I 111th CONGRESS 2d Session H. R. 5607 IN THE HOUSE OF REPRESENTATIVES June 25, 2010 Mr. Markey of Massachusetts introduced the following bill; which was referred to the Committee on Science and Technology, and in addition to the Committee on Natural Resources, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To provide for the establishment of a program to support the development, demonstration, and commercialization of innovative technologies to prevent, stop, or capture large-scale accidental discharges of oil or other hydrocarbons from offshore oil and gas drilling operations, including deepwater and ultra-deepwater operations, and for other purposes.

1.

Short title

This Act may be cited as the Stop Oil Spills Act or the SOS Act.

2.

Offshore drilling safety technology development

(a)Subtitle J of title IX of the Energy Policy Act of 2005 (42 U.S.C. 16371–16378) is amended to read as follows: J

Offshore Drilling Safety Technology Development

999.

Innovative offshore drilling safety technology program

(a)

Definitions

For purposes of this section: (1)

Advisory committee

The term Advisory Committee means the SOS Fund Technical Advisory Committee established under subsection (f). (2)

Award

The term award means a grant, contract, or cooperative agreement. (3)

Blowout preventer

The term blowout preventer means a device installed on an offshore well that uses one or more valves, rams, or preventers to control or stop any otherwise uncontrolled flow of hydrocarbons or drilling fluids from the well. (4)

Deepwater

The term deepwater means a water depth that is greater than 200 but less than 1,500 meters. (5)

Fund

The term Fund means the Safety and Offshore Spills (SOS) Fund established under subsection (g). (6)

Remotely operated vehicle

The term remotely operated vehicle means a remotely controlled unmanned submersible vehicle, used to inspect, control, or perform operations on a blowout preventer or other subsea drilling equipment. (7)

Secondary control system

The term secondary control system means a system, such as a deadman, autoshear, or acoustic switch, designed to activate blowout preventer components to shut in an offshore well in the event of an emergency event such as a loss of communication with or power to the blowout preventer. (8)

Ultra-deepwater

The term ultra-deepwater means a water depth that is equal to or greater than 1,500 meters. (b)

Program establishment

Not later than 180 days after the date of enactment of this section, the Secretary, in consultation with the Secretary of Interior, shall establish a program, in accordance with the requirements of this section, to provide awards to support the development, demonstration, and commercialization of innovative technologies to prevent, stop, or capture large-scale accidental discharges of oil or other hydrocarbons from offshore oil and gas drilling operations, including deepwater and ultra-deepwater operations. (c)

Focus areas for awards

Awards provided under this section shall focus on new technologies or innovative improvements to existing technologies, including— (1)blowout preventers; (2)secondary control systems; (3)remotely operated vehicles; and (4)prefabricated systems or technologies to stop or capture a large-scale hydrocarbon discharge from an offshore well, at or near the source of such discharge, in the event of the failure of a blowout preventer. (d)

Project selection

The Secretary shall issue solicitations for applications for awards under this section and shall select projects for awards, on a competitive basis, based on— (1)potential for commercialization of the relevant technology; (2)potential to enhance industry’s capacity to prevent, stop, or contain a large-scale accidental discharge of oil or other hydrocarbons from offshore drilling operations; and (3)such other factors as the Secretary may prescribe. (e)

Annual plan

(1)

In general

The program under this section shall be carried out pursuant to annual plans prepared by the Secretary in accordance with the requirements of this subsection, which shall describe the ongoing and prospective activities of the program under this section. (2)

Outside bodies

In formulating each annual plan under this subsection, the Secretary shall— (A)solicit and take into consideration recommendations from the Advisory Committee; and (B)take into consideration the needs identified and recommendations set forth by any independent commission established by the President to investigate the Deepwater Horizon oil spill and by the Interagency Coordinating Committee on Oil Pollution Research established pursuant to section 7001 of the Oil Pollution Act of 1990 (33 U.S.C. 2761). (3)

Publication

Not later than November 30 of 2010 and each calendar year thereafter through 2016, the Secretary shall transmit to Congress and publish on the Internet the annual plan for the succeeding year, together with the recommendations provided by the Advisory Committee with regard to such plan. (f)

Technical advisory committee

(1)

Establishment

Not later than 60 days after the date of enactment of this section, the Secretary shall establish an independent advisory committee to be known as the SOS Fund Technical Advisory Committee. (2)

Membership

The Advisory Committee shall consist of at least 9 members. Each member shall have extensive research or operational knowledge of safety technologies associated with offshore oil and gas exploration and production. The Secretary shall appoint Advisory Committee members, including a chair and vice-chair of the Advisory Committee. Terms shall be 3 years in length, except for initial terms, which may be up to 5 years in length to allow staggering. Members may be reappointed only once for an additional 3-year term. (3)

Duties

The Advisory Committee shall advise the Secretary on the development and implementation of programs under this section, including by reviewing and providing recommendations with regard to each annual plan under subsection (e). (4)

Compensation

A member of the Advisory Committee shall serve without compensation but shall receive travel expenses in accordance with applicable provisions under subchapter I of chapter 57 of title 5, United States Code. (g)

Funding

(1)

Fund

There is hereby established in the Treasury of the United States a separate fund to be known as the Safety and Offshore Spill (SOS) Fund. (2)

Oil and gas lease income

For each of fiscal years 2011 through 2017, from any Federal royalties, rents, and bonuses derived from Federal onshore and offshore oil and gas leases issued under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) which are deposited in the Treasury, and after distribution of any such funds as described in paragraph (3), $50,000,000 shall be deposited into the Fund. (3)

Prior distributions

The distributions described in paragraph (2) are those required by law— (A)to States and to the Reclamation Fund under the Mineral Leasing Act (30 U.S.C. 191(a)); and (B)to other funds receiving monies from Federal oil and gas leasing programs, including— (i)any recipients pursuant to section 8(g) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(g)); (ii)the Land and Water Conservation Fund, pursuant to section 2(c) of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 4601–5(c)); (iii)the Historic Preservation Fund, pursuant to section 108 of the National Historic Preservation Act (16 U.S.C. 470h); and (iv)the coastal impact assistance program established under section 31 of the Outer Continental Shelf Lands Act (43 U.S.C. 1356a). (4)

Obligation authority

Monies in the Fund shall be available to the Secretary for obligation, or to cover the Secretary’s costs of administering the program in accordance with the limitation in paragraph (5), under this section without fiscal year limitation, to remain available until expended. (5)

Administrative costs

For each of fiscal years 2011 through 2017, the Secretary may use not more than 5 percent of the monies deposited in the Fund to cover the Secretary’s costs of administering the program under this section.

. (b)

Conforming amendment

The items relating to subtitle J of title IX in the table of contents of the Energy Policy Act of 2005 are amended to read as follows: Subtitle J—Offshore Drilling Safety Technology Development Sec. 999. Innovative offshore drilling safety technology program. .