(4) COLLECTION OF DATA FROM OTHER AGEN-
CIES, PERSONS, ETC.—Subject to other applicable
provisions of law, the Director, in carrying out re-
sponsibilities under this Act, may collect data from
such Federal agencies, State or local governments or
instrumentalities, Indian tribes, businesses, and
other individuals, persons, organizations, and insti-
tutions as the Director considers appropriate.
(5) USE
OF
DATA
COLLECTED
BY
FEDERAL
AGENCIES.—
(A) IN GENERAL.—The Director may—
(i) use data collected by any Federal
agency, and
(ii) enter into interagency or intra-
agency agreements for the collection of
data for the purposes of this section.
(B) PROVISION OF DATA TO DIRECTOR.—
Subject to applicable law, all Federal agencies
(including agencies in the Department) shall
provide to the Director, in a timely manner and
to the extent possible in a usable electronic for-
mat, any data that the Director requires to
carry out responsibilities under this Act.
(C) 
COOPERATIVE
COLLECTION
OF
DATA.—The Director may—
(i) arrange with any agency, organiza-
tion, or institution for the cooperative col-
lection of data for the purposes of this sec-
tion, and
(ii) assign employees of the Bureau to
any such agency, organization, or institu-
tion to assist in such collection.
(6) OBTAINING EMPLOYEES AND SERVICES.—
The Director—
(A) may select, appoint, and employ such
officers and employees as may be necessary to
carry out the functions of the Bureau, subject
to—
(i) the provisions of title 5, United
States Code, governing appointments in
the competitive service, and
(ii) the provisions of chapter 51 and
subchapter III of chapter 53 of such title
relating to classification and General
Schedule pay rates; and
(B) may obtain services as authorized by
section 3109 of title 5, United States Code, at
a rate not to exceed the equivalent daily rate
payable for level V of the Executive Schedule
under section 5316 of such title.
(e) STAFF.—The Secretary shall ensure that the Bu-
reau of Environmental Statistics has staff sufficient to en-
able the Director to efficiently carry out the duties of the
Director.
(f) CONTINUING PERFORMANCE OF FUNCTIONS OF
DIRECTOR.—An individual who, on the effective date of
this Act, is performing any of the functions required by
this section to be performed by the Director may continue
to perform such functions until such functions are as-
signed to an individual appointed as the Director under
this Act.
(g) AVAILABILITY OF DIRECTOR TO CONGRESS; SPE-
CIAL REPORTS.—The Director—
(1) shall be available to the Congress to provide
testimony on subjects under the authority of the Di-
rector as any committee of the Congress may re-
quest, including on environmental quality data and
related measures of public health and analyses
thereof;
(2) shall, notwithstanding any limitation con-
tained in this section or any other provision of law,
make available to any committee of the Congress
having jurisdiction over any program of the Depart-
ment, upon written request of the committee, any in-
formation reported or otherwise obtained, and any
evaluation or analysis made, by the Director or any
officer or employee of the Bureau under this section
that relates to that program; and
(3) may provide, and charge for, statistical
records, compilations, surveys, and reports to State
and local officials, public and private organizations,
and individuals.
(h) CONFIDENTIALITY OF INFORMATION.—
(1) IN GENERAL.—The Director may not make
public any information obtained under this section
that is exempt from disclosure pursuant to sub-
section (b)(4) of section 552 of title 5, United States
Code, except as provided in subsection (d) of that
section and this section.
(2) ACCESS TO INFORMATION IN POSSESSION
OF OTHER FEDERAL AGENCY.—In furtherance and
not in limitation of any other authority, the Direc-
tor, on behalf of the Secretary, shall have access to
environmental and health related economic and sta-
tistical information in the possession of the Depart-
ment or any other Federal agency, except informa-
tion—
(A) the disclosure of which to another Fed-
eral agency is expressly prohibited by law; or
(B) the disclosure of which the agency hav-
ing possession determines would significantly
impair the discharge of authorities and respon-
sibilities that have been delegated to, or vested
by law, in such agency.
(3) OBTAINING
INFORMATION
TO
WHICH
AC-
CESS IS DENIED.—In any case in which the Director
is denied information that is necessary to achieve
the purposes of this Act, the Director shall take ap-
propriate action, pursuant to paragraph (2), to ob-
tain such information from the original sources of
the information or an alternate source. Such an al-
ternate source shall be notified of the reason for any
request under this paragraph for information.
(4) DISCLOSURE OF INFORMATION TO FEDERAL
AGENCIES.—Notwithstanding paragraphs (1) and
(2) and section 552(b)(4) of title 5, United States
Code, the Director may disclose any information ob-
tained under this section to—
(A) the General Accounting Office; and
(B) any department or agency of the Fed-
eral Government that requests the information
to carry out its lawful functions.
(5) CONTINUING APPLICATION OF OTHER RE-
STRICTIONS.—Any information disclosed by the Di-
rector under paragraph (4) shall continue thereafter
to be subject to any restriction, requirement, or con-
dition regarding the use or disclosure of the infor-
mation that applies to the Department.
(i) ESTABLISHMENT
OF
PUBLIC
PARTICIPATION
PROCESS.—The Director shall establish an ongoing bal-
anced process for obtaining public advice, guidance, and
recommendations on the implementation of the functions
of the Director.
(j) PEER REVIEW OF BUREAU.—
(1) REVIEW
REQUIREMENT.—The statistical
procedures and methodology of the Bureau shall be
subject to an annual peer review. Such review shall
be conducted by a Peer Review Team, which shall
prepare and submit to the President and the Con-
gress a report describing its investigation and find-
ings.
(2) PEER
REVIEW
TEAM.—The Peer Review
Team shall consist of at least 5 professionally quali-
fied persons who are officers or employees of the
United States, of whom at least—
(A) one shall be designated by the Director
of the Bureau of the Census;
(B) one shall be designated by the Com-
missioner of Labor Statistics;
(C) one shall be designated by the Director
of the National Center for Health Statistics;
(D) one shall be designated by the Admin-
istrator of the Energy Information Administra-
tion; and
(E) one shall be designated by the Comp-
troller General of the United States.
(3) CHAIRMAN.—The member of the Peer Re-
view Team appointed under paragraph (2)(E) shall
be the Chairman of the Team.
(4) RESPONSIBILITIES OF DIRECTOR AND SEC-
RETARY.—The Director and the Secretary—
(A) shall cooperate fully with the Peer Re-
view Team; and
(B) notwithstanding any other provisions
of law, shall make available to the Peer Review
Team such relevant data, information, docu-
ments, and services as the Peer Review Team
determines are necessary for successful comple-
tion of its peer review.
(5) CONFIDENTIALITY OF INFORMATION.—In-
formation made available to the Peer Review Team
under paragraph (4)(B) shall be subject to the con-
fidentiality standards applicable to the information
under subsection (h).
(k) SPECIFICATION IN BUDGET OF PROPOSED AP-
PROPRIATIONS.—The President shall include in each
budget submitted under section 1105 of title 31, United
States Code—
(1) an estimate of expenditures and appropria-
tions necessary to carry out this section for the fis-
cal year covered by the budget; and
(2) a statement of the difference, if any, be-
tween the estimate under paragraph (1) and the ap-
propriation request for the fiscal year that is submit-
ted to the President by the Director under section
1108 of that title.
SEC. 112. OFFICE OF ENVIRONMENTAL JUSTICE.
(a) OFFICE
OF ENVIRONMENTAL JUSTICE.—The
Secretary shall establish in the Department an Office of
Environmental Justice (hereinafter in this section referred
to as the ‘‘Office’’), which shall be independent of the De-
partment’s single-medium program offices but shall have
the authority to advise such offices about environmental
justice matters. The Office shall be under the direction
of a Director appointed by the President, with the advice
and consent of the Senate. The Director shall be com-
pensated at level V of the Executive Schedule under sec-
tion 5316 of title 5, United States Code.
(b) FUNCTIONS.—The Director shall develop and,
with the approval of the Secretary, implement a strategy
to promote, to the greatest extent practicable and consist-
ent with the provisions of this section and other provisions
of law applicable to the Department, environmental justice
for all people wherever they are located or work in the
United States, and regardless of income, race, ethnicity,
or national origin.
(c) ENVIRONMENTAL JUSTICE ADVISORY COMMIT-
TEE.—
(1) ESTABLISHMENT
OF
ADVISORY
COMMIT-
TEE.—The Secretary shall establish an Advisory
Committee on Environmental Justice (hereinafter in
this subsection referred to as the ‘‘Committee’’),
which shall advise the Secretary and the Director on
matters relating to the strategic direction, policies,
and programs of the Department under this section.
(2) APPOINTMENTS.—
(A) MEMBERSHIP.—The Committee shall
be composed of not more than 15 members ap-
pointed by the Secretary. The Director and the
Secretary (or their designees) shall be ex officio
members of the Committee. The Secretary
shall, in appointing members of the Commit-
tee—
(i) ensure that the Committee is fairly
balanced with respect to points of view rep-
resented and with regard to racial, gender,
ethnic, and geographic representation;
(ii) include individuals who have
knowledge of, and experience with, environ-
mental conditions in racial minority, ethnic
minority, or moderate- and low-income
communities;
(iii) include individuals who are recog-
nized experts in the fields of environmental
law, socioeconomic analysis, health and en-
vironmental effects, exposure evaluation,
and environmental health science research;
and
(iv) include individuals who represent
the regulated community, labor, commu-
nity-based groups, Federal, State, and
local governments, Indian tribes, and other
entities that the Secretary determines to be
appropriate.
(B) TERMS.—Except as provided in sub-
paragraph (C), members of the Board shall be
appointed for a 3-year term, and may be
reappointed for 1 additional term. Appointees
to vacancies shall serve for the remainder of the
original member’s term.
(C) STAGGERED TERMS.—Of the members
first appointed to the Committee—
(i) 1⁄3 shall be appointed for a 1-year
term; and
(ii) 1⁄3 shall be appointed for a 2-year
term.
SEC. 113. SCIENTIFIC INTEGRITY.
(a) IN GENERAL.—The Secretary, in carrying out re-
sponsibilities of the Secretary under this Act and any
other Act that applies to the Department, shall—
(1) provide for the development and acquisition
of the best credible and unbiased scientific informa-
tion, and make such information available on a time-
ly basis, for use by, and guidance of, the Secretary;
and
(2) develop, publish, and implement, within 18
months after the date of the enactment of this Act,
meaningful peer review and quality assurance guide-
lines and policies for improved performance of the
Department and its activities, which guidelines and
policies shall identify, to the greatest extent possible,
the types or categories of science-based, science-de-
pendent, and technical products that will be subject
to them.
(b) PRODUCTS DEFINED.—In subsection (a)(2), the
term products—
(1) includes studies, reports, models, analyses,
and other publications used to support rulemaking;
and
(2) does not include the promulgation of a rule,
the issuance or denial of a permit, or the taking of
enforcement actions.
(c) LIMITATION ON LEGAL EFFECT.—This section
shall not be the basis for challenging actions taken under
other provisions of law, or the cause of delay of any action
required to meet a statutory or court-imposed deadline.
SEC. 114. CONFLICTS OF INTEREST OF MEMBERS OF ADVI-
SORY COMMITTEES.
(a) CONFLICTS OF INTEREST REPORTING REQUIRE-
MENTS.—Each member of an advisory committee of the
Department who is not an officer or employee of the Fed-
eral Government shall file with the Secretary an annual
written report disclosing—
(1) the member’s principal employment;
(2) all other corporations, companies, firms,
partnerships, business enterprises, research organi-
zations, educational institutions, or other entities in
or to which the member serves as an employee, offi-
cer, adviser, director, owner, or consultant, including
a description of the nature of the member’s service,
but only to the extent the entity or relationship is
relevant to the purposes and functions of the advi-
sory committee; and
(3) the identity, but not the value or amount,
of any sources of income or financial interests of the
member that are or may be relevant to the purposes
and functions of the advisory committee.
(b) PUBLIC ACCESS TO REPORTS.—The Secretary
shall, within 15 days after receiving any report under this
section, permit inspection of such report by, or furnish a
copy of such report to, any person requesting such inspec-
tion or copy, subject to the terms and conditions estab-
lished by section 104 of the Ethics in Government Act of
1978 (2 U.S.C. 704) for reports filed under that Act.
(c) BALANCED REPRESENTATION REQUIREMENT.—
(1) IN GENERAL.—The membership of each ad-
visory committee appointed by the Department shall
be balanced in terms of the points of view rep-
resented and the functions to be performed by the
advisory committee. In order to meet this require-
ment, each such advisory committee shall have rep-
resentatives appointed from among the following
groups:
(A) The affected industry.
(B) 
Consumer, 
labor, 
environmental,
health, and public interest groups.
(C) State and local governments and In-
dian tribes.
(2) TREATMENT
OF
CATEGORIES.—The cat-
egories described in paragraphs (1) (A), (B), and
(C)—
(A) are not exclusive, and
(B) may each be waived by the appointing
authority if a determination is made in writing
explaining why the category is not germane to
the work of the advisory committee.
(3) JUDICIAL REVIEW.—A determination under
paragraph (2)(B) is subject to judicial review.
(d) ADVISORY COMMITTEE COMPENSATION.—
(1) IN GENERAL.—Subject to paragraph (2),
the Secretary may pay members of advisory commit-
tees of the Department at rates for individuals not
to exceed the per diem rate equivalent to the rate for
level V of the Executive Schedule under section 5316
of title 5, United States Code.
(2) CONDITION.—The Secretary may not pay
compensation to an individual under paragraph (1)
unless compensation is necessary because—
(A) the services of the individual are con-
sidered by the Secretary to be essential;
(B) failure to pay compensation would con-
stitute a financial hardship for the individual;
or
(C) the individual has professional exper-
tise that may not be obtained without com-
pensation.
SEC. 115. LIMITATION ON SCOPE OF CERTAIN UMBRELLA
CONTRACTS BY DEPARTMENT FOR ADVISORY
AND ASSISTANCE SERVICES.
(a) ENSURING COMPETITION FOR UMBRELLA CON-
TRACTS.—The Department may enter into an umbrella
contract only under the following conditions:
(1) The period covered by the contract does not
exceed—
(A) in the case of a response action con-
tract (as that term is defined in section 119(e)
of the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42
U.S.C. 9619(e), as in effect on the date of the
enactment of this Act), 10 years; or
(B) in the case of any other contract—
(i) 5 years; or
(ii) such longer period as may be
specified by the Secretary, if the Secretary
determines in writing that unusual and
compelling circumstances exist justifying
an umbrella contract for a longer period.
(2) Except as provided in subsection (e), the
contract is awarded pursuant to full and open com-
petition (as that term is defined in section 4 of the
Office Federal Procurement Policy Act (41 U.S.C.
403)), unless the Secretary determines in writing
that—
(A) the services to be procured under the
contract are available from only one responsible
source and no other type of services will satisfy
the needs of the Department; or
(B) the Department’s need for the services
to be provided under the contract is of such an
unusual and compelling urgency that the Gov-
ernment would be seriously injured unless the
Department is permitted to limit the number of
sources from which it solicits bids or proposals.
(3) The contract does not authorize the con-
tractor to procure items on behalf of the Govern-
ment, except that the contract may authorize the
contractor to procure personal property if—
(A) it is procured under a response action
contract referred to in paragraph (1),
(B) it is procured for the performance of
the contract, and
(C) all right, title, and interest in the prop-
erty vests in the Government.
(b) PROHIBITION OF ‘‘CONTRACT SHOPPING’’.—
(1) LIMITATION.—Task orders may be made
under an umbrella contract awarded by the Depart-
ment only to carry out the mission of the office,
function, or program that requested the umbrella
contract.
(2) WAIVER.—The Secretary (or a designee
who is an officer of the Department at or above the
level of the senior procurement executive of the De-
partment designated pursuant to section 16(3) of
the Office Federal Procurement Policy Act (41
U.S.C. 414(3)) may waive the application of the lim-
itation set forth in paragraph (1) to a task order if
he or she determines in writing that—
(A) the task order is within the scope of
the umbrella contract;
(B) there is an identifiable emergency or
other urgent requirement that cannot be met by
other means; and
(C) there is no other contract available to
the office seeking the waiver that is suitable for
the task order.
(3) APPLICATION.—Paragraph (1) does not
apply to any contract which is determined by the
Secretary in writing, before the award of the con-
tract, as being necessary to meet the needs of more
than one office, function, or program.
(c) FOLLOW-ON COMPETITION.—Statements of work
in an umbrella contract awarded by the Department shall
be prepared so as to ensure full and open competition (as
that term is defined in section 4 of the Office Federal Pro-
curement Policy Act (41 U.S.C. 403) for any new contract
that results from, completes, or supplements the work per-
formed under the umbrella contract.
(d) SUBCONTRACTORS.—
(1) IDENTIFICATION
OF
SUBCONTRACTORS.—
Any solicitation for an umbrella contract awarded by
the Department shall require that all offerors iden-
tify in their proposals all prospective subcontractors
and the qualifications of those subcontractors.
(2) RESTRICTION
ON
ELIGIBILITY
FOR
SUB-
CONTRACTS.—A person who is not identified as a
prospective subcontractor in accordance with para-
graph (1) by the prime contractor for an umbrella
contract awarded by the Department shall not be eli-
gible to perform any task order as a subcontractor
under the umbrella contract.
(3) WAIVER.—
(A) The Secretary (or a designee who is an
officer of the Department at or above the level
of the senior procurement executive of the De-
partment designated pursuant to section 16(3)
of the Office of Federal Procurement Policy Act
(41 U.S.C. 414(3)) may waive the application
of the restriction set forth in paragraph (2) to
a task order if the Secretary determines in writ-
ing that unusual circumstances exist making
such a waiver in the interests of the Govern-
ment.
(B) For purposes of subparagraph (A), the
term ‘‘unusual circumstances’’ means—
(i) insolvency, nonresponsibility, sus-
pension, or debarment of all subcontractors
identified pursuant to paragraph (1) that
are qualified to perform a task order for
which the waiver is granted;
(ii) a lack of any technical skills nec-
essary to perform the task order for which
the waiver is granted, by all subcontractors
identified pursuant to paragraph (1);
(iii) other circumstances similar to
those referred to in clauses (i) and (ii); or
(iv) any identifiable emergency or
other urgent requirement determined by
the Secretary in writing to exist.
(4) COMPETITION.—In any case in which the
Secretary or his or her designee grants a waiver
under paragraph (3), the award by the prime con-
tractor to the subcontractor of a subcontract to per-
form a task for which the waiver is granted shall be
on a competitive basis unless the written determina-
tion under paragraph (3)—
(A) approves a noncompetitive award; and
(B) includes a finding that—
(i) an identifiable emergency or other
urgent requirement exists; or
(ii) no other qualified source is rea-
sonably available.
(5) LIMITATION ON APPLICATION.—This sub-
section shall not apply to a response action contract
(as that term is defined in section 119(e) of the
Comprehensive Environmental Response, Compensa-
tion, and Liability Act of 1980 (42 U.S.C. 9619(e)),
as in effect on the date of the enactment of this
Act).
(e) PROVISIONS NOT AFFECTED.—Nothing in this
section shall be construed as amending, modifying, or su-
perseding, or is intended to impair or restrict authorities
or responsibilities under—
(1) title IX of the Federal Property and Admin-
istrative Services Act of 1949 (40 U.S.C. 541 et
seq.), commonly referred to as the ‘‘Brooks Archi-
tect-Engineers Act’’;
(2) the Small Business Act (15 U.S.C. 631 et
seq.), including section 8(a) of that Act (15 U.S.C.
637(a)); or
(3) title X of the Act of November 15, 1990
(42 U.S.C. 7601 note), popularly known as the
‘‘Clean Air Act Amendments of 1990’’, relating to
disadvantaged business concerns.
(f) DEFINITIONS.—In this section—
(1) the term ‘‘advisory and assistance serv-
ices’’—
(A) means services to support or im-
prove—
(i) agency policy development, deci-
sionmaking, management, and administra-
tion; or
(ii) the operation of management sys-
tems; and
(B) includes—
(i) management and professional sup-
port services;
(ii) the conduct of studies, analyses,
and evaluations; and
(iii) engineering and technical serv-
ices, including services provided under a
response action contract (as that term is
used in subsection (a)(1)(B)); and
(2) the term ‘‘umbrella contract’’ means a con-
tract by the Department that—
(A) provides for the performance of spe-
cific advisory and assistance services;
(B) does not procure or specify a firm
quantity of services;
(C) provides for services to be supplied to
the Government in response to specific task or-
ders to the contractor from the Government;
(D) requires the contractor to provide a
stated amount of effort over a given period of
time (commonly referred to as a ‘‘level of effort
contract’’);
(E) has a maximum potential value of
more than $1,000,000 and is not a fixed price
contract; and
(F) is for a period longer than 1 year.
(g) LIMITATION ON APPLICATION TO EXISTING CON-
TRACTS.—
(1) IN GENERAL.—Except as provided in para-
graph (2), this section shall not apply to a contract
entered into before the effective date of this section.
(2) 
CONTRACTING
REQUIREMENTS.—Sub-
sections (b) and (c) shall apply to—
(A) a task order or work assignment added
on or after the effective date of this section to
a contract entered into before that effective
date; and
(B) a contract that is extended, or for
which an option to renew is exercised, on or
after the effective date of this section.
(h) PUBLIC AVAILABILITY.—Waivers granted under
this section shall be available as provided in section 552(b)
of title 5, United States Code.
SEC. 116. PROHIBITION ON TRANSFERRING TO CONTRAC-
TORS INHERENTLY GOVERNMENTAL FUNC-
TIONS OF DEPARTMENT.
(a) POLICY.—It shall be the policy of the Department
to prevent the transfer of inherently governmental func-
tions of the Department to private sector contractors and
to ensure that inherently governmental functions of the
Department are performed only by officers and employees
of the Department or other agencies and instrumentalities
of the Government.
(b) FINAL ACTIONS.—Final actions of the Depart-
ment shall reflect the independent conclusions of Depart-
ment officials.
(c) RESPONSIBILITIES
OF
THE SECRETARY.—The
Secretary shall—
(1) ensure that the Department is in full com-
pliance with all statutes and regulations that govern
the performance of inherently Governmental func-
tions, including by periodically reviewing the oper-
ations of the Department with regard to compliance
with statutes and regulations governing performance
of inherently governmental functions (including this
section);
(2) ensure that no contract is solicited or
awarded by the Department, and no order is made
under a contract awarded by the Department, that
(1) any substantive or procedural basis on
which to challenge any agency action or inaction; or
(2) any right or benefit enforceable by law.
(e) LIMITATION ON APPLICATION.—
(1) IN GENERAL.—Except as provided in para-
graph (2), this section shall not apply to an inher-
ently governmental function performed under a con-
tract entered into before the effective date of that
section.
(2) 
INHERENTLY
GOVERNMENTAL
FUNC-
TIONS.—This section shall apply to an inherently
governmental function performed or sought to be
performed—
(A) under a task added on or after the ef-
fective date of that section to a contract entered
into before that effective date;
(B) under an order made on or after the
effective date of that section under a contract
entered into before that effective date; or
(C) on or after the effective date of that
section under a contract that is extended, or for
which an option to renew is exercised, on or
after that effective date.
(f) RELATIONSHIP TO OTHER LAW.—The require-
ments of this section are in addition to, and do not super-
sede or affect, other provisions of law.
SEC. 117. DISALLOWANCE OF, AND PENALTIES FOR, IM-
PROPERLY CLAIMED COSTS UNDER DEPART-
MENT CONTRACTS AND REGULATIONS.
(a) COSTS DISALLOWED.—If a contractor under a
covered contract submits a proposal for settlement of indi-
rect costs incurred by the contractor for any period after
such costs have been accrued, and if that proposal includes
the submission of a cost which is unallowable because the
cost violates a cost principle in the Federal Acquisition
Regulation promulgated under section 25 of the Office of
Federal Procurement Policy Act (41 U.S.C. 421) or in the
Department’s supplement to the Federal Acquisition Reg-
ulation, or violates a provision of statute, the cost shall
be disallowed.
(b) PENALTIES.—
(1) IN GENERAL.—If the Secretary determines
that a cost submitted by a contractor under a cov-
ered contract in its proposal for settlement is ex-
pressly unallowable under a cost principle referred to
in subsection (a) that defines the allowability of spe-
cific selected costs, the Secretary shall assess a pen-
alty against the contractor in an amount equal to—
(A) the amount of the disallowed cost allo-
cated to covered contracts for which a proposal
for settlement of indirect costs has been submit-
ted; plus
(B) interest to compensate the United
States for the use of any funds which the con-
tractor has been paid in excess of the amount
to which the contractor was entitled.
(2) INCREASED PENALTY.—If the Secretary de-
termines that a proposal for settlement of indirect
costs submitted by a contractor under a covered con-
tract includes a cost determined to be unallowable in
the case of such contractor before the submission of
such proposal, the Secretary shall assess a penalty
against the contractor in an amount equal to twice
the amount of the disallowed cost allocated to cov-
ered contracts for which a proposal for settlement of
indirect costs has been submitted.
(c) WAIVER
OF PENALTIES.—The Secretary may
waive a penalty under subsection (b) in the case of a con-
tractor’s proposal for settlement of indirect costs if—
(1) the contractor withdraws the proposal be-
fore the formal initiation of an audit of the proposal
by the Government and resubmits a revised pro-
posal;
(2) the amount of unallowable costs subject to
the penalty is insignificant; or
(3) the contractor demonstrates, to the con-
tracting officer’s satisfaction, that—
(A) it has established appropriate policies
and personnel training and an internal control
and review system that provide assurance that
unallowable costs subject to penalties are pre-
cluded from being included in the contractor’s
proposal for settlement of indirect costs; and
(B) the unallowable costs subject to the
penalty were inadvertently incorporated into the
proposal.
Such waivers shall be available in accordance with section
552(b) of title 5, United States Code.
(d) DEPARTMENT ACTIONS.—An action of the Sec-
retary under subsection (a) or (b)—
(1) shall be considered a final decision for pur-
poses of section 6 of the Contract Disputes Act of
1978 (41 U.S.C. 605); and
(2) is appealable in the manner provided in sec-
tion 7 of that Act (41 U.S.C. 606).
(e) CERTIFICATION.—
(1) IN GENERAL.—A proposal for settlement of
indirect costs applicable to a covered contract shall
include a certification by an official of the contractor
that, to the best of the certifying official’s knowledge
and belief, all indirect costs included in the proposal
are allowable.
(2) WAIVER
OF
CERTIFICATION
REQUIRE-
MENT.—The Secretary may, in an exceptional case,
waive the requirement for certification under para-
graph (1) in the case of any covered contract if the
Secretary—
(A) determines in such case that it would
be in the interest of the United States to waive
such determination; and
(B) states in writing the reasons for that
determination and makes such determination
available to the public.
Such waivers shall be available in accordance with section
552(b) of title 5, United States Code.
(f) CRIMINAL PENALTIES.—The submission to the
Department of a proposal for settlement of costs for any
period after such costs have been accrued that includes
a cost that is expressly specified by law or regulation as
being unallowable, with the knowledge that such cost is
unallowable, shall be subject to the provisions of section
287 of title 18 and section 3729 of title 31, United States
Code.
(g) BURDEN OF PROOF IN PROCEEDINGS.—In a pro-
ceeding before a board of contract appeals, the United
States Court of Federal Claims, or any other Federal
Court in which the reasonableness of indirect costs for
which a contractor seeks reimbursement from the Depart-
ment is in issue, the burden of proof shall be upon the
contractor to establish that those costs are reasonable.
(h) DOCUMENTATION OF COSTS.—Costs shall be al-
lowable under a covered contract only to the extent that
such costs are supported by sufficient documentation (as
specified by regulations issued by the Secretary under sec-
tion 122) to permit audit.
(i) COVERED CONTRACT DEFINED.—As used in this
section and section 119, the term ‘‘covered contract’’
means a contract for an amount more than $100,000,
other than a fixed-price contract without cost incentives,
entered into by the Department.
SEC. 118. CONTRACTOR EMPLOYEE GIFT, ENTERTAINMENT,
OR RECREATION COSTS SPECIFICALLY UNAL-
LOWABLE UNDER DEPARTMENT CONTRACTS.
Costs of entertainment, gifts, or recreation for con-
tractor employees or members of their families provided
by a contractor to improve employee morale or perform-
ance or for any other purpose, are not allowable under
a covered contract in any amount, except that nothing in
this section precludes a contractor from providing such en-
tertainment, gifts, or recreation to their employees or
members of their families at no expense to the Govern-
ment.
SEC. 119. DOCUMENTATION OF CONTRACTOR TRAVEL
COSTS.
Costs of travel under a covered contract which are
otherwise allowable under section 24 of the Office of Fed-
eral Procurement Policy Act (41 U.S.C. 421) shall be al-
lowable only if supported by documentation, which shall
include documentation of, as specified by regulations is-
sued by the Secretary under section 121, amounts, times,
dates, origin, and destination of the travel, purpose of the
travel, and identities of all travelers to which the costs
relate.
SEC. 120. EFFECTIVE DATES; LIMITATIONS ON APPLICA-
TION.
(a) EFFECTIVE DATES.—Sections 115 through 119
shall take effect on the earlier of the date that is 90 days
after the date of promulgation of regulations under section
121, or the date that is 18 months after the date of the
enactment of this Act.
(b) LIMITATIONS ON APPLICATION.—
(1) IN GENERAL.—Except as provided in para-
graph (2), sections 117, 118, and 119 shall not
apply to a contract entered into before the effective
date of those sections.
(2) EXCEPTIONS.—Section 117 shall apply to—
(A) a task added on or after the effective
date of the section to a contract entered into
before that effective date;
(B) an order made on or after the effective
date of the section under a contract entered
into before that effective date; and
(C) a contract that is extended, or for
which an option to renew is exercised, on or
after the effective date of the section.
SEC. 121. REGULATIONS.
(a) IN GENERAL.—The Secretary shall promulgate
such revisions as may be necessary to the Department’s
supplement to the Federal Acquisition Regulation imple-
menting sections 115 through 119 in final form within one
year after the date of enactment of this Act. The revisions
shall include binding guidance for granting waivers under
subsections (b) and (d) of section 115.
(b) PROCEDURES.—Section 25(c) of the Office of
Federal Procurement Policy Act (41 U.S.C. 421(c)) shall
apply to regulations issued under sections 115 through
119, except that the Administrator for Federal Procure-
ment Policy may rescind or deny the promulgation of any
such regulation, or take any other action authorized by
section 6 of that Act (41 U.S.C. 405), only with respect
to any inconsistency of the regulation with those sections
which shall be identified by the Administrator. The Ad-
ministrator shall notify the appropriate Committees of the
Congress with jurisdiction over the Department and ex-
plain the basis for such action.
(c) OTHER GOVERNMENT-WIDE REGULATIONS SU-
PERSEDING SECTIONS 117, 118, AND 119.—
(1) IN GENERAL.—On and after the effective
date of modifications to the Federal Acquisition
Regulation relating to the matters covered by sec-
tions 117, 118, and 119 that apply to all executive
agencies, including the Department (in this sub-
section referred to as the ‘‘Government-wide regula-
tions’’), sections 117, 118, and 119 (including any
regulations issued thereunder) shall be considered to
be superseded by the Government-wide regulations,
if the Secretary, with the concurrence of the Admin-
istrator for Federal Procurement Policy, determines
in writing that the Government-wide regulations—
(A) cover, for the Department, all of the
matters addressed by sections 117, 118, and
119; and
(B) are at least equal to all of the require-
ments of sections 117, 118, and 119.
(2) NOTIFICATION
OF
CONGRESS.—The Sec-
retary shall notify the Congress of any determina-
tion under paragraph (1) (A) and (B) and of the
continuing application of sections 117, 118, and 119
to the Department.
SEC. 122. REFERENCES.
Reference in any other Federal law, Executive order,
rule, regulation, reorganization plan, delegation of author-
ity, or document—
(1) to the Environmental Protection Agency is
deemed to refer to the Department of Environmental
Protection;
(2) to the Administrator of the Environmental
Protection Agency is deemed to refer to the Sec-
retary of the Environment;
(3) to the Deputy Administrator of the Envi-
ronmental Protection Agency is deemed to refer to
the Deputy Secretary of the Environment; and
(4) to an Assistant Administrator of the Envi-
ronmental Protection Agency is deemed to refer to
the corresponding Assistant Secretary of the Depart-
ment of Environmental Protection who is assigned
the functions of that Assistant Administrator.
SEC. 123. SAVINGS PROVISIONS.
(a) POWERS AND AUTHORITIES.—Except as provided
in section 101(e), the Department and its officers, employ-
ees, and agents shall have all the powers and authorities
of the Environmental Protection Agency and its officers,
employees, and agents, respectively.
(b) CONTINUING EFFECT OF LEGAL DOCUMENTS.—
All orders, determinations, rules, regulations, permits,
grants, contracts, certificates, licenses, privileges, and
other administrative actions—
(1) which have been issued, made, granted or
allowed to become effective by the President, the Ad-
ministrator or other authorized official of the Envi-
ronmental Protection Agency, or by a court of com-
petent jurisdiction, which relate to functions of the
Administrator or any other officer or agent of the
Environmental Protection Agency actions; and
(2) which are in effect at the time this Act
takes effect;
shall continue in effect according to their terms until
modified, terminated, superseded, set aside, or revoked in
accordance with law by the President, the Secretary, or
other authorized official, by a court of competent jurisdic-
tion, or by operation of law.
(c) PROCEEDINGS NOT AFFECTED.—This Act shall
not affect any proceeding, proposed rule, or application
for any license, permit, certificate, or financial assistance
pending before the Environmental Protection Agency at
the time this Act takes effect, and such proceedings and
applications shall be continued. Orders shall be issued in
such proceedings, appeals shall be taken therefrom, and
payments shall be made pursuant to such orders, as if this
Act had not been enacted, and orders issued in any such
proceedings shall continue in effect until modified, termi-
nated, superseded, or revoked by a duly authorized official,
by a court of competent jurisdiction, or by operation of
law. Nothing in this subsection prohibits the discontinu-
ance or modification of any such proceeding under the
same terms and conditions and to the same extent that
such proceeding could have been discontinued or modified
if this Act had not been enacted.
(d) SUITS NOT AFFECTED.—This Act shall not affect
suits commenced before the effective date of this Act, and
in all such suits proceedings shall be had, appeals taken,
and judgments rendered in the same manner and with the
same effect as if this Act had not been enacted.
SEC. 124. CONFORMING AMENDMENTS.
(a) PRESIDENTIAL SUCCESSION.—Section 19(d)(1)
of title 3, United States Code, is amended by inserting
before the period at the end the following: ‘‘, Secretary
of the Environment’’.
(b) DEFINITION OF DEPARTMENT IN CIVIL SERVICE
LAWS.—Section 101 of title 5, United States Code, is
amended by adding at the end the following:
‘‘The Department of Environmental Protec-
tion.’’.
(c) COMPENSATION, LEVEL I.—Section 5312 of title
5, United States Code, is amended by adding at the end
the following:
‘‘Secretary of the Environment.’’.
(d) COMPENSATION, LEVEL II.—Section 5313 of title
5, United States Code, is amended by striking ‘‘Adminis-
trator of the Environmental Protection Agency’’ and in-
serting ‘‘Deputy Secretary of the Environment’’.
(e) COMPENSATION, LEVEL III.—Section 5314 of
title 5, United States Code, is amended by striking ‘‘Dep-
uty Administrator of the Environmental Protection Agen-
cy.’’.
(f) COMPENSATION, LEVEL IV.—Section 5315 of
title 5, United States Code, is amended—
(1) by striking ‘‘Inspector General, Environ-
mental Protection Agency’’ and inserting ‘‘Inspector
General, Department of Environmental Protection’’;
(2) by striking each reference to an Assistant
Administrator, or Assistant Administrators, of the
Environmental Protection Agency; and
(3) by adding at the end the following:
‘‘Assistant Secretaries, Department of Environ-
mental Protection.
‘‘General Counsel, Department of Environ-
mental Protection.’’.
(g) COMPENSATION, LEVEL V.—Section 5316 of title
5, United States Code, is amended by adding at the end
the following:
‘‘Director, Bureau of Environmental Statistics,
Department of Environmental Protection.
‘‘Director, Office of Environmental Justice, De-
partment of Environmental Protection.’’.
(h) INSPECTOR GENERAL ACT OF 1978.—The In-
spector General Act of 1978 is amended—
(1) in section 11(1)—
(A) by inserting ‘‘the Environment,’’ after
‘‘Energy,’’; and
(B) by striking ‘‘Environmental Protec-
tion,’’; and
(2) in section 11(2)—
(A) by inserting ‘‘Environmental Protec-
tion,’’ after ‘‘Energy,’’; and
(B) by striking ‘‘the Environmental Pro-
tection Agency,’’.
SEC. 125. ADDITIONAL CONFORMING AMENDMENTS.
After consultation with the Committee on Govern-
ment Operations of the House of Representatives and ap-
propriate committees of the Senate, the Secretary shall
prepare and submit to the Congress proposed legislation,
which the Secretary determines is necessary and appro-
priate, containing technical and conforming amendments
to the laws of the United States to reflect the changes
made by this Act.
TITLE II—ADMINISTRATIVE
PROVISIONS
SEC. 201. ACQUISITION OF COPYRIGHTS AND PATENTS.
The Secretary may acquire any of the following rights
if the property acquired thereby is for use by or for, or
useful to, the Department:
(1) Copyrights, patents, and applications for
patents, designs, processes, and manufacturing data.
(2) Licenses under copyrights, patents, and ap-
plications for patents.
(3) Releases, before suit is brought, for past in-
fringement of patents or copyrights.
SEC. 202. GIFTS AND BEQUESTS.
The Secretary may accept, hold, administer, and uti-
lize gifts, bequests, and devises of real or personal prop-
erty and donations of services for the purpose of aiding
or facilitating the work of the Department. Gifts, be-
quests, and devises of money and proceeds from sales of
other property received as gifts, bequests, or devises shall
be deposited in the Treasury and shall be available for
disbursement upon the order of the Secretary.
SEC. 203. OFFICIAL SEAL OF DEPARTMENT.
On and after the effective date of this Act, the seal
of the Environmental Protection Agency, with appropriate
changes, shall be the official seal of the Department, until
such time as the Secretary may cause an official seal to
be made for the Department of such design as the Sec-
retary shall approve.
SEC. 204. USE OF LIKENESS OF OFFICIAL SEAL OF DEPART-
MENT.
(a) DISPLAY OF SEAL.—Whoever knowingly displays
any printed or other likeness of the official seal of the De-
partment, or any facsimile thereof, in or in connection
with, any advertisement, poster, circular, book, pamphlet,
or other publication, public meeting, play, motion picture,
telecast, or other production, or on any building, monu-
ment, or stationery, for the purpose of conveying, or in
a manner reasonably calculated to convey, a false impres-
sion of sponsorship or approval by the Government of the
United States or by any department, agency, or instru-
mentality thereof, shall be imprisoned not more than 6
months, or fined under title 18, United States Code, or
both.
(b) MANUFACTURE, REPRODUCTION, SALE, OR PUR-
CHASES FOR RESALE.—Except as authorized under regu-
lations promulgated by the Secretary and published in the
Federal Register, whoever knowingly manufactures, repro-
duces, sells, or purchases for resale, either separately or
appended to any article manufactured or sold, any likeness
of the official seal of the Department or any substantial
part thereof (except for manufacture or sale of the article
for the official use of the Government of the United
States), shall be imprisoned not more than 6 months, or
fined under title 18, United States Code, or both.
(c) INJUNCTIONS.—A violation of subsection (a) or
(b) may be enjoined by an action brought by the Attorney
General in the appropriate district court of the United
States. The Attorney General shall file such an action
upon request of the Secretary or any authorized represent-
ative of the Secretary.
SEC. 205. USE OF STATIONERY, PRINTED FORMS, AND SUP-
PLIES 
OF 
ENVIRONMENTAL 
PROTECTION
AGENCY.
(a) IN GENERAL.—The Secretary shall ensure that,
to the extent practicable, existing stationery, printed
forms, and other supplies of the Environmental Protection