July 30, 2010

CONTACT:
Blake Androff, 202-226-9019                                                                                      

Washington, D.C. – The U.S. House of Representatives today approved landmark legislation sponsored by House Natural Resources Committee Chairman Nick J. Rahall (D-WV) that directly responds to the crisis in the Gulf of Mexico, increases oil rig safety to prevent the next catastrophe, and reduces the federal deficit by $5.3 billion over the next five years.  The “Consolidated Land, Energy, and Aquatic Resources (CLEAR) Act” (H.R. 3534) was agreed to by a vote of 209 to 193.

“We want to ensure that offshore drilling is done efficiently, while protecting both the environment and our number one natural resource – the brave men and women who help power this great Nation,” said Rahall.  “In this day and age, in this America, whether it is a coal mine in my Congressional District, or an oil rig deep in the Gulf of Mexico, there is no room for an environment where working men and women leave their homes in the morning, and do not know if they will return in the evening.  That is what this legislation is about.”

The CLEAR Act would increase offshore oil rig safety, help restore the Gulf Coast, crack down on ethical lapses, require businesses to be responsible for their actions, and close royalty loopholes to ensure the American people receive their fair share for the extraction of public energy resources.

The bill approved by the House today also includes provisions from the “Blowout Prevention Act of 2010” (H.R. 5626), introduced by Rep. Henry A. Waxman (D-CA) and reported favorably, as amended, by the House Energy and Commerce Committee Chairman on July 15, 2010, by a vote of 48 to 0.  Additionally, provisions from the “Oil Spill Accountability and Environmental Protection Act of 2010” (H.R. 5629) were included; this bill was introduced by Rep. James L. Oberstar (D-MN) and reported favorably, as amended, by the House Transportation and Infrastructure Committee on July 1, 2010.

H.R. 3534 would require strong new safety standards for offshore drilling, including independent certifications of critical equipment, demonstrations of the ability to respond to future blowouts or major spills, increased inspections, stiffer penalties for safety violations, and an end to the practice of issuing environmental waivers for drilling plans.  It would also require all drilling rigs off U.S. coasts to fully adhere to U.S. safety standards.  The legislation would create a training academy for federal oil and gas inspectors to help ensure that only qualified individuals serve as inspectors under strict ethical standards.

“We need professional, highly trained safety inspectors who aren’t just pushing paper and rubberstamping in a matter of minutes what the industry tells them, but, rather, are out there asking the tough questions and are truly holding these oil companies accountable for their actions,” said Rahall. 

The legislation would permanently abolish the scandal-ridden Minerals Management Service and divide it into three separate entities: the Bureau of Energy and Resource Management (BERM), to manage leasing & permitting and conduct necessary environmental studies; the Bureau of Safety and Environmental Enforcement (BSEE), to conduct all inspections and investigations related to health, safety, and environmental regulations; and the Office of Natural Resource Revenue (ONRR), to collect all offshore and onshore oil and gas and renewable energy-related revenues.

“While we may not know the exact cause of the incident, we clearly know what contributed to it.  A culture of cozy relationships that had regulators interviewing for jobs on the same rigs they were supposed to be inspecting.  A trust-but-don’t-verify attitude toward safety standards.  And an agency that was asleep at the switch, spending too much time on the sidelines as the oil and gas industry wrote their own rules,” said Rahall.  “The CLEAR Act will dismantle and reorganize the dysfunctional Minerals Management Service so that the conflicts of interest between the leasing, policing, and revenue collecting are permanently abolished.”

The legislation would also make good on the promise that money obtained from the sale of the public’s resources be used to protect and conserve our natural, historical, and recreational resources by providing mandatory full funding for the Land and Water Conservation Fund (LWCF) and the Historic Preservation Fund (HPF).

“These Trust Funds are decades-old promises to the American people that, if we allow energy companies to deplete public resources off our shores, we will require them to dedicate a fraction of their profits to conservation on shore,” said Rahall.

The Congressional Budget Office estimates the CLEAR Act would reduce the federal deficit by $5.3 billion over the next five years.

A backgrounder, section-by-section summary, and the full text of the legislation are available on the Committee's Web site.

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