Politics in Action: H.R. 2021 and H.R. 1249

STATEMENT OF ADMINISTRATION POLICY

H.R. 2021 – Jobs and Energy Permitting Act

(Rep. Gardner, R- CO, and 26 cosponsors)

The Administration is committed to a common sense approach to cut oil imports by a third by 2025, in order to secure America’s energy future and protect consumers. The Administration intends to do this by both producing more oil at home and reducing our dependence on oil by using cleaner, alternative fuels and improving our energy efficiency.

In support of more safe and responsible domestic oil and gas production, the Administration is already taking steps including: expediting the search for resources; leasing new areas both offshore and onshore; providing incentives for the development of existing leases; and issuing permits to drill, consistent with rigorous safety standards and environmental responsibility.

However, the Administration opposes H.R. 2021, because it would curtail the authority of the Environmental Protection Agency (EPA) under the Clean Air Act (CAA) to help ensure that domestic oil production on the Outer Continental Shelf (OCS) proceeds safely, responsibly, and with opportunities for efficient stakeholder input.

H.R. 2021 would limit existing EPA authority to protect human health and the environment. The bill would: (1) preclude EPA from requiring offshore sources to demonstrate compliance with health-based air quality standards anywhere but in a single onshore area; (2) reduce the length of time during which exploration platforms and drill ships are emission sources under the CAA, thereby limiting the time when emissions would be controlled; and (3) make it impossible to use the permitting program to set emission control requirements for service vessels associated with offshore sources. These changes could result in increased air pollution from OCS sources, including nitrogen dioxide, particles, and sulfur dioxide.

H.R. 2021 would increase Federal court litigation and deprive citizens of an important avenue for challenging government action that affects local public health. H.R. 2021 would replace a relatively fast, inexpensive process for citizens to challenge government action with a longer, more expensive review process in the Court of Appeals for the D.C. Circuit.

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STATEMENT OF ADMINISTRATION POLICY

H.R. 1249 – America Invents Act

(Rep. Smith, R-Texas, and 5 cosponsors)

The Administration supports House passage of H.R. 1249 as modified by the Manager’s Amendment, but final legislative action must ensure that fee collections fully support the Nation’s patent and trademark system.

The bill’s much-needed reforms to the Nation’s patent system will speed deployment of innovative products to market and promote job creation, economic growth, and U.S. economic competitiveness – all at no cost to American taxpayers.

The bill represents a balanced and well-crafted effort to enhance the services to patent applicants and America’s innovators provided by the United States Patent and Trademark Office (USPTO). It does so by supporting the USPTO’s efforts to improve patent quality and reduce the backlog of patent applications, reducing domestic and global patenting costs for U.S. companies, providing greater certainty with respect to patent rights, and offering effective administrative alternatives to costly and complex litigation.

By adopting a first-inventor-to-file system, the bill simplifies the process of acquiring intellectual property rights. This provision provides greater certainty for innovators, reduces legal costs that often burden small businesses and independent inventors, and makes it easier for innovators to market their inventions in the global marketplace.

This legislation also provides authority for the USPTO to establish and adjust its fees to reflect the actual costs of the services it provides. In addition, the Manager's Amendment provides important authority for a 15 percent surcharge on patent fees and additional fees for "fast-track" patent applications, which will enable the USPTO to reduce the backlog.

Finally, to increase the quality and certainty of patent rights and offer cost-effective, timely alternatives to district court litigation, the Administration also supports provisions in the legislation that would enhance the opportunities for post-grant review of patents by the USPTO.

To carry out the new mandates of the legislation and reduce delays in the patent application process, the USPTO must be able to use all the fees it collects to serve the users who pay those fees. In this light, the Administration is concerned that Section 22 of the Manager's Amendment to H.R. 1249 does not by itself ensure such access.

The Administration looks forward to working with Congress to provide additional direction that makes clear that the USPTO will have timely access to all of the fees collected, subject to the congressional oversight provisions in the bill.

House passage of H.R. 1249 would foster innovation, improve economic competitiveness, and create jobs at no expense to taxpayers – all of which are key Administration goals. The Administration looks forward to working with Congress to finalize this important bipartisan legislation and ensure that the USPTO can effectively accomplish its mission to support America’s innovators.