[Congressional Record Volume 156, Number 132 (Tuesday, September 28, 2010)]
[House]
[Pages H7143-H7144]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
AUDIT THE BP FUND ACT OF 2010
Mr. McMAHON. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 6016) to provide for a GAO investigation and audit of the
operations of the fund created by BP to compensate persons affected by
the Gulf oil spill, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 6016
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 ``Audit the BP Fund Act of
2010''.
SEC. 2. INVESTIGATION AND AUDIT.
(a) In General.--The Comptroller General shall conduct an
ongoing independent investigation and audit of the operations
of the fund and claims process created by BP to compensate
persons affected by the BP Deepwater Horizon oil spill in the
Gulf of Mexico beginning on April 20, 2010, as those
operations take place to determine their effectiveness,
including the timeliness of claim payments and the accuracy
of those operations in determining amounts of damages
compensated.
(b) Use of Subpoena Power.--The Comptroller General may use
any investigative powers, including those of subpoena granted
to the Comptroller General for the purposes of other
investigations and audits, to conduct this investigation and
audit.
(c) Report to Congress.--Every 90 days during the
operations, and once after all those operations are
completed, the Comptroller General shall report to Congress
on the effectiveness of those operations.
SEC. 3. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) BP should fully cooperate with the Comptroller General
to assure that the BP relief fund is accurately, expediently,
and efficiently compensating Gulf coast victims of the BP
Deepwater Horizon oil spill for their losses; and
(2) the costs incurred by the Comptroller General to carry
out responsibilities under this Act should be reimbursed by
BP.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New
York (Mr. McMahon) and the gentleman from New Jersey (Mr. LoBiondo)
each will control 20 minutes.
The Chair recognizes the gentleman from New York.
General Leave
Mr. McMAHON. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days within which to revise and extend their
remarks and to include extraneous material on H.R. 6016.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from New York?
There was no objection.
Mr. McMAHON. I yield myself such time as I may consume.
Mr. Speaker, H.R. 6016 requires the Comptroller General of the
Government Accountability Office to conduct an independent
investigation and audit of the operations of the fund and claims
process created by BP in response to the Deepwater Horizon oil spill
disaster.
[[Page H7144]]
This fund and claims process, established by BP after negotiations
with the Obama administration, was created to ensure that the lives and
livelihoods of those adversely affected by this massive oil spill would
be duly compensated for their losses. Mr. Speaker, it is clear that the
Deepwater Horizon oil spill disaster caused immeasurable damage to both
the livelihoods of the gulf coast population and to the gulf coast
ecosystem.
From the outset, BP volunteered that it would compensate victims of
the spill for their losses. However, as with any process for
compensation, there is a need for transparency, for efficiency and for
equity in compensation. This legislation can provide another avenue to
ensure that these essential elements are included in any compensation
paid out of the BP fund and claims process.
Specifically, this legislation directs the GAO to undertake an
``ongoing independent investigation and audit'' of the BP fund and
claims process--specifically targeting the effectiveness of the fund
and claims process, the efficiency in which the claims process
operates, and the accuracy in accounting for and paying out of claims.
The legislation authorizes GAO to use its underlying subpoena power,
where necessary, to ensure the accuracy and completeness of its audit
and investigation.
Finally, Mr. Speaker, this legislation requires the GAO to issue a
report to Congress every 90 days during its audit and investigation, as
well as a final report to Congress when the BP fund and claims process
is completed. This information is essential for Congress to continue
its ongoing oversight of the response and recovery of what is now
likely the world's fifth largest oil spill in history.
I reserve the balance of my time.
Mr. LoBIONDO. I yield such time as he may consume to the gentleman
from Texas (Mr. Brady).
{time} 2010
Mr. BRADY of Texas. I thank my friend, the gentleman from New Jersey
(Mr. LoBiondo), for yielding.
Mr. Speaker, I rise today in support of H.R. 6016, the Audit the BP
Fund Act of 2010. I urge support for the bill that would provide for an
ongoing independent Government Accountability Office investigation and
audit of the operations of the compensation fund created by BP to
reimburse those who were harmed by the BP Deepwater Horizon oil spill
in the Gulf of Mexico beginning on April 20, 2010.
The bill specifically determines the effectiveness, including the
timeliness of claim payments and the accuracy of these operations in
determining amounts of damages compensated.
I believe the BP fund was established to help make whole the
economies along the gulf coast that were damaged or destroyed by the
disaster. $20 billion, as we know, is a tremendous amount of money, and
it can go a long way to compensate gulf coast victims of the spill.
We must ensure that compensation is done fairly, timely, and without
bias, political pressure, or fraud.
We have heard complaints from State and local attorneys critical of
the overly restrictive terms. Others have said there's not been enough
time to assess the damages. Others are concerned that fraudsters will
take money away from those honest people and families and businesses
that are waiting for their dollars.
And thus far, the fund has paid out about $400 million to
approximately 30,000 claimants. Obviously, that is about 2 percent of
the fund. That is slow--we think a little too inefficient for those who
have been damaged--and this is precisely why we need this bill, to
ensure that the fund functions as it should.
With that, I urge support for H.R. 6016.
Mr. OBERSTAR. Mr. Speaker, I rise in support of H.R. 6016, as
amended, the ``Audit the BP Fund Act of 2010''. This legislation
requires the Government Accountability Office (GAO) to undertake an
ongoing audit and investigation of the BP Oil Spill Victims
Compensation Fund (Fund). This bill authorizes GAO to use its subpoena
power to ensure that victims of the oil spill are provided with
compensation in a timely manner, the claim amounts are determined
accurately, and the operations process occurs effectively. GAO will be
required to report its findings to Congress every 90 days until the
operations of the Fund are completed, in approximately three years.
The BP Deepwater Horizon oil spill caused immeasurable damage both to
the livelihoods of the Gulf coast population and to the Gulf coast
ecosystem. From the outset, BP volunteered that it would compensate
victims of the spill. This summer, the White House secured a legally-
binding commitment from BP to establish a $20 billion fund to
compensate victims of the spill. A central element of this Fund is that
any fines and penalties that may be levied against BP and its partners
shall remain wholly separate from the Fund itself. BP has also
committed to honor any legitimate claims that would result in
expenditures above and beyond the agreed-upon $20 billion.
The challenge with any victims compensation fund is determining who
gets --what, and how much. The agreement brokered by the White House
creates an entity known as the Independent Claims Facility (ICF) to
establish and implement a process by which claims will be evaluated and
distributed. The White House and BP agreed that Kenneth Feinberg would
be appointed to run the ICF and oversee the claims process. Mr.
Feinberg was the Special Master in charge of the September 11th Victims
Compensation Fund. His performance in that very difficult undertaking
was widely praised. As a result--and based on his other professional
experiences--Mr. Feinberg is certainly the logical choice to run the
ICF fund.
While we do not doubt Mr. Feinberg's capacity and willingness for
ensuring that the BP Oil Spill Victims Compensation Fund claims process
occurs in an irreproachable manner, the BP spill was very much a matter
of national interest and concern. This legislation will provide an
oversight mechanism to ensure that the commitments of BP, negotiated by
the White House, are fulfilled by all parties, and that--most
importantly--those that have suffered financial misfortune are duly
compensated.
GAO has a long history of auditing programs. As such, it is well-
situated to bring its experience to bear and report its findings to
Congress. This legislation requires that the Comptroller General report
to Congress every 90 days. This reporting requirement will keep
Congress abreast of the effective workings of the Fund--but will also
not overburden GAO's resources.
I urge my colleagues to join me in supporting H.R. 6016.
Mr. LoBIONDO. I yield back the balance of my time.
Mr. McMAHON. Mr. Speaker, I support this legislation, and I yield
back the balance of my time.
The SPEAKER pro tempore (Mr. Tonko). The question is on the motion
offered by the gentleman from New York (Mr. McMahon) that the House
suspend the rules and pass the bill, H.R. 6016, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
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