[Congressional Record (Bound Edition), Volume 156 (2010), Part 12]
[House]
[Pages 16908-16910]
[From the U.S. 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:

[[Page 16909]]



                               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.
  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.

[[Page 16910]]

  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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