[Congressional Record Volume 157, Number 62 (Monday, May 9, 2011)]
[Senate]
[Pages S2785-S2793]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BINGAMAN:
  S. 917. A bill to amend the Outer Continental Shelf Lands Act to 
reform the management of energy and mineral resources on the Outer 
Continental Shelf, and for other purposes; to the Committee on Energy 
and Natural Resources.
  Mr. BINGAMAN. Mr. President, today I am introducing the Outer 
Continental Shelf Reform Act of 2011. This is a bill intended to reform 
the management of energy resources on the Outer Continental Shelf, and 
to create a culture of excellence for the industry and the regulatory 
agency going forward.
  Following the tragic Deepwater Horizon oil rig accident last year, we 
have learned a lot about changes that need to be made by the industry 
and the regulatory agency to ensure that accidents like this never 
happen again. In addition, we should do more, and create a system for 
the management of offshore energy development that is a model for the 
world.
  This bill is intended to put in place the changes that can achieve 
these goals. It is identical to a bill reported unanimously by the 
Committee on Energy and Natural Resources in the last Congress. In the 
intervening time since the committee's action, there have been 
developments and new information that may indicate the need to update 
or change some parts of the bill. But, as we begin to work on this 
issue again in the committee, I believe that it is sensible to start 
with last year's bill. I look forward to working with my colleagues on 
both sides of the aisle to address these important issues.
  Mr. President, I ask unanimous consent that the text of this bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 917

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Outer 
     Continental Shelf Reform Act of 2011''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.
Sec. 4. National policy for the outer Continental Shelf.
Sec. 5. Structural reform of outer Continental Shelf program 
              management.
Sec. 6. Safety, environmental, and financial reform of the Outer 
              Continental Shelf Lands Act.
Sec. 7. Study on the effect of the moratoria on new deepwater drilling 
              in the Gulf of Mexico on employment and small businesses.
Sec. 8. Reform of other law.
Sec. 9. Safer oil and gas production.
Sec. 10. National Commission on Outer Continental Shelf Oil Spill 
              Prevention.
Sec. 11. Classification of offshore systems.
Sec. 12. Savings provisions.
Sec. 13. Budgetary effects.

     SEC. 2. PURPOSES.

       The purposes of this Act are--
       (1) to rationalize and reform the responsibilities of the 
     Secretary of the Interior with respect to the management of 
     the outer Continental Shelf in order to improve the 
     management, oversight, accountability, safety, and 
     environmental protection of all the resources on the outer 
     Continental Shelf;
       (2) to provide independent development and enforcement of 
     safety and environmental laws (including regulations) 
     governing--
       (A) energy development and mineral extraction activities on 
     the outer Continental Shelf; and
       (B) related offshore activities; and
       (3) to ensure a fair return to the taxpayer from, and 
     independent management of, royalty and revenue collection and 
     disbursement activities from mineral and energy resources.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Department.--The term ``Department'' means the 
     Department of the Interior.
       (2) Outer continental shelf.--The term ``outer Continental 
     Shelf'' has the meaning given the term in section 2 of the 
     Outer Continental Shelf Lands Act (43 U.S.C. 1331).
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.

     SEC. 4. NATIONAL POLICY FOR THE OUTER CONTINENTAL SHELF.

       Section 3 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1332) is amended--
       (1) by striking paragraph (3) and inserting the following:
       ``(3) the outer Continental Shelf is a vital national 
     resource reserve held by the Federal Government for the 
     public, which should be managed in a manner that--
       ``(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)(C), by striking the period at the end 
     and inserting a semicolon;
       (3) in paragraph (5), by striking ``; and'' and inserting a 
     semicolon;
       (4) by redesignating paragraph (6) as paragraph (7);
       (5) by inserting after paragraph (5) the following:
       ``(6) exploration, development, and production of energy 
     and minerals on the outer Continental Shelf should be allowed 
     only when those activities can be accomplished in a manner 
     that provides reasonable assurance of adequate protection 
     against harm to life, health, the environment, property, or 
     other users of the waters, seabed, or subsoil; and''; and
       (6) in paragraph (7) (as so redesignated)--
       (A) by striking ``should be'' and inserting ``shall be''; 
     and
       (B) by adding ``best available'' after ``using''.

     SEC. 5. STRUCTURAL REFORM OF OUTER CONTINENTAL SHELF PROGRAM 
                   MANAGEMENT.

       (a) In General.--The Outer Continental Shelf Lands Act (43 
     U.S.C. 1331 et seq.) is amended by adding to the end the 
     following:

     ``SEC. 32. STRUCTURAL REFORM OF OUTER CONTINENTAL SHELF 
                   PROGRAM MANAGEMENT.

       ``(a) Leasing, Permitting, and Regulation Bureaus.--
       ``(1) Establishment of bureaus.--
       ``(A) In general.--Subject to the discretion granted by 
     Reorganization Plan Number 3 of 1950 (64 Stat. 1262; 43 
     U.S.C. 1451 note), the Secretary shall establish in the 
     Department of the Interior not more than 2 bureaus to carry 
     out the leasing, permitting, and safety and environmental 
     regulatory functions vested in the Secretary by this Act and 
     the Federal Oil and Gas Royalty Management Act of 1982 (30 
     U.S.C. 1701 et seq.) related to the outer Continental Shelf.
       ``(B) Conflicts of interest.--In establishing the bureaus 
     under subparagraph (A), the Secretary shall ensure, to the 
     maximum extent practicable, that any potential organizational 
     conflicts of interest related to leasing, revenue creation, 
     environmental protection, and safety are eliminated.
       ``(2) Director.--Each bureau shall be headed by a Director, 
     who shall be appointed by the President, by and with the 
     advice and consent of the Senate.
       ``(3) Compensation.--Each Director shall be compensated at 
     the rate provided for level V of the Executive Schedule under 
     section 5316 of title 5, United States Code.
       ``(4) Qualifications.--Each Director shall be a person who, 
     by reason of professional background and demonstrated ability 
     and experience, is specially qualified to carry out the 
     duties of the office.
       ``(b) Royalty and Revenue Office.--
       ``(1) Establishment of office.--Subject to the discretion 
     granted by Reorganization Plan Number 3 of 1950 (64 Stat. 
     1262; 43 U.S.C. 1451 note), the Secretary shall establish in 
     the Department of the Interior an office to carry out the 
     royalty and revenue management functions vested in the 
     Secretary by this Act and the Federal Oil and Gas Royalty 
     Management Act of 1982 (30 U.S.C. 1701 et seq.).
       ``(2) Director.--The office established under paragraph (1) 
     shall be headed by a Director, who shall be appointed by the 
     President, by and with the advice and consent of the Senate.
       ``(3) Compensation.--The Director shall be compensated at 
     the rate provided for level V of the Executive Schedule under 
     section 5316 of title 5, United States Code.

[[Page S2786]]

       ``(4) Qualifications.--The Director shall be a person who, 
     by reason of professional background and demonstrated ability 
     and experience, is specially qualified to carry out the 
     duties of the office.
       ``(c) OCS Safety and Environmental Advisory Board.--
       ``(1) Establishment.--The Secretary shall establish, under 
     the Federal Advisory Committee Act (5 U.S.C. App.), an Outer 
     Continental Shelf Safety and Environmental Advisory Board 
     (referred to in this subsection as the `Board'), to provide 
     the Secretary and the Directors of the bureaus established 
     under this section with independent peer-reviewed scientific 
     and technical advice on safe and environmentally compliant 
     energy and mineral resource exploration, development, and 
     production activities.
       ``(2) Membership.--
       ``(A) Size.--
       ``(i) In general.--The Board shall consist of not more than 
     12 members, chosen to reflect a range of expertise in 
     scientific, engineering, management, and other disciplines 
     related to safe and environmentally compliant energy and 
     mineral resource exploration, development, and production 
     activities.
       ``(ii) Consultation.--The Secretary shall consult with the 
     National Academy of Sciences and the National Academy of 
     Engineering to identify potential candidates for membership 
     on the Board.
       ``(B) Term.--The Secretary shall appoint Board members to 
     staggered terms of not more than 4 years, and shall not 
     appoint a member for more than 2 consecutive terms.
       ``(C) Chair.--The Secretary shall appoint the Chair for the 
     Board.
       ``(3) Meetings.--The Board shall--
       ``(A) meet not less than 3 times per year; and
       ``(B) at least once per year, shall host a public forum to 
     review and assess the overall safety and environmental 
     performance of outer Continental Shelf energy and mineral 
     resource activities.
       ``(4) Reports.--Reports of the Board shall--
       ``(A) be submitted to Congress; and
       ``(B) made available to the public in an electronically 
     accessible form.
       ``(5) Travel expenses.--Members of the Board, other than 
     full-time employees of the Federal Government, while 
     attending a meeting of the Board or while otherwise serving 
     at the request of the Secretary or the Director while serving 
     away from their homes or regular places of business, may be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, as authorized by section 5703 of title 5, United 
     States Code, for individuals in the Federal Government 
     serving without pay.
       ``(d) Special Personnel Authorities.--
       ``(1) Direct hiring authority for critical personnel.--
       ``(A) In general.--Notwithstanding sections 3104, 3304, and 
     3309 through 3318 of title 5, United States Code, the 
     Secretary may, upon a determination that there is a severe 
     shortage of candidates or a critical hiring need for 
     particular positions, recruit and directly appoint highly 
     qualified accountants, scientists, engineers, or critical 
     technical personnel into the competitive service, as officers 
     or employees of any of the organizational units established 
     under this section.
       ``(B) Requirements.--In exercising the authority granted 
     under subparagraph (A), the Secretary shall ensure that any 
     action taken by the Secretary--
       ``(i) is consistent with the merit principles of chapter 23 
     of title 5, United States Code; and
       ``(ii) complies with the public notice requirements of 
     section 3327 of title 5, United States Code.
       ``(2) Critical pay authority.--
       ``(A) In general.--Notwithstanding section 5377 of title 5, 
     United States Code, and without regard to the provisions of 
     that title governing appointments in the competitive service 
     or the Senior Executive Service and chapters 51 and 53 of 
     that title (relating to classification and pay rates), the 
     Secretary may establish, fix the compensation of, and appoint 
     individuals to critical positions needed to carry out the 
     functions of any of the organizational units established 
     under this section, if the Secretary certifies that--
       ``(i) the positions--

       ``(I) require expertise of an extremely high level in a 
     scientific or technical field; and
       ``(II) any of the organizational units established in this 
     section would not successfully accomplish an important 
     mission without such an individual; and

       ``(ii) exercise of the authority is necessary to recruit an 
     individual exceptionally well qualified for the position.
       ``(B) Limitations.--The authority granted under 
     subparagraph (A) shall be subject to the following 
     conditions:
       ``(i) The number of critical positions authorized by 
     subparagraph (A) may not exceed 40 at any 1 time in either of 
     the bureaus established under this section.
       ``(ii) The term of an appointment under subparagraph (A) 
     may not exceed 4 years.
       ``(iii) An individual appointed under subparagraph (A) may 
     not have been an employee of the Department of the Interior 
     during the 2-year period prior to the date of appointment.
       ``(iv) Total annual compensation for any individual 
     appointed under subparagraph (A) may not exceed the highest 
     total annual compensation payable at the rate determined 
     under section 104 of title 3, United States Code.
       ``(v) An individual appointed under subparagraph (A) may 
     not be considered to be an employee for purposes of 
     subchapter II of chapter 75 of title 5, United States Code.
       ``(C) Notification.--Each year, the Secretary shall submit 
     to Congress a notification that lists each individual 
     appointed under this paragraph.
       ``(3) Reemployment of civilian retirees.--
       ``(A) In general.--Notwithstanding part 553 of title 5, 
     Code of Federal Regulations (relating to reemployment of 
     civilian retirees to meet exceptional employment needs), or 
     successor regulations, the Secretary may approve the 
     reemployment of an individual to a particular position 
     without reduction or termination of annuity if the hiring of 
     the individual is necessary to carry out a critical function 
     of any of the organizational units established under this 
     section for which suitably qualified candidates do not exist.
       ``(B) Limitations.--An annuitant hired with full salary and 
     annuities under the authority granted by subparagraph (A)--
       ``(i) shall not be considered an employee for purposes of 
     subchapter III of chapter 83 and chapter 84 of title 5, 
     United States Code;
       ``(ii) may not elect to have retirement contributions 
     withheld from the pay of the annuitant;
       ``(iii) may not use any employment under this paragraph as 
     a basis for a supplemental or recomputed annuity; and
       ``(iv) may not participate in the Thrift Savings Plan under 
     subchapter III of chapter 84 of title 5, United States Code.
       ``(C) Limitation on term.--The term of employment of any 
     individual hired under subparagraph (A) may not exceed an 
     initial term of 2 years, with an additional 2-year 
     appointment under exceptional circumstances.
       ``(e) Continuity of Authority.--Subject to the discretion 
     granted by Reorganization Plan Number 3 of 1950 (64 Stat. 
     1262; 43 U.S.C. 1451 note), any reference in any law, rule, 
     regulation, directive, or instruction, or certificate or 
     other official document, in force immediately prior to the 
     date of enactment of this section--
       ``(1) to the Minerals Management Service that pertains to 
     any of the duties and authorities described in this section 
     shall be deemed to refer and apply to the appropriate bureaus 
     and offices established under this section;
       ``(2) to the Director of the Minerals Management Service 
     that pertains to any of the duties and authorities described 
     in this section shall be deemed to refer and apply to the 
     Director of the bureau or office under this section to whom 
     the Secretary has assigned the respective duty or authority; 
     and
       ``(3) to any other position in the Minerals Management 
     Service that pertains to any of the duties and authorities 
     described in this section shall be deemed to refer and apply 
     to that same or equivalent position in the appropriate bureau 
     or office established under this section.''.
       (b) Conforming Amendment.--Section 5316 of title 5, United 
     States Code, is amended by striking ``Director, Bureau of 
     Mines, Department of the Interior'' and inserting the 
     following:
       ``Bureau Directors, Department of the Interior (2).
       ``Director, Royalty and Revenue Office, Department of the 
     Interior.''.

     SEC. 6. SAFETY, ENVIRONMENTAL, AND FINANCIAL REFORM OF THE 
                   OUTER CONTINENTAL SHELF LANDS ACT.

       (a) Definitions.--Section 2 of the Outer Continental Shelf 
     Lands Act (43 U.S.C. 1331) is amended by adding at the end 
     the following:
       ``(r) Safety Case.--The term `safety case' means a complete 
     set of safety documentation that provides a basis for 
     determining whether a system is adequately safe for a given 
     application in a given environment.''.
       (b) Administration of Leasing.--Section 5(a) of the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1334(a)) is amended in 
     the second sentence--
       (1) by striking ``The Secretary may at any time'' and 
     inserting ``The Secretary shall''; and
       (2) by inserting after ``provide for'' the following: 
     ``operational safety, the protection of the marine and 
     coastal environment,''.
       (c) Maintenance of Leases.--Section 6 of the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1335) is amended by 
     adding at the end the following:
       ``(f) Review of Bond and Surety Amounts.--Not later than 
     May 1, 2011, and every 5 years thereafter, the Secretary 
     shall--
       ``(1) review the minimum financial responsibility 
     requirements for mineral leases under subsection (a)(11); and
       ``(2) adjust for inflation based on the Consumer Price 
     Index for all Urban Consumers published by the Bureau of 
     Labor Statistics of the Department of Labor, and recommend to 
     Congress any further changes to existing financial 
     responsibility requirements necessary to permit lessees to 
     fulfill all obligations under this Act or the Oil Pollution 
     Act of 1990 (33 U.S.C. 2701 et seq.).
       ``(g) Periodic Fiscal Reviews and Reports.--
       ``(1) Royalty rates.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of this subsection and every 4 years thereafter, 
     the Secretary shall carry out a review of, and prepare a 
     report that describes--
       ``(i) the royalty and rental rates included in new offshore 
     oil and gas leases and the rationale for the rates;

[[Page S2787]]

       ``(ii) whether, in the view of the Secretary, the royalty 
     and rental rates described in subparagraph (A) would yield a 
     fair return to the public while promoting the production of 
     oil and gas resources in a timely manner; and
       ``(iii) whether, based on the review, the Secretary intends 
     to modify the royalty or rental rates.
       ``(B) Public participation.--In carrying out a review and 
     preparing a report under subparagraph (A), the Secretary 
     shall provide to the public an opportunity to participate.
       ``(2) Comparative review of fiscal system.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of this subsection and every 4 years thereafter, 
     the Secretary in consultation with the Secretary of the 
     Treasury, shall carry out a comprehensive review of all 
     components of the Federal offshore oil and gas fiscal system, 
     including requirements for bonus bids, rental rates, 
     royalties, oil and gas taxes, income taxes and other 
     significant financial elements, and oil and gas fees.
       ``(B) Inclusions.--The review shall include--
       ``(i) information and analyses comparing the offshore bonus 
     bids, rents, royalties, taxes, and fees of the Federal 
     Government to the offshore bonus bids, rents, royalties, 
     taxes, and fees of other resource owners (including States 
     and foreign countries); and
       ``(ii) an assessment of the overall offshore oil and gas 
     fiscal system in the United States, as compared to foreign 
     countries.
       ``(C) Independent advisory committee.--In carrying out a 
     review under this paragraph, the Secretary shall convene and 
     seek the advice of an independent advisory committee 
     comprised of oil and gas and fiscal experts from States, 
     Indian tribes, academia, the energy industry, and appropriate 
     nongovernmental organizations.
       ``(D) Report.--The Secretary shall prepare a report that 
     contains--
       ``(i) the contents and results of the review carried out 
     under this paragraph for the period covered by the report; 
     and
       ``(ii) any recommendations of the Secretary and the 
     Secretary of the Treasury based on the contents and results 
     of the review.
       ``(E) Combined report.--The Secretary may combine the 
     reports required by paragraphs (1) and (2)(D) into 1 report.
       ``(3) Report deadline.--Not later than 30 days after the 
     date on which the Secretary completes each report under this 
     subsection, the Secretary shall submit copies of the report 
     to--
       ``(A) the Committee on Energy and Natural Resources of the 
     Senate;
       ``(B) the Committee on Finance of the Senate;
       ``(C) the Committee on Natural Resources of the House of 
     Representatives; and
       ``(D) the Committee on Ways and Means of the House of 
     Representatives.''.
       (d) Leases, Easements, and Rights-of-Way.--Section 8 of the 
     Outer Continental Shelf Lands Act (43 U.S.C. 1337) is amended 
     by striking subsection (d) and inserting the following:
       ``(d) Disqualification From Bidding.--No bid for a lease 
     may be submitted by any entity that the Secretary finds, 
     after prior public notice and opportunity for a hearing--
       ``(1) is not meeting due diligence, safety, or 
     environmental requirements on other leases; or
       ``(2)(A) is a responsible party for a vessel or a facility 
     from which oil is discharged, for purposes of section 1002 of 
     the Oil Pollution Act of 1990 (33 U.S.C. 2702); and
       ``(B) has failed to meet the obligations of the responsible 
     party under that Act to provide compensation for covered 
     removal costs and damages.''.
       (e) Exploration Plans.--Section 11 of the Outer Continental 
     Shelf Lands Act (43 U.S.C. 1340) is amended--
       (1) in subsection (c)--
       (A) in the fourth sentence of paragraph (1), by striking 
     ``within thirty days of its submission'' and inserting ``by 
     the deadline described in paragraph (5)'';
       (B) by striking paragraph (3) and inserting the following:
       ``(3) Minimum requirements.--
       ``(A) In general.--An exploration plan submitted under this 
     subsection shall include, in such degree of detail as the 
     Secretary by regulation may require--
       ``(i) a complete description and schedule of the 
     exploration activities to be undertaken;
       ``(ii) a description of the equipment to be used for the 
     exploration activities, including--

       ``(I) a description of the drilling unit;
       ``(II) a statement of the design and condition of major 
     safety-related pieces of equipment;
       ``(III) a description of any new technology to be used; and
       ``(IV) a statement demonstrating that the equipment to be 
     used meets the best available technology requirements under 
     section 21(b);

       ``(iii) a map showing the location of each well to be 
     drilled;
       ``(iv)(I) a scenario for the potential blowout of the well 
     involving the highest expected volume of liquid hydrocarbons; 
     and
       ``(II) a complete description of a response plan to control 
     the blowout and manage the accompanying discharge of 
     hydrocarbons, including--

       ``(aa) the technology and timeline for regaining control of 
     the well; and
       ``(bb) the strategy, organization, and resources to be used 
     to avoid harm to the environment and human health from 
     hydrocarbons; and

       ``(v) any other information determined to be relevant by 
     the Secretary.
       ``(B) Deepwater wells.--
       ``(i) In general.--Before conducting exploration activities 
     in water depths greater than 500 feet, the holder of a lease 
     shall submit to the Secretary for approval a deepwater 
     operations plan prepared by the lessee in accordance with 
     this subparagraph.
       ``(ii) Technology requirements.--A deepwater operations 
     plan under this subparagraph shall be based on the best 
     available technology to ensure safety in carrying out the 
     exploration activity and the blowout response plan.
       ``(iii) Systems analysis required.--The Secretary shall not 
     approve a deepwater operations plan under this subparagraph 
     unless the plan includes a technical systems analysis of--

       ``(I) the safety of the proposed exploration activity;
       ``(II) the blowout prevention technology; and
       ``(III) the blowout and spill response plans.''; and

       (C) by adding at the end the following:
       ``(5) Deadline for approval.--
       ``(A) In general.--In the case of a lease issued under a 
     sale held after March 17, 2010, the deadline for approval of 
     an exploration plan referred to in the fourth sentence of 
     paragraph (1) is--
       ``(i) the date that is 90 days after the date on which the 
     plan or the modifications to the plan are submitted; or
       ``(ii) the date that is not later than an additional 180 
     days after the deadline described in clause (i), if the 
     Secretary makes a finding that additional time is necessary 
     to complete any environmental, safety, or other reviews.
       ``(B) Existing leases.--In the case of a lease issued under 
     a sale held on or before March 17, 2010, the Secretary, with 
     the consent of the holder of the lease, may extend the 
     deadline applicable to the lease for such additional time as 
     the Secretary determines is necessary to complete any 
     environmental, safety, or other reviews.'';
       (2) by resdesignating subsections (e) through (h) as 
     subsections (f) through (i), respectively; and
       (3) by striking subsection (d) and inserting the following:
       ``(d) Drilling Permits.--
       ``(1) In general.--The Secretary shall, by regulation, 
     require that any lessee operating under an approved 
     exploration plan obtain a permit--
       ``(A) before the lessee drills a well in accordance with 
     the plan; and
       ``(B) before the lessee significantly modifies the well 
     design originally approved by the Secretary.
       ``(2) Engineering review required.--The Secretary may not 
     grant any drilling permit until the date of completion of a 
     full review of the well system by not less than 2 agency 
     engineers, including a written determination that--
       ``(A) critical safety systems (including blowout 
     prevention) will use best available technology; and
       ``(B) blowout prevention systems will include redundancy 
     and remote triggering capability.
       ``(3) Modification review required.--The Secretary may not 
     approve any modification of a permit without a determination, 
     after an additional engineering review, that the modification 
     will not compromise the safety of the well system previously 
     approved.
       ``(4) Operator safety and environmental management 
     required.--The Secretary may not grant any drilling permit or 
     modification of the permit until the date of completion and 
     approval of a safety and environmental management plan that--
       ``(A) is to be used by the operator during all well 
     operations; and
       ``(B) includes--
       ``(i) a description of the expertise and experience level 
     of crew members who will be present on the rig; and
       ``(ii) designation of at least 2 environmental and safety 
     managers that--

       ``(I) are employees of the operator;
       ``(II) would be present on the rig at all times; and
       ``(III) have overall responsibility for the safety and 
     environmental management of the well system and spill 
     response plan; and

       ``(C) not later than May 1, 2012, requires that all 
     employees on the rig meet the training and experience 
     requirements under section 21(b)(4).
       ``(e) Disapproval of Exploration Plan.--
       ``(1) In general.--The Secretary shall disapprove an 
     exploration plan submitted under this section if the 
     Secretary determines that, because of exceptional geological 
     conditions in the lease areas, exceptional resource values in 
     the marine or coastal environment, or other exceptional 
     circumstances, that--
       ``(A) implementation of the exploration plan would probably 
     cause serious harm or damage to life (including fish and 
     other aquatic life), property, mineral deposits, national 
     security or defense, or the marine, coastal or human 
     environments;
       ``(B) the threat of harm or damage would not disappear or 
     decrease to an acceptable extent within a reasonable period 
     of time; and

[[Page S2788]]

       ``(C) the advantages of disapproving the exploration plan 
     outweigh the advantages of exploration.
       ``(2) Compensation.--If an exploration plan is disapproved 
     under this subsection, the provisions of subparagraphs (B) 
     and (C) of section 25(h)(2) shall apply to the lease and the 
     plan or any modified plan, except that the reference in 
     section 25(h)(2)(C) to a development and production plan 
     shall be considered to be a reference to an exploration 
     plan.''.
       (f) Outer Continental Shelf Leasing Program.--Section 18 of 
     the Outer Continental Shelf Lands Act (43 U.S.C. 1344) is 
     amended--
       (1) in subsection (a)--
       (A) in the second sentence, by inserting after ``national 
     energy needs'' the following: ``and the need for the 
     protection of the marine and coastal environment and 
     resources'';
       (B) in paragraph (1), by striking ``considers'' and 
     inserting ``gives equal consideration to''; and
       (C) in paragraph (3), by striking ``, to the maximum extent 
     practicable,'';
       (2) in subsection (b)--
       (A) in paragraph (3), by striking ``and'' at the end;
       (B) in paragraph (4), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(5) provide technical review and oversight of the 
     exploration plan and a systems review of the safety of the 
     well design and other operational decisions;
       ``(6) conduct regular and thorough safety reviews and 
     inspections, and;
       ``(7) enforce all applicable laws (including 
     regulations).'';
       (3) in the second sentence of subsection (d)(2), by 
     inserting ``, the head of an interested Federal agency,'' 
     after ``Attorney General'';
       (4) in the first sentence of subsection (g), by inserting 
     before the period at the end the following: ``, including 
     existing inventories and mapping of marine resources 
     previously undertaken by the Department of the Interior and 
     the National Oceanic and Atmospheric Administration, 
     information provided by the Department of Defense, and other 
     available data regarding energy or mineral resource 
     potential, navigation uses, fisheries, aquaculture uses, 
     recreational uses, habitat, conservation, and military uses 
     on the outer Continental Shelf''; and
       (5) by adding at the end the following:
       ``(i) Research and Development.--
       ``(1) In general.--The Secretary shall carry out a program 
     of research and development to ensure the continued 
     improvement of methodologies for characterizing resources of 
     the outer Continental Shelf and conditions that may affect 
     the ability to develop and use those resources in a safe, 
     sound, and environmentally responsible manner.
       ``(2) Inclusions.--Research and development activities 
     carried out under paragraph (1) may include activities to 
     provide accurate estimates of energy and mineral reserves and 
     potential on the outer Continental Shelf and any activities 
     that may assist in filling gaps in environmental data needed 
     to develop each leasing program under this section.
       ``(3) Leasing activities.--Research and development 
     activities carried out under paragraph (1) shall not be 
     considered to be leasing or pre-leasing activities for 
     purposes of this Act.''.
       (g) Environmental Studies.--Section 20 of the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1346) is amended--
       (1) by redesignating subsections (a) through (f) as 
     subsections (b) through (g), respectively;
       (2) by inserting before subsection (b) (as so redesignated) 
     the following:
       ``(a) Comprehensive and Independent Studies.--
       ``(1) In general.--The Secretary shall develop and carry 
     out programs for the collection, evaluation, assembly, 
     analysis, and dissemination of environmental and other 
     resource data that are relevant to carrying out the purposes 
     of this Act.
       ``(2) Scope of research.--The programs under this 
     subsection shall include--
       ``(A) the gathering of baseline data in areas before energy 
     or mineral resource development activities occur;
       ``(B) ecosystem research and monitoring studies to support 
     integrated resource management decisions; and
       ``(C) the improvement of scientific understanding of the 
     fate, transport, and effects of discharges and spilled 
     materials, including deep water hydrocarbon spills, in the 
     marine environment.
       ``(3) Use of data.--The Secretary shall ensure that 
     information from the studies carried out under this section--
       ``(A) informs the management of energy and mineral 
     resources on the outer Continental Shelf including any areas 
     under consideration for oil and gas leasing; and
       ``(B) contributes to a broader coordination of energy and 
     mineral resource development activities within the context of 
     best available science.
       ``(4) Independence.--The Secretary shall create a program 
     within the appropriate bureau established under section 32 
     that shall--
       ``(A) be programmatically separate and distinct from the 
     leasing program;
       ``(B) carry out the environmental studies under this 
     section;
       ``(C) conduct additional environmental studies relevant to 
     the sound management of energy and mineral resources on the 
     outer Continental Shelf;
       ``(D) provide for external scientific review of studies 
     under this section, including through appropriate 
     arrangements with the National Academy of Sciences; and
       ``(E) subject to the restrictions of subsections (g) and 
     (h) of section 18, make available to the public studies 
     conducted and data gathered under this section.''; and
       (3) in the first sentence of subsection (b)(1) (as so 
     redesignated), by inserting ``every 3 years'' after ``shall 
     conduct''.
       (h) Safety Research and Regulations.--Section 21 of the 
     Outer Continental Shelf Lands Act (43 U.S.C. 1347) is 
     amended--
       (1) in the first sentence of subsection (a), by striking 
     ``Upon the date of enactment of this section,'' and inserting 
     ``Not later than May 1, 2011, and every 3 years 
     thereafter,'';
       (2) by striking subsection (b) and inserting the following:
       ``(b) Best Available Technologies and Practices.--
       ``(1) In general.--In exercising respective 
     responsibilities under this Act, the Secretary, and the 
     Secretary of the Department in which the Coast Guard is 
     operating, shall require, on all new drilling and production 
     operations and, to the maximum extent practicable, on 
     existing operations, the use of the best available and safest 
     technologies and practices, if the failure of equipment would 
     have a significant effect on safety, health, or the 
     environment.
       ``(2) Identification of best available technologies.--Not 
     later than May 1, 2011, and not later than every 3 years 
     thereafter, the Secretary shall identify and publish an 
     updated list of best available technologies for key areas of 
     well design and operation, including blowout prevention and 
     blowout and oil spill response.
       ``(3) Safety case.--Not later than May 1, 2011, the 
     Secretary shall promulgate regulations requiring a safety 
     case be submitted along with each new application for a 
     permit to drill on the outer Continental Shelf.
       ``(4) Employee training.--
       ``(A) In general.--Not later than May 1, 2011, the 
     Secretary shall promulgate regulations setting standards for 
     training for all workers on offshore facilities (including 
     mobile offshore drilling units) conducting energy and mineral 
     resource exploration, development, and production operations 
     on the outer Continental Shelf.
       ``(B) Requirements.--The training standards under this 
     paragraph shall require that employers of workers described 
     in subparagraph (A)--
       ``(i) establish training programs approved by the 
     Secretary; and
       ``(ii) demonstrate that employees involved in the offshore 
     operations meet standards that demonstrate the aptitude of 
     the employees in critical technical skills.
       ``(C) Experience.--The training standards under this 
     section shall require that any offshore worker with less than 
     5 years of applied experience in offshore facilities 
     operations pass a certification requirement after receiving 
     the appropriate training.
       ``(D) Monitoring training courses.--The Secretary shall 
     ensure that Department employees responsible for inspecting 
     offshore facilities monitor, observe, and report on training 
     courses established under this paragraph, including attending 
     a representative number of the training sessions, as 
     determined by the Secretary.''; and
       (3) by adding at the end the following:
       ``(g) Technology Research and Risk Assessment Program.--
       ``(1) In general.--The Secretary shall carry out a program 
     of research, development, and risk assessment to address 
     technology and development issues associated with outer 
     Continental Shelf energy and mineral resource activities, 
     with the primary purpose of informing the role of research, 
     development, and risk assessment relating to safety, 
     environmental protection, and spill response.
       ``(2) Specific areas of focus.--The program under this 
     subsection shall include research, development, and other 
     activities related to--
       ``(A) risk assessment, using all available data from safety 
     and compliance records both within the United States and 
     internationally;
       ``(B) analysis of industry trends in technology, 
     investment, and interest in frontier areas;
       ``(C) analysis of incidents investigated under section 22;
       ``(D) reviews of best available technologies, including 
     technologies associated with pipelines, blowout preventer 
     mechanisms, casing, well design, and other associated 
     infrastructure related to offshore energy development;
       ``(E) oil spill response and mitigation;
       ``(F) risks associated with human factors; and
       ``(G) renewable energy operations.
       ``(3) Information sharing activities.--
       ``(A) Domestic activities.--The Secretary shall carry out 
     programs to facilitate the exchange and dissemination of 
     scientific and technical information and best practices 
     related to the management of safety and environmental issues 
     associated with energy and mineral resource exploration, 
     development, and production.
       ``(B) International cooperation.--The Secretary shall carry 
     out programs to cooperate with international organizations 
     and foreign governments to share information

[[Page S2789]]

     and best practices related to the management of safety and 
     environmental issues associated with energy and mineral 
     resource exploration, development, and production.
       ``(4) Reports.--The program under this subsection shall 
     provide to the Secretary, each Bureau Director under section 
     32, and the public quarterly reports that address--
       ``(A) developments in each of the areas under paragraph 
     (2); and
       ``(B)(i) any accidents that have occurred in the past 
     quarter; and
       ``(ii) appropriate responses to the accidents.
       ``(5) Independence.--The Secretary shall create a program 
     within the appropriate bureau established under section 32 
     that shall--
       ``(A) be programmatically separate and distinct from the 
     leasing program;
       ``(B) carry out the studies, analyses, and other activities 
     under this subsection;
       ``(C) provide for external scientific review of studies 
     under this section, including through appropriate 
     arrangements with the National Academy of Sciences; and
       ``(D) make available to the public studies conducted and 
     data gathered under this section.
       ``(6) Use of data.--The Secretary shall ensure that the 
     information from the studies and research carried out under 
     this section inform the development of safety practices and 
     regulations as required by this Act and other applicable 
     laws.''.
       (i) Enforcement.--Section 22 of the Outer Continental Shelf 
     Lands Act (43 U.S.C. 1348) is amended--
       (1) in subsection (d)--
       (A) in paragraph (1)--
       (i) in the first sentence, by inserting ``, each loss of 
     well control, blowout, activation of the blowout preventer, 
     and other accident that presented a serious risk to human or 
     environmental safety,'' after ``fire''; and
       (ii) in the last sentence, by inserting ``as a condition of 
     the lease'' before the period at the end;
       (B) in the last sentence of paragraph (2), by inserting 
     ``as a condition of lease'' before the period at the end;
       (2) in subsection (e)--
       (A) by striking ``(e) The'' and inserting the following:
       ``(e) Review of Alleged Safety Violations.--
       ``(1) In general.--The''; and
       (B) by adding at the end the following:
       ``(2) Investigation.--The Secretary shall investigate any 
     allegation from any employee of the lessee or any 
     subcontractor of the lessee made under paragraph (1).''; and
       (3) by adding at the end of the section the following:
       ``(g) Independent Investigation.--
       ``(1) In general.--At the request of the Secretary, the 
     National Transportation Safety Board may conduct an 
     independent investigation of any accident, occurring in the 
     outer Continental Shelf and involving activities under this 
     Act, that does not otherwise fall within the definition of an 
     accident or major marine casualty, as those terms are used in 
     chapter 11 of title 49, United States Code.
       ``(2) Transportation accident.--For purposes of an 
     investigation under this subsection, the accident that is the 
     subject of the request by the Secretary shall be determined 
     to be a transportation accident within the meaning of that 
     term in chapter 11 of title 49, United States Code.
       ``(h) Information on Causes and Corrective Actions.--
       ``(1) In general.--For each incident investigated under 
     this section, the Secretary shall promptly make available to 
     all lessees and the public technical information about the 
     causes and corrective actions taken.
       ``(2) Public database.--All data and reports related to an 
     incident described in paragraph (1) shall be maintained in a 
     database that is available to the public.
       ``(i) Inspection Fee.--
       ``(1) In general.--To the extent necessary to fund the 
     inspections described in this paragraph, the Secretary shall 
     collect a non-refundable inspection fee, which shall be 
     deposited in the Ocean Energy Enforcement Fund established 
     under paragraph (3), from the designated operator for 
     facilities subject to inspection under subsection (c).
       ``(2) Establishment.--The Secretary shall establish, by 
     rule, inspection fees--
       ``(A) at an aggregate level equal to the amount necessary 
     to offset the annual expenses of inspections of outer 
     Continental Shelf facilities (including mobile offshore 
     drilling units) by the Department of the Interior; and
       ``(B) using a schedule that reflects the differences in 
     complexity among the classes of facilities to be inspected.
       ``(3) Ocean energy enforcement fund.--There is established 
     in the Treasury a fund, to be known as the `Ocean Energy 
     Enforcement Fund' (referred to in this subsection as the 
     `Fund'), into which shall be deposited amounts collected 
     under paragraph (1) and which shall be available as provided 
     under paragraph (4).
       ``(4) Availability of fees.--Notwithstanding section 3302 
     of title 31, United States Code, all amounts collected by the 
     Secretary under this section--
       ``(A) shall be credited as offsetting collections;
       ``(B) shall be available for expenditure only for purposes 
     of carrying out inspections of outer Continental Shelf 
     facilities (including mobile offshore drilling units) and the 
     administration of the inspection program;
       ``(C) shall be available only to the extent provided for in 
     advance in an appropriations Act; and
       ``(D) shall remain available until expended.
       ``(5) Annual reports.--
       ``(A) In general.--Not later than 60 days after the end of 
     each fiscal year beginning with fiscal year 2011, the 
     Secretary shall submit to the Committee on Energy and Natural 
     Resources of the Senate and the Committee on Natural 
     Resources of the House of Representatives a report on the 
     operation of the Fund during the fiscal year.
       ``(B) Contents.--Each report shall include, for the fiscal 
     year covered by the report, the following:
       ``(i) A statement of the amounts deposited into the Fund.
       ``(ii) A description of the expenditures made from the Fund 
     for the fiscal year, including the purpose of the 
     expenditures.
       ``(iii) Recommendations for additional authorities to 
     fulfill the purpose of the Fund.
       ``(iv) A statement of the balance remaining in the Fund at 
     the end of the fiscal year.''.
       (j) Remedies and Penalties.--Section 24 of the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1350) is amended--
       (1) by striking subsection (b) and inserting the following:
       ``(b) Civil Penalty.--
       ``(1) In general.--Subject to paragraphs (2) through (3), 
     if any person fails to comply with this Act, any term of a 
     lease or permit issued under this Act, or any regulation or 
     order issued under this Act, the person shall be liable for a 
     civil administrative penalty of not more than $75,000 for 
     each day of continuance of each failure.
       ``(2) Administration.--The Secretary may assess, collect, 
     and compromise any penalty under paragraph (1).
       ``(3) Hearing.--No penalty shall be assessed under this 
     subsection until the person charged with a violation has been 
     given the opportunity for a hearing.
       ``(4) Adjustment.--The penalty amount specified in this 
     subsection shall increase each year to reflect any increases 
     in the Consumer Price Index for All Urban Consumers published 
     by the Bureau of Labor Statistics of the Department of 
     Labor.'';
       (2) in subsection (c)--
       (A) in the first sentence, by striking ``$100,000'' and 
     inserting ``$10,000,000''; and
       (B) by adding at the end the following: ``The penalty 
     amount specified in this subsection shall increase each year 
     to reflect any increases in the Consumer Price Index for All 
     Urban Consumers published by the Bureau of Labor Statistics 
     of the Department of Labor.''; and
       (3) in subsection (d), by inserting ``, or with reckless 
     disregard,'' after ``knowingly and willfully''.
       (k) Oil and Gas Development and Production.--Section 25 of 
     the Outer Continental Shelf Lands Act (43 U.S.C. 1351) is 
     amended by striking ``, other than the Gulf of Mexico,'' each 
     place it appears in subsections (a)(1), (b), and (e)(1).
       (l) Conflicts of Interest.--Section 29 of the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1355) is amended to 
     read as follows:

     ``SEC. 29. CONFLICTS OF INTEREST.

       ``(a) Restrictions on Employment.--No full-time officer or 
     employee of the Department of the Interior who directly or 
     indirectly discharges duties or responsibilities under this 
     Act shall--
       ``(1) within 2 years after his employment with the 
     Department has ceased--
       ``(A) knowingly act as agent or attorney for, or otherwise 
     represent, any other person (except the United States) in any 
     formal or informal appearance before;
       ``(B) with the intent to influence, make any oral or 
     written communication on behalf of any other person (except 
     the United States) to; or
       ``(C) knowingly aid, advise, or assist in--
       ``(i) representing any other person (except the United 
     States in any formal or informal appearance before; or
       ``(ii) making, with the intent to influence, any oral or 
     written communication on behalf of any other person (except 
     the United States) to,

     any department, agency, or court of the United States, or any 
     officer or employee thereof, in connection with any judicial 
     or other proceeding, application, request for a ruling or 
     other determination, regulation, order lease, permit, 
     rulemaking, inspection, enforcement action, or other 
     particular matter involving a specific party or parties in 
     which the United States is a party or has a direct and 
     substantial interest which was actually pending under his 
     official responsibility as an officer or employee within a 
     period of one year prior to the termination of such 
     responsibility or in which he participated personally and 
     substantially as an officer or employee;
       ``(2) within 1 year after his employment with the 
     Department has ceased--
       ``(A) knowingly act as agent or attorney for, or otherwise 
     represent, any other person (except the United States) in any 
     formal or informal appearance before;
       ``(B) with the intent to influence, make any oral or 
     written communication on behalf of any other person (except 
     the United States) to; or
       ``(C) knowingly aid , advise, or assist in --
       ``(i) representing any other person (except the United 
     States in any formal or informal appearance before, or
       ``(ii) making, with the intent to influence, any oral or 
     written communication on behalf of any other person (except 
     the United States) to,

[[Page S2790]]

     the Department of the Interior, or any officer or employee 
     thereof, in connection with any judicial, rulemaking, 
     regulation, order, lease, permit, regulation, inspection, 
     enforcement action, or other particular matter which is 
     pending before the Department of the Interior or in which the 
     Department has a direct and substantial interest; or
       ``(3) accept employment or compensation, during the 1-year 
     period beginning on the date on which employment with the 
     Department has ceased, from any person (other than the United 
     States) that has a direct and substantial interest--
       ``(A) that was pending under the official responsibility of 
     the employee as an officer or employee of the Department 
     during the 1-year period preceding the termination of the 
     responsibility; or
       ``(B) in which the employee participated personally and 
     substantially as an officer or employee.
       ``(b) Prior Employment Relationships.--No full-time officer 
     or employee of the Department of the Interior who directly or 
     indirectly discharges duties or responsibilities under this 
     Act shall participate personally and substantially as a 
     Federal officer or employee, through decision, approval, 
     disapproval, recommendation, the rendering of advice, 
     investigation, or otherwise, in a proceeding, application, 
     request for a ruling or other determination, contract, claim, 
     controversy, charge, accusation, inspection, enforcement 
     action, or other particular matter in which, to the knowledge 
     of the officer or employee--
       ``(1) the officer or employee or the spouse, minor child, 
     or general partner of the officer or employee has a financial 
     interest;
       ``(2) any organization in which the officer or employee is 
     serving as an officer, director, trustee, general partner, or 
     employee has a financial interest;
       ``(3) any person or organization with whom the officer or 
     employee is negotiating or has any arrangement concerning 
     prospective employment has a financial interest; or
       ``(4) any person or organization in which the officer or 
     employee has, within the preceding 1-year period, served as 
     an officer, director, trustee, general partner, agent, 
     attorney, consultant, contractor, or employee has a financial 
     interest.
       ``(c) Gifts From Outside Sources.--No full-time officer or 
     employee of the Department of the Interior who directly or 
     indirectly discharges duties or responsibilities under this 
     Act shall, directly or indirectly, solicit or accept any gift 
     in violation of subpart B of part 2635 of title V, Code of 
     Federal Regulations (or successor regulations).
       ``(d) Exemptions.--The Secretary may, by rule, exempt from 
     this section clerical and support personnel who do not 
     conduct inspections, perform audits, or otherwise exercise 
     regulatory or policy making authority under this Act.
       ``(e) Penalties.--
       ``(1) Criminal penalties.--Any person who violates 
     paragraph (1) or (2) of subsection (a) or subsection (b) 
     shall be punished in accordance with section 216 of title 18, 
     United States Code.
       ``(2) Civil penalties.--Any person who violates subsection 
     (a)(3) or (c) shall be punished in accordance with subsection 
     (b) of section 216 of title 18, United States Code.''.

     SEC. 7. STUDY ON THE EFFECT OF THE MORATORIA ON NEW DEEPWATER 
                   DRILLING IN THE GULF OF MEXICO ON EMPLOYMENT 
                   AND SMALL BUSINESSES.

       (a) In General.--The Secretary of Energy, acting through 
     the Energy Information Administration, shall publish a 
     monthly study evaluating the effect of the moratoria 
     resulting from the blowout and explosion of the mobile 
     offshore drilling unit Deepwater Horizon that occurred on 
     April 20, 2010, and resulting hydrocarbon releases into the 
     environment, on employment and small businesses.
       (b) Report.--Not later than 60 days after the date of 
     enactment of this Act and at the beginning of each month 
     thereafter during the effective period of the moratoria 
     described in subsection (a), the Secretary of Energy, acting 
     through the Energy Information Administration, shall submit 
     to the Committee on Energy and Natural Resources of the 
     Senate and the Committee on Energy and Commerce of the House 
     of Representatives a report regarding the results of the 
     study conducted under subsection (a), including--
       (1) a survey of the effect of the moratoria on deepwater 
     drilling on employment in the industries directly involved in 
     oil and natural gas exploration in the outer Continental 
     Shelf;
       (2) a survey of the effect of the moratoria on employment 
     in the industries indirectly involved in oil and natural gas 
     exploration in the outer Continental Shelf, including 
     suppliers of supplies or services and customers of industries 
     directly involved in oil and natural gas exploration;
       (3) an estimate of the effect of the moratoria on the 
     revenues of small business located near the Gulf of Mexico 
     and, to the maximum extent practicable, throughout the United 
     States; and
       (4) any recommendations to mitigate possible negative 
     effects on small business concerns resulting from the 
     moratoria.

     SEC. 8. REFORM OF OTHER LAW.

       Section 388(b) of the Energy Policy Act of 2005 (43 U.S.C. 
     1337 note; Public Law 109-58) is amended by adding at the end 
     the following:
       ``(4) Federal agencies.--Any head of a Federal department 
     or agency shall, on request of the Secretary, provide to the 
     Secretary all data and information that the Secretary 
     determines to be necessary for the purpose of including the 
     data and information in the mapping initiative, except that 
     no Federal department or agency shall be required to provide 
     any data or information that is privileged or proprietary.''.

     SEC. 9. SAFER OIL AND GAS PRODUCTION.

       (a) Program Authority.--Section 999A of the Energy Policy 
     Act of 2005 (42 U.S.C. 16371) is amended--
       (1) in subsection (a)--
       (A) by striking ``ultra-deepwater'' and inserting 
     ``deepwater''; and
       (B) by inserting ``well control and accident prevention,'' 
     after ``safe operations,'';
       (2) in subsection (b)--
       (A) by striking paragraph (1) and inserting the following:
       ``(1) Deepwater architecture, well control and accident 
     prevention, and deepwater technology, including drilling to 
     deep formations in waters greater than 500 feet.''; and
       (B) by striking paragraph (4) and inserting the following:
       ``(4) Safety technology research and development for 
     drilling activities aimed at well control and accident 
     prevention performed by the Office of Fossil Energy of the 
     Department.''; and
       (3) in subsection (d)--
       (A) in the subsection heading, by striking ``National 
     Energy Technology Laboratory'' and inserting ``Office of 
     Fossil Energy of the Department''; and
       (B) by striking ``National Energy Technology Laboratory'' 
     and inserting ``Office of Fossil Energy of the Department''.
       (b) Deepwater and Unconventional Onshore Natural Gas and 
     Other Petroleum Research and Development Program.--Section 
     999B of the Energy Policy Act of 2005 (42 U.S.C. 16372) is 
     amended--
       (1) in the section heading, by striking ``ULTRA-DEEPWATER 
     AND UNCONVENTIONAL ONSHORE NATURAL GAS AND OTHER PETROLEUM'' 
     and inserting ``SAFE OIL AND GAS PRODUCTION AND ACCIDENT 
     PREVENTION'';
       (2) in subsection (a), by striking ``, by increasing'' and 
     all that follows through the period at the end and inserting 
     ``and the safe and environmentally responsible exploration, 
     development, and production of hydrocarbon resources.'';
       (3) in subsection (c)(1)--
       (A) by redesignating subparagraphs (D) and (E) as 
     subparagraphs (E) and (F), respectively; and
       (B) by inserting after subparagraph (C) the following:
       ``(D) projects will be selected on a competitive, peer-
     reviewed basis.''; and
       (4) in subsection (d)--
       (A) in paragraph (6), by striking ``ultra-deepwater'' and 
     inserting ``deepwater'';
       (B) in paragraph (7)--
       (i) in subparagraph (A)--

       (I) in the subparagraph heading, by striking ``Ultra-
     deepwater'' and inserting ``Deepwater'';
       (II) by striking ``development and'' and inserting 
     ``research, development, and''; and
       (III) by striking ``as well as'' and all that follows 
     through the period at the end and inserting ``aimed at 
     improving operational safety of drilling activities, 
     including well integrity systems, well control, blowout 
     prevention, the use of non-toxic materials, and integrated 
     systems approach-based management for exploration and 
     production in deepwater.'';

       (ii) in subparagraph (B), by striking ``and environmental 
     mitigation'' and inserting ``use of non-toxic materials, 
     drilling safety, and environmental mitigation and accident 
     prevention'';
       (iii) in subparagraph (C), by inserting ``safety and 
     accident prevention, well control and systems integrity,'' 
     after ``including''; and
       (iv) by adding at the end the following:
       ``(D) Safety and accident prevention technology research 
     and development.--Awards from allocations under section 
     999H(d)(4) shall be expended on areas including--
       ``(i) development of improved cementing and casing 
     technologies;
       ``(ii) best management practices for cementing, casing, and 
     other well control activities and technologies;
       ``(iii) development of integrity and stewardship guidelines 
     for--

       ``(I) well-plugging and abandonment;
       ``(II) development of wellbore sealant technologies; and
       ``(III) improvement and standardization of blowout 
     prevention devices.''; and

       (C) by adding at the end the following:
       ``(8) Study; report.--
       ``(A) Study.--As soon as practicable after the date of 
     enactment of this paragraph, the Secretary shall enter into 
     an arrangement with the National Academy of Sciences under 
     which the Academy shall conduct a study to determine--
       ``(i) whether the benefits provided through each award 
     under this subsection during calendar year 2011 have been 
     maximized; and
       ``(ii) the new areas of research that could be carried out 
     to meet the overall objectives of the program.
       ``(B) Report.--Not later than January 1, 2012, the 
     Secretary shall submit to the appropriate committees of 
     Congress a report that contains a description of the results 
     of the study conducted under subparagraph (A).
       ``(C) Optional updates.--The Secretary may update the 
     report described in subparagraph (B) for the 5-year period 
     beginning on

[[Page S2791]]

     the date described in that subparagraph and each 5-year 
     period thereafter.'';
       (5) in subsection (e)--
       (A) in paragraph (2)--
       (i) in the second sentence of subparagraph (A), by 
     inserting ``to the Secretary for review'' after ``submit''; 
     and
       (ii) in the first sentence of subparagraph (B), by striking 
     ``Ultra-Deepwater'' and all that follows through ``and such 
     Advisory Committees'' and inserting ``Program Advisory 
     Committee established under section 999D(a), and the Advisory 
     Committee''; and
       (B) by adding at the end the following:
       ``(6) Research findings and recommendations for 
     implementation.--The Secretary, in consultation with the 
     Secretary of the Interior and the Administrator of the 
     Environmental Protection Agency, shall publish in the Federal 
     Register an annual report on the research findings of the 
     program carried out under this section and any 
     recommendations for implementation that the Secretary, in 
     consultation with the Secretary of the Interior and the 
     Administrator of the Environmental Protection Agency, 
     determines to be necessary.'';
       (6) in subsection (i)--
       (A) in the subsection heading, by striking ``United States 
     Geological Survey'' and inserting ``Department of the 
     Interior''; and
       (B) by striking ``, through the United States Geological 
     Survey,''; and
       (7) in the first sentence of subsection (j), by striking 
     ``National Energy Technology Laboratory'' and inserting 
     ``Office of Fossil Energy of the Department''.
       (c) Additional Requirements for Awards.--Section 999C(b) of 
     the Energy Policy Act of 2005 (42 U.S.C. 16373(b)) is amended 
     by striking ``an ultra-deepwater technology or an ultra-
     deepwater architecture'' and inserting ``a deepwater 
     technology''.
       (d) Program Advisory Committee.--Section 999D of the Energy 
     Policy Act of 2005 (42 U.S.C. 16374) is amended to read as 
     follows:

     ``SEC. 999D. PROGRAM ADVISORY COMMITTEE.

       ``(a) Establishment.--Not later than 270 days after the 
     date of enactment of the Safe and Responsible Energy 
     Production Improvement Act of 2010, the Secretary shall 
     establish an advisory committee to be known as the `Program 
     Advisory Committee' (referred to in this section as the 
     `Advisory Committee').
       ``(b) Membership.--
       ``(1) In general.--The Advisory Committee shall be composed 
     of members appointed by the Secretary, including--
       ``(A) individuals with extensive research experience or 
     operational knowledge of hydrocarbon exploration and 
     production;
       ``(B) individuals broadly representative of the affected 
     interests in hydrocarbon production, including interests in 
     environmental protection and safety operations;
       ``(C) representatives of Federal agencies, including the 
     Environmental Protection Agency and the Department of the 
     Interior;
       ``(D) State regulatory agency representatives; and
       ``(E) other individuals, as determined by the Secretary.
       ``(2) Limitations.--
       ``(A) In general.--The Advisory Committee shall not include 
     individuals who are board members, officers, or employees of 
     the program consortium.
       ``(B) Categorical representation.--In appointing members of 
     the Advisory Committee, the Secretary shall ensure that no 
     class of individuals described in any of subparagraphs (A), 
     (B), (D), or (E) of paragraph (1) comprises more than \1/3\ 
     of the membership of the Advisory Committee.
       ``(c) Subcommittees.--The Advisory Committee may establish 
     subcommittees for separate research programs carried out 
     under this subtitle.
       ``(d) Duties.--The Advisory Committee shall--
       ``(1) advise the Secretary on the development and 
     implementation of programs under this subtitle; and
       ``(2) carry out section 999B(e)(2)(B).
       ``(e) Compensation.--A member of the Advisory Committee 
     shall serve without compensation but shall be entitled to 
     receive travel expenses in accordance with subchapter I of 
     chapter 57 of title 5, United States Code.
       ``(f) Prohibition.--The Advisory Committee shall not make 
     recommendations on funding awards to particular consortia or 
     other entities, or for specific projects.''.
       (e) Definitions.--Section 999G of the Energy Policy Act of 
     2005 (42 U.S.C. 16377) is amended--
       (1) in paragraph (1), by striking ``200 but less than 1,500 
     meters'' and inserting ``500 feet'';
       (2) by striking paragraphs (8), (9), and (10);
       (3) by redesignating paragraphs (2) through (7) and (11) as 
     paragraphs (4) through (9) and (10), respectively;
       (4) by inserting after paragraph (1) the following:
       ``(2) Deepwater architecture.--The term `deepwater 
     architecture' means the integration of technologies for the 
     exploration for, or production of, natural gas or other 
     petroleum resources located at deepwater depths.
       ``(3) Deepwater technology.--The term `deepwater 
     technology' means a discrete technology that is specially 
     suited to address 1 or more challenges associated with the 
     exploration for, or production of, natural gas or other 
     petroleum resources located at deepwater depths.''; and
       (5) in paragraph (10) (as redesignated by paragraph (3)), 
     by striking ``in an economically inaccessible geological 
     formation, including resources of small producers''.
       (f) Funding.--Section 999H of the Energy Policy Act of 2005 
     (42 U.S.C. 16378) is amended--
       (1) in the first sentence of subsection (a) by striking 
     ``Ultra-Deepwater and Unconventional Natural Gas and Other 
     Petroleum Research Fund'' and inserting ``Safe and 
     Responsible Energy Production Research Fund'';
       (2) in subsection (d)--
       (A) in paragraph (1), by striking ``35 percent'' and 
     inserting ``21.5 percent'';
       (B) in paragraph (2), by striking ``32.5 percent'' and 
     inserting ``21 percent'';
       (C) in paragraph (4)--
       (i) by striking ``25 percent'' and inserting ``30 
     percent'';
       (ii) by striking ``complementary research'' and inserting 
     ``safety technology research and development''; and
       (iii) by striking ``contract management,'' and all that 
     follows through the period at the end and inserting ``and 
     contract management.''; and
       (D) by adding at the end the following:
       ``(5) 20 percent shall be used for research activities 
     required under sections 20 and 21 of the Outer Continental 
     Shelf Lands Act (43 U.S.C. 1346, 1347).''.
       (3) in subsection (f), by striking ``Ultra-Deepwater and 
     Unconventional Natural Gas and Other Petroleum Research 
     Fund'' and inserting ``Safer Oil and Gas Production and 
     Accident Prevention Research Fund''.
       (g) Conforming Amendment.--Subtitle J of title IX of the 
     Energy Policy Act of 2005 (42 U.S.C. 16371 et seq.) is 
     amended in the subtitle heading by striking ``Ultra-Deepwater 
     and Unconventional Natural Gas and Other Petroleum 
     Resources'' and inserting ``Safer Oil and Gas Production and 
     Accident Prevention''.

     SEC. 10. NATIONAL COMMISSION ON OUTER CONTINENTAL SHELF OIL 
                   SPILL PREVENTION.

       (a) Establishment.--There is established in the Legislative 
     branch the National Commission on Outer Continental Shelf Oil 
     Spill Prevention (referred to in this section as the 
     ``Commission'').
       (b) Purposes.--The purposes of the Commission are--
       (1) to examine and report on the facts and causes relating 
     to the Deepwater Horizon explosion and oil spill of 2010;
       (2) to ascertain, evaluate, and report on the evidence 
     developed by all relevant governmental agencies regarding the 
     facts and circumstances surrounding the incident;
       (3) to build upon the investigations of other entities, and 
     avoid unnecessary duplication, by reviewing the findings, 
     conclusions, and recommendations of--
       (A) the Committees on Energy and Natural Resources and 
     Commerce, Science, and Transportation of the Senate;
       (B) the Committee on Natural Resources and the Subcommittee 
     on Oversight and Investigations of the House of 
     Representatives; and
       (C) other Executive branch, congressional, or independent 
     commission investigations into the Deepwater Horizon incident 
     of 2010, other fatal oil platform accidents and major spills, 
     and major oil spills generally;
       (4) to make a full and complete accounting of the 
     circumstances surrounding the incident, and the extent of the 
     preparedness of the United States for, and immediate response 
     of the United States to, the incident; and
       (5) to investigate and report to the President and Congress 
     findings, conclusions, and recommendations for corrective 
     measures that may be taken to prevent similar incidents.
       (c) Composition of Commission.--
       (1) Members.--The Commission shall be composed of 10 
     members, of whom--
       (A) 1 member shall be appointed by the President, who shall 
     serve as Chairperson of the Commission;
       (B) 1 member shall be appointed by the majority or minority 
     (as the case may be) leader of the Senate from the Republican 
     Party and the majority or minority (as the case may be) 
     leader of the House of Representatives from the Republican 
     Party, who shall serve as Vice Chairperson of the Commission;
       (C) 2 members shall be appointed by the senior member of 
     the leadership of the Senate from the Democratic Party;
       (D) 2 members shall be appointed by the senior member of 
     the leadership of the House of Representatives from the 
     Republican Party;
       (E) 2 members shall be appointed by the senior member of 
     the leadership of the Senate from the Republican Party; and
       (F) 2 members shall be appointed by the senior member of 
     the leadership of the House of Representatives from the 
     Democratic Party.
       (2) Qualifications; initial meeting.--
       (A) Political party affiliation.--Not more than 5 members 
     of the Commission shall be from the same political party.
       (B) Nongovernmental appointees.--An individual appointed to 
     the Commission may not be a current officer or employee of 
     the Federal Government or any State or local government.
       (C) Other qualifications.--It is the sense of Congress that 
     individuals appointed to the Commission should be prominent 
     United States citizens, with national recognition and 
     significant depth of experience and expertise in such areas 
     as--
       (i) engineering;

[[Page S2792]]

       (ii) environmental compliance;
       (iii) health and safety law (particularly oil spill 
     legislation);
       (iv) oil spill insurance policies;
       (v) public administration;
       (vi) oil and gas exploration and production;
       (vii) environmental cleanup; and
       (viii) fisheries and wildlife management.
       (D) Deadline for appointment.--All members of the 
     Commission shall be appointed on or before September 15, 
     2010.
       (E) Initial meeting.--The Commission shall meet and begin 
     the operations of the Commission as soon as practicable after 
     the date of enactment of this Act.
       (3) Quorum; vacancies.--
       (A) In general.--After the initial meeting of the 
     Commission, the Commission shall meet upon the call of the 
     Chairperson or a majority of the members of the Commission.
       (B) Quorum.--6 members of the Commission shall constitute a 
     quorum.
       (C) Vacancies.--Any vacancy in the Commission shall not 
     affect the powers of the Commission, but shall be filled in 
     the same manner in which the original appointment was made.
       (d) Functions of Commission.--
       (1) In general.--The functions of the Commission are--
       (A) to conduct an investigation that--
       (i) investigates relevant facts and circumstances relating 
     to the Deepwater Horizon incident of April 20, 2010, and the 
     associated oil spill thereafter, including any relevant 
     legislation, Executive order, regulation, plan, policy, 
     practice, or procedure; and
       (ii) may include relevant facts and circumstances relating 
     to--

       (I) permitting agencies;
       (II) environmental and worker safety law enforcement 
     agencies;
       (III) national energy requirements;
       (IV) deepwater and ultradeepwater oil and gas exploration 
     and development;
       (V) regulatory specifications, testing, and requirements 
     for offshore oil and gas well explosion prevention;
       (VI) regulatory specifications, testing, and requirements 
     offshore oil and gas well casing and cementing regulation;
       (VII) the role of congressional oversight and resource 
     allocation; and
       (VIII) other areas of the public and private sectors 
     determined to be relevant to the Deepwater Horizon incident 
     by the Commission;

       (B) to identify, review, and evaluate the lessons learned 
     from the Deepwater Horizon incident of April 20, 2010, 
     regarding the structure, coordination, management policies, 
     and procedures of the Federal Government, and, if 
     appropriate, State and local governments and nongovernmental 
     entities, and the private sector, relative to detecting, 
     preventing, and responding to those incidents; and
       (C) to submit to the President and Congress such reports as 
     are required under this section containing such findings, 
     conclusions, and recommendations as the Commission determines 
     to be appropriate, including proposals for organization, 
     coordination, planning, management arrangements, procedures, 
     rules, and regulations.
       (2) Relationship to inquiry by congressional committees.--
     In investigating facts and circumstances relating to energy 
     policy, the Commission shall--
       (A) first review the information compiled by, and any 
     findings, conclusions, and recommendations of, the committees 
     identified in subparagraphs (A) and (B) of subsection (b)(3); 
     and
       (B) after completion of that review, pursue any appropriate 
     area of inquiry, if the Commission determines that--
       (i) those committees have not investigated that area;
       (ii) the investigation of that area by those committees has 
     not been completed; or
       (iii) new information not reviewed by the committees has 
     become available with respect to that area.
       (e) Powers of Commission.--
       (1) Hearings and evidence.--The Commission or, on the 
     authority of the Commission, any subcommittee or member of 
     the Commission, may, for the purpose of carrying out this 
     section--
       (A) hold such hearings, meet and act at such times and 
     places, take such testimony, receive such evidence, and 
     administer such oaths; and
       (B) require, by subpoena or otherwise, the attendance and 
     testimony of such witnesses and the production of such books, 
     records, correspondence, memoranda, papers, documents, tapes, 
     and materials;

     as the Commission or such subcommittee or member considers to 
     be advisable.
       (2) Subpoenas.--
       (A) Issuance.--
       (i) In general.--A subpoena may be issued under this 
     paragraph only--

       (I) by the agreement of the Chairperson and the Vice 
     Chairperson; or
       (II) by the affirmative vote of 6 members of the 
     Commission.

       (ii) Signature.--Subject to clause (i), a subpoena issued 
     under this paragraph--

       (I) shall bear the signature of the Chairperson or any 
     member designated by a majority of the Commission;
       (II) and may be served by any person or class of persons 
     designated by the Chairperson or by a member designated by a 
     majority of the Commission for that purpose.

       (B) Enforcement.--
       (i) In general.--In the case of contumacy or failure to 
     obey a subpoena issued under subparagraph (A), the United 
     States district court for the district in which the 
     subpoenaed person resides, is served, or may be found, or 
     where the subpoena is returnable, may issue an order 
     requiring the person to appear at any designated place to 
     testify or to produce documentary or other evidence.
       (ii) Judicial action for noncompliance.--Any failure to 
     obey the order of the court may be punished by the court as a 
     contempt of that court.
       (iii) Additional enforcement.--In the case of any failure 
     of any witness to comply with any subpoena or to testify when 
     summoned under authority of this subsection, the Commission 
     may, by majority vote, certify a statement of fact 
     constituting such failure to the appropriate United States 
     attorney, who may bring the matter before the grand jury for 
     action, under the same statutory authority and procedures as 
     if the United States attorney had received a certification 
     under sections 102 through 104 of the Revised Statutes (2 
     U.S.C. 192 through 194).
       (3) Contracting.--The Commission may, to such extent and in 
     such amounts as are provided in appropriation Acts, enter 
     into contracts to enable the Commission to discharge the 
     duties of the Commission under this section.
       (4) Information from federal agencies.--
       (A) In general.--The Commission may secure directly from 
     any Executive department, bureau, agency, board, commission, 
     office, independent establishment, or instrumentality of the 
     Federal Government, information, suggestions, estimates, and 
     statistics for the purposes of this section.
       (B) Cooperation.--Each Federal department, bureau, agency, 
     board, commission, office, independent establishment, or 
     instrumentality shall, to the extent authorized by law, 
     furnish information, suggestions, estimates, and statistics 
     directly to the Commission, upon request made by the 
     Chairperson, the Chairperson of any subcommittee created by a 
     majority of the Commission, or any member designated by a 
     majority of the Commission.
       (C) Receipt, handling, storage, and dissemination.--
     Information shall be received, handled, stored, and 
     disseminated only by members of the Commission and the staff 
     of the Commission in accordance with all applicable laws 
     (including regulations and Executive orders).
       (5) Assistance from federal agencies.--
       (A) General services administration.--The Administrator of 
     General Services shall provide to the Commission on a 
     reimbursable basis administrative support and other services 
     for the performance of the functions of the Commission.
       (B) Other departments and agencies.--In addition to the 
     assistance prescribed in subparagraph (A), departments and 
     agencies of the United States may provide to the Commission 
     such services, funds, facilities, staff, and other support 
     services as are determined to be advisable and authorized by 
     law.
       (6) Gifts.--The Commission may accept, use, and dispose of 
     gifts or donations of services or property, including travel, 
     for the direct advancement of the functions of the 
     Commission.
       (7) Postal services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as departments and agencies of the United States.
       (f) Public Meetings and Hearings.--
       (1) Public meetings and release of public versions of 
     reports.--The Commission shall--
       (A) hold public hearings and meetings, to the extent 
     appropriate; and
       (B) release public versions of the reports required under 
     paragraphs (1) and (2) of subsection (j).
       (2) Public hearings.--Any public hearings of the Commission 
     shall be conducted in a manner consistent with the protection 
     of proprietary or sensitive information provided to or 
     developed for or by the Commission as required by any 
     applicable law (including a regulation or Executive order).
       (g) Staff of Commission.--
       (1) In general.--
       (A) Appointment and compensation.--
       (i) In general.--The Chairperson, in consultation with the 
     Vice Chairperson and in accordance with rules agreed upon by 
     the Commission, may, without regard to the civil service laws 
     (including regulations), appoint and fix the compensation of 
     a staff director and such other personnel as are necessary to 
     enable the Commission to carry out the functions of the 
     Commission.
       (ii) Maximum rate of pay.--No rate of pay fixed under this 
     subparagraph may exceed the equivalent of that payable for a 
     position at level V of the Executive Schedule under section 
     5316 of title 5, United States Code.
       (B) Personnel as federal employees.--
       (i) In general.--The staff director and any personnel of 
     the Commission who are employees shall be considered to be 
     employees under section 2105 of title 5, United States Code, 
     for purposes of chapters 63, 81, 83, 84, 85, 87, 89, and 90 
     of that title.
       (ii) Members of commission.--Clause (i) shall not apply to 
     members of the Commission.
       (2) Detailees.--
       (A) In general.--An employee of the Federal Government may 
     be detailed to the Commission without reimbursement.
       (B) Civil service status.--The detail of the employee shall 
     be without interruption or loss of civil service status or 
     privilege.
       (3) Procurement of temporary and intermittent services.--
     The Chairperson of the

[[Page S2793]]

     Commission may procure temporary and intermittent services in 
     accordance with section 3109(b) of title 5, United States 
     Code, at rates for individuals that do not exceed the daily 
     equivalent of the annual rate of basic pay prescribed for 
     level V of the Executive Schedule under section 5316 of that 
     title.
       (h) Compensation and Travel Expenses.--
       (1) Compensation of members.--
       (A) Non-federal employees.--A member of the Commission who 
     is not an officer or employee of the Federal Government shall 
     be compensated at a rate equal to the daily equivalent of the 
     annual rate of basic pay prescribed for level IV of the 
     Executive Schedule under section 5315 of title 5, United 
     States Code, for each day (including travel time) during 
     which the member is engaged in the performance of the duties 
     of the Commission.
       (B) Federal employees.--A member of the Commission who is 
     an officer or employee of the Federal Government shall serve 
     without compensation in addition to the compensation received 
     for the services of the member as an officer or employee of 
     the Federal Government.
       (2) Travel expenses.--A member of the Commission shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for an employee of an agency 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from the home or regular place of business 
     of the member in the performance of the duties of the 
     Commission.
       (i) Security Clearances for Commission Members and Staff.--
       (1) In general.--Subject to paragraph (2), the appropriate 
     Federal agencies or departments shall cooperate with the 
     Commission in expeditiously providing to the members and 
     staff of the Commission appropriate security clearances, to 
     the maximum extent practicable, pursuant to existing 
     procedures and requirements.
       (2) Proprietary information.--No person shall be provided 
     with access to proprietary information under this section 
     without the appropriate security clearances.
       (j) Reports of Commission; Adjournment.--
       (1) Interim reports.--The Commission may submit to the 
     President and Congress interim reports containing such 
     findings, conclusions, and recommendations for corrective 
     measures as have been agreed to by a majority of members of 
     the Commission.
       (2) Final report.--Not later than 180 days after the date 
     of the enactment of this Act, the Commission shall submit to 
     the President and Congress a final report containing such 
     findings, conclusions, and recommendations for corrective 
     measures as have been agreed to by a majority of members of 
     the Commission.
       (3) Temporary adjournment.--
       (A) In general.--The Commission, and all the authority 
     provided under this section, shall adjourn and be suspended, 
     respectively, on the date that is 60 days after the date on 
     which the final report is submitted under paragraph (2).
       (B) Administrative activities before termination.--The 
     Commission may use the 60-day period referred to in 
     subparagraph (A) for the purpose of concluding activities of 
     the Commission, including--
       (i) providing testimony to committees of Congress 
     concerning reports of the Commission; and
       (ii) disseminating the final report submitted under 
     paragraph (2).
       (C) Reconvening of commission.--The Commission shall stand 
     adjourned until such time as the President or the Secretary 
     of Homeland Security declares an oil spill of national 
     significance to have occurred, at which time--
       (i) the Commission shall reconvene in accordance with 
     subsection (c)(3); and
       (ii) the authority of the Commission under this section 
     shall be of full force and effect.
       (k) Funding.--
       (1) Authorization of appropriations.--There are authorized 
     to be appropriated to carry out this section--
       (A) $10,000,000 for the first fiscal year in which the 
     Commission convenes; and
       (B) $3,000,000 for each fiscal year thereafter in which the 
     Commission convenes.
       (2) Availability.--Amounts made available to carry out this 
     section shall be available--
       (A) for transfer to the Commission for use in carrying out 
     the functions and activities of the Commission under this 
     section; and
       (B) until the date on which the Commission adjourns for the 
     fiscal year under subsection (j)(3).
       (l) Nonapplicability of Federal Advisory Committee Act.--
     The Federal Advisory Committee Act (5 U.S.C. App.) shall not 
     apply to the Commission.

     SEC. 11. CLASSIFICATION OF OFFSHORE SYSTEMS.

       (a) Regulations.--
       (1) In general.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary and the Secretary of the 
     Department in which the Coast Guard is operating shall 
     jointly issue regulations requiring systems (including 
     existing systems) used in the offshore exploration, 
     development, and production of oil and gas in the outer 
     Continental Shelf to be constructed, maintained, and operated 
     so as to meet classification, certification, rating, and 
     inspection standards that are necessary--
       (A) to protect the health and safety of affiliated workers; 
     and
       (B) to prevent environmental degradation.
       (2) Third-party verification.--The standards established by 
     regulation under paragraph (1) shall be verified through 
     certification and classification by independent third parties 
     that--
       (A) have been preapproved by both the Secretary and the 
     Secretary of the Department in which the Coast Guard is 
     operating; and
       (B) have no financial conflict of interest in conducting 
     the duties of the third parties.
       (3) Minimum systems covered.--At a minimum, the regulations 
     issued under paragraph (1) shall require the certification 
     and classification by an independent third party who meets 
     the requirements of paragraph (2) of--
       (A) mobile offshore drilling units;
       (B) fixed and floating drilling or production facilities;
       (C) drilling systems, including risers and blowout 
     preventers; and
       (D) any other equipment dedicated to the safety systems 
     relating to offshore extraction and production of oil and 
     gas.
       (4) Exceptions.--The Secretary and the Secretary of the 
     Department in which the Coast Guard is operating may waive 
     the standards established by regulation under paragraph (1) 
     for an existing system only if--
       (A) the system is of an age or type where meeting such 
     requirements is impractical; and
       (B) the system poses an acceptably low level of risk to the 
     environment and to human safety.
       (b) Authority of Coast Guard.--Nothing in this section 
     preempts or interferes with the authority of the Coast Guard.

     SEC. 12. SAVINGS PROVISIONS.

       (a) Existing Law.--All regulations, rules, standards, 
     determinations, contracts and agreements, memoranda of 
     understanding, certifications, authorizations, appointments, 
     delegations, results and findings of investigations, or any 
     other actions issued, made, or taken by, or pursuant to or 
     under, the authority of any law (including regulations) that 
     resulted in the assignment of functions or activities to the 
     Secretary, the Director of the Minerals Management Service 
     (including by delegation from the Secretary), or the 
     Department (as related to the implementation of the purposes 
     referenced in this Act) that were in effect on the date of 
     enactment of this Act shall continue in full force and effect 
     after the date of enactment of this Act unless previously 
     scheduled to expire or until otherwise modified or rescinded 
     by this Act or any other Act.
       (b) Effect on Other Authorities.--This Act does not amend 
     or alter the provisions of other applicable laws, unless 
     otherwise noted.

     SEC. 13. BUDGETARY EFFECTS.

       The budgetary effects of this Act, for the purpose of 
     complying with the Statutory Pay-As-You-Go Act of 2010, shall 
     be determined by reference to the latest statement titled 
     ``Budgetary Effects of PAYGO Legislation'' for this Act, 
     submitted for printing in the Congressional Record by the 
     Chairman of the Senate Budget Committee, provided that such 
     statement has been submitted prior to the vote on passage.
                                 ______