[Senate Report 104-296]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 471
104th Congress                                                   Report
                                 SENATE

 2d Session                                                     104-296
_______________________________________________________________________


 
            MINING AND MINERAL POLICY AMENDMENTS ACT OF 1995

                                _______
                                

                 June 27, 1996.--Ordered to be printed

_______________________________________________________________________


  Mr. Murkowski, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 1194]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1194) to amend the Mining and Mineral 
Policy Act of 1970 to promote the research, identification, 
assessment, and exploration of marine mineral resources, and 
for other purposes, having considered the same, reports 
favorably thereon with an amendment and an amendment to the 
title and recommends that the bill, as amended, do pass.
    The amendments are as follows:
    1. Strike out all after the enacting clause and insert in 
lieu thereof the following:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Marine Mineral Resources Research 
Act of 1996''.

SEC. 2. RESEARCH PROGRAM.

    The Mining and Minerals Policy Act of 1970 (30 U.S.C. 21a) is 
amended--
          (1) by inserting after the first section the following:

                      ``TITLE I--MINING POLICY'';

          (2) by redesignating section 2 as section 101; and
          (3) by adding at the end the following:

         ``TITLE II--MARINE MINERAL RESOURCES RESEARCH PROGRAM

``SEC. 201. DEFINITIONS.

    ``In this title:
          ``(1) The term `contract' has the same meaning as 
        `procurement contract' in section 6303 of title 31, United 
        States Code.
          ``(2) The term `cooperative agreement' has the same meaning 
        as in section 6305 of title 31, United States Code.
          ``(3) The term `eligible entity' means--
                  ``(A) a research or educational entity chartered or 
                incorporated under Federal or State law;
                  ``(B) an individual who is a United States citizen; 
                or
                  ``(C) a State or regional agency.
          ``(4) The term `grant' has the same meaning as `grant 
        agreement' in section 6304 of title 31, United States Code.
          ``(5) The term `in-kind contribution' means a non-cash 
        contribution provided by a non-Federal entity that directly 
        benefits and is related to a specific project or program. An 
        in-kind contribution may include real property, equipment, 
        supplies, other expendable property, goods, and services.
          ``(6) The term `marine mineral resource' means--
                  ``(A) sand and aggregates;
                  ``(B) placers;
                  ``(C) phosphates;
                  ``(D) manganese nodules;
                  ``(E) cobalt crusts;
                  ``(F) metal sulfides; and
                  ``(G) other marine resources that are not--
                          ``(i) oil and gas;
                          ``(ii) fisheries; or
                          ``(iii) marine mammals.
          ``(7) The term `Secretary' means the Secretary of the 
        Interior.

``SEC. 202. RESEARCH PROGRAM.

    ``(a) In General.--The Secretary shall establish and carry out a 
program of research on marine mineral resources.
    ``(b) Program Goal.--The goal of the program shall be to--
          ``(1) promote research, identification, assessment, and 
        exploration of marine mineral resources in an environmentally 
        responsible manner;
          ``(2) assist in developing domestic technologies required for 
        efficient and environmentally sound development of marine 
        mineral resources;
          ``(3) coordinate and promote the use of technologies 
        developed with Federal assistance, and the use of available 
        Federal assets, for research, identification, assessment, 
        exploration, and development of marine mineral resources; and
          ``(4) encourage academia and industry to conduct basic and 
        applied research, on a joint basis, through grants, cooperative 
        agreements, or contracts with the Federal Government.
    ``(c) Responsibilities of the Secretary.--In carrying out the 
program, the Secretary shall--
          ``(1) promote and coordinate partnerships between industry, 
        government, and academia to research, identify, assess, and 
        explore marine mineral resources in an environmentally sound 
        manner;
          ``(2) undertake programs to develop the basic information 
        necessary to the long-term national interest in marine mineral 
        resources (including seabed mapping) and to ensure that data 
        and information are accessible and widely disseminated as 
        needed and appropriate;
          ``(3) identify, and promote cooperation among agency programs 
        that are developing, technologies developed by other Federal 
        programs that may hold promise for facilitating undersea 
        applications related to marine mineral resources, including 
        technologies related to vessels and other platforms, underwater 
        vehicles, survey and mapping systems, remote power sources, 
        data collection and transmission systems, and various seabed 
        research systems; and
          ``(4) foster communication and coordination between Federal 
        and State agencies, universities, and private entities 
        concerning marine mineral research on seabeds of the 
        continental shelf, ocean basins, and arctic and cold water 
        areas.
``In carrying out these responsibilities, the Secretary shall ensure 
the participation of nonfederal users of technologies and data related 
to marine mineral resources in planning and priority setting.

``SEC. 203. GRANTS, CONTRACTS, AND COOPERATIVE AGREEMENTS.

    ``(a) Assistance and Coordination.--
          ``(1) In general.--The Secretary shall award grants or 
        contracts to, or enter into cooperative agreements with, 
        eligible entities to support research for the development or 
        utilization of--
                  ``(A) methods, equipment, systems, and components 
                necessary for the identification, assessment, and 
                exploration of marine mineral resources in an 
                environmentally responsible manner;
                  ``(B) methods of detecting, monitoring, and 
                predicting the presence of adverse environmental 
                effects in the marine environment and remediating the 
                environmental effects of marine mineral resource 
                exploration, development, and production; and
                  ``(C) education and training material in marine 
                mineral research and resource management.
          ``(2) Cost-sharing for contracts or cooperative agreements.--
                  ``(A) Federal share.--Except as provided in 
                subparagraph (B)(ii), the Federal share of the cost of 
                a contract or cooperative agreement carried out under 
                this subsection shall not be greater than 80 percent of 
                the total cost of the project.
                  ``(B) Non-federal share.--The remaining non-Federal 
                share of the cost of a project carried out under this 
                section may be--
                          ``(i) in the form of cash or in-kind 
                        contributions, or both; and
                          ``(ii) comprised of funds made available 
                        under other Federal programs, except that non-
                        Federal funds shall be used to defray at least 
                        10 percent of the total cost of the project.
                  ``(C) Consultation.--Not later than 180 days after 
                the date of enactment of this Act, the Secretary shall 
                establish, after consultation with other Federal 
                agencies, terms and conditions under which Federal 
                funding will be provided under this subsection that are 
                consistent with the Agreement on Subsidies and 
                Countervailing Measures referred to in section 
                101(d)(12) of the Uruguay Round Agreement Act (19 
                U.S.C. 3511(d)(12)).
    ``(b) Competitive Review.--
          ``(1) In general.--An entity shall not be eligible to receive 
        a grant or contract, or participate in a cooperative agreement, 
        under subsection (a) unless--
                  ``(A) the entity submits a proposal to the Secretary 
                at such time, in such manner, and accompanied by such 
                information as the Secretary may reasonably require; 
                and
                  ``(B) the proposal has been evaluated by a 
                competitive review panel under paragraph (3).
          ``(2) Competitive review panels.--
                  ``(A) Composition.--A competitive review panel shall 
                be chaired by the Secretary or by the Secretary's 
                designee and shall be composed of members who meet the 
                following criteria:
                          ``(i) Appointment.--The members shall be 
                        appointed by the Secretary.
                          ``(ii) Experience.--Not less than 50 percent 
                        of the members shall represent or be employed 
                        by private marine resource companies that are 
                        involved in exploration of the marine 
                        environment or development of marine mineral 
                        resources.
                          ``(iii) Interest.--None of the members may 
                        have an interest in a grant, contract, or 
                        cooperative agreement being evaluated by the 
                        panel.
                  ``(B) No compensation.--A review panel member who is 
                not otherwise a Federal employee shall receive no 
                compensation for performing duties under this section, 
                except that, while engaged in the performance of duties 
                away from the home or regular place of business of the 
                member, the member may be allowed travel expenses, 
                including per diem in lieu of subsistence, in the same 
                manner as a person employed intermittently in the 
                Government service under section 5703 of title 5, 
                United States Code.
          ``(3) Evaluation.--A competitive review panel shall base an 
        evaluation of a proposal on criteria developed by the Secretary 
        that shall include--
                  ``(A) the merits of the proposal;
                  ``(B) the research methodology and costs of the 
                proposal;
                  ``(C) the capability of the entity submitting the 
                proposal and any other participating entity to perform 
                the proposed work and provide in-kind contributions;
                  ``(D) the amount of matching funds provided by the 
                entity submitting the proposal or provided by other 
                Federal, State, or private entities;
                  ``(E) the extent of collaboration with other Federal, 
                State, or private entities;
                  ``(F) in the case of a noncommercial entity, the 
                existence of a cooperative agreement with a commercial 
                entity that provides for collaboration in the proposed 
                research;
                  ``(G) whether the proposal promotes responsible 
                environmental stewardship; and
                  ``(H) such other factors as the Secretary considers 
                appropriate.
      ``(c) Limitations.--
          ``(1) Administrative expenses.--Not more than 10 percent of 
        the amount made available to carry out this section during a 
        fiscal year may be used by the Secretary for expenses 
        associated with administration of the program authorized by 
        this section.
          ``(2) Construction costs.--None of the funds made available 
        under this section may be used for the construction of a new 
        building or the acquisition, expansion, remodeling, or 
        alteration of an existing building (including site grading and 
        improvement and architect fees).
      ``(d) Reports.--An eligible entity that receives a grant or 
contract or enters into a cooperative agreement under this section 
shall submit an annual progress report and a final technical report to 
the Secretary that--
          ``(1) describes project activities, implications of the 
        project, the significance of the project to marine mineral 
        research, identification, assessment, and exploration, and 
        potential commercial and economic benefits and effects of the 
        project; and
          ``(2) in the case of an annual progress report, includes a 
        project plan for the subsequent year.

``SEC. 204. MARINE MINERAL RESEARCH CENTERS.

      ``(a) In General.--No later than 90 days after the date of 
enactment of this section, the Secretary shall designate 3 centers for 
marine mineral research and related activities.
      ``(b) Concentration.--One center shall concentrate primarily on 
research in the continental shelf regions of the United States, one 
center shall concentrate primarily on research in deep seabed and near-
shore environments of islands, and one center shall concentrate 
primarily on research in arctic and cold water regions.
      ``(c) Criteria.--In designating a center under this section, the 
Secretary shall give priority to a university that--
          ``(1) administers a federally funded center for marine 
        minerals research;
          ``(2) matriculates students for advanced degrees in marine 
        geological sciences, nonenergy natural resources, and related 
        fields of science and engineering;
          ``(3) is a United States university with established programs 
        and facilities that primarily focus on marine mineral 
        resources;
          ``(4) has engaged in collaboration and cooperation with 
        industry, governmental agencies, and other universities in the 
        field of marine mineral resources;
          ``(5) has demonstrated significant engineering, development, 
        and design experience in two or more of the following areas:
                  ``(A) seabed exploration systems;
                  ``(B) marine mining systems; and
                  ``(C) marine mineral processing systems; and
          ``(6) has been designated by the Secretary as a State Mining 
        and Mineral Resources Research Institute.
      ``(d) Center Activities.--A center shall--
          ``(1) provide technical assistance to the Secretary 
        concerning marine mineral resources;
          ``(2) advise the Secretary on pertinent international 
        activities in marine mineral resources development;
          ``(3) engage in research, training, and education transfer 
        associated with the characterization and utilization of marine 
        mineral resources; and
          ``(4) promote the efficient identification, assessment, 
        exploration, and management of marine mineral resources in an 
        environmentally sound manner.
    ``(e) Allocation of Funds.--In distributing funds to the centers 
designated under subsection (a), the Secretary shall, to the extent 
practicable, allocate an equal amount to each center
    ``(f) Limitations.--
          ``(1) Administrative expenses.--Not more than 5 percent of 
        the amount made available to carry out this section during a 
        fiscal year may be used by the Secretary for expenses 
        associated with administration of the program authorized by 
        this section.
          ``(2) Construction costs.--None of the funds made available 
        under this section may be used for the construction of a new 
        building or the acquisition, expansion, remodeling, or 
        alteration of an existing building (including site grading and 
        improvement and architect fees).

``SEC 205. AUTHORIZATION OF APPROPRIATIONS.

    ``There is authorized to be appropriated such sums as are necessary 
to carry out this title.''.

    2. Amend the title so as to read: ``To promote the 
research, identification, assessment, and exploration of marine 
mineral resources, and for other purposes.''.

                         Purpose of the Measure

    S. 1194, a bill to amend the Mining and Minerals Policy Act 
of 1970 to promote the research, identification, assessment, 
and exploration of marine mineral resources, and for other 
purposes.

                    Summary of the Major Provisions

    The bill reauthorizes a program of applied research on 
marine mineral resources. It authorizes the Secretary of the 
Interior to foster partnerships among the industry, academia, 
and the Government for research, identification, assessment, 
and exploration of marine mineral resources in an 
environmentally responsible manner. It further authorizes the 
Secretary of the Interior to promote the development of 
domestic technologies needed for efficient and environmentally 
sound development of marine mineral resources. It authorizes 
the Secretary of the Interior to implement this program through 
grants, contracts, and other cooperative arrangements and the 
designation of marine mineral research centers.

                          Background and Need

    In 1983, President Ronald Reagan established the 200-mile 
exclusive economic zone (EEZ). The U.S. EEZ covers more than 
2.5 billion acres, an area larger than that of the United 
States. The U.S. EEZ is the largest under any nation's 
jurisdiction and contains a resource base estimated to exceed 
one trillion dollars. This includes near-shore deposits such as 
sand, gravel and placer metals in ocean sediments, and ocean 
resources such as manganese oxides, and polymetallic sulfides 
and phosphorites.
    The EEZ is largely unexplored. Since its designation, the 
U.S. has performed a detailed reconnaissance of less than 5 
percent of the EEZ.
    A systematic approach to the identification, assessment, 
and exploration of the seabeds will be of great value in the 
orderly and environmentally sound development of the nations 
offshore minerals resources. This requires a range of advanced 
technologies such as: sensors for detection and 
characterization of ocean resources; extraction techniques; 
high resolution large area ocean floor imaging systems; digital 
ocean mapping information processing systems; chemical and 
radiological sensors for environmental site assessment and 
monitoring; in-situ and satellite-deployed large ocean sensors; 
and power sources, propulsion systems, pressure vessel and 
mechanical systems for underwater vehicles.
    Investigations to determine the linkages between the marine 
mineral resources and the ocean ecosystems are necessary. 
Research to characterize and describe the geologic processes 
that shape and control the distribution of minerals on and in 
the ocean bed is needed. Identification of potential 
environmental challenges is also required.
    Several countries are deeply involved in this area of 
research; the United Kingdom, France, Japan, Korea, and China 
being the most important. They have major institutions devoted 
to developing ocean technologies. They have extensive private 
industry support and have Government planning mechanisms that 
clearly define national ocean policies. The United States is 
seriously at risk of being left behind other nations that are 
aggressively investing in EEZ research and development. S. 1194 
will enhance our competitive stance in a number of areas of EEZ 
research and ocean technology.

                          Legislative History

    S. 1194 was introduced by Senators Akaka and Lott on August 
11, 1995, The Committee on Energy and Natural Resources held a 
hearing on May 2, 1996.

           Committee Recommendations and Tabulation of Votes

    The Senate Committee on Energy and Natural Resources, in 
open business session on June 19, 1996, by a voice vote of a 
quorum present, recommends that the Senate pass S. 1194, if 
amended as described herein.

                      Section-by-Section Analysis

    Section 1 identifies this Act as the ``Marine Mineral 
Resources Research Act of 1996''
    Section 2 amends the Mining and Minerals Policy Act by 
adding a new title which defines a program of marine mineral 
resources research.
    Section 201 of the new title defines certain terms used in 
the Act.
    Section 202 establishes a program of research on marine 
mineral resources and defines the program goals and the 
responsibilities of the Secretary of the Interior for carrying 
out this research program.
    Subsection 202(a) requires the Secretary of the Interior to 
establish a marine mineral research program within 180 days of 
the enactment of this Act.
    Subsection 202(b) establishes the following program goals:
    (1) the promotion of marine mineral resources research;
    (2) the development of technologies necessary to develop 
these resources;
    (3) the improved coordination of federal research; and
    (4) the promotion of cooperative research among federal 
agencies, academia, and the private sector.
    The Secretary of the Interior is directed to pursue these 
goals in an environmentally responsible manner.
    Subsection 202(c) defines the responsibilities of the 
Secretary of the Interior in carrying out the provisions of 
this Act. It requires the Secretary of the Interior to promote 
partnerships between industry, academia, and the Government in 
the conduct of the research program, with emphasis on the 
safety of the environment.
    This subsection requires the Secretary of the Interior to 
develop basic information that will be needed to define and 
pursue long-term national interests developing the marine 
mineral resources. It also requires the Secretary of the 
Interior to ensure widespread accessibility of the information 
and data developed under this program as well as its wide 
dissemination.
    The Secretary of the Interior is required to promote 
cooperation and coordination between various Federal agencies 
that are involved in research related to marine mineral 
resources.
    The Secretary of the Interior is also required to foster 
communication and coordination, and partnerships between 
industry, academia, and Federal and State agencies.
    Because the marine mineral resource research program is an 
applied research program, the users of information and 
technologies developed under this program need a voice in the 
prioritizing and planning of the program's activities. 
Therefore, in carrying out the marine mineral resource research 
program, the Secretary of the Interior is required to ensure 
the participation of non-Federal users of data and technologies 
in planning and prioritizing the activities of the program.
    Section 203 authorizes the Secretary of the Interior to 
award research contracts and grants, and to enter into 
cooperative agreements. Subsection 203(a) authorizes grants to 
develop technologies and methodologies for the identification, 
assessment, and exploration of marine mineral resources.
    The subsection caps the Federal contribution to any 
contract or cooperative agreement at 80 percent.
    Subsection 203(b) requires competitive review of grant 
proposals. It also provides for the establishment of a review 
panel consisting of members with appropriate qualifications and 
experience.
    Subsection 103(c) directs that no more than 10 percent of 
the funds available to carry out this section may be used for 
administrative expenses. To obtain maximum value from the funds 
being expended for research and development, this subsection 
prohibits the use of funds for construction of new buildings or 
for the acquisition or refurbishing of existing buildings.
    Subsection 203(d) contains requirements for periodic 
reporting on research accomplishments.
    Section 204 requires the Secretary of the Interior to 
designate marine mineral research centers.
    Subsection 204(a) directs the Secretary of the Interior to 
designate 3 centers for marine mineral research. The Committee 
intends that all funds appropriated to carry out Section 204, 
other than amounts available under subsection 204(f), be 
distribute directly to the designated research centers. These 
funds are to be used by research centers to develop and 
implement a program in marine mineral resources research as 
authorized in subsection 204(d).
    Subsection 204(b) specifies the areas of concentration for 
each of the centers.
    Subseciton 204(c) enumerates the criteria for designating 
the centers.
    Subsection 204(d) specifies the activities of the marine 
mineral research centers. The centers are to provide technical 
assistance concerning marine mineral resources. The centers are 
to advise the Secretary on marine mineral resources 
development. The centers are to engage in research, training, 
and education transfer. The centers are to promote efficient 
identification, assessment, exploration, and management of 
marine mineral resources in an environmentally safe manner.
    Subsection 204(e) directs the Secretary of the Interior to 
allocate funds to the three centers, to the extent possible, 
equally.
    Subsection 204(f) establishes a 5 percent limit on amount 
made available for administrative expenses. It also prohibits 
use of funds for building construction.
    Section 205 authorizes for appropriations the funds to 
implement this title.

                   Cost and Budgetary Considerations

    The Congressional Budget Office estimates of the costs of 
this measure has been requested but was not received at the 
time the report was filed. When the report is available, the 
Chairman will request it to be printed in the Congressional 
Record for the advice of the Senate.

                      Regulatory Impact Evaluation

    In compliance with the paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S.1194. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant economic responsibilities on private individuals 
and businesses. No personal information would be collected in 
administering the program. Therefore, there could be no impact 
on personal privacy. Little, if any, additional paperwork would 
result from the enactment of S.1194, as ordered reported.

                        Executive Communications

    The Department of the Interior submitted testimony for the 
record on S.1194 to amend the Mining and Minerals Policy Act of 
1970. This statement is included in the record of the hearing 
held by the Subcommittee on Forests and Public Land Management, 
Committee on Energy and Natural Resources on May 2, 1996.

                        Changes In Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill S. 1194, as ordered reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no changes is proposed is shown in roman):

                                 an act

    To establish a national mining and minerals policy.
    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That this 
Act may be cited as the ``Mining and Minerals Policy Act of 
1970''.

                         TITLE I--MINING POLICY

    [Sec. 2.] Sec. 101. The Congress declares that it is the 
continuing policy of the Federal Government in the national 
interest to foster and encourage private enterprise in (1) the 
development of economically sound and stable domestic mining, 
minerals, metal and mineral reclamation industries, (2) the 
orderly and economic development of domestic mineral resources, 
reserves, and reclamation of metals and minerals to help assure 
satisfaction of industrial, security and environmental needs, 
(3) mining, mineral, and metallurgical research, including the 
use and recycling of scrap to promote the wise and efficient 
use of our natural and reclaimable mineral resources, and (4) 
the study and development of methods for the disposal, control, 
and reclamation of mineral waste products, and the reclamation 
of mined land, so as to lessen any adverse impact of mineral 
extraction and processing upon the physical environment that 
may result from mining or mineral activities.
    For the purpose of this Act ``minerals'' shall include all 
minerals and mineral fuels including oil, gas, coal, oil shale 
and uranium.
    It shall be the responsibility of the Secretary of the 
Interior to carry out this policy when exercising his authority 
under such programs as may be authorized by law other than this 
Act. For this purpose the Secretary of the Interior shall 
include in his annual report to the Congress a report on the 
state of the domestic mining, minerals, and mineral reclamation 
industries, including a statement of the trend in utilization 
and depletion of these resources, together with such 
recommendations for legislative programs as may be necessary to 
implement the policy of this Act.
    Approved December 31, 1970.

           TITLE II_MARINE MINERAL RESOURCES RESEARCH PROGRAM

           * * * * * * *