[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3404 Reported in House (RH)]

                                                 Union Calendar No. 436
112th CONGRESS
   2d Session
                                H. R. 3404

                          [Report No. 112-601]

 To establish in the Department of the Interior an Under Secretary for 
  Energy, Lands, and Minerals and a Bureau of Ocean Energy, an Ocean 
Energy Safety Service, and an Office of Natural Resources Revenue, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 14, 2011

  Mr. Hastings of Washington introduced the following bill; which was 
             referred to the Committee on Natural Resources

                             July 17, 2012

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
    [For text of introduced bill, see copy of bill as introduced on 
                           November 14, 2011]


_______________________________________________________________________

                                 A BILL


 
 To establish in the Department of the Interior an Under Secretary for 
  Energy, Lands, and Minerals and a Bureau of Ocean Energy, an Ocean 
Energy Safety Service, and an Office of Natural Resources Revenue, 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. ESTABLISHMENT OF UNDER SECRETARY FOR ENERGY, LANDS, AND 
              MINERALS AND ASSISTANT SECRETARY OF OCEAN ENERGY AND 
              SAFETY.

    There shall be in the Department of the Interior--
            (1) an Under Secretary for Energy, Lands, and Minerals, who 
        shall--
                    (A) be appointed by the President, by and with the 
                advise and consent of the Senate;
                    (B) report to the Secretary of the Interior, or to 
                the Deputy Secretary of the Interior if ordered by the 
                Secretary;
                    (C) be paid at the rate payable for level III of 
                the Executive Schedule; and
                    (D) be responsible for--
                            (i) the safe and responsible development of 
                        our energy and mineral resources on Federal 
                        lands in appropriate accordance with United 
                        States energy demands, including administration 
                        of the Office of Surface Mining and the Bureau 
                        of Land Management as separate, independent 
                        agencies of the Department under the Assistant 
                        Secretary of Land and Minerals Management; and
                            (ii) ensuring multiple-use missions of the 
                        Department of the Interior that promote the 
                        safe and sustained development of energy and 
                        minerals resources on public lands (as that 
                        term is defined in the Federal Land Policy and 
                        Management Act of 1976 (43 U.S.C. 1701 et 
                        seq.));
            (2) an Assistant Secretary of Ocean Energy and Safety, who 
        shall--
                    (A) be appointed by the President, by and with the 
                advise and consent of the Senate;
                    (B) report to the Under Secretary for Energy, 
                Lands, and Minerals;
                    (C) be paid at the rate payable for level IV of the 
                Executive Schedule; and
                    (D) be responsible for ensuring safe and efficient 
                development of energy and minerals on the Outer 
                Continental Shelf of the United States; and
            (3) an Assistant Secretary of Land and Minerals Management, 
        who shall--
                    (A) be appointed by the President, by and with the 
                advise and consent of the Senate;
                    (B) report to the Under Secretary for Energy, 
                Lands, and Minerals;
                    (C) be paid at the rate payable for level IV of the 
                Executive Schedule; and
                    (D) be responsible for ensuring safe and efficient 
                development of energy and minerals on public lands and 
                other Federal onshore lands under the jurisdiction of 
                the Department of the Interior, including 
                implementation of the Mineral Leasing Act (30 U.S.C. 
                181 et seq.) and the Surface Mining Control and 
                Reclamation Act (30 U.S.C. 1201 et seq.) and 
                administration of the Office of Surface Mining.

SEC. 2. BUREAU OF OCEAN ENERGY.

    (a) Establishment.--There is established in the Department of the 
Interior a Bureau of Ocean Energy (referred to in this section as the 
``Bureau''), which shall--
            (1) be headed by a Director of Ocean Energy (referred to in 
        this section as the ``Director''); and
            (2) be administered under the direction of the Assistant 
        Secretary of Ocean Energy and Safety.
    (b) Director.--
            (1) Appointment.--The Director shall be appointed by the 
        Secretary of the Interior.
            (2) 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.
    (c) Duties.--
            (1) In general.--The Secretary of the Interior shall carry 
        out through the Bureau all functions, powers, and duties vested 
        in the Secretary relating to the administration of a 
        comprehensive program of offshore mineral and renewable energy 
        resources management.
            (2) Specific authorities.--The Director shall promulgate 
        and implement regulations--
                    (A) for the proper issuance of leases for the 
                exploration, development, and production of 
                nonrenewable and renewable energy and mineral resources 
                on the Outer Continental Shelf;
                    (B) relating to resource identification, access, 
                evaluation, and utilization;
                    (C) for development of leasing plans, lease sales, 
                and issuance of leases for such resources;
                    (D) regarding issuance of environmental impact 
                statements related to leasing and post leasing 
                activities including exploration, development, and 
                production, and the use of third party contracting for 
                necessary environmental analysis for the development of 
                such resources; and
                    (E) for the processing of exploration plans and 
                development plans.
            (3) Limitation.--The Secretary shall not carry out through 
        the Bureau any function, power, or duty that is--
                    (A) required by section 3 to be carried out through 
                the Ocean Energy Safety Service; or
                    (B) required by section 4 to be carried out through 
                the Office of Natural Resources Revenue.
    (d) Responsibilities of Land Management Agencies.--Nothing in this 
section shall affect the authorities of the Bureau of Land Management 
under the Federal Land Policy and Management Act of 1976 (43 U.S.C. 
1701 et seq.) or of the Forest Service under the National Forest 
Management Act of 1976 (Public Law 94-588).

SEC. 3. OCEAN ENERGY SAFETY SERVICE.

    (a) Establishment.--There is established in the Department of the 
Interior an Ocean Energy Safety Service (referred to in this section as 
the ``Service''), which shall--
            (1) be headed by a Director of Energy Safety (referred to 
        in this section as the ``Director''); and
            (2) be administered under the direction of the Assistant 
        Secretary of Ocean Energy and Safety.
    (b) Director.--
            (1) Appointment.--The Director shall be appointed by the 
        Secretary of the Interior.
            (2) 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.
    (c) Duties.--
            (1) In general.--The Secretary of the Interior shall carry 
        out through the Service all functions, powers, and duties 
        vested in the Secretary relating to the administration of 
        safety and environmental enforcement activities related to 
        offshore mineral and renewable energy resources on the Outer 
        Continental Shelf pursuant to the Outer Continental Shelf Lands 
        Act (43 U.S.C. 1331 et seq.) including the authority to 
        develop, promulgate, and enforce regulations to ensure the safe 
        and sound exploration, development, and production of mineral 
        and renewable energy resources on the Outer Continental Shelf 
        in a timely fashion.
            (2) Specific authorities.--The Director shall be 
        responsible for all safety activities related to exploration 
        and development of renewable and mineral resources on the Outer 
        Continental Shelf, including--
                    (A) exploration, development, production, and 
                ongoing inspections of infrastructure;
                    (B) the suspending or prohibiting, on a temporary 
                basis, any operation or activity, including production 
                under leases held on the Outer Continental Shelf, in 
                accordance with section 5(a)(1) of the Outer 
                Continental Shelf Lands Act (43 U.S.C. 1334(a)(1));
                    (C) cancelling any lease, permit, or right-of-way 
                on the Outer Continental Shelf, in accordance with 
                section 5(a)(2) of the Outer Continental Shelf Lands 
                Act (43 U.S.C. 1334(a)(2));
                    (D) compelling compliance with applicable Federal 
                laws and regulations relating to worker safety and 
                other matters;
                    (E) requiring comprehensive safety and 
                environmental management programs for persons engaged 
                in activities connected with the exploration, 
                development, and production of mineral or renewable 
                energy resources;
                    (F) developing and implementing regulations for 
                Federal employees to carry out any inspection or 
                investigation to ascertain compliance with applicable 
                regulations, including health, safety, or environmental 
                regulations;
                    (G) implementing the Offshore Technology Research 
                and Risk Assessment Program under section 21 of the 
                Outer Continental Shelf Lands Act (43 U.S.C. 1347);
                    (H) summoning witnesses and directing the 
                production of evidence;
                    (I) levying fines and penalties and disqualifying 
                operators;
                    (J) carrying out any safety, response, and removal 
                preparedness functions; and
                    (K) the processing of permits.
    (d) Employees.--
            (1) In general.--The Secretary shall ensure that the 
        inspection force of the Bureau consists of qualified, trained 
        employees who meet qualification requirements and adhere to the 
        highest professional and ethical standards.
            (2) Qualifications.--The qualification requirements 
        referred to in paragraph (1)--
                    (A) shall be determined by the Secretary, subject 
                to subparagraph (B); and
                    (B) shall include--
                            (i) three years of practical experience in 
                        oil and gas exploration, development, or 
                        production; or
                            (ii) a degree in an appropriate field of 
                        engineering from an accredited institution of 
                        higher learning.
            (3) Assignment.--In assigning oil and gas inspectors to the 
        inspection and investigation of individual operations, the 
        Secretary shall give due consideration to the extent possible 
        to their previous experience in the particular type of oil and 
        gas operation in which such inspections are to be made.
            (4) Background checks.--The Director shall require that an 
        individual to be hired as an inspection officer undergo an 
        employment investigation (including a criminal history record 
        check).
            (5) Language requirements.--Individuals hired as inspectors 
        must be able to read, speak, and write English well enough to--
                    (A) carry out written and oral instructions 
                regarding the proper performance of inspection duties; 
                and
                    (B) write inspection reports and statements and log 
                entries in the English language.
            (6) Annual proficiency review.--
                    (A) Annual proficiency review.--The Director shall 
                provide that an annual evaluation of each individual 
                assigned inspection duties is conducted and documented.
                    (B) Continuation of employment.--An individual 
                employed as an inspector may not continue to be 
                employed in that capacity unless the evaluation 
                demonstrates that the individual--
                            (i) continues to meet all qualifications 
                        and standards;
                            (ii) has a satisfactory record of 
                        performance and attention to duty based on the 
                        standards and requirements in the inspection 
                        program; and
                            (iii) demonstrates the current knowledge 
                        and skills necessary to courteously, 
                        vigilantly, and effectively perform Inspection 
                        functions.
            (7) Limitation on right to strike.--Any individual that 
        conducts permitting or inspections under this section may not 
        participate in a strike, or assert the right to strike.
            (8) Personnel authority.--Notwithstanding any other 
        provision of law, the Director may employ, appoint, discipline 
        and terminate for cause, and fix the compensation, terms, and 
        conditions of employment of Federal service for individuals as 
        the employees of the Service in order to restore and maintain 
        the trust of the people of the United States in the 
        accountability of the management of our Nation's energy safety 
        program.
            (9) Training academy.--
                    (A) In general.--The Secretary shall establish and 
                maintain a National Offshore Energy Health and Safety 
                Academy (referred to in this paragraph as the 
                ``Academy'') as an agency of the Ocean Energy Safety 
                Service.
                    (B) Functions of academy.--The Secretary, through 
                the Academy, shall be responsible for--
                            (i) the initial and continued training of 
                        both newly hired and experienced offshore oil 
                        and gas inspectors in all aspects of health, 
                        safety, environmental, and operational 
                        inspections;
                            (ii) the training of technical support 
                        personnel of the Bureau;
                            (iii) any other training programs for 
                        offshore oil and gas inspectors, Bureau 
                        personnel, Department personnel, or other 
                        persons as the Secretary shall designate; and
                            (iv) certification of the successful 
                        completion of training programs for newly hired 
                        and experienced offshore oil and gas 
                        inspectors.
                    (C) Cooperative agreements.--
                            (i) In general.--In performing functions 
                        under this paragraph, and subject to clause 
                        (ii), the Secretary may enter into cooperative 
                        educational and training agreements with 
                        educational institutions, related Federal 
                        academies, other Federal agencies, State 
                        governments, safety training firms, and oil and 
                        gas operators and related industries.
                            (ii) Training requirement.--Such training 
                        shall be conducted by the Academy in accordance 
                        with curriculum needs and assignment of 
                        instructional personnel established by the 
                        Secretary.
            (10) Use of department personnel.--In performing functions 
        under this subsection, the Secretary shall use, to the extent 
        practicable, the facilities and personnel of the Department of 
        the Interior. The Secretary may appoint or assign to the 
        Academy such officers and employees as the Secretary considers 
        necessary for the performance of the duties and functions of 
        the Academy.
            (11) Additional training programs.--
                    (A) In general.--The Secretary shall work with 
                appropriate educational institutions, operators, and 
                representatives of oil and gas workers to develop and 
                maintain adequate programs with educational 
                institutions and oil and gas operators that are 
                designed--
                            (i) to enable persons to qualify for 
                        positions in the administration of this Act; 
                        and
                            (ii) to provide for the continuing 
                        education of inspectors or other appropriate 
                        Department of the Interior personnel.
                    (B) Financial and technical assistance.--The 
                Secretary may provide financial and technical 
                assistance to educational institutions in carrying out 
                this paragraph.
    (e) Limitation.--The Secretary shall not carry out through the 
Service any function, power, or duty that is--
            (1) required by section 2 to be carried out through Bureau 
        of Ocean Energy; or
            (2) required by section 4 to be carried out through the 
        Office of Natural Resources Revenue.

SEC. 4. OFFICE OF NATURAL RESOURCES REVENUE.

    (a) Establishment.--There is established in the Department of the 
Interior an Office of Natural Resources Revenue (referred to in this 
section as the ``Office'') to be headed by a Director of Natural 
Resources Revenue (referred to in this section as the ``Director'').
    (b) Appointment and Compensation.--
            (1) In general.--The Director shall be appointed by the 
        Secretary of the Interior.
            (2) 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.
    (c) Duties.--
            (1) In general.--The Secretary of the Interior shall carry 
        out, through the Office, all functions, powers, and duties 
        vested in the Secretary and relating to the administration of 
        offshore royalty and revenue management functions.
            (2) Specific authorities.--The Secretary shall carry out, 
        through the Office, all functions, powers, and duties 
        previously assigned to the Minerals Management Service 
        (including the authority to develop, promulgate, and enforce 
        regulations) regarding offshore royalty and revenue collection; 
        royalty and revenue distribution; auditing and compliance; 
        investigation and enforcement of royalty and revenue 
        regulations; and asset management for onshore and offshore 
        activities.
    (d) Limitation.--The Secretary shall not carry out through the 
Office any function, power, or duty that is--
            (1) required by section 2 to be carried out through Bureau 
        of Ocean Energy; or
            (2) required by section 3 to be carried out through the 
        Ocean Energy Safety Service.

SEC. 5. ETHICS AND DRUG TESTING.

    (a) Certification.--The Secretary of the Interior shall certify 
annually that all Department of the Interior officers and employees 
having regular, direct contact with lessees, contractors, 
concessionaires, and other businesses interested before the Government 
as a function of their official duties, or conducting investigations, 
issuing permits, or responsible for oversight of energy programs, are 
in full compliance with all Federal employee ethics laws and 
regulations under the Ethics in Government Act of 1978 (5 U.S.C. App.) 
and part 2635 of title 5, Code of Federal Regulations, and all guidance 
issued under subsection (c).
    (b) Drug Testing.--The Secretary shall conduct a random drug 
testing program of all Department of the Interior personnel referred to 
in subsection (a).
    (c) Guidance.--Not later than 90 days after the date of enactment 
of this Act, the Secretary shall issue supplementary ethics and drug 
testing guidance for the employees for which certification is required 
under subsection (a). The Secretary shall update the supplementary 
ethics guidance not less than once every 3 years thereafter.

SEC. 6. ABOLISHMENT OF MINERALS MANAGEMENT SERVICE.

    (a) Abolishment.--The Minerals Management Service is abolished.
    (b) Completed Administrative Actions.--
            (1) In general.--Completed administrative actions of the 
        Minerals Management Service shall not be affected by the 
        enactment of this Act, but shall continue in effect according 
        to their terms until amended, modified, superseded, terminated, 
        set aside, or revoked in accordance with law by an officer of 
        the United States or a court of competent jurisdiction, or by 
        operation of law.
            (2) Completed administrative action defined.--For purposes 
        of paragraph (1), the term ``completed administrative action'' 
        includes orders, determinations, memoranda of understanding, 
        memoranda of agreements, rules, regulations, personnel actions, 
        permits, agreements, grants, contracts, certificates, licenses, 
        registrations, and privileges.
    (c) Pending Proceedings.--Subject to the authority of the Secretary 
of the Interior and the officers of the Department of the Interior 
under this Act--
            (1) pending proceedings in the Minerals Management Service, 
        including notices of proposed rulemaking, and applications for 
        licenses, permits, certificates, grants, and financial 
        assistance, shall continue, notwithstanding the enactment of 
        this Act or the vesting of functions of the Service in another 
        agency, unless discontinued or modified under the same terms 
        and conditions and to the same extent that such discontinuance 
        or modification could have occurred if this Act had not been 
        enacted; and
            (2) orders issued in such proceedings, and appeals 
        therefrom, and payments made pursuant to such orders, shall 
        issue in the same manner and on the same terms as if this Act 
        had not been enacted, and any such orders shall continue in 
        effect until amended, modified, superseded, terminated, set 
        aside, or revoked by an officer of the United States or a court 
        of competent jurisdiction, or by operation of law.
    (d) Pending Civil Actions.--Subject to the authority of the 
Secretary of the Interior or any officer of the Department of the 
Interior under this Act, pending civil actions shall continue 
notwithstanding the enactment of this Act, and in such civil actions, 
proceedings shall be had, appeals taken, and judgments rendered and 
enforced in the same manner and with the same effect as if such 
enactment had not occurred.
    (e) References.--References relating to the Minerals Management 
Service in statutes, Executive orders, rules, regulations, directives, 
or delegations of authority that precede the effective date of this Act 
are deemed to refer, as appropriate, to the Department, to its 
officers, employees, or agents, or to its corresponding organizational 
units or functions. Statutory reporting requirements that applied in 
relation to the Minerals Management Service immediately before the 
effective date of this Act shall continue to apply.

SEC. 7. CONFORMING AMENDMENTS TO EXECUTIVE SCHEDULE PAY RATES.

    (a) Under Secretary for Energy, Lands, and Minerals.--Section 5314 
of title 5, United States Code, is amended by inserting after the item 
relating to ``Under Secretaries of the Treasury (3)'' the following:
            ``Under Secretary for Energy, Lands, and Minerals, 
        Department of the Interior.''.
    (b) Assistant Secretaries.--Section 5315 of title 5, United States 
Code, is amended by striking ``Assistant Secretaries of the Interior 
(6).'' and inserting the following:
            ``Assistant Secretaries, Department of the Interior (7).''.
    (c) Directors.--Section 5316 of title 5, United States Code, is 
amended by striking ``Director, Bureau of Mines, Department of the 
Interior.'' and inserting the following new items:
            ``Director, Bureau of Ocean Energy, Department of the 
        Interior.
            ``Director, Ocean Energy Safety Service, Department of the 
        Interior.
            ``Director, Office of Natural Resources Revenue, Department 
        of the Interior.''.

SEC. 8. OUTER CONTINENTAL SHELF ENERGY SAFETY ADVISORY BOARD.

    (a) Establishment.--The Secretary of the Interior shall establish, 
under the Federal Advisory Committee Act, an Outer Continental Shelf 
Energy Safety Advisory Board (referred to in this section as the 
``Board'')--
            (1) to provide the Secretary and the Directors established 
        by this Act with independent scientific and technical advice on 
        safe, responsible, and timely mineral and renewable energy 
        exploration, development, and production activities; and
            (2) to review operations of the National Offshore Energy 
        Health and Safety Academy established under section 3(d), 
        including submitting to the Secretary recommendations of 
        curriculum to ensure training scientific and technical 
        advancements.
    (b) Membership.--
            (1) Size.--The Board shall consist of not more than 11 
        members, who--
                    (A) shall be appointed by the Secretary based on 
                their expertise in oil and gas drilling, well design, 
                operations, well containment and oil spill response; 
                and
                    (B) must have significant scientific, engineering, 
                management, and other credentials and a history of 
                working in the field related to safe energy 
                exploration, development, and production activities.
            (2) Consultation and nominations.--The Secretary shall 
        consult with the National Academy of Sciences and the National 
        Academy of Engineering to identify potential candidates for the 
        Board and shall take nominations from the public.
            (3) 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.
            (4) Balance.--In appointing members to the Board, the 
        Secretary shall ensure a balanced representation of industry 
        and research interests.
    (c) Chair.--The Secretary shall appoint the Chair for the Board 
from among its members.
    (d) Meetings.--The Board shall meet not less than 3 times per year 
and shall host, at least once per year, a public forum to review and 
assess the overall energy safety performance of Outer Continental Shelf 
mineral and renewable energy resource activities.
    (e) Offshore Drilling Safety Assessments and Recommendations.--As 
part of its duties under this section, the Board shall, by not later 
than 180 days after the date of enactment of this section and every 5 
years thereafter, submit to the Secretary a report that--
            (1) assesses offshore oil and gas well control 
        technologies, practices, voluntary standards, and regulations 
        in the United States and elsewhere; and
            (2) as appropriate, recommends modifications to the 
        regulations issued under this Act to ensure adequate protection 
        of safety and the environment, including recommendations on how 
        to reduce regulations and administrative actions that are 
        duplicative or unnecessary.
    (f) Reports.--Reports of the Board shall be submitted by the Board 
to the Committee on Natural Resources of the House or Representatives 
and the Committee on Energy and Natural Resources of the Senate and 
made available to the public in electronically accessible form.
    (g) Travel Expenses.--Members of the Board, other than full-time 
employees of the Federal Government, while attending 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 Government serving without pay.

SEC. 9. VETERANS PREFERENCE.

    Consistent with existing law, the Under Secretary for Energy, 
Lands, and Minerals shall, in administering the programs and 
authorities referenced under this Act, provide a hiring preference to 
eligible members listed under section 2108 of title 5, United States 
Code.
                                                 Union Calendar No. 436

112th CONGRESS

   2d Session

                               H. R. 3404

                          [Report No. 112-601]

_______________________________________________________________________

                                 A BILL

 To establish in the Department of the Interior an Under Secretary for 
  Energy, Lands, and Minerals and a Bureau of Ocean Energy, an Ocean 
Energy Safety Service, and an Office of Natural Resources Revenue, and 
                          for other purposes.

_______________________________________________________________________

                             July 17, 2012

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed