,,ii  #aafth ,,congress  #ast ,session  
,s4 #hfe  ,,in ,,the ,,senate ,,of ,,the
 ,,united ,,states  ,march #be1         
#bjai,mr4 ,sullivan introduced the      
following bill2 which was read twice and
 referred to the ,committee on ,finance 
,a ,,bill  ,to amend the ,oil ,pollution
 ,act of #aiij to establish an oil spill
 response and prevention grant program  
and provide for advances from the ,oil  
,spill ,liability ,trust ,fund1 to amend
 the ,internal ,revenue ,code of #aihf  
to extend and modify the application of 
the ,oil ,spill ,liability ,trust ,fund 
financing rate1 and for other purposes4 
#a4 ,short title ,this ,act may be cited
 as the ,spill ,response and ,prevention
 ,surety ,act4  #b4 ,oil ,spill response
 and prevention  7a7 ,oil spill response
 and prevention grant program  7#a7 ,in 
general ,subtitle ,a of title ,,iv of   
the ,oil ,pollution ,act of #aiij       
7,public ,law #aja-chj2 #ajd ,stat4     
#eji7 is amended by adding at the end   
the following3  #daai4 ,oil spill       

response and prevention grant programs  
7a7 ,definitions ,in this section3 7#a7 
,committee ,the term ,committee means   
the ,interagency ,coordinating          
,committee on ,oil ,pollution ,research 
established by section #gjja7;a77#a74   
7#b7 ,eligible entity ,the term eligible
 entity means an institution of higher  
education that-- 7,a7 is located in an  
eligible ,state in which oil spills     
present a real and constant threat2     
7,b7 has a broad base of competence in  
fields relating to-- 7i7 ocean1 coastal1
 river1 or ,great ,lakes resources2 or  
7ii7 the modeling of1 efficacy of       
responses to1 and fates and effects of  
oil spills2  7,c7 is located in an area 
in which--  7i7 academic1 engineering1  
and infrastructure resources exist to   
adequately address ongoing and future   
threats of oil spills2  7ii7 ,federal1  
,state1 industry1 and academic resources
 are being directed to address threats  
of oil spills2  7iii7 planned future    
developments would intensify or         

exacerbate threats of oil spills2 and   
7iv7 research and development efforts   
would have the greatest impact on oil   
spill response and prevention2  7,d7 if 
proposing to conduct research on oil    
spill response and prevention in an     
ice-impacted environment1 has           
significant demonstrable experience in  
the conduct of research in ice-impacted 
environments2 and  7,e7 if proposing to 
conduct research in partnership with1 or
 to subcontract work to1 a foreign or   
private entity1 is partnering with1 or  
subcontracting to1 a foreign or private 
entity that is uniquely equipped to     
support the research being proposed4    
7#c7 ,eligible ,state ,the term eligible
 ,state means a ,state-- 7,a7 7i7 in    
which a marine oil terminal or          
transportation facility is located2 or  
7ii7 that the ,secretary determines has 
a substantial risk of oil spills through
 any other means of transportation2 and 
7,b7 with respect to which the          
,secretary has approved a proposal for  

the conduct of oil spill response or    
prevention activities or programs4  7#d7
 ,secretary ,the term ,secretary means  
the ,secretary of ,homeland ,security4  
7b7 ,establishment of programs ,to      
enable a better understanding of oil    
spills and oil spill response1 and to   
prevent oil spills1 there are           
established--  7#a7 a program under     
which the ,secretary shall biennially   
award grants to eligible entities for   
the conduct of oil spill response       
research and technology development     
activities and programs and oil spill   
prevention activities and programs that 
the ,secretary determines to be of      
substantial merit1 including the conduct
 of research on oil spill response and  
prevention in ice-impacted environments2
 and  7#b7 a program under which the    
,secretary shall annually award grants  
to eligible ,states for the conduct of  
oil spill prevention activities and     
programs in the eligible ,states1       
including--  7,a7 equipment and         

technology upgrades2  7,b7 upgrades to1 
and promotion of optimal use of1 spill  
prevention and response training        
facilities2  7,c7 support of strategic  
plans to address aging bulk oil storage 
and transportation infrastructure2  7,d7
 risk assessments and studies2 and  7,e7
 abandoned and derelict vessel          
identification1 remediation1 and        
removal4  7c7 ,applications ,to be      
eligible to receive a grant under the   
program established by paragraph 7#a7 or
 7#b7 of subsection 7b71 an eligible    
entity or eligible ,state1 as           
applicable1 shall submit to the         
,secretary an application at such time1 
in such manner1 and containing such     
information as the ,secretary determines
 to be appropriate4  7d7 ,coordination  
7#a7 ,eligible entity grant program     
7,a7 ,in general ,in coordinating1      
prioritizing1 and awarding grants under 
the program established by subsection   
7b77#a71 to ensure alignment with the   
principal objectives established in the 

,oil ,pollution ,research and           
,technology ,plan of the ,committee     
under section #gjja7;b71 the ,secretary 
shall coordinate with1 and solicit      
recommendations from1 the ,committee4   
7,b7 ,recommendations ,the              
recommendations provided by the         
,committee under subparagraph 7,a7 shall
 incorporate feedback from--  7i7 oil   
and gas industry representatives with   
expertise in relevant oil spill response
 research2 and  7ii7 members of academia
 with the expertise described in clause 
7i74  7#b7 ,eligible ,state grant       
program ,in evaluating applications     
under the grant program established by  
subsection 7b77#b71 the ,secretary may  
solicit recommendations from--  7,a7    
other relevant ,federal departments and 
agencies2 and  7,b7 the ,committee1 with
 respect to any research activity or    
program relating to oil spill prevention
 proposed in such an application4  7e7  
,funding  7#a7 ,in general ,of the      
amount of interest produced by          

investments in the ,fund-- 7,a7         
#aj1jjj1jjj1 as indexed for ,united     
,states dollar inflation from the date  
of enactment of this section 7as        
measured by the ,consumer ,price        
,index71 shall be available biennially1 
without further appropriation1 to carry 
out the grant program established by    
subsection 7b77#a72 and  7,b7           
#be1jjj1jjj1 as indexed for ,united     
,states dollar inflation from the date  
of enactment of this section 7as        
measured by the ,consumer ,price        
,index71 shall be available annually1   
without further appropriation1 to carry 
out the grant program established by    
subsection 7b77#b74  7#b7               
,administrative expenses ,of the amounts
 made available under subparagraphs 7,a7
 and 7,b7 of paragraph 7#a7 that are not
 otherwise appropriated1 the ,secretary 
may use not more than #b percent for the
 administrative expenses of the         
,secretary in carrying out the grant    
programs established by paragraphs 7#a7 

and 7#b71 respectively1 of subsection   
7b7 for each fiscal year4  4  7#b7      
,clerical amendment ,the table of       
contents of the ,oil ,pollution ,act of 
#aiij 7#cc ,u4,s4,c4 prec4 #bgja7 is    
amended by inserting after the item     
relating to section #daah the following3
  ,sec4 #daai4 ,oil spill response and  
prevention grant programs4  4  7#c7     
,expenditure authority ,section         
#ieji7;c77#a7 of the ,internal ,revenue 
,code of #aihf is amended-- 7,a7 in the 
matter preceding subparagraph 7,a71 by  
striking section #fjjb7;b7 and inserting
 section #daai or #fjjb7;b72  7,b7 in   
subparagraph 7,e71 by striking and at   
the end2  7,c7 in subparagraph 7,f71 by 
striking the period at the end and      
inserting 1 and2 and  7,d7 by adding at 
the end the following3  7,g7 for        
carrying out the grant programs under   
section #daai of the ,oil ,pollution    
,act of #aiij4  4  7b7 ,advances of     
amounts from ,oil ,spill ,liability     
,trust ,fund ,section #fjjb7;b7 of the  

,oil ,pollution ,act of #aiij 7#cc      
,u4,s4,c4 #bgeb7;b77 is amended-- 7#a7  
in the fourth sentence1 by striking     
,sums and inserting the following3  7#d7
 ,availability of amounts ,the amounts  
2  7#b7 in the third sentence--  7,a7 by
 striking by the ,coast ,guard2 and     
7,b7 by striking ,amounts advanced and  
inserting the following3  7#c7          
,repayment of advanced amounts ,any     
amounts advanced under paragraph 7#b7  2
  7#c7 by striking the second sentence  
and inserting the following3  7#b7      
,advance of funds ,to the extent that   
the amount under paragraph 7#a7 is not  
adequate1 the ,coast ,guard-- 7,a7 may  
obtain from the ,fund one or more       
advances of such sums as may be         
necessary1 up to a maximum of           
#ajj1jjj1jjj1 with the total amount of  
all advances not to exceed the amounts  
available under section #ieji7;c77#b7 of
 the ,internal ,revenue ,code of #aihf2 
and  7,b7 not later than #cj days after 
the date on which each advance is       

obtained under subparagraph 7,a71 and   
annually thereafter until all advances  
are repaid1 shall submit to the         
,committees on ,commerce1 ,science1 and 
,transportation and ,finance of the     
,senate and the ,committees on          
,transportation and ,infrastructure and 
,ways and ,means of the ,house of       
,representatives a report that          
describes--  7i7 the amount advanced    
under that subparagraph2 and  7ii7 the  
facts and circumstances necessitating1  
supporting1 and justifying the advance4 
2 and  7#d7 in the first sentence-- 7,a7
 by striking 1 as amended by this ,act  
and inserting 7#cc ,u4,s4,c4 #acba7;c772
 and  7,b7 by striking ,subsection 7a7  
shall not apply to sections and         
inserting the following3  7#a7 ,in      
general ,subsection 7a7 shall not apply 
to section  4  7c7 ,applicability of    
,oil ,spill ,liability ,trust ,fund     
financing rate  7#a7 ,permanent         
extension and periodic suspension       
,subsection 7f7 of section #dfaa of the 

,internal ,revenue ,code of #aihf is    
amended to read as follows3  7f7        
,application of ,oil ,spill ,liability  
,trust ,fund financing rate  7#a7 ,in   
general ,the ,oil ,spill ,liability     
,trust ,fund financing rate under       
subsection 7c7 shall not apply during   
any period--  7,a7 beginning on the day 
after the last day of any calendar      
quarter for which the ,secretary        
estimates that1 as of the close of that 
quarter1 the unobligated balance in the 
,oil ,spill ,liability ,trust ,fund is  
more than #g1jjj1jjj1jjj1 and  7,b7     
ending #cj days after the last day of   
any subsequent calendar quarter for     
which the ,secretary estimates that1 as 
of the close of that quarter1 such      
unobligated balance is #e1jjj1jjj or    
less4  7#b7 ,inflation adjustment ,in   
the case of any calendar year beginning 
after ,december #ca1 #bjai1 the         
#g1jjj1jjj1jjj amount in paragraph      
7#a77;,a7 and the #e1jjj1jjj1jjj amount 
in paragraph 7#a77;,b7 shall each be    

increased by an amount equal to--  7,a7 
such dollar amount1 multiplied by  7,b7 
the cost-of-living adjustment determined
 under section #a7;f77#c7 for the       
calendar year1 by substituting #bjah for
 #bjaf in subparagraph 7,a77ii7 thereof4
  ,any increase determined under the    
preceding sentence shall be rounded to  
the nearest multiple of #ajj1jjj1jjj4  4
  7#b7 ,effective date ,the amendment   
made by this subsection shall apply to  
crude oil received or petroleum products
 entered after the date that is #g days 
after the date of the enactment of this 
,act4  7d7 ,modification of limitation  
on ,oil ,spill ,liability ,trust ,fund  
expenditures  7#a7 ,in general          
,subparagraph 7,a7 of section           
#ieji7;c77#b7 of the ,internal ,revenue 
,code of #aihf is amended-- 7,a7 by     
striking #a1jjj1jjj1jjj in clause 7i7   
and inserting #b1jjj1jjj1jjj2  7,b7 by  
striking #ejj1jjj1jjj in clause 7ii7 and
 inserting #a1jjj1jjj1jjj2 and  7,c7 by 
striking #a1jjj1jjj1jjj per incident1   

etc in the heading and inserting ,per   
incident limitations4  7#b7 ,inflation  
adjustment ,section #ieji7;c77#b7 of    
such ,code is amended by adding at the  
end the following new subparagraph3     
7,c7 ,inflation adjustments ,in the case
 of any calendar year beginning after   
,december #ca1 #bjai1 the #b1jjj1jjj1jjj
 amount in subparagraph 7,a77i7 and the 
#a1jjj1jjj1jjj amount in subparagraph   
7,a77ii7 shall each be increased by an  
amount equal to--  7i7 such dollar      
amount1 multiplied by  7ii7 the         
cost-of-living adjustment determined    
under section #a7;f77#c7 for the        
calendar year1 by substituting #bjah for
 #bjaf in subparagraph 7,a77ii7 thereof4
  ,any increase determined under the    
preceding sentence shall be rounded to  
the nearest multiple of #ajj1jjj1jjj4  4
  7e7 ,clarification of definition of   
crude oil for excise tax purposes  7#a7 
,definition of crude oil ,paragraph 7#a7
 of section #dfab7;a7 of the ,internal  
,revenue ,code of #aihf is amended to   

read as follows3  7#a7 ,crude oil ,the  
term crude oil includes crude oil       
condensates1 natural gasoline1 any      
bitumen or bituminous mixture1 any oil  
derived from a bitumen or bituminous    
mixture4  4  7#b7 ,effective date ,the  
amendment made by this subsection shall 
apply to oil and petroleum products     
received or entered during calendar     
quarters beginning more than #fj days   
after the date of the enactment of this 
,act4