--A coal combustion residuals 
permit program implemented by the Administrator under subsection (e) 
shall not apply to the utilization, placement, and storage of coal 
combustion residuals at surface mining and reclamation operations.
    ``(j) Definitions.--In this section:
            ``(1) Coal combustion residuals.--The term `coal combustion 
        residuals' means--
                    ``(A) the solid wastes listed in section 
                3001(b)(3)(A)(i), including recoverable materials from 
                such wastes;
                    ``(B) coal combustion wastes that are co-managed 
                with wastes produced in conjunction with the combustion 
                of coal, provided that such wastes are not segregated 
                and disposed of separately from the coal combustion 
                wastes and comprise a relatively small proportion of 
                the total wastes being disposed in the structure;
                    ``(C) fluidized bed combustion wastes;
                    ``(D) wastes from the co-burning of coal with non-
                hazardous secondary materials, provided that coal makes 
                up at least 50 percent of the total fuel burned; and
                    ``(E) wastes from the co-burning of coal with 
                materials described in subparagraph (A) that are 
                recovered from monofills.
            ``(2) Coal combustion residuals permit program.--The term 
        `coal combustion residuals permit program' means all of the 
        authorities, activities, and procedures that comprise the 
        system of prior approval and conditions implemented by or for a 
        State to regulate the management and disposal of coal 
        combustion residuals.
            ``(3) Code of federal regulations.--The term `Code of 
        Federal Regulations' means the Code of Federal Regulations (as 
        in effect on the date of enactment of this section) or any 
        successor regulations.
            ``(4) Implementing agency.--The term `implementing agency' 
        means the agency responsible for implementing a coal combustion 
        residuals permit program for a State, which shall either be the 
        lead State implementing agency identified under subsection 
        (b)(2)(B)(i) or the Administrator pursuant to subsection (e).
            ``(5) Permit; prior approval and conditions.--Except as 
        provided in subsections (b)(3) and (g), the terms `permit' and 
        `prior approval and conditions' mean any authorization, 
        license, or equivalent control document that incorporates the 
        requirements of subsection (c).
            ``(6) Revised criteria.--The term `revised criteria' means 
        the criteria promulgated for municipal solid waste landfill 
        units under section 4004(a) and under section 1008(a)(3), as 
        revised under section 4010(c).
            ``(7) Structure.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `structure' means a 
                landfill, surface impoundment, or other land-based unit 
                which receives, or is intended to receive, coal 
                combustion residuals.
                    ``(B) De minimis receipt.--The term `structure' 
                does not include any land-based unit that receives only 
                de minimis quantities of coal combustion residuals if 
                the presence of coal combustion residuals is incidental 
                to the material managed in the unit.''.
    (b) Conforming Amendment.--The table of contents contained in 
section 1001 of the Solid Waste Disposal Act is amended by inserting 
after the item relating to section 4010 the following:

``Sec. 4011. Management and disposal of coal combustion residuals.''.

SEC. 2402. 2000 REGULATORY DETERMINATION.

    Nothing in this subtitle, or the amendments made by this subtitle, 
shall be construed to alter in any manner the Environmental Protection 
Agency's regulatory determination entitled ``Notice of Regulatory 
Determination on Wastes From the Combustion of Fossil Fuels'', 
published at 65 Fed. Reg. 32214 (May 22, 2000), that the fossil fuel 
combustion wastes addressed in that determination do not warrant 
regulation under subtitle C of the Solid Waste Disposal Act (42 U.S.C. 
6921 et seq.).

SEC. 2403. TECHNICAL ASSISTANCE.

    Nothing in this subtitle, or the amendments made by this subtitle, 
shall be construed to affect the authority of a State to request, or 
the Administrator of the Environmental Protection Agency to provide, 
technical assistance under the Solid Waste Disposal Act (42 U.S.C. 6901 
et seq.).

SEC. 2404. FEDERAL POWER ACT.

    Nothing in this subtitle, or the amendments made by this subtitle, 
shall be construed to affect the obligations of an owner or operator of 
a structure (as defined in section 4011 of the Solid Waste Disposal 
Act, as added by this subtitle) under section 215(b)(1) of the Federal 
Power Act (16 U.S.C. 824o(b)(1)).

               TITLE III--REDUCING FRIVOLOUS LEGAL COSTS

                Subtitle A--Lawsuit Abuse Reduction Act

SEC. 3101. ATTORNEY ACCOUNTABILITY.

    (a) Sanctions Under Rule 11.--Rule 11(c) of the Federal Rules of 
Civil Procedure is amended--
            (1) in paragraph (1), by striking ``may'' and inserting 
        ``shall'';
            (2) in paragraph (2), by striking ``Rule 5'' and all that 
        follows through ``motion.'' and inserting ``Rule 5.''; and
            (3) in paragraph (4), by striking ``situated'' and all that 
        follows through the end of the paragraph and inserting 
        ``situated, and to compensate the parties that were injured by 
        such conduct. Subject to the limitations in paragraph (5), the 
        sanction shall consist of an order to pay to the party or 
        parties the amount of the reasonable expenses incurred as a 
        direct result of the violation, including reasonable attorneys' 
        fees and costs. The court may also impose additional 
        appropriate sanctions, such as striking the pleadings, 
        dismissing the suit, or other directives of a nonmonetary 
        nature, or, if warranted for effective deterrence, an order 
        directing payment of a penalty into the court.''.
    (b) Rule of Construction.--Nothing in this subtitle or an amendment 
made by this subtitle shall be construed to bar or impede the assertion 
or development of new claims, defenses, or remedies under Federal, 
State, or local laws, including civil rights laws, or under the 
Constitution of the United States.

    Subtitle B--Furthering Asbestos Claim Transparency in Bankruptcy

SEC. 3201. AMENDMENTS.

    Section 524(g) of title 11, United States Code, is amended by 
adding at the end the following:
    ``(8) A trust described in paragraph (2) shall, subject to section 
107--
            ``(A) file with the bankruptcy court, not later than 60 
        days after the end of every quarter, a report that shall be 
        made available on the court's public docket and with respect to 
        such quarter--
                    ``(i) describes each demand the trust received 
                from, including the name and exposure history of, a 
                claimant and the basis for any payment from the trust 
                made to such claimant; and
                    ``(ii) does not include any confidential medical 
                record or the claimant's full social security number; 
                and
            ``(B) upon written request, and subject to payment 
        (demanded at the option of the trust) for any reasonable cost 
        incurred by the trust to comply with such request, provide in a 
        timely manner any information related to payment from, and 
        demands for payment from, such trust, subject to appropriate 
        protective orders, to any party to any action in law or equity 
        if the subject of such action concerns liability for asbestos 
        exposure.''.

SEC. 3202. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

    (a) Effective Date.--Except as provided in subsection (b), this 
subtitle and the amendments made by this subtitle shall take effect on 
the date of the enactment of this subtitle.
    (b) Application of Amendments.--The amendments made by this 
subtitle shall apply with respect to cases commenced under title 11 of 
the United States Code before, on, or after the date of the enactment 
of this subtitle.

                       Subtitle C--Innovation Act

SEC. 3301. DEFINITIONS.

    In this subtitle:
            (1) Director.--The term ``Director'' means the Under 
        Secretary of Commerce for Intellectual Property and Director of 
        the United States Patent and Trademark Office.
            (2) Office.--The term ``Office'' means the United States 
        Patent and Trademark Office.

SEC. 3302. PATENT INFRINGEMENT ACTIONS.

    (a) Pleading Requirements.--
            (1) Amendment.--Chapter 29 of title 35, United States Code, 
        is amended by inserting after section 281 the following:
``Sec. 281A. Pleading requirements for patent infringement actions
    ``(a) Pleading Requirements.--Except as provided in subsection (b), 
in a civil action in which a party asserts a claim for relief arising 
under any Act of Congress relating to patents, a party alleging 
infringement shall include in the initial complaint, counterclaim, or 
cross-claim for patent infringement, unless the information is not 
reasonably accessible to such party, the following:
            ``(1) An identification of each patent allegedly infringed.
            ``(2) An identification of each claim of each patent 
        identified under paragraph (1) that is allegedly infringed.
            ``(3) For each claim identified under paragraph (2), an 
        identification of each accused process, machine, manufacture, 
        or composition of matter (referred to in this section as an 
        `accused instrumentality') alleged to infringe the claim.
            ``(4) For each accused instrumentality identified under 
        paragraph (3), an identification with particularity, if known, 
        of--
                    ``(A) the name or model number of each accused 
                instrumentality; or
                    ``(B) if there is no name or model number, a 
                description of each accused instrumentality.
            ``(5) For each accused instrumentality identified under 
        paragraph (3), a clear and concise statement of--
                    ``(A) where each element of each claim identified 
                under paragraph (2) is found within the accused 
                instrumentality; and
                    ``(B) with detailed specificity, how each 
                limitation of each claim identified under paragraph (2) 
                is met by the accused instrumentality.
            ``(6) For each claim of indirect infringement, a 
        description of the acts of the alleged indirect infringer that 
        contribute to or are inducing the direct infringement.
            ``(7) A description of the authority of the party alleging 
        infringement to assert each patent identified under paragraph 
        (1) and of the grounds for the court's jurisdiction.
            ``(8) A clear and concise description of the principal 
        business, if any, of the party alleging infringement.
            ``(9) A list of each complaint filed, of which the party 
        alleging infringement has knowledge, that asserts or asserted 
        any of the patents identified under paragraph (1).
            ``(10) For each patent identified under paragraph (1), 
        whether a standard-setting body has specifically declared such 
        patent to be essential, potentially essential, or having 
        potential to become essential to that standard-setting body, 
        and whether the United States Government or a foreign 
        government has imposed specific licensing requirements with 
        respect to such patent.
    ``(b) Information Not Readily Accessible.--If information required 
to be disclosed under subsection (a) is not readily accessible to a 
party, that information may instead be generally described, along with 
an explanation of why such undisclosed information was not readily 
accessible, and of any efforts made by such party to access such 
information.
    ``(c) Confidential Information.--A party required to disclose 
information described under subsection (a) may file, under seal, 
information believed to be confidential, with a motion setting forth 
good cause for such sealing. If such motion is denied by the court, the 
party may seek to file an amended complaint.
    ``(d) Exemption.--A civil action that includes a claim for relief 
arising under section 271(e)(2) shall not be subject to the 
requirements of subsection (a).''.
            (2) Conforming amendment.--The table of sections for 
        chapter 29 of title 35, United States Code, is amended by 
        inserting after the item relating to section 281 the following 
        new item:

``281A. Pleading requirements for patent infringement actions.''.
    (b) Fees and Other Expenses.--
            (1) Amendment.--Section 285 of title 35, United States 
        Code, is amended to read as follows:
``Sec. 285. Fees and other expenses
    ``(a) Award.--The court shall award, to a prevailing party, 
reasonable fees and other expenses incurred by that party in connection 
with a civil action in which any party asserts a claim for relief 
arising under any Act of Congress relating to patents, unless the court 
finds that the position and conduct of the nonprevailing party or 
parties were reasonably justified in law and fact or that special 
circumstances (such as severe economic hardship to a named inventor) 
make an award unjust.
    ``(b) Certification and Recovery.--Upon motion of any party to the 
action, the court shall require another party to the action to certify 
whether or not the other party will be able to pay an award of fees and 
other expenses if such an award is made under subsection (a). If a 
nonprevailing party is unable to pay an award that is made against it 
under subsection (a), the court may make a party that has been joined 
under section 299(d) with respect to such party liable for the 
unsatisfied portion of the award.
    ``(c) Covenant Not To Sue.--A party to a civil action that asserts 
a claim for relief arising under any Act of Congress relating to 
patents against another party, and that subsequently unilaterally 
extends to such other party a covenant not to sue for infringement with 
respect to the patent or patents at issue, shall be deemed to be a 
nonprevailing party (and the other party the prevailing party) for 
purposes of this section, unless the party asserting such claim would 
have been entitled, at the time that such covenant was extended, to 
voluntarily dismiss the action or claim without a court order under 
Rule 41 of the Federal Rules of Civil Procedure.''.
            (2) Conforming amendment and amendment.--
                    (A) Conforming amendment.--The item relating to 
                section 285 of the table of sections for chapter 29 of 
                title 35, United States Code, is amended to read as 
                follows:

``285. Fees and other expenses.''.
                    (B) Amendment.--Section 273 of title 35, United 
                States Code, is amended by striking subsections (f) and 
                (g).
            (3) Effective date.--The amendments made by this subsection 
        shall take effect on the date of the enactment of this Act and 
        shall apply to any action for which a complaint is filed on or 
        after the first day of the 6-month period ending on that 
        effective date.
    (c) Joinder of Interested Parties.--Section 299 of title 35, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(d) Joinder of Interested Parties.--
            ``(1) Joinder.--In a civil action arising under any Act of 
        Congress relating to patents in which fees and other expenses 
        have been awarded under section 285 to a prevailing party 
        defending against an allegation of infringement of a patent 
        claim, and in which the nonprevailing party alleging 
        infringement is unable to pay the award of fees and other 
        expenses, the court shall grant a motion by the prevailing 
        party to join an interested party if such prevailing party 
        shows that the nonprevailing party has no substantial interest 
        in the subject matter at issue other than asserting such patent 
        claim in litigation.
            ``(2) Limitation on joinder.--
                    ``(A) Discretionary denial of motion.--The court 
                may deny a motion to join an interested party under 
                paragraph (1) if--
                            ``(i) the interested party is not subject 
                        to service of process; or
                            ``(ii) joinder under paragraph (1) would 
                        deprive the court of subject matter 
                        jurisdiction or make venue improper.
                    ``(B) Required denial of motion.--The court shall 
                deny a motion to join an interested party under 
                paragraph (1) if--
                            ``(i) the interested party did not timely 
                        receive the notice required by paragraph (3); 
                        or
                            ``(ii) within 30 days after receiving the 
                        notice required by paragraph (3), the 
                        interested party renounces, in writing and with 
                        notice to the court and the parties to the 
                        action, any ownership, right, or direct 
                        financial interest (as described in paragraph 
                        (4)) that the interested party has in the 
                        patent or patents at issue.
            ``(3) Notice requirement.--An interested party may not be 
        joined under paragraph (1) unless it has been provided actual 
        notice, within 30 days after the date on which it has been 
        identified in the initial disclosure provided under section 
        290(b), that it has been so identified and that such party may 
        therefore be an interested party subject to joinder under this 
        subsection. Such notice shall be provided by the party who 
        subsequently moves to join the interested party under paragraph 
        (1), and shall include language that--
                    ``(A) identifies the action, the parties thereto, 
                the patent or patents at issue, and the pleading or 
                other paper that identified the party under section 
                290(b); and
                    ``(B) informs the party that it may be joined in 
                the action and made subject to paying an award of fees 
                and other expenses under section 285(b) if--
                            ``(i) fees and other expenses are awarded 
                        in the action against the party alleging 
                        infringement of the patent or patents at issue 
                        under section 285(a);
                            ``(ii) the party alleging infringement is 
                        unable to pay the award of fees and other 
                        expenses;
                            ``(iii) the party receiving notice under 
                        this paragraph is determined by the court to be 
                        an interested party; and
                            ``(iv) the party receiving notice under 
                        this paragraph has not, within 30 days after 
                        receiving such notice, renounced in writing, 
                        and with notice to the court and the parties to 
                        the action, any ownership, right, or direct 
                        financial interest (as described in paragraph 
                        (4)) that the interested party has in the 
                        patent or patents at issue.
            ``(4) Interested party defined.--In this subsection, the 
        term `interested party' means a person, other than the party 
        alleging infringement, that--
                    ``(A) is an assignee of the patent or patents at 
                issue;
                    ``(B) has a right, including a contingent right, to 
                enforce or sublicense the patent or patents at issue; 
                or
                    ``(C) has a direct financial interest in the patent 
                or patents at issue, including the right to any part of 
                an award of damages or any part of licensing revenue, 
                except that a person with a direct financial interest 
                does not include--
                            ``(i) an attorney or law firm providing 
                        legal representation in the civil action 
                        described in paragraph (1) if the sole basis 
                        for the financial interest of the attorney or 
                        law firm in the patent or patents at issue 
                        arises from the attorney or law firm's receipt 
                        of compensation reasonably related to the 
                        provision of the legal representation; or
                            ``(ii) a person whose sole financial 
                        interest in the patent or patents at issue is 
                        ownership of an equity interest in the party 
                        alleging infringement, unless such person also 
                        has the right or ability to influence, direct, 
                        or control the civil action.''.
    (d) Discovery Limits.--
            (1) Amendment.--Chapter 29 of title 35, United States Code, 
        is amended by adding at the end the following new section:
``Sec. 299A. Discovery in patent infringement action
    ``(a) Discovery in Patent Infringement Action.--Except as provided 
in subsections (b) and (c), in a civil action arising under any Act of 
Congress relating to patents, if the court determines that a ruling 
relating to the construction of terms used in a patent claim asserted 
in the complaint is required, discovery shall be limited, until such 
ruling is issued, to information necessary for the court to determine 
the meaning of the terms used in the patent claim, including any 
interpretation of those terms used to support the claim of 
infringement.
    ``(b) Discretion To Expand Scope of Discovery.--
            ``(1) Timely resolution of actions.--In the case of an 
        action under any provision of Federal law (including an action 
        that includes a claim for relief arising under section 271(e)), 
        for which resolution within a specified period of time of a 
        civil action arising under any Act of Congress relating to 
        patents will necessarily affect the rights of a party with 
        respect to the patent, the court shall permit discovery, in 
        addition to the discovery authorized under subsection (a), 
        before the ruling described in subsection (a) is issued as 
        necessary to ensure timely resolution of the action.
            ``(2) Resolution of motions.--When necessary to resolve a 
        motion properly raised by a party before a ruling relating to 
        the construction of terms described in subsection (a) is 
        issued, the court may allow limited discovery in addition to 
        the discovery authorized under subsection (a) as necessary to 
        resolve the motion.
            ``(3) Special circumstances.--In special circumstances that 
        would make denial of discovery a manifest injustice, the court 
        may permit discovery, in addition to the discovery authorized 
        under subsection (a), as necessary to prevent the manifest 
        injustice.
            ``(4) Actions seeking relief based on competitive harm.--
        The limitation on discovery provided under subsection (a) shall 
        not apply to an action seeking a preliminary injunction to 
        redress harm arising from the use, sale, or offer for sale of 
        any allegedly infringing instrumentality that competes with a 
        product sold or offered for sale, or a process used in 
        manufacture, by a party alleging infringement.
    ``(c) Exclusion From Discovery Limitation.--The parties may 
voluntarily consent to be excluded, in whole or in part, from the 
limitation on discovery provided under subsection (a) if at least one 
plaintiff and one defendant enter into a signed stipulation, to be 
filed with and signed by the court. With regard to any discovery 
excluded from the requirements of subsection (a) under the signed 
stipulation, with respect to such parties, such discovery shall proceed 
according to the Federal Rules of Civil Procedure.''.
            (2) Conforming amendment.--The table of sections for 
        chapter 29 of title 35, United States Code, is amended by 
        adding at the end the following new item:

``299A. Discovery in patent infringement action.''.
    (e) Sense of Congress.--It is the sense of Congress that it is an 
abuse of the patent system and against public policy for a party to 
send out purposely evasive demand letters to end users alleging patent 
infringement. Demand letters sent should, at the least, include basic 
information about the patent in question, what is being infringed, and 
how it is being infringed. Any actions or litigation that stem from 
these types of purposely evasive demand letters to end users should be 
considered a fraudulent or deceptive practice and an exceptional 
circumstance when considering whether the litigation is abusive.
    (f) Demand Letters.--Section 284 of title 35, United States Code, 
is amended--
            (1) in the first undesignated paragraph, by striking ``Upon 
        finding'' and inserting ``(a) In General.--Upon finding'';
            (2) in the second undesignated paragraph, by striking 
        ``When the damages'' and inserting ``(b) Assessment by Court; 
        Treble Damages.--When the damages'';
            (3) by inserting after subsection (b), as designated by 
        paragraph (2) of this subsection, the following:
    ``(c) Willful Infringement.--A claimant seeking to establish 
willful infringement may not rely on evidence of pre-suit notification 
of infringement unless that notification identifies with particularity 
the asserted patent, identifies the product or process accused, 
identifies the ultimate parent entity of the claimant, and explains 
with particularity, to the extent possible following a reasonable 
investigation or inquiry, how the product or process infringes one or 
more claims of the patent.''; and
            (4) in the last undesignated paragraph, by striking ``The 
        court'' and inserting ``(d) Expert Testimony.--The court''.
    (g) Effective Date.--Except as otherwise provided in this section, 
the amendments made by this section shall take effect on the date of 
the enactment of this Act and shall apply to any action for which a 
complaint is filed on or after that date.

SEC. 3303. TRANSPARENCY OF PATENT OWNERSHIP.

    (a) Amendments.--Section 290 of title 35, United States Code, is 
amended--
            (1) in the heading, by striking ``suits'' and inserting 
        ``suits; disclosure of interests'';
            (2) by striking ``The clerks'' and inserting ``(a) Notice 
        of Patent Suits.--The clerks''; and
            (3) by adding at the end the following new subsections:
    ``(b) Initial Disclosure.--
            ``(1) In general.--Except as provided in paragraph (2), 
        upon the filing of an initial complaint for patent 
        infringement, the plaintiff shall disclose to the Patent and 
        Trademark Office, the court, and each adverse party the 
        identity of each of the following:
                    ``(A) The assignee of the patent or patents at 
                issue.
                    ``(B) Any entity with a right to sublicense or 
                enforce the patent or patents at issue.
                    ``(C) Any entity, other than the plaintiff, that 
                the plaintiff knows to have a financial interest in the 
                patent or patents at issue or the plaintiff.
                    ``(D) The ultimate parent entity of any assignee 
                identified under subparagraph (A) and any entity 
                identified under subparagraph (B) or (C).
            ``(2) Exemption.--The requirements of paragraph (1) shall 
        not apply with respect to a civil action filed under subsection 
        (a) that includes a cause of action described under section 
        271(e)(2).
    ``(c) Disclosure Compliance.--
            ``(1) Publicly traded.--For purposes of subsection 
        (b)(1)(C), if the financial interest is held by a corporation 
        traded on a public stock exchange, an identification of the 
        name of the corporation and the public exchange listing shall 
        satisfy the disclosure requirement.
            ``(2) Not publicly traded.--For purposes of subsection 
        (b)(1)(C), if the financial interest is not held by a publicly 
        traded corporation, the disclosure shall satisfy the disclosure 
        requirement if the information identifies--
                    ``(A) in the case of a partnership, the name of the 
                partnership and the name and correspondence address of 
                each partner or other entity that holds more than a 5-
                percent share of that partnership;
                    ``(B) in the case of a corporation, the name of the 
                corporation, the location of incorporation, the address 
                of the principal place of business, and the name of 
                each officer of the corporation; and
                    ``(C) for each individual, the name and 
                correspondence address of that individual.
    ``(d) Ongoing Duty of Disclosure to the Patent and Trademark 
Office.--
            ``(1) In general.--A plaintiff required to submit 
        information under subsection (b) or a subsequent owner of the 
        patent or patents at issue shall, not later than 90 days after 
        any change in the assignee of the patent or patents at issue or 
        an entity described under subparagraph (B) or (D) of subsection 
        (b)(1), submit to the Patent and Trademark Office the updated 
        identification of such assignee or entity.
            ``(2) Failure to comply.--With respect to a patent for 
        which the requirement of paragraph (1) has not been met--
                    ``(A) the plaintiff or subsequent owner shall not 
                be entitled to recover reasonable fees and other 
                expenses under section 285 or increased damages under 
                section 284 with respect to infringing activities 
                taking place during any period of noncompliance with 
                paragraph (1), unless the denial of such damages or 
                fees would be manifestly unjust; and
                    ``(B) the court shall award to a prevailing party 
                accused of infringement reasonable fees and other 
                expenses under section 285 that are incurred to 
                discover the updated assignee or entity described under 
                paragraph (1), unless such sanctions would be unjust.
    ``(e) Definitions.--In this section:
            ``(1) Financial interest.--The term `financial interest'--
                    ``(A) means--
                            ``(i) with regard to a patent or patents, 
                        the right of a person to receive proceeds 
                        related to the assertion of the patent or 
                        patents, including a fixed or variable portion 
                        of such proceeds; and
                            ``(ii) with regard to the plaintiff, direct 
                        or indirect ownership or control by a person of 
                        more than 5 percent of such plaintiff; and
                    ``(B) does not mean--
                            ``(i) ownership of shares or other 
                        interests in a mutual or common investment 
                        fund, unless the owner of such interest 
                        participates in the management of such fund; or
                            ``(ii) the proprietary interest of a 
                        policyholder in a mutual insurance company or 
                        of a depositor in a mutual savings association, 
                        or a similar proprietary interest, unless the 
                        outcome of the proceeding could substantially 
                        affect the value of such interest.
            ``(2) Proceeding.--The term `proceeding' means all stages 
        of a civil action, including pretrial and trial proceedings and 
        appellate review.
            ``(3) Ultimate parent entity.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `ultimate parent entity' has 
                the meaning given such term in section 801.1(a)(3) of 
                title 16, Code of Federal Regulations, or any successor 
                regulation.
                    ``(B) Modification of definition.--The Director may 
                modify the definition of `ultimate parent entity' by 
                regulation.''.
    (b) Technical and Conforming Amendment.--The item relating to 
section 290 in the table of sections for chapter 29 of title 35, United 
States Code, is amended to read as follows:

``290. Notice of patent suits; disclosure of interests.''.
    (c) Regulations.--The Director may promulgate such regulations as 
are necessary to establish a registration fee in an amount sufficient 
to recover the estimated costs of administering subsections (b) through 
(e) of section 290 of title 35, United States Code, as added by 
subsection (a), to facilitate the collection and maintenance of the 
information required by such subsections, and to ensure the timely 
disclosure of such information to the public.
    (d) Effective Date.--The amendments made by this section shall take 
effect upon the expiration of the 6-month period beginning on the date 
of the enactment of this Act and shall apply to any action for which a 
complaint is filed on or after such effective date.

SEC. 3304. CUSTOMER-SUIT EXCEPTION.

    (a) Amendment.--Section 296 of title 35, United States Code, is 
amended to read as follows:
``Sec. 296. Stay of action against customer
    ``(a) Stay of Action Against Customer.--Except as provided in 
subsection (d), in any civil action arising under any Act of Congress 
relating to patents, the court shall grant a motion to stay at least 
the portion of the action against a covered customer related to 
infringement of a patent involving a covered product or process if the 
following requirements are met:
            ``(1) The covered manufacturer and the covered customer 
        consent in writing to the stay.
            ``(2) The covered manufacturer is a party to the action or 
        to a separate action involving the same patent or patents 
        related to the same covered product or process.
            ``(3) The covered customer agrees to be bound by any issues 
        that the covered customer has in common with the covered 
        manufacturer and are finally decided as to the covered 
        manufacturer in an action described in paragraph (2).
            ``(4) The motion is filed after the first pleading in the 
        action but not later than the later of--
                    ``(A) the 120th day after the date on which the 
                first pleading in the action is served that 
                specifically identifies the covered product or process 
                as a basis for the covered customer's alleged 
                infringement of the patent and that specifically 
                identifies how the covered product or process is 
                alleged to infringe the patent; or
                    ``(B) the date on which the first scheduling order 
                in the case is entered.
    ``(b) Applicability of Stay.--A stay issued under subsection (a) 
shall apply only to the patents, products, systems, or components 
accused of infringement in the action.
    ``(c) Lift of Stay.--
            ``(1) In general.--A stay entered under this section may be 
        lifted upon grant of a motion based on a showing that--
                    ``(A) the action involving the covered manufacturer 
                will not resolve a major issue in suit against the 
                covered customer; or
                    ``(B) the stay unreasonably prejudices and would be 
                manifestly unjust to the party seeking to lift the 
                stay.
            ``(2) Separate manufacturer action involved.--In the case 
        of a stay entered based on the participation of the covered 
        manufacturer in a separate action involving the same patent or 
        patents related to the same covered product or process, a 
        motion under this subsection may only be made if the court in 
        such separate action determines the showing required under 
        paragraph (1) has been met.
    ``(d) Exemption.--This section shall not apply to an action that 
includes a cause of action described under section 271(e)(2).
    ``(e) Consent Judgment.--If, following the grant of a motion to 
stay under this section, the covered manufacturer seeks or consents to 
entry of a consent judgment relating to one or more of the common 
issues that gave rise to the stay, or declines to prosecute through 
appeal a final decision as to one or more of the common issues that 
gave rise to the stay, the court may, upon grant of a motion, determine 
that such consent judgment or unappealed final decision shall not be 
binding on the covered customer with respect to one or more of such 
common issues based on a showing that such an outcome would 
unreasonably prejudice and be manifestly unjust to the covered customer 
in light of the circumstances of the case.
    ``(f) Rule of Construction.--Nothing in this section shall be 
construed to limit the ability of a court to grant any stay, expand any 
stay granted under this section, or grant any motion to intervene, if 
otherwise permitted by law.
    ``(g) Definitions.--In this section:
            ``(1) Covered customer.--The term `covered customer' means 
        a party accused of infringing a patent or patents in dispute 
        based on a covered product or process.
            ``(2) Covered manufacturer.--The term `covered 
        manufacturer' means a person that manufactures or supplies, or 
        causes the manufacture or supply of, a covered product or 
        process or a relevant part thereof.
            ``(3) Covered product or process.--The term `covered 
        product or process' means a product, process, system, service, 
        component, material, or apparatus, or relevant part thereof, 
        that--
                    ``(A) is alleged to infringe the patent or patents 
                in dispute; or
                    ``(B) implements a process alleged to infringe the 
                patent or patents in dispute.''.
    (b) Conforming Amendment.--The table of sections for chapter 29 of 
title 35, United States Code, is amended by striking the item relating 
to section 296 and inserting the following:

``296. Stay of action against customer.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act and shall apply to any 
action for which a complaint is filed on or after the first day of the 
30-day period that ends on that date.

SEC. 3305. PROCEDURES AND PRACTICES TO IMPLEMENT RECOMMENDATIONS OF THE 
              JUDICIAL CONFERENCE.

    (a) Judicial Conference Rules and Procedures on Discovery Burdens 
and Costs.--
            (1) Rules and procedures.--The Judicial Conference of the 
        United States, using existing resources, shall develop rules 
        and procedures to implement the issues and proposals described 
        in paragraph (2) to address the asymmetries in discovery 
        burdens and costs in any civil action arising under any Act of 
        Congress relating to patents. Such rules and procedures shall 
        include how and when payment for document discovery in addition 
        to the discovery of core documentary evidence is to occur, and 
        what information must be presented to demonstrate financial 
        capacity before permitting document discovery in addition to 
        the discovery of core documentary evidence.
            (2) Rules and procedures to be considered.--The rules and 
        procedures required under paragraph (1) should address each of 
        the following issues and proposals:
                    (A) Discovery of core documentary evidence.--
                Whether and to what extent each party to the action is 
                entitled to receive core documentary evidence and shall 
                be responsible for the costs of producing core 
                documentary evidence within the possession or control 
                of each such party, and whether and to what extent each 
                party to the action may seek nondocumentary discovery 
                as otherwise provided in the Federal Rules of Civil 
                Procedure.
                    (B) Electronic communication.--If the parties 
                determine that the discovery of electronic 
                communication is appropriate, whether such discovery 
                shall occur after the parties have exchanged initial 
                disclosures and core documentary evidence and whether 
                such discovery shall be in accordance with the 
                following:
                            (i) Any request for the production of 
                        electronic communication shall be specific and 
                        may not be a general request for the production 
                        of information relating to a product or 
                        business.
                            (ii) Each request shall identify the 
                        custodian of the information requested, the 
                        search terms, and a timeframe. The parties 
                        shall cooperate to identify the proper 
                        custodians, the proper search terms, and the 
                        proper timeframe.
                            (iii) A party may not submit production 
                        requests to more than 5 custodians, unless the 
                        parties jointly agree to modify the number of 
                        production requests without leave of the court.
                            (iv) The court may consider contested 
                        requests for up to 5 additional custodians per 
                        producing party, upon a showing of a distinct 
                        need based on the size, complexity, and issues 
                        of the case.
                            (v) If a party requests the discovery of 
                        electronic communication for additional 
                        custodians beyond the limits agreed to by the 
                        parties or granted by the court, the requesting 
                        party shall bear all reasonable costs caused by 
                        such additional discovery.
                    (C) Additional document discovery.--Whether the 
                following should apply:
                            (i) In general.--Each party to the action 
                        may seek any additional document discovery 
                        otherwise permitted under the Federal Rules of 
                        Civil Procedure, if such party bears the 
                        reasonable costs, including reasonable 
                        attorney's fees, of the additional document 
                        discovery.
                            (ii) Requirements for additional document 
                        discovery.--Unless the parties mutually agree 
                        otherwise, no party may be permitted additional 
                        document discovery unless such a party posts a 
                        bond, or provides other security, in an amount 
                        sufficient to cover the expected costs of such 
                        additional document discovery, or makes a 
                        showing to the court that such party has the 
                        financial capacity to pay the costs of such 
                        additional document discovery.
                            (iii) Limits on additional document 
                        discovery.--A court, upon motion, may determine 
                        that a request for additional document 
                        discovery is excessive, irrelevant, or 
                        otherwise abusive and may set limits on such 
                        additional document discovery.
                            (iv) Good cause modification.--A court, 
                        upon motion and for good cause shown, may 
                        modify the requirements of subparagraphs (A) 
                        and (B) and any definition under paragraph (3). 
                        Not later than 30 days after the pretrial 
                        conference under Rule 16 of the Federal Rules 
                        of Civil Procedure, the parties shall jointly 
                        submit any proposed modifications of the 
                        requirements of subparagraphs (A) and (B) and 
                        any definition under paragraph (3), unless the 
                        parties do not agree, in which case each party 
                        shall submit any proposed modification of such 
                        party and a summary of the disagreement over 
                        the modification.
                            (v) Computer code.--A court, upon motion 
                        and for good cause shown, may determine that 
                        computer code should be included in the 
                        discovery of core documentary evidence. The 
                        discovery of computer code shall occur after 
                        the parties have exchanged initial disclosures 
                        and other core documentary evidence.
                    (D) Discovery sequence and scope.--Whether the 
                parties shall discuss and address in the written report 
                filed pursuant to Rule 26(f) of the Federal Rules of 
                Civil Procedure the views and proposals of each party 
                on the following:
                            (i) When the discovery of core documentary 
                        evidence should be completed.
                            (ii) Whether additional document discovery 
                        will be sought under subparagraph (C).
                            (iii) Any issues about infringement, 
                        invalidity, or damages that, if resolved before 
                        the additional discovery described in 
                        subparagraph (C) commences, might simplify or 
                        streamline the case, including the 
                        identification of any terms or phrases relating 
                        to any patent claim at issue to be construed by 
                        the court and whether the early construction of 
                        any of those terms or phrases would be helpful.
            (3) Definitions.--In this subsection:
                    (A) Core documentary evidence.--The term ``core 
                documentary evidence''--
                            (i) includes--
                                    (I) documents relating to the 
                                conception of, reduction to practice 
                                of, and application for, the patent or 
                                patents at issue;
                                    (II) documents sufficient to show 
                                the technical operation of the product 
                                or process identified in the complaint 
                                as infringing the patent or patents at 
                                issue;
                                    (III) documents relating to 
                                potentially invalidating prior art;
                                    (IV) documents relating to any 
                                licensing of, or other transfer of 
                                rights to, the patent or patents at 
                                issue before the date on which the 
                                complaint is filed;
                                    (V) documents sufficient to show 
                                profit attributable to the claimed 
                                invention of the patent or patents at 
                                issue;
                                    (VI) documents relating to any 
                                knowledge by the accused infringer of 
                                the patent or patents at issue before 
                                the date on which the complaint is 
                                filed;
                                    (VII) documents relating to any 
                                knowledge by the patentee of 
                                infringement of the patent or patents 
                                at issue before the date on which the 
                                complaint is filed;
                                    (VIII) documents relating to any 
                                licensing term or pricing commitment to 
                                which the patent or patents may be 
                                subject through any agency or standard-
                                setting body; and
                                    (IX) documents sufficient to show 
                                any marking or other notice provided of 
                                the patent or patents at issue; and
                            (ii) does not include computer code, except 
                        as specified in paragraph (2)(C)(v).
                    (B) Electronic communication.--The term 
                ``electronic communication'' means any form of 
                electronic communication, including email, text 
                message, or instant message.
            (4) Implementation by the district courts.--Not later than 
        6 months after the date on which the Judicial Conference has 
        developed the rules and procedures required by this subsection, 
        each United States district court and the United States Court 
        of Federal Claims shall revise the applicable local rules for 
        such court to implement such rules and procedures.
            (5) Authority for judicial conference to review and 
        modify.--
                    (A) Study of efficacy of rules and procedures.--The 
                Judicial Conference shall study the efficacy of the 
                rules and procedures required by this subsection during 
                the 4-year period beginning on the date on which such 
                rules and procedures by the district courts and the 
                United States Court of Federal Claims are first 
                implemented. The Judicial Conference may modify such 
                rules and procedures following such 4-year period.
                    (B) Initial modifications.--Before the expiration 
                of the 4-year period described in subparagraph (A), the 
                Judicial Conference may modify the requirements under 
                this subsection--
                            (i) by designating categories of ``core 
                        documentary evidence'', in addition to those 
                        designated under paragraph (3)(A), as the 
                        Judicial Conference determines to be 
                        appropriate and necessary; and
                            (ii) as otherwise necessary to prevent a 
                        manifest injustice, the imposition of a 
                        requirement the costs of which clearly outweigh 
                        its benefits, or a result that could not 
                        reasonably have been intended by the Congress.
    (b) Judicial Conference Patent Case Management.--The Judicial 
Conference of the United States, using existing resources, shall 
develop case management procedures to be implemented by the United 
States district courts and the United States Court of Federal Claims 
for any civil action arising under any Act of Congress relating to 
patents, including initial disclosure and early case management 
conference practices that--
            (1) will identify any potential dispositive issues of the 
        case; and
            (2) focus on early summary judgment motions when resolution 
        of issues may lead to expedited disposition of the case.
    (c) Revision of Form for Patent Infringement.--
            (1) Elimination of form.--The Supreme Court, using existing 
        resources, shall eliminate Form 18 in the Appendix to the 
        Federal Rules of Civil Procedure (relating to Complaint for 
        Patent Infringement), effective on the date of the enactment of 
        this Act.
            (2) Revised form.--The Supreme Court may prescribe a new 
        form or forms setting out model allegations of patent 
        infringement that, at a minimum, notify accused infringers of 
        the asserted claim or claims, the products or services accused 
        of infringement, and the plaintiff's theory for how each 
        accused product or service meets each limitation of each 
        asserted claim. The Judicial Conference should exercise the 
        authority under section 2073 of title 28, United States Code, 
        to make recommendations with respect to such new form or forms.
    (d) Protection of Intellectual-Property Licenses in Bankruptcy.--
            (1) In general.--Section 1522 of title 11, United States 
        Code, is amended by adding at the end the following:
    ``(e) Section 365(n) shall apply to cases under this chapter. If 
the foreign representative rejects or repudiates a contract under which 
the debtor is a licensor of intellectual property, the licensee under 
such contract shall be entitled to make the election and exercise the 
rights described in section 365(n).''.
            (2) Trademarks.--
                    (A) In general.--Section 101(35A) of title 11, 
                United States Code, is amended--
                            (i) in subparagraph (E), by striking 
                        ``or'';
                            (ii) in subparagraph (F), by striking 
                        ``title 17;'' and inserting ``title 17; or''; 
                        and
                            (iii) by adding after subparagraph (F) the 
                        following new subparagraph:
                    ``(G) a trademark, service mark, or trade name, as 
                those terms are defined in section 45 of the Act of 
                July 5, 1946 (commonly referred to as the `Trademark 
                Act of 1946') (15 U.S.C. 1127);''.
                    (B) Conforming amendment.--Section 365(n)(2) of 
                title 11, United States Code, is amended--
                            (i) in subparagraph (B)--
                                    (I) by striking ``royalty 
                                payments'' and inserting ``royalty or 
                                other payments''; and
                                    (II) by striking ``and'' after the 
                                semicolon;
                            (ii) in subparagraph (C), by striking the 
                        period at the end of clause (ii) and inserting 
                        ``; and''; and
                            (iii) by adding at the end the following 
                        new subparagraph:
            ``(D) in the case of a trademark, service mark, or trade 
        name, the trustee shall not be relieved of a contractual 
        obligation to monitor and control the quality of a licensed 
        product or service.''.
            (3) Effective date.--The amendments made by this subsection 
        shall take effect on the date of the enactment of this Act and 
        shall apply to any case that is pending on, or for which a 
        petition or complaint is filed on or after, such date of 
        enactment.

SEC. 3306. SMALL BUSINESS EDUCATION, OUTREACH, AND INFORMATION ACCESS.

    (a) Small Business Education and Outreach.--
            (1) Resources for small business.--Using existing 
        resources, the Director shall develop educational resources for 
        small businesses to address concerns arising from patent 
        infringement.
            (2) Small business patent outreach.--The existing small 
        business patent outreach programs of the Office, and the 
        relevant offices at the Small Business Administration and the 
        Minority Business Development Agency, shall provide education 
        and awareness on abusive patent litigation practices. The 
        Director may give special consideration to the unique needs of 
        small firms owned by disabled veterans, service-disabled 
        veterans, women, and minority entrepreneurs in planning and 
        executing the outreach efforts by the Office.
    (b) Improving Information Transparency for Small Business and the 
United States Patent and Trademark Office Users.--
            (1) Web site.--Using existing resources, the Director shall 
        create a user-friendly section on the official Web site of the 
        Office to notify the public when a patent case is brought in 
        Federal court and, with respect to each patent at issue in such 
        case, the Director shall include--
                    (A) information disclosed under subsections (b) and 
                (d) of section 290 of title 35, United States Code, as 
                added by section 3303 of this subtitle; and
                    (B) any other information the Director determines 
                to be relevant.
            (2) Format.--In order to promote accessibility for the 
        public, the information described in paragraph (1) shall be 
        searchable by patent number, patent art area, and entity.

SEC. 3307. STUDIES ON PATENT TRANSACTIONS, QUALITY, AND EXAMINATION.

    (a) Study on Secondary Market Oversight for Patent Transactions To 
Promote Transparency and Ethical Business Practices.--
            (1) Study required.--The Director, in consultation with the 
        Secretary of Commerce, the Secretary of the Treasury, the 
        Chairman of the Securities and Exchange Commission, the heads 
        of other relevant agencies, and interested parties, shall, 
        using existing resources of the Office, conduct a study--
                    (A) to develop legislative recommendations to 
                ensure greater transparency and accountability in 
                patent transactions occurring on the secondary market;
                    (B) to examine the economic impact that the patent 
                secondary market has on the United States;
                    (C) to examine licensing and other oversight 
                requirements that may be placed on the patent secondary 
                market, including on the participants in such markets, 
                to ensure that the market is a level playing field and 
                that brokers in the market have the requisite expertise 
                and adhere to ethical business practices; and
                    (D) to examine the requirements placed on other 
                markets.
            (2) Report on study.--Not later than 18 months after the 
        date of the enactment of this Act, the Director shall submit a 
        report to the Committee on the Judiciary of the House of 
        Representatives and the Committee on the Judiciary of the 
        Senate on the findings and recommendations of the Director from 
        the study required under paragraph (1).
    (b) Study on Patents Owned by the United States Government.--
            (1) Study required.--The Director, in consultation with the 
        heads of relevant agencies and interested parties, shall, using 
        existing resources of the Office, conduct a study on patents 
        owned by the United States Government that--
                    (A) examines how such patents are licensed and 
                sold, and any litigation relating to the licensing or 
                sale of such patents;
                    (B) provides legislative and administrative 
                recommendations on whether there should be restrictions 
                placed on patents acquired from the United States 
                Government;
                    (C) examines whether or not each relevant agency 
                maintains adequate records on the patents owned by such 
                agency, specifically whether such agency addresses 
                licensing, assignment, and Government grants for 
                technology related to such patents; and
                    (D) provides recommendations to ensure that each 
                relevant agency has an adequate point of contact that 
                is responsible for managing the patent portfolio of the 
                agency.
            (2) Report on study.--Not later than 1 year after the date 
        of the enactment of this Act, the Director shall submit to the 
        Committee on the Judiciary of the House of Representatives and 
        the Committee on the Judiciary of the Senate a report on the 
        findings and recommendations of the Director from the study 
        required under paragraph (1).
    (c) Study on Patent Quality and Access to the Best Information 
During Examination.--
            (1) GAO study.--The Comptroller General of the United 
        States shall, using existing resources, conduct a study on 
        patent examination at the Office and the technologies available 
        to improve examination and improve patent quality.
            (2) Contents of the study.--The study required under 
        paragraph (1) shall include the following:
                    (A) An examination of patent quality at the Office.
                    (B) An examination of ways to improve patent 
                quality, specifically through technology, that shall 
                include examining best practices at foreign patent 
                offices and the use of existing off-the-shelf 
                technologies to improve patent examination.
                    (C) A description of how patents are classified.
                    (D) An examination of procedures in place to 
                prevent double patenting through filing by applicants 
                in multiple art areas.
                    (E) An examination of the types of off-the-shelf 
                prior art databases and search software used by foreign 
                patent offices and governments, particularly in Europe 
                and Asia, and whether those databases and search tools 
                could be used by the Office to improve patent 
                examination.
                    (F) An examination of any other areas the 
                Comptroller General determines to be relevant.
            (3) Report on study.--Not later than 1 year after the date 
        of the enactment of this Act, the Comptroller General shall 
        submit to the Committee on the Judiciary of the House of 
        Representatives and the Committee on the Judiciary of the 
        Senate a report on the findings and recommendations from the 
        study required by this subsection, including recommendations 
        for any changes to laws and regulations that will improve the 
        examination of patent applications and patent quality.
    (d) Study on Patent Small Claims Court.--
            (1) Study required.--
                    (A) In general.--The Director of the Administrative 
                Office of the United States Courts, in consultation 
                with the Director of the Federal Judicial Center and 
                the United States Patent and Trademark Office, shall, 
                using existing resources, conduct a study to examine 
                the idea of developing a pilot program for patent small 
                claims procedures in certain judicial districts within 
                the existing patent pilot program mandated by Public 
                Law 111-349.
                    (B) Contents of study.--The study under 
                subparagraph (A) shall examine--
                            (i) the necessary criteria for using small 
                        claims procedures;
                            (ii) the costs that would be incurred for 
                        establishing, maintaining, and operating such a 
                        pilot program; and
                            (iii) the steps that would be taken to 
                        ensure that the procedures used in the pilot 
                        program are not misused for abusive patent 
                        litigation.
            (2) Report on study.--Not later than 1 year after the date 
        of the enactment of this Act, the Director of the 
        Administrative Office of the United States Courts shall submit 
        a report to the Committee on the Judiciary of the House of 
        Representatives and the Committee on the Judiciary of the 
        Senate on the findings and recommendations of the Director of 
        the Administrative Office from the study required under 
        paragraph (1).
    (e) Study on Demand Letters.--
            (1) Study.--The Director, in consultation with the heads of 
        other appropriate agencies, shall, using existing resources, 
        conduct a study of the prevalence of the practice of sending 
        patent demand letters in bad faith and the extent to which that 
        practice may, through fraudulent or deceptive practices, impose 
        a negative impact on the marketplace.
            (2) Report to congress.--Not later than 1 year after the 
        date of the enactment of this Act, the Director shall submit a 
        report to the Committee on the Judiciary of the House of 
        Representatives and the Committee on the Judiciary of the 
        Senate on the findings and recommendations of the Director from 
        the study required under paragraph (1).
            (3) Patent demand letter defined.--In this subsection, the 
        term ``patent demand letter'' means a written communication 
        relating to a patent that states or indicates, directly or 
        indirectly, that the recipient or anyone affiliated with the 
        recipient is or may be infringing the patent.
    (f) Study on Business Method Patent Quality.--
            (1) GAO study.--The Comptroller General of the United 
        States shall, using existing resources, conduct a study on the 
        volume and nature of litigation involving business method 
        patents.
            (2) Contents of study.--The study required under paragraph 
        (1) shall focus on examining the quality of business method 
        patents asserted in suits alleging patent infringement, and may 
        include an examination of any other areas that the Comptroller 
        General determines to be relevant.
            (3) Report to congress.--Not later than 1 year after the 
        date of the enactment of this Act, the Comptroller General 
        shall submit to the Committee on the Judiciary of the House of 
        Representatives and the Committee on the Judiciary of the 
        Senate a report on the findings and recommendations from the 
        study required by this subsection, including recommendations 
        for any changes to laws or regulations that the Comptroller 
        General considers appropriate on the basis of the study.
    (g) Study on Impact of Legislation on Ability of Individuals and 
Small Businesses To Protect Exclusive Rights to Inventions and 
Discoveries.--
            (1) Study required.--The Director, in consultation with the 
        Secretary of Commerce, the Director of the Administrative 
        Office of the United States Courts, the Director of the Federal 
        Judicial Center, the heads of other relevant agencies, and 
        interested parties, shall, using existing resources of the 
        Office, conduct a study to examine the economic impact of 
        sections 3, 4, and 5 of this Act, and any amendments made by 
        such sections, on the ability of individuals and small 
        businesses owned by women, veterans, and minorities to assert, 
        secure, and vindicate the constitutionally guaranteed exclusive 
        right to inventions and discoveries by such individuals and 
        small business.
            (2) Report on study.--Not later than 2 years after the date 
        of the enactment of this Act, the Director shall submit to the 
        Committee on the Judiciary of the House of Representatives and 
        the Committee on the Judiciary of the Senate a report on the 
        findings and recommendations of the Director from the study 
        required under paragraph (1).

SEC. 3308. IMPROVEMENTS AND TECHNICAL CORRECTIONS TO THE LEAHY-SMITH 
              AMERICA INVENTS ACT.

    (a) Post-Grant Review Amendment.--Section 325(e)(2) of title 35, 
United States Code is amended by striking ``or reasonably could have 
raised''.
    (b) Use of District Court Claim Construction in Post-Grant and 
Inter Partes Reviews.--
            (1) Inter partes review.--Section 316(a) of title 35, 
        United States Code, is amended--
                    (A) in paragraph (12), by striking ``; and'' and 
                inserting a semicolon;
                    (B) in paragraph (13), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(14) providing that for all purposes under this chapter--
                    ``(A) each claim of a patent shall be construed as 
                such claim would be in a civil action to invalidate a 
                patent under section 282(b), including construing each 
                claim of the patent in accordance with the ordinary and 
                customary meaning of such claim as understood by one of 
                ordinary skill in the art and the prosecution history 
                pertaining to the patent; and
                    ``(B) if a court has previously construed the claim 
                or a claim term in a civil action in which the patent 
                owner was a party, the Office shall consider such claim 
                construction.''.
            (2) Post-grant review.--Section 326(a) of title 35, United 
        States Code, is amended--
                    (A) in paragraph (11), by striking ``; and'' and 
                inserting a semicolon;
                    (B) in paragraph (12), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(13) providing that for all purposes under this chapter--
                    ``(A) each claim of a patent shall be construed as 
                such claim would be in a civil action to invalidate a 
                patent under section 282(b), including construing each 
                claim of the patent in accordance with the ordinary and 
                customary meaning of such claim as understood by one of 
                ordinary skill in the art and the prosecution history 
                pertaining to the patent; and
                    ``(B) if a court has previously construed the claim 
                or a claim term in a civil action in which the patent 
                owner was a party, the Office shall consider such claim 
                construction.''.
            (3) Technical and conforming amendment.--Section 
        18(a)(1)(A) of the Leahy-Smith America Invents Act (Public Law 
        112-29; 126 Stat. 329; 35 U.S.C. 321 note) is amended by 
        striking ``Section 321(c)'' and inserting ``Sections 321(c) and 
        326(a)(13)''.
            (4) Effective date.--The amendments made by this subsection 
        shall take effect upon the expiration of the 90-day period 
        beginning on the date of the enactment of this Act, and shall 
        apply to any proceeding under chapter 31 or 32 of title 35, 
        United States Code, as the case may be, for which the petition 
        for review is filed on or after such effective date.
    (c) Codification of the Double-Patenting Doctrine for First-
Inventor-To-File Patents.--
            (1) Amendment.--Chapter 10 of title 35, United States Code, 
        is amended by adding at the end the following new section:
``Sec. 106. Prior art in cases of double patenting
    ``A claimed invention of a patent issued under section 151 
(referred to as the `first patent') that is not prior art to a claimed 
invention of another patent (referred to as the `second patent') shall 
be considered prior art to the claimed invention of the second patent 
for the purpose of determining the nonobviousness of the claimed 
invention of the second patent under section 103 if--
            ``(1) the claimed invention of the first patent was 
        effectively filed under section 102(d) on or before the 
        effective filing date of the claimed invention of the second 
        patent;
            ``(2) either--
                    ``(A) the first patent and second patent name the 
                same individual or individuals as the inventor; or
                    ``(B) the claimed invention of the first patent 
                would constitute prior art to the claimed invention of 
                the second patent under section 102(a)(2) if an 
                exception under section 102(b)(2) were deemed to be 
                inapplicable and the claimed invention of the first 
                patent was, or were deemed to be, effectively filed 
                under section 102(d) before the effective filing date 
                of the claimed invention of the second patent; and
            ``(3) the patentee of the second patent has not disclaimed 
        the rights to enforce the second patent independently from, and 
        beyond the statutory term of, the first patent.''.
            (2) Regulations.--The Director shall promulgate regulations 
        setting forth the form and content of any disclaimer required 
        for a patent to be issued in compliance with section 106 of 
        title 35, United States Code, as added by paragraph (1). Such 
        regulations shall apply to any disclaimer filed after a patent 
        has issued. A disclaimer, when filed, shall be considered for 
        the purpose of determining the validity of the patent under 
        section 106 of title 35, United States Code.
            (3) Conforming amendment.--The table of sections for 
        chapter 10 of title 35, United States Code, is amended by 
        adding at the end the following new item:

``106. Prior art in cases of double patenting.''.
            (4) Exclusive rule.--A patent subject to section 106 of 
        title 35, United States Code, as added by paragraph (1), shall 
        not be held invalid on any nonstatutory, double-patenting 
        ground based on a patent described in section 3(n)(1) of the 
        Leahy-Smith America Invents Act (35 U.S.C. 100 note).
            (5) Effective date.--The amendments made by this subsection 
        shall take effect upon the expiration of the 1-year period 
        beginning on the date of the enactment of this Act and shall 
        apply to a patent or patent application only if both the first 
        and second patents described in section 106 of title 35, United 
        States Code, as added by paragraph (1), are patents or patent 
        applications that are described in section 3(n)(1) of the 
        Leahy-Smith America Invents Act (35 U.S.C. 100 note).
    (d) PTO Patent Reviews.--
            (1) Clarification.--
                    (A) Scope of prior art.--Section 18(a)(1)(C)(i) of 
                the Leahy-Smith America Invents Act (35 U.S.C. 321 
                note) is amended by striking ``section 102(a)'' and 
                inserting ``subsection (a) or (e) of section 102''.
                    (B) Effective date.--The amendment made by 
                subparagraph (A) shall take effect on the date of the 
                enactment of this Act and shall apply to any proceeding 
                pending on, or filed on or after, such date of 
                enactment.
            (2) Authority to waive fee.--Subject to available 
        resources, the Director may waive payment of a filing fee for a 
        transitional proceeding described under section 18(a) of the 
        Leahy-Smith America Invents Act (35 U.S.C. 321 note).
    (e) Clarification of Limits on Patent Term Adjustment.--
            (1) Amendments.--Section 154(b)(1)(B) of title 35, United 
        States Code, is amended--
                    (A) in the matter preceding clause (i), by striking 
                ``not including--'' and inserting ``the term of the 
                patent shall be extended 1 day for each day after the 
                end of that 3-year period until the patent is issued, 
                not including--'';
                    (B) in clause (i), by striking ``consumed by 
                continued examination of the application requested by 
                the applicant'' and inserting ``consumed after 
                continued examination of the application is requested 
                by the applicant'';
                    (C) in clause (iii), by striking the comma at the 
                end and inserting a period; and
                    (D) by striking the matter following clause (iii).
            (2) Effective date.--The amendments made by this subsection 
        shall take effect on the date of the enactment of this Act and 
        apply to any patent application that is pending on, or filed on 
        or after, such date of enactment.
    (f) Clarification of Jurisdiction.--
            (1) In general.--The Federal interest in preventing 
        inconsistent final judicial determinations as to the legal 
        force or effect of the claims in a patent presents a 
        substantial Federal issue that is important to the Federal 
        system as a whole.
            (2) Applicability.--Paragraph (1)--
                    (A) shall apply to all cases filed on or after, or 
                pending on, the date of the enactment of this Act; and
                    (B) shall not apply to a case in which a Federal 
                court has issued a ruling on whether the case or a 
                claim arises under any Act of Congress relating to 
                patents or plant variety protection before the date of 
                the enactment of this Act.
    (g) Patent Pilot Program in Certain District Courts Duration.--
            (1) Duration.--Section 1(c) of Public Law 111-349 (124 
        Stat. 3674; 28 U.S.C. 137 note) is amended to read as follows:
    ``(c) Duration.--The program established under subsection (a) shall 
be maintained using existing resources, and shall terminate 20 years 
after the end of the 6-month period described in subsection (b).''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on the date of the enactment of this Act.
    (h) Technical Corrections.--
            (1) Novelty.--
                    (A) Amendment.--Section 102(b)(1)(A) of title 35, 
                United States Code, is amended by striking ``the 
                inventor or joint inventor or by another'' and 
                inserting ``the inventor or a joint inventor or 
                another''.
                    (B) Effective date.--The amendment made by 
                subparagraph (A) shall be effective as if included in 
                the amendment made by section 3(b)(1) of the Leahy-
                Smith America Invents Act (Public Law 112-29).
            (2) Inventor's oath or declaration.--
                    (A) Amendment.--The second sentence of section 
                115(a) of title 35, United States Code, is amended by 
                striking ``shall execute'' and inserting ``may be 
                required to execute''.
                    (B) Effective date.--The amendment made by 
                subparagraph (A) shall be effective as if included in 
                the amendment made by section 4(a)(1) of the Leahy-
                Smith America Invents Act (Public Law 112-29).
            (3) Assignee filers.--
                    (A) Benefit of earlier filing date; right of 
                priority.--Section 119(e)(1) of title 35, United States 
                Code, is amended, in the first sentence, by striking 
                ``by an inventor or inventors named'' and inserting 
                ``that names the inventor or a joint inventor''.
                    (B) Benefit of earlier filing date in the united 
                states.--Section 120 of title 35, United States Code, 
                is amended, in the first sentence, by striking ``names 
                an inventor or joint inventor'' and inserting ``names 
                the inventor or a joint inventor''.
                    (C) Effective date.--The amendments made by this 
                paragraph shall take effect on the date of the 
                enactment of this Act and shall apply to any patent 
                application, and any patent issuing from such 
                application, that is filed on or after September 16, 
                2012.
            (4) Derived patents.--
                    (A) Amendment.--Section 291(b) of title 35, United 
                States Code, is amended by striking ``or joint 
                inventor'' and inserting ``or a joint inventor''.
                    (B) Effective date.--The amendment made by 
                subparagraph (A) shall be effective as if included in 
                the amendment made by section 3(h)(1) of the Leahy-
                Smith America Invents Act (Public Law 112-29).
            (5) Specification.--Notwithstanding section 4(e) of the 
        Leahy-Smith America Invents Act (Public Law 112-29; 125 Stat. 
        297), the amendments made by subsections (c) and (d) of section 
        4 of such Act shall apply to any proceeding or matter that is 
        pending on, or filed on or after, the date of the enactment of 
        this Act.
            (6) Time limit for commencing misconduct proceedings.--
                    (A) Amendment.--The fourth sentence of section 32 
                of title 35, United States Code, is amended by striking 
                ``1 year'' and inserting ``18 months''.
                    (B) Effective date.--The amendment made by this 
                paragraph shall take effect on the date of the 
                enactment of this Act and shall apply to any action in 
                which the Office files a complaint on or after such 
                date of enactment.
            (7) Patent owner response.--
                    (A) Conduct of inter partes review.--Paragraph (8) 
                of section 316(a) of title 35, United States Code, is 
                amended by striking ``the petition under section 313'' 
                and inserting ``the petition under section 311''.
                    (B) Conduct of post-grant review.--Paragraph (8) of 
                section 326(a) of title 35, United States Code, is 
                amended by striking ``the petition under section 323'' 
                and inserting ``the petition under section 321''.
                    (C) Effective date.--The amendments made by this 
                paragraph shall take effect on the date of the 
                enactment of this Act.
            (8) International applications.--
                    (A) Amendments.--Section 202(b) of the Patent Law 
                Treaties Implementation Act of 2012 (Public Law 112-
                211; 126 Stat. 1536) is amended--
                            (i) by striking paragraph (7); and
                            (ii) by redesignating paragraphs (8) and 
                        (9) as paragraphs (7) and (8), respectively.
                    (B) Effective date.--The amendments made by 
                subparagraph (A) shall be effective as if included in 
                title II of the Patent Law Treaties Implementation Act 
                of 2012 (Public Law 112-21).

SEC. 3309. EFFECTIVE DATE.

    Except as otherwise provided in this subtitle, the provisions of 
this subtitle shall take effect on the date of the enactment of this 
Act, and shall apply to any patent issued, or any action filed, on or 
after that date.

   Subtitle D--Resolving Environmental and Grid Reliability Conflicts

SEC. 3401. AMENDMENTS TO THE FEDERAL POWER ACT.

    (a) Compliance With or Violation of Environmental Laws While Under 
Emergency Order.--Section 202(c) of the Federal Power Act (16 U.S.C. 
824a(c)) is amended--
            (1) by inserting ``(1)'' after ``(c)''; and
            (2) by adding at the end the following:
    ``(2) With respect to an order issued under this subsection that 
may result in a conflict with a requirement of any Federal, State, or 
local environmental law or regulation, the Commission shall ensure that 
such order requires generation, delivery, interchange, or transmission 
of electric energy only during hours necessary to meet the emergency 
and serve the public interest, and, to the maximum extent practicable, 
is consistent with any applicable Federal, State, or local 
environmental law or regulation and minimizes any adverse environmental 
impacts.
    ``(3) To the extent any omission or action taken by a party, that 
is necessary to comply with an order issued under this subsection, 
including any omission or action taken to voluntarily comply with such 
order, results in noncompliance with, or causes such party to not 
comply with, any Federal, State, or local environmental law or 
regulation, such omission or action shall not be considered a violation 
of such environmental law or regulation, or subject such party to any 
requirement, civil or criminal liability, or a citizen suit under such 
environmental law or regulation.
    ``(4)(A) An order issued under this subsection that may result in a 
conflict with a requirement of any Federal, State, or local 
environmental law or regulation shall expire not later than 90 days 
after it is issued. The Commission may renew or reissue such order 
pursuant to paragraphs (1) and (2) for subsequent periods, not to 
exceed 90 days for each period, as the Commission determines necessary 
to meet the emergency and serve the public interest.
    ``(B) In renewing or reissuing an order under subparagraph (A), the 
Commission shall consult with the primary Federal agency with expertise 
in the environmental interest protected by such law or regulation, and 
shall include in any such renewed or reissued order such conditions as 
such Federal agency determines necessary to minimize any adverse 
environmental impacts to the maximum extent practicable. The 
conditions, if any, submitted by such Federal agency shall be made 
available to the public. The Commission may exclude such a condition 
from the renewed or reissued order if it determines that such condition 
would prevent the order from adequately addressing the emergency 
necessitating such order and provides in the order, or otherwise makes 
publicly available, an explanation of such determination.''.
    (b) Temporary Connection or Construction by Municipalities.--
Section 202(d) of the Federal Power Act (16 U.S.C. 824a(d)) is amended 
by inserting ``or municipality'' before ``engaged in the transmission 
or sale of electric energy''.

   TITLE IV--PRESERVING ACCESS TO ABUNDANT AND AFFORDABLE SOURCES OF 
                                 ENERGY

                  Subtitle A--Northern Route Approval

SEC. 4101. FINDINGS.

    The Congress finds the following:
            (1) To maintain our Nation's competitive edge and ensure an 
        economy built to last, the United States must have fast, 
        reliable, resilient, and environmentally sound means of moving 
        energy. In a global economy, we will compete for the world's 
        investments based in significant part on the quality of our 
        infrastructure. Investing in the Nation's infrastructure 
        provides immediate and long-term economic benefits for local 
        communities and the Nation as a whole.
            (2) The delivery of oil from Canada, a close ally not only 
        in proximity but in shared values and ideals, to domestic 
        markets is in the national interest because of the need to 
        lessen dependence upon insecure foreign sources.
            (3) The Keystone XL pipeline would provide both short-term 
        and long-term employment opportunities and related labor income 
        benefits, such as government revenues associated with taxes.
            (4) The State of Nebraska has thoroughly reviewed and 
        approved the proposed Keystone XL pipeline reroute, concluding 
        that the concerns of Nebraskans have had a major influence on 
        the pipeline reroute and that the reroute will have minimal 
        environmental impacts.
            (5) The Department of State and other Federal agencies have 
        over a long period of time conducted extensive studies and 
        analysis of the technical aspects and of the environmental, 
        social, and economic impacts of the proposed Keystone XL 
        pipeline, and--
                    (A) the Department of State assessments found that 
                the Keystone XL pipeline ``is not likely to impact the 
                amount of crude oil produced from the oil sands'' and 
                that ``approval or denial of the proposed project is 
                unlikely to have a substantial impact on the rate of 
                development in the oil sands'';
                    (B) the Department of State found that incremental 
                life-cycle greenhouse gas emissions associated with the 
                Keystone XL project are estimated in the range of 0.07 
                to 0.83 million metric tons of carbon dioxide 
                equivalents, with the upper end of this range 
                representing twelve one-thousandths of one percent of 
                the 6,702 million metric tons of carbon dioxide emitted 
                in the United States in 2011; and
                    (C) after extensive evaluation of potential impacts 
                to land and water resources along the Keystone XL 
                pipeline's 875 mile proposed route, the Department of 
                State found that ``The analyses of potential impacts 
                associated with construction and normal operation of 
                the proposed Project suggest that there would be no 
                significant impacts to most resources along the 
                proposed Project route (assuming Keystone complies with 
                all laws and required conditions and measures).''.
            (6) The transportation of oil via pipeline is the safest 
        and most economically and environmentally effective means of 
        doing so, and--
                    (A) transportation of oil via pipeline has a record 
                of unmatched safety and environmental protection, and 
                the Department of State found that ``Spills associated 
                with the proposed Project that enter the environment 
                expected to be rare and relatively small'', and that 
                ``there is no evidence of increased corrosion or other 
                pipeline threat due to viscosity'' of diluted bitumen 
                oil that will be transported by the Keystone XL 
                pipeline; and
                    (B) plans to incorporate 57 project-specific 
                special conditions related to the design, construction, 
                and operations of the Keystone XL pipeline led the 
                Department of State to find that the pipeline will have 
                ``a degree of safety over any other typically 
                constructed domestic oil pipeline''.
            (7) The Keystone XL is in much the same position today as 
        the Alaska Pipeline in 1973 prior to congressional action. Once 
        again, the Federal regulatory process remains an insurmountable 
        obstacle to a project that is likely to reduce oil imports from 
        insecure foreign sources.

SEC. 4102. KEYSTONE XL PERMIT APPROVAL.

    Notwithstanding Executive Order No. 13337 (3 U.S.C. 301 note), 
Executive Order No. 11423 (3 U.S.C. 301 note), section 301 of title 3, 
United States Code, and any other Executive order or provision of law, 
no Presidential permit shall be required for the pipeline described in 
the application filed on May 4, 2012, by TransCanada Keystone Pipeline, 
L.P. to the Department of State for the Keystone XL pipeline, as 
supplemented to include the Nebraska reroute evaluated in the Final 
Evaluation Report issued by the Nebraska Department of Environmental 
Quality in January 2013 and approved by the Nebraska governor. The 
final environmental impact statement issued by the Secretary of State 
on August 26, 2011, coupled with the Final Evaluation Report described 
in the previous sentence, shall be considered to satisfy all 
requirements of the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.) and of the National Historic Preservation Act (16 
U.S.C. 470 et seq.).

SEC. 4103. JUDICIAL REVIEW.

    (a) Exclusive Jurisdiction.--Except for review by the Supreme Court 
on writ of certiorari, the United States Court of Appeals for the 
District of Columbia Circuit shall have original and exclusive 
jurisdiction to determine--
            (1) the validity of any final order or action (including a 
        failure to act) of any Federal agency or officer with respect 
        to issuance of a permit relating to the construction or 
        maintenance of the Keystone XL pipeline, including any final 
        order or action deemed to be taken, made, granted, or issued;
            (2) the constitutionality of any provision of this 
        subtitle, or any decision or action taken, made, granted, or 
        issued, or deemed to be taken, made, granted, or issued under 
        this subtitle; or
            (3) the adequacy of any environmental impact statement 
        prepared under the National Environmental Policy Act of 1969 
        (42 U.S.C. 4321 et seq.), or of any analysis under any other 
        Act, with respect to any action taken, made, granted, or 
        issued, or deemed to be taken, made, granted, or issued under 
        this subtitle.
    (b) Deadline for Filing Claim.--A claim arising under this subtitle 
may be brought not later than 60 days after the date of the decision or 
action giving rise to the claim.
    (c) Expedited Consideration.--The United States Court of Appeals 
for the District of Columbia Circuit shall set any action brought under 
subsection (a) for expedited consideration, taking into account the 
national interest of enhancing national energy security by providing 
access to the significant oil reserves in Canada that are needed to 
meet the demand for oil.

SEC. 4104. AMERICAN BURYING BEETLE.

    (a) Findings.--The Congress finds that--
            (1) environmental reviews performed for the Keystone XL 
        pipeline project satisfy the requirements of section 7 of the 
        Endangered Species Act of 1973 (16 U.S.C. 1536(a)(2)) in its 
        entirety; and
            (2) for purposes of that Act, the Keystone XL pipeline 
        project will not jeopardize the continued existence of the 
        American burying beetle or destroy or adversely modify American 
        burying beetle critical habitat.
    (b) Biological Opinion.--The Secretary of the Interior is deemed to 
have issued a written statement setting forth the Secretary's opinion 
containing such findings under section 7(b)(1)(A) of the Endangered 
Species Act of 1973 (16 U.S.C. 1536(b)(1)(A)) and any taking of the 
American burying beetle that is incidental to the construction or 
operation and maintenance of the Keystone XL pipeline as it may be 
ultimately defined in its entirety, shall not be considered a 
prohibited taking of such species under such Act.

SEC. 4105. RIGHT-OF-WAY AND TEMPORARY USE PERMIT.

    The Secretary of the Interior is deemed to have granted or issued a 
grant of right-of-way and temporary use permit under section 28 of the 
Mineral Leasing Act (30 U.S.C. 185) and the Federal Land Policy and 
Management Act of 1976 (43 U.S.C. 1701 et seq.), as set forth in the 
application tendered to the Bureau of Land Management for the Keystone 
XL pipeline.

SEC. 4106. PERMITS FOR ACTIVITIES IN NAVIGABLE WATERS.

    (a) Issuance of Permits.--The Secretary of the Army, not later than 
90 days after receipt of an application therefor, shall issue all 
permits under section 404 of the Federal Water Pollution Control Act 
(33 U.S.C. 1344) and section 10 of the Act of March 3, 1899 (33 U.S.C. 
403; commonly known as the Rivers and Harbors Appropriations Act of 
1899), necessary for the construction, operation, and maintenance of 
the pipeline described in the May 4, 2012, application referred to in 
section 4103, as supplemented by the Nebraska reroute. The application 
shall be based on the administrative record for the pipeline as of the 
date of enactment of this Act, which shall be considered complete.
    (b) Waiver of Procedural Requirements.--The Secretary may waive any 
procedural requirement of law or regulation that the Secretary 
considers desirable to waive in order to accomplish the purposes of 
this section.
    (c) Issuance in Absence of Action by the Secretary.--If the 
Secretary has not issued a permit described in subsection (a) on or 
before the last day of the 90-day period referred to in subsection (a), 
the permit shall be deemed issued under section 404 of the Federal 
Water Pollution Control Act (33 U.S.C. 1344) or section 10 of the Act 
of March 3, 1899 (33 U.S.C. 403), as appropriate, on the day following 
such last day.
    (d) Limitation.--The Administrator of the Environmental Protection 
Agency may not prohibit or restrict an activity or use of an area that 
is authorized under this section.

SEC. 4107. MIGRATORY BIRD TREATY ACT PERMIT.

    The Secretary of the Interior is deemed to have issued a special 
purpose permit under the Migratory Bird Treaty Act (16 U.S.C. 703 et 
seq.), as described in the application filed with the United States 
Fish and Wildlife Service for the Keystone XL pipeline on January 11, 
2013.

SEC. 4108. OIL SPILL RESPONSE PLAN DISCLOSURE.

    (a) In General.--Any pipeline owner or operator required under 
Federal law to develop an oil spill response plan for the Keystone XL 
pipeline shall make such plan available to the Governor of each State 
in which such pipeline operates to assist with emergency response 
preparedness.
    (b) Updates.--A pipeline owner or operator required to make 
available to a Governor a plan under subsection (a) shall make 
available to such Governor any update of such plan not later than 7 
days after the date on which such update is made.

           Subtitle B--Natural Gas Pipeline Permitting Reform

SEC. 4201. REGULATORY APPROVAL OF NATURAL GAS PIPELINE PROJECTS.

    Section 7 of the Natural Gas Act (15 U.S.C. 717f) is amended by 
adding at the end the following new subsection:
    ``(i)(1) The Commission shall approve or deny an application for a 
certificate of public convenience and necessity for a prefiled project 
not later than 12 months after receiving a complete application that is 
ready to be processed, as defined by the Commission by regulation.
    ``(2) The agency responsible for issuing any license, permit, or 
approval required under Federal law in connection with a prefiled 
project for which a certificate of public convenience and necessity is 
sought under this Act shall approve or deny the issuance of the 
license, permit, or approval not later than 90 days after the 
Commission issues its final environmental document relating to the 
project.
    ``(3) The Commission may extend the time period under paragraph (2) 
by 30 days if an agency demonstrates that it cannot otherwise complete 
the process required to approve or deny the license, permit, or 
approval, and therefor will be compelled to deny the license, permit, 
or approval. In granting an extension under this paragraph, the 
Commission may offer technical assistance to the agency as necessary to 
address conditions preventing the completion of the review of the 
application for the license, permit, or approval.
    ``(4) If an agency described in paragraph (2) does not approve or 
deny the issuance of the license, permit, or approval within the time 
period specified under paragraph (2) or (3), as applicable, such 
license, permit, or approval shall take effect upon the expiration of 
30 days after the end of such period. The Commission shall incorporate 
into the terms of such license, permit, or approval any conditions 
proffered by the agency described in paragraph (2) that the Commission 
does not find are inconsistent with the final environmental document.
    ``(5) For purposes of this subsection, the term `prefiled project' 
means a project for the siting, construction, expansion, or operation 
of a natural gas pipeline with respect to which a prefiling docket 
number has been assigned by the Commission pursuant to a prefiling 
process established by the Commission for the purpose of facilitating 
the formal application process for obtaining a certificate of public 
convenience and necessity.''.

            Subtitle C--North American Energy Infrastructure

SEC. 4301. FINDING.

    Congress finds that the United States should establish a more 
uniform, transparent, and modern process for the construction, 
connection, operation, and maintenance of oil and natural gas pipelines 
and electric transmission facilities for the import and export of oil 
and natural gas and the transmission of electricity to and from Canada 
and Mexico, in pursuit of a more secure and efficient North American 
energy market.

SEC. 4302. AUTHORIZATION OF CERTAIN ENERGY INFRASTRUCTURE PROJECTS AT 
              THE NATIONAL BOUNDARY OF THE UNITED STATES.

    (a) Authorization.--Except as provided in subsection (c) and 
section 4306, no person may construct, connect, operate, or maintain a 
cross-border segment of an oil pipeline or electric transmission 
facility for the import or export of oil or the transmission of 
electricity to or from Canada or Mexico without obtaining a certificate 
of crossing for the construction, connection, operation, or maintenance 
of the cross-border segment under this section.
    (b) Certificate of Crossing.--
            (1) Requirement.--Not later than 120 days after final 
        action is taken under the National Environmental Policy Act of 
        1969 (42 U.S.C. 4321 et seq.) with respect to a cross-border 
        segment for which a request is received under this section, the 
        relevant official identified under paragraph (2), in 
        consultation with appropriate Federal agencies, shall issue a 
        certificate of crossing for the cross-border segment unless the 
        relevant official finds that the construction, connection, 
        operation, or maintenance of the cross-border segment is not in 
        the public interest of the United States.
            (2) Relevant official.--The relevant official referred to 
        in paragraph (1) is--
                    (A) the Secretary of State with respect to oil 
                pipelines; and
                    (B) the Secretary of Energy with respect to 
                electric transmission facilities.
            (3) Additional requirement for electric transmission 
        facilities.--In the case of a request for a certificate of 
        crossing for the construction, connection, operation, or 
        maintenance of a cross-border segment of an electric 
        transmission facility, the Secretary of Energy shall require, 
        as a condition of issuing the certificate of crossing for the 
        request under paragraph (1), that the cross-border segment of 
        the electric transmission facility be constructed, connected, 
        operated, or maintained consistent with all applicable policies 
        and standards of--
                    (A) the Electric Reliability Organization and the 
                applicable regional entity; and
                    (B) any Regional Transmission Organization or 
                Independent System Operator with operational or 
                functional control over the cross-border segment of the 
                electric transmission facility.
    (c) Exclusions.--This section shall not apply to any construction, 
connection, operation, or maintenance of a cross-border segment of an 
oil pipeline or electric transmission facility for the import or export 
of oil or the transmission of electricity to or from Canada or Mexico--
            (1) if the cross-border segment is operating for such 
        import, export, or transmission as of the date of enactment of 
        this Act;
            (2) if a permit described in section 4305 for such 
        construction, connection, operation, or maintenance has been 
        issued;
            (3) if a certificate of crossing for such construction, 
        connection, operation, or maintenance has previously been 
        issued under this section; or
            (4) if an application for a permit described in section 
        4305 for such construction, connection, operation, or 
        maintenance is pending on the date of enactment of this Act, 
        until the earlier of--
                    (A) the date on which such application is denied; 
                or
                    (B) July 1, 2016.
    (d) Effect of Other Laws.--
            (1) Application to projects.--Nothing in this section or 
        section 4306 shall affect the application of any other Federal 
        statute to a project for which a certificate of crossing for 
        the construction, connection, operation, or maintenance of a 
        cross-border segment is sought under this section.
            (2) Natural gas act.--Nothing in this section or section 
        4306 shall affect the requirement to obtain approval or 
        authorization under sections 3 and 7 of the Natural Gas Act for 
        the siting, construction, or operation of any facility to 
        import or export natural gas.
            (3) Energy policy and conservation act.--Nothing in this 
        section or section 4306 shall affect the authority of the 
        President under section 103(a) of the Energy Policy and 
        Conservation Act.

SEC. 4303. IMPORTATION OR EXPORTATION OF NATURAL GAS TO CANADA AND 
              MEXICO.

    Section 3(c) of the Natural Gas Act (15 U.S.C. 717b(c)) is amended 
by adding at the end the following: ``No order is required under 
subsection (a) to authorize the export or import of any natural gas to 
or from Canada or Mexico.''.

SEC. 4304. TRANSMISSION OF ELECTRIC ENERGY TO CANADA AND MEXICO.

    (a) Repeal of Requirement To Secure Order.--Section 202(e) of the 
Federal Power Act (16 U.S.C. 824a(e)) is repealed.
    (b) Conforming Amendments.--
            (1) State regulations.--Section 202(f) of the Federal Power 
        Act (16 U.S.C. 824a(f)) is amended by striking ``insofar as 
        such State regulation does not conflict with the exercise of 
        the Commission's powers under or relating to subsection 
        202(e)''.
            (2) Seasonal diversity electricity exchange.--Section 
        602(b) of the Public Utility Regulatory Policies Act of 1978 
        (16 U.S.C. 824a-4(b)) is amended by striking ``the Commission 
        has conducted hearings and made the findings required under 
        section 202(e) of the Federal Power Act'' and all that follows 
        through the period at the end and inserting ``the Secretary has 
        conducted hearings and finds that the proposed transmission 
        facilities would not impair the sufficiency of electric supply 
        within the United States or would not impede or tend to impede 
        the coordination in the public interest of facilities subject 
        to the jurisdiction of the Secretary.''.

SEC. 4305. NO PRESIDENTIAL PERMIT REQUIRED.

    No Presidential permit (or similar permit) required under Executive 
Order No. 13337 (3 U.S.C. 301 note), Executive Order No. 11423 (3 
U.S.C. 301 note), section 301 of title 3, United States Code, Executive 
Order No. 12038, Executive Order No. 10485, or any other Executive 
order shall be necessary for the construction, connection, operation, 
or maintenance of an oil or natural gas pipeline or electric 
transmission facility, or any cross-border segment thereof.

SEC. 4306. MODIFICATIONS TO EXISTING PROJECTS.

    No certificate of crossing under section 4302, or permit described 
in section 4305, shall be required for a modification to the 
construction, connection, operation, or maintenance of an oil or 
natural gas pipeline or electric transmission facility--
            (1) that is operating for the import or export of oil or 
        natural gas or the transmission of electricity to or from 
        Canada or Mexico as of the date of enactment of the Act;
            (2) for which a permit described in section 4305 for such 
        construction, connection, operation, or maintenance has been 
        issued; or
            (3) for which a certificate of crossing for the cross-
        border segment of the pipeline or facility has previously been 
        issued under section 4302.

SEC. 4307. EFFECTIVE DATE; RULEMAKING DEADLINES.

    (a) Effective Date.--Sections 4302 through 4306, and the amendments 
made by such sections, shall take effect on July 1, 2015.
    (b) Rulemaking Deadlines.--Each relevant official described in 
section 4302(b)(2) shall--
            (1) not later than 180 days after the date of enactment of 
        this Act, publish in the Federal Register notice of a proposed 
        rulemaking to carry out the applicable requirements of section 
        4302; and
            (2) not later than 1 year after the date of enactment of 
        this Act, publish in the Federal Register a final rule to carry 
        out the applicable requirements of section 4302.

SEC. 4308. DEFINITIONS.

    In this subtitle--
            (1) the term ``cross-border segment'' means the portion of 
        an oil or natural gas pipeline or electric transmission 
        facility that is located at the national boundary of the United 
        States with either Canada or Mexico;
            (2) the term ``modification'' includes a reversal of flow 
        direction, change in ownership, volume expansion, downstream or 
        upstream interconnection, or adjustment to maintain flow (such 
        as a reduction or increase in the number of pump or compressor 
        stations);
            (3) the term ``natural gas'' has the meaning given that 
        term in section 2 of the Natural Gas Act (15 U.S.C. 717a);
            (4) the term ``oil'' means petroleum or a petroleum 
        product;
            (5) the terms ``Electric Reliability Organization'' and 
        ``regional entity'' have the meanings given those terms in 
        section 215 of the Federal Power Act (16 U.S.C. 824o); and
            (6) the terms ``Independent System Operator'' and 
        ``Regional Transmission Organization'' have the meanings given 
        those terms in section 3 of the Federal Power Act (16 U.S.C. 
        796).

   Subtitle D--Protecting States' Rights To Promote American Energy 
                              Security Act

     CHAPTER 1--STATE AUTHORITY FOR HYDRAULIC FRACTURING REGULATION

SEC. 4411. STATE AUTHORITY FOR HYDRAULIC FRACTURING REGULATION.

    The Mineral Leasing Act (30 U.S.C. 181 et seq.) is amended by 
redesignating section 44 as section 45, and by inserting after section 
43 the following:

``SEC. 44. STATE AUTHORITY FOR HYDRAULIC FRACTURING REGULATION.

    ``(a) In General.--The Department of the Interior shall not enforce 
any Federal regulation, guidance, or permit requirement regarding 
hydraulic fracturing, or any component of that process, relating to 
oil, gas, or geothermal production activities on or under any land in 
any State that has regulations, guidance, or permit requirements for 
that activity.
    ``(b) State Authority.--The Department of the Interior shall 
recognize and defer to State regulations, permitting, and guidance, for 
all activities related to hydraulic fracturing, or any component of 
that process, relating to oil, gas, or geothermal production activities 
on Federal land.
    ``(c) Transparency of State Regulations.--
            ``(1) In general.--Each State shall submit to the Bureau of 
        Land Management a copy of its regulations that apply to 
        hydraulic fracturing operations on Federal land.
            ``(2) Availability.--The Secretary of the Interior shall 
        make available to the public State regulations submitted under 
        this subsection.
    ``(d) Transparency of State Disclosure Requirements.--
            ``(1) In general.--Each State shall submit to the Bureau of 
        Land Management a copy of any regulations of the State that 
        require disclosure of chemicals used in hydraulic fracturing 
        operations on Federal land.
            ``(2) Availability.--The Secretary of the Interior shall 
        make available to the public State regulations submitted under 
        this subsection.
    ``(e) Hydraulic Fracturing Defined.--In this section the term 
`hydraulic fracturing' means the process by which fracturing fluids (or 
a fracturing fluid system) are pumped into an underground geologic 
formation at a calculated, predetermined rate and pressure to generate 
fractures or cracks in the target formation and thereby increase the 
permeability of the rock near the wellbore and improve production of 
natural gas or oil.''.

SEC. 4412. GOVERNMENT ACCOUNTABILITY OFFICE STUDY.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study examining the economic benefits of domestic shale oil 
and gas production resulting from the process of hydraulic fracturing. 
This study will include identification of--
            (1) State and Federal revenue generated as a result of 
        shale gas production;
            (2) jobs created both directly and indirectly as a result 
        of shale oil and gas production; and
            (3) an estimate of potential energy prices without domestic 
        shale oil and gas production.
    (b) Report.--The Comptroller General shall submit a report on the 
findings of such study to the Committee on Natural Resources of the 
House of Representatives within 30 days after completion of the study.

SEC. 4413. TRIBAL AUTHORITY ON TRUST LAND.

    The Department of the Interior shall not enforce any Federal 
regulation, guidance, or permit requirement regarding the process of 
hydraulic fracturing (as that term is defined in section 44 of the 
Mineral Leasing Act, as amended by section 4411 of this Act), or any 
component of that process, relating to oil, gas, or geothermal 
production activities on any land held in trust or restricted status 
for the benefit of Indians except with the express consent of the 
beneficiary on whose behalf such land is held in trust or restricted 
status.

              CHAPTER 2--EPA HYDRAULIC FRACTURING RESEARCH

SEC. 4421. EPA HYDRAULIC FRACTURING RESEARCH.

    In conducting its study of the potential impacts of hydraulic 
fracturing on drinking water resources, with respect to which a request 
for information was issued under Federal Register Vol. 77, No. 218, the 
Administrator of the Environmental Protection Agency shall adhere to 
the following requirements:
            (1) Peer review and information quality.--Prior to issuance 
        and dissemination of any final report or any interim report 
        summarizing the Environmental Protection Agency's research on 
        the relationship between hydraulic fracturing and drinking 
        water, the Administrator shall--
                    (A) consider such reports to be Highly Influential 
                Scientific Assessments and require peer review of such 
                reports in accordance with guidelines governing such 
                assessments, as described in--
                            (i) the Environmental Protection Agency's 
                        Peer Review Handbook 3rd Edition;
                            (ii) the Environmental Protection Agency's 
                        Scientific Integrity Policy, as in effect on 
                        the date of enactment of this Act; and
                            (iii) the Office of Management and Budget's 
                        Peer Review Bulletin, as in effect on the date 
                        of enactment of this Act; and
                    (B) require such reports to meet the standards and 
                procedures for the dissemination of influential 
                scientific, financial, or statistical information set 
                forth in the Environmental Protection Agency's 
                Guidelines for Ensuring and Maximizing the Quality, 
                Objectivity, Utility, and Integrity of Information 
                Disseminated by the Environmental Protection Agency, 
                developed in response to guidelines issued by the 
                Office of Management and Budget under section 515(a) of 
                the Treasury and General Government Appropriations Act 
                for Fiscal Year 2001 (Public Law 106-554).
            (2) Probability, uncertainty, and consequence.--In order to 
        maximize the quality and utility of information developed 
        through the study, the Administrator shall ensure that 
        identification of the possible impacts of hydraulic fracturing 
        on drinking water resources included in such reports be 
        accompanied by objective estimates of the probability, 
        uncertainty, and consequence of each identified impact, taking 
        into account the risk management practices of States and 
        industry. Estimates or descriptions of probability, 
        uncertainty, and consequence shall be as quantitative as 
        possible given the validity, accuracy, precision, and other 
        quality attributes of the underlying data and analyses, but no 
        more quantitative than the data and analyses can support.
            (3) Release of final report.--The final report shall be 
        publicly released by September 30, 2016.

                  CHAPTER 3--MISCELLANEOUS PROVISIONS

SEC. 4431. REVIEW OF STATE ACTIVITIES.

    The Secretary of the Interior shall annually review and report to 
Congress on all State activities relating to hydraulic fracturing.

                  Subtitle E--Offshore Energy and Jobs

       CHAPTER 1--OUTER CONTINENTAL SHELF LEASING PROGRAM REFORMS

SEC. 4511. OUTER CONTINENTAL SHELF LEASING PROGRAM REFORMS.

    Section 18(a) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1344(a)) is amended by adding at the end the following:
            ``(5)(A) In each oil and gas leasing program under this 
        section, the Secretary shall make available for leasing and 
        conduct lease sales including at least 50 percent of the 
        available unleased acreage within each outer Continental Shelf 
        planning area considered to have the largest undiscovered, 
        technically recoverable oil and gas resources (on a total btu 
        basis) based upon the most recent national geologic assessment 
        of the outer Continental Shelf, with an emphasis on offering 
        the most geologically prospective parts of the planning area.
            ``(B) The Secretary shall include in each proposed oil and 
        gas leasing program under this section any State subdivision of 
        an outer Continental Shelf planning area that the Governor of 
        the State that represents that subdivision requests be made 
        available for leasing. The Secretary may not remove such a 
        subdivision from the program until publication of the final 
        program, and shall include and consider all such subdivisions 
        in any environmental review conducted and statement prepared 
        for such program under section 102(2) of the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4332(2)).
            ``(C) In this paragraph the term `available unleased 
        acreage' means that portion of the outer Continental Shelf that 
        is not under lease at the time of a proposed lease sale, and 
        that has not otherwise been made unavailable for leasing by 
        law.
            ``(6)(A) In the 5-year oil and gas leasing program, the 
        Secretary shall make available for leasing any outer 
        Continental Shelf planning areas that--
                    ``(i) are estimated to contain more than 
                2,500,000,000 barrels of oil; or
                    ``(ii) are estimated to contain more than 
                7,500,000,000,000 cubic feet of natural gas.
            ``(B) To determine the planning areas described in 
        subparagraph (A), the Secretary shall use the document entitled 
        `Minerals Management Service Assessment of Undiscovered 
        Technically Recoverable Oil and Gas Resources of the Nation's 
        Outer Continental Shelf, 2006'.''.

SEC. 4512. DOMESTIC OIL AND NATURAL GAS PRODUCTION GOAL.

    Section 18(b) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1344(b)) is amended to read as follows:
    ``(b) Domestic Oil and Natural Gas Production Goal.---
            ``(1) In general.--In developing a 5-year oil and gas 
        leasing program, and subject to paragraph (2), the Secretary 
        shall determine a domestic strategic production goal for the 
        development of oil and natural gas as a result of that program. 
        Such goal shall be--
                    ``(A) the best estimate of the possible increase in 
                domestic production of oil and natural gas from the 
                outer Continental Shelf;
                    ``(B) focused on meeting domestic demand for oil 
                and natural gas and reducing the dependence of the 
                United States on foreign energy; and
                    ``(C) focused on the production increases achieved 
                by the leasing program at the end of the 15-year period 
                beginning on the effective date of the program.
            ``(2) Program goal.--For purposes of the 5-year oil and gas 
        leasing program, the production goal referred to in paragraph 
        (1) shall be an increase by 2032 of--
                    ``(A) no less than 3,000,000 barrels in the amount 
                of oil produced per day; and
                    ``(B) no less than 10,000,000,000 cubic feet in the 
                amount of natural gas produced per day.
            ``(3) Reporting.--The Secretary shall report annually, 
        beginning at the end of the 5-year period for which the program 
        applies, to the Committee on Natural Resources of the House of 
        Representatives and the Committee on Energy and Natural 
        Resources of the Senate on the progress of the program in 
        meeting the production goal. The Secretary shall identify in 
        the report projections for production and any problems with 
        leasing, permitting, or production that will prevent meeting 
        the goal.''.

SEC. 4513. DEVELOPMENT AND SUBMITTAL OF NEW 5-YEAR OIL AND GAS LEASING 
              PROGRAM.

    (a) In General.--The Secretary of the Interior shall--
            (1) by not later than July 15, 2015, publish and submit to 
        Congress a new proposed oil and gas leasing program under 
        section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 
        1344) for the 5-year period beginning on such date and ending 
        July 15, 2021; and
            (2) by not later than July 15, 2016, approve a final oil 
        and gas leasing program under such section for such period.
    (b) Consideration of All Areas.--In preparing such program the 
Secretary shall include consideration of areas of the Continental Shelf 
off the coasts of all States (as such term is defined in section 2 of 
that Act, as amended by this Act), that are subject to leasing under 
this Act.
    (c) Technical Correction.--Section 18(d)(3) of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1344(d)(3)) is amended by 
striking ``or after eighteen months following the date of enactment of 
this section, whichever first occurs,''.

SEC. 4514. RULE OF CONSTRUCTION.

    Nothing in this subtitle shall be construed to authorize the 
issuance of a lease under the Outer Continental Shelf Lands Act (43 
U.S.C. 1331 et seq.) to any person designated for the imposition of 
sanctions pursuant to--
            (1) the Iran Sanctions Act of 1996 (50 U.S.C. 1701 note), 
        the Comprehensive Iran Sanctions, Accountability and 
        Divestiture Act of 2010 (22 U.S.C. 8501 et seq.), the Iran 
        Threat Reduction and Syria Human Rights Act of 2012 (22 U.S.C. 
        8701 et seq.), section 1245 of the National Defense 
        Authorization Act for Fiscal Year 2012 (22 U.S.C. 8513a), or 
        the Iran Freedom and Counter-Proliferation Act of 2012 (22 
        U.S.C. 8801 et seq.);
            (2) Executive Order No. 13622 (July 30, 2012), Executive 
        Order No. 13628 (October 9, 2012), or Executive Order No. 13645 
        (June 3, 2013);
            (3) Executive Order No. 13224 (September 23, 2001) or 
        Executive Order No. 13338 (May 11, 2004); or
            (4) the Syria Accountability and Lebanese Sovereignty 
        Restoration Act of 2003 (22 U.S.C. 2151 note).

    CHAPTER 2--DIRECTING THE PRESIDENT TO CONDUCT NEW OCS SALES IN 
                VIRGINIA, SOUTH CAROLINA, AND CALIFORNIA

SEC. 4521. REQUIREMENT TO CONDUCT PROPOSED OIL AND GAS LEASE SALE 220 
              ON THE OUTER CONTINENTAL SHELF OFFSHORE VIRGINIA.

    (a) In General.--Notwithstanding the exclusion of Lease Sale 220 in 
the Final Outer Continental Shelf Oil & Gas Leasing Program 2012-2017, 
the Secretary of the Interior shall conduct offshore oil and gas Lease 
Sale 220 under section 8 of the Outer Continental Shelf Lands Act (43 
U.S.C. 1337) as soon as practicable, but not later than one year after 
the date of enactment of this Act.
    (b) Requirement To Make Replacement Lease Blocks Available.--For 
each lease block in a proposed lease sale under this section for which 
the Secretary of Defense, in consultation with the Secretary of the 
Interior, under the Memorandum of Agreement referred to in section 
4525(b), issues a statement proposing deferral from a lease offering 
due to defense-related activities that are irreconcilable with mineral 
exploration and development, the Secretary of the Interior, in 
consultation with the Secretary of Defense, shall make available in the 
same lease sale one other lease block in the Virginia lease sale 
planning area that is acceptable for oil and gas exploration and 
production in order to mitigate conflict.
    (c) Balancing Military and Energy Production Goals.--In recognition 
that the Outer Continental Shelf oil and gas leasing program and the 
domestic energy resources produced therefrom are integral to national 
security, the Secretary of the Interior and the Secretary of Defense 
shall work jointly in implementing this section in order to ensure 
achievement of the following common goals:
            (1) Preserving the ability of the Armed Forces of the 
        United States to maintain an optimum state of readiness through 
        their continued use of the Outer Continental Shelf.
            (2) Allowing effective exploration, development, and 
        production of our Nation's oil, gas, and renewable energy 
        resources.
    (d) Definitions.--In this section:
            (1) Lease sale 220.--The term ``Lease Sale 220'' means such 
        lease sale referred to in the Request for Comments on the Draft 
        Proposed 5-Year Outer Continental Shelf (OCS) Oil and Gas 
        Leasing Program for 2010-2015 and Notice of Intent To Prepare 
        an Environmental Impact Statement (EIS) for the Proposed 5-Year 
        Program published January 21, 2009 (74 Fed. Reg. 3631).
            (2) Virginia lease sale planning area.--The term ``Virginia 
        lease sale planning area'' means the area of the outer 
        Continental Shelf (as that term is defined in the Outer 
        Continental Shelf Lands Act (33 U.S.C. 1331 et seq.)) that is 
        bounded by--
                    (A) a northern boundary consisting of a straight 
                line extending from the northernmost point of 
                Virginia's seaward boundary to the point on the seaward 
                boundary of the United States exclusive economic zone 
                located at 37 degrees 17 minutes 1 second North 
                latitude, 71 degrees 5 minutes 16 seconds West 
                longitude; and
                    (B) a southern boundary consisting of a straight 
                line extending from the southernmost point of 
                Virginia's seaward boundary to the point on the seaward 
                boundary of the United States exclusive economic zone 
                located at 36 degrees 31 minutes 58 seconds North 
                latitude, 71 degrees 30 minutes 1 second West 
                longitude.

SEC. 4522. SOUTH CAROLINA LEASE SALE.

    Notwithstanding inclusion of the South Atlantic Outer Continental 
Shelf Planning Area in the Final Outer Continental Shelf Oil & Gas 
Leasing Program 2012-2017, the Secretary of the Interior shall conduct 
a lease sale not later than 2 years after the date of the enactment of 
this Act for areas off the coast of South Carolina determined by the 
Secretary to have the most geologically promising hydrocarbon resources 
and constituting not less than 25 percent of the leasable area within 
the South Carolina offshore administrative boundaries depicted in the 
notice entitled ``Federal Outer Continental Shelf (OCS) Administrative 
Boundaries Extending from the Submerged Lands Act Boundary seaward to 
the Limit of the United States Outer Continental Shelf'', published 
January 3, 2006 (71 Fed. Reg. 127).

SEC. 4523. SOUTHERN CALIFORNIA EXISTING INFRASTRUCTURE LEASE SALE.

    (a) In General.--The Secretary of the Interior shall offer for sale 
leases of tracts in the Santa Maria and Santa Barbara/Ventura Basins of 
the Southern California OCS Planning Area as soon as practicable, but 
not later than December 31, 2015.
    (b) Use of Existing Structures or Onshore-Based Drilling.--The 
Secretary of the Interior shall include in leases offered for sale 
under this lease sale such terms and conditions as are necessary to 
require that development and production may occur only from offshore 
infrastructure in existence on the date of the enactment of this Act or 
from onshore-based, extended-reach drilling.

SEC. 4524. ENVIRONMENTAL IMPACT STATEMENT REQUIREMENT.

    (a) In General.--For the purposes of this subtitle, the Secretary 
of the Interior shall prepare a multisale environmental impact 
statement under section 102 of the National Environmental Policy Act of 
1969 (42 U.S.C. 4332) for all lease sales required under this chapter.
    (b) Actions To Be Considered.--Notwithstanding section 102 of the 
National Environmental Policy Act of 1969 (42 U.S.C. 4332), in such 
statement--
            (1) the Secretary is not required to identify nonleasing 
        alternative courses of action or to analyze the environmental 
        effects of such alternative courses of action; and
            (2) the Secretary shall only--
                    (A) identify a preferred action for leasing and not 
                more than one alternative leasing proposal; and
                    (B) analyze the environmental effects and potential 
                mitigation measures for such preferred action and such 
                alternative leasing proposal.

SEC. 4525. NATIONAL DEFENSE.

    (a) National Defense Areas.--This subtitle does not affect the 
existing authority of the Secretary of Defense, with the approval of 
the President, to designate national defense areas on the Outer 
Continental Shelf pursuant to section 12(d) of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1341(d)).
    (b) Prohibition on Conflicts With Military Operations.--No person 
may engage in any exploration, development, or production of oil or 
natural gas on the Outer Continental Shelf under a lease issued under 
this subtitle that would conflict with any military operation, as 
determined in accordance with the Memorandum of Agreement between the 
Department of Defense and the Department of the Interior on Mutual 
Concerns on the Outer Continental Shelf signed July 20, 1983, and any 
revision or replacement for that agreement that is agreed to by the 
Secretary of Defense and the Secretary of the Interior after that date 
but before the date of issuance of the lease under which such 
exploration, development, or production is conducted.

SEC. 4526. EASTERN GULF OF MEXICO NOT INCLUDED.

    Nothing in this subtitle affects restrictions on oil and gas 
leasing under the Gulf of Mexico Energy Security Act of 2006 (title I 
of division C of Public Law 109-432; 43 U.S.C. 1331 note).

    CHAPTER 3--EQUITABLE SHARING OF OUTER CONTINENTAL SHELF REVENUES

SEC. 4531. DISPOSITION OF OUTER CONTINENTAL SHELF REVENUES TO COASTAL 
              STATES.

    (a) In General.--Section 9 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1338) is amended--
            (1) in the existing text--
                    (A) in the first sentence, by striking ``All 
                rentals,'' and inserting the following:
    ``(c) Disposition of Revenue Under Old Leases.--All rentals,''; and
                    (B) in subsection (c) (as designated by the 
                amendment made by subparagraph (A) of this paragraph), 
                by striking ``for the period from June 5, 1950, to 
                date, and thereafter'' and inserting ``in the period 
                beginning June 5, 1950, and ending on the date of 
                enactment of the American Renaissance in Manufacturing 
                Act'';
            (2) by adding after subsection (c) (as so designated) the 
        following:
    ``(d)  Definitions.--In this section:
            ``(1) Coastal state.--The term `coastal State' includes a 
        territory of the United States.
            ``(2) New leasing revenues.--The term `new leasing 
        revenues'--
                    ``(A) means amounts received by the United States 
                as bonuses, rents, and royalties under leases for oil 
                and gas, wind, tidal, or other energy exploration, 
                development, and production on new areas of the outer 
                Continental Shelf that are authorized to be made 
                available for leasing as a result of enactment of the 
                American Renaissance in Manufacturing Act and leasing 
                under that Act; and
                    ``(B) does not include amounts received by the 
                United States under any lease of an area located in the 
                boundaries of the Central Gulf of Mexico and Western 
                Gulf of Mexico Outer Continental Shelf Planning Areas 
                on the date of enactment of the American Renaissance in 
                Manufacturing Act, including a lease issued before, on, 
                or after such date of enactment.''; and
            (3) by inserting before subsection (c) (as so designated) 
        the following:
    ``(a) Payment of New Leasing Revenues to Coastal States.--
            ``(1) In general.--Except as provided in paragraph (2), of 
        the amount of new leasing revenues received by the United 
        States each fiscal year, 37.5 percent shall be allocated and 
        paid in accordance with subsection (b) to coastal States that 
        are affected States with respect to the leases under which 
        those revenues are received by the United States.
            ``(2) Phase-in.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), paragraph (1) shall be applied--
                            ``(i) with respect to new leasing revenues 
                        under leases awarded under the first leasing 
                        program under section 18(a) that takes effect 
                        after the date of enactment of the American 
                        Renaissance in Manufacturing Act, by 
                        substituting `12.5 percent' for `37.5 percent'; 
                        and
                            ``(ii) with respect to new leasing revenues 
                        under leases awarded under the second leasing 
                        program under section 18(a) that takes effect 
                        after the date of enactment of the American 
                        Renaissance in Manufacturing Act, by 
                        substituting `25 percent' for `37.5 percent'.
                    ``(B) Exempted lease sales.--This paragraph shall 
                not apply with respect to any lease issued under 
                chapter 2 of subtitle E of title IV of the American 
                Renaissance in Manufacturing Act.
    ``(b) Allocation of Payments.--
            ``(1) In general.--The amount of new leasing revenues 
        received by the United States with respect to a leased tract 
        that are required to be paid to coastal States in accordance 
        with this subsection each fiscal year shall be allocated among 
        and paid to coastal States that are within 200 miles of the 
        leased tract, in amounts that are inversely proportional to the 
        respective distances between the point on the coastline of each 
        such State that is closest to the geographic center of the 
        lease tract, as determined by the Secretary.
            ``(2) Minimum and maximum allocation.--The amount allocated 
        to a coastal State under paragraph (1) each fiscal year with 
        respect to a leased tract shall be--
                    ``(A) in the case of a coastal State that is the 
                nearest State to the geographic center of the leased 
                tract, not less than 25 percent of the total amounts 
                allocated with respect to the leased tract;
                    ``(B) in the case of any other coastal State, not 
                less than 10 percent, and not more than 15 percent, of 
                the total amounts allocated with respect to the leased 
                tract; and
                    ``(C) in the case of a coastal State that is the 
                only coastal State within 200 miles of a leased tract, 
                100 percent of the total amounts allocated with respect 
                to the leased tract.
            ``(3) Administration.--Amounts allocated to a coastal State 
        under this subsection--
                    ``(A) shall be available to the coastal State 
                without further appropriation;
                    ``(B) shall remain available until expended;
                    ``(C) shall be in addition to any other amounts 
                available to the coastal State under this Act; and
                    ``(D) shall be distributed in the fiscal year 
                following receipt.
            ``(4) Use of funds.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a coastal State may use funds 
                allocated and paid to it under this subsection for any 
                purpose as determined by the laws of that State.
                    ``(B) Restriction on use for matching.--Funds 
                allocated and paid to a coastal State under this 
                subsection may not be used as matching funds for any 
                other Federal program.''.
    (b) Limitation on Application.--This section and the amendment made 
by this section shall not affect the application of section 105 of the 
Gulf of Mexico Energy Security Act of 2006 (title I of division C of 
Public Law 109-432; (43 U.S.C. 1331 note)), as in effect before the 
enactment of this Act, with respect to revenues received by the United 
States under oil and gas leases issued for tracts located in the 
Western and Central Gulf of Mexico Outer Continental Shelf Planning 
Areas, including such leases issued on or after the date of the 
enactment of this Act.

   CHAPTER 4--REORGANIZATION OF MINERALS MANAGEMENT AGENCIES OF THE 
                       DEPARTMENT OF THE INTERIOR

SEC. 4541. ESTABLISHMENT OF UNDER SECRETARY FOR ENERGY, LANDS, AND 
              MINERALS AND ASSISTANT SECRETARY OF OCEAN ENERGY AND 
              SAFETY.

    There shall be in the Department of the Interior--
            (1) an Under Secretary for Energy, Lands, and Minerals, who 
        shall--
                    (A) be appointed by the President, by and with the 
                advise and consent of the Senate;
                    (B) report to the Secretary of the Interior or, if 
                directed by the Secretary, to the Deputy Secretary of 
                the Interior;
                    (C) be paid at the rate payable for level III of 
                the Executive Schedule; and
                    (D) be responsible for--
                            (i) the safe and responsible development of 
                        our energy and mineral resources on Federal 
                        lands in appropriate accordance with United 
                        States energy demands; and
                            (ii) ensuring multiple-use missions of the 
                        Department of the Interior that promote the 
                        safe and sustained development of energy and 
                        minerals resources on public lands (as that 
                        term is defined in the Federal Land Policy and 
                        Management Act of 1976 (43 U.S.C. 1701 et 
                        seq.));
            (2) an Assistant Secretary of Ocean Energy and Safety, who 
        shall--
                    (A) be appointed by the President, by and with the 
                advise and consent of the Senate;
                    (B) report to the Under Secretary for Energy, 
                Lands, and Minerals;
                    (C) be paid at the rate payable for level IV of the 
                Executive Schedule; and
                    (D) be responsible for ensuring safe and efficient 
                development of energy and minerals on the Outer 
                Continental Shelf of the United States; and
            (3) an Assistant Secretary of Land and Minerals Management, 
        who shall--
                    (A) be appointed by the President, by and with the 
                advise and consent of the Senate;
                    (B) report to the Under Secretary for Energy, 
                Lands, and Minerals;
                    (C) be paid at the rate payable for level IV of the 
                Executive Schedule; and
                    (D) be responsible for ensuring safe and efficient 
                development of energy and minerals on public lands and 
                other Federal onshore lands under the jurisdiction of 
                the Department of the Interior, including 
                implementation of the Mineral Leasing Act (30 U.S.C. 
                181 et seq.) and the Surface Mining Control and 
                Reclamation Act (30 U.S.C. 1201 et seq.) and 
                administration of the Office of Surface Mining.

SEC. 4542. BUREAU OF OCEAN ENERGY.

    (a) Establishment.--There is established in the Department of the 
Interior a Bureau of Ocean Energy (referred to in this section as the 
``Bureau''), which shall--
            (1) be headed by a Director of Ocean Energy (referred to in 
        this section as the ``Director''); and
            (2) be administered under the direction of the Assistant 
        Secretary of Ocean Energy and Safety.
    (b) Director.--
            (1) Appointment.--The Director shall be appointed by the 
        Secretary of the Interior.
            (2) Compensation.--The Director shall be compensated at the 
        rate provided for level V of the Executive Schedule under 
        section 5316 of title 5, United States Code.
    (c) Duties.--
            (1) In general.--The Secretary of the Interior shall carry 
        out through the Bureau all functions, powers, and duties vested 
        in the Secretary relating to the administration of a 
        comprehensive program of offshore mineral and renewable energy 
        resources management.
            (2) Specific authorities.--The Director shall promulgate 
        and implement regulations--
                    (A) for the proper issuance of leases for the 
                exploration, development, and production of 
                nonrenewable and renewable energy and mineral resources 
                on the Outer Continental Shelf;
                    (B) relating to resource identification, access, 
                evaluation, and utilization;
                    (C) for development of leasing plans, lease sales, 
                and issuance of leases for such resources; and
                    (D) regarding issuance of environmental impact 
                statements related to leasing and post leasing 
                activities including exploration, development, and 
                production, and the use of third party contracting for 
                necessary environmental analysis for the development of 
                such resources.
            (3) Limitation.--The Secretary shall not carry out through 
        the Bureau any function, power, or duty that is--
                    (A) required by section 4543 to be carried out 
                through the Ocean Energy Safety Service; or
                    (B) required by section 4544 to be carried out 
                through the Office of Natural Resources Revenue.
    (d) Responsibilities of Land Management Agencies.--Nothing in this 
section shall affect the authorities of the Bureau of Land Management 
under the Federal Land Policy and Management Act of 1976 (43 U.S.C. 
1701 et seq.) or of the Forest Service under the National Forest 
Management Act of 1976 (Public Law 94-588).

SEC. 4543. OCEAN ENERGY SAFETY SERVICE.

    (a) Establishment.--There is established in the Department of the 
Interior an Ocean Energy Safety Service (referred to in this section as 
the ``Service''), which shall--
            (1) be headed by a Director of Energy Safety (referred to 
        in this section as the ``Director''); and
            (2) be administered under the direction of the Assistant 
        Secretary of Ocean Energy and Safety.
    (b) Director.--
            (1) Appointment.--The Director shall be appointed by the 
        Secretary of the Interior.
            (2) Compensation.--The Director shall be compensated at the 
        rate provided for level V of the Executive Schedule under 
        section 5316 of title 5, United States Code.
    (c) Duties.--
            (1) In general.--The Secretary of the Interior shall carry 
        out through the Service all functions, powers, and duties 
        vested in the Secretary relating to the administration of 
        safety and environmental enforcement activities related to 
        offshore mineral and renewable energy resources on the Outer 
        Continental Shelf pursuant to the Outer Continental Shelf Lands 
        Act (43 U.S.C. 1331 et seq.) including the authority to 
        develop, promulgate, and enforce regulations to ensure the safe 
        and sound exploration, development, and production of mineral 
        and renewable energy resources on the Outer Continental Shelf 
        in a timely fashion.
            (2) Specific authorities.--The Director shall be 
        responsible for all safety activities related to exploration 
        and development of renewable and mineral resources on the Outer 
        Continental Shelf, including--
                    (A) exploration, development, production, and 
                ongoing inspections of infrastructure;
                    (B) the suspending or prohibiting, on a temporary 
                basis, any operation or activity, including production 
                under leases held on the Outer Continental Shelf, in 
                accordance with section 5(a)(1) of the Outer 
                Continental Shelf Lands Act (43 U.S.C. 1334(a)(1));
                    (C) cancelling any lease, permit, or right-of-way 
                on the Outer Continental Shelf, in accordance with 
                section 5(a)(2) of the Outer Continental Shelf Lands 
                Act (43 U.S.C. 1334(a)(2));
                    (D) compelling compliance with applicable Federal 
                laws and regulations relating to worker safety and 
                other matters;
                    (E) requiring comprehensive safety and 
                environmental management programs for persons engaged 
                in activities connected with the exploration, 
                development, and production of mineral or renewable 
                energy resources;
                    (F) developing and implementing regulations for 
                Federal employees to carry out any inspection or 
                investigation to ascertain compliance with applicable 
                regulations, including health, safety, or environmental 
                regulations;
                    (G) implementing the Offshore Technology Research 
                and Risk Assessment Program under section 21 of the 
                Outer Continental Shelf Lands Act (43 U.S.C. 1347);
                    (H) summoning witnesses and directing the 
                production of evidence;
                    (I) levying fines and penalties and disqualifying 
                operators;
                    (J) carrying out any safety, response, and removal 
                preparedness functions; and
                    (K) the processing of permits, exploration plans, 
                development plans.
    (d) Employees.--
            (1) In general.--The Secretary shall ensure that the 
        inspection force of the Bureau consists of qualified, trained 
        employees who meet qualification requirements and adhere to the 
        highest professional and ethical standards.
            (2) Qualifications.--The qualification requirements 
        referred to in paragraph (1)--
                    (A) shall be determined by the Secretary, subject 
                to subparagraph (B); and
                    (B) shall include--
                            (i) 3 years of practical experience in oil 
                        and gas exploration, development, or 
                        production; or
                            (ii) a degree in an appropriate field of 
                        engineering from an accredited institution of 
                        higher learning.
            (3) Assignment.--In assigning oil and gas inspectors to the 
        inspection and investigation of individual operations, the 
        Secretary shall give due consideration to the extent possible 
        to their previous experience in the particular type of oil and 
        gas operation in which such inspections are to be made.
            (4) Background checks.--The Director shall require that an 
        individual to be hired as an inspection officer undergo an 
        employment investigation (including a criminal history record 
        check).
            (5) Language requirements.--Individuals hired as inspectors 
        must be able to read, speak, and write English well enough to--
                    (A) carry out written and oral instructions 
                regarding the proper performance of inspection duties; 
                and
                    (B) write inspection reports and statements and log 
                entries in the English language.
            (6) Veterans preference.--The Director shall provide a 
        preference for the hiring of an individual as a inspection 
        officer if the individual is a member or former member of the 
        Armed Forces and is entitled, under statute, to retired, 
        retirement, or retainer pay on account of service as a member 
        of the Armed Forces.
            (7) Annual proficiency review.--
                    (A) Annual proficiency review.--The Director shall 
                provide that an annual evaluation of each individual 
                assigned inspection duties is conducted and documented.
                    (B) Continuation of employment.--An individual 
                employed as an inspector may not continue to be 
                employed in that capacity unless the evaluation 
                demonstrates that the individual--
                            (i) continues to meet all qualifications 
                        and standards;
                            (ii) has a satisfactory record of 
                        performance and attention to duty based on the 
                        standards and requirements in the inspection 
                        program; and
                            (iii) demonstrates the current knowledge 
                        and skills necessary to courteously, 
                        vigilantly, and effectively perform inspection 
                        functions.
            (8) Limitation on right to strike.--Any individual that 
        conducts permitting or inspections under this section may not 
        participate in a strike, or assert the right to strike.
            (9) Personnel authority.--Notwithstanding any other 
        provision of law, the Director may employ, appoint, discipline 
        and terminate for cause, and fix the compensation, terms, and 
        conditions of employment of Federal service for individuals as 
        the employees of the Service in order to restore and maintain 
        the trust of the people of the United States in the 
        accountability of the management of our Nation's energy safety 
        program.
            (10) Training academy.--
                    (A) In general.--The Secretary shall establish and 
                maintain a National Offshore Energy Safety Academy 
                (referred to in this paragraph as the ``Academy'') as 
                an agency of the Ocean Energy Safety Service.
                    (B) Functions of academy.--The Secretary, through 
                the Academy, shall be responsible for--
                            (i) the initial and continued training of 
                        both newly hired and experienced offshore oil 
                        and gas inspectors in all aspects of health, 
                        safety, environmental, and operational 
                        inspections;
                            (ii) the training of technical support 
                        personnel of the Bureau;
                            (iii) any other training programs for 
                        offshore oil and gas inspectors, Bureau 
                        personnel, Department personnel, or other 
                        persons as the Secretary shall designate; and
                            (iv) certification of the successful 
                        completion of training programs for newly hired 
                        and experienced offshore oil and gas 
                        inspectors.
                    (C) Cooperative agreements.--
                            (i) In general.--In performing functions 
                        under this paragraph, and subject to clause 
                        (ii), the Secretary may enter into cooperative 
                        educational and training agreements with 
                        educational institutions, related Federal 
                        academies, other Federal agencies, State 
                        governments, safety training firms, and oil and 
                        gas operators and related industries.
                            (ii) Training requirement.--Such training 
                        shall be conducted by the Academy in accordance 
                        with curriculum needs and assignment of 
                        instructional personnel established by the 
                        Secretary.
            (11) Use of department personnel.--In performing functions 
        under this subsection, the Secretary shall use, to the extent 
        practicable, the facilities and personnel of the Department of 
        the Interior. The Secretary may appoint or assign to the 
        Academy such officers and employees as the Secretary considers 
        necessary for the performance of the duties and functions of 
        the Academy.
            (12) Additional training programs.--
                    (A) In general.--The Secretary shall work with 
                appropriate educational institutions, operators, and 
                representatives of oil and gas workers to develop and 
                maintain adequate programs with educational 
                institutions and oil and gas operators that are 
                designed--
                            (i) to enable persons to qualify for 
                        positions in the administration of this 
                        subtitle; and
                            (ii) to provide for the continuing 
                        education of inspectors or other appropriate 
                        Department of the Interior personnel.
                    (B) Financial and technical assistance.--The 
                Secretary may provide financial and technical 
                assistance to educational institutions in carrying out 
                this paragraph.
    (e) Limitation.--The Secretary shall not carry out through the 
Service any function, power, or duty that is--
            (1) required by section 4542 to be carried out through the 
        Bureau of Ocean Energy; or
            (2) required by section 4544 to be carried out through the 
        Office of Natural Resources Revenue.

SEC. 4544. OFFICE OF NATURAL RESOURCES REVENUE.

    (a) Establishment.--There is established in the Department of the 
Interior an Office of Natural Resources Revenue (referred to in this 
section as the ``Office'') to be headed by a Director of Natural 
Resources Revenue (referred to in this section as the ``Director'').
    (b) Appointment and Compensation.--
            (1) In general.--The Director shall be appointed by the 
        Secretary of the Interior.
            (2) Compensation.--The Director shall be compensated at the 
        rate provided for level V of the Executive Schedule under 
        section 5316 of title 5, United States Code.
    (c) Duties.--
            (1) In general.--The Secretary of the Interior shall carry 
        out, through the Office, all functions, powers, and duties 
        vested in the Secretary and relating to the administration of 
        offshore royalty and revenue management functions.
            (2) Specific authorities.--The Secretary shall carry out, 
        through the Office, all functions, powers, and duties 
        previously assigned to the Minerals Management Service 
        (including the authority to develop, promulgate, and enforce 
        regulations) regarding offshore royalty and revenue collection; 
        royalty and revenue distribution; auditing and compliance; 
        investigation and enforcement of royalty and revenue 
        regulations; and asset management for onshore and offshore 
        activities.
    (d) Limitation.--The Secretary shall not carry out through the 
Office any function, power, or duty that is--
            (1) required by section 4542 to be carried out through the 
        Bureau of Ocean Energy; or
            (2) required by section 4543 to be carried out through the 
        Ocean Energy Safety Service.

SEC. 4545. ETHICS AND DRUG TESTING.

    (a) Certification.--The Secretary of the Interior shall certify 
annually that all Department of the Interior officers and employees 
having regular, direct contact with lessees, contractors, 
concessionaires, and other businesses interested before the Government 
as a function of their official duties, or conducting investigations, 
issuing permits, or responsible for oversight of energy programs, are 
in full compliance with all Federal employee ethics laws and 
regulations under the Ethics in Government Act of 1978 (5 U.S.C. App.) 
and part 2635 of title 5, Code of Federal Regulations, and all guidance 
issued under subsection (c).
    (b) Drug Testing.--The Secretary shall conduct a random drug 
testing program of all Department of the Interior personnel referred to 
in subsection (a).
    (c) Guidance.--Not later than 90 days after the date of enactment 
of this Act, the Secretary shall issue supplementary ethics and drug 
testing guidance for the employees for which certification is required 
under subsection (a). The Secretary shall update the supplementary 
ethics guidance not less than once every 3 years thereafter.

SEC. 4546. ABOLISHMENT OF MINERALS MANAGEMENT SERVICE.

    (a) Abolishment.--The Minerals Management Service is abolished.
    (b) Completed Administrative Actions.--
            (1) In general.--Completed administrative actions of the 
        Minerals Management Service shall not be affected by the 
        enactment of this Act, but shall continue in effect according 
        to their terms until amended, modified, superseded, terminated, 
        set aside, or revoked in accordance with law by an officer of 
        the United States or a court of competent jurisdiction, or by 
        operation of law.
            (2) Completed administrative action defined.--For purposes 
        of paragraph (1), the term ``completed administrative action'' 
        includes orders, determinations, memoranda of understanding, 
        memoranda of agreements, rules, regulations, personnel actions, 
        permits, agreements, grants, contracts, certificates, licenses, 
        registrations, and privileges.
    (c) Pending Proceedings.--Subject to the authority of the Secretary 
of the Interior and the officers of the Department of the Interior 
under this subtitle--
            (1) pending proceedings in the Minerals Management Service, 
        including notices of proposed rulemaking, and applications for 
        licenses, permits, certificates, grants, and financial 
        assistance, shall continue, notwithstanding the enactment of 
        this subtitle or the vesting of functions of the Service in 
        another agency, unless discontinued or modified under the same 
        terms and conditions and to the same extent that such 
        discontinuance or modification could have occurred if this 
        subtitle had not been enacted; and
            (2) orders issued in such proceedings, and appeals 
        therefrom, and payments made pursuant to such orders, shall 
        issue in the same manner and on the same terms as if this 
        subtitle had not been enacted, and any such orders shall 
        continue in effect until amended, modified, superseded, 
        terminated, set aside, or revoked by an officer of the United 
        States or a court of competent jurisdiction, or by operation of 
        law.
    (d) Pending Civil Actions.--Subject to the authority of the 
Secretary of the Interior or any officer of the Department of the 
Interior under this subtitle, pending civil actions shall continue 
notwithstanding the enactment of this subtitle, and in such civil 
actions, proceedings shall be had, appeals taken, and judgments 
rendered and enforced in the same manner and with the same effect as if 
such enactment had not occurred.
    (e) References.--References relating to the Minerals Management 
Service in statutes, Executive orders, rules, regulations, directives, 
or delegations of authority that precede the effective date of this Act 
are deemed to refer, as appropriate, to the Department, to its 
officers, employees, or agents, or to its corresponding organizational 
units or functions. Statutory reporting requirements that applied in 
relation to the Minerals Management Service immediately before the 
effective date of this subtitle shall continue to apply.

SEC. 4547. CONFORMING AMENDMENTS TO EXECUTIVE SCHEDULE PAY RATES.

    (a) Under Secretary for Energy, Lands, and Minerals.--Section 5314 
of title 5, United States Code, is amended by inserting after the item 
relating to ``Under Secretaries of the Treasury (3).'' the following:
            ``Under Secretary for Energy, Lands, and Minerals, 
        Department of the Interior.''.
    (b) Assistant Secretaries.--Section 5315 of title 5, United States 
Code, is amended by striking ``Assistant Secretaries of the Interior 
(6).'' and inserting the following:
            ``Assistant Secretaries, Department of the Interior (7).''.
    (c) Directors.--Section 5316 of title 5, United States Code, is 
amended by striking ``Director, Bureau of Mines, Department of the 
Interior.'' and inserting the following new items:
            ``Director, Bureau of Ocean Energy, Department of the 
        Interior.
            ``Director, Ocean Energy Safety Service, Department of the 
        Interior.
            ``Director, Office of Natural Resources Revenue, Department 
        of the Interior.''.

SEC. 4548. OUTER CONTINENTAL SHELF ENERGY SAFETY ADVISORY BOARD.

    (a) Establishment.--The Secretary of the Interior shall establish, 
under the Federal Advisory Committee Act, an Outer Continental Shelf 
Energy Safety Advisory Board (referred to in this section as the 
``Board'')--
            (1) to provide the Secretary and the Directors established 
        by this Act with independent scientific and technical advice on 
        safe, responsible, and timely mineral and renewable energy 
        exploration, development, and production activities; and
            (2) to review operations of the National Offshore Energy 
        Health and Safety Academy established under section 4543(d), 
        including submitting to the Secretary recommendations of 
        curriculum to ensure training scientific and technical 
        advancements.
    (b) Membership.--
            (1) Size.--The Board shall consist of not more than 11 
        members, who--
                    (A) shall be appointed by the Secretary based on 
                their expertise in oil and gas drilling, well design, 
                operations, well containment and oil spill response; 
                and
                    (B) must have significant scientific, engineering, 
                management, and other credentials and a history of 
                working in the field related to safe energy 
                exploration, development, and production activities.
            (2) Consultation and nominations.--The Secretary shall 
        consult with the National Academy of Sciences and the National 
        Academy of Engineering to identify potential candidates for the 
        Board and shall take nominations from the public.
            (3) Term.--The Secretary shall appoint Board members to 
        staggered terms of not more than 4 years, and shall not appoint 
        a member for more than 2 consecutive terms.
            (4) Balance.--In appointing members to the Board, the 
        Secretary shall ensure a balanced representation of industry 
        and research interests.
    (c) Chair.--The Secretary shall appoint the Chair for the Board 
from among its members.
    (d) Meetings.--The Board shall meet not less than 3 times per year 
and shall host, at least once per year, a public forum to review and 
assess the overall energy safety performance of Outer Continental Shelf 
mineral and renewable energy resource activities.
    (e) Offshore Drilling Safety Assessments and Recommendations.--As 
part of its duties under this section, the Board shall, by not later 
than 180 days after the date of enactment of this section and every 5 
years thereafter, submit to the Secretary a report that--
            (1) assesses offshore oil and gas well control 
        technologies, practices, voluntary standards, and regulations 
        in the United States and elsewhere; and
            (2) as appropriate, recommends modifications to the 
        regulations issued under this subtitle to ensure adequate 
        protection of safety and the environment, including 
        recommendations on how to reduce regulations and administrative 
        actions that are duplicative or unnecessary.
    (f) Reports.--Reports of the Board shall be submitted by the Board 
to the Committee on Natural Resources of the House of Representatives 
and the Committee on Energy and Natural Resources of the Senate and 
made available to the public in electronically accessible form.
    (g) Travel Expenses.--Members of the Board, other than full-time 
employees of the Federal Government, while attending a meeting of the 
Board or while otherwise serving at the request of the Secretary or the 
Director while serving away from their homes or regular places of 
business, may be allowed travel expenses, including per diem in lieu of 
subsistence, as authorized by section 5703 of title 5, United States 
Code, for individuals in the Government serving without pay.

SEC. 4549. OUTER CONTINENTAL SHELF INSPECTION FEES.

    Section 22 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1348) is amended by adding at the end of the section the following:
    ``(g) Inspection Fees.--
            ``(1) Establishment.--The Secretary of the Interior shall 
        collect from the operators of facilities subject to inspection 
        under subsection (c) non-refundable fees for such inspections--
                    ``(A) at an aggregate level equal to the amount 
                necessary to offset the annual expenses of inspections 
                of outer Continental Shelf facilities (including mobile 
                offshore drilling units) by the Department of the 
                Interior; and
                    ``(B) using a schedule that reflects the 
                differences in complexity among the classes of 
                facilities to be inspected.
            ``(2) Ocean energy safety fund.--There is established in 
        the Treasury a fund, to be known as the `Ocean Energy 
        Enforcement Fund' (referred to in this subsection as the 
        `Fund'), into which shall be deposited all amounts collected as 
        fees under paragraph (1) and which shall be available as 
        provided under paragraph (3).
            ``(3) Availability of fees.--
                    ``(A) In general.--Notwithstanding section 3302 of 
                title 31, United States Code, all amounts deposited in 
                the Fund--
                            ``(i) shall be credited as offsetting 
                        collections;
                            ``(ii) shall be available for expenditure 
                        for purposes of carrying out inspections of 
                        outer Continental Shelf facilities (including 
                        mobile offshore drilling units) and the 
                        administration of the inspection program under 
                        this section;
                            ``(iii) shall be available only to the 
                        extent provided for in advance in an 
                        appropriations Act; and
                            ``(iv) shall remain available until 
                        expended.
                    ``(B) Use for field offices.--Not less than 75 
                percent of amounts in the Fund may be appropriated for 
                use only for the respective Department of the Interior 
                field offices where the amounts were originally 
                assessed as fees.
            ``(4) Initial fees.--Fees shall be established under this 
        subsection for the fiscal year in which this subsection takes 
        effect and the subsequent 10 years, and shall not be raised 
        without advise and consent of the Congress, except as 
        determined by the Secretary to be appropriate as an adjustment 
        equal to the percentage by which the Consumer Price Index for 
        the month of June of the calendar year preceding the adjustment 
        exceeds the Consumer Price Index for the month of June of the 
        calendar year in which the claim was determined or last 
        adjusted.
            ``(5) Annual fees.--Annual fees shall be collected under 
        this subsection for facilities that are above the waterline, 
        excluding drilling rigs, and are in place at the start of the 
        fiscal year. Fees for fiscal year 2014 shall be--
                    ``(A) $10,500 for facilities with no wells, but 
                with processing equipment or gathering lines;
                    ``(B) $17,000 for facilities with 1 to 10 wells, 
                with any combination of active or inactive wells; and
                    ``(C) $31,500 for facilities with more than 10 
                wells, with any combination of active or inactive 
                wells.
            ``(6) Fees for drilling rigs.--Fees for drilling rigs shall 
        be assessed under this subsection for all inspections completed 
        in fiscal years 2014 through 2023. Fees for fiscal year 2014 
        shall be--
                    ``(A) $30,500 per inspection for rigs operating in 
                water depths of 1,000 feet or more; and
                    ``(B) $16,700 per inspection for rigs operating in 
                water depths of less than 1,000 feet.
            ``(7) Billing.--The Secretary shall bill designated 
        operators under paragraph (5) within 60 days after the date of 
        the inspection, with payment required within 30 days of 
        billing. The Secretary shall bill designated operators under 
        paragraph (6) within 30 days of the end of the month in which 
        the inspection occurred, with payment required within 30 days 
        after billing.
            ``(8) Sunset.--No fee may be collected under this 
        subsection for any fiscal year after fiscal year 2023.
            ``(9) Annual reports.--
                    ``(A) In general.--Not later than 60 days after the 
                end of each fiscal year beginning with fiscal year 
                2015, the Secretary shall submit to the Committee on 
                Energy and Natural Resources of the Senate and the 
                Committee on Natural Resources of the House of 
                Representatives a report on the operation of the Fund 
                during the fiscal year.
                    ``(B) Contents.--Each report shall include, for the 
                fiscal year covered by the report, the following:
                            ``(i) A statement of the amounts deposited 
                        into the Fund.
                            ``(ii) A description of the expenditures 
                        made from the Fund for the fiscal year, 
                        including the purpose of the expenditures and 
                        the additional hiring of personnel.
                            ``(iii) A statement of the balance 
                        remaining in the Fund at the end of the fiscal 
                        year.
                            ``(iv) An accounting of pace of permit 
                        approvals.
                            ``(v) If fee increases are proposed after 
                        the initial 10-year period referred to in 
                        paragraph (5), a proper accounting of the 
                        potential adverse economic impacts such fee 
                        increases will have on offshore economic 
                        activity and overall production, conducted by 
                        the Secretary.
                            ``(vi) Recommendations to increase the 
                        efficacy and efficiency of offshore 
                        inspections.
                            ``(vii) Any corrective actions levied upon 
                        offshore inspectors as a result of any form of 
                        misconduct.''.

SEC. 4550. PROHIBITION ON ACTION BASED ON NATIONAL OCEAN POLICY 
              DEVELOPED UNDER EXECUTIVE ORDER NO. 13547.

    (a) Prohibition.--The Bureau of Ocean Energy and the Ocean Energy 
Safety Service may not develop, propose, finalize, administer, or 
implement, any limitation on activities under their jurisdiction as a 
result of the coastal and marine spatial planning component of the 
National Ocean Policy developed under Executive Order No. 13547.
    (b) Report on Expenditures.--Not later than 60 days after the date 
of enactment of this Act, the President shall submit a report to the 
Committee on Natural Resources of the House of Representatives and the 
Committee on Energy and Natural Resources of the Senate identifying all 
Federal expenditures in fiscal years 2011, 2012, 2013, and 2014, by the 
Bureau of Ocean Energy and the Ocean Energy Safety Service and their 
predecessor agencies, by agency, account, and any pertinent 
subaccounts, for the development, administration, or implementation of 
the coastal and marine spatial planning component of the National Ocean 
Policy developed under Executive Order No. 13547, including staff time, 
travel, and other related expenses.

                  CHAPTER 5--UNITED STATES TERRITORIES

SEC. 4551. APPLICATION OF OUTER CONTINENTAL SHELF LANDS ACT WITH 
              RESPECT TO TERRITORIES OF THE UNITED STATES.

    Section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 1331) 
is amended--
            (1) in paragraph (a), by inserting after ``control'' the 
        following: ``or lying within the United States exclusive 
        economic zone and the Continental Shelf adjacent to any 
        territory of the United States'';
            (2) in paragraph (p), by striking ``and'' after the 
        semicolon at the end;
            (3) in paragraph (q), by striking the period at the end and 
        inserting ``; and''; and
            (4) by adding at the end the following:
    ``(r) The term `State' includes each territory of the United 
States.''.

                  CHAPTER 6--MISCELLANEOUS PROVISIONS

SEC. 4561. RULES REGARDING DISTRIBUTION OF REVENUES UNDER GULF OF 
              MEXICO ENERGY SECURITY ACT OF 2006.

    (a) In General.--Not later than 60 days after the date of enactment 
of this Act, the Secretary of the Interior shall issue rules to provide 
more clarity, certainty, and stability to the revenue streams 
contemplated by the Gulf of Mexico Energy Security Act of 2006 (43 
U.S.C. 1331 note).
    (b) Contents.--The rules shall include clarification of the timing 
and methods of disbursements of funds under section 105(b)(2) of such 
Act.

SEC. 4562. AMOUNT OF DISTRIBUTED QUALIFIED OUTER CONTINENTAL SHELF 
              REVENUES.

    Section 105(f)(1) of the Gulf of Mexico Energy Security Act of 2006 
(title I of division C of Public Law 109-432; 43 U.S.C. 1331 note) 
shall be applied by substituting ``2024, and shall not exceed 
$999,999,999 for each of fiscal years 2025 through 2056'' for ``2055''.

                       CHAPTER 7--JUDICIAL REVIEW

SEC. 4571. TIME FOR FILING COMPLAINT.

    (a) In General.--Any cause of action that arises from a covered 
energy decision must be filed not later than the end of the 60-day 
period beginning on the date of the covered energy decision. Any cause 
of action not filed within this time period shall be barred.
    (b) Exception.--Subsection (a) shall not apply to a cause of action 
brought by a party to a covered energy lease.

SEC. 4572. DISTRICT COURT DEADLINE.

    (a) In General.--All proceedings that are subject to section 4571--
            (1) shall be brought in the United States district court 
        for the district in which the Federal property for which a 
        covered energy lease is issued is located or the United States 
        District Court of the District of Columbia;
            (2) shall be resolved as expeditiously as possible, and in 
        any event not more than 180 days after such cause or claim is 
        filed; and
            (3) shall take precedence over all other pending matters 
        before the district court.
    (b) Failure To Comply With Deadline.--If an interlocutory or final 
judgment, decree, or order has not been issued by the district court by 
the deadline described under this section, the cause or claim shall be 
dismissed with prejudice and all rights relating to such cause or claim 
shall be terminated.

SEC. 4573. ABILITY TO SEEK APPELLATE REVIEW.

    An interlocutory or final judgment, decree, or order of the 
district court in a proceeding that is subject to section 4571 may be 
reviewed by the U.S. Court of Appeals for the District of Columbia 
Circuit. The D.C. Circuit shall resolve any such appeal as 
expeditiously as possible and, in any event, not more than 180 days 
after such interlocutory or final judgment, decree, or order of the 
district court was issued.

SEC. 4574. LIMITATION ON SCOPE OF REVIEW AND RELIEF.

    (a) Administrative Findings and Conclusions.--In any judicial 
review of any Federal action under this chapter, any administrative 
findings and conclusions relating to the challenged Federal action 
shall be presumed to be correct unless shown otherwise by clear and 
convincing evidence contained in the administrative record.
    (b) Limitation on Prospective Relief.--In any judicial review of 
any action, or failure to act, under this chapter, the Court shall not 
grant or approve any prospective relief unless the Court finds that 
such relief is narrowly drawn, extends no further than necessary to 
correct the violation of a Federal law requirement, and is the least 
intrusive means necessary to correct the violation concerned.

SEC. 4575. LEGAL FEES.

    Any person filing a petition seeking judicial review of any action, 
or failure to act, under this chapter who is not a prevailing party 
shall pay to the prevailing parties (including intervening parties), 
other than the United States, fees and other expenses incurred by that 
party in connection with the judicial review, unless the Court finds 
that the position of the person was substantially justified or that 
special circumstances make an award unjust.

SEC. 4576. EXCLUSION.

    This chapter shall not apply with respect to disputes between the 
parties to a lease issued pursuant to an authorizing leasing statute 
regarding the obligations of such lease or the alleged breach thereof.

SEC. 4577. DEFINITIONS.

    In this chapter, the following definitions apply:
            (1) Covered energy decision.--The term ``covered energy 
        decision'' means any action or decision by a Federal official 
        regarding the issuance of a covered energy lease.
            (2) Covered energy lease.--The term ``covered energy 
        lease'' means any lease under this subtitle or under an oil and 
        gas leasing program under this subtitle.
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