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113th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 113-55
AMENDING THE ENERGY POLICY ACT OF 2005 TO MODIFY THE PILOT PROJECT
OFFICES OF THE FEDERAL PERMIT STREAMLINING PILOT PROJECT
May 14, 2013.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
Mr. Hastings of Washington, from the Committee on Natural Resources,
submitted the following
R E P O R T
[To accompany H.R. 767]
[Including cost estimate of the Congressional Budget Office]
The Committee on Natural Resources, to whom was referred
the bill (H.R. 767) to amend the Energy Policy Act of 2005 to
modify the Pilot Project offices of the Federal Permit
Streamlining Pilot Project, having considered the same, report
favorably thereon with an amendment and recommend that the bill
as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
SECTION 1. PILOT PROJECT OFFICES OF FEDERAL PERMIT STREAMLINING PILOT
Section 365 of the Energy Policy Act of 2005 (42 U.S.C. 15924) is
amended by striking subsection (d) and inserting the following:
``(d) Pilot Project Offices.--The following Bureau of Land Management
Offices shall serve as the Pilot Project offices:
``(1) Rawlins Field Office, Wyoming.
``(2) High Plains District Office, Wyoming.
``(3) Montana/Dakotas State Office, Montana.
``(4) Farmington Field Office, New Mexico.
``(5) Carlsbad Field Office, New Mexico.
``(6) Grand Junction/Glenwood Springs Field Office, Colorado.
``(7) Vernal Field Office, Utah.''.
Purpose of the Bill
The purpose of H.R. 767, as amended, is to amend the Energy
Policy Act of 2005 to modify the Pilot Project offices of the
Federal Permit Streamlining Pilot Project.
Background and Need for Legislation
Section 365 of the Energy Policy Act of 2005 established
the Federal Permit Streamlining Pilot Project to improve
coordination of oil and gas permitting on Federal lands. The
2005 legislation included offices in Wyoming, Montana, New
Mexico, Colorado and Utah as pilot project offices.
As a result of this project, the Bureau of Land Management
(BLM) has been able to reduce a backlog of Applications for
Permits to Drill (APD) filed by companies in these offices and
the permitting and inspection processes have been streamlined.
The numbers of inspections and APDs processed in these offices
have increased and BLM's responsiveness to stakeholders has
This legislation would include the Montana/Dakotas State
Office in Montana as one of the BLM Pilot Project offices of
the Federal Permit Streamlining Pilot Project established in
the Energy Policy Act of 2005.
H.R. 767 was introduced on February 15, 2013, by
Congressman Kevin Cramer (R-ND). The bill was referred to the
Committee on Natural Resources, and within the Committee to the
Subcommittee on Energy and Mineral Resources. On March 21,
2013, the Subcommittee held a hearing on the bill. On April 24,
2013, the Full Natural Resources Committee met to consider the
bill. The Subcommittee on Energy and Mineral Resources was
discharged by unanimous consent. Congressman Cynthia Lummis (R-
WY) offered an amendment designated .012 to the bill; the
amendment was adopted by unanimous consent. No further
amendments were offered and the bill, as amended, was adopted
and ordered favorably reported to the House of Representatives
by unanimous consent.
Committee Oversight Findings and Recommendations
Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the House of Representatives, the
Committee on Natural Resources' oversight findings and
recommendations are reflected in the body of this report.
Compliance With House Rule XIII
1. Cost of Legislation. Clause 3(d)(1) of rule XIII of the
Rules of the House of Representatives requires an estimate and
a comparison by the Committee of the costs which would be
incurred in carrying out this bill. However, clause 3(d)(2)(B)
of that Rule provides that this requirement does not apply when
the Committee has included in its report a timely submitted
cost estimate of the bill prepared by the Director of the
Congressional Budget Office under section 402 of the
Congressional Budget Act of 1974. Under clause 3(c)(3) of rule
XIII of the Rules of the House of Representatives and section
403 of the Congressional Budget Act of 1974, the Committee has
received the following cost estimate for this bill from the
Director of the Congressional Budget Office:
H.R. 767--A bill to amend the Energy Policy Act of 2005 to modify the
Pilot Project offices of the Federal Permit Streamlining Pilot
H.R. 767 would authorize the Bureau of Land Management
(BLM) to expand a pilot program that aims to accelerate and
enhance the federal oil and gas permitting process at certain
BLM offices. Under current law, 50 percent of onshore oil and
gas rental payments received by BLM (excluding those from
Alaska) is available to fund the pilot program at seven BLM
offices through 2015. The bill would allow the Secretary to use
those funds at additional offices in North Dakota, South
Dakota, Montana, and Wyoming.
Because CBO expects that any funds spent at the offices
added to the pilot project under the bill would be spent at
other offices under current law, we estimate that implementing
the legislation would have no significant net impact on the
federal budget. Enacting H.R. 767 could affect direct spending
if expanding the pilot program resulted in BLM spending funds
faster than it would under current law; therefore, pay-as-you-
go procedures apply. However, CBO estimates that any such
impacts would be small over the 2014-2023 period. Enacting the
bill would not affect revenues.
H.R. 767 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act, and
would impose no costs on state, local, or tribal governments.
On April 3, 2013, CBO transmitted a cost estimate for S.
244, a bill to amend the Energy Policy Act of 2005 to modify
the pilot project offices of the Federal Permit Streamlining
Pilot Project, as ordered reported by the Senate Committee on
Energy and Natural Resources on March 14, 2013. The two bills
are similar, and the CBO cost estimates are the same.
The CBO staff contact for this estimate is Jeff LaFave. The
estimate was approved by Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
2. Section 308(a) of Congressional Budget Act. As required
by clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives and section 308(a) of the Congressional Budget
Act of 1974, this bill does not contain any new budget
authority, spending authority, credit authority, or an increase
or decrease in revenues or tax expenditures. CBO estimates that
implementing the legislation would have no significant net
impact on the federal budget.
3. General Performance Goals and Objectives. As required by
clause 3(c)(4) of rule XIII, the general performance goal or
objective of this bill, as amended, is to amend the Energy
Policy Act of 2005 to modify the Pilot Project offices of the
Federal Permit Streamlining Pilot Project.
This bill does not contain any Congressional earmarks,
limited tax benefits, or limited tariff benefits as defined
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of
the House of Representatives.
Compliance With Public Law 104-4
This bill contains no unfunded mandates.
Compliance With H. Res. 5
Directed Rule Making. The Chairman does not believe that
this bill directs any executive branch official to conduct any
specific rule-making proceedings.
Duplication of Existing Programs. This bill does not
establish or reauthorize a program of the federal government
known to be duplicative of another program. Such program was
not included in any report from the Government Accountability
Office to Congress pursuant to section 21 of Public Law 111-139
or identified in the most recent Catalog of Federal Domestic
Assistance published pursuant to the Federal Program
Information Act (Public Law 95-220, as amended by Public Law
98-169) as relating to other programs.
Preemption of State, Local or Tribal Law
This bill is not intended to preempt any State, local or
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as 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 change is
proposed is shown in roman):
ENERGY POLICY ACT OF 2005
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TITLE III--OIL AND GAS
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Subtitle F--Access to Federal Lands
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SEC. 365. PILOT PROJECT TO IMPROVE FEDERAL PERMIT COORDINATION.
(a) Establishment.--The Secretary of the Interior (referred
to in this section as the ``Secretary'') shall establish a
Federal Permit Streamlining Pilot Project (referred to in this
section as the ``Pilot Project'').
(b) Memorandum of Understanding.--
(1) In general.--Not later than 90 days after the
date of enactment of this Act, the Secretary shall
enter into a memorandum of understanding for purposes
of this section with--
(A) the Secretary of Agriculture;
(B) the Administrator of the Environmental
Protection Agency; and
(C) the Chief of Engineers.
(2) State participation.--The Secretary may request
that the Governors of Wyoming, Montana, Colorado, Utah,
and New Mexico be signatories to the memorandum of
(c) Designation of Qualified Staff.--
(1) In general.--Not later than 30 days after the
date of the signing of the memorandum of understanding
under subsection (b), all Federal signatory parties
shall, if appropriate, assign to each of the field
offices identified in subsection (d) an employee who
has expertise in the regulatory issues relating to the
office in which the employee is employed, including, as
applicable, particular expertise in--
(A) the consultations and the preparation of
biological opinions under section 7 of the
Endangered Species Act of 1973 (16 U.S.C.
(B) permits under section 404 of Federal
Water Pollution Control Act (33 U.S.C. 1344);
(C) regulatory matters under the Clean Air
Act (42 U.S.C. 7401 et seq.);
(D) planning under the National Forest
Management Act of 1976 (16 U.S.C. 472a et
(E) the preparation of analyses under the
National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.).
(2) Duties.--Each employee assigned under paragraph
(A) not later than 90 days after the date of
assignment, report to the Bureau of Land
Management Field Managers in the office to
which the employee is assigned;
(B) be responsible for all issues relating to
the jurisdiction of the home office or agency
of the employee; and
(C) participate as part of the team of
personnel working on proposed energy projects,
planning, and environmental analyses.
[(d) Field Offices.--The following Bureau of Land Management
Field Offices shall serve as the Pilot Project offices:
[(1) Rawlins, Wyoming.
[(2) Buffalo, Wyoming.
[(3) Miles City, Montana.
[(4) Farmington, New Mexico.
[(5) Carlsbad, New Mexico.
[(6) Grand Junction/Glenwood Springs, Colorado.
[(7) Vernal, Utah.]
(d) Pilot Project Offices.--The following Bureau of Land
Management Offices shall serve as the Pilot Project offices:
(1) Rawlins Field Office, Wyoming.
(2) High Plains District Office, Wyoming.
(3) Montana/Dakotas State Office, Montana.
(4) Farmington Field Office, New Mexico.
(5) Carlsbad Field Office, New Mexico.
(6) Grand Junction/Glenwood Springs Field Office,
(7) Vernal Field Office, Utah.
(e) Reports.--Not later than 3 years after the date of
enactment of this Act, the Secretary shall submit to Congress a
(1) outlines the results of the Pilot Project to
(2) makes a recommendation to the President regarding
whether the Pilot Project should be implemented
throughout the United States.
(f) Additional Personnel.--The Secretary shall assign to each
field office identified in subsection (d) any additional
personnel that are necessary to ensure the effective
(1) the Pilot Project; and
(2) other programs administered by the field offices,
including inspection and enforcement relating to energy
development on Federal land, in accordance with the
multiple use mandate of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1701 et seq.).
(g) Permit Processing Improvement Fund.--Section 35 of the
Mineral Leasing Act (30 U.S.C. 191) is amended by adding at the
end the following:
``(c)(1) Notwithstanding the first sentence of subsection
(a), any rentals received from leases in any State (other than
the State of Alaska) on or after the date of enactment of this
subsection shall be deposited in the Treasury, to be allocated
in accordance with paragraph (2).
``(2) Of the amounts deposited in the Treasury under
``(A) 50 percent shall be paid by the Secretary of
the Treasury to the State within the boundaries of
which the leased land is located or the deposits were
``(B) 50 percent shall be deposited in a special fund
in the Treasury, to be known as the `BLM Permit
Processing Improvement Fund' (referred to in this
subsection as the `Fund').
``(3) For each of fiscal years 2006 through 2015, the Fund
shall be available to the Secretary of the Interior for
expenditure, without further appropriation and without fiscal
year limitation, for the coordination and processing of oil and
gas use authorizations on onshore Federal land under the
jurisdiction of the Pilot Project offices identified in section
365(d) of the Energy Policy Act of 2005.''.
(h) Transfer of Funds.--For the purposes of coordination and
processing of oil and gas use authorizations on Federal land
under the administration of the Pilot Project offices
identified in subsection (d), the Secretary may authorize the
expenditure or transfer of such funds as are necessary to--
(1) the United States Fish and Wildlife Service;
(2) the Bureau of Indian Affairs;
(3) the Forest Service;
(4) the Environmental Protection Agency;
(5) the Corps of Engineers; and
(6) the States of Wyoming, Montana, Colorado, Utah,
and New Mexico.
(i) Fees.--During the period in which the Pilot Project is
authorized, the Secretary shall not implement a rulemaking that
would enable an increase in fees to recover additional costs
related to processing drilling-related permit applications and
(j) Savings Provision.--Nothing in this section affects--
(1) the operation of any Federal or State law; or
(2) any delegation of authority made by the head of a
Federal agency whose employees are participating in the
* * * * * * *