II 113th CONGRESS 1st Session S. 428 IN THE SENATE OF THE UNITED STATES February 28, 2013 Mr. Begich introduced the following bill; which was read twice and referred to the Committee on Environment and Public Works A BILL To expedite the development of Arctic deepwater ports and for other purposes.

1. Short title This Act may be cited as the Arctic Deep Water Ports Enhancement Act of 2013 . 2. Findings Congress finds the following: (1) There is a pressing national need to prepare for increasing human activity and expanding commerce in the Arctic. Such activity will likely include oil and gas development, fishing, shipping, and tourism. (2) To respond to this increase in activity, there is a need for port facilities in the Arctic that can accommodate deep-draft ships, support search and rescue activities, scientific research, and Arctic oil and gas development, and serve as an Arctic harbor of refuge. (3) The residents of the Arctic region of the United States are under-served in freight transportation, and deep-draft ports in the Arctic will enhance economic opportunities and quality of life for such residents. (4) Arctic communities rely on subsistence hunting for economic and cultural survival, and it is critical to protect the Arctic environment and maintain subsistence resources. (5) Coordinating and expediting the development of deep-draft ports in the Arctic is in the national interest. 3. Definitions In this Act: (1) Arctic deepwater port The term Arctic deepwater port means any port facility located— (A) in waters north of 60 degrees latitude north and west of 162 degrees longitude west that have a water depth of not less than 30 feet; or (B) in waters north of 63 degrees latitude north that have a water depth of not less than 30 feet. (2) Consumer Price Index The term Consumer Price Index means the Consumer Price Index for all-urban consumers, United States city average, as published by the Bureau of Labor Statistics, or if such index shall cease to be published, any successor index or reasonable substitute thereof. (3) Coordinator The term Coordinator means the Federal Coordinator for Arctic Deepwater Port Projects appointed under section 7(b)(1). (4) Developer The term developer , with respect to an Arctic deepwater port, means any private entity, State, municipal, or borough government, Alaska Native corporation created by section 7 of the Alaska Native Claims Settlement Act (43 U.S.C. 1606), or the western Alaska community development quota program created by section 305(i)(1) of the Magnuson-Stevens Fishery Conservation and Management Act that is seeking to develop an arctic deepwater port. (5) Development The term development , with respect to an Arctic deepwater port, means any aspect of the development, construction, or operation of such port. (6) Eligible lender The term eligible lender means any non-Federal qualified institutional buyer (as defined by section 230.144A(a) of title 17, Code of Federal Regulations (or any successor regulation), known as Rule 144A(a) of the Securities and Exchange Commission and issued under the Securities Act of 1933), including— (A) a qualified retirement plan (as defined in section 4974(c) of the Internal Revenue Code of 1986 ( 26 U.S.C. 4974(c) ) that is a qualified institutional buyer; and (B) a governmental plan (as defined in section 414(d) of the Internal Revenue Code of 1986 (26 U.S.C. 414(d)) that is a qualified institutional buyer. (7) Environmental review The term environmental review means an environmental impact statement, environmental assessment, or other document required for compliance with the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ). (8) Federal guarantee instrument The term Federal guarantee instrument means any guarantee or other pledge by the Secretary to pledge the full faith and credit of the United States to pay all of the principal and interest on any loan or other debt obligation entered into by a holder of a certificate of public convenience and necessity. (9) Office Except as otherwise specifically provided, the term Office means the Office of the Federal Arctic Deepwater Port Coordinator established under section 7(a). (10) Secretary Except as otherwise specifically provided, the term Secretary means the Secretary of the Army. 4. Arctic deepwater port development partnerships The Secretary is authorized to enter into partnership agreements with developers— (1) to plan, survey, design, construct, maintain, or operate Arctic deepwater ports; (2) to provide technical assistance for the activities described in paragraph (1); and (3) to receive funds for such activities from Federal, non-Federal, and private entities, including developers of an Arctic deepwater ports that have an agreement with the Secretary for such an activity under this section. 5. Arctic Port Infrastructure Development Fund (a) Establishment There is established in the Treasury of the United States a trust fund to be known as the Arctic Port Infrastructure Development Fund , consisting of such amounts as may be appropriated or credited to such Fund, as provided in this section. (b) Deposits in the Fund There may be deposited into the Arctic Port Infrastructure Development Fund— (1) amounts from Federal, non-Federal, and private entities received by the Secretary under section 4(3); and (2) such amounts as may be appropriated or transferred to the Fund under this section. (c) Expenditures Amounts in the Arctic Port Infrastructure Development Fund shall be available to the Secretary— (1) to administer and carry out Arctic deepwater port development projects; (2) to make refunds related to Arctic deepwater port development projects that will not be completed; and (3) to make loan guarantees as described in subsection (d). (d) Loan guarantees (1) Authority (A) In general The Secretary may enter into agreements with developers to issue Federal guarantee instruments with respect to loans and other debt obligations for Arctic deepwater ports. (B) Expiration of authority The authority of the Secretary to issue Federal guarantee instruments under this section for Arctic deepwater ports shall expire on the date that is 30 years from the date of enactment of this Act. (2) Conditions The Secretary may issue a Federal guarantee instrument under this section for Arctic deepwater ports only if the loan or other debt obligation guaranteed by the instrument has been issued by an eligible lender. (3) Limitations on amounts (A) Limitation on percentage of total capital costs The amount of loans and other debt obligations guaranteed under this section for Arctic deepwater ports shall not exceed 75 percent of the total capital costs of the project, including interest during construction. (B) Maximum amount guaranteed The principal amount of loans and other debt obligations guaranteed under this section shall not exceed, in the aggregate, $3,000,000,000, which amount shall be indexed for United States dollar inflation from the date of the enactment of this Act, as measured by the Consumer Price Index. (4) Loan terms and fees (A) In general The Secretary may issue Federal guarantee instruments under this section that take into account repayment profiles and grace periods justified by project cash flows and project-specific considerations. (B) Maximum loan term The term of any loan guaranteed under this section shall not exceed 30 years. (C) Fees An eligible lender may assess and collect from the borrower such other fees and costs associated with the application and origination of the loan or other debt obligation as are reasonable and customary for a project finance transaction in the transportation infrastructure sector. (5) Regulations The Secretary may issue regulations to carry out this subsection. (e) Transfers, availability of funds (1) Authorization of appropriations (A) Arctic deepwater port development projects There are authorized to be appropriated to the Arctic Port Infrastructure Development Fund such sums as may be necessary to carry out paragraphs (1) and (2) of subsection (c). (B) Loan guarantees There are authorized to be appropriated such sums as may be necessary to cover the cost of loan guarantees under this section, as defined by section 502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5)). (2) Transfers Amounts appropriated or otherwise made available for any fiscal year for an Arctic deepwater port facility may be transferred, at the option of the recipient of such amounts, to the Arctic Port Infrastructure Development Fund and administered by the Secretary as a component of an Arctic deepwater port development project. (3) Availability of funds Amounts appropriated pursuant to an authorization of appropriations in this subsection and other amounts in the Arctic Port Infrastructure Fund shall remain available until expended. 6. Environmental reviews for Arctic deepwater ports (a) Designation of lead agency (1) In general The Secretary— (A) shall be the lead for purposes of complying with the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ) for the development of an Arctic deepwater port, regardless of the agency or department of the United States taking the action that requires compliance with such Act; and (B) shall be responsible for preparing any environmental review related to such action. (2) Consolidation of statements In carrying out paragraph (1), with respect to any environmental review for an action related to development of an Arctic deepwater port, the Secretary shall prepare a single document, which shall consolidate the environmental reviews of each agency or department of the United States considering any aspect of such action. (3) Satisfaction of requirements An environmental review prepared by the Secretary under paragraph (1) for an action related to development of an Arctic deepwater port shall be adopted by each appropriate agency or department of the United States in satisfaction of the responsibilities of such agency or department under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) with respect to such action. (b) Expedited process The Secretary shall— (1) not later than 1 year after the date that the Secretary determines that an application for an environmental review related to an Arctic deepwater port is complete, issue a draft version of the environmental review; and (2) not later than 180 days after the date of issuance of such draft version, issue the final version of the environmental review, unless the Secretary for good cause determines that additional time is needed. (c) Cooperation with other agencies (1) In general Each agency or department of the United States that, if not for subsection (a), would be required to prepare an environmental review for any aspect of the development of an Arctic deepwater port project shall— (A) cooperate with the Secretary; and (B) comply with deadlines established by subsection (b) for the issuance of the environmental review by the Secretary. 7. Federal Coordinator for Arctic Deepwater Port Projects (a) Office of the Federal Arctic Deepwater Port Coordinator There is established, as an independent office in the Office of the Assistant Secretary of the Army for Civil Works of the Department of the Army, the Office of the Federal Arctic Deepwater Port Coordinator. (b) Coordinator for Arctic Deepwater Port Projects (1) Appointment The Office shall be headed by a Federal Coordinator for Arctic Deepwater Port Projects, who shall be appointed by the President, by and with the advice and consent of the Senate. (2) Compensation The Coordinator shall be compensated at the rate prescribed for level III of the Executive Schedule set out in section 5314 of title 5, United States Code. (3) Duties The Coordinator shall be responsible for— (A) coordinating the expeditious discharge of all activities of the agencies and departments of the United States for the preparation of environmental reviews related to the development of an Arctic deepwater port; (B) ensuring the compliance of such agencies or departments with the provisions of this Act; (C) assessing potential partnerships described in section 4 and advising the Secretary on such partnerships; and (D) assessing applications for loan guarantees under section 5(d) and advising the Secretary on such terms as may be advisable to issue such guarantees. (c) Prohibition of certain terms and conditions No agency or department of the United States may include in any certificate, right-of-way, permit, lease, or other authorization issued for an Arctic deepwater port any term or condition that may be permitted, but is not required by, any applicable law if the Coordinator determines that such term or condition would prevent or impair in any significant respect the expeditious construction and operation, or an expansion, of an Arctic deepwater port. (d) Prohibition of certain actions Unless required by law, no agency or department of the United States shall add to, amend, or abrogate any certificate, right-of-way, permit, lease, or other authorization issued to an Arctic deepwater port if the Coordinator determines that the action would prevent or impair in any significant respect the expeditious construction and operation, or an expansion, of an Arctic deepwater port. 8. Assistance to developers of Arctic deepwater ports (a) Infrastructure finance funding Notwithstanding any limitation of chapter 6 of title 23, United States Code, a developer of an Arctic deepwater port shall be eligible for assistance from the funds made available pursuant to such chapter for the development of such port. (b) Role of the Coast Guard (1) In general The Commandant of the Coast Guard is authorized— (A) to enter into long-term lease for moorage, warehousing, hangar space, and logistical support with a developer of an Arctic deep water port; and (B) to convey any property deemed surplus to the Coast Guard’s needs in Alaska to any Alaskan borough, municipality or native corporation seeking to develop an Arctic deepwater port. 9. Deepwater Port Act of 1974 amendment Section 3(9)(A) of the Deepwater Port Act of 1974 ( 33 U.S.C. 1502(9)(A) ) is amended by striking uses and inserting uses, including general handling of cargo, ship service or repair, logistical support for government and private sector activities at sea, or service as a harbor of refuge, . 10. Authorization of appropriations There is authorized to be appropriated $3,000,000 for each fiscal year to carry out this Act.