[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 987 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 987

  To encourage production of oil and gas within the United States by 
 providing tax incentives and easing regulatory burdens, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 16, 1995

    Mr. Lucas (for himself, Mr. Coburn, Mr. Brewster, Mr. Watts of 
  Oklahoma, Mr. Istook, Mr. Largent, and Mr. Poshard) introduced the 
 following bill; which was referred to the Committee on Ways and Means 
       and, in addition, to the Committees on Transportation and 
Infrastructure, Resources, the Judiciary, Commerce, Science, Government 
 Reform and Oversight, and International Relations, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
  To encourage production of oil and gas within the United States by 
 providing tax incentives and easing regulatory burdens, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Domestic Oil and 
Gas Production and Preservation Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
           TITLE I--TAX INCENTIVES FOR OIL AND GAS PRODUCTION

Sec. 100. Amendment of 1986 Code.
                     Subtitle A--Production Credit

Sec. 101. Tax credit for marginal and new domestic oil and natural gas 
                            production.
           Subtitle B--Modifications to Percentage Depletion

Sec. 111. Elimination of net income limitation on percentage depletion 
                            for oil and gas.
Sec. 112. All marginal production eligible for percentage depletion.
Sec. 113. Allocation of depletable quantities.
Sec. 114. Percentage depletion rate for marginal production.
                      Subtitle C--Other Provisions

Sec. 121. Election to expense geological and geophysical expenditures.
Sec. 122. Enhanced oil recovery credit.
Sec. 123. Election for optional 5-year writeoff of intangible drilling 
                            costs.
Sec. 124. Allocation of deductions in determining net income.
                      TITLE II--REGULATORY REFORM

                Subtitle A--Oil Pollution Act Amendments

Sec. 201. Definition of responsible party.
Sec. 202. Amount of financial responsibility.
                   Subtitle B--Oil and Gas Royalties

Sec. 221. Period of limitation for collection of oil and gas royalties.
Sec. 222. Reduction of royalties.
                  Subtitle C--Private Property Rights

Sec. 231. Short title.
Sec. 232. Findings and purpose.
Sec. 233. Definitions.
Sec. 234. Protection of private property rights.
Sec. 235. Property owner consent for entry.
Sec. 236. Right to review and dispute data collected from private 
                            property.
Sec. 237. Right to an administrative appeal of wetlands decisions.
Sec. 238. Right to administrative appeal under the Endangered Species 
                            Act of 1973.
Sec. 239. Compensation for taking of private property.
Sec. 240. Private property owner participation in cooperative 
                            agreements.
                      Subtitle D--Risk Assessments

Sec. 251. Risk assessments.
              TITLE III--REPEAL OF LIMITATIONS ON EXPORTS

Sec. 301. Repeal of limitations on exports.

           TITLE I--TAX INCENTIVES FOR OIL AND GAS PRODUCTION

SEC. 100. AMENDMENT OF 1986 CODE.

    Except as otherwise expressly provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Internal Revenue Code of 
1986.

                     Subtitle A--Production Credit

SEC. 101. TAX CREDIT FOR MARGINAL AND NEW DOMESTIC OIL AND NATURAL GAS 
              PRODUCTION.

    (a) Credit for Producing Oil and Gas From New Wells and Marginal 
Wells.--Subpart D of part IV of subchapter A of chapter 1 (relating to 
business credits) is amended by adding at the end the following new 
section:

``SEC. 45C. CREDIT FOR PRODUCING OIL AND GAS FROM NEW WELLS AND 
              MARGINAL WELLS.

    ``(a) General Rule.--For purposes of section 38, the new and 
marginal well production credit for any taxable year is an amount equal 
to the product of--
            ``(1) the credit amount, and
            ``(2) the qualified crude oil production and the qualified 
        natural gas production which is attributable to the taxpayer.
    ``(b) Credit Amount.--For purposes of this section--
            ``(1) In general.--The credit amount is--
                    ``(A) $3 per barrel of qualified crude oil 
                production, and
                    ``(B) 50 cents per 1,000 cubic feet of qualified 
                natural gas production.
            ``(2) Reduction as oil and gas prices increase.--
                    ``(A) In general.--The $3 and 50 cents amounts 
                under paragraph (1) shall each be reduced (but not 
                below zero) by an amount which bears the same ratio to 
                such amount (determined without regard to this 
                paragraph) as--
                            ``(i) the excess of the applicable 
                        reference price over $14 ($2.49 for qualified 
                        natural gas production), bears to
                            ``(ii) $6 ($1.06 for qualified natural gas 
                        production).
                The applicable reference price for a taxable year is 
                the reference price for the calendar year preceding the 
                calendar year in which the taxable year begins.
                    ``(B) Inflation adjustment.--In the case of any 
                taxable year beginning in a calendar year after 1995, 
                each of the dollar amounts contained in subparagraph 
                (A) shall be increased to an amount equal to such 
                dollar amount multiplied by the inflation adjustment 
                factor for such calendar year (determined under section 
                43(b)(3)(B) by substituting `1994' for `1990').
                    ``(C) Reference price.--For purposes of this 
                paragraph, the term `reference price' means, with 
                respect to any calendar year--
                            ``(i) in the case of qualified crude oil 
                        production, the reference price determined 
                        under section 29(d)(2)(C), and
                            ``(ii) in the case of qualified natural gas 
                        production, the Secretary's estimate of the 
                        annual average wellhead price per 1,000 cubic 
                        feet for all domestic natural gas.
    ``(c) Qualified Crude Oil and Natural Gas Production.--For purposes 
of this section--
            ``(1) In general.--The terms `qualified crude oil 
        production' and `qualified natural gas production' mean 
        domestic crude oil or natural gas which is produced from--
                    ``(A) a marginal well, or
                    ``(B) a new well.
            ``(2) Limitation on amount of production which may 
        qualify.--
                    ``(A) In general.--Crude oil or natural gas 
                produced during any taxable year from any well shall 
                not be treated as qualified crude oil production or 
                qualified natural gas production to the extent 
                production from the well during the taxable year 
                exceeds--
                            ``(i) in the case of a marginal well, 1,095 
                        barrels or barrel equivalents, or
                            ``(ii) in the case of a new well--
                                    ``(I) 5,475 barrels in the case of 
                                crude oil, or
                                    ``(II) 109,500,000 cubic feet in 
                                the case of natural gas.
                    ``(B) Special rule where well produces both.--In 
                the case of a new well which produces crude oil and 
                natural gas, the limitation for any taxable year 
                applicable to natural gas produced from the well shall 
                be reduced by the barrel equivalents (expressed in 
                cubic feet) of the crude oil produced from the well 
                during the taxable year.
                    ``(C) Proportionate reductions.--
                            ``(i) Short taxable years.--In the case of 
                        a short taxable year, the limitations under 
                        this paragraph shall be proportionately reduced 
                        to reflect the ratio which the number of days 
                        in the year bears to 365.
                            ``(ii) Wells not in production entire 
                        year.--In the case of a well which is not 
                        capable of production during each day of a 
                        taxable year, the limitations under this 
                        paragraph applicable to the well shall be 
                        proportionately reduced to reflect the ratio 
                        which the number of days of production bears to 
                        the total number of days in the taxable year.
            ``(3) Definitions.--
                    ``(A) Marginal well.--The term `marginal well' 
                means a domestic well (other than a new well)--
                            ``(i) which during the taxable year has 
                        marginal production (as defined in section 
                        613A(c)(6)), or
                            ``(ii) which, during the taxable year--
                                    ``(I) has average daily production 
                                of not more than 25 barrel equivalents, 
                                and
                                    ``(II) produces water at a rate not 
                                less than 95 percent of total well 
                                effluent.
                    ``(B) New well.--The term `new well' means a 
                domestic well drilled after December 31, 1994.
                    ``(C) Crude oil, etc.--The terms `crude oil', 
                `natural gas', `domestic', and `barrel' have the 
                meanings given such terms by section 613A(e).
                    ``(D) Barrel equivalent.--The term `barrel 
                equivalent' means, with respect to natural gas, a 
                conversion ratio of 6,000 cubic feet of natural gas to 
                1 barrel of crude oil.
    ``(d) Other Rules.--
            ``(1) Production attributable to the taxpayer.--In the case 
        of a marginal well or new well in which there is more than one 
        owner of operating interests in the well and the crude oil or 
        natural gas production exceeds the limitation under subsection 
        (c)(2), qualifying crude oil production or qualifying natural 
        gas production attributable to the taxpayer shall be determined 
        on the basis of the ratio which taxpayer's revenue interest in 
        the production bears to the aggregate of the revenue interests 
        of all operating interest owners in the production.
            ``(2) Operating interest required.--Any credit under this 
        section may be claimed only on production which is attributable 
        to the holder of an operating interest.
            ``(3) Production from nonconventional sources excluded.--In 
        the case of production from a marginal well which is eligible 
        for the credit allowed under section 29 for the taxable year, 
        no credit shall be allowable under this section unless the 
        taxpayer elects not to claim the credit under section 29 with 
        respect to the well.''
    (b) Credit Treated as Business Credit.--Section 38(b) is amended by 
striking ``plus'' at the end of paragraph (10), by striking the period 
at the end of paragraph (11) and inserting ``, plus'', and by adding at 
the end the following new paragraph:
            ``(12) the new and marginal oil and gas well production 
        credit determined under section 45C(a).''
    (c) Credit Allowed Against Regular and Minimum Tax.--
            (1) In general.--Subsection (c) of section 38 (relating to 
        limitation based on amount of tax) is amended by redesignating 
        paragraph (3) as paragraph (4) and by inserting after paragraph 
        (2) the following new paragraph:
            ``(3) Special rules for oil and gas production credit.--
                    ``(A) In general.--In the case of the oil and gas 
                production credit--
                            ``(i) this section and section 39 shall be 
                        applied separately with respect to the credit, 
                        and
                            ``(ii) in applying paragraph (1) to the 
                        credit--
                                    ``(I) subparagraph (A) shall not 
                                apply, and
                                    ``(II) the limitation under 
                                paragraph (1) (as modified by subclause 
                                (I)) shall be reduced by the credit 
                                allowed under subsection (a) for the 
                                taxable year (other than the oil and 
                                gas production credit).
                    ``(B) Oil and gas production credit.--For purposes 
                of this subsection, the term `oil and gas production 
                credit' means the credit allowable under subsection (a) 
                by reason of section 45C(a).''
            (2) Conforming amendment.--Subclause (II) of section 
        38(c)(2)(A)(ii) of such Code is amended by inserting ``or the 
        oil and gas production credit'' after ``employment credit''.
    (d) Coordination With Section 29.--Section 29(a) is amended by 
striking ``There'' and inserting ``At the election of the taxpayer, 
there''.
    (e) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 is amended by adding at the end 
the following item:

        ``45C. Credit for producing oil and gas from new wells and 
                            marginal wells.''
    (f) Effective Date.--The amendments made by this section shall 
apply to production after the date of the enactment of this Act.

           Subtitle B--Modifications to Percentage Depletion

SEC. 111. ELIMINATION OF NET INCOME LIMITATION ON PERCENTAGE DEPLETION 
              FOR OIL AND GAS.

    (a) Elimination.--
            (1) In general.--Paragraph (1) of subsection (d) of section 
        613A (relating to the limitation based on taxable income for 
        percentage depletion in the case of oil and gas wells) is 
        repealed.
            (2) Other production.--The second sentence of subsection 
        (a) of section 613 of the Internal Revenue Code of 1986 
        (relating to percentage depletion) is amended to read as 
        follows: ``Except in the case of oil and gas wells, such 
        allowance shall not exceed 50 percent of the taxpayer's taxable 
        income from the property (computed without allowance for 
        depletion).''
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1994.

SEC. 112. ALL MARGINAL PRODUCTION ELIGIBLE FOR PERCENTAGE DEPLETION.

    (a) In General.--Paragraph (6) of section 613A(c) (relating to 
marginal production) is amended to read as follows:
            ``(6) Separate application to marginal production.--
                    ``(A) In general.--Except as provided in subsection 
                (d)--
                            ``(i) the allowance for depletion under 
                        section 611 with respect to all of a taxpayer's 
                        marginal production of domestic crude oil and 
                        domestic natural gas shall be computed in 
                        accordance with section 613, except that, for 
                        purposes of section 613(a), the applicable 
                        percentage shall be substituted for the 
                        percentage specified in section 613(b), and
                            ``(ii) such marginal production shall not 
                        be taken into account under paragraph (1), 
                        including for purposes of determining the 
                        taxpayer's average daily production of domestic 
                        crude oil or domestic natural gas eligible for 
                        application of paragraph (1).
                    ``(B) Applicable percentage.--For purposes of 
                subparagraph (A), the term `applicable percentage' 
                means the percentage (not greater than 25 percent) 
                equal to the sum of--
                            ``(i) 15 percent, plus
                            ``(ii) 1 percentage point for each whole 
                        dollar by which $20 exceeds the reference price 
                        for crude oil for the calendar year preceding 
                        the calendar year in which the taxable year 
                        begins.
                For purposes of this paragraph, the term `reference 
                price' means, with respect to any calendar year, the 
                reference price determined for such calendar year under 
                section 29(d)(2)(C).
                    ``(C) Marginal production.--The term `marginal 
                production' means domestic crude oil or domestic 
                natural gas which is produced during any taxable year 
                from a property which--
                            ``(i) is a stripper well property for the 
                        calendar year in which the taxable year begins, 
                        or
                            ``(ii) is a property substantially all of 
                        the production of which during such calendar 
                        year is heavy oil.
                    ``(D) Stripper well property.--For purposes of this 
                paragraph, the term `stripper well property' means, 
                with respect to any calendar year, any property with 
                respect to which the amount determined by dividing--
                            ``(i) the average daily production of 
                        domestic crude oil and domestic natural gas 
                        from producing wells on such property for such 
                        calendar year, by
                            ``(ii) the number of such wells,
                is 15-barrel equivalents or less.
                    ``(E) Heavy oil.--For purposes of this paragraph, 
                the term `heavy oil' means domestic crude oil produced 
                from any property if such crude oil had a weighted 
                average gravity of 20 degrees API or less (corrected to 
                60 degrees Fahrenheit).''
    (b) Conforming Amendment.--Paragraph (3) of section 613A(c) 
(defining depletable oil quantity) is amended to read as follows:
            ``(3) Depletable oil quantity.--For purposes of paragraph 
        (1), the taxpayer's depletable oil quantity is 1,000 barrels.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1994.

SEC. 113. ALLOCATION OF DEPLETABLE QUANTITIES.

    (a) In General.--Subparagraphs (A) and (B) of section 613A(c)(7) 
(relating to special rules for production in excess of depletable 
quantities) are each amended by inserting ``of such quantity allocated 
to the property by the taxpayer, or, if the taxpayer elects not to make 
the allocation, that amount'' after ``shall be that amount''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1994.

SEC. 114. PERCENTAGE DEPLETION RATE FOR MARGINAL PRODUCTION.

    (a) In General.--Subparagraph (B) of section 613A(c)(6), as amended 
by section 112(a), is amended to read as follows:
                    ``(B) Applicable percentage.--For purposes of this 
                paragraph, the term `applicable percentage' means the 
                percentage (not greater than 25 percent) equal to the 
                sum of--
                            ``(i) 15 percent, plus
                            ``(ii) 1 percentage point for each whole 
                        dollar by which $20 exceeds the reference price 
                        for crude oil for calendar year 1994 
                        (determined under section 29(d)(2)(C)).''
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1994.

                      Subtitle C--Other Provisions

SEC. 121. ELECTION TO EXPENSE GEOLOGICAL AND GEOPHYSICAL EXPENDITURES.

    (a) In General.--Section 263 (relating to capital expenditures) is 
amended by adding at the end the following new subsection:
    ``(j) Geological and Geophysical Expenditures for Domestic Oil and 
Gas Wells.--Notwithstanding subsection (a), a taxpayer may elect to 
treat geological and geophysical expenses incurred in connection with 
the exploration for, or development of, oil or gas within the United 
States (as defined in section 638) as expenses which are not chargeable 
to capital account. Any expenses so treated shall be allowed as a 
deduction in the taxable year in which paid or incurred.''
    (b) Conforming Amendment.--Section 263A(c)(3) is amended by 
inserting ``263(j),'' after ``263(i),''.
    (c) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to expenses paid or incurred after the date of the 
        enactment of this Act.
            (2) Transition rule.--In the case of any expenses described 
        in section 263(j) of the Internal Revenue Code of 1986 which 
        were paid or incurred on or before the date of the enactment of 
        this Act, the taxpayer may elect, at such time and in such 
        manner as the Secretary of the Treasury may prescribe, to 
        amortize the unamortized portion of such expenses over the 36-
        month period beginning with the month in which the date of the 
        enactment of this Act occurs. For purposes of this paragraph, 
        the unamortized portion of any expense is the amount remaining 
        unamortized as of the first day of the 36-month period.

SEC. 122. ENHANCED OIL RECOVERY CREDIT.

    (a) Expansion of Projects Eligible for Credit.--
            (1) In general.--Clause (i) of section 43(c)(2)(A) 
        (defining qualified enhanced oil recovery project) is amended 
        to read as follows:
                            ``(i) which involves the application (in 
                        accordance with sound engineering principles) 
                        of 1 or more secondary or tertiary recovery 
                        methods which can reasonably be expected to 
                        result in more than an insignificant increase 
                        in the amount of crude oil or natural gas which 
                        ultimately will be recovered,''.
            (2) Conforming amendments.--
                    (A) Subparagraph (C) of section 43(c)(1) is amended 
                to read as follows:
                    ``(C) Any cost paid or incurred (whether or not 
                chargeable to capital account) for any injectant or 
                other costs which are used as part of a qualified 
                enhanced oil recovery project, other than a recoverable 
                hydrocarbon injectant described in section 193(b)(2).''
                    (B) Section 43(c)(4) is amended to read as follows:
            ``(4) Secondary and tertiary recovery methods.--For 
        purposes of paragraph (2), secondary and tertiary recovery 
        methods shall include--
                    ``(A) tertiary recovery methods described in 
                section 193(b)(3),
                    ``(B) immiscible nonhydrocarbon gas displacement, 
                and
                    ``(C) other secondary and tertiary recovery methods 
                certified in accordance with paragraph (2)(B).''
    (b) Credit Allowable Against Minimum Tax.--
            (1) In general.--Subsection (c) of section 38 (relating to 
        limitation based on amount of tax), as amended by section 
        101(c), is amended by redesignating paragraph (4) as paragraph 
        (5) and by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) Special rules for enhanced oil recovery credit.--
                    ``(A) In general.--In the case of the enhanced oil 
                recovery credit--
                            ``(i) this section and section 39 shall be 
                        applied separately with respect to the credit, 
                        and
                            ``(ii) in applying paragraph (1) to the 
                        credit--
                                    ``(I) subparagraph (A) shall not 
                                apply, and
                                    ``(II) the limitation under 
                                paragraph (1) (as modified by subclause 
                                (I)) shall be reduced by the credit 
                                allowed under subsection (a) for the 
                                taxable year (other than the enhanced 
                                oil recovery credit).
                    ``(B) Enhanced oil recovery credit.--For purposes 
                of this subsection, the term `enhanced oil recovery 
                credit' means the credit allowable under subsection (a) 
                by reason of section 43(a).''
            (2) Conforming amendments.--
                    (A) Subclause (II) of section 38(c)(2)(A)(ii), as 
                amended by section 101(c), is amended by striking ``or 
                the oil and gas production credit'' and inserting ``, 
                the oil and gas production credit, or the enhanced oil 
                recovery credit''.
                    (B) Subclause (II) of section 38(c)(3)(A)(ii) is 
                amended by inserting ``or the enhanced oil recovery 
                credit'' after ``production credit''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1994.

SEC. 123. ELECTION FOR OPTIONAL 5-YEAR WRITEOFF OF INTANGIBLE DRILLING 
              COSTS.

    (a) Optional Election for Minimum Tax Purposes.--
            (1) In general.--Section 56(a) is amended by adding at the 
        end the following new paragraph:
            ``(9) Intangible drilling costs.--If the taxpayer elects to 
        have this paragraph apply, the taxpayer may disregard, for 
        purposes of computing the taxpayer's alternative minimum 
        taxable income, an election under section 59(e) with respect to 
        any portion of any qualified expenditure described in section 
        59(e)(2)(C).''
            (2) Conforming amendment.--Section 59(e) is amended by 
        adding at the end the following new paragraph:
            ``(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 
                        assessment.--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 treated 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 inserting ``(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 responsibility 
                required.--Except as provided in paragraph (2), each 
                responsible party with respect 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 financial 
                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 financial responsibility 
                required is $35,000,000.
                    ``(C) Greater amount.--If the President determines 
                that an amount of financial responsibility 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 subsection, evidence of 
                financial responsibility need be established only to 
                meet the maximum liability 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'', approved February 25, 1920 (commonly known as the Mineral 
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 February 
25, 1920 (commonly known as the Mineral 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.

                  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 amendment to the Constitution, which 
        prohibits the taking of private property without the payment of 
        just compensation.
            (2) A number of Federal environmental programs, 
        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 commitment of time to 
        proceed in litigation against the Federal Government, a clear 
        Federal policy is needed to guide and direct Federal agencies 
        with respect to the implementation by the agencies of 
        environmental 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 neighbors, these laws have traditionally been 
        enacted, implemented, 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 intended to protect the welfare of 
        plant and animal species, while allowing recreational and 
        aesthetic opportunities for the public.
    (b) Purpose.--The purpose of this subtitle is to provide 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 jurisdiction 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 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).
            (3) Non-Federal person.--The term ``non-Federal person'' 
        means a person other than an officer, 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 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 subdivision of a State) that--
                    (A) owns property referred to in subparagraph (A) 
                or (B) of paragraph (5); or
                    (B) holds property referred to in paragraph (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 government 
        laws, including laws relating to private property rights and 
        privacy; and
            (2) implement and enforce the applicable provisions of law 
        in a manner that has the least impact on the constitutional and 
        other legal rights of private property owners.
    (b) Regulations.--Each agency head shall develop and implement 
regulations for ensuring that the constitutional 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 private 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 private 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 COLLECTED 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 WETLANDS 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 Administrator, 
        after notice and opportunity for public comment, shall issue 
        rules to establish procedures to provide private property 
        owners, or authorized representatives of the owners, an 
        opportunity for an administrative appeal of the following 
        actions under this section:
                    ``(A) A determination of regulatory jurisdiction 
                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 otherwise alter 
                the property.
            ``(2) Decision.--The rules issued under paragraph (1) shall 
        provide that any administrative appeal of an action described 
        in paragraph (1) shall be heard and decided by an official 
        other than the official who took the action, and shall be 
        conducted at a location that is in the vicinity of the 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 instrumentality of--
                            ``(i) the Federal Government; or
                            ``(ii) a foreign government.
                    ``(B) Private property owner.--The term `private 
                property owner' means a non-Federal 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 subdivision of a State) that--
                            ``(i) owns property referred to in clause 
                        (i) or (ii) of subparagraph (C); or
                            ``(ii) holds property referred to in 
                        subparagraph (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 property 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 incidental 
                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 prohibiting or 
                substantially limiting the use of the property.
            ``(2) Decision.--The rules issued under paragraph (1) shall 
        provide that any administrative appeal of an action described 
        in paragraph (1) shall be heard and decided by an official 
        other than the official 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 instrumentality of--
                            ``(i) the Federal Government; or
                            ``(ii) a foreign government.
                    ``(B) Private property owner.--The term `private 
                property owner' means a non-Federal 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 subdivision of a State) that--
                            ``(i) owns property referred to in clause 
                        (i) or (ii) of subparagraph (C); or
                            ``(ii) holds property referred to in 
                        subparagraph (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 PROPERTY.

    (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 affected 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 private property owner of 
the fair market value or viable use of property for which compensation 
is required under subsection (a), the private property owner may submit 
in writing a request to the agency head for compensation in accordance 
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 restrictions 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 restrictions.
    (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 accept 1 of the offers or to reject 
        both offers.
            (2) Submission to arbitration.--If the private property 
        owner rejects both offers, the private property owner may 
        submit the matter for arbitration 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 association. 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 compensation 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 compensation 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 
subsection, by not later than 60 days after the date of the acceptance 
or the date of the issuance of the decision, respectively.
    (g) Form of Payment.--Payment under this section 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 respect 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 obtaining 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 results in the taking shall 
reimburse, from funds appropriated to the agency for the 2 fiscal years 
following payment 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 Secretary 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 agreement.
                    ``(B) Definitions.--In this paragraph:
                            ``(i) Non-Federal person.--The term `non-
                        Federal person' means a person other than an 
                        officer, employee, agent, department, 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 instrumentality of a State, 
                        municipality, or political subdivision of a 
                        State, or a State, municipality, 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 `property' 
                        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 following:

                   ``SUBCHAPTER II--RISK ASSESSMENTS

``Sec. 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 result directly or 
        indirectly from implementation of a rule or an alternative to a 
        rule.
            ``(3) Best estimate.--The term `best estimate' 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 reasonably 
        identifiable significant costs and adverse effects, including 
        social and economic costs, reduced consumer choice, 
        substitution effects, and impeded technological advancement, 
        that are expected to result 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 resources.
            ``(6) Major rule.--The term `major rule'--
                    ``(A) means--
                            ``(i) a rule or a group of closely related 
                        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 reasonably 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 related 
                        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, 
                                consumers, individual industries, 
                                nonprofit organizations, Federal, 
                                State, or local government agencies, or 
                                geographic regions; or
                                    ``(II) significant adverse effects 
                                on competition, employment, investment, 
                                productivity, innovation, the 
                                environment, public health or safety, 
                                or the ability of enterprises whose 
                                principal 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 
                        introduction 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 assessment' 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 individuals, populations, or 
                resources; and
                    ``(B) the document containing the explanation 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 assessment 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, 
                inferences, and opinions.
            ``(11) Rule.--The term `rule' has the meaning stated in 
        section 551(4).
            ``(12) Substitution risk.--The term `substitution risk' 
        means a potential increased risk to human health, safety, or 
        the environment from a regulatory option designed to decrease 
        other risks.
``Sec. 622. Applicability
    ``(a) Except as provided in subsection (b), this subchapter shall 
apply to all risk assessments and risk characterizations 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 assessments 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 settings, 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 Substances 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.
``Sec. 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.
``Sec. 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 proposed 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 assessment, 
        quantified to the extent feasible, of incremental 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, quantified to 
        the extent feasible, a comparison of any human health, safety, 
        or natural resource risks addressed by the regulatory 
        alternatives to other relevant risks chosen by the head of the 
        agency, including 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.
``Sec. 625. Principles for risk assessment
    ``(a)(1) The head of each agency shall apply the principles set 
forth in subsection (b) when preparing any risk assessment, whether or 
not required by section 624, to ensure that the risk assessment and all 
of its components--
            ``(A) distinguish scientific findings and best estimates 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 practicable, on 
        scientific findings.
    ``(2) Discussions or explanations required under this section need 
not be repeated in each risk assessment document as long as there is a 
reference to the relevant discussion 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 between 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 assess human health, 
        the assessment shall include discussion of possible 
        reconciliation of conflicting information, and, as appropriate, 
        differences in study designs, comparative physiology, routes of 
        exposure, bioavailability, pharmacokinetics, and any other 
        relevant 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 alternative 
                assumptions, inferences, or models;
                    ``(D) fully describe any model used in the risk 
                assessment and make explicit the assumptions 
                incorporated in the model; and
                    ``(E) indicate the extent to which any significant 
                model has been validated by, or conflicts with, 
                empirical data.
            ``(3) A risk assessment shall be prepared at the level of 
        detail appropriate and practicable for reasoned decisionmaking 
        on the matter involved, taking into consideration the 
        significance and complexity of the decision and any need for 
        expedition.
``Sec. 626. Principles for risk characterization and communication
    ``In characterizing risk in any risk assessment document, 
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 resources 
                        which are the subject of the characterization 
                        (based on the information available to the 
                        department, agency, or instrumentality) 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 
                        understanding;
                            ``(II) a statement of the reasonable range 
                        of scientific uncertainties; and
                            ``(III) to the extent practicable and 
                        appropriate, descriptions of the distribution 
                        and probability of risk estimates to reflect 
                        differences in exposure variability in 
                        populations and uncertainties;
                    ``(ii) in addition to a best estimate or estimates, 
                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 factor, 
                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 nature 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 routinely 
                encountered by the general public as well as other 
                risks; and
                    ``(ii) identify relevant distinctions among 
                categories of risk and limitations to comparisons.
            ``(4) When an agency provides a risk assessment or risk 
        characterization for a proposed or final regulatory action, 
        such assessment or characterization shall include a statement 
        of any significant substitution 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 regulation;
                    ``(B) a commenter provides a risk assessment, and a 
                summary of results of such risk assessment; 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 connection with the 
        presentation of the agency's risk assessment or the regulation.
``Sec. 627. Regulations; plan for assessing new information
    ``(a)(1) Not later than 1 year after the date of enactment 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 assessment and characterization principles set forth 
in sections 625 and 626 and shall provide a format for summarizing risk 
assessment results.
    ``(2) The regulation under paragraph (1) shall be sufficiently 
specific to ensure that risk assessments are conducted 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 likelihood 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 account 
        material significant new scientific data or scientific 
        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 developed after 
notice and opportunity for public comment, and after consultation with 
representatives of appropriate State agencies and local governments, 
and such other departments and agencies, offices, organizations, or 
persons as may be advisable.
    ``(d) At least every 4 years, the President shall review, and when 
appropriate, revise the regulations published under this section.
``Sec. 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, reflecting realistic 
        exposure scenarios, of the risk addressed 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 promulgated that would 
        provide greater net benefits or that would achieve an 
        equivalent reduction in risk in a more cost-effective and 
        flexible manner.
``Sec. 629. Regulatory priorities
    ``(a) In exercising authority under any laws protecting human 
health and safety or the environment, the head of an agency shall 
prioritize the use of the resources available under such laws to 
address the risks to human health, safety, and natural resources that--
            ``(1) the agency determines are the most serious; and
            ``(2) can be addressed in a cost-effective manner, 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 individuals 
        potentially affected.
    ``(c) The head of the agency shall incorporate the priorities 
identified in subsection (a) into the budget, strategic planning, and 
research activities of the agency by, in the agency's annual budget 
request to Congress--
            ``(1) identifying which risks the agency has determined 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 requested 
        funds will be used to address those risks;
            ``(3) identifying any statutory, regulatory, or 
        administrative obstacles to allocating agency resources in 
        accordance with the priorities established under subsection 
        (a); and
            ``(4) explicitly considering the requirements of subsection 
        (a) when preparing the agency's regulatory agenda or other 
        strategic plan, and providing an explanation of how the agenda 
        or plan reflects those requirements and the comparative risk 
        analysis 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 repealing 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 manner 
consistent with the requirements of subsection (a).
``Sec. 630. Establishment of program
    ``(a) The President shall develop a systematic program for the peer 
review of work products covered by subsection (c), which program shall 
be used uniformly across the agencies.
    ``(b) The program under subsection (a)--
            ``(1) shall provide for the creation of peer review panels 
        consisting of independent and external experts who are broadly 
        representative and balanced to the extent feasible;
            ``(2) shall not exclude peer reviewers merely because they 
        represent entities that may have a potential interest in the 
        outcome, if that interest is fully disclosed;
            ``(3) shall exclude, to the maximum extent practicable, any 
        peer reviewer who has been involved in any previous analysis of 
        the tests and evidence presented 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 significant 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 analysis 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 Administration 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 Conservation Act (42 U.S.C. 6212) is 
        amended--
                    (A) in subsection (a) by inserting ``(not including 
                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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