[House Document 111-144]
[From the U.S. Government Publishing Office]


111th Congress, 2d Session - - - - - - - - - - - - House Document 111-144

 
                 REQUESTS FOR FY 2011 BUDGET AMENDMENTS

                               __________

                             COMMUNICATION

                                  from

                     THEPRESIDENTOFTHEUNITEDSTATES

                              transmitting

 A REQUEST FOR BUDGET AMENDMENTS FOR FISCAL YEAR 2011 PROPOSALS IN THE 
       FISCAL YEAR 2011 BUDGET FOR THE DEPARTMENT OF THE INTERIOR




 September 22, 2010.--Referred to the Committee on Appropriations and 
                         ordered to be printed
                                           The White House,
                                    Washington, September 13, 2010.
Hon. Nancy Pelosi,
Speaker of the House of Representatives,
Washington, DC.
    Dear Madam Speaker: I ask the Congress to consider the 
enclosed Fiscal Year (FY) 2011 Budget amendments for the 
Department of the Interior. Overall, the discretionary budget 
authority proposed in my FY 2011 Budget would not be increased 
by these requests.
    These amendments are necessary to strengthen oversight of 
offshore oil and gas operations, address deficiencies in 
mineral revenue collection, and facilitate the reorganization 
of the Bureau of Ocean Energy Management, Regulation, and 
Enforcement--formerly known as the Minerals Management Service.
    The details of these requests are set forth in the enclosed 
letter from the Acting Director of the Office of Management and 
Budget.
            Sincerely,
                                                      Barack Obama.
    Enclosure.
               Estimate No. 11, 111th Congress, 2d Sess.

                 Executive Office of the President,
                           Office of Management and Budget,
                                Washington, DC, September 13, 2010.
The President,
The White House.
    Submitted for your consideration are amendments to your 
Fiscal Year (FY) 2011 Budget for the Department of the 
Interior.
    The amendments would support efforts to: Strengthen 
oversight of offshore oil and gas operations to address safety 
and environmental concerns highlighted by the Deepwater Horizon 
oil spill in the Gulf of Mexico; address deficiencies in 
Federal mineral revenue collections; and facilitate the 
reorganization of the Bureau of Ocean Energy Management, 
Regulation, and Enforcement (BOEMRE) within the Department of 
the Interior.
    The revised request would be fully offset by increasing 
inspection fees on offshore oil and gas operations, cancelling 
prior-year balances not needed for the BOEMRE Outer Continental 
Shelf Connect project, and prohibiting the expenditure of 
mandatory spending authorized in the Energy Policy Act of 2005 
for oil and gas research and development.
    Overall, the discretionary budget authority proposed in FY 
2011 would not be increased by these requests.
Recommendation
    I have reviewed these requests and am satisfied that they 
are necessary at this time. Therefore, I join the Secretary of 
the Interior in recommending that you transmit the proposals to 
the Congress.
            Sincerely,
                                         Jeffrey D. Zients,
                                                   Acting Director.
    Enclosures.
                       DEPARTMENT OF THE INTERIOR


                      Minerals Management Service


                ROYALTY AND OFFSHORE MINERALS MANAGEMENT

FY 2011 Budget Appendix Page: 657
FY 2011 Pending Request: $183,587,000
Proposed Amendment: $66,380,000
Revised Request: $249,967,000

    (In the appropriations language under the above Agency, 
delete the bureau title ``Minerals Management Service'' and 
substitute Bureau of Ocean Energy Management, Regulation, and 
Enforcement; in the first paragraph, delete ``$183,587,000'' 
and substitute $249,967,000; delete ``$100,404,000'' and 
substitute $118,504,000; and delete ``Director of MMS'' and 
substitute Director of the Bureau of Ocean Energy Management, 
Regulation, and Enforcement; and in the second paragraph, 
delete ``$20,000,000'' in both places it appears and substitute 
$45,000,000.)
    This amendment would increase by $66 million the budget 
authority requested in the FY 2011 Budget. These funds would be 
used to facilitate the reorganization of the Bureau of Ocean 
Energy Management, Regulation, and Enforcement (BOEMRE), 
formerly the Minerals Management Service, into the following 
three entities: Office of Natural Resources Revenue; Bureau of 
Ocean Energy Management; and Bureau of Safety and Environmental 
Enforcement. The new organizational structure is based on the 
premise that the missions within BOEMRE--including Outer 
Continental Shelf management, safety and environmental 
oversight and enforcement, and revenue collection--need to be 
clearly defined and distinct from each other.
    The majority of the additional resources would be used to 
strengthen core programs within BOEMRE to address safety and 
environmental concerns highlighted by the Deepwater Horizon oil 
spill in the Gulf of Mexico. The additional resources would 
also be used to address known deficiencies in Federal mineral 
revenue collection activities, including those raised in a 
recent Government Accountability Office review, and establish 
an investigation and review unit within the agency.
    In addition to the $66 million increase in budget 
authority, the amendment would provide access to an additional 
$25 million in revenue. In conjunction with an accompanying 
amendment to general provision section 109, this additional 
revenue would be derived by more than doubling the offshore oil 
and gas operation inspection fees collected in FY 2011 (from 
$20 million to $45 million). As a result, BOEMRE would have 
available an additional $91 million in total resources in FY 
2011 for the efforts described above.
                       DEPARTMENT OF THE INTERIOR


     Bureau of Ocean Energy Management, Regulation, and Enforcement


                           OIL SPILL RESEARCH

FY 2011 Budget Appendix Page: 662
FY 2011 Pending Request: $6,303,000
Proposed Amendment: $8,620,000
Revised Request: $14,923,000

    (In the appropriations language under the above heading, 
delete ``$6,303,000'' and substitute $14,923,000.)
    This amendment would be used to address key research gaps 
brought to light by the Deepwater Horizon oil spill in the Gulf 
of Mexico and the associated spill containment and response 
efforts. Deep oil and gas spill containment capabilities need 
to be improved, along with the understanding of how best to 
respond to deep oil and gas spills. This research will be 
coordinated with other Federal agencies and non-Federal 
partners.
    This amendment would increase the budget authority 
requested in the FY 2011 Budget by $9 million, which would be 
fully offset by proposed reductions to other accounts within 
the Department of the Interior, as described in the 
accompanying amendments.
                       DEPARTMENT OF THE INTERIOR


                           GENERAL PROVISIONS

FY 2011 Budget Appendix Page: 729
FY 2011 Pending Request: --
Proposed Amendment: Language
Revised Request: --

    (In the appropriations language under the above heading, in 
section 109, in subsection (a), delete ``Minerals Management 
Service (MMS)'' and substitute Bureau of Ocean Energy 
Management, Regulation, and Enforcement (BOEMRE), and delete 
the second reference to ``MMS'' and substitute BOEMRE; in 
subsection (b), delete ``$4,000'' and substitute $9,000, delete 
``$6,500'' and substitute $14,625, and delete ``$12,000'' and 
substitute $27,000; and in subsection (c), delete ``MMS'' and 
substitute BOEMRE.)
    This amendment, in conjunction with the amendment to the 
Royalty and Offshore Minerals Management account, would 
increase collections of offshore oil and gas operation 
inspection fees by $25 million, which would be available to the 
Bureau of Ocean Energy Management, Regulation, and Enforcement. 
This would offset the $25 million in increased spending in the 
Royalty and Offshore Minerals Management account, as described 
in an accompanying amendment.
                       DEPARTMENT OF THE INTERIOR


                           GENERAL PROVISIONS

FY 2011 Budget Appendix Page: 731
FY 2011 Pending Request: --
Proposed Amendment: Language
Revised Request: --

    (In the appropriations language under the above heading, 
insert the following three new sections immediately following 
section 113:)
    Sec. 114. The Secretary of the Interior, after consultation 
with the relevant congressional committees, may implement a 
reorganization of the Bureau of Ocean Energy Management, 
Regulation, and Enforcement and, as part of the reorganization, 
may make transfers pursuant to 31 U.S.C. 1531 and take other 
necessary administrative actions.
    This amendment would allow the creation of new accounts and 
the transfer of funds among accounts during the reorganization 
of the Bureau of Ocean Energy Management, Regulation, and 
Enforcement (BOEMRE), which is scheduled to begin on October 1, 
2010. It would provide the flexibility required by the 
Department of the Interior (DOI) to move funds among various 
accounts and programs including balances as the reorganization 
progresses.
    Sec. 115. Of the prior year unobligated balances available 
in the Royalty and Offshore Minerals Management Account, 
$25,000,000 are hereby permanently cancelled.
    This amendment would permanently cancel $25 million in 
unobligated balances, which would partially offset the proposed 
increase in funding for the reorganization of BOEMRE, as 
described in an accompanying amendment.
    Sec. 116. None of the funds in this or any other Act shall 
be used to deposit funds from any Federal royalties, rents, and 
bonuses derived from Federal onshore and offshore oil and gas 
leases issued under the Outer Continental Shelf Lands Act (43 
U.S.C. 1331 et seq.) and the Mineral Leasing Act (30 U.S.C. 181 
et seq.) into the Ultra-Deepwater and Unconventional Natural 
Gas and Other Petroleum Research Fund in Fiscal Year 2011.
    This amendment would prohibit DOI from transferring $50 
million in FY 2011 oil and gas receipts to an oil and gas 
research and development program that promotes fossil fuel 
production. This transfer, as directed by the Energy Policy Act 
of 2005, provides mandatory spending for the Ultra-Deepwater 
and Unconventional Natural Gas and Other Petroleum Research 
program. The oil and gas industry has the incentive and 
resources to undertake this work without this Federal subsidy. 
Instead, both the industry and the public would be better 
served by reallocating these funds to strengthen the core 
programs of BOEMRE that regulate and facilitate offshore energy 
development.
    This amendment would offset by $50 million proposed 
increases to other accounts within DOI, as described in the 
accompanying amendments.

                                  
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