[Congressional Record Volume 156, Number 93 (Monday, June 21, 2010)]
[Senate]
[Pages S5206-S5211]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      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.
                                 ______