[Congressional Record (Bound Edition), Volume 154 (2008), Part 5]
[Senate]
[Pages 7046-7047]
[From the U.S. 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incentives be repealed.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     U.S.C. 15904, 15905) are repealed.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,

                                              Assistant 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.
       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

[[Page 7047]]

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 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.

                          ____________________