Bonding Reform and Taxpayer Protection Act of 2021

Bill: 117-hr-1505
Sponsor: Rep. Lowenthal, Alan S. [D-CA-47]
Introduced: 2021-03-02 in the House
Policy area: Energy
Subjects: Administrative law and regulatory procedures
Department of Agriculture
Department of the Interior
Ecology
Environmental health
Hazardous wastes and toxic substances
Hydrology and hydrography
Land use and conservation
Licensing and registrations
Mining
Oil and gas
Pollution liability
Securities
User charges and fees
Water quality
Wildlife conservation and habitat protection

Summary:
action_date: 2021-03-02
text: 

Bonding Reform and Taxpayer Protection Act of 2021

 
This bill revises bonding requirements for oil and gas development on public land leased from the federal government. Such bonds are required to ensure oil and gas developers have adequate financial resources for implementing reclamation plans to restore public land after oil and gas development (e.g., drilling operations) ceases.
 
Specifically, the bill increases the amount of bond that oil and gas developers must provide prior to conducting surface-disturbing activities and requires such amounts to adjust every three years for inflation. In addition, the bill sets fees to cover the cost for inspection and enforcement with respect to such leases.
 
The bill also requires the Department of the Interior and the Department of Agriculture (USDA) to establish uniform standards for all interim and final reclamation plans. Interior and USDA may not release any bond amounts until the standards have been met by oil and gas developers and the inspection fees have been paid.
 
Finally, the bill gives the U.S. Fish and Wildlife Service the authority to obtain and retain adequate financial assurances (e.g., bonds) from nonfederal entities to repair potential damages to resources of the National Wildlife Refuge System prior to the commencement of activities related to mineral development, such as oil and gas operations.
action_date: 2022-12-14
text: 

Bonding Reform and Taxpayer Protection Act of 2021

 
This bill revises bonding requirements for oil and gas development on public land leased from the federal government. Such bonds are required to ensure oil and gas developers have adequate financial resources for implementing reclamation plans to restore public land after oil and gas development (e.g., drilling operations) ceases.
 
Specifically, the bill increases the bond amounts that oil and gas developers must provide prior to conducting surface-disturbing activities and requires such amounts to adjust at least once every three years for inflation. In addition, the bill sets fees to cover the cost for inspection and enforcement with respect to such leases.
 
The bill also requires the Bureau of Land Management (BLM) and the U.S. Forest Service (USFS) to establish uniform standards for all interim and final reclamation plans. BLM and USFS may not release any bond amounts until the standards have been met by oil and gas developers and the inspection fees have been paid. 

Finally, the bill gives the U.S. Fish and Wildlife Service the authority to obtain and retain adequate financial assurances (e.g., bonds) from nonfederal entities to repair potential damages to resources of the National Wildlife Refuge System prior to the commencement of activities related to mineral development, such as oil and gas operations.

Legislative actions:
action_date: 2022-12-14
text: Placed on the Union Calendar, Calendar No. 453.
action_date: 2022-12-14
text: Reported (Amended) by the Committee on Natural Resources. H. Rept. 117-629.
action_date: 2022-12-14
text: Reported (Amended) by the Committee on Natural Resources. H. Rept. 117-629.
action_date: 2021-05-05
text: Ordered to be Reported by the Yeas and Nays: 23 - 15.
action_date: 2021-05-05
text: Committee Consideration and Mark-up Session Held.
action_date: 2021-05-05
text: Subcommittee on Energy and Mineral Resources Discharged.
action_date: 2021-03-09
text: Subcommittee Hearings Held.
action_date: 2021-03-08
text: Referred to the Subcommittee on Energy and Mineral Resources.
action_date: 2021-03-02
text: Referred to the House Committee on Natural Resources.
action_date: 2021-03-02
text: Introduced in House
action_date: 2021-03-02
text: Introduced in House