‘‘(7) EXCEPTION
FOR
INTANGIBLE
DRILLING
COSTS.—
‘‘For election not to have this subsection apply in
computing alternative minimum taxable income, see
section 56(a)(9).’’
(b) TIME FOR MAKING ELECTIONS.—Subparagraph
(B) of section 59(e)(4) is amended to read as follows:
‘‘(B) TIME FOR MAKING ELECTION.—
‘‘(i) IN GENERAL.—An election under
this subsection may be made or revoked at
any time before the period for filing a
claim for credit or refund (determined
after any extension) expires.
‘‘(ii) PERIOD OF LIMITATION FOR AS-
SESSMENT.—The period for assessing a
deficiency attributable to any election
under clause (i) (or any revocation thereof)
shall not expire before the date 1 year
after the date the Secretary is notified of
the election (or revocation).’’
(c) EFFECT OF ELECTION.—Paragraph (6) of section
59(e) is amended by adding at the end the following: ‘‘Any
deductions with respect to such portion shall not be treat-
ed as directly attributable to oil and gas properties for
purposes of section 57(a)(2)(C).’’
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1994.
SEC. 124. ALLOCATION OF DEDUCTIONS IN DETERMINING
NET INCOME.
(a) IN GENERAL.—Clause (ii) of section 57(a)(2)(C)
is amended by striking ‘‘allocable’’ and inserting ‘‘directly
attributable’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1994.
TITLE II—REGULATORY REFORM
Subtitle A—Oil Pollution Act
Amendments
SEC. 201. DEFINITION OF RESPONSIBLE PARTY.
Section 1001(32)(C) of the Oil Pollution Act of 1990
(33 U.S.C. 2701(32)(C)) is amended—
(1) by striking ‘‘applicable State law or’’ and
inserting ‘‘applicable State law relating to exploring
for, drilling for, producing, or transporting oil on
submerged lands on the Outer Continental Shelf in
accordance with a license or permit issued for such
purpose, or under’’; and
(2) by striking ‘‘43 U.S.C. 1301–1356’’ and in-
serting ‘‘(43 U.S.C. 1301 et seq.),’’.
SEC. 202. AMOUNT OF FINANCIAL RESPONSIBILITY.
Section 1016(c)(1) of the Oil Pollution Act of 1990
(33 U.S.C. 2716(c)(1)) is amended to read as follows:
‘‘(1) IN GENERAL.—
‘‘(A) EVIDENCE
OF
FINANCIAL
RESPON-
SIBILITY
REQUIRED.—Except as provided in
paragraph (2), each responsible party with re-
spect to an offshore facility described in section
1001(32)(C) located seaward of the United
States coastline that is—
‘‘(i) used for drilling for, producing,
or processing oil; and
‘‘(ii) has the capacity to transport,
store, transfer, or otherwise handle more
than 1,000 barrels of oil at any one time,
shall establish and maintain evidence of finan-
cial responsibility in the amount required under
subparagraph (B) or (C), as applicable.
‘‘(B) AMOUNT
REQUIRED
GENERALLY.—
Except as provided in subparagraph (C), for
purposes of subparagraph (A) the amount of fi-
nancial responsibility required is $35,000,000.
‘‘(C) GREATER AMOUNT.—If the President
determines that an amount of financial respon-
sibility greater than the amount required by
subparagraph (B) is appropriate for an offshore
facility, based on an assessment of the risk
posed by the facility that includes consideration
of the relative operational, environmental,
human health, and other risks posed by the
quantity and quality of oil that is transported,
stored, transferred, or otherwise handled by the
facility, for purposes of subparagraph (A) the
amount of financial responsibility required shall
be some amount not exceeding $150,000,000,
determined by the Secretary on the basis of
clear and convincing evidence that the risks
posed justify the greater amount.
‘‘(D) MULTIPLE FACILITIES.—In a case in
which a person is the responsible party for
more than one facility subject to this sub-
section, evidence of financial responsibility need
be established only to meet the maximum liabil-
ity applicable to the facility having the greatest
maximum liability.’’.
Subtitle B—Oil and Gas Royalties
SEC. 221. PERIOD OF LIMITATION FOR COLLECTION OF OIL
AND GAS ROYALTIES.
(a) IN GENERAL.—Except as provided in subsection
(b), no administrative proceeding or court action may be
commenced by the United States for recovery of a royalty
due under an oil or gas lease entered into under the Act
entitled ‘‘An Act to promote the mining of coal, phosphate,
oil, oil shale, gas, and sodium on the public domain’’, ap-
proved February 25, 1920 (commonly known as the Min-
eral Lands Leasing Act) (30 U.S.C. 181 et seq.), the
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et
seq.), or any other law, after the date that is 6 years after
the date on which payment of the royalty becomes due.
(b) FALSE OR FRAUDULENT STATEMENTS.—If the
lessee under a lease described in subsection (a) makes a
false or fraudulent statement to an officer or employee of
the United States with intent to evade, in whole or in part,
the payment of a royalty, payment of the royalty shall be
deemed to become due, for the purpose of subsection (a),
on the date on which the United States discovers that the
statement was false or fraudulent.
SEC. 222. REDUCTION OF ROYALTIES.
Notwithstanding any other law, the Secretary of the
Interior may reduce the amount of any royalty that will
be payable after the date of enactment of this Act under
an oil or gas lease entered into under the Act entitled ‘‘An
Act to promote the mining of coal, phosphate, oil, oil shale,
gas, and sodium on the public domain’’, approved Feb-
ruary 25, 1920 (commonly known as the Mineral Lands
Leasing Act) (30 U.S.C. 181 et seq.), the Outer Continen-
tal Shelf Lands Act (43 U.S.C. 1331 et seq.), or any other
law.
Subtitle C—Private Property
Rights
SEC. 231. SHORT TITLE.
This subtitle may be cited as the ‘‘Private Property
Owners Bill of Rights’’.
SEC. 232. FINDINGS AND PURPOSE.
(a) FINDINGS.—Congress finds the following:
(1) Our democracy was founded on principles of
ownership, use, and control of private property.
These principles are embodied in the fifth amend-
ment to the Constitution, which prohibits the taking
of private property without the payment of just com-
pensation.
(2) A number of Federal environmental pro-
grams, specifically the Endangered Species Act of
1973 (16 U.S.C. 1531 et seq.) and section 404 of
the Federal Water Pollution Control Act (33 U.S.C.
1344), have been implemented by employees, agents,
and representatives of the Federal Government in a
manner that deprives private property owners of the
use and control of their property.
(3) As new Federal programs are proposed that
would limit and restrict the use of private property
to provide habitat for plant and animal species, the
rights of private property owners must be recognized
and respected.
(4) Private property owners are being forced by
Federal policy to resort to extensive, lengthy, and
expensive litigation to protect certain basic civil
rights guaranteed by the Constitution.
(5) Since many private property owners do not
have the financial resources or the extensive commit-
ment of time to proceed in litigation against the
Federal Government, a clear Federal policy is need-
ed to guide and direct Federal agencies with respect
to the implementation by the agencies of environ-
mental laws that directly impact private property.
(6) While all private property owners should
and must abide by nuisance laws and should not use
their property in a manner that harms their neigh-
bors, these laws have traditionally been enacted, im-
plemented, and enforced at the State and local levels
where the laws are best able to protect the rights of
all private property owners and local citizens.
(7) While traditional pollution control laws are
intended to protect the health and physical welfare
of the general public, habitat protection programs in
effect on the date of enactment of this Act are in-
tended to protect the welfare of plant and animal
species, while allowing recreational and aesthetic op-
portunities for the public.
(b) PURPOSE.—The purpose of this subtitle is to pro-
vide a consistent Federal policy to—
(1) encourage, support, and promote the private
ownership of property; and
(2) ensure that the constitutional and legal
rights of private property owners are protected by
the Federal Government and employees, agents, and
representatives of the Federal Government.
SEC. 233. DEFINITIONS.
As used in this subtitle:
(1) AGENCY HEAD.—The term ‘‘agency head’’
means the Secretary or Administrator with jurisdic-
tion or authority to take a final agency action under
1 or more of the applicable provisions of law.
(2) APPLICABLE
PROVISIONS
OF
LAW.—The
term ‘‘applicable provisions of law’’ means the En-
dangered Species Act of 1973 (16 U.S.C. 1531 et
seq.) and section 404 of the Federal Water Pollution
Control Act (33 U.S.C. 1344).
(3) NON-FEDERAL PERSON.—The term ‘‘non-
Federal person’’ means a person other than an offi-
cer, employee, agent, department, or instrumentality
of—
(A) the Federal Government; or
(B) a foreign government.
(4) PRIVATE
PROPERTY
OWNER.—The term
‘‘private property owner’’ means a non-Federal per-
son (other than an officer, employee, agent, depart-
ment, or instrumentality of a State, municipality, or
political subdivision of a State, or a State, munici-
pality, or political subdivision of a State) that—
(A) owns property referred to in subpara-
graph (A) or (B) of paragraph (5); or
(B) holds property referred to in para-
graph (5)(C).
(5) PROPERTY.—The term ‘‘property’’ means—
(A) land;
(B) any interest in land; and
(C) any proprietary water right.
(6) QUALIFIED
AGENCY
ACTION.—The term
‘‘qualified agency action’’ means an agency action
(as defined in section 551(13) of title 5, United
States Code) that is taken under 1 or more of the
applicable provisions of law.
SEC. 234. PROTECTION OF PRIVATE PROPERTY RIGHTS.
(a) IN GENERAL.—In implementing and enforcing
the applicable provisions of law, each agency head shall—
(1) comply with applicable State and tribal gov-
ernment laws, including laws relating to private
property rights and privacy; and
(2) implement and enforce the applicable provi-
sions of law in a manner that has the least impact
on the constitutional and other legal rights of pri-
vate property owners.
(b) REGULATIONS.—Each agency head shall develop
and implement regulations for ensuring that the constitu-
tional and other legal rights of private property owners
are protected in any case in which the agency head makes,
or participates with other agencies in the making of, any
final decision that restricts the use of private property.
SEC. 235. PROPERTY OWNER CONSENT FOR ENTRY.
(a) IN GENERAL.—Subject to subsection (b), an
agency head may not enter privately owned property to
collect information regarding the property, unless the pri-
vate property owner has—
(1) consented in writing to the entry;
(2) after providing the consent, been provided
notice of the entry; and
(3) been notified that any raw data collected
from the property must be made available to the pri-
vate property owner at no cost, if requested by the
private property owner.
(b) ENTRY FOR CONSENT OR NOTICE.—Subsection
(a) shall not prohibit entry onto property for the purpose
of obtaining consent or providing notice required under
subsection (a).
SEC. 236. RIGHT TO REVIEW AND DISPUTE DATA COL-
LECTED FROM PRIVATE PROPERTY.
An agency head may not use data that is collected
from privately owned property to implement or enforce
any of the applicable provisions of law, unless the agency
head has—
(1) provided to the private property owner—
(A) access to the information;
(B) a detailed description of the manner in
which the information was collected; and
(C) an opportunity to dispute the accuracy
of the information; and
(2) determined that the information is accurate,
if the private property owner disputes the accuracy
of the information pursuant to paragraph (1)(C).
SEC. 237. RIGHT TO AN ADMINISTRATIVE APPEAL OF WET-
LANDS DECISIONS.
Section 404 of the Federal Water Pollution Control
Act (33 U.S.C. 1344) is amended by adding at the end
the following:
‘‘(u) ADMINISTRATIVE APPEALS.—
‘‘(1) IN GENERAL.—The Secretary or the Ad-
ministrator, after notice and opportunity for public
comment, shall issue rules to establish procedures to
provide private property owners, or authorized rep-
resentatives of the owners, an opportunity for an ad-
ministrative appeal of the following actions under
this section:
‘‘(A) A determination of regulatory juris-
diction over a particular parcel of property.
‘‘(B) The denial of a permit.
‘‘(C) The terms and conditions of a permit.
‘‘(D) The imposition of an administrative
penalty.
‘‘(E) The imposition of an order requiring
the private property owner to restore or other-
wise alter the property.
‘‘(2) DECISION.—The rules issued under para-
graph (1) shall provide that any administrative ap-
peal of an action described in paragraph (1) shall be
heard and decided by an official other than the offi-
cial who took the action, and shall be conducted at
a location that is in the vicinity of the property in-
volved in the action.
‘‘(3) DEFINITIONS.—In this subsection:
‘‘(A) NON-FEDERAL
PERSON.—The term
‘non-Federal person’ means a person other than
an officer, employee, agent, department, or in-
strumentality of—
‘‘(i) the Federal Government; or
‘‘(ii) a foreign government.
‘‘(B) PRIVATE
PROPERTY
OWNER.—The
term ‘private property owner’ means a non-Fed-
eral person (other than an officer, employee,
agent, department, or instrumentality of a
State, municipality, or political subdivision of a
State, or a State, municipality, or political sub-
division of a State) that—
‘‘(i) owns property referred to in
clause (i) or (ii) of subparagraph (C); or
‘‘(ii) holds property referred to in sub-
paragraph (C)(iii).
‘‘(C) PROPERTY.—The term ‘property’
means—
‘‘(i) land;
‘‘(ii) any interest in land; and
‘‘(iii) any proprietary water right.’’.
SEC. 238. RIGHT TO ADMINISTRATIVE APPEAL UNDER THE
ENDANGERED SPECIES ACT OF 1973.
Section 11 of the Endangered Species Act of 1973
(16 U.S.C. 1540) is amended by adding at the end the
following:
‘‘(i) ADMINISTRATIVE APPEALS.—
‘‘(1) IN GENERAL.—The Secretary, after notice
and opportunity for public comment, shall issue
rules to establish procedures to provide private prop-
erty owners, or authorized representatives of the
owners, an opportunity for an administrative appeal
of the following actions under this Act:
‘‘(A) A determination that a particular
parcel of property is critical habitat of a species
listed under section 4.
‘‘(B) The denial of a permit for an inciden-
tal take.
‘‘(C) The terms and conditions of a permit
for an incidental take.
‘‘(D) The imposition of an administrative
penalty.
‘‘(E) The imposition of an order prohibit-
ing or substantially limiting the use of the prop-
erty.
‘‘(2) DECISION.—The rules issued under para-
graph (1) shall provide that any administrative ap-
peal of an action described in paragraph (1) shall be
heard and decided by an official other than the offi-
cial who took the action, and shall be conducted at
a location that is in the vicinity of the parcel of
property involved in the action.
‘‘(3) DEFINITIONS.—In this subsection:
‘‘(A) NON-FEDERAL
PERSON.—The term
‘non-Federal person’ means a person other than
an officer, employee, agent, department, or in-
strumentality of—
‘‘(i) the Federal Government; or
‘‘(ii) a foreign government.
‘‘(B) PRIVATE
PROPERTY
OWNER.—The
term ‘private property owner’ means a non-Fed-
eral person (other than an officer, employee,
agent, department, or instrumentality of a
State, municipality, or political subdivision of a
State, or a State, municipality, or political sub-
division of a State) that—
‘‘(i) owns property referred to in
clause (i) or (ii) of subparagraph (C); or
‘‘(ii) holds property referred to in sub-
paragraph (C)(iii).
‘‘(C) PROPERTY.—The term ‘property’
means—
‘‘(i) land;
‘‘(ii) any interest in land; and
‘‘(iii) any proprietary water right.’’.
SEC. 239. COMPENSATION FOR TAKING OF PRIVATE PROP-
ERTY.
(a) ELIGIBILITY.—A private property owner that, as
a consequence of a final qualified agency action of an
agency head, is deprived of 33 percent or more of the fair
market value, or the economically viable use, of the af-
fected portion of the property of the owner, as determined
by a qualified appraisal expert, shall be entitled to receive
compensation in accordance with this section.
(b) DEADLINE.—Not later than 90 days after receipt
of a final decision of an agency head that deprives a pri-
vate property owner of the fair market value or viable use
of property for which compensation is required under sub-
section (a), the private property owner may submit in writ-
ing a request to the agency head for compensation in ac-
cordance with subsection (c).
(c) AGENCY HEAD’S OFFER.—Not later than 180
days after the receipt of a request for compensation under
subsection (b), the agency head shall stay the decision and
provide to the private property owner—
(1) an offer to purchase the affected property
of the private property owner at the fair market
value that would apply if there were no use restric-
tions under the applicable provisions of law; and
(2) an offer to compensate the private property
owner for the difference between the fair market
value of the property without the restrictions and
the fair market value of the property with the re-
strictions.
(d) PRIVATE PROPERTY OWNER’S RESPONSE.—
(1) IN
GENERAL.—A private property owner
shall have 60 days after the date of receipt of the
offers of the agency head under subsection (c) to ac-
cept 1 of the offers or to reject both offers.
(2) SUBMISSION TO ARBITRATION.—If the pri-
vate property owner rejects both offers, the private
property owner may submit the matter for arbitra-
tion to an arbitrator appointed by the agency head
from a list of arbitrators submitted to the agency
head by the American Arbitration Association. The
arbitration shall be conducted in accordance with the
real estate valuation arbitration rules of the associa-
tion. For the purposes of this section, an arbitration
shall be binding on the agency head and a private
property owner as to the amount, if any, of com-
pensation owed to the private property owner and
whether for the purposes of this section the private
property owner has been deprived of the fair market
value or viable use of property for which compensa-
tion is required under subsection (a).
(e) JUDGMENT.—A qualified agency action of an
agency head that deprives a private property owner of
property as described in subsection (a), shall be deemed,
at the option of the private property owner, to be a taking
under the Constitution and a judgment against the United
States if the private property owner—
(1) accepts an offer of the agency head under
subsection (c); or
(2) submits to arbitration under subsection (d).
(f) PAYMENT.—An agency head shall pay a private
property owner any compensation required under the
terms of an offer of the agency head that is accepted by
the private property owner in accordance with subsection
(d), or under a decision of an arbitrator under that sub-
section, by not later than 60 days after the date of the
acceptance or the date of the issuance of the decision, re-
spectively.
(g) FORM OF PAYMENT.—Payment under this sec-
tion shall be in a form agreed to by the agency head and
the private property owner and may be in the form of—
(1) payment of an amount that is equal to the
fair market value of the property on the day before
the date of the final qualified agency action with re-
spect to which the property or interest is acquired;
(2) payment of an amount that is equal to the
reduction in value of the property; or
(3) conveyance of real property or an interest in
real property that has a fair market value equal to
the amount referred to in paragraph (1) or (2).
(h) OTHER RIGHTS PRESERVED.—This section shall
not preempt, alter, or limit the availability of any remedy
for the taking of property or an interest in property that
is available under the Constitution or any other law.
(i) FINAL JUDGMENTS.—If a private property owner
unsuccessfully seeks compensation under this section and
thereafter files a claim for compensation under the fifth
amendment to the Constitution and is successful in ob-
taining a final judgment ordering compensation from the
United States Court of Federal Claims for the claim, the
agency head who made the final agency decision that re-
sults in the taking shall reimburse, from funds appro-
priated to the agency for the 2 fiscal years following pay-
ment of the compensation, the Treasury of the United
States for amounts appropriated under section 1304 of
title 31, United States Code, to pay the judgment against
the United States.
SEC. 240. PRIVATE PROPERTY OWNER PARTICIPATION IN
COOPERATIVE AGREEMENTS.
Section 6(b) of the Endangered Species Act of 1973
(16 U.S.C. 1535(b)) is amended—
(1) by striking ‘‘The Secretary’’ and inserting
the following:
‘‘(1) IN GENERAL.—The Secretary’’; and
(2) by adding at the end the following:
‘‘(2) PARTICIPATION
BY
PRIVATE
PROPERTY
OWNERS.—
‘‘(A) IN GENERAL.—Notwithstanding any
other provision of this section, in any case in
which the Secretary enters into a management
agreement under paragraph (1) that establishes
restrictions on the use of property, the Sec-
retary shall notify all private property owners
or lessees of the property that is subject to the
management agreement and shall provide an
opportunity for each private property owner or
lessee to participate in the management agree-
ment.
‘‘(B) DEFINITIONS.—In this paragraph:
‘‘(i) 
NON-FEDERAL
PERSON.—The
term ‘non-Federal person’ means a person
other than an officer, employee, agent, de-
partment, or instrumentality of—
‘‘(I) the Federal Government; or
‘‘(II) a foreign government.
‘‘(ii) PRIVATE
PROPERTY
OWNER.—
The term ‘private property owner’ means a
non-Federal person (other than an officer,
employee, agent, department, or instru-
mentality of a State, municipality, or polit-
ical subdivision of a State, or a State, mu-
nicipality, or political subdivision of a
State) that—
‘‘(I) owns property referred to in
subclause (I) or (II) of clause (iii); or
‘‘(II) holds property referred to
in clause (iii)(III).
‘‘(iii) PROPERTY.—The term ‘prop-
erty’ means—
‘‘(I) land;
‘‘(II) any interest in land; and
‘‘(III) 
any 
proprietary 
water
right.’’.
Subtitle D—Risk Assessments
SEC. 251. RISK ASSESSMENTS.
(a) IN GENERAL.—Chapter 6 of title 5, United
States Code, is amended by adding at the end the follow-
ing:
‘‘SUBCHAPTER II—RISK ASSESSMENTS
‘‘§ 621. Definitions
‘‘In this subchapter—
‘‘(1) AGENCY.—The term ‘agency’ has the
meaning stated in section 551(1).
‘‘(2) BENEFIT.—The term ‘benefit’ means the
reasonably identifiable significant benefits, including
social and economic benefits, that are expected to re-
sult directly or indirectly from implementation of a
rule or an alternative to a rule.
‘‘(3) BEST
ESTIMATE.—The term ‘best esti-
mate’ means an estimate that, to the extent feasible
and scientifically appropriate, is based on one or
more of the following:
‘‘(A) Central estimates of risk using the
most plausible assumptions.
‘‘(B) An approach that combines multiple
estimates based on different scenarios and
weighs the probability of each scenario.
‘‘(C) Any other methodology designed to
provide the most unbiased representation of the
most plausible level of risk, given the current
scientific information available to the agency
concerned.
‘‘(4) COST.—The term ‘cost’ means the reason-
ably identifiable significant costs and adverse effects,
including 
social 
and 
economic 
costs, 
reduced
consumer choice, substitution effects, and impeded
technological advancement, that are expected to re-
sult directly or indirectly from implementation of, or
compliance with, a rule or an alternative to a rule.
‘‘(5) 
EMERGENCY.—The 
term 
‘emergency’
means 
a 
clearly 
imminent 
and 
substantial
endangerment to public health, safety, or natural re-
sources.
‘‘(6) MAJOR RULE.—The term ‘major rule’—
‘‘(A) means—
‘‘(i) a rule or a group of closely relat-
ed rules that the agency proposing the rule
or the President reasonably determines is
likely to have a gross annual effect on the
economy of $50,000,000 or more in rea-
sonably quantifiable increased direct and
indirect costs, or has a significant impact
on a sector of the economy; or
‘‘(ii) a rule or a group of closely relat-
ed rules that is otherwise designated a
major rule by the agency proposing the
rule, or by the President on the ground
that the rule is likely to result in—
‘‘(I) a substantial increase in
costs or prices for wage earners, con-
sumers, individual industries, non-
profit organizations, Federal, State,
or local government agencies, or geo-
graphic regions; or
‘‘(II) significant adverse effects
on competition, employment, invest-
ment, productivity, innovation, the en-
vironment, public health or safety, or
the ability of enterprises whose prin-
cipal places of business are in the
United States to compete in domestic
or export markets; but
‘‘(B) does not include—
‘‘(i) a rule that involves the internal
revenue laws of the United States; or
‘‘(ii) a rule that authorizes the intro-
duction into commerce, or recognizes the
marketable status, of a product;.
‘‘(7) PERSON.—The term ‘person’ has the
meaning stated in section 551(2).
‘‘(8) PLAUSIBLE.—The term ‘plausible’ means
realistic and scientifically probable.
‘‘(9) RISK
ASSESSMENT.—The term ‘risk as-
sessment’ means—
‘‘(A) the process of identifying hazards,
and quantifying (to the extent practicable) or
describing the degree of toxicity, exposure, or
other risk the hazards pose for exposed individ-
uals, populations, or resources; and
‘‘(B) the document containing the expla-
nation of how the assessment process has been
applied to an individual substance, activity, or
condition.
‘‘(10) RISK
CHARACTERIZATION.—The term
‘risk characterization’—
‘‘(A) means the element of a risk assess-
ment that involves presentation of the degree of
risk to individuals and populations expected to
be protected, as presented in any regulatory
proposal or decision, report to Congress, or
other document that is made available to the
public; and
‘‘(B) includes discussions of uncertainties,
conflicting data, estimates, extrapolations, in-
ferences, and opinions.
‘‘(11) RULE.—The term ‘rule’ has the meaning
stated in section 551(4).
‘‘(12) SUBSTITUTION RISK.—The term ‘substi-
tution risk’ means a potential increased risk to
human health, safety, or the environment from a
regulatory option designed to decrease other risks.
‘‘§ 622. Applicability
‘‘(a) Except as provided in subsection (b), this sub-
chapter shall apply to all risk assessments and risk charac-
terizations prepared by, or on behalf of, or prepared by
others and adopted by, any agency in connection with
health, safety, and risk to natural resources.
‘‘(b)(1) This subchapter shall not apply to risk as-
sessments or risk characterizations performed with respect
to—
‘‘(A) a situation that the head of the agency
considers to be an emergency;
‘‘(B) a rule that authorizes the introduction
into commerce, or recognizes the marketable status
of a product; or
‘‘(C) a screening analysis.
‘‘(2)(A) An analysis shall not be treated as screening
analysis for the purposes of paragraph (1)(B) if the result
of the analysis is used—
‘‘(i) as the basis for imposing a restriction on
a substance or activity; or
‘‘(ii) to characterize a positive finding of risks
from a substance or activity in any agency document
or other communication made available to the public,
the media, or Congress.
‘‘(B) Among the analyses that may be treated as a
screening analysis for the purposes of paragraph (1)(B)
are product registrations, reregistrations, tolerance set-
tings, and reviews of premanufacture notices and existing
chemicals under the Federal Insecticide, Fungicide and
Rodenticide Act (7 U.S.C. 136 et seq.) and the Toxic Sub-
stances Control Act (15 U.S.C. 2601 et seq.).
‘‘(3) This subchapter shall not apply to any food,
drug, or other product label or to any risk characterization
appearing on any such label.
‘‘§ 623. Rule of construction
‘‘Nothing in this subchapter shall be construed to—
‘‘(1) preclude the consideration of any data or
the calculation of any estimate to more fully describe
risk or provide examples of scientific uncertainty or
variability; or
‘‘(2) require the disclosure of any trade secret
or other confidential information.
‘‘§ 624. Requirement to prepare risk assessments
‘‘(a) Except as provided in section 622, the head of
each agency shall prepare for each major rule relating to
human health, safety, or natural resources that is pro-
posed by the agency after the date of enactment of this
subchapter, is pending on the date of enactment of this
subchapter, or is subject to a granted petition for review
pursuant to section 627—
‘‘(1) a risk assessment in accordance with this
subchapter;
‘‘(2) for each such proposed or final rule, an as-
sessment, quantified to the extent feasible, of incre-
mental risk reduction or other benefits associated
with each significant regulatory alternative to the
rule or proposed rule; and
‘‘(3) for each such proposed or final rule, quan-
tified to the extent feasible, a comparison of any
human health, safety, or natural resource risks ad-
dressed by the regulatory alternatives to other rel-
evant risks chosen by the head of the agency, includ-
ing at least 3 other risks regulated by the agency
and to at least 3 other risks with which the public
is familiar.
‘‘(b) A risk assessment prepared pursuant to this
subchapter shall be a component of and used to develop
the cost-benefit analysis required by subchapter II, and
shall be made part of the administrative record for judicial
review of any final agency action.
‘‘§ 625. Principles for risk assessment
‘‘(a)(1) The head of each agency shall apply the prin-
ciples set forth in subsection (b) when preparing any risk
assessment, whether or not required by section 624, to en-
sure that the risk assessment and all of its components—
‘‘(A) distinguish scientific findings and best es-
timates of risk from other considerations;
‘‘(B) are, to the maximum extent practicable
scientifically objective, unbiased and inclusive of all
relevant data; and
‘‘(C) rely, to the extent available and prac-
ticable, on scientific findings.
‘‘(2) Discussions or explanations required under this
section need not be repeated in each risk assessment docu-
ment as long as there is a reference to the relevant discus-
sion or explanation in another agency document.
‘‘(b) The principles to be applied when preparing risk
assessments are as follows:
‘‘(1)(A) When assessing human health risks, a
risk assessment shall be based on the most reliable
laboratory, epidemiological, and exposure assessment
data that finds, or fails to find, a correlation be-
tween a health risk and a potential toxin or activity.
Other relevant data may be summarized.
‘‘(B) When conflicts among such data appear to
exist, or when animal data are used as a basis to as-
sess human health, the assessment shall include dis-
cussion of possible reconciliation of conflicting infor-
mation, and, as appropriate, differences in study de-
signs, comparative physiology, routes of exposure,
bioavailability, pharmacokinetics, and any other rel-
evant factor, including the availability of raw data
for review. Greatest emphasis shall be placed on
data that indicates a biological basis of the resulting
harm in humans. Animal data shall be reviewed with
regard to relevancy to humans.
‘‘(2) When a risk assessment involves selection
of any significant assumption, inference, or model,
the agency shall—
‘‘(A) describe the plausible and alternative
assumptions, inferences, or models;
‘‘(B) explain the basis for any choices
among such assumptions, inferences, or models;
‘‘(C) identify any policy or value judgments
involved in choosing from among such alter-
native assumptions, inferences, or models;
‘‘(D) fully describe any model used in the
risk assessment and make explicit the assump-
tions incorporated in the model; and
‘‘(E) indicate the extent to which any sig-
nificant model has been validated by, or con-
flicts with, empirical data.
‘‘(3) A risk assessment shall be prepared at the
level of detail appropriate and practicable for rea-
soned decisionmaking on the matter involved, taking
into consideration the significance and complexity of
the decision and any need for expedition.
‘‘§ 626. Principles for risk characterization and com-
munication
‘‘In characterizing risk in any risk assessment docu-
ment, regulatory proposal or decision, report to Congress,
or other document that is made available to the public,
each agency characterizing the risk shall comply with each
of the following:
‘‘(1)(A) The head of the agency shall describe
the populations or natural resources that are the
subject of the risk characterization.
‘‘(B) If a numerical estimate of risk is provided,
the head of the agency, to the extent feasible and
scientifically appropriate—
‘‘(i) shall provide—
‘‘(I) the best estimate or estimates for
the specific populations or natural re-
sources which are the subject of the char-
acterization (based on the information
available to the department, agency, or in-
strumentality) or, in lieu of a single best
estimate, an array of multiple estimates
(showing the distribution of estimates and
the best estimate) based on assumptions,
inferences, or models which are equally
plausible, given current scientific under-
standing;
‘‘(II) a statement of the reasonable
range of scientific uncertainties; and
‘‘(III) to the extent practicable and
appropriate, descriptions of the distribu-
tion and probability of risk estimates to re-
flect differences in exposure variability in
populations and uncertainties;
‘‘(ii) in addition to a best estimate or esti-
mates, may present plausible upper-bound or
conservative estimates, but only in conjunction
with equally plausible lower-bound estimates;
and
‘‘(iii) shall ensure that, where a safety fac-
tor, as distinguished from inherent quantitative
or qualitative uncertainties, is used, such factor
shall be similar in degree to safety factors used
to ensure safety in human activities.
‘‘(2) The head of the agency shall explain the
exposure scenarios used in any risk assessment, and,
to the extent feasible, provide a statement of the size
of the corresponding population or natural resource
at risk and the likelihood of such exposure scenarios.
‘‘(3)(A) To the extent feasible, the head of the
agency shall provide a statement that places the na-
ture and magnitude of individual and population
risks to human health in context.
‘‘(B) A statement under subparagraph (A)
shall—
‘‘(i) include appropriate comparisons with
estimates of risks that are familiar to and rou-
tinely encountered by the general public as well
as other risks; and
‘‘(ii) identify relevant distinctions among
categories of risk and limitations to compari-
sons.
‘‘(4) When an agency provides a risk assess-
ment or risk characterization for a proposed or final
regulatory action, such assessment or characteriza-
tion shall include a statement of any significant sub-
stitution risks to human health identified by the
agency or contained in information provided to the
agency by a commenter.
‘‘(5) If—
‘‘(A) an agency provides a public comment
period with respect to a risk assessment or reg-
ulation;
‘‘(B) a commenter provides a risk assess-
ment, and a summary of results of such risk as-
sessment; and
‘‘(C) such risk assessment is reasonably
consistent with the principles and the guidance
provided under this subtitle,
the agency shall present such summary in connec-
tion with the presentation of the agency’s risk as-
sessment or the regulation.
‘‘§ 627. Regulations; plan for assessing new informa-
tion
‘‘(a)(1) Not later than 1 year after the date of enact-
ment of this subchapter, the President shall issue a final
regulation that has been subject to notice and comment
under section 553 for agencies to implement the risk as-
sessment and characterization principles set forth in sec-
tions 625 and 626 and shall provide a format for summa-
rizing risk assessment results.
‘‘(2) The regulation under paragraph (1) shall be suf-
ficiently specific to ensure that risk assessments are con-
ducted consistently by the various agencies.
‘‘(b)(1) Review of the risk assessment for any major
rule shall be conducted by the head of the agency on the
written petition of a person showing a reasonable likeli-
hood that—
‘‘(A) the risk assessment is inconsistent with
the principles set forth in section 625 and 626;
‘‘(B) the risk assessment produces substantially
different results;
‘‘(C) the risk assessment is inconsistent with a
rule issued under subsection (a); or
‘‘(D) the risk assessment does not take into ac-
count material significant new scientific data or sci-
entific understanding.
‘‘(2) Not later than 90 days after receiving a petition
under paragraph (1), the head of the agency shall respond
to the petition by agreeing or declining to review the risk
assessment referred to in the petition, and shall state the
basis for the decision.
‘‘(3) If the head of the agency agrees to review the
petition, the agency shall complete its review within 180
days, unless the Director of the Office of Management and
Budget agrees in writing with an agency determination
that an extension is necessary in view of limitations on
agency resources.
‘‘(4) Denial of a petition by the agency head shall
be subject to judicial review in accordance with chapter
7 of title 5, United States Code.
‘‘(c) The regulations under this section shall be devel-
oped after notice and opportunity for public comment, and
after consultation with representatives of appropriate
State agencies and local governments, and such other de-
partments and agencies, offices, organizations, or persons
as may be advisable.
‘‘(d) At least every 4 years, the President shall re-
view, and when appropriate, revise the regulations pub-
lished under this section.
‘‘§ 628. Decisional criteria
‘‘For each major rule subject to this subchapter, the
head of the agency, subject to review by the President,
shall make a determination that—
‘‘(1) the risk assessment under section 624 is
based on a scientific and unbiased evaluation, re-
flecting realistic exposure scenarios, of the risk ad-
dressed by the major rule and is supported by the
best available scientific data, as determined by a
peer review panel in accordance with section 640;
and
‘‘(2) there is no alternative that is allowed by
the statute under which the major rule is promul-
gated that would provide greater net benefits or that
would achieve an equivalent reduction in risk in a
more cost-effective and flexible manner.
‘‘§ 629. Regulatory priorities
‘‘(a) In exercising authority under any laws protect-
ing human health and safety or the environment, the head
of an agency shall prioritize the use of the resources avail-
able under such laws to address the risks to human health,
safety, and natural resources that—
‘‘(1) the agency determines are the most seri-
ous; and
‘‘(2) can be addressed in a cost-effective man-
ner, with the goal of achieving the greatest overall
net reduction in risks with the public and private
sector resources to be expended.
‘‘(b) In identifying the sources of the most serious
risks under subsection (a), the head of the agency shall
consider, at a minimum—
‘‘(1) the plausible likelihood and severity of the
effect; and
‘‘(2) the plausible number and groups of indi-
viduals potentially affected.
‘‘(c) The head of the agency shall incorporate the pri-
orities identified in subsection (a) into the budget, strate-
gic planning, and research activities of the agency by, in
the agency’s annual budget request to Congress—
‘‘(1) identifying which risks the agency has de-
termined are the most serious and can be addressed
in a cost-effective manner under subsection (a), and
the basis for that determination;
‘‘(2) explicitly identifying how the agency’s re-
quested funds will be used to address those risks;
‘‘(3) identifying any statutory, regulatory, or
administrative obstacles to allocating agency re-
sources in accordance with the priorities established
under subsection (a); and
‘‘(4) explicitly considering the requirements of
subsection (a) when preparing the agency’s regu-
latory agenda or other strategic plan, and providing
an explanation of how the agenda or plan reflects
those requirements and the comparative risk analy-
sis when publishing any such agenda or strategic
plan.
‘‘(d) In March of each year, the head of each agency
shall submit to Congress specific recommendations for re-
pealing or modifying laws that would better enable the
agency to prioritize its activities to address the risks to
human health, safety, and the environment that are the
most serious and can be addressed in a cost-effective man-
ner consistent with the requirements of subsection (a).
‘‘§ 630. Establishment of program
‘‘(a) The President shall develop a systematic pro-
gram for the peer review of work products covered by sub-
section (c), which program shall be used uniformly across
the agencies.
‘‘(b) The program under subsection (a)—
‘‘(1) shall provide for the creation of peer re-
view panels consisting of independent and external
experts who are broadly representative and balanced
to the extent feasible;
‘‘(2) shall not exclude peer reviewers merely be-
cause they represent entities that may have a poten-
tial interest in the outcome, if that interest is fully
disclosed;
‘‘(3) shall exclude, to the maximum extent prac-
ticable, any peer reviewer who has been involved in
any previous analysis of the tests and evidence pre-
sented for certification by the peer review panel; and
‘‘(4) shall provide for a timely completed peer
review, meeting agency deadlines, which contains a
balanced presentation of all considerations, including
minority reports and an agency response to all sig-
nificant peer review comments.
‘‘(c) The peer review and the agency’s responses shall
be made available to the public and shall be made part
of the administrative record for purposes of judicial review
of any final agency action.
‘‘(d) The proceedings of peer review panels under this
section shall be subject to the applicable provisions of the
Federal Advisory Committee Act (5 U.S.C. App.).’’.
(b) CONFORMING
AMENDMENT
AND
TECHNICAL
CORRECTIONS.—
(1) CONFORMING
AMENDMENTS.—Part I of
title 5, United States Code, is amended by striking
the chapter analysis for chapter 6 and inserting the
following:
‘‘CHAPTER 6—THE ANALYSIS OF
REGULATORY FUNCTIONS
‘‘SUBCHAPTER I—REGULATORY ANALYSIS
‘‘Sec.
‘‘601.
Definitions.
‘‘602.
Regulatory agenda.
‘‘603.
Initial regulatory flexibility analysis.
‘‘604.
Final regulatory flexibility analysis.
‘‘605.
Avoidance of duplicative or unnecessary analyses.
‘‘606.
Effect on other law.
‘‘607.
Preparation of analyses.
‘‘608.
Procedure for waiver or delay of completion.
‘‘609.
Procedures for gathering comments.
‘‘610.
Periodic review of rules.
‘‘611.
Judicial review.
‘‘612.
Reports and intervention rights.
‘‘SUBCHAPTER II—RISK ASSESSMENTS
‘‘621.
Definitions.
‘‘622.
Applicability.
‘‘623.
Rule of construction.
‘‘624.
Requirement to prepare risk assessments.
‘‘625.
Principles for risk assessment.
‘‘626.
Principles for risk characterization and communication.
‘‘627.
Regulations; plan for assessing new information.
‘‘628.
Decisional criteria.
‘‘629.
Regulatory priorities.
‘‘640.
Establishment of program.
‘‘SUBCHAPTER I—REGULATORY ANALYSIS’’.
(2) TECHNICAL CORRECTIONS.—The part anal-
ysis for part I of title 5, United States Code, is
amended—
(A) in the item relating to chapter 5 by
striking ‘‘501’’ and inserting ‘‘500’’; and
(B) by inserting after the item relating to
chapter 5 the following:
‘‘6. The Analysis of Regulatory Functions ...............................
601’’.
TITLE III—REPEAL OF
LIMITATIONS ON EXPORTS
SEC. 301. REPEAL OF LIMITATIONS ON EXPORTS.
(a) REPEAL.—Section 7 of the Export Administra-
tion Act of 1979 (50 U.S.C. App. 2406) is amended—
(1) in subsection (a), by adding at the end the
following new paragraph:
‘‘(4) Notwithstanding paragraph (1) and any other
law, the President may not prohibit or curtail the export
of domestically produced crude oil other than crude oil
produced from the naval petroleum reserves (as defined
in section 7420 of title 10, United States Code).’’; and
(2) by striking subsection (d) and inserting the
following:
‘‘(d) [Reserved].’’.
(b) CONFORMING AMENDMENTS.—
(1) MINERAL LANDS LEASING ACT.—Section 28
of the Act entitled ‘‘An Act to promote the mining
of coal, phosphate, oil, oil shale, gas, and sodium or
the public domain’’, approved February 25, 1920
(30 U.S.C. 185) is amended by striking subsection
(u) and inserting the following:
‘‘(u) [Reserved].’’.
(2) 
ENERGY
POLICY
AND
CONSERVATION
ACT.—Section 103 of the Energy Policy and Con-
servation Act (42 U.S.C. 6212) is amended—
(A) in subsection (a) by inserting ‘‘(not in-
cluding crude oil)’’ after ‘‘feedstocks’’; and
(B) in subsection (b—
(i) in paragraph (1)—
(I) by striking ‘‘crude oil and’’;
and
(II) by striking ‘‘crude oil or’’;
and
(ii) in paragraph (2) by striking
‘‘crude oil or’’.
(3) OUTER CONTINENTAL SHELF LANDS ACT.—
Section 28 of the Outer Continental Shelf Lands Act
(43 U.S.C. 1354) is repealed.
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