[Congressional Record (Bound Edition), Volume 160 (2014), Part 8]
[House]
[Pages 11067-11075]
[From the U.S. Government Publishing Office, www.gpo.gov]




   LOWERING GASOLINE PRICES TO FUEL AN AMERICA THAT WORKS ACT OF 2014

  The Committee resumed its sitting.


               Amendment No. 7 Offered by Mr. Blumenauer

  The Acting CHAIR (Mr. Woodall). It is now in order to consider 
amendment No. 7 printed in House Report 113-493.
  Mr. BLUMENAUER. Mr. Chairman, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       At the end of title I (page 54, after line 24) add the 
     following:

                  Subtitle E--Miscellaneous Provisions

     SEC. 25001. ELIGIBILITY FOR NEW LEASES AND THE TRANSFER OF 
                   LEASES.

       (a) Issuance of New Leases.--
       (1) In general.--Beginning in fiscal year 2016, the 
     Secretary of the Interior shall not accept bids on any new 
     leases offered pursuant to this title (including the 
     amendments made by this title) from a person described in 
     paragraph (2) unless the person has renegotiated each covered 
     lease with respect to which the person is a lessee, to modify 
     the payment responsibilities of the person to require the 
     payment of royalties if the price of oil and natural gas is 
     greater than or equal to the price thresholds described in 
     clauses (v) through (vii) of section 8(a)(3)(C) of the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)).
       (2) Persons described.--A person referred to in paragraph 
     (1) is--
       (A) a person that is a lessee that--
       (i) holds a covered lease on the date on which the 
     Secretary considers the issuance of the new lease; or
       (ii) was issued a covered lease before the date of 
     enactment of this Act, but transferred the covered lease to 
     another person or entity (including a subsidiary or affiliate 
     of the lessee) after the date of enactment of this Act; or
       (B) any other person that has any direct or indirect 
     interest in, or that derives any benefit from, a covered 
     lease.
       (3) Multiple lessees.--
       (A) In general.--For purposes of paragraph (1), if there 
     are multiple lessees that own a share of a covered lease, the 
     Secretary may implement separate agreements with any lessee 
     with a share of the covered lease that modifies the payment 
     responsibilities with respect to the share of the lessee to 
     include price thresholds that are equal to or less than the 
     price thresholds described in clauses (v) through (vii) of 
     section 8(a)(3)(C) of the Outer Continental Shelf Lands Act 
     (43 U.S.C. 1337(a)(3)(C)).
       (B) Treatment of share as covered lease.--Beginning on the 
     effective date of an agreement under subparagraph (A), any 
     share subject to the agreement shall not constitute a covered 
     lease with respect to any lessees that entered into the 
     agreement.
       (b) Transfers.--A lessee or any other person who has any 
     direct or indirect interest in, or who derives a benefit 
     from, a covered lease shall not be eligible to obtain by sale 
     or other transfer (including through a swap, spinoff, 
     servicing, or other agreement) any new lease offered pursuant 
     to this title (including the amendments made by this title) 
     or the economic benefit of any such new lease, unless the 
     lessee or other person has--
       (1) renegotiated each covered lease with respect to which 
     the lessee or person is a lessee, to modify the payment 
     responsibilities of the lessee or person to include price 
     thresholds that are equal to or less than the price 
     thresholds described in clauses (v) through (vii) of section 
     8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1337(a)(3)(C)); or
       (2) entered into an agreement with the Secretary to modify 
     the terms of all covered leases of the lessee or other person 
     to include limitations on royalty relief based on market 
     prices that are equal to or less than the price thresholds 
     described in clauses (v) through (vii) of section 8(a)(3)(C) 
     of the Outer Continental Shelf Lands Act (43 U.S.C. 
     1337(a)(3)(C)).
       (c) Definitions.--In this section:
       (1) Covered lease.--The term ``covered lease'' means a 
     lease for oil or gas production in the Gulf of Mexico that 
     is--
       (A) in existence on the date of enactment of this Act;
       (B) issued by the Department of the Interior under section 
     304 of the Outer Continental Shelf Deep Water Royalty Relief 
     Act (43 U.S.C. 1337 note; Public Law 104-58); and
       (C) not subject to limitations on royalty relief based on 
     market price that are equal to or less than the price 
     thresholds described in clauses (v) through (vii) of section 
     8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1337(a)(3)(C)).
       (2) Lessee.--The term ``lessee'' includes any person or 
     other entity that controls, is controlled by, or is in or 
     under common control with, a lessee.
       (3) New lease.--The term ``new lease'' means a lease issued 
     in a lease sale under this title or the amendments made by 
     this title.

  The Acting CHAIR. Pursuant to House Resolution 641, the gentleman 
from Oregon (Mr. Blumenauer) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Oregon.
  Mr. BLUMENAUER. Mr. Chairman, I yield myself 2 minutes.
  Mr. Chairman, this is an old friend to the committee and the floor 
and my friend, Congressman Hastings, and we couldn't have him retire 
from Congress without doing this one more time.
  By way of background for those who haven't walked through this 
before, in 1995, Congress--desiring to encourage bidding on leases in 
certain deepwater areas of the Gulf of Mexico--provided relief from the 
normal applicable royalties payable to the United States.
  What we found, in the course of this, is it worked. People bid on the 
leases, they went in; but we found out that there was no provision for 
eliminating the royalty exemption if the market price of oil rose back 
up to reasonable levels.
  According to some accounts, this omission might have been an 
administrative error. What we have found about the mismanagement of the 
Minerals Management Services--people literally in bed with the people 
that they

[[Page 11068]]

were supposed to regulate--it may not have been an administrative 
oversight, but whatever, it was wrong. It shouldn't have been there.

                              {time}  1015

  As a result, now with oil up to $100 a barrel and higher, they are 
pumping this oil without paying anything to the Federal Government, far 
beyond what was ever contemplated.
  Now my amendment is simple. It gives these companies a choice. They 
can either renegotiate and execute leases for this oil, which was 
obviously the intent--there was never any intent to make this permanent 
on an ongoing basis--and pay reasonable royalties to the United States, 
especially since a number of these companies are foreign companies, 
state-owned enterprises, or they simply wouldn't be able to bid for new 
leases. Their choice. No coercion. But the taxpayers stand to benefit 
$15.5 billion over the next 10 years, and, in fact, over the life of 
these leases, $31 billion or more. I respectfully suggest, it is time 
to approve this amendment.
  Mr. HASTINGS of Washington. Mr. Chairman, I rise in opposition to the 
amendment.
  The Acting CHAIR. The gentleman is recognized for 5 minutes.
  Mr. HASTINGS of Washington. I yield myself as much time as I may 
consume.
  Mr. Chairman, I thank the gentleman for offering the amendment, and I 
thank the gentleman for his kind remarks. I guess my career would never 
be complete unless we did this one more time.
  But this amendment, Mr. Chairman, is identical to an amendment that 
failed 2 years ago in this House, and, I might say, it failed by a 
broad bipartisan vote.
  I will also remind my friend from Oregon that this issue has been 
repeatedly settled in the Nation's courts of law, with the courts 
determining that rewriting the terms of these leases to include price 
thresholds would be a direct violation of contract law. That is what 
the issue is here really with this.
  Now it was during the Clinton administration that this happened. And 
I agree with the gentleman; it shouldn't have happened. But it 
happened. And the courts have spoken very clearly on this.
  The U.S. Supreme Court found that the Department of the Interior did 
not have the authority to rewrite these contracts that were issued 
under the 1995 law. And I will remind the gentleman that the Department 
of the Interior has lost this issue in the district court, the 
appellate court, and the Supreme Court.
  Ultimately, this amendment seeks to force U.S. companies to break a 
contract legally negotiated under government law, or else be denied the 
opportunity to do business in the U.S. The amendment aims to back 
companies into a corner and attempts to force them to break legally 
binding contracts. And that, from my point of view, is essentially 
extorting these companies to undo these contracts.
  Now, I want to, again, speak on this just a little bit broader. I 
would acknowledge that we have the right in this Congress to pass 
legislation to change that. After all, we are the body that makes the 
law. But there is a fundamental issue here that I think that we really 
have to address beyond this: Should Congress be passing legislation 
that breaks contract law when courts have said repeatedly that contract 
law should be inviolable? I think that is what the issue is here today.
  I understand my friend from Oregon having perhaps some heartburn 
because this is dealing with oil and gas. I understand that. And 
frankly, I respect that. But I think that the larger issue here is that 
we should not be doing what we could do because I think that we should 
hold contracts, private sector contracts with government, in a higher 
area than probably some people think we should.
  So with that, I urge rejection of the amendment, and I reserve the 
balance of my time.
  Mr. BLUMENAUER. I yield myself 30 seconds.
  Mr. Chairman, we are not seeking to break contracts. What we are 
doing is providing an opportunity for people to renegotiate these 
contracts, to stop making a profit by exploiting a loophole or a 
mistake that both of us agree was unintended and unfortunate.
  This would be their choice. Contracts are renegotiated on an ongoing 
basis routinely with government and in the private sector. And I would 
respectfully suggest that this is a contract that is long overdue to be 
renegotiated.
  I reserve the balance of my time.
  Mr. HASTINGS of Washington. Mr. Chairman, I have no further requests 
for time and am prepared to close.
  So at this point, I will reserve the balance of my time.
  Mr. BLUMENAUER. How much time remains?
  The Acting CHAIR. The gentleman from Oregon has 2\1/2\ minutes 
remaining.
  Mr. BLUMENAUER. I yield 2 minutes to the gentleman from Oregon (Mr. 
DeFazio), the ranking member.
  Mr. DeFAZIO. Mr. Chairman, what we are talking about here is 
obscenely profitable oil companies getting a giveaway while we are 
running massive deficits.
  Now, everyone says that they want to run government like a business 
and lower deficits. The GAO has estimated that if this is allowed to 
run its course without any of these leases being renegotiated, it will 
be a $50 billion windfall to the oil industry--not million, $50 
billion.
  Now that would be a nice piece of change, both for revenue sharing 
for the States and for the Federal Treasury. We could apply it all to 
deficit reduction or other needs, maybe even fund the continuation of 
the national transportation system. Who knows.
  The bottom line is, as the gentleman pointed out, it may or may not 
have been intentional on the part of people at the then-Minerals 
Management Service to give away these assets to the oil companies.
  But for 3 years before they slept with them--or whatever happened--
they did include it in the leases. And then what the Court found was 
that the law that the Republicans passed in 1995 didn't allow those 
sorts of conditions to be in the leases.
  So this is a new approach. The Republican law was defective. The 
Clinton administration--at least some members of it--were corrupt. It 
is a bipartisan problem. Let's fix it in a bipartisan way.
  This would just say, if the companies who got this windfall and won 
that Court case want new leases, we would condition new leases upon 
them negotiating and paying a fair return to the taxpayers on the old 
leases and, in that process, make the taxpayers whole.
  It is a legal and simple way to fix a problem that was caused both by 
the law, as written, by the then-majority Republican party and the few 
corrupt members of the Clinton administration.
  Mr. HASTINGS of Washington. I reserve the balance of my time.
  Mr. BLUMENAUER. Mr. Chairman, let me just say, there is an excellent 
report from the Congressional Research Service on this subject that 
makes clear that it is not illegal or in violation of contract law. The 
argument is very sustainable.
  And it is not the oil company that gives me heartburn, to my dear 
friend. I would think any of us would have heartburn if the Federal 
Treasury, the taxpayers, were cheated out of $25 billion to $50 billion 
due to an error or an omission. That ought to give heartburn to 
anybody. This amendment will fix it.
  I yield back the balance of my time.
  Mr. HASTINGS of Washington. I yield myself the balance of the time.
  The observation has been made that these maybe should be 
renegotiated. Listen, Mr. Chairman, any contract can be renegotiated, 
as long as both sides want to renegotiate. But that was the law at the 
time. And what concerns me with this piece of legislation is that it 
implies there has to be a renegotiation.
  Mr. Chairman, I would suggest to some that they would say that this 
is the heavy hand of government forcing somebody to do something that 
they could do under law right now. In some areas, they call that 
extortion. They

[[Page 11069]]

may not use that strong of a word, but I am sure that would be implied 
by some people if they were subject to this.
  Again, this amendment has been rejected on a bipartisan basis for the 
last couple of years. The courts have ruled against this. I think we 
should follow with that.
  With that, I urge rejection of the amendment, and I yield back the 
balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from Oregon (Mr. Blumenauer).
  The question was taken; and the Acting Chair announced that the ayes 
appeared to have it.
  Mr. HASTINGS of Washington. Mr. Chairman, I demand a recorded vote.
  The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further 
proceedings on the amendment offered by the gentleman from Oregon will 
be postponed.


             Amendment No. 8 Offered by Mr. Bishop of Utah

  The Acting CHAIR. It is now in order to consider amendment No. 8 
printed in House Report 113-493.
  Mr. BISHOP of Utah. Mr. Chairman, I have a brilliant amendment at the 
desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Page 69, after line 4, insert the following (and 
     redesignate the subsequent subparagraphs accordingly):
       ``(F) After the conclusion of the public comment period for 
     a planned competitive lease sale, the Secretary shall not 
     cancel, defer, or withdraw any lease parcel announced to be 
     auctioned in the lease sale.

  The Acting CHAIR. Pursuant to House Resolution 641, the gentleman 
from Utah (Mr. Bishop) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Utah.
  Mr. BISHOP of Utah. Mr. Chairman, so last night, I am watching the 
Cubs game. And the shortstop, who is on a tear right now as far as 
hitting, bounces off a foul tip that the replay clearly shows bounced 
onto the ground. The catcher trapped the ball, and then held it up as 
saying he had actually caught it. And the umpire, even though this 
violates the rules of the game, had the power to pick the catcher over 
the hitter, and he declared that the batter had struck out.
  Now even though the Cubs manager went out there, claiming how unfair 
this was--and I was yelling at the TV screen for hours afterwards--
history books will still say that Castro had a strikeout at this 
particular event.
  Now, of course, the unfortunate thing is that our administration and 
the Department of the Interior and the Bureau of Land Management plays 
this same game of picking catchers over hitters all the time, even 
though it violates some of the rules.
  So, 77 leases were put up for bid in Utah. It took the BLM on the 
ground 7 years to go through the process. They checked all the boxes. 
They did the environmental analysis. And the Secretary of the Interior 
simply canceled them. His reason was, 'cause.
  Recently, 56 leases were also set out there for auction. Once again, 
all the boxes were checked. They got through the process. They did the 
environmental analysis. The environment assessment was done. Public 
comment was done. The protest period was finished. And 5 days--5 days--
before the auction, a letter comes from a special interest group to the 
State director for the Bureau of Land Management, a group that had been 
silent through the entire process. They said nothing during the 
assessment. They said nothing during the public comment. During the 
protest period, they said nothing. Here, 2 months after the record was 
closed, 2 months after the decision had been done with no more access 
for public comments, the director of the BLM simply says, I am going to 
pick a special interest group over another interest group, and he 
canceled these leases.
  Schools, the chance of jobs in my State went out, the chance of 
actually getting royalty payments that would help the kids of my State 
pay for their education. It was simply done on a whim.
  The industry had spent $500,000. Half a million dollars from their 
recreation and development funds were spent getting ready for this 
auction. And all of a sudden, a special interest group is given special 
treatment, and it is taken away.
  Now, what government needs, especially out in the local areas, and 
what business needs is simply certainty. You tell us what the rules 
are, and they can play by those rules. It is a business necessity to 
have certainty and not have administrative officials simply change the 
rules on a whim at some particular time.
  It is kind of like, to paraphrase the old Tom Cruise movie: You 
screwed up. You trusted me.
  If we have a policy that is long and it is hard, it gives ample 
opportunity. But it is proven meaningless if, indeed, the Bureau of 
Land Management is able to fervently yield at the eleventh hour to the 
opinion of some special interest group. All we are asking them to do 
with this amendment is to simply follow the rules. Don't change things 
on a whim. Don't pick one group over the other. Don't pick the catcher 
or the hitter.
  I reserve the balance of my time.
  Mr. DeFAZIO. I rise in opposition to the amendment.
  The Acting CHAIR. The gentleman from Oregon is recognized for 5 
minutes.
  Mr. DeFAZIO. Well, first my condolences to the gentleman from Utah 
for being a Cubs fan. I am a Red Sox fan, and we have had some problems 
too. But that was an interesting moment and an interesting analogy 
made.
  Mr. Chairman, I am not aware of the specifics of the instance of 
which he speaks. But I would say that this, as a remedy for a past 
action, would apply in the future, and it would not undo whatever took 
place in the past that the gentleman is referring to. And the principle 
here is fairly extraordinary. It kind of says, Federal bureaucrats 
never make mistakes.
  So we have proposed leases in an area. We go through a public comment 
period. Local people comment. A hunting and fishing group comes in and 
says, you know, this is absolutely, like, the primo area for hunting or 
fishing or something else. Or it becomes apparent that this is, like, 
right in a main recreation corridor, something that the Federal 
bureaucrat overlooked in drawing up the lease boundaries.
  But if this were adopted and became law in the future, at the end of 
the public comment period, it would be, We are the Federal Government. 
Thank you very much for pointing out that we really screwed that up, 
that we were just about to wipe out a prime habitat, that we were just 
about to block or really degrade a prime recreation corridor. We are 
bureaucrats in Washington, D.C. We didn't realize that. But we are 
sorry; public comment periods don't mean anything anymore. We cannot 
condition, withdraw, or change the lease. And that would be it.

                              {time}  1030

  I don't think that would be good. I really don't. So, there may have 
been--and, again, I am not aware of the circumstances to which the 
gentleman is referring in the specific, but I believe that this 
amendment, looking forward to whoever is in the White House and whoever 
is administering these programs, would really preclude any part of the 
public from having meaningful comment and getting a meaningful response 
from the Federal bureaucracy which has proposed leasing in their 
neighborhood.
  With that, Mr. Chairman, I reserve the balance of my time.
  Mr. BISHOP of Utah. Mr. Chairman, before I make a comment about the 
Red Sox, may I inquire about how much time I have remaining?
  The Acting CHAIR. The gentleman from Utah has 1\3/4\ minutes 
remaining.
  Mr. BISHOP of Utah. With that, I would like to yield 45 seconds to 
the gentleman from Washington (Mr. Hastings), a Mariners fan--tough day 
down here--the chairman of the committee.
  Mr. HASTINGS of Washington. Mr. Chairman, I thank the gentleman for 
yielding.

[[Page 11070]]

  Mr. Chairman, I just want to make this point again. What does this 
amendment say? It prohibits the Secretary from canceling lease sales 
previously announced to be auctioned based on public comments received 
after the comment period was ended.
  In other words, what the gentleman is simply saying is let's follow 
the law. I know he said that, but it is worth repeating. You have a 
comment period, then a decision is made. Once that decision is made, 
that should end the issue. Why? Because there is a great deal of 
capital that has been invested, and as the gentleman from Utah said, 
that is the certainty that our energy producers need.
  Mr. Chairman, what was done in Utah with the canceling of those sales 
at that time I thought was totally wrong. It was wrong then, it is 
wrong now, and the court has found that.
  Mr. Chairman, I support the gentleman's amendment.
  Mr. DeFAZIO. Mr. Chairman, how much time do I have remaining?
  The Acting CHAIR. The gentleman from Oregon has 2 minutes remaining.
  Mr. DeFAZIO. I do have the right to close, so I will yield myself 90 
seconds.
  Mr. Chairman, as described, that might be an amendment that would be 
much more acceptable, but it actually doesn't say that. It says that, 
after the conclusion of the public comment period for a planned 
competitive lease sale, the Secretary shall not cancel, defer, or 
withdraw any lease parcel announced to be auctioned in a lease sale.
  Now, what the gentleman described is not what this section F would 
do. This basically says we listen to people--we listened, we heard, it 
goes forward. Maybe that is not the intent, and if it isn't the intent, 
then it would need to be modified. So I believe that the public comment 
period for leases that are drawn up by bureaucrats in Washington, D.C., 
headquarters should be meaningfully commented upon through a process by 
people in the vicinity, and their comments should be given some weight 
in whether or not the lease is modified or goes forward, as I 
previously described, if it impedes upon prime habitat or particularly 
on a recreational corridor.
  Mr. Chairman, with that, I reserve the balance of my time.
  Mr. BISHOP of Utah. I assume the gentleman has no other speakers?
  Mr. DeFAZIO. I do not.
  Mr. BISHOP of Utah. Good. I will finish this. And I appreciate 
knowing the gentleman from Oregon is a Red Sox fan. That explains so, 
so much here.
  Mr. Chairman, I have to admit that this is probably a needless 
amendment. One would assume that if you write a law or you write a 
rule, that is what you do. This amendment basically says that you abide 
by the rules. Even though you have great and awesome power--never mind 
the man behind the curtain--you don't change the rules to pick winners 
and losers and one special interest group over another. You abide by 
the rule.
  In the first 77 lease issue, they had 7 years to go through the 
process of finding out what it is. This is one of the concepts in which 
it simply says we are going to obey the law. We are going to abide by 
the rules so everyone knows what is there and everyone knows with 
certainty what they can do and for what they should plan, and you don't 
change it at the last minute because you want to favor one group over 
another group.
  That is why we are doing this. It has happened in the past, it can 
happen in the future, and it should not.
  Mr. Chairman, I yield back the balance of my time.
  Mr. DeFAZIO. Mr. Chairman, I yield myself the balance of my time.
  Mr. Chairman, again, the sentiments expressed by the gentleman having 
to do with a particular experience in his State--perhaps his district--
is one thing, but this is really clear in the statutory language. It 
says that we will hold the public comment period. When it closes, the 
lease goes forward, no matter what we heard.
  What the gentleman is talking about is that there was a public 
comment period. The public comment period was closed, and he says that 
some time later, outside of the public comment period, someone 
submitted information which was used and overcame all of the other 
testimony and/or comments that were provided.
  That is a whole different circumstance than what this is. This is 
very simple. It just says that there will be a public comment period; 
we will listen; and at the end of that, we don't care what we heard, it 
has to go forward as proposed.
  With that, Mr. Chairman, I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from Utah (Mr. Bishop).
  The question was taken; and the Acting Chair announced that the ayes 
appeared to have it.
  Mr. DeFAZIO. Mr. Chairman, I demand a recorded vote.
  The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further 
proceedings on the amendment offered by the gentleman from Utah will be 
postponed.


               Amendment No. 9 Offered by Ms. Jackson Lee

  The Acting CHAIR. It is now in order to consider amendment No. 9 
printed in House Report 113-493.
  Ms. JACKSON LEE. Mr. Chairman, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Add at the end the following:

                   TITLE __--MISCELLANEOUS PROVISIONS

     SEC. 01. ESTABLISHMENT OF OFFICE OF ENERGY EMPLOYMENT AND 
                   TRAINING.

       (a) Establishment.--The Secretary of the Interior shall 
     establish an Office of Energy Employment and Training, which 
     shall oversee the hiring and training efforts of the 
     Department of the Interior's energy planning, permitting, and 
     regulatory agencies.
       (b) Director.--
       (1) In general.--The Office shall be under the direction of 
     a Deputy Assistant Secretary for Energy Employment and 
     Training, who shall report directly to the Assistant 
     Secretary for Energy, Lands and Minerals Management, and 
     shall be fully employed to carry out the functions of the 
     Office.
       (2) Duties.--The Deputy Assistant Secretary for Energy 
     Employment and Training shall perform the following 
     functions:
       (A) Develop and implement systems to track the Department's 
     hiring of trained skilled workers in the energy permitting 
     and inspection agencies.
       (B) Design and recommend to the Secretary programs and 
     policies aimed at expanding the Department's hiring of women, 
     minorities, and veterans into the Department's workforce 
     dealing with energy permitting and inspection programs. Such 
     programs and policies shall include--
       (i) recruiting at historically black colleges and 
     universities, Hispanic-serving institutions, women's 
     colleges, and colleges that typically serve majority minority 
     populations;
       (ii) sponsoring and recruiting at job fairs in urban 
     communities;
       (iii) placing employment advertisements in newspapers and 
     magazines oriented toward minorities, veterans, and women;
       (iv) partnering with organizations that are focused on 
     developing opportunities for minorities, veterans, and women 
     to be placed in Departmental internships, summer employment, 
     and full-time positions relating to energy;
       (v) where feasible, partnering with inner-city high 
     schools, girls' high schools, and high schools with majority 
     minority populations to demonstrate career opportunities and 
     the path to those opportunities available at the Department;
       (vi) coordinating with the Department of Veterans Affairs 
     and the Department of Defense in the hiring of veterans; and
       (vii) any other mass media communications that the Deputy 
     Assistant Secretary determines necessary to advertise, 
     promote, or educate about opportunities at the Department.
       (C) Develop standards for--
       (i) equal employment opportunity and the racial, ethnic, 
     and gender diversity of the workforce and senior management 
     of the Department; and
       (ii) increased participation of minority-owned, veteran-
     owned, and women-owned businesses in the programs and 
     contracts with the Department.
       (D) Review and propose for adoption the best practices of 
     entities regulated by the Department with regards to hiring 
     and diversity policies, and publish those best practices for 
     public review.
       (c) Reports.--The Secretary shall submit to Congress an 
     annual report regarding the actions taken by the Department 
     of the Interior agency and the Office pursuant to this 
     section, which shall include--
       (1) a statement of the total amounts paid by the Department 
     to minority contractors;

[[Page 11071]]

       (2) the successes achieved and challenges faced by the 
     Department in operating minority, veteran or service-disabled 
     veteran, and women outreach programs;
       (3) the challenges the Department may face in hiring 
     minority, veteran, and women employees and contracting with 
     veteran or service-disabled veteran, minority-owned, and 
     women-owned businesses; and
       (4) any other information, findings, conclusions, and 
     recommendations for legislative or Department action, as the 
     Director determines appropriate.
       (d) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       (1) Minority.--The term ``minority'' means United States 
     citizens who are Asian Indian American, Asian Pacific 
     American, Black American, Hispanic American, or Native 
     American.
       (2) Minority-owned business.--The term ``minority-owned 
     business'' means a for-profit enterprise, regardless of size, 
     physically located in the United States or its trust 
     territories, that is owned, operated, and controlled by 
     minority group members. ``Minority group members'' are United 
     States citizens who are Asian Indian American, Asian Pacific 
     American, Black American, Hispanic American, or Native 
     American (terminology in NMSDC categories). Ownership by 
     minority individuals means the business is at least 51 
     percent owned by such individuals or, in the case of a 
     publicly owned business, at least 51 percent of the stock is 
     owned by one or more such individuals. Further, the 
     management and daily operations are controlled by those 
     minority group members. For purposes of NMSDC's program, a 
     minority group member is an individual who is a United States 
     citizen with at least 1/4 or 25 percent minimum 
     (documentation to support claim of 25 percent required from 
     applicant) of one or more of the following:
       (A) Asian Indian American, which is a United States citizen 
     whose origins are from India, Pakistan, or Bangladesh.
       (B) Asian Pacific American, which is a United States 
     citizen whose origins are from Japan, China, Indonesia, 
     Malaysia, Taiwan, Korea, Vietnam, Laos, Cambodia, the 
     Philippines, Thailand, Samoa, Guam, the United States Trust 
     Territories of the Pacific, or the Northern Marianas.
       (C) Black American, which is a United States citizen having 
     origins in any of the Black racial groups of Africa.
       (D) Hispanic American, which is a United States citizen of 
     true-born Hispanic heritage, from any of the Spanish-speaking 
     areas of the following regions: Mexico, Central America, 
     South America, and the Caribbean Basin only.
       (E) Native American, which means a U.S. citizen enrolled to 
     a federally recognized tribe, or a Native as defined under 
     the Alaska Native Claims Settlement Act.
       (3) NMSDC.--The term ``NMSDC'' means the National Minority 
     Supplier Development Council.
       (4) Women-owned business.--The term ``women-owned 
     business'' means a business that can verify through evidence 
     documentation that 51 percent or more is women-owned, 
     managed, and controlled. The business must be open for at 
     least 6 months. The business owner must be a United States 
     citizen or legal resident alien. Evidence must indicate 
     that--
       (A) the contribution of capital or expertise by the woman 
     business owner is real and substantial and in proportion to 
     the interest owned;
       (B) the woman business owner directs or causes the 
     direction of management, policy, fiscal, and operational 
     matters; and
       (C) the woman business owner has the ability to perform in 
     the area of specialty or expertise without reliance on either 
     the finances or resources of a firm that is not owned by a 
     woman.
       (5) Service disabled veteran.--The term ``Service Disabled 
     Veteran'' must have a service-connected disability that has 
     been determined by the Department of Veterans Affairs or 
     Department of Defense. The SDVOSBC must be small under the 
     North American Industry Classification System (NAICS) code 
     assigned to the procurement; the SDV must unconditionally own 
     51 percent of the SDVOSBC; the SDVO must control the 
     management and daily operations of the SDVOSBC; and the SDV 
     must hold the highest officer position in the SDVOSBC.
       (6) Veteran-owned business.--The term ``veteran-owned 
     business'' means a business that can verify through evidence 
     documentation that 51 percent or more is veteran-owned, 
     managed, and controlled. The business must be open for at 
     least 6 months. The business owner must be a United States 
     citizen or legal resident alien and honorably or service-
     connected disability discharged from service.

  The Acting CHAIR. Pursuant to House Resolution 641, the gentlewoman 
from Texas (Ms. Jackson Lee) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentlewoman from Texas.
  Ms. JACKSON LEE. Mr. Chairman, I rise today to set a standard for 
answering the call of 500,000 to 800,000 jobs being created by 2020 
that addresses the work in our ongoing and growing energy industry.
  Mr. Chairman, I would like to thank the Natural Resources Committee 
chairman, Mr. Hastings, and Ranking Member DeFazio for their leadership 
on diversifying our employment base. I also want to wish the chairman 
well as he moves on to other endeavors. He will be missed on his 
insight.
  Mr. Chairman, I rise to speak in support of the Jackson Lee Amendment 
No. 9 to H.R. 4899. The Congress has an affirmative duty to increase 
diversity in Federal Government as there is an undeniable lack of 
participation for veterans, women, and minorities in regards to 
employment, entrepreneurial, and ownership opportunity.
  The Jackson Lee Amendment No. 9 to H.R. 4899 directs the Secretary of 
the Interior to establish an office of energy employment and training 
to create economic opportunities that support the agency's hiring and 
training of veterans, women, and underrepresented minorities. It sets 
the standard for the private sector.
  Mr. Chairman, as a Member of Congress from Houston, the energy 
capital of the Nation, I have always been mindful of the importance of 
having strongly advocated for national energy policies--really, all of 
the above--and to make our Nation energy independent, preserve and 
create jobs, and keep our Nation's economy strong.
  The recent increase in production of unconventional oil and natural 
gas has provided a lift to the U.S. economy, and Americans are seeing 
the benefits not only because of the jobs created, but also because 
household incomes have gone up. It is up to us to have the regulatory 
structure that protects the environment but also provides the 
opportunity for growth and creates jobs.
  Mr. Chairman, I would be remiss if I did not point out that both the 
chairman and ranking member have been resolute in their pursuit of the 
expansion of opportunities in the energy industry. I share that 
commitment with them, and this amendment is an example of what happens 
when Members work in good faith across the aisle to find viable 
solutions.
  In this amendment, veterans, minorities, and women recognize that 
they are significantly underrepresented in the oil and gas industries 
at all levels and severely underrepresented in the senior managerial, 
professional, board, and ownership ranks. U.S. competitiveness requires 
that this Nation increase the number of successful underrepresented 
minorities in STEM education and careers, which is more essential than 
ever.
  A pipeline of qualified veterans looking for employment will play a 
key role as the energy industry seeks quality, highly skilled workers. 
I am committed to honoring our obligations to our Nation's veterans and 
utilizing the talents of veterans to help the government meet today's 
dynamic challenges.
  Mr. Chairman, the Office of Energy Employment and Training will 
provide an opportunity to align military and utility job 
classifications, identify veterans with their desired basic skills, 
access military personnel during the off-boarding process, and hold 
training programs.
  It is interesting to note that in 2013, the number of STEM jobs in 
North Dakota increased by 37.2 percent as a direct result of the oil 
and gas boom in that State.
  Mr. Chairman, I hope my colleagues will support this amendment.
  I reserve the balance of my time.
  Mr. HASTINGS of Washington. Mr. Chairman, I ask unanimous consent to 
claim the time in opposition, although I am not opposed to the 
amendment.
  The Acting CHAIR. Is there objection to the request of the gentleman?
  There was no objection.
  The Acting CHAIR. The gentleman is recognized for 5 minutes.
  Mr. HASTINGS of Washington. Mr. Chairman, I yield myself as much time 
as I may consume.
  Mr. Chairman, this amendment is the product of a collaborative 
process between the gentlewoman from Texas and the Natural Resources 
Committee. For most of this year, the Subcommittee on Energy and 
Mineral Resources has held a series of hearings on

[[Page 11072]]

American energy jobs focusing on the tremendous job opportunities and 
demand for educated and skilled workers in the oil and gas industry. A 
number of those hearings focused directly on veterans, opportunities 
for veterans, opportunities for women, and opportunities for 
minorities, not only in the industry, but also within the Department of 
the Interior.
  Mr. Chairman, this amendment builds on that work by establishing an 
office in the Department of the Interior to centralize and focus 
specifically on the dismal record of the Department in these areas. And 
why do I say that, Mr. Chairman? I say that because we have learned 
earlier this year from a GAO report that the Department of the Interior 
has trouble staffing these agencies and fails to utilize all of the 
tools at their disposal to hire, to train, and to retain staff in these 
particular areas. And so what this amendment does is centralize what 
DOE should already be doing, with the focus on veterans, women, and 
minorities.
  So I am prepared to accept this amendment, and I look forward to 
working with the sponsor on this and other areas that we can agree 
upon.
  With that, Mr. Chairman, I urge adoption of the amendment, and I 
yield back the balance of my time.
  Ms. JACKSON LEE. Mr. Chairman, I want to thank the chairman for his 
astute reflection on the work that we have done and I have done over 
the years. I introduced H.R. 70 and H.R. 3710 that dealt with coastal 
restoration and the utilization of training for our young people and 
our veterans.
  So as I conclude and thank the chairman for his acknowledgment, along 
with the ranking member, of their work on the committee dealing with 
diversification, the Jackson Lee amendment will help prepare a diverse 
population of workers from across the country with diverse backgrounds 
to enter in exciting and rewarding careers in American energy jobs.
  Our Historically Black Colleges and Universities, Hispanic Centers of 
Excellence, Tribal Colleges and Universities, Native American-Serving 
Nontribal Institutions, and women colleges and universities will become 
engaged by a direct pipeline into the Department of the Interior that 
will foster collaboration, mentorships, and partnerships through 
effective job training that will yield employment opportunities. The 
Department of the Interior will be responsible for fostering diversity 
in management, employment, and business activities. It will be the 
light at the end of the tunnel creating a pathway for the 800,000 jobs.
  Mr. Chairman, at this time, I would like to put into the Record the 
Employment Outlook for African Americans and Latinos In the Upstream 
Oil and Natural Gas Industry.

                       [An IHS Report, Nov. 2012]

 Employment Outlook for African Americans and Latinos in the Upstream 
                      Oil and Natural Gas Industry

          (Prepared for the American Petroleum Institute, API)


                              key findings

       Oil and natural gas will remain as the main source of fuel 
     for decades to come as other forms of energy also become 
     commercially viable. In fact, in early November 2012, the 
     International Energy Agency (IEA) projected that the United 
     States will become the world's top oil producer by 2020 and 
     that North America would be in a position to export more oil 
     than it imports by 2030.
       These findings underscore the critical importance of the 
     analysis and findings of a new IHS report entitled Employment 
     Outlook for African Americans and Latinos in the Upstream Oil 
     and Natural Gas Industry (2012). Principal findings of the 
     new IHS report Include:
       More than 500,000 jobs projected to be created by 2020 and 
     over 800,000 jobs created by 2030 in the upstream oil and 
     natural gas industry under pro-energy development policies.
       Job growth would be geographically diverse. Over half of 
     the job growth, 417 thousand jobs, is expected in the Gulf 
     region. The East region is expected to contribute nearly 140 
     thousand job opportunities and the Rockies region nearly 116 
     thousand job opportunities. The West, Alaska, and Central 
     regions will combine to contribute approximately 138 thousand 
     job opportunities.
       Central to this analysis is workforce training critical to 
     the projected U.S. petroleum industry growth to keep the 
     nation at a competitive advantage and to provide the energy 
     the nation depends upon. African Americans and Hispanic 
     Americans represent a critically vital and available talent 
     pool to help meet the demands of the projected growth and 
     expansion. For African Americans and Hispanics to be 
     competitive for the 800,000 potential new jobs it will 
     require:
       Significant improvement in minority preparation in Science, 
     Technology, Engineering and Mathematics (STEM) related 
     disciplines at the primary and secondary school levels--a 
     national priority;
       Significant improvement in high school completion rates for 
     Hispanics and African Americans;
       Secondary and post-secondary staff (i.e., principals, 
     deans, teachers, faculty, counselors) should be trained to 
     inform their students on the workforce opportunities in the 
     petroleum industry, specifically in the regions identified, 
     and the training required;
       An increase the labor force participation rates of African 
     Americans and Hispanics;
       Sixty-two percent of the job growth are estimated to be in 
     blue collar jobs that would require a high school diploma and 
     some additional training such as community college vocational 
     degrees and certificates;
       Twenty-one percent of the job growth will require training 
     in engineering (petroleum, etc.), geoscience fields, 
     management, business, and finance, and as technicians;
       Partnerships between higher education and industry, 
     especially at the community college level would yield near 
     term positive results;
       Hispanic and African American students with high school 
     diplomas and some additional training at community colleges 
     in skills related to the oil and gas industry are immediately 
     competitive for current job opportunities;
       African American and Hispanic students who successfully 
     complete college degrees related to the oil and natural gas 
     industry, e.g., petroleum engineering, would be highly 
     competitive for workforce placement;
       Wages in the upstream oil and natural gas industry, across 
     many professions, far exceed the national average wage rate;
       Some portion of the job opportunities would be in 
     geographic locations away from segments of minority 
     populations and may require relocation;
       Employment in the oil and gas industry can provide a 
     reliable means to a better than average quality of life for 
     Hispanics and African Americans for decades to come.
       Both challenges and opportunities exist going forward. 
     Raising educational achievement for large segments of the 
     upcoming generation is resource intensive and will take 
     decades to achieve. However, the payoff of an increased 
     skilled labor pool would be enormous to society in general 
     and U.S. industry in particular. This report illustrates that 
     there are significant opportunities for African Americans and 
     Hispanics throughout the petroleum industry currently and 
     well into the future at each level of education and training.

III. Minority and Female Employment in the Oil & Gas and Petrochemical 
                           Industries in 2010


                         employment by industry

       The three segments of the U.S. oil and gas industry and the 
     petrochemical industry together employed a total of 1.2 
     million people in 2010 (see Table III.1).
       The upstream segment, with employment of 721 thousand, 
     accounted for 60% of the total, followed by the downstream 
     segment with 23%.
       African American workers held 98 thousand jobs in these 
     industries in 2010, accounting for 8.2% of total employment. 
     Their share within the petrochemical industry was 11.2%.
       Hispanic workers held 188 thousand jobs across all four 
     industry segments--15.7% of the total. They accounted for a 
     higher share of employment in the upstream segment than in 
     the other segments.

 Table III.1--AFRICAN AMERICAN AND HISPANIC EMPLOYMENT IN THE OIL & GAS AND PETROCHEMICAL INDUSTRIES BY SEGMENT:
                                                   2010 TOTAL
----------------------------------------------------------------------------------------------------------------
                                                                                                      Petro-
                                       Total         Upstream        Midstream      Downstream       chemicals
----------------------------------------------------------------------------------------------------------------
Total...........................       1,198,590         720,911          42,079         279,162         156,438
African American................          97,789          57,886           2,262          20,043          17,598
Hispanic........................         188,088         136,265           4,440          28,426          18,957
 
                                           Minority Shares by Segment
 
Total...........................          100.0%          100.0%          100.0%          100.0%          100.0%
African American................            8.2%            8.0%            5.4%            7.2%           11.2%
Hispanic........................           15.7%           18.9%           10.6%           10.2%           12.1%
 

[[Page 11073]]

 
                                      Shares by Segment in Each Occupation
 
Total...........................          100.0%           60.1%            3.5%           23.3%           13.1%
African American................          100.0%           59.2%            2.3%           20.5%           18.0%
Hispanic........................          100.0%           72.4%            2.4%           15.1%           10.1%
----------------------------------------------------------------------------------------------------------------

                          Employment by Gender

       Women accounted for 19% of total employment in the combined 
     oil and gas and petrochemical industries. Their share is 
     higher in the downstream and petrochemical segments (25%) and 
     lower in the upstream and midstream segments (15-16%). (See 
     Table III.2.)
       The female share of employment in these industries is much 
     lower for the Hispanic population--only 13%.
       The incidence of female employment for the African American 
     population in the oil & gas industry generally mirrors the 
     nation-wide pattern for the industry, at a share of 19%. In 
     the midstream industry there is a higher female share.

          TABLE III.2--FEMALE EMPLOYMENT IN THE OIL & GAS AND PETROCHEMICAL INDUSTRIES BY SEGMENT: 2010
----------------------------------------------------------------------------------------------------------------
                                                                                                      Petro-
                                       Total         Upstream        Midstream      Downstream       Chemicals
----------------------------------------------------------------------------------------------------------------
Total...........................       1,198,590         720,911          42,079         279,162         156,438
    Female......................         225,687         110,350           6,840          69,140          39,357
    Male........................         972,903         610,561          35,239         210,022         117,081
Percent Female..................             19%             15%             16%             25%             25%
 
African American................          97,789          57,886           2,262          20,043          17,598
    Female......................          18,953           9,239             594           4,806           4,314
    Male........................          78,836          48,647           1,668          15,237          13,284
Percent Female..................             19%             16%             26%             24%             25%
 
Hispanic........................         188,088         136,265           4,440          28,426          18,957
    Female......................          25,335          13,648             554           5,647           5,486
    Male........................         162,753         122,617           3,886          22,779          13,471
Percent Female..................             13%             10%             12%             20%             29%
 
----------------------------------------------------------------------------------------------------------------

  Ms. JACKSON LEE. So, in conclusion, Mr. Chairman, let me indicate 
that our task here is to create jobs. We understand that there are 
300,000 vets that, in fact, may need unemployment insurance. We want 
them to have jobs, along with women and minorities, and so I would ask 
my colleagues to accept the Jackson Lee amendment, and I thank the 
committee.
  I yield back the balance of my time.
  Mr. Chair, I would like to thank Natural Resources Committee Chairman 
Hastings and Ranking Member DeFazio for their leadership and 
commitment.
  I also wish the Chairman well as he moves on to other endeavors. He 
will be missed.
  Mr. Chair, I rise to speak in support of the Jackson Lee Amendment #9 
to H.R. 4899, the Lowering Gasoline Prices to Fuel an America that 
Works Act of 2014.
  Congress has an affirmative duty to increase diversity in the federal 
government as there is an undeniable lack of participation for 
veterans, women and minorities in regards to employment, 
entrepreneurial and ownership opportunities.
  The Jackson Lee Amendment #9 to H.R. 4899 directs the Secretary of 
the Interior to establish an Office of Energy Employment and Training 
to create economic opportunities that support the Agency's hiring and 
training of veterans, women and underrepresented minorities.
  As the Member of Congress from Houston, the energy capital of the 
nation, I have always been mindful of the importance and have strongly 
advocated for national energy policies that will make our nation more 
energy independent, preserve and create jobs, and keep our nation's 
economy strong.
  The recent increase in production of unconventional oil and natural 
gas has provided a lift to the U.S. economy and Americans are seeing 
the benefits not only because of the jobs created but also because 
household incomes have seen an increase as a result of lower energy 
costs.
  I would be remiss if I did not point out that both the Chairman and 
Ranking Member have been resolute in their pursuit of the expansion of 
opportunities in the energy industry. I share that commitment with 
them--and this amendment is an example of what happens when Members 
work in good-faith across the aisle to find viable solutions.
  We all know that while government may not be able to solve all 
problems--it can be a bridge to solving some--and ``the great 
mitigator'' for others.
  Veterans, minorities and women are significantly underrepresented in 
the oil and gas industries at all levels and severely underrepresented 
in the senior managerial, professional, board and ownership ranks. U.S. 
competitiveness requires that this nation increases the number of 
successful underrepresented minorities in STEM education and careers, 
is more essential than ever.
  A pipeline of qualified veterans looking for employment could play a 
key role as the energy industry seeks quality, highly skilled workers. 
I am committed to honor our obligations to our Nation's veterans; 
utilize the talents of veterans to help the Government meet today's 
dynamic challenges; and create a program worthy of emulation by the 
private sector.
  The Office of Energy Employment and Training will provide an 
opportunity to align military and utility job classifications, identify 
veterans with the desired basic skills, access military personnel 
during the off-boarding process and hold training programs specifically 
for targeted veteran cohorts.
  Underrepresented minorities seeking STEM jobs cannot solely rely upon 
advanced degree programs, but must be able to pursue a number of routes 
to good paying STEM jobs. A highly focused area for STEM education and 
job opportunities can be found in the oil and gas industry.
  For example, 2001-13 the number of STEM jobs in North Dakota 
increased by 37.2 percent as a direct result of the oil and gas boom in 
that state. North Dakota exceeded the nation in life, physical and 
social science technicians and the state is close to the national 
average for engineering technicians, physical scientists and life 
scientists.
  Nationally, in 2010 there were 1.2 million people employed in the oil 
and gas industry of those persons only: 98,000 or 8.2% are African 
Americans; 188,000 or 15.7% are Hispanics; and 225,687 jobs or 19% are 
women.
  The 2014 report prepared by the American Petroleum Institute states 
the oil and gas industry and petrochemical industry could create 
between 940,000 to 1.3 million employment opportunities between now and 
2030.
  Only a small fraction of these new jobs will come as a result of 
retirements.
  The major factor for employment demands for the oil and gas industry 
is natural growth that will occur and investment by the industry and 
the influence of energy demand by a growing economy.
  There a significantly larger number and variety of good paying jobs 
in the oil and gas industry. In 2011, the average oil field worker 
earned $35,590, slightly higher than the national average; those 
working in natural gas distribution earned an average of $38,870 per 
year. The states with the highest pay included Alaska, at $48,370; 
Montana at $45,870 per year; Wyoming, at $41,130; and North Dakota, at 
$40,340 per year.
  Minorities comprise 26% of the oil and gas labor force in 2010 and 
that number is expected to grow to 325 by 2030. In 2010 women were 17% 
of the oil and gas labor force and their number is expected to drop to 
less than 15% in 2030.
  The lower employment prospects for women are a direct consequence of 
the extreme level of underrepresentation in the energy sector.
  A closer look at the employment prospects for minorities' reveals 
that African-Americans

[[Page 11074]]

like are projected to experience a decline in employment in the oil and 
gas industry due to underrepresentation of African Americans.
  The level of underrepresentation of minorities and women is reflected 
in oil and gas industry senior and professional ranks. Minorities 
comprise 15% of management and professionals working in the oil and gas 
industry and are projected to comprise 17% by 2030.
  When compared to all blue collar jobs 2 minorities make up 21% of the 
jobs, and in 2010 they comprised 38% of blue collar jobs.
  Women do slightly better with a 24% in 2010, and are expected to hold 
this percentage of the blue collar job market to 2030.
  Our booming energy sector has been one of the greatest American 
success stories in the last decade, and remains a bright spot in our 
economy as it continue to fuel job creation. To continue this success 
we need a diverse energy workforce that is equipped to meet the 
challenges and opportunities of our new energy landscape.
  The Jackson Lee amendment will help prepare a diverse population of 
workers from across the country with diverse backgrounds to enter into 
exciting and rewarding careers in American energy jobs.
  Our Historically Black Colleges and Universities, Hispanic Centers of 
excellence, Tribal Colleges and Universities, Native American-Serving 
Non-Tribal Institutions and Women Colleges and Universities will become 
more engaged by a direct pipeline into the Department of Interior that 
will foster collaboration, mentorships and partnerships through 
effective job training that will yield employment opportunities.
  In closing, I ask my colleagues, to support the Jackson Lee amendment 
that will address the ability and potential of people who are 
traditionally underrepresented in energy-production activities by 
creating an Office of Energy Employment and Training, which will 
oversee the hiring and training efforts of the Department of Interior's 
energy planning, permitting, and regulatory agencies.
  The Department of the Interior will be responsible for fostering 
diversity in management, employment, and business activities.
  Again, I thank Chairman Hastings and Ranking Member DeFazio for their 
outstanding leadership.
  The Acting CHAIR. The question is on the amendment offered by the 
gentlewoman from Texas (Ms. Jackson Lee).
  The amendment was agreed to.


                Amendment No. 10 Offered by Mr. DeFazio

  The Acting CHAIR. It is now in order to consider amendment No. 10 
printed in House Report 113-493.
  Mr. DeFAZIO. Mr. Chairman, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       At the end of title II, add the following:

                  Subtitle E--Miscellaneous Provisions

     SEC. 25001. CERTAIN REVENUES GENERATED BY THIS ACT TO BE MADE 
                   AVAILABLE TO THE COMMODITY FUTURES TRADING 
                   COMMISSION TO LIMIT EXCESSIVE SPECULATION IN 
                   ENERGY MARKETS.

       The Mineral Leasing Act (30 U.S.C. 181 et seq.) is amended 
     by redesignating section 44 as section 45, and by inserting 
     after section 43 the following:

     ``SEC. 44. REVENUES TO BE MADE AVAILABLE TO THE COMMODITY 
                   FUTURES TRADING COMMISSION.

       ``(a) Establishment of Treasury Account.--The Secretary of 
     the Treasury (in this section referred to as the `Secretary') 
     shall establish an account in the Treasury of the United 
     States.
       ``(b) Deposit Into Account of Certain Revenues Generated by 
     This Act.--The Secretary shall deposit into the account 
     established under subsection (a) the first $10,000,000 of the 
     total of the amounts received by the United States under 
     leases issued under this Act or any plan, strategy, or 
     program under this Act.
       ``(c) Availability and Use of Funds.--
       ``(1) In general.--Subject to paragraph (2), the amounts in 
     the account established under subsection (a) shall be made 
     available to the Commodity Futures Trading Commission to use 
     its existing authorities to limit excessive speculation in 
     energy markets.
       ``(2) Subject to appropriations.--The authority provided in 
     paragraph (1) may be exercised only to such extent, and with 
     respect to such amounts, as are provided in advance in 
     appropriations Acts.''.

  The Acting CHAIR. Pursuant to House Resolution 641, the gentleman 
from Oregon (Mr. DeFazio) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Oregon.

                              {time}  1045

  Mr. DeFAZIO. Mr. Chairman, as I mentioned earlier, the chief 
executive officer of ExxonMobil, under oath before the United States 
Senate, testified 3 years ago that the price of oil was $30 to $40 
higher than it should have been, and the price at that time was about 
$100 a barrel, a little less than it is today. So $30 to $40 of the 
cost of each barrel of oil didn't have to do with the company passing 
through exploratory costs or lease costs or anything else; 30 to 40 
percent of the cost of every barrel of oil is due to speculation by 
commodities traders on Wall Street, flash traders, derivatives traders, 
and others.
  This isn't your grandfather's swaps market or commodities market. It 
is not users hedging themselves against future inflation. It is not 
producers hedging themselves. No, it is rampant speculation by people 
who have no intention of ever accepting delivery of a barrel of oil, 
have no use for a barrel of oil, except to manipulate its price to make 
it more expensive to make money for themselves and the people they 
represent, which is a very small minority of Americans, less than 1 
percent. Meanwhile, the other 99 percent of Americans pay more at the 
pump.
  We should do something about this. Now, there are those who think the 
modest position limits in Dodd-Frank will be a horrible, onerous burden 
on these speculators, and that maybe they can only extract $20 a 
barrel--maybe only $10 a barrel out of us--so you would only be paying 
an extra 30 cents at the pump to Wall Street. But as it stands today, 
after you take out other associated costs, about 60 cents a gallon that 
every American is paying at the pump today, no matter what the price 
is, where they live in the country, whether it is very high or very 
low, is going to Wall Street speculative interests.
  We should do something about that. If we want to provide relief to 
the American people at the pump, we should do something about that.
  This amendment is very simple. It establishes an account where money 
from lease sales would go to this account, and it would be made 
available to the Commodity Futures Trading Commission so they could 
upgrade their computers and do other things to better track and rein in 
speculators. Basically, the Commodity Futures Trading Commission has 
been choked to the point, in terms of personnel and equipment, I think 
they are still using Commodore 64s, and they are trying to chase 
supercomputers. We can do better, and we could do something real for 
the American people here today other than Groundhog Day on the fifth 
anniversary and repassage of this legislation that will not become law.
  Now there are those who will say you are increasing the deficit or 
whatever. No, it just says those leasing moneys would be put into this 
account, and they would be subject to appropriation. We would then have 
to convince the Appropriations Committee that it would be a good thing 
to upgrade the Commodity Futures Trading Commission so they could crack 
down on some of the flash trading and speculation that creates 
volatility and higher prices for Americans. I think this would be a 
very good thing to do.
  I reserve the balance of my time.
  Mr. HASTINGS of Washington. Mr. Chairman, I rise in opposition to the 
amendment.
  The Acting CHAIR. The gentleman is recognized for 5 minutes.
  Mr. HASTINGS of Washington. Mr. Chairman, I yield myself such time as 
I may consume.
  Mr. Chairman, this amendment is another attempt to prove the 
unfounded position that speculation in energy markets is impacting 
energy prices. Last year the Massachusetts Institute of Technology 
released a study showing that:

       Speculation had little, if any, effect on prices and 
     volatility.

  So this amendment then distracts from focusing really on future 
energy needs in our country and increasing our energy supply and 
production in our country.
  The underlying legislation simply ensures that American energy 
production can move forward to create jobs and reduce our dependence on 
foreign imports, therefore increasing revenues to the Federal treasury, 
and, of course, contribute to economic growth.

[[Page 11075]]

  Instead, this amendment I think would waste millions of dollars to 
try to find proof that speculation increases energy prices--a fact that 
has been disproven.
  I might add too, Mr. Chairman, that an amendment of this nature has 
repeatedly been defeated on a bipartisan vote in the committee, and not 
only in the committee but also in the full House of Representatives. I 
urge rejection of the amendment.
  I reserve the balance of my time.
  Mr. DeFAZIO. Mr. Chairman, I have an article from Oil Daily in 2008, 
and it is on the subject of a 1-day increase of $17.51 in the price of 
a barrel of oil, and they go on to say nothing in the world happened, 
that traders were astonished and horrified with the volatility, and 
this should really settle the argument whether this is speculation or 
fundamentals at work. There is massive speculation in this market.
  Even the chairman of ExxonMobil says that a good deal of the price 
being paid at the pump has to do with speculation. We can whistle past 
the graveyard and continue to bow to Wall Street and defer to them, but 
this is the reality. I wish that we would do something about it, but I 
fear we won't because they are very generous in even-numbered years.
  I yield back the balance of my time.
  Mr. HASTINGS of Washington. Mr. Chairman, I yield myself the balance 
of my time.
  Since it was established in earlier debate that the gentleman from 
Oregon is a Red Sox fan, let me quote here from the Massachusetts 
Institute of Technology, which of course they are in Cambridge, 
Massachusetts, and probably most of them are Red Sox fans. I will 
conclude here again on the issue of speculation. They conclude with 
this sentence:

       When we focus on four specific periods of price runups, we 
     find that speculation may have decreased prices by about 1.4 
     percent on average.

  In other words, what the gentleman is saying, in suggesting in his 
amendment that we should be studying speculation because it raises 
prices, here is a report from presumably a lot of Red Sox fans who 
believe that speculation might have driven prices down. Again, we have 
gone through this before not only in the committee but also in the 
House. It has been rejected. I urge we reject it one more time.
  I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from Oregon (Mr. DeFazio).
  The question was taken; and the Acting Chair announced that the noes 
appeared to have it.
  Mr. DeFAZIO. Mr. Chairman, I demand a recorded vote.
  The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further 
proceedings on the amendment offered by the gentleman from Oregon will 
be postponed.
  Mr. HASTINGS of Washington. Mr. Chairman, I move that the Committee 
do now rise.
  The motion was agreed to.
  Accordingly, the Committee rose; and the Speaker pro tempore (Mr. 
Simpson) having assumed the chair, Mr. Woodall, Acting Chair of the 
Committee of the Whole House on the state of the Union, reported that 
that Committee, having had under consideration the bill (H.R. 4899) to 
lower gasoline prices for the American family by increasing domestic 
onshore and offshore energy exploration and production, to streamline 
and improve onshore and offshore energy permitting and administration, 
and for other purposes, had come to no resolution thereon.

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