[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3643 Placed on Calendar Senate (PCS)]

                                                       Calendar No. 483
111th CONGRESS
  2d Session
                                S. 3643

To amend the Outer Continental Shelf Lands Act to reform the management 
  of energy and mineral resources on the Outer Continental Shelf, to 
    improve oil spill compensation, to terminate the moratorium on 
              deepwater drilling, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 22, 2010

 Mr. McConnell (for himself, Ms. Murkowski, Mr. Alexander, Mr. Inhofe, 
   Mr. Thune, Mr. Bennett, Mr. Barrasso, Mr. Cornyn, and Mr. Wicker) 
      introduced the following bill; which was read the first time

                             July 26, 2010

             Read the second time and place on the calendar

_______________________________________________________________________

                                 A BILL


 
To amend the Outer Continental Shelf Lands Act to reform the management 
  of energy and mineral resources on the Outer Continental Shelf, to 
    improve oil spill compensation, to terminate the moratorium on 
              deepwater drilling, 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 Spill Response 
Improvement Act of 2010''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                TITLE I--OUTER CONTINENTAL SHELF REFORM

Sec. 101. Purposes.
Sec. 102. Definitions.
Sec. 103. National policy for the outer Continental Shelf.
Sec. 104. Structural reform of outer Continental Shelf program 
                            management.
Sec. 105. Safety, environmental, and financial reform of the Outer 
                            Continental Shelf Lands Act.
Sec. 106. Study on the effect of the moratoria on new deepwater 
                            drilling in the Gulf of Mexico on 
                            employment and small businesses.
Sec. 107. Reform of other law.
Sec. 108. Safer oil and gas production.
Sec. 109. National Commission on Outer Continental Shelf Oil Spill 
                            Prevention.
Sec. 110. Classification of offshore systems.
Sec. 111. Savings provisions.
Sec. 112. Budgetary effects.
                    TITLE II--OIL SPILL COMPENSATION

                    Subtitle A--Oil Spill Liability

                   PART I--Oil Pollution Act of 1990

Sec. 201. Liability limits.
Sec. 202. Advance payment.
                PART II--Oil Spill Liability Trust Fund

Sec. 211. Rate of tax for Oil Spill Liability Trust Fund.
Sec. 212. Limitations on expenditures and borrowing authority.
                 Subtitle B--Federal Oil Spill Research

Sec. 221. Definitions.
Sec. 222. Federal oil spill research.
Sec. 223. National Academy of Science participation.
Sec. 224. Technical and conforming amendments.
Sec. 225. Oil spill response authority.
Sec. 226. Maritime center of expertise.
Sec. 227. National strike force.
Sec. 228. District preparedness and response teams.
Sec. 229. Oil spill response organizations.
Sec. 230. Program for oil spill and hazardous substance release 
                            response.
Sec. 230a. Oil and hazardous substance liability.
                    Subtitle C--Oil and Gas Leasing

Sec. 231. Revenue sharing from outer Continental Shelf areas in certain 
                            coastal States.
Sec. 232. Revenue sharing from areas in Alaska Adjacent zone.
Sec. 233. Accelerated revenue sharing to promote coastal resiliency 
                            among Gulf producing States.
Sec. 234. Coastal impact assistance program amendments.
Sec. 235. Production of oil from certain Arctic offshore leases.
Sec. 236. Use of stimulus funds to offset spending.
 TITLE III--GUIDANCE ON MORATORIUM ON OUTER CONTINENTAL SHELF DRILLING

Sec. 301. Limitation of moratorium on certain permitting and drilling 
                            activities.
Sec. 302. Deepwater Horizon incident.

                TITLE I--OUTER CONTINENTAL SHELF REFORM

SEC. 101. PURPOSES.

    The purposes of this title 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.

SEC. 102. DEFINITIONS.

    In this title:
            (1) Department.--The term ``Department'' means the 
        Department of the Interior.
            (2) Outer continental shelf.--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) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.

SEC. 103. NATIONAL POLICY FOR THE OUTER CONTINENTAL SHELF.

    Section 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--
                    ``(A) recognizes the need of the United States for 
                competitive 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, expeditious, and 
                orderly management and production 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 commercial'' after 
                ``using''.

SEC. 104. STRUCTURAL REFORM OF OUTER CONTINENTAL SHELF PROGRAM 
              MANAGEMENT.

    (a) In General.--The Outer Continental Shelf Lands Act (43 U.S.C. 
1331 et seq.) is amended by adding to the end the following:

``SEC. 32. STRUCTURAL REFORM OF OUTER CONTINENTAL SHELF PROGRAM 
              MANAGEMENT.

    ``(a) Leasing, Permitting, and Regulation Bureaus.--
            ``(1) Establishment of bureaus.--
                    ``(A) In general.--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) Conflicts of interest.--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) Director.--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) Compensation.--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) Qualifications.--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) Establishment of office.--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) Director.--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) Compensation.--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) Qualifications.--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) Establishment.--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) Membership.--
                    ``(A) Size.--
                            ``(i) In general.--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) Consultation.--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) Term.--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) Chair.--The Secretary shall appoint the Chair 
                for the Board.
            ``(3) Meetings.--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.--Reports of the Board shall--
                    ``(A) be submitted to Congress; and
                    ``(B) made available to the public in an 
                electronically accessible form.
            ``(5) Travel expenses.--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) In general.--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) Requirements.--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) Critical pay authority.--
                    ``(A) In general.--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) Limitations.--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) Notification.--Each year, the Secretary shall 
                submit to Congress a notification that lists each 
                individual appointed under this paragraph.
            ``(3) Reemployment of civilian retirees.--
                    ``(A) In general.--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) Limitations.--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) Limitation on term.--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) Continuity of Authority.--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) Conforming Amendment.--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.''.

SEC. 105. SAFETY, ENVIRONMENTAL, AND FINANCIAL REFORM OF THE OUTER 
              CONTINENTAL SHELF LANDS ACT.

    (a) Definitions.--Section 2 of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1331) is amended by adding at the end the following:
    ``(r) Safety Case.--The term `safety case' means a 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 Leasing.--Section 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) Maintenance of Leases.--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 Amounts.--Not later than May 1, 
2011, and every 5 years thereafter, the Secretary shall--
            ``(1) review the minimum financial responsibility 
        requirements for mineral leases under subsection (a)(11); and
            ``(2) 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) Royalty rates.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this subsection and every 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) Public participation.--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) In general.--Not later than 1 year after the 
                date of enactment of this subsection and every 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 and trends for bonus bids, rental rates, 
                royalties, oil and gas taxes, income taxes, wage 
                requirements, regulatory compliance costs, oil and gas 
                fees, and other significant financial elements.
                    ``(B) Inclusions.--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 committee.--In 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) Report.--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) Combined report.--The Secretary may combine 
                the reports required by paragraphs (1) and (2)(D) into 
                1 report.
            ``(3) Report deadline.--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-Way.--Section 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 Bidding.--No 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, constituting significant 
        infractions, 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) Exploration Plans.--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) Minimum requirements.--
                    ``(A) In general.--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 commercial 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 
                        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 estimated 
                                timeline for regaining control of the 
                                well; and
                                    ``(bb) the strategy, organization, 
                                and resources 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) Deepwater wells.--
                            ``(i) In general.--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) Technology requirements.--A 
                        deepwater operations plan under this 
                        subparagraph shall be based on the best 
                        available commercial technology to ensure 
                        safety in carrying out the exploration activity 
                        and the blowout response plan.
                            ``(iii) Systems analysis required.--The 
                        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) Deadline for approval.--
                    ``(A) In general.--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) Existing leases.--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.
                    ``(C) Effect on term of lease.--In the case of any 
                extension of the deadline for approval of an 
                exploration plan under this Act, the additional time 
                taken by the Secretary shall not be assessed against 
                the term of the associated lease.'';
            (2) by redesignating subsections (e) through (h) as 
        subsections (f) through (i), respectively; and
            (3) by striking subsection (d) and inserting the following:
    ``(d) Drilling Permits.--
            ``(1) In general.--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 required.--The Secretary may not 
        grant any drilling permit until the date of completion of a 
        full review of the well system by not less than 2 agency 
        engineers, including a written determination that--
                    ``(A) critical safety systems (including blowout 
                prevention) will use best available commercial 
                technology; and
                    ``(B) blowout prevention systems will include 
                redundancy and remote triggering capability.
            ``(3) Modification review required.--The Secretary may not 
        approve any modification of a permit without a determination, 
        after an additional engineering review, that the modification 
        will not compromise the safety of the well system previously 
        approved.
            ``(4) Operator safety and environmental management 
        required.--The 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 requirements of crew members who 
                        will be present on the rig; and
                            ``(ii) designation of at least 2 
                        environmental and safety managers that--
                                    ``(I) are or will be 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) In general.--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) Compensation.--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) to a development and production plan shall be 
        considered to be a reference to an exploration plan.''.
    (f) Outer Continental Shelf Leasing Program.--Section 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) Research and Development.--
            ``(1) In general.--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) Inclusions.--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) Leasing activities.--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) Environmental Studies.--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) In general.--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) Scope of research.--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) Use of data.--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) Independence.--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 Regulations.--Section 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 general.--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 commercial 
        technologies and practices, if the failure of equipment would 
        have a significant effect on safety, health, or the 
        environment.
            ``(2) Identification of best available technologies.--Not 
        later than May 1, 2011, the Secretary shall identify and 
        publish a list, to be updated and maintained to reflect 
        technological advances, of best available commercial 
        technologies for key areas of well design and operation, 
        including blowout prevention and blowout and oil spill 
        response.
            ``(3) Safety case.--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) Employee training.--
                    ``(A) In general.--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) Requirements.--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) Experience.--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 courses.--The 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) In general.--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) Specific areas of focus.--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 commercial 
                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) Domestic activities.--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 cooperation.--The 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) Reports.--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) Independence.--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) Use of data.--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) Enforcement.--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 shear rams, 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) In general.--The''; and
                    (B) by adding at the end the following:
            ``(2) Investigation.--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) In general.--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) Transportation accident.--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) In general.--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) Public database.--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) Inspection Fee.--
            ``(1) In general.--To 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) Establishment.--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 fund.--There 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) Availability of fees.--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) Annual reports.--
                    ``(A) In general.--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) Contents.--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) Remedies and Penalties.--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) Civil Penalty.--
            ``(1) In general.--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) Administration.--The Secretary may assess, collect, 
        and compromise any penalty under paragraph (1).
            ``(3) Hearing.--No penalty shall be assessed under this 
        subsection until the person charged with a violation has been 
        given the opportunity for a hearing.
            ``(4) Adjustment.--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 Production.--Section 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) Conflicts of Interest.--Section 29 of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1355) is amended to read as follows:

``SEC. 29. CONFLICTS OF INTEREST.

    ``(a) Restrictions on Employment.--No 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 Relationships.--No 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 Sources.--No 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) Exemptions.--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) Penalties.--
            ``(1) Criminal penalties.--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) Civil penalties.--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.''.

SEC. 106. STUDY ON THE EFFECT OF THE MORATORIA ON NEW DEEPWATER 
              DRILLING IN THE GULF OF MEXICO ON EMPLOYMENT AND SMALL 
              BUSINESSES.

    (a) In General.--The Secretary of Energy, acting through the Energy 
Information Administration, shall publish a monthly study evaluating 
the effect of the moratoria which followed 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) Report.--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.

SEC. 107. REFORM OF OTHER LAW.

    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) Federal agencies.--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.''.

SEC. 108. SAFER OIL AND GAS PRODUCTION.

    (a) Program Authority.--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 Program.--Section 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 development.--Awards 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) Study; report.--
                    ``(A) Study.--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) Report.--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) Optional updates.--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 
        implementation.--The 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 Awards.--Section 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 Committee.--Section 999D of the Energy Policy 
Act of 2005 (42 U.S.C. 16374) is amended to read as follows:

``SEC. 999D. PROGRAM ADVISORY COMMITTEE.

    ``(a) Establishment.--Not later than 270 days after the date of 
enactment of the Oil Spill Response 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) Membership.--
            ``(1) In general.--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) Limitations.--
                    ``(A) In general.--The Advisory Committee shall not 
                include individuals who are board members, officers, or 
                employees of the program consortium.
                    ``(B) Categorical representation.--In 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) Subcommittees.--The Advisory Committee may establish 
subcommittees for separate research programs carried out under this 
subtitle.
    ``(d) Duties.--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) Compensation.--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) Prohibition.--The Advisory Committee shall not make 
recommendations on funding awards to particular consortia or other 
entities, or for specific projects.''.
    (e) Definitions.--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) Deepwater architecture.--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) Deepwater technology.--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) Funding.--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) Conforming Amendment.--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''.

SEC. 109. NATIONAL COMMISSION ON OUTER CONTINENTAL SHELF OIL SPILL 
              PREVENTION.

    (a) Establishment.--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) Purposes.--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) Members.--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 affiliation.--Not more than 5 
                members of the Commission shall be from the same 
                political party.
                    (B) Nongovernmental appointees.--An individual 
                appointed to the Commission may not be a current 
                officer or employee of the Federal Government or any 
                State or local government.
                    (C) Other qualifications.--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) Deadline for appointment.--All members of the 
                Commission shall be appointed on or before September 
                15, 2010.
                    (E) Initial meeting.--The Commission shall meet and 
                begin the operations of the Commission as soon as 
                practicable after the date of enactment of this Act.
            (3) Quorum; vacancies.--
                    (A) In general.--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) Quorum.--6 members of the Commission shall 
                constitute a quorum.
                    (C) Vacancies.--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) Functions of Commission.--
            (1) In general.--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 committees.--
        In 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) Powers of Commission.--
            (1) Hearings and evidence.--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) Subpoenas.--
                    (A) Issuance.--
                            (i) In general.--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) Signature.--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) Enforcement.--
                            (i) In general.--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 noncompliance.--
                        Any failure to obey the order of the court may 
                        be punished by the court as a contempt of that 
                        court.
                            (iii) Additional enforcement.--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) Contracting.--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) In general.--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) Cooperation.--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 
                dissemination.--Information 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 administration.--The 
                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 agencies.--In 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) Gifts.--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) Postal services.--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 
        reports.--The 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) Public hearings.--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) Staff of Commission.--
            (1) In general.--
                    (A) Appointment and compensation.--
                            (i) In general.--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) Maximum rate of pay.--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) In general.--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) Members of commission.--Clause (i) 
                        shall not apply to members of the Commission.
            (2) Detailees.--
                    (A) In general.--An employee of the Federal 
                Government may be detailed to the Commission without 
                reimbursement.
                    (B) Civil service status.--The detail of the 
                employee shall be without interruption or loss of civil 
                service status or privilege.
            (3) Procurement of temporary and intermittent services.--
        The 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) Compensation of members.--
                    (A) Non-federal employees.--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) Federal employees.--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) Travel expenses.--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) In general.--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) Proprietary information.--No person shall be provided 
        with access to proprietary information under this section 
        without the appropriate security clearances.
    (j) Reports of Commission; Adjournment.--
            (1) Interim reports.--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) Final report.--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) Temporary adjournment.--
                    (A) In general.--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 termination.--
                The 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 commission.--The 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) Funding.--
            (1) Authorization of appropriations.--There 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) Availability.--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 Act.--The 
Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the 
Commission.
    (m) Conflicts of Interest for Certain Commission Members.--
Notwithstanding any other provision of law, any member of a federally 
sponsored presidential commission that is a senior official in an 
organization that is engaged in legal action that is materially 
relevant to the work of the Commission shall be excluded from making 
recommendations to the President.

SEC. 110. CLASSIFICATION OF OFFSHORE SYSTEMS.

    (a) Regulations.--
            (1) In general.--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) Third-party verification.--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) Minimum systems covered.--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) Exceptions.--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) Authority of Coast Guard.--Nothing in this section preempts or 
interferes with the authority of the Coast Guard.

SEC. 111. SAVINGS PROVISIONS.

    (a) Existing Law.--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 title) 
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 title or any other Act.
    (b) Effect on Other Authorities.--This title does not amend or 
alter the provisions of other applicable laws, unless otherwise noted.

SEC. 112. BUDGETARY EFFECTS.

    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.

                    TITLE II--OIL SPILL COMPENSATION

                    Subtitle A--Oil Spill Liability

                   PART I--OIL POLLUTION ACT OF 1990

SEC. 201. LIABILITY LIMITS.

    (a) Presidential Establishment of Limits.--Section 1004 of the Oil 
Pollution Act of 1990 (33 U.S.C. 2704) is amended by adding at the end 
the following:
    ``(e) Limits for Strict Liability.--
            ``(1) In general.--For the purpose of subsection (a)(3), 
        after a 60-day period of public notice and comment beginning on 
        the date of enactment of this subsection, and from time to time 
        thereafter, the President shall establish a set of limits for 
        strict liability for damages for incidents occurring from 
        offshore facilities (other than deepwater ports) covered by 
        Outer Continental Shelf leases issued after the date of 
        enactment of the Oil Spill Response Improvement Act of 2010.
            ``(2) Requirements.--The limits for strict liability 
        established under paragraph (1) shall--
                    ``(A) take into account the availability of 
                insurance products for offshore facilities; and
                    ``(B) be otherwise based equally on and categorized 
                by--
                            ``(i) the water depth of the lease;
                            ``(ii) the minimum projected well depth of 
                        the lease;
                            ``(iii) the proximity of the lease to oil 
                        and gas emergency response equipment and 
                        infrastructure;
                            ``(iv) the likelihood of the offshore 
                        facility covered by the lease to encounter 
                        broken sea ice;
                            ``(v) the record and historical number of 
                        regulatory violations of the leaseholder under 
                        the Outer Continental Shelf Lands Act (43 
                        U.S.C. 1331 et seq.) or the Federal Water 
                        Pollution Control Act (33 U.S.C. 1251 et seq.) 
                        (or the absence of such a record or 
                        violations);
                            ``(vi) the estimated hydrocarbon reserves 
                        of the lease;
                            ``(vii) the estimated well pressure, 
                        expressed in pounds per square inch, of the 
                        reservoir associated with the lease;
                            ``(viii) the availability and projected 
                        availability, including through borrowing 
                        authority, of funds in the Oil Spill Liability 
                        Trust Fund established by section 9509 of the 
                        Internal Revenue Code of 1986;
                            ``(ix) other available remedies under law;
                            ``(x) the estimated economic value of 
                        nonenergy coastal resources that may be 
                        impacted by a spill of national significance 
                        involving the offshore facility covered by the 
                        lease;
                            ``(xi) whether the offshore facility 
                        covered by the lease employs a subsea or 
                        surface blowout preventer stack; and
                            ``(xii) the availability of industry 
                        payments under subsection (f).
            ``(3) Public liability insurance.--In no case shall the 
        strict liability limits under this subsection for the 
        applicable offshore facility be less than the maximum amount of 
        public liability insurance that is broadly available for 
        related offshore environmental incidents.
    ``(f) Liability of Industry.--
            ``(1) In general.--If an incident on the Outer Continental 
        Shelf results in economic damages claims exceeding the maximum 
        amount for strict liability for economic damages to be paid by 
        the responsible party under subsection (a)(3), the claims in 
        excess of the maximum amount for strict liability for economic 
        damages under subsection (a)(3) shall be paid initially, in an 
        amount not to exceed a total of $20,000,000,000, by all other 
        entities operating offshore facilities on the Outer Continental 
        Shelf on the date of the incident, as determined by the 
        Secretary of the Interior, in accordance with paragraph (2).
            ``(2) Proportional payment.--The amount of liability claims 
        to be paid under paragraph (1) by an entity described in that 
        paragraph shall be determined by the Secretary of the Interior 
        based on the proportion that--
                    ``(A) the number of offshore facilities operated by 
                the entity on the Outer Continental Shelf; bears to
                    ``(B) the total number of offshore facilities 
                operated by all entities on the Outer Continental 
                Shelf.
            ``(3) Oil spill liability trust fund.--Economic damages 
        that exceed the amounts available under subsection (a)(3) and 
        paragraph (1) shall be paid from the Oil Spill Liability Trust 
        Fund and amounts made available to the Fund under part II of 
        the Oil Spill Response Improvement Act of 2010.''.
    (b) Conforming Amendments.--
            (1) Limit for offshore facilities.--Section 1004(a) of the 
        Oil Pollution Act of 1990 (33 U.S.C. 2704(a)) is amended--
                    (A) in paragraph (2), by striking ``,,'' and 
                inserting a comma; and
                    (B) by striking paragraph (3) and inserting the 
                following:
            ``(3) for an offshore facility (except a deepwater port) 
        covered by an Outer Continental Shelf lease--
                    ``(A) if the lease was issued prior to the date of 
                enactment of the Oil Spill Response Improvement Act of 
                2010, the total of all removal costs plus $75,000,000; 
                and
                    ``(B) if the lease was issued on or after the date 
                of enactment of the Oil Spill Response Improvement Act 
                of 2010, the total of all removal costs plus the limit 
                for strict liability for damages for that offshore 
                facility established by the President under subsection 
                (e); and''.
            (2) Exceptions.--Section 6002(b) of the Oil Pollution Act 
        of 1990 (33 U.S.C. 2752(b)) is amended in the first sentence by 
        inserting ``1004(f),'' after ``sections''.

SEC. 202. ADVANCE PAYMENT.

    Section 1012 of the Oil Pollution Act of 1990 (33 U.S.C. 2712) is 
amended by adding at the end the following:
    ``(l) Advance Payments.--The President shall promulgate regulations 
that allow advance payments to be made from the Fund to States and 
political subdivisions of States for actions taken to prepare for and 
mitigate substantial threats from the discharge of oil.''.

                PART II--OIL SPILL LIABILITY TRUST FUND

SEC. 211. RATE OF TAX FOR OIL SPILL LIABILITY TRUST FUND.

    (a) In General.--Section 4611 of the Internal Revenue Code of 1986 
(relating to the imposition of tax) is amended--
            (1) in subsection (c), by adding at the end the following 
        new paragraph:
            ``(3) Adjustments to temporary suspension of oil spill 
        liability trust fund financing rate.--In the case of any 
        calendar quarter in which the Secretary estimates that, as of 
        the close of the previous quarter, the unobligated balance in 
        the Oil Spill Liability Trust Fund is greater than 
        $10,000,000,000, the Oil Spill Liability Trust Fund financing 
        shall be 0 cents a barrel.''; and
            (2) by striking subsection (f).
    (b) Effective Date.--The amendments made by this section shall 
apply on and after the first day of the first calendar quarter after 
the date of enactment of this Act.
    (c) New Revenues to the Oil Spill Liability Trust Fund.--
Notwithstanding section 3302 of title 31, United States Code, the 
revenue resulting from any increase in the Oil Spill Liability Trust 
Fund financing rate under this section or the amendments made by this 
section shall--
            (1) be credited only as offsetting collections for the Oil 
        Spill Liability Trust Fund;
            (2) be available for expenditure only for purposes of the 
        Oil Spill Liability Trust Fund; and
            (3) remain available until expended.

SEC. 212. LIMITATIONS ON EXPENDITURES AND BORROWING AUTHORITY.

    (a) Limitations on Expenditures.--Section 9509(c) of the Internal 
Revenue Code of 1986 (relating to expenditures from the Oil Spill 
Liability Trust Fund) is amended--
            (1) by striking paragraph (2);
            (2) by striking ``Expenditures'' in the subsection heading 
        and all that follows through ``Amounts in'' in paragraph (1) 
        and inserting ``Expenditures.--Amounts in''; and
            (3) by redesignating subparagraphs (A) through (F) as 
        paragraphs (1) through (6), respectively, and indenting 
        appropriately.
    (b) Authority To Borrow.--Section 9509(d) of the Internal Revenue 
Code of 1986 (relating to authority to borrow from the Oil Spill 
Liability Trust Fund) is amended--
            (1) in paragraph (2), by striking ``$1,000,000,000'' and 
        inserting ``$10,000,000,000''; and
            (2) in paragraph (3)--
                    (A) by striking subparagraph (B); and
                    (B) by redesignating subparagraph (C) as 
                subparagraph (B).

                 Subtitle B--Federal Oil Spill Research

SEC. 221. DEFINITIONS.

    In this subtitle:
            (1) Commandant.--The term ``Commandant'' means the 
        Commandant of the Coast Guard.
            (2) Program.--The term ``program'' means the program for 
        oil spill response established pursuant to section 230.

SEC. 222. FEDERAL OIL SPILL RESEARCH.

    (a) In General.--Title VII of the Oil Pollution Act of 1990 is 
amended--
            (1) by inserting before section 7001 (33 U.S.C. 2761) the 
        following:

``SEC. 7000. DEFINITIONS.

    ``In this title:
            ``(1) Assessment.--The term `assessment' means the research 
        assessment on the status of the oil spill prevention and 
        response capabilities conducted under section 7004.
            ``(2) Committee.--The term `Committee' means the 
        Interagency Committee established under section 7001.
            ``(3) Plan.--The term `plan' means the Federal oil spill 
        research plan developed under section 7005.
            ``(4) Program.--The term `program' means the Federal oil 
        spill research program established under section 7003.'';
            (2) by redesignating section 7002 (33 U.S.C. 2762) as 
        section 7009;
            (3) in section 7001 (33 U.S.C. 2761), by striking 
        subsections (b) through (e) and inserting the following:
    ``(b) Regional Subcommittees.--
            ``(1) In general.--The Committee shall establish--
                    ``(A) a regional subcommittee for each of the Gulf 
                of Mexico and Arctic regions of the United States; and
                    ``(B) such other regional subcommittees as the 
                Committee determines to be necessary.
            ``(2) Coordination.--In accordance with the program, each 
        regional subcommittee established under this subsection shall 
        coordinate with the Committee and other relevant State, 
        national, and international bodies with expertise in the region 
        to research and develop technologies for use in the prevention, 
        detection, recovery, mitigation, and evaluation of effects of 
        incidents in the regional environment.''; and
            (4) by inserting after section 7001 (33 U.S.C. 2761) the 
        following:

``SEC. 7002. FUNCTIONS OF THE COMMITTEE.

    ``The Committee shall--
            ``(1) coordinate a comprehensive Federal oil spill research 
        and development program in accordance with section 7003 to 
        coordinate oil pollution research, technology development, and 
        demonstration among the Federal agencies, in cooperation and 
        coordination with industry, institutions of higher education, 
        research institutions, State and tribal governments, and other 
        relevant stakeholders;
            ``(2) conduct a research assessment on the status of the 
        oil spill prevention and response capabilities in accordance 
        with section 7004; and
            ``(3) develop a Federal oil spill research plan in 
        accordance with section 7005.

``SEC. 7003. FEDERAL OIL SPILL RESEARCH PROGRAM.

    ``(a) In General.--The Committee shall establish a program for 
conducting oil pollution research, development, and demonstration.
    ``(b) Program Elements.--The program established under subsection 
(a) shall provide for research, development, and demonstration 
technologies, practices, and procedures that provide for effective and 
direct response to prevent, detect, recover, or mitigate oil 
discharges, including--
            ``(1) new technologies to detect accidental or intentional 
        overboard oil discharges;
            ``(2) models and monitoring capabilities to predict the 
        transport and fate of oil, including trajectory and behavior 
        predictions due to location, weather patterns, hydrographic 
        data, and water conditions, including Arctic sea ice 
        environments;
            ``(3) containment and well-control capabilities, including 
        drilling of relief wells, containment structures, and injection 
        technologies;
            ``(4) response capabilities, such as improved dispersants, 
        biological treatment methods, booms, oil skimmers, containment 
        vessels, and offshore and onshore storage capacity;
            ``(5) research and training, in coordination with the 
        National Response Team, to improve the removal of oil discharge 
        quickly and effectively;
            ``(6) decision support systems for contingency planning and 
        response;
            ``(7) improvement of options for oily or oiled waste 
        dispersal;
            ``(8) technologies, methods, and standards for use in 
        protecting personnel and for volunteers that may participate in 
        incident responses, including--
                    ``(A) training;
                    ``(B) adequate supervision;
                    ``(C) protective equipment;
                    ``(D) maximum exposure limits; and
                    ``(E) decontamination procedures; and
            ``(9) technologies and methods to prevent, detect, recover, 
        and mitigate oil discharges in polar environments.
    ``(c) Study of Environmental Effects of Response Techniques.--
Notwithstanding any other provision of law, the Coast Guard shall 
conduct reasonable environmental studies of oil discharge prevention or 
mitigation technologies, including the use of small quantities of oil 
for testing of in situ burning, chemical dispersants, and herding 
agents, upon and within navigable waters of the United States, if the 
Coast Guard, in consultation with the Committee, determines that the 
information to be obtained cannot be adequately obtained through a 
laboratory or simulated experiment.

``SEC. 7004. FEDERAL RESEARCH ASSESSMENT.

    ``Not later than 1 year after the date of enactment of Oil Spill 
Response Improvement Act of 2010, the Committee shall submit to 
Congress an assessment of the status of oil spill prevention and 
response capabilities that--
            ``(1) identifies research programs conducted and 
        technologies developed by governments, institutions of higher 
        education, and industry;
            ``(2) assesses the status of knowledge on oil pollution 
        prevention, response, and mitigation technologies;
            ``(3) identifies regional oil pollution research needs and 
        priorities for a coordinated program of research at the 
        regional level developed in consultation with State, local, and 
        tribal governments;
            ``(4) assesses the status of spill response equipment and 
        determines areas in need of improvement, including quantity, 
        age, quality, effectiveness, or necessary technological 
        improvements;
            ``(5) assesses the status of real-time data available to 
        mariners, researchers, and responders, including weather, 
        hydrographic, and water condition data, and the impact of 
        incomplete and inaccessible data on preventing, detecting, or 
        mitigating oil discharges; and
            ``(6) is subject to a 90-day public comment period and 
        addresses suggestions received and incorporates public input 
        received, as appropriate.

``SEC. 7005. FEDERAL INTERAGENCY RESEARCH PLAN.

    ``(a) In General.--
            ``(1) Plan.--Not later than 60 days after the date on which 
        the President submits to Congress, pursuant to section 1105 of 
        title 31, United States Code, a budget for fiscal year 2012, 
        and for each fiscal year thereafter, the Committee shall submit 
        to Congress a plan that establishes the priorities for Federal 
        oil spill research and development.
            ``(2) Recommendations.--In the development of the plan, the 
        Committee shall consider recommendations by the National 
        Academy of Sciences and information from State, local, and 
        tribal governments.
    ``(b) Plan Requirements.--The plan shall--
            ``(1) make recommendations to improve technologies and 
        practices to prevent oil spills;
            ``(2) suggest changes to the program to improve the rates 
        of oil recovery and spill mitigation;
            ``(3) make recommendations to improve technologies, 
        practices, and procedures to provide for effective and direct 
        response to oil spills;
            ``(4) make recommendations to improve the quality of real-
        time data available to mariners, researchers, and responders; 
        and
            ``(5) be subject to a 90-day public comment period and 
        address suggestions received and incorporate public input 
        received, as appropriate.

``SEC. 7006. EXTRAMURAL GRANTS.

    ``(a) In General.--In carrying out the program, the Committee 
shall--
            ``(1) award competitive grants to institutions of higher 
        education or other research institutions to carry out 
        projects--
                    ``(A) to advance research and development; and
                    ``(B) to demonstrate technologies for preventing, 
                detecting, or mitigating oil discharges that are 
                relevant to the goals and priorities of the plan; and
            ``(2) incorporate a competitive, merit-based process for 
        awarding grants that may be conducted jointly with other 
        participating agencies.
    ``(b) Regional Research Program.--
            ``(1) Definition of region.--In this subsection, the term 
        `region' means a Coast Guard district as described in part 3 of 
        subchapter A of chapter I of title 33, Code of Federal 
        Regulations (1989).
            ``(2) Program.--Consistent with the program, the Committee 
        shall coordinate the provision of competitive grants to 
        institutions of higher education or other research institutions 
        (or groups of those institutions) for the purpose of conducting 
        a coordinated research program relating to the aspects of oil 
        pollution with respect to each region, including research on 
        such matters as--
                    ``(A) prevention;
                    ``(B) removal mitigation; and
                    ``(C) the effects of discharged oil on regional 
                environments.
            ``(3) Publication.--
                    ``(A) In general.--The Committee shall coordinate 
                the publication by the agencies represented on the 
                Committee of a solicitation for grants under this 
                subsection.
                    ``(B) Form and content.--The application for a 
                grant under this subsection shall be in such form and 
                contain such information as shall be required in the 
                published solicitation.
                    ``(C) Review of applications.--Each application for 
                a grant under this subsection shall be--
                            ``(i) reviewed by the Committee; and
                            ``(ii) at the option of the Committee, 
                        included among applications recommended by the 
                        Committee for approval in accordance with 
                        paragraph (5).
                    ``(D) Provision of grants.--
                            ``(i) In general.--A granting agency 
                        represented on the Committee shall provide the 
                        grants recommended by the Committee unless the 
                        granting agency--
                                    ``(I) decides not to provide the 
                                grant due to budgetary or other 
                                compelling considerations; and
                                    ``(II) publishes in the Federal 
                                Register the reasons for such a 
                                determination.
                            ``(ii) Funds for grants.--No grants may be 
                        provided by any agency under this subsection 
                        from any funds authorized to carry out this 
                        paragraph unless the grant award has first been 
                        recommended by the Committee under subparagraph 
                        (C)(ii).
            ``(4) Eligible applicants.--
                    ``(A) In general.--Any institution of higher 
                education or other research institution (or a group of 
                those institutions) may apply for a grant for the 
                regional research program established under this 
                subsection.
                    ``(B) Location of applicant.--An applicant 
                described in subparagraph (A) shall be located in the 
                region, or in a State a part of which is in the region, 
                for which the project covered by the grant application 
                is proposed to be carried out as part of the regional 
                research program.
                    ``(C) Group applications.--With respect to an 
                application described in subparagraph (A) from a group 
                of institutions referred to in that subparagraph, the 1 
                or more entities that will carry out the substantial 
                portion of the proposed project covered by the grant 
                shall be located in the region, or in a State a part of 
                which is in the region, for which the project is 
                proposed as part of the regional research program.
            ``(5) Recommendations.--
                    ``(A) In general.--The Committee shall make 
                recommendations on grants in such a manner as to ensure 
                an appropriate balance within a region among the 
                various aspects of oil pollution research, including--
                            ``(i) prevention;
                            ``(ii) removal;
                            ``(iii) mitigation; and
                            ``(iv) the effects of discharged oil on 
                        regional environments.
                    ``(B) Additional criteria.--In addition to the 
                requirements described in subparagraph (A), the 
                Committee shall make recommendations for the approval 
                of grants based on whether--
                            ``(i) there are available to the applicant 
                        for use in carrying out this paragraph 
                        demonstrated research resources;
                            ``(ii) the applicant demonstrates the 
                        capability of making a significant contribution 
                        to regional research needs; and
                            ``(iii) the projects that the applicant 
                        proposes to carry out under the grant--
                                    ``(I) are consistent with the plan 
                                under section 7005; and
                                    ``(II) would further the objectives 
                                of the program established under 
                                section 7003.
            ``(6) Term of grants; review; cost-sharing.--A grant 
        provided under this subsection shall--
                    ``(A) be for a period of up to 3 years;
                    ``(B) be subject to annual review by the granting 
                agency; and
                    ``(C) provide not more than 80 percent of the costs 
                of the research activities carried out in connection 
                with the grant.
            ``(7) Prohibition on use of grant funds.--No funds made 
        available to carry out this subsection may be used for--
                    ``(A) the acquisition of real property (including 
                buildings); or
                    ``(B) the construction of any building.
            ``(8) Effect on other authority.--Nothing in this paragraph 
        alters or abridges the authority under existing law of any 
        Federal agency to provide grants, or enter into contracts or 
        cooperative agreements, using funds other than those authorized 
        in this Act for the purpose of carrying out this subsection.
            ``(9) Funding.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), for each of fiscal years 2011 through 
                2015, not less than $32,000,000 of amounts in the Fund 
                shall be available to carry out the regional research 
                program under this subsection, to be available in equal 
                amounts for the regional research program in each 
                region.
                    ``(B) Additional grants.--If the agencies 
                represented on the Committee determine that regional 
                research needs exist that cannot be addressed by the 
                amount of funds made available under subparagraph (A), 
                the agencies may use authority under subsection (a) to 
                make additional grants to meet those needs.

``SEC. 7007. ANNUAL REPORT.

    ``Concurrent with the submission of the Federal interagency 
research plan pursuant to section 7005, the Committee shall submit to 
Congress an annual report that describes the activities and results of 
the program during the previous fiscal year and described the 
objectives of the program for the next fiscal year.

``SEC. 7008. FUNDING.

    ``(a) In General.--Of the amounts in the Fund for each fiscal year, 
not more than $50,000,000 shall be available to carry out this section 
(other than section 7006(b)) for the fiscal year.
    ``(b) Appropriations.--All activities authorized under this title, 
including under section 7006(b), shall be subject to the availability 
of appropriations.''.

SEC. 223. NATIONAL ACADEMY OF SCIENCE PARTICIPATION.

    The Commandant shall enter into an arrangement with the National 
Academy of Sciences under which the Academy shall--
            (1) not later than 1 year after the date of enactment of 
        this Act, assess and evaluate the status of Federal oil spill 
        research and development as of the day before the date of 
        enactment of this Act;
            (2) submit to Congress and the Federal Oil Spill Research 
        Committee established under section 7002 of the Oil Pollution 
        Act of 1990 a report evaluating the conclusions and 
        recommendations from the Federal research assessment under 
        section 7004 of that Act to be used in the development of the 
        Federal oil spill research plan under section 7005 of that Act; 
        and
            (3) not later than 1 year after the Federal interagency 
        research plan is submitted to Congress under section 7005 of 
        that Act, evaluate, and report to Congress on, the plan.

SEC. 224. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Use of Funds.--Section 1012(a)(5)(A) of the Oil Pollution Act 
of 1990 (33 U.S.C. 2712(a)(5)(A)) is amended by striking 
``$25,000,000'' and inserting ``$50,000,000''.
    (b) Table of Contents.--The table of contents in section 2 of the 
Oil Pollution Act of 1990 (33 U.S.C. prec. 2701) is amended by striking 
the items relating to sections 7001 and 7002 and inserting the 
following:

``Sec. 7000. Definitions.
``Sec. 7001. Oil pollution research and development program.
``Sec. 7002. Functions of the Committee.
``Sec. 7003. Federal oil spill research program.
``Sec. 7004. Federal research assessment.
``Sec. 7005. Federal interagency research plan.
``Sec. 7006. Extramural grants.
``Sec. 7007. Annual report.
``Sec. 7008. Funding.
``Sec. 7009. Submerged oil program.''.

SEC. 225. OIL SPILL RESPONSE AUTHORITY.

    Notwithstanding any other provision of law, the Incident Commander 
of the Coast Guard may authorize the use of dispersants in response to 
a spill of oil from--
            (1) any facility or vessel located in, on, or under any of 
        the navigable waters of the United States; and
            (2) any facility of any kind that is subject to the 
        jurisdiction of the United States and that is located in, on, 
        or under any other waters.

SEC. 226. MARITIME CENTER OF EXPERTISE.

    (a) In General.--The Commandant shall establish a Maritime Center 
of Expertise for Maritime Oil Spill and Hazardous Substance Release 
Response.
    (b) Duties.--The Center shall--
            (1) serve as the primary Federal facility for Coast Guard 
        personnel to obtain qualifications to perform the duties of a 
        regional response team cochair, a Federal on-scene coordinator, 
        or a Federal on-scene coordinator representative;
            (2) train Federal, State, and local first responders in the 
        incident command system structure, maritime oil spill and 
        hazardous substance release response techniques and strategies, 
        and public affairs;
            (3) work with academic and private sector response training 
        centers to develop and standardize maritime oil spill and 
        hazardous substance release response training and techniques;
            (4) conduct research, development, testing, and 
        demonstration for maritime oil spill and hazardous substance 
        release response equipment, technologies, and techniques to 
        prevent or mitigate maritime oil discharges and hazardous 
        substance releases;
            (5) maintain not less than 2 incident management and 
        assistance teams, 1of which shall be ready to deploy anywhere 
        in the continental United States within 24 hours after an 
        incident or event;
            (6) conduct marine environmental response standardization 
        visits with Coast Guard Federal on-scene coordinators;
            (7) administer and coordinate Coast Guard participation in 
        the National Preparedness for Response Exercise Program; and
            (8) establish and maintain Coast Guard marine environmental 
        response doctrine.

SEC. 227. NATIONAL STRIKE FORCE.

    (a) In General.--The Commandant shall maintain a National Strike 
Force to facilitate preparedness for and response to maritime oil spill 
and hazardous substance release incidents.
    (b) Composition.--The National Strike Force--
            (1) shall consist of--
                    (A) a National Strike Force Coordination Center;
                    (B) strike force teams, including--
                            (i) 1 team for the Atlantic Ocean;
                            (ii) 1 team for the Pacific Ocean; and
                            (iii) 1 team for the Gulf of Mexico; and
                    (C) a public information assist team; and
            (2) may include, on the direction of the Commandant, 1 or 
        more teams for the northwest Pacific Ocean and the Arctic 
        Ocean.
    (c) National Strike Force Coordination Center Duties.--The National 
Strike Force Coordination Center shall--
            (1) provide support and standardization guidance to the 
        regional strike teams;
            (2) maintain a response resource inventory of maritime oil 
        spill and hazardous substance release response, marine salvage, 
        and marine firefighting equipment maintained by certified oil 
        spill response organizations as well as equipment listed in a 
        vessel or facility oil spill response plan, as required by 
        section 311(j) of the Federal Water Pollution Control Act (33 
        U.S.C. 1321(j));
            (3) oversee the maintenance and adequacy of Coast Guard 
        environmental response equipment;
            (4) certify and inspect maritime oil spill response 
        organizations; and
            (5) maintain the National Area Contingency Plan library.
    (d) Strike Force Team Duties.--The Strike Force Response Teams 
shall--
            (1) provide rapid response support in incident management, 
        site safety, contractor performance monitoring, resource 
        documentation, response strategies, hazard assessment, oil 
        spill dispersant, in situ burn and other technologies, 
        prefabrication of containment technology, operational 
        effectiveness monitoring, and high-capacity lightering and 
        offshore skimming capabilities;
            (2) train Coast Guard units in environmental pollution 
        response and incident command systems, test and evaluate 
        pollution response equipment, and operate as liaisons with 
        response agencies within the areas of responsibility of the 
        respective units;
            (3) maintain sufficient maritime oil spill and hazardous 
        substance release assets to ensure the protection of human 
        health and the environment in the event of an oil spill or 
        hazardous substance release, including the prefabrication of 
        oil spill containment equipment; and
            (4) maintain the capability to mobilize personnel and 
        equipment to respond to an oil spill or hazardous substance 
        release anywhere in the continental United States within 24 
        hours of such an event.
    (e) Public Information Assist Team Duties.--The Public Information 
Assist Team shall maintain the capability--
            (1) to provide crisis communication during oil spills, 
        hazardous material releases, marine accidents, and other 
        disasters, including staffing and managing public affairs and 
        intergovernmental communication;
            (2) provide public information and communications training 
        to Federal, State, and local agencies and industry personnel; 
        and
            (3) maintain the capability to mobilize personnel and 
        equipment to respond to an oil spill or hazardous substance 
        release anywhere in the continental United States within 24 
        hours after such an event.

SEC. 228. DISTRICT PREPAREDNESS AND RESPONSE TEAMS.

    The Commandant shall maintain district preparedness response 
teams--
            (1) to maintain Coast Guard environmental response 
        equipment;
            (2) to administer area contingency plans;
            (3) to administer the National Preparedness for Response 
        Exercise Program;
            (4) to conduct responder incident command system training 
        and health and safety training;
            (5) to provide Federal on-scene coordinator technical 
        advice;
            (6) to coordinate district pollution response operations;
            (7) to support regional response team cochairs;
            (8) to coordinate district participation with the regional 
        interagency steering committee of the Federal Emergency 
        Management Agency; and
            (9) to conduct response public affairs and joint 
        information center training.

SEC. 229. OIL SPILL RESPONSE ORGANIZATIONS.

    (a) Requirement.--Each maritime oil spill response organization 
that is listed under an oil spill response plan of a vessel or facility 
regulated by the Coast Guard, as required by section 311(j) of the 
Federal Water Pollution Control Act (33 U.S.C. 1321(j)) shall be--
            (1) certified by the Coast Guard; and
            (2) inspected at least once each year to ensure that the 
        organization has the capabilities to meet the requirements 
        delegated to the organization under applicable oil spill 
        response plans.
    (b) Certification Criteria and Requirements.--Not later than 180 
days after the date of enactment of this Act, the Commandant shall 
develop criteria and requirements for certifying and classifying 
maritime oil spill response organizations.
    (c) Inventory of Maritime Oil Spill Response Equipment.--Each 
certified maritime oil spill response organization and any facility 
regulated by the Coast Guard that is not using a maritime oil spill 
response organization to meet the facility oil spill response plan 
requirements of section 311(j) of the Federal Water Pollution Control 
Act (33 U.S.C. 1321(j)) shall--
            (1) maintain a current list of the maritime oil spill 
        response equipment of the organization or facility; and
            (2) submit a copy of that list to the National Strike Force 
        Coordination Center.
    (d) Decreased Capacity Reports.--If a maritime oil spill response 
organization experiences a decrease in the maritime oil spill response 
assets of the organization, the organization shall report the decrease 
to the National Strike Force Coordination Center and the Captain of the 
Port in which that organization operates.

SEC. 230. PROGRAM FOR OIL SPILL AND HAZARDOUS SUBSTANCE RELEASE 
              RESPONSE.

    (a) Requirement to Establish Program.--The Commandant shall 
establish a program for oil spill and hazardous substance release 
response, within the Maritime Center of Expertise for Oil Spill 
Response, to conduct research, development, testing, and demonstration 
for oil spill and hazardous substance release response equipment, 
technologies, and techniques to prevent or mitigate oil discharges and 
hazardous substance releases.
    (b) Program Elements.--The program under subsection (a) shall 
include--
            (1) research, development, testing, and demonstration of 
        new or improved methods (including the use of dispersants and 
        biological treatment methods) for the containment, recovery, 
        removal, and disposal of oil and hazardous substances;
            (2) assistance for--
                    (A) the development of improved designs for vessel 
                operations (including vessel operations in Arctic 
                waters) and facilities that are regulated by the Coast 
                Guard; and
                    (B) improved operational practices;
            (3) research and training, in consultation with the 
        National Response Team, to improve the ability of private 
        industry and the Federal Government to respond to an oil 
        discharge or a hazardous substance release;
            (4) a list of oil spill and hazardous substance 
        containment, recovery, removal, and disposal technology that is 
        approved for use by the Commandant and is made publicly 
        available, in such manner as is determined to be appropriate by 
        the Commandant; and
            (5) a process for the Federal Government, State and local 
        governments, private industry, academic institutions, and 
        nongovernmental organizations to submit systems, equipment, and 
        technologies for testing and evaluation.
    (c) Grants for Oil Spill Response.--The Commandant shall have the 
authority to make grants to or enter into cooperative agreements with 
academic institutions to conduct research and development for oil spill 
response equipment, technology, and techniques.
    (d) Coordination.--The Commandant shall carry out the program in 
coordination with the Interagency Coordinating Committee on Oil 
Pollution Research established pursuant to section 7001(a) of the Oil 
Pollution Act of 1990 (33 U.S.C. 2761(a)).
    (e) Funding.--The Commandant shall use such sums as are necessary 
to carry out this section for fiscal years 2010 through 2015 from funds 
appropriated to the research, development, and testing program account 
of the Coast Guard for those years.

SEC. 230A. OIL AND HAZARDOUS SUBSTANCE LIABILITY.

    Section 311 of the Federal Water Pollution Control Act (33 U.S.C. 
1321) is amended--
            (1) in subsection (c)(2)(B)--
                    (A) in clause (i), by striking ``and'' at the end;
                    (B) in clause (ii), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
                            ``(iii) immediately deploy cleanup and 
                        mitigation assets owned by the Federal 
                        Government, or provided by private individuals 
                        or entities or foreign countries, to the 
                        location of discharge.''; and
            (2) in subsection (d)(2), by adding at the end the 
        following:
                    ``(N) Establishment of a clear, accountable chain 
                of command throughout the jurisdictions impacted by the 
                discharge.
                    ``(O) Establishment of a system and procedures that 
                ensure coordination with, and prompt response to, State 
                and local officials.''.

                    Subtitle C--Oil and Gas Leasing

SEC. 231. REVENUE SHARING FROM OUTER CONTINENTAL SHELF AREAS IN CERTAIN 
              COASTAL STATES.

    Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1344) is amended by adding at the end the following:
    ``(i) Revenue Sharing From Outer Continental Shelf Areas in Certain 
Coastal States.--
            ``(1) Definitions.--In this subsection through subsection 
        (j):
                    ``(A) Coastal political subdivision.--The term 
                `coastal political subdivision' of a coastal State 
                means a county-equivalent subdivision of a coastal 
                State all or part of which--
                            ``(i) lies within the coastal zone (as 
                        defined in section 304 of the Coastal Zone 
                        Management Act of 1972 (16 U.S.C. 1453)); and
                            ``(ii) the closest point of which is not 
                        more than 300 statute miles from the geographic 
                        center of any leased tract.
                    ``(B) Coastal state.--The term `coastal State' 
                means a State with a coastal seaward boundary within 
                300 statute miles distance of the geographic center of 
                a leased tract in an outer Continental Shelf planning 
                area that--
                            ``(i) as of January 1, 2000, had no oil or 
                        natural gas production; and
                            ``(ii) is not a Gulf producing State (as 
                        defined in section 102 of the Gulf of Mexico 
                        Energy Security Act of 2006 (43 U.S.C. 1331 
                        note; Public Law 109-432)).
                    ``(C) Distance.--The terms `distance' and 
                `distances' mean minimum great circle distance and 
                distances, respectively.
                    ``(D) Leased tract.--The term `leased tract' means 
                a tract leased under this Act for the purpose of 
                drilling for, developing, and producing oil or natural 
                gas resources.
                    ``(E) Outer continental shelf area.--The term 
                `outer Continental Shelf area' means--
                            ``(i) any area withdrawn from disposition 
                        by leasing by the `Memorandum on Withdrawal of 
                        Certain Areas of the United States Outer 
                        Continental Shelf from Leasing Disposition', 
                        from 34 Weekly Comp. Pres. Doc. 1111, dated 
                        June 12, 1998; or
                            ``(ii) any area of the outer Continental 
                        Shelf as to which Congress has denied the use 
                        of appropriated funds or other means for 
                        preleasing, leasing, or related activities.
            ``(2) Post leasing revenues.--If the Governor or the 
        Legislature of a coastal State requests the Secretary to allow 
        leasing in an outer Continental Shelf area and the Secretary 
        allows the leasing, in addition to any bonus bids, the coastal 
        State shall, without further appropriation or action, receive, 
        from leasing of the area, 37.5 percent of--
                    ``(A) any lease rental payments;
                    ``(B) any lease royalty payments;
                    ``(C) any royalty proceeds from a sale of royalties 
                taken in kind by the Secretary; and
                    ``(D) any other revenues from a bidding system 
                under section 8.
            ``(3) Allocation among coastal political subdivisions of 
        states.--
                    ``(A) In general.--The Secretary shall pay 20 
                percent of the allocable share of each coastal State, 
                as determined under this subsection, directly to 
                certain coastal political subdivisions of the coastal 
                State.
                    ``(B) Allocation.--
                            ``(i) In general.--For each leased tract 
                        used to calculate the allocation of a coastal 
                        State, the Secretary shall pay the coastal 
                        political subdivisions within 300 miles of the 
                        geographic center of the leased tract based on 
                        the relative distance of such coastal political 
                        subdivisions from the leased tract in 
                        accordance with this subparagraph.
                            ``(ii) Distances.--For each coastal 
                        political subdivision described in clause (i), 
                        the Secretary shall determine the distance 
                        between the point on the coastal political 
                        subdivision coastline closest to the geographic 
                        center of the leased tract and the geographic 
                        center of the tract.
                            ``(iii) Payments.--The Secretary shall 
                        divide and allocate the qualified outer 
                        Continental Shelf revenues derived from the 
                        leased tract among coastal political 
                        subdivisions described in clause (i) in amounts 
                        that are inversely proportional to the 
                        applicable distances determined under clause 
                        (ii).
            ``(4) Conservation royalty.--After making distributions 
        under paragraphs (1) and (2) and section 31, the Secretary 
        shall, without further appropriation or action, distribute a 
        conservation royalty equal to 12.5 percent of Federal royalty 
        revenues derived from an area leased under this section from 
        all areas leased under this section for any year, into the land 
        and water conservation fund established under section 2 of the 
        Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-5) 
        to provide financial assistance to States under section 6 of 
        that Act (16 U.S.C. 460l-8).
            ``(5) Deficit reduction.--
                    ``(A) In general.--After making distributions in 
                accordance with paragraphs (1) and (2) and in 
                accordance with section 31, the Secretary shall, 
                without further appropriation or action, distribute an 
                amount equal to 50 percent of Federal royalty revenues 
                derived from all areas leased under this section for 
                any year, into direct Federal deficit reduction.
                    ``(B) Budgetary treatment.--Any amounts distributed 
                into direct Federal deficit reduction under this 
                paragraph shall not be included for purposes 
                determining budget levels under section 201 of S. Con. 
                Res. 21 (110th Congress).''.

SEC. 232. REVENUE SHARING FROM AREAS IN ALASKA ADJACENT ZONE.

    Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1344) (as amended by section 231) is amended by adding at the end the 
following:
    ``(j) Revenue Sharing From Areas in Alaska Adjacent Zone.--
            ``(1) In general.--Except as provided in paragraph (2), 
        effective beginning on the date that is 5 years after the date 
        of enactment of this subsection, revenues from production that 
        derives from an area in the Alaska Adjacent Zone shall be 
        distributed in the same proportion and for the same uses as 
        provided in subsection (i).
            ``(2) Allocation among regional corporations.--
                    ``(A) In general.--The Secretary shall pay 33 
                percent of any allocable share of the State of Alaska, 
                as determined under this section, directly to certain 
                Regional Corporations established under section 7(a) of 
                the Alaska Native Claims Settlement Act (43 U.S.C. 
                1606(a)).
                    ``(B) Allocation.--
                            ``(i) In general.--For each leased tract 
                        used to calculate the allocation of the State 
                        of Alaska, the Secretary shall pay the Regional 
                        Corporations, after determining those Native 
                        villages within the region of the Regional 
                        Corporation which are within 300 miles of the 
                        geographic center of the leased tract based on 
                        the relative distance of such villages from the 
                        leased tract, in accordance with this 
                        paragraph.
                            ``(ii) Distances.--For each such village, 
                        the Secretary shall determine the distance 
                        between the point in the village closest to the 
                        geographic center of the leased tract and the 
                        geographic center of the tract.
                            ``(iii) Payments.--The Secretary shall 
                        divide and allocate the qualified outer 
                        Continental Shelf revenues derived from the 
                        leased tract among the qualifying Regional 
                        Corporations in amounts that are inversely 
                        proportional to the distances of all of the 
                        Native villages within each qualifying region.
                            ``(iv) Revenues.--All revenues received by 
                        each Regional Corporation shall be--
                                    ``(I) treated by the Regional 
                                Corporation as revenue subject to the 
                                distribution requirements of section 
                                7(i)(1)(A) of the Alaska Native Claims 
                                Settlement Act (43 U.S.C. 
                                1606(i)(1)(A)); and
                                    ``(II) divided annually by the 
                                Regional Corporation among all 12 
                                Regional Corporations in accordance 
                                with section 7(i) of that Act.
                            ``(v) Further distribution.--A Regional 
                        Corporation receiving revenues under clause 
                        (iv)(II) shall further distribute 50 percent of 
                        the revenues received in accordance with 
                        section 7(j) of the Alaska Native Claims 
                        Settlement Act (43 U.S.C. 1606(j)).''.

SEC. 233. ACCELERATED REVENUE SHARING TO PROMOTE COASTAL RESILIENCY 
              AMONG GULF PRODUCING STATES.

    Section 105 of the Gulf of Mexico Energy Security Act of 2006 (43 
U.S.C. 1331 note; Public Law 109-432) is amended--
            (1) by striking subsection (b) and inserting the following:
    ``(b) Allocation Among Gulf Producing States for Fiscal Years 2010 
and Thereafter.--
            ``(1) In general.--Subject to the provisions of this 
        subsection, for fiscal year 2010 and each fiscal year 
        thereafter, the amount made available under subsection 
        (a)(2)(A) from a covered lease described in paragraph (2) shall 
        be allocated to each Gulf producing State in amounts that are 
        inversely proportional to the respective distances between the 
        point on the coastline of each Gulf producing State that is 
        closest to the geographic center of each historical lease site 
        and the geographic center of the historical lease site, as 
        determined by the Secretary.
            ``(2) Covered lease.--A covered lease referred to in 
        paragraph (1) means a lease entered into for--
                    ``(A) the 2002-2007 planning area;
                    ``(B) the 181 Area; or
                    ``(C) the 180 South Area.
            ``(3) Minimum allocation.--The amount allocated to a Gulf 
        producing State each fiscal year under paragraph (1) shall be 
        at least 10 percent of the amounts available under subsection 
        (a)(2)(A).
            ``(4) Historical lease sites.--
                    ``(A) In general.--Subject to subparagraph (B), for 
                purposes of this subsection, the historical lease sites 
                in the 2002-2007 planning area shall include all leases 
                entered into by the Secretary for an area in the Gulf 
                of Mexico during the period beginning on October 1, 
                1982 (or an earlier date if practicable, as determined 
                by the Secretary), and ending on December 31, 2015.
                    ``(B) Adjustment.--Effective January 1, 2022, and 
                every 5 years thereafter, the ending date described in 
                subparagraph (A) shall be extended for an additional 5 
                calendar years.
            ``(5) Payments to coastal political subdivisions.--
                    ``(A) In general.--The Secretary shall pay 20 
                percent of the allocable share of each Gulf producing 
                State, as determined under paragraphs (1) and (3), to 
                the coastal political subdivisions of the Gulf 
                producing State.
                    ``(B) Allocation.--The amount paid by the Secretary 
                to coastal political subdivisions shall be allocated to 
                each coastal political subdivision in accordance with 
                subparagraphs (B), (C), and (E) of section 31(b)(4) of 
                the Outer Continental Shelf Lands Act (43 U.S.C. 
                1356a(b)(4)).''; and
            (2) by striking subsection (f).

SEC. 234. COASTAL IMPACT ASSISTANCE PROGRAM AMENDMENTS.

    Section 31(c) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1356a(c)) is amended by adding at the end the following:
            ``(5) Application requirements; availability of funding.--
        On approval of a State plan under this section, the Secretary 
        shall--
                    ``(A) immediately disburse payments allocated under 
                this section to the State or political subdivision; and
                    ``(B) other than requiring notification to the 
                Secretary of the projects being carried out under the 
                State plan, not subject a State or political 
                subdivision to any additional requirements, including 
                application requirements, to receive payments under 
                this section.''.

SEC. 235. PRODUCTION OF OIL FROM CERTAIN ARCTIC OFFSHORE LEASES.

    Section 5 of the Outer Continental Shelf Lands Act (43 U.S.C. 1334) 
is amended by adding at the end the following:
    ``(k) Oil Transportation in Arctic Waters.--The Secretary shall--
            ``(1) require that oil produced from Federal leases in 
        Arctic waters in the Chukchi Sea planning area, Beaufort Sea 
        planning area, or Hope Basin planning area be transported by 
        pipeline to the Trans-Alaska Pipeline System; and
            ``(2) provide for, and issue appropriate permits for, the 
        transportation of oil from Federal leases in Arctic waters in 
        preproduction phases (including exploration) by means other 
        than pipeline.''.

SEC. 236. USE OF STIMULUS FUNDS TO OFFSET SPENDING.

    (a) In General.--The unobligated balance of each amount 
appropriated or made available under the American Recovery and 
Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 115) (other than 
under title X of division A of that Act) is rescinded, on a pro rata 
basis, by an aggregate amount that equals the amounts necessary to 
offset any net increase in spending or foregone revenues resulting from 
this subtitle and the amendments made by this subtitle.
    (b) Report.--The Director of the Office of Management and Budget 
shall submit to each congressional committee the amounts rescinded 
under subsection (a) that are within the jurisdiction of the committee.

 TITLE III--GUIDANCE ON MORATORIUM ON OUTER CONTINENTAL SHELF DRILLING

SEC. 301. LIMITATION OF MORATORIUM ON CERTAIN PERMITTING AND DRILLING 
              ACTIVITIES.

    (a) In General.--The moratorium set forth in the decision 
memorandum of the Secretary of the Interior entitled ``Decision 
memorandum regarding the suspension of certain offshore permitting and 
drilling activities on the Outer Continental Shelf'' and dated July 12, 
2010, and any suspension of operations issued in connection with the 
moratorium, shall not apply to an applicant for a permit to drill if 
the Secretary determines that the applicant--
            (1) has complied with the notice entitled ``National Notice 
        to Lessees and Operators of Federal Oil and Gas Leases, Outer 
        Continental Shelf (OCS)'' dated June 8, 2010 (NTL No. 2010-N05) 
        and the notice entitled ``National Notice to Lessees and 
        Operators of Federal Oil and Gas Leases, Outer Continental 
        Shelf (OCS)'' dated June 18, 2010 (NTL No. 2010-N06); and
            (2) has completed all required safety inspections.
    (b) Determination on Permit.--Not later than 30 days after the date 
on which the Secretary makes a determination that an applicant has 
complied with paragraphs (1) and (2) of subsection (a), the Secretary 
shall make a determination on whether to issue the permit.
    (c) No Suspension of Consideration.--No Federal entity shall 
suspend the active consideration of, or preparatory work for, permits 
required to resume or advance activities suspended in connection with 
the moratorium.

SEC. 302. DEEPWATER HORIZON INCIDENT.

    Not later than 60 days after the date of enactment of this Act, the 
Secretary shall develop, and expeditiously begin implementation of, a 
plan to ensure that onshore oil and natural gas development on Federal 
land would provide full energy resource compensation for offshore oil 
and natural gas resources not being developed and Federal revenues not 
being generated for the benefit of the United States Treasury during 
such time as any offshore moratorium is in place in response to the 
incident involving the mobile offshore drilling unit Deepwater Horizon.
                                                       Calendar No. 483

111th CONGRESS

  2d Session

                                S. 3643

_______________________________________________________________________

                                 A BILL

To amend the Outer Continental Shelf Lands Act to reform the management 
  of energy and mineral resources on the Outer Continental Shelf, to 
    improve oil spill compensation, to terminate the moratorium on 
              deepwater drilling, and for other purposes.

_______________________________________________________________________

                             July 26, 2010

             Read the second time and place on the calendar