(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
fails to comply with statutes and regulations that
govern the performance of inherently governmental
functions;
(3) provide enhanced scrutiny and management
oversight when the Department is contracting for
functions that, although not inherently govern-
mental, closely support the performance of inher-
ently governmental functions; and
(4) promulgate regulations in the Department’s
supplement to the Federal Acquisition Regulation
that specify that inherently governmental functions
of the Department include—
(A) regulation of public health, industry,
commerce, or the environment;
(B) development (other than technical as-
sistance) and drafting of rules, standards, regu-
lations, and Government policies; and
(C) preparation of contractual documents,
including solicitations, specifications, state-
ments of work, and contract orders, except in
the case of specifications and statements of
work of a technical nature requiring expertise
not available in the Department.
(d) DISCLAIMER.—This section shall not be con-
strued as creating—
(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 sub-
mitted; 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 123) 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 shall be al-
lowable only if supported by documentation, which shall
include documentation of, as specified by regulations
issued by the Secretary under section 123, 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. RISK ESTIMATE AND ANALYSIS.
(a) IN GENERAL.—In proposing any regulation, or
promulgating any final regulation, relating to public
health and safety or the environment after the date of en-
actment of this Act, the Secretary shall publish in the
Federal Register—
(1) an estimate, performed with as much speci-
ficity as practicable, of the risk to the health and
safety of individual members of the public addressed
by the regulation and its effect on human health or
the environment and the costs associated with imple-
mentation of, and compliance with, the regulation;
(2) a comparative analysis of the risk addressed
by the regulation relative to other risks to which the
public is exposed;
(3) the Secretary’s certification that—
(A) the estimate under paragraph (1) and
the analysis under paragraph (2) are based
upon a scientific evaluation (including evalua-
tion by the Science Advisory Board established
by section 121) of the risk to the health and
safety of individual members of the public and
to human health or the environment and are
supported by the best available scientific data;
(B) the regulation will substantially ad-
vance the purpose of protecting the public
health and safety or the environment against
the specified identified risk; and
(C) the regulation will produce benefits to
the public health and safety or the environment
that will justify the cost to the Government and
the public of implementation of and compliance
with the regulation.
(b) REPORT REQUIRED.—In the event that the Sec-
retary cannot make the certification required under sub-
section (a), the Secretary shall report to Congress that
such certification cannot be made and shall include a
statement of the reasons therefor in such report and in
the final regulation.
(c) CONSTRUCTION.—The certification required by
this section shall not be construed to amend, modify, or
alter any statute and shall not be subject to judicial re-
view.
SEC. 121. SCIENCE ADVISORY BOARD.
There is established in the Department a Science Ad-
visory Board, which shall review and provide comments
on the scientific contents of any rule promulgated by the
Secretary.
SEC. 122. 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
123, 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. 123. REGULATIONS.
The Secretary may promulgate such regulations as
may be necessary to implement the provisions of this Act.
SEC. 124. 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. 125. 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. 126. 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 ‘‘Chief Financial Officer, Envi-
ronmental Protection Agency’’ and inserting ‘‘Chief
Financial Officer, Department of Environmental
Protection’’;
(3) by striking ‘‘Chief Information Officer, En-
vironmental 
Protection 
Agency’’ 
and 
inserting
‘‘Chief Information Officer, Department of Environ-
mental Protection’’;
(4) by striking each reference to an Assistant
Administrator, or Assistant Administrators, of the
Environmental Protection Agency; and
(5) 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,’’.
(i) CHIEF FINANCIAL OFFICERS ACT OF 1990.—Sec-
tion 901(b)(1) of title 31, United States Code, is amended
in subparagraph (O) by striking ‘‘Environmental Protec-
tion Agency’’ and inserting ‘‘Department of Environ-
mental Protection’’.
SEC. 127. ADDITIONAL CONFORMING AMENDMENTS.
After consultation with the Committee on Govern-
ment Reform of the House of Representatives and appro-
priate committees of the Senate, the Secretary shall pre-
pare 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
Agency are used to carry out functions of the Department
before procuring new stationery, printed forms, and other
supplies for the Department.
(b) LIMITATION.—Notwithstanding subsection (a),
the Secretary may procure stationery, printed forms, and
other supplies for the specific use of the Secretary and
the Office of the Secretary.
Æ