[Congressional Record Volume 154, Number 68 (Monday, April 28, 2008)]
[Senate]
[Pages S3444-S3446]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. BINGAMAN (by request):
S. 2922. A bill to repeal certain oil and gas incentives established
in the Energy Policy Act of 2005, and for other purposes; to the
Committee on Energy and Natural Resources.
Mr. BINGAMAN. Mr. President, I rise to introduce by request a bill
transmitted by the Administration that would eliminate mandatory
royalty relief incentives for the oil and gas industry on the Outer
Continental Shelf, OCS, in the Gulf of Mexico. I share the
administration's position that these royalty incentives should not
apply to future OCS oil and gas lease sales on a mandatory basis.
Section 344 of the Energy Policy Act of 2005, EPAct, requires the
Secretary of the Interior to provide for royalty relief for the
production of deep gas from the OCS. Section 345 of EPAct requires the
Secretary to extend royalty relief for oil and gas produced from deep
water of the OCS. Under these provisions, at certain prices a set
quantity of federally-owned oil and gas is allowed to be produced
without any royalty payment by industry to the United States. Similar
royalty relief language, included in legislation enacted in 1995, has
given rise to circumstances that may expose the Treasury to up to an
estimated $60 billion in forgone royalty revenues.
Neither deep gas nor deep water royalty relief is warranted in this
price climate. Last year, the administration requested that these
incentives be repealed. The President's proposed budget for fiscal year
2009 renews this request. I hope that my colleagues will join me in
supporting this legislation.
Mr. President, I ask unanimous consent that the text of the bill and
a letter of support be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
S. 2922
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. REPEAL OF CERTAIN OIL AND GAS INCENTIVES.
Sections 344 and 345 of the Energy Policy Act of 2005 (42
U.S.C. 15904, 15905) are repealed.
____
Department of the Interior,
Office of the Secretary,
Washington, DC, April 7, 2008.
Hon. Jeff Bingaman,
Chairman, Committee on Energy and Natural Resources, U.S.
Senate, Washington, DC.
Dear Mr. Chairman: Enclosed is a copy of the letter sent to
the President of the Senate on August 20, 2007, urging the
Senate to consider legislation ``to repeal certain oil and
gas incentives contained in the Energy Policy Act of 2005.''
This legislative proposal would end the mandatory royalty
relief incentives for future OCS lease sales.
I want to make sure that you are aware of the significance
and time sensitivity of this legislative proposal. The next
Gulf of Mexico lease sale is scheduled in August of 2008. By
law, the Minerals Management Service (MMS) must publish a
final notice of sale with final terms and conditions,
including royalty relief incentives, at least 30 days prior
to the sale. To ensure that any legislative changes are
reflected in the final notice of sale for the August sale,
this issue must be resolved by July 1.
Please note that an immediate repeal of the mandatory
royalty relief is supported by the Administration. Provisions
to support the repeal are included in the President's Fiscal
Year 2008 budget and cleared by the Office of Management and
Budget. Prompt action is now needed by Congress if the repeal
of the mandatory royalty relief is to be included in the fast
approaching Gulf of Mexico sale.
Your immediate attention would be greatly appreciated. I am
personally available to discuss this legislation with you and
answer any questions you or your staff may have.
Sincerely,
C. Stephen Allred,
Assistance Secretary,
Land and Minerals Management.
____
Department of the Interior,
Office of the Secretary,
Washington, DC, April 20, 2007.
Hon. Richard B. Cheney,
President of the Senate,
Washington, DC.
Dear Mr. President: Enclosed is a draft bill, ``to repeal
certain oil and gas incentives contained in the Energy Policy
Act of 2005 and for other purposes.''
I recommend that the draft bill be introduced, referred to
the appropriate committee for consideration, and enacted.
The repeal of sections 344 and 345 of the Energy Policy Act
of 2005 (Energy Policy Act) has been proposed in the
President's Fiscal Year 2008 budget. Section 344 of the
Energy Policy Act extended existing deep gas incentives by
mandating a royalty suspension volume of at least 35 billion
cubic feet of natural gas for certain wells completed at
depths greater than 20,000 feet sub-sea on leases located in
0-400 meters of water. Section 344 also directed that the
same methodology used to calculate suspension volumes in the
Minerals Management Service's 2004 rule for wells completed
between 15,000 feet and 20,000 feet sub-sea on leases in 0-
200 meters of water be applied to leases in 200-400 meters of
water. Section 345 of the Energy Policy Act provided
mandatory royalty suspension volumes for leases in water
depths greater than 400 meters issued in the first five years
after the Energy Policy Act's enactment (August 8, 2005-
August 8, 2010).
Repeal of Sections 344 and 345 of the Energy Policy Act
would eliminate incentives and royalty relief that we believe
are unwarranted in today's price environment.
The Office of Management and Budget has advised that the
enactment of this draft bill would be in accord with the
program of the President.
An identical letter is being sent to the Honorable Nancy
Pelosi, Speaker of the House of Representatives.
Sincerely,
C. Stephen Allred,
Assistant Secretary,
Land and Minerals Management.
____
A Bill
To repeal certain oil and gas incentives contained in the
Energy Policy Act of 2005 and fur other purposes.
[[Page S3445]]
Be it enacted by the Senate and the House of
Representatives of the United States of America in Congress
assembled, That sections 344 and 345 of the Energy Policy Act
of 2005 (42 U.S.C. 15904 and 15905) are repealed.
____
Section by Section Summary
A bill to repeal certain oil and gas incentives contained
in the Energy Policy Act of 2005 and for other purposes.
This bill would repeal incentives for natural gas
production from deep wells in shallow waters of the Gulf of
Mexico and royalty relief for deep water production in the
Gulf of Mexico.
______
By Mr. AKAKA:
S. 2923. A bill to provide for a three-year extension of the Senior
oversight Committee on wounded warrior matters, and for other purposes;
to the Committee on Armed Services.
Mr. AKAKA. Mr. President, today I am introducing the proposed Senior
Oversight Committee Extension Act of 2008 The VA and DoD Senior
Oversight Committee--the SOC--has been an important component of
ongoing efforts to ensure that the Departments of Veterans Affairs and
Defense work together to improve the treatment and care of our Nation's
wounded warriors. This bill requires a 3-year extension of the VA and
DoD SOC so that it may continue its vitally important oversight
function.
As a result of the problems identified at Walter Reed Army Medical
Center in May 2007, VA and DoD established the SOC to identify
corrective actions. It was tasked with reviewing and overseeing the
implementation of the recommendations of the various task forces and
study groups which were established to study problems related to the
transitioning of seriously injured servicemembers. Today, the SOC and
its supporting staff continue to work toward implementing policies and
procedures to streamline and expedite joint efforts to provide
seriously injured servicemembers and veterans with the best care
available.
The SOC is currently co-chaired by the Deputy Secretary of Defense
and the Deputy Secretary of Veterans Affairs. It brings together the
most senior VA and DoD officials on a regular basis to ensure that the
decisions designed to improve care, recovery, rehabilitation and
reintegration of seriously injured servicemembers are made in a timely
and efficient manner. It is supported by a full-time joint VA and DoD
staff that is responsible for coordinating, integrating and
synchronizing the activities of the Committee.
The Administration's current plan is for the SOC to hand over its
responsibilities next January to the existing VA and DoD Joint
Executive Council. However, the Joint Executive Council has neither a
full time staff nor the equivalent involvement of senior VA and DoD
officials. The JEC staff has neither the resources nor the leverage
within the individual Departments to carry out the essential work that
the SOC has managed. Veterans' organizations who testified at the April
23, 2008, Senate Veterans' Affairs Committee hearing support the need
to extend the SOC rather than transfer responsibilities to the Joint
Executive Council.
Although I am pleased with the progress that has been achieved over
the past year on improving VA and DoD cooperation and collaboration,
much work remains. I am concerned that, in the future, without the full
weight of VA and DoD leadership behind these activities, an ongoing
commitment to solving the problems related to the goal of seamless
transition and a full time staff to track implementation, there is a
very real risk of returning to the bureaucratic lethargy which
contributed to the Walter Reed scandal. We have come too far to return
to those days.
I am a firm believer in the adage that what the boss checks is what
gets done. To make sure the boss--in this case, the Secretaries of
Veterans Affairs and Defense--keep an eye on coordination and
cooperation between the two departments, I am introducing this
legislation to provide the two Secretaries with authority to extend the
work of the SOC for 3 years, to ensure the continued existence of a
joint body that will serve as the single point of contact for the
oversight, strategy and integration of policies and procedures
pertaining to the seriously injured.
With the upcoming change in Administration, there can be no wavering
on the high level of attention that the Departments have brought to
issues of coordination and cooperation. I am committed to sustaining
this effort for as long as there are servicemembers in combat.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 2923
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Senior Oversight Committee
Extension Act of 2008''.
SEC. 2. THREE-YEAR EXTENSION OF SENIOR OVERSIGHT COMMITTEE
WITH RESPECT TO WOUNDED WARRIOR MATTERS.
(a) In General.--The Secretary of Defense and the Secretary
of Veterans Affairs shall jointly take such actions as are
appropriate, including the allocation of appropriate
personnel, funding, and other resources, to continue the
operations of the Senior Oversight Committee until September
30, 2011.
(b) Report on Further Extension of Committee.--Not later
than December 31, 2010, the Secretary of Defense and the
Secretary of Veterans Affairs shall jointly submit to
Congress a report setting forth the joint recommendation of
the Secretaries as to the advisability of continuing the
operations of the Senior Oversight Committee after September
30, 2011. If the Secretaries recommend that continuing the
operations of the Senior Oversight Committee after September
30, 2011, is advisable, the report may include such
recommendations for the modification of the responsibilities,
composition, or support of the Senior Oversight Committee as
the Secretaries jointly consider appropriate.
(c) Senior Oversight Committee Defined.--In this section,
the term ``Senior Oversight Committee'' means the Senior
Oversight Committee jointly established by the Secretary of
Defense and the Secretary of Veterans Affairs in May 2007 to
address concerns related to the treatment of wounded, ill,
and injured members of the Armed Forces and veterans and
serve as the single point of contact for oversight, strategy,
and integration of proposed strategies for the efforts of the
Department of Defense and the Department of Veterans Affairs
to improve support throughout the recovery, rehabilitation,
and reintegration of wounded, ill, or injured members of the
Armed Forces.
______
By Mr. AKAKA:
S. 2926. A bill to amend title 38, United States Code, to modify and
update provisions of law relating to nonprofit research and education
corporations, and for other purposes; to the Committee on Veterans'
Affairs.
Mr. AKAKA. Mr. President, I am introducing legislation concerning the
nonprofit research and education corporations--NPCs--that serve the
Department of Veterans Affairs. These organizations provide essential
support to research and education at VA facilities around the country.
My legislation will amend the law which authorizes NPCs so as to better
reflect their mission and the needs of VA, as well as strengthen
control and oversight of these entities.
The legislation which authorizes NPCs was enacted in 1988 to allow
the establishment of these entities as flexible funding mechanisms for
the conduct of research and education at VA medical centers. In 2006,
85 NPCs expended $227 million in support of over 5,000 VA research and
education programs. NPCs give VA the opportunity to access and manage
research funds from sources outside of VA, while maintaining VA
oversight.
Twenty years have passed since the inception of NPCs, and it is time
to update the law governing their operation. VA's research needs have
shifted and the function of NPCs has evolved. I will highlight a few of
the corrections this legislation would make.
NPCs are nonprofit 501(c)(3) organizations that are entirely
dedicated to serving VA research. They efficiently administer VA
research funds, and provide access to some funds that VA would
otherwise be unable to access. Unfortunately, given their close
affiliation with VA, and due in part to various state laws, NPC
nonprofit status is in some situations unclear. My legislation would
explicitly identify the nonprofit status of NPCs under IRS code. It
would also make clear that NPCs are not owned or controlled by the U.S.
Government, and are not agencies or instrumentalities of the U.S.
As the utility and appeal of NPCs have grown, their numbers have
expanded. While this growth is positive, it is not always efficient or
feasible for a medical center to establish and manage its own NPC. The
legislation would
[[Page S3446]]
create authority for multi-medical center NPCs to be shared among a
number of medical centers. Condensing numerous NPCs into one would
retain the local affiliations that make them valuable and effective,
but would achieve greater efficiency and economy of scale by combining
administrative resources.
The legislation would make additional adjustments in other areas. It
would expand VA's oversight capability. It would clarify existing
authority for NPCs to transfer funds among medical centers, and it
would clarify reimbursement processes. It would also modify the
required composition of NPC governance boards, to allow individuals
with a wider range of expertise to serve.
I believe these proposed changes would facilitate better working
relationships between NPCs and VA, thereby achieving better support of
VA research and education. I am confident that these provisions will
make an effective source of support for VA even stronger.
____________________