AN ACT

To cap oil production, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

            (a) SHORT TITLE.—This act may be cited as the “Oil Cap Act.”

            (b) TABLE OF CONTENTS.—

_{Sec. 1. Short title; table of contents.}

_{Sec. 2. Findings}

_{Sec. 3. Definitions.}

_{Sec. 4. Cap on Oil Field Production.}

_{Sec. 5. Cap on Oil Imports.} 

_{Sec. 6. Cap on Oil Exports.} 

_{Sec. 7. Prohibition of Oil Exploration.} 

_{Sec. 8. Revoking of Oil Exploration Licenses.} 

_{Sec. 9. Prohibition on New Oil Leases}

_{Sec. 10. Revoking Unsafe Permits.} 

_{Sec. 11. Just Transition Committee.} 

_{Sec. 12. Compensation Program for Revoked License.} 

_{Sec. 13. Sanctions.}

_{Sec. 14. Reports to Congress.} 

SEC. 2. FINDINGS

            (a) FINDINGS.  Congress finds that—

(1) an overwhelming scientific consensus makes clear that limiting global temperature rise to 1.5°C requires governments to halt approval of new fossil fuel production and infrastructure and phase out existing fossil fuel production and infrastructure in developed fields and mines;

(2) fossil fuel producers are planning to extract more than double the           amount of oil, gas and coal by 2030 than is consistent with limiting warming to 1.5°C, with U.S. oil and gas production projected to increase twice as much as any other country;

(3) at current growth rate U.S. production alone would exhaust nearly 50% of the world’s total allowance for oil and gas by 2030 and exhaust more than 90% by 2050;

(4) climate change has already accelerated and exacerbated extreme weather events including hurricanes, rising temperatures, and rising seas;

(5) climate change has imperiled food and water security to millions of Americans;

(6)communities of color, low-wealth communities, children, older adults, and persons with disabilities and pre-existing medical conditions are disproportionally affected by the impacts of climate change, including health harms, heat waves, poor air quality, and flooding;

(7) the economic activity promoted by oil production and consumption is often at the expense of the sustainable biosphere and vital natural capital;

(8) placing a cap on oil production is essential to keeping the American economy with an optimal and sustainable scale;

(9) placing a cap on oil production is essential to keeping the American economy with an optimal and sustainable scale;

(10) the President and the Department of the Interior has always been charged with managing all public lands for the public good and the long-term well- being of the nation;

(11)  it makes no sense to read the statutory authorities regarding fossil fuel production in such a manner that the President and the Department must always allow fossil fuel  extraction at rates that cause extreme climate change to the detriment of public lands, the national interest, and global climate stability;

(12) as a straightforward statutory matter, Congress has unambiguously authorized the President and the Department of the Interior to set rates of oil and gas production under the law;

(13) setting the rate of production for existing and new fossil fuel production does not represent a breach of existing contracts under the clear lease terms already in place for all fossil fuel leases on public lands and waters, nor does it represent a taking of private property;

(14) under the Foreign Commerce Clause of 16 section 8 of article I of the Constitution of the United States, Congress has the power to regulate commerce with foreign nations;

(15) unrestricted oil production is not in the interest of the United States.

SEC. 3. DEFINITIONS.

            In this Act—

                        (1) “Act” refers to the “Oil Cap Act.”

    (2) “Oil” means oil, regardless of gravity, produced at a well head in liquid             form and any other hydrocarbons, except coal and gas, and, in particular,               hydrocarbons that may be  extracted or recovered from deposits of oil sand,         bitumen, bituminous sand, oil shale or from any  other types of deposits on          the subsoil.

                      (3) “Secretary” refers to the Secretary of the Interior.

  (4) “Barrel” or “bbl” means a barrel of oil or 42 U.S. gallons of oil after deductions for the full amount of basic sediment, water, and other                            impurities present, ascertained by  centrifugal or other recognized and customary test. All measurements of oil under this section shall be at 60 degrees Fahrenheit.

   (5) “Lease” means any contract, profit-share arrangement, joint venture or other agreement issued or approved by the United States under law that authorizes on any lands,  including the surface of a severed mineral estate, exploration for, extraction of or removal of oil or gas.

 (6) “Allocation” means an authorization by the President or Secretary under the Program to produce up to one barrel of oil or 1,000 cubic feet of gas during or after a specified calendar year. Allocations shall be rounded down for decimals less than 0.500 and up for decimals of 0.500 or greater.

    (7) “Covered lease” means a lease that is pursuant to subparagraph (1), subsection (e) of this act.

    (8) “Field Production” means oil production on leases.

    (9) “Import” means to land on, bring into, or introduce into, or attempt to land on, bring into, or introduce into, oil in any place subject to the jurisdiction of the United States.

    (10) “Export” means an actual shipment or transmission of items out of the United States.

    (11) “Lessee” means any person holding record title or owning operating rights in a lease issued or approved by the United States.

    (12) “Oil and Gas Well” means any hole drilled into the earth for the purpose of exploring for or extracting oil, gas, or other hydrocarbon  substances.

  (13)“Oil Exploration” means activity relating to the search for evidence of oil and gas which requires the physical presence upon the lands and which may result in damage to the lands or the resources located thereon.

  (14)‘‘Frontline and Vulnerable Community’’ means a community in which climate change, pollution, or environmental destruction have               exacerbated systemic racial, regional, social, environmental, and economic injustices.

  (15) “President” means the President of the United States.

SEC. 4. CAP ON OIL FIELD PRODUCTION

(a) GENERAL RULE.— The secretary shall establish a baseline annual rate of field production equal to that of calendar year 2020, or 4,142,277,000 barrels, for all annual onshore and offshore field production.

(a) The President and the Secretary shall;

(1) Identify each covered lease operating pursuant to the Act in calendar year 2024.

(2)  Calculate the pro-rata share allocation for each covered lease enrolled in a common  pool or unit plan no later than February 1, 2024.

(A) The pro-rata share for calendar year 2024 shall be the production volume of oil from a covered lease in year 2020 divided by the total            production volume of oil or gas on all covered leases in year 2020.

          (B) Obtain from each lessee the field production volume of barrels of oil                from each lessee to determine the total volume of oil produced each                        calendar year no later than January 15 of each year.

          (C) A lessee or covered lease shall not exceed its pro-rata share of                            production as set forth by the President and the Secretary under (iB3) for              the current calendar year.

          (D) Where a covered lease exceeds its annual pro-rata share as established             under subsection B of paragraph 1 by more than 1% of its total share, the               President and the Secretary shall reduce the pro-rata share of such lease.               in the current year by an amount equivalent to the level of production in                 excess of its share.

SEC. 5. CAP ON OIL IMPORTS. 

            (a) GENERAL RULE.— The Secretary of the Treasury shall prohibit the importation               into the United States of oil at a rate exceeding that of calendar year 2020, or                             approximately 6.2 million barrels per day.

  (b) GENERAL RULE.— Persons who apply for allocations of crude oil, unfinished oils, or finished products and persons to whom such allocations have been made shall furnish to the Secretary of the Interior such information and shall make such reports as he may require, by regulation or otherwise, in the discharge of his responsibilities under this proclamation.

SEC. 6. CAP ON OIL EXPORTS

  (a) GENERAL RULE.— The Secretary of Commerce shall prohibit the export from the United States of oil at a rate exceeding that of calendar year 2020, or approximately 2.82 million barrels per day

SEC. 7. PROHIBITION OF OIL EXPLORATION

  (a) GENERAL RULE.— The Secretary of the Interior shall prohibit any permit for oil exploration, leasing, or expansion of oil infrastructure, including new pipelines, new export terminals,      new storage, or other new infrastructure to extract, transport, or burn oil.

SEC. 8. REVOKING OF OIL EXPLORATION PERMITS.

  (a) GENERAL RULE.— The Secretary of the Interior shall revoke extant federal and state oil exploration permits.

SEC. 9. PROHIBITION OF NEW OIL LEASES.

  (a) GENERAL RULE.— The Secretary of the Interior shall prohibit new oil leases on public lands or in offshore waters.

SEC. 10. REVOKING UNSAFE PERMITS.

  (a) GENERAL RULE.— All state or federal operating permits for any well operating within 2,500 feet of a home, school, or other inhabited structure shall be immediately revoked; and the well shall immediately cease all production operations.

SEC. 11. JUST TRANSITION COMMITTEE.

  (a) GENERAL RULE.— Not later than 60 days after the date of enactment of this Act, the Secretary of Labor shall establish a multistakeholder, multiagency committee, to be known as the ‘‘Just Transition Committee’’, which shall include the Environmental Protection Agency, the Department of Education, the Department of Energy, and the Department of Commerce.

(1) Not later than January 16 1, 2024, the Committee shall submit to Congress a report that details the recommendations of the Committee for ensuring the health and safety of individuals residing in, and the prosperity of oil-producing regions during the cap on field production of oil in those regions.

(2) In preparing the report under (1), the Committee shall consult with relevant stakeholders representatives of organized labor, frontline and vulnerable communities,  and State and local governmental representatives of the natural gas- and oil-producing regions referred to in subparagraph

SEC. 12. COMPENSATION FOR REVOKED LICENSE.

  (a) GENERAL RULE.— The President must establish a compensation program for the holders of a licenses revoked under subsections (c4) and (f4).

SEC. 13. SANCTIONS. 

          (a)Any transaction that causes a violation of or attempts to violate any of the prohibitions set forth in this order is prohibited.

(b) The Secretary of the Interior and Secretary of Commerce, in consultation with the President, are hereby authorized to take such actions, including the promulgation of rules and regulations, and to employ all powers granted to the President as may be necessary to carry out the purposes of subparagraphs (A4), (B4), (C4), and (F4).

SEC. 14. REPORTS TO CONGRESS. 

  (a) GENERAL RULE.— The President shall, not later than November 4th of each year, make a report to Congress on the program under this Act. Each such report shall indicate the progress that has been made during the preceding year toward achieving the objectives of this Act, and shall set forth in detail the President’s plans for carrying out the program during the ensuing year.