Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker and my colleagues, this is an emergency situation, and it requires emergency action by the House of Representatives. The United…
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker and my colleagues, this is an emergency situation, and it requires emergency action by the House of Representatives.
The United States Senate, the other body, has acted and sent us S. 3743, which will allow us to expand some of the use of the funds that have been accumulated in the national Oil Spill Liability Trust Fund on an emergency basis. I am pleased that the other body acted. This is a unique and very difficult situation dealing with a very unique and difficult national disaster.
First, I would be remiss if I didn't remember today those families who will be in Washington visiting with President Obama. Eleven individuals lost their lives when the oil rig, the Horizon, exploded in April. I know the President will be meeting with them. And, on behalf of all the Members of Congress, we extend our condolences for that loss of life.
Right now we are dealing with the results of that disaster. This disaster and explosion, sinking of the rig and the uncontrolled oil spill--fortunately, there has been some progress in that regard, but incredible amounts of oil have spilt into the gulf and now endangers the shores of at least four of our States.
In 1990, we set up an Oil Spill Liability Trust Fund, and that was after the Exxon Valdez. That fund has in it $1.6 billion, a substantial amount of money.
Now, that fund was not set up to relieve anyone of responsibility if they are negligent, and it was also not a fund to pay for cleanup costs that are clearly assigned, clearly identifiable. A lot of it was intended for what they call an ``orphan spill,'' or a spill where you don't know where the oil came from, the polluting substance came from.
Within that $1.6 billion trust fund for oil spills that we created, we have an emergency fund of $150 million that can be expended immediately. Now, what has taken place is that fund, the 150 million emergency dollars that can be spent--right now Thad Allen is doing a great job in leading the effort for the United States--and, as you know, he just retired from the Coast Guard--doing a wonderful job, but he has the responsibility of reacting now and immediately.
It took some time for the administration to get him in place and also to declare this a spill of national significance, but he is on the job and he needs the resources.
Now, the resources are running out. We do have a letter, which I will submit for the Record and to the Congress at this time. This is to the Speaker of the House, and it is from the Director of the Office of Management and Budget.
And he says, ``All the costs of this fund also that are being expended at this point must be repaid. But, at this current time, in just a matter of days, the emergency fund will run out.'' So we have documentation of the need from OMB.
And just a few minutes ago, we received from the Federal on-scene coordinator the statement that their requirements to support the continuing ongoing effort will bring the emergency fund to a critically low level over the next 7 days.
So we can't have the cleanup efforts come to a halt. We must act. Now, I saw the need for this yesterday and met with colleagues on my side of the aisle. We had a hearing in the Transportation and Infrastructure Committee. Mr. Oberstar and I agreed that we must act. The Senate has acted.
We have before us S. 3473. This morning, myself and other colleagues in Congress introduced H.R. 5499. That's mirror legislation. So both the Republican and Democrat House and Senate agree on the provisions of this legislation, which will allow in $100 million increments the expansion of the emergency fund.
Now let me make this very clear: the Oil Spill Liability Trust Fund is not going to be a piggy bank for BP or for other responsible parties. This money must, should, and will be repaid. This is only a temporary measure. It is only a temporary measure, too, because the money that they are repaying goes back into that larger fund, not into the emergency fund. This legislation will correct, again, the inability of accessing a larger amount of money on a needed basis.
So we have introduced mirror legislation today. This is a cooperative and bipartisan effort. However, this is a terrible disaster, and questions need to be raised about what has caused us to get to this situation. Quite frankly, I'm quite baffled about some of the administration's positions on deepwater offshore drilling.
In the beginning of this year, in February, we received the budget from the President of the United States and the administration. In this budget, they proposed cuts to the Coast Guard of more than 1,000 positions. They also proposed cuts to and proposed the decommissioning of some of the ships, the helicopters and the planes that we see now involved in this very important mission. Not only did they propose cuts to the Coast Guard, our first responder, but in February they also proposed cuts to the Department of the Interior--and look this up, if you will--and to the Minerals Management Service, which is responsible for environmental reviews. This is what they proposed in February.
Then in March they proposed the expansion of drilling in the gulf. I remember I and Frank LoBiondo, the ranking member, sent out a press release when we read about these cuts within the Coast Guard, and we said that this was a recipe for disaster. Fortunately, those cuts have not been enacted; and I believe, even before this oil spill, there was bipartisan support not to enact those cuts that were recommended.
In light of the administration's policy to expand drilling in the gulf, some people say I've been too tough on the Obama administration. I think the Obama administration does have a responsibility in this. They did issue the permit that allowed the drilling, and I have the 1- page permit.
Here is the 1-page approval: April 6, 2009, approval for deepwater drilling at 5,000 feet.
I have what I call the ``deficient plan'' that they approved that was submitted by BP in March. So in less days than it took in some instances to approve now of a cleanup of proposals, they rubber-stamped and gave carte blanche approval.
Let me say that I also criticized the Bush administration, but I went back and looked at what the Bush administration did with the agency that was responsible for issuing these permits. This is a memorandum from the Office of Inspector General, and it is dated September 9, 2008, which was during the Bush administration. This is what the Bush administration did in that agency that issued this permit under this new administration.
This memo conveys the results of three separate Office of Inspector General investigations into allegations against more than a dozen current and former Minerals Management Service employees. I went on to read what else the Bush administration did with regard to this agency that was responsible for issuing these permits.
Listen to this: Collectively, our recent work in the Minerals Management Service has taken well over 2 years. They investigated these folks. It also involved the OIG, Office of Inspector General, and Human Resources. There was an expenditure of nearly $5.3 million in OIG funds. There were 233 witnesses and subjects who were interviewed, many of them multiple times. Roughly 470,000 pages of documents were reviewed, and people were prosecuted, under the former administration, in this agency.
Now, the latest reports I have, which I discussed yesterday at the hearing, were that, in fact, we have reports of inspections by this agency, the Minerals Management Service, which were supposed to be done by these officers of that Federal agency. They were actually penciled in, we believe, and those are the reports we have by oil workers, which were then inked over by these folks. It is nice for this administration to have spent time rewarding BP with safety awards in the prior year. It is nice for them to have a good working relationship with those folks who are responsible for issuing the permits, but I think we need to take a closer look at how we got ourselves into this situation.
What brings us to this day when we've expended the emergency fund for cleanup that we have to take an emergency step like this?
Now, I support this measure, but I'm telling you that every penny needs to be paid back. This fund, this Oil Spill Liability Trust Fund that was put in place, shall not and cannot be used, as I said before, as a piggy bank for BP or for any responsible parties.
Where is the money? Where is the billing?
In the private sector, if you have a bill due, you pay it. As of yesterday, the staff told me that BP has been billed $69 million. As of yesterday, the information that we had is that they hadn't paid the bill. If they paid the bill, we still probably would have to be here because of the terms of the current legislation to allow access to additional money, but that money needs to go back into the trust fund, and it needs to be paid for by the responsible parties.
Executive Office of the President, Office of Management
and Budget,
Washington, DC, June 7, 2010.
Hon. Nancy Pelosi,
Speaker of the House of Representatives, Washington, DC.
Dear Madam Speaker: I am writing to urge the Congress to
move quickly in enacting the FY 2010 Supplemental request. On
June 4, 2010, Secretary Napolitano announced that the Coast
Guard believes that within the next two weeks funding levels
in the Oil Spill Liability Trust Fund's expenditure account
will drop to levels that will force the Federal On-Scene
Coordinator to begin to cut back Federal Deepwater Horizon
response activities. We cannot allow the lack of funding to
hamstring our Federal response to this national catastrophe.
On May 12, the Administration proposed legislation to
support the BP/Deepwater Horizon response and speed
assistance to people in need. Included in this package was a
provision that would permit the Coast Guard and its National
Pollution Funds Center to move funds from the Oil Spill
Liability Trust Fund to the Emergency Fund so that the
Federal response effort can continue without interruption.
Specifically, the legislative changes would permit the Coast
Guard to obtain additional advances in tranches of $100
million up to the incident cap for the Oil Spill Liability
Trust Fund. All of these costs are being billed to the
responsible parties and the receipts will be deposited in the
Trust Fund.
The President has ordered Federal agencies to bring all
available and appropriate resources to bear in response to
this disaster. Without legislative authorization, however,
the Coast Guard cannot access the additional emergency fund
resources necessary to pay for the Federal agencies' response
to this tragic oil spill.
We appreciate your support in moving this critical
legislation forward in the coming days.
Sincerely,
Peter R. Orszag,
Director.
I reserve the balance of my time.
Mr. Speaker, I yield 3 minutes to the gentleman from Louisiana (Mr. Cao), also a member of the Transportation and Infrastructure Committee.
I yield 2\1/2\ minutes to the distinguished gentleman from North Carolina (Mr. Coble), also a senior member of the T and I Committee.
Well, Mr. Speaker, I will summarize for our side.
First of all, again, this is an emergency situation. We have to act, we must act, and we will act. Let me make it clear, and I'm glad everyone on the other side has made it very clear, that BP's feet will be held to the fire to repay this money.
Now, it's good to come out here and hear that BP has called the other side and told them that they're going to pay, the check is in the mail, and that's all well, fine, and good. But I'd be glad to send somebody down to OMB and show them how they can send a rapid request for payment to BP as this thing moved forward because, again, the taxpayer shouldn't be left on the hook nor should this fund be left on the hook in any way for responsibility for this cleanup.
Finally, just a couple of points. It was mentioned that the Bush administration gave 4,200 leases--I think that was the figure--and that is true. It's also true, and the Democrat staff did an excellent job--I complimented them yesterday--in getting a list of the current drilling and production activities in the Gulf of Mexico, and I'll submit this to the Record. But if you look, there are about 3,500, 3,492 wells in relatively shallow water, 200 meters, about 600 feet up to the surface. There are only 25 a thousand meters below.
The Obama administration, coming into office, issued--these are deepwater, 1,000 feet to 8,000 feet--more than two dozen. We'll also submit that to the Record.
Now, if they knew this was a management problem in the Minerals Management Service, and I just cited the Bush administration investigated that agency for 2 years and conducted a very thorough review of what was going on, they must have known there was a management problem when they inherited it.
Instead, what did they do? Faster than BP can pay their bill, they took the proposal from BP in deepwater, some of the deepest water drill--here are the number of ones that the committee found that there's deepwater drilling in--and they carte blanche, rubber-stamped approval of this outline that BP gave them. One page, April 6. Those are the facts.
Will the gentleman yield?
Well, maybe you could explain, for the benefit of this side of the aisle in the House, what the changes would be.
I did have several changes that I would have liked to have addressed. I believe this particular legislation just deals with this spill. I would have hoped that we could have modified this so that, in the future, we wouldn't have to come back on an individual-spill basis to do what we are doing here today.
And also, because this is a unique circumstance, we have not found ourselves in this situation before, we could make some additional changes to the measure that would, in fact, sort of, clean up the statute.
But, again, I am not sure what particular parliamentary or minor technical changes the majority is prepared to make in the legislation at this time. We do want to be agreeable and move the process forward. Maybe, now, with those questions, you might respond.
I thank the gentleman.
I yield the gentleman from Florida, my colleague from Florida, 30 seconds of my time.
Madam Speaker, I guess as we conclude the extended time of debate on this measure to again revise some of the provisions of the emergency portion, $150 million emergency
fund within the $1.6 billion Oil Liability Trust Fund, I understand that there has been identified a minor technical glitch in the legislation as it came from the other body.
As a great American, former United States Senator Bob Dole, he used to say that his body, the U.S. Senate, is a great place if you like to see paint dry and grass grow, as far as the speed in which things are done.
However, here they have acted with due diligence and great speed and, in that speed, have made a minor technical error. And I am not going to tell anyone about it. And because this is a situation in which we must proceed on an emergency basis, I am going to overlook it, in fairness.
I would also like to yield to the gentleman, our honorable chairman of the T&I Committee, my partner, Mr. Oberstar.
Reclaiming the time, also keep in mind the time that I yielded to the other side when they ran out of time, Madam Speaker.
But to conclude debate, again, I thank everyone for this bipartisan effort. Even though, again, we have a minor technical glitch, we want to move the legislation forward; so I urge my colleagues to pass the measure.
I yield back the balance of my time.