[Congressional Record Volume 156, Number 109 (Thursday, July 22, 2010)]
[Senate]
[Pages S6203-S6220]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. KOHL (for himself, Ms. Snowe, and Mr. Inouye):
S. 3637. A bill to authorize appropriations for the Housing
Assistance Council; to the Committee on Banking, Housing, and Urban
Affairs.
Mr. KOHL. Mr. President, I rise today to introduce the Housing
Assistance Council Authorization Act. This legslation will re-authorize
appropriations for the Housing Assistance Council, HAC, which has been
committed to developing affordable housing in rural communities for
over 35 years.
HAC was originally given a three-year authorization through the Farm
Bill in 2008. During the past three years HAC made $46.1 million in
grants and loans to help build 3,878 homes throughout rural America.
The program has leveraged its funding with over $360 million in other
financing and has provided essential technical assistance to local non-
profits throughout the country in the form of capacity building grants.
These critical services help local organizations, rural communities and
cities develop safe and affordable housing.
Throughout the country, approximately \1/5\ of the Nation's
population lives in rural communities. About 7.5 million of the rural
population is living in poverty and 2.5 million of them are children.
Nearly 3.6 million rural households pay more than 30 percent of their
income in housing costs. While housing costs are generally lower in
rural counties, wages are dramatically outpaced by the cost of housing.
Additionally, the housing conditions are often substandard and there
are many families doubled up due to lack of housing. Rural areas lack
both affordable rental units and homeownership opportunities needed to
serve the population.
There are several federal programs that are aimed at developing
affordable housing and economic opportunities in rural communities in
both the Department of Housing and Urban Development and the Department
of Agriculture. However, rural housing programs have traditionally been
underfunded. The administration's fiscal year 2011 budget request
zeroed two programs that were devoted to helping rural communities:
Rural Innovation Fund, and the Self Help Homeownership Program, SHOP.
In many regions, federal funding might be the only assistance available
for housing and economic development. The Housing Assistance Council is
yet another tool that rural communities can utilize when trying to
develop affordable housing.
The presence of the HAC in Wisconsin has made a huge impact on rural
housing development in Wisconsin and other rural communities across the
country. In Wisconsin, HAC has provided close to $5.2 million in grants
and loans to 17 non-profit housing organizations and helped develop 825
units of housing.
Tony Romo, the current quarterback for the Dallas Cowboys, grew up in
a HAC-supported self-help home in Burlington, WI. His parents built the
home as part of Southeastern Wisconsin Housing Corporation's sweat
equity, self-help homeownership program. There are countless examples
linking a child's future success to the stability in their childhood
home. Tony Romo's story provides one such example of how a child raised
in safe, stable homeownership may go on to later success.
I am very honored to work with Senators Snowe and Inouye on this
legislation. Its passage will allow every state to better serve the
needs of the people living in rural areas. I look forward to working
with my colleagues to ensure the adoption of this bill.
______
By Mr. UDALL of Colorado (for himsel, Mr. Crapo, Mr. Gregg, Mr.
Bennet and Ms. Klobuchar):
S. 3640. A bill to amend the Internal Revenue Code of 1986 to
increase the limitations on the amount excluded from the gross estate
with respect to land subject to a qualified conservation easement; to
the Committee on Finance.
Mr. UDALL of Colorado. Mr. President, today I am introducing, along
with my friend and colleague Senator Crapo, legislation to encourage
further protection of our treasured lands, ranches and family farms.
The American Family Farm and Ranchland Protection Act is a bipartisan
piece of legislation that rewards those who protect these lands through
conservation easements by increasing their exemption from the estate
tax. Put simply, we strongly support conservation efforts and believe
we need to do more to give Americans a real incentive to protect our
nation's land. It is a companion bill to similar bipartisan legislation
in the House of Representatives introduced by Congressman Blumenauer.
I have long made conservation of America's natural resources a core
component of my public service. In my role as chair of the National
Parks Subcommittee, I am continuously focused on preserving our public
lands and waters, because we owe it to future generations to leave them
a sustainable environment. We did not inherit the land from our
parents, we are borrowing it from our children.
However, the Government can only do so much, and many of our most
important landscapes are privately owned property. If we are serious
about conservation, we must acknowledge the important role that private
land owners play in the overall effort to preserve our natural
resources for generations to come.
Estate taxes can compromise Americans' ability to conserve private
property. After the death of a loved one, families are often forced to
subdivide a property and sell it for development to pay the costs of
estate taxes. This situation could become more common starting in 2011
when the estate tax is set to revert back to the 2001 level of 55
percent above a $1 million per spouse exemption. Nearly 15 years ago,
in an effort to provide some relief and encourage conservation of
family farms and ranches, Congress created an exemption from the estate
tax of up to 40 percent of the value of the land, capped at $500,000,
for land permanently protected by a conservation easement.
[[Page S6204]]
A conservation easement is a voluntary agreement between a landowner
and the government that permanently restricts certain development and
future uses of the land. It often prevents future commercialization,
while still permitting historic farming and ranching operations to
continue in the family. I know in Colorado, our lands are best cared
for when each generation knows its stewardship will reward the next.
When Congress first created the conservation easement exemption from
estate taxes in 1997, a 40 percent exemption up to a total of $500,000
made sense. Now, that exclusion is simply too small. Since 1997,
average farm real estate values have more than doubled and the average
farm is larger, as larger farms are more likely to be economically
viable. Incidentally, larger farms are also more likely to hold
resources worthy of conservation. The old cap is simply no longer much
of an incentive.
My legislation is a simple solution to the inadequacy of the current
exemption. It raises the exemption for land under a conservation
easement to 50 percent, up to a maximum exclusion of $5 million. It
also encourages more robust conservation easements: less protective
easements will receive a proportionally lower exemption rate. If we can
support greater conservation efforts through a simple update to our
existing tax code, then to me, that sounds like a deal worth taking.
This is a small change, but it has a profound effect. Those who
choose to enter into a conservation easement will leave a dramatically
reduced estate tax burden on their family. This, in turn, will help
keep family farms and ranches whole, preserving them for future
generations.
This is just a small piece of the estate tax puzzle, but it is an
important one. It is critically important for Congress to address the
estate tax before the end of this year to prevent it from going back to
where it was a decade ago, with an exemption of only $1 million. At
that level, it would affect almost every farmer and rancher in my state
and in many others, as well as many, many family businesses.
We can protect the land, respect private property, ease tax burdens,
and preserve our important farming and ranching heritage with the
exemption my legislation proposes. I encourage the Senate to take up
and approve this common-sense bill in an expeditious manner.
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. 3640
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 ``American Family Farm and
Ranchland Protection Act of 2010''.
SEC. 2. INCREASE IN LIMITATIONS ON THE AMOUNT EXCLUDED FROM
THE GROSS ESTATE WITH RESPECT TO LAND SUBJECT
TO A QUALIFIED CONSERVATION EASEMENT.
(a) Increase in Dollar Limitation on Exclusion.--Paragraph
(3) of section 2031(c) of the Internal Revenue Code of 1986
(relating to exclusion limitation) is amended by striking
``the exclusion limitation is'' and all that follows and
inserting ``the exclusion limitation is $5,000,000.''.
(b) Increase in Percentage of Value of Land Which Is
Excludable.--Paragraph (2) of section 2031(c) of such Code
(relating to applicable percentage) is amended--
(1) by striking ``40 percent'' and inserting ``50
percent'', and
(2) by striking ``2 percentage points'' and inserting ``2.5
percentage points''.
(c) Effective Date.--The amendments made by this section
shall apply to the estates of decedents dying after December
31, 2009.
______
By Mr. WHITEHOUSE (for himself, Ms. Snowe, and Mr. Rockefeller):
S. 3641. A bill to create the National Endowment for the Oceans to
promote the protection and conservation of United States ocean,
coastal, and Great Lakes ecosystems, and for other purposes; to the
Committee on Commerce, Science, and Transportation.
Mr. WHITEHOUSE. Mr. President, I rise to discuss bipartisan
legislation coauthored by my friend and fellow New Englander, Olympia
Snowe, to establish a national endowment for the preservation,
conservation, and restoration of our Nation's oceans, our coasts, and
our Great Lakes. I also wish to take a moment and say a particular
thank-you to an original cosponsor of this legislation, the chairman of
the Commerce Committee, Senator Rockefeller of West Virginia.
The National Endowment for the Oceans, along with the President's
recent Executive order establishing our country's first ever national
ocean policy, represent a long overdue and badly needed commitment to
our great waters. While the President's national ocean policy specifies
national objectives and outlines processes and government structures to
restore, protect, and maintain our ocean and coastal resources, the
National Endowment for the Oceans will provide the funding to actually
achieve those public purposes. The endowment would make grants
available to coastal and Great Lakes States, local government agencies,
regional planning bodies, academic institutions, and nonprofit
organizations so these entities could embark on projects to learn more
about and do a better job of protecting our precious natural resources.
Author C. Clarke once said:
How inappropriate to call this planet Earth when it is
quite clearly ocean.
Oceans cover three-quarters of our planet's surface, contain 90
percent of our planet's water, and produce more than two-thirds of our
planet's oxygen. For as long as mankind has lived on the lands of this
planet, oceans have sustained our survival and been part of our
identity.
Speaking at a dinner in Newport, RI, in 1961, President Kennedy said:
We are tied to the ocean . . . and when we go back to the
sea, whether it is to sail or to watch it, we are going back
from whence we came.
My State, and indeed our country, always have kept a special bond
with those great waters.
As a practical matter, my State's economy, as do many others, relies
on Narragansett Bay and Rhode Island Sound to provide the jobs for
fishing, shipbuilding, tourism, and soon, we hope, wind farming. Across
America, coastal waters generate over 50 percent of our Nation's gross
domestic product and support more than 28 million jobs.
So we don't call Rhode Island the Ocean State just because of its
beautiful coasts and beaches. Although as a sailor and proud ambassador
for Rhode Island's tourism industry, I will tell my colleagues that
Rhode Island's coast is one of the most beautiful places on Earth. We
are the Ocean State because from our earliest days we have relied on
the ocean and our beloved Narragansett Bay for trade, for food, for
jobs, for recreation, and for solace and inspiration.
In part, it is Americans' love of the oceans that drives the need now
to protect and restore them. Coastal America is experiencing a huge
population boom, leading to more and more construction that puts
significant pressure on our natural coastline and our wetlands.
Worldwide demand for seafood grows at a pace that our fish stocks
cannot keep pace with, and our demand for energy leads us deeper and
deeper into the ocean in search of fuel.
For too long, we have been takers from our oceans rather than
caretakers of our oceans, and the evidence of our peril is mounting.
From the Arctic Ocean, where ice sheets that have been part of Inuit
lore as far back as memory and oral tradition go, are now disappearing,
to the tropic seas, where coral reefs that serve as nurseries for ocean
life are bleaching and dying, warnings are ringing.
From the far-off waters of the Pacific, where a garbage gyre of
accumulated marine litter has grown larger than the State of Texas, to
our near coasts such as Rhode Island's own Narragansett Bay where the
water temperature has risen 4 degrees in the winter in the last 40
years, an ecosystem shift displacing our historic fisheries, warnings
are ringing.
From the top of the oceanic food chain, where pollutants are turning
our marine mammals into swimming toxic waste and major pelagic species
have suffered a 90-percent population crash, to the very bottom of the
food chain where greenhouse gases change the fundamental chemistry of
our oceans until they may become too acidic to support the plankton
base of the food chain, real warnings are ringing.
Our present day ocean is more acidic today than it has been in 8,000
centuries. A change in ocean chemistry
[[Page S6205]]
happening so quickly, we don't know if species will be able to adapt in
time to survive. Even if we were to act immediately to curb our carbon
pollution, the stress on these ecosystems will certainly worsen for
some time from what we have already put into our atmosphere.
So from the far Arctic to the warm tropics, from the far ocean to the
near coasts, from the top of the food chain to the bottom, real warning
bells are ringing.
We can't begin to know what the total effects on our oceans will be,
but what we have observed so far must be deeply troubling to any
prudent, thoughtful person.
If you have been to the Biltmore Hotel in downtown Providence, you
have seen a large plaque on the wall in the lobby marking the high
water mark of the great hurricane of 1938 when a massive storm surge
filled downtown Providence and the hotel lobby to a depth of about 5
feet. Sea level rise, another ocean threat, could mean that future
storm surges crest much higher, wreaking far worse devastation.
That is a threat that is not unique to Rhode Island. Island nations
around the globe are currently preparing for the possibility--really,
the inevitability--that they will literally be engulfed by the ocean.
The National Intelligence Council reports that at least 30 American
military installations around the world will be underwater if sea
levels rise as projected. There is a dangerous feedback loop. The more
ice that melts, the greater the danger. As darker ocean water traps
rather than reflects the Sun's rays, melting accelerates and leaves us
with less and less time to act, less and less time to spare our
grandchildren the consequences of our generation's selfishness and
folly.
Even seemingly modest changes in temperature, such as the 4 degree
increase in Narragansett Bay, wreak havoc on marine ecosystems, causing
what amounts to a full ecosystem shift. Anybody who relies on marine
life for food, recreation, or a paycheck may soon find their lives
changed by the disruption of the ocean's delicate ecosystem.
As a member of the Senate's Committee on Environment and Public
Works, I find myself habitually frustrated that this ``tragedy of the
commons'' continues to play out, while we stand idly on the sidelines
and fail to intervene.
As a source of jobs and economic opportunity, a key element of our
American tradition and, truly, the origin of life on our planet, our
oceans, and our responsibility for them, ought to occupy a more
prominent place on our national agenda.
Yet, our commitment to ocean and coastal preservation is unreliable
at best--subject to the volatility of the yearly budget and
appropriations process. None other than Robert Ballard, the famed ocean
explorer who discovered the Titanic and is current president of the
Ocean Exploration Trust, recently lamented that available funds for
ocean research often fall far short of desired goals.
As we stand here and BP's oil poisons our Gulf of Mexico, it is time
to ask our political system to put the stewardship of our natural
resources, our ocean resources, at the forefront of our national
agenda. In the past, Congress had established lasting endowments to
protect other important American priorities.
Because we believe that a great society must cherish artistic
expression and study closely the lessons of history, we established--
through the wisdom of Senator Claiborne Pell--the National Endowment
for the Arts and the National Endowment for the Humanities. Because we
believe that a great society must connect communities to each other, we
established a national highway trust fund. Because we believe that a
great society must guarantee its elders a dignified and comfortable
retirement after a lifetime of work, we established Social Security.
Because we are indeed tied to our great waters, we should now act to
establish a national endowment for the oceans, coasts, and Great Lakes.
This legislation, as I said, is bipartisan. I thank Senator Olympia
Snowe for joining in this effort. This legislation is science based,
with much of the money made available through a competitive grant
program that will award funding to research undertaken by academic
institutions, on-the-ground conservation by nonprofit organizations,
and local governments, and protection of critical public
infrastructure.
This legislation is cost effective, coordinating existing efforts of
Federal, local, and private programs, reducing duplication of research
efforts, and crossing political borders to ensure that every dollar is
spent with the greatest possible effect.
This legislation is appropriately paid for with revenue generated
from the oilspill liability trust fund, Outer Continental Shelf
drilling, offshore renewable energy development, and fines collected
for violations of the Federal law off our coastline. Put simply, a
small portion of the revenue extracted from our oceans and great waters
must be reinvested to now protect their long-term viability.
The ocean provides us with great bounty, and we will continue to take
advantage of the ocean's bounty, as we should. We will fish, we will
sail, and we will trade. We will dispose of waste. We will extract fuel
and construct wind farms. We will put pressure on our oceans. Navies
and cruise ships, sailboats and supertankers, will plow their surface.
We cannot change that part of our relationship with the sea.
What we can change is what we do in return. We can, for the first
time, give back. We can become stewards of our oceans--not just takers,
but caretakers.
My wife, Sandra, is a marine biologist. We have watched as the
University of Rhode Island, home of the Graduate School of
Oceanography, has become a world leader in understanding our oceans and
how to conserve them.
We are watching GSO's researchers struggle to keep up with rapid
changes reshaping the ecosystems they study. This endowment will help
science keep pace with change.
The National Oceanic Atmospheric Administration received $167 million
for coastal restoration projects under the Recovery Act last year. More
than 800 proposals for shovel-ready projects came in, totaling $3
billion. But NOAA could only fund 50. This endowment will help us move
forward with those projects that protect our oceans and drive our
economy.
The oceans contain the potential for new discoveries, the potential
for new jobs, and the potential for new solutions to the emerging
crisis off our shores.
But it is time to act. I urge my colleagues to join Senator Snowe and
myself in support of this legislation. Let ours be the generation that
tips the increasingly troubling balance between mankind and the oceans,
from whence we came, a little bit back toward the benefit of our
oceans.
Ms. SNOWE. Mr. President, as I rise today to join Senator Whitehouse
in introducing the National Endowment for the Oceans Act, our Nation
continues to bear the brunt of what has now become the biggest offshore
oil spill in recorded history. Since April 20, 2010, when the mobile
offshore drilling unit Deepwater Horizon exploded and sank 50 miles off
the coast of Louisiana, claiming the lives of 11 men, as much as 180
million gallons of oil has spewed into the Gulf of Mexico. The
ecosystem, environment, and the culture of the Gulf coast region will
feel the effects of this spill for decades to come in the aftermath of
an event that has focused National attention on one of our most
productive, beautiful, and beloved resources: our oceans and coasts. I
also want to acknowledge the support of the Chair of the Senate
Committee on Commerce, Science, and Transportation, Senator Rockefeller
for his cosponsorship of this initiative.
As Ranking Member on the Commerce Subcommittee on Oceans, Atmosphere,
Fisheries, and Coast Guard, and as a Senator from a state which relies
heavily on our marine and coastal resources, I have long appreciated
the tremendous value of America's oceans, coasts, and Great Lakes.
Throughout my time in this body I have pursued policies that would
enhance our stewardship of these treasured regions, and permit
sustainable use of the bounty they provide. This legislation would
ensure a brighter future for these areas that heal our souls and drive
our economy.
Investment in our oceans is investment in our future. The United
States' exclusive economic zone, encompassing
[[Page S6206]]
the area 200 miles out from our shores, covers more of the earth's
surface than our land area, and ultimately what affects our coastal
economy drives our Nation's economy. More than 75 percent of growth in
this country from 1997 to 2007, whether measured in population, jobs,
or gross domestic product, occurred in coastal States. Coastal
counties, covering just 18 percent of our land area, contributed 42
percent of U.S. economic output in 2007 according to a report published
last year by the National Ocean Economics Program. Tourism, inherently
reliant on pristine beaches, healthy habitat to foster fish, shellfish,
and marine mammals, and fishable, swimmable waters, contributed over
half a trillion dollars to our national GDP.
This is why in the 2004 report of the U.S. Commission on Ocean
Policy, one of that body's fundamental priorities was the creation of
an ocean policy trust fund to supplement existing appropriations for
ocean and coastal programs. The Joint Ocean Commission Initiative,
comprised of members of that body and the Pew Oceans Commission, has
consistently listed establishment of an ocean trust fund among its
highest priorities. The National Endowment for the Oceans will at long
last meet this demand and provide a consistent stream of supplemental
funding to enhance our commitment to protecting and sustaining these
most fragile resources.
The fact is, our oceans and coastal regions face more challenges
today than at any time in our history. Global climate change is already
being felt more pressingly off our shores than our scientists yet
understand. In the past few years alone, ocean acidification, a threat
so new it was not even mentioned in the Ocean Commission's report, has
begun to change the fundamental makeup of the ocean food web and
destroy coral reef structures that have for eons girded our shores and
provided nursery grounds for countless species of fish. Scientists
believe increasing ocean temperatures are to blame for a steep and
sudden decline in the southern New England and Long Island Sound
lobster populations. This problem is so grave that fishery managers are
considering closing the entire fishery in this area that has been rich
with lobster throughout the duration of recorded human history. Hypoxic
areas known as ``dead zones'' are cropping up off our shores in areas
where they never before existed, and the annual hypoxic zone in the
Gulf of Mexico regularly encompasses an area the size of the state of
New Jersey. I could go on and on, but my point is abundantly clear--our
oceans need our help.
This vital legislation would set aside a portion of revenues from
offshore oil and gas and renewable energy development on the outer
continental shelf and would apply interest generated by the oil spill
liability trust fund to a dedicated National Endowment for the Oceans.
This endowment would fund three targeted grant programs--one to coastal
states, a second to support regional ocean partnerships, and a third to
fund the activities of additional ocean research not covered by the
other two programs. This money would be available at the discretion of
State and Federal resource managers for activities proven to restore,
protect, maintain, or understand living marine resources and their
habitats and ecosystems.
Funding will supplement, not replace, annual appropriations for the
National Oceanic and Atmospheric Administrations, NOAA, and other
Federal agencies already carrying out critical work in our ocean,
coastal, and Great Lakes regions. In the past I have pressed the
Administration and others in this body to increase Federal support for
these agencies. I will continue to call for increases in NOAA's base
funding until our investment in the agency meets the requirements of
its missions. In the meantime, this program would provide a significant
boost to our efforts to protect, conserve, restore, and understand the
oceans, coasts and Great Lakes so vital to our national heritage,
culture, economy, and identity.
I would like once again to thank Senator Whitehouse for his tireless
ocean advocacy and his invaluable work to introduce the National
Endowment for the Oceans Act, and Senator Rockefeller for his
cosponsorship of this initiative, and I look forward to working with
them on this and many more ocean issues in the future.
______
By Mrs. BOXER (for herself, Mr. Merkley, Mrs. Gillibrand, and Mr.
Begich):
S. 3642. A bill to ensure that the underwriting standards of Fannie
Mae and Freddie Mac facilitate the use of property assessed clean
energy programs to finance the installation of renewable energy and
energy efficiency improvements; to the Committee on Banking, Housing,
and Urban Affairs.
Mrs. BOXER. Mr. President, I rise today to introduce the PACE
Assessment Protection Act of 2010. I am pleased to be joined in this
effort by my colleagues, Senators Merkley, Gillibrand, and Begich.
Property Assessed Clean Energy or PACE programs allow homeowners and
building owners to finance an energy efficiency upgrade to their
property through a tax assessment on that property. In this way,
property owners are able to spread the cost of the upgrades over
several years, lower their energy costs, contribute to a cleaner
environment, and create jobs.
In California, nearly half of the State's 58 counties, as well as
individual cities, have developed PACE programs or plan to start one,
and 23 states as well as the District of Columbia have enacted PACE
legislation. The program has the strong support of the White House and
the Department of Energy, and many States and cities dedicated Recovery
Act funding for their PACE programs.
Despite the promise of this program, the Federal Housing Finance
Agency recently ordered Fannie Mae and Freddie Mac to take actions that
limit the use of PACE programs in conjunction with their home
mortgages, effectively killing the program. FHFA objected that PACE
assessments carry a priority lien, ahead of the lenders, on
participating properties.
The right of States and localities to secure property tax assessments
with a senior position is well established, and in the past, Fannie and
Freddie have always respected this right--such as with assessments to
finance sidewalks, bridges, or parks and other projects that provide a
public benefit--without raising any concerns over the impact of such
priority liens. In addition, the Department of Energy issued guidance
for municipalities intending to use Recovery Act funding for PACE
programs that calls for strong underwriting standards. These guidelines
require that the savings a property owner would see as a result of any
upgrade must be greater than the cost of the assessment, leaving
homeowners in a more financially secure position.
To allow PACE programs to continue, as well as protect homeowners and
taxpayers, we must take immediate action to address the overreach by
the FHFA. My legislation would require Fannie Mae and Freddie Mac to:
adopt sound underwriting standards for financing clean-energy upgrades,
consistent with Department of Energy guidelines; treat a PACE
assessment as any other property tax assessment and respect States'
authority to secure such assessments with a first lien; allow
homeowners to finance, refinance, or sell their home without having to
repay any PACE assessment first; prohibit discrimination against
communities implementing or participating in a PACE program.
The legislation also limits the assessment amount subject to
foreclosure to only the unpaid delinquent amount, along with applicable
penalties, interest and costs, and not the entire amount.
The current uncertainty surrounding PACE programs is jeopardizing
$110 million in Federal investments for California communities, and
millions more in other States, which is simply unacceptable. We must
take action to protect these initiatives because they create jobs, save
homeowners money on their energy bills and help our environment. I urge
my colleagues to join me and to support this legislation.
______
By Mr. McCONNELL (for himself, Ms. Murkowski, Mr. Alexander, Mr.
Inhofe, and Mr. Thune):
S. 3643. A bill to amend the Outer Continental Shelf Lands Act to
reform the management of energy and mineral resources on the Outer
Continental Shelf, to improve oil spill compensation, to terminate the
moratorium on
[[Page S6207]]
deepwater drilling, and for other purposes; read the first time.
Mr. McCONNELL. 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. 3643
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Oil Spill
Response Improvement Act of 2010''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--OUTER CONTINENTAL SHELF REFORM
Sec. 101. Purposes.
Sec. 102. Definitions.
Sec. 103. National policy for the outer Continental Shelf.
Sec. 104. Structural reform of outer Continental Shelf program
management.
Sec. 105. Safety, environmental, and financial reform of the Outer
Continental Shelf Lands Act.
Sec. 106. Study on the effect of the moratoria on new deepwater
drilling in the Gulf of Mexico on employment and small
businesses.
Sec. 107. Reform of other law.
Sec. 108. Safer oil and gas production.
Sec. 109. National Commission on Outer Continental Shelf Oil Spill
Prevention.
Sec. 110. Classification of offshore systems.
Sec. 111. Savings provisions.
Sec. 112. Budgetary effects.
TITLE II--OIL SPILL COMPENSATION
Subtitle A--Oil Spill Liability
PART I--Oil Pollution Act of 1990
Sec. 201. Liability limits.
Sec. 202. Advance payment.
PART II--Oil Spill Liability Trust Fund
Sec. 211. Rate of tax for Oil Spill Liability Trust Fund.
Sec. 212. Limitations on expenditures and borrowing authority.
Subtitle B--Federal Oil Spill Research
Sec. 221. Definitions.
Sec. 222. Federal oil spill research.
Sec. 223. National Academy of Science participation.
Sec. 224. Technical and conforming amendments.
Sec. 225. Oil spill response authority.
Sec. 226. Maritime center of expertise.
Sec. 227. National strike force.
Sec. 228. District preparedness and response teams.
Sec. 229. Oil spill response organizations.
Sec. 230. Program for oil spill and hazardous substance release
response.
Sec. 230a. Oil and hazardous substance liability.
Subtitle C--Oil and Gas Leasing
Sec. 231. Revenue sharing from outer Continental Shelf areas in certain
coastal States.
Sec. 232. Revenue sharing from areas in Alaska Adjacent zone.
Sec. 233. Accelerated revenue sharing to promote coastal resiliency
among Gulf producing States.
Sec. 234. Coastal impact assistance program amendments.
Sec. 235. Production of oil from certain Arctic offshore leases.
Sec. 236. Use of stimulus funds to offset spending.
TITLE III--GUIDANCE ON MORATORIUM ON OUTER CONTINENTAL SHELF DRILLING
Sec. 301. Limitation of moratorium on certain permitting and drilling
activities.
Sec. 302. Deepwater Horizon incident.
TITLE I--OUTER CONTINENTAL SHELF REFORM
SEC. 101. PURPOSES.
The purposes of this title are--
(1) to rationalize and reform the responsibilities of the
Secretary of the Interior with respect to the management of
the outer Continental Shelf in order to improve the
management, oversight, accountability, safety, and
environmental protection of all the resources on the outer
Continental Shelf;
(2) to provide independent development and enforcement of
safety and environmental laws (including regulations)
governing--
(A) energy development and mineral extraction activities on
the outer Continental Shelf; and
(B) related offshore activities; and
(3) to ensure a fair return to the taxpayer from, and
independent management of, royalty and revenue collection and
disbursement activities from mineral and energy resources.
SEC. 102. DEFINITIONS.
In this title:
(1) Department.--The term ``Department'' means the
Department of the Interior.
(2) Outer continental shelf.--The term ``outer Continental
Shelf'' has the meaning given the term in section 2 of the
Outer Continental Shelf Lands Act (43 U.S.C. 1331).
(3) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
SEC. 103. NATIONAL POLICY FOR THE OUTER CONTINENTAL SHELF.
Section 3 of the Outer Continental Shelf Lands Act (43
U.S.C. 1332) is amended--
(1) by striking paragraph (3) and inserting the following:
``(3) the outer Continental Shelf is a vital national
resource reserve held by the Federal Government for the
public, which should be managed in a manner that--
``(A) recognizes the need of the United States for
competitive domestic sources of energy, food, minerals, and
other resources;
``(B) minimizes the potential impacts of development of
those resources on the marine and coastal environment and on
human health and safety; and
``(C) acknowledges the long-term economic value to the
United States of the balanced, expeditious, and orderly
management and production of those resources that safeguards
the environment and respects the multiple values and uses of
the outer Continental Shelf;'';
(2) in paragraph (4)(C), by striking the period at the end
and inserting a semicolon;
(3) in paragraph (5), by striking ``; and'' and inserting a
semicolon;
(4) by redesignating paragraph (6) as paragraph (7);
(5) by inserting after paragraph (5) the following:
``(6) exploration, development, and production of energy
and minerals on the outer Continental Shelf should be allowed
only when those activities can be accomplished in a manner
that provides reasonable assurance of adequate protection
against harm to life, health, the environment, property, or
other users of the waters, seabed, or subsoil; and''; and
(6) in paragraph (7) (as so redesignated)--
(A) by striking ``should be'' and inserting ``shall be'';
and
(B) by adding ``best available commercial'' after
``using''.
SEC. 104. STRUCTURAL REFORM OF OUTER CONTINENTAL SHELF
PROGRAM MANAGEMENT.
(a) In General.--The Outer Continental Shelf Lands Act (43
U.S.C. 1331 et seq.) is amended by adding to the end the
following:
``SEC. 32. STRUCTURAL REFORM OF OUTER CONTINENTAL SHELF
PROGRAM MANAGEMENT.
``(a) Leasing, Permitting, and Regulation Bureaus.--
``(1) Establishment of bureaus.--
``(A) In general.--Subject to the discretion granted by
Reorganization Plan Number 3 of 1950 (64 Stat. 1262; 43
U.S.C. 1451 note), the Secretary shall establish in the
Department of the Interior not more than 2 bureaus to carry
out the leasing, permitting, and safety and environmental
regulatory functions vested in the Secretary by this Act and
the Federal Oil and Gas Royalty Management Act of 1982 (30
U.S.C. 1701 et seq.) related to the outer Continental Shelf.
``(B) Conflicts of interest.--In establishing the bureaus
under subparagraph (A), the Secretary shall ensure, to the
maximum extent practicable, that any potential organizational
conflicts of interest related to leasing, revenue creation,
environmental protection, and safety are eliminated.
``(2) Director.--Each bureau shall be headed by a Director,
who shall be appointed by the President, by and with the
advice and consent of the Senate.
``(3) Compensation.--Each Director shall be compensated at
the rate provided for level V of the Executive Schedule under
section 5316 of title 5, United States Code.
``(4) Qualifications.--Each Director shall be a person who,
by reason of professional background and demonstrated ability
and experience, is specially qualified to carry out the
duties of the office.
``(b) Royalty and Revenue Office.--
``(1) Establishment of office.--Subject to the discretion
granted by Reorganization Plan Number 3 of 1950 (64 Stat.
1262; 43 U.S.C. 1451 note), the Secretary shall establish in
the Department of the Interior an office to carry out the
royalty and revenue management functions vested in the
Secretary by this Act and the Federal Oil and Gas Royalty
Management Act of 1982 (30 U.S.C. 1701 et seq.).
``(2) Director.--The office established under paragraph (1)
shall be headed by a Director, who shall be appointed by the
President, by and with the advice and consent of the Senate.
``(3) Compensation.--The Director shall be compensated at
the rate provided for level V of the Executive Schedule under
section 5316 of title 5, United States Code.
``(4) Qualifications.--The Director shall be a person who,
by reason of professional background and demonstrated ability
and experience, is specially qualified to carry out the
duties of the office.
``(c) OCS Safety and Environmental Advisory Board.--
``(1) Establishment.--The Secretary shall establish, under
the Federal Advisory Committee Act (5 U.S.C. App.), an Outer
Continental Shelf Safety and Environmental Advisory Board
(referred to in this subsection as the `Board'), to provide
the Secretary and the Directors of the bureaus established
under this section with independent peer-reviewed scientific
and technical advice on safe and environmentally compliant
energy and mineral resource exploration, development, and
production activities.
``(2) Membership.--
``(A) Size.--
[[Page S6208]]
``(i) In general.--The Board shall consist of not more than
12 members, chosen to reflect a range of expertise in
scientific, engineering, management, and other disciplines
related to safe and environmentally compliant energy and
mineral resource exploration, development, and production
activities.
``(ii) Consultation.--The Secretary shall consult with the
National Academy of Sciences and the National Academy of
Engineering to identify potential candidates for membership
on the Board.
``(B) Term.--The Secretary shall appoint Board members to
staggered terms of not more than 4 years, and shall not
appoint a member for more than 2 consecutive terms.
``(C) Chair.--The Secretary shall appoint the Chair for the
Board.
``(3) Meetings.--The Board shall--
``(A) meet not less than 3 times per year; and
``(B) at least once per year, shall host a public forum to
review and assess the overall safety and environmental
performance of outer Continental Shelf energy and mineral
resource activities.
``(4) Reports.--Reports of the Board shall--
``(A) be submitted to Congress; and
``(B) made available to the public in an electronically
accessible form.
``(5) Travel expenses.--Members of the Board, other than
full-time employees of the Federal Government, while
attending a meeting of the Board or while otherwise serving
at the request of the Secretary or the Director while serving
away from their homes or regular places of business, may be
allowed travel expenses, including per diem in lieu of
subsistence, as authorized by section 5703 of title 5, United
States Code, for individuals in the Federal Government
serving without pay.
``(d) Special Personnel Authorities.--
``(1) Direct hiring authority for critical personnel.--
``(A) In general.--Notwithstanding sections 3104, 3304, and
3309 through 3318 of title 5, United States Code, the
Secretary may, upon a determination that there is a severe
shortage of candidates or a critical hiring need for
particular positions, recruit and directly appoint highly
qualified accountants, scientists, engineers, or critical
technical personnel into the competitive service, as officers
or employees of any of the organizational units established
under this section.
``(B) Requirements.--In exercising the authority granted
under subparagraph (A), the Secretary shall ensure that any
action taken by the Secretary--
``(i) is consistent with the merit principles of chapter 23
of title 5, United States Code; and
``(ii) complies with the public notice requirements of
section 3327 of title 5, United States Code.
``(2) Critical pay authority.--
``(A) In general.--Notwithstanding section 5377 of title 5,
United States Code, and without regard to the provisions of
that title governing appointments in the competitive service
or the Senior Executive Service and chapters 51 and 53 of
that title (relating to classification and pay rates), the
Secretary may establish, fix the compensation of, and appoint
individuals to critical positions needed to carry out the
functions of any of the organizational units established
under this section, if the Secretary certifies that--
``(i) the positions--
``(I) require expertise of an extremely high level in a
scientific or technical field; and
``(II) any of the organizational units established in this
section would not successfully accomplish an important
mission without such an individual; and
``(ii) exercise of the authority is necessary to recruit an
individual exceptionally well qualified for the position.
``(B) Limitations.--The authority granted under
subparagraph (A) shall be subject to the following
conditions:
``(i) The number of critical positions authorized by
subparagraph (A) may not exceed 40 at any 1 time in either of
the bureaus established under this section.
``(ii) The term of an appointment under subparagraph (A)
may not exceed 4 years.
``(iii) An individual appointed under subparagraph (A) may
not have been an employee of the Department of the Interior
during the 2-year period prior to the date of appointment.
``(iv) Total annual compensation for any individual
appointed under subparagraph (A) may not exceed the highest
total annual compensation payable at the rate determined
under section 104 of title 3, United States Code.
``(v) An individual appointed under subparagraph (A) may
not be considered to be an employee for purposes of
subchapter II of chapter 75 of title 5, United States Code.
``(C) Notification.--Each year, the Secretary shall submit
to Congress a notification that lists each individual
appointed under this paragraph.
``(3) Reemployment of civilian retirees.--
``(A) In general.--Notwithstanding part 553 of title 5,
Code of Federal Regulations (relating to reemployment of
civilian retirees to meet exceptional employment needs), or
successor regulations, the Secretary may approve the
reemployment of an individual to a particular position
without reduction or termination of annuity if the hiring of
the individual is necessary to carry out a critical function
of any of the organizational units established under this
section for which suitably qualified candidates do not exist.
``(B) Limitations.--An annuitant hired with full salary and
annuities under the authority granted by subparagraph (A)--
``(i) shall not be considered an employee for purposes of
subchapter III of chapter 83 and chapter 84 of title 5,
United States Code;
``(ii) may not elect to have retirement contributions
withheld from the pay of the annuitant;
``(iii) may not use any employment under this paragraph as
a basis for a supplemental or recomputed annuity; and
``(iv) may not participate in the Thrift Savings Plan under
subchapter III of chapter 84 of title 5, United States Code.
``(C) Limitation on term.--The term of employment of any
individual hired under subparagraph (A) may not exceed an
initial term of 2 years, with an additional 2-year
appointment under exceptional circumstances.
``(e) Continuity of Authority.--Subject to the discretion
granted by Reorganization Plan Number 3 of 1950 (64 Stat.
1262; 43 U.S.C. 1451 note), any reference in any law, rule,
regulation, directive, or instruction, or certificate or
other official document, in force immediately prior to the
date of enactment of this section--
``(1) to the Minerals Management Service that pertains to
any of the duties and authorities described in this section
shall be deemed to refer and apply to the appropriate bureaus
and offices established under this section;
``(2) to the Director of the Minerals Management Service
that pertains to any of the duties and authorities described
in this section shall be deemed to refer and apply to the
Director of the bureau or office under this section to whom
the Secretary has assigned the respective duty or authority;
and
``(3) to any other position in the Minerals Management
Service that pertains to any of the duties and authorities
described in this section shall be deemed to refer and apply
to that same or equivalent position in the appropriate bureau
or office established under this section.''.
(b) Conforming Amendment.--Section 5316 of title 5, United
States Code, is amended by striking ``Director, Bureau of
Mines, Department of the Interior'' and inserting the
following:
``Bureau Directors, Department of the Interior (2).
``Director, Royalty and Revenue Office, Department of the
Interior.''.
SEC. 105. SAFETY, ENVIRONMENTAL, AND FINANCIAL REFORM OF THE
OUTER CONTINENTAL SHELF LANDS ACT.
(a) Definitions.--Section 2 of the Outer Continental Shelf
Lands Act (43 U.S.C. 1331) is amended by adding at the end
the following:
``(r) Safety Case.--The term `safety case' means a complete
set of safety documentation that provides a basis for
determining whether a system is adequately safe for a given
application in a given environment.''.
(b) Administration of Leasing.--Section 5(a) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1334(a)) is amended in
the second sentence--
(1) by striking ``The Secretary may at any time'' and
inserting ``The Secretary shall''; and
(2) by inserting after ``provide for'' the following:
``operational safety, the protection of the marine and
coastal environment,''.
(c) Maintenance of Leases.--Section 6 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1335) is amended by
adding at the end the following:
``(f) Review of Bond and Surety Amounts.--Not later than
May 1, 2011, and every 5 years thereafter, the Secretary
shall--
``(1) review the minimum financial responsibility
requirements for mineral leases under subsection (a)(11); and
``(2) adjust for inflation based on the Consumer Price
Index for all Urban Consumers published by the Bureau of
Labor Statistics of the Department of Labor, and recommend to
Congress any further changes to existing financial
responsibility requirements necessary to permit lessees to
fulfill all obligations under this Act or the Oil Pollution
Act of 1990 (33 U.S.C. 2701 et seq.).
``(g) Periodic Fiscal Reviews and Reports.--
``(1) Royalty rates.--
``(A) In general.--Not later than 1 year after the date of
enactment of this subsection and every 4 years thereafter,
the Secretary shall carry out a review of, and prepare a
report that describes--
``(i) the royalty and rental rates included in new offshore
oil and gas leases and the rationale for the rates;
``(ii) whether, in the view of the Secretary, the royalty
and rental rates described in subparagraph (A) would yield a
fair return to the public while promoting the production of
oil and gas resources in a timely manner; and
``(iii) whether, based on the review, the Secretary intends
to modify the royalty or rental rates.
``(B) Public participation.--In carrying out a review and
preparing a report under subparagraph (A), the Secretary
shall provide to the public an opportunity to participate.
``(2) Comparative review of fiscal system.--
``(A) In general.--Not later than 1 year after the date of
enactment of this subsection and every 4 years thereafter,
the Secretary in consultation with the Secretary of the
Treasury, shall carry out a comprehensive review of all
components of the Federal
[[Page S6209]]
offshore oil and gas fiscal system, including requirements
and trends for bonus bids, rental rates, royalties, oil and
gas taxes, income taxes, wage requirements, regulatory
compliance costs, oil and gas fees, and other significant
financial elements.
``(B) Inclusions.--The review shall include--
``(i) information and analyses comparing the offshore bonus
bids, rents, royalties, taxes, and fees of the Federal
Government to the offshore bonus bids, rents, royalties,
taxes, and fees of other resource owners (including States
and foreign countries); and
``(ii) an assessment of the overall offshore oil and gas
fiscal system in the United States, as compared to foreign
countries.
``(C) Independent advisory committee.--In carrying out a
review under this paragraph, the Secretary shall convene and
seek the advice of an independent advisory committee
comprised of oil and gas and fiscal experts from States,
Indian tribes, academia, the energy industry, and appropriate
nongovernmental organizations.
``(D) Report.--The Secretary shall prepare a report that
contains--
``(i) the contents and results of the review carried out
under this paragraph for the period covered by the report;
and
``(ii) any recommendations of the Secretary and the
Secretary of the Treasury based on the contents and results
of the review.
``(E) Combined report.--The Secretary may combine the
reports required by paragraphs (1) and (2)(D) into 1 report.
``(3) Report deadline.--Not later than 30 days after the
date on which the Secretary completes each report under this
subsection, the Secretary shall submit copies of the report
to--
``(A) the Committee on Energy and Natural Resources of the
Senate;
``(B) the Committee on Finance of the Senate;
``(C) the Committee on Natural Resources of the House of
Representatives; and
``(D) the Committee on Ways and Means of the House of
Representatives.''.
(d) Leases, Easements, and Rights-of-Way.--Section 8 of the
Outer Continental Shelf Lands Act (43 U.S.C. 1337) is amended
by striking subsection (d) and inserting the following:
``(d) Disqualification From Bidding.--No bid for a lease
may be submitted by any entity that the Secretary finds,
after prior public notice and opportunity for a hearing--
``(1) is not meeting due diligence, safety, or
environmental requirements, constituting significant
infractions, on other leases; or
``(2)(A) is a responsible party for a vessel or a facility
from which oil is discharged, for purposes of section 1002 of
the Oil Pollution Act of 1990 (33 U.S.C. 2702); and
``(B) has failed to meet the obligations of the responsible
party under that Act to provide compensation for covered
removal costs and damages.''.
(e) Exploration Plans.--Section 11 of the Outer Continental
Shelf Lands Act (43 U.S.C. 1340) is amended--
(1) in subsection (c)--
(A) in the fourth sentence of paragraph (1), by striking
``within thirty days of its submission'' and inserting ``by
the deadline described in paragraph (5)'';
(B) by striking paragraph (3) and inserting the following:
``(3) Minimum requirements.--
``(A) In general.--An exploration plan submitted under this
subsection shall include, in such degree of detail as the
Secretary by regulation may require--
``(i) a complete description and schedule of the
exploration activities to be undertaken;
``(ii) a description of the equipment to be used for the
exploration activities, including--
``(I) a description of the drilling unit;
``(II) a statement of the design and condition of major
safety-related pieces of equipment;
``(III) a description of any new technology to be used; and
``(IV) a statement demonstrating that the equipment to be
used meets the best available commercial technology
requirements under section 21(b);
``(iii) a map showing the location of each well to be
drilled;
``(iv)(I) a scenario for the potential blowout of the well
involving the highest expected volume of liquid hydrocarbons;
and
``(II) a complete description of a response plan to control
the blowout and manage the accompanying discharge of
hydrocarbons, including--
``(aa) the technology and estimated timeline for regaining
control of the well; and
``(bb) the strategy, organization, and resources to be used
to avoid harm to the environment and human health from
hydrocarbons; and
``(v) any other information determined to be relevant by
the Secretary.
``(B) Deepwater wells.--
``(i) In general.--Before conducting exploration activities
in water depths greater than 500 feet, the holder of a lease
shall submit to the Secretary for approval a deepwater
operations plan prepared by the lessee in accordance with
this subparagraph.
``(ii) Technology requirements.--A deepwater operations
plan under this subparagraph shall be based on the best
available commercial technology to ensure safety in carrying
out the exploration activity and the blowout response plan.
``(iii) Systems analysis required.--The Secretary shall not
approve a deepwater operations plan under this subparagraph
unless the plan includes a technical systems analysis of--
``(I) the safety of the proposed exploration activity;
``(II) the blowout prevention technology; and
``(III) the blowout and spill response plans.''; and
(C) by adding at the end the following:
``(5) Deadline for approval.--
``(A) In general.--In the case of a lease issued under a
sale held after March 17, 2010, the deadline for approval of
an exploration plan referred to in the fourth sentence of
paragraph (1) is--
``(i) the date that is 90 days after the date on which the
plan or the modifications to the plan are submitted; or
``(ii) the date that is not later than an additional 180
days after the deadline described in clause (i), if the
Secretary makes a finding that additional time is necessary
to complete any environmental, safety, or other reviews.
``(B) Existing leases.--In the case of a lease issued under
a sale held on or before March 17, 2010, the Secretary, with
the consent of the holder of the lease, may extend the
deadline applicable to the lease for such additional time as
the Secretary determines is necessary to complete any
environmental, safety, or other reviews.
``(C) Effect on term of lease.--In the case of any
extension of the deadline for approval of an exploration plan
under this Act, the additional time taken by the Secretary
shall not be assessed against the term of the associated
lease.'';
(2) by redesignating subsections (e) through (h) as
subsections (f) through (i), respectively; and
(3) by striking subsection (d) and inserting the following:
``(d) Drilling Permits.--
``(1) In general.--The Secretary shall, by regulation,
require that any lessee operating under an approved
exploration plan obtain a permit--
``(A) before the lessee drills a well in accordance with
the plan; and
``(B) before the lessee significantly modifies the well
design originally approved by the Secretary.
``(2) Engineering review required.--The Secretary may not
grant any drilling permit until the date of completion of a
full review of the well system by not less than 2 agency
engineers, including a written determination that--
``(A) critical safety systems (including blowout
prevention) will use best available commercial technology;
and
``(B) blowout prevention systems will include redundancy
and remote triggering capability.
``(3) Modification review required.--The Secretary may not
approve any modification of a permit without a determination,
after an additional engineering review, that the modification
will not compromise the safety of the well system previously
approved.
``(4) Operator safety and environmental management
required.--The Secretary may not grant any drilling permit or
modification of the permit until the date of completion and
approval of a safety and environmental management plan that--
``(A) is to be used by the operator during all well
operations; and
``(B) includes--
``(i) a description of the expertise and experience
requirements of crew members who will be present on the rig;
and
``(ii) designation of at least 2 environmental and safety
managers that--
``(I) are or will be employees of the operator;
``(II) would be present on the rig at all times; and
``(III) have overall responsibility for the safety and
environmental management of the well system and spill
response plan; and
``(C) not later than May 1, 2012, requires that all
employees on the rig meet the training and experience
requirements under section 21(b)(4).
``(e) Disapproval of Exploration Plan.--
``(1) In general.--The Secretary shall disapprove an
exploration plan submitted under this section if the
Secretary determines that, because of exceptional geological
conditions in the lease areas, exceptional resource values in
the marine or coastal environment, or other exceptional
circumstances, that--
``(A) implementation of the exploration plan would probably
cause serious harm or damage to life (including fish and
other aquatic life), property, mineral deposits, national
security or defense, or the marine, coastal or human
environments;
``(B) the threat of harm or damage would not disappear or
decrease to an acceptable extent within a reasonable period
of time; and
``(C) the advantages of disapproving the exploration plan
outweigh the advantages of exploration.
``(2) Compensation.--If an exploration plan is disapproved
under this subsection, the provisions of subparagraphs (B)
and (C) of section 25(h)(2) shall apply to the lease and the
plan or any modified plan, except that the reference in
section 25(h)(2) to a development and production plan shall
be considered to be a reference to an exploration plan.''.
[[Page S6210]]
(f) Outer Continental Shelf Leasing Program.--Section 18 of
the Outer Continental Shelf Lands Act (43 U.S.C. 1344) is
amended--
(1) in subsection (a)--
(A) in the second sentence, by inserting after ``national
energy needs'' the following: ``and the need for the
protection of the marine and coastal environment and
resources'';
(B) in paragraph (1), by striking ``considers'' and
inserting ``gives equal consideration to''; and
(C) in paragraph (3), by striking ``, to the maximum extent
practicable,'';
(2) in subsection (b)--
(A) in paragraph (3), by striking ``and'' at the end;
(B) in paragraph (4), by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(5) provide technical review and oversight of the
exploration plan and a systems review of the safety of the
well design and other operational decisions;
``(6) conduct regular and thorough safety reviews and
inspections, and;
``(7) enforce all applicable laws (including
regulations).'';
(3) in the second sentence of subsection (d)(2), by
inserting ``, the head of an interested Federal agency,''
after ``Attorney General'';
(4) in the first sentence of subsection (g), by inserting
before the period at the end the following: ``, including
existing inventories and mapping of marine resources
previously undertaken by the Department of the Interior and
the National Oceanic and Atmospheric Administration,
information provided by the Department of Defense, and other
available data regarding energy or mineral resource
potential, navigation uses, fisheries, aquaculture uses,
recreational uses, habitat, conservation, and military uses
on the outer Continental Shelf''; and
(5) by adding at the end the following:
``(i) Research and Development.--
``(1) In general.--The Secretary shall carry out a program
of research and development to ensure the continued
improvement of methodologies for characterizing resources of
the outer Continental Shelf and conditions that may affect
the ability to develop and use those resources in a safe,
sound, and environmentally responsible manner.
``(2) Inclusions.--Research and development activities
carried out under paragraph (1) may include activities to
provide accurate estimates of energy and mineral reserves and
potential on the outer Continental Shelf and any activities
that may assist in filling gaps in environmental data needed
to develop each leasing program under this section.
``(3) Leasing activities.--Research and development
activities carried out under paragraph (1) shall not be
considered to be leasing or pre-leasing activities for
purposes of this Act.''.
(g) Environmental Studies.--Section 20 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1346) is amended--
(1) by redesignating subsections (a) through (f) as
subsections (b) through (g), respectively;
(2) by inserting before subsection (b) (as so redesignated)
the following:
``(a) Comprehensive and Independent Studies.--
``(1) In general.--The Secretary shall develop and carry
out programs for the collection, evaluation, assembly,
analysis, and dissemination of environmental and other
resource data that are relevant to carrying out the purposes
of this Act.
``(2) Scope of research.--The programs under this
subsection shall include--
``(A) the gathering of baseline data in areas before energy
or mineral resource development activities occur;
``(B) ecosystem research and monitoring studies to support
integrated resource management decisions; and
``(C) the improvement of scientific understanding of the
fate, transport, and effects of discharges and spilled
materials, including deep water hydrocarbon spills, in the
marine environment.
``(3) Use of data.--The Secretary shall ensure that
information from the studies carried out under this section--
``(A) informs the management of energy and mineral
resources on the outer Continental Shelf including any areas
under consideration for oil and gas leasing; and
``(B) contributes to a broader coordination of energy and
mineral resource development activities within the context of
best available science.
``(4) Independence.--The Secretary shall create a program
within the appropriate bureau established under section 32
that shall--
``(A) be programmatically separate and distinct from the
leasing program;
``(B) carry out the environmental studies under this
section;
``(C) conduct additional environmental studies relevant to
the sound management of energy and mineral resources on the
outer Continental Shelf;
``(D) provide for external scientific review of studies
under this section, including through appropriate
arrangements with the National Academy of Sciences; and
``(E) subject to the restrictions of subsections (g) and
(h) of section 18, make available to the public studies
conducted and data gathered under this section.''; and
(3) in the first sentence of subsection (b)(1) (as so
redesignated), by inserting ``every 3 years'' after ``shall
conduct''.
(h) Safety Research and Regulations.--Section 21 of the
Outer Continental Shelf Lands Act (43 U.S.C. 1347) is
amended--
(1) in the first sentence of subsection (a), by striking
``Upon the date of enactment of this section,'' and inserting
``Not later than May 1, 2011, and every 3 years
thereafter,'';
(2) by striking subsection (b) and inserting the following:
``(b) Best Available Technologies and Practices.--
``(1) In general.--In exercising respective
responsibilities under this Act, the Secretary, and the
Secretary of the Department in which the Coast Guard is
operating, shall require, on all new drilling and production
operations and, to the maximum extent practicable, on
existing operations, the use of the best available and safest
commercial technologies and practices, if the failure of
equipment would have a significant effect on safety, health,
or the environment.
``(2) Identification of best available technologies.--Not
later than May 1, 2011, the Secretary shall identify and
publish a list, to be updated and maintained to reflect
technological advances, of best available commercial
technologies for key areas of well design and operation,
including blowout prevention and blowout and oil spill
response.
``(3) Safety case.--Not later than May 1, 2011, the
Secretary shall promulgate regulations requiring a safety
case be submitted along with each new application for a
permit to drill on the outer Continental Shelf.
``(4) Employee training.--
``(A) In general.--Not later than May 1, 2011, the
Secretary shall promulgate regulations setting standards for
training for all workers on offshore facilities (including
mobile offshore drilling units) conducting energy and mineral
resource exploration, development, and production operations
on the outer Continental Shelf.
``(B) Requirements.--The training standards under this
paragraph shall require that employers of workers described
in subparagraph (A)--
``(i) establish training programs approved by the
Secretary; and
``(ii) demonstrate that employees involved in the offshore
operations meet standards that demonstrate the aptitude of
the employees in critical technical skills.
``(C) Experience.--The training standards under this
section shall require that any offshore worker with less than
5 years of applied experience in offshore facilities
operations pass a certification requirement after receiving
the appropriate training.
``(D) Monitoring training courses.--The Secretary shall
ensure that Department employees responsible for inspecting
offshore facilities monitor, observe, and report on training
courses established under this paragraph, including attending
a representative number of the training sessions, as
determined by the Secretary.''; and
(3) by adding at the end the following:
``(g) Technology Research and Risk Assessment Program.--
``(1) In general.--The Secretary shall carry out a program
of research, development, and risk assessment to address
technology and development issues associated with outer
Continental Shelf energy and mineral resource activities,
with the primary purpose of informing the role of research,
development, and risk assessment relating to safety,
environmental protection, and spill response.
``(2) Specific areas of focus.--The program under this
subsection shall include research, development, and other
activities related to--
``(A) risk assessment, using all available data from safety
and compliance records both within the United States and
internationally;
``(B) analysis of industry trends in technology,
investment, and interest in frontier areas;
``(C) analysis of incidents investigated under section 22;
``(D) reviews of best available commercial technologies,
including technologies associated with pipelines, blowout
preventer mechanisms, casing, well design, and other
associated infrastructure related to offshore energy
development;
``(E) oil spill response and mitigation;
``(F) risks associated with human factors; and
``(G) renewable energy operations.
``(3) Information sharing activities.--
``(A) Domestic activities.--The Secretary shall carry out
programs to facilitate the exchange and dissemination of
scientific and technical information and best practices
related to the management of safety and environmental issues
associated with energy and mineral resource exploration,
development, and production.
``(B) International cooperation.--The Secretary shall carry
out programs to cooperate with international organizations
and foreign governments to share information and best
practices related to the management of safety and
environmental issues associated with energy and mineral
resource exploration, development, and production.
``(4) Reports.--The program under this subsection shall
provide to the Secretary, each Bureau Director under section
32, and the public quarterly reports that address--
``(A) developments in each of the areas under paragraph
(2); and
``(B)(i) any accidents that have occurred in the past
quarter; and
[[Page S6211]]
``(ii) appropriate responses to the accidents.
``(5) Independence.--The Secretary shall create a program
within the appropriate bureau established under section 32
that shall--
``(A) be programmatically separate and distinct from the
leasing program;
``(B) carry out the studies, analyses, and other activities
under this subsection;
``(C) provide for external scientific review of studies
under this section, including through appropriate
arrangements with the National Academy of Sciences; and
``(D) make available to the public studies conducted and
data gathered under this section.
``(6) Use of data.--The Secretary shall ensure that the
information from the studies and research carried out under
this section inform the development of safety practices and
regulations as required by this Act and other applicable
laws.''.
(i) Enforcement.--Section 22 of the Outer Continental Shelf
Lands Act (43 U.S.C. 1348) is amended--
(1) in subsection (d)--
(A) in paragraph (1)--
(i) in the first sentence, by inserting ``, each loss of
well control, blowout, activation of the shear rams, and
other accident that presented a serious risk to human or
environmental safety,'' after ``fire''; and
(ii) in the last sentence, by inserting ``as a condition of
the lease'' before the period at the end;
(B) in the last sentence of paragraph (2), by inserting
``as a condition of lease'' before the period at the end;
(2) in subsection (e)--
(A) by striking ``(e) The'' and inserting the following:
``(e) Review of Alleged Safety Violations.--
``(1) In general.--The''; and
(B) by adding at the end the following:
``(2) Investigation.--The Secretary shall investigate any
allegation from any employee of the lessee or any
subcontractor of the lessee made under paragraph (1).''; and
(3) by adding at the end of the section the following:
``(g) Independent Investigation.--
``(1) In general.--At the request of the Secretary, the
National Transportation Safety Board may conduct an
independent investigation of any accident, occurring in the
outer Continental Shelf and involving activities under this
Act, that does not otherwise fall within the definition of an
accident or major marine casualty, as those terms are used in
chapter 11 of title 49, United States Code.
``(2) Transportation accident.--For purposes of an
investigation under this subsection, the accident that is the
subject of the request by the Secretary shall be determined
to be a transportation accident within the meaning of that
term in chapter 11 of title 49, United States Code.
``(h) Information on Causes and Corrective Actions.--
``(1) In general.--For each incident investigated under
this section, the Secretary shall promptly make available to
all lessees and the public technical information about the
causes and corrective actions taken.
``(2) Public database.--All data and reports related to an
incident described in paragraph (1) shall be maintained in a
database that is available to the public.
``(i) Inspection Fee.--
``(1) In general.--To the extent necessary to fund the
inspections described in this paragraph, the Secretary shall
collect a non-refundable inspection fee, which shall be
deposited in the Ocean Energy Enforcement Fund established
under paragraph (3), from the designated operator for
facilities subject to inspection under subsection (c).
``(2) Establishment.--The Secretary shall establish, by
rule, inspection fees--
``(A) at an aggregate level equal to the amount necessary
to offset the annual expenses of inspections of outer
Continental Shelf facilities (including mobile offshore
drilling units) by the Department of the Interior; and
``(B) using a schedule that reflects the differences in
complexity among the classes of facilities to be inspected.
``(3) Ocean energy enforcement fund.--There is established
in the Treasury a fund, to be known as the `Ocean Energy
Enforcement Fund' (referred to in this subsection as the
`Fund'), into which shall be deposited amounts collected
under paragraph (1) and which shall be available as provided
under paragraph (4).
``(4) Availability of fees.--Notwithstanding section 3302
of title 31, United States Code, all amounts collected by the
Secretary under this section--
``(A) shall be credited as offsetting collections;
``(B) shall be available for expenditure only for purposes
of carrying out inspections of outer Continental Shelf
facilities (including mobile offshore drilling units) and the
administration of the inspection program;
``(C) shall be available only to the extent provided for in
advance in an appropriations Act; and
``(D) shall remain available until expended.
``(5) Annual reports.--
``(A) In general.--Not later than 60 days after the end of
each fiscal year beginning with fiscal year 2011, the
Secretary shall submit to the Committee on Energy and Natural
Resources of the Senate and the Committee on Natural
Resources of the House of Representatives a report on the
operation of the Fund during the fiscal year.
``(B) Contents.--Each report shall include, for the fiscal
year covered by the report, the following:
``(i) A statement of the amounts deposited into the Fund.
``(ii) A description of the expenditures made from the Fund
for the fiscal year, including the purpose of the
expenditures.
``(iii) Recommendations for additional authorities to
fulfill the purpose of the Fund.
``(iv) A statement of the balance remaining in the Fund at
the end of the fiscal year.''.
(j) Remedies and Penalties.--Section 24 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1350) is amended--
(1) by striking subsection (b) and inserting the following:
``(b) Civil Penalty.--
``(1) In general.--Subject to paragraphs (2) through (3),
if any person fails to comply with this Act, any term of a
lease or permit issued under this Act, or any regulation or
order issued under this Act, the person shall be liable for a
civil administrative penalty of not more than $75,000 for
each day of continuance of each failure.
``(2) Administration.--The Secretary may assess, collect,
and compromise any penalty under paragraph (1).
``(3) Hearing.--No penalty shall be assessed under this
subsection until the person charged with a violation has been
given the opportunity for a hearing.
``(4) Adjustment.--The penalty amount specified in this
subsection shall increase each year to reflect any increases
in the Consumer Price Index for All Urban Consumers published
by the Bureau of Labor Statistics of the Department of
Labor.'';
(2) in subsection (c)--
(A) in the first sentence, by striking ``$100,000'' and
inserting ``$10,000,000''; and
(B) by adding at the end the following: ``The penalty
amount specified in this subsection shall increase each year
to reflect any increases in the Consumer Price Index for All
Urban Consumers published by the Bureau of Labor Statistics
of the Department of Labor.''; and
(3) in subsection (d), by inserting ``, or with reckless
disregard,'' after ``knowingly and willfully''.
(k) Oil and Gas Development and Production.--Section 25 of
the Outer Continental Shelf Lands Act (43 U.S.C. 1351) is
amended by striking ``, other than the Gulf of Mexico,'' each
place it appears in subsections (a)(1), (b), and (e)(1).
(l) Conflicts of Interest.--Section 29 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1355) is amended to
read as follows:
``SEC. 29. CONFLICTS OF INTEREST.
``(a) Restrictions on Employment.--No full-time officer or
employee of the Department of the Interior who directly or
indirectly discharges duties or responsibilities under this
Act shall--
``(1) within 2 years after his employment with the
Department has ceased--
``(A) knowingly act as agent or attorney for, or otherwise
represent, any other person (except the United States) in any
formal or informal appearance before;
``(B) with the intent to influence, make any oral or
written communication on behalf of any other person (except
the United States) to; or
``(C) knowingly aid, advise, or assist in--
``(i) representing any other person (except the United
States in any formal or informal appearance before; or
``(ii) making, with the intent to influence, any oral or
written communication on behalf of any other person (except
the United States) to,
any department, agency, or court of the United States, or any
officer or employee thereof, in connection with any judicial
or other proceeding, application, request for a ruling or
other determination, regulation, order lease, permit,
rulemaking, inspection, enforcement action, or other
particular matter involving a specific party or parties in
which the United States is a party or has a direct and
substantial interest which was actually pending under his
official responsibility as an officer or employee within a
period of one year prior to the termination of such
responsibility or in which he participated personally and
substantially as an officer or employee;
``(2) within 1 year after his employment with the
Department has ceased--
``(A) knowingly act as agent or attorney for, or otherwise
represent, any other person (except the United States) in any
formal or informal appearance before;
``(B) with the intent to influence, make any oral or
written communication on behalf of any other person (except
the United States) to; or
``(C) knowingly aid , advise, or assist in --
``(i) representing any other person (except the United
States in any formal or informal appearance before, or
``(ii) making, with the intent to influence, any oral or
written communication on behalf of any other person (except
the United States) to,
the Department of the Interior, or any officer or employee
thereof, in connection with any judicial, rulemaking,
regulation, order, lease, permit, regulation, inspection,
enforcement action, or other particular matter which is
pending before the Department of the Interior or in which the
Department has a direct and substantial interest; or
``(3) accept employment or compensation, during the 1-year
period beginning on the
[[Page S6212]]
date on which employment with the Department has ceased, from
any person (other than the United States) that has a direct
and substantial interest--
``(A) that was pending under the official responsibility of
the employee as an officer or employee of the Department
during the 1-year period preceding the termination of the
responsibility; or
``(B) in which the employee participated personally and
substantially as an officer or employee.
``(b) Prior Employment Relationships.--No full-time officer
or employee of the Department of the Interior who directly or
indirectly discharges duties or responsibilities under this
Act shall participate personally and substantially as a
Federal officer or employee, through decision, approval,
disapproval, recommendation, the rendering of advice,
investigation, or otherwise, in a proceeding, application,
request for a ruling or other determination, contract, claim,
controversy, charge, accusation, inspection, enforcement
action, or other particular matter in which, to the knowledge
of the officer or employee--
``(1) the officer or employee or the spouse, minor child,
or general partner of the officer or employee has a financial
interest;
``(2) any organization in which the officer or employee is
serving as an officer, director, trustee, general partner, or
employee has a financial interest;
``(3) any person or organization with whom the officer or
employee is negotiating or has any arrangement concerning
prospective employment has a financial interest; or
``(4) any person or organization in which the officer or
employee has, within the preceding 1-year period, served as
an officer, director, trustee, general partner, agent,
attorney, consultant, contractor, or employee has a financial
interest.
``(c) Gifts From Outside Sources.--No full-time officer or
employee of the Department of the Interior who directly or
indirectly discharges duties or responsibilities under this
Act shall, directly or indirectly, solicit or accept any gift
in violation of subpart B of part 2635 of title V, Code of
Federal Regulations (or successor regulations).
``(d) Exemptions.--The Secretary may, by rule, exempt from
this section clerical and support personnel who do not
conduct inspections, perform audits, or otherwise exercise
regulatory or policy making authority under this Act.
``(e) Penalties.--
``(1) Criminal penalties.--Any person who violates
paragraph (1) or (2) of subsection (a) or subsection (b)
shall be punished in accordance with section 216 of title 18,
United States Code.
``(2) Civil penalties.--Any person who violates subsection
(a)(3) or (c) shall be punished in accordance with subsection
(b) of section 216 of title 18, United States Code.''.
SEC. 106. STUDY ON THE EFFECT OF THE MORATORIA ON NEW
DEEPWATER DRILLING IN THE GULF OF MEXICO ON
EMPLOYMENT AND SMALL BUSINESSES.
(a) In General.--The Secretary of Energy, acting through
the Energy Information Administration, shall publish a
monthly study evaluating the effect of the moratoria which
followed from the blowout and explosion of the mobile
offshore drilling unit Deepwater Horizon that occurred on
April 20, 2010, and resulting hydrocarbon releases into the
environment, on employment and small businesses.
(b) Report.--Not later than 60 days after the date of
enactment of this Act and at the beginning of each month
thereafter during the effective period of the moratoria
described in subsection (a), the Secretary of Energy, acting
through the Energy Information Administration, shall submit
to the Committee on Energy and Natural Resources of the
Senate and the Committee on Energy and Commerce of the House
of Representatives a report regarding the results of the
study conducted under subsection (a), including--
(1) a survey of the effect of the moratoria on deepwater
drilling on employment in the industries directly involved in
oil and natural gas exploration in the outer Continental
Shelf;
(2) a survey of the effect of the moratoria on employment
in the industries indirectly involved in oil and natural gas
exploration in the outer Continental Shelf, including
suppliers of supplies or services and customers of industries
directly involved in oil and natural gas exploration;
(3) an estimate of the effect of the moratoria on the
revenues of small business located near the Gulf of Mexico
and, to the maximum extent practicable, throughout the United
States; and
(4) any recommendations to mitigate possible negative
effects on small business concerns resulting from the
moratoria.
SEC. 107. REFORM OF OTHER LAW.
Section 388(b) of the Energy Policy Act of 2005 (43 U.S.C.
1337 note; Public Law 109-58) is amended by adding at the end
the following:
``(4) Federal agencies.--Any head of a Federal department
or agency shall, on request of the Secretary, provide to the
Secretary all data and information that the Secretary
determines to be necessary for the purpose of including the
data and information in the mapping initiative, except that
no Federal department or agency shall be required to provide
any data or information that is privileged or proprietary.''.
SEC. 108. SAFER OIL AND GAS PRODUCTION.
(a) Program Authority.--Section 999A of the Energy Policy
Act of 2005 (42 U.S.C. 16371) is amended--
(1) in subsection (a)--
(A) by striking ``ultra-deepwater'' and inserting
``deepwater''; and
(B) by inserting ``well control and accident prevention,''
after ``safe operations,'';
(2) in subsection (b)--
(A) by striking paragraph (1) and inserting the following:
``(1) Deepwater architecture, well control and accident
prevention, and deepwater technology, including drilling to
deep formations in waters greater than 500 feet.''; and
(B) by striking paragraph (4) and inserting the following:
``(4) Safety technology research and development for
drilling activities aimed at well control and accident
prevention performed by the Office of Fossil Energy of the
Department.''; and
(3) in subsection (d)--
(A) in the subsection heading, by striking ``National
Energy Technology Laboratory'' and inserting ``Office of
Fossil Energy of the Department''; and
(B) by striking ``National Energy Technology Laboratory''
and inserting ``Office of Fossil Energy of the Department''.
(b) Deepwater and Unconventional Onshore Natural Gas and
Other Petroleum Research and Development Program.--Section
999B of the Energy Policy Act of 2005 (42 U.S.C. 16372) is
amended--
(1) in the section heading, by striking ``ULTRA-DEEPWATER
AND UNCONVENTIONAL ONSHORE NATURAL GAS AND OTHER PETROLEUM''
and inserting ``SAFE OIL AND GAS PRODUCTION AND ACCIDENT
PREVENTION'';
(2) in subsection (a), by striking ``, by increasing'' and
all that follows through the period at the end and inserting
``and the safe and environmentally responsible exploration,
development, and production of hydrocarbon resources.'';
(3) in subsection (c)(1)--
(A) by redesignating subparagraphs (D) and (E) as
subparagraphs (E) and (F), respectively; and
(B) by inserting after subparagraph (C) the following:
``(D) projects will be selected on a competitive, peer-
reviewed basis.''; and
(4) in subsection (d)--
(A) in paragraph (6), by striking ``ultra-deepwater'' and
inserting ``deepwater'';
(B) in paragraph (7)--
(i) in subparagraph (A)--
(I) in the subparagraph heading, by striking ``Ultra-
deepwater'' and inserting ``Deepwater'';
(II) by striking ``development and'' and inserting
``research, development, and''; and
(III) by striking ``as well as'' and all that follows
through the period at the end and inserting ``aimed at
improving operational safety of drilling activities,
including well integrity systems, well control, blowout
prevention, the use of non-toxic materials, and integrated
systems approach-based management for exploration and
production in deepwater.'';
(ii) in subparagraph (B), by striking ``and environmental
mitigation'' and inserting ``use of non-toxic materials,
drilling safety, and environmental mitigation and accident
prevention'';
(iii) in subparagraph (C), by inserting ``safety and
accident prevention, well control and systems integrity,''
after ``including''; and
(iv) by adding at the end the following:
``(D) Safety and accident prevention technology research
and development.--Awards from allocations under section
999H(d)(4) shall be expended on areas including--
``(i) development of improved cementing and casing
technologies;
``(ii) best management practices for cementing, casing, and
other well control activities and technologies;
``(iii) development of integrity and stewardship guidelines
for--
``(I) well-plugging and abandonment;
``(II) development of wellbore sealant technologies; and
``(III) improvement and standardization of blowout
prevention devices.''; and
(C) by adding at the end the following:
``(8) Study; report.--
``(A) Study.--As soon as practicable after the date of
enactment of this paragraph, the Secretary shall enter into
an arrangement with the National Academy of Sciences under
which the Academy shall conduct a study to determine--
``(i) whether the benefits provided through each award
under this subsection during calendar year 2011 have been
maximized; and
``(ii) the new areas of research that could be carried out
to meet the overall objectives of the program.
``(B) Report.--Not later than January 1, 2012, the
Secretary shall submit to the appropriate committees of
Congress a report that contains a description of the results
of the study conducted under subparagraph (A).
``(C) Optional updates.--The Secretary may update the
report described in subparagraph (B) for the 5-year period
beginning on the date described in that subparagraph and each
5-year period thereafter.'';
(5) in subsection (e)--
(A) in paragraph (2)--
(i) in the second sentence of subparagraph (A), by
inserting ``to the Secretary for review'' after ``submit'';
and
(ii) in the first sentence of subparagraph (B), by striking
``Ultra-Deepwater'' and all that follows through ``and such
Advisory
[[Page S6213]]
Committees'' and inserting ``Program Advisory Committee
established under section 999D(a), and the Advisory
Committee''; and
(B) by adding at the end the following:
``(6) Research findings and recommendations for
implementation.--The Secretary, in consultation with the
Secretary of the Interior and the Administrator of the
Environmental Protection Agency, shall publish in the Federal
Register an annual report on the research findings of the
program carried out under this section and any
recommendations for implementation that the Secretary, in
consultation with the Secretary of the Interior and the
Administrator of the Environmental Protection Agency,
determines to be necessary.'';
(6) in subsection (i)--
(A) in the subsection heading, by striking ``United States
Geological Survey'' and inserting ``Department of the
Interior''; and
(B) by striking ``, through the United States Geological
Survey,''; and
(7) in the first sentence of subsection (j), by striking
``National Energy Technology Laboratory'' and inserting
``Office of Fossil Energy of the Department''.
(c) Additional Requirements for Awards.--Section 999C(b) of
the Energy Policy Act of 2005 (42 U.S.C. 16373(b)) is amended
by striking ``an ultra-deepwater technology or an ultra-
deepwater architecture'' and inserting ``a deepwater
technology''.
(d) Program Advisory Committee.--Section 999D of the Energy
Policy Act of 2005 (42 U.S.C. 16374) is amended to read as
follows:
``SEC. 999D. PROGRAM ADVISORY COMMITTEE.
``(a) Establishment.--Not later than 270 days after the
date of enactment of the Oil Spill Response Improvement Act
of 2010, the Secretary shall establish an advisory committee
to be known as the `Program Advisory Committee' (referred to
in this section as the `Advisory Committee').
``(b) Membership.--
``(1) In general.--The Advisory Committee shall be composed
of members appointed by the Secretary, including--
``(A) individuals with extensive research experience or
operational knowledge of hydrocarbon exploration and
production;
``(B) individuals broadly representative of the affected
interests in hydrocarbon production, including interests in
environmental protection and safety operations;
``(C) representatives of Federal agencies, including the
Environmental Protection Agency and the Department of the
Interior;
``(D) State regulatory agency representatives; and
``(E) other individuals, as determined by the Secretary.
``(2) Limitations.--
``(A) In general.--The Advisory Committee shall not include
individuals who are board members, officers, or employees of
the program consortium.
``(B) Categorical representation.--In appointing members of
the Advisory Committee, the Secretary shall ensure that no
class of individuals described in any of subparagraphs (A),
(B), (D), or (E) of paragraph (1) comprises more than \1/3\
of the membership of the Advisory Committee.
``(c) Subcommittees.--The Advisory Committee may establish
subcommittees for separate research programs carried out
under this subtitle.
``(d) Duties.--The Advisory Committee shall--
``(1) advise the Secretary on the development and
implementation of programs under this subtitle; and
``(2) carry out section 999B(e)(2)(B).
``(e) Compensation.--A member of the Advisory Committee
shall serve without compensation but shall be entitled to
receive travel expenses in accordance with subchapter I of
chapter 57 of title 5, United States Code.
``(f) Prohibition.--The Advisory Committee shall not make
recommendations on funding awards to particular consortia or
other entities, or for specific projects.''.
(e) Definitions.--Section 999G of the Energy Policy Act of
2005 (42 U.S.C. 16377) is amended--
(1) in paragraph (1), by striking ``200 but less than 1,500
meters'' and inserting ``500 feet'';
(2) by striking paragraphs (8), (9), and (10);
(3) by redesignating paragraphs (2) through (7) and (11) as
paragraphs (4) through (9) and (10), respectively;
(4) by inserting after paragraph (1) the following:
``(2) Deepwater architecture.--The term `deepwater
architecture' means the integration of technologies for the
exploration for, or production of, natural gas or other
petroleum resources located at deepwater depths.
``(3) Deepwater technology.--The term `deepwater
technology' means a discrete technology that is specially
suited to address 1 or more challenges associated with the
exploration for, or production of, natural gas or other
petroleum resources located at deepwater depths.''; and
(5) in paragraph (10) (as redesignated by paragraph (3)),
by striking ``in an economically inaccessible geological
formation, including resources of small producers''.
(f) Funding.--Section 999H of the Energy Policy Act of 2005
(42 U.S.C. 16378) is amended--
(1) in the first sentence of subsection (a) by striking
``Ultra-Deepwater and Unconventional Natural Gas and Other
Petroleum Research Fund'' and inserting ``Safe and
Responsible Energy Production Research Fund'';
(2) in subsection (d)--
(A) in paragraph (1), by striking ``35 percent'' and
inserting ``21.5 percent'';
(B) in paragraph (2), by striking ``32.5 percent'' and
inserting ``21 percent'';
(C) in paragraph (4)--
(i) by striking ``25 percent'' and inserting ``30
percent'';
(ii) by striking ``complementary research'' and inserting
``safety technology research and development''; and
(iii) by striking ``contract management,'' and all that
follows through the period at the end and inserting ``and
contract management.''; and
(D) by adding at the end the following:
``(5) 20 percent shall be used for research activities
required under sections 20 and 21 of the Outer Continental
Shelf Lands Act (43 U.S.C. 1346, 1347).''.
(3) in subsection (f), by striking ``Ultra-Deepwater and
Unconventional Natural Gas and Other Petroleum Research
Fund'' and inserting ``Safer Oil and Gas Production and
Accident Prevention Research Fund''.
(g) Conforming Amendment.--Subtitle J of title IX of the
Energy Policy Act of 2005 (42 U.S.C. 16371 et seq.) is
amended in the subtitle heading by striking ``Ultra-Deepwater
and Unconventional Natural Gas and Other Petroleum
Resources'' and inserting ``Safer Oil and Gas Production and
Accident Prevention''.
SEC. 109. NATIONAL COMMISSION ON OUTER CONTINENTAL SHELF OIL
SPILL PREVENTION.
(a) Establishment.--There is established in the Legislative
branch the National Commission on Outer Continental Shelf Oil
Spill Prevention (referred to in this section as the
``Commission'').
(b) Purposes.--The purposes of the Commission are--
(1) to examine and report on the facts and causes relating
to the Deepwater Horizon explosion and oil spill of 2010;
(2) to ascertain, evaluate, and report on the evidence
developed by all relevant governmental agencies regarding the
facts and circumstances surrounding the incident;
(3) to build upon the investigations of other entities, and
avoid unnecessary duplication, by reviewing the findings,
conclusions, and recommendations of--
(A) the Committees on Energy and Natural Resources and
Commerce, Science, and Transportation of the Senate;
(B) the Committee on Natural Resources and the Subcommittee
on Oversight and Investigations of the House of
Representatives; and
(C) other Executive branch, congressional, or independent
commission investigations into the Deepwater Horizon incident
of 2010, other fatal oil platform accidents and major spills,
and major oil spills generally;
(4) to make a full and complete accounting of the
circumstances surrounding the incident, and the extent of the
preparedness of the United States for, and immediate response
of the United States to, the incident; and
(5) to investigate and report to the President and Congress
findings, conclusions, and recommendations for corrective
measures that may be taken to prevent similar incidents.
(c) Composition of Commission.--
(1) Members.--The Commission shall be composed of 10
members, of whom--
(A) 1 member shall be appointed by the President, who shall
serve as Chairperson of the Commission;
(B) 1 member shall be appointed by the majority or minority
(as the case may be) leader of the Senate from the Republican
Party and the majority or minority (as the case may be)
leader of the House of Representatives from the Republican
Party, who shall serve as Vice Chairperson of the Commission;
(C) 2 members shall be appointed by the senior member of
the leadership of the Senate from the Democratic Party;
(D) 2 members shall be appointed by the senior member of
the leadership of the House of Representatives from the
Republican Party;
(E) 2 members shall be appointed by the senior member of
the leadership of the Senate from the Republican Party; and
(F) 2 members shall be appointed by the senior member of
the leadership of the House of Representatives from the
Democratic Party.
(2) Qualifications; initial meeting.--
(A) Political party affiliation.--Not more than 5 members
of the Commission shall be from the same political party.
(B) Nongovernmental appointees.--An individual appointed to
the Commission may not be a current officer or employee of
the Federal Government or any State or local government.
(C) Other qualifications.--It is the sense of Congress that
individuals appointed to the Commission should be prominent
United States citizens, with national recognition and
significant depth of experience and expertise in such areas
as--
(i) engineering;
(ii) environmental compliance;
(iii) health and safety law (particularly oil spill
legislation);
(iv) oil spill insurance policies;
(v) public administration;
(vi) oil and gas exploration and production;
(vii) environmental cleanup; and
(viii) fisheries and wildlife management.
[[Page S6214]]
(D) Deadline for appointment.--All members of the
Commission shall be appointed on or before September 15,
2010.
(E) Initial meeting.--The Commission shall meet and begin
the operations of the Commission as soon as practicable after
the date of enactment of this Act.
(3) Quorum; vacancies.--
(A) In general.--After the initial meeting of the
Commission, the Commission shall meet upon the call of the
Chairperson or a majority of the members of the Commission.
(B) Quorum.--6 members of the Commission shall constitute a
quorum.
(C) Vacancies.--Any vacancy in the Commission shall not
affect the powers of the Commission, but shall be filled in
the same manner in which the original appointment was made.
(d) Functions of Commission.--
(1) In general.--The functions of the Commission are--
(A) to conduct an investigation that--
(i) investigates relevant facts and circumstances relating
to the Deepwater Horizon incident of April 20, 2010, and the
associated oil spill thereafter, including any relevant
legislation, Executive order, regulation, plan, policy,
practice, or procedure; and
(ii) may include relevant facts and circumstances relating
to--
(I) permitting agencies;
(II) environmental and worker safety law enforcement
agencies;
(III) national energy requirements;
(IV) deepwater and ultradeepwater oil and gas exploration
and development;
(V) regulatory specifications, testing, and requirements
for offshore oil and gas well explosion prevention;
(VI) regulatory specifications, testing, and requirements
offshore oil and gas well casing and cementing regulation;
(VII) the role of congressional oversight and resource
allocation; and
(VIII) other areas of the public and private sectors
determined to be relevant to the Deepwater Horizon incident
by the Commission;
(B) to identify, review, and evaluate the lessons learned
from the Deepwater Horizon incident of April 20, 2010,
regarding the structure, coordination, management policies,
and procedures of the Federal Government, and, if
appropriate, State and local governments and nongovernmental
entities, and the private sector, relative to detecting,
preventing, and responding to those incidents; and
(C) to submit to the President and Congress such reports as
are required under this section containing such findings,
conclusions, and recommendations as the Commission determines
to be appropriate, including proposals for organization,
coordination, planning, management arrangements, procedures,
rules, and regulations.
(2) Relationship to inquiry by congressional committees.--
In investigating facts and circumstances relating to energy
policy, the Commission shall--
(A) first review the information compiled by, and any
findings, conclusions, and recommendations of, the committees
identified in subparagraphs (A) and (B) of subsection (b)(3);
and
(B) after completion of that review, pursue any appropriate
area of inquiry, if the Commission determines that--
(i) those committees have not investigated that area;
(ii) the investigation of that area by those committees has
not been completed; or
(iii) new information not reviewed by the committees has
become available with respect to that area.
(e) Powers of Commission.--
(1) Hearings and evidence.--The Commission or, on the
authority of the Commission, any subcommittee or member of
the Commission, may, for the purpose of carrying out this
section--
(A) hold such hearings, meet and act at such times and
places, take such testimony, receive such evidence, and
administer such oaths; and
(B) require, by subpoena or otherwise, the attendance and
testimony of such witnesses and the production of such books,
records, correspondence, memoranda, papers, documents, tapes,
and materials;
as the Commission or such subcommittee or member considers to
be advisable.
(2) Subpoenas.--
(A) Issuance.--
(i) In general.--A subpoena may be issued under this
paragraph only--
(I) by the agreement of the Chairperson and the Vice
Chairperson; or
(II) by the affirmative vote of 6 members of the
Commission.
(ii) Signature.--Subject to clause (i), a subpoena issued
under this paragraph--
(I) shall bear the signature of the Chairperson or any
member designated by a majority of the Commission;
(II) and may be served by any person or class of persons
designated by the Chairperson or by a member designated by a
majority of the Commission for that purpose.
(B) Enforcement.--
(i) In general.--In the case of contumacy or failure to
obey a subpoena issued under subparagraph (A), the United
States district court for the district in which the
subpoenaed person resides, is served, or may be found, or
where the subpoena is returnable, may issue an order
requiring the person to appear at any designated place to
testify or to produce documentary or other evidence.
(ii) Judicial action for noncompliance.--Any failure to
obey the order of the court may be punished by the court as a
contempt of that court.
(iii) Additional enforcement.--In the case of any failure
of any witness to comply with any subpoena or to testify when
summoned under authority of this subsection, the Commission
may, by majority vote, certify a statement of fact
constituting such failure to the appropriate United States
attorney, who may bring the matter before the grand jury for
action, under the same statutory authority and procedures as
if the United States attorney had received a certification
under sections 102 through 104 of the Revised Statutes (2
U.S.C. 192 through 194).
(3) Contracting.--The Commission may, to such extent and in
such amounts as are provided in appropriation Acts, enter
into contracts to enable the Commission to discharge the
duties of the Commission under this section.
(4) Information from federal agencies.--
(A) In general.--The Commission may secure directly from
any Executive department, bureau, agency, board, commission,
office, independent establishment, or instrumentality of the
Federal Government, information, suggestions, estimates, and
statistics for the purposes of this section.
(B) Cooperation.--Each Federal department, bureau, agency,
board, commission, office, independent establishment, or
instrumentality shall, to the extent authorized by law,
furnish information, suggestions, estimates, and statistics
directly to the Commission, upon request made by the
Chairperson, the Chairperson of any subcommittee created by a
majority of the Commission, or any member designated by a
majority of the Commission.
(C) Receipt, handling, storage, and dissemination.--
Information shall be received, handled, stored, and
disseminated only by members of the Commission and the staff
of the Commission in accordance with all applicable laws
(including regulations and Executive orders).
(5) Assistance from federal agencies.--
(A) General services administration.--The Administrator of
General Services shall provide to the Commission on a
reimbursable basis administrative support and other services
for the performance of the functions of the Commission.
(B) Other departments and agencies.--In addition to the
assistance prescribed in subparagraph (A), departments and
agencies of the United States may provide to the Commission
such services, funds, facilities, staff, and other support
services as are determined to be advisable and authorized by
law.
(6) Gifts.--The Commission may accept, use, and dispose of
gifts or donations of services or property, including travel,
for the direct advancement of the functions of the
Commission.
(7) Postal services.--The Commission may use the United
States mails in the same manner and under the same conditions
as departments and agencies of the United States.
(f) Public Meetings and Hearings.--
(1) Public meetings and release of public versions of
reports.--The Commission shall--
(A) hold public hearings and meetings, to the extent
appropriate; and
(B) release public versions of the reports required under
paragraphs (1) and (2) of subsection (j).
(2) Public hearings.--Any public hearings of the Commission
shall be conducted in a manner consistent with the protection
of proprietary or sensitive information provided to or
developed for or by the Commission as required by any
applicable law (including a regulation or Executive order).
(g) Staff of Commission.--
(1) In general.--
(A) Appointment and compensation.--
(i) In general.--The Chairperson, in consultation with the
Vice Chairperson and in accordance with rules agreed upon by
the Commission, may, without regard to the civil service laws
(including regulations), appoint and fix the compensation of
a staff director and such other personnel as are necessary to
enable the Commission to carry out the functions of the
Commission.
(ii) Maximum rate of pay.--No rate of pay fixed under this
subparagraph may exceed the equivalent of that payable for a
position at level V of the Executive Schedule under section
5316 of title 5, United States Code.
(B) Personnel as federal employees.--
(i) In general.--The staff director and any personnel of
the Commission who are employees shall be considered to be
employees under section 2105 of title 5, United States Code,
for purposes of chapters 63, 81, 83, 84, 85, 87, 89, and 90
of that title.
(ii) Members of commission.--Clause (i) shall not apply to
members of the Commission.
(2) Detailees.--
(A) In general.--An employee of the Federal Government may
be detailed to the Commission without reimbursement.
(B) Civil service status.--The detail of the employee shall
be without interruption or loss of civil service status or
privilege.
(3) Procurement of temporary and intermittent services.--
The Chairperson of the Commission may procure temporary and
intermittent services in accordance with section 3109(b) of
title 5, United States Code, at rates for individuals that do
not exceed the daily equivalent of the annual rate of basic
pay prescribed for level V of the Executive Schedule under
section 5316 of that title.
(h) Compensation and Travel Expenses.--
(1) Compensation of members.--
[[Page S6215]]
(A) Non-federal employees.--A member of the Commission who
is not an officer or employee of the Federal Government shall
be compensated at a rate equal to the daily equivalent of the
annual rate of basic pay prescribed for level IV of the
Executive Schedule under section 5315 of title 5, United
States Code, for each day (including travel time) during
which the member is engaged in the performance of the duties
of the Commission.
(B) Federal employees.--A member of the Commission who is
an officer or employee of the Federal Government shall serve
without compensation in addition to the compensation received
for the services of the member as an officer or employee of
the Federal Government.
(2) Travel expenses.--A member of the Commission shall be
allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for an employee of an agency
under subchapter I of chapter 57 of title 5, United States
Code, while away from the home or regular place of business
of the member in the performance of the duties of the
Commission.
(i) Security Clearances for Commission Members and Staff.--
(1) In general.--Subject to paragraph (2), the appropriate
Federal agencies or departments shall cooperate with the
Commission in expeditiously providing to the members and
staff of the Commission appropriate security clearances, to
the maximum extent practicable, pursuant to existing
procedures and requirements.
(2) Proprietary information.--No person shall be provided
with access to proprietary information under this section
without the appropriate security clearances.
(j) Reports of Commission; Adjournment.--
(1) Interim reports.--The Commission may submit to the
President and Congress interim reports containing such
findings, conclusions, and recommendations for corrective
measures as have been agreed to by a majority of members of
the Commission.
(2) Final report.--Not later than 180 days after the date
of the enactment of this Act, the Commission shall submit to
the President and Congress a final report containing such
findings, conclusions, and recommendations for corrective
measures as have been agreed to by a majority of members of
the Commission.
(3) Temporary adjournment.--
(A) In general.--The Commission, and all the authority
provided under this section, shall adjourn and be suspended,
respectively, on the date that is 60 days after the date on
which the final report is submitted under paragraph (2).
(B) Administrative activities before termination.--The
Commission may use the 60-day period referred to in
subparagraph (A) for the purpose of concluding activities of
the Commission, including--
(i) providing testimony to committees of Congress
concerning reports of the Commission; and
(ii) disseminating the final report submitted under
paragraph (2).
(C) Reconvening of commission.--The Commission shall stand
adjourned until such time as the President or the Secretary
of Homeland Security declares an oil spill of national
significance to have occurred, at which time--
(i) the Commission shall reconvene in accordance with
subsection (c)(3); and
(ii) the authority of the Commission under this section
shall be of full force and effect.
(k) Funding.--
(1) Authorization of appropriations.--There are authorized
to be appropriated to carry out this section--
(A) $10,000,000 for the first fiscal year in which the
Commission convenes; and
(B) $3,000,000 for each fiscal year thereafter in which the
Commission convenes.
(2) Availability.--Amounts made available to carry out this
section shall be available--
(A) for transfer to the Commission for use in carrying out
the functions and activities of the Commission under this
section; and
(B) until the date on which the Commission adjourns for the
fiscal year under subsection (j)(3).
(l) Nonapplicability of Federal Advisory Committee Act.--
The Federal Advisory Committee Act (5 U.S.C. App.) shall not
apply to the Commission.
(m) Conflicts of Interest for Certain Commission Members.--
Notwithstanding any other provision of law, any member of a
federally sponsored presidential commission that is a senior
official in an organization that is engaged in legal action
that is materially relevant to the work of the Commission
shall be excluded from making recommendations to the
President.
SEC. 110. CLASSIFICATION OF OFFSHORE SYSTEMS.
(a) Regulations.--
(1) In general.--Not later than 2 years after the date of
enactment of this Act, the Secretary and the Secretary of the
Department in which the Coast Guard is operating shall
jointly issue regulations requiring systems (including
existing systems) used in the offshore exploration,
development, and production of oil and gas in the outer
Continental Shelf to be constructed, maintained, and operated
so as to meet classification, certification, rating, and
inspection standards that are necessary--
(A) to protect the health and safety of affiliated workers;
and
(B) to prevent environmental degradation.
(2) Third-party verification.--The standards established by
regulation under paragraph (1) shall be verified through
certification and classification by independent third parties
that--
(A) have been preapproved by both the Secretary and the
Secretary of the Department in which the Coast Guard is
operating; and
(B) have no financial conflict of interest in conducting
the duties of the third parties.
(3) Minimum systems covered.--At a minimum, the regulations
issued under paragraph (1) shall require the certification
and classification by an independent third party who meets
the requirements of paragraph (2) of--
(A) mobile offshore drilling units;
(B) fixed and floating drilling or production facilities;
(C) drilling systems, including risers and blowout
preventers; and
(D) any other equipment dedicated to the safety systems
relating to offshore extraction and production of oil and
gas.
(4) Exceptions.--The Secretary and the Secretary of the
Department in which the Coast Guard is operating may waive
the standards established by regulation under paragraph (1)
for an existing system only if--
(A) the system is of an age or type where meeting such
requirements is impractical; and
(B) the system poses an acceptably low level of risk to the
environment and to human safety.
(b) Authority of Coast Guard.--Nothing in this section
preempts or interferes with the authority of the Coast Guard.
SEC. 111. SAVINGS PROVISIONS.
(a) Existing Law.--All regulations, rules, standards,
determinations, contracts and agreements, memoranda of
understanding, certifications, authorizations, appointments,
delegations, results and findings of investigations, or any
other actions issued, made, or taken by, or pursuant to or
under, the authority of any law (including regulations) that
resulted in the assignment of functions or activities to the
Secretary, the Director of the Minerals Management Service
(including by delegation from the Secretary), or the
Department (as related to the implementation of the purposes
referenced in this title) that were in effect on the date of
enactment of this Act shall continue in full force and effect
after the date of enactment of this Act unless previously
scheduled to expire or until otherwise modified or rescinded
by this title or any other Act.
(b) Effect on Other Authorities.--This title does not amend
or alter the provisions of other applicable laws, unless
otherwise noted.
SEC. 112. BUDGETARY EFFECTS.
The budgetary effects of this Act, for the purpose of
complying with the Statutory Pay-As-You-Go Act of 2010, shall
be determined by reference to the latest statement titled
``Budgetary Effects of PAYGO Legislation'' for this Act,
submitted for printing in the Congressional Record by the
Chairman of the Senate Budget Committee, provided that such
statement has been submitted prior to the vote on passage.
TITLE II--OIL SPILL COMPENSATION
Subtitle A--Oil Spill Liability
PART I--OIL POLLUTION ACT OF 1990
SEC. 201. LIABILITY LIMITS.
(a) Presidential Establishment of Limits.--Section 1004 of
the Oil Pollution Act of 1990 (33 U.S.C. 2704) is amended by
adding at the end the following:
``(e) Limits for Strict Liability.--
``(1) In general.--For the purpose of subsection (a)(3),
after a 60-day period of public notice and comment beginning
on the date of enactment of this subsection, and from time to
time thereafter, the President shall establish a set of
limits for strict liability for damages for incidents
occurring from offshore facilities (other than deepwater
ports) covered by Outer Continental Shelf leases issued after
the date of enactment of the Oil Spill Response Improvement
Act of 2010.
``(2) Requirements.--The limits for strict liability
established under paragraph (1) shall--
``(A) take into account the availability of insurance
products for offshore facilities; and
``(B) be otherwise based equally on and categorized by--
``(i) the water depth of the lease;
``(ii) the minimum projected well depth of the lease;
``(iii) the proximity of the lease to oil and gas emergency
response equipment and infrastructure;
``(iv) the likelihood of the offshore facility covered by
the lease to encounter broken sea ice;
``(v) the record and historical number of regulatory
violations of the leaseholder under the Outer Continental
Shelf Lands Act (43 U.S.C. 1331 et seq.) or the Federal Water
Pollution Control Act (33 U.S.C. 1251 et seq.) (or the
absence of such a record or violations);
``(vi) the estimated hydrocarbon reserves of the lease;
``(vii) the estimated well pressure, expressed in pounds
per square inch, of the reservoir associated with the lease;
``(viii) the availability and projected availability,
including through borrowing authority, of funds in the Oil
Spill Liability Trust Fund established by section 9509 of the
Internal Revenue Code of 1986;
``(ix) other available remedies under law;
[[Page S6216]]
``(x) the estimated economic value of nonenergy coastal
resources that may be impacted by a spill of national
significance involving the offshore facility covered by the
lease;
``(xi) whether the offshore facility covered by the lease
employs a subsea or surface blowout preventer stack; and
``(xii) the availability of industry payments under
subsection (f).
``(3) Public liability insurance.--In no case shall the
strict liability limits under this subsection for the
applicable offshore facility be less than the maximum amount
of public liability insurance that is broadly available for
related offshore environmental incidents.
``(f) Liability of Industry.--
``(1) In general.--If an incident on the Outer Continental
Shelf results in economic damages claims exceeding the
maximum amount for strict liability for economic damages to
be paid by the responsible party under subsection (a)(3), the
claims in excess of the maximum amount for strict liability
for economic damages under subsection (a)(3) shall be paid
initially, in an amount not to exceed a total of
$20,000,000,000, by all other entities operating offshore
facilities on the Outer Continental Shelf on the date of the
incident, as determined by the Secretary of the Interior, in
accordance with paragraph (2).
``(2) Proportional payment.--The amount of liability claims
to be paid under paragraph (1) by an entity described in that
paragraph shall be determined by the Secretary of the
Interior based on the proportion that--
``(A) the number of offshore facilities operated by the
entity on the Outer Continental Shelf; bears to
``(B) the total number of offshore facilities operated by
all entities on the Outer Continental Shelf.
``(3) Oil spill liability trust fund.--Economic damages
that exceed the amounts available under subsection (a)(3) and
paragraph (1) shall be paid from the Oil Spill Liability
Trust Fund and amounts made available to the Fund under part
II of the Oil Spill Response Improvement Act of 2010.''.
(b) Conforming Amendments.--
(1) Limit for offshore facilities.--Section 1004(a) of the
Oil Pollution Act of 1990 (33 U.S.C. 2704(a)) is amended--
(A) in paragraph (2), by striking ``,,'' and inserting a
comma; and
(B) by striking paragraph (3) and inserting the following:
``(3) for an offshore facility (except a deepwater port)
covered by an Outer Continental Shelf lease--
``(A) if the lease was issued prior to the date of
enactment of the Oil Spill Response Improvement Act of 2010,
the total of all removal costs plus $75,000,000; and
``(B) if the lease was issued on or after the date of
enactment of the Oil Spill Response Improvement Act of 2010,
the total of all removal costs plus the limit for strict
liability for damages for that offshore facility established
by the President under subsection (e); and''.
(2) Exceptions.--Section 6002(b) of the Oil Pollution Act
of 1990 (33 U.S.C. 2752(b)) is amended in the first sentence
by inserting ``1004(f),'' after ``sections''.
SEC. 202. ADVANCE PAYMENT.
Section 1012 of the Oil Pollution Act of 1990 (33 U.S.C.
2712) is amended by adding at the end the following:
``(l) Advance Payments.--The President shall promulgate
regulations that allow advance payments to be made from the
Fund to States and political subdivisions of States for
actions taken to prepare for and mitigate substantial threats
from the discharge of oil.''.
PART II--OIL SPILL LIABILITY TRUST FUND
SEC. 211. RATE OF TAX FOR OIL SPILL LIABILITY TRUST FUND.
(a) In General.--Section 4611 of the Internal Revenue Code
of 1986 (relating to the imposition of tax) is amended--
(1) in subsection (c), by adding at the end the following
new paragraph:
``(3) Adjustments to temporary suspension of oil spill
liability trust fund financing rate.--In the case of any
calendar quarter in which the Secretary estimates that, as of
the close of the previous quarter, the unobligated balance in
the Oil Spill Liability Trust Fund is greater than
$10,000,000,000, the Oil Spill Liability Trust Fund financing
shall be 0 cents a barrel.''; and
(2) by striking subsection (f).
(b) Effective Date.--The amendments made by this section
shall apply on and after the first day of the first calendar
quarter after the date of enactment of this Act.
(c) New Revenues to the Oil Spill Liability Trust Fund.--
Notwithstanding section 3302 of title 31, United States Code,
the revenue resulting from any increase in the Oil Spill
Liability Trust Fund financing rate under this section or the
amendments made by this section shall--
(1) be credited only as offsetting collections for the Oil
Spill Liability Trust Fund;
(2) be available for expenditure only for purposes of the
Oil Spill Liability Trust Fund; and
(3) remain available until expended.
SEC. 212. LIMITATIONS ON EXPENDITURES AND BORROWING
AUTHORITY.
(a) Limitations on Expenditures.--Section 9509(c) of the
Internal Revenue Code of 1986 (relating to expenditures from
the Oil Spill Liability Trust Fund) is amended--
(1) by striking paragraph (2);
(2) by striking ``Expenditures'' in the subsection heading
and all that follows through ``Amounts in'' in paragraph (1)
and inserting ``Expenditures.--Amounts in''; and
(3) by redesignating subparagraphs (A) through (F) as
paragraphs (1) through (6), respectively, and indenting
appropriately.
(b) Authority To Borrow.--Section 9509(d) of the Internal
Revenue Code of 1986 (relating to authority to borrow from
the Oil Spill Liability Trust Fund) is amended--
(1) in paragraph (2), by striking ``$1,000,000,000'' and
inserting ``$10,000,000,000''; and
(2) in paragraph (3)--
(A) by striking subparagraph (B); and
(B) by redesignating subparagraph (C) as subparagraph (B).
Subtitle B--Federal Oil Spill Research
SEC. 221. DEFINITIONS.
In this subtitle:
(1) Commandant.--The term ``Commandant'' means the
Commandant of the Coast Guard.
(2) Program.--The term ``program'' means the program for
oil spill response established pursuant to section 230.
SEC. 222. FEDERAL OIL SPILL RESEARCH.
(a) In General.--Title VII of the Oil Pollution Act of 1990
is amended--
(1) by inserting before section 7001 (33 U.S.C. 2761) the
following:
``SEC. 7000. DEFINITIONS.
``In this title:
``(1) Assessment.--The term `assessment' means the research
assessment on the status of the oil spill prevention and
response capabilities conducted under section 7004.
``(2) Committee.--The term `Committee' means the
Interagency Committee established under section 7001.
``(3) Plan.--The term `plan' means the Federal oil spill
research plan developed under section 7005.
``(4) Program.--The term `program' means the Federal oil
spill research program established under section 7003.'';
(2) by redesignating section 7002 (33 U.S.C. 2762) as
section 7009;
(3) in section 7001 (33 U.S.C. 2761), by striking
subsections (b) through (e) and inserting the following:
``(b) Regional Subcommittees.--
``(1) In general.--The Committee shall establish--
``(A) a regional subcommittee for each of the Gulf of
Mexico and Arctic regions of the United States; and
``(B) such other regional subcommittees as the Committee
determines to be necessary.
``(2) Coordination.--In accordance with the program, each
regional subcommittee established under this subsection shall
coordinate with the Committee and other relevant State,
national, and international bodies with expertise in the
region to research and develop technologies for use in the
prevention, detection, recovery, mitigation, and evaluation
of effects of incidents in the regional environment.''; and
(4) by inserting after section 7001 (33 U.S.C. 2761) the
following:
``SEC. 7002. FUNCTIONS OF THE COMMITTEE.
``The Committee shall--
``(1) coordinate a comprehensive Federal oil spill research
and development program in accordance with section 7003 to
coordinate oil pollution research, technology development,
and demonstration among the Federal agencies, in cooperation
and coordination with industry, institutions of higher
education, research institutions, State and tribal
governments, and other relevant stakeholders;
``(2) conduct a research assessment on the status of the
oil spill prevention and response capabilities in accordance
with section 7004; and
``(3) develop a Federal oil spill research plan in
accordance with section 7005.
``SEC. 7003. FEDERAL OIL SPILL RESEARCH PROGRAM.
``(a) In General.--The Committee shall establish a program
for conducting oil pollution research, development, and
demonstration.
``(b) Program Elements.--The program established under
subsection (a) shall provide for research, development, and
demonstration technologies, practices, and procedures that
provide for effective and direct response to prevent, detect,
recover, or mitigate oil discharges, including--
``(1) new technologies to detect accidental or intentional
overboard oil discharges;
``(2) models and monitoring capabilities to predict the
transport and fate of oil, including trajectory and behavior
predictions due to location, weather patterns, hydrographic
data, and water conditions, including Arctic sea ice
environments;
``(3) containment and well-control capabilities, including
drilling of relief wells, containment structures, and
injection technologies;
``(4) response capabilities, such as improved dispersants,
biological treatment methods, booms, oil skimmers,
containment vessels, and offshore and onshore storage
capacity;
``(5) research and training, in coordination with the
National Response Team, to improve the removal of oil
discharge quickly and effectively;
``(6) decision support systems for contingency planning and
response;
``(7) improvement of options for oily or oiled waste
dispersal;
[[Page S6217]]
``(8) technologies, methods, and standards for use in
protecting personnel and for volunteers that may participate
in incident responses, including--
``(A) training;
``(B) adequate supervision;
``(C) protective equipment;
``(D) maximum exposure limits; and
``(E) decontamination procedures; and
``(9) technologies and methods to prevent, detect, recover,
and mitigate oil discharges in polar environments.
``(c) Study of Environmental Effects of Response
Techniques.--Notwithstanding any other provision of law, the
Coast Guard shall conduct reasonable environmental studies of
oil discharge prevention or mitigation technologies,
including the use of small quantities of oil for testing of
in situ burning, chemical dispersants, and herding agents,
upon and within navigable waters of the United States, if the
Coast Guard, in consultation with the Committee, determines
that the information to be obtained cannot be adequately
obtained through a laboratory or simulated experiment.
``SEC. 7004. FEDERAL RESEARCH ASSESSMENT.
``Not later than 1 year after the date of enactment of Oil
Spill Response Improvement Act of 2010, the Committee shall
submit to Congress an assessment of the status of oil spill
prevention and response capabilities that--
``(1) identifies research programs conducted and
technologies developed by governments, institutions of higher
education, and industry;
``(2) assesses the status of knowledge on oil pollution
prevention, response, and mitigation technologies;
``(3) identifies regional oil pollution research needs and
priorities for a coordinated program of research at the
regional level developed in consultation with State, local,
and tribal governments;
``(4) assesses the status of spill response equipment and
determines areas in need of improvement, including quantity,
age, quality, effectiveness, or necessary technological
improvements;
``(5) assesses the status of real-time data available to
mariners, researchers, and responders, including weather,
hydrographic, and water condition data, and the impact of
incomplete and inaccessible data on preventing, detecting, or
mitigating oil discharges; and
``(6) is subject to a 90-day public comment period and
addresses suggestions received and incorporates public input
received, as appropriate.
``SEC. 7005. FEDERAL INTERAGENCY RESEARCH PLAN.
``(a) In General.--
``(1) Plan.--Not later than 60 days after the date on which
the President submits to Congress, pursuant to section 1105
of title 31, United States Code, a budget for fiscal year
2012, and for each fiscal year thereafter, the Committee
shall submit to Congress a plan that establishes the
priorities for Federal oil spill research and development.
``(2) Recommendations.--In the development of the plan, the
Committee shall consider recommendations by the National
Academy of Sciences and information from State, local, and
tribal governments.
``(b) Plan Requirements.--The plan shall--
``(1) make recommendations to improve technologies and
practices to prevent oil spills;
``(2) suggest changes to the program to improve the rates
of oil recovery and spill mitigation;
``(3) make recommendations to improve technologies,
practices, and procedures to provide for effective and direct
response to oil spills;
``(4) make recommendations to improve the quality of real-
time data available to mariners, researchers, and responders;
and
``(5) be subject to a 90-day public comment period and
address suggestions received and incorporate public input
received, as appropriate.
``SEC. 7006. EXTRAMURAL GRANTS.
``(a) In General.--In carrying out the program, the
Committee shall--
``(1) award competitive grants to institutions of higher
education or other research institutions to carry out
projects--
``(A) to advance research and development; and
``(B) to demonstrate technologies for preventing,
detecting, or mitigating oil discharges that are relevant to
the goals and priorities of the plan; and
``(2) incorporate a competitive, merit-based process for
awarding grants that may be conducted jointly with other
participating agencies.
``(b) Regional Research Program.--
``(1) Definition of region.--In this subsection, the term
`region' means a Coast Guard district as described in part 3
of subchapter A of chapter I of title 33, Code of Federal
Regulations (1989).
``(2) Program.--Consistent with the program, the Committee
shall coordinate the provision of competitive grants to
institutions of higher education or other research
institutions (or groups of those institutions) for the
purpose of conducting a coordinated research program relating
to the aspects of oil pollution with respect to each region,
including research on such matters as--
``(A) prevention;
``(B) removal mitigation; and
``(C) the effects of discharged oil on regional
environments.
``(3) Publication.--
``(A) In general.--The Committee shall coordinate the
publication by the agencies represented on the Committee of a
solicitation for grants under this subsection.
``(B) Form and content.--The application for a grant under
this subsection shall be in such form and contain such
information as shall be required in the published
solicitation.
``(C) Review of applications.--Each application for a grant
under this subsection shall be--
``(i) reviewed by the Committee; and
``(ii) at the option of the Committee, included among
applications recommended by the Committee for approval in
accordance with paragraph (5).
``(D) Provision of grants.--
``(i) In general.--A granting agency represented on the
Committee shall provide the grants recommended by the
Committee unless the granting agency--
``(I) decides not to provide the grant due to budgetary or
other compelling considerations; and
``(II) publishes in the Federal Register the reasons for
such a determination.
``(ii) Funds for grants.--No grants may be provided by any
agency under this subsection from any funds authorized to
carry out this paragraph unless the grant award has first
been recommended by the Committee under subparagraph (C)(ii).
``(4) Eligible applicants.--
``(A) In general.--Any institution of higher education or
other research institution (or a group of those institutions)
may apply for a grant for the regional research program
established under this subsection.
``(B) Location of applicant.--An applicant described in
subparagraph (A) shall be located in the region, or in a
State a part of which is in the region, for which the project
covered by the grant application is proposed to be carried
out as part of the regional research program.
``(C) Group applications.--With respect to an application
described in subparagraph (A) from a group of institutions
referred to in that subparagraph, the 1 or more entities that
will carry out the substantial portion of the proposed
project covered by the grant shall be located in the region,
or in a State a part of which is in the region, for which the
project is proposed as part of the regional research program.
``(5) Recommendations.--
``(A) In general.--The Committee shall make recommendations
on grants in such a manner as to ensure an appropriate
balance within a region among the various aspects of oil
pollution research, including--
``(i) prevention;
``(ii) removal;
``(iii) mitigation; and
``(iv) the effects of discharged oil on regional
environments.
``(B) Additional criteria.--In addition to the requirements
described in subparagraph (A), the Committee shall make
recommendations for the approval of grants based on whether--
``(i) there are available to the applicant for use in
carrying out this paragraph demonstrated research resources;
``(ii) the applicant demonstrates the capability of making
a significant contribution to regional research needs; and
``(iii) the projects that the applicant proposes to carry
out under the grant--
``(I) are consistent with the plan under section 7005; and
``(II) would further the objectives of the program
established under section 7003.
``(6) Term of grants; review; cost-sharing.--A grant
provided under this subsection shall--
``(A) be for a period of up to 3 years;
``(B) be subject to annual review by the granting agency;
and
``(C) provide not more than 80 percent of the costs of the
research activities carried out in connection with the grant.
``(7) Prohibition on use of grant funds.--No funds made
available to carry out this subsection may be used for--
``(A) the acquisition of real property (including
buildings); or
``(B) the construction of any building.
``(8) Effect on other authority.--Nothing in this paragraph
alters or abridges the authority under existing law of any
Federal agency to provide grants, or enter into contracts or
cooperative agreements, using funds other than those
authorized in this Act for the purpose of carrying out this
subsection.
``(9) Funding.--
``(A) In general.--Except as provided in subparagraph (B),
for each of fiscal years 2011 through 2015, not less than
$32,000,000 of amounts in the Fund shall be available to
carry out the regional research program under this
subsection, to be available in equal amounts for the regional
research program in each region.
``(B) Additional grants.--If the agencies represented on
the Committee determine that regional research needs exist
that cannot be addressed by the amount of funds made
available under subparagraph (A), the agencies may use
authority under subsection (a) to make additional grants to
meet those needs.
``SEC. 7007. ANNUAL REPORT.
``Concurrent with the submission of the Federal interagency
research plan pursuant to section 7005, the Committee shall
submit to Congress an annual report that describes
[[Page S6218]]
the activities and results of the program during the previous
fiscal year and described the objectives of the program for
the next fiscal year.
``SEC. 7008. FUNDING.
``(a) In General.--Of the amounts in the Fund for each
fiscal year, not more than $50,000,000 shall be available to
carry out this section (other than section 7006(b)) for the
fiscal year.
``(b) Appropriations.--All activities authorized under this
title, including under section 7006(b), shall be subject to
the availability of appropriations.''.
SEC. 223. NATIONAL ACADEMY OF SCIENCE PARTICIPATION.
The Commandant shall enter into an arrangement with the
National Academy of Sciences under which the Academy shall--
(1) not later than 1 year after the date of enactment of
this Act, assess and evaluate the status of Federal oil spill
research and development as of the day before the date of
enactment of this Act;
(2) submit to Congress and the Federal Oil Spill Research
Committee established under section 7002 of the Oil Pollution
Act of 1990 a report evaluating the conclusions and
recommendations from the Federal research assessment under
section 7004 of that Act to be used in the development of the
Federal oil spill research plan under section 7005 of that
Act; and
(3) not later than 1 year after the Federal interagency
research plan is submitted to Congress under section 7005 of
that Act, evaluate, and report to Congress on, the plan.
SEC. 224. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Use of Funds.--Section 1012(a)(5)(A) of the Oil
Pollution Act of 1990 (33 U.S.C. 2712(a)(5)(A)) is amended by
striking ``$25,000,000'' and inserting ``$50,000,000''.
(b) Table of Contents.--The table of contents in section 2
of the Oil Pollution Act of 1990 (33 U.S.C. prec. 2701) is
amended by striking the items relating to sections 7001 and
7002 and inserting the following:
``Sec. 7000. Definitions.
``Sec. 7001. Oil pollution research and development program.
``Sec. 7002. Functions of the Committee.
``Sec. 7003. Federal oil spill research program.
``Sec. 7004. Federal research assessment.
``Sec. 7005. Federal interagency research plan.
``Sec. 7006. Extramural grants.
``Sec. 7007. Annual report.
``Sec. 7008. Funding.
``Sec. 7009. Submerged oil program.''.
SEC. 225. OIL SPILL RESPONSE AUTHORITY.
Notwithstanding any other provision of law, the Incident
Commander of the Coast Guard may authorize the use of
dispersants in response to a spill of oil from--
(1) any facility or vessel located in, on, or under any of
the navigable waters of the United States; and
(2) any facility of any kind that is subject to the
jurisdiction of the United States and that is located in, on,
or under any other waters.
SEC. 226. MARITIME CENTER OF EXPERTISE.
(a) In General.--The Commandant shall establish a Maritime
Center of Expertise for Maritime Oil Spill and Hazardous
Substance Release Response.
(b) Duties.--The Center shall--
(1) serve as the primary Federal facility for Coast Guard
personnel to obtain qualifications to perform the duties of a
regional response team cochair, a Federal on-scene
coordinator, or a Federal on-scene coordinator
representative;
(2) train Federal, State, and local first responders in the
incident command system structure, maritime oil spill and
hazardous substance release response techniques and
strategies, and public affairs;
(3) work with academic and private sector response training
centers to develop and standardize maritime oil spill and
hazardous substance release response training and techniques;
(4) conduct research, development, testing, and
demonstration for maritime oil spill and hazardous substance
release response equipment, technologies, and techniques to
prevent or mitigate maritime oil discharges and hazardous
substance releases;
(5) maintain not less than 2 incident management and
assistance teams, 1of which shall be ready to deploy anywhere
in the continental United States within 24 hours after an
incident or event;
(6) conduct marine environmental response standardization
visits with Coast Guard Federal on-scene coordinators;
(7) administer and coordinate Coast Guard participation in
the National Preparedness for Response Exercise Program; and
(8) establish and maintain Coast Guard marine environmental
response doctrine.
SEC. 227. NATIONAL STRIKE FORCE.
(a) In General.--The Commandant shall maintain a National
Strike Force to facilitate preparedness for and response to
maritime oil spill and hazardous substance release incidents.
(b) Composition.--The National Strike Force--
(1) shall consist of--
(A) a National Strike Force Coordination Center;
(B) strike force teams, including--
(i) 1 team for the Atlantic Ocean;
(ii) 1 team for the Pacific Ocean; and
(iii) 1 team for the Gulf of Mexico; and
(C) a public information assist team; and
(2) may include, on the direction of the Commandant, 1 or
more teams for the northwest Pacific Ocean and the Arctic
Ocean.
(c) National Strike Force Coordination Center Duties.--The
National Strike Force Coordination Center shall--
(1) provide support and standardization guidance to the
regional strike teams;
(2) maintain a response resource inventory of maritime oil
spill and hazardous substance release response, marine
salvage, and marine firefighting equipment maintained by
certified oil spill response organizations as well as
equipment listed in a vessel or facility oil spill response
plan, as required by section 311(j) of the Federal Water
Pollution Control Act (33 U.S.C. 1321(j));
(3) oversee the maintenance and adequacy of Coast Guard
environmental response equipment;
(4) certify and inspect maritime oil spill response
organizations; and
(5) maintain the National Area Contingency Plan library.
(d) Strike Force Team Duties.--The Strike Force Response
Teams shall--
(1) provide rapid response support in incident management,
site safety, contractor performance monitoring, resource
documentation, response strategies, hazard assessment, oil
spill dispersant, in situ burn and other technologies,
prefabrication of containment technology, operational
effectiveness monitoring, and high-capacity lightering and
offshore skimming capabilities;
(2) train Coast Guard units in environmental pollution
response and incident command systems, test and evaluate
pollution response equipment, and operate as liaisons with
response agencies within the areas of responsibility of the
respective units;
(3) maintain sufficient maritime oil spill and hazardous
substance release assets to ensure the protection of human
health and the environment in the event of an oil spill or
hazardous substance release, including the prefabrication of
oil spill containment equipment; and
(4) maintain the capability to mobilize personnel and
equipment to respond to an oil spill or hazardous substance
release anywhere in the continental United States within 24
hours of such an event.
(e) Public Information Assist Team Duties.--The Public
Information Assist Team shall maintain the capability--
(1) to provide crisis communication during oil spills,
hazardous material releases, marine accidents, and other
disasters, including staffing and managing public affairs and
intergovernmental communication;
(2) provide public information and communications training
to Federal, State, and local agencies and industry personnel;
and
(3) maintain the capability to mobilize personnel and
equipment to respond to an oil spill or hazardous substance
release anywhere in the continental United States within 24
hours after such an event.
SEC. 228. DISTRICT PREPAREDNESS AND RESPONSE TEAMS.
The Commandant shall maintain district preparedness
response teams--
(1) to maintain Coast Guard environmental response
equipment;
(2) to administer area contingency plans;
(3) to administer the National Preparedness for Response
Exercise Program;
(4) to conduct responder incident command system training
and health and safety training;
(5) to provide Federal on-scene coordinator technical
advice;
(6) to coordinate district pollution response operations;
(7) to support regional response team cochairs;
(8) to coordinate district participation with the regional
interagency steering committee of the Federal Emergency
Management Agency; and
(9) to conduct response public affairs and joint
information center training.
SEC. 229. OIL SPILL RESPONSE ORGANIZATIONS.
(a) Requirement.--Each maritime oil spill response
organization that is listed under an oil spill response plan
of a vessel or facility regulated by the Coast Guard, as
required by section 311(j) of the Federal Water Pollution
Control Act (33 U.S.C. 1321(j)) shall be--
(1) certified by the Coast Guard; and
(2) inspected at least once each year to ensure that the
organization has the capabilities to meet the requirements
delegated to the organization under applicable oil spill
response plans.
(b) Certification Criteria and Requirements.--Not later
than 180 days after the date of enactment of this Act, the
Commandant shall develop criteria and requirements for
certifying and classifying maritime oil spill response
organizations.
(c) Inventory of Maritime Oil Spill Response Equipment.--
Each certified maritime oil spill response organization and
any facility regulated by the Coast Guard that is not using a
maritime oil spill response organization to meet the facility
oil spill response plan requirements of section 311(j) of the
Federal Water Pollution Control Act (33 U.S.C. 1321(j))
shall--
(1) maintain a current list of the maritime oil spill
response equipment of the organization or facility; and
(2) submit a copy of that list to the National Strike Force
Coordination Center.
(d) Decreased Capacity Reports.--If a maritime oil spill
response organization experiences a decrease in the maritime
oil spill
[[Page S6219]]
response assets of the organization, the organization shall
report the decrease to the National Strike Force Coordination
Center and the Captain of the Port in which that organization
operates.
SEC. 230. PROGRAM FOR OIL SPILL AND HAZARDOUS SUBSTANCE
RELEASE RESPONSE.
(a) Requirement to Establish Program.--The Commandant shall
establish a program for oil spill and hazardous substance
release response, within the Maritime Center of Expertise for
Oil Spill Response, to conduct research, development,
testing, and demonstration for oil spill and hazardous
substance release response equipment, technologies, and
techniques to prevent or mitigate oil discharges and
hazardous substance releases.
(b) Program Elements.--The program under subsection (a)
shall include--
(1) research, development, testing, and demonstration of
new or improved methods (including the use of dispersants and
biological treatment methods) for the containment, recovery,
removal, and disposal of oil and hazardous substances;
(2) assistance for--
(A) the development of improved designs for vessel
operations (including vessel operations in Arctic waters) and
facilities that are regulated by the Coast Guard; and
(B) improved operational practices;
(3) research and training, in consultation with the
National Response Team, to improve the ability of private
industry and the Federal Government to respond to an oil
discharge or a hazardous substance release;
(4) a list of oil spill and hazardous substance
containment, recovery, removal, and disposal technology that
is approved for use by the Commandant and is made publicly
available, in such manner as is determined to be appropriate
by the Commandant; and
(5) a process for the Federal Government, State and local
governments, private industry, academic institutions, and
nongovernmental organizations to submit systems, equipment,
and technologies for testing and evaluation.
(c) Grants for Oil Spill Response.--The Commandant shall
have the authority to make grants to or enter into
cooperative agreements with academic institutions to conduct
research and development for oil spill response equipment,
technology, and techniques.
(d) Coordination.--The Commandant shall carry out the
program in coordination with the Interagency Coordinating
Committee on Oil Pollution Research established pursuant to
section 7001(a) of the Oil Pollution Act of 1990 (33 U.S.C.
2761(a)).
(e) Funding.--The Commandant shall use such sums as are
necessary to carry out this section for fiscal years 2010
through 2015 from funds appropriated to the research,
development, and testing program account of the Coast Guard
for those years.
SEC. 230A. OIL AND HAZARDOUS SUBSTANCE LIABILITY.
Section 311 of the Federal Water Pollution Control Act (33
U.S.C. 1321) is amended--
(1) in subsection (c)(2)(B)--
(A) in clause (i), by striking ``and'' at the end;
(B) in clause (ii), by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(iii) immediately deploy cleanup and mitigation assets
owned by the Federal Government, or provided by private
individuals or entities or foreign countries, to the location
of discharge.''; and
(2) in subsection (d)(2), by adding at the end the
following:
``(N) Establishment of a clear, accountable chain of
command throughout the jurisdictions impacted by the
discharge.
``(O) Establishment of a system and procedures that ensure
coordination with, and prompt response to, State and local
officials.''.
Subtitle C--Oil and Gas Leasing
SEC. 231. REVENUE SHARING FROM OUTER CONTINENTAL SHELF AREAS
IN CERTAIN COASTAL STATES.
Section 18 of the Outer Continental Shelf Lands Act (43
U.S.C. 1344) is amended by adding at the end the following:
``(i) Revenue Sharing From Outer Continental Shelf Areas in
Certain Coastal States.--
``(1) Definitions.--In this subsection through subsection
(j):
``(A) Coastal political subdivision.--The term `coastal
political subdivision' of a coastal State means a county-
equivalent subdivision of a coastal State all or part of
which--
``(i) lies within the coastal zone (as defined in section
304 of the Coastal Zone Management Act of 1972 (16 U.S.C.
1453)); and
``(ii) the closest point of which is not more than 300
statute miles from the geographic center of any leased tract.
``(B) Coastal state.--The term `coastal State' means a
State with a coastal seaward boundary within 300 statute
miles distance of the geographic center of a leased tract in
an outer Continental Shelf planning area that--
``(i) as of January 1, 2000, had no oil or natural gas
production; and
``(ii) is not a Gulf producing State (as defined in section
102 of the Gulf of Mexico Energy Security Act of 2006 (43
U.S.C. 1331 note; Public Law 109-432)).
``(C) Distance.--The terms `distance' and `distances' mean
minimum great circle distance and distances, respectively.
``(D) Leased tract.--The term `leased tract' means a tract
leased under this Act for the purpose of drilling for,
developing, and producing oil or natural gas resources.
``(E) Outer continental shelf area.--The term `outer
Continental Shelf area' means--
``(i) any area withdrawn from disposition by leasing by the
`Memorandum on Withdrawal of Certain Areas of the United
States Outer Continental Shelf from Leasing Disposition',
from 34 Weekly Comp. Pres. Doc. 1111, dated June 12, 1998; or
``(ii) any area of the outer Continental Shelf as to which
Congress has denied the use of appropriated funds or other
means for preleasing, leasing, or related activities.
``(2) Post leasing revenues.--If the Governor or the
Legislature of a coastal State requests the Secretary to
allow leasing in an outer Continental Shelf area and the
Secretary allows the leasing, in addition to any bonus bids,
the coastal State shall, without further appropriation or
action, receive, from leasing of the area, 37.5 percent of--
``(A) any lease rental payments;
``(B) any lease royalty payments;
``(C) any royalty proceeds from a sale of royalties taken
in kind by the Secretary; and
``(D) any other revenues from a bidding system under
section 8.
``(3) Allocation among coastal political subdivisions of
states.--
``(A) In general.--The Secretary shall pay 20 percent of
the allocable share of each coastal State, as determined
under this subsection, directly to certain coastal political
subdivisions of the coastal State.
``(B) Allocation.--
``(i) In general.--For each leased tract used to calculate
the allocation of a coastal State, the Secretary shall pay
the coastal political subdivisions within 300 miles of the
geographic center of the leased tract based on the relative
distance of such coastal political subdivisions from the
leased tract in accordance with this subparagraph.
``(ii) Distances.--For each coastal political subdivision
described in clause (i), the Secretary shall determine the
distance between the point on the coastal political
subdivision coastline closest to the geographic center of the
leased tract and the geographic center of the tract.
``(iii) Payments.--The Secretary shall divide and allocate
the qualified outer Continental Shelf revenues derived from
the leased tract among coastal political subdivisions
described in clause (i) in amounts that are inversely
proportional to the applicable distances determined under
clause (ii).
``(4) Conservation royalty.--After making distributions
under paragraphs (1) and (2) and section 31, the Secretary
shall, without further appropriation or action, distribute a
conservation royalty equal to 12.5 percent of Federal royalty
revenues derived from an area leased under this section from
all areas leased under this section for any year, into the
land and water conservation fund established under section 2
of the Land and Water Conservation Fund Act of 1965 (16
U.S.C. 460l-5) to provide financial assistance to States
under section 6 of that Act (16 U.S.C. 460l-8).
``(5) Deficit reduction.--
``(A) In general.--After making distributions in accordance
with paragraphs (1) and (2) and in accordance with section
31, the Secretary shall, without further appropriation or
action, distribute an amount equal to 50 percent of Federal
royalty revenues derived from all areas leased under this
section for any year, into direct Federal deficit reduction.
``(B) Budgetary treatment.--Any amounts distributed into
direct Federal deficit reduction under this paragraph shall
not be included for purposes determining budget levels under
section 201 of S. Con. Res. 21 (110th Congress).''.
SEC. 232. REVENUE SHARING FROM AREAS IN ALASKA ADJACENT ZONE.
Section 18 of the Outer Continental Shelf Lands Act (43
U.S.C. 1344) (as amended by section 231) is amended by adding
at the end the following:
``(j) Revenue Sharing From Areas in Alaska Adjacent Zone.--
``(1) In general.--Except as provided in paragraph (2),
effective beginning on the date that is 5 years after the
date of enactment of this subsection, revenues from
production that derives from an area in the Alaska Adjacent
Zone shall be distributed in the same proportion and for the
same uses as provided in subsection (i).
``(2) Allocation among regional corporations.--
``(A) In general.--The Secretary shall pay 33 percent of
any allocable share of the State of Alaska, as determined
under this section, directly to certain Regional Corporations
established under section 7(a) of the Alaska Native Claims
Settlement Act (43 U.S.C. 1606(a)).
``(B) Allocation.--
``(i) In general.--For each leased tract used to calculate
the allocation of the State of Alaska, the Secretary shall
pay the Regional Corporations, after determining those Native
villages within the region of the Regional Corporation which
are within 300 miles of the geographic center of the leased
tract based on the relative distance of such villages from
the leased tract, in accordance with this paragraph.
``(ii) Distances.--For each such village, the Secretary
shall determine the distance between the point in the village
closest to the geographic center of the leased tract and the
geographic center of the tract.
[[Page S6220]]
``(iii) Payments.--The Secretary shall divide and allocate
the qualified outer Continental Shelf revenues derived from
the leased tract among the qualifying Regional Corporations
in amounts that are inversely proportional to the distances
of all of the Native villages within each qualifying region.
``(iv) Revenues.--All revenues received by each Regional
Corporation shall be--
``(I) treated by the Regional Corporation as revenue
subject to the distribution requirements of section
7(i)(1)(A) of the Alaska Native Claims Settlement Act (43
U.S.C. 1606(i)(1)(A)); and
``(II) divided annually by the Regional Corporation among
all 12 Regional Corporations in accordance with section 7(i)
of that Act.
``(v) Further distribution.--A Regional Corporation
receiving revenues under clause (iv)(II) shall further
distribute 50 percent of the revenues received in accordance
with section 7(j) of the Alaska Native Claims Settlement Act
(43 U.S.C. 1606(j)).''.
SEC. 233. ACCELERATED REVENUE SHARING TO PROMOTE COASTAL
RESILIENCY AMONG GULF PRODUCING STATES.
Section 105 of the Gulf of Mexico Energy Security Act of
2006 (43 U.S.C. 1331 note; Public Law 109-432) is amended--
(1) by striking subsection (b) and inserting the following:
``(b) Allocation Among Gulf Producing States for Fiscal
Years 2010 and Thereafter.--
``(1) In general.--Subject to the provisions of this
subsection, for fiscal year 2010 and each fiscal year
thereafter, the amount made available under subsection
(a)(2)(A) from a covered lease described in paragraph (2)
shall be allocated to each Gulf producing State in amounts
that are inversely proportional to the respective distances
between the point on the coastline of each Gulf producing
State that is closest to the geographic center of each
historical lease site and the geographic center of the
historical lease site, as determined by the Secretary.
``(2) Covered lease.--A covered lease referred to in
paragraph (1) means a lease entered into for--
``(A) the 2002-2007 planning area;
``(B) the 181 Area; or
``(C) the 180 South Area.
``(3) Minimum allocation.--The amount allocated to a Gulf
producing State each fiscal year under paragraph (1) shall be
at least 10 percent of the amounts available under subsection
(a)(2)(A).
``(4) Historical lease sites.--
``(A) In general.--Subject to subparagraph (B), for
purposes of this subsection, the historical lease sites in
the 2002-2007 planning area shall include all leases entered
into by the Secretary for an area in the Gulf of Mexico
during the period beginning on October 1, 1982 (or an earlier
date if practicable, as determined by the Secretary), and
ending on December 31, 2015.
``(B) Adjustment.--Effective January 1, 2022, and every 5
years thereafter, the ending date described in subparagraph
(A) shall be extended for an additional 5 calendar years.
``(5) Payments to coastal political subdivisions.--
``(A) In general.--The Secretary shall pay 20 percent of
the allocable share of each Gulf producing State, as
determined under paragraphs (1) and (3), to the coastal
political subdivisions of the Gulf producing State.
``(B) Allocation.--The amount paid by the Secretary to
coastal political subdivisions shall be allocated to each
coastal political subdivision in accordance with
subparagraphs (B), (C), and (E) of section 31(b)(4) of the
Outer Continental Shelf Lands Act (43 U.S.C. 1356a(b)(4)).'';
and
(2) by striking subsection (f).
SEC. 234. COASTAL IMPACT ASSISTANCE PROGRAM AMENDMENTS.
Section 31(c) of the Outer Continental Shelf Lands Act (43
U.S.C. 1356a(c)) is amended by adding at the end the
following:
``(5) Application requirements; availability of funding.--
On approval of a State plan under this section, the Secretary
shall--
``(A) immediately disburse payments allocated under this
section to the State or political subdivision; and
``(B) other than requiring notification to the Secretary of
the projects being carried out under the State plan, not
subject a State or political subdivision to any additional
requirements, including application requirements, to receive
payments under this section.''.
SEC. 235. PRODUCTION OF OIL FROM CERTAIN ARCTIC OFFSHORE
LEASES.
Section 5 of the Outer Continental Shelf Lands Act (43
U.S.C. 1334) is amended by adding at the end the following:
``(k) Oil Transportation in Arctic Waters.--The Secretary
shall--
``(1) require that oil produced from Federal leases in
Arctic waters in the Chukchi Sea planning area, Beaufort Sea
planning area, or Hope Basin planning area be transported by
pipeline to the Trans-Alaska Pipeline System; and
``(2) provide for, and issue appropriate permits for, the
transportation of oil from Federal leases in Arctic waters in
preproduction phases (including exploration) by means other
than pipeline.''.
SEC. 236. USE OF STIMULUS FUNDS TO OFFSET SPENDING.
(a) In General.--The unobligated balance of each amount
appropriated or made available under the American Recovery
and Reinvestment Act of 2009 (Public Law 111-5; 123 Stat.
115) (other than under title X of division A of that Act) is
rescinded, on a pro rata basis, by an aggregate amount that
equals the amounts necessary to offset any net increase in
spending or foregone revenues resulting from this subtitle
and the amendments made by this subtitle.
(b) Report.--The Director of the Office of Management and
Budget shall submit to each congressional committee the
amounts rescinded under subsection (a) that are within the
jurisdiction of the committee.
TITLE III--GUIDANCE ON MORATORIUM ON OUTER CONTINENTAL SHELF DRILLING
SEC. 301. LIMITATION OF MORATORIUM ON CERTAIN PERMITTING AND
DRILLING ACTIVITIES.
(a) In General.--The moratorium set forth in the decision
memorandum of the Secretary of the Interior entitled
``Decision memorandum regarding the suspension of certain
offshore permitting and drilling activities on the Outer
Continental Shelf'' and dated July 12, 2010, and any
suspension of operations issued in connection with the
moratorium, shall not apply to an applicant for a permit to
drill if the Secretary determines that the applicant--
(1) has complied with the notice entitled ``National Notice
to Lessees and Operators of Federal Oil and Gas Leases, Outer
Continental Shelf (OCS)'' dated June 8, 2010 (NTL No. 2010-
N05) and the notice entitled ``National Notice to Lessees and
Operators of Federal Oil and Gas Leases, Outer Continental
Shelf (OCS)'' dated June 18, 2010 (NTL No. 2010-N06); and
(2) has completed all required safety inspections.
(b) Determination on Permit.--Not later than 30 days after
the date on which the Secretary makes a determination that an
applicant has complied with paragraphs (1) and (2) of
subsection (a), the Secretary shall make a determination on
whether to issue the permit.
(c) No Suspension of Consideration.--No Federal entity
shall suspend the active consideration of, or preparatory
work for, permits required to resume or advance activities
suspended in connection with the moratorium.
SEC. 302. DEEPWATER HORIZON INCIDENT.
Not later than 60 days after the date of enactment of this
Act, the Secretary shall develop, and expeditiously begin
implementation of, a plan to ensure that onshore oil and
natural gas development on Federal land would provide full
energy resource compensation for offshore oil and natural gas
resources not being developed and Federal revenues not being
generated for the benefit of the United States Treasury
during such time as any offshore moratorium is in place in
response to the incident involving the mobile offshore
drilling unit Deepwater Horizon.
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