[Congressional Record Volume 156, Number 93 (Monday, June 21, 2010)]
[Senate]
[Pages S5203-S5211]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. BAUCUS (for himself and Mr. Grassley):
S. 3513. A bill to amend the Internal Revenue Code of 1986 to extend
for one year the special depreciation allowances for certain property;
to the Committee on Finance.
Mr. BAUCUS. Mr. President, over the past several months, we have seen
some improvement in our economy.
One year ago, in the first quarter of 2009, GDP was declining at an
annual rate of more than 6 percent. Just 1 year later, in the first
quarter of 2010, GDP grew at an annual rate of 3 percent.
This marks the third consecutive quarter of real economic growth.
It is not just the GDP that is growing. Consumer spending has risen
at an annual rate of 3.5 percent this year. Manufacturing output rose 9
percent over the first 4 months of the year. Businesses have increased
spending on equipment and boosted their inventory investments.
But one economic indicator continues to lag behind--employment.
The national unemployment rate stands at 9.7 percent. Over the course
of this Great Recession, the American economy has lost more than 8
million jobs. In total, 15 million Americans remain out of work.
We must act to create jobs and get Americans back to work.
We began creating jobs with the 2009 Recovery Act. The nonpartisan
Congressional Budget Office reports that last year's Recovery Act added
1.2 to 2.8 million people to America's payrolls.
In March, Congress passed the HIRE Act. The HIRE Act, which includes
a payroll tax exemption for new hires, should help to bolster job
creation in the coming months.
This week, we are considering the American Jobs and Closing Tax
Loopholes Act. That bill will create jobs by providing tax cuts and
certainty to American businesses. It will create jobs by improving our
nation's infrastructure. And it will create jobs by making direct
investments in jobs for young adults and needy families.
After we consider the American Jobs and Closing Tax Loopholes Act,
the Senate will consider a small business jobs bill. The Finance and
Small Business committees are currently writing that bill.
Today, I am introducing another important jobs bill. This bill will
extend bonus depreciation through 2010. I am introducing this extension
as a stand-alone bill because of the unique ability of bonus
depreciation to help businesses and create jobs.
In 2008, Congress temporarily allowed businesses to recover the costs
of certain capital expenditures more quickly than under ordinary
depreciation schedules. The 2008 law allowed businesses to immediately
write off 50 percent of the cost of depreciable property placed in
service in 2008.
The Recovery Act extended bonus depreciation. But the provision
expired at the end of 2009.
My bill would extend bonus depreciation to property placed in service
in 2010.
[[Page S5204]]
Bonus depreciation provides a double benefit. It helps two sets of
businesses. It helps the business that purchases the equipment. It
helps the business that sells the equipment.
The businesses that purchase equipment can write off those purchases
more quickly.
This provides a significant tax savings. That savings makes equipment
more affordable and encourages purchases.
The savings gained from expensing, rather than the slower
depreciation, allows businesses to use that money to invest in the
business itself. Businesses can use those savings to hire employees.
The more purchases that are made, the more other businesses are
helped. This proposal will help manufacturers and suppliers to retain
and hire employees as their businesses rebound.
I have heard from a number of business owners in Montana that bonus
depreciation has been extremely helpful for their business.
An extension of bonus depreciation will boost economic activity by
hundreds of millions of dollars. It will create hundreds of jobs in my
home state of Montana.
Bonus depreciation is a cost-effective provision that provides real
relief for businesses. Bonus depreciation creates jobs.
I urge my Colleagues to support this important bill.
______
By Mr. BEGICH (for himself, Mr. Wyden, and Ms. Klobuchar):
S. 3514. A bill to amend the Outer Continental Shelf Lands Act to
prohibit a person from entering into any Federal oil or gas lease or
contract unless the person pays into an Oil Spill Recovery Fund, or
posts a bond, in an amount equal to the total of the outstanding
liability of the person and any removal costs incurred by, or on behalf
of, the person with respect to any oil discharge for which the person
has outstanding liability, and for other purposes; to the Committee on
Environment and Public Works.
Mr. BEGICH. Mr. President, I rise to introduce legislation requiring
BP and other oil companies to set aside ample funding in an escrow
account controlled--not by the company but by the Federal Government--
to address the damage and claims from a major catastrophic oil spill
like the current Gulf of Mexico spill.
Twenty-one years ago, the oil tanker Exxon Valdez ran aground,
gushing an estimated 11 million gallons of crude oil into Alaska
waters. This was the worst oil spill in American history, with oil
hitting 1,300 miles of shoreline and killing hundreds of thousands of
birds and marine mammals. Thousands of hard-working Alaskans, just like
the residents of the Gulf, lost millions of dollars as their
livelihoods collapsed.
To add insult to injury, for nearly two decades Exxon fought the
legitimate claims of Alaskans harmed by the spill for nearly two
decades. The case went all the way to the Supreme Court when in 2008,
the Court issued a final judgment, reducing Exxon's punitive liability
to just 10 percent of what the original court had ordered. During those
19 years, hundreds of Alaskans entitled to damages had died; thousands
of others' lives were forever harmed.
We Alaskans learned many lessons from the Exxon Valdez spill. One of
the most important was to set up a system as early as possible to
guarantee that those affected by oil spills are justly compensated.
That is what my bill is designed to do. I am certainly pleased BP has
agreed to set up an escrow account voluntarily, but I believe Congress
should underscore their commitment in law and to protect Americans from
future spills.
This bill, the Guaranteed Oil Spill Compensation Act of 2010,
requires BP or any other party responsible for an oil spill interested
in future Federal oil and gas leases to deposit into an escrow account
held by the U.S. Government enough money to compensate those affected
by a spill. In the event of a spill, the Secretary of Interior can make
an assessment of outstanding liability under provisions of the Federal
legislation passed in the aftermath of the Exxon Valdez, the Oil
Pollution Act of 1990, OPA 90. The spiller must then deposit funds
equal to the total liability minus the liability established for
incident by OPA 90 into a separate fund to be administered by the
Secretary for claims and costs related to that spill. Unexpended funds
would be returned to the spiller at the earlier of 5 years after the
date of deposit or the date the Secretary determines all Federal,
State, and civil claims have been satisfied. The measure would have no
affect on other liability.
I believe this legislation achieves what many of us want: ensuring
Americans damaged by this oil spill and future catastrophic spills are
fairly compensated in a timely way. This didn't happen to Alaskans with
the Exxon Valdez. We must ensure it does happen for our Americans in
the Gulf of Mexico. This is another tool as Congress works on liability
reform designed to make those injured whole again, while at the same
time allowing responsible companies to provide oil our country needs.
The Guaranteed Oil Spill Compensation Act of 2010 is the first of a
package of bills I intend to introduce designed to make oil companies
financially responsible for the cost of oil spills; expand scientific
research, especially in the Arctic; provide a steady source of Federal
funding for additional science and resources needed in the Far North to
deal with oil and gas development; and provide greater citizen
involvement in oil development.
______
By Mrs. SHAHEEN (for herself, Mr. Udall of Colorado, and Mr.
Bingaman):
S. 3515. A bill to authorize and enhance the programs of the
Department of the Interior relating to the detection of, response to,
and mitigation and cleanup of oil spills on Federal land managed by the
Department, and for other purposes; to the Committee on Environment and
Public Works.
Mrs. SHAHEEN. Mr. President, I rise today to join with my colleagues
Senator Mark Udall and Chairman Jeff Bingaman of the Senate Energy
Committee to introduce the Department of the Interior Research and
Technologies for Oil Spill Prevention and Response Act of 2010.
Legislation intended to make sure we have the proper resources
available to respond to future oil spills.
While we are still getting to the bottom of what caused the Deepwater
Horizon disaster in the Gulf, one thing is absolutely clear: BP was
totally unprepared to respond, contain and clean-up this kind of spill.
From ``junk shots'' to containment domes that failed to work at
depth, BP was caught totally flat footed by this spill. Even BP's CEO,
Tony Hayward, admitted that BP didn't ``have the tools in the toolbox''
to respond to this spill.
The oil and gas industry has poured significant sums of money into
developing technologies to find and produce oil and gas, but when I
asked oil executives at a recent Energy Committee hearing what they've
done in the way of research and development to respond to and clean up
oil spills the response I got was: little to nothing.
The technologies being used today in the Gulf are the same
technologies we used twenty years ago to clean-up the Exxon Valdez
spill. The oil and gas industry needs to do better. Since they won't do
it themselves, they can pay the government to lead on research and
development. We need to have updated, innovative, and effective
technologies at the ready to clean up after any oil spill--large or
small.
We have to make sure that--through proper research and development--
we are prepared to prevent and respond to future oil spills. And that
is what my legislation is intended to do.
The legislation I am introducing today with Senators Udall and
Bingaman does the following:
It creates a new Oil Spill research and development program
within the Interior Department to focus on research and
development technologies to respond to, contain and clean up
oil spills and ensure we're prepared to respond to future
spills.
It establishes an independent Scientific Advisory Board to
identify gaps and focus the research and development program
on priority areas. We know the concerns of the scientists
were ignored leading up to the Deepwater Horizon explosion.
This provision will make sure their important voices are
heard.
It makes the oil and gas industry pay for this critical
research and development. In order to make sure this import
effort has the resources it need to be successful, my
legislation creates a dedicated funding source to pay for
this research and development, and
[[Page S5205]]
this funding will come entirely from royalties, rent, and
bonuses from domestic oil and gas producers.
This legislation is one part of a broader effort to ensure that we
are prepared for future oil spills and that the catastrophe in the Gulf
never happens again.
I look forward to working with my colleagues to incorporate this
legislation into comprehensive legislation the Senate is crafting to
respond to the Deepwater Horizon spill and reform the federal agency
responsible for oil and gas development in the outer continental shelf.
I urge my colleagues to support this legislation so that we can ensure
we are prepared to handle future oil spills.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 3515
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Department of the Interior
Research and Technologies for Oil Spill Prevention and
Response Act of 2010''.
SEC. 2. PURPOSE.
The purpose of this Act is to maintain and enhance the
world-class research and facilities of the Department of the
Interior and to ensure that there is adequate knowledge,
practices, and technologies to detect, respond to, contain,
and clean up oil spills occurring on Federal land managed by
the Department of the Interior, whether onshore or on the
outer Continental Shelf.
SEC. 3. DEFINITIONS.
In this Act:
(1) Board.--The term ``Board'' means the Science and
Technology Advisory Board established under section 5(a).
(2) Fund.--The term ``Fund'' means the Oil Spill Technology
and Research Fund established by section 13(a).
(3) Program.--The term ``program'' means the program
established under section 4(a).
SEC. 4. AUTHORIZATION OF DEPARTMENT OF THE INTERIOR OIL SPILL
RESEARCH AND DEVELOPMENT PROGRAM.
(a) In General.--The Secretary shall carry out a program of
research, development, technology demonstration, and risk
assessment to address issues associated with the detection
of, response to, and mitigation and cleanup of oil spills
occurring on Federal land managed by the Department of the
Interior, whether onshore or on the outer Continental Shelf.
(b) Specific Areas of Focus.--The program shall include
research, development, demonstration, validation, personnel
training, and other activities relating to--
(1) technologies, materials, methods, and practices--
(A) to detect the release of hydrocarbons from leaking
exploration or production equipment;
(B) to characterize the rates of flow from leaking
exploration and production equipment in locations that are
remote or difficult to access;
(C) to protect the safety of workers addressing hydrocarbon
releases from exploration and production equipment;
(D) to contain, respond to, and clean up oil spills,
including with the use of dispersants, containment vessels,
booms, and skimmers, particularly under worst-case release
scenarios;
(E) to contain, respond to, and clean up an oil spill in
extreme or harsh conditions on the outer Continental Shelf;
and
(F) for environmental assessment, restoration, and long-
term monitoring;
(2) fundamental scientific characterization of the behavior
of oil and natural gas in and on soil and water, including
miscibility, plume behavior, emulsification, physical
separation, and chemical and biological degradation;
(3) behavior and effects of emulsified, dispersed, and
submerged oil in water; and
(4) modeling, simulation, and prediction of oil flows from
releases and the trajectories of releases on the surface, the
subsurface, and in water.
SEC. 5. SCIENCE AND TECHNOLOGY ADVISORY BOARD.
(a) In General.--The Secretary shall enter into appropriate
arrangements with the National Academy of Sciences to
establish an independent committee, to be known as the
``Science and Technology Advisory Board'', to provide
scientific and technical advice to the program, including--
(1) the identification of knowledge gaps that the program
should address;
(2) the establishment of scientific and technical
priorities; and
(3) an annual review of the results and effectiveness of
the program, including successful technology development.
(b) Reports.--Reports and recommendations of the Board
shall promptly be made available to Congress and the public.
SEC. 6. RESEARCH AND TECHNOLOGY PLAN.
(a) In General.--Not later than 1 year after the date of
enactment of this Act, and every 2 years thereafter, the
Secretary, in consultation with the Board, shall develop and
publish a research and technology plan for the program.
(b) Contents.--The plan under this section shall--
(1) identify research needs and opportunities;
(2) propose areas of focus for the program;
(3) establish program priorities, including priorities for
the research centers of excellence under section 7,
demonstration projects under section 8, and research grants
under section 9; and
(4) estimate--
(A) the extent of resources needed to conduct the program;
and
(B) timetables for completing research tasks under the
program.
(c) Publication.--The Secretary shall timely publish--
(1) the plan under this section; and
(2) a review of the plan by the Board.
SEC. 7. RESEARCH CENTERS OF EXCELLENCE.
(a) Response Technologies for Deepwater, Ultra Deepwater,
and Other Extreme Environment Oil Spills.--
(1) Establishment.--The Secretary shall establish at 1 or
more institutions of higher education a research center of
excellence for the research, development, and demonstration
of technologies necessary to respond to, contain, mitigate,
and clean up deepwater, ultra deepwater, and other extreme
environment oil spills.
(2) Grants.--The Secretary shall provide grants to the
research center of excellence established under paragraph (1)
to conduct and oversee basic and applied research in the
technologies described in that paragraph.
(b) Oil Spill Response and Restoration.--
(1) Establishment.--The Secretary, in coordination with the
Undersecretary of Commerce for Oceans and Atmosphere, shall
establish at 1 or more institutions of higher education a
research center of excellence for research and innovation in
oil spill fate, behavior and effects, and damage assessment
and restoration.
(2) Grants.--The Secretary shall provide grants to the
research center of excellence established under paragraph (1)
to conduct and oversee basic and applied research in the
areas described in that paragraph.
(c) Other Research Centers of Excellence.--The Secretary
may establish such other research centers of excellence as
the Secretary determines to be necessary for the research,
development, and demonstration of technologies necessary to
carry out this Act.
SEC. 8. DEMONSTRATION PROJECTS.
(a) In General.--In carrying out the program, the Secretary
shall conduct deepwater, ultra deepwater, and other extreme
environment oil spill response demonstration projects for the
purpose of developing and demonstrating new integrated
deepwater oil spill mitigation and response systems that use
the information and implement the improved practices and
technologies developed from the program.
(b) Requirements.--The mitigation and response systems
developed under subsection (a) shall use technologies and
management practices for improving the response capabilities
to deepwater oil spills, including--
(1) improved oil flow monitoring and calculation;
(2) improved oil spill response capability;
(3) improved subsurface mitigation technologies;
(4) improved capability to track and predict the flow and
effects of oil discharges in both subsurface and surface
areas for the purposes of making oil mitigation and response
decisions; and
(5) any other activities necessary to achieve the purposes
of the program.
SEC. 9. RESEARCH GRANTS.
In carrying out the program, the Secretary may award
competitive grants in coordination with research centers of
excellence under section 7 and consistent with the research
and technology plan under section 6 to institutions of higher
education or other research institutions--
(1) to carry out projects that are relevant to the goals
and priorities of the research and technology plan; and--
(2)(A) to advance research and development; or
(B) to demonstrate technologies.
SEC. 10. PILOT PROGRAMS FOR FIELD TESTING TECHNOLOGIES.
(a) In General.--The Secretary, in coordination with the
Administrator of the Environmental Protection Agency, shall
conduct a pilot program to conduct field tests on new oil
spill response, mitigation, and cleanup technologies
developed under the program in the waters of the United
States.
(b) Results.--The results of the field tests conducted
under subsection (a) shall be used--
(1) to refine oil spill technology research and
development; and
(2) to assist the Secretary and the Administrator of the
Environmental Protection Agency in the development of safety
and environmental regulations under this Act and other
applicable laws.
SEC. 11. PEER REVIEW OF PROPOSALS AND RESEARCH.
(a) In General.--Any award of funds under the program shall
be made only after the Secretary has carried out an impartial
peer review of the scientific and technical merit of the
proposals for the award.
(b) Requirements.--The Secretary shall ensure that any
research conducted under the program shall be peer-reviewed,
transparent, and made available to the public.
[[Page S5206]]
SEC. 12. COORDINATION WITH OTHER AGENCIES.
(a) In General.--In carrying out this Act, the Secretary
shall consult and coordinate, as appropriate, with other
Federal agencies and programs, including the Interagency
Coordinating Committee on Oil Pollution Research established
under section 7001 of the Oil Pollution Act of 1990 (33
U.S.C. 2761).
(b) Responsibility of the Secretary.--Notwithstanding any
requirements to consult or coordinate, the Secretary shall
maintain authority, direction, and control of the program.
SEC. 13. OIL SPILL TECHNOLOGY AND RESEARCH FUND.
(a) Establishment.--There is established in the Treasury of
the United States a revolving fund, to be known as the ``Oil
Spill Technology and Research Fund'', consisting of such
amounts as are transferred to the Fund under subsection (b),
to be administered by the Secretary, to be available without
fiscal year limitation and not subject to appropriation, to
carry out the program.
(b) Transfers to Fund.--From any Federal royalties, rents,
and bonuses derived from Federal onshore and offshore oil and
gas leases issued the Outer Continental Shelf Lands Act (43
U.S.C. 1331 et seq.) or the Mineral Leasing Act (30 U.S.C.
181 et seq.) that are deposited in the Treasury, and after
distribution of any funds described in subsection (c), there
shall be transferred to the Fund $25,000,000 for each of
fiscal years 2010 through 2020, to remain available until
expended.
(c) Prior Distributions.--The distributions referred to in
subsection (b) are those required by law--
(1) to States and to the Reclamation Fund under section
35(a) of the Mineral Leasing Act (30 U.S.C. 191(a)); and
(2) to other funds receiving amounts from Federal oil and
gas leasing programs, including--
(A) any recipients pursuant to section 8(g) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1337(g));
(B) the land and water conservation fund, pursuant to
section 2(c) of the Land and Water Conservation Fund Act of
1965 (16 U.S.C. 460l-5(c));
(C) the Historic Preservation Fund, pursuant to section 108
of the National Historic Preservation Act (16 U.S.C. 470h);
and
(D) the coastal impact assistance program established under
section 31 of the Outer Continental Shelf Lands Act (43
U.S.C. 1356a).
(d) Prohibition.--Amounts in the Fund may not be made
available for any purpose other than a purpose described in
subsection (a).
(e) Annual Reports.--
(1) In general.--Not later than 60 days after the end of
each fiscal year beginning with fiscal year 2010, the
Secretary shall submit to the Committee on Appropriations of
the House of Representatives, the Committee on Appropriations
of the Senate, 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.
(2) Contents.--Each report shall include, for the fiscal
year covered by the report, the following:
(A) A statement of the amounts deposited into the Fund.
(B) A description of the expenditures made from the Fund
for the fiscal year, including the purpose of the
expenditures.
(C) Recommendations for additional authorities to fulfill
the purpose of the Fund.
(D) A statement of the balance remaining in the Fund at the
end of the fiscal year.
______
By Mr. BINGAMAN (for himself, Ms. Murkowski, and Mr. Dorgan):
S. 3516. A resolution to amend the Outer Continental Shelf Lands Act
to reform the management of energy and mineral resources on the Outer
Continental Shelf, and for other purposes; to the Committee on Energy
and Natural Resources.
Mr. BINGAMAN. Mr. President, today I am pleased to introduce the
Outer Continental Shelf Reform Act of 2010. This act takes a number of
important steps to ensure that the Outer Continental Shelf will be
managed in a balanced, prudent, and vigilant way, to ensure energy
production, safety, and protection of the environment. Its goal is to
create a culture of excellence in this endeavor that benefits those who
work in the oil industry, those who depend on other marine resources,
and all Americans who care deeply about our oceans and coastal
environment.
This legislation is being introduced against the backdrop of oil
still gushing into the Gulf of Mexico more than 60 days after the
initial explosion of the Deepwater Horizon rig. As the Congress
formulates its overall response to this disaster, its first order of
business must be to continue to care for the families of those who lost
their lives in the rig explosion and those Gulf residents who are
suffering every day through loss of livelihood and of places and
wildlife that they love. Several Senate committees have important roles
to play in formulating legislation in that regard.
At the same time, it also is essential that we look to the future,
and to creating a better structure and system within the regulatory
agency. That is a particular responsibility of the Committee on Energy
and Natural Resources. One goal must be, of course, to prevent future
disasters. But we can and must do more than that.
Congress should create organizational resources and a set of
principles and requirements that will have safety, environmental
protection, and innovation at its core. We should require that both
industry and agency employees have the expertise, experience, and
commitment to quality necessary to handle the complex issues involved.
If we do this right, it is my hope that we can see tangible results on
all fronts, and a shift away from the cascade of failures that led to
the Deepwater Horizon accident and towards work of the highest quality.
Thus, this bill clarifies the multiple responsibilities of the
Department of the Interior in managing the Outer Continental Shelf--
appropriate energy and other economic development and the protection of
human health and safety and the marine and coastal environment. It
reforms the structure of the regulatory apparatus of the Department
consistent with these responsibilities. The new organizational
structure requires that the Department avoid organizational conflicts
of interest between its revenue-raising missions and its planning,
permitting, and regulatory missions.
The bill increases the safety requirements for drilling wells,
focusing on best available technology, a systems analysis, risk
assessment, an evidentiary safety case, and a full engineering review.
In furtherance of the development of these standards and their
evolution of new and better technology, it requires new research
programs within the Department, independent of the leasing program,
whose data must be considered by the regulators. It provides dedicated
funding for the highest priority research, including in the areas of
well control and spill response, and an independent science advisory
board outside the agency to provide oversight.
It establishes new requirements for investigation of all accidents
and the public sharing of data from those reviews so that all can learn
from mistakes before they become major problems. It allows the National
Transportation Safety Board to provide an independent and highly
skilled investigation of any accident at the request of the Secretary.
In order to fully enforce the safety requirements, the bill imposes
an inspection fee on industry participants to fully fund enough well-
trained inspectors to perform real and meaningful inspections more
often. It also increases the sanctions on poor operators, including
increased civil and criminal penalties applicable to those who violate
the law, and the financial responsibility requirements to ensure that
those who participate in development of the Outer Continental Shelf can
afford to pay for any damage they cause.
The bill provides the Department of the Interior with adequate time
to carry out necessary reviews, clarifies the issues that need to be
addressed, and makes the input of other Federal agencies occur in a
transparent way. In this way, the process will have more predictability
and all stakeholders will have greater understanding of what is under
consideration. The result will be better decisions that will be capable
of being implemented with greater certainty.
Finally, the bill takes steps to ensure that the taxpayers will get a
fair return for development of energy resources. The Secretary will be
required to regularly review the amounts of royalties and other charges
applicable to those developing the Outer Continental Shelf, compare
them to charges levied by States and other countries, and consider
whether adjustments are necessary to achieve fair fiscal policies.
I believe these policies and resources can set us on a new and
constructive path toward managing the incredible natural resources of
the Outer Continental Shelf. I welcome ideas from others that may
enhance our ability in this regard. We must commit ourselves to the
goal of excellence in this important endeavor. We start today.
[[Page S5207]]
I am pleased to be joined by Senator Murkowski, ranking Republican on
the Energy and Natural Resources Committee, and Senator Dorgan, as
original cosponsors of this bill.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 3516
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 ``Outer
Continental Shelf Reform Act of 2010''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.
Sec. 4. National policy for the outer Continental Shelf.
Sec. 5. Structural reform of outer Continental Shelf program
management.
Sec. 6. Safety, environmental, and financial reform of the Outer
Continental Shelf Lands Act.
Sec. 7. Reform of other laws.
Sec. 8. Savings provisions.
Sec. 9. Budgetary effects.
SEC. 2. PURPOSES.
The purposes of this Act are--
(1) to rationalize and reform the responsibilities of the
Secretary of the Interior with respect to the management of
the outer Continental Shelf in order to improve the
management, oversight, accountability, safety, and
environmental protection of all the resources on the outer
Continental Shelf;
(2) to provide independent development and enforcement of
safety and environmental laws (including regulations)
governing--
(A) energy development and mineral extraction activities on
the outer Continental Shelf; and
(B) related offshore activities; and
(3) to ensure a fair return to the taxpayer from, and
independent management of, royalty and revenue collection and
disbursement activities from mineral and energy resources.
SEC. 3. DEFINITIONS.
In this Act:
(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. 4. 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 recognizes--
``(A) the need of the United States for domestic sources of
energy, food, minerals, and other resources;
``(B) the potential impacts of development of those
resources on the marine and coastal environment and on human
health and safety; and
``(C) the long-term economic value to the United States of
the balanced and orderly management of those resources that
safeguards the environment and respects the multiple values
and uses of the outer Continental Shelf;'';
(2) in paragraph (4)(C), by striking the period at the end
and inserting a semicolon;
(3) in paragraph (5), by striking ``; and'' and inserting a
semicolon;
(4) by redesignating paragraph (6) as paragraph (7);
(5) by inserting after paragraph (5) the following:
``(6) exploration, development, and production of energy
and minerals on the outer Continental Shelf should be allowed
only when those activities can be accomplished in a manner
that provides reasonable assurance of adequate protection
against harm to life, health, the environment, property, or
other users of the waters, seabed, or subsoil; and''; and
(6) in paragraph (7) (as so redesignated)--
(A) by striking ``should be'' and inserting ``shall be'';
and
(B) by adding ``best available'' after ``using''.
SEC. 5. 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 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
[[Page S5208]]
``(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. 6. 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 body of
evidence 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 bond amounts for mineral leases
under subsection (a)(11); and
``(2) set any bonds, surety, or other evidence of financial
responsibility required in amounts adequate 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 3 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 2 years after the date of
enactment of this subsection and every 5 years thereafter,
the Secretary in consultation with the Secretary of the
Treasury, shall carry out a comprehensive review of all
components of the Federal offshore oil and gas fiscal system,
including requirements for bonus bids, rental rates,
royalties, oil and gas taxes, and oil and gas fees.
``(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.
``(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 notice and opportunity for a hearing--
``(1) is not meeting due diligence, safety, or
environmental requirements on other leases; or
``(2)(A) is a responsible party for a vessel or a facility
from which oil is discharged, for purposes of section 1002 of
the Oil Pollution Act of 1990 (33 U.S.C. 2702); and
``(B) has failed to meet the obligations of the responsible
party under that Act to provide compensation for covered
removal costs and damages.''.
(e) Exploration Plans.--Section 11 of the Outer Continental
Shelf Lands Act (43 U.S.C. 1340) is amended--
(1) in subsection (c)--
[[Page S5209]]
(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 technology requirements under
section 21(b);
``(iii) a map showing the location of each well to be
drilled;
``(iv)(I) a scenario for the potential blowout of the well
involving the highest potential volume of liquid
hydrocarbons; and
``(II) a complete description of a response plan to control
the blowout and manage the accompanying discharge of
hydrocarbons, including--
``(aa) the technology and timeline for regaining control of
the well; and
``(bb) the strategy, organization, and resources necessary
to 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 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.'';
(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 engineering review of the well system, including a
determination that--
``(A) critical safety systems (including blowout
prevention) will use best available technology; and
``(B) blowout prevention systems will include redundancy
and remote triggering capability.
``(3) Modification review required.--The Secretary may not
approve any modification of a permit without a determination,
after an additional engineering review, that the modification
will not degrade 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 level
of crew members who will be present on the rig; and
``(ii) designation of at least 2 environmental and safety
managers that--
``(I) are employees of the operator;
``(II) would be present on the rig at all times; and
``(III) have overall responsibility for the safety and
environmental management of the well system and spill
response plan; and
``(C) not later than May 1, 2012, requires that all
employees on the rig meet the training and experience
requirements under section 21(b)(4).
``(e) Disapproval of Exploration Plan.--
``(1) 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)(C) 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.--
[[Page S5210]]
``(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
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, and not later than every 3 years
thereafter, the Secretary shall identify and publish an
updated list of best available technologies for key areas of
well design and operation, including blowout prevention and
blowout and oil spill response.
``(3) 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 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 blowout preventer,
and other accident that presented a serious risk to human or
environmental safety,'' after ``fire''; and
(ii) in the last sentence, by inserting ``as a condition of
the lease'' before the period at the end;
(B) in the last sentence of paragraph (2), by inserting
``as a condition of lease'' before the period at the end;
(2) in subsection (e)--
(A) by striking ``(e) The'' and inserting the following:
``(e) Review of Alleged Safety Violations.--
``(1) 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.--
[[Page S5211]]
``(1) In general.--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).
SEC. 7. REFORM OF OTHER LAWS.
(a) Coordinated Mapping Initiative.--Section 388(b) of the
Energy Policy Act of 2005 (43 U.S.C. 1337 note; Public Law
109-58) is amended by adding at the end the following:
``(4) 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.''.
(b) Dedicated Funding for Outer Continental Shelf Research
Activities.--Section 999H(d) of the Energy Policy Act of 2005
(42 U.S.C. 16378(d)) is amended by striking paragraph (4) and
inserting the following:
``(4) 25 percent shall be used for research activities
required under sections 20 and 21 of the Outer Continental
Shelf Lands Act (43 U.S.C. 1346, 1347).''.
SEC. 8. 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 Act) that were in effect on the date of
enactment of this Act shall continue in full force and effect
after the date of enactment of this Act unless previously
scheduled to expire or until otherwise modified or rescinded
by this Act or any other Act.
(b) Effect on Other Authorities.--This Act does not amend
or alter the provisions of other applicable laws, unless
otherwise noted.
SEC. 9. 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.
______
By Mr. KERRY. (for himself and Mr. Lugar) (by request):
S.J. Res. 34. A joint resolution relating to the approval of the
proposed agreement for nuclear cooperation between the United States
and the Russian Federation; to the Committee on Foreign Relations for a
period not to exceed 45 session days pursuant to 42 U.S.C. 2159.
Mr. KERRY. Mr. President, today Senator Lugar and I introduce, by
request, a resolution of approval of the proposed agreement for
peaceful nuclear cooperation between the United States and the Russian
Federation, which the President transmitted to Congress on May 10,
2010, pursuant to section 123 b. and 123 d. of the Atomic Energy Act.
Pursuant to Section 130 i.(2) of that Act, the majority and minority
leaders have designated Senator Lugar and me to introduce this
resolution.
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