1.Short
title; table of contents
(a)This Act may be cited
as the Outer Continental Shelf Reform
Act of 2010
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of
contents.
Sec. 2. Purposes.
Sec. 3. Definitions.
Sec. 4. National policy for the outer
Continental Shelf.
Sec. 5. Structural reform of outer
Continental Shelf program management.
Sec. 6. Safety, environmental, and
financial reform of the Outer Continental Shelf Lands Act.
Sec. 7. Reform of other
laws.
Sec. 8. Savings provisions.
Sec. 9. Budgetary effects.
Sec. 1. Short title; table of
contents.
Sec. 2. Purposes.
Sec. 3.
Definitions.
Sec. 4. National policy for the
outer Continental Shelf.
Sec. 5. Structural reform of
outer Continental Shelf program management.
Sec. 6. Safety, environmental,
and financial reform of the Outer Continental Shelf Lands Act.
Sec. 7. Study on the effect of
the moratoria on new deepwater drilling in the Gulf of Mexico on employment and
small businesses.
Sec. 8. Reform of other
law.
Sec. 9. Safer oil and gas
production.
Sec. 10. National Commission on
Outer Continental Shelf Oil Spill Prevention.
Sec. 11. Classification of
offshore systems.
Sec. 12. Savings
provisions.
Sec. 13. Budgetary
effects.
2.The purposes of this Act are—
(1)to rationalize
and reform the responsibilities of the Secretary of the Interior with respect
to the management of the outer Continental Shelf in order to improve the
management, oversight, accountability, safety, and environmental protection of
all the resources on the outer Continental Shelf;
(2)to provide
independent development and enforcement of safety and environmental laws
(including regulations) governing—
(A)energy
development and mineral extraction activities on the outer Continental Shelf;
and
(B)related offshore
activities; and
(3)to ensure a fair
return to the taxpayer from, and independent management of, royalty and revenue
collection and disbursement activities from mineral and energy
resources.
3.In this Act:
(1)The
term Department means the Department of the Interior.
(2)The term outer Continental Shelf
has the meaning given the term in section 2 of the Outer Continental Shelf
Lands Act (43 U.S.C. 1331).
(3)The
term Secretary means the Secretary of the Interior.
4.National policy
for the outer Continental ShelfSection 3 of the Outer Continental Shelf
Lands Act (43 U.S.C. 1332) is amended—
(1)by striking
paragraph (3) and inserting the following:
(3)the outer
Continental Shelf is a vital national resource reserve held by the Federal
Government for the public, which should be managed in a manner that
recognizes—
(A)the need of the
United States for domestic sources of energy, food, minerals, and other
resources;
(B)the potential
impacts of development of those resources on the marine and coastal environment
and on human health and safety; and
(C)the long-term
economic value to the United States of the balanced and orderly management of
those resources that safeguards the environment and respects the multiple
values and uses of the outer Continental
Shelf;
;
(1)by striking paragraph (3)
and inserting the following:
(3)the outer Continental
Shelf is a vital national resource reserve held by the Federal Government for
the public, which should be managed in a manner that—
(A)recognizes the need of
the United States for domestic sources of energy, food, minerals, and other
resources;
(B)minimizes the potential
impacts of development of those resources on the marine and coastal environment
and on human health and safety; and
(C)acknowledges the
long-term economic value to the United States of the balanced and orderly
management of those resources that safeguards the environment and respects the
multiple values and uses of the outer Continental
Shelf;
;
(2)in paragraph
(4)(C), by striking the period at the end and inserting a semicolon;
(3)in paragraph (5),
by striking ; and
and inserting a semicolon;
(4)by redesignating
paragraph (6) as paragraph (7);
(5)by inserting
after paragraph (5) the following:
(6)exploration,
development, and production of energy and minerals on the outer Continental
Shelf should be allowed only when those activities can be accomplished in a
manner that provides reasonable assurance of adequate protection against harm
to life, health, the environment, property, or other users of the waters,
seabed, or subsoil; and
;
and
(6)in paragraph (7)
(as so redesignated)—
(A)by striking
should be
and inserting shall be
; and
(B)by adding
best available
after using
.
5.Structural
reform of outer Continental Shelf program management
(a)The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et
seq.) is amended by adding to the end the following:
32.Structural
reform of outer Continental Shelf program management
(a)Leasing,
permitting, and regulation bureaus
(1)
(A)Subject to the discretion granted by Reorganization Plan
Number 3 of 1950 (64 Stat. 1262; 43 U.S.C. 1451 note), the Secretary shall
establish in the Department of the Interior not more than 2 bureaus to carry
out the leasing, permitting, and safety and environmental regulatory functions
vested in the Secretary by this Act and the Federal Oil and Gas Royalty
Management Act of 1982 (30 U.S.C. 1701 et seq.) related to the outer
Continental Shelf.
(B)In establishing the bureaus under subparagraph (A), the
Secretary shall ensure, to the maximum extent practicable, that any potential
organizational conflicts of interest related to leasing, revenue creation,
environmental protection, and safety are eliminated.
(2)Each
bureau shall be headed by a Director, who shall be appointed by the President,
by and with the advice and consent of the Senate.
(3)Each
Director shall be compensated at the rate provided for level V of the Executive
Schedule under section 5316 of title 5, United States Code.
(4)Each
Director shall be a person who, by reason of professional background and
demonstrated ability and experience, is specially qualified to carry out the
duties of the office.
(b)Royalty and
revenue office
(1)Subject to the discretion granted by Reorganization
Plan Number 3 of 1950 (64 Stat. 1262; 43 U.S.C. 1451 note), the Secretary shall
establish in the Department of the Interior an office to carry out the royalty
and revenue management functions vested in the Secretary by this Act and the
Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1701 et
seq.).
(2)The
office established under paragraph (1) shall be headed by a Director, who shall
be appointed by the President, by and with the advice and consent of the
Senate.
(3)The
Director shall be compensated at the rate provided for level V of the Executive
Schedule under section 5316 of title 5, United States Code.
(4)The
Director shall be a person who, by reason of professional background and
demonstrated ability and experience, is specially qualified to carry out the
duties of the office.
(c)OCS Safety and
Environmental Advisory Board
(1)The
Secretary shall establish, under the Federal
Advisory Committee Act (5 U.S.C. App.), an Outer Continental Shelf
Safety and Environmental Advisory Board (referred to in this subsection as the
Board), to provide the Secretary and the Directors of the bureaus
established under this section with independent
peer-reviewed
scientific and technical advice on safe and environmentally compliant energy
and mineral resource exploration, development, and production
activities.
(2)
(A)
(i)The Board shall consist of not more than 12 members,
chosen to reflect a range of expertise in scientific, engineering, management,
and other disciplines related to safe and environmentally compliant energy and
mineral resource exploration, development, and production activities.
(ii)The
Secretary shall consult with the National Academy of Sciences and the National
Academy of Engineering to identify potential candidates for membership on the
Board.
(B)The
Secretary shall appoint Board members to staggered terms of not more than 4
years, and shall not appoint a member for more than 2 consecutive terms.
(C)The
Secretary shall appoint the Chair for the Board.
(3)The
Board shall—
(A)meet not less
than 3 times per year; and
(B)at least once per
year, shall host a public forum to review and assess the overall safety and
environmental performance of outer Continental Shelf energy and mineral
resource activities.
(4)Reports
of the Board shall—
(A)be submitted to
Congress; and
(B)made available to
the public in an electronically accessible form.
(5)Members of the Board, other than full-time employees of
the Federal Government, while attending a meeting of the Board or while
otherwise serving at the request of the Secretary or the Director while serving
away from their homes or regular places of business, may be allowed travel
expenses, including per diem in lieu of subsistence, as authorized by section
5703 of title 5, United States Code, for individuals in the Federal Government
serving without pay.
(d)Special
personnel authorities
(1)Direct hiring
authority for critical personnel
(A)Notwithstanding sections 3104, 3304, and 3309 through
3318 of title 5, United States Code, the Secretary may, upon a determination
that there is a severe shortage of candidates or a critical hiring need for
particular positions, recruit and directly appoint highly qualified
accountants, scientists, engineers, or critical technical personnel into the
competitive service, as officers or employees of any of the organizational
units established under this section.
(B)In
exercising the authority granted under subparagraph (A), the Secretary shall
ensure that any action taken by the Secretary—
(i)is consistent
with the merit principles of chapter 23 of title 5, United States Code;
and
(ii)complies with
the public notice requirements of section 3327 of title 5, United States
Code.
(2)
(A)Notwithstanding section 5377 of title 5, United States
Code, and without regard to the provisions of that title governing appointments
in the competitive service or the Senior Executive Service and chapters 51 and
53 of that title (relating to classification and pay rates), the Secretary may
establish, fix the compensation of, and appoint individuals to critical
positions needed to carry out the functions of any of the organizational units
established under this section, if the Secretary certifies that—
(i)the
positions—
(I)require expertise
of an extremely high level in a scientific or technical field; and
(II)any of the
organizational units established in this section would not successfully
accomplish an important mission without such an individual; and
(ii)exercise of the
authority is necessary to recruit an individual exceptionally well qualified
for the position.
(B)The
authority granted under subparagraph (A) shall be subject to the following
conditions:
(i)The number of
critical positions authorized by subparagraph (A) may not exceed 40 at any 1
time in either of the bureaus established under this section.
(ii)The term of an
appointment under subparagraph (A) may not exceed 4 years.
(iii)An individual
appointed under subparagraph (A) may not have been an employee of the
Department of the Interior during the 2-year period prior to the date of
appointment.
(iv)Total annual
compensation for any individual appointed under subparagraph (A) may not exceed
the highest total annual compensation payable at the rate determined under
section 104 of title 3, United States Code.
(v)An individual
appointed under subparagraph (A) may not be considered to be an employee for
purposes of subchapter II of chapter 75 of title 5, United States Code.
(C)Each
year, the Secretary shall submit to Congress a notification that lists each
individual appointed under this paragraph.
(3)Reemployment of
civilian retirees
(A)Notwithstanding part 553 of title 5, Code of Federal
Regulations (relating to reemployment of civilian retirees to meet exceptional
employment needs), or successor regulations, the Secretary may approve the
reemployment of an individual to a particular position without reduction or
termination of annuity if the hiring of the individual is necessary to carry
out a critical function of any of the organizational units established under
this section for which suitably qualified candidates do not exist.
(B)An
annuitant hired with full salary and annuities under the authority granted by
subparagraph (A)—
(i)shall not be
considered an employee for purposes of subchapter III of chapter 83 and chapter
84 of title 5, United States Code;
(ii)may not elect to
have retirement contributions withheld from the pay of the annuitant;
(iii)may not use any
employment under this paragraph as a basis for a supplemental or recomputed
annuity; and
(iv)may not
participate in the Thrift Savings Plan under subchapter III of chapter 84 of
title 5, United States Code.
(C)The term of employment of any individual hired under
subparagraph (A) may not exceed an initial term of 2 years, with an additional
2-year appointment under exceptional circumstances.
(e)Subject to the discretion granted by Reorganization
Plan Number 3 of 1950 (64 Stat. 1262; 43 U.S.C. 1451 note), any reference in
any law, rule, regulation, directive, or instruction, or certificate or other
official document, in force immediately prior to the date of enactment of this
section—
(1)to the Minerals
Management Service that pertains to any of the duties and authorities described
in this section shall be deemed to refer and apply to the appropriate bureaus
and offices established under this section;
(2)to the Director
of the Minerals Management Service that pertains to any of the duties and
authorities described in this section shall be deemed to refer and apply to the
Director of the bureau or office under this section to whom the Secretary has
assigned the respective duty or authority; and
(3)to any other
position in the Minerals Management Service that pertains to any of the duties
and authorities described in this section shall be deemed to refer and apply to
that same or equivalent position in the appropriate bureau or office
established under this
section.
.
(b)Section 5316 of title 5, United States Code, is amended
by striking Director, Bureau of Mines, Department of the
Interior
and inserting the following:
Bureau Directors, Department of the Interior
(2).
Director, Royalty and Revenue Office, Department of
the
Interior.
.
6.Safety,
environmental, and financial reform of the Outer Continental Shelf Lands
Act
(a)Section
2 of the Outer Continental Shelf Lands Act (43 U.S.C. 1331) is amended by
adding at the end the following:
(r)The term safety case means a
body of
evidence
complete set of safety documentation that provides a basis for
determining whether a system is adequately safe for a given application in a
given
environment.
.
(b)Administration
of leasingSection 5(a) of the Outer Continental Shelf Lands Act
(43 U.S.C. 1334(a)) is amended in the second sentence—
(1)by striking
The Secretary may at any time
and inserting The Secretary
shall
; and
(2)by inserting
after provide for
the following: operational safety, the
protection of the marine and coastal environment,
.
(c)Section 6 of the Outer Continental Shelf Lands Act (43
U.S.C. 1335) is amended by adding at the end the following:
(f)Review of bond
and surety amountsNot later than May 1, 2011, and every 5 years
thereafter, the Secretary shall—
(1)review the
minimum bond
amounts
financial responsibility requirements for mineral leases under
subsection (a)(11); and
(2)set any bonds, surety, or other evidence
of financial responsibility required in amounts
adequate adjust
for inflation based on the Consumer Price Index for all Urban Consumers
published by the Bureau of Labor Statistics of the Department of Labor, and
recommend to Congress any further changes to existing financial responsibility
requirements necessary to permit lessees to fulfill all
obligations under this Act or the Oil Pollution Act of 1990 (33 U.S.C. 2701 et
seq.).
(g)Periodic fiscal
reviews and reports
(1)
(A)Not later than 1 year after the date of enactment of this
subsection and every 3 4 years thereafter, the
Secretary shall carry out a review of, and prepare a report that
describes—
(i)the royalty and
rental rates included in new offshore oil and gas leases and the rationale for
the rates;
(ii)whether, in the
view of the Secretary, the royalty and rental rates described in subparagraph
(A) would yield a fair return to the public while promoting the production of
oil and gas resources in a timely manner; and
(iii)whether, based
on the review, the Secretary intends to modify the royalty or rental
rates.
(B)In carrying out a review and preparing a report
under subparagraph (A), the Secretary shall provide to the public an
opportunity to participate.
(2)Comparative
review of fiscal system
(A)Not later than
2
years 1
year after the date of enactment of this subsection and every
5 4 years thereafter, the
Secretary in consultation with the Secretary of the Treasury, shall carry out a
comprehensive review of all components of the Federal offshore oil and gas
fiscal system, including requirements for bonus bids, rental rates, royalties,
oil and gas taxes, income taxes
and other
significant financial elements, and oil and gas fees.
(B)The
review shall include—
(i)information and
analyses comparing the offshore bonus bids, rents, royalties, taxes, and fees
of the Federal Government to the offshore bonus bids, rents, royalties, taxes,
and fees of other resource owners (including States and foreign countries);
and
(ii)an assessment of
the overall offshore oil and gas fiscal system in the United States, as
compared to foreign countries.
(C)Independent
advisory committeeIn carrying out a review under this paragraph,
the Secretary shall convene and seek the advice of an independent advisory
committee comprised of oil and gas and fiscal experts from States, Indian
tribes, academia, the energy industry, and appropriate nongovernmental
organizations.
(D)The
Secretary shall prepare a report that contains—
(i)the contents and
results of the review carried out under this paragraph for the period covered
by the report; and
(ii)any
recommendations of the Secretary and the Secretary of the Treasury based on the
contents and results of the review.
(E)The Secretary may combine the reports required by
paragraphs (1) and (2)(D) into 1 report.
(3)Not later than 30 days after the date on which the
Secretary completes each report under this subsection, the Secretary shall
submit copies of the report to—
(A)the Committee on
Energy and Natural Resources of the Senate;
(B)the Committee on
Finance of the Senate;
(C)the Committee on
Natural Resources of the House of Representatives; and
(D)the Committee on
Ways and Means of the House of
Representatives.
.
(d)Leases,
easements, and rights-of-WaySection 8 of the Outer Continental
Shelf Lands Act (43 U.S.C. 1337) is amended by striking subsection (d) and
inserting the following:
(d)Disqualification
from biddingNo bid for a lease may be submitted by any entity
that the Secretary finds, after prior public notice and
opportunity for a hearing—
(1)is not meeting
due diligence, safety, or environmental requirements on other leases; or
(2)(A)is a responsible party
for a vessel or a facility from which oil is discharged, for purposes of
section 1002 of the Oil Pollution Act of 1990 (33 U.S.C. 2702); and
(B)has failed to meet the obligations of
the responsible party under that Act to provide compensation for covered
removal costs and
damages.
.
(e)Section 11 of the Outer Continental Shelf Lands Act (43
U.S.C. 1340) is amended—
(1)in subsection
(c)—
(A)in the fourth
sentence of paragraph (1), by striking within thirty days of its
submission
and inserting by the deadline described in paragraph
(5)
;
(B)by striking
paragraph (3) and inserting the following:
(3)
(A)An exploration plan submitted under this subsection shall
include, in such degree of detail as the Secretary by regulation may
require—
(i)a
complete description and schedule of the exploration activities to be
undertaken;
(ii)a description of
the equipment to be used for the exploration activities, including—
(I)a description of
the drilling unit;
(II)a statement of
the design and condition of major safety-related pieces of equipment;
(III)a description
of any new technology to be used; and
(IV)a statement
demonstrating that the equipment to be used meets the best available technology
requirements under section 21(b);
(iii)a map showing
the location of each well to be drilled;
(iv)(I)a scenario for the
potential blowout of the well involving the highest
potential expected volume of liquid
hydrocarbons; and
(II)a complete description of a response
plan to control the blowout and manage the accompanying discharge of
hydrocarbons, including—
- (aa)the technology and timeline for
regaining control of the well; and
- (bb)the strategy, organization, and
resources necessary to be used to avoid harm to the
environment and human health from hydrocarbons; and
(v)any other
information determined to be relevant by the Secretary.
(B)
(i)Before conducting exploration activities in water depths
greater than 500 feet, the holder of a lease shall submit to the Secretary for
approval a deepwater operations plan prepared by the lessee in accordance with
this subparagraph.
(ii)A deepwater operations plan under this subparagraph
shall be based on the best available technology to ensure safety in carrying
out the exploration activity and the blowout response plan.
(iii)Systems
analysis requiredThe Secretary shall not approve a deepwater
operations plan under this subparagraph unless the plan includes a technical
systems analysis of—
(I)the safety of the
proposed exploration activity;
(II)the blowout
prevention technology; and
(III)the blowout and
spill response plans.
;
and
(C)by adding at the
end the following:
(5)
(A)In the case of a lease issued under a sale held after
March 17, 2010, the deadline for approval of an exploration plan referred to in
the fourth sentence of paragraph (1) is—
(i)the date that is
90 days after the date on which the plan or the modifications to the plan are
submitted; or
(ii)the date that is
not later than an additional 180 days after the deadline described in clause
(i), if the Secretary makes a finding that additional time is necessary to
complete any environmental, safety, or other reviews.
(B)In the case of a lease issued under a sale held on or
before March 17, 2010, the Secretary, with the consent of the holder of the
lease, may extend the deadline applicable to the lease for such additional time
as the Secretary determines is necessary to complete any environmental, safety,
or other reviews.
;
(2)by resdesignating
subsections (e) through (h) as subsections (f) through (i), respectively;
and
(3)by striking
subsection (d) and inserting the following:
(d)
(1)The Secretary shall, by regulation, require that any
lessee operating under an approved exploration plan obtain a permit—
(A)before the lessee
drills a well in accordance with the plan; and
(B)before the lessee
significantly modifies the well design originally approved by the
Secretary.
(2)Engineering
review requiredThe Secretary may not grant any drilling permit
until the date of completion of a full
engineering review of
the well system,
including a
system by not less than 2 agency engineers, including a written
determination that—
(A)critical safety
systems (including blowout prevention) will use best available technology;
and
(B)blowout
prevention systems will include redundancy and remote triggering
capability.
(3)Modification
review requiredThe Secretary may not approve any modification of
a permit without a determination, after an additional engineering review, that
the modification will not
degrade compromise the safety of the
well system previously approved.
(4)Operator safety
and environmental management requiredThe Secretary may not grant
any drilling permit or modification of the permit until the date of completion
and approval of a safety and environmental management plan that—
(A)is to be used by
the operator during all well operations; and
(B)includes—
(i)a
description of the expertise and experience level of crew members who will be
present on the rig; and
(ii)designation of
at least 2 environmental and safety managers that—
(I)are employees of
the operator;
(II)would be present
on the rig at all times; and
(III)have overall
responsibility for the safety and environmental management of the well system
and spill response plan; and
(C)not later than
May 1, 2012, requires that all employees on the rig meet the training and
experience requirements under section 21(b)(4).
(e)Disapproval of
exploration plan
(1)The Secretary shall disapprove an exploration plan
submitted under this section if the Secretary determines that, because of
exceptional geological conditions in the lease areas, exceptional resource
values in the marine or coastal environment, or other exceptional
circumstances, that—
(A)implementation of
the exploration plan would probably cause serious harm or damage to life
(including fish and other aquatic life), property, mineral deposits, national
security or defense, or the marine, coastal or human environments;
(B)the threat of
harm or damage would not disappear or decrease to an acceptable extent within a
reasonable period of time; and
(C)the advantages of
disapproving the exploration plan outweigh the advantages of
exploration.
(2)If
an exploration plan is disapproved under this subsection, the provisions of
subparagraphs (B) and (C) of section 25(h)(2) shall apply to the lease and the
plan or any modified plan, except that the reference in section 25(h)(2)(C) to
a development and production plan shall be considered to be a reference to an
exploration plan.
.
(f)Outer
Continental Shelf leasing programSection 18 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1344) is amended—
(1)in subsection
(a)—
(A)in the second
sentence, by inserting after national energy needs
the
following: and the need for the protection of the marine and coastal
environment and resources
;
(B)in paragraph (1),
by striking considers
and inserting gives equal
consideration to
; and
(C)in paragraph (3),
by striking , to the maximum extent practicable,
;
(2)in subsection
(b)—
(A)in paragraph (3),
by striking and
at the end;
(B)in paragraph (4),
by striking the period at the end and inserting ; and
;
and
(C)by adding at the
end the following:
(5)provide technical
review and oversight of the exploration plan and a systems review of the safety
of the well design and other operational decisions;
(6)conduct regular
and thorough safety reviews and inspections, and;
(7)enforce all
applicable laws (including
regulations).
;
(3)in the second
sentence of subsection (d)(2), by inserting , the head of an interested
Federal agency,
after Attorney General
;
(4)in the first
sentence of subsection (g), by inserting before the period at the end the
following: , including existing inventories and mapping of marine
resources previously undertaken by the Department of the Interior and the
National Oceanic and Atmospheric Administration, information provided by the
Department of Defense, and other available data regarding energy or mineral
resource potential, navigation uses, fisheries, aquaculture uses, recreational
uses, habitat, conservation, and military uses on the outer Continental
Shelf
; and
(5)by adding at the
end the following:
(i)
(1)The Secretary shall carry out a program of research and
development to ensure the continued improvement of methodologies for
characterizing resources of the outer Continental Shelf and conditions that may
affect the ability to develop and use those resources in a safe, sound, and
environmentally responsible manner.
(2)Research
and development activities carried out under paragraph (1) may include
activities to provide accurate estimates of energy and mineral reserves and
potential on the outer Continental Shelf and any activities that may assist in
filling gaps in environmental data needed to develop each leasing program under
this section.
(3)Research and development activities carried out under
paragraph (1) shall not be considered to be leasing or pre-leasing activities
for purposes of this
Act.
.
(g)Section 20 of the Outer Continental Shelf Lands Act (43
U.S.C. 1346) is amended—
(1)by redesignating
subsections (a) through (f) as subsections (b) through (g),
respectively;
(2)by inserting
before subsection (b) (as so redesignated) the following:
(a)Comprehensive
and independent studies
(1)The Secretary shall develop and carry out programs for
the collection, evaluation, assembly, analysis, and dissemination of
environmental and other resource data that are relevant to carrying out the
purposes of this Act.
(2)The programs under this subsection shall include—
(A)the gathering of
baseline data in areas before energy or mineral resource development activities
occur;
(B)ecosystem
research and monitoring studies to support integrated resource management
decisions; and
(C)the improvement
of scientific understanding of the fate, transport, and effects of discharges
and spilled materials, including deep water hydrocarbon spills, in the marine
environment.
(3)The Secretary shall ensure that information from the studies
carried out under this section—
(A)informs the
management of energy and mineral resources on the outer Continental Shelf
including any areas under consideration for oil and gas leasing; and
(B)contributes to a
broader coordination of energy and mineral resource development activities
within the context of best available science.
(4)The
Secretary shall create a program within the appropriate bureau established
under section 32 that shall—
(A)be
programmatically separate and distinct from the leasing program;
(B)carry out the
environmental studies under this section;
(C)conduct
additional environmental studies relevant to the sound management of energy and
mineral resources on the outer Continental Shelf;
(D)provide for
external scientific review of studies under this section, including through
appropriate arrangements with the National Academy of Sciences; and
(E)subject to the
restrictions of subsections (g) and (h) of section 18, make available to the
public studies conducted and data gathered under this
section.
;
and
(3)in the first
sentence of subsection (b)(1) (as so redesignated), by inserting every 3
years
after shall conduct
.
(h)Safety research
and regulationsSection 21 of the Outer Continental Shelf Lands
Act (43 U.S.C. 1347) is amended—
(1)in the first
sentence of subsection (a), by striking Upon the date of enactment of
this section,
and inserting Not later than May 1, 2011, and
every 3 years thereafter,
;
(2)by striking
subsection (b) and inserting the following:
(b)Best available
technologies and practices
(1)In exercising respective responsibilities under this Act,
the Secretary, and the Secretary of the Department in which the Coast Guard is
operating, shall require, on all new drilling and production operations and, to
the maximum extent practicable, on existing operations, the use of the best
available and safest technologies and practices, if the failure of equipment
would have a significant effect on safety, health, or the environment.
(2)Identification
of best available technologiesNot later than May 1, 2011, and
not later than every 3 years thereafter, the Secretary shall identify and
publish an updated list of best available technologies for key areas of well
design and operation, including blowout prevention and blowout and oil spill
response.
(3)Not later than May 1, 2011, the Secretary shall promulgate
regulations requiring a safety case be submitted along with each new
application for a permit to drill on the outer Continental Shelf.
(4)
(A)Not later than May 1, 2011, the Secretary shall
promulgate regulations setting standards for training for all workers on
offshore facilities (including mobile offshore drilling units) conducting
energy and mineral resource exploration, development, and production operations
on the outer Continental Shelf.
(B)The
training standards under this paragraph shall require that employers of workers
described in subparagraph (A)—
(i)establish
training programs approved by the Secretary; and
(ii)demonstrate that
employees involved in the offshore operations meet standards that demonstrate
the aptitude of the employees in critical technical skills.
(C)The
training standards under this section shall require that any offshore worker
with less than 5 years of applied experience in offshore facilities operations
pass a certification requirement after receiving the appropriate
training.
(D)Monitoring
training coursesThe Secretary shall ensure that Department
employees responsible for inspecting offshore facilities monitor, observe, and
report on training courses established under this paragraph, including
attending a representative number of the training sessions, as determined by
the Secretary.
;
and
(3)by adding at the
end the following:
(g)Technology
research and risk assessment program
(1)The Secretary shall carry out a program of research,
development, and risk assessment to address technology and development issues
associated with outer Continental Shelf energy and mineral resource activities,
with the primary purpose of informing the role of research, development, and
risk assessment relating to safety, environmental protection, and spill
response.
(2)The program under this subsection shall include
research, development, and other activities related to—
(A)risk assessment,
using all available data from safety and compliance records both within the
United States and internationally;
(B)analysis of
industry trends in technology, investment, and interest in frontier
areas;
(C)analysis of
incidents investigated under section 22;
(D)reviews of best
available technologies, including technologies associated with pipelines,
blowout preventer mechanisms, casing, well design, and other associated
infrastructure related to offshore energy development;
(E)oil spill
response and mitigation;
(F)risks associated
with human factors; and
(G)renewable energy
operations.
(3)Information
sharing activities
(A)The Secretary shall carry out programs to facilitate
the exchange and dissemination of scientific and technical information and best
practices related to the management of safety and environmental issues
associated with energy and mineral resource exploration, development, and
production.
(B)International
cooperationThe Secretary shall carry out programs to cooperate
with international organizations and foreign governments to share information
and best practices related to the management of safety and environmental issues
associated with energy and mineral resource exploration, development, and
production.
(4)The
program under this subsection shall provide to the Secretary, each Bureau
Director under section 32, and the public quarterly reports that
address—
(A)developments in
each of the areas under paragraph (2); and
(B)(i)any accidents that have
occurred in the past quarter; and
(ii)appropriate responses to the
accidents.
(5)The
Secretary shall create a program within the appropriate bureau established
under section 32 that shall—
(A)be
programmatically separate and distinct from the leasing program;
(B)carry out the
studies, analyses, and other activities under this subsection;
(C)provide for
external scientific review of studies under this section, including through
appropriate arrangements with the National Academy of Sciences; and
(D)make available to
the public studies conducted and data gathered under this section.
(6)The Secretary shall ensure that the information from the
studies and research carried out under this section inform the development of
safety practices and regulations as required by this Act and other applicable
laws.
.
(i)Section
22 of the Outer Continental Shelf Lands Act (43 U.S.C. 1348) is amended—
(1)in subsection
(d)—
(A)in paragraph
(1)—
(i)in
the first sentence, by inserting , each loss of well control, blowout,
activation of the blowout preventer, and other accident that presented a
serious risk to human or environmental safety,
after
fire
; and
(ii)in
the last sentence, by inserting as a condition of the lease
before the period at the end;
(B)in the last
sentence of paragraph (2), by inserting “as a condition of lease” before the
period at the end;
(2)in subsection
(e)—
(A)by striking
(e) The
and inserting the following:
(e)Review of
alleged safety violations
(1)The
;
and
(B)by adding at the
end the following:
(2)The
Secretary shall investigate any allegation from any employee of the lessee or
any subcontractor of the lessee made under paragraph
(1).
;
and
(3)by adding at the
end of the section the following:
(g)Independent
investigation
(1)At the request of the Secretary, the National
Transportation Safety Board may conduct an independent investigation of any
accident, occurring in the outer Continental Shelf and involving activities
under this Act, that does not otherwise fall within the definition of an
accident or major marine casualty, as those terms are used in chapter 11 of
title 49, United States Code.
(2)For purposes of an investigation under this subsection,
the accident that is the subject of the request by the Secretary shall be
determined to be a transportation accident within the meaning of that term in
chapter 11 of title 49, United States Code.
(h)Information on
causes and corrective actions
(1)For each incident investigated under this section, the
Secretary shall promptly make available to all lessees and the public technical
information about the causes and corrective actions taken.
(2)All data and reports related to an incident described in
paragraph (1) shall be maintained in a database that is available to the
public.
(i)
(1)TheTo the extent necessary to fund the inspections
described in this paragraph, the Secretary shall collect a
non-refundable inspection fee, which shall be deposited in the Ocean Energy
Enforcement Fund established under paragraph (3), from the designated operator
for facilities subject to inspection under subsection (c).
(2)The
Secretary shall establish, by rule, inspection fees—
(A)at an aggregate
level equal to the amount necessary to offset the annual expenses of
inspections of outer Continental Shelf facilities (including mobile offshore
drilling units) by the Department of the Interior; and
(B)using a schedule
that reflects the differences in complexity among the classes of facilities to
be inspected.
(3)Ocean energy
enforcement fundThere is established in the Treasury a fund, to
be known as the Ocean Energy Enforcement Fund (referred to in this
subsection as the Fund), into which shall be deposited amounts
collected under paragraph (1) and which shall be available as provided under
paragraph (4).
(4)Notwithstanding section 3302 of title 31, United States
Code, all amounts collected by the Secretary under this section—
(A)shall be credited
as offsetting collections;
(B)shall be
available for expenditure only for purposes of carrying out inspections of
outer Continental Shelf facilities (including mobile offshore drilling units)
and the administration of the inspection program;
(C)shall be
available only to the extent provided for in advance in an appropriations Act;
and
(D)shall remain
available until expended.
(5)
(A)Not later than 60 days after the end of each fiscal year
beginning with fiscal year 2011, the Secretary shall submit to the Committee on
Energy and Natural Resources of the Senate and the Committee on Natural
Resources of the House of Representatives a report on the operation of the Fund
during the fiscal year.
(B)Each
report shall include, for the fiscal year covered by the report, the
following:
(i)A
statement of the amounts deposited into the Fund.
(ii)A description of
the expenditures made from the Fund for the fiscal year, including the purpose
of the expenditures.
(iii)Recommendations
for additional authorities to fulfill the purpose of the Fund.
(iv)A statement of
the balance remaining in the Fund at the end of the fiscal
year.
.
(j)Section 24 of the Outer Continental Shelf Lands Act (43
U.S.C. 1350) is amended—
(1)by striking
subsection (b) and inserting the following:
(b)
(1)Subject to paragraphs (2) through (3), if any person
fails to comply with this Act, any term of a lease or permit issued under this
Act, or any regulation or order issued under this Act, the person shall be
liable for a civil administrative penalty of not more than $75,000 for each day
of continuance of each failure.
(2)The
Secretary may assess, collect, and compromise any penalty under paragraph
(1).
(3)No
penalty shall be assessed under this subsection until the person charged with a
violation has been given the opportunity for a hearing.
(4)The
penalty amount specified in this subsection shall increase each year to reflect
any increases in the Consumer Price Index for All Urban Consumers published by
the Bureau of Labor Statistics of the Department of
Labor.
;
(2)in subsection
(c)—
(A)in the first
sentence, by striking $100,000
and inserting
$10,000,000
; and
(B)by adding at the
end the following: The penalty amount specified in this subsection shall
increase each year to reflect any increases in the Consumer Price Index for All
Urban Consumers published by the Bureau of Labor Statistics of the Department
of Labor.
; and
(3)in subsection
(d), by inserting , or with reckless disregard,
after
knowingly and willfully
.
(k)Oil and gas
development and productionSection 25 of the Outer Continental
Shelf Lands Act (43 U.S.C. 1351) is amended by striking , other than the
Gulf of Mexico,
each place it appears in subsections (a)(1), (b), and
(e)(1).
(l)Section 29 of the
Outer Continental Shelf Lands Act (43 U.S.C. 1355) is amended to read as
follows:
29.
(a)Restrictions on
employmentNo full-time officer or employee of the Department of
the Interior who directly or indirectly discharges duties or responsibilities
under this Act shall—
(1)within 2 years after his
employment with the Department has ceased—
(A)knowingly act as agent or
attorney for, or otherwise represent, any other person (except the United
States) in any formal or informal appearance before;
(B)with the intent to
influence, make any oral or written communication on behalf of any other person
(except the United States) to; or
(C)knowingly aid, advise, or
assist in—
(i)representing any other
person (except the United States in any formal or informal appearance before;
or
(ii)making, with the intent
to influence, any oral or written communication on behalf of any other person
(except the United States) to,
any department, agency, or court of the
United States, or any officer or employee thereof, in connection with any
judicial or other proceeding, application, request for a ruling or other
determination, regulation, order lease, permit, rulemaking, inspection,
enforcement action, or other particular matter involving a specific party or
parties in which the United States is a party or has a direct and substantial
interest which was actually pending under his official responsibility as an
officer or employee within a period of one year prior to the termination of
such responsibility or in which he participated personally and substantially as
an officer or employee;(2)within 1 year after his
employment with the Department has ceased—
(A)knowingly act as agent or
attorney for, or otherwise represent, any other person (except the United
States) in any formal or informal appearance before;
(B)with the intent to
influence, make any oral or written communication on behalf of any other person
(except the United States) to; or
(C)knowingly aid , advise,
or assist in —
(i)representing any other
person (except the United States in any formal or informal appearance before,
or
(ii)making, with the intent
to influence, any oral or written communication on behalf of any other person
(except the United States) to,
the Department of the Interior, or any
officer or employee thereof, in connection with any judicial, rulemaking,
regulation, order, lease, permit, regulation, inspection, enforcement action,
or other particular matter which is pending before the Department of the
Interior or in which the Department has a direct and substantial interest;
or(3)accept employment or
compensation, during the 1-year period beginning on the date on which
employment with the Department has ceased, from any person (other than the
United States) that has a direct and substantial interest—
(A)that was pending under
the official responsibility of the employee as an officer or employee of the
Department during the 1-year period preceding the termination of the
responsibility; or
(B)in which the employee
participated personally and substantially as an officer or employee.
(b)Prior employment
relationshipsNo full-time officer or employee of the Department
of the Interior who directly or indirectly discharges duties or
responsibilities under this Act shall participate personally and substantially
as a Federal officer or employee, through decision, approval, disapproval,
recommendation, the rendering of advice, investigation, or otherwise, in a
proceeding, application, request for a ruling or other determination, contract,
claim, controversy, charge, accusation, inspection, enforcement action, or
other particular matter in which, to the knowledge of the officer or
employee—
(1)the officer or employee
or the spouse, minor child, or general partner of the officer or employee has a
financial interest;
(2)any organization in which
the officer or employee is serving as an officer, director, trustee, general
partner, or employee has a financial interest;
(3)any person or
organization with whom the officer or employee is negotiating or has any
arrangement concerning prospective employment has a financial interest;
or
(4)any person or
organization in which the officer or employee has, within the preceding 1-year
period, served as an officer, director, trustee, general partner, agent,
attorney, consultant, contractor, or employee has a financial interest.
(c)Gifts from outside
sourcesNo full-time officer or employee of the Department of the
Interior who directly or indirectly discharges duties or responsibilities under
this Act shall, directly or indirectly, solicit or accept any gift in violation
of subpart B of part 2635 of title V, Code of Federal Regulations (or successor
regulations).
(d)The
Secretary may, by rule, exempt from this section clerical and support personnel
who do not conduct inspections, perform audits, or otherwise exercise
regulatory or policy making authority under this Act.
(e)
(1)Any person who violates paragraph (1) or (2) of
subsection (a) or subsection (b) shall be punished in accordance with section
216 of title 18, United States Code.
(2)Any person who violates subsection (a)(3) or (c) shall
be punished in accordance with subsection (b) of section 216 of title 18,
United States
Code.
.
7.Study on the effect of
the moratoria on new deepwater drilling in the Gulf of Mexico on employment and
small businesses
(a)The Secretary of Energy, acting through the Energy
Information Administration, shall publish a monthly study evaluating the effect
of the moratoria resulting from the blowout and explosion of the mobile
offshore drilling unit Deepwater Horizon that occurred on
April 20, 2010, and resulting hydrocarbon releases into the environment, on
employment and small businesses.
(b)Not
later than 60 days after the date of enactment of this Act and at the beginning
of each month thereafter during the effective period of the moratoria described
in subsection (a), the Secretary of Energy, acting through the Energy
Information Administration, shall submit to the Committee on Energy and Natural
Resources of the Senate and the Committee on Energy and Commerce of the House
of Representatives a report regarding the results of the study conducted under
subsection (a), including—
(1)a survey of the effect of
the moratoria on deepwater drilling on employment in the industries directly
involved in oil and natural gas exploration in the outer Continental
Shelf;
(2)a survey of the effect of
the moratoria on employment in the industries indirectly involved in oil and
natural gas exploration in the outer Continental Shelf, including suppliers of
supplies or services and customers of industries directly involved in oil and
natural gas exploration;
(3)an estimate of the effect
of the moratoria on the revenues of small business located near the Gulf of
Mexico and, to the maximum extent practicable, throughout the United States;
and
(4)any recommendations to
mitigate possible negative effects on small business concerns resulting from
the moratoria.
78.
(a)Coordinated mapping
initiative
Section 388(b)
of the Energy Policy Act of 2005 (43 U.S.C. 1337 note; Public Law 109–58) is
amended by adding at the end the following:
(4)Any head of a Federal department or agency shall, on
request of the Secretary, provide to the Secretary all data and information
that the Secretary determines to be necessary for the purpose of including the
data and information in the mapping initiative, except that no Federal
department or agency shall be required to provide any data or information that
is privileged or proprietary.
.
(b)Dedicated
funding for outer continental shelf research activitiesSection
999H(d) of the Energy Policy Act of 2005 (42 U.S.C. 16378(d)) is amended by
striking paragraph (4) and inserting the following:
(4)25 percent shall
be used for research activities required under sections 20 and 21 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1346,
1347).
.
9.Safer oil and gas
production
(a)Section 999A of the
Energy Policy Act of 2005 (42 U.S.C. 16371) is amended—
(1)in subsection (a)—
(A)by striking
ultra-deepwater
and inserting deepwater
;
and
(B)by inserting well
control and accident prevention,
after safe
operations,
;
(2)in subsection (b)—
(A)by striking paragraph (1)
and inserting the following:
(1)Deepwater architecture,
well control and accident prevention, and deepwater technology, including
drilling to deep formations in waters greater than 500
feet.
; and
(B)by striking paragraph (4)
and inserting the following:
(4)Safety technology
research and development for drilling activities aimed at well control and
accident prevention performed by the Office of Fossil Energy of the
Department.
;
and
(3)in subsection (d)—
(A)in the subsection
heading, by striking National Energy Technology Laboratory
and
inserting Office of
Fossil Energy of the Department
; and
(B)by striking
National Energy Technology Laboratory
and inserting
Office of Fossil Energy of the Department
.
(b)Deepwater and
unconventional onshore natural gas and other petroleum research and development
programSection 999B of the
Energy Policy Act of 2005 (42 U.S.C. 16372) is amended—
(1)in the section heading,
by striking Ultra-deepwater
and unconventional onshore natural gas and other
petroleum
and inserting Safe oil and gas production and accident
prevention
;
(2)in subsection (a), by
striking , by increasing
and all that follows through the period
at the end and inserting and the safe and environmentally responsible
exploration, development, and production of hydrocarbon
resources.
;
(3)in subsection
(c)(1)—
(A)by redesignating
subparagraphs (D) and (E) as subparagraphs (E) and (F), respectively;
and
(B)by inserting after
subparagraph (C) the following:
(D)projects will be selected
on a competitive, peer-reviewed basis.
;
and
(4)in subsection (d)—
(A)in paragraph (6), by
striking ultra-deepwater
and inserting
deepwater
;
(B)in paragraph (7)—
(i)in subparagraph
(A)—
(I)in the subparagraph
heading, by striking Ultra-deepwater
and inserting
Deepwater
;
(II)by striking
development and
and inserting research, development,
and
; and
(III)by striking as
well as
and all that follows through the period at the end and
inserting aimed at improving operational safety of drilling activities,
including well integrity systems, well control, blowout prevention, the use of
non-toxic materials, and integrated systems approach-based management for
exploration and production in deepwater.
;
(ii)in subparagraph (B), by
striking and environmental mitigation
and inserting use
of non-toxic materials, drilling safety, and environmental mitigation and
accident prevention
;
(iii)in subparagraph (C), by
inserting safety and accident prevention, well control and systems
integrity,
after including
; and
(iv)by adding at the end the
following:
(D)Safety and accident
prevention technology research and developmentAwards from
allocations under section 999H(d)(4) shall be expended on areas
including—
(i)development of improved
cementing and casing technologies;
(ii)best management
practices for cementing, casing, and other well control activities and
technologies;
(iii)development of
integrity and stewardship guidelines for—
(I)well-plugging and
abandonment;
(II)development of wellbore
sealant technologies; and
(III)improvement and
standardization of blowout prevention
devices.
;
and
(C)by adding at the end the
following:
(8)
(A)As
soon as practicable after the date of enactment of this paragraph, the
Secretary shall enter into an arrangement with the National Academy of Sciences
under which the Academy shall conduct a study to determine—
(i)whether the benefits
provided through each award under this subsection during calendar year 2011
have been maximized; and
(ii)the new areas of
research that could be carried out to meet the overall objectives of the
program.
(B)Not
later than January 1, 2012, the Secretary shall submit to the appropriate
committees of Congress a report that contains a description of the results of
the study conducted under subparagraph (A).
(C)The Secretary may update the report described in
subparagraph (B) for the 5-year period beginning on the date described in that
subparagraph and each 5-year period
thereafter.
;
(5)in subsection (e)—
(A)in paragraph (2)—
(i)in the second sentence of
subparagraph (A), by inserting to the Secretary for review
after
submit
; and
(ii)in the first sentence of
subparagraph (B), by striking Ultra-Deepwater
and all that
follows through and such Advisory Committees
and inserting
Program Advisory Committee established under section 999D(a), and the
Advisory Committee
; and
(B)by adding at the end the
following:
(6)Research findings and
recommendations for implementationThe Secretary, in consultation
with the Secretary of the Interior and the Administrator of the Environmental
Protection Agency, shall publish in the Federal Register an annual report on
the research findings of the program carried out under this section and any
recommendations for implementation that the Secretary, in consultation with the
Secretary of the Interior and the Administrator of the Environmental Protection
Agency, determines to be
necessary.
;
(6)in subsection (i)—
(A)in the subsection
heading, by striking United States Geological Survey
and
inserting Department of
the Interior
; and
(B)by striking ,
through the United States Geological Survey,
; and
(7)in the first sentence of
subsection (j), by striking National Energy Technology
Laboratory
and inserting Office of Fossil Energy of the
Department
.
(c)Additional requirements
for awardsSection 999C(b) of
the Energy Policy Act of 2005 (42 U.S.C. 16373(b)) is amended by striking
an ultra-deepwater technology or an ultra-deepwater architecture
and inserting a deepwater technology
.
(d)Program Advisory
CommitteeSection 999D of the
Energy Policy Act of 2005 (42 U.S.C. 16374) is amended to read as
follows:
999D.Program Advisory
Committee
(a)Not
later than 270 days after the date of enactment of the Safe and Responsible
Energy Production Improvement Act of 2010, the Secretary shall establish an
advisory committee to be known as the Program Advisory Committee
(referred to in this section as the Advisory Committee
).
(b)
(1)The Advisory Committee shall be composed of members
appointed by the Secretary, including—
(A)individuals with
extensive research experience or operational knowledge of hydrocarbon
exploration and production;
(B)individuals broadly
representative of the affected interests in hydrocarbon production, including
interests in environmental protection and safety operations;
(C)representatives of
Federal agencies, including the Environmental Protection Agency and the
Department of the Interior;
(D)State regulatory agency
representatives; and
(E)other individuals, as
determined by the Secretary.
(2)
(A)The Advisory Committee shall not include individuals who
are board members, officers, or employees of the program consortium.
(B)Categorical
representationIn appointing members of the Advisory Committee,
the Secretary shall ensure that no class of individuals described in any of
subparagraphs (A), (B), (D), or (E) of paragraph (1) comprises more than
1/3 of the membership of the Advisory Committee.
(c)The
Advisory Committee may establish subcommittees for separate research programs
carried out under this subtitle.
(d)The
Advisory Committee shall—
(1)advise the Secretary on
the development and implementation of programs under this subtitle; and
(2)carry out section
999B(e)(2)(B).
(e)A
member of the Advisory Committee shall serve without compensation but shall be
entitled to receive travel expenses in accordance with subchapter I of chapter
57 of title 5, United States Code.
(f)The
Advisory Committee shall not make recommendations on funding awards to
particular consortia or other entities, or for specific
projects.
.
(e)Section 999G of the Energy Policy Act of
2005 (42 U.S.C. 16377) is amended—
(1)in paragraph (1), by
striking 200 but less than 1,500 meters
and inserting 500
feet
;
(2)by striking paragraphs
(8), (9), and (10);
(3)by redesignating
paragraphs (2) through (7) and (11) as paragraphs (4) through (9) and (10),
respectively;
(4)by inserting after
paragraph (1) the following:
(2)The term deepwater architecture means
the integration of technologies for the exploration for, or production of,
natural gas or other petroleum resources located at deepwater depths.
(3)The term deepwater technology means a
discrete technology that is specially suited to address 1 or more challenges
associated with the exploration for, or production of, natural gas or other
petroleum resources located at deepwater
depths.
;
and
(5)in paragraph (10) (as
redesignated by paragraph (3)), by striking in an economically
inaccessible geological formation, including resources of small
producers
.
(f)Section 999H of the Energy Policy Act of
2005 (42 U.S.C. 16378) is amended—
(1)in the first sentence of
subsection (a) by striking Ultra-Deepwater and Unconventional Natural
Gas and Other Petroleum Research Fund
and inserting Safe and
Responsible Energy Production Research Fund
;
(2)in subsection (d)—
(A)in paragraph (1), by
striking 35 percent
and inserting 21.5
percent
;
(B)in paragraph (2), by
striking 32.5 percent
and inserting 21
percent
;
(C)in paragraph (4)—
(i)by striking 25
percent
and inserting 30 percent
;
(ii)by striking
complementary research
and inserting safety technology
research and development
; and
(iii)by striking
contract management,
and all that follows through the period at
the end and inserting and contract management.
; and
(D)by adding at the end the
following:
(5)20 percent shall be used
for research activities required under sections 20 and 21 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1346,
1347).
.
(3)in subsection (f), by
striking Ultra-Deepwater and Unconventional Natural Gas and Other
Petroleum Research Fund
and inserting Safer Oil and Gas
Production and Accident Prevention Research Fund
.
(g)Subtitle J of title
IX of the Energy Policy Act of 2005 (42 U.S.C. 16371 et seq.) is amended in the
subtitle heading by striking Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum
Resources
and inserting Safer Oil and Gas Production and Accident
Prevention
.
10.National Commission on
Outer Continental Shelf Oil Spill Prevention
(a)There is established in the Legislative
branch the National Commission on Outer Continental Shelf Oil Spill Prevention
(referred to in this section as the Commission
).
(b)The purposes of the Commission are—
(1)to examine and report on
the facts and causes relating to the Deepwater Horizon explosion and oil spill
of 2010;
(2)to ascertain, evaluate,
and report on the evidence developed by all relevant governmental agencies
regarding the facts and circumstances surrounding the incident;
(3)to build upon the
investigations of other entities, and avoid unnecessary duplication, by
reviewing the findings, conclusions, and recommendations of—
(A)the Committees on Energy
and Natural Resources and Commerce, Science, and Transportation of the
Senate;
(B)the Committee on Natural
Resources and the Subcommittee on Oversight and Investigations of the House of
Representatives; and
(C)other Executive branch,
congressional, or independent commission investigations into the Deepwater
Horizon incident of 2010, other fatal oil platform accidents and major spills,
and major oil spills generally;
(4)to make a full and
complete accounting of the circumstances surrounding the incident, and the
extent of the preparedness of the United States for, and immediate response of
the United States to, the incident; and
(5)to investigate and report
to the President and Congress findings, conclusions, and recommendations for
corrective measures that may be taken to prevent similar incidents.
(c)Composition of
Commission
(1)The
Commission shall be composed of 10 members, of whom—
(A)1 member shall be
appointed by the President, who shall serve as Chairperson of the
Commission;
(B)1 member shall be
appointed by the majority or minority (as the case may be) leader of the Senate
from the Republican Party and the majority or minority (as the case may be)
leader of the House of Representatives from the Republican Party, who shall
serve as Vice Chairperson of the Commission;
(C)2 members shall be
appointed by the senior member of the leadership of the Senate from the
Democratic Party;
(D)2 members shall be
appointed by the senior member of the leadership of the House of
Representatives from the Republican Party;
(E)2 members shall be
appointed by the senior member of the leadership of the Senate from the
Republican Party; and
(F)2 members shall be
appointed by the senior member of the leadership of the House of
Representatives from the Democratic Party.
(2)Qualifications; initial
meeting
(A)Political party
affiliationNot more than 5 members of the Commission shall be
from the same political party.
(B)Nongovernmental
appointeesAn individual appointed to the Commission may not be a
current officer or employee of the Federal Government or any State or local
government.
(C)It is the sense of Congress that individuals
appointed to the Commission should be prominent United States citizens, with
national recognition and significant depth of experience and expertise in such
areas as—
(i)engineering;
(ii)environmental
compliance;
(iii)health and safety law
(particularly oil spill legislation);
(iv)oil spill insurance
policies;
(v)public
administration;
(vi)oil and gas exploration
and production;
(vii)environmental cleanup;
and
(viii)fisheries and wildlife
management.
(D)All members of the Commission shall be appointed on
or before September 15, 2010.
(E)The Commission shall meet and begin the operations of the
Commission as soon as practicable after the date of enactment of this
Act.
(3)
(A)After the initial meeting of the Commission, the
Commission shall meet upon the call of the Chairperson or a majority of the
members of the Commission.
(B)6
members of the Commission shall constitute a quorum.
(C)Any
vacancy in the Commission shall not affect the powers of the Commission, but
shall be filled in the same manner in which the original appointment was
made.
(d)
(1)The functions of the Commission are—
(A)to conduct an
investigation that—
(i)investigates relevant
facts and circumstances relating to the Deepwater Horizon incident of April 20,
2010, and the associated oil spill thereafter, including any relevant
legislation, Executive order, regulation, plan, policy, practice, or procedure;
and
(ii)may include relevant
facts and circumstances relating to—
(I)permitting
agencies;
(II)environmental and worker
safety law enforcement agencies;
(III)national energy
requirements;
(IV)deepwater and
ultradeepwater oil and gas exploration and development;
(V)regulatory
specifications, testing, and requirements for offshore oil and gas well
explosion prevention;
(VI)regulatory
specifications, testing, and requirements offshore oil and gas well casing and
cementing regulation;
(VII)the role of
congressional oversight and resource allocation; and
(VIII)other areas of the
public and private sectors determined to be relevant to the Deepwater Horizon
incident by the Commission;
(B)to identify, review, and
evaluate the lessons learned from the Deepwater Horizon incident of April 20,
2010, regarding the structure, coordination, management policies, and
procedures of the Federal Government, and, if appropriate, State and local
governments and nongovernmental entities, and the private sector, relative to
detecting, preventing, and responding to those incidents; and
(C)to submit to the
President and Congress such reports as are required under this section
containing such findings, conclusions, and recommendations as the Commission
determines to be appropriate, including proposals for organization,
coordination, planning, management arrangements, procedures, rules, and
regulations.
(2)Relationship to inquiry
by congressional committeesIn investigating facts and
circumstances relating to energy policy, the Commission shall—
(A)first review the
information compiled by, and any findings, conclusions, and recommendations of,
the committees identified in subparagraphs (A) and (B) of subsection (b)(3);
and
(B)after completion of that
review, pursue any appropriate area of inquiry, if the Commission determines
that—
(i)those committees have not
investigated that area;
(ii)the investigation of
that area by those committees has not been completed; or
(iii)new information not
reviewed by the committees has become available with respect to that
area.
(e)
(1)The Commission or, on the authority of the Commission,
any subcommittee or member of the Commission, may, for the purpose of carrying
out this section—
(A)hold such hearings, meet
and act at such times and places, take such testimony, receive such evidence,
and administer such oaths; and
(B)require, by subpoena or
otherwise, the attendance and testimony of such witnesses and the production of
such books, records, correspondence, memoranda, papers, documents, tapes, and
materials;
as the Commission or such subcommittee or
member considers to be advisable.(2)
(A)
(i)A subpoena may be issued under this paragraph
only—
(I)by the agreement of the
Chairperson and the Vice Chairperson; or
(II)by the affirmative vote
of 6 members of the Commission.
(ii)Subject
to clause (i), a subpoena issued under this paragraph—
(I)shall bear the signature
of the Chairperson or any member designated by a majority of the
Commission;
(II)and may be served by any
person or class of persons designated by the Chairperson or by a member
designated by a majority of the Commission for that purpose.
(B)
(i)In the case of contumacy or failure to obey a subpoena
issued under subparagraph (A), the United States district court for the
district in which the subpoenaed person resides, is served, or may be found, or
where the subpoena is returnable, may issue an order requiring the person to
appear at any designated place to testify or to produce documentary or other
evidence.
(ii)Judicial action for
noncomplianceAny failure to obey the order of the court may be
punished by the court as a contempt of that court.
(iii)In the case of any failure of any witness to comply
with any subpoena or to testify when summoned under authority of this
subsection, the Commission may, by majority vote, certify a statement of fact
constituting such failure to the appropriate United States attorney, who may
bring the matter before the grand jury for action, under the same statutory
authority and procedures as if the United States attorney had received a
certification under sections 102 through 104 of the Revised Statutes (2 U.S.C.
192 through 194).
(3)The
Commission may, to such extent and in such amounts as are provided in
appropriation Acts, enter into contracts to enable the Commission to discharge
the duties of the Commission under this section.
(4)Information from
Federal agencies
(A)The Commission may secure directly from any Executive
department, bureau, agency, board, commission, office, independent
establishment, or instrumentality of the Federal Government, information,
suggestions, estimates, and statistics for the purposes of this section.
(B)Each
Federal department, bureau, agency, board, commission, office, independent
establishment, or instrumentality shall, to the extent authorized by law,
furnish information, suggestions, estimates, and statistics directly to the
Commission, upon request made by the Chairperson, the Chairperson of any
subcommittee created by a majority of the Commission, or any member designated
by a majority of the Commission.
(C)Receipt, handling,
storage, and disseminationInformation shall be received,
handled, stored, and disseminated only by members of the Commission and the
staff of the Commission in accordance with all applicable laws (including
regulations and Executive orders).
(5)Assistance from Federal
agencies
(A)General services
administrationThe Administrator of General Services shall
provide to the Commission on a reimbursable basis administrative support and
other services for the performance of the functions of the Commission.
(B)Other departments and
agenciesIn addition to the assistance prescribed in subparagraph
(A), departments and agencies of the United States may provide to the
Commission such services, funds, facilities, staff, and other support services
as are determined to be advisable and authorized by law.
(6)The
Commission may accept, use, and dispose of gifts or donations of services or
property, including travel, for the direct advancement of the functions of the
Commission.
(7)The Commission may use the United States mails in the
same manner and under the same conditions as departments and agencies of the
United States.
(f)Public meetings and
hearings
(1)Public meetings and
release of public versions of reportsThe Commission
shall—
(A)hold public hearings and
meetings, to the extent appropriate; and
(B)release public versions
of the reports required under paragraphs (1) and (2) of subsection (j).
(2)Any public hearings of the Commission shall be conducted
in a manner consistent with the protection of proprietary or sensitive
information provided to or developed for or by the Commission as required by
any applicable law (including a regulation or Executive order).
(g)
(1)
(A)Appointment and
compensation
(i)The Chairperson, in consultation with the Vice
Chairperson and in accordance with rules agreed upon by the Commission, may,
without regard to the civil service laws (including regulations), appoint and
fix the compensation of a staff director and such other personnel as are
necessary to enable the Commission to carry out the functions of the
Commission.
(ii)No rate of pay fixed under this subparagraph may exceed the
equivalent of that payable for a position at level V of the Executive Schedule
under section 5316 of title 5, United States Code.
(B)Personnel as Federal
employees
(i)The staff director and any personnel of the Commission
who are employees shall be considered to be employees under section 2105 of
title 5, United States Code, for purposes of chapters 63, 81, 83, 84, 85, 87,
89, and 90 of that title.
(ii)Clause (i) shall not apply to members of the
Commission.
(2)
(A)An employee of the Federal Government may be detailed to
the Commission without reimbursement.
(B)The detail of the employee shall be without interruption
or loss of civil service status or privilege.
(3)Procurement of
temporary and intermittent servicesThe Chairperson of the
Commission may procure temporary and intermittent services in accordance with
section 3109(b) of title 5, United States Code, at rates for individuals that
do not exceed the daily equivalent of the annual rate of basic pay prescribed
for level V of the Executive Schedule under section 5316 of that title.
(h)Compensation and travel
expenses
(1)
(A)A member of the Commission who is not an officer or
employee of the Federal Government shall be compensated at a rate equal to the
daily equivalent of the annual rate of basic pay prescribed for level IV of the
Executive Schedule under section 5315 of title 5, United States Code, for each
day (including travel time) during which the member is engaged in the
performance of the duties of the Commission.
(B)A member of the Commission who is an officer or
employee of the Federal Government shall serve without compensation in addition
to the compensation received for the services of the member as an officer or
employee of the Federal Government.
(2)A member of the Commission shall be allowed travel
expenses, including per diem in lieu of subsistence, at rates authorized for an
employee of an agency under subchapter I of chapter 57 of title 5, United
States Code, while away from the home or regular place of business of the
member in the performance of the duties of the Commission.
(i)Security clearances for
Commission members and staff
(1)Subject to paragraph
(2), the appropriate Federal agencies or departments shall cooperate with the
Commission in expeditiously providing to the members and staff of the
Commission appropriate security clearances, to the maximum extent practicable,
pursuant to existing procedures and requirements.
(2)No person shall
be provided with access to proprietary information under this section without
the appropriate security clearances.
(j)Reports of Commission;
adjournment
(1)The Commission may submit to the President and Congress
interim reports containing such findings, conclusions, and recommendations for
corrective measures as have been agreed to by a majority of members of the
Commission.
(2)Not later than 180 days after the date of the enactment of
this Act, the Commission shall submit to the President and Congress a final
report containing such findings, conclusions, and recommendations for
corrective measures as have been agreed to by a majority of members of the
Commission.
(3)
(A)The Commission, and all the authority provided under this
section, shall adjourn and be suspended, respectively, on the date that is 60
days after the date on which the final report is submitted under paragraph
(2).
(B)Administrative
activities before terminationThe Commission may use the 60-day
period referred to in subparagraph (A) for the purpose of concluding activities
of the Commission, including—
(i)providing testimony to
committees of Congress concerning reports of the Commission; and
(ii)disseminating the final
report submitted under paragraph (2).
(C)Reconvening of
CommissionThe Commission shall stand adjourned until such time
as the President or the Secretary of Homeland Security declares an oil spill of
national significance to have occurred, at which time—
(i)the Commission shall
reconvene in accordance with subsection (c)(3); and
(ii)the authority of the
Commission under this section shall be of full force and effect.
(k)
(1)Authorization of
appropriationsThere are authorized to be appropriated to carry
out this section—
(A)$10,000,000 for the first
fiscal year in which the Commission convenes; and
(B)$3,000,000 for each
fiscal year thereafter in which the Commission convenes.
(2)Amounts
made available to carry out this section shall be available—
(A)for transfer to the
Commission for use in carrying out the functions and activities of the
Commission under this section; and
(B)until the date on which
the Commission adjourns for the fiscal year under subsection (j)(3).
(l)Nonapplicability of
Federal Advisory Committee ActThe Federal Advisory Committee Act (5
U.S.C. App.) shall not apply to the Commission.
11.Classification of
offshore systems
(a)
(1)Not later than 2 years after the date of enactment of
this Act, the Secretary and the Secretary of the Department in which the Coast
Guard is operating shall jointly issue regulations requiring systems (including
existing systems) used in the offshore exploration, development, and production
of oil and gas in the outer Continental Shelf to be constructed, maintained,
and operated so as to meet classification, certification, rating, and
inspection standards that are necessary—
(A)to protect the health and
safety of affiliated workers; and
(B)to prevent environmental
degradation.
(2)The standards established by regulation under
paragraph (1) shall be verified through certification and classification by
independent third parties that—
(A)have been preapproved by
both the Secretary and the Secretary of the Department in which the Coast Guard
is operating; and
(B)have no financial
conflict of interest in conducting the duties of the third parties.
(3)At a minimum, the regulations issued under paragraph (1)
shall require the certification and classification by an independent third
party who meets the requirements of paragraph (2) of—
(A)mobile offshore drilling
units;
(B)fixed and floating
drilling or production facilities;
(C)drilling systems,
including risers and blowout preventers; and
(D)any other equipment
dedicated to the safety systems relating to offshore extraction and production
of oil and gas.
(4)The
Secretary and the Secretary of the Department in which the Coast Guard is
operating may waive the standards established by regulation under paragraph (1)
for an existing system only if—
(A)the system is of an age
or type where meeting such requirements is impractical; and
(B)the system poses an
acceptably low level of risk to the environment and to human safety.
(b)Nothing in this section preempts or interferes with the
authority of the Coast Guard.
812.
(a)All regulations, rules, standards, determinations, contracts
and agreements, memoranda of understanding, certifications, authorizations,
appointments, delegations, results and findings of investigations, or any other
actions issued, made, or taken by, or pursuant to or under, the authority of
any law (including regulations) that resulted in the assignment of functions or
activities to the Secretary, the Director of the Minerals Management Service
(including by delegation from the Secretary), or the Department (as related to
the implementation of the purposes referenced in this Act) that were in effect
on the date of enactment of this Act shall continue in full force and effect
after the date of enactment of this Act unless previously scheduled to expire
or until otherwise modified or rescinded by this Act or any other Act.
(b)Effect on other
authoritiesThis Act does not amend or alter the provisions of
other applicable laws, unless otherwise noted.
913.The budgetary effects
of this Act, for the purpose of complying with the Statutory Pay-As-You-Go Act
of 2010, shall be determined by reference to the latest statement titled
Budgetary Effects of PAYGO Legislation
for this Act, submitted
for printing in the Congressional Record by the Chairman of the Senate Budget
Committee, provided that such statement has been submitted prior to the vote on
passage.
July 28, 2010
Reported with amendments