[Congressional Record Volume 156, Number 114 (Friday, July 30, 2010)]
[House]
[Pages H6498-H6552]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
CONSOLIDATED LAND, ENERGY, AND AQUATIC RESOURCES ACT OF 2010
The Committee resumed its sitting.
Mr. MICA. I am pleased to yield at this time 2 minutes to the
gentleman from North Carolina (Mr. Coble), another one of our leaders
in the T&I Committee.
Mr. COBLE. I want to thank the gentleman from Florida for yielding.
Mr. Chairman, the Deepwater Horizon oil spill is a horrific tragedy,
as we all know; and I want to make certain the responsible parties are
held accountable. I also want to ensure that we understand what went
wrong to prevent future tragedies. Although I support domestic energy
exploration, we need legislation that is focused and implements lessons
learned, and the CLEAR Act, in my opinion, does not meet these
principles.
Specifically, it adds yet another task to the Coast Guard mission
without providing the tools necessary to get the job done. I firmly
believe the Coast Guard can do its part, but it is our responsibility
to make sure that they have the personnel, command structure, and
resources to meet its multifaceted mission.
The bill also diminishes intellectual property rights. Its mandatory
publication requirements for chemical dispersants will eviscerate a
number of trade secrets and undermine competitiveness in the chemical
industry, it seems to me. It makes no sense to discard trade secrets in
the name of protecting the public when the EPA already has such
authority and jurisdiction to test, inspect, and approve these
products.
Finally, this legislation will create new impediments for tapping
into our domestic energy supply, make us more reliant upon foreign
sources of energy, and compromise jobs.
Mr. Chairman, I reiterate, we must address this catastrophe. The
CLEAR Act, however, is the wrong approach for the gulf coast, our
economy, and my constituents' wallets.
I thank the gentleman from Florida again for yielding.
Mr. HASTINGS of Washington. Mr. Chairman, I'm pleased to yield 1
minute to the gentleman from Louisiana (Mr. Fleming), a member of the
Natural Resources Committee.
[[Page H6499]]
Mr. FLEMING. I thank the gentleman.
Mr. Chairman, on the CLEAR Act, in my opinion, this is a textbook
case on how to kill jobs and raise energy prices.
Reforms are needed to ensure American offshore drilling will be the
safest in the world, but this bill is extremely premature. The
investigations are still ongoing, and we do not have the answers to the
question, what went wrong?
I am greatly concerned, too, that this will further harm Louisiana.
The State of Louisiana has estimated that a moratorium like the one
currently imposed could result in a loss of more than 20,000 Louisiana
jobs. Rigs are already leaving the gulf for countries like Egypt and
the Congo. Yet today's bill imposes a permanent de facto moratorium by
including provisions to delay or block offshore drilling and imposing
taxes that will raise energy costs. Killing jobs and raising energy
prices are the wrong direction.
I urge my colleagues to vote against the CLEAR Act.
Mr. RAHALL. Mr. Chairman, it is my honor to yield 1 minute to the
gentlelady from California (Mrs. Capps), who has been so instrumental
in development of this legislation and a valued member of our Natural
Resources Committee.
Mrs. CAPPS. Mr. Chairman, I rise in strong support of the CLEAR Act,
and I say this as the Representative of the Santa Barbara channel which
Chairman Rahall referred to as the scene of the big blowout of platform
A in 1969.
BP's oil spill is an unprecedented human, economic, and environmental
disaster. BP must do everything possible to clean up its damage and
make the people of the gulf whole. But this catastrophe is also a
sobering reminder of the serious risks from drilling. We can't stop
drilling overnight, but we can do everything in our power to ensure
that such a disaster never happens again.
That's why we must pass the CLEAR Act. It breaks up the scandal-
ridden MMS, increases penalties for polluters, places new safety and
environmental standards on oil companies, pays down the deficit by
closing loopholes that allow oil companies to drill on the public's
land without paying royalties, creates a new trust fund to protect and
improve our oceans, provides the Presidential commission looking into
the accident with subpoena power.
Once again, this Congress is acting to protect America's families and
businesses, rebuild the gulf coast, hold BP accountable. Let's vote to
ensure that a spill of this kind never happens again. Vote ``yes'' on
the CLEAR Act.
BP's oil spill is an unprecedented environmental disaster that has
tragically resulted in the loss of human life and great economic harm.
BP must do everything possible to clean up the damage and make the
people of the Gulf whole.
But the catastrophe is also a sobering reminder of the serious risks
from oil drilling.
We need a safer, cleaner, more economical approach to energy
development, one that shifts us away from oil and toward renewable
sources that can't destroy our coasts.
While we can't stop drilling overnight, we can do everything in our
power to ensure that such a disaster never happens again.
This Democratic-led Congress has vigorously investigated BP's spill
and offshore drilling.
We've exposed our broken regulatory system.
Always a dysfunctional agency, MMS management reached new lows during
the Bush Administration.
An Inspector General report, for example, raised serious concerns
about the, ``ease with which safety inspectors move between industry
and government.''
Oil companies were allowed to cut corners on safety and environmental
protection.
And virtually no effort was put into preventing accidents and
improving spill response technologies.
Basically, offshore drilling decisions were being made by the oil
companies for their benefit instead of the public's.
Sadly, the people in the Gulf are now paying the price.
That's why it's time to pass the CLEAR Act.
The CLEAR Act breaks up the scandal-ridden MMS, increases penalties
for polluters, and places new standards on oil companies to prevent
another blowout.
It also pays down the deficit by closing loopholes that allow oil
companies to drill on the public's land without paying royalties.
It creates a new trust fund to protect and improve our ocean and
coastal areas.
And it gives the Presidental Commission investigating the BP spill
subpoena power to make sure it can get to the bottom of what actually
happened.
Mr. Chairman, there are lots of reasons for us to pass this bill.
But my greatest hope is that some good can come out of this tragedy.
Finally freeing ourselves from our costly oil addiction is the only
fitting tribute to the terrible tragedy being borne by the people of
the Gulf.
Vote ``yes'' on the CLEAR Act.
{time} 1410
Mr. MICA. Mr. Chairman, I am pleased to yield 2 minutes to the
gentleman from Texas (Mr. Olson), another one of our distinguished
members from T&I.
Mr. OLSON. I thank my colleague from Florida for giving me a couple
of minutes to talk about the problems with this energy bill.
Mr. Chairman, there are parts of this bill that are well-intentioned,
but they miss the mark--particularly the language in this bill
regarding the moratorium on offshore drilling. Thirty-three rigs were
affected by this moratorium when it was imposed shortly after the
explosion on the Deepwater Horizon rig. Since that time, these rigs
have been incurring somewhere upwards of $500,000 a day in expenses
just while they're not doing any production. There are very few
companies, very few entities in our economy, that can incur over $90
million in expenses if this moratorium runs out for the 6-month period
that it's supposed to run. And there's no guarantee that it's going to
end within 6 months.
Predictably--and I've been banging this drum for almost 2 months
now--these rigs are going to move overseas and it's starting to happen.
The first rig went to Egypt. It was a rig from Diamond Offshore.
Let me read a quote from their CEO, Larry Dickerson, as he talked
about why they were moving this rig overseas. Mr. Dickerson said, ``As
a result of the uncertainties surrounding the offshore drilling
moratorium, we are actively seeking opportunities to keep our rigs
fully employed internationally. We greatly regret the loss of U.S. jobs
that will result from this rig relocation.''
Again let me read that last sentence:
``We greatly regret the loss of U.S. jobs that will result from this
rig relocation.''
Mr. Chairman, this is not what the American economy needs right now.
We need to ensure we're independent from foreign oil. We can't be
exporting jobs overseas. This is a job-killing bill that's coming
before this House and I oppose it.
Another problem I have with the bill that has been introduced here is
the change in liability limits. By changing the liability limits, this
bill will effectively squeeze out all the small and medium operators in
the gulf, resulting in the loss of thousands of jobs.
If you like Big Oil, this bill is your bill. I am strongly opposed to
that. We need to create American jobs. Not ending this moratorium and
this changing liability limits is not in America's best interests.
Mr. OBERSTAR. Mr. Chairman, I yield the balance of my time to the
gentleman from New York (Mr. Nadler).
The CHAIR. The gentleman is recognized for 1\1/2\ minutes.
Mr. NADLER of New York. Mr. Chairman, I rise in support of the CLEAR
Act of 2010 to respond to the BP oil spill in the Gulf of Mexico.
Mr. Chairman, one of the many important provisions of this bill
requires the EPA to do a new rulemaking procedure to establish baseline
levels of toxicity and effectiveness that takes into account a study of
the acute and chronic risks posed by the use of toxic dispersants.
Quite simply, the EPA must determine whether or not it's safe to use
these dispersants. Not just which dispersant is the safest, but whether
or not they're safe at all.
I offered an amendment in the Transportation Committee to ban the use
of these toxic dispersants until the rulemaking and study in the bill
determine they are safe. I am very pleased that my amendment is
included in the final bill before us today and I thank Chairman
Oberstar for his support.
The fact is that nobody today can guarantee that dispersants are
safe.
[[Page H6500]]
The only thing dispersants seem to do is push the oil below the
surface, making it harder to see the damage and determine liability and
making it harder to boom and skim the oil off the surface. The only
benefit seems to be for PR purposes.
Dispersants simply shift the oil to another part of the ecosystem
while increasing the toxins in the gulf harming marine life and
contaminating the water column. In fact, researchers have recently
found evidence of dispersants in blue crab larvae from Louisiana to
Florida, indicating the dispersants have already made their way into
the food chain.
Let us never again perform a large uncontrolled experiment with a
huge population of people and an entire ocean as the experimental test
vehicle. Let us be sure that the dispersants are safe before we subject
the marine life and the human population to them.
Mr. Chair, I rise in support of the Consolidated Land, Energy and
Aquatic Resources (CLEAR) Act of 2010 to respond to the BP oil spill in
the Gulf of Mexico.
There are many important provisions in this bill, such as the
increased safety regulations for offshore oil rigs, the elimination of
the liability cap and the inclusion of damages for human health in the
Oil Pollution Act. In the interest of time, I want to focus my comments
on the provisions dealing with the controversial use of toxic
dispersants.
This bill requires the EPA to do a new rulemaking procedure to
establish baseline levels of toxicity and effectiveness that takes into
account a study of the acute and chronic risks posed by the use of
dispersants. Quite simply, the EPA should determine whether or not it's
safe to use these dispersants. And not just which one is the safest,
but whether or not they're safe at all. This is what should have been
done in the first place, and it is important that we make sure it is
done moving forward.
I offered an amendment to the bill in the Transportation Committee to
impose a moratorium on the use of these toxic dispersants until the
rulemaking and study in the bill are complete. I am very pleased that
my amendment is included in the final bill before us today, and I thank
Chairman Oberstar for his support and willingness to advance this
critical public health and environmental protection.
The fact is there is no scientific evidence that dispersants can be
effective in an oil spill of this magnitude, and nobody can guarantee
they are safe. I have heard experts and agency officials argue the
contrary. Well, if these dispersants really are safe, then there should
be no problem proving so under the terms of the bill. In the meantime,
we should not presume these toxic dispersants are safe, and we should
not use the Gulf or anywhere else that suffers an oil spill as an
experimental laboratory.
The only thing dispersants seem to do is push the oil below the
surface making it harder to see the damage and determine liability, and
making it harder to boom and skim the oil off the surface. The only
benefit seems to be for PR purposes.
Dispersants simply shift the oil to another part of the ecosystem,
while increasing the toxins in the Gulf, harming marine life, and
contaminating the water column. In fact, researchers from Tulane and
the University of Southern Mississippi have found evidence of
dispersants in blue crab larvae from Louisiana to Florida indicating
that it has already made its way into the food chain.
So far, over 1.8 million gallons of dispersant have been used in the
Gulf, and people are getting sick--from the dispersants, from the oil,
or from some mixture of the two. There is already a name for the
illness that plagues many of these people--toxicant-induced loss of
tolerance, or TILT--in which you can no longer tolerate exposures to
household chemical products, medication or even food. There are
numerous reports of people being hospitalized, and several health
experts are concerned that this is just the beginning. A group of
fishermen has filed a class action lawsuit against BP and the
dispersant manufacturer, and another personal injury lawsuit was just
filed by Gulf Coast residents who have suffered adverse health effects
from exposure to these toxins.
As many of you know, I have been greatly concerned that we are
repeating the same mistakes of 9/11 where thousands of responders and
area residents are now sick after the failure of the Federal Government
to provide adequate oversight or enforcement to prevent exposure to
toxic chemicals. Luckily, in the case of the Gulf Oil Spill, BP is the
clearly responsible party. However, it is up to us to ensure that BP
and the dispersant makers are not allowed to evade liability or shift
the cost to the taxpayers for any potential health effects. But more
importantly, we must do everything we can to prevent people from
getting sick in the first place.
This bill makes significant progress to protect the safety and
wellbeing of public health and the environment. I thank Chairman
Oberstar and Chairman Rahall for their hard work and commitment to
these issues. I urge all my colleagues to support the bill.
Mr. HASTINGS of Washington. Mr. Chairman, I am pleased to yield 2
minutes to the gentleman from Louisiana (Mr. Cassidy), a member of the
Natural Resources Committee.
Mr. CASSIDY. Mr. Chairman, supposedly today we unite to bring relief
to gulf coast families. But I tell you, if you vote for this bill,
there is no unity with gulf coast families. This bill actually prolongs
the misery of the gulf coast. It kills jobs.
How does it do so? It raises taxes on domestic oil and gas but not on
foreign. We're going to prejudice towards a foreign product. It's a
reverse tariff. Call it a jobs program for OPEC.
Now the $22 billion that we raise, by the way, isn't to benefit the
gulf. It's to buy parkland across the United States. So when everybody
says we're going to raise $22 billion for the gulf, they're raising $22
billion for parklands across the United States.
And now we're going to raise the liability caps because we're going
to stick it to Big Oil. We're not sticking it to Big Oil. What we're
doing is we're sticking it to small and medium size independent
producers who control 90 percent of the leases and, by the way, create
300,000 jobs. This bill kills jobs.
And what is most egregious is the ``Buy American'' provision. We're
not only helping the gulf; we're patriotic. Oh, my gosh. But let's look
at it.
We haven't built a deepwater rig from beginning to end in over 10
years in the United States. By June of 2011, we've got to create the
infrastructure and put out the rigs in order to drill. Now what we do
do here is the high value-added, high-tech buildup on top of the hull
type job. Those are gone because we don't have the capability to build
the hull.
This bill is supposed to help the Louisiana gulf coast. The Louisiana
gulf coast says, ``Keep your help. We would rather have our jobs.''
Mr. RAHALL. May I have the time on all sides, please, Mr. Chairman,
and who has the right to close.
The CHAIR. The gentleman from West Virginia has 8\1/4\ minutes
remaining and the right to close. The gentleman from Florida has 3\1/2\
minutes remaining. The gentleman from Washington has 7 minutes
remaining.
Mr. RAHALL. Mr. Chairman, I yield 1 minute to the gentleman from
Wisconsin (Mr. Kind), a valued member of our Committee on Natural
Resources and very helpful in our efforts to preserve the Land and
Water Conservation Fund.
(Mr. KIND asked and was given permission to revise and extend his
remarks.)
Mr. KIND. Mr. Chairman, our vote today is a very simple choice. It's
a choice of whether we're going to stand with the workers of the oil
and gas industry, with the families of the gulf region, with the
taxpayers of this country, or whether we choose to stand with the
powerful special interests known as Big Oil. I choose to stand with the
American people. And here is why.
This legislation is going to increase safety standards to protect
workers. It's going to increase the liability limits so that those
responsible pay. It's going to reform the ethics standards to end the
revolving door between industry and oversight functions. And it's also
going to live up to the promise of funding the Land and Water
Conservation Fund so that those companies extracting resources on our
public lands help conserve and protect our natural resources.
In a little bit, I and others will offer an amendment under the Land
and Water Conservation Fund so that a dedicated portion of that
increases access for hunters, fishermen and outdoor recreationists to
the 35 million acres that are currently cut off and isolated from our
use.
This is a good bill. It's necessary in the shadow of the worst oil
disaster in our Nation's history. I encourage my colleagues to support
it and the amendment that I will be offering.
{time} 1420
Mr. MICA. I reserve the balance of my time.
Mr. HASTINGS of Washington. Mr. Chairman, I am pleased to yield 1
[[Page H6501]]
minute to the gentleman from Louisiana (Mr. Scalise), a member of the
Energy and Commerce Committee.
Mr. SCALISE. Mr. Speaker, I want to thank the gentleman from
Washington for yielding.
I rise in opposition to the CLEAR Act, and the only thing clear about
this legislation is that it's going to raise $22 billion in new taxes
on American families and run more jobs overseas.
If you look at the bill, first of all, when you talk about their $22
billion tax, which, by the way, is yet one more violation of President
Obama's pledge that he won't tax American families that make below
$250,000, because they are going to pay the bulk of their new tax. It
also discriminates by only applying it to American energy producers.
As people's heating bills are going to be going up in the winter, and
their gas bills are going to be going up all throughout the year, they
are going to be wondering, what is this liberal leadership running
Congress doing? They are raising taxes on American families and running
off more jobs when the provisions in this bill actually make it harder
for our domestic energy producers to continue operating because the
bill preserves Big Oil's ability to bid on future leases. But it
eliminates 70 percent of their competition, the small domestic guys who
are out there doing the same kind of drilling in a safe and
environmentally friendly way. It's bad for jobs. It raises $22 billion
in new taxes. This isn't the answer to help the gulf. It only helps
OPEC.
Mr. RAHALL. I reserve the balance of my time.
Mr. MICA. I reserve the balance of my time.
Mr. HASTINGS of Washington. Mr. Speaker, I yield 1 minute to the
gentleman from Louisiana (Mr. Boustany).
Mr. BOUSTANY. I thank the gentleman for yielding.
Mr. Chairman, we in Louisiana have seen this tragedy firsthand, and
we know about it more than anybody else in this Chamber.
I will say this, there is an even bigger tragedy, it's the moratorium
that's in place today which is leading to a hemorrhage of jobs. Just a
couple of days ago, 300 jobs in my hometown gone, 300, and each day
it's ratcheting up to a thousand jobs a day.
This is a tragedy. It's a man-made tragedy. It's awful policy. I will
tell you, this bill, on top of that tragedy, is going to add to more
woe on the gulf coast, running up the cost of American energy
production, killing more jobs.
Let me just say this: the President said he wanted to double exports
in 5 years. Well, his policies and the policies of our friends across
the aisle are going to basically export American jobs.
Mr. RAHALL. Mr. Chairman, I am very honored to yield 30 seconds to
the chairman of the Education and Labor Committee in honor of the
Whistleblower Act, a member of our Natural Resources Committee, the
gentleman from California (Mr. George Miller).
Mr. GEORGE MILLER of California. I thank the chairman for this
legislation, and I am very happy that this legislation includes a
responsible bidder so that the American people will know that those
companies that bid on the Outer Continental Shelf, those lands that
belong to all Americans, that the companies will be responsible, that
we will check their safety records.
We will not once again have a company like BP, which is out there
with hundreds and hundreds of violations, while so many of the other
companies that operate on the Outer Continental Shelf have minimal
violations, one and two, and this company is completely out of control.
We've got to make sure that the American taxpayer, that the American
environment and the American Outer Continental Shelf are protected by
responsible bidders.
Mr. MICA. Mr. Chairman, I yield 30 seconds to the gentleman from
Louisiana (Mr. Cao).
Mr. HASTINGS of Washington. Mr. Chairman, I yield 1\1/2\ minutes to
the gentleman.
The CHAIR. The gentleman from Louisiana is recognized for 2 minutes.
Mr. CAO. Mr. Chairman, for the past 3 months I have lived with my
people down there in the gulf coast. I have cried with them, I have sat
with them as they filed their claims. I went out in boats with them as
they were cleaning up the oil, so I fully understand what my people
need.
I appreciate the congressional leadership trying to address a bill
that will help my people, but H.R. 3534 does not do it. This bill
doesn't create jobs, it destroys them. This bill doesn't clean up our
shorelines, it creates task forces and layers of bureaucracy that will
talk about them.
This bill does not preserve our livelihood, it will devastate our way
of life. This bill maintains a moratorium that is killing thousands of
jobs in Louisiana.
Where is the short-term and long-term funding to protect our
coastline and to restore the oyster beds in fishing areas? Where are
the comprehensive short-term and long-term job transition plans for
displaced workers? Where is the long-term plan to address the mental
and public health crisis, including the compound effect of multiple
crises?
Where are the jobs?
My colleagues and I tried to amend this bill to address these issues
and make sure that these three critical areas, environmental, economic
and health, were addressed in this bill. This bill does not protect the
people of the gulf coast. It is fundamentally disingenuous to tout any
bill not addressing these three areas as a comprehensive oil spill
response bill.
My gulf coast colleagues and I will continue to fight for the needs
of my people directly in harm's way.
Mr. RAHALL. I yield 1 minute to the gentleman from Maryland, a valued
member of our Natural Resources Committee, Mr. Sarbanes.
Mr. SARBANES. Mr. Chairman, I want to thank Chairman Rahall for his
leadership on this critical legislation. I was pleased to work with the
chairman to ensure that CEOs of oil companies are held accountable for
the safety of their company's drilling operations.
We developed language included in the legislation that requires oil
company CEOs to certify their drilling and spill response plan
capabilities before receiving a permit to proceed. That language has
been further strengthened by adding a provision to impose civil
penalties on any CEO that files a false certification.
Penalties of consequence will force CEOs to take this process
seriously and make it significantly less likely that companies submit
inferior or faulty plans. The best CEOs will take this requirement in
stride, recognizing it is a fair expectation of them. This provision
will ensure accountability and make it less likely that a spill of this
consequence will happen in the first place.
I rise today in strong support of the Consolidated Land, Energy and
Aquatic Resources Act (H.R. 3534). The legislation includes significant
and wide-ranging reforms to ensure that oil and gas development on
federal lands and waters is only done when it can be transparent and
safe.
The BP Deepwater Horizon Oil Spill has reinforced my very serious
concerns about the effect of offshore drilling on coastal communities
and maritime ecosystems. The tragedy in the Gulf of Mexico, which
claimed the life of 11 people and released millions of gallons of crude
oil into a fragile marine ecosystem, is a sad reminder of the inherent
safety, environmental, and economic risks associated with offshore
drilling. Oil drilling operations, no matter how expensive or
technologically advanced, can never completely eliminate the risk of a
major disaster. Like other accidents in the past, the long-term impact
of this spill on the Gulf coast's fragile wetlands and local fishing
communities will be devastating and long lasting.
BP actually had a response plan to deal with the Gulf of Mexico oil
spill. Unfortunately, it was a farce. The plan listed a wildlife expert
that had been deceased since 2005 and said that sensitive biological
resources in the Gulf included walruses, sea otters, sea lions and
seals, none of which actually live there. BP also stated that it could
handle a worst case oil discharge scenario 10 times the size of the
Deepwater Horizon disaster. They clearly did not take this important
responsibility seriously. Even when these glaring inaccuracies were
made public, no single official at BP was responsible for the plan.
As this legislation was considered in the Committee on Natural
Resources, I worked with Chairman Rahall to include language making the
CEO at each oil company directly responsible for certifying the safety
and adequacy of their drilling and spill response plans. I also offered
an amendment today, included in the manager's amendment, which would
[[Page H6502]]
subject the CEO to civil penalties if he or she files a false
certification or their company fails to develop or maintain the
capabilities included in their response plans. This requirement and the
potential penalties should result in self-correcting behavior, forcing
CEOs to take this process seriously and making it significantly less
likely that companies submit inferior or faulty plans.
It is imperative that there be clear consequences for substandard
response plans or we could have a repeat of the disaster that unfolded
in the Gulf of Mexico this summer. Adding this amendment ensures there
is accountability when a CEO certifies a faulty plan and makes it much
more likely that companies will appropriately scrutinize those plans. I
believe that responsible CEOs will recognize this new requirement for
what it is--a very basic standard that should be a best practice for
responsible companies anyway. But for those who try to cut corners,
this framework will certainly give them pause because there are real
consequences for irresponsible behavior.
I also strongly support the funding included in this bill for
conservation of natural, historic and cultural sites around the Nation.
The legislation allocates a small portion of offshore drilling fees to
the Land and Water Conservation Fund for the preservation of vital land
and water resources throughout the Nation. First envisioned by
President Eisenhower, we have neglected this fund for far too long.
Today this legislation delivers on past promises and supports the
conservation of environmentally sensitive lands and critical habitat,
especially shoreline areas such as those on the Chesapeake Bay. It also
allows for conservation of rivers, lakes, recreational areas, and
trails, as well as state and local parks for biking, hunting, fishing,
and wildlife watching. Finally, the legislation provides resources for
the Historic Preservation Fund to maintain our national historic sites
that add so much to the character and culture of our Nation.
I strongly support this much needed legislation and I would encourage
my fellow Members to support this bill.
Mr. HASTINGS of Washington. Mr. Chairman, I am pleased to yield 1
minute to the gentleman from Texas (Mr. Brady).
Mr. BRADY of Texas. Mr. Chairman, this bill is a thinly disguised
roadblock, a permanent roadblock to American energy.
It will drive American companies out of the gulf, delay future
drilling, increase dependence on foreign oil, kill 300,000 good-paying
U.S. energy jobs and levy a new $22 billion tax on American energy, but
not on foreign oil. It includes a protectionist measure that the White
House itself is troubled about that invites retaliation, will kill U.S.
jobs and prevent repairs from occurring in U.S. shipyards.
This is a choice between American energy workers and foreign oil. No
Texas lawmaker, no gulf State lawmaker can support this bill and say
they truly care about energy workers' jobs in America.
Mr. RAHALL. Mr. Chairman, I yield 1 minute to the gentleman from
Michigan (Mr. Stupak).
Mr. STUPAK. I rise to thank Chairwoman Slaughter and Chairman Rahall
for accepting my amendment reaffirming the permanent ban on oil and gas
drilling the in and under the Great Lakes.
I also want to thank Chairman Miller for joining with me in adding
protections from bad actors that pollute the environment, endanger
worker safety and threaten the health and welfare of the public.
This legislation prevents these bad corporate actors from being
awarded Federal leases and drilling permits. Whether it's BP in the
Gulf of Mexico or Enbridge pipeline in Michigan, we need to give
Federal regulators the flexibility to prevent oil companies with poor
safety and environmental records from accessing our natural resources
in reckless disregard for safety and our environment.
{time} 1430
As chair of the Energy and Commerce Oversight Investigation
Subcommittee, I have held four hearings on the Deepwater Horizon spill
and uncovered serious problems of how BP cut corners to save money that
led to the gulf oil spill. This legislation begins to correct these
problems, and I urge my colleagues to vote for this legislation.
The CHAIR. The gentleman from West Virginia has 4\3/4\ minutes
remaining. The gentleman from Florida has 3 minutes remaining. The
gentleman from Washington State has 2\1/2\ minutes remaining.
Mr. HASTINGS of Washington. Mr. Chairman, I am very pleased to yield
1 minute to the gentleman from Texas (Mr. Gene Green).
Mr. GENE GREEN of Texas. I want to thank my colleague from Washington
State for allowing me 1 minute.
Mr. Chairman, I rise in strong opposition to H.R. 3534, the CLEAR
Act, because it will kill jobs, increase our reliance on foreign oil,
and has become a vehicle for controversial and extraneous provisions
that do not address the issues at hand--the safety of our offshore oil
production.
I am proud to represent a district that does everything energy, from
constituents who work offshore, to service companies, to refineries, to
chemical plants downstream. I strongly support making production safer
and cleaner, whether it's offshore, on land, or in our industrial
facilities.
No one questions unlimited liability on the responsible party for all
environmental cleanup costs, but this bill goes so far that it would
make it unlimited also for whatever economic damage. What is going to
happen is it will put at serious risk competitive investment in the
Gulf of Mexico and potentially precipitate a future energy
affordability crisis. Effective legislation can be achieved that will
ensure the continued development of the gulf resources in a responsible
and safe manner while preserving the ability of our independent oil and
gas exploration and production companies to operate offshore.
This legislation will instead make it impossible for these producers,
most of which are small businesses, to get insurance to drill and drive
hundreds of production and servicing companies out of business.
This is the last thing the Gulf Coast and our recovering economy
needs.
If you want to eliminate jobs and hundreds of small businesses, vote
for this bill.
Secondly, this bill contains several extraneous provisions that have
nothing to do with ensuring the safety of our offshore production. In
football, we call this piling on.
Section 728 of the bill subjects oil and gas construction activities
to storm water discharge permits--a regulatory requirement
inappropriate for oil and gas operations, which could place entire
projects and significant capital at risk and has nothing to do with
safety.
This provision mischaracterizes the issue, placing preparatory steps
for oil and gas production in the same category as building
construction. These are two very different things.
The Department of Energy estimates that such regulation could result
in the loss of future production up to ten percent of both current U.S.
oil production and current U.S. natural gas production. Again, if you
want to kill U.S. jobs, vote for this bill.
Section 802 of the bill imposes a conservation fee of $2 per barrel
of oil, or 20 cents per million BTU of natural gas, for production from
all new and existing federal onshore and offshore leases, a cost that
will eventually be passed on to consumers.
While I am a member of the Sportsman's Caucus and a strong support of
the Land and Water Conservation Fund, this fee targets onshore
production, which has no place in a bill responding to the BP oil
spill.
Section 241 compels companies to renegotiate their 1996-2000
deepwater royalty relief leases or else be ineligible to bid on new
leases.
This has nothing to do with responding to the BP oil spill.
For these reasons and others, I strongly encourage my colleagues to
vote against this bill.
This bill will kill jobs, hurt our domestic production, and has
become a vehicle for controversial and extraneous provisions that do
not address the issue at hand.
Mr. RAHALL. Mr. Chairman, I reserve the balance of my time.
Mr. MICA. Mr. Chairman, I am pleased to yield 1 minute to another
gentleman from Texas affected by this, the distinguished gentleman, Mr.
Gohmert.
Mr. GOHMERT. Mr. Chairman, at a time when we're billions of dollars
behind on what we need to spend to keep up our parks and the Federal
land that's owned right now, this bill irresponsibly adds $900 million
per year for 30 years. It's not enough that we're going to put children
in debt for generations; now we're going to keep spending money they
don't want spent. They want us to stop the bleeding so the body can get
healthy again.
One thing about this CLEAR Act is clear: It's going to cause more
people to lose jobs, it's going to hurt more State and local
governments by buying more land the Federal Government can't take care
of, but takes that land
[[Page H6503]]
off the rolls. Please, for goodness sake, let's stop the bleeding--and
in this case the gushing forth of this Nation's blood and its tax
dollars--and vote this down.
Mr. RAHALL. Mr. Chairman, I yield 1 minute to the gentleman from
Washington (Mr. Inslee), another member of our Natural Resources
Committee.
(Mr. INSLEE asked and was given permission to revise and extend his
remarks.)
Mr. INSLEE. Mr. Chairman, Republicans and Democrats mourned the
losses in the gulf, and it is very disappointing that my Republican
friends will not stand to try to prevent this tragedy.
The fact is, oil is killing the oceans in many ways--in one way, in a
small way, by this giant oil slick, but in a large way because of
carbon pollution. I just think we can't have this debate without
recognizing this. In fact, every oil well that we drill puts carbon
pollution in the atmosphere when we burn that oil. That carbon
pollution then goes into the oceans, into solution, and that carbon
pollution makes carbonic acid. The oceans today are 30 percent more
acidic because of the oil we burn.
Let me show you what this has done to the bottom of the food chain.
This is a picture of plankton, what happens when you expose it to ocean
water that is as acidic as it will be at the end of the century;
plankton dissolve in the water.
This bill is not too much; if anything, it is too little. Our Nation
needs an energy policy so we stop carbon pollution. That is America's
destiny.
The CHAIR. The gentleman from West Virginia has 3\3/4\ minutes
remaining. The gentleman from Florida has 2 minutes remaining. The
gentleman from Washington State has 2\1/2\ minutes remaining.
Mr. HASTINGS of Washington. Mr. Chairman, I reserve the balance of my
time.
Mr. RAHALL. Mr. Chairman, I am glad to yield 30 seconds to the
distinguished chairman of the Defense Appropriations Subcommittee, Mr.
Dicks.
(Mr. DICKS asked and was given permission to revise and extend his
remarks.)
Mr. DICKS. Mr. Chairman, I rise in very strong support of this
legislation.
My colleague, Congressman Inslee from Washington State, talked about
ocean acidification. This is one of the most serious issues that the
planet faces. This legislation also will free up money, make it
mandatory, and land and water conservation does preserve the right of
the appropriations committee to appropriate that money, but we'll get
those dollars that we haven't been getting before. We also have a
provision in here for the oceans.
So this is a great bill. I urge all my colleagues to vote for it
today.
Mr. MICA. Mr. Chairman, I reserve the balance of my time.
Mr. HASTINGS of Washington. I reserve the balance of my time.
Mr. RAHALL. Mr. Chairman, I yield 1 minute to the gentleman from
Oregon (Mr. Blumenauer).
Mr. BLUMENAUER. I appreciate the gentleman's courtesy.
Mr. Chairman, this is about keeping faith with the American public.
It's not the end, but it's an important beginning.
Large oil companies pay some of the lowest fees to American taxpayers
compared to what oil companies pay anywhere in the world while enjoying
unnecessarily expensive, outmoded tax breaks. And some, by bookkeeping
errors, pay no royalties at all while they extract oil. Under this
legislation, they will have to choose between continuing this rip-off
or getting future leases.
It will make the Land and Water Conservation Fund properly funded,
making an impact on communities all across the country, and it
leverages new resources. It does all this, as the chairman says, with a
net benefit of deficit reduction of $5.3 billion over the next 5 years.
Protect the taxpayer, protect the environment, and improve our
communities by approving this legislation.
Mr. MICA. Mr. Chairman, I yield myself the balance of my time to
close for the T&I Committee.
The CHAIR. The gentleman is recognized for 2 minutes.
Mr. MICA. Mr. Chairman, I was hoping we could have come here in a
bipartisan effort to pass legislation that would have made certain that
the tragic spill, the loss of life, be prevented, that we never see
that happen off America's shores again. We do need domestic oil
production. We don't want to be beholden to foreign fossil fuels.
{time} 1440
Unfortunately, this bill misses the mark. Unfortunately, this bill is
the typical Democrat solution. It imposes huge taxes--$22 billion in
taxes. It overregulates.
Yes, we want proper regulation. We saw where the mark was missed. We
saw where the law did not keep up with technology. Though let me say we
missed the mark, too, in holding people responsible. We must hold
people responsible, and that is whether it is BP or anyone who had
anything to do with this or whether it is the administration officials
who stamped the permit allowing the drilling to proceed in deep water,
as they did, without the proper protections of the environment.
Only 27 deepwater wells off the coast--only 27--have exploration,
have production. This administration missed the mark. We want these
people held responsible, and we also want it in law. You know, the guy
who issued that permit, that one-page permit with a flawed backup
cleanup for oil spills, is still on the job. He is in charge of the
moratorium, which is another overreach that put people out of work,
instead of being in charge of going down and making certain that the
production and that those exploration wells were doing well.
They missed the mark. That is a shame for the American people, and it
is a shame for the future of containing the tragedy we have seen here.
I yield back the balance of my time.
Mr. HASTINGS of Washington. I yield myself the balance of my time.
Mr. Chairman, this debate has been very interesting because most of
the talk on the other side of the aisle has been on the oil spill. Most
of the talk on this side of the aisle has been on the increased taxes
and on the increased spending.
There is broad agreement that we have to respond in a responsible way
to what happened, to the tragedy in the gulf. Nobody argues with that.
There is broad support on this side. What we object to--and we have
said this over and over and over again--is the extraneous material that
is added to this bill.
I didn't hear anybody, for example, on the other side defend the huge
tax increases that are embodied in this bill. I didn't hear anybody on
the other side of the aisle defend the $30 billion entitlement that is
embodied in this bill. That is what our concern is because that is in
this bill. As a matter of fact, in my opening remarks, I made reference
to the tax increases, and my good friend, the chairman of the
Transportation Committee, wondered about the tax increases. I pointed
them out to him. They're on page 224. To his credit, he came up here
and said, You're right. I appreciate that very much because that really
is what the issue is.
If you want to get bipartisan approval dealing with the gulf coast
oil crisis, we can do that in a bipartisan way, but don't add
extraneous material. That is our objection to this bill, because
extraneous material is increased taxes, more spending, resulting in a
loss of jobs.
I urge my colleagues to vote ``no'' on this bill, and I yield back
the balance of my time.
The CHAIR. The gentleman from West Virginia has the right to close
and has 2\1/4\ minutes remaining.
Mr. RAHALL. Mr. Chairman, the Republicans are at it again--
apologizing for Big Oil against the interests of the American people.
The fact of the matter is that House Republicans were for a
conservation fee before they were against it, and now they're coming to
the floor today and accusing the majority of all of these huge tax
increases, but they are opposed to the CLEAR Act. House Republicans
voted for a $9 conservation fee in energy legislation sponsored by the
former Republican Congressman, now Governor of Louisiana, Bobby Jindal.
That vote was on June 29, 2006. I have it here: 192 Republicans voted
``yes'' for a $9 conservation fee, and 155 Democrats voted against it.
What is the difference between then and now? I'll tell you the
difference. The Democrats' fee is smaller and Big Oil is richer. That
is the difference. The House has passed similar conservation fees with
Republican support four different times since 2007, and I could list
them.
[[Page H6504]]
The fact of the matter is the conservation fee will have no impact on
the prices at the pump. As we all know, the prices at the pump are
determined by the world market. The $2 per barrel fee will be paid for
by Big Oil, not by the American consumer. So I respond by saying the
Republicans' raising this conservation fee as a tax increase is simply
not true.
The Republicans will also say that we are proposing $30 billion in
mandatory spending that is unrelated to the oil spill. We just heard my
dear friend and ranking member say that. Not true. There they go
again--apologizing for Big Oil.
The fact is that the Land and Water Conservation Fund was visualized
by Dwight Eisenhower, proposed by John Kennedy, signed into law by
Lyndon Johnson, and is financed by royalties from offshore oil and gas
drilling. The dollars raised from depleting one of our natural
resources goes toward protecting another. The LWCS is a decades-old
promise to the American people that, if we allow energy companies to
deplete public resources off our shores, we will require them to
dedicate that back in order to help our people and to help our
coastlines. That's what this bill is all about.
I urge support.
Mr. HASTINGS of Washington. Mr. Chair, I submit the following:
Office of the Governor,
Cheyenne, WY, July 27, 2010.
Hon. Nancy Pelosi,
Speaker of the House, Office of the Speaker, U.S. Capitol,
Washington, DC.
Dear Speaker Pelosi: The State of Wyoming has deep concerns
at the haste with which Congress is attempting to legislate
new oil and gas regulatory processes under H.R. 5626.
Provisions which have been added to this bill would affect
onshore leasing and energy production and rob the States of
their traditional role of overseeing energy production within
the States. I urge you to delay action until more definitive
information can be obtained and provided to Members of
Congress.
Based on the hearings and focus that Congress to date has
brought to bear on the tragedy in the Gulf, an expansion of
the intended reach of any legislation to respond to this
offshore spill and precipitously cover onshore energy
production would be a mistake. The State of Wyoming has had
effective regulation of the oil and natural gas industry
through a variety of programs designed to gather and share
information, technology and best regulatory methods for
several decades.
The implications of the bill's encroachment to onshore
energy leasing and production are ominous as it represents a
takeover of state regulation of well construction and
permitting and gives it to the Federal government at the
expense of long-established State authority. Such preemption
would occur whenever the Department of the Interior
determines that a state is not adequately regulating oil and
gas, or because of citizen lawsuit. This is overreach of the
first order.
The State of Wyoming has a proven history of oversight of
the energy industry and has effectively overseen industry
activity without federal oversight for decades. Regulatory
requirements and inspections of well sites are important
components of our state program and the prevention of
accidents and environmental protection are among our highest
priorities.
It is my view that the federal government lacks both the
justification and the expertise to effectively oversee oil
and natural gas production in the State of Wyoming and I urge
you to reject the preemption of Wyoming's and other State's
authority to perform this important function.
Sincerely,
Dave Freudenthal,
Governor.
____
July 29, 2010.
Dear Texas Congressional Delegation: We write to express
our strong disagreement with provisions in pending
legislation that threaten the rights of states to regulate
oil and gas exploration and production on state lands and
waters. We call on you to reject any proposal that interferes
with state regulation of oil and gas safety, exploration and
production on non-federal land and waters.
The Deepwater Horizon disaster and the subsequent impacts
on the Gulf Coast states occurred on the federal government's
watch. The Macondo well is located in a federal offshore
lease area. The federal Minerals Management Service and the
U.S. Department of the Interior failed to properly evaluate,
oversee and regulate drilling in federal waters. It is the
federal government that is managing the containment and
cleanup effort. It is agencies of the federal government that
are engaged in unjustified efforts to impose indiscriminate
and illegal drilling moratoria, adding economic insult to
injury.
In light of these federal failures, it is incomprehensible
that the United States Congress is entertaining proposals
that expand federal authority over oil and gas drilling in
state waters and lands long regulated by states. Several
bills and amendments to be considered this week, for the
first time in the history of our nation, attack successful
state laws and agencies regulating oil and gas exploration
and production on state or private lands and waters.
Furthermore, some of these proposals grant unilateral
discretion to an unelected federal bureaucrat as to whether
or not to allow states to continue regulatory systems
established by duly elected state officials, and even create
the possibility that such authority would be given to an
official recently found by the federal courts to have engaged
in arbitrary and capricious decisionmaking on this very
topic.
While Congress has every right to consider whatever
regulation it deems appropriate on activities in federal
lands and waters, it is not permitted to force states to
submit their successful state regulations and laws to a
federal agency for approval and allow that agency to
unilaterally dictate changes. As you well know, the 10th
Amendment to the United States Constitution states, ``powers
not delegated to the United States by the Constitution, nor
prohibited by it to the states, are reserved to the states
respectively, or to the people.'' Laws like the one you are
considering are unfounded and dangerously destructive of
state sovereignty.
We request that Congress respect our state safety and
energy laws. Federal laws and regulations failed to stop the
Deepwater Horizon disaster. Given the track record, putting
the federal government in charge of energy production on
state lands and waters not only breaks years of successful
precedent and threatens the 10th Amendment to the United
States Constitution, but it also undermines common sense and
threatens the environmental and economic security of our
state's citizens.
Sincerely,
Rick Perry, Governor; David Dewhurst, Lieutenant
Governor; Joe Straus, Speaker of the House. Greg
Abbott, Attorney General; Jerry Patterson, Land
Commissioner; Victor G. Carrillo, Chair, Railroad
Commission of Texas; Elizabeth Ames Jones,
Commissioner, Railroad Commission of Texas; Michael L.
Williams, Commissioner, Railroad Commission of Texas;
Troy Fraser, Chair, Senate Committee on Natural
Resources; James L. ``Jim'' Keffer, Chair, House
Committee on Energy Resources.
____
Alliant,
Houston, TX, May 10, 2010.
Hon. Robert Menendez,
U.S. Senator, Senate Hart Office Building, Washington, DC.
Dear Senator Menendez: We are retail insurance brokers.
Among our clients are offshore contractors, operators and
non-operators, both small and large market cap independent
entities, with interests in the US Gulf of Mexico. Our
clients are involved in almost every aspect of offshore
exploration and development work. We have been asked to
comment upon the amount of insurance that is available from
the commercial insurance market for third party pollution
liability for operators and non-operators before and after
the Macondo well incident. Prior to the incident, we estimate
the maximum working capacity available in the commercial
insurance market (i.e., the limit which could be purchased)
was $1.5 billion (for 100% interest--i.e., the limit to be
shared between operators and non-operators in any common
endeavor). Subsequent to the Macondo incident, we believe the
available working capacity has reduced by 15% and the cost
involved in procuring this capacity is and will be
significantly higher than the pricing prior to the incident.
If, as we understand, there is legislation under
consideration which would materially increase the liability
cap for economic damages from its current level of $75
million, based on our experience operators and non-operators
in the US Gulf of Mexico will be unable to obtain adequate
protection from insurance. The increase of the liability cap
will impact the economic structure of Gulf of Mexico
operations. If the liability cap is increased to the levels
we understand are under consideration, the fact that adequate
insurance protection is not available will dramatically limit
the participants in ongoing exploration and production
activities--in our view only major oil companies and NOCs
(National Oil Companies) will be financially strong enough to
continue current exploration and development efforts.
Yours very truly,
Benjamin D. Wilcox,
Executive Vice President and
Director, Marine and Energy.
____
National Ocean
Industries Association,
Washington, DC, June 8, 2010.
Hon. Barbara Boxer,
Chair, Senate Environment & Public Works Committee, Dirksen
Senate Office Building, Washington, DC.
Hon. James M. Inhofe,
Ranking Member, Senate Environment & Public Works Committee,
Dirksen Senate Office Building, Washington, DC.
Dear Senators Boxer and Inhofe: Tomorrow, the Environment &
Public Works Committee will be conducting a legislative
hearing on S. 3305, the ``Big Oil Bailout Prevention
Liability Act of 2010.'' The National Ocean Industries
Association opposes this legislation in its current form.
In the wake of the immense economic and environmental
impacts still developing in the Gulf, we understand the
desire of some in
[[Page H6505]]
Congress to take immediate action, whether it be to re-impose
outright drilling bans or raise liability caps on the
offshore industry. As Congress and the Administration
continue to investigate the Deepwater Horizon accident, it is
very apparent that until we firmly understand what vent
wrong, it is premature to dictate broad and possibly counter-
productive solutions.
There are numerous hearings and investigations underway to
delve into the root causes of the tragic explosion on the
Deepwater Horizon and resulting loss of well control. This
week alone, various Committees in Congress are conducting
nine separate hearings. Clearly, new information is pouring
in.
In the meantime, an unprecedented response and cleanup
effort is underway involving over 17,000 people and thousands
of private and government vessels. The offshore industry is
participating fully and is also hard at work to stem the flow
of oil and protect the shorelines and natural resources of
the Gulf of Mexico. NOIA member companies are assisting BP in
its response efforts, and stand ready to cooperate in
hearings and investigations.
In addition, the Administration has initiated
investigations through several avenues, which should allow
the federal government and the American people to put all the
pieces of the puzzle together for a complete picture. Once
complete, this picture will provide valuable information on
strategic, targeted measures for possible reforms in
planning, permitting, inspections, regulatory and statutory
regimes.
The companies involved in the Deepwater. Horizon tragedy
have indicated their intent to pay for damages and economic
impacts beyond the current liability cap of $75 million, so
calls for limitless liability may be a solution in search of
a real problem. One thing that is clear is that raising the
liability caps as high as $10 billion or beyond will drive
most non-international producers out of the Gulf of Mexico.
This means less domestic energy production and more imports
of oil from politically unstable regions, along with
increased transportation of oil. The resulting concentration
of domestic offshore energy production will be in the hands
of a few multinational or nationalized companies.
In addition, I encourage our policy makers to remember
that, despite this tragedy, America's need for domestic
energy has not changed and OCS development remains a vital
part of our overall national energy picture. Nearly a third
of our domestic oil comes from the Gulf of Mexico. No one can
argue the fact that demand for energy will only continue to
increase for the foreseeable future.
We should resist the impulse toward knee jerk reactions and
proceed carefully when making decisions that affect the
future of our nation's energy supply.
Sincerely,
Burt Adams,
Chairman, National Ocean Industries
Association.
____
[From the Hill, June 23, 2010.]
Reasoned Debate Needed To Amend Energy Legislation
(By Senator James Inhofe)
As oil continues to leak into the Gulf, President Barack
Obama and the Democratic leadership face a critical test:
Will they seek prudent measures to directly address the BP
disaster or will they exploit the tragedy by advancing
extraneous measures that drastically reduce domestic energy
production, or even enact new energy taxes on consumers and
small businesses?
My sincere hope is that President Obama exhibits the
leadership necessary to engage in a reasoned debate--one that
produces the same outcome following the Exxon Valdez disaster
in 1989. After a year-long debate and bipartisan negotiation,
Congress unanimously passed the Oil Pollution Act in 1990.
The OPA has largely been untested, and some of my colleagues
believe it should be updated to account for new realities
produced by the BP spill. I couldn't agree more.
Yet the leading proposal to amend the OPA could severely
curtail domestic energy production in the Gulf. The ``Big Oil
Bailout Prevention Act,'' introduced by Sen. Robert Menendez
(D-N.J.), is ostensibly motivated by the desire to make BP,
not the taxpayers, pay for the tragedy it unleashed. No one
disagrees with that. And no one disagrees that BP must fairly
and expeditiously compensate the various business owners now
out of work because of BP's actions. But if the Menendez bill
becomes law, more than BP could pay: The estimated 150,000
workers connected to the offshore oil and natural gas
industry could pay with their jobs and their livelihoods.
As Federal District Court Judge Martin Feldman wrote in his
decision yesterday overturning the Obama administration's
wrong-headed moratorium on deepwater production, ``Oil and
gas production is quite simply elemental to Gulf
communities.'' This, and the other elemental fact that Gulf
energy production is essential to America's economy, is the
principal reason Congress should deliberate carefully on Gulf
spill legislation.
I have objected four times to attempts to circumvent the
committee process and pass the Menendez bill in the Senate.
Emotions are no doubt running high, but we must resist the
urge to let emotion dictate the course of deliberations. The
legal and regulatory issues involved in legislating on this
issue are intricate and complex and therefore should compel
us to think carefully about how to proceed.
I take pause on Menendez because of what the experts are
telling us. The bill could make exploration and production so
costly that only Big Oil companies such as BP, and state-
owned firms, such as China's National Offshore Oil
Corporation, could afford to operate in the Gulf. Consider
INDECS insurance, which said of the Menendez bill: ``If we
have understood the proposals correctly, then it would appear
to us that the proposed bill will not act as `Big Oil Bailout
Prevention Liability Act of 2010', rather making it
impossible for anyone other than `Big Oil' to operate.''
For a time, the Obama administration shared this view. Just
after the Menendez bill was introduced, Interior Secretary
Ken Salazar told the Senate Energy Committee that, ``It is
important that we be thoughtful relative to that, what that
cap will be, because you don't want only the BP's of the
world essentially be the ones that are involved in these
efforts, that there are companies of lesser economic
robustness.'' That the view of the administration then rashly
changed to endorse Menendez raises a question: what changed?
One can only speculate; I regret that partisanship may have
intervened. Whatever the reason, we need a workable solution
that balances the important values of energy production,
environmental protection, safety and fairness for affected
parties. The Senate Committee on Environment and Public
Works, on which I serve as Ranking Member, plans to markup
the Menendez bill next week. I hope before then the
committee, and then the full Senate, can agree to a
bipartisan solution that achieves appropriate balance.
That balance certainly won't be achieved if Democratic
leaders insist on attaching energy taxes and other unrelated
provisions to the eventual spill bill. And it certainly won't
be achieved if they insist on enacting a political agenda
animated by aversion to domestic energy production.
Nevertheless, I will continue work with my colleagues to
craft legislation that holds oil companies accountable
without putting jobs and America's energy security at risk.
____
Louisiana Oil & Gas Association,
Baton Rouge, LA, June 30, 2010.
Dear Members of the EPW Committee: We have just received a
copy of Chairwoman Boxer's second amendment to S. 3305. This
poison pill amendment seeks to end offshore drilling by
mandating truly unachievable regulations on the offshore oil
industry.
We write you today to state our adamant opposition to this
amendment as it amounts to a permanent moratorium on
deepwater drilling in the United States. We strongly believe
we must learn from the mistakes of the Deepwater Horizon
incident to ensure safe and effective offshore drilling.
However, offshore jobs are critical to the economic success
of Louisiana, the Gulf Coast and the energy independence of
America.
Senator Boxer's second amendment would impose a permanent
moratorium on deepwater drilling in the United States and
kill tens of thousands of jobs.
The language imposes unachievable mandates because the
mandates are undefined. The uncertainty associated with these
undefined mandates, and the amendment in its entirety,
present insurmountable obstacles for the oil industry to
operate.
We strongly urge you to vote against this permanent
moratorium and pursue more reasonable legislation that
promotes safe and effective drilling practices.
Sincerely,
Don G. Briggs,
President.
Mr. BISHOP of Utah. Mr. Chair, I submit the following:
Lockton Companies, LLC.,
Houston, TX, May 13, 2010.
Hon. Robert Menendez,
U.S. Senator, Senate Hart Office Building,
Washington, DC.
Dear Senator Menendez: Lockton Companies is the largest
privately owned insurance broker in the world, and through
Lockton Marine & Energy in Houston, we service the insurance
needs of many energy companies operating in the Gulf of
Mexico. Specifically, we specialize in the small to midsize
independent exploration and production companies that are
very active in drilling wells in the shallow and deepwater
Gulf of Mexico. In fact, two of our clients are in the top 10
largest lease holders and/or most active drillers in the Gulf
of Mexico; however, they are relatively small companies.
Exploration and production companies are supported by
thousands of workers all along the Gulf Coast from their own
employees to many small to midsized service companies'
employees. The Bureau of Labor and Statistics reported that
there were well over 100,000 petroleum-related workers and
greater than $12 billion in total wages earned in the Gulf
Coast Region alone.
Insurance is critical to our clients and all small to
midsized energy companies operating in the Gulf of Mexico.
All of the companies operating in the Gulf of Mexico
essentially go to the same insurance market to purchase their
liability insurance coverage. The insurance market for
offshore operations is relatively small, and prior to the
Macondo well incident, we estimated the total market capacity
for third-party pollution liability to be $1.3 billion to
$1.6 billion. Following the Macondo well event, we estimate
the capacity has dropped to $1 billion
[[Page H6506]]
to $1.2 billion. Furthermore, the cost for the insurance
coverage has increased substantially.
The market for Oil Pollution Act (OPA) coverage is an even
smaller market, with total capacity of $200 to $300 million.
While large exploration and production companies are able to
certify on the basis of their balance sheet, most small and
midsized companies are dependent on purchasing OPA coverage
in the commercial insurance market.
We understand there is legislation under consideration
which could significantly increase the liability cap for
economic damages from the current level of $75 million. Given
the limited capacity in the energy insurance market, a
material increase in the cap will eliminate insurance as an
option for many exploration and production companies. Without
insurance, many of the active exploration and production
companies would be unable to operate in the Gulf of Mexico.
This decision will affect thousands of people, their families
and their local economies.
We respectfully request you give this issue careful
consideration, and we are more than happy to provide
supporting information on the energy insurance market
providing insurance for the Gulf of Mexico.
Sincerely,
John A. Rathmell, Jr.
____
Insurance Information Institute,
New York, NY, July 19, 2010.
Hon. Jim Oberstar,
Chairman, House Committee on Transportation and
Infrastructure, Rayburn House Office Building,
Washington, DC.
Dear Chairman Oberstar: Thank you once again for the
opportunity to testify before the House Committee on
Transportation and Infrastructure's June 9, 2010, hearing on
the ``Liability and Financial Responsibility for Oil Spills
under the Oil Pollution Act of 1990 and Related Statutes.''
It has recently come to my attention that my testimony may
have been misinterpreted and that this misinterpretation may
have influenced language in the drafting of H.R. 5629, the
``Oil Spill Accountability and Environmental Protection Act
of 2010.'' Specifically, in Section 3 of the June 29 draft,
the Act would increase the minimum level of proof of
financial responsibility for an offshore facility to $1.5
billion.
The rationale for the increase to $1.5 billion figure has
been upon occasion traced back to my testimony in which I
discuss the current insurable limits of liability for
offshore operators. However, the $1.5 billion figure from my
testimony is a maximum available limit for third-party
liability coverage for the largest of operators, not a
suggested limit for certificates of financial responsibility
(COFR).
On page 6 of my written testimony I state the following
about limits of third-party liability coverage:
``In terms of capacity, the typical third- party liability
limit purchased by large operators is approximately $1
billion.''
On page 12, I reaffirm my prior statement:
``As discussed earlier in this testimony, the typical
maximum available limit of third-party liability coverage in
the offshore energy market today is approximately $1 billion
and with perhaps as much as $1.2 billion to $1.5 billion
available under some circumstances.''
My statement is clearly distinct from any comment on the
appropriate limits for a COFR. Consequently, the use of the
$1.5 billion figure in the draft legislation is
inappropriate. Indeed, there are several problems associated
with adopting a $1.5 billion proof of financial
responsibility in the legislation current under
consideration:
1. The $1.5 billion figure in my testimony is for total per
incident third-party liability coverage available in the
private insurance market for large offshore operators. Such a
figure therefore should not and cannot be construed as the
necessary or available COFR limit for operators of all size;
2. Such limits are not available (or affordable) to smaller
operators;
3. There is not sufficient capacity within the offshore
energy insurance industry to provide $1.5 billion in coverage
limits to all operators;
4. The size of the COFR requirement should reflect the size
and nature of the drilling operation, rather than applying a
uniform COFR across all operators;
To summarize, imposing a $1.5 billion proof of financial
responsibility requirement on all offshore operators is not
feasible. There simply does not exist anywhere near enough
capacity in the insurance sector to meet such a requirement.
It has been my pleasure to provide input on this very
important issue. Consequently, I hope that the clarification
of my testimony provided above is of use to the Committee as
it continues to consider the details of this legislation.
If you or your staff have any questions or comments, please
do not hesitate to give me a call at (212) 346-5520 or to
send me an email at [email protected].
Sincerely,
Robert P. Hartwig,
Mr. SMITH of Nebraska. Mr. Chair, I submit the following:
Lloyd & Partners Limited,
London, England, May 10, 2010.
Re Deepwater Horizon/Macondo Well Incident.
To Whom it May Concern:
About Lloyd & Partners
Lloyd & Partners is a London and Bermuda based Major
Account (complex risk) insurance broker specialising in
onshore and offshore energy insurance with premiums placed
annually in excess of USD1.5bn. Overall Lloyd & Partners
employs over 200 people and our 40 plus strong Energy team is
one of the largest and most respected teams in the London
market. We arrange both Property and Liability Insurance for
a wide range of Energy insureds including integrated oil
companies, exploration & production companies and drilling/
service contractors.
Available Liability Insurance Capacity under normal
Insurance conditions (policies with normal terms and
conditions)
Prior to tine recent Gulf of Mexico drilling incident,
worldwide third party pollution liability capacity for
offshore energy operations was in excess of USD1.5bn for each
insured on a 100% basis (meaning the limits scaled to an
individual insured working interest in a project).
Whilst the insurance market previously attempted to limit
their ``clash'' exposures (where they could pick up a loss
from more than one insured from the same loss) by scaling
their limits to an operating group company's working
interest, in the main they had previously thought of clashes
between operators and contractors as the Joint Operating
Agreement would have given them some comfort that only the
operator would be liable for a pollution loss, the concern
now is that a loss of the nature we are witnessing may result
in attempts to hold all the parties responsible regardless of
the provisions of the JOA.
We have therefore already seen in the market a realisation
that if every party involved in the loss (operating group,
drilling contractor, other service contractors--such as mud
or cementing contractors--and blowout preventor manufactures)
are successfully sued then the market will be exposed to a
degree much larger than anticipated when committing capacity
to individual insureds. This has already resulted in at least
one major London energy liability insurance leader advising
us that they are cuffing back their maximum capacity for
individual insureds by a third.
At this stage it is really impossible to accurately predict
what the exact impact of this loss will have on available
capacity but we think it could result in a reduction of such
capacity of around 15% to 30%.
Available Liability Insurance Capacity under OPA
``certificates''
Where insurers are asked to provide full coverage under OPA
(being strict liability with direct access to insurers and no
defence of normal insurance policy terms and conditions)
capacity is much more restricted than normal third party
liability and we estimate available capacity would be no more
than USD150mm--USD200mm.
Pricing
Prior to the recent incident the market was in a ``soft''
phase where rates were low as a result of oversupply of
capacity, as not many insureds purchased the full available
capacity (typically offshore E&P companies would have
purchased on average somewhere around USD 250mm to USD 500mm
in limits.)
There is not likely to be pressure from both sides of the
supply and demand equation, as capacity shrinks and demand
for higher limits materialises (as the recent loss highlights
the potential to insureds for a loss of a magnitude higher
than most are protected for) which coupled with the fact the
market will be looking to recoup the loss they will have to
pay out from this latest incident, is likely to result in a
significant increase in offshore liability insurance
premiums.
Proposed changes to legislation
Currently OPA provides operators of offshore facilities a
limitation of USD 75mm for ``Economic Claims'' (loss of
earnings rather than clean-up costs or property damage caused
by pollution). Any significant increases in this limit will
cause insureds operations in US Waters to face the prospect
of significant self insurance, since (depending on the
amount) the insurance market will not have sufficient
capacity to provide cover for this in addition clean-up costs
and third party properties damage suits).
Your sincerely,
John Lloyd,
Chairman and CEO.
____
Independent Petroleum
Association of America,
Washington, DC, June 7, 2010.
Hon. Barbara Boxer,
Chair, Environment and Public Works Committee, Dirksen Senate
Building, Washington, DC.
Hon. Jim Inhofe,
Ranking Member, Environment and Public Works Committee,
Dirksen Senate Building, Washington, DC.
Dear Senators Boxer and Inhofe: This Wednesday, the
Environment and Public Works Committee will hold a hearing on
S. 3305, the ``Big Oil Bailout Prevention Liability Act,'' in
response to the current oil spill crisis in the Gulf of
Mexico (GOM). The Independent Petroleum Association of
America (IPAA) is opposed to the proposal in its current
form.
It is important to note that the tragic events surrounding
the Deepwater Horizon incident in the GOM will have a
significant impact on American offshore oil and gas
exploration and production for years to come. Our thoughts
and prayers go out to the families and communities affected
by the tragedy in the Gulf of Mexico and we stand ready to
help them as we move forward.
[[Page H6507]]
Independent producers have operated responsibly in the GOM
for decades and hold roughly 90 percent of the leases,
producing about 30 percent of GOM oil and more than 60
percent of GOM natural gas. GOM production represents a
significant amount of energy supply for consumers all across
America, and it remains an essential component of America's
energy portfolio. The entire industry is dedicated to working
together to protect the environment and to contain the damage
from the spill. Many of our member companies have offered
supplies and services; others are directly helping with the
clean-up efforts.
Controlling the well and protecting the environment are the
main priority of the industry today. We support President
Obama's independent commission investigating the Deepwater
Horizon incident. It is important that a thoughtful, thorough
and timely investigation and analysis of the incident is
conducted to fully understand what caused the accident and to
ensure the proper, improved safety measures are identified
and put into practice to prevent incidents in the future.
IPAA supports the following principles to address this
important issue:
1. Any company operating offshore or onshore should be
fully responsible (financial and otherwise) for all clean-up
efforts.
2. There must be a fund to ensure that those affected by
such incidents (i.e., fishermen, tourism, local businesses,
etc.) will be able to fairly recoup lost costs without being
caught in fierce litigation with large corporations.
3. The oil industry, collectively, should contribute to
this fund and ensure its long-term viability.
These principles are already a part of federal law in the
Oil Pollution Act of 1990 (OPA 90) and the Oil Spill
Liability Trust Fund (OSLTF). Changes may be needed to update
out-of-date OSLTF limits with additional industry funding.
However, we are strongly opposed to S. 3305 and other
legislative proposals being discussed in Congress that would
have negative consequences for independent producers. These
changes include increasing offshore liability limits to
unrealistic levels that will preclude nearly every company
operating in the U.S. offshore from getting insurance to
cover their operations. Without the proper insurance
coverage, there will not be independent producers with
offshore exploration and production--it is that simple. These
consequences are not justified based on the performance of
independent producers operating in the offshore, who have an
outstanding safety and environmental record.
The Congress should not make hasty decisions and advocate
legislative and regulatory initiatives that will result in
severe limitations to offshore drilling in the United
States--consequences that can further harm the Gulf Coast
economy. IPAA looks forward to working with the Committee and
the entire Congress to find solutions that will allow
American producers to continue to operate in the U.S.
offshore and explore for the oil and natural gas that is
vital to our nation's energy security.
A significant aspect of OPA 90 was the creation of a trust
fund filled by crude oil taxes that is intended to be used by
injured parties to compensate them for economic damages
instead of requiring lengthy litigation. We support the
expansion of this industry-wide fund to ensure that future
costs and claims are covered and urge the Committee to work
within the framework of OPA 90 before taking other actions
that will impact American energy production.
The Obama Administration also recently announced a six
month moratorium on any offshore drilling in water depths
greater than 500 feet. The moratorium includes wellbore
sidetracks and bypasses; spudding of any new deepwater wells
and is designed to allow the presidential commission
investigating the spill to prepare its recommendations. While
we understand that many Americans are rightfully concerned
about the environmental risks and the safety of offshore
drilling, the federal government should methodically review
this matter and follow the facts in the incident before
taking actions that could impact oil and natural gas
production from the offshore for years to come.
A recent analysis conducted by Wood MacKenzie predicted
that the moratorium and new regulations will push back into
later years 80,000 barrels a day of production scheduled for
2011. The impact of the spill becomes harder to ignore
further into the decade. By 2015, Wood MacKenzie predicts
stiffer federal offshore permitting and safety regulations
will result in more than 350,000 barrels a day of production
forecast for that year to be delayed. It is important to
note, however, that these predictions assume available
capacity for production in the GOM after the current
moratorium is lifted. That is an issue that could be in
serious jeopardy if rigs currently in the GOM are sent to
various parts of the world to begin operations on other
projects, and then are not available to return once the
moratorium is lifted.
Congress must continue to recognize the importance of
energy development in the United States. Rather than enacting
legislation such as S. 3305 that will destroy the ability of
independent, American oil and gas companies from exploring
for energy resources in our nation's offshore areas, we need
Congress to create a forward-looking, balanced energy policy
that recognizes the role oil and natural gas will continue to
play in our nation for years to come. Offshore oil and
natural gas production creates jobs, revenues and helps
stabilize energy prices for American consumers and helps
reduce our reliance on energy supplies from unstable regimes
across the globe.
As the facts and information surrounding the Deepwater
Horizon incident come forward, our nation must develop a
reasonable regulatory program that will allow further
offshore oil and gas exploration and production in the United
States. Offshore oil and gas production must continue to be
an integral part of America's energy portfolio and IPAA is
dedicated to finding answers that will help us achieve that
goal.
Unfortunately, the implementation of S. 3305 into law would
dramatically hinder American production of oil and gas. Thank
you for your attention to this matter.
Sincerely,
Bruce Vincent,
Chairman.
Mr. LAMBORN. Mr. Chair, I submit the following.
INDECS,
May 12, 2010.
Re Proposal to amend the Oil Pollution Act 1990 (OPA 90) and
the Internal Revenue Code of 1986.
Hon. Robert Menendez,
U.S. Senator, Senate Hart Office Building, Washington, DC.
Dear Sir:
Executive Summary
The energy insurance market has limited financial capacity
for pollution. What protection it can offer, sees many terms
and conditions contained in the language of the policies
issued. These limitations can range from whether a policy
covers pollution originating from a reservoir, the absence of
a definition for environmental damage, the sharing of limits
with other heads of claims, to whether there is negligence on
the part of the entity making the claim.
Insurers' ability to issue an insurance certificate to
provide a company with its evidence of financial
responsibility under OPA 90 is similarly limited. Our current
estimates point to a maximum insurance financial capacity of
approximately US$250 million for this exposure, with a
further US$1.5 billion subject to the exclusions mentioned
above.
We detail below many of the areas that need to be
considered carefully in this assessment. It is quite clear to
us that the ability to transfer any increased risk to the
insurance market is very constrained. The extent to which oil
companies, other than the super majors, will be able to
provide alternative security, must be questionable.
About INDECS
INDECS is an independent insurance consultancy with over 20
years' experience working across more than thirty countries
including the USA. We assist global businesses to aohieve a
more effective insurance and risk management strategy. INDECS
does not sell insurance, we are not a broker, but provide
independent advice to our clients on their insurance and risk
management needs.
The Proposed Bill
We understand that two bills have been drafted, in the wake
of the Deepwater Horizon catastrophe:
1. To amend the limits of liability for offshore facilities
under OPA 90 from US$75 million to US$10 billion
2. To remove the limit of US$1 billion expenditures from
the Oil Spill Liability Trust Fund, and to permit advances to
be made to the Fund
Current Insurance Protection
Under OPA 90, holders of leases or permits for offshore
facilities are liable for up to US$75 million per spill plus
removal costs.
Under Section 1016 the holder was initially required to
provide evidence of financial responsibility of between US$10
million and US$35 million depending on whether the facility
is located seaward or landward of the seaward boundary of the
State. This has subsequently increased to the maximum allowed
by the act of US$150 million.
There are various methods of evidencing financial
responsibility including surety bonds, guarantees, letters of
credit and self insurance, but the most common and the one
that is most commercially available to all is by means of an
insurance certificate. The certificate issued must identify a
limit not less than that required under Section 1016.
While there are certain defences under OPA 90, insurers are
put in the position of being a guarantor and may not have the
ability to rely on the normal general conditions of the
policy. Some insurers may also consider that it imposes a
more ``strict liability'' on the insured, and, moreover,
enables claims to be made directly against the insurer in
certain circumstances. They therefore treat OPA certification
distinctly from other insurance that may be available for
this type of risk. The potential capacity for this type of
insurance, which is the broadest available specifically
focusing on OPA obligations and liabilities, is approximately
US$150 to US$250 million.
Outside the realms of strict liability and OPA, an insured
will be able to obtain coverage for sudden and accidental
seepage and pollution by way of its Operators Extra Expense
(OEE) and Excess Liability insurances. OEE coverage provides
a combined single limit for well control, well redrilling and
sudden and accidental seepage and pollution and clean-up.
Therefore pollution liability and clean-up cost is subject to
the apportionment of this combined single limit over
respective risks. In practice the limit would be
[[Page H6508]]
made available first for control measures (i.e. hiring in
specialist well control experts and, if necessary, relief
well drilling), with any balance of the limit then being
reserved for redrilling and pollution. It is possible to
prioritise the use of the limit for compliance with OPA
Financial Responsibility provisions, but this would be
impractical in relation to the urgency by which oil companies
will need to address the well control situation.
We consider that the OEE policy provides the widest cover
and is most ``user friendly'' to oil companies. The pollution
element of the cover responds to costs which the insured
company is obligated to pay by law or under the terms of the
lease/license for the cost of remedial measures or as damages
in compensation for third party property damage and third
party injury claims. In respect of clean-up and containment,
or attempt thereat, the policy pays such costs, including
where incurred to divert pollution from shore, and is not on
a ``liability'' basis. It should be noted that there is no
definition of environmental damage--claims are recoverable to
the extent of damages for third party bodily injury and loss
of or damage to, or loss of use of tangible property. This
coverage can therefore respond on a ``strict liability''
basis, where the law or license agreement specifies that such
remedial costs or compensation is payable if emanating from
the insured's facilities, irrespective of negligence. This
contrasts starkly with the coverage available under most
Excess Liability policies.
Excess Liability insurance responds to all legal
liabilities incurred. Sudden and accidental pollution would
be included in any limit provided. In respect of pollution
from wells the limit available under these policies sits
excess of the OEE policy referred to above (but is subject to
its own policy form insuring conditions which are not as wide
as OEE policies). In respect of pollution from hydrocarbons
stored or being produced from or through facilities such as
fixed and floating platforms and pipelines, the limit is from
``the ground-up'', or in excess of a specific local general
liability policy.
Excess Liability Policy forms vary but the market
``standard'' coverage offers quite limited pollution cover.
Some actually specifically exclude pollution from wells.
Basically pollution liabilities are excluded from all
policies, but within the exclusion is a limited ``buy-back'',
which requires that the pollution event is sudden, accidental
and unintended and subject to strict discovery and reporting
requirements. However, and significantly, the cover excludes
``. . . . actual or alleged liability to evaluate, monitor,
control, remove, nullify and/or clean-up seeping, polluting
or contaminating substances to the extent such liability
arises solely from any obligations imposed by any statute,
rule, ordinance, regulation or imposed by contract''.
We regard this wording as too draconian and would always
counsel oil companies to include a specific ``pollution
endorsement'' that overrides this phrasing and would provide
legal and statutory liability coverage, including costs
incurred under lease block obligations for removal. We think
this distinction in cover is important as it will impact
capacity. Our figure below of US$1 to US$ 1.5 billion is
based upon insurers subscribing to the standard market cover.
If an alternative wording is utilised, or the pollution
endorsement used, it could have the effect of reducing
capacity by about 25 to 35%.
As with the OEE policy, the coverage is geared to damages
for compensation in respect of third party bodily injury and
third party property loss or damage or loss of use. There is
similarly no concept of ``environmental damage'' expressed in
the policy.
Insurance Capacity
The immediate effect of the Deepwater Horizon loss is that
capacity will, for a time, be fluid. Most insurers had not
factored in to their risk aggregations that the net is spread
very wide indeed in respect of responsible parties under OPA.
They are now seeing the implications of multi party actions
against operators, drilling contractors, cementing engineers
and their various sub-contractors arising out of a single
incident such as the ``Deepwater Horizon'' loss. This is
because the insurance limits are available to each separate
party, so will stack up if three different entities are sued.
In this context the lease block holders constitute one
entity (their insurance policies may be separate covering
their respective equity interests, but the capacity available
is assessed upon 100% interest).
Inevitably the recent loss has increased the demand for
higher limits, and has consequently affected the overall
aggregate exposures to insurers. This will likely reduce the
available limits in the immediate future. At least one
insurer has let it be known that its capacity has reduced.
Others are reviewing their positions and it is most likely
that June renewals will be subject to some reduction in
overall capacity. This could be between 25 and 30% reduction,
affecting all above policies, except Protection and Indemnity
entries. INDECS has close relationships with the Energy
Insurance Market including its insurers and brokers. Based on
our knowledge and these relationships we would opine that the
following represents the maximum per occurrence capacity in
this market currently:
Operators' Extra Expense (OEE)
The available global market capacity for the OEE cover is
between US$500 million and US$750 million per event on 100%
basis. This means that the total limit purchased is shared
out between the co-owners of the lease block (the licensees)
according to their equity interest in the venture (as per the
Joint Operating Agreement).
In addition to this capacity, oil companies who are members
of the mutual, Oil Insurance Ltd (OIL), Bermuda, (which
includes a number of US based E&P companies) can claim up to
a further US$ 250 million for each companies' equity
interest, limited to US$ 750 million per event, but this
limit is also applied on a combined single limit basis,
inclusive not only of control of well cost and redrilling,
but also property damage and wreck removal.
Excess Liabilities
The global commercial market limits available are between
US$1 billion and US$1.5 billion per event on 100% basis
(meaning that the limit is effectively reduced to reflect
each of the oil companies' equity interests). This would
include capacity available under any specific local general
liability policy (normally limited to USD50m per event). This
total would be inclusive of capacity from the Bermuda
reinsurance market and specifically from Oil Casualty
Insurance Ltd (OCIL), which is a sister organisation to OIL.
This limit operates on an Ultimate Nett Loss basis, meaning
that it must also respond to injuries and fatalities to third
parties (but not employees) and to third party property
damage and consequential financial loss.
One final issue to consider for the commercial market is
that in the event that the pollution arises from a named
hurricane there would be a sub-limit agreed in the policy,
which may not be more than US$200 million per oil company,
and this would be inclusive of all insurable exposures (i.e.
property damage, control of well, redrilling, wreck removal
and pollution).
Protection and Indemnity Clubs (P&I)
One further area that merits comment is P&I, which provides
cover in respect of pollution from mobile drilling units,
heavy-lift vessels, pipelaying vessels and, to the extent
that they may ultimately be more widely used in the Gulf of
Mexico, Floating Production, Storage and Offtake units
(FPSOs).
The limit purchased is generally between US$300 million and
US$ 500 million, but US$ 1 billion per event is theoretically
available. However, most US drilling contractors are not
insured by the P and I Clubs. US drilling contractors
generally rely upon commercial marine liability insurers,
whose capacity would be limited to between US$ 500 million
and US$ 750 million per event referred to above.
Effects of Increasing the OPA 90 Limits
In conclusion, if the intention is to increase the limit
required under OPA90 to US$10 billion and also the required
evidence of financial responsibility to something similar,
then quite simply the energy insurance market will no longer
be an option. Its capacity lies far below this limit and even
then has a number of restrictions contained in it which we
have discussed above.
Companies, with the exception of super majors and foreign
state owned companies, operating in the United States are
highly unlikely to be able to provide any alternative method
of financial responsibility such as bonds and lines of
credit. The cost of these methods or ability to self insure
these risks will far exceed their capabilities, preventing
their management from fulfilling their fiduciary liability
and presenting a barrier to acquiring new or even servicing
existing permits in the future.
If we have understood the proposals correctly, then it
would appear to us that the proposed Bill will not act as
``Big Oil Bailout Prevention Liability Act of 2010'', rather
making it impossible for anyone other than ``Big Oil'' to
operate.
Yours sincerely,
Paul King,
Director.
Ms. JACKSON LEE of Texas. Mr. Chair, I rise to speak on H.R. 3534,
the Consolidated Land, Energy and Aquatic Resources (CLEAR) Act.
I would like to recount the facts of April 30th, 2010 for this House
and the American people. First, let us remember the names of the eleven
brave men who tragically lost their lives in the Deepwater Horizon
explosion:
1. Jason Anderson, 35;
2. Aaron Dale Burkeen, 37;
3. Donald Clark, 34;
4. Stephen Curtis, 39;
5. Gordon Jones, 28;
6. Roy Wyatt Kemp, 27;
7. Karl Klepping, 38;
8. Blair Manuel, 56;
9. Dewey Revette, 48;
10. Shane Roshto, 22; and
11. Adam Weise, 24.
What the eleven names do not reveal is that there are families with
children, widows, and many other family members who are still mourning
the loss of their loved ones. I believe we have a moral obligation to
remember all of the lives affected by the loss of these eleven
dedicated oil rig workers. They were tough workers, but also gentle
fathers, brothers, husbands, as well as friends to many. Congress must
always consider how to best protect American lives, and in doing so
protect the safety of the American oil industry worker. In addition to
the lives lost, every individual, business and community adversely
affected by
[[Page H6509]]
the oil spill must be taken into account as we consider legislative
responses. Unfortunately, now with more than 92 million estimated
gallons of oil spilled and the fishing, tourism, boating, shrimping
industries, and the oil industry itself brought to a grinding halt, we
can anticipate other losses.
This tragedy begs the American people to act to promote safety, spur
technology, and to protect people in the Gulf Region. We owe it to them
to provide the kind of protection and legal framework that will ease
their minds, and help them receive what they are entitled to through
the claims process. Unfortunately, the original claims system was an
abomination with numerous claims unresolved, unpaid and ignored. BP has
received many claims and has issued many statements and reports, but
the fact of the matter is they have not delivered on those early
promises. We must make sure that they do what is right, and meet their
financial obligations to the many claimants still waiting to
reconstruct their lives and livelihoods.
The urgency of the energy situation in our country calls for
immediate action by Congress in developing a national energy policy. I
would have fully supported targeting the culprits in the Gulf oil spill
and getting the Gulf region back on track, as long as we also develop
effective policies to ensure that we set a high bar of expectations for
these companies in a system based on culpability. The people in the
Gulf region need to be assured that we will preserve their way of life,
while ensuring that their best interests are taken to heart. Their jobs
must be restored and preserved for future generations who may want a
livelihood in the oil and gas industry. I do not believe you can graft
a broader national energy policy for the future onto a bill meant
primarily to address the myriad of complex issues currently facing the
energy industry.
Regarding the Remedies Act, on July 1, 2010, I introduced a bill to
address some of the larger issues raised by oil spill related
developments in the Gulf of Mexico. Although a pronouncement of the
issue, I believe it captures the most substantive matters. I have tried
to adapt some of the provisions of that bill as amendments to the CLEAR
Act, to try and make a weak bill better.
I introduced an amendment under which applicants for permits to drill
in the Gulf of Mexico will be required to have spill prevention,
mitigation, and recovery plans that are vetted by impartial experts,
rather than rubber stamped by industry friendly regulators; the
amendment would also require that there be legitimate, effective back-
up plans in case the first response is ineffective. Another of my
amendments would allow the Secretary of Homeland Security to establish,
immediately, an independent claims process for those whose property and
livelihoods have been damaged by oil spills much like the process only
now being set up under Special Master Feinberg. Finally, I am proud to
cosponsor Representative Teague's (NM-2D) amendment, introduced the
same Amendment which will allow several small companies working
together in joint venture and partnerships to pool their financial
resources for the necessary Certificate of Oil Field Responsibility,
the price of admission to work in the Gulf. Without the option of
pooling their resources, or joint insurance, independent oil companies
will be driven from the Gulf, leaving it the province of only three or
four massive, multinational oil companies. If we can not preserve the
independent oil companies, responsible for 80 percent of the drilling
in the Gulf and 30 percent of the oil, then we are likely to doom an
industry that is one of the most prolific job generators in the nation,
particularly at a time when job creation in most American industries is
stagnant or minimal at best.
We must also take into consideration the importance of the
environment as it relates to our national energy policy and the quality
of life in the Gulf and the rest of the country, not to mention the
rest of the globe. We have no idea what the long-term impact of the
Gulf oil spill will be, as we are just beginning to understand the
issues of connectivity related to the environment and ecological
system. When birds nest in polluted wetlands and migrate to other parts
of the U.S. and the globe, what impact might their exposure to oil have
on the environmental quality of the environment in that part of the
world?
There are many complicated questions that we must answer before we
proclaim that we have a solution to protecting the environment to
massive oil spill in one bill. It is impossible to accomplish, and at
best any environmental strategy is merely a band-aid approach rather
than the comprehensive environmentally policy we need to consider. For
example we really need a major direct clean-up fund, and we have to
provide for environmental inspections. I urge a sense of immediacy as
it relates to the environment and to protect the people of the Gulf
from the long-term health consequences of the spill.
As a person who has lived in, worked in, and knows the Gulf region
well, I see the vibrant mixture of businesses there, from fishermen to
oil workers, who represent the quintessential hardworking American.
These Americans deserve applause for their contribution to our
productivity. We owe it to them to demand of the oil companies the same
high level of excellence that these hardworking men and women have
demonstrated. We must provide for appropriate penalties for safety
violations and breaches of compliance, while recognizing the importance
of the industry to job creation and job growth. As we did in this
tragic incident, we must come down hard on BP, but not eliminate them
from the picture, lest the whole industry be penalized.
There are some good things in this bill, although some of my ideas
were not adopted as part of the manager's amendment. For example, one
amendment would have required that businesses applying for permits to
drill and produce crude oil in the Gulf of Mexico submit detailed spill
mitigation and recovery plans as part of the permitting process. Not
only must they have recovery plans, but they will be required to have
backup plans, in case their first response fails. Additionally, those
plans must be vetted by impartial experts, rather than rubber-stamped
by insufficiently vigilant regulators.
Most important Representative Teague's amendment, which I
cosponsored, will prevent small, independent oil companies from being
driven out of the Gulf of Mexico. The problem with the current
requirements for the Certificate of Oil Field Responsibility (COFR) is
that smaller operators will be unable to establish the $300 million
necessary COFR to even begin exploration and development. By allowing
smaller companies--who frequently work together in joint ventures--to
pool their resources for COFR purposes, we will prevent the Gulf from
becoming the exclusive province of companies big enough to self-insure,
and allow the small businesses of the Gulf Coast communities to
continue to provide jobs and drive our economy.
Again, Mr. Chair, my central concern is that we promote job creation,
ensure long term investment and fiscal discipline, guarantee safety,
focus on the industry and accountability as we work to craft an
effective energy policy, and utilize energy related to fossil fuels in
a more responsible way, while we continue to make investments in
research and development, rather than pitting industries against each
other.
We just witnessed the development of a prescriptive policy related to
the coal industry, as a result of a tragedy with the mines in West
Virginia. That legislative business model is a useful example of how we
can develop energy policy related to oil. We must also continue to
promote new forms of green energy, while we keep our promise to the
American people to protect jobs in the oil and gas industry.
Unfortunately, our job is made very difficult when we see major
global energy companies and domestic industry excluded from a sensible
national energy policy. We must promote a strong process that will help
us deliver on these promises, both to the stakeholders and to the
American people. Everyone needs to buy-in to a national energy policy
in order for it to be successful.
Let me say that we must establish a seamless energy policy that all
sectors of the energy industry can support, cementing the United States
in the energy industry as the most independent producer globally, while
making it the worlds' leader in green energy.
Mr. Chair, I look forward to working with my Colleagues on this
approach to America's energy future. In addition, I strongly support
the Buy America Provision in the bill and the American Worker
Provision. As the CLEAR Act moves to the Senate, we must remember the
interests of the communities of the Gulf Coast, and of all those
affected by the devastation of the oil spill. We must remain committed
to protecting lives, protecting jobs and protecting the environment.
Mr. McNERNEY. Mr. Chair, I rise to express my support for H.R. 3534.
The spill in the Gulf is a tragedy, and this important bill will help
prevent future disasters. H.R. 3534 improves safety, prevents ethical
misconduct at federal agencies, and closes royalty loopholes enjoyed by
the oil and gas industry.
Some important provisions of H.R. 5626, the Blowout Prevention Act,
are also included in H.R. 3534. I am disappointed, however, that the
legislation before us today does not include a section of H.R. 5626
that authorizes the creation of expert review panels to provide
technical advice on regulatory decisions. During committee
consideration of H.R. 5626, I offered an amendment to clarify that
experts serving on such panels can be drawn from diverse backgrounds,
including industry, national laboratories, and academia.
I would like to note the particular importance of utilizing the
expertise available at America's national laboratories. I am familiar
with the work of the labs and the talents of lab employees through my
personal experience working as a contractor at Sandia National
Laboratories. Northern California is also the location
[[Page H6510]]
of three national laboratories that employ a number of my constituents.
Following the tragic explosion of the Deepwater Horizon, employees of
the national laboratories were quickly deployed to the Gulf. The
Department of Energy estimates that more than 200 lab employees have
been involved in crisis response operations. The labs have provided an
array of services such as developing pressure measurements and
radiographic imaging of the blowout preventer. Lab employees have also
provided technical services such as conducting flow and resistance
calculations, evaluating pressure data, and providing independent
analysis of BP's plans.
The national labs have a tremendous amount of technical expertise
that can help our country prevent future spills and better respond if
an unfortunate incident occurs. I look forward to working with members
of both parties to incorporate the labs into future legislation.
Mr. VAN HOLLEN. Mr. Chair, I rise in strong support of today's oil
spill response legislation, and I commend Chairmen Rahall, Miller,
Waxman, Oberstar and Conyers for bringing this package to the floor
today.
The Consolidated Land, Energy and Aquatic Resources (CLEAR) Act
corrects a number of major defects in current law that have come to
light in the Deepwater Horizon disaster. First, and most importantly,
it ensures BP--not the taxpayer--is held responsible for the full cost
of the cleanup. Second, it strengthens offshore drilling standards and
requires independent certification of critical safety equipment. Third,
it provides desperately needed reform to the scandal ridden Mineral
Management Service by separating its permitting, inspection and
collection functions. Fourth, it eliminates royalty loopholes that
allow oil companies to shortchange taxpayers when extracting resources
from public lands. And finally, it makes good on a 45 year old promise
to fully fund the Land Water and Conservation Fund so that Americans
can enjoy our Nation's natural, historical and recreational resources
for generations to come.
The Offshore Oil and Gas Worker Whistleblower Act (HR 5851)
complements today's package by extending whistleblower protections to
oil rig workers on the Outer Continental Shelf. Specifically, employers
would be prohibited from discharging or otherwise discriminating
against employees who report injuries, unsafe working conditions or
alleged violations of the Outer Continental Shelf Lands Act. Had these
protections been in place, the Deepwater Horizon workers with serious
safety concerns about the operation of their rig could have had more
confidence about coming forward prior to the explosion.
Mr. Chair, today's legislation is an important and necessary part of
our Nation's response to the Deepwater Horizon disaster. I urge a yes
vote and yield back the balance of my time.
Mr. MORAN of Virginia. Mr. Chair, I rise in support of the
Consolidated Land, Energy and Aquatic Resources or ``CLEAR'' Act (H.R.
3534).
This measure will impose long overdue reforms in the way the federal
government regulates oil and gas drilling operations off our coast.
Something the industry and their allies in Congress have long
opposed.
The explosion of Deepwater Horizon and the uncontrolled flow of oil
into the Gulf of Mexico render this opposition moot.
The American public has witnessed an ecological and economic
catastrophe the likes of which this country has never seen nor should
ever have to see again.
It has seen a company in the interest of boosting profits cut corners
and take shortcuts that resulted in the death of 11 workers, a Gulf
community in dire economic straights and untold loss of marine and
animal life.
It has seen a weak regulatory system rubber stamp drilling permits,
approving most in less than twenty-four hours and never reading or
realizing the response plans to a blowout were fiction.
How else could it accept plans to save walruses in the Louisiana
bayous and Alabama beaches?
More than 300 million gallons of crude oil have spilled into the Gulf
of Mexico before the wellhead was finally capped.
Even if the cap holds and relief wells secure and permanently plug
the well, the region will still have to deal with the millions of
gallons of oil spread throughout the Gulf and along hundreds of miles
of shoreline as the peak hurricane season approaches.
It will take decades for the region to recover.
It was a disaster waiting to happen and one we may now finally have
the tools to prevent from occurring again.
Reforms that were once thought impossible are now before this House
today.
This bill revamps the oil and gas royalty collection program, repeals
liability limits on economic damages, separates the apparent conflict
of interest between the federal government's royalty collection,
leasing and enforcement offices, imposes new procedures for use of
chemical dispersants, and mandates that the oil and gas industry
include a worst-case scenario for oil spill response plans.
But now some claim this bill is ``overreach,'' that it goes beyond
what is needed to address the failures of the industry and the
regulatory agency.
In addition to reform of our offshore oil and gas leasing program,
this bill breathes new life into a commitment proposed by John F.
Kennedy and signed into law by Lyndon Johnson to take a share from a
diminishing public resource, our offshore oil and gas reserves, and use
the funds to conserve and protect natural resources onshore.
LWCF was a good idea then and remains a good and popular idea today.
Since its inception, millions of acres of land has been conserved and
are in use today by the public. They are portions of our national
parks, wildlife refuges, national forests and state and local parks and
recreation areas.
They are responsible for saving endangered species from extinction,
protecting fresh sources of drinking water for millions of Americans,
and protecting valuable historic properties and landscapes from
destruction.
Unfortunately, the federal commitment has fallen short of the goal.
In recent years, we have underfunded our commitment to the Land and
Water Conservation Fund.
Over the past ten years, its funding level has been erratic, $672
million in fiscal 2001 and $253 million in fiscal 2007, but never at
its authorized level of $900 million.
This bill imposes a $2 per barrel fee on oil extracted from the
public's waters to allow us to fully fund the Land and Water
Conservation Fund and not add to the federal budget deficit.
It would then ensure that the program is funded at $900 million
annually. The additional funds this legislation will release will:
1. Ensure that areas protected by Congress can be more effectively
and efficiently managed. LWCF provides for inholdings with high
biological, historical or recreational values. These lands are
available for a limited time before they're developed. Sufficient LWCF
funding ensures agencies can take advantage of these opportunities.
Real estate prices are lower now, ensuring more land can be purchased
with each dollar invested.
2. Improve management by reducing fire danger and through other
means. It allows access to these areas to perform important wildlife
habitat management and facilitate public recreation. Fire danger,
public safety and other threats are reduced, and hunting, fishing,
wildlife watching and other recreation is improved and protected.
3. Ensure public access and quality recreation that has a substantial
economic impact. The Outdoor Industry Association estimates that active
outdoor recreation contributes $730 billion annually to the U.S.
economy, supports nearly 6.5 million jobs across the U.S., generates
$49 billion in annual national tax revenue, and produces $289 billion
annually in retail sales and services.
4. Ensure efficient management and cost savings. 80 percent of lands
acquired with LWCF funds lie within the existing boundaries of federal
parks, refuges, forests, or recreation areas. When land management
agencies purchase inholdings, internal boundary line surveying is
reduced, as well as right-of-way conflicts and special use permits.
Agencies generally tend to avoid acquisitions with burdensome
infrastructure improvements that require significant capital
investments. An added parcel generally does not increase management
presence; rather, management is usually just absorbed within existing
stewardship costs.
A recent national bipartisan poll shows strong support for the
continued use of oil and gas fees for land and water protection and for
fully funding the LWCF at $900 million annually.
An overwhelming majority of voters--86 percent--support committing
funds from offshore drilling fees to LWCF (up 5 percent from June
2009). (Poll conducted by Public Opinion Strategies and FM3)
Many local communities are strong supporters of federal LWCF
expenditures due to the economic benefits that accrue through
recreational tourism and the additional visitation that occurs with
improved public access and recreation opportunities.
LWCF protects places where people love to go, from famed national
parks to historic sites, to local parks that ensure recreation. LWCF
supports recreational access such as trailheads and river put-ins--that
allow hunters, fishermen, mountain bikers, hikers and boaters to access
America's recreation lands.
LWCF enjoys broad congressional support. LWCF has benefited every
state and every congressional district. LWCF has enjoyed longstanding,
widespread support not just among conservation champions but also among
fiscal conservatives and many minority members. Over the past five
years, letters urging the Appropriations Committee to provide
[[Page H6511]]
major increases to LWCF have been signed by a total of 36 Blue Dogs and
43 Republicans.
This is a way to fulfill the vision first stated by President
Eisenhower and what our constituents still support today.
Support the CLEAR Act.
Mr. QUIGLEY. Mr. Chair, I rise today in support of the CLEAR Act, one
of the most important measures we will pass this week, and perhaps,
this Congress.
It has been said that with great adversity comes great opportunity--
today, we are presented with great opportunity.
We are presented with the opportunity to ensure that what happened in
the Gulf never happens again.
We are presented with the opportunity to ensure that we have the
tools and the means to clean the Gulf Coast and make whole those whose
very livelihoods are threatened by this disaster.
We are presented with the opportunity to ensure that our children are
able to enjoy the great lands and waters of our lifetime.
I offered two amendments to the CLEAR Act that sought to shift our
OCS policy from a presumption of oil and gas extraction, to focus on
protection of the environment as our primary concern.
Additionally, the amendments required the Secretary to consider
geographical, geological, and ecological characteristics of OCS areas
before drilling, not after.
Ultimately, this bill does move us toward that goal--from an emphasis
on the bottom line to a clear focus on our future.
I urge my colleagues to support the CLEAR Act.
Mr. LEVIN. Mr. Chair, I rise in strong support of the Consolidated
Land, Energy and Aquatic Resources Act.
It is often said that experience is the best teacher. Unfortunately,
it often seems that experience is the only teacher when it comes to
developing common sense safeguards to prevent oil spills. As I speak,
at least 800,000 gallons of oil has spilled from a pipeline into the
Kalamazoo River in my home state of Michigan. We are just a few days
into this crisis, but surely this accident could have been prevented.
In 1989, the Exxon Valdez ran aground in Alaska and spilled 11
million gallons of crude oil into Prince William Sound, fouling
hundreds of miles of pristine coastline. In the months that followed,
Congress responded by approving the Oil Pollution Act that strengthened
the Federal Government's role in oil spill response and cleanup in the
case of oil tankers. Among its many provisions, the Act required
vessels carrying oil and operating in U.S. waters to have double hulls
to prevent further accidents of this type. The law has been a success,
but the damage to Alaska's environment was done.
We are more than 100 days into the oil spill crisis in the Gulf of
Mexico. To date, between 90 million and 180 million gallons of oil has
been released into the environment. The BP Deepwater Horizon spill
might have been prevented if there had been some basic drilling safety
standards in place, and if there had been effective oversight of BP's
actions as it was drilling the well. We are creating these standards
today with this bill.
The CLEAR Act before the House establishes new safety standards for
offshore oil drilling. The legislation reforms the Federal Government's
oversight of offshore drilling operations, holds BP and other oil
companies accountable, and ensures that polluters pay the full cost of
damage caused by the spills they create.
Experience is, indeed, the best teacher. But when it comes to
preventing future oil spills, an ounce of prevention is worth a pound
of cure. I urge passage of the CLEAR Act.
Mr. LANGEVIN. Mr. Chair, I rise in strong support of H.R. 3534, the
Consolidated Land, Energy, and Aquatic Resources (CLEAR) Act and H.R.
5851, the Offshore Oil and Gas Worker Whistleblower Protection Act.
Over 100 days ago, millions of gallons of oil began spilling into the
Gulf Mexico after an explosion on a BP deepwater drilling rig, which
tragically killed eleven workers. In the months since this accident,
the Committees of jurisdiction in the House of Representatives have
held numerous hearings to determine what went wrong and how to prevent
similar disasters in the future. I believe both the CLEAR Act and
Whistleblower Protection Act take critical steps to properly reform our
oil and gas drilling policies, as well as to protect the safety of oil
and gas workers.
This comprehensive legislation will end years of misaligned
priorities at the Minerals Management Service (MMS) at the Department
of the Interior (DOI) by dividing its responsibilities into three
different departments: the Bureau of Energy and Resource Management to
manage leasing and permitting; the Bureau of Safety and Environmental
Enforcement to police health and safety regulations; and the Office of
Natural Resource Revenue to collect the American people's energy
revenues earned on public lands. The bill further addresses misconduct
by the MMS by implementing strong ``revolving door'' provisions that
would ban MMS employees from accepting employment with oil and gas
companies for two years.
The CLEAR Act imposes strong new safety standards for offshore
drilling, including increased inspections, stricter penalties for
safety violations, and independent certifications of critical
equipment. I am also pleased that this comprehensive legislation
includes many provisions of legislation which I cosponsored after the
spill; including the elimination of the liability limit on oil
companies, subpoena power to enable the President's bipartisan
Commission to fully investigate the Deepwater Horizon spill, and the
establishment of a Gulf of Mexico Restoration Program.
Additionally, this bill will use the revenues received from energy
development to provide full funding to the Land and Water Conservation
Fund (LWCF) and the Historic Preservation Fund (HPF), both of which
contribute greatly to conservation efforts and open space preservation
in Rhode Island.
In addition to the modifications included in the CLEAR Act, it is
vitally important to the workers in our country to ensure that they
have access to safe working conditions, and when they do not, have the
opportunity to report their concerns without fear of retribution. The
Offshore Oil and Gas Worker Whistleblower Protection Act would
strengthen whistleblower protections for oil and gas workers by
prohibiting an employer from discriminating against an employee who
reports a violation or testifies about an alleged violation. It also
establishes a process for an employee to appeal an employer's
retaliation by filing a complaint with the Secretary of Labor.
I have long said that our nation cannot drill its way out of our
energy crisis. We can no longer sit idly by as greenhouse gas emissions
increase, our ecosystem is harmed, and our public health deteriorates
from increased pollution. It is long past time that our nation moves
away from our reliance on fossil fuels, both foreign and domestic, and
invests in renewable energy and energy efficient technologies. While I
do not believe we needed any more evidence to move in this direction,
it is my hope that we will learn from this tragedy and seek better and
safer solutions that will preserve our ecosystem and protect the health
and lives of our citizens by passing a comprehensive clean energy jobs
bill, such as the American Clean Energy and Security (ACES) Act. But as
we continue to move towards clean energy, I urge my colleagues to
support both H.R. 3534 and H.R. 5851 to make vast improvements to our
nation's domestic energy development and protect workers who put safety
first.
The CHAIR. All time for general debate has expired.
Pursuant to the rule, the bill shall be considered for amendment
under the 5-minute rule.
In lieu of the amendment in the nature of a substitute recommended by
the Committee on Natural Resources printed in the bill, it shall be in
order to consider as an original bill for the purpose of amendment
under the 5-minute rule the amendment in the nature of a substitute
printed in part A of House Report 111-582. The amendment in the nature
of a substitute shall be considered as read.
The amendment in the nature of a substitute is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the
``Consolidated Land, Energy, and Aquatic Resources Act of
2010''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--CREATION OF NEW DEPARTMENT OF THE INTERIOR AGENCIES
Sec. 101. Bureau of Energy and Resource Management.
Sec. 102. Bureau of Safety and Environmental Enforcement.
Sec. 103. Office of Natural Resources Revenue.
Sec. 104. Ethics.
Sec. 105. References.
Sec. 106. Abolishment of Minerals Management Service.
Sec. 107. Conforming amendment.
Sec. 108. Outer Continental Shelf Safety and Environmental Advisory
Board.
TITLE II--FEDERAL OIL AND GAS DEVELOPMENT
Subtitle A--Safety, Environmental, and Financial Reform of the Outer
Continental Shelf Lands Act
Sec. 201. Short title.
Sec. 202. Definitions.
Sec. 203. National policy for the Outer Continental Shelf.
Sec. 204. Jurisdiction of laws on the Outer Continental Shelf.
Sec. 205. Outer Continental Shelf leasing standard.
[[Page H6512]]
Sec. 206. Leases, easements, and rights-of-way.
Sec. 207. Disposition of revenues.
Sec. 208. Exploration plans.
Sec. 209. Outer Continental Shelf leasing program.
Sec. 210. Environmental studies.
Sec. 211. Safety regulations.
Sec. 212. Enforcement of safety and environmental regulations.
Sec. 213. Judicial review.
Sec. 214. Remedies and penalties.
Sec. 215. Uniform planning for Outer Continental Shelf.
Sec. 216. Oil and gas information program.
Sec. 217. Limitation on royalty-in-kind program.
Sec. 218. Restrictions on employment.
Sec. 219. Repeal of royalty relief provisions.
Sec. 220. Manning and buy- and build-American requirements.
Sec. 221. National Commission on the BP Deepwater Horizon Oil Spill and
Offshore Drilling.
Sec. 222. Coordination and consultation with affected State and local
governments.
Sec. 223. Implementation.
Subtitle B--Royalty Relief for American Consumers
Sec. 241. Short title.
Sec. 242. Eligibility for new leases and the transfer of leases.
Sec. 243. Price thresholds for royalty suspension provisions.
TITLE III--OIL AND GAS ROYALTY REFORM
Sec. 301. Amendments to definitions.
Sec. 302. Compliance reviews.
Sec. 303. Clarification of liability for royalty payments.
Sec. 304. Required recordkeeping.
Sec. 305. Fines and penalties.
Sec. 306. Interest on overpayments.
Sec. 307. Adjustments and refunds.
Sec. 308. Conforming amendment.
Sec. 309. Obligation period.
Sec. 310. Notice regarding tolling agreements and subpoenas.
Sec. 311. Appeals and final agency action.
Sec. 312. Assessments.
Sec. 313. Collection and production accountability.
Sec. 314. Natural gas reporting.
Sec. 315. Penalty for late or incorrect reporting of data.
Sec. 316. Required recordkeeping.
Sec. 317. Shared civil penalties.
Sec. 318. Applicability to other minerals.
Sec. 319. Entitlements.
Sec. 320. Limitation on royalty in-kind program.
TITLE IV--FULL FUNDING FOR THE LAND AND WATER CONSERVATION AND HISTORIC
PRESERVATION FUNDS
Subtitle A--Land and Water Conservation Fund
Sec. 401. Amendments to the Land and Water Conservation Fund Act of
1965.
Sec. 402. Extension of the Land and Water Conservation Fund.
Sec. 403. Permanent funding.
Subtitle B--National Historic Preservation Fund
Sec. 411. Permanent funding.
TITLE V--GULF OF MEXICO RESTORATION
Sec. 501. Gulf of Mexico restoration program.
Sec. 502. Gulf of Mexico long-term environmental monitoring and
research program.
Sec. 503. Gulf of Mexico emergency migratory species alternative
habitat program.
TITLE VI--COORDINATION AND PLANNING
Sec. 601. Regional coordination.
Sec. 602. Regional Coordination Councils.
Sec. 603. Regional strategic plans.
Sec. 604. Regulations and savings clause.
Sec. 605. Ocean Resources Conservation and Assistance Fund.
Sec. 606. Waiver.
TITLE VII--OIL SPILL ACCOUNTABILITY AND ENVIRONMENTAL PROTECTION
Sec. 701. Short title.
Sec. 702. Repeal of and adjustments to limitation on liability.
Sec. 703. Evidence of financial responsibility for offshore facilities.
Sec. 704. Damages to human health.
Sec. 705. Clarification of liability for discharges from mobile
offshore drilling units.
Sec. 706. Standard of review for damage assessment.
Sec. 707. Information on claims.
Sec. 708. Additional amendments and clarifications to Oil Pollution Act
of 1990.
Sec. 709. Americanization of offshore operations in the Exclusive
Economic Zone.
Sec. 710. Safety management systems for mobile offshore drilling units.
Sec. 711. Safety standards for mobile offshore drilling units.
Sec. 712. Operational control of mobile offshore drilling units.
Sec. 713. Single-hull tankers.
Sec. 714. Repeal of response plan waiver.
Sec. 715. National Contingency Plan.
Sec. 716. Tracking Database.
Sec. 717. Evaluation and approval of response plans; maximum penalties.
Sec. 718. Oil and hazardous substance cleanup technologies.
Sec. 719. Implementation of oil spill prevention and response
authorities.
Sec. 720. Impacts to Indian Tribes and public service damages.
Sec. 721. Federal enforcement actions.
Sec. 722. Time required before electing to proceed with judicial claim
or against the Fund.
Sec. 723. Authorized level of Coast Guard personnel.
Sec. 724. Clarification of memorandums of understanding.
Sec. 725. Build America requirement for offshore facilities.
Sec. 726. Oil spill response vessel database.
Sec. 727. Offshore sensing and monitoring systems.
Sec. 728. Oil and gas exploration and production.
Sec. 729. Leave retention authority.
Sec. 730. Authorization of appropriations.
TITLE VIII--MISCELLANEOUS PROVISIONS
Sec. 801. Repeal of certain taxpayer subsidized royalty relief for the
oil and gas industry.
Sec. 802. Conservation fee.
Sec. 803. Leasing on Indian lands.
Sec. 804. Outer Continental Shelf State boundaries.
Sec. 805. Liability for damages to national wildlife refuges.
Sec. 806. Strengthening coastal State oil spill planning and response.
Sec. 807. Information sharing.
Sec. 808. Limitation on use of funds.
Sec. 809. Environmental review.
Sec. 810. Federal response to State proposals to protect State lands
and waters.
SEC. 2. DEFINITIONS.
For the purposes of this Act:
(1) Affected indian tribe.--The term ``affected Indian
tribe'' means an Indian tribe that has federally reserved
rights that are affirmed by treaty, statute, Executive order,
Federal court order, or other Federal law in the area at
issue.
(2) Coastal state.--The term ``coastal State'' has the same
meaning given the term ``coastal state'' in section 304 of
the Coastal Zone Management Act of 1972 (16 U.S.C. 1453).
(3) Department.--The term ``Department'' means the
Department of the Interior, except as the context indicates
otherwise.
(4) Function.--The term ``function'', with respect to a
function of an officer, employee, or agent of the Federal
Government, or of a Department, agency, office, or other
instrumentality of the Federal Government, includes
authorities, powers, rights, privileges, immunities,
programs, projects, activities, duties, and responsibilities.
(5) Important ecological area.--The term ``important
ecological area'' means an area that contributes
significantly to local or larger marine ecosystem health or
is an especially unique or sensitive marine ecosystem.
(6) Indian land.--The term ``Indian land'' has the meaning
given the term in section 502(a) of title V of Public Law
109-58 (25 U.S.C. 3501(2)).
(7) Indian tribe.--The term ``Indian tribe'' has the same
meaning given the term ``Indian tribe'' has in section 4 of
the Indian Self-Determination and Education Assistance Act
(25 U.S.C. 450b).
(8) Marine ecosystem health.--The term ``marine ecosystem
health'' means the ability of an ecosystem in ocean and
coastal waters to support and maintain patterns, important
processes, and productive, sustainable, and resilient
communities of organisms, having a species composition,
diversity, and functional organization resulting from the
natural habitat of the region, such that it is capable of
supporting a variety of activities and providing a complete
range of ecological benefits. Such an ecosystem would be
characterized by a variety of factors, including--
(A) a complete diversity of native species and habitat
wherein each native species is able to maintain an abundance,
population structure, and distribution supporting its
ecological and evolutionary functions, patterns, and
processes; and
(B) a physical, chemical, geological, and microbial
environment that is necessary to achieve such diversity.
(9) Mineral.--The term ``mineral'' has the same meaning
that the term ``minerals'' has in section 2(q) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1331(q)).
(10) Nonrenewable energy resource.--The term ``nonrenewable
energy resource'' means oil and natural gas.
(11) Operator.--The term ``operator'' means--
(A) the lessee; or
(B) a person designated by the lessee as having control or
management of operations on the leased area or a portion
thereof, who is--
(i) approved by the Secretary, acting through the Bureau of
Energy and Resource Management; or
(ii) the holder of operating rights under an assignment of
operating rights that is approved by the Secretary, acting
through the Bureau of Energy and Resource Management.
(12) Outer continental shelf.--The term ``Outer Continental
Shelf'' has the same meaning given the term ``outer
Continental Shelf'' has in the Outer Continental Shelf Lands
Act (43 U.S.C. 1331 et seq.).
[[Page H6513]]
(13) Regional ocean partnership.--The term ``Regional Ocean
Partnership'' means voluntary, collaborative management
initiatives developed and entered into by the Governors of
two or more coastal States or created by an interstate
compact for the purpose of addressing more than one ocean,
coastal, or Great Lakes issue and to implement policies and
activities identified under special area management plans
under the Coastal Zone Management Act of 1972 (16 U.S.C. 1451
et seq.) or other agreements developed and signed by the
Governors.
(14) Renewable energy resource.--The term ``renewable
energy resource'' means each of the following:
(A) Wind energy.
(B) Solar energy.
(C) Geothermal energy.
(D) Biomass or landfill gas.
(E) Marine and hydrokinetic renewable energy, as that term
is defined in section 632 of the Energy Independence and
Security Act of 2007 (42 U.S.C. 17211).
(15) Secretaries.--The term ``Secretaries'' means the
Secretary of the Interior and the Secretary of Commerce.
(16) Secretary.--The term ``Secretary'' means the Secretary
of the Interior, except as otherwise provided in this Act.
(17) Terms defined in other law.--Each of the terms
``Federal land'', ``lease'', and ``mineral leasing law'' has
the same meaning given the term under the Federal Oil and Gas
Royalty Management Act of 1982 (30 U.S.C. 1701 et seq.),
except that such terms shall also apply to all minerals and
renewable energy resources in addition to oil and gas.
TITLE I--CREATION OF NEW DEPARTMENT OF THE INTERIOR AGENCIES
SEC. 101. BUREAU OF ENERGY AND RESOURCE MANAGEMENT.
(a) Establishment.--There is established in the Department
of the Interior a Bureau of Energy and Resource Management
(referred to in this section as the ``Bureau'') to be headed
by a Director of Energy and Resource Management (referred to
in this section as the ``Director'').
(b) Director.--
(1) Appointment.--The Director shall be appointed by the
President, by and with the advice and consent of the Senate,
on the basis of--
(A) professional background, demonstrated competence, and
ability; and
(B) capacity to--
(i) administer the provisions of this Act; and
(ii) ensure that the fiduciary duties of the United States
Government on behalf of the people of the United States, as
they relate to development of nonrenewable and renewable
energy and mineral resources, are duly met.
(2) Compensation.--The Director shall be compensated at the
rate provided for Level V of the Executive Schedule under
section 5316 of title 5, United States Code.
(c) Duties.--
(1) In general.--Except as provided in paragraph (4), the
Secretary shall carry out through the Bureau all functions,
powers, and duties vested in the Secretary relating to the
administration of a comprehensive program of nonrenewable and
renewable energy and mineral resources management--
(A) on the Outer Continental Shelf, pursuant to the Outer
Continental Shelf Lands Act as amended by this Act (43 U.S.C.
1331 et seq.);
(B) on Federal public lands, pursuant to the Mineral
Leasing Act (30 U.S.C. 181 et seq.) and the Geothermal Steam
Act of 1970 (30 U.S.C. 1001 et seq.);
(C) on acquired Federal lands, pursuant to the Mineral
Leasing Act for Acquired Lands (30 U.S.C. 351 et seq.) and
the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.);
(D) in the National Petroleum Reserve in Alaska, pursuant
to the Naval Petroleum Reserves Production Act of 1976 (42
U.S.C. 6501 et seq.);
(E) on any Federal land pursuant to any mineral leasing
law; and
(F) pursuant to this Act and all other applicable Federal
laws, including the administration and approval of all
instruments and agreements required to ensure orderly, safe,
and environmentally responsible nonrenewable and renewable
energy and mineral resources development activities.
(2) Specific authorities.--The Director shall promulgate
and implement regulations for the proper issuance of leases
for the exploration, development, and production of
nonrenewable and renewable energy and mineral resources, and
for the issuance of permits under such leases, on the Outer
Continental Shelf and for nonrenewable and renewable energy
and mineral resources managed by the Bureau of Land
Management on the date of enactment of this Act, or any other
Federal land management agency, including regulations
relating to resource identification, access, evaluation, and
utilization.
(3) Independent environmental science.--
(A) In general.--The Secretary shall create an independent
office within the Bureau that--
(i) shall report to the Director;
(ii) shall be programmatically separate and distinct from
the leasing and permitting activities of the Bureau; and
(iii) shall--
(I) carry out the environmental studies program under
section 20 of the Outer Continental Shelf Lands Act (43
U.S.C. 1346);
(II) conduct any environmental analyses necessary for the
programs administered by the Bureau; and
(III) carry out other functions as deemed necessary by the
Secretary.
(B) Consultation.--Studies and analyses carried out by the
office created under subparagraph (A) shall be conducted in
appropriate and timely consultation with other relevant
Federal agencies, including--
(i) the Bureau of Safety and Environmental Enforcement;
(ii) the United States Fish and Wildlife Service;
(iii) the United States Geological Survey; and
(iv) the National Oceanic and Atmospheric Administration.
(4) Limitation.--The Secretary shall not carry out through
the Bureau any function, power, or duty that is--
(A) required by section 102 to be carried out through
Bureau of Safety and Environmental Enforcement; or
(B) required by section 103 to be carried out through the
Office of Natural Resources Revenue.
(d) Comprehensive Data and Analyses on Outer Continental
Shelf Resources.--
(1) In general.--
(A) Programs.--The Director shall develop and carry out
programs for the collection, evaluation, assembly, analysis,
and dissemination of data and information that is relevant to
carrying out the duties of the Bureau, including studies
under section 20 of the Outer Continental Shelf Lands Act (43
U.S.C. 1346).
(B) Use of data and information.--The Director shall, in
carrying out functions pursuant to the Outer Continental
Lands Act (43 U.S.C. 1331 et seq.), consider data and
information referred to in subparagraph (A) which shall
inform the management functions of the Bureau, and shall
contribute to a broader coordination of development
activities within the contexts of the best available science
and marine spatial planning.
(2) Interagency cooperation.--In carrying out programs
under this subsection, the Bureau shall--
(A) utilize the authorities of subsection (g) and (h) of
section 18 of the Outer Continental Shelf Lands Act (43
U.S.C. 1344);
(B) cooperate with appropriate offices in the Department
and in other Federal agencies;
(C) use existing inventories and mapping of marine
resources previously undertaken by the Minerals Management
Service, mapping undertaken by the United States Geological
Survey and the National Oceanographic and Atmospheric
Administration, and information provided by the Department of
Defense and other Federal and State agencies possessing
relevant data; and
(D) use any available data regarding renewable energy
potential, navigation uses, fisheries, aquaculture uses,
recreational uses, habitat, conservation, and military uses
of the Outer Continental Shelf.
(e) Responsibilities of Land Management Agencies.--Nothing
in this section shall affect the authorities of the Bureau of
Land Management under the Federal Land Policy and Management
Act of 1976 (43 U.S.C. 1701 et seq.) or of the Forest Service
under the National Forest Management Act of 1976 (Public Law
94-588).
SEC. 102. BUREAU OF SAFETY AND ENVIRONMENTAL ENFORCEMENT.
(a) Establishment.--There is established in the Department
a Bureau of Safety and Environmental Enforcement (referred to
in this section as the ``Bureau'') to be headed by a Director
of Safety and Environmental Enforcement (referred to in this
section as the ``Director'').
(b) Director.--
(1) Appointment.--The Director shall be appointed by the
President, by and with the advice and consent of the Senate,
on the basis of--
(A) professional background, demonstrated competence, and
ability; and
(B) capacity to administer the provisions of this Act.
(2) Compensation.--The Director shall be compensated at the
rate provided for Level V of the Executive Schedule under
section 5316 of title 5, United States Code.
(c) Duties.--
(1) In general.--The Secretary shall carry out through the
Bureau all functions, powers, and duties vested in the
Secretary relating to the administration of safety and
environmental enforcement activities related to nonrenewable
and renewable energy and mineral resources--
(A) on the Outer Continental Shelf pursuant to the Outer
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.);
(B) on Federal public lands, pursuant to the Mineral
Leasing Act (30 U.S.C. 181 et seq.) and the Geothermal Steam
Act of 1970 (30 U.S.C. 1001 et seq.);
(C) on acquired Federal lands, pursuant to the Mineral
Leasing Act for Acquired Lands (30 U.S.C. 351 et seq.) and
the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.);
(D) in the National Petroleum Reserve in Alaska, pursuant
to the Naval Petroleum Reserves Production Act of 1976 (42
U.S.C. 6501 et seq.); and
(E) pursuant to--
(i) the Federal Oil and Gas Royalty Management Act of 1982
(30 U.S.C. 1701 et seq.);
(ii) the Energy Policy Act of 2005 (Public Law 109-58);
(iii) the Federal Oil and Gas Royalty Simplification and
Fairness Act of 1996 (Public Law 104-185);
(iv) the Forest and Rangeland Renewable Resources Planning
Act of 1974 (16 U.S.C. 1600 et seq.);
[[Page H6514]]
(v) the Federal Land Policy and Management Act of 1976 (43
U.S.C. 1701 et seq.);
(vi) this Act; and
(vii) all other applicable Federal laws,
including the authority to develop, promulgate, and enforce
regulations to ensure the safe and environmentally sound
exploration, development, and production of nonrenewable and
renewable energy and mineral resources on the Outer
Continental Shelf and onshore federally managed lands.
(d) Authorities.--In carrying out the duties under this
section, the Secretary's authorities shall include--
(1) performing necessary oversight activities to ensure the
proper application of environmental reviews, including those
conducted pursuant to the National Environmental Policy Act
of 1969 (42 U.S.C. 4321 et seq.) by the Bureau of Energy and
Resource Management in the performance of its duties under
the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et
seq.);
(2) suspending or prohibiting, on a temporary basis, any
operation or activity, including production--
(A) on leases held on the Outer Continental Shelf, in
accordance with section 5(a)(1) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1334(a)(1)); or
(B) on leases or rights-of-way held on Federal lands under
any other minerals or energy leasing statute, in accordance
with section 302(c) of the Federal Land Policy and Management
Act of 1976 (43 U.S.C. 1701 et seq.);
(3) cancelling any lease, permit, or right-of-way--
(A) on the Outer Continental Shelf, in accordance with
section 5(a)(2) of the Outer Continental Shelf Lands Act (43
U.S.C. 1334(a)(2)); or
(B) on onshore Federal lands, in accordance with section
302(c) of the Federal Land Policy and Management Act of 1976
(43 U.S.C. 1732(c));
(4) compelling compliance with applicable worker safety and
environmental laws and regulations;
(5) requiring comprehensive safety and environmental
management programs for persons engaged in activities
connected with the exploration, development, and production
of energy or mineral resources;
(6) developing and implementing regulations for Federal
employees to carry out any inspection or investigation to
ascertain compliance with applicable regulations, including
health, safety, or environmental regulations;
(7) collecting, evaluating, assembling, analyzing, and
publicly disseminating electronically data and information
that is relevant to inspections, failures, or accidents
involving equipment and systems used for exploration and
production of energy and mineral resources, including human
factors associated therewith;
(8) implementing the Offshore Technology Research and Risk
Assessment Program under section 21 of the Outer Continental
Shelf Lands Act (43 U.S.C. 1347);
(9) summoning witnesses and directing the production of
evidence;
(10) levying fines and penalties and disqualifying
operators; and
(11) carrying out any safety, response, and removal
preparedness functions.
(e) Employees.--
(1) In general.--The Secretary shall ensure that the
inspection force of the Bureau consists of qualified, trained
employees who meet qualification requirements and adhere to
the highest professional and ethical standards.
(2) Qualifications.--The qualification requirements
referred to in paragraph (1)--
(A) shall be determined by the Secretary, subject to
subparagraph (B); and
(B) shall include--
(i) three years of practical experience in oil and gas
exploration, development, or production; or
(ii) a degree in an appropriate field of engineering from
an accredited institution of higher learning.
(3) Assignment.--In assigning oil and gas inspectors to the
inspection and investigation of individual operations, the
Secretary shall give due consideration to the extent possible
to their previous experience in the particular type of oil
and gas operation in which such inspections are to be made.
(4) Training academy.--
(A) In general.--The Secretary shall establish and maintain
a National Oil and Gas Health and Safety Academy (referred to
in this paragraph as the ``Academy'') as an agency of the
Department of the Interior.
(B) Functions of academy.--The Secretary, through the
Academy, shall be responsible for--
(i) the initial and continued training of both newly hired
and experienced oil and gas inspectors in all aspects of
health, safety, environmental, and operational inspections;
(ii) the training of technical support personnel of the
Bureau;
(iii) any other training programs for oil and gas
inspectors, Bureau personnel, Department personnel, or other
persons as the Secretary shall designate; and
(iv) certification of the successful completion of training
programs for newly hired and experienced oil and gas
inspectors.
(C) Cooperative agreements.--
(i) In general.--In performing functions under this
paragraph, and subject to clause (ii), the Secretary may
enter into cooperative educational and training agreements
with educational institutions, related Federal academies,
other Federal agencies, State governments, labor
organizations, and oil and gas operators and related
industries.
(ii) Training requirement.--Such training shall be
conducted by the Academy in accordance with curriculum needs
and assignment of instructional personnel established by the
Secretary.
(D) Use of departmental personnel.--In performing functions
under this subsection, the Secretary shall use, to the extent
practicable, the facilities and personnel of the Department
of the Interior. The Secretary may appoint or assign to the
Academy such officers and employees as the Secretary
considers necessary for the performance of the duties and
functions of the Academy.
(5) Additional training programs.--
(A) In general.--The Secretary shall work with appropriate
educational institutions, operators, and representatives of
oil and gas workers to develop and maintain adequate programs
with educational institutions and oil and gas operators, that
are designed--
(i) to enable persons to qualify for positions in the
administration of this Act; and
(ii) to provide for the continuing education of inspectors
or other appropriate Departmental personnel.
(B) Financial and technical assistance.--The Secretary may
provide financial and technical assistance to educational
institutions in carrying out this paragraph.
SEC. 103. OFFICE OF NATURAL RESOURCES REVENUE.
(a) Establishment.--There is established in the Department
an Office of Natural Resources Revenue (referred to in this
section as the ``Office'') to be headed by a Director of
Natural Resources Revenue (referred to in this section as the
``Director'').
(b) Appointment and Compensation.--
(1) In general.--The Director shall be appointed by the
President, by and with the advice and consent of the Senate,
on the basis of--
(A) professional competence; and
(B) capacity to--
(i) administer the provisions of this Act; and
(ii) ensure that the fiduciary duties of the United States
Government on behalf of the American people, as they relate
to development of nonrenewable and renewable energy and
mineral resources, are duly met.
(2) Compensation.--The Director shall be compensated at the
rate provided for Level V of the Executive Schedule under
section 5316 of title 5, United States Code.
(c) Duties.--
(1) In general.--The Secretary shall carry out, through the
Office--
(A) all functions, powers, and duties vested in the
Secretary and relating to the administration of the royalty
and revenue management functions pursuant to--
(i) the Outer Continental Shelf Lands Act (43 U.S.C. 1331
et seq.);
(ii) the Mineral Leasing Act (30 U.S.C. 181 et seq.);
(iii) the Mineral Leasing Act for Acquired Lands (30 U.S.C.
351 et seq.);
(iv) the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et
seq.);
(v) the Naval Petroleum Reserves Production Act of 1976 (42
U.S.C. 6501 et seq.);
(vi) the Federal Oil and Gas Royalty Management Act of 1982
(30 U.S.C. 1701 et seq.);
(vii) the Federal Oil and Gas Royalty Simplification and
Fairness Act of 1996 (Public Law 104-185);
(viii) the Energy Policy Act of 2005 (Public Law 109-58);
(ix) the Forest and Rangeland Renewable Resources Planning
Act of 1974 (16 U.S.C. 1600 et seq.);
(x) the Federal Land Policy and Management Act of 1976 (43
U.S.C. 1701 et seq.); and
(xi) this Act and all other applicable Federal laws; and
(B) all functions, powers, and duties previously assigned
to the Minerals Management Service (including the authority
to develop, promulgate, and enforce regulations) regarding--
(i) royalty and revenue collection;
(ii) royalty and revenue distribution;
(iii) auditing and compliance;
(iv) investigation and enforcement of royalty and revenue
regulations; and
(v) asset management for onshore and offshore activities.
(d) Oversight.--In order to provide transparency and ensure
strong oversight over the revenue program, the Secretary
shall--
(1) create within the Office an independent audit and
oversight program responsible for monitoring the performance
of the Office with respect to the duties and functions under
subsection (c), and conducting internal control audits of the
operations of the Office;
(2) facilitate the participation of those Indian tribes and
States operating pursuant to cooperative agreements or
delegations under the Federal Oil and Gas Royalty Management
Act of 1982 (30 U.S.C. 1701 et seq.) on all of the management
teams, committees, councils, and other entities created by
the Office; and
(3) assure prior consultation with those Indian tribes and
States referred to in paragraph (2) in the formulation all
policies, procedures, guidance, standards, and rules relating
to the functions referred to in subsection (c).
SEC. 104. ETHICS.
(a) Certification.--The Secretary shall certify annually
that all Department of the Interior officers and employees
having regular, direct contact with lessees and operators as
a function of their official duties are
[[Page H6515]]
in full compliance with all Federal employee ethics laws and
regulations under the Ethics in Government Act of 1978 (5
U.S.C. App.) and part 2635 of title 5, Code of Federal
Regulations, and all guidance issued under subsection (b).
(b) Guidance.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall issue
supplementary ethics guidance for the employees for which
certification is required under subsection (a).
SEC. 105. REFERENCES.
(a) Bureau of Energy and Resource Management.--Any
reference in any law, rule, regulation, directive,
instruction, certificate, or other official document, in
force immediately before the enactment of this Act--
(1) to the Minerals Management Service that pertains to any
of the duties and authorities referred to in section 101 is
deemed to refer and apply to the Bureau of Energy and
Resource Management established by section 101;
(2) to the Director of the Minerals Management Service that
pertains to any of the duties and authorities referred to in
section 101 is deemed to refer and apply to the Director of
the Bureau of Energy and Resource Management;
(3) to any other position in the Minerals Management
Service that pertains to any of the duties and authorities
referred to in section 101 is deemed to refer and apply to
that same or equivalent position in the Bureau of Energy and
Resource Management;
(4) to the Bureau of Land Management that pertains to any
of the duties and authorities referred to in section 101 is
deemed to refer and apply to the Bureau of Energy and
Resource Management;
(5) to the Director of the Bureau of Land Management that
pertains to any of the duties and authorities referred to in
section 101 is deemed to refer and apply to the Director of
the Bureau of Energy and Resource Management; and
(6) to any other position in the Bureau of Land Management
that pertains to any of the duties and authorities referred
to in section 101 is deemed to refer and apply to that same
or equivalent position in the Bureau of Energy and Resource
Management.
(b) Bureau of Safety and Environmental Enforcement.--Any
reference in any law, rule, regulation, directive,
instruction, certificate, or other official document in force
immediately before the enactment of this Act--
(1) to the Minerals Management Service that pertains to any
of the duties and authorities referred to in section 102 is
deemed to refer and apply to the Bureau of Safety and
Environmental Enforcement established by section 102;
(2) to the Director of the Minerals Management Service that
pertains to any of the duties and authorities referred to in
section 102 is deemed to refer and apply to the Director of
the Bureau of Safety and Environmental Enforcement;
(3) to any other position in the Minerals Management
Service that pertains to any of the duties and authorities
referred to in section 102 is deemed to refer and apply to
that same or equivalent position in the Bureau of Safety and
Environmental Enforcement;
(4) to the Bureau of Land Management that pertains to any
of the duties and authorities referred to in section 102 is
deemed to refer and apply to the Bureau of Safety and
Environmental Enforcement;
(5) to the Director of the Bureau of Land Management that
pertains to any of the duties and authorities referred to in
section 102 is deemed to refer and apply to the Director of
the Bureau of Safety and Environmental Enforcement; and
(6) to any other position in the Bureau of Land Management
that pertains to any of the duties and authorities referred
to in section 102 is deemed to refer and apply to that same
or equivalent position in the Bureau of Safety and
Environmental Enforcement.
(c) Office of Natural Resources Revenue.--Any reference in
any law, rule, regulation, directive, or instruction, or
certificate or other official document, in force immediately
prior to enactment--
(1) to the Minerals Management Service that pertains to any
of the duties and authorities referred to in section 103 is
deemed to refer and apply to the Office of Natural Resources
Revenue established by section 103;
(2) to the Director of the Minerals Management Service that
pertains to any of the duties and authorities referred to in
section 103 is deemed to refer and apply to the Director of
Natural Resources Revenue; and
(3) to any other position in the Minerals Management
Service that pertains to any of the duties and authorities
referred to in section 103 is deemed to refer and apply to
that same or equivalent position in the Office of Natural
Resources Revenue.
SEC. 106. ABOLISHMENT OF MINERALS MANAGEMENT SERVICE.
(a) Abolishment.--The Minerals Management Service (in this
section referred to as the ``Service'') is abolished.
(b) Completed Administrative Actions.--
(1) In general.--Completed administrative actions of the
Service shall not be affected by the enactment of this Act,
but shall continue in effect according to their terms until
amended, modified, superseded, terminated, set aside, or
revoked in accordance with law by an officer of the United
States or a court of competent jurisdiction, or by operation
of law.
(2) Completed administrative action defined.--For purposes
of paragraph (1), the term ``completed administrative
action'' includes orders, determinations, rules, regulations,
personnel actions, permits, agreements, grants, contracts,
certificates, licenses, registrations, and privileges.
(c) Pending Proceedings.--Subject to the authority of the
Secretary of the Interior and the officers of the Department
of the Interior under this Act--
(1) pending proceedings in the Service, including notices
of proposed rulemaking, and applications for licenses,
permits, certificates, grants, and financial assistance,
shall continue, notwithstanding the enactment of this Act or
the vesting of functions of the Service in another agency,
unless discontinued or modified under the same terms and
conditions and to the same extent that such discontinuance or
modification could have occurred if this Act had not been
enacted; and
(2) orders issued in such proceedings, and appeals
therefrom, and payments made pursuant to such orders, shall
issue in the same manner and on the same terms as if this Act
had not been enacted, and any such orders shall continue in
effect until amended, modified, superseded, terminated, set
aside, or revoked by an officer of the United States or a
court of competent jurisdiction, or by operation of law.
(d) Pending Civil Actions.--Subject to the authority of the
Secretary of the Interior or any officer of the Department of
the Interior under this Act, pending civil actions shall
continue notwithstanding the enactment of this Act, and in
such civil actions, proceedings shall be had, appeals taken,
and judgments rendered and enforced in the same manner and
with the same effect as if such enactment had not occurred.
(e) References.--References relating to the Service in
statutes, Executive orders, rules, regulations, directives,
or delegations of authority that precede the effective date
of this Act are deemed to refer, as appropriate, to the
Department, to its officers, employees, or agents, or to its
corresponding organizational units or functions. Statutory
reporting requirements that applied in relation to the
Service immediately before the effective date of this Act
shall continue to apply.
SEC. 107. 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 new items:
``Director, Bureau of Energy and Resource Management,
Department of the Interior.
``Director, Bureau of Safety and Environmental Enforcement,
Department of the Interior.
``Director, Office of Natural Resources Revenue, Department
of the Interior.''.
SEC. 108. OUTER CONTINENTAL SHELF SAFETY AND ENVIRONMENTAL
ADVISORY BOARD.
(a) Establishment.--The Secretary shall establish, under
the Federal Advisory Committee Act, an Outer Continental
Shelf Safety and Environmental Advisory Board (referred to in
this section as the ``Board''), to provide the Secretary and
the Directors of the bureaus established by this title with
independent scientific and technical advice on safe and
environmentally compliant nonrenewable and renewable energy
and mineral resource exploration, development, and production
activities.
(b) Membership.--
(1) Size.--The Board shall consist of not more than 12
members, chosen to reflect a range of expertise in
scientific, engineering, management, environmental, and other
disciplines related to safe and environmentally compliant
renewable and nonrenewable energy and mineral resource
exploration, development, and production activities. The
Secretary shall consult with the National Academy of Sciences
and the National Academy of Engineering to identify potential
candidates for the Board.
(2) 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.
(3) Balance.--In appointing members to the Board, the
Secretary shall ensure a balanced representation of industry-
and nonindustry-related interests.
(c) Chair.--The Secretary shall appoint the Chair for the
Board.
(d) Meetings.--The Board shall meet not less than 3 times
per year and, at least once per year, shall host a public
forum to review and assess the overall safety and
environmental performance of Outer Continental Shelf
nonrenewable and renewable energy and mineral resource
activities.
(e) Offshore Drilling Safety Assessments and
Recommendations.--As part of its duties under this section,
the Board shall, by not later than 180 days after the date of
enactment of this section and every 5 years thereafter,
submit to the Secretary a report that--
(1) assesses offshore oil and gas well control
technologies, practices, voluntary standards, and regulations
in the United States and elsewhere;
(2) assesses whether existing well control regulations
issued by the Secretary under the Outer Continental Shelf
Lands Act (43 U.S.C. 1331 et seq.) adequately protect public
health and safety and the environment; and
(3) as appropriate, recommends modifications to the
regulations issued under this Act to ensure adequate
protection of public health and safety and the environment.
[[Page H6516]]
(f) Reports.--Reports of the Board shall be submitted to
the Congress and made available to the public in
electronically accessible form.
(g) Travel Expenses.--Members of the Board, other than
full-time employees of the Federal Government, while
attending meeting of the Board or while otherwise serving at
the request of the Secretary or the Director while serving
away from their homes or regular places of business, may be
allowed travel expenses, including per diem in lieu of
subsistence, as authorized by section 5703 of title 5, United
States Code, for individuals in the Government serving
without pay.
TITLE II--FEDERAL OIL AND GAS DEVELOPMENT
Subtitle A--Safety, Environmental, and Financial Reform of the Outer
Continental Shelf Lands Act
SEC. 201. SHORT TITLE.
This subtitle may be cited as the ``Outer Continental Shelf
Lands Act Amendments of 2010''.
SEC. 202. 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) The term `safety case' means a body of evidence that
provides a basis for determining whether a system is
adequately safe for a given application in a given operating
environment.''.
SEC. 203. 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, that should be managed in a manner that--
``(A) recognizes the need of the United States for 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 and orderly management of those
resources that safeguards the environment and respects the
multiple values and uses of the outer Continental Shelf;'';
(2) in paragraph (4), by striking the period at the end and
inserting a semicolon;
(3) in paragraph (5), by striking ``should be'' and
inserting ``shall be'', and 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 minimizes--
``(A) harmful impacts to life (including fish and other
aquatic life) and health;
``(B) damage to the marine, coastal, and human environments
and to property; and
``(C) harm to other users of the waters, seabed, or
subsoil; and''; and
(6) in paragraph (7) (as so redesignated), by--
(A) striking ``should be'' and inserting ``shall be'';
(B) inserting ``best available'' after ``using''; and
(C) striking ``or minimize''.
SEC. 204. JURISDICTION OF LAWS ON THE OUTER CONTINENTAL
SHELF.
Section 4(a)(1) of the Outer Continental Shelf Lands Act
(43 U.S.C. 1333(a)(1)) is amended by--
(1) inserting ``or producing or supporting production of
energy from sources other than oil and gas'' after
``therefrom'';
(2) inserting ``or transmitting such energy'' after
``transporting such resources''; and
(3) inserting ``and other energy'' after ``That mineral''.
SEC. 205. OUTER CONTINENTAL SHELF LEASING STANDARD.
(a) In General.--Section 5 of the Outer Continental Shelf
Lands Act (43 U.S.C. 1334) is amended--
(1) in subsection (a), by striking ``The Secretary may at
any time'' and inserting ``The Secretary shall'';
(2) in the second sentence of subsection (a), by adding
after ``provide for'' the following: ``operational safety,
the protection of the marine and coastal environment, and'';
(3) in subsection (a), by inserting ``and the Secretary of
Commerce with respect to matters that may affect the marine
and coastal environment'' after ``which may affect
competition'';
(4) in clause (ii) of subsection (a)(2)(A), by striking ``a
reasonable period of time'' and inserting ``30 days'';
(5) in subsection (a)(7), by inserting ``in a manner that
minimizes harmful impacts to the marine and coastal
environment'' after ``lease area'';
(6) in subsection (a), by striking ``and'' after the
semicolon at the end of paragraph (7), redesignating
paragraph (8) as paragraph (13), and inserting after
paragraph (7) the following:
``(8) for independent third-party certification
requirements of safety systems related to well control, such
as blowout preventers;
``(9) for performance requirements for blowout preventers,
including quantitative risk assessment standards, subsea
testing, and secondary activation methods;
``(10) for independent third-party certification
requirements of well casing and cementing programs and
procedures;
``(11) for the establishment of mandatory safety and
environmental management systems by operators on the Outer
Continental Shelf;
``(12) for procedures and technologies to be used during
drilling operations to minimize the risk of ignition and
explosion of hydrocarbons;'';
(7) in subsection (a), by striking the period at the end of
paragraph (13), as so redesignated, and inserting ``; and'',
and by adding at the end the following:
``(14) ensuring compliance with other applicable
environmental and natural resource conservation laws.''; and
(8) by adding at the end the following new subsections:
``(k) Documents Incorporated by Reference.--Any documents
incorporated by reference in regulations promulgated by the
Secretary pursuant to this Act shall be made available to the
public, free of charge, on a website maintained by the
Secretary.
``(l) Regulatory Standards for Blowout Preventers, Well
Design, and Cementing.--
``(1) In general.--In promulgating regulations under this
Act related to blowout preventers, well design, and
cementing, the Secretary shall ensure that such regulations
include the minimum standards included in paragraphs (2),
(3), and (4), unless, after notice and an opportunity for
public comment, the Secretary determines that a standard
required under this subsection would be less effective in
ensuring safe operations than an available alternative
technology or practice. Such regulations shall require
independent third-party certification, pursuant to paragraph
(5), of blowout preventers, well design, and cementing
programs and procedures prior to the commencement of drilling
operations. Such regulations shall also require re-
certification by an independent third-party certifier,
pursuant to paragraph (5), of a blowout preventer upon any
material modification to the blowout preventer or well design
and of a well design upon any material modification to the
well design.
``(2) Blowout preventers.--Subject to paragraph (1),
regulations issued under this Act for blowout preventers
shall include at a minimum the following requirements:
``(A) Two sets of blind shear rams appropriately spaced to
prevent blowout preventer failure if a drill pipe joint or
drill tool is across one set of blind shear rams during a
situation that threatens loss of well control.
``(B) Redundant emergency backup control systems capable of
activating the relevant components of a blowout preventer,
including when the communications link or other critical
links between the drilling rig and the blowout preventer are
destroyed or inoperable.
``(C) Regular testing of the emergency backup control
systems, including testing during deployment of the blowout
preventer.
``(D) As appropriate, remotely operated vehicle
intervention capabilities for secondary control of all subsea
blowout preventer functions, including adequate hydraulic
capacity to activate blind shear rams, casing shear rams, and
other critical blowout preventer components.
``(3) Well design.--Subject to paragraph (1), regulations
issued under this Act for well design standards shall include
at a minimum the following requirements:
``(A) In connection with the installation of the final
casing string, the installation of at least two independent,
tested mechanical barriers, in addition to a cement barrier,
across each flow path between hydrocarbon bearing formations
and the blowout preventer.
``(B) That wells shall be designed so that a failure of one
barrier does not significantly increase the likelihood of
another barrier's failure.
``(C) That the casing design is appropriate for the purpose
for which it is intended under reasonably expected wellbore
conditions.
``(D) The installation and verification with a pressure
test of a lockdown device at the time the casing is installed
in the wellhead.
``(4) Cementing.--Subject to paragraph (1), regulations
issued under this Act for cementing standards shall include
at a minimum the following requirements:
``(A) Adequate centralization of the casing to ensure
proper distribution of cement.
``(B) A full circulation of drilling fluids prior to
cementing.
``(C) The use of an adequate volume of cement to prevent
any unintended flow of hydrocarbons between any hydrocarbon-
bearing formation zone and the wellhead.
``(D) Cement bond logs for all cementing jobs intended to
provide a barrier to hydrocarbon flow.
``(E) Cement bond logs or such other integrity tests as the
Secretary may prescribe for cement jobs other than those
identified in subparagraph (D).
``(5) Independent third-party certifiers.--The Secretary
shall establish appropriate standards for the approval of
independent third-party certifiers capable of exercising
certification functions for blowout preventers, well design,
and cementing. For any certification required for regulations
related to blowout preventers, well design, or cementing, the
operator shall use a qualified independent third-party
certifier chosen by the Secretary. The costs of any
certification shall be borne by the operator.
[[Page H6517]]
``(6) Application to inshore waters; state
implementation.--
``(A) In general.--Requirements established under this
subsection shall apply, as provided in subparagraph (B), to
offshore drilling operations that take place on lands that
are landward of the outer Continental Shelf and seaward of
the line of mean high tide, and that the Secretary
determines, based on criteria established by rule, could, in
the event of a blowout, lead to extensive and widespread harm
to public health and safety or the environment.
``(B) Submission of state regulatory regime.--Any State may
submit to the Secretary a plan demonstrating that the State's
regulatory regime for wells identified in subparagraph (A)
establishes requirements for such wells that are comparable
to, or alternative requirements providing an equal or greater
level of safety than, those established under this section
for wells on the outer Continental Shelf. The Secretary shall
promptly determine, after notice and an opportunity for
public comment, whether a State's regulatory regime meets the
standard set forth in the preceding sentence. If the
Secretary determines that a State's regulatory regime does
not meet such standard, the Secretary shall identify the
deficiencies that are the basis for such determination and
provide a reasonable period of time for the State to remedy
the deficiencies. If the State does not do so within such
reasonable period of time, the Secretary shall apply the
requirements established under this section to offshore
drilling operations described in subparagraph (A) that are
located in such State, until such time as the Secretary
determines that the deficiencies have been remedied.
``(m) Rulemaking Dockets.--
``(1) Establishment.--Not later than the date of proposal
of any regulation under this Act, the Secretary shall
establish a publicly available rulemaking docket for such
regulation.
``(2) Documents to be included.--The Secretary shall
include in the docket--
``(A) all written comments and documentary information on
the proposed rule received from any person in the comment
period for the rulemaking, promptly upon receipt by the
Secretary;
``(B) the transcript of each public hearing, if any, on the
proposed rule, promptly upon receipt from the person who
transcribed such hearing; and
``(C) all documents that become available after the
proposed rule is published and that the Secretary determines
are of central relevance to the rulemaking, by as soon as
possible after their availability.
``(3) Proposed and draft final rule and associated
material.--The Secretary shall include in the docket--
``(A) each draft proposed rule submitted by the Secretary
to the Office of Management and Budget for any interagency
review process prior to proposal of such rule, all documents
accompanying such draft, all written comments thereon by
other agencies, and all written responses to such written
comments by the Secretary, by no later than the date of
proposal of the rule; and
``(B) each draft final rule submitted by the Secretary for
such review process before issuance of the final rule, all
such written comments thereon, all documents accompanying
such draft, and all written responses thereto, by no later
than the date of issuance of the final rule.''.
(b) Conforming Amendment.--Subsection (g) of section 25 of
the Outer Continental Shelf Lands Act (43 U.S.C. 1351), as
redesignated by section 215(4) of this Act, is further
amended by striking ``paragraph (8) of section 5(a) of this
Act'' each place it appears and inserting ``paragraph (13) of
section 5(a) of this Act''.
SEC. 206. LEASES, EASEMENTS, AND RIGHTS-OF-WAY.
(a) Financial Assurance and Fiscal Responsibility.--Section
8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337)
is amended by adding at the end the following:
``(q) Review of Bond and Surety Amounts.--Not later than
May 1, 2011, and every 5 years thereafter, the Secretary
shall review the minimum financial responsibility
requirements for leases issued under this section and shall
ensure that any bonds or surety required are adequate to
comply with the requirements of this Act or the Oil Pollution
Act of 1990 (33 U.S.C. 2701 et seq.).
``(r) Periodic Fiscal Review and Report.--
``(1) In general.--Not later than 1 year after the date of
enactment of this subsection and every 3 years thereafter,
the Secretary shall carry out a review and prepare a report
setting forth--
``(A)(i) the royalty and rental rates included in new
offshore oil and gas leases; and
``(ii) the rationale for the rates;
``(B) whether, in the view of the Secretary, the royalty
and rental rates described in subparagraph (A) will yield a
fair return to the public while promoting the production of
oil and gas resources in a timely manner;
``(C)(i) the minimum bond or surety amounts required
pursuant to offshore oil and gas leases; and
``(ii) the rationale for the minimum amounts;
``(D) whether the bond or surety amounts described in
subparagraph (C) are adequate to comply with subsection (q);
and
``(E) whether the Secretary intends to modify the royalty
or rental rates, or bond or surety amounts, based on the
review.
``(2) Public participation.--In carrying out a review and
preparing a report under paragraph (1), the Secretary shall
provide to the public an opportunity to participate.
``(3) Report deadline.--Not later than 30 days after the
date on which the Secretary completes a report under
paragraph (1), the Secretary shall transmit copies of the
report to--
``(A) the Committee on Energy and Natural Resources of the
Senate; and
``(B) the Committee on Natural Resources of the House of
Representatives.
``(s) Comparative Review of Fiscal System.--
``(1) In general.--Not later than 2 years after the date of
enactment of this subsection and every 5 years thereafter,
the Secretary shall carry out a comprehensive review of all
components of the Federal offshore oil and gas fiscal system,
including requirements for--
``(A) bonus bids;
``(B) rental rates; and
``(C) royalties.
``(2) Requirements.--
``(A) Contents; scope.--A review under paragraph (1) shall
include--
``(i) the information and analyses necessary to compare the
offshore bonus bids, rents, and royalties of the Federal
Government to the offshore bonus bids, rents, and royalties
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.
``(B) Independent advisory committee.--In carrying out a
review under paragraph (1), 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.
``(3) Report.--
``(A) In general.--The Secretary shall prepare a report
that contains--
``(i) the contents and results of the review carried out
under paragraph (1) for the period covered by the report; and
``(ii) any recommendations of the Secretary based on the
contents and results of the review.
``(B) Report deadline.--Not later than 30 days after the
date on which the Secretary completes a report under
paragraph (1), the Secretary shall transmit copies of the
report to the Committee on Natural Resources of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate.''.
(b) Environmental Diligence.--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) Requirement for Certification of Responsible
Stewardship.--
``(1) Certification requirement.--No bid or request for a
lease, easement, or right-of-way under this section, or for a
permit to drill under section 11(d), may be submitted by any
person unless the person certifies to the Secretary that the
person (including any related person and any predecessor of
such person or related person) meets each of the following
requirements:
``(A) The person is meeting due diligence, safety, and
environmental requirements on other leases, easements, and
rights-of-way.
``(B) In the case of a person that 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), the person has met all of its obligations under
that Act to provide compensation for covered removal costs
and damages.
``(C) In the 7-year period ending on the date of
certification, the person, in connection with activities in
the oil industry (including exploration, development,
production, transportation by pipeline, and refining)--
``(i) was not found to have committed willful or repeated
violations under the Occupational Safety and Health Act of
1970 (29 U.S.C. 651 et seq.) (including State plans approved
under section 18(c) of such Act (29 U.S.C. 667(c))) at a rate
that is higher than five times the rate determined by the
Secretary to be the oil industry average for such violations
for such period;
``(ii) was not convicted of a criminal violation for death
or serious bodily injury;
``(iii) did not have more than 10 fatalities at its
exploration, development, and production facilities and
refineries as a result of violations of Federal or State
health, safety, or environmental laws;
``(iv) was not assessed, did not enter into an agreement to
pay, and was not otherwise required to pay, civil penalties
and criminal fines for violations the person was found to
have committed under the Federal Water Pollution Control Act
(33 U.S.C. 1251 et seq.) (including State programs approved
under sections 402 and 404 of such Act (33 U.S.C. 1342 and
1344)) in a total amount that is equal to more than
$10,000,000; and
``(v) was not assessed, did not enter into an agreement to
pay, and was not otherwise required to pay, civil penalties
and criminal fines for violations the person was found to
have committed under the Clean Air Act (42 U.S.C. 7401 et
seq.) (including State plans approved under section 110 of
such Act (42 U.S.C. 7410)) in a total amount that is equal to
more than $10,000,000.
``(2) Enforcement.--If the Secretary determines that a
certification made under paragraph (1) is false, the
Secretary shall cancel any lease, easement, or right of way
and
[[Page H6518]]
shall revoke any permit with respect to which the
certification was required under such paragraph.
``(3) Definition of related person.--For purposes of this
subsection, the term `related person' includes a parent,
subsidiary, affiliate, member of the same controlled group,
contractor, subcontractor, a person holding a controlling
interest or in which a controlling interest is held, and a
person with substantially the same board members, senior
officers, or investors.''.
(c) Alternative Energy Development.--
(1) Clarification relating to alternative energy
development.--Section 8(p) of the Outer Continental Shelf
Lands Act (43 U.S.C. 1337(p)) is amended--
(A) in paragraph (1)--
(i) in the matter preceding subparagraph (A), by inserting
``or'' after ``1501 et seq.),'', and by striking ``or other
applicable law,''; and
(ii) by amending subparagraph (D) to read as follows:
``(D) use, for energy-related purposes, facilities
currently or previously used for activities authorized under
this Act, except that any oil and gas energy-related uses
shall not be authorized in areas in which oil and gas
preleasing, leasing, and related activities are prohibited by
a moratorium.''; and
(B) in paragraph (4)--
(i) in subparagraph (E), by striking ``coordination'' and
inserting ``in consultation''; and
(ii) in subparagraph (J)(ii), by inserting ``a potential
site for an alternative energy facility,'' after ``deepwater
port,''.
(2) Noncompetitive alternative energy lease options.--
Section 8(p)(3) of such Act (43 U.S.C. 1337(p)(3)) is amended
to read as follows:
``(3) Competitive or noncompetitive basis.--Any lease,
easement, right-of-way, or other authorization granted under
paragraph (1) shall be issued on a competitive basis,
unless--
``(A) the lease, easement, right-of-way, or other
authorization relates to a project that meets the criteria
established under section 388(d) of the Energy Policy Act of
2005 (43 U.S.C. 1337 note; Public Law 109-58);
``(B) the lease, easement, right-of-way, or other
authorization--
``(i) is for the placement and operation of a
meteorological or marine data collection facility; and
``(ii) has a term of not more than 5 years; or
``(C) the Secretary determines, after providing public
notice of a proposed lease, easement, right-of-way, or other
authorization, that no competitive interest exists.''.
(d) Review of Impacts of Lease Sales on the Marine and
Coastal Environment by Secretary.--Section 8 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1337) is amended by
adding at the end of subsection (a) the following:
``(9) At least 60 days prior to any lease sale, the
Secretary shall request a review by the Secretary of Commerce
of the proposed sale with respect to impacts on the marine
and coastal environment. The Secretary of Commerce shall
complete and submit in writing the results of that review
within 60 days after receipt of the Secretary of the
Interior's request. If the Secretary of Commerce makes
specific recommendations related to a proposed lease sale to
reduce impacts on the marine and coastal environment, and the
Secretary rejects or modifies such recommendations, the
Secretary shall provide in writing justification for
rejecting or modifying such recommendations.''.
(e) Limitation on Lease Tract Size.--Section 8(b)(1) of the
Outer Continental Shelf Lands Act (43 U.S.C. 1337(b)(1)) is
amended by striking ``, unless the Secretary finds that a
larger area is necessary to comprise a reasonable economic
production unit''.
(f) Sulphur Leases.--Section 8(i) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1337(i)) is amended by striking
``meet the urgent need'' and inserting ``allow''.
(g) Terms and Provisions.--Section 8(b) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1337(b)) is amended by
striking ``An oil and gas lease issued pursuant to this
section shall'' and inserting ``An oil and gas lease may be
issued pursuant to this section only if the Secretary
determines that activities under the lease are not likely to
result in any condition described in section 5(a)(2)(A)(i),
and shall''.
SEC. 207. DISPOSITION OF REVENUES.
Section 9 of the Outer Continental Shelf Lands Act (43
U.S.C. 1338) is amended to read as follows:
``SEC. 9. DISPOSITION OF REVENUES.
``(a) General.--Except as provided in subsections (b), (c),
and (d), all rentals, royalties, and other sums paid to the
Secretary or the Secretary of the Navy under any lease on the
outer Continental Shelf for the period from June 5, 1950, to
date, and thereafter shall be deposited in the Treasury of
the United States and credited to miscellaneous receipts.
``(b) Land and Water Conservation Fund.--Effective for
fiscal year 2011 and each fiscal year thereafter,
$900,000,000 of the amounts referred to in subsection (a)
shall be deposited in the Treasury of the United States and
credited to the Land and Water Conservation Fund. These sums
shall be available to the Secretary, without further
appropriation or fiscal year limitation, for carrying out the
purposes of the Land and Water Conservation Fund Act of 1965
(16 U.S.C. 460l-4 et seq.).
``(c) Historic Preservation Fund.--Effective for fiscal
year 2011 and each fiscal year thereafter, $150,000,000 of
the amounts referred to in subsection (a) shall be deposited
in the Treasury of the United States and credited to the
Historic Preservation Fund. These sums shall be available to
the Secretary, without further appropriation or fiscal year
limitation, for carrying out the purposes of the National
Historic Preservation Fund Act of 1966 (16 U.S.C. 470 et
seq.).
``(d) Ocean Resources Conservation and Assistance Fund.--
Effective for each fiscal year 2011 and thereafter, 10
percent of the amounts referred to in subsection (a) shall be
deposited in the Treasury of the United States and credited
to the Ocean Resources Conservation and Assistance Fund
established by the Consolidated Land, Energy, and Aquatic
Resources Act of 2010. These sums shall be available to the
Secretary, subject to appropriation, for carrying out the
purposes of section 605 of the Consolidated Land, Energy, and
Aquatic Resources Act of 2010.
``(e) Savings Provision.--Nothing in this section shall
decrease the amount any State shall receive pursuant to
section 8(g) of this Act or section 105 of the Gulf of Mexico
Energy Security Act (43 U.S.C. 1331 note).''.
SEC. 208. EXPLORATION PLANS.
(a) Limitation on Harm From Agency Exploration.--Section
11(a)(1) of the Outer Continental Shelf Lands Act (43 U.S.C.
1340(a)(1)) is amended by striking ``, which do not interfere
with or endanger actual operations under any lease maintained
or granted pursuant to this Act, and which are not unduly
harmful to aquatic life in such area'' and inserting ``if a
permit authorizing such activity is issued by the Secretary
under subsection (g)''.
(b) Exploration Plan Review.--Section 11(c) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1340(c)), is amended--
(1) by inserting ``(A)'' before the first sentence;
(2) in paragraph (1)(A), as designated by the amendment
made by paragraph (1) of this subsection--
(A) by striking ``and the provisions of such lease'' and
inserting ``the provisions of such lease, and other
applicable environmental and natural resource conservation
laws''; and
(B) by striking the fourth sentence and inserting the
following:
``(B) The Secretary shall approve such plan, as submitted
or modified, within 90 days after its submission and it is
made publicly accessible by the Secretary, or within such
additional time as the Secretary determines is necessary to
complete any environmental, safety, or other reviews, if the
Secretary determines that--
``(i) any proposed activity under such plan is not likely
to result in any condition described in section
5(a)(2)(A)(i);
``(ii) the plan complies with other applicable
environmental or natural resource conservation laws;
``(iii) in the case of geophysical surveys, the applicant
will use the best available technologies and methods to
minimize impacts on marine life; and
``(iv) the applicant has demonstrated the capability and
technology to respond immediately and effectively to a worst-
case oil spill in real-world conditions in the area of the
proposed activity.''; and
(3) by adding at the end the following:
``(5) If the Secretary requires greater than 90 days to
review an exploration plan submitted pursuant to any oil and
gas lease issued or maintained under this Act, then the
Secretary may provide for a suspension of that lease pursuant
to section 5 until the review of the exploration plan is
completed.''.
(c) Requirements.--Section 11(c) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1340(c), is amended by amending
paragraph (3) to read as follows:
``(3) An exploration plan submitted under this subsection
shall include, in the degree of detail that the Secretary may
by regulation require--
``(A) a schedule of anticipated exploration activities to
be undertaken;
``(B) a detailed and accurate description of equipment to
be used for such activities, including--
``(i) a description of each drilling unit;
``(ii) a statement of the design and condition of major
safety-related pieces of equipment, including independent
third party certification of such equipment; and
``(iii) a description of any new technology to be used;
``(C) a map showing the location of each well to be
drilled;
``(D) a scenario for the potential blowout of the well
involving the highest potential volume of liquid
hydrocarbons, along with a complete description of a response
plan to both control the blowout and manage the accompanying
discharge of hydrocarbons, including the likelihood for
surface intervention to stop the blowout, the availability of
a rig to drill a relief well, an estimate of the time it
would take to drill a relief well, a description of other
technology that may be used to regain control of the well or
capture escaping hydrocarbons and the potential timeline for
using that technology for its intended purpose, and the
strategy, organization, and resources necessary to avoid harm
to the environment and human health from hydrocarbons;
``(E) an analysis of the potential impacts of the worst-
case-scenario discharge of hydrocarbons on the marine,
coastal, and human
[[Page H6519]]
environments for activities conducted pursuant to the
proposed exploration plan; and
``(F) such other information deemed pertinent by the
Secretary.''.
(d) Drilling Permits.--Section 11(d) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1340(d)) is amended by
to read as follows:
``(d) Drilling Permits.--
``(1) In general.--The Secretary shall, by regulation,
require that any lessee operating under an approved
exploration plan obtain a permit prior to drilling any well
in accordance with such plan, and prior to any significant
modification of the well design as originally approved by the
Secretary.
``(2) Engineering review required.--The Secretary may not
grant any drilling permit or modification of the permit prior
to completion of a full engineering review of the well
system, including a determination that critical safety
systems, including blowout prevention, will utilize best
available technology and that blowout prevention systems will
include redundancy and remote triggering capability.
``(3) Operator safety and environmental management
required.--The Secretary shall not grant any drilling permit
or modification of the permit prior to completion of a safety
and environmental management plan to be utilized by the
operator during all well operations.''.
(e) Exploration Permit Requirements.--Section 11(g) of the
Outer Continental Shelf Lands Act (43 U.S.C. 1340(g)) is
amended by--
(1) striking ``shall be issued'' and inserting ``may be
issued'';
(2) inserting ``and after consultation with the Secretary
of Commerce,'' after ``in accordance with regulations issued
by the Secretary'';
(3) striking the ``and'' at the end of paragraph (2);
(4) in paragraph (3) striking ``will not be unduly harmful
to'' and inserting ``is not likely to harm'';
(5) striking the period at the end of paragraph (3) and
inserting a semicolon; and
(6) adding at the end the following:
``(4) the exploration will be conducted in accordance with
other applicable environmental and natural resource
conservation laws;
``(5) in the case of geophysical surveys, the applicant
will use the best available technologies and methods to
minimize impacts on marine life; and
``(6) in the case of drilling operations, the applicant has
available oil spill response and clean-up equipment and
technology that has been demonstrated to be capable of
effectively remediating a worst-case release of oil.''.
(f) Environmental Review of Plans; Deepwater Plan; Plan
Disapproval.--Section 11 of the Outer Continental Shelf Lands
Act (43 U.S.C. 1340) is amended by adding at the end the
following:
``(i) Environmental Review of Plans.--The Secretary shall
treat the approval of an exploration plan, or a significant
revision of such a plan, as an agency action requiring
preparation of an environmental assessment or environmental
impact statement in accordance with the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.),
and shall require that such plan--
``(1) be based on the best available technology to ensure
safety in carrying out both the drilling of the well and any
oil spill response; and
``(2) contain a technical systems analysis of the safety of
the proposed activity, the blowout prevention technology, and
the blowout and spill response plans.
``(j) Disapproval of Plan.--
``(1) In general.--The Secretary shall disapprove the plan
if the Secretary determines, 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 plan would probably cause
serious harm or damage to life (including fish and other
aquatic life), to property, to any mineral deposits (in areas
leased or not leased), to the national security or defense,
or to the marine, coastal, or human environments;
``(B) the threat of harm or damage will not disappear or
decrease to an acceptable extent within a reasonable period
of time; and
``(C) the advantages of disapproving the plan outweigh the
advantages of exploration.
``(2) Cancellation of lease for disapproval of plan.--If a
plan is disapproved under this subsection, the Secretary may
cancel such lease in accordance with subsection (c)(1) of
this section.''.
SEC. 209. 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) in the second sentence by striking
``meet national energy needs'' and inserting ``balance
national energy needs and the protection of the marine and
coastal environment and all the resources in that
environment,'';
(2) in subsection (a)(1), by striking ``considers'' and
inserting ``gives equal consideration to'';
(3) in subsection (a)(2)(A)--
(A) by striking ``existing'' and inserting ``the best
available scientific''; and
(B) by inserting ``, including at least three consecutive
years of data'' after ``information'';
(4) in subsection (a)(2)(D), by inserting ``potential and
existing sites of renewable energy installations,'' after
``deepwater ports,'';
(5) in subsection (a)(2)(H), by inserting ``including the
availability of infrastructure to support oil spill
response'' before the period;
(6) in subsection (a)(3), by--
(A) striking ``to the maximum extent practicable,'';
(B) striking ``obtain a proper balance between'' and
inserting ``minimize''; and
(C) striking ``damage,'' and all that follows through the
period and inserting ``damage and adverse impacts on the
marine, coastal, and human environments, and enhancing the
potential for the discovery of oil and gas.'';
(7) in subsection (b)(1), by inserting ``environmental,
marine, and energy'' after ``obtain'';
(8) in subsection (b)(2), by inserting ``environmental,
marine, and'' after ``interpret the'';
(9) in subsection (b)(3), by striking ``and'' after the
semicolon at the end;
(10) by striking the period at the end of subsection (b)(4)
and inserting a semicolon;
(11) by adding at the end of subsection (b) the following:
``(5) provide technical review and oversight of exploration
plans and a systems review of the safety of well designs and
other operational decisions;
``(6) conduct regular and thorough safety reviews and
inspections; and
``(7) enforce all applicable laws and regulations.'';
(12) in the first sentence of subsection (c)(1), by
inserting ``the National Oceanic and Atmospheric
Administration and'' after ``including'';
(13) in subsection (c)(2)--
(A) by inserting after the first sentence the following:
``The Secretary shall also submit a copy of such proposed
program to the head of each Federal agency referred to in, or
that otherwise provided suggestions under, paragraph (1).'';
(B) in the third sentence, by inserting ``or head of a
Federal agency'' after ``such Governor''; and
(C) in the fourth sentence, by inserting ``or between the
Secretary and the head of a Federal agency,'' after
``affected State,'';
(14) by redesignating subsection (c)(3) as subsection
(c)(4) and by inserting before subsection (c)(4) (as so
redesignated) the following:
``(3) At least 60 days prior to the publication of a
proposed leasing program under this section, the Secretary
shall request a review by the Secretary of Commerce of the
proposed leasing program with respect to impacts on the
marine and coastal environments. If the Secretary rejects or
modifies any of the recommendations made by the Secretary of
Commerce concerning the location, timing, or conduct of
leasing activities under the proposed leasing program, the
Secretary shall provide in writing justification for
rejecting or modifying such recommendations.''.
(15) in the second sentence of subsection (d)(2), by
inserting ``, the head of a Federal agency,'' after
``Attorney General'';
(16) in subsection (g), by inserting after the first
sentence the following: ``Such information may include
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
(17) by adding at the end the following new subsection:
``(i) Research and Development.--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. Such
research and development activities 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.''.
SEC. 210. ENVIRONMENTAL STUDIES.
(a) Information Needed for Assessment and Management of
Environmental Impacts.--Section 20 of the Outer Continental
Shelf Lands Act (43 U.S.C. 1346) is amended by striking so
much as precedes ``of any area'' in subsection (a)(1) and
inserting the following:
``SEC. 20. ENVIRONMENTAL STUDIES.
``(a)(1) The Secretary, in cooperation with the Secretary
of Commerce, shall conduct a study no less than once every
three years''.
(b) Impacts of Deep Water Spills.--Section 20 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1346) is amended by--
(1) redesignating subsections (c) through (f) as (d)
through (g); and
(2) inserting after subsection (b) the following new
subsection:
``(c) The Secretary shall conduct research to identify and
reduce data gaps related to impacts of deepwater hydrocarbon
spills, including--
``(1) effects to benthic substrate communities and species;
``(2) water column habitats and species;
``(3) surface and coastal impacts from spills originating
in deep waters; and
[[Page H6520]]
``(4) the use of dispersants.''.
SEC. 211. SAFETY REGULATIONS.
Section 21 of the Outer Continental Shelf Lands Act (43
U.S.C. 1347) is amended--
(1) in subsection (a), by striking ``Upon the date of
enactment of this section,'' and inserting ``Within 6 months
after the date of enactment of the Outer Continental Shelf
Lands Act Amendments of 2010 and every three years
thereafter,'';
(2) in subsection (b) by--
(A) striking ``for the artificial islands, installations,
and other devices referred to in section 4(a)(1) of'' and
inserting ``under'';
(B) striking ``which the Secretary determines to be
economically feasible''; and
(C) adding at the end ``Not later than 6 months after the
date of enactment of the Outer Continental Shelf Lands Act
Amendments of 2010 and every 3 years thereafter, the
Secretary shall, in consultation with the Outer Continental
Shelf Safety and Environmental Advisory Board established
under title I of the Consolidated Land, Energy, and Aquatic
Resources Act of 2010, identify and publish an updated list
of (1) the best available technologies for key areas of well
design and operation, including blowout prevention and
blowout and oil spill response and (2) technology needs for
which the Secretary intends to identify best available
technologies in the future.''; and
(3) by adding at the end the following:
``(g) Safety Case.--Not later than 6 months after the date
of enactment of the Outer Continental Shelf Lands Act
Amendments of 2010, 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. Not later than 5 years after the date
final regulations promulgated under this subsection go into
effect, and not less than every 5 years thereafter, the
Secretary shall enter into an arrangement with the National
Academy of Engineering to conduct a study to assess the
effectiveness of these regulations and to recommend
improvements in their administration.
``(h) Offshore 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 exploration
for, and development and production of, energy and mineral
resources on the outer Continental Shelf, with the primary
purpose of informing its role relating to safety,
environmental protection, and spill response.
``(2) Specific focus areas.--The program under this
subsection shall include research and development 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 frontier areas;
``(C) reviews of best available technologies, including
those associated with pipelines, blowout preventer
mechanisms, casing, well design, and other associated
infrastructure related to offshore energy development;
``(D) oil spill response and mitigation;
``(E) risk associated with human factors;
``(F) technologies and methods to reduce the impact of
geophysical exploration activities on marine life; and
``(G) renewable energy operations.''.
SEC. 212. ENFORCEMENT OF SAFETY AND ENVIRONMENTAL
REGULATIONS.
(a) In General.--Section 22 of the Outer Continental Shelf
Lands Act (43 U.S.C. 1348) is amended--
(1) by amending subsection (c) to read as follows:
``(c) Inspections.--The Secretary and the Secretary of the
department in which the Coast Guard is operating shall
individually, or jointly if they so agree, promulgate
regulations to provide for--
``(1) scheduled onsite inspection, at least once a year, of
each facility on the outer Continental Shelf which is subject
to any environmental or safety regulation promulgated
pursuant to this Act, which inspection shall include all
safety equipment designed to prevent or ameliorate blowouts,
fires, spillages, or other major accidents;
``(2) scheduled onsite inspection, at least once a month,
of each facility on the outer Continental Shelf engaged in
drilling operations and which is subject to any environmental
or safety regulation promulgated pursuant to this Act, which
inspection shall include validation of the safety case
required for the facility under section 21(g) and
identifications of deviations from the safety case, and shall
include all safety equipment designed to prevent or
ameliorate blowouts, fires, spillages, or other major
accidents;
``(3) periodic onsite inspection without advance notice to
the operator of such facility to assure compliance with such
environmental or safety regulations; and
``(4) periodic audits of each required safety and
environmental management plan, and any associated safety
case, both with respect to their implementation at each
facility on the outer Continental Shelf for which such a plan
or safety case is required and with respect to onshore
management support for activities at such a facility.'';
(2) in subsection (d)(1)--
(A) by striking ``each major fire and each major oil
spillage'' and inserting ``each major fire, each major oil
spillage, each loss of well control, and any other accident
that presented a serious risk to human or environmental
safety''; and
(B) by inserting before the period at the end the
following: ``, as a condition of the lease or permit'';
(3) in subsection (d)(2), by inserting before the period at
the end the following: ``as a condition of the lease or
permit'';
(4) in subsection (e), by adding at the end the following:
``Any such allegation from any employee of the lessee or any
subcontractor of the lessee shall be investigated by the
Secretary.'';
(5) in subsection (b)(1), by striking ``recognized'' and
inserting ``uncontrolled''; and
(6) by adding at the end the following:
``(g) Information on Causes and Corrective Actions.--For
any 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. All data and reports related to any such incident
shall be maintained in a data base available to the public.
``(h) Operator's Annual Certification.--
``(1) The Secretary, in cooperation with the Secretary of
the department in which the Coast Guard is operating, shall
require all operators of all new and existing drilling and
production operations to annually certify that their
operations are being conducted in accordance with applicable
law and regulations.
``(2) Each certification shall include, but, not be limited
to, statements that verify the operator has--
``(A) examined all well control system equipment (both
surface and subsea) being used to ensure that it has been
properly maintained and is capable of shutting in the well
during emergency operations;
``(B) examined and conducted tests to ensure that the
emergency equipment has been function-tested and is capable
of addressing emergency situations;
``(C) reviewed all rig drilling, casing, cementing, well
abandonment (temporary and permanent), completion, and
workover practices to ensure that well control is not
compromised at any point while emergency equipment is
installed on the wellhead;
``(D) reviewed all emergency shutdown and dynamic
positioning procedures that interface with emergency well
control operations; and
``(E) taken the necessary steps to ensure that all
personnel involved in well operations are properly trained
and capable of performing their tasks under both normal
drilling and emergency well control operations.
``(i) CEO Statement.--The Secretary shall not approve any
application for a permit to drill a well under this Act
unless such application is accompanied by a statement in
which the chief executive officer of the applicant attests,
in writing, that--
``(1) the applicant is in compliance with all applicable
environmental and natural resource conservation laws;
``(2) the applicant has the capability and technology to
respond immediately and effectively to a worst-case oil spill
in real-world conditions in the area of the proposed activity
under the permit;
``(3) the applicant has an oil spill response plan that
ensures that the applicant has the capacity to promptly
control and stop a blowout in the event that well control
measures fail;
``(4) the blowout preventer to be used during the drilling
of the well has redundant systems to prevent or stop a
blowout for all foreseeable blowout scenarios and failure
modes;
``(5) the well design is safe; and
``(6) the applicant has the capability to expeditiously
begin and complete a relief well if necessary in the event of
a blowout.
``(j) Third Party Certification.--All operators that modify
or upgrade any emergency equipment placed on any operation to
prevent blow-outs or other well control events, shall have an
independent third party conduct a detailed physical
inspection and design review of such equipment within 30 days
of its installation. The independent third party shall
certify that the equipment will operate as originally
designed and any modifications or upgrades conducted after
delivery have not compromised the design, performance, or
functionality of the equipment. Failure to comply with this
subsection shall result in suspension of the lease.''.
(b) Application.--Section 22(i) of the Outer Continental
Shelf Lands Act, as added by the amendments made by
subsection (a), shall apply to approvals of applications for
a permit to drill that are submitted after the end of the 6-
month period beginning on the date of enactment of this Act.
SEC. 213. JUDICIAL REVIEW.
Section 23(c)(3) of the Outer Continental Shelf Lands Act
(43 U.S.C. 1349(c)(3)) is amended by striking ``sixty'' and
inserting ``90''.
SEC. 214. REMEDIES AND PENALTIES.
(a) Civil Penalty, Generally.--Section 24(b) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1350(b)) is amended to
read as follows:
``(b)(1) Except as provided in paragraph (2), any person
who fails to comply with any provision of this Act, or any
term of a lease, license, or permit issued pursuant to this
Act, or any regulation or order issued under this Act, shall
be liable for a civil administrative penalty of not more than
$75,000 for each day of the continuance of such failure. The
Secretary may assess, collect, and compromise any such
penalty. No penalty shall be assessed until the person
charged with a violation has been given an opportunity for a
[[Page H6521]]
hearing. The Secretary shall, by regulation at least every 3
years, adjust the penalty specified in this paragraph to
reflect any increases in the Consumer Price Index (all items,
United States city average) as prepared by the Department of
Labor.
``(2) If a failure described in paragraph (1) constitutes
or constituted a threat of harm or damage to life (including
fish and other aquatic life), property, any mineral deposit,
or the marine, coastal, or human environment, a civil penalty
of not more than $150,000 shall be assessed for each day of
the continuance of the failure.''.
(b) Knowing and Willful Violations.--Section 24(c) of the
Outer Continental Shelf Lands Act (43 U.S.C. 1350(c)) is
amended in paragraph (4) by striking ``$100,000'' and
inserting ``$10,000,000''.
(c) Officers and Agents of Corporations.--Section 24(d) of
the Outer Continental Shelf Lands Act (43 U.S.C. 1350(d)) is
amended by inserting ``, or with willful disregard,'' after
``knowingly and willfully''.
SEC. 215. UNIFORM PLANNING FOR OUTER CONTINENTAL SHELF.
Section 25 of the Outer Continental Shelf Lands Act (43
U.S.C. 1351) is amended--
(1) by striking ``other than the Gulf of Mexico,'' in each
place it appears;
(2) in subsection (c), by striking ``and'' after the
semicolon at the end of paragraph (5), redesignating
paragraph (6) as paragraph (11), and inserting after
paragraph (5) the following new paragraphs:
``(6) a detailed and accurate description of equipment to
be used for the drilling of wells pursuant to activities
included in the development and production plan, including--
``(A) a description of the drilling unit or units;
``(B) a statement of the design and condition of major
safety-related pieces of equipment, including independent
third-party certification of such equipment; and
``(C) a description of any new technology to be used;
``(7) a scenario for the potential blowout of each well to
be drilled as part of the plan involving the highest
potential volume of liquid hydrocarbons, along with a
complete description of a response plan to both control the
blowout and manage the accompanying discharge of
hydrocarbons, including the likelihood for surface
intervention to stop the blowout, the availability of a rig
to drill a relief well, an estimate of the time it would take
to drill a relief well, a description of other technology
that may be used to regain control of the well or capture
escaping hydrocarbons and the potential timeline for using
that technology for its intended purpose, and the strategy,
organization, and resources necessary to avoid harm to the
environment and human health from hydrocarbons;
``(8) an analysis of the potential impacts of the worst-
case-scenario discharge on the marine and coastal
environments for activities conducted pursuant to the
proposed development and production plan;
``(9) a comprehensive survey and characterization of the
coastal or marine environment within the area of operation,
including bathymetry, currents and circulation patterns
within the water column, and descriptions of benthic and
pelagic environments;
``(10) a description of the technologies to be deployed on
the facilities to routinely observe and monitor in real time
the marine environment throughout the duration of operations,
and a description of the process by which such observation
data and information will be made available to Federal
regulators and to the System established under section 12304
of Public Law 111-11 (33 U.S.C. 3603); and'';
(3) in subsection (e), by striking so much as precedes
paragraph (2) and inserting the following:
``(e)(1) The Secretary shall treat the approval of a
development and production plan, or a significant revision of
a development and production plan, as an agency action
requiring preparation of an environmental assessment or
environmental impact statement, in accordance with the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.).'';
(4) by striking subsections (g) and (l), and redesignating
subsections (h) through (k) as subsections (g) through and
(j); and
(5) in subsection (g), as so redesignated, by redesignating
paragraphs (2) and (3) as paragraphs (3) and (4),
respectively, and inserting after paragraph (1) the
following:
``(2) The Secretary shall not approve a development and
production plan, or a significant revision to such a plan,
unless-
``(A) the plan is in compliance with all other applicable
environmental and natural resource conservation laws; and
``(B) the applicant has available oil spill response and
clean-up equipment and technology that has been demonstrated
to be capable of effectively remediating the projected worst-
case release of oil from activities conducted pursuant to the
development and production plan.''.
SEC. 216. OIL AND GAS INFORMATION PROGRAM.
Section 26(a)(1) of the Outer Continental Shelf Lands Act
(43 U.S.C. 1352(a)(1)) is amended by--
(1) striking the period at the end of subparagraph (A) and
inserting, ``, provided that such data shall be transmitted
in electronic format either in real-time or as quickly as
practicable following the generation of such data.''; and
(2) striking subparagraph (C) and inserting the following:
``(C) Lessees engaged in drilling operations shall provide
to the Secretary--
``(i) all daily reports generated by the lessee, or any
daily reports generated by contractors or subcontractors
engaged in or supporting drilling operations on the lessee's
lease, no more than 24 hours after the end of the day for
which they should have been generated;
``(ii) documentation of blowout preventer maintenance and
repair, and any changes to design specifications of the
blowout preventer, within 24 hours after such activity; and
``(iii) prompt or real-time transmission of the electronic
log from a blowout preventer control system.''.
SEC. 217. LIMITATION ON ROYALTY-IN-KIND PROGRAM.
Section 27(a) of the Outer Continental Shelf Lands Act (43
U.S.C. 1353(a)) is amended by striking the period at the end
of paragraph (1) and inserting ``, except that the Secretary
shall not conduct a regular program to take oil and gas lease
royalties in oil or gas.''.
SEC. 218. RESTRICTIONS ON EMPLOYMENT.
Section 29 of the Outer Continental Shelf Lands Act (43
U.S.C. 1355) is amended--
(1) in the matter preceding paragraph (1)--
(A) by striking ``sec. 29'' and all that follows through
``No full-time'' and inserting the following:
``SEC. 29. RESTRICTIONS ON EMPLOYMENT.
``(a) In General.--No full-time''; and
(B) by striking ``, and who was at any time during the
twelve months preceding the termination of his employment
with the Department compensated under the Executive Schedule
or compensated at or above the annual rate of basic pay for
grade GS-16 of the General Schedule'';
(2) in paragraph (1)--
(A) in subparagraph (A), by inserting ``or advise'' after
``represent'';
(B) in subparagraph (B), by striking ``with the intent to
influence, make'' and inserting ``act with the intent to
influence, directly or indirectly, or make''; and
(C) in the matter following subparagraph (C)--
(i) by inserting ``inspection or enforcement action,''
before ``or other particular matter''; and
(ii) by striking ``or'' at the end;
(3) in paragraph (2)--
(A) in subparagraph (A), by inserting ``or advise'' after
``represent'';
(B) in subparagraph (B), by striking ``with the intent to
influence, make'' and inserting ``act with the intent to
influence, directly or indirectly, or make''; and
(C) by striking the period at the end and inserting ``;
or''; and
(4) by adding at the end the following:
``(3) during the 2-year period beginning on the date on
which the employment of the officer or employee ceased at the
Department, accept employment or compensation from any party
that has a direct and substantial interest--
``(A) that was pending under the official responsibility of
the officer or employee as an officer at any point during the
2-year period preceding the date of termination of the
responsibility; or
``(B) in which the officer or employee participated
personally and substantially as an officer or employee of the
Department.
``(b) Prior Dealings.--No full-time officer or employee of
the Department of the Interior who directly or indirectly
discharged 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.
``(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 5, Code of
Federal Regulations (or successor regulations).
``(d) Penalty.--Any person that violates subsection (a) or
(b) shall be punished in accordance with section 216 of title
18, United States Code.''.
SEC. 219. REPEAL OF ROYALTY RELIEF PROVISIONS.
(a) Repeal of Provisions of Energy Policy Act of 2005.--The
following provisions of the Energy Policy Act of 2005 (Public
Law 109-58) are repealed:
(1) Section 344 (42 U.S.C. 15904; relating to incentives
for natural gas production from deep wells in shallow waters
of the Gulf of Mexico).
[[Page H6522]]
(2) Section 345 (42 U.S.C. 15905; relating to royalty
relief for deep water production in the Gulf of Mexico).
(b) Repeal of Provisions Relating to Planning Areas
Offshore Alaska.--Section 8(a)(3)(B) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1337(a)(3)(B)) is amended by
striking ``and in the Planning Areas offshore Alaska''.
SEC. 220. MANNING AND BUY- AND BUILD-AMERICAN REQUIREMENTS.
Section 30 of the Outer Continental Shelf Lands Act (43
U.S.C. 1356) is amended--
(1) in subsection (a), by striking ``shall issue
regulations which'' and inserting ``shall issue regulations
that shall be supplemental to and complementary with and
under no circumstances a substitution for the provisions of
the Constitution and laws of the United States extended to
the subsoil and seabed of the outer Continental Shelf
pursuant to section 4(a)(1) of this Act, except insofar as
such laws would otherwise apply to individuals who have
extraordinary ability in the sciences, arts, education, or
business, which has been demonstrated by sustained national
or international acclaim, and that''; and
(2) by adding at the end the following:
``(d) Buy and Build American.--It is the intention of the
Congress that this Act, among other things, result in a
healthy and growing American industrial, manufacturing,
transportation, and service sector employing the vast talents
of America's workforce to assist in the development of energy
from the outer Continental Shelf. Moreover, the Congress
intends to monitor the deployment of personnel and material
on the outer Continental Shelf to encourage the development
of American technology and manufacturing to enable United
States workers to benefit from this Act by good jobs and
careers, as well as the establishment of important industrial
facilities to support expanded access to American
resources.''.
SEC. 221. NATIONAL COMMISSION ON THE BP DEEPWATER HORIZON OIL
SPILL AND OFFSHORE DRILLING.
(a) Technical Expertise.--
(1) National academy of engineering and national research
council.--The National Commission on the BP Deepwater Horizon
Oil Spill and Offshore Drilling established under Executive
Order No. 13543 of May 21, 2010 (referred to in this section
as the ``Commission'') shall consult regularly, and in any
event no less frequently than once per month, with the
engineering and technology experts who are conducting the
``Analysis of Causes of the Deepwater Horizon Explosion,
Fire, and Oil Spill to Identify Measures to Prevent Similar
Accidents in the Future'' for the National Academy of
Engineering and the National Research Council.
(2) Other technical experts.--The Commission also shall
consult with other United States citizens with experience and
expertise in such areas as--
(A) engineering;
(B) environmental compliance;
(C) health and safety law (particularly oil spill
legislation);
(D) oil spill insurance policies;
(E) public administration;
(F) oil and gas exploration and production;
(G) environmental cleanup;
(H) fisheries and wildlife management;
(I) marine safety; and
(J) human factors affecting safety.
(3) Commission staff and technical expertise.--The
Commission shall retain, as either a full-time employee or a
contractor, one or more science and technology expert-
advisors with experience and expertise in petroleum
engineering, rig safety, or drilling.
(b) Subpoenas.--
(1) Subpoena power.--The Commission may issue subpoenas in
accordance with this subsection to compel the attendance and
testimony of witnesses and the production of books, records,
correspondence, memoranda, and other documents.
(2) Issuance.--
(A) Authorization.--A subpoena may be issued under this
subsection only by_
(i) agreement of the Co-Chairs of the Commission; or
(ii) the affirmative vote of a majority of the members of
the Commission.
(B) Justice department coordination.--
(i) Notification.--The Commission shall notify the Attorney
General or the Attorney General's designee of the
Commission's intent to issue a subpoena under this
subsection, the identity of the recipient, and the nature of
the testimony, documents, or other evidence (described in
subparagraph (A)) sought before issuing such a subpoena. The
form and content of such notice shall be set forth in the
guidelines issued under clause (iv).
(ii) Conditions for objection to issuance.--The Commission
may not issue a subpoena under authority of this Act if the
Attorney General objects to the issuance of the subpoena on
the basis that the subpoena is likely to interfere with any--
(I) Federal or State criminal investigation or prosecution;
(II) pending investigation under sections 3729 through 3732
of title 31, United States Code (commonly known as the
``Civil False Claims Act'');
(III) pending investigation under any other Federal statute
providing for civil remedies; or
(IV) civil litigation to which the United States or any of
its agencies is or is likely to be a party.
(iii) Notification of objection.--The Attorney General or
relevant United States Attorney shall notify the Commission
of an objection raised under this subparagraph without
unnecessary delay and as set forth in the guidelines issued
under clause (iv).
(iv) Guidelines.--As soon as practicable, but no later than
30 days after the date of the enactment of this Act, the
Attorney General, after consultation with the Commission,
shall issue guidelines to carry out this paragraph.
(C) Signature and service.--A subpoena issued under this
subsection may be--
(i) issued under the signature of either Co-Chair of the
Commission or any member designated by a majority of the
Commission; and
(ii) served by any person designated by the Co-Chairs or a
member designated by a majority of the Commission.
(3) Enforcement.--
(A) Required procedures.--In the case of contumacy of any
person issued a subpoena under this subsection or refusal by
such person to comply with the subpoena, the Commission may
request the Attorney General to seek enforcement of the
subpoena. Upon such request, the Attorney General may seek
enforcement of the subpoena in a court described in
subparagraph (B). The court in which the Attorney General
seeks enforcement of the subpoena may issue an order
requiring the subpoenaed person to appear at any
designated place to testify or to produce documentary or
other evidence described in subparagraph (A) of paragraph
(2), and may punish any failure to obey the order as a
contempt of that court.
(B) Jurisdiction for enforcement.--Any United States
district court for a judicial district in which a person
issued a subpoena under this subsection resides, is served,
or may be found, or where the subpoena is returnable, upon
application of the Attorney General, shall have jurisdiction
to enforce the subpoena as provided in subparagraph (A).
(c) Recommendations and Purposes.--
(1) In general.--The Commission shall develop
recommendations for--
(A) improvements to Federal laws, regulations, and industry
practices applicable to offshore drilling that would--
(i) ensure the effective oversight, inspection, monitoring,
and response capabilities; and
(ii) protect the environment and natural resources; and
(B) organizational or other reforms of Federal agencies or
processes, including the creation of new agencies, as
necessary, to ensure that the improvements described in
paragraph (1) are implemented and maintained.
(2) Goals.--In developing recommendations under paragraph
(1), the Commission shall ensure that the following goals are
met:
(A) Ensuring the safe operation and maintenance of offshore
drilling platforms or vessels.
(B) Protecting the overall environment and natural
resources surrounding ongoing and potential offshore drilling
sites.
(C) Developing and maintaining Federal agency expertise on
the safe and effective use of offshore drilling technologies,
including technologies to minimize the risk of release of oil
from offshore drilling platforms or vessels.
(D) Encouraging the development and implementation of
efficient and effective oil spill response techniques and
technologies that minimize or eliminate any adverse effects
on natural resources or the environment that result from
response activities.
(E) Ensuring that the Federal agencies regulating offshore
drilling are staffed with, and managed by, career
professionals, who are--
(i) permitted to exercise independent professional
judgments and make safety the highest priority in carrying
out their responsibilities;
(ii) not subject to undue influence from regulated
interests or political appointees; and
(iii) subject to strict regulation to prevent improper
relationships with regulated interests and to eliminate real
or perceived conflicts of interests.
(3) Report to congress.--In coordination with its final
public report to the President, the Commission shall submit
to Congress a report containing the recommendations developed
under paragraph (1).
SEC. 222. COORDINATION AND CONSULTATION WITH AFFECTED STATE
AND LOCAL GOVERNMENTS.
Section 19 of the Outer Continental Shelf Lands Act (43
U.S.C. 1345) is amended--
(1) by inserting ``exploration plan or'' before
``development and production plan'' in each place it appears;
and
(2) by amending subsection (c) to read as follows:
``(c) Acceptance or Rejection of Recommendations.--The
Secretary shall accept recommendations of the Governor and
may accept recommendations of the executive of any affected
local government if the Secretary determines, after having
provided the opportunity for consultation, that they provide
for a reasonable balance between the national interest and
the well-being of the citizens of the affected State. For
purposes of this subsection, a determination of the national
interest shall be based on the desirability of obtaining oil
and gas supplies in a balanced manner and on protecting
coastal and marine ecosystems and the economies dependent on
those ecosystems. The Secretary shall provide an explanation
to the Governor, in writing, of the reasons for his
[[Page H6523]]
determination to accept or reject such Governor's
recommendations, or to implement any alternative identified
in consultation with the Governor.''.
SEC. 223. IMPLEMENTATION.
(a) New Leases.--The provisions of this title and title VII
shall apply to any lease that is issued under the Outer
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) after
the effective date of this Act.
(b) Existing Leases.--For all leases that were issued under
the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et
seq.) that are in effect on the effective date of this Act,
the Secretary shall take action, consistent with the terms of
those leases, to apply the requirements of this title and
title VII to those leases. Such action may include, but is
not limited to, promulgating regulations, renegotiating such
existing leases, conditioning future leases on bringing such
existing leases into full or partial compliance with this
title and title VII, or taking any other actions authorized
by law.
Subtitle B--Royalty Relief for American Consumers
SEC. 241. SHORT TITLE.
This subtitle may be cited as the ``Royalty Relief for
American Consumers Act of 2010''.
SEC. 242. ELIGIBILITY FOR NEW LEASES AND THE TRANSFER OF
LEASES.
(a) Issuance of New Leases.--
(1) In general.--The Secretary shall not issue any new
lease that authorizes the production of oil or natural gas
under the Outer Continental Shelf Lands Act (43 U.S.C. 1331
et seq.) to a person described in paragraph (2) unless the
person has renegotiated each covered lease with respect to
which the person is a lessee, to modify the payment
responsibilities of the person to require the payment of
royalties if the price of oil and natural gas is greater than
or equal to the price thresholds described in clauses (v)
through (vii) of section 8(a)(3)(C) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)).
(2) Persons described.--A person referred to in paragraph
(1) is a person that--
(A) is a lessee that--
(i) holds a covered lease on the date on which the
Secretary considers the issuance of the new lease; or
(ii) was issued a covered lease before the date of
enactment of this Act, but transferred the covered lease to
another person or entity (including a subsidiary or affiliate
of the lessee) after the date of enactment of this Act; or
(B) any other person that has any direct or indirect
interest in, or that derives any benefit from, a covered
lease.
(3) Multiple lessees.--
(A) In general.--For purposes of paragraph (1), if there
are multiple lessees that own a share of a covered lease, the
Secretary may implement separate agreements with any lessee
with a share of the covered lease that modifies the payment
responsibilities with respect to the share of the lessee to
include price thresholds that are equal to or less than the
price thresholds described in clauses (v) through (vii) of
section 8(a)(3)(C) of the Outer Continental Shelf Lands Act
(43 U.S.C. 1337(a)(3)(C)).
(B) Treatment of share as covered lease.--Beginning on the
effective date of an agreement under subparagraph (A), any
share subject to the agreement shall not constitute a covered
lease with respect to any lessees that entered into the
agreement.
(b) Transfers.--A lessee or any other person who has any
direct or indirect interest in, or who derives a benefit
from, a lease shall not be eligible to obtain by sale or
other transfer (including through a swap, spinoff, servicing,
or other agreement) any covered lease, the economic benefit
of any covered lease, or any other lease for the production
of oil or natural gas in the Gulf of Mexico under the Outer
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), unless
the lessee or other person has--
(1) renegotiated each covered lease with respect to which
the lessee or person is a lessee, to modify the payment
responsibilities of the lessee or person to include price
thresholds that are equal to or less than the price
thresholds described in clauses (v) through (vii) of section
8(a)(3)(C) of the Outer Continental Shelf Lands Act (43
U.S.C. 1337(a)(3)(C)); or
(2) entered into an agreement with the Secretary to modify
the terms of all covered leases of the lessee or other person
to include limitations on royalty relief based on market
prices that are equal to or less than the price thresholds
described in clauses (v) through (vii) of section 8(a)(3)(C)
of the Outer Continental Shelf Lands Act (43 U.S.C.
1337(a)(3)(C)).
(c) Use of Amounts for Deficit Reduction.--Notwithstanding
any other provision of law, any amounts received by the
United States as rentals or royalties under covered leases
shall be deposited in the Treasury and used for Federal
budget deficit reduction or, if there is no Federal budget
deficit, for reducing the Federal debt in such manner as the
Secretary of the Treasury considers appropriate.
(d) Definitions.--In this section--
(1) Covered lease.--The term ``covered lease'' means a
lease for oil or gas production in the Gulf of Mexico that
is--
(A) in existence on the date of enactment of this Act;
(B) issued by the Department of the Interior under section
304 of the Outer Continental Shelf Deep Water Royalty Relief
Act (43 U.S.C. 1337 note; Public Law 104-58); and
(C) not subject to limitations on royalty relief based on
market price that are equal to or less than the price
thresholds described in clauses (v) through (vii) of section
8(a)(3)(C) of the Outer Continental Shelf Lands Act (43
U.S.C. 1337(a)(3)(C)).
(2) Lessee.--The term ``lessee'' includes any person or
other entity that controls, is controlled by, or is in or
under common control with, a lessee.
(3) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
SEC. 243. PRICE THRESHOLDS FOR ROYALTY SUSPENSION PROVISIONS.
The Secretary of the Interior shall agree to a request by
any lessee to amend any lease issued for any Central and
Western Gulf of Mexico tract in the period of January 1,
1996, through November 28, 2000, to incorporate price
thresholds applicable to royalty suspension provisions, that
are equal to or less than the price thresholds described in
clauses (v) through (vii) of section 8(a)(3)(C) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)). Any
amended lease shall impose the new or revised price
thresholds effective October 1, 2010. Existing lease
provisions shall prevail through September 30, 2010.
TITLE III--OIL AND GAS ROYALTY REFORM
SEC. 301. AMENDMENTS TO DEFINITIONS.
Section 3 of the Federal Oil and Gas Royalty Management Act
of 1982 (30 U.S.C. 1702) is amended--
(1) in paragraph (8), by striking the semicolon and
inserting ``including but not limited to the Act of October
20, 1914 (38 Stat. 741); the Act of February 25, 1920 (41
Stat. 437); the Act of April 17, 1926 (44 Stat. 301); the Act
of February 7, 1927 (44 Stat. 1057); and all Acts heretofore
or hereafter enacted that are amendatory of or supplementary
to any of the foregoing Acts;'';
(2) in paragraph (20)(A), by striking ``: Provided, That''
and all that follows through ``subject of the judicial
proceeding'';
(3) in paragraph (20)(B), by striking ``(with written
notice to the lessee who designated the designee)'';
(4) in paragraph (23)(A), by striking ``(with written
notice to the lessee who designated the designee)'';
(5) by striking paragraph (24) and inserting the following:
``(24) `designee' means a person who pays, offsets, or
credits monies, makes adjustments, requests and receives
refunds, or submits reports with respect to payments a lessee
must make pursuant to section 102(a);'';
(6) in paragraph (25)(B)--
(A) by striking ``(subject to the provisions of section
102(a) of this Act)''; and
(B) in clause (ii) by striking the matter after subclause
(IV) and inserting the following:
``that arises from or relates to any lease, easement, right-
of-way, permit, or other agreement regardless of form
administered by the Secretary for, or any mineral leasing law
related to, the exploration, production, and development of
oil and gas or other energy resource on Federal lands or the
Outer Continental Shelf;''.
(7) in paragraph (29), by inserting ``or permit'' after
``lease''; and
(8) by striking ``and'' after the semicolon at the end of
paragraph (32), by striking the period at the end of
paragraph (33) and inserting a semicolon, and by adding at
the end the following new paragraphs:
``(34) `compliance review' means a full-scope or a limited-
scope examination of a lessee's lease accounts to compare one
or all elements of the royalty equation (volume, value,
royalty rate, and allowances) against anticipated elements of
the royalty equation to test for variances; and
``(35) `marketing affiliate' means an affiliate of a lessee
whose function is to acquire the lessee's production and to
market that production.''.
SEC. 302. COMPLIANCE REVIEWS.
Section 101 of the Federal Oil and Gas Royalty Management
Act of 1982 (30 U.S.C. 1711) is amended by adding at the end
the following new subsection:
``(d) The Secretary may, as an adjunct to audits of
accounts for leases, utilize compliance reviews of accounts.
Such reviews shall not constitute nor substitute for audits
of lease accounts. Any disparity uncovered in such a
compliance review shall be immediately referred to a program
auditor. The Secretary shall, before completion of a
compliance review, provide notice of the review to designees
whose obligations are the subject of the review.''.
SEC. 303. CLARIFICATION OF LIABILITY FOR ROYALTY PAYMENTS.
Section 102(a) of the Federal Oil and Gas Royalty
Management Act of 1982 (30 U.S.C. 1712(a)) is amended to read
as follows:
``(a) In order to increase receipts and achieve effective
collections of royalty and other payments, a lessee who is
required to make any royalty or other payment under a lease,
easement, right-of-way, permit, or other agreement,
regardless of form, or under the mineral leasing laws, shall
make such payment in the time and manner as may be specified
by the Secretary or the applicable delegated State. Any
person who pays, offsets, or credits monies, makes
adjustments, requests and receives refunds, or submits
reports with respect to payments the lessee must make is the
lessee's designee under this Act. Notwithstanding any other
provision of this Act to the contrary, a designee shall be
liable for any payment obligation of any lessee on whose
behalf the designee pays royalty under the lease. The person
owning operating rights in a lease and a
[[Page H6524]]
person owning legal record title in a lease shall be liable
for that person's pro rata share of payment obligations under
the lease.''.
SEC. 304. REQUIRED RECORDKEEPING.
Section 103(b) of the Federal Oil and Gas Royalty
Management Act of 1982 (30 U.S.C. 1712(a)) is amended by
striking ``6'' and inserting ``7''.
SEC. 305. FINES AND PENALTIES.
Section 109 of the Federal Oil and Gas Royalty Management
Act of 1982 (30 U.S.C. 1719) is amended--
(1) in subsection (a) in the matter following paragraph
(2), by striking ``$500'' and inserting ``$1,000'';
(2) in subsection (a)(2)(B), by inserting ``(i)'' after
``such person'', and by striking the period at the end and
inserting ``; and (ii) has not received notice, pursuant to
paragraph (1), of more than two prior violations in the
current calendar year.'';
(3) in subsection (b), by striking ``$5,000'' and inserting
``$10,000'';
(4) in subsection (c)--
(A) in paragraph (2), by striking ``; or'' and inserting
``, including any failure or refusal to promptly tender
requested documents;'';
(B) in the text following paragraph (3)--
(i) by striking ``$10,000'' and inserting ``$20,000''; and
(ii) by striking the comma at the end and inserting a
semicolon; and
(C) by adding at the end the following new paragraphs:
``(4) knowingly or willfully fails to make any royalty
payment in the amount or value as specified by statute,
regulation, order, or terms of the lease; or
``(5) fails to correctly report and timely provide
operations or financial records necessary for the Secretary
or any authorized designee of the Secretary to accomplish
lease management responsibilities,'';
(5) in subsection (d), by striking ``$25,000'' and
inserting ``$50,000'';
(6) in subsection (h), by striking ``by registered mail''
and inserting ``a common carrier that provides proof of
delivery''; and
(7) by adding at the end the following subsection:
``(m)(1) Any determination by the Secretary or a designee
of the Secretary that a person has committed a violation
under subsection (a), (c), or (d)(1) shall toll any
applicable statute of limitations for all oil and gas leases
held or operated by such person, until the later of--
``(A) the date on which the person corrects the violation
and certifies that all violations of a like nature have been
corrected for all of the oil and gas leases held or operated
by such person; or
``(B) the date a final, nonappealable order has been issued
by the Secretary or a court of competent jurisdiction.
``(2) A person determined by the Secretary or a designee of
the Secretary to have violated subsection (a), (c), or (d)(1)
shall maintain all records with respect to the person's oil
and gas leases until the later of--
``(A) the date the Secretary releases the person from the
obligation to maintain such records; and
``(B) the expiration of the period during which the records
must be maintained under section 103(b).''.
SEC. 306. INTEREST ON OVERPAYMENTS.
Section 111 of the Federal Oil and Gas Royalty Management
Act of 1982 (30 U.S.C. 1721) is amended--
(1) by amending subsections (h) and (i) to read as follows:
``(h) Interest shall not be allowed nor paid nor credited
on any overpayment, and no interest shall accrue from the
date such overpayment was made.
``(i) A lessee or its designee may make a payment for the
approximate amount of royalties (hereinafter in this
subsection referred to as the `estimated payment') that would
otherwise be due for such lease by the date royalties are due
for that lease. When an estimated payment is made, actual
royalties are payable at the end of the month following the
month in which the estimated payment is made. If the
estimated payment was less than the amount of actual
royalties due, interest is owed on the underpaid amount. If
the lessee or its designee makes a payment for such actual
royalties, the lessee or its designee may apply the estimated
payment to future royalties. Any estimated payment may be
adjusted, recouped, or reinstated by the lessee or its
designee provided such adjustment, recoupment, or
reinstatement is made within the limitation period for which
the date royalties were due for that lease.'';
(2) by striking subsection (j); and
(3) in subsection (k)(4)--
(A) by striking ``or overpaid royalties and associated
interest''; and
(B) by striking ``, refunded, or credited''.
SEC. 307. ADJUSTMENTS AND REFUNDS.
Section 111A of the Federal Oil and Gas Royalty Management
Act of 1982 (30 U.S.C. 1721a) is amended--
(1) in subsection (a)(3), by inserting ``(A)'' after
``(3)'', and by striking the last sentence and inserting the
following:
``(B) Except as provided in subparagraph (C), no adjustment
may be made with respect to an obligation that is the subject
of an audit or compliance review after completion of the
audit or compliance review, respectively, unless such
adjustment is approved by the Secretary or the applicable
delegated State, as appropriate.
``(C) If an overpayment is identified during an audit, the
Secretary shall allow a credit in the amount of the
overpayment.'';
(2) in subsection (a)(4)--
(A) by striking ``six'' and inserting ``four''; and
(B) by striking ``shall'' the second place it appears and
inserting ``may''; and
(3) in subsection (b)(1) by striking ``and'' after the
semicolon at the end of subparagraph (C), by striking the
period at the end of subparagraph (D) and inserting ``;
and'', and by adding at the end the following:
``(E) is made within the adjustment period for that
obligation.''.
SEC. 308. CONFORMING AMENDMENT.
Section 114 of the Federal Oil and Gas Royalty Management
Act of 1982 is repealed.
SEC. 309. OBLIGATION PERIOD.
Section 115(c) of the Federal Oil and Gas Royalty
Management Act of 1982 (30 U.S.C. 1724(c)) is amended by
adding at the end the following new paragraph:
``(3) Adjustments.--In the case of an adjustment under
section 111A(a) in which a recoupment by the lessee results
in an underpayment of an obligation, for purposes of this Act
the obligation becomes due on the date the lessee or its
designee makes the adjustment.''.
SEC. 310. NOTICE REGARDING TOLLING AGREEMENTS AND SUBPOENAS.
(a) Tolling Agreements.--Section 115(d)(1) of the Federal
Oil and Gas Royalty Management Act of 1982 (30 U.S.C.
1724(d)(1)) is amended by striking ``(with notice to the
lessee who designated the designee)''.
(b) Subpoenas.--Section 115(d)(2)(A) of the Federal Oil and
Gas Royalty Management Act of 1982 (30 U.S.C. 1724(d)(2)(A))
is amended by striking ``(with notice to the lessee who
designated the designee, which notice shall not constitute a
subpoena to the lessee)''.
SEC. 311. APPEALS AND FINAL AGENCY ACTION.
Paragraphs (1) and (2) of section 115(h) the Federal Oil
and Gas Royalty Management Act of 1982 (30 U.S.C. 1724(h))
are amended by striking ``33'' each place it appears and
inserting ``48''.
SEC. 312. ASSESSMENTS.
Section 116 of the Federal Oil and Gas Royalty Management
Act of 1982 (30 U.S.C. 1724) is repealed.
SEC. 313. COLLECTION AND PRODUCTION ACCOUNTABILITY.
(a) Pilot Project.--Within two years after the date of
enactment of this Act, the Secretary shall complete a pilot
project with willing operators of oil and gas leases on the
Outer Continental Shelf that assesses the costs and benefits
of automatic transmission of oil and gas volume and quality
data produced under Federal leases on the Outer Continental
Shelf in order to improve the production verification systems
used to ensure accurate royalty collection and audit.
(b) Report.--The Secretary shall submit to Congress a
report on findings and recommendations of the pilot project
within 3 years after the date of enactment of this Act.
SEC. 314. NATURAL GAS REPORTING.
The Secretary shall, within 180 days after the date of
enactment of this Act, implement the steps necessary to
ensure accurate determination and reporting of BTU values of
natural gas from all Federal oil and gas leases to ensure
accurate royalty payments to the United States. Such steps
shall include, but not be limited to--
(1) establishment of consistent guidelines for onshore and
offshore BTU information from gas producers;
(2) development of a procedure to determine the potential
BTU variability of produced natural gas on a by-reservoir or
by-lease basis;
(3) development of a procedure to adjust BTU frequency
requirements for sampling and reporting on a case-by-case
basis;
(4) systematic and regular verification of BTU information;
and
(5) revision of the ``MMS-2014'' reporting form to record,
in addition to other information already required, the
natural gas BTU values that form the basis for the required
royalty payments.
SEC. 315. PENALTY FOR LATE OR INCORRECT REPORTING OF DATA.
(a) In General.--The Secretary shall issue regulations by
not later than 1 year after the date of enactment of this Act
that establish a civil penalty for late or incorrect
reporting of data under the Federal Oil and Gas Royalty
Management Act of 1982 (30 U.S.C. 1701 et seq.).
(b) Amount.--The amount of the civil penalty shall be--
(1) an amount (subject to paragraph (2)) that the Secretary
determines is sufficient to ensure filing of data in
accordance with that Act; and
(2) not less than $10 for each failure to file correct data
in accordance with that Act.
(c) Content of Regulations.--Except as provided in
subsection (b), the regulations issued under this section
shall be substantially similar to part 216.40 of title 30,
Code of Federal Regulations, as most recently in effect
before the date of enactment of this Act.
SEC. 316. REQUIRED RECORDKEEPING.
Within 1 year after the date of enactment of this Act, the
Secretary shall publish final regulations concerning required
recordkeeping of natural gas measurement data as set forth in
part 250.1203 of title 30, Code of Federal Regulations (as in
effect on the date of enactment of this Act), to include
operators and other persons involved in the transporting,
purchasing, or selling of gas under
[[Page H6525]]
the requirements of that rule, under the authority provided
in section 103 of the Federal Oil and Gas Royalty Management
Act of 1982 (30 U.S.C. 1713).
SEC. 317. SHARED CIVIL PENALTIES.
Section 206 of the Federal Oil and Gas Royalty Management
Act of 1982 (30 U.S.C. 1736) is amended by striking ``Such
amount shall be deducted from any compensation due such State
or Indian Tribe under section 202 or section 205 or such
State under section 205.''.
SEC. 318. APPLICABILITY TO OTHER MINERALS.
Section 304 of the Federal Oil and Gas Royalty Management
Act of 1982 (30 U.S.C. 1753) is amended by adding at the end
the following new subsection:
``(e) Applicability to Other Minerals.--
``(1) Notwithstanding any other provision of law, sections
107, 109, and 110 of this Act and the regulations duly
promulgated with respect thereto shall apply to any lease
authorizing the development of coal or any other solid
mineral on any Federal lands or Indian lands, to the same
extent as if such lease were an oil and gas lease, on the
same terms and conditions as those authorized for oil and gas
leases.
``(2) Notwithstanding any other provision of law, sections
107, 109, and 110 of this Act and the regulations duly
promulgated with respect thereto shall apply with respect to
any lease, easement, right-of-way, or other agreement,
regardless of form (including any royalty, rent, or other
payment due thereunder)--
``(A) under section 8(k) or 8(p) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1337(k) and 1337(p)); or
``(B) under the Geothermal Steam Act (30 U.S.C. 1001 et
seq.), to the same extent as if such lease, easement, right-
of-way, or other agreement were an oil and gas lease on the
same terms and conditions as those authorized for oil and gas
leases.
``(3) For the purposes of this subsection, the term `solid
mineral' means any mineral other than oil, gas, and geo-
pressured-geothermal resources, that is authorized by an Act
of Congress to be produced from public lands (as that term is
defined in section 103 of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1702)).''.
SEC. 319. ENTITLEMENTS.
Not later than 180 days after the date of enactment of this
Act, the Secretary shall publish final regulations
prescribing when a Federal lessee or designee must report and
pay royalties on the volume of oil and gas it takes under
either a Federal or Indian lease or on the volume to which it
is entitled to based upon its ownership interest in the
Federal or Indian lease. The Secretary shall give
consideration to requiring 100 percent entitlement reporting
and paying based upon the lease ownership.
SEC. 320. LIMITATION ON ROYALTY IN-KIND PROGRAM.
Section 36 of the Mineral Leasing Act (30 U.S.C. 192) is
amended by inserting before the period at the end of the
first sentence the following: ``, except that the Secretary
shall not conduct a regular program to take oil and gas lease
royalties in oil or gas''.
TITLE IV--FULL FUNDING FOR THE LAND AND WATER CONSERVATION AND HISTORIC
PRESERVATION FUNDS
Subtitle A--Land and Water Conservation Fund
SEC. 401. AMENDMENTS TO THE LAND AND WATER CONSERVATION FUND
ACT OF 1965.
Except as otherwise expressly provided, whenever in this
subtitle an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or
other provision of the Land and Water Conservation Fund Act
of 1965 (16 U.S.C. 460l-4 et seq.).
SEC. 402. EXTENSION OF THE LAND AND WATER CONSERVATION FUND.
Section 2 (16 U.S.C. 460l-5) is amended by striking
``September 30, 2015'' both places it appears and inserting
``September 30, 2040''.
SEC. 403. PERMANENT FUNDING.
(a) In General.--The text of section 3 (16 U.S.C. 460l-6)
is amended to read as follows:
``(a) Permanent Funding.--Of the moneys covered into the
fund, $900,000,000 shall be available each fiscal year for
expenditure for the purposes of this Act without further
appropriation.
``(b) Allocation Authority.--The Committees on
Appropriations of the House of Representatives and the Senate
may provide by law for the allocation of moneys in the fund
to eligible activities under this Act.''.
(b) Conforming Amendments.--
(1) Section 2(c)(2) (16 U.S.C. 460l-5(c)(2)) is amended by
striking ``: Provided'' and all that follows through the end
of the sentence and inserting a period.
(2) Section 7(a) (16 U.S.C. 460l-9) is amended to read as
follows: ``Moneys from the fund for Federal purposes shall,
unless allocated pursuant to section 3(b) of this Act, be
allotted by the President to the following purposes and
subpurposes:''.
Subtitle B--National Historic Preservation Fund
SEC. 411. PERMANENT FUNDING.
The text of section 108 of the National Historic
Preservation Act (16 U.S.C. 470h) is amended to read as
follows:
``(a) Permanent Funding.--To carry out the provisions of
this Act, there is hereby established the Historic
Preservation Fund (hereinafter referred to as the `fund') in
the Treasury of the United States. There shall be covered
into the fund $150,000,000 for each of fiscal years 1982
through 2040 from revenues due and payable to the United
States under the Outer Continental Shelf Lands Act (67 Stat.
462, 469), as amended (43 U.S.C. 1338) and/or under the Act
of June 4, 1920 (41 Stat. 813), as amended (30 U.S.C.191),
notwithstanding any provision of law that such proceeds shall
be credited to miscellaneous receipts of the Treasury. Such
moneys shall be used only to carry out the purposes of this
Act and shall be available for expenditure without further
appropriation.
``(b) Allocation Authority.--The Committees on
Appropriations of the House of Representatives and the Senate
may provide by law for the allocation of moneys in the fund
to eligible activities under this Act.''.
TITLE V--GULF OF MEXICO RESTORATION
SEC. 501. GULF OF MEXICO RESTORATION PROGRAM.
(a) Program.--There is established a Gulf of Mexico
Restoration Program for the purposes of coordinating Federal,
State, and local restoration programs and projects to
maximize efforts in restoring biological integrity,
productivity and ecosystem functions in the Gulf of Mexico.
(b) Gulf of Mexico Restoration Task Force.--
(1) Establishment.--There is established a task force to be
known as the Gulf of Mexico Restoration Task Force (in this
section referred to as the ``Restoration Task Force'').
(2) Membership.--The Restoration Task Force shall consist
of the Governors of each of the Gulf Coast States and the
heads of appropriate Federal agencies selected by the
President. The chairperson of the Restoration Task Force (in
this subsection referred to as the ``Chair'') shall be
appointed by the President. The Chair shall be a person who,
as the result of experience and training, is exceptionally
well-qualified to manage the work of the Restoration Task
Force. The Chair shall serve in the Executive Office of the
President.
(3) Advisory committees.--The Restoration Task Force may
establish advisory committees and working groups as necessary
to carry out is its duties under this Act.
(c) Gulf of Mexico Restoration Plan.--
(1) In general.--Not later than nine months after the date
of enactment of this Act, the Restoration Task Force shall
issue a proposed comprehensive, multi-jurisdictional plan for
long-term restoration of the Gulf of Mexico that
incorporates, to the greatest extent possible, existing
restoration plans. Not later than 12 months after the date of
enactment and after notice and opportunity for public
comment, the Restoration Task Force shall publish a final
plan. The Plan shall be updated every five years in the same
manner.
(2) Elements of restoration plan.--The Plan shall--
(A) identify processes and strategies for coordinating
Federal, State, and local restoration programs and projects
to maximize efforts in restoring biological integrity,
productivity and ecosystem functions in the Gulf of Mexico
region;
(B) identify mechanisms for scientific review and input to
evaluate the benefits and long-term effectiveness of
restoration programs and projects;
(C) identify, using the best science available, strategies
for implementing restoration programs and projects for
natural resources including--
(i) restoring species population and habitat including
oyster reefs, sea grass beds, coral reefs, tidal marshes and
other coastal wetlands and barrier islands and beaches;
(ii) restoring fish passage and improving migratory
pathways for wildlife;
(iii) research that directly supports restoration programs
and projects;
(iv) restoring the biological productivity and ecosystem
function in the Gulf of Mexico region;
(v) improving the resilience of natural resources to
withstand the impacts of climate change and ocean
acidification to ensure the long-term effectiveness of the
restoration program; and
(vi) restoring fisheries resources in the Gulf of Mexico
that benefit the commercial and recreational fishing
industries and seafood processing industries throughout the
United States.
(3) Report.--The Task Force shall annually provide a report
to Congress about the progress in implementing the Plan.
(d) Definitions.--For purposes of this section, the term--
(1) ``Gulf Coast State'' means each of the States of Texas,
Louisiana, Mississippi, Alabama, and Florida; and
(2) ``restoration programs and projects'' means activities
that support the restoration, rehabilitation, replacement, or
acquisition of the equivalent, of injured or lost natural
resources including the ecological services and benefits
provided by such resources.
(e) Relationship to Other Law.--Nothing in this section
affects the ability or authority of the Federal Government to
recover costs of removal or damages from a person determined
to be a responsible party pursuant to the Oil Pollution Act
of 1990 (33 U.S.C. 2701 et seq.) or other law.
SEC. 502. GULF OF MEXICO LONG-TERM ENVIRONMENTAL MONITORING
AND RESEARCH PROGRAM.
(a) In General.--To ensure that the Federal Government has
independent, peer-reviewed scientific data and information to
assess long-term direct and indirect impacts on trust
resources located in the Gulf of Mexico
[[Page H6526]]
and Southeast region resulting from the Deepwater Horizon oil
spill, the Secretary, through the National Oceanic and
Atmospheric Administration, shall establish as soon as
practicable after the date of enactment of this Act, a long-
term, comprehensive marine environmental monitoring and
research program for the marine and coastal environment of
the Gulf of Mexico. The program shall remain in effect for a
minimum of 10 years, and the Secretary may extend the program
beyond this initial period based upon a determination that
additional monitoring and research is warranted.
(b) Scope of Program.--The program established under
subsection (a) shall at a minimum include monitoring and
research of the physical, chemical, and biological
characteristics of the affected marine, coastal, and
estuarine areas of the Gulf of Mexico and other regions of
the exclusive economic zone of the United States affected by
the Deepwater Horizon oil spill, and shall include
specifically the following elements:
(1) The fate, transport, and persistence of oil released
during the spill and spatial distribution throughout the
water column.
(2) The fate, transport, and persistence of chemical
dispersants applied in-situ or on surface waters.
(3) Identification of lethal and sub-lethal impacts to fish
and wildlife resources that utilize habitats located within
the affected region.
(4) Impacts to regional, State, and local economies that
depend on the natural resources of the affected area,
including commercial and recreational fisheries, and other
wildlife-dependent recreation.
(5) Other elements considered necessary by the Secretary to
ensure a comprehensive marine research and monitoring program
to comprehend and understand the implications to trust
resources caused by the Deepwater Horizon oil spill.
(c) Cooperation and Consultation.--In developing the
research and monitoring program established under subsection
(a), the Secretary shall cooperate with the United States
Geological Survey, and shall consult with--
(1) the Council authorized under subtitle E of title II of
Public Law 104-201;
(2) appropriate representatives from the Gulf Coast States;
(3) academic institutions and other research organizations;
and
(4) other experts with expertise in long-term environmental
monitoring and research of the marine environment.
(d) Availability of Data.--Data and information generated
through the program established under subsection (a) shall be
managed and archived to ensure that it is accessible and
available to governmental and nongovernmental personnel and
to the general public for their use and information.
(e) Report.--No later than one year after the establishment
of the program under subsection (a), and biennially
thereafter, the Secretary shall forward to the Congress a
comprehensive report summarizing the activities and findings
of the program and detailing areas and issues requiring
future monitoring and research.
(f) Definitions.--For the purposes of this section, the
term--
(1) ``trust resources'' means the living and nonliving
natural resources belonging to, managed by, held in trust by,
appertaining to, or otherwise controlled by the United
States, any State, an Indian tribe, or a local government;
(2) ``Gulf coast State'' means each of the states of Texas,
Louisiana, Mississippi, Alabama and Florida; and
(3) ``Secretary'' means the Secretary of Commerce.
SEC. 503. GULF OF MEXICO EMERGENCY MIGRATORY SPECIES
ALTERNATIVE HABITAT PROGRAM.
(a) In General.--In order to reduce the injury or death of
many populations of migratory species of fish and wildlife,
including threatened and endangered species and other species
of critical conservation concern, that utilize estuarine,
coastal, and marine habitats of the Gulf of Mexico that have
been impacted, or are likely to be impacted, by the Deepwater
Horizon oil spill, and to ensure that migratory species upon
their annual return to the Gulf of Mexico find viable,
healthy, and environmentally-safe habitats to utilize for
resting, feeding, nesting and roosting, and breeding, the
Secretary of the Interior shall establish as soon as
practicable after date of enactment of this Act, an emergency
migratory species alternative habitat program.
(b) Scope of Program.--The program established under
subsection (a) shall at a minimum support projects along the
Northern coast of the Gulf of Mexico to--
(1) improve wetland water quality and forage;
(2) restore and refurbish diked impoundments;
(3) improve riparian habitats to increase fish passage and
breeding habitat;
(4) encourage conversion of agricultural lands to provide
alternative migratory habitat for water fowl and other
migratory birds;
(5) transplant, relocate, or rehabilitate fish and
wildlife; and
(6) conduct other activities considered necessary by the
Secretary to ensure that migratory species have alternative
habitat available for their use outside of habitat impacted
by the oil spill.
(c) National Fish and Wildlife Foundation.--In implementing
this section the Secretary may enter into an agreement with
the National Fish and Wildlife Foundation to administer the
program.
TITLE VI--COORDINATION AND PLANNING
SEC. 601. REGIONAL COORDINATION.
(a) In General.--The purpose of this title is to promote--
(1) better coordination, communication, and collaboration
between Federal agencies with authorities for ocean, coastal,
and Great Lakes management; and
(2) coordinated and collaborative regional planning efforts
using the best available science, and to ensure the
protection and maintenance of marine ecosystem health, in
decisions affecting the sustainable development and use of
Federal renewable and nonrenewable resources on, in, or above
the ocean (including the Outer Continental Shelf) and the
Great Lakes for the long-term economic and environmental
benefit of the United States.
(b) Objectives of Regional Efforts.--Such regional efforts
shall achieve the following objectives:
(1) Greater systematic communication and coordination among
Federal, coastal State, and affected tribal governments
concerned with the conservation of and the sustainable
development and use of Federal renewable and nonrenewable
resources of the oceans, coasts, and Great Lakes.
(2) Greater reliance on a multiobjective, science- and
ecosystem-based, spatially explicit management approach that
integrates regional economic, ecological, affected tribal,
and social objectives into ocean, coastal, and Great Lakes
management decisions.
(3) Identification and prioritization of shared State and
Federal ocean, coastal, and Great Lakes management issues.
(4) Identification of data and information needed by the
Regional Coordination Councils established under section 602.
(c) Regions.--There are hereby designated the following
Coordination Regions:
(1) Pacific region.--The Pacific Coordination Region, which
shall consist of the coastal waters and Exclusive Economic
Zone adjacent to the States of Washington, Oregon, and
California.
(2) Gulf of mexico region.--The Gulf of Mexico Coordination
Region, which shall consist of the coastal waters and
Exclusive Economic Zone adjacent to the States of Texas,
Louisiana, Mississippi, and Alabama, and the west coast of
Florida.
(3) North atlantic region.--The North Atlantic Coordination
Region, which shall consist of the coastal waters and
Exclusive Economic Zone adjacent to the States of Maine, New
Hampshire, Massachusetts, Rhode Island, and Connecticut
(4) Mid atlantic region.--The Mid Atlantic Coordination
Region, which shall consist of the coastal waters and
Exclusive Economic Zone adjacent to the States of New York,
New Jersey, Pennsylvania, Delaware, Maryland, and Virginia.
(5) South atlantic region.--The South Atlantic Coordination
Region, which shall consist of the coastal waters and
Exclusive Economic Zone adjacent to the States of North
Carolina, South Carolina, Georgia, the east coast of Florida,
and the Straits of Florida Planning Area.
(6) Alaska region.--The Alaska Coordination Region, which
shall consist of the coastal waters and Exclusive Economic
Zone adjacent to the State of Alaska.
(7) Pacific islands region.--The Pacific Islands
Coordination Region, which shall consist of the coastal
waters and Exclusive Economic Zone adjacent to the State of
Hawaii, the Commonwealth of the Northern Mariana Islands,
American Samoa, and Guam.
(8) Caribbean region.--The Caribbean Coordination Region,
which shall consist of the coastal waters and Exclusive
Economic Zone adjacent to Puerto Rico and the United States
Virgin Islands.
(9) Great lakes region.--The Great Lakes Coordination
Region, which shall consist of waters of the Great Lakes in
the States of Illinois, Indiana, Michigan, Minnesota, New
York, Ohio, Pennsylvania, and Wisconsin.
SEC. 602. REGIONAL COORDINATION COUNCILS.
(a) In General.--Within 180 days after the date of
enactment of this Act, the Chairman of the Council on
Environmental Quality, in consultation with the affected
coastal States and affected Indian tribes, shall establish or
designate a Regional Coordination Council for each of the
Coordination Regions designated by section 601(c).
(b) Membership.--
(1) Federal representatives.--Within 90 days after the date
of enactment of this Act, the Chairman of the Council on
Environmental Quality shall publish the titles of the
officials of each Federal agency and department that shall
participate in each Council. The Councils shall include
representatives of each Federal agency and department that
has authorities related to the development of ocean, coastal,
or Great Lakes policies or engages in planning, management,
or scientific activities that significantly affect or inform
the use of ocean, coastal, or Great Lakes resources. The
Chairman of the Council on Environmental Quality shall
determine which Federal agency representative shall serve as
the chairperson of each Council.
(2) Coastal state representatives.--
(A) Notice of intent to participate.--The Governor of each
coastal State within each Coordination Region designated by
section 601(c) shall within 3 months after the date of
enactment of this Act, inform the Chairman of the Council on
Environmental Quality
[[Page H6527]]
whether or not the State intends to participate in the
Regional Coordination Council for the Region.
(B) Appointment of responsible state official.--If a
coastal State intends to participate in such Council, the
Governor of the coastal State shall appoint an officer or
employee of the coastal State agency with primary
responsibility for overseeing ocean and coastal policy or
resource management to that Council.
(C) Alaska regional coordination council.--The Regional
Coordination Council for the Alaska Coordination Region shall
include representation from each of the States of Alaska,
Washington, and Oregon, if appointed by the Governor of that
State in accordance with this paragraph.
(3) Regional fishery management council representation.--A
representative of each Regional Fishery Management Council
with jurisdiction in the Coordination Region of a Regional
Coordination Council (who is selected by the Regional Fishery
Management Council) and the executive director of the
interstate marine fisheries commission with jurisdiction in
the Coordination Region of a Regional Coordination Council
shall each serve as a member of the Council.
(4) Regional ocean partnership representation.--A
representative of any Regional Ocean Partnership that has
been established for any part of the Coordination Region of a
Regional Coordination Council may appoint a representative to
serve on the Council in addition to any Federal or State
appointments.
(5) Tribal representation.--An appropriate tribal official
selected by affected Indian tribes situated in the affected
Coordination Region may elect to appoint a representative of
such tribes collectively to serve as a member of the Regional
Coordination Council for that Region.
(6) Local representation.--The Chairman of the Council on
Environmental Quality shall, in consultation with the
Governors of the coastal States within each Coordination
Region, identify and appoint representatives of county and
local governments, as appropriate, to serve as members of the
Regional Coordination Council for that Region.
(c) Advisory Committee.--Each Regional Coordination Council
shall establish advisory committees for the purposes of
public and stakeholder input and scientific advice, made up
of a balanced representation from the energy, shipping,
transportation, commercial and recreational fishing, and
recreation industries, from marine environmental
nongovernmental organizations, and from scientific and
educational authorities with expertise in the conservation
and management of ocean, coastal, and Great Lakes resources
to advise the Council during the development of Regional
Assessments and Regional Strategic Plans and in its other
activities.
(d) Coordination With Existing Programs.--Each Regional
Coordination Council shall build upon and complement current
State, multistate, and regional capacity and governance and
institutional mechanisms to manage and protect ocean waters,
coastal waters, and ocean resources.
SEC. 603. REGIONAL STRATEGIC PLANS.
(a) Initial Regional Assessment.--
(1) In general.--Each Regional Coordination Council, shall,
within one year after the date of enactment of this Act,
prepare an initial assessment of its Coordination Region that
shall identify deficiencies in data and information necessary
to informed decisionmaking by Federal, State, and affected
tribal governments concerned with the conservation of and
management of the oceans, coasts, and Great Lakes. Each
initial assessment shall to the extent feasible--
(A) identify the Coordination Region's renewable and non
renewable resources, including current and potential energy
resources;
(B) identify and include a spatially and temporally
explicit inventory of existing and potential uses of the
Coordination Region, including fishing and fish habitat,
recreation, and energy development;
(C) document the health and relative environmental
sensitivity of the marine ecosystem within the Coordination
Region, including a comprehensive survey and status
assessment of species, habitats, and indicators of ecosystem
health;
(D) identify marine habitat types and important ecological
areas within the Coordination Region;
(E) assess the Coordination Region's marine economy and
cultural attributes and include regionally-specific
ecological and socio-economic baseline data;
(F) identify and prioritize additional scientific and
economic data necessary to inform the development of
Strategic Plans; and
(G) include other information to improve decision making as
determined by the Regional Coordination Council.
(2) Data.--Each initial assessment shall--
(A) use the best available data;
(B) collect and provide data in a spatially explicit manner
wherever practicable and provide such data to the interagency
comprehensive digital mapping initiative as described in
section 2 of Public Law 109-58 (42 U.S.C. 15801); and
(C) make publicly available any such data that is not
classified information.
(3) Public participation.--Each Regional Coordination
Council shall provide adequate opportunity for review and
input by stakeholders and the general public during the
preparation of the initial assessment and any revised
assessments.
(b) Regional Strategic Plans.--
(1) Requirement.--Each Regional Coordination Council shall,
within 3 years after the completion of the initial regional
assessment, prepare and submit to the Chairman of the Council
on Environmental Quality a multiobjective, science- and
ecosystem-based, spatially explicit, integrated Strategic
Plan in accordance with this subsection for the Council's
Coordination Region.
(2) Objective and goals.--The objective of the Strategic
Plans under this subsection shall be to foster comprehensive,
integrated, and sustainable development and use of ocean,
coastal, and Great Lakes resources, while protecting marine
ecosystem health and sustaining the long-term economic and
ecosystem values of the oceans, coasts, and Great Lakes.
(3) Contents.--Each Strategic Plan prepared by a Regional
Coordination Council shall--
(A) be based on the initial regional assessment and updates
for the Coordination Region under subsections (a) and (c),
respectively;
(B) foster the sustainable and integrated development and
use of ocean, coastal, and Great Lakes resources in a manner
that protects the health of marine ecosystems;
(C) identify areas with potential for siting and developing
renewable and nonrenewable energy resources in the
Coordination Region covered by the Strategic Plan;
(D) identify other current and potential uses of the ocean
and coastal resources in the Coordination Region;
(E) identify and recommend long-term monitoring needs for
ecosystem health and socioeconomic variables within the
Coordination Region covered by the Strategic Plan;
(F) identify existing State and Federal regulating
authorities within the Coordination Region covered by the
Strategic Plan and measures to assist those authorities in
carrying out their responsibilities;
(G) identify best available technologies to minimize
adverse environmental impacts and use conflicts in the
development of ocean and coastal resources in the
Coordination Region;
(H) identify additional research, information, and data
needed to carry out the Strategic Plan;
(I) identify performance measures and benchmarks for
purposes of fulfilling the responsibilities under this
section to be used to evaluate the Strategic Plan's
effectiveness;
(J) define responsibilities and include an analysis of the
gaps in authority, coordination, and resources, including
funding, that must be filled in order to fully achieve those
performance measures and benchmarks; and
(K) include such other information at the Chairman of the
Council on Environmental Quality determines is appropriate.
(4) Public participation.--Each Regional Coordination
Council shall provide adequate opportunities for review and
input by stakeholders and the general public during the
development of the Strategic Plan and any Strategic Plan
revisions.
(c) Updated Regional Assessments.--Each Regional
Coordination Council shall update the initial regional
assessment prepared under subsection (a) in coordination with
each Strategic Plan revision under subsection (e), to provide
more detailed information regarding the required elements of
the assessment and to include any relevant new information
that has become available in the interim.
(d) Review and Approval.--
(1) Commencement of review.--Within 10 days after receipt
of a Strategic Plan under this section, or any revision to
such a Strategic Plan, from a Regional Coordination Council,
the Chairman of the Council of Environmental Quality shall
commence a review of the Strategic Plan or the revised
Strategic Plan, respectively.
(2) Public notice and comment.--Immediately after receipt
of such a Strategic Plan or revision, the Chairman of the
Council of Environmental Quality shall publish the Strategic
Plan or revision in the Federal Register and provide an
opportunity for the submission of public comment for a 90-day
period beginning on the date of such publication.
(3) Requirements for approval.--Before approving a
Strategic Plan, or any revision to a Strategic Plan, the
Chairman of the Council on Environmental Quality must find
that the Strategic Plan or revision--
(A) is consistent with the Outer Continental Shelf Lands
Act;
(B) complies with subsection (b); and
(C) complies with the purposes of this title as identified
in section 601(a) and the objectives identified in section
601(b).
(4) Deadline for completion.--Within 180 days after the
receipt of a Strategic Plan, or a revision to a Strategic
Plan, the Chairman of the Council of Environmental Quality
shall approve or disapprove the Strategic Plan or revision.
If the Chairman disapproves the Strategic Plan or revision,
the Chairman shall transmit to the Regional Coordination
Council that submitted the Strategic Plan or revision, an
identification of the deficiencies and recommendations to
improve it. The Council shall submit a revised Strategic
Plan or revision to such plan with 180 days after
receiving the recommendations from the Chairman.
(e) Plan Revision.--Each Strategic Plan shall be reviewed
and revised by the relevant Regional Coordination Council at
least once
[[Page H6528]]
every 5 years. Such review and revision shall be based on the
most recently updated regional assessment. Any proposed
revisions to the Strategic Plan shall be submitted to the
Chairman of the Council on Environmental Quality for review
and approval pursuant to this section.
SEC. 604. REGULATIONS AND SAVINGS CLAUSE.
(a) Regulations.--The Chairman of the Council on
Environmental Quality may issue such regulations as the
Chairman considers necessary to implement sections 601
through 603.
(b) Savings Clause.--Nothing in this title shall be
construed to affect existing authorities under Federal law.
SEC. 605. OCEAN RESOURCES CONSERVATION AND ASSISTANCE FUND.
(a) Establishment.--
(1) In general.--There is established in the Treasury of
the United States a separate account to be known as the Ocean
Resources Conservation and Assistance Fund.
(2) Credits.--The ORCA Fund shall be credited with amounts
as specified in section 9 of the Outer Continental Shelf
Lands Act (43 U.S.C. 1338), as amended by section 207 of this
Act.
(3) Allocation of the orca fund.--Of the amounts
appropriated from the ORCA Fund each fiscal year--
(A) 70 percent shall be allocated to the Secretary, of
which--
(i) 1/2 shall be used to make grants to coastal States and
affected Indian tribes under subsection (b); and
(ii) 1/2 shall be used for the ocean, coastal, and Great
Lakes grants program established by subsection (c);
(B) 20 percent shall be allocated to the Secretary to carry
out the purposes of subsection (e); and
(C) 10 percent shall be allocated to the Secretary to make
grants to Regional Ocean Partnerships under subsection (d)
and the Regional Coordination Councils established under
section 602.
(4) Procedures.--The Secretary shall establish application,
review, oversight, financial accountability, and performance
accountability procedures for each grant program for which
funds are allocated under this subsection.
(b) Grants to Coastal States.--
(1) Grant authority.--The Secretary may use amounts
allocated under subsection (a)(3)(A)(I)(I) to make grants
to--
(A) coastal States pursuant to the formula established
under section 306(c) of the Coastal Zone Management Act of
1972 (16 U.S.C. 1455(c)); and
(B) affected Indian tribes based on and proportional to any
specific coastal and ocean management authority granted to an
affected tribe pursuant to affirmation of a Federal reserved
right.
(2) Eligibility.--To be eligible to receive a grant under
this subsection, a coastal State or affected Indian tribe
must prepare and revise a 5-year plan and annual work plans
that--
(A) demonstrate that activities for which the coastal State
or affected Indian tribe will use the funds are consistent
with the eligible uses of the Fund described in subsection
(f); and
(B) provide mechanisms to ensure that funding is made
available to government, nongovernment, and academic entities
to carry out eligible activities at the county and local
level.
(3) Approval of state and affected tribal plans.--
(A) In general.--Plans required under paragraph (2) must be
submitted to and approved by the Secretary.
(B) Public input and comment.--In determining whether to
approve such plans, the Secretary shall provide opportunity
for, and take into consideration, public input and comment on
the plans from stakeholders and the general public.
(5) Energy planning grants.--For each of the fiscal years
2011 through 2015, the Secretary may use funds allocated for
grants under this subsection to make grants to coastal States
and affected tribes under section 320 of the Coastal Zone
Management Act of 1972 (16 U.S.C. 1451 et seq.), as amended
by this Act.
(6) Use of funds.--Any amounts provided as a grant under
this subsection, other than as a grants under paragraph (5),
may only be used for activities described in subsection (f).
(c) Ocean and Coastal Competitive Grants Program.--
(1) Establishment.--The Secretary shall use amounts
allocated under subsection (a)(3)(A)(I)(II) to make
competitive grants for conservation and management of ocean,
coastal, and Great Lakes ecosystems and marine resources.
(2) Ocean, coastal, and great lakes review panel.--
(A) In general.--The Secretary shall establish an Ocean,
Coastal, and Great Lakes Review Panel (in this subsection
referred to as the ``Panel''), which shall consist of 12
members appointed by the Secretary with expertise in the
conservation and management of ocean, coastal, and Great
Lakes ecosystems and marine resources. In appointing members
to the Council, the Secretary shall include a balanced
diversity of representatives of relevant Federal agencies,
the private sector, nonprofit organizations, and academia.
(B) Functions.--The Panel shall--
(i) review, in accordance with the procedures and criteria
established under paragraph (3), grant applications under
this subsection;
(ii) make recommendations to the Secretary regarding which
grant applications should be funded and the amount of each
grant; and
(iii) establish any specific requirements, conditions, or
limitations on a grant application recommended for funding.
(3) Procedures and eligibility criteria for grants.--
(A) In general.--The Secretary shall establish--
(i) procedures for applying for a grant under this
subsection and criteria for evaluating applications for such
grants; and
(ii) criteria, in consultation with the Panel, to determine
what persons are eligible for grants under the program.
(B) Eligible persons.--Persons eligible under the criteria
under subparagraph (A)(ii) shall include Federal, State,
affected tribal, and local agencies, fishery or wildlife
management organizations, nonprofit organizations, and
academic institutions.
(4) Approval of grants.--In making grants under this
subsection the Secretary shall give the highest priority to
the recommendations of the Panel. If the Secretary
disapproves a grant recommended by the Panel, the Secretary
shall explain that disapproval in writing.
(5) Use of grant funds.--Any amounts provided as a grant
under this subsection may only be used for activities
described in subsection (f).
(d) Grants to Regional Ocean Partnerships.--
(1) Grant authority.--The Secretary may use amounts
allocated under subsection (a)(3)(A)(iii) to make grants to
Regional Ocean Partnerships.
(2) Eligibility.--In order to be eligible to receive a
grant, a Regional Ocean Partnership must prepare and annually
revise a plan that--
(A) identifies regional science and information needs,
regional goals and priorities, and mechanisms for
facilitating coordinated and collaborative responses to
regional issues;
(B) establishes a process for coordinating and
collaborating with the Regional Coordination Councils
established under section 602 to address regional issues and
information needs and achieve regional goals and priorities;
and
(C) demonstrates that activities to be carried out with
such funds are eligible uses of the funds identified in
subsection (f).
(3) Approval by secretary.--Such plans must be submitted to
and approved by the Secretary.
(4) Public input and comment.--In determining whether to
approve such plans, the Secretary shall provide opportunity
for, and take into consideration, input and comment on the
plans from stakeholders and the general public.
(5) Use of funds.--Any amounts provided as a grant under
this subsection may only be used for activities described in
subsection (f).
(e) Long-term Ocean and Coastal Observations.--
(1) In general.--The Secretary shall use the amounts
allocated under subsection (a)(3)(A)(ii) to build, operate,
and maintain the system established under section 12304 of
Public Law 111-11 (33 U.S.C. 3603), in accordance with the
purposes and policies for which the system was established.
(2) Administration of funds.--The Secretary shall
administer and distribute funds under this subsection based
upon comprehensive system budgets adopted by the Council
referred to in section 12304(c)(1)(A) of the Integrated
Coastal and Ocean Observation System Act of 2009 (33 U.S.C.
3603(c)(1)(A)).
(f) Eligible Use of Funds.--Any funds made available under
this section may only be used for activities that contribute
to the conservation, protection, maintenance, and restoration
of ocean, coastal, and Great Lakes ecosystems in a manner
that is consistent with Federal environmental laws and that
avoids environmental degradation, including--
(1) activities to conserve, protect, maintain, and restore
coastal, marine, and Great Lakes ecosystem health;
(2) activities to protect marine biodiversity and living
marine and coastal resources and their habitats, including
fish populations;
(3) the development and implementation of multiobjective,
science- and ecosystem-based plans for monitoring and
managing the wide variety of uses affecting ocean, coastal,
and Great Lakes ecosystems and resources that consider
cumulative impacts and are spatially explicit where
appropriate;
(4) activities to improve the resiliency of those
ecosystems;
(5) activities to improve the ability of those ecosystems
to become more resilient, and to adapt to and withstand the
impacts of climate change and ocean acidification;
(6) planning for and managing coastal development to
minimize the loss of life and property associated with sea
level rise and the coastal hazards resulting from it;
(7) research, education, assessment, monitoring, and
dissemination of information that contributes to the
achievement of these purposes;
(8) research of, protection of, enhancement to, and
activities to improve the resiliency of culturally
significant areas and resources; and
(9) activities designed to rescue, rehabilitate, and
recover injured marine mammals, marine birds, and sea
turtles.
(g) Definitions.--In this section:
(1) ORCA fund.--The term ``ORCA Fund'' means the Ocean
Resources Conservation
[[Page H6529]]
and Assistance Fund established by this section
(2) Secretary.--Notwithstanding section 3, the term
``Secretary'' means the Secretary of Commerce.
SEC. 606. WAIVER.
The Federal Advisory Committee Act (5 U.S.C. App.) shall
not apply to the Regional Coordination Councils established
under section 602.
TITLE VII--OIL SPILL ACCOUNTABILITY AND ENVIRONMENTAL PROTECTION
SEC. 701. SHORT TITLE.
This title may be cited as the ``Oil Spill Accountability
and Environmental Protection Act of 2010''.
SEC. 702. REPEAL OF AND ADJUSTMENTS TO LIMITATION ON
LIABILITY.
(a) In General.--Section 1004 of the Oil Pollution Act of
1990 (33 U.S.C. 2704) is amended--
(1) in subsection (a)--
(A) in paragraph (2)--
(i) by striking ``$800,000,,'' and inserting ``$800,000,'';
and
(ii) by adding ``and'' after the semicolon at the end;
(B) by striking paragraph (3); and
(C) by redesignating paragraph (4) as paragraph (3);
(2) in subsection (b)(2) by striking the second sentence;
and
(3) by striking subsection (d)(4) and inserting the
following:
``(4) Adjustment of limits on liability.--Not later than 3
years after the date of enactment of the Oil Spill
Accountability and Environmental Protection Act of 2010, and
at least once every 3 years thereafter, the President shall
review the limits on liability specified in subsection (a)
and shall by regulation revise such limits upward to reflect
either the amount of liability that the President determines
is commensurate with the risk of discharge of oil presented
by a particular category of vessel, facility, or port or any
increase in the Consumer Price Index, whichever is
greater.''.
(b) Applicability.--The amendments made by this section
apply to--
(1) any claim arising from an event occurring after the
date of enactment of this Act; and
(2) any claim arising from an event occurring before such
date of enactment, if the claim is brought within the
limitations period applicable to the claim.
SEC. 703. EVIDENCE OF FINANCIAL RESPONSIBILITY FOR OFFSHORE
FACILITIES.
Section 1016 of the Oil Pollution Act of 1990 (33 U.S.C.
2716) is amended--
(1) in subsection (c)(1)--
(A) in subparagraph (B) by striking ``subparagraph (A) is''
and all that follows before the period and inserting
``subparagraph (A) is $300,000,000''; and
(B) by striking subparagraph (C) and inserting the
following:
``(C) Alternate amount.--
``(i) Specific facilities.--
``(I) In general.--If the President determines that an
amount of financial responsibility for a responsible party
that is less than the amount required by subparagraph (B) is
justified based on the criteria established under clause
(ii), the evidence of financial responsibility required shall
be for an amount determined by the President.
``(II) Minimum amounts.--In no case shall the evidence of
financial responsibility required under this section be less
than--
``(aa) $105,000,000 for an offshore facility located
seaward of the seaward boundary of a State; or
``(bb) $30,000,000 for an offshore facility located
landward of the seaward boundary of a State.
``(ii) Criteria for determination of financial
responsibility.--The President shall prescribe the amount of
financial responsibility required under clause (i)(I) based
on the following:
``(I) The market capacity of the insurance industry to
issue such instruments.
``(II) The operational risk of a discharge and the effects
of that discharge on the environment and the region.
``(III) The quantity and location of the oil and gas that
is explored for, drilled for, produced, or transported by the
responsible party.
``(IV) The asset value of the owner of the offshore
facility, including the combined asset value of all partners
that own the facility.
``(V) The cost of all removal costs and damages for which
the owner may be liable under this Act based on a worst-case-
scenario.
``(VI) The safety history of the owner of the offshore
facility.
``(VII) Any other factors that the President considers
appropriate.
``(iii) Adjustment for all offshore facilities.--
``(I) In general.--Not later than 3 years after the date of
enactment of the Oil Spill Accountability and Environmental
Protection Act of 2010, and at least once every 3 years
thereafter, the President shall review the levels of
financial responsibility specified in this subsection and the
limit on liability specified in subsection (f)(4) and may by
regulation revise such levels and limit upward to the levels
and limit that the President determines are justified based
on the relative operational, environmental, and other risks
posed by the quantity, quality, or location of oil that is
explored for, drilled for, produced, or transported by the
responsible party.
``(II) Notice to congress.--Upon completion of a review
specified in subclause (I), the President shall notify
Congress as to whether the President will revise the levels
of financial responsibility and limit on liability referred
to in subclause (I) and the factors used in making such
determination.''; and
(2) in subsection (f)--
(A) in paragraph (1) by striking ``Subject'' and inserting
``Except as provided in paragraph (4) and subject''; and
(B) by adding at the end the following:
``(4) Maximum liability.--The maximum liability of a
guarantor of an offshore facility under this subsection is
$300,000,000.''.
SEC. 704. DAMAGES TO HUMAN HEALTH.
(a) In General.--Section 1002(b)(2) of the Oil Pollution
Act of 1990 (33 U.S.C. 2702(b)(2)) is amended by adding at
the end the following:
``(G) Human health.--
``(i) In general.--Damages to human health, including fatal
injuries, which shall be recoverable by any claimant who has
a demonstrable, adverse impact to human health or, in the
case of a fatal injury to an individual, a claimant filing a
claim on behalf of such individual.
``(ii) Inclusion.--For purposes of clause (i), the term
`human health' includes mental health.''.
(b) Applicability.--The amendments made by this section
apply to--
(1) any claim arising from an event occurring after the
date of enactment of this Act; and
(2) any claim arising from an event occurring before such
date of enactment, if the claim is brought within the
limitations period applicable to the claim.
SEC. 705. CLARIFICATION OF LIABILITY FOR DISCHARGES FROM
MOBILE OFFSHORE DRILLING UNITS.
(a) In General.--Section 1004(b)(2) of the Oil Pollution
Act of 1990 (33 U.S.C. 2704(b)(2)) is amended--
(1) by striking ``from any incident described in paragraph
(1)'' and inserting ``from any discharge of oil, or
substantial threat of a discharge of oil, into or upon the
water''; and
(2) by striking ``liable'' and inserting ``liable as
described in paragraph (1)''.
(b) Applicability.--The amendments made by this section
shall apply to--
(1) any claim arising from an event occurring after the
date of enactment of this Act; and
(2) any claim arising from an event occurring before such
date of enactment, if the claim is brought within the
limitations period applicable to the claim.
SEC. 706. STANDARD OF REVIEW FOR DAMAGE ASSESSMENT.
Section 1006(e)(2) of the Oil Pollution Act of 1990 (33
U.S.C. 2706(e)(2)) is amended--
(1) in the heading by striking ``Rebuttable presumption''
and inserting ``Judicial review of assessments''; and
(2) by striking ``have the force and effect'' and all that
follows before the period and inserting the following: ``be
subject to judicial review under subchapter II of chapter 5
of title 5, United States Code (commonly known as the
Administrative Procedure Act), on the basis of the
administrative record developed by the lead Federal trustee
as provided in such regulations''.
SEC. 707. INFORMATION ON CLAIMS.
(a) In General.--Title I of the Oil Pollution Act of 1990
(33 U.S.C. 2701 et seq.) is amended by inserting after
section 1013 the following:
``SEC. 1013A. INFORMATION ON CLAIMS.
``In the event of a spill of national significance, the
President may require a responsible party or a guarantor of a
source designated under section 1014(a) to provide to the
President any information on or related to claims, either
individually, in the aggregate, or both, that the President
requests, including--
``(1) the transaction date or dates of such claims,
including processing times; and
``(2) any other data pertaining to such claims necessary to
ensure the performance of the responsible party or the
guarantor with regard to the processing and adjudication of
such claims.''.
(b) Conforming Amendment.--The table of contents contained
in section 2 of such Act is amended by inserting after the
item relating to section 1013 the following:
``Sec. 1013A. Information on claims.''.
(c) Applicability.--The amendments made by this section
apply to--
(1) any claim arising from an event occurring after the
date of enactment of this Act; and
(2) any claim arising from an event occurring before such
date of enactment, if the claim is brought within the
limitations period applicable to the claim.
SEC. 708. ADDITIONAL AMENDMENTS AND CLARIFICATIONS TO OIL
POLLUTION ACT OF 1990.
(a) Definitions.--
(1) Removal costs.--Section 1001(31) of the Oil Pollution
Act of 1990 (33 U.S.C. 2701(31)) is amended by inserting
before the semicolon the following: ``and includes all costs
of Federal enforcement activities related thereto''.
(2) Responsible party.--Section 1001(32)(B) of such Act (33
U.S.C. 2701(32)(B)) is amended by inserting before ``, except
a'' the following: ``any person who owns or who has a
leasehold interest or other property interest in the land or
in the minerals beneath
[[Page H6530]]
the land on which the facility is located, and any person who
is the assignor of a property interest in the land or in the
minerals beneath the land on which the facility is
located,''.
(b) Elements of Liability.--Section 1002(b)(1)(A) of such
Act (33 U.S.C. 2702(b)(1)(A)) is amended by inserting before
the semicolon the following: ``, including all costs of
Federal enforcement activities related thereto''.
(c) Subrogation.--Section 1015(c) of such Act (33 U.S.C.
2715(c)) is amended by adding at the end the following: ``In
such actions, the Fund shall recover all costs and damages
paid from the Fund unless the decision to make the payment is
found to be arbitrary or capricious.''.
(d) Financial Responsibility.--Section 1016(f)(1) of such
Act (33 U.S.C. 2717(f)(1)) is amended--
(1) by inserting ``and'' at the end of subparagraph (A);
and
(2) by striking ``; and'' at the end of subparagraph (B)
and inserting a period; and
(3) by striking subparagraph (C).
(e) Applicability.--The amendments made by this section
apply to--
(1) any claim arising from an event occurring after the
date of enactment of this Act; and
(2) any claim arising from an event occurring before such
date of enactment, if the claim is brought within the
limitations period applicable to the claim.
SEC. 709. AMERICANIZATION OF OFFSHORE OPERATIONS IN THE
EXCLUSIVE ECONOMIC ZONE.
(a) Registry Endorsement Required.--
(1) In general.--Section 12111 of title 46, United States
Code, is amended by adding at the end the following:
``(e) Resource Activities in the EEZ.--Except for
activities requiring an endorsement under sections 12112 or
12113, only a vessel for which a certificate of documentation
with a registry endorsement is issued and that is owned by a
citizen of the United States (as determined under section
50501(d)) may engage in support of exploration, development,
or production of resources in, on, above, or below the
exclusive economic zone or any other activity in the
exclusive economic zone to the extent that the regulation of
such activity is not prohibited under customary international
law.''.
(2) Applicability.--The amendment made by paragraph (1)
applies only with respect to exploration, development,
production, and support activities that commence on or after
July 1, 2011.
(b) Legal Authority.--Section 2301 of title 46, United
States Code, is amended--
(1) by striking ``chapter'' and inserting ``title''; and
(2) by inserting after ``1988'' the following: ``and the
exclusive economic zone to the extent that the regulation of
such operation is not prohibited under customary
international law''.
(c) Training for Coast Guard Personnel.--Not later than 180
days after the date of enactment of this Act, the Secretary
of the department in which the Coast Guard is operating shall
establish a program to provide Coast Guard personnel with the
training necessary for the implementation of the amendments
made by this section.
SEC. 710. SAFETY MANAGEMENT SYSTEMS FOR MOBILE OFFSHORE
DRILLING UNITS.
Section 3203 of title 46, United States Code, is amended--
(1) by redesignating subsection (b) as subsection (c); and
(2) by inserting after subsection (a) the following:
``(b) Mobile Offshore Drilling Units.--The safety
management system described in subsection (a) for a mobile
offshore drilling unit operating in waters subject to the
jurisdiction of the United States (including the exclusive
economic zone) shall include processes, procedures, and
policies related to the safe operation and maintenance of the
machinery and systems on board the vessel that may affect the
seaworthiness of the vessel in a worst-case event.''.
SEC. 711. SAFETY STANDARDS FOR MOBILE OFFSHORE DRILLING
UNITS.
Section 3306 of title 46, United States Code, is amended by
adding at the end the following:
``(k) In prescribing regulations for mobile offshore
drilling units, the Secretary shall develop standards to
address a worst-case event on the vessel.''.
SEC. 712. OPERATIONAL CONTROL OF MOBILE OFFSHORE DRILLING
UNITS.
(a) Licenses for Masters of Mobile Offshore Drilling
Units.--
(1) In general.--Chapter 71 of title 46, United States
Code, is amended by redesignating sections 7104 through 7114
as sections 7105 through 7115, respectively, and by inserting
after section 7103 the following:
``Sec. 7104. Licenses for masters of mobile offshore drilling
units
``A license as master of a mobile offshore drilling unit
may be issued only to an applicant who has been issued a
license as master under section 7101(c)(1) and has
demonstrated the knowledge, understanding, proficiency, and
sea service for all industrial business or functions of a
mobile offshore drilling unit.''.
(2) Conforming amendment.--Section 7109 of such title, as
so redesignated, is amended by striking ``section 7106 or
7107'' and inserting ``section 7107 or 7108''.
(3) Clerical amendment.--The analysis at the beginning of
such chapter is amended by striking the items relating to
sections 7104 through 7114 and inserting the following:
``7104. Licenses for masters of mobile offshore drilling units.
``7105. Certificates for medical doctors and nurses.
``7106. Oaths.
``7107. Duration of licenses.
``7108. Duration of certificates of registry.
``7109. Termination of licenses and certificates of registry.
``7110. Review of criminal records.
``7111. Exhibiting licenses.
``7112. Oral examinations for licenses.
``7113. Licenses of masters or mates as pilots.
``7114. Exemption from draft.
``7115. Fees.''.
(b) Requirement for Certificate of Inspection.--Section
8101(a)(2) of title 46, United States Code, is amended by
inserting before the semicolon the following: ``and shall at
all times be under the command of a master licensed under
section 7104''.
(c) Effective Date.--The amendments made by this section
shall take effect 6 months after the date of enactment of
this Act.
SEC. 713. SINGLE-HULL TANKERS.
(a) Application of Tank Vessel Construction Standards.--
Section 3703a(b) of title 46, United States Code, is amended
by striking paragraph (3), and redesignating paragraphs (4)
through (6) as paragraphs (3) through (5), respectively.
(b) Effective Date.--The amendment made by subsection (a)
takes effect on January 1, 2011.
SEC. 714. REPEAL OF RESPONSE PLAN WAIVER.
Section 311(j)(5)(G) of the Federal Water Pollution Control
Act (33 U.S.C. 1321(j)(5)(G)) is amended--
(1) by striking ``a tank vessel, nontank vessel, offshore
facility, or onshore facility'' and inserting ``a nontank
vessel'';
(2) by striking ``tank vessel, nontank vessel, or
facility'' and inserting ``nontank vessel''; and
(3) by adding at the end the following: ``A mobile offshore
drilling unit, as such term is defined in section 1001 of the
Oil Pollution Act of 1990 (33 U.S.C. 2701), is not eligible
to operate without a response plan approved under this
section.''.
SEC. 715. NATIONAL CONTINGENCY PLAN.
(a) Guidelines for Containment Booms.--Section 311(d)(2) of
the Federal Water Pollution Control Act (33 U.S.C.
1321(d)(2)) is amended by adding at the end the following:
``(N) Guidelines regarding the use of containment booms to
contain a discharge of oil or a hazardous substance,
including identification of quantities of containment booms
likely to be needed, available sources of containment booms,
and best practices for containment boom placement,
monitoring, and maintenance.''.
(b) Schedule, Criteria, and Fees.--Section 311(d) of the
Federal Water Pollution Control Act (33 U.S.C. 1321(d)) is
amended by adding at the end the following:
``(5) Schedule for use of dispersants, other chemicals, and
other spill mitigating devices and substances.--
``(A) Rulemaking.--Not later than 2 years after the date of
enactment of this paragraph, the President, acting through
the Administrator, after providing notice and an opportunity
for public comment, shall issue a revised regulation for the
development of the schedule for the use of dispersants, other
chemicals, and other spill mitigating devices and substances
developed under paragraph (2)(G) in a manner that is
consistent with the requirements of this paragraph and shall
modify the existing schedule to take into account the
requirements of the revised regulation.
``(B) Schedule listing requirements.--In issuing the
regulation under subparagraph (A), the Administrator shall--
``(i) with respect to dispersants, other chemicals, and
other spill mitigating substances included or proposed to be
included on the schedule under paragraph (2)(G)--
``(I) establish minimum toxicity and efficacy testing
criteria, taking into account the results of the study
carried out under subparagraph (D);
``(II) provide for testing or other verification
(independent from the information provided by an applicant
seeking the inclusion of such dispersant, chemical, or
substance on the schedule) related to the toxicity and
effectiveness of such dispersant, chemical, or substance;
``(III) establish a framework for the application of any
such dispersant, chemical, or substance, including--
``(aa) application conditions;
``(bb) the quantity thresholds for which approval by the
Administrator is required;
``(cc) the criteria to be used to develop the appropriate
maximum quantity of any such dispersant, chemical, or
substance that the Administrator determines may be used, both
on a daily and cumulative basis; and
``(dd) a ranking, by geographic area, of any such
dispersant, chemical, or substance based on a combination of
its effectiveness for each type of oil and its level of
toxicity;
``(IV) establish a requirement that the volume of oil or
hazardous substance discharged, and the volume and location
of any such dispersant, chemical, or substance used, be
measured and made publicly available, including on the
Internet;
``(V) require the public disclosure of the specific
chemical identity, including the chemical and common name of
any ingredients contained in, and specific chemical formulas
or mixtures of, any such dispersant, chemical, or substance;
and
[[Page H6531]]
``(VI) in addition to existing authority, expressly provide
a mechanism for the delisting of any such dispersant,
chemical, or substance that the Administrator determines
poses a significant risk or impact to water quality, the
environment, or any other factor the Administrator determines
appropriate;
``(ii) with respect to a dispersant, other chemical, and
other spill mitigating substance not specifically identified
on the schedule, and prior to the use of such dispersant,
chemical, or substance in accordance with paragraph (2)(G)--
``(I) establish the minimum toxicity and efficacy levels
for such dispersant, chemical, or substance;
``(II) require the public disclosure of the specific
chemical identity of (including the chemical and common name
of any ingredients contained in and the specific chemical
formula or mixture of) any such dispersant, chemical, or
substance; and
``(III) require the provision of such additional
information as the Administrator determines necessary; and
``(iii) with respect to other spill mitigating devices
included or proposed to be included on the schedule under
paragraph (2)(G)--
``(I) require the manufacturer of such device to carry out
a study of the risks and effectiveness of the device
according to guidelines developed and published by the
Administrator; and
``(II) in addition to existing authority, expressly provide
a mechanism for the delisting of any such device based on any
information made available to the Administrator that
demonstrates that such device poses a significant risk or
impact to water quality, the environment, or any other factor
the Administrator determines appropriate.
``(C) Delisting.--In carrying out subparagraphs (B)(i)(VI)
and (B)(iii)(II), the Administrator, after posting a notice
in the Federal Register and providing an opportunity for
public comment, shall initiate a formal review of the
potential risks and impacts associated with a dispersant,
chemical, substance, or device prior to delisting the
dispersant, chemical, substance, or device.
``(D) Study.--
``(i) In general.--Not later than 3 months after the date
of enactment of this paragraph, the Administrator shall
initiate a study of the potential risks and impacts to water
quality, the environment, or any other factor the
Administrator determines appropriate, including acute and
chronic risks, from the use of dispersants, other chemicals,
and other spill mitigating substances, if any, that may be
used to carry out the National Contingency Plan, including an
assessment of such risks and impacts--
``(I) on a representative sample of biota and types of oil
from locations where such dispersants, chemicals, or
substances may potentially be used; and
``(II) that result from any by-products created from the
use of such dispersants, chemicals, or substances.
``(ii) Information from manufacturers.--
``(I) In general.--In conjunction with the study authorized
by clause (i), the Administrator shall determine the
requirements for manufacturers of dispersants, chemicals, or
substances to evaluate the potential risks and impacts to
water quality, the environment, or any other factor the
Administrator determines appropriate, including acute and
chronic risks, associated with the use of the dispersants,
chemicals, or substances and any byproducts generated by such
use and to provide the details of such evaluation as a
condition for listing on the schedule, or approving for use
under this section, according to guidelines developed and
published by the Administrator.
``(II) Minimum requirements for evaluation.--In carrying
out this clause, the Administrator shall require a
manufacturer to include--
``(aa) information on the oils and locations where such
dispersants, chemicals, or substances may potentially be
used; and
``(bb) if appropriate, an assessment of application and
impacts from subsea use of the dispersant, chemical, or
substance, including the potential long term effects of such
use on water quality and the environment.
``(E) Periodic revisions.--
``(i) In general.--Not later than 5 years after the date of
the issuance of the regulation under this paragraph, and on
an ongoing basis thereafter (and at least once every 5
years), the Administrator shall review the schedule for the
use of dispersants, other chemicals, and other spill
mitigating devices and substances that may be used to carry
out the National Contingency Plan and update or revise the
schedule, as necessary, to ensure the protection of water
quality, the environment, and any other factor the
Administrator determines appropriate.
``(ii) Effectiveness.--The Administrator shall ensure, to
the maximum extent practicable, that each update or revision
to the schedule increases the minimum effectiveness value
necessary for listing a dispersant, other chemical, or other
spill mitigating device or substance on the schedule.
``(F) Approval of use and application of dispersants.--
``(i) In general.--In issuing the regulation under
subparagraph (A), the Administrator shall require the
approval of the Federal On-Scene Coordinator, in coordination
with the Administrator, for all uses of a dispersant, other
chemical, or other spill mitigating substance in any removal
action, including--
``(I) any such dispersant, chemical, or substance that is
included on the schedule developed pursuant to this
subsection; or
``(II) any dispersant, chemical, or other substance that is
included as part an approved area contingency plan or
response plan developed under this section.
``(ii) Repeal.--Any part of section 300.910 of title 40,
Code of Federal Regulations, that is inconsistent with this
paragraph is hereby repealed.
``(G) Toxicity definition.--In this section, the term
`toxicity' is used in reference to the potential impacts of a
dispersant, substance, or device on water quality or the
environment.
``(6) Review of and development of criteria for evaluating
response plans.--
``(A) Review.--Not later than 6 months after the date of
enactment of this paragraph, the President shall review the
procedures and standards developed under paragraph (2)(J) to
determine their sufficiency in ceasing and removing a worst
case discharge of oil or hazardous substances, and for
mitigating or preventing a substantial threat of such a
discharge.
``(B) Rulemaking.--Not later than 2 years after the date of
enactment of this paragraph, the President, after providing
notice and an opportunity for public comment, shall issue a
final rule to--
``(i) revise the procedures and standards for ceasing and
removing a worst case discharge of oil or hazardous
substances, and for mitigating or preventing a substantial
threat of such a discharge; and
``(ii) develop a metric for evaluating the National
Contingency Plan, Area Contingency Plans, and tank vessel,
nontank vessel, and facility response plans consistent with
the procedures and standards developed pursuant to this
paragraph.
``(7) Fees.--
``(A) General authority and fees.--Subject to subparagraph
(B), the Administrator shall establish a schedule of fees to
be collected from the manufacturer of a dispersant, chemical,
or spill mitigating substance or device to offset the costs
of the Administrator associated with evaluating the use of
the dispersant, chemical, substance, or device in accordance
with this subsection and listing the dispersant, chemical,
substance, or device on the schedule under paragraph (2)(G).
``(B) Limitation on collection.--No fee may be collected
under this subsection unless the expenditure of the fee to
pay the costs of activities and services for which the fee is
imposed is provided for in advance in an appropriations Act.
``(C) Fees credited as offsetting collections.--
``(i) In general.--Notwithstanding section 3302 of title
31, United States Code, any fee authorized to be collected
under this paragraph shall--
``(I) be credited as offsetting collections to the account
that finances the activities and services for which the fee
is imposed;
``(II) be available for expenditure only to pay the costs
of activities and services for which the fee is imposed,
including all costs associated with collecting such fees; and
``(III) remain available until expended.
``(ii) Continuing appropriations.--The Administrator may
continue to assess, collect, and spend fees established under
this section during any period in which the funding for the
Environmental Protection Agency is provided under an Act
providing continuing appropriations in lieu of the
Administration's regular appropriations.
``(iii) Adjustments.--The Administrator shall adjust the
fees established by subparagraph (A) periodically to ensure
that each of the fees required by subparagraph (A) is
reasonably related to the Administration's costs, as
determined by the Administrator, of performing the activity
for which the fee is imposed.''.
(c) Temporary Moratorium on Approval of Use of
Dispersants.--
(1) In general.--Subject to paragraph (2), the
Administrator of the Environmental Protection Agency may not
approve the use of a dispersant under section 311(d) of the
Oil Pollution Act of 1990 (33 U.S.C. 1321(d)), and shall
withdraw any approval of such use made before the date of
enactment of this Act, until the date on which the rulemaking
and study required by subparagraphs (A) and (D) of section
311(d)(5) of such Act (as added by subsection (b) of this
section) are complete.
(2) Conditional approval.--The Administrator may approve
the use of a dispersant under section 311(d) of such Act (33
U.S.C. 1321(d)) for the period of time before the date on
which the rulemaking and study required by subparagraphs (A)
and (D) of section 311(d)(5) of such Act (as added by
subsection (b) of this section) are complete if the
Administrator determines that such use will not have a
negative impact on water quality, the environment, or any
other factor the Administrator determines appropriate.
(3) Information.--In approving the use of a dispersant
under paragraph (2), the Administrator may require the
manufacturer of the dispersant to provide such information as
the Administrator determines necessary to satisfy the
requirements of that paragraph.
(d) Inclusion of Containment Booms in Area Contingency
Plans.--Section 311(j)(4)(C)(iv) of such Act (33 U.S.C.
1321(j)(4)(C)(iv)) is amended by striking ``(including
firefighting equipment)'' and inserting ``(including
firefighting equipment and containment booms)''.
[[Page H6532]]
SEC. 716. TRACKING DATABASE.
Section 311(b) of the Federal Water Pollution Control Act
(33 U.S.C. 1321(b)) is amended by adding at the end the
following:
``(13) Tracking database.--
``(A) In general.--The President shall create a database to
track all discharges of oil or hazardous substances--
``(i) into the waters of the United States, onto adjoining
shorelines, or into or upon the waters of the contiguous
zone;
``(ii) in connection with activities under the Outer
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) or the
Deepwater Port Act of 1974 (33 U.S.C. 1501 et seq.); or
``(iii) which may affect natural resources belonging to,
appertaining to, or under the exclusive management authority
of the United States (including resources under the Fishery
Conservation and Management Act of 1976 (16 U.S.C. 1801 et
seq.)).
``(B) Requirements.--The database shall--
``(i) include--
``(I) the name of the vessel or facility;
``(II) the name of the owner, operator, or person in charge
of the vessel or facility;
``(III) the date of the discharge;
``(IV) the volume of the discharge;
``(V) the location of the discharge, including an
identification of any receiving waters that are or could be
affected by the discharge;
``(VI) the type, volume, and location of the use of any
dispersant, other chemical, or other spill mitigating
substance used in any removal action;
``(VII) a record of any determination of a violation of
this section or liability under section 1002 of the Oil
Pollution Act of 1990 (33 U.S.C. 2702);
``(VIII) a record of any enforcement action taken against
the owner, operator, or person in charge; and
``(IX) any additional information that the President
determines necessary;
``(ii) use data provided by the Environmental Protection
Agency, the Coast Guard, and other appropriate Federal
agencies;
``(iii) use data protocols developed and managed by the
Environmental Protection Agency; and
``(iv) be publicly accessible, including by electronic
means.''.
SEC. 717. EVALUATION AND APPROVAL OF RESPONSE PLANS; MAXIMUM
PENALTIES.
(a) Agency Review of Response Plans.--
(1) Lead federal agency for review of response plans.--
Section 311(j)(5)(A) of the Federal Water Pollution Control
Act (33 U.S.C. 1321(j)(5)(A)) is amended by adding at the end
the following:
``(iii) In issuing the regulations under this paragraph,
the President shall ensure that--
``(I) the owner, operator, or person in charge of a tank
vessel, nontank vessel, or offshore facility described in
subparagraph (C) will not be considered to have complied with
this paragraph until the owner, operator, or person in charge
submits a plan under clause (i) or (ii), as appropriate, to
the Secretary of the department in which the Coast Guard is
operating, the Secretary of the Interior, or the
Administrator, with respect to such offshore facilities as
the President may designate, and the Secretary or
Administrator, as appropriate, determines and notifies the
owner, operator, or person in charge that the plan, if
implemented, will provide an adequate response to a worst
case discharge of oil or a hazardous substance or a
substantial threat of such a discharge; and
``(II) the owner, operator, or person in charge of an
onshore facility described in subparagraph (C)(iv) will not
be considered to have complied with this paragraph until the
owner, operator, or person in charge submits a plan under
clause (i) either to the Secretary of Transportation, with
respect to transportation-related onshore facilities, or the
Administrator, with respect to all other onshore facilities,
and the Secretary or Administrator, as appropriate,
determines and notifies the owner, operator, or person in
charge that the plan, if implemented, will provide an
adequate response to a worst-case discharge of oil or a
hazardous substance or a substantial threat of such a
discharge.
``(iv)(I) The Secretary of the department in which the
Coast Guard is operating, the Secretary of the Interior, the
Secretary of Transportation, or the Administrator, as
appropriate, shall require that a plan submitted to the
Secretary or Administrator for a vessel or facility under
clause (iii)(I) or (iii)(II) by an owner, operator, or person
in charge--
``(aa) contain a probabilistic risk analysis for all
critical engineered systems of the vessel or facility; and
``(bb) adequately address all risks identified in the risk
analysis.
``(II) The Secretary or Administrator, as appropriate,
shall require that a risk analysis developed under subclause
(I) include, at a minimum, the following:
``(aa) An analysis of human factors risks, including both
organizational and management failure risks.
``(bb) An analysis of technical failure risks, including
both component technologies and integrated systems risks.
``(cc) An analysis of interactions between humans and
critical engineered systems.
``(dd) Quantification of the likelihood of modes of failure
and potential consequences.
``(ee) A description of methods for reducing known risks.
``(III) The Secretary or Administrator, as appropriate,
shall require an owner, operator, or person in charge that
develops a risk analysis under subclause (I) to make the risk
analysis available to the public.''.
(2) Review and approval of response plans.--Section
311(j)(5)(E) of such Act (33 U.S.C. 1321(j)(5)(E)) is amended
to read as follows:
``(E) With respect to any response plan submitted under
this paragraph for an onshore facility that, because of its
location, could reasonably be expected to cause significant
and substantial harm to the environment by discharging into
or on the navigable waters or adjoining shorelines or the
exclusive economic zone, and with respect to each response
plan submitted under this paragraph for a tank vessel,
nontank vessel, or offshore facility, the President shall--
``(i) promptly review the response plan;
``(ii) verify that the response plan complies with
subparagraph (A)(iv), relating to risk analyses;
``(iii) with respect to a plan for an offshore or onshore
facility or a tank vessel that carries liquefied natural gas,
provide an opportunity for public notice and comment on the
response plan;
``(iv) taking into consideration any public comments
received and other appropriate factors, as determined by the
President, require revisions to the response plan;
``(v) approve, approve with revisions, or disapprove the
response plan;
``(vi) review the response plan periodically thereafter,
and if applicable requirements are not met, acting through
the head of the appropriate Federal department or agency--
``(I) issue administrative orders directing the owner,
operator, or person in charge to comply with the response
plan or any regulation issued under this section; or
``(II) assess civil penalties or conduct other appropriate
enforcement actions in accordance with subsections (b)(6),
(b)(7), and (b)(8) for failure to develop, submit, receive
approval of, adhere to, or maintain the capability to
implement the response plan, or failure to comply with any
other requirement of this section;
``(vii) acting through the head of the appropriate Federal
department or agency, conduct, at a minimum, biennial
inspections of the tank vessel, nontank vessel, or facility
to ensure compliance with the response plan or identify
deficiencies in such plan;
``(viii) acting through the head of the appropriate Federal
department or agency, make the response plan available to the
public, including on the Internet; and
``(ix) in the case of a plan for a nontank vessel, consider
any applicable State-mandated response plan in effect on the
date of enactment of the Coast Guard and Maritime
Transportation Act of 2004 and ensure consistency to the
extent practicable.''.
(3) Biennial report.--Section 311(j)(5) of such Act (33
U.S.C. 1321(j)(5)) is amended by adding at the end the
following:
``(J) Not later than 2 years after the date of enactment of
this subparagraph, and biennially thereafter, the President,
acting through the Administrator, the Secretary of the
department in which the Coast Guard is operating, and the
Secretary of Transportation, shall submit to Congress a
report containing the following information for each owner,
operator, or person in charge that submitted a response plan
for a tank vessel, nontank vessel, or facility under this
paragraph:
``(i) The number of response plans approved, disapproved,
or approved with revisions under subparagraph (E) annually
for tank vessels, nontank vessels, and facilities of the
owner, operator, or person in charge.
``(ii) The number of inspections conducted under
subparagraph (E) annually for tank vessels, nontank vessels,
and facilities of the owner, operator, or person in charge.
``(iii) A summary of each administrative or enforcement
action concluded with respect each tank vessel, nontank
vessel, and facility of the owner, operator, or person in
charge, including a description of the violation, the date of
violation, the amount of each penalty proposed, and the final
assessment of each penalty and an explanation for any
reduction in a penalty.''.
(4) Administrative provisions for facilities.--Section
311(m)(2) of such Act (33 U.S.C. 1321(m)(2)) is amended in
each of subparagraphs (A) and (B) by inserting ``, the
Secretary of Transportation,'' before ``or the Secretary of
the department in which the Coast Guard is operating''.
(b) Penalties.--
(1) Administrative penalties.--
(A) Authority of secretary of transportation to assess
penalties.--Section 311(b)(6)(A) of such Act (33 U.S.C.
1321(b)(6)(A)) is amended by inserting ``, the Secretary of
Transportation,'' before ``or the Administrator''.
(B) Administrative penalties for failure to provide
notice.--Section 311(b)(6)(A) of such Act (33 U.S.C.
1321(b)(6)(A)) is further amended--
(i) in clause (i) by striking ``paragraph (3), or'' and
inserting ``paragraph (3),'';
(ii) in clause (ii) by striking ``any regulation issued
under subsection (j)'' and inserting ``any order or action
required by the President under subsection (c) or (e) or any
regulation issued under subsection (d) or (j)'';
(iii) by redesignating clause (ii) as clause (iii);
(iv) by inserting after clause (i) the following:
``(ii) who fails to provide notice to the appropriate
Federal agency pursuant to paragraph (5), or''; and
[[Page H6533]]
(v) by adding at the end the following: ``Whenever the
President delegates the authority to issue regulations under
subsection (j), the head of the agency who issues regulations
pursuant to that authority shall have the authority to assess
a civil penalty in accordance with this section for
violations of such regulations.''.
(C) Penalty amounts.--Section 311(b)(6)(B) of such Act (33
U.S.C. 1321(b)(6)(B)) is amended--
(i) in clause (i)--
(I) by striking ``$10,000'' and inserting ``$100,000''; and
(II) by striking ``$25,000'' and inserting ``$250,000'';
and
(ii) in clause (ii)--
(I) by striking ``$10,000'' and inserting ``$100,000''; and
(II) by striking ``$125,000'' and inserting ``$1,000,000''.
(2) Civil penalties.--Section 311(b)(7) of such Act (33
U.S.C. 1321(b)(7)) is amended--
(A) in subparagraph (A)--
(i) by striking ``$25,000'' and inserting ``$100,000''; and
(ii) by striking ``$1,000'' and inserting ``$2,500'';
(B) in subparagraph (B)--
(i) by striking ``described in subparagraph (A)'';
(ii) in clause (i) by striking ``carry out removal of the
discharge under an order of the President pursuant to
subsection (c); or'' and inserting ``comply with any order or
action required by the President pursuant to subsection
(c),'';
(iii) in clause (ii) by striking ``(1)(B)'';
(iv) by redesignating clause (ii) as clause (iii);
(v) by inserting after clause (i) the following:
``(ii) fails to provide notice to the appropriate Federal
agency pursuant to paragraph (5), or''; and
(vi) by striking ``$25,000'' and inserting ``$100,000'';
(C) in subparagraph (C)--
(i) by striking ``(j)'' and inserting ``(d) or (j)'';
(ii) by striking ``$25,000'' and inserting ``$100,000'';
and
(iii) by adding at the end the following: ``Whenever the
President delegates the authority to issue regulations under
subsection (j), the head of the agency who issues regulations
pursuant to that authority shall have the authority to seek
injunctive relief or assess a civil penalty in accordance
with this section for violations of such regulations and the
authority to refer the matter to the Attorney General for
action under subparagraph (E).'';
(D) in subparagraph (D)--
(i) by striking ``$100,000'' and inserting ``$300,000'';
and
(ii) by striking ``$3,000'' and inserting ``$7,500''; and
(E) in subparagraph (E) by adding at the end the following:
``The court may award appropriate relief, including a
temporary or permanent injunction, civil penalties, and
punitive damages.''.
(3) Applicability.--The amendments made by this subsection
apply to--
(A) any claim arising from an event occurring after the
date of enactment of this Act; and
(B) any claim arising from an event occurring before such
date of enactment, if the claim is brought within the
limitations period applicable to the claim.
(c) Clarification of Federal Removal Authority.--Section
311(c)(1)(B)(ii) of such Act (33 U.S.C. 1321(c)(1)(B)(ii)) is
amended by striking ``direct'' and inserting ``direct,
including through the use of an administrative order,''.
SEC. 718. OIL AND HAZARDOUS SUBSTANCE CLEANUP TECHNOLOGIES.
Section 311(j) of the Federal Water Pollution Control Act
(33 U.S.C. 1321(j)) is amended by adding at the end the
following:
``(9) Oil and hazardous substance cleanup technologies.--
The President, acting through the Secretary of the department
in which the Coast Guard is operating, shall--
``(A) in coordination with the Secretary of the Interior
and the heads of other appropriate Federal agencies,
establish a process for--
``(i) quickly and effectively soliciting, assessing, and
deploying offshore oil and hazardous substance cleanup
technologies in the event of a discharge or substantial
threat of a discharge of oil or a hazardous substance; and
``(ii) effectively coordinating with other appropriate
agencies, industry, academia, small businesses, and others to
ensure the best technology available is implemented in the
event of such a discharge or threat; and
``(B) in coordination with the Secretary of the Interior
and the heads of other appropriate Federal agencies, maintain
a database on best available oil and hazardous substance
cleanup technologies in the event of a discharge or
substantial threat of a discharge of oil or a hazardous
substance.''.
SEC. 719. IMPLEMENTATION OF OIL SPILL PREVENTION AND RESPONSE
AUTHORITIES.
Section 311(l) of the Federal Water Pollution Control Act
(33 U.S.C. 1321(l)) is amended--
(1) by striking ``(l) The President'' and inserting the
following:
``(l) Delegation and Implementation.--
``(1) Delegation.--The President''; and
(2) by adding at the end the following:
``(2) Environmental protection agency.--
``(A) In general.--The President shall delegate the
responsibilities under subparagraph (B) to the Administrator.
``(B) Responsibilities.--With respect to onshore facilities
(other than transportation-related facilities) and such
offshore facilities as the President may designate, the
Administrator shall ensure that Environmental Protection
Agency personnel develop and maintain operational
capability--
``(i) for effective inspection, monitoring, prevention,
preparedness, and response authorities related to the
discharge or substantial threat of a discharge of oil or a
hazardous substance;
``(ii) to protect water quality and the environment from
impacts of a discharge or substantial threat of a discharge
of oil or a hazardous substance; and
``(iii) to review and approve of, disapprove of, or require
revisions (if necessary) to facility response plans and to
carry out all other responsibilities under subsection
(j)(5)(E).
``(3) Coast guard.--
``(A) In general.--The President shall delegate the
responsibilities under subparagraph (B) to the Secretary of
the department in which the Coast Guard is operating.
``(B) Responsibilities.--The Secretary shall ensure that
Coast Guard personnel develop and maintain operational
capability--
``(i) to establish and enforce regulations and standards
for procedures, methods, equipment, and other requirements to
prevent and to contain a discharge of oil or a hazardous
substance from a tank vessel or nontank vessel or such an
offshore facility as the President may designate;
``(ii) to establish and enforce regulations, and to carry
out all other responsibilities, under subsection (j)(5) with
respect to such vessels and offshore facilities as the
President may designate; and
``(iii) to protect the environment and natural resources
from impacts of a discharge or substantial threat of a
discharge of oil or a hazardous substance from such vessels
and offshore facilities as the President may designate.
``(C) Role as first responder.--
``(i) In general.--The responsibilities delegated to the
Secretary under subparagraph (B) shall be sufficient to allow
the Coast Guard to act as a first responder to a discharge or
substantial threat of a discharge of oil or a hazardous
substance from a tank vessel, nontank vessel, or offshore
facility.
``(ii) Capabilities.--The President shall ensure that the
Coast Guard has sufficient personnel and resources to act as
a first responder as described in clause (i), including the
resources necessary for on-going training of personnel,
acquisition of equipment (including containment booms,
dispersants, and skimmers), and prepositioning of equipment.
``(D) Contracts.--The Secretary may enter into contracts
with private and nonprofit organizations for personnel and
equipment in carrying out the responsibilities delegated to
the Secretary under subparagraph (B).
``(4) Department of transportation.--
``(A) In general.--The President shall delegate the
responsibilities under subparagraph (B) to the Secretary of
Transportation.
``(B) Responsibilities.--The Secretary of Transportation
shall--
``(i) establish and enforce regulations and standards for
procedures, methods, equipment, and other requirements to
prevent and to contain discharges of oil and hazardous
substances from transportation-related onshore facilities;
``(ii) have the authority to review and approve of,
disapprove of, or require revisions (if necessary) to
transportation-related onshore facility response plans and to
carry out all other responsibilities under subsection
(j)(5)(E); and
``(iii) ensure that Department of Transportation personnel
develop and maintain operational capability--
``(I) for effective inspection, monitoring, prevention,
preparedness, and response authorities related to the
discharge or substantial threat of a discharge of oil or a
hazardous substance from a transportation-related onshore
facility; and
``(II) to protect the environment and natural resources
from the impacts of a discharge or substantial threat of a
discharge of oil or a hazardous substance from a
transportation-related onshore facility.
``(5) Department of the interior.--
``(A) In general.--The President shall delegate the
responsibilities under subparagraph (B) to the Secretary of
the Interior.
``(B) Responsibilities.--The Secretary of the Interior
shall--
``(i) establish and enforce regulations and standards for
procedures, methods, equipment, and other requirements to
prevent and to contain discharges of oil and hazardous
substances from such offshore facilities as the President may
designate;
``(ii) establish and enforce regulations to carry out all
other responsibilities under subsection (j)(5) for such
offshore facilities as the President may designate;
``(iii) have the authority to review and approve of,
disapprove of, or require revisions (if necessary) to
offshore facility response plans under subsection (j)(5) for
such offshore facilities as the President may designate; and
``(iv) ensure that Department of the Interior personnel
develop and maintain operational capability for effective
inspection, monitoring, prevention, and preparedness
authorities related to the discharge or a substantial threat
of a discharge of oil or hazardous material from such
offshore facilities as the President may designate.''.
[[Page H6534]]
SEC. 720. IMPACTS TO INDIAN TRIBES AND PUBLIC SERVICE
DAMAGES.
(a) In General.--Section 1002(b)(2) of the Oil Pollution
Act of 1990 (33 U.S.C. 2702(b)(2)) is amended--
(1) in subparagraph (D) by striking ``or a political
subdivision thereof'' and inserting ``a political subdivision
of a State, or an Indian tribe''; and
(2) in subparagraph (F) by striking ``by a State'' and all
that follows before the period and inserting ``the United
States, a State, a political subdivision of a State, or an
Indian tribe''.
(b) Applicability.--The amendments made by this section
apply to--
(1) any claim arising from an event occurring after the
date of enactment of this Act; and
(2) any claim arising from an event occurring before such
date of enactment, if the claim is brought within the
limitations period applicable to the claim.
SEC. 721. FEDERAL ENFORCEMENT ACTIONS.
Section 309(g)(6)(A) of the Federal Water Pollution Control
Act (33 U.S.C. 1319(g)(6)(A)) is amended by striking ``or
section 311(b)''.
SEC. 722. TIME REQUIRED BEFORE ELECTING TO PROCEED WITH
JUDICIAL CLAIM OR AGAINST THE FUND.
Paragraph (2) of section 1013(c) of the Oil Pollution Act
of 1990 (33 U.S.C. 2713(c)) is amended by striking ``90'' and
inserting ``45''.
SEC. 723. AUTHORIZED LEVEL OF COAST GUARD PERSONNEL.
The authorized end-of-year strength for active duty
personnel of the Coast Guard for fiscal year 2011 is hereby
increased by 300 personnel, above any other level authorized
by law, for implementing the activities of the Coast Guard
under this title, including the amendments made by this
title.
SEC. 724. CLARIFICATION OF MEMORANDUMS OF UNDERSTANDING.
Not later than September 30, 2011, the President (acting
through the head of the appropriate Federal department or
agency) shall implement or revise, as appropriate,
memorandums of understanding to clarify the roles and
jurisdictional responsibilities of the Environmental
Protection Agency, the Coast Guard, the Department of the
Interior, the Department of Transportation, and other Federal
agencies relating to the prevention of oil discharges from
tank vessels, nontank vessels, and facilities subject to the
Oil Pollution Act of 1990.
SEC. 725. BUILD AMERICA REQUIREMENT FOR OFFSHORE FACILITIES.
(a) In General.--Title VI of the Oil Pollution Act of 1990
(33 U.S.C. 2751 et seq.) is amended by adding at the end the
following:
``SEC. 6005. BUILD AMERICA REQUIREMENT FOR OFFSHORE
FACILITIES.
``(a) Build America Requirement.--Except as provided by
subsection (b), a person may not use an offshore facility to
engage in support of exploration, development, or production
of oil or natural gas in, on, above, or below the exclusive
economic zone unless the facility was built in the United
States, including construction of any major component of the
hull or superstructure of the facility.
``(b) Waiver Authority.--A person seeking to charter an
offshore facility in the exclusive economic zone may seek a
waiver of subsection (a). The Secretary may waive subsection
(a) if the Secretary, in consultation with the Secretary of
the Interior and the Secretary of Transportation, finds
that--
``(1) the offshore facility was built in a foreign country
and is under contract, on the date of enactment of this
section, in support of exploration, development, or
production of oil or natural gas in, on, above, or below the
exclusive economic zone;
``(2) an offshore facility built in the United States is
not available within a reasonable period of time, as defined
in subsection (e), or of sufficient quality to perform
drilling operations required under a contract; or
``(3) an emergency requires the use of an offshore facility
built in a foreign country.
``(c) Written Justification and Public Notice of
Nonavailability Waiver.--When issuing a waiver based on a
determination under subsection (b)(2), the Secretary shall
issue a detailed written justification as to why the waiver
meets the requirement of such subsection. The Secretary shall
publish the justification in the Federal Register and provide
the public with 45 days for notice and comment.
``(d) Final Decision.--The Secretary shall approve or deny
any waiver request submitted under subsection (b) not later
than 90 days after the date of receipt of the request.
``(e) Reasonable Period of Time Defined.--For purposes of
subsection (b)(2), the term `reasonable period of time' means
the time needed for a person seeking to charter an offshore
facility in the exclusive economic zone to meet the
requirements in the primary term of the person's lease.''.
(b) Clerical Amendment.--The table of contents contained in
section 2 of such Act is amended by inserting after the item
relating to section 6004 the following:
``Sec. 6005. Build America requirement for offshore facilities.''.
SEC. 726. OIL SPILL RESPONSE VESSEL DATABASE.
(a) Requirement.--Not later than 90 days after the date of
enactment of this Act, the Commandant of the Coast Guard
shall complete an inventory of all vessels operating in the
waters of the United States that are capable of meeting oil
spill response needs designated in the National Contingency
Plan authorized by section 311(d) of the Federal Water
Pollution Control Act (33 U.S.C. 1321(d)).
(b) Categorization.--The inventory required under
subsection (a) shall categorize such vessels by capabilities,
type, function, and location.
(c) Maintenance of Database.--The Commandant shall maintain
a database containing the results of the inventory required
under subsection (a) and update the information in the
database on no less than a quarterly basis.
(d) Availability.--The Commandant may make information
regarding the location and capabilities of oil spill response
vessels available to a Federal On-Scene Coordinator
designated under section 311 of such Act (33 U.S.C. 1321) to
assist in the response to an oil spill or other incident in
the waters of the United States.
SEC. 727. OFFSHORE SENSING AND MONITORING SYSTEMS.
(a) Requirement.--Subtitle A of title IV of the Oil
Pollution Act of 1990 is amended by adding at the end the
following new section:
``SEC. 4119. OFFSHORE SENSING AND MONITORING SYSTEMS.
``(a) In General.--The equipment required to be available
under section 311(j)(5)(D)(iii) of the Federal Water
Pollution Control Act for facilities listed in section
311(j)(5)(C)(iii) of such Act and located in more than 500
feet of water includes sensing and monitoring systems that
meet the requirements of this section.
``(b) Systems Requirements.--Sensing and monitoring systems
required under subsection (a) shall--
``(1) use an integrated, modular, expandable, multi-sensor,
open-architecture design and technology with interoperable
capability;
``(2) be capable of--
``(A) operating for at least 25 years;
``(B) real-time physical, biological, geological, and
environmental monitoring;
``(C) providing alerts in the event of anomalous
circumstances;
``(D) providing docking bases to accommodate spatial
sensors for remote inspection and monitoring; and
``(E) collecting chemical boundary condition data for drift
and flow modeling; and
``(3) include--
``(A) an uninterruptible power source;
``(B) a spatial sensor;
``(C) secure Internet access to real-time physical,
biological, geological, and environmental monitoring data
gathered by the system sensors; and
``(D) a process by which such observation data and
information will be made available to Federal Regulators and
to the system established under section 12304 of Public Law
111-11 (33 U.S.C. 3603).''.
(b) Request for Information.--Within 60 days after the date
of enactment of this Act, the Secretary of the department in
which the Coast Guard is operating shall issue a request for
information to determine the most capable and efficient
domestic systems that meet the requirements under section
4119 of the Oil Pollution Act of 1990, as amended by this
section.
(c) Implementing Regulations.--Within 180 days after the
date of enactment of this Act, the Secretary of the
department in which the Coast Guard is operating shall issue
regulations to implement section 4119 of the Oil Pollution
Act of 1990 as amended by this section.
(d) Clerical Amendment.--The table of contents in section 2
of the Oil Pollution Act of 1990 is amended by adding at the
end of the items relating to such subtitle the following new
item:
``Sec. 4119. Offshore sensing and monitoring systems.''.
SEC. 728. OIL AND GAS EXPLORATION AND PRODUCTION.
Section 502 of the Federal Water Pollution Control Act (33
U.S.C. 1362) is amended--
(1) by striking paragraph (24); and
(2) by redesignating paragraph (25) as paragraph (24).
SEC. 729. LEAVE RETENTION AUTHORITY.
(a) In General.--Chapter 11 of title 14, United States
Code, is amended by inserting after section 425 the
following:
``Sec. 426. Emergency leave retention authority
``(a) In General.--A duty assignment for an active duty
member of the Coast Guard in support of a declaration of a
major disaster or emergency by the President under the Robert
T. Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5121 et seq.) or in response to a spill of national
significance shall be treated, for the purpose of section
701(f)(2) of title 10, as a duty assignment in support of a
contingency operation.
``(b) Definitions.--In this section:
``(1) Spill of national significance.--The term `spill of
national significance' means a discharge of oil or a
hazardous substance that is declared by the Commandant to be
a spill of national significance.
``(2) Discharge.--The term `discharge' has the meaning
given that term in section 1001 of the Oil Pollution Act of
1990 (33 U.S.C. 2701).''.
(b) Clerical Amendment.--The analysis for such chapter is
amended by inserting after the item relating to section 425
the following:
``426. Emergency leave retention authority.''.
SEC. 730. AUTHORIZATION OF APPROPRIATIONS.
(a) Coast Guard.--In addition to amounts made available
pursuant to section 1012(a)(5)(A) of the Oil Pollution Act of
1990
[[Page H6535]]
(33 U.S.C. 2712(a)(5)(A)), there is authorized to be
appropriated to the Secretary of the department in which the
Coast Guard is operating from the Oil Spill Liability Trust
Fund established by section 9509 of the Internal Revenue Code
of 1986 (26 U.S.C. 9509) to carry out the purposes of this
title and the amendments made by this title the following:
(1) For fiscal year 2011, $30,000,000.
(2) For each of fiscal years 2012 through 2015,
$32,000,000.
(b) Environmental Protection Agency.--In addition to
amounts made available pursuant to section 1012 of the Oil
Pollution Act of 1990 (33 U.S.C. 2712), there is authorized
to be appropriated to the Administrator of the Environmental
Protection Agency from the Oil Spill Liability Trust Fund to
implement this title and the amendments made by this title
$10,000,000 for each of fiscal years 2011 through 2015.
(c) Department of Transportation.--In addition to amounts
made available pursuant to section 60125 of title 49, United
States Code, there is authorized to be appropriated to the
Secretary of Transportation from the Oil Spill Liability
Trust Fund to carry out the purposes of this title and the
amendments made by this title the following:
(1) For each of fiscal years 2011 through 2013, $7,000,000.
(2) For each of fiscal years 2014 and 2015, $6,000,000.
TITLE VIII--MISCELLANEOUS PROVISIONS
SEC. 801. REPEAL OF CERTAIN TAXPAYER SUBSIDIZED ROYALTY
RELIEF FOR THE OIL AND GAS INDUSTRY.
(a) Provisions Relating to Planning Areas Offshore
Alaska.--Section 8(a)(3)(B) of the Outer Continental Shelf
Lands Act (43 U.S.C. 1337(a)(3)(B)) is amended by striking
``and in the Planning Areas offshore Alaska'' after ``West
longitude''.
(b) Provisions Relating to Naval Petroleum Reserve in
Alaska.--Section 107 of the Naval Petroleum Reserves
Production Act of 1976 (as transferred, redesignated, moved,
and amended by section 347 of the Energy Policy Act of 2005
(119 Stat. 704)) is amended--
(1) in subsection (i) by striking paragraphs (2) through
(6); and
(2) by striking subsection (k).
SEC. 802. CONSERVATION FEE.
(a) Establishment.--The Secretary shall, within 180 days
after the date of enactment of this Act, issue regulations to
establish an annual conservation fee for all oil and gas
leases on Federal onshore and offshore lands.
(b) Amount.--The amount of the fee shall be, for each
barrel or barrel equivalent produced from land that is
subject to a lease from which oil or natural gas is produced
in a calendar year, $2 per barrel of oil and 20 cents per
million BTU of natural gas in 2010 dollars.
(c) Assessment and Collection.--The Secretary shall assess
and collect the fee established under this section.
(d) Regulations.--The Secretary may issue regulations to
prevent evasion of the fee under this section.
(e) Sunset.--This section and the fee established under
this section shall expire on December 31, 2021.
SEC. 803. LEASING ON INDIAN LANDS.
Nothing in this Act modifies, amends, or affects leasing on
Indian lands as currently carried out by the Bureau of Indian
Affairs.
SEC. 804. OUTER CONTINENTAL SHELF STATE BOUNDARIES.
(a) General.--Not later than 2 years after the date of
enactment of this Act, the President, acting through the
Secretary of the Interior, shall publish a final
determination under section 4(a)(2) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1333(a)(2)) of the boundaries of
coastal States projected seaward to the outer margin of the
Outer Continental Shelf.
(b) Notice and Comment.--In determining the projected
boundaries specified in subsection (a), the Secretary shall
comply with the notice and comment requirements under chapter
5 of title 5, United States Code.
(c) Savings Clause.--The determination and publication of
projected boundaries under subsection (a) shall not be
construed to alter, limit, or modify the jurisdiction,
control, or any other authority of the United States over the
Outer Continental Shelf.
SEC. 805. LIABILITY FOR DAMAGES TO NATIONAL WILDLIFE REFUGES.
Section 4 of the National Wildlife Refuge System
Administration Act of 1966 (16 U.S.C. 668dd) is amended by
adding at the end the following new subsection:
``(p) Destruction or Loss of, or Injury to, Refuge
Resources.--
``(1) Liability.--
``(A) Liability to united states.--Any person who destroys,
causes the loss of, or injures any refuge resource is liable
to the United States for an amount equal to the sum of--
``(i) the amount of the response costs and damages
resulting from the destruction, loss, or injury; and
``(ii) interest on that amount calculated in the manner
described under section 1005 of the Oil Pollution Act of 1990
(33 U.S.C. 2705).
``(B) Liability in rem.--Any instrumentality, including a
vessel, vehicle, aircraft, or other equipment, that destroys,
causes the loss of, or injures any refuge resource shall be
liable in rem to the United States for response costs and
damages resulting from such destruction, loss, or injury to
the same extent as a person is liable under subparagraph (A).
``(C) Defenses.--A person is not liable under this
paragraph if that person establishes that--
``(i) the destruction or loss of, or injury to, the refuge
resource was caused solely by an act of God, an act of war,
or an act or omission of a third party, and the person acted
with due care;
``(ii) the destruction, loss, or injury was caused by an
activity authorized by Federal or State law; or
``(iii) the destruction, loss, or injury was negligible.
``(D) Limits to liability.--Nothing in sections 30501 to
30512 or section 30706 of title 46, United States Code, shall
limit the liability of any person under this section.
``(2) Response actions.--The Secretary may undertake or
authorize all necessary actions to prevent or minimize the
destruction or loss of, or injury to, refuge resources, or to
minimize the imminent risk of such destruction, loss, or
injury.
``(3) Civil actions for response costs and damages.--
``(A) In general.--The Attorney General, upon request of
the Secretary, may commence a civil action against any person
or instrumentality who may be liable under paragraph (1) for
response costs and damages. The Secretary, acting as trustee
for refuge resources for the United States, shall submit a
request for such an action to the Attorney General whenever a
person may be liable for such costs or damages.
``(B) Jurisdiction and venue.--An action under this
subsection may be brought in the United States district court
for any district in which--
``(i) the defendant is located, resides, or is doing
business, in the case of an action against a person;
``(ii) the instrumentality is located, in the case of an
action against an instrumentality; or
``(iii) the destruction of, loss of, or injury to a refuge
resource occurred.
``(4) Use of recovered amounts.--Response costs and damages
recovered by the Secretary under this subsection shall be
retained by the Secretary in the manner provided for in
section 107(f)(1) of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980 (42 U.S.C.
9607(f)(1)) and used as follows:
``(A) Response costs.--Amounts recovered by the United
States for costs of response actions and damage assessments
under this subsection shall be used, as the Secretary
considers appropriate--
``(i) to reimburse the Secretary or any other Federal or
State agency that conducted those activities; and
``(ii) after reimbursement of such costs, to restore,
replace, or acquire the equivalent of any refuge resource.
``(B) Other amounts.--All other amounts recovered shall be
used, in order of priority--
``(i) to restore, replace, or acquire the equivalent of the
refuge resources that were the subject of the action,
including the costs of monitoring the refuge resources;
``(ii) to restore degraded refuge resources of the refuge
that was the subject of the action, giving priority to refuge
resources that are comparable to the refuge resources that
were the subject of the action; and
``(iii) to restore degraded refuge resources of other
refuges.
``(5) Definitions.--In this subsection, the term--
``(A) `damages' includes--
``(i) compensation for--
``(I)(aa) the cost of replacing, restoring, or acquiring
the equivalent of a refuge resource; and
``(bb) the value of the lost use of a refuge resource
pending its restoration or replacement or the acquisition of
an equivalent refuge resource; or
``(II) the value of a refuge resource if the refuge
resource cannot be restored or replaced or if the equivalent
of such resource cannot be acquired;
``(ii) the cost of conducting damage assessments;
``(iii) the reasonable cost of monitoring appropriate to
the injured, restored, or replaced refuge resource; and
``(iv) the cost of enforcement actions undertaken by the
Secretary in response to the destruction or loss of, or
injury to, a refuge resource;
``(B) `response costs' means the costs of actions taken or
authorized by the Secretary to minimize destruction or loss
of, or injury to, refuge resources, or to minimize the
imminent risks of such destruction, loss, or injury,
including costs related to seizure, forfeiture, storage, or
disposal arising from liability, or to monitor ongoing
effects of incidents causing such destruction, loss, or
injury under this subsection; and
``(C) `refuge resource' means any living or nonliving
resource of a refuge that contributes to the conservation,
management, and restoration mission of the System, including
living or nonliving resources of a marine national monument
that may be managed as a unit of the System.''.
SEC. 806. STRENGTHENING COASTAL STATE OIL SPILL PLANNING AND
RESPONSE.
The Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et
seq.) is amended adding at the end the following new section:
``SEC. 320. STRENGTHENING COASTAL STATE OIL SPILL RESPONSE
AND PLANNING.
``(a) Grants to States.--The Secretary may make grants to
eligible coastal states--
[[Page H6536]]
``(1) to revise management programs approved under section
306 (16 U.S.C. 1455) to identify and implement new
enforceable policies and procedures to ensure sufficient
response capabilities at the state level to address the
environmental, economic, and social impacts of oil spills or
other accidents resulting from Outer Continental Shelf energy
activities with the potential to affect any land or water use
or natural resource of the coastal zone; and
``(2) to review and revise where necessary applicable
enforceable policies within approved state management
programs affecting coastal energy activities and energy to
ensure that these policies are consistent with--
``(A) other emergency response plans and policies developed
under Federal or State law; and
``(B) new policies and procedures developed under paragraph
(1); and
``(3) after a State has adopted new or revised enforceable
policies and procedures under paragraphs (1) and (2)--
``(A) the State shall submit the policies and procedures to
the Secretary; and
``(B) the Secretary shall notify the State whether the
Secretary approves or disapproves the incorporation of the
policies and procedures into the State's management program
pursuant to section 306(e).
``(b) Elements.--New enforceable policies and procedures
developed by coastal states with grants awarded under this
section shall consider, but not be limited to--
``(1) other existing emergency response plans, procedures
and enforceable policies developed under other Federal or
State law that affect the coastal zone;
``(2) identification of critical infrastructure essential
to facilitate spill or accident response activities;
``(3) identification of coordination, logistics and
communication networks between Federal and State government
agencies, and between State agencies and affected local
communities, to ensure the efficient and timely dissemination
of data and other information;
``(4) inventories of shore locations and infrastructure and
equipment necessary to respond to oil spills or other
accidents resulting from Outer Continental Shelf energy
activities;
``(5) identification and characterization of significant or
sensitive marine ecosystems or other areas possessing
important conservation, recreational, ecological, historic,
or aesthetic values;
``(6) inventories and surveys of shore locations and
infrastructure capable of supporting alternative energy
development; and
``(7) other information or actions as may be necessary.
``(c) Guidelines.--The Secretary shall, within 180 days
after the date of enactment of this section and after
consultation with the coastal states, publish guidelines for
the application for and use of grants under this section.
``(d) Participation.--A coastal state shall provide
opportunity for public participation in developing new
enforceable policies and procedures under this section
pursuant to sections 306(d)(1) and 306(e), especially by
relevant Federal agencies, other coastal state agencies,
local governments, regional organizations, port authorities,
and other interested parties and stakeholders, public and
private, that are related to, or affected by Outer
Continental Shelf energy activities.
``(e) Annual Grants.--
``(1) In general.--For each of fiscal years 2011 through
2015, the Secretary may make a grant to a coastal state to
develop new enforceable polices and procedures as required
under this section.
``(2) Grant amounts and limit on awards.--The amount of any
grant to any one coastal State under this section shall not
exceed $750,000 for any fiscal year. No coastal state may
receive more than two grants under this section.
``(3) No state matching contribution required.--As it is in
the national interest to be able to respond efficiently and
effectively at all levels of government to oil spills and
other accidents resulting from Outer Continental Shelf energy
activities, a coastal state shall not be required to
contribute any portion of the cost of a grant awarded under
this section.
``(4) Secretarial review and limit on awards.--After an
initial grant is made to a coastal state under this section,
no subsequent grant may be made to that coastal state under
this section unless the Secretary finds that the coastal
state is satisfactorily developing revisions to address
offshore energy impacts. No coastal state is eligible to
receive grants under this section for more than 2 fiscal
years.
``(f) Applicability.--The requirements of this section
shall only apply if appropriations are provided to the
Secretary to make grants under this section. This section
shall not be construed to convey any new authority to any
coastal state, or repeal or supersede any existing authority
of any coastal state, to regulate the siting, licensing,
leasing, or permitting of energy facilities in areas of the
Outer Continental Shelf under the administration of the
Federal Government. Nothing in this section repeals or
supersedes any existing coastal state authority.
``(g) Assistance by the Secretary.--The Secretary as
authorized under section 310(a) and to the extent
practicable, shall make available to coastal states the
resources and capabilities of the National Oceanic and
Atmospheric Administration to provide technical assistance to
the coastal states to prepare revisions to approved
management programs to meet the requirements under this
section.''.
SEC. 807. INFORMATION SHARING.
Section 388(b) of the Energy Policy Act of 2005 (43 U.S.C.
1337 note) is amended by adding at the end the following:
``(4) Availability of data and information.--All heads of
departments and agencies of the Federal Government shall,
upon request of the Secretary, provide to the Secretary all
data and information that the Secretary deems necessary for
the purpose of including such data and information in the
mapping initiative, except that no department or agency of
the Federal Government shall be required to provide any data
or information that is privileged or proprietary.''.
SEC. 808. LIMITATION ON USE OF FUNDS.
None of the funds authorized or made available by this Act
may be used to carry out any activity or pay any costs for
removal or damages for which a responsible party (as such
term is defined in section 1001 of the Oil Pollution Act of
1990 (33 U.S.C. 2701)) is liable under the Oil Pollution Act
of 1990 (33 U.S.C. 2701 et seq.) or other law.
SEC. 809. ENVIRONMENTAL REVIEW.
Section 390 of the Energy Policy Act of 2005 (Public Law
109-58; 42 U.S.C. 15942) is repealed.
SEC. 810. FEDERAL RESPONSE TO STATE PROPOSALS TO PROTECT
STATE LANDS AND WATERS.
Any State shall be entitled to timely decisions regarding
permit applications or other approvals from any Federal
official, including the Secretary of the Interior or the
Secretary of Commerce, for any State or local government
response activity to protect State lands and waters that is
directly related to the discharge of oil determined to be a
spill of national significance. Within 48 hours of the
receipt of the State application or request for approval, the
Federal official shall provide a clear determination on the
permit application or approval request to the State, or
provide a definite date by which the determination shall be
made to the State. If the Federal official fails to meet
either of these deadlines, the permit application is presumed
to be approved or other approval granted.
The CHAIR. No amendment to that amendment in the nature of a
substitute is in order except those printed in part B of the report.
Each amendment may be offered only in the order printed in the report,
by a Member designated in the report, shall be considered read, shall
be debatable for the time specified in the report, equally divided and
controlled by the proponent and an opponent, shall not be subject to
amendment, and shall not be subject to a demand for division of the
question.
Amendment No. 1 Offered by Mr. Rahall
The CHAIR. It is now in order to consider amendment No. 1 printed in
part B of House Report 111-582.
Mr. RAHALL. Mr. Chairman, I have an amendment at the desk.
The CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
Page 150, strike lines 15 and 16 (and redesignate the
subsequent subparagraphs accordingly).
Page 37, line 7, strike ``public health and''.
Page 37, line 11, strike ``public health and''.
Page 39, line 8, strike ``human health and''.
Page 47, line 15, strike ``public health and''.
Page 66, line 11, strike ``and human health''.
Page 87, line 15, strike ``and human health''.
Page 180, strike lines 17 through 23 and insert the
following:
``(V) require the public disclosure of all ingredients,
including the chemical and common name of such ingredients,
contained in any such dispersant, chemical, or substance; and
Page 181, strike lines 17 through 23 and insert the
following:
``(II) require the public disclosure of all ingredients,
including the chemical and common name of such ingredients,
contained in any such dispersant, chemical, or substance; and
Page 169, line 18, insert ``PROCEDURES FOR CLAIMS AGAINST
FUND;'' before ``INFORMATION ON CLAIMS'' (and conform the
table of contents accordingly).
Page 169, after line 18, insert the following:
(a) Procedures for Claims Against Fund.--Section 1013(e) of
the Oil Pollution Act of 1990 (33 U.S.C. 2713(e)) is amended
by adding at the end the following: ``In the event of a spill
of national significance, the President may exercise the
authorities under this section to ensure that the
presentation, filing, processing, settlement, and
adjudication of claims occurs within the States and local
governments affected by such spill to the greatest extent
practicable.''.
Page 169, line 19, strike ``(a) In General.--'' and insert
``(b) Information on Claims.--''.
Page 170, line 10, strike ``(b)'' and insert ``(c)''.
Page 170, line 14, strike ``(c)'' and insert ``(d)''.
Add at the end of title VII the following:
[[Page H6537]]
SEC. 731. CLARIFICATION OF LIABILITY UNDER OIL POLLUTION ACT
OF 1990.
The Oil Pollution Act of 1990 is amended--
(1) in section 1013 (33 U.S.C. 2713), by inserting after
subsection (d) the following:
``(e) Limitation on Release of Liability.--No release of
liability in connection with compensation received by a
claimant under this Act shall apply to liability for any tope
of harm unless--
``(1) the claimant presented a claim under subsection (a)
with respect to such type of harm; and
``(2) the claimant received compensation for such type of
harm, from the responsible party or from guarantor of the
source designated under section 1014(a), in connection with
such release.''; and
(2) in section 1018 (33 U.S.C. 2718), by--
(A) striking ``or'' at the end of paragraph (1);
(B) striking the period at the end of paragraph (2) and
inserting ``; and''; and
(C) inserting after paragraph (2) the following:
``(3) with respect to a claim described in section 1013(e),
affect, or be construed or interpreted to affect or modify in
any way, the obligations or liabilities of any person under
other Federal law.''.
Page 223, after line 13, insert the following (and conform
the table of contents of the bill accordingly):
SEC. 732. SALVAGE ACTIVITIES.
Section 311 of the Federal Water Pollution Control Act (33
U.S.C. 1321) is amended--
(1) in subsection (a)(2)(D) by inserting ``or salvage
activities'' after ``removal''; and
(2) in subsection (c)(4)(A) by inserting ``or conducting
salvage activities'' after ``advice''.
Page 23, line 4, insert ``safety training firms,'' after
``labor organizations,''.
Page 8, line 7, strike ``Biomass or landfill'' and insert
``Landfill''.
Page 238, after line 19, insert the following:
SEC. 811. GOVERNMENT ACCOUNTABILITY OFFICE EVALUATION.
(a) Evaluation.--The Comptroller General shall conduct an
evaluation of the Department of the Interior to determine--
(1) whether the reforms carried out under this Act and the
amendments made by this Act address concerns of the
Government Accountability Office and the Inspector General
expressed before the date of enactment of this Act;
(2) whether the increased hiring authority given to the
Secretary of the Interior under this Act and the amendments
made by this Act has resulted in the Department of the
Interior being more effective in addressing its oversight
missions; and
(3) whether there has been a sufficient reduction in the
conflict between mission and interest within the Department
of the Interior.
(b) Report.--Not later than 3 years after the date of
enactment of this Act, the Comptroller General shall submit
to Congress a report containing the results of the evaluation
conducted under subsection (a).
Page 24, after line 12, insert the following:
(6) Role of oil or gas operators and related industries.--
The Secretary shall ensure that any cooperative agreement or
other collaboration with a representative of an oil or gas
operator or related industry in relation to a training
program established under paragraph (4) or paragraph (5) is
limited to consultation regarding curricula and does not
extend to the provision of instructional personnel.
Page 238, after line 19, insert the following new section:
SEC. 812. STUDY ON RELIEF WELLS.
Not later than 60 days after the date of enactment of this
Act, the Secretary shall enter into an arrangement with the
National Academy of Engineering under which the Academy
shall, not later than 1 year after such arrangement is
entered into, submit to the Secretary and to Congress a
report that assesses the economic, safety, and environmental
impacts of requiring that 1 or more relief wells be drilled
in tandem with the drilling of some or all wells subject to
the requirements of this Act and the amendments made by this
Act.
Page 223, after line 13, insert the following (and conform
the table of contents accordingly):
SEC. 733. REQUIREMENT FOR REDUNDANCY IN RESPONSE PLANS.
(a) Requirement.--Section 311(j)(5)(D) of the Federal Water
Pollution Control Act (33 U.S.C. 1331(j)(5)(D)) is amended by
redesignating clauses (v) and (vi) as clauses (vii) and
(viii), and by inserting after clause (iv) the following new
clauses:
``(v) include redundancies that specify response actions
that will be taken if other response actions specified in the
plan fail;
``(vi) be vetted by impartial experts;''.
(b) Condition of Permit.--The Outer Continental Shelf Lands
Act (43 U.S.C. 1331 et seq.) is amended by adding at the end
the following new section:
``SEC. 32. RESPONSE PLAN REQUIRED FOR PERMIT OR LICENSE
AUTHORIZING DRILLING FOR OIL AND GAS.
``The Secretary may not issue any license or permit
authorizing drilling for oil and gas on the Outer Continental
Shelf unless the applicant for the license or permit has a
response plan approved under section 311(j)(5)(D) of the
Federal Water Pollution Control Act (33 U.S.C. 1331(j)(5)(D))
for the vessel or facility that will be used to conduct such
drilling.''.
Add at the end the following new title:
TITLE __--STUDY OF ACTIONS TO IMPROVE THE ACCURACY OF COLLECTION OF
ROYALTIES
SEC. __1. SHORT TITLE.
This title may be cited as the ``Study of Ways to Improve
the Accuracy of the Collection of Federal Oil, Condensate,
and Natural Gas Royalties Act of 2010''.
SEC. __2. STUDY OF ACTIONS TO IMPROVE THE ACCURACY OF
COLLECTION OF FEDERAL OIL, CONDENSATE, AND
NATURAL GAS ROYALTIES.
The Secretary of the Interior shall seek to enter into an
arrangement with the National Academy of Engineering under
which the Academy, by not later than six months after the
date of the enactment of this Act, shall study and report to
the Secretary regarding whether the accuracy of collection of
royalties on production of oil, condensate, and natural gas
under leases of Federal lands (in eluding submerged and deep
water lands) and Indian lands would be improved by any of the
following:
(1) Requiring the installation of digital meters,
calibrated at least monthly to an absolute zero value, for
all lands from which natural gas (including condensate) is
produced under such leases.
(2) Requiring that--
(A) the size of every orifice plate on each natural gas
well operated under such leases be inspected at least
quarterly by the Secretary; and
(B) chipped orifice plates and wrong-sized orifice plates
be replaced immediately after those inspections and reported
to the Secretary for retroactive volume measurement
corrections and royalty payments with interest of 8 percent
compounded monthly.
(3) Requiring that any plug valves that are in natural gas
gathering lines be removed and replaced with ball valves.
(4) Requiring that--
(A) all meter runs should be opened for inspection by the
Secretary and the producer at all times; and
(B) any welding or closing of the meter runs leading to the
orifice plates should be prohibited unless authorized by the
Secretary.
(5) Requiring the installation of straightening vanes
approximately 10 feet before natural gas enters each orifice
meter, including each master meter and each sales meter.
(6) Requiring that all master meters be inspected and the
results of such inspections be made available to the
Secretary and the producers immediately.
(7) Requiring that--
(A) all sampling of natural gas for heating content
analysis be performed monthly upstream of each natural gas
meter, including upstream of each master meter;
(B) records of such sampling and heating content analysis
be maintained by the purchaser and made available to the
Secretary and to the producer monthly;
(C) probes for such upstream sampling be installed upstream
within three feet of each natural gas meter;
(D) any oil and natural gas lease for which heat content
analysis is falsified shall be subject to cancellation;
(E) natural gas sampling probes be located--
(i) upstream of the natural gas meter at all times;
(ii) within a few feet of the natural gas meter; and
(iii) after the natural gas goes through a Welker or Y-Z
vanishing chamber; and
(F) temperature probes and testing probes be located
between the natural gas sampling probe and the orifice of the
natural gas meter.
(8) Prohibiting the dilution of natural gas with inert
nitrogen or inert carbon dioxide gas for royalty
determination, sale, or resale at any point.
(9) Requiring that both the measurement of the volume of
natural gas and the heating content analyses be reported only
on the basis of 14.73 PSI and 60 degrees Fahrenheit,
regardless of the elevation above sea level of such volume
measurement and heating content analysis, for both purchases
and sales of natural gas.
(10) Prohibiting the construction of bypass pipes that go
around the natural gas meter, and imposing criminal penalties
for any such construction or subsequent removal including,
but not limited to, automatic cancellation of the lease.
(11) Requiring that all natural gas sold to consumers have
a minimum BTU content of 960 at an atmospheric pressure of
14.73 PSI and be at a temperature of 60 degrees Fahrenheit,
as required by the State of Wyoming Public Utilities
Commission.
(12) Requiring that all natural gas sold in the USA will be
on a MMBTU basis with the BTU content adjusted for elevation
above sea level in higher altitudes. Thus all natural gas
meters must correct for BTU content in higher elevations
(altitudes).
(13) Issuance by the Secretary of rules for the measurement
at the wellhead of the standard volume of natural gas
produced, based on independent industry standards such as
those suggested by the American Society of Testing Materials
(ASTM).
(14) Requiring use of the fundamental orifice meter mass
flow equation, as revised in 1990, for calculating the
standard volume of natural gas produced.
(15) Requiring the use of Fpv in standard volume
measurement computations as described in the 1992 American
Gas Association Report No. 8 entitled Compressibility Factor
of Natural Gas and Other Related Hydrocarbon Gases.
[[Page H6538]]
(16) Requiring that gathering lines must be constructed so
as to have as few angles and turns as possible, with a
maximum of three angles, before they connect with the natural
gas meter.
(17) Requiring that for purposes of reporting the royalty
value of natural gas, condensate, oil, and associated natural
gases, such royalty value must be based upon the natural gas'
condensate's, oil's, and associated natural gases' arm's
length, independent market value, as reported in independent,
respected market reports such as Platts or Bloombergs, and
not based upon industry controlled posted prices, such as
Koch's.
(18) Requiring that royalties be paid on all the condensate
recovered through purging gathering lines and pipelines with
a cone-shaped device to push out condensate (popularly
referred to as a pig) and on condensate recovered from
separators, dehydrators, and processing plants.
(19) Requiring that all royalty deductions for dehydration,
treating, natural gas gathering, compression, transportation,
marketing, removal of impurities such as carbon dioxide
(CO2), nitrogen (N2), hydrogen sulphide
(H2S), mercaptain (HS), helium (He), and other
similar charges on natural gas, condensate, and oil produced
under such leases that are now in existence be eliminated.
(20) Requiring that at all times--
(A) the quantity, quality, and value obtained for natural
gas liquids (condensate) be reported to the Secretary; and
(B) such reported value be based on fair independent arm's
length market value.
(21) Issuance by the Secretary of regulations that prohibit
venting or flaring (or both) of natural gas in cases for
which technology exists to reasonably prevent it, strict
enforcement of such prohibitions, and cancellation of leases
for violations.
(22) Requiring lessees to pay full royalties on any natural
gas that is vented, flared, or otherwise avoidably lost.
(23)(A) Requiring payment of royalties on carbon dioxide at
the wellhead used for tertiary oil recovery from depleted oil
fields on the basis of 5 percent of the West Texas
Intermediate crude oil fair market price to be used for one
MCF (1,000 cubic feet) of carbon dioxide gas.
(B) Requiring that--
(i) carbon dioxide used for edible purposes should be
subjected to a royalty per thousand cubic feet (MCF) on the
basis of the sales price at the downstream delivery point
without deducting for removal of impurities, processing,
transportation, and marketing costs;
(ii) such price to apply with respect to gaseous forms,
liquid forms, and solid (dry ice) forms of carbon dioxide
converted to equivalent MCF; and
(iii) such royalty to apply with respect to both a direct
producer of carbon dioxide and purchases of carbon dioxide
from another person that is either affiliated or not
affiliated with the purchaser.
(24) Requiring that--
(A) royalties be paid on the fair market value of nitrogen
extracted from such leases that is used industrially for well
stimulation, helium recovery, or other uses; and
(B) royalties be paid on the fair market value of
ultimately processed helium recovered from such leases.
(25) Allowing only 5 percent of the value of the elemental
sulfur recovered during processing of hydrogen sulfide gas
from such leases to be deducted for processing costs in
determining royalty payments.
(26) Requiring that all heating content analysis of natural
gas be conducted to a minimum level of C15.
(27) Eliminating artificial conversion from dry BTU to wet
BTU, and requiring that natural gas be analyzed and royalties
paid for at all times on the basis of dry BTU only.
(28) Requiring that natural gas sampling be performed at
all times with a floating piston cylinder container at the
same pressure intake as the pressure of the natural gas
gathering line.
(29) Requiring use of natural gas filters with a minimum of
10 microns, and preferably 15 microns, both in the intake to
natural gas sampling containers and in the exit from the
natural gas sampling containers into the chromatograph.
(30) Mandate the use of a Quad Unit for both portable and
stationary chromatographs in order to correct for the
presence of nitrogen and oxygen, if any, in certain natural
gas streams.
(31) Require the calibration of all chromatograph equipment
every three months and the use of only American Gas
Association-approved standard comparison containers for such
calibration.
(32) Requiring payment of royalties on any such natural gas
stored on Federal or Indian lands on the basis of
corresponding storage charges for the use of Federal or
Indian lands, respectively, for such storage service.
(33) Imposing penalties for the intentional nonpayment of
royalties for natural gas liquids recovered--
(A) from purging of natural gas gathering lines and natural
gas pipelines; or
(B) from field separators, dehydrators, and processing
plants,
including cancellation of oil and natural gas leases and
criminal penalties.
(34) Requiring that the separator, dehydrator, and natural
gas meter be located within 100 feet of each natural gas
wellhead.
(35) Requiring that BTU heating content analysis be
performed when the natural gas is at a temperature of 140 to
150 degrees Fahrenheit at all times, as required by the
American Gas Association (AGA) regulations.
(36) Requiring that heating content analysis and volume
measurements are identical at the sales point to what they
are at the purchase point, after allowing for a small volume
for leakage in old pipes, but with no allowance for heating
content discrepancy.
(37) Verification by the Secretary that the specific
gravity of natural gas produced under such leases, as
measured at the meter run, corresponds to the heating content
analysis data for such natural gas, in accordance with the
Natural Gas Processors Association Publication 2145-71(1),
entitled ``Physical Constants Of Paraffin Hydrocarbons And
Other Components Of Natural Gas'', and reporting of all
discrepancies immediately.
(38) Prohibiting all deductions on royalty payments for
marketing of natural gas, condensate, and oil by an affiliate
or agent.
(39) Requiring that all standards of the American Petroleum
Institute, the American Gas Association, the Gas Processors
Association, and the American Society of Testing Materials,
Minerals Management Service Order No. 5, and all other
Minerals Management Service orders be faithfully observed and
applied, and willful misconduct of such standards and orders
be subject to oil and gas lease cancellation.
SEC. __3. DEFINITIONS.
In this title:
(1) Covered lands.--The term ``covered lands'' means--
(A) all Federal onshore lands and offshore lands that are
under the administrative jurisdiction of the Department of
the Interior for purposes of oil and gas leasing; and
(B) Indian onshore lands.
(2) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
At the end of subtitle A of title II, add the following new
section:
SEC. 224. REPORT ON ENVIRONMENTAL BASELINE STUDIES.
The Secretary of the Interior shall report to Congress
within 6 months after the date of enactment of this Act on
the costs of baseline environmental studies to gather,
analyze, and characterize resource data necessary to
implement the Outer Continental Shelf Lands Act (43 U.S.C.
1331 et seq.). The Secretary shall include in the report
proposals of fees or other ways to recoup such costs from
persons engaging or seeking to engage in activities on the
Outer Continental Shelf to which that Act applies.
At the end of title III add the following new section:
SEC. 321. APPLICATION OF ROYALTY TO OIL THAT IS SAVED,
REMOVED, SOLD, OR DISCHARGED UNDER OFFSHORE OIL
AND GAS LEASES.
Section 8(a) of the Outer Continental Shelf Lands Act (43
U.S.C. 1337(a)) is further amended by adding at the end the
following new paragraph:
``(10)(A) Any royalty under a lease under this section
shall apply to all oil that is saved, removed, sold, or
discharged, without regard to whether any of the oil is
unavoidably lost or used on, or for the benefit of, the
lease.
``(B) In this paragraph the term `discharged' means any
emission (other than natural seepage), intentional or
unintentional, and includes, but is not limited to, spilling,
leaking, pumping, pouring, emitting, emptying, or dumping.''.
Page 82, line 24, before ``The Secretary'' insert the
following:
(1) In general.--
Page 83, line 4, strike ``(1)'' and insert ``(A)''.
Page 83, line 7, strike ``(2)'' and insert ``(B)''.
Page 83, line 11, strike ``(3)'' and insert ``(C)''.
Page 83, line 15, strike ``(4)'' and insert ``(D)''.
Page 83, line 19, strike ``(5)'' and insert ``(E)''.
Page 83, line 20, strike ``(6)'' and insert ``(F)''.
Page 83, after line 22, insert the following:
``(2) Civil penalty.--Any chief executive officer who makes
a false certification under paragraph (1) shall be liable for
a civil penalty under section 24.
Page 129, after line 19, insert the following:
(4) Citizen advisory council.--
(A) In general.--The Gulf Coast Restoration Task Force
shall create a Citizen Advisory Council made up of
individuals who--
(i) are local residents of the Gulf of Mexico region;
(ii) are stakeholders who are not from the oil and gas
industry or scientific community;
(iii) include business owners, homeowners, and local
decisionmakers; and
(iv) are a balanced representation geographically and in
diversity among the interests of its members.
(B) Function.--The Council shall provide recommendations to
the Task Force regarding its work.
At the end of subtitle A of title II add the following new
section:
SEC. 225. CUMULATIVE IMPACTS ON MARINE MAMMAL SPECIES AND
STOCKS AND SUBSISTENCE USE.
Section 20 of the Outer Continental Shelf Lands Act (43
U.S.C. 1346) is further amended by adding at the end the
following:
``(h) Cumulative Impacts on Marine Mammal Species and
Stocks and Subsistence Use.--In determining, pursuant to
subparagraphs (A)(i) and (D)(i) of section 101(a)(5) of
[[Page H6539]]
the Marine Mammal Protection Act of 1972 (16
U.S.C.1371(a)(5)), whether takings from specified activities
administered under this title will have a negligible impact
on a marine mammal species or stock, and not have an
unmitigable adverse impact on the availability of such
species or stock for taking for subsistence uses, the
Secretary of Commerce or Interior shall incorporate any
takings of such species or stock from any other reasonably
foreseeable activities administered under this Act.''.
Page 145, line 3, insert ``, except for the assessment for
the Great Lakes Coordination Region, for which the Regional
Coordination Council for such Coordination Region shall only
identify the Great Lakes Coordination Region's renewable
energy resources, including current and potential renewable
energy resources'' after ``potential energy resources''.
Page 147, line 23, insert ``, except for the Strategic Plan
for the Great Lakes Coordination Region which shall identify
only areas with potential for siting and developing renewable
energy resources in the Great Lakes Coordination Region''
after ``Strategic Plan''.
The CHAIR. Pursuant to House Resolution 1574, the gentleman from West
Virginia (Mr. Rahall) and a Member opposed each will control 10
minutes.
The Chair recognizes the gentleman from West Virginia.
Mr. RAHALL. I yield myself such time as I may consume.
Mr. Chairman, the amendment incorporates a number of constructive
proposals from my colleagues which I believe significantly improve the
CLEAR Act. Some of these proposals affect the provisions of the bill
under our Natural Resources Committee's jurisdiction while others
address the title of the bill that was added by Chairman Oberstar's T&I
Committee.
In addition to a number of technical changes, this amendment also
contains language that will improve the management of the new training
academy for oil and gas inspectors that has been established in this
bill. It holds CEOs more accountable for the actions of their
companies. It ensures that, even when you spill the public's oil, you
still pay the royalties that are due to the American people, and it
also leads to a more accurate collection of royalties for natural gas.
This amendment also studies the issue of potentially requiring relief
wells to be drilled at the same time as the primary well. These are
noncontroversial, good government, and good policy provisions. I urge
my colleagues to support them.
I reserve the balance of my time.
Mr. HASTINGS of Washington. Mr. Chairman, I rise to claim the time in
opposition.
The CHAIR. The gentleman is recognized for 10 minutes.
Mr. HASTINGS of Washington. I yield myself 3 minutes.
Mr. Chairman, this amendment consolidates 17 Democrat amendments and
one Republican amendment. Inside this lengthy amendment are a number of
significant changes to oil and gas policies, royalties, collections,
and studies. That might be fine, but I am not aware that any of these
provisions have been subject to hearings in our Committee on Natural
Resources, and I think that we should certainly have a better
understanding of the impacts before we pass this on the House floor.
{time} 1450
I want to point out two provisions in this amendment. There is one
provision stripping biomass from the regulation from the bureau. Now
this, I think, is a fine amendment, but I think it would have been
better accomplished if we had simply made in order the Lummis
amendment. The gentlelady from Wyoming had an amendment to take out all
of the language on onshore activity. That would have been a much, much
better way to do it, especially in light of the fact that the
administration in this regard says that, and I quote, It would be most
effective if this reorganization focused exclusively on the OCS at this
time, end quote. But, of course, that wasn't done. So this is, I
suppose, a small victory.
The second, however, is a much more insidious amendment that includes
a cumulative impact of oil and gas on marine mammals. Now I don't know
exactly--and I don't think anybody really knows--how to measure what
those impacts are, plus or minus, good or bad. I think it would be good
for us, from the standpoint of making policy, to know the full impact
of that. And, really, the only way you can know the full impact of that
is to have hearings on this subject. To my knowledge, we have not had
any hearings on that.
So all in all, I would say, Mr. Chairman, this seems to be a pattern
that we see on a regular basis on this floor where there are
amendments--we saw this earlier today. We saw a whole bill, for
example, brought to the floor today that was introduced literally
minutes before it was debated. That is not the way the American people
think we ought to do business here. We ought to look at these things in
a way that we can make the proper decisions. And these two issues that
I highlight in this manager's amendment, in my view, fall within that
category. So I am disappointed in the way this is being done, probably
more than what is the content of the manager's amendment. Therefore, I
am left only to oppose the manager's amendment.
I reserve the balance of my time.
Mr. RAHALL. Mr. Chairman, I yield 1 minute to the gentlelady from
Wisconsin, Ms. Gwen Moore, who has been very helpful to us in drafting
this bill.
Ms. MOORE of Wisconsin. Mr. Chair, I want to thank Chairman Rahall
for yielding and including in his manager's amendment a provision I
authored that would ensure that citizens living in the gulf coast
region will be able to have input into the work of the Gulf Coast
Restoration Task Force. The Citizens Advisory Board, called for in my
amendment, would not be filled with energy industry representatives and
scientists but, rather, with individuals, such as the fishermen who
have been put out of business, the hotel owner along the beach which
now has more tar balls than tourists, and citizens in Alabama,
Mississippi, Louisiana, Florida who simply want to have their beaches,
wetlands, waters back to support their livelihoods, their health, and
their enjoyment.
Restoring the environmental and natural resources in the gulf will be
a long and arduous task. My amendment simply makes it clear that the
input of those most impacted by this disaster, the residents of the
States and the region, should be a priority.
Mr. HASTINGS of Washington. Mr. Chairman, I am pleased to yield 1
minute to the gentleman from Georgia (Mr. Graves), one of the newer
Members of our House and a very valuable member of our Republican
Conference.
Mr. GRAVES of Georgia. Mr. Chairman, 46 days ago, I was sworn in
right down here before the House, and since that time, constituents
have asked, What has been the biggest surprise since your time being
sworn in? And I will tell you what it is. I have seen it here today. I
have seen it over the past several weeks, and that is the fear and the
lack of trust in this leadership to allow their own Members to vote on
amendments.
It is clear that there is bipartisan opposition to this measure. In
fact, 88 amendments were offered. Only nine were accepted. No
Republicans from the gulf coast region had an accepted amendment, and
only two Democrats from the region had amendments accepted. Only 14
percent of the Democrat amendments offered were accepted, meaning a
large, large portion were not; and only 4 percent of Republican
amendments were accepted to even be voted on here today. That means
that over 50 million American voices did not get their representation
right here today because the amendments of more than 80 Members of
Congress were ignored by this Democrat majority. There has got to be a
better way, and maybe in about 6 months we will find out.
Mr. RAHALL. Mr. Chairman, I am very happy to yield 2\1/2\ minutes at
this point to the gentleman from Maryland, Mr. Elijah Cummings, the
chairman of the Subcommittee on the Coast Guard of our Transportation
and Infrastructure Committee, a gentleman who has been so instrumental
in helping to bring this legislation to the floor.
Mr. CUMMINGS. Thank you very much.
I rise in strong support of the manager's amendment. I express strong
support for the underlying text, including the extensive provisions
authored by the Transportation Committee to correct regulatory failures
that contributed to the Deepwater Horizon accident and to strengthen
the role of the Coast Guard in oil spill response planning and safety
management.
The manager's amendment includes a number of provisions that improve
the underlying text. For example, it imposes civil penalties on chief
executive
[[Page H6540]]
officers who certify information that misrepresents a company's ability
to respond to or contain an oil spill. BP wrote in its exploration plan
for the Mississippi Canyon 252 site that ``in the event of an
anticipated blowout resulting in an oil spill, it is unlikely to have
an impact based on the industry-wide standards for using proven
equipment and technology for such responses, implementation of BP's
Regional Oil Spill Response Plan which address available equipment and
personnel, techniques for containment and recovery and removal of oil
spill.''
Obviously that was a false statement. There were no proven equipment
or technologies to respond to the kind of oil spill that occurred in
the gulf.
The manager's amendment also requires redundancy in accident and
spill response plans, something critically needed, given our current
lack of proven response equipment and technologies. Further, the
amendment authorizes a study of economic, safety and environmental
impacts of requiring a relief well to be drilled in tandem with the
drilling of some or all wells.
The manager's amendment clarifies the liability provisions in the Oil
Pollution Act to protect claimants from signing broad liability
releases. This will help protect the rights of those in the gulf who
have been so devastated by the spill. The manager's amendment also
includes a provision that I offered that would exempt discharges
resulting from salvage activities from liability, consistent with the
National Contingency Plan or as directed by the President.
I applaud Chairman Rahall and I applaud Chairman Oberstar for their
excellent work on the CLEAR Act, and I urge the adoption of the
manager's amendment.
Mr. HASTINGS of Washington. Mr. Chairman, I am pleased to yield 1
minute to the gentleman from Texas (Mr. Gohmert), a member of the
Natural Resources Committee.
Mr. GOHMERT. Mr. Chair, you know, at a time when 42 cents out of
every dollar we are spending, we are allocating here in this body is
having to be borrowed and someday paid back by children and the
children's children, some of whom may be watching right now, it is
absolutely critical we do it right.
Here we have got all of these amendments lumped into one so we can't
debate them, and we can't take one thing out. That's not right. And
when I heard my friend from West Virginia saying, There they go again,
apologizing for BP, I will challenge anybody to find any comment by
anybody on this side of the aisle in this debate today who has
apologized for, to, or about BP. Some of us think they ought to be
strung up when we find out who's most responsible.
So I know my friend from West Virginia would never intentionally
misrepresent the facts, but whoever prepared that statement that he
read sure did.
Mr. RAHALL. I yield 2 minutes to the gentleman from Florida (Mr.
Boyd).
(Mr. BOYD asked and was given permission to revise and extend his
remarks.)
Mr. BOYD. I thank Chairman Rahall for offering this manager's
amendment and giving me time to speak.
Mr. Chairman, in this manager's amendment, there's a provision that
is very important to the folks in the district I represent in northwest
Florida. Ladies and gentlemen, our local economy has been significantly
impacted by the BP oil spill. Many of our people are out of work as a
result of this man-made disaster that they had no hand in creating.
Fortunately, we have been successful in setting up the BP Oil Spill
Victims Compensation Fund which will help speed relief to the victims
of this tragedy and help respond to one of the gulf coast's greatest
needs.
This amendment that is being offered by Chairman Rahall will ensure
that gulf residents will have the right of first refusal for the job
opportunities processing the claims filed for the oil spill.
{time} 1500
It emphasizes the importance of gulf residents serving their
neighbors by processing these claims and ensuring that they receive the
consideration for the ramifications of this spill.
I have already spoken with Mr. Ken Feinberg, the administrator of the
BP Deepwater Horizon Victims Fund, about employing local residents to
process claims, and he agrees with me that there is no one better
suited to perform this essential task. In fact, I told him that in
north Florida we have a ready and willing workforce ready to go. These
workers, who unfortunately are looking for work as a result of their
corporations' closing their facility, have the skill and the talent
that directly align with the skills needed to process oil spill claims.
They should be considered first in line to beef up the newly
established claims fund and ensure a high quality response for fellow
gulf coast residents.
I recommend a ``yes'' vote on the chairman's manager's amendment.
Mr. HASTINGS of Washington. I reserve the balance of my time.
Mr. RAHALL. I yield 2 minutes to the gentleman from California (Mr.
Farr).
Mr. FARR. Thank you, Chairman Rahall, for yielding.
Mother Earth, wake up. Today's the day that Congress is going to show
some leadership. Leadership is about getting results. And last week,
the President of the United States enacted, by Executive order, a
government oceans plan, a governance plan to look at our oceans in
totality. Today, Congress is going to enact the ability to govern the
oceans and to think about the totality of how this Earth survives with
73 percent of the Earth being covered by oceans.
Too bad that so many people get up and talk about, in a crisis, oh,
if it was just a little bit better we could support half the bill, we
could support a little bit of this, something's wrong. That's not
leadership. Leadership's about getting results. And the only way you
get results today is to vote ``aye.'' It solves a lot of problems.
Voting ``no'' solves nothing. Nothing. The planet can't stand nothing.
For too long there has not been leadership. That side is the side
that gave us James Watt, ``Drill, baby drill,'' gave us Richard Pombo,
chair of the Resources Committee, the Darth Vader of environmental
legislation. Nothing ever came out of that committee. And today what do
they want? We don't want this bill because it's not perfect.
Ladies and gentlemen, today's the day that we respect Mother Earth
and give her a chance to help our dying oceans stop dying. And the only
way to do that is to vote ``aye.''
Mr. RAHALL. Madam Chair, I yield the remainder of my time to the
gentleman from Massachusetts (Mr. Markey), who has been so instrumental
in this legislation as well on this issue.
The Acting CHAIR (Ms. Jackson Lee of Texas). The gentleman from
Massachusetts is recognized for 2 minutes.
Mr. MARKEY of Massachusetts. I thank Mr. Rahall for his great
leadership working with Chairman Waxman and Chairman Stupak and I on
the Energy and Commerce Committee to include new safety procedures.
This bill takes lessons learned and will turn them into laws. That's
what we need to do. Included in this bill is a provision which is going
to collect $53 billion from the oil industry, where they are drilling
in American waters without paying any royalties to the American people.
And in this bill we reclaim those $53 billion from the oil companies,
and we will reduce the Federal deficit by $53 billion. That's in this
bill. And it is going to be the dues which the oil companies should be
paying to the American people for using American waters.
At $80 a barrel, for the American people to be subsidizing Big Oil to
drill, it would be like subsidizing a fish to swim or a bird to fly, to
subsidize the oil industry to drill for oil at $80 a barrel. You just
don't have to do it.
So with this bill we cut the deficit and we stop Big Oil from cutting
corners on safety. This is BP's spill, but it is America's ocean.
That's what this bill is all about. That's what this vote is on today.
Are we going to reclaim the oceans of America so that they are not
polluted, so that BP and the oil companies pay the royalties that they
owe to our people and not avoid them, that we reduce the Federal
deficit and we make sure that we never again see a day where the
American people for 100 days have to watch oil flow into our oceans?
Vote ``aye'' on this very important legislation.
Mr. HASTINGS of Washington. I yield myself the balance of my time.
[[Page H6541]]
The Acting CHAIR. The gentleman is recognized for 5 minutes.
Mr. HASTINGS of Washington. Madam Chairman, the last speaker made an
interesting point when he was talking about the oceans and how this
bill is going to save the oceans. I don't think there is anybody in
this body that doesn't want to make sure that our oceans are in a
healthy, robust way. But it begs the question why are there
restrictions, if this is an oceans bill, and if it's a gulf oil bill,
why does this bill deal with onshore oil and gas regulation and
restrictions? That question, honestly, has not come up once in the
debate even though that reference has been made many times by Members
on this side of the aisle.
This amendment, of course, is on the manager's amendment. As I
mentioned, it is 17 Democrat amendments and one Republican amendment.
There may be some good things involved with this amendment. In fact,
there are. But why is there always this tendency to throw so much more
into these amendments when many of the subjects that are covered in
them have not been fully vetted throughout the committee process?
That's the concern. And it's a pattern that we see over and over and
over again. And frankly, it's a pattern that I think the American
people see and respond to when asked about how they feel this body is
in a favorable or unfavorable way. Because this body has very low
favorable ratings. I think this is part--not the only thing--but this
is certainly part of that.
So I urge my colleagues to vote against the manager's amendment. I am
certainly going to ask them to vote against the underlying bill because
the underlying bill, while it's purported to be in response to the gulf
oil spill, we saw it was expanded just a moment ago, at least in
remarks by the gentleman from Massachusetts, to all of the oceans. In
fact, the gentleman from California said the same thing come to think
of it.
But yet what this bill really is all about, when you look at the
substance and how it affects the American people, is another gigantic
tax increase, and an addition of mandatory spending on top of the
mandatory spending we have within our government right now. We all
know, all of us in this body knows that the mandatory spending in this
Congress and our Federal Government is unsustainable over time. And yet
here we are, albeit on a small level, adding to mandatory spending.
I urge my colleagues to oppose the Rahall amendment and the
underlying bill.
Ms. JACKSON LEE of Texas. Mr. Chair, I rise in support of the
manager's amendment to H.R. 3534, ``The Consolidated Land, Energy and
Aquatic Resources (CLEAR) Act.'' The manager's amendment provides a
number of provisions that will ensure that there is greater chance of
preventing an incident such as the April 30, 2010 Deepwater Horizon
explosion and oil spill.
The Manager's amendment includes my amendment which requires
redundancy in accident and spill response plans as part of the
permitting process under the Outer Continental Shelf Lands Act.
Specifically, my amendment will require that businesses applying for
permits to drill and produce crude oil in the Gulf of Mexico submit
detailed spill mitigation and recovery plans as part of the permitting
process. Not only must they have recovery plans, but they will be
required to have backup plans, in case their first response fails.
Additionally, those plans must be vetted by impartial experts, rather
than rubber-stamped by insufficiently vigilant regulators. With this
additional layer of response planning, there is a better chance that we
will be better prepared to respond to future incidents like the Gulf
oil spill.
The Manager's amendment also includes provisions that do the
following:
Clarifies that the Secretary of the Interior may enter into
cooperative education and training agreements with safety training
firms in establishing the National Oil and Gas Health and Safety
Academy.
Clarifies that the Secretary is permitted to consult with industry
representatives regarding training program curricula, but is not
authorized to utilize industry representatives as instructional
personnel for the trainings.
Imposes civil penalties on CEO's who certify to false information
about a company's capability to prevent or contain an oil spill.
Establishes a Citizen's Advisory Committee composed of non-energy
industry individuals to assist the Gulf Coast Restoration Task Force in
its work.
Clarifies that the Regional Assessment and Regional Strategic Plan
created by the Great Lakes Regional Coordination Council shall include
only renewable and not non-renewable energy resources.
Ensures that Gulf residents would have the right of first refusal for
processing the claims filed due to the oil spill.
Replaces the requirement for dispersant manufacturers to disclose
their product's chemical formula with a requirement to disclose
dispersant products' ingredients.
Provides that discharges resulting from salvage activities consistent
with the National Contingency Plan or as directed by the President are
exempt from liability under the Federal Water Pollution Control Act.
Authorizes a study of the economic, safety, and environmental impacts
of requiring a relief well be drilled in tandem with the drilling of
some or all wells.
Requires the GAO to complete a study to determine whether the reforms
to the Department of the Interior mandated in this legislation have
increased oversight and decreased conflicts of interest within the
department.
Includes in the Environmental Study an analysis of the cumulative
impact of drilling on the Outer Continental Shelf.
Requires oil and gas companies to pay royalties on all oil that is
discharged from a well, including spilled oil.
Directs GAO to study the impact of assessing a fee on the processing
of oil and gas leases and using the proceeds to fund the gathering of
baseline environmental data necessary for the permitting process.
Directs the Secretary of the Interior to arrange with the National
Academy of Engineering to study and report to the Secretary regarding
whether the accuracy of collection of royalties on production of oil,
condensate, and natural gas under leases of federal lands would be
improved by implementing certain prescribed measures; and
Amends the liability provisions in the Oil Pollution Act to protect
claimants from signing broad liability releases, and to clarify that
the new cause of action under OPA for damages to human health does not
supersede remedies under other federal law.
Mr. Chair, I support this manager's amendment which includes my
amendment that will require redundancy in accident and spill response
plans as part of the permitting process under the Outer Continental
Shelf Lands Act. I urge my colleagues to support this amendment.
Mr. HASTINGS of Washington. I yield back the balance of my time.
The CHAIR. The question is on the amendment offered by the gentleman
from West Virginia (Mr. Rahall).
The question was taken; and the Chair announced that the ayes
appeared to have it.
Mr. HASTINGS of Washington. Mr. Chairman, I demand a recorded vote.
The CHAIR. Pursuant to clause 6 of rule XVIII, further proceedings on
the amendment offered by the gentleman from West Virginia will be
postponed.
Amendment No. 2 Offered by Mr. Castle
The CHAIR. It is now in order to consider amendment No. 2 printed in
part B of House Report 111-582.
Mr. CASTLE. Mr. Chairman, I seek recognition to present amendment No.
2.
The CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
At the end of title I add the following new section:
SEC. __. LIMITATION ON EFFECT ON DEVELOPMENT OF OCEAN
RENEWABLE ENERGY RESOURCE FACILITIES.
Nothing in this title shall delay development of ocean
renewable energy resource facilities including--
(1) promotion of offshore wind development;
(2) planning, leasing, licensing, and fee and royalty
collection for such development of ocean renewable energy
resource facilities; and
(3) developing and administering an efficient leasing and
licensing process for ocean renewable energy resource
facilities.
The CHAIR. Pursuant to House Resolution 1574, the gentleman from
Delaware (Mr. Castle) and a Member opposed each will control 5 minutes.
The Chair recognizes the gentleman from Delaware.
Mr. CASTLE. I yield myself such time as I may consume.
I rise today to urge support for amendment No. 2 to the CLEAR Act,
which will help ensure that there is no delay in the development of
ocean renewable energy resources, including offshore wind, under the
MMS reorganization called for under title I.
The actions to reform MMS following the devastating oil spill are
necessary and commendable.
[[Page H6542]]
{time} 1510
While the new bureaus and office are focused on the critical task of
transforming the agency into a more effective, transparent agency, this
will require significant organizational and cultural alterations. Under
this restructuring, it would be a great disappointment to lose ground
in our efforts to prepare a workable comprehensive offshore energy plan
for our Nation.
If we are serious about advancing new clean sources of power, which I
sincerely hope we are, an important goal of the MMS reorganization must
continue to facilitate, not hinder, the development of offshore
renewable energy development in the waters of the United States.
For offshore renewable energy projects already underway, like the
wind project off the coast of Delaware, progress must continue. While I
continue to believe there is value in establishing a separate office
for ocean renewable energy development, which we can perhaps continue
to work on in our discussions with the Senate, this amendment would, at
a minimum, ensure appropriate attention is paid to advancing ocean
renewable energy development and protecting against bottlenecks that
could result in unnecessary delays.
Offshore wind farms alone present a significant and rapidly growing
source of emissions-free electrical power for our constituents. And
recent Department of the Interior-U.S. Department of Energy reports
confirm that winds off the coast of the United States are a promising
source of clean, renewable electrical power.
My amendment is simple and calls attention to the need to ensure that
targeted efforts to support offshore wind and renewable energy
development continue without delay. I hope my colleagues on both sides
of the aisle will support its adoption.
Mr. RAHALL. Will the gentleman yield?
Mr. CASTLE. I yield to the gentleman from West Virginia.
Mr. RAHALL. We are prepared to accept the gentleman from Delaware's
amendment on this act and commend him for bringing it to us.
Mr. HASTINGS of Washington. Will the gentleman yield?
Mr. CASTLE. I yield to the gentleman from Washington.
Mr. HASTINGS of Washington. We are more than happy to accept it on
our side.
Mr. CASTLE. I yield back the balance of my time.
The CHAIR. The question is on the amendment offered by the gentleman
from Delaware (Mr. Castle).
The amendment was agreed to.
Amendment No. 3 Offered by Mr. Kind
The CHAIR. It is now in order to consider amendment No. 3 printed in
part B of House Report 111-582.
Mr. KIND. I have an amendment at the desk.
The CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
Page 127, line 6, strike the closing quotation marks and
the final period.
Page 127, after line 6, insert the following:
``(c) Recreational Access Funding.--Notwithstanding
subsection (b), not less than 1.5 percent of the amounts made
available under subsection (a) for each fiscal year shall be
made available for projects that secure recreational public
access to Federal land under the jurisdiction of the
Secretary of the Interior for hunting, fishing, and other
recreational purposes through easements, rights-of-way, or
fee title acquisitions, from willing sellers.''.
The CHAIR. Pursuant to House Resolution 1574, the gentleman from
Wisconsin (Mr. Kind) and a Member opposed each will control 5 minutes.
The Chair recognizes the gentleman from Wisconsin.
Mr. KIND. I yield myself 1 minute.
(Mr. KIND asked and was given permission to revise and extend his
remarks.)
Mr. KIND. This is a very simple amendment. One of the strengths of
the CLEAR Act is that it asks public companies that are extracting
resources from our public lands to contribute to a fund, a fund called
the Land and Water Conservation Fund that was established in the mid-
1960s to help preserve and conserve the vital natural resources that we
have throughout the United States. But the problem is that so much of
the public lands that are available are inaccessible. They're not
accessible for the hunters, the fisherman, the outdoor recreationists,
those who enjoy shooting sports to gain access to the lands.
In fact, a recent study showed that close to 35 million acres that
currently exist in public lands are inaccessible to hunters and
fishermen throughout the country. This amendment would direct just 1\1/
2\ percent out of the Land and Water Conservation Fund that would be
used in order to purchase easements or right-of-ways from willing,
voluntary sellers so that the hunters and fishermen have access to
these public lands.
The inaccessibility is one of the contributing causes of why so many
people are not hunting or not involved in shooting sports. This
amendment would go a long way to addressing that, and it's consistent
with the underlying philosophy of the Land and Water Conservation Fund.
I'd ask my colleagues to support it.
I reserve the balance of my time.
Mr. HASTINGS of Washington. Mr. Chairman, I ask unanimous consent to
claim the time in opposition, though I'm not opposed to the amendment.
The CHAIR. Without objection, the gentleman is recognized for 5
minutes.
There was no objection.
Mr. HASTINGS of Washington. I yield myself such time as I may
consume.
Mr. Chairman, our main purpose here today is supposed to be, as I've
said several times, to be addressing the gulf oil spill and ensuring
that offshore drilling is the safest in the world. Unfortunately, as I
have mentioned again many times, the Democrats have used this vehicle
to put extraneous material on this particular bill.
One of the most glaring unrelated items that I had mentioned several
times, also, is the $30 billion in new mandatory spending. An oil spill
is not an excuse to spend more money, especially when the money is
going towards provisions that are completely unrelated to the gulf oil
spill. Regardless of your views of the Land and Water Conservation Fund
and the Historic Preservation Fund--and I know I would probably
disagree if it were my friend from Wisconsin on that--everyone should
agree that that bill has no business being here in this particular
bill.
However, I fully support our Nation's sportsmen and would like to see
more of our public land open for a variety of purposes such as hunting,
fishing, recreation, and economic development. Given that the Democrat
majority and the Obama administration continually are looking for ways
to lock up our land and block public access, it's encouraging to me to
see some of my colleagues across the aisle supporting increased access,
and I thank the gentleman for that. I hope that we will work with this
in the future to ensure that all Americans, including sportsmen, have
greater access to public lands.
However, as I had mentioned, this bill is not the appropriate vehicle
to address this issue. I think we can do it in a much more ordered way
if we take this up on its own, because there is some merit to the
gentleman's proposal. But I will not stand in the way of this
amendment.
I yield back the balance of my time.
Mr. KIND. Mr. Chairman, at this time, I would like to yield 1 minute
to a very strong supporter of the hunting and fishing community, the
gentleman from Maryland (Mr. Kratovil).
Mr. KRATOVIL. Thank you, Mr. Kind, for your leadership on this
amendment.
I rise in strong support of the amendment so that we can increase, as
was said, access to federally protected lands for hunters and anglers
through the Land and Water Conservation Fund. Our amendment will simply
refocus a very small portion of the Land and Water Conservation Fund to
enhance access to existing public lands, specifically for easements or
right-of-ways that open access to Federal land which is currently
inaccessible or significantly restricted.
Specifically, the amendment directs the Secretary to dedicate no less
than 1.5 percent of the funds to increase recreational public access to
existing lands for hunting, fishing, or other recreational purposes.
Our amendment stays very true to the very intent of the fund, which is
stated in the statute, to assist in preserving, developing, and
[[Page H6543]]
assuring accessibility to outdoor recreation resources.
I urge my colleagues to support the amendment on behalf of the
sportsmen and -women throughout the country and communities that rely
on these activities to generate and create jobs.
Mr. KIND. Mr. Chairman, at this time I would like to yield 1 minute
to a real champion of recreational sportsmen and -women throughout the
country, the gentleman from New Mexico (Mr. Heinrich).
Mr. HEINRICH. Mr. Chairman, as an avid hunter and sportsman, I am
very proud to cosponsor this recreational access funding amendment. Too
many families, sportsmen, outdoor enthusiasts across our Nation
continue to be locked out of public lands because of lack of legal
access. New Mexico's Sabinoso Wilderness is an example. I've personally
spent hours on horseback riding through Sabinoso's high mesas and deep
canyons.
But without permission from adjacent private landowners, which
usually requires an escort from the Bureau of Land Management, legal
access to the Sabinoso is not available.
This amendment would dedicate a small percentage of the Land and
Water Conservation Fund to acquire those rights-of-way for the public
from willing sellers. Public lands like the Sabinoso belong to every
American, and this amendment will help ensure that future generations
of Americans can hunt and fish, hike and camp on these lands.
I urge my colleagues to support this amendment and to support the
underlying legislation.
Mr. KIND. Mr. Chairman, I yield 1 minute to a champion of outdoor
recreationists throughout the country and in the State of Nevada, the
gentlelady from Nevada (Ms. Titus).
Ms. TITUS. Mr. Chairman, I rise in strong support of this amendment
to enhance access to public lands by acquiring right-of-ways from
willing sellers.
The Federal Government owns more than 85 percent of the land in my
State of Nevada, which includes some of the most spectacular landscapes
in the Nation. Outdoor recreation supports nearly 20,000 jobs in
Nevada, and it generates $116 million in annual State taxes. By
increasing public access to these Federal lands for hunting, fishing,
camping, hiking, and other recreational purposes, we would be doing
something that would not only help our economy but would be welcomed by
enthusiasts throughout the State.
Mr. KIND. At this time, I would like to yield 1 minute to the
gentleman from Virginia, a champion for hunting and fishermen in
Virginia and throughout the country, Mr. Perriello.
{time} 1520
Mr. PERRIELLO. I rise in strong support of this amendment to give 1.5
percent in the Land and Water Conservation Fund for recreational public
access, including hunting and fishing. Thirteen million hunters in the
United States generate $67 billion in economic activity every year and
account for 1 million jobs. But beyond the dollars and cents, this is
about a way of life, about heritage, and about time with families spent
together.
So for our sportsmen, it's not enough just to ensure their rights,
but to ensure there's a place to exercise those rights; and this is a
huge step forward to make sure that those recreational activities have
a place for us across the United States.
Mr. KIND. Mr. Chairman, I yield 15 seconds to the chairman of the
Natural Resources Committee, Mr. Rahall.
Mr. RAHALL. Mr. Chairman, I thank the gentleman from Wisconsin for
yielding and certainly support his amendment. I commend him for his
leadership and for his efforts and discussions that have been held long
and on many occasions in regard to his amendment and support his bill.
Mr. KIND. I yield myself the remainder of the time.
Mr. Chairman, I also want to thank, who wrote a letter in support of
this amendment, the American Wildlife Conservation Partners. It's a
group of 45 outdoor recreational organizations from hunting to fishing
to shooting sports to conservation groups throughout the country. They
see the value of increased access to our public lands.
But, Mr. Chairman, this is also an amendment about jobs because
outdoor recreation, hunting, fishing, shooting sports, they contribute
over $730 billion to the national economy every year. They support 6.5
million jobs. Almost one of every 20 jobs is associated with some
outdoor recreational activity. And they stimulate close to 8 to 9
percent of all consumer spending in this country. So increasing access
so more people have the opportunity to get to the public lands to do
this is going to create jobs and strengthen our economy.
I encourage my colleagues to support the amendment.
The CHAIR. The question is on the amendment offered by the gentleman
from Wisconsin (Mr. Kind).
The question was taken; and the Chair announced that the ayes
appeared to have it.
Mr. KIND. Mr. Chairman, I demand a recorded vote.
The CHAIR. Pursuant to clause 6 of rule XVIII, further proceedings on
the amendment offered by the gentleman from Wisconsin will be
postponed.
Amendment No. 4 Offered by
Ms. Shea-Porter
The CHAIR. It is now in order to consider amendment No. 4 printed in
part B of House Report 111-582.
Ms. SHEA-PORTER. I have an amendment at the desk.
The CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
Page 28, line 16, insert at the end the following new
sentence: ``The Secretary shall update the supplementary
ethics guidance not less than once every three years
thereafter.''.
Page 78, strike line 16, and insert the following:
``(D) oil spill response and mitigation, including reviews
of the best available technology for oil spill response and
mitigation and the availability and accessibility of such
technology in each region where leasing is taking place;'
'''.
Page 82, line 18, strike ``and''.
Page 82, line 23, strike the period and insert ``; and''.
Page 82, after line 23, add the following:
``(F) updated the operator's response plan required under
section 25(c)(7) and exploration plans required under section
11(c)(3) to reflect the best available technology, including
the availability of such technology.
The CHAIR. Pursuant to House Resolution 1574, the gentlewoman from
New Hampshire (Ms. Shea-Porter) and a Member opposed each will control
5 minutes.
The Chair recognizes the gentlewoman from New Hampshire.
Ms. SHEA-PORTER. First, I would like to thank Chairman Rahall and his
staff for this very good piece of legislation before us today. It is a
product of months of hard work. I believe it is a transformative bill
that will go a long way to ensuring responsible energy development and
better environmental protection.
The tragedy in the Gulf of Mexico has reminded us of what can happen
if we are not vigilant and constantly improving our safety and
environmental protection. It has also reminded us that when we put our
lands and oceans at risk for energy development in one area, we should
be putting land aside and protecting it in another area.
The underlying bill makes good on a promise to fully fund the Land
and Water Conservation Fund. That program has protected more than 5
million acres of land across this country. Fully funding LWCF is long
overdue, and I thank the chairman for his leadership on this issue.
Mr. Chair, among other things, the bill before us makes needed
improvements to the way that our offshore energy leasing is carried
out. During my time on the Natural Resources Committee, I have been
particularly troubled by the reports of unethical behavior at the
government agency that was previously overseeing energy leasing. That
outrageous conduct must never be allowed to happen again in any agency.
This bill puts in place strong ethics requirements and training. My
amendment take this a step further by requiring that the ethics
guidelines developed by the Interior Secretary be updated every 3
years.
Mr. Chair, another lesson we've learned over the past 3 years is that
oil companies do not necessarily use the best available technology and
that they are not fully prepared for a spill. Immediately after the
spill, BP turned to solutions that had been around for 20 years,
solutions from the Exxon Valdez disaster. It was painfully clear that
they had not spent time or money
[[Page H6544]]
to develop new technologies to clean up a spill. The bill before us
creates an offshore technology research and risk assessment program to
conduct research and development of new drilling and spill response
technologies. My amendment adds language to ensure that we study the
best available spill response technology and its availability in
regions where drilling is taking place. This is to make certain that we
have in place the best technology and equipment needed to respond when
there is an accident.
Finally, Mr. Chair, it's also critical that this new technology we're
developing be integrated into exploration and response plans. My
amendment requires companies to certify as part of their annual
certification for offshore drilling that those plans include the best
available technology. When the BP executives testified before the
Natural Resources Committee, it was clear to me they were more
concerned with cutting corners and shaving costs than making sure they
had the safest operation with the best technology. Requiring these
companies to take into account the best available technology and its
availability just makes sense.
Again, Mr. Chair, this is a very strong bill we are considering
today, and I thank Chairman Rahall for all his hard work. I urge my
colleagues to support this amendment and the underlying bill.
I reserve the balance of my time.
Mr. LAMBORN. Mr. Chairman, I ask unanimous consent to claim time in
opposition to the amendment, although I do not intend to oppose it.
The Acting CHAIR (Mr. Obey). Without objection, the gentleman from
Colorado is recognized for 5 minutes.
There was no objection.
Mr. LAMBORN. I yield myself such time as I may consume.
Mr. Chairman, updating the supplemental guidelines on ethics every 3
years will help the Department of the Interior keep current with new
issues as they arise and will focus the government employees' attention
on appropriate ethical behavior as they deal with the private sector.
The Horizon disaster has focused everyone's attention on the lack of
any contingency plan that could be implemented expeditiously to address
a blowout in deepwater conditions. We basically watched a 3-month
ongoing experiment with various devices being fabricated to cap the
well or capture the oil as it's spewing out. We also found out that we
didn't have enough boom in place to protect the shoreline and that new
boom had to be manufactured to meet the requirements in the State oil
spill response plans. And we discovered that some of the plans
underestimated how much boom might be required to protect the shoreline
from a major spill.
Using the best available technology is crucial in keeping the
public's trust going forward with offshore oil and gas development.
Both Republicans and Democrats have broad agreement on the need to
protect and improve offshore production safety and environmental
protection. This amendment is an example of our agreement, and I urge
my colleagues to support it.
What I don't agree with is going beyond the gulf to encompass all
energy production in the entire United States in order to raise energy
taxes by $22 billion. Raising energy taxes in a recession will kill
jobs.
Mr. Chairman, I reserve the balance of my time.
Ms. SHEA-PORTER. Mr. Chairman, I yield 1 minute to the gentleman from
New York (Mr. Hall), a leading environmentalist.
Mr. HALL of New York. Mr. Chairman, I thank the gentlelady and the
chairman.
I rise today in support of this amendment, as well as the underlying
bill.
The Deepwater Horizon explosion on April 20 cost our Nation tens of
billions of dollars in economic damages and caused widespread
devastation of our natural resources. It did not have to happen. This
was a disaster that was preventable.
Over the last few months, we have learned that BP consistently made
choices to sacrifice safety for profit. They testified that they did
not use vital safety technology like acoustic sensing devices because
U.S. law did not require it. It is time for us to change that.
I recently introduced legislation to require oil companies to use the
best available technology, and I'm proud to support this amendment
which also requires oil companies to include the best available
technology in their exploration and spill response plans.
Mr. Chairman, the cost of using state-of-the-art technology is much
less than the cost of cleanup and the tragic loss of life.
I urge my colleagues to support this amendment and the underlying
bill.
Mr. LAMBORN. I continue to reserve the balance of my time.
Ms. SHEA-PORTER. I yield 1 minute to the chairman, Mr. Rahall.
{time} 1530
Mr. RAHALL. I thank the gentlelady for yielding, and I certainly do
support her amendment. I commend her for her leadership on our
Committee on Natural Resources in helping to develop this legislation.
It is a commonsense amendment that deserves the support of every Member
of this body, and it certainly makes the bill better. I appreciate her
effort.
Mr. LAMBORN. Mr. Chairman, I yield back the balance of my time.
Ms. SHEA-PORTER. Mr. Chair, again I urge my colleagues to support
this amendment and the bill, and I yield back the balance of my time.
The Acting CHAIR (Mr. Obey). The question is on the amendment offered
by the gentlewoman from New Hampshire (Ms. Shea-Porter).
The amendment was agreed to.
Amendment No. 5 Offered by Mr. Teague
The Acting CHAIR. It is now in order to consider amendment No. 5
printed in part B of House Report 111-582.
Mr. TEAGUE. Mr. Chairman, I have an amendment at the desk.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
Page 167, line 2, strike ``and''.
Page 167, after line 2, insert the following:
(2) in subsection (e) by striking ``self-insurer,'' and
inserting ``self-insurer, participation in cooperative
arrangements such as pooling or joint insurance,''; and
Page 167, line 3, strike ``(2)'' and insert ``(3)''.
The Acting CHAIR. Pursuant to House Resolution 1574, the gentleman
from New Mexico (Mr. Teague) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentleman from New Mexico.
Mr. TEAGUE. Mr. Chairman, I rise today to offer a simple but
important amendment.
My amendment would add another means by which facilities may
demonstrate compliance with the financial responsibility provisions of
the Oil Pollution Act of 1990.
The amendment enables two or more companies to meet individual
financial responsibility requirements by pooling resources or obtaining
joint insurance coverage. Such arrangements would avoid redundant
coverage, reduce insurance costs, and enhance access to insurance.
In the event of a liability incident, any party to such an
arrangement would have access to the full coverage amount. Provisions
would be made in a joint insurance plan for automatic reinstatement, by
the parties, of the original coverage amount.
This amendment does not substitute or change current provisions for
meeting financial responsibility. Rather, it simply adds another method
for meeting financial responsibility requirements. There is no
reduction in protection of the public interest, and no reduction in
protection for the environment.
Mr. Chairman, ever since I arrived in Congress, I made it my mission
to fight for the little guys--the companies whose names you don't see
in television commercials, but that provide jobs for millions of
Americans and produce so much of our Nation's domestic energy. You find
a lot of those companies around my hometown of Hobbs, New Mexico, and
you find a lot of those hardworking companies operating in the Gulf of
Mexico.
Having independent oil and gas producers providing American energy in
the Gulf of Mexico is critical to moving away from foreign oil. The big
oil companies are generally interested in producing only the biggest
plays with the biggest potential payoffs. It's the independent
companies that are going in and producing American energy that would
not get produced otherwise.
[[Page H6545]]
According to a recent report, independent oil and natural gas
companies currently account for about half of the nearly 400,000 jobs
and $20 billion in Federal, State and local revenues generated by the
industry in 2009.
This amendment simply allows smaller independent companies the
flexibility they need to meet financial responsibility requirements. I
ask for broad, bipartisan support of this amendment.
Mr. Chairman, I reserve the balance of my time.
Mr. LAMBORN. Mr. Chairman, I ask unanimous consent to claim time in
opposition to this amendment, although I don't intend to oppose it.
The CHAIR. Without objection, the gentleman from Colorado is
recognized for 5 minutes.
There was no objection.
Mr. LAMBORN. I yield myself such time as I may consume.
Mr. Chairman, Republicans have no problem with this amendment. The
fact that the bill will force small companies to now band together
simply to meet threshold requirement activities in the offshore is a
sad statement on the rest of the bill.
Although this provision may help small companies meet their
certificate of financial responsibility requirements, nothing in this
amendment solves the liability problem and nothing in this amendment
solves the $22 billion tax increase in this bill. Unlimited liability
will cripple domestic production by removing all but the largest
companies from offshore drilling. There should be reasonable liability,
but unlimited or infinite liability goes too far. It will kill jobs.
Republicans support this amendment, but it's simply like putting a
Band-Aid on a broken leg. I suppose it doesn't hurt anything, but it
doesn't cure the underlying problem; and it might even lull someone
into thinking we're doing something.
Anyone who votes for the Teague amendment and the underlying bill
together is putting the people they are purporting to help out of
business. The Teague amendment does absolutely nothing to cure
unlimited liability.
Mr. Chairman, I would now like to yield 1 minute to the gentleman
from Maryland (Mr. Cummings).
Mr. CUMMINGS. I thank the gentleman for yielding.
I rise in support of the amendment. The underlying amendment in the
nature of a substitute would raise from the current $150 million to
$300 million the amount of financial responsibility that offshore
facilities must demonstrate. This is a significant increase.
I strongly believe that this increased level of financial
responsibility is appropriate, given the risks associated with offshore
energy production--risks that the Deepwater Horizon spill have made so
clear.
Importantly, however, the President can lower the amount of financial
responsibility offshore facilities must demonstrate if certain criteria
are met, albeit the level for offshore facilities seaward of a State
boundary cannot be below $105 million.
I strongly support the amendment.
Mr. TEAGUE. Mr. Chairman, I yield 2 minutes to the gentlewoman from
Texas (Ms. Jackson Lee).
Ms. JACKSON LEE of Texas. I thank the gentleman from New Mexico and I
thank him for working together with me on this amendment and for his
leadership. I offered a similar amendment and was very pleased to join
this amendment as the Teague-Jackson Lee amendment. It is important to
note that this is a fair amendment that does something. It really does
do something for the small, independent companies. This amendment would
allow the financial responsibility required to operate in the gulf to
be pooled among companies working together. It means that we give them
the opportunity because of the $300 million necessary COFR to be able
to do business in the gulf and not go out of business. What it really
means is preserving thousands of jobs.
First of all, the U.S. independent operators in the gulf because of
their operations, they have a major contribution to energy security and
energy supply providing reasonably priced fuels for our families and
economy. Eighty-one percent of oil producing in the gulf is in the
independent leases and 46 percent of the gulf's producing deepwater
leases as well. Independents have drilled 1,298 wells in the deepwater
and safely. Independents operate an average of 70 percent of the
farmed-out acreage that originally were in the hands of the majors over
the past 10 years. Almost 3 billion barrels of oil equivalent in
reserves that were originally found by the majors are now operated by
independents; small companies that create a lot of jobs. This is an
amendment that will allow them to work together, pool their resources,
and do the right thing, not put the burden on the taxpayers.
Let me also acknowledge that I am glad my requirement to have
redundancies in actions and fuel resources plans was also included in
the manager's amendment.
I thank the gentleman from New Mexico for his leadership. It's my
pleasure to be able to work with you for an amendment that is doing
something, is helping the independents stay in business and create
jobs, and it is helping them do the work that will allow for the
American people to have quality oil for cheap prices.
I rise to speak in support of the Teague/Jackson Lee Amendment to
H.R. 3534, The Consolidated Land, Energy and Aquatic Resources (CLEAR
Act). The Jackson Lee Amendment would allow the financial
responsibility required to operate in the Gulf of Mexico to be pooled
among the companies working together.
With the potential of unlimited liability looming large over the
smaller independent companies, this amendment will prevent small,
independent oil companies from being driven out of business and out of
the Gulf of Mexico. The problem with the current requirements for the
Certificate of Oil Field Responsibility (COFR) is that smaller
operators will be unable to establish the $300 million necessary COFR
to even begin exploration and development. By allowing smaller
companies--who frequently work together in joint ventures--to pool
their resources for COFR purposes, we will prevent the Gulf from
becoming the exclusive province of companies big enough to self-insure,
and allow the small businesses of the Gulf Coast Community to continue
to provide jobs and drive our economy.
I urge my colleagues to vote for this amendment and vote for small
businesses, saving jobs, and the American people.
The CHAIR. The gentleman from New Mexico has 30 seconds remaining.
The gentleman from Colorado has 2\1/2\ minutes remaining and has the
right to close.
Mr. TEAGUE. I have no further requests for time, and I yield back the
balance of my time.
Mr. LAMBORN. Mr. Chairman, I would just reiterate that we have no
objection to this amendment. I wish it really accomplished something,
because the deeper things that are problems in this bill are going to
kill offshore production in large part; and we don't need to be killing
jobs and raising taxes in the time of a recession.
We have no objection to the amendment because it doesn't do any harm.
I yield back the balance of my time.
The CHAIR. The question is on the amendment offered by the gentleman
from New Mexico (Mr. Teague).
The question was taken; and the Chair announced that the ayes
appeared to have it.
Mr. CUMMINGS. Mr. Chairman, I demand a recorded vote.
The CHAIR. Pursuant to clause 6 of rule XVIII, further proceedings on
the amendment offered by the gentleman from New Mexico will be
postponed.
{time} 1540
Amendment No. 6 Offered by Mr. Oberstar
The CHAIR. It is now in order to consider amendment No. 6 printed in
part B of House Report 111-582.
Mr. OBERSTAR. Mr. Chairman, as the designee of the gentleman from
Connecticut (Mr. Himes), I offer amendment No. 6.
The CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
Page 172, after line 8, insert the following:
(e) Considerations of Trustees.--Section 1006(d) of such
Act (33 U.S.C. 2706(d)) is amended by adding at the end the
following:
``(4) Considerations of trustees.--
``(A) Equal and full consideration.--Trustees shall--
``(i) give equal and full consideration to restoration,
rehabilitation, replacement, and the acquisition of the
equivalent of the natural resources under their trusteeship;
and
``(ii) consider restoration, rehabilitation, replacement,
and the acquisition of the equivalent of the natural
resources under their trusteeship in a holistic ecosystem
context and using, where available, eco-regional or natural
resource plans.
[[Page H6546]]
``(B) Special rule on acquisition.--Acquisition shall only
be given full and equal consideration under subparagraph (A)
if it provides a substantially greater likelihood of
improving the resilience of the lost or damaged resource and
supports local ecological processes.''.
Page 172, line 9, strike ``(e)'' and insert ``(f)''.
The CHAIR. Pursuant to House Resolution 1574, the gentleman from
Minnesota (Mr. Oberstar) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentleman from Minnesota.
Mr. OBERSTAR. Mr. Chairman, I yield myself 3 minutes.
The amendment addresses two important issues on restoration of
natural resources damaged as a result of release or threatened release
of oil under OPA, the Oil Pollution Act.
The first issue is acquisition of additional natural resources as
part of a potential remedy for damages in instances where the existing
resource cannot be or is unlikely to be successfully restored. In OPA,
section 1006, provides that damages to natural resources can be
addressed either through restoration, rehabilitation, replacement or
acquisition of equivalent resources, where other measures are unlikely
or impossible to be implemented.
The Himes amendment, which I offer on his behalf, emphasizes that
acquisition of a natural equivalent resource can be an acceptable
alternative to restoration or rehabilitation. Consistent with current
law, the acquisition of an equivalent natural resource should be used
only when restoration is likely to be unsuccessful or the acquisition
provides a substantially greater likelihood of improving resilience of
the lost or damaged resource and supports local ecological processes.
The second part of the amendment will ensure that natural resource
damage assessments and implementation emphasize restoring the entire
damaged ecosystem rather than dealing simply with specific, discrete
segments thereof. The gulf coast is such a unique resource with
countless species of fish, shellfish, marine life, wildlife, all
integrated, and it really needs to be treated as an overall cohesive
ecosystem.
This amendment addresses two important issues related to the
restoration of any natural resources damaged as a result of the release
or threatened of oil under the Oil Pollution Act, OPA.
The first issue deals with the acquisition of additional natural
resources as part of a potential remedy for damages, in those instances
where the existing resource cannot, or is unlikely to be, successfully
restored. Section 1006 of OPA provides that damages to natural
resources can be addressed either through restoration, rehabilitation,
replacement, or the acquisition of the equivalent resources where other
measures are unlikely or impossible to be successfully implemented.
The Himes amendment emphasizes that acquisition of an equivalent
natural resource can be an acceptable alternative to restoration or
rehabilitation; however, consistent with current law, the acquisition
of an equivalent natural resource should be utilized only when
restoration or rehabilitation of the existing, damaged resource is
likely to be unsuccessful, and the acquisition provides a
``substantially greater likelihood of improving the resilience of the
lost or damaged resource and supports local ecological processes.''
The second portion of the Himes amendment will ensure that natural
resource damage assessments and implementation emphasize restoring the
entire damage ecosystem, rather than dealing with individual, specific
locations. The Gulf of Mexico is unique in that it serves as a focal
point for countless species of fish, shellfish, marine life, and
wildlife.
The Gulf of Mexico coastal area contains more than half of the
coastal wetlands within the lower 48 states, as well as numerous
recreational opportunities in the States of Texas, Louisiana,
Mississippi, Alabama, and Florida. According to the National Oceanic
and Atmospheric Administration, NOAA, 97 percent of the commercial fish
and shellfish landings come from the Gulf, and depend on the estuaries
and their wetlands at some point in their life cycle. The Gulf also
serves as vital habitat to many species of breeding, wintering, and
migrating waterfowl, songbirds, and other marine mammals and reptiles.
According to the U.S. Fish and Wildlife Service, the Gulf supports a
``disproportionately high number of beach-nesting bird species'' that
relay on the beaches, barrier islands, and similar habitats as part of
their annual breeding cycle.
I applaud the gentleman's amendment because it stresses the
importance of addressing damaged natural resources in a holistic
ecosystem approach. I urge my colleagues to support this amendment.
I reserve the balance of my time.
Mr. HASTINGS of Washington. Mr. Chairman, I rise in opposition to the
amendment.
The CHAIR. The gentleman is recognized for 5 minutes.
Mr. HASTINGS of Washington. Mr. Chairman, I yield myself 3 minutes.
Mr. Chairman, let's be pretty specific on what this particular fund
is all about, and I will explain why I think it is a very, very bad
idea.
The fundamental goal of the Natural Resources Damages Act, that's the
fund we are talking about, is to ensure the protection and restoration
of all resources on Federal lands, water and land. This includes
restoration of damages caused by fires, invasive species, oil spills,
ship groundings and vandalism.
What this amendment attempts to do is to shift funds from the
restoration of our national parks and national wildlife refuges to the
purchase of nonimpacted land.
Now, Mr. Chairman, I just find this amendment ironic. Since the
legislation, the underlying legislation that we are debating, already
mandates--let me emphasize that, Mr. Chairman, mandates--up to $30
billion, with a ``B,'' dollars to spend on land acquisition for the
next 30 years, why do we need this amendment?
Why, for goodness sakes, will we take a fund, the Natural Resources
Damages Fund, if you will, and say, okay, now you can use that for land
acquisition.
Is $30 billion not enough? Is $30 billion not enough?
Let me put it in a different way, Mr. Chairman. One of the issues
that we have in our country with public lands is a maintenance backlog.
This is analogous to maintenance backlog.
We talk about we haven't got enough money to maintain our natural
resources. In fact, that figure, last I heard it, was $9 billion. Here
is a fund that is, in part, part of the restoration and one could say
maintenance of our Federal lands, and we want to take money away from
that and acquire more land.
What is the goal here? Is the goal here to increase the $9 billion to
10, 11? Who knows how high we can't maintain.
Is there not enough? This amendment, in my view, ought to be
defeated. It's not well intentioned at all. It has taken another
tragedy, using the tragedy of the Gulf of Mexico and simply saying,
aha, another opportunity to take a fund and buy more Federal land.
This doesn't make any sense at all to me, Mr. Chairman. I urge my
colleagues to vote ``no.''
I reserve the balance of my time.
Mr. OBERSTAR. I yield 1 minute to the gentleman from Colorado (Mr.
Polis).
Mr. POLIS. Mr. Chairman, I rise today in support of the Himes
amendment and on behalf of its sponsor, as he has been called away for
a short time to attend the funeral of a fallen firefighter. Our hearts
are with those who are grieving today with my colleague, Mr. Himes.
Mr. Himes' amendment builds upon other lessons learned from the Exxon
Valdez spill. The Himes amendment improves an existing environmental
restoration provision that authorizes a program to protect wildlife
habitats similar to those ruined by a spill and have the responsible
party cover the cost of purchasing or preserving such areas.
I would also like to thank the Natural Resources Committee and
Transportation Committee for working with me and incorporating
provisions that address a number of my priorities in the manager's
amendment; namely, including language that will better ensure that the
Department of the Interior follows the law as it is supposed to.
Mr. Chairman, I rise in strong support of the Himes amendment and the
underlying bill. The CLEAR Act is good and desperately needed policy to
help prevent taxpayer bailouts for Big Oil's failures.
The CLEAR Act is a model of transparency, fiscal responsibility and
good stewardship. I call upon my colleagues to join me in supporting
the Himes amendment and the underlying bill.
Mr. HASTINGS of Washington. I understand I have the right to close,
Mr. Chairman?
The CHAIR. The gentleman from Washington has the right to close.
[[Page H6547]]
Mr. HASTINGS of Washington. I reserve the balance of my time.
Mr. OBERSTAR. I yield myself the balance of my time.
The CHAIR. The gentleman from Minnesota is recognized for 2 minutes.
Mr. OBERSTAR. The gentleman from Washington is mistaken in his
understanding or his reading of the amendment that I offer.
It's an amendment to OPA. It is not an amendment to the dollar
amounts and does not reference dollar amounts. Under OPA, of which I
was a coauthor in 1990, quote, the State and local officials designated
under this subsection shall develop and implement a plan for the
restoration, rehabilitation, replacement or acquisition of the
equivalent of the natural resources under their trusteeship.
The language of OPA does not clearly enough refer to the level of
replacement resources that may be damaged. What we do with this
language is clarify the ability to restore those resources that have
been damaged with an equivalent resource. That's all it does. It does
not have a dollar amount in it.
I yield to the gentleman if he has a question.
Mr. HASTINGS of Washington. I thank the gentleman for yielding.
In due respect, you acknowledged that this could be used to buy
additional land with a damage fund, is that correct?
Mr. OBERSTAR. Well, it is to replace what has been destroyed. It's
really just clarifying what is already available under OPA, but making
it clear that the funds can be used for those resources that have been
damaged so badly they can't be restored.
Mr. HASTINGS of Washington. Yes, it clarifies, but it adds a very
important part. It allows land acquisition.
{time} 1550
Mr. OBERSTAR. Reclaiming my time, it does not add. That is current
law. That is available under OPA.
The CHAIR. The time of the gentleman has expired.
Mr. HASTINGS of Washington. Mr. Chairman, may I inquire as to how
much time I have remaining?
The CHAIR. The gentleman has 2\1/2\ minutes remaining.
Mr. HASTINGS of Washington. Mr. Chairman, I yield myself the balance
of my time.
I yield to the gentleman from Minnesota to finish his remark.
Mr. OBERSTAR. Again, the acquisition of replacement land is available
and authorized under OPA 90. What this amendment does is clarify that
in that replacement you can replace that part of the ecosystem that has
been irresponsibly damaged with better land. It doesn't add new
acquisition authority.
Mr. HASTINGS of Washington. Reclaiming my time, I appreciate the
gentleman's trying to clarify that.
I have to say, in my reading of this, that this will lend itself to
more acquisition, and I will simply say this, reading the language
here, ``provides a substantially greater likelihood of improving the
resilience of whatever is lost.'' Now, having said that, let me put
this analogous to at least my part of the country as it relates to
refuges. If a refuge burns in my area and it might damage something,
the way I envision the interpretation of this is the refuge manager can
say, boy, this is irreparably lost and there might be some private land
right next door, I think I will buy that private land.
Now, in due respect, that is the way I interpret it. Listen, I hope
I'm wrong and I hope you're right, but I have a very strong wariness of
any attempt--especially in a bill, I say to my friend, the
Transportation chairman, especially when we are authorizing $30 billion
of land acquisition. Surely, surely there must be a way to massage that
to satisfy at least what the gentleman's amendment purports to do. But
I have to say, for this Member, I am always weary when I see we are
taking another fund and using that to acquire even an extension of
Federal lands.
Mr. OBERSTAR. Will the gentleman yield?
Mr. HASTINGS of Washington. I yield to the gentleman from Minnesota.
Mr. OBERSTAR. I appreciate the gentleman yielding.
I, too, have natural resources--national forests, national parks,
wildlife refuges. When fire, as it does regularly, strikes the national
forest, that land regenerates. The oil destroys. It likely cannot be
restored by itself or by human intervention, but replacing it with
other land--and the language is tailored very narrowly limited to that
purpose of replacing what cannot be replaced.
Mr. HASTINGS of Washington. Reclaiming my time, which I don't have, I
appreciate the gentleman's trying to help me through this. I still urge
my colleagues to vote ``no.''
The CHAIR. The question is on the amendment offered by the gentleman
from Minnesota (Mr. Oberstar).
The question was taken; and the Chair announced that the ayes
appeared to have it.
Mr. HASTINGS of Washington. Mr. Chairman, I demand a recorded vote.
The CHAIR. Pursuant to clause 6 of rule XVIII, further proceedings on
the amendment offered by the gentleman from Minnesota will be
postponed.
Amendment No. 7 Offered by Mr. Connolly of Virginia
The CHAIR. It is now in order to consider amendment No. 7 printed in
part B of House Report 111-582.
Mr. CONNOLLY of Virginia. Mr. Chairman, I have an amendment at the
desk.
The CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
At the end of title VII add the following new section:
SEC. __. EXTENSION OF LIABILITY TO PERSONS HAVING OWNERSHIP
INTERESTS IN RESPONSIBLE PARTIES.
(a) Definition of Responsible Party.--Section 1001(32) of
the Oil Pollution Act of 1990 (33 U.S.C. 2701(32)) is amended
by adding at the end the following:
``(G) Person having ownership interest.--Any person, other
than an individual, having an ownership interest (directly or
indirectly) in any entity described in any of subparagraphs
(A) through (F) of more than 25 percent, in the aggregate, of
the total ownership interests in such entity, if the assets
of such entity are insufficient to pay the claims owed by
such entity as a responsible party under this Act.''.
(b) Effective Date.--The amendment made by this section
shall apply to an incident occurring on or after January 1,
2010.
The CHAIR. Pursuant to House Resolution 1574, the gentleman from
Virginia (Mr. Connolly) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentleman from Virginia.
Mr. CONNOLLY of Virginia. I want to thank Chairman Rahall and
Chairman Oberstar, in particular, for their hard work on this bill and
for their collaboration on this amendment.
I am joined by Congressman Holt and Congressman Welch, who co-
introduced this amendment to ensure that oil companies cannot shift oil
cleanup costs onto taxpayers by allowing subsidiary companies to go
bankrupt.
Under current law, if an oil subsidiary is responsible for a spill,
it can declare bankruptcy and not sell its assets, in which case the
parent company would not inherit cleanup liabilities. A profit-
maximizing parent company would allow a subsidiary to go bankrupt and
not sell liabilities if the value of cleanup and liability costs exceed
the value of the subsidiary's assets. This is a realistic scenario
given the high cost of the cleanup of oil spills. Even a well
capitalized company worth several billions could be responsible for an
oil spill costing tens of billions. The Exxon Valdez spill cost more
than $2 billion to clean up, and that was just 10.9 million gallons of
oil. The Deepwater Horizon spill already has cost $3 billion, with
total cleanup cost in the tens of billions at the very least. Through
this act, oil companies could be responsible for much greater costs.
The fishing industry in the gulf is worth $5.5 billion annually.
Losing 50 percent of western Florida's tourism would cost that State
$10 billion. If Congress eliminates the private liability cap under
OPA, then an oil company responsible for a spill could be liable for
tens of billions to reimburse property owners and workers for lost
property and wages.
Given the extraordinarily high cleanup and private liability costs of
oil spills, we must close this loophole. Our amendment would ensure
that BP and other oil companies are not able to escape their cleanup
responsibilities. Without passage of this amendment, BP and other oil
companies could avoid paying for cleanup costs entirely.
I urge my colleagues to support the amendment.
[[Page H6548]]
Mr. Chairman, I reserve the balance of my time.
Mr. HASTINGS of Washington. Mr. Chairman, I rise to claim the time in
opposition, although I am not opposed to the amendment.
The CHAIR. The gentleman is recognized for 5 minutes.
Mr. HASTINGS of Washington. Mr. Chairman, I yield myself such time as
I may consume.
Mr. Chairman, I have no problem with this amendment. From the
beginning we have said that the first priority is stopping the leak,
cleaning up the gulf, and making the communities and the people of the
gulf States whole, and BP needs to be held accountable for this
disaster. Having said that, we need to be cognizant that our actions
taken here or the actions of the administration do not in and of
themselves jeopardize American jobs and domestic energy production.
Part of holding BP accountable in this case, should BP America file
for bankruptcy, is to ensure that the parent company that shares in the
profits cover whatever debts that may not be covered by BP America.
That is what this amendment does, and I am pleased to join my support
for this.
Mr. Chairman, I yield back the balance of my time.
Mr. CONNOLLY of Virginia. Mr. Chairman, I yield 1 minute to my
colleague from New Jersey (Mr. Holt).
Mr. HOLT. Mr. Chairman, I thank the gentleman from Virginia and join
with him in our concern for the workers, the restaurateurs, the small
business owners, all those who depend on the Gulf of Mexico for their
livelihoods. This gives us ample motivation to close this loophole
which allows oil companies to shift the cost for cleanup from the oil
company to the taxpayers. Current law would allow an oil company
subsidiary that is responsible for an oil spill to declare bankruptcy.
We must not depend just on the good word of the oil companies. We
have been given ample reason to question that good word. Even today,
the new CEO of BP says he's entertaining the idea of scaling back the
cleanup in the gulf. We must close every loophole. This amendment of
Mr. Connolly, Mr. Welch and I, and others, would ensure that companies
like BP pay every last cent that they are liable for, that the spill
not spill over to the taxpayer.
Mr. CONNOLLY of Virginia. I yield 1 minute to my colleague from the
great State of Maryland (Mr. Cummings).
Mr. CUMMINGS. I thank the gentleman for yielding.
This amendment states that any entity--other than an individual
person--with an ownership interest in a vessel, offshore or onshore
facility, deepwater port, or pipeline of more than 25 percent is a
responsible party under the Oil Pollution Act if the assets of the
vessel or facility are insufficient to pay claims arising from oil
spilled by the vessel or facility. I applaud Mr. Connolly, Mr. Holt,
and Mr. Welch, and I support this amendment, which will ensure that
parent companies with ownership stakes in subsidiaries to offshore
facility ventures bear the costs owed by these subsidiaries for spills
from the facilities if the facilities lack adequate assets to pay the
claims. This will prevent such costs from being shifted to the Oil
Spill Liability Trust Fund. I urge my colleagues to support the
amendment.
{time} 1600
Mr. CONNOLLY of Virginia. Mr. Chairman, I want to thank my
colleagues.
I also want to thank the following staff for their assistance on this
amendment: Dave Heymsfeld, Stacie Soumbeniotis, Ryan Seiger, Navis
Bermudez, Susan Jensen, George Slover, and David Lachman.
We want to ensure that this amendment only affects the relationship
of parent and subsidiary companies.
With that, Mr. Chairman, I yield back the balance of my time.
The CHAIR. The question is on the amendment offered by the gentleman
from Virginia (Mr. Connolly).
The amendment was agreed to.
Amendment No. 8 Offered by Mr. Melancon
The CHAIR. It is now in order to consider amendment No. 8 printed in
part B of House Report 111-582.
Mr. MELANCON. Mr. Chairman, I have an amendment at the desk.
The CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
At the end of title II add the following:
Subtitle C--Limitation on Moratorium
SEC. 231. 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 application for a permit to
drill submitted on or after the effective date of this Act 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);
(2) has complied with additional safety measures
recommended by the Secretary as of the date of the enactment
of this Act; and
(3) 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), (2), and (3) 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.
(e) Report to Congress.--Not later than October 31, 2010,
the Secretary shall report to the House Committee on Natural
Resources and the Senate Committee on Energy and Natural
Resources on the status of (1) the collection and analysis of
evidence regarding the potential causes of the April 20, 2010
explosion and sinking of the Deepwater Horizon offshore
drilling rig, including information collected by the
Presidential Commission and other investigations (2)
implementation of safety reforms described in the May 27,
2010, Departmental report entitled ``Increased Safety
Measures for Energy Development on the Outer Continental
Shelf,'' (3) the ability of operators in the Gulf of Mexico
to respond effectively to an oil spill in light of the
Deepwater Horizon incident; and (4) industry and government
efforts to engineer, design, construct and assemble wild well
intervention and blowout containment resources necessary to
contain an uncontrolled release of hydrocarbons in deep water
should another blowout occur.
(f) Savings Clause.--Nothing herein affects the Secretary's
authority to suspend offshore drilling permitting and
drilling operations based on the threat of significant,
irreparable or immediate harm or damage to life, property, or
the marine, coastal or human environment pursuant to the
Outer Continental Shelf Lands Act (43 U.S.C. 133 et. seq.).
Unanimous-Consent Request
Mr. BOUSTANY. Mr. Chairman, I have a unanimous consent request.
The CHAIR. The gentleman will state his request.
Mr. BOUSTANY. I ask unanimous consent that we extend the time of
debate equally between the two sides for a total of 30 minutes on this
very important issue affecting our State and other States on the gulf
coast. We are really talking about jobs, and I think having this extra
time of debate will be very important.
The CHAIR. Is there an objection to the request?
Mr. RAHALL. I reserve the right to object.
Mr. Chairman, I know a lot of Members are under time pressures
because of airline schedules, et cetera. I feel compelled to object.
The CHAIR. Objection is heard.
Mr. RAHALL. Plus, if the gentleman would yield further, I am prepared
to accept the amendment.
The CHAIR. Objection is heard.
Mr. BOUSTANY. We would like to extend the debate. We ask unanimous
consent to extend it for 20 minutes, equally divided.
The CHAIR. Is there objection?
Mr. MELANCON. In light of the concern of the chairman of the
committee and the whole of the bill, which is his jurisdiction, I
respectfully yield to his opinion on how he wants that handled.
The CHAIR. Is there an objection to the request of the gentleman to
extend the time of the debate?
Mr. MELANCON. I would accept the time.
The CHAIR. Is the gentleman objecting to the extension of the debate?
Mr. RAHALL. It is 20 minutes; is that correct?
[[Page H6549]]
Mr. BOUSTANY. Ten minutes on each side.
Mr. RAHALL. I still have to object.
The CHAIR. The gentleman's objection is heard.
Pursuant to House Resolution 1574, the gentleman from Louisiana (Mr.
Melancon) and a Member opposed each will control 5 minutes.
The Chair recognizes the gentleman from Louisiana.
Mr. MELANCON. I would like to thank my colleague from West Virginia
for his help on this amendment.
Mr. Chairman, I urge my colleagues to support this amendment to lift
the deepwater moratorium for companies that meet the new safety
requirements and guidelines recently set in place by Secretary Salazar.
Make no mistake, BP was a bad player. As we have discovered through
numerous congressional hearings, this company took dangerous shortcuts
to save money. They ignored warning signs and the advice of their own
workers who were concerned about the stability of the well, and they
continued to drill even when they knew that the safety mechanisms in
place to prevent a blowout were not working properly. Eleven good men
died because of their greed.
The tragedy on Deepwater opened our eyes to the need for tougher
safety regulations for offshore drilling, to the need to strengthen the
enforcement of both new and existing laws, and to the need to protect
workers who report their companies' dangerous and even illegal
practices to regulators so that we can stop another accident before it
happens.
Yet an indiscriminate blanket moratorium punishes the innocent along
with the guilty for the actions and the poor judgment of one reckless
company. If a rig meets all of the tough new safety requirements issued
by the Department of the Interior, if it has been fully inspected and
deemed safe, why should it sit idle? The workers of that rig, why
should they go jobless until the arbitrary 6-month period is over?
People in Louisiana understand that it doesn't make any sense.
Louisianans, more than any other people, want to prevent another
disaster from happening in our waters, but the irresponsible decisions
and the dangerous actions of one company shouldn't shut down an entire
sector of our economy, sending thousands of workers to the unemployment
line. We need to fix the problems that led to this disaster in the gulf
without paralyzing America's domestic energy industry in the process.
That is what my amendment does. Instead of a blanket moratorium, my
amendment would allow drilling permits to be approved for those rigs
that meet the new tougher safety requirements issued by the Department
of the Interior in the wake of the explosion. Those 31 stalled drilling
rigs directly employ some 1,400 workers. Hundreds of small businesses
in Louisiana service those rigs or are, in some way, supported by the
offshore oil and gas industry.
According to research by Dr. Joseph Mason of Louisiana State
University, under the current 6-month moratorium, the gulf coast region
will lose more than 8,000 jobs, nearly $500 million in wages and over
$2.1 billion in economic activity, as well as nearly $100 million in
State and local tax revenue--and that's only if the drilling will start
back immediately in 6 months.
You don't need to be an economist to see the impact of the moratorium
on south Louisiana. You just need to drive through coastal parishes
like Lafourche, Terrebonne, or Grand Isle, Louisiana. Talk to people
like Shelly Landry, who owns and operates a family grocery store there
on Grand Isle. She told me, with tears in her eyes, that the moratorium
was shutting down the coast and that it was hurting her business more
than the actual oil spill. People like Ms. Landry are still learning to
cope with the impact of the oil disaster, and now they feel they are
being dealt a second blow--this time by their own government.
Louisiana has a working coast where people make good paychecks
producing domestic energy that drives our Nation. They want to get back
to work doing the jobs they love, the jobs that provide good lives for
their families.
The Childers-Melancon amendment will lift the moratorium in a
responsible way and allow our workers to continue producing energy. It
will still hold companies accountable for higher safety standards so
that we never again experience a disaster such as that like Deepwater.
On behalf of the workers of the gulf coast, on behalf of the small
businesses, and on behalf of all of the people of my State who thought
they had made it through the worst part of this disaster, I urge my
colleagues to vote for this amendment to lift this administration's
offshore drilling moratorium to make life better and as normal as
possible for an area that has been devastated several times over the
last several years.
I reserve the balance of my time.
Mr. HASTINGS of Washington. Mr. Chairman, I rise to claim time in
opposition.
The CHAIR. The gentleman is recognized for 5 minutes.
Mr. HASTINGS of Washington. Mr. Chairman, I am very pleased to yield
4 minutes to the gentleman from Louisiana (Mr. Scalise).
Mr. SCALISE. I appreciate the gentleman from Washington for yielding
time.
Mr. Chairman, I share in many of the comments that were expressed by
my colleague from Louisiana, Mr. Melancon.
In fact, when you talk to people on the ground in Louisiana, most
will tell you that this moratorium that was arbitrarily issued by the
President has actually got the potential to do more long-term damage to
our State than the oil spill, itself. Unfortunately, we are already
seeing the consequences in terms of lost jobs.
If you look at what would happen, not if this would go 6 months--as
Secretary Salazar wants to go--but if this just goes another few weeks,
we will lose up to 40,000 high-paying jobs that will go overseas. If
anybody is wondering whether or not that is just talk, you can look at
what is already happening.
Just 2 days ago, Baker Hughes, a big oilfield service company, sent
300 jobs overseas. It laid off 300 Louisiana workers. These are jobs
that have gone overseas because of this moratorium. It is already
having a devastating impact. That is why it is so important that we
pass an amendment that actually ends this current moratorium.
If you look at the language in the amendment, there are a number of
components that I do agree with, and I think the intent was there to
actually address those problems; but if you go to page 2, there are a
few sections that got added in. In fact, I am a cosponsor with my
colleague from Louisiana on an amendment that would actually end the
moratorium in its current form. Unfortunately, there was some language
added in that allows the Secretary to have statutory authority that he
does not have today that actually extends his ability to issue more
moratoriums even if this current one is stopped.
So what the industry is dealing with today is this kind of
uncertainty. That is why you are already seeing rigs leave. In fact,
three rigs have already left. One is going to Egypt. These are all
going to foreign countries. So we have got to get this right.
{time} 1610
In fact, later today we're going to have a motion to recommit that
will actually encompass those things that are necessary to be done to
end the moratorium without the damaging language that's in this bill
that gives the Secretary even more authority, in fact, even if a
company complies with all of the safety requirements, as they should,
and they should comply with all the safety recommendations. But even if
they do, under this language, the Secretary is given power to decide
whether or not to issue that permit. That shouldn't be arbitrary once a
company meets all the safety recommendations. BP didn't meet them all.
But if a company does, the Secretary can't continue to keep this job-
killing moratorium going on. So we have to fix that language. And, in
fact, our motion to recommit does that.
If you look, our Louisiana Oil and Gas Association, which is not a
representative of the Big Oil companies--in fact, it's a lot of the mom
and pop of the independent oil and gas companies throughout Louisiana.
They have
[[Page H6550]]
strong concerns. In fact, they say, We have concerns that this may
codify--they're talking about this extra language and power that's
given to the Secretary to deny permits--they say, We have concerns that
this may codify the Secretary's authority to suspend offshore drilling
permitting and drilling operations.
It is our position that the Secretary does not have the right to do
so; and, in fact, a Federal judge has agreed with that by trying to
stop this moratorium. Unfortunately, the administration ignored that.
And they further go on to say, It is our position that applicants who
apply for a permit and meet the proper safety requirements should be
issued the permit. The Secretary shouldn't be able to decide
arbitrarily if he wants to continue to shut down domestic oil
production in this country, as we're seeing today. And we're seeing the
consequences of it.
As I said earlier this week, we already lost 300 jobs. And this
wasn't the first time; and, unfortunately, it won't be the last. Many
companies you talk to are already having conversations about moving
jobs overseas, if they haven't already. And as I mentioned, three of
the rigs have already decided they have got to leave the country
because of this moratorium. That is why it is so important that we get
it right. We can't just pass something that sounds good but ultimately
ends up giving the Secretary more authority to keep the moratorium
going and run more jobs out of our country. So hopefully we will pass
the motion to recommit later but not give the Secretary more authority.
This does.
Mr. MELANCON. I yield 30 seconds to the gentleman from West Virginia,
Chairman Rahall.
Mr. RAHALL. I appreciate the gentleman from Louisiana's yielding, and
I commend him for his commonsense amendment here.
This, of course, would end the moratorium on drilling in the gulf on
rigs that have met the safety requirements prescribed in two notices to
lessees issued by the DOI as well as other safety standards described
by enactment of this legislation. This legislation is about safety on
these rigs, and we do put in some new language that does certify and
verify that there is necessary safety in place. I urge support.
The CHAIR. The time of the gentleman has expired.
Mr. HASTINGS of Washington. Mr. Chairman, I am very, very pleased to
yield the balance of my time to the gentleman from Louisiana (Mr.
Boustany).
Mr. BOUSTANY. Mr. Chair, I appreciate the efforts on the part of my
colleague from Louisiana (Mr. Melancon). But what we have seen is, we
have a current moratorium on deepwater drilling and a de facto
moratorium on shallow water drilling. And I'm afraid that this
amendment doesn't fully address the issue. It doesn't address the
current moratorium, whereby we are hemorrhaging jobs. The 300 jobs my
colleague over here, Mr. Scalise, just referenced were from Baker
Hughes in my district, and those don't count the shallow water jobs
that we are losing daily from companies I have been hearing about each
day.
So the problem we have is with the section on page 2, which continues
to allow the Secretary this wide latitude beyond the normal permitting
process. So we have a real problem with this. We think our motion to
recommit that we are going to offer later will actually give a clean
break on getting rid of this moratorium, which is killing American
energy production jobs, making us more dependent on foreign oil. It's
not the kind of policy that we need. I know my colleague from Louisiana
(Mr. Melancon) wants to solve this problem, but we have concerns about
this specific language.
Mr. CHILDERS. Mr. Chair, I rise today in support of the amendment I
introduced with my friend and colleague from Louisiana, Mr. Melancon.
The amendment would lift the moratorium on deepwater drilling for the
responsible actors who meet strict safety requirements for their
drilling operations. The Deepwater Horizon oil spill has been a tragedy
for the Gulf Coast, one we can ill afford as our nation works toward
economic recovery. However, in the state of Mississippi, thousands of
workers are employed by the deepwater drilling industry. Because of the
moratorium these hard-working Americans will struggle to make ends meet
in an already difficult economic environment. The Gulf Coast, from
Florida to Texas, is suffering from this disaster and in Mississippi we
cannot afford to lose even more jobs due to this tragedy. The path to
recovery from the Deepwater Horizon disaster will be long; we should
not stand in the way of safe and responsible employers and the families
they support.
I applaud the reorganization of the ethics plagued Minerals
Management Service by the Department of the Interior in the underlying
bill. It is my hope that the new regulatory structure will be an
effective tool for ensuring safe drilling practices so that lives are
not lost and moratoriums are not needed. Deepwater drilling is not only
a source of American jobs but also an important source of domestic
energy production in our fight for energy independence.
I ask my colleagues to join me today in supporting this amendment to
save jobs and help the entire Gulf Coast region to recover.
The CHAIR. All time has expired.
Parliamentary Inquiry
Mr. MELANCON. Parliamentary inquiry.
The CHAIR. The gentleman from Louisiana is recognized for a
parliamentary inquiry.
Mr. MELANCON. I would like to thank my colleagues and ask for
unanimous consent to consider a revised amendment which addresses the
issues they are concerned about.
Mr. HASTINGS of Washington. Mr. Chairman, I object.
The CHAIR. Object is heard.
The question is on the amendment offered by the gentleman from
Louisiana (Mr. Melancon).
The question was taken; and the Chair announced that the ayes
appeared to have it.
Mr. HASTINGS of Washington. Mr. Chairman, I demand a recorded vote.
The CHAIR. Pursuant to clause 6 of rule XVIII, further proceedings on
the amendment offered by the gentleman from Louisiana will be
postponed.
Amendment No. 9 Offered by Mr. Melancon
The CHAIR. It is now in order to consider amendment No. 9 printed in
part B of House Report 111-582.
Mr. MELANCON. Mr. Chair, I have an amendment at the desk.
The CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
At the end of title V, add the following new section (and
conform the table of contents accordingly):
SEC. 504. GULF OF MEXICO RESTORATION ACCOUNT.
(a) Establishment of Special Account.--There is established
in the Treasury of the United States a separate account to be
known as the ``Gulf of Mexico Restoration Account''.
(b) Funding.--The Gulf of Mexico Restoration Account shall
consist of such amounts as may be appropriated or credited to
such Account by section 311A of the Federal Water Pollution
Control Act.
(c) Expenditures.--Amounts in the Gulf of Mexico
Restoration Account shall be available, as provided in
appropriations Acts, to carry out projects, programs, and
activities as recommended by the Gulf of Mexico Restoration
Task Force established in this title.
(d) Amendment to the Federal Water Pollution Control Act.--
(1) In general.--Title III of the Federal Water Pollution
Control Act is amended by inserting after section 311 the
following:
``SEC. 311A. ADDITIONAL PENALTIES FOR LARGE SPILLS IN THE
GULF OF MEXICO.
``(a) In General.--In the case of an offshore facility from
which more than 1,000,000 barrels of oil or a hazardous
substance is discharged into the Gulf of Mexico in violation
of section 311(b)(3), any person who is the owner or operator
of the facility shall be subject to a civil penalty of
$200,000,000 for each 1,000,000 barrels discharged.
``(b) Relationship to Other Penalties.--The civil penalty
under subsection (a) shall be in addition to any other
penalties to which the owner or operator of the facility is
subject, including those under section 311.''.
(2) Effective date.--The amendment made by paragraph (1)
takes effect on April 1, 2010.
The CHAIR. Pursuant to House Resolution 1574, the gentleman from
Louisiana (Mr. Melancon) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentleman from Louisiana.
Mr. MELANCON. Mr. Chair, I urge my colleagues to support the Gulf
Coast Restoration Amendment for one simple reason: responsible oil-
spill response legislation must include funding to address the rapid
deterioration of our crumbling coast.
Coastal erosion has chipped away at our barrier islands, beaches and
marshes for decades. Louisiana alone loses a football field of coast
every 38 minutes and is set to lose another 500 square miles by 2050.
But the BP oil
[[Page H6551]]
spill will accelerate land loss as our marshes die from exposure to oil
and chemicals from the cleanup. This disaster has effectively hit the
fast forward button on an already terrible problem.
BP will foot the bill for the cleanup effort. We will hold them to
their responsibility and their word, but they are not legally bound to
address the accelerated land loss as a result of the spill. My
amendment will make certain they don't simply clean the water and walk
away from the long-term damage to our coast and marshes.
My amendment would create a new civil penalty on gulf coast spills of
more than 1 million barrels. The owner or operator of the rig would be
responsible for paying $200 million per 1 million barrels spilled to
fund environmental restoration projects to save the gulf coast.
Restoration projects would be spread across the Gulf Coast States and
would be overseen by the Gulf Coast Coordination Council, a task force
of Federal, State and local stakeholders, created by this bill. My
amendment is deficit-neutral and comes at no cost to taxpayers or to
the Federal Government.
Survival of the gulf coast's fragile ecosystem and the fishing and
tourism industries that rely on them hinges upon successful restoration
of our wetlands. Without them, many gulf communities will vanish, and
the rest of the country will lose access to the seafood and recreation
they have enjoyed for decades.
The gulf coast is America's working coast. We contribute $3 trillion
annually to the economy. Seven of our country's top 10 ports are
located in the gulf, and 40 percent of our Nation's seafood is
harvested from its waters. President Obama has charged the oil spill
response team with finding long-term solutions for repairing our coast.
Our families back home are depending on Congress to restore their
livelihoods, and we have that opportunity today.
Earlier this month, just after news broke that BP had finally capped
their well, Bob Marshall of The Times-Picayune wrote a lengthy column
about the long road ahead for south Louisiana and this cleanup. He
wrote: ``We need to remember this is a temporary problem on top of a
permanent disaster. Long after BP's oil is gone, we'll still be
fighting for survival against a much more serious enemy--our sinking,
crumbling delta. Our coast is like a cancer patient who has come down
with pneumonia. That's serious, but curable. After the fever breaks,
he'll still have cancer. Our officials' focus should remain on stopping
the activities that continue to destroy our marshes and getting
national support for projects that can protect what we have left.''
He's right. And make no mistake, this is that time.
Five years after Hurricanes Katrina and Rita, our country is again
focused on a tragedy in south Louisiana. For the past 102 days, every
time you opened your paper or turned on the evening news, you saw the
well, our oiled marshes and wildlife, and our people, struggling to get
through the day and unable to imagine a better tomorrow.
We are staring at a cleanup that will take a decade or more to
complete. We will only get there if we address our disappearing coasts.
Mr. Chair, I urge my colleagues to support my Gulf Coast Restoration
Amendment. This is that time, and we can't wait another day.
I reserve the balance of my time.
{time} 1620
Mr. HASTINGS of Washington. Mr. Chairman, I ask unanimous consent to
claim the time in opposition, although I don't intend to oppose the
amendment.
The CHAIR. Without objection, the gentleman is recognized for 5
minutes.
There was no objection.
Mr. HASTINGS of Washington. Mr. Chairman, I yield myself such time as
I may consume.
Mr. Chairman, this amendment would establish a new fine on spills
larger than 1 million barrels, and has a retroactive date of April 1,
2010. Now, I won't debate the fact that making this fine retroactive
means that it will likely face a constitutional challenge.
But I will debate the fact that once fines are paid by violators to
the Federal Government, that money becomes taxpayer money. If we then
spend that money on gulf restoration to clean up the mess caused by BP,
we would be spending taxpayer dollars to clean up the BP spill.
Mr. Chairman, the taxpayers should not be on the hook for the cleanup
of the BP disaster. If there are projects in the gulf that demand
restoration because of damage from the spill, then BP must be held
accountable. If the gentleman has projects that demand greater
attention, then I offer to work with him, just as I am working with
other members of our committee from Louisiana, to ensure that the
Federal oversight gets the gulf cleaned up and the gulf made whole. But
I reject the premise that we must use taxpayer dollars to clean up the
mess made by BP.
I reserve the balance of my time.
Mr. MELANCON. I yield 1 minute to Mr. Oberstar.
Mr. OBERSTAR. I thank the gentleman for yielding.
I have worked with the gentleman and our committee staff to craft
this language. It's important to note that these are not taxpayer
dollars paying for restoration, but rather proceeds from a penalty
provided in this provision that is very clearly spelled out, and which
revenue goes into the Gulf of Mexico restoration account, and then is
further subject to appropriations. So that keeps the Congress in
control of the outlay of funds. Rather than just imposing a civil
penalty and allowing those funds to go into an agency, there will be
very clear control.
So the proceeds are used from the penalty for a legitimate public
purpose to pay for the projects, programs, and activities out of the
restoration fund to clean up the destruction from oil spilled.
To paraphrase previous speakers on the other side of the aisle, the
explosion and blowout of the BP drilling operation in the Gulf is a
``textbook case'' on killing jobs and wildlife and destruction of the
marine environment; putting 300,000 jobs at risk in travel, tourism,
fishing, commercial and recreational fishing, catching, harvesting,
processing fish and shellfish, jobs destroyed by the uncontrolled oil
spill.
The safety provisions of our bill will protect those jobs in the
future. The liability provisions will assure that there will be
compensation for those who lose jobs and livelihood because of an oil
spill. The penalties imposed in this Melancon amendment will assure
that damage to the natural resources of the Gulf will have the money
needed to restore more resources.
A penalty whose proceeds will be used for a legitimate public
purpose--to pay for projects, programs, and activities out of the GM
Restoration Fund.
Mr. HASTINGS of Washington. Could I inquire how much time I have?
The CHAIR. The gentleman has 4 minutes remaining.
Mr. HASTINGS of Washington. I yield 2 minutes to the gentleman from
Louisiana (Mr. Scalise).
Mr. SCALISE. I thank the gentleman from Washington for yielding.
I rise in support of this amendment by my colleague from Louisiana
(Mr. Melancon). As we all know, this is an unprecedented disaster. It's
already extracted a human toll, it's extracting an environmental toll,
and of course now with the moratorium it's extracting an economic toll.
So when you look at what this amendment does, it says if somebody
breaks the law, if they actually have a spill that's at this level, a
million barrels or more, then they actually get hit with heavier
penalties. And those penalties would be dedicated to restoring our
coast. Because as we can all see, people all across the country who
have expressed so much appreciation and support for what we're doing to
try to battle this disaster, they also understand just how fragile this
ecosystem is. And they've seen the destruction to our ecosystem.
And of course it hasn't just started. Our coast has been eroding for
years. In fact, we lose a football field of land along the gulf coast
of Louisiana every 37 minutes. So just in the time we have been
debating this legislation, the Gulf Coast of Louisiana has lost a
football field of land. And this goes on every single day.
So by dedicating these funds that are only generated if somebody
spills a million barrels or more into our gulf to this fund to restore
our coast, I think it's the right thing to do. It helps us battle this
environmental disaster, and then hopefully we can continue to move
forward so that we can stop the economic disaster that's also
occurring. I appreciate the gentleman from
[[Page H6552]]
Louisiana for bringing this amendment.
Mr. MELANCON. I yield 30 seconds to the chairman.
Mr. RAHALL. Just to clarify for my colleague from Washington, my
ranking member, if his concern was about the taxpayer ending up paying
for something that BP should be liable for under the gentleman from
Louisiana's amendment, we do have a catch-all provision in the
legislation that applies to not only the entire legislation, but would
apply to the gentleman from Louisiana's amendment as well that says
none of the funds that are authorized or made available by this act may
be used to carry out any activity or pay any cost for removal or
damages for which a responsible party, BP, is liable under the OPA.
Mr. HASTINGS of Washington. I yield myself the balance of my time.
I simply make the point that, yes, I understand these dollars come
from the affected party. But if it gets into the Federal Government
Treasury, then the Federal Government is the government of the people,
it becomes taxpayer dollars. That's the only point I am making.
I support the amendment. I think it makes perfectly good sense. It
has broad support of those Members that are affected by this spill. But
I just wanted to simply make that point, probably more to emphasize
than anything else that BP is truly responsible for this, and we all
recognize that.
I urge support of the amendment, and I yield back the balance of my
time.
The CHAIR. The question is on the amendment offered by the gentleman
from Louisiana (Mr. Melancon).
The amendment was agreed to.
Mr. RAHALL. Mr. Chairman, I move that the Committee do now rise.
The motion was agreed to.
Accordingly, the Committee rose; and the Speaker pro tempore (Mr.
Obey) having assumed the chair, Mr. Jackson of Illinois, Chair of the
Committee of the Whole House on the State of the Union, reported that
that Committee, having had under consideration the bill (H.R. 3534) to
provide greater efficiencies, transparency, returns, and accountability
in the administration of Federal mineral and energy resources by
consolidating administration of various Federal energy minerals
management and leasing programs into one entity to be known as the
Office of Federal Energy and Minerals Leasing of the Department of the
Interior, and for other purposes, had come to no resolution thereon.
____________________