[Congressional Record (Bound Edition), Volume 156 (2010), Part 10]
[Senate]
[Pages 13858-13877]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. KOHL (for himself, Ms. Snowe, and Mr. Inouye):
  S. 3637. A bill to authorize appropriations for the Housing 
Assistance Council; to the Committee on Banking, Housing, and Urban 
Affairs.
  Mr. KOHL. Mr. President, I rise today to introduce the Housing 
Assistance Council Authorization Act. This legslation will re-authorize 
appropriations for the Housing Assistance Council, HAC, which has been 
committed to developing affordable housing in rural communities for 
over 35 years.
  HAC was originally given a three-year authorization through the Farm 
Bill in 2008. During the past three years HAC made $46.1 million in 
grants and loans to help build 3,878 homes throughout rural America. 
The program has leveraged its funding with over $360 million in other 
financing and has provided essential technical assistance to local non-
profits throughout the country in the form of capacity building grants. 
These critical services help local organizations, rural communities and 
cities develop safe and affordable housing.
  Throughout the country, approximately \1/5\ of the Nation's 
population lives in rural communities. About 7.5 million of the rural 
population is living

[[Page 13859]]

in poverty and 2.5 million of them are children. Nearly 3.6 million 
rural households pay more than 30 percent of their income in housing 
costs. While housing costs are generally lower in rural counties, wages 
are dramatically outpaced by the cost of housing. Additionally, the 
housing conditions are often substandard and there are many families 
doubled up due to lack of housing. Rural areas lack both affordable 
rental units and homeownership opportunities needed to serve the 
population.
  There are several federal programs that are aimed at developing 
affordable housing and economic opportunities in rural communities in 
both the Department of Housing and Urban Development and the Department 
of Agriculture. However, rural housing programs have traditionally been 
underfunded. The administration's fiscal year 2011 budget request 
zeroed two programs that were devoted to helping rural communities: 
Rural Innovation Fund, and the Self Help Homeownership Program, SHOP. 
In many regions, federal funding might be the only assistance available 
for housing and economic development. The Housing Assistance Council is 
yet another tool that rural communities can utilize when trying to 
develop affordable housing.
  The presence of the HAC in Wisconsin has made a huge impact on rural 
housing development in Wisconsin and other rural communities across the 
country. In Wisconsin, HAC has provided close to $5.2 million in grants 
and loans to 17 non-profit housing organizations and helped develop 825 
units of housing.
  Tony Romo, the current quarterback for the Dallas Cowboys, grew up in 
a HAC-supported self-help home in Burlington, WI. His parents built the 
home as part of Southeastern Wisconsin Housing Corporation's sweat 
equity, self-help homeownership program. There are countless examples 
linking a child's future success to the stability in their childhood 
home. Tony Romo's story provides one such example of how a child raised 
in safe, stable homeownership may go on to later success.
  I am very honored to work with Senators Snowe and Inouye on this 
legislation. Its passage will allow every state to better serve the 
needs of the people living in rural areas. I look forward to working 
with my colleagues to ensure the adoption of this bill.
                                 ______
                                 
      By Mr. UDALL of Colorado (for himsel, Mr. Crapo, Mr. Gregg, Mr. 
        Bennet and Ms. Klobuchar):
  S. 3640. A bill to amend the Internal Revenue Code of 1986 to 
increase the limitations on the amount excluded from the gross estate 
with respect to land subject to a qualified conservation easement; to 
the Committee on Finance.
  Mr. UDALL of Colorado. Mr. President, today I am introducing, along 
with my friend and colleague Senator Crapo, legislation to encourage 
further protection of our treasured lands, ranches and family farms. 
The American Family Farm and Ranchland Protection Act is a bipartisan 
piece of legislation that rewards those who protect these lands through 
conservation easements by increasing their exemption from the estate 
tax. Put simply, we strongly support conservation efforts and believe 
we need to do more to give Americans a real incentive to protect our 
nation's land. It is a companion bill to similar bipartisan legislation 
in the House of Representatives introduced by Congressman Blumenauer.
  I have long made conservation of America's natural resources a core 
component of my public service. In my role as chair of the National 
Parks Subcommittee, I am continuously focused on preserving our public 
lands and waters, because we owe it to future generations to leave them 
a sustainable environment. We did not inherit the land from our 
parents, we are borrowing it from our children.
  However, the Government can only do so much, and many of our most 
important landscapes are privately owned property. If we are serious 
about conservation, we must acknowledge the important role that private 
land owners play in the overall effort to preserve our natural 
resources for generations to come.
  Estate taxes can compromise Americans' ability to conserve private 
property. After the death of a loved one, families are often forced to 
subdivide a property and sell it for development to pay the costs of 
estate taxes. This situation could become more common starting in 2011 
when the estate tax is set to revert back to the 2001 level of 55 
percent above a $1 million per spouse exemption. Nearly 15 years ago, 
in an effort to provide some relief and encourage conservation of 
family farms and ranches, Congress created an exemption from the estate 
tax of up to 40 percent of the value of the land, capped at $500,000, 
for land permanently protected by a conservation easement.
  A conservation easement is a voluntary agreement between a landowner 
and the government that permanently restricts certain development and 
future uses of the land. It often prevents future commercialization, 
while still permitting historic farming and ranching operations to 
continue in the family. I know in Colorado, our lands are best cared 
for when each generation knows its stewardship will reward the next.
  When Congress first created the conservation easement exemption from 
estate taxes in 1997, a 40 percent exemption up to a total of $500,000 
made sense. Now, that exclusion is simply too small. Since 1997, 
average farm real estate values have more than doubled and the average 
farm is larger, as larger farms are more likely to be economically 
viable. Incidentally, larger farms are also more likely to hold 
resources worthy of conservation. The old cap is simply no longer much 
of an incentive.
  My legislation is a simple solution to the inadequacy of the current 
exemption. It raises the exemption for land under a conservation 
easement to 50 percent, up to a maximum exclusion of $5 million. It 
also encourages more robust conservation easements: less protective 
easements will receive a proportionally lower exemption rate. If we can 
support greater conservation efforts through a simple update to our 
existing tax code, then to me, that sounds like a deal worth taking.
  This is a small change, but it has a profound effect. Those who 
choose to enter into a conservation easement will leave a dramatically 
reduced estate tax burden on their family. This, in turn, will help 
keep family farms and ranches whole, preserving them for future 
generations.
  This is just a small piece of the estate tax puzzle, but it is an 
important one. It is critically important for Congress to address the 
estate tax before the end of this year to prevent it from going back to 
where it was a decade ago, with an exemption of only $1 million. At 
that level, it would affect almost every farmer and rancher in my state 
and in many others, as well as many, many family businesses.
  We can protect the land, respect private property, ease tax burdens, 
and preserve our important farming and ranching heritage with the 
exemption my legislation proposes. I encourage the Senate to take up 
and approve this common-sense bill in an expeditious manner.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3640

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``American Family Farm and 
     Ranchland Protection Act of 2010''.

     SEC. 2. INCREASE IN LIMITATIONS ON THE AMOUNT EXCLUDED FROM 
                   THE GROSS ESTATE WITH RESPECT TO LAND SUBJECT 
                   TO A QUALIFIED CONSERVATION EASEMENT.

       (a) Increase in Dollar Limitation on Exclusion.--Paragraph 
     (3) of section 2031(c) of the Internal Revenue Code of 1986 
     (relating to exclusion limitation) is amended by striking 
     ``the exclusion limitation is'' and all that follows and 
     inserting ``the exclusion limitation is $5,000,000.''.
       (b) Increase in Percentage of Value of Land Which Is 
     Excludable.--Paragraph (2) of section 2031(c) of such Code 
     (relating to applicable percentage) is amended--

[[Page 13860]]

       (1) by striking ``40 percent'' and inserting ``50 
     percent'', and
       (2) by striking ``2 percentage points'' and inserting ``2.5 
     percentage points''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to the estates of decedents dying after December 
     31, 2009.
                                 ______
                                 
      By Mr. WHITEHOUSE (for himself, Ms. Snowe, and Mr. Rockefeller):
  S. 3641. A bill to create the National Endowment for the Oceans to 
promote the protection and conservation of United States ocean, 
coastal, and Great Lakes ecosystems, and for other purposes; to the 
Committee on Commerce, Science, and Transportation.
  Mr. WHITEHOUSE. Mr. President, I rise to discuss bipartisan 
legislation coauthored by my friend and fellow New Englander, Olympia 
Snowe, to establish a national endowment for the preservation, 
conservation, and restoration of our Nation's oceans, our coasts, and 
our Great Lakes. I also wish to take a moment and say a particular 
thank-you to an original cosponsor of this legislation, the chairman of 
the Commerce Committee, Senator Rockefeller of West Virginia.
  The National Endowment for the Oceans, along with the President's 
recent Executive order establishing our country's first ever national 
ocean policy, represent a long overdue and badly needed commitment to 
our great waters. While the President's national ocean policy specifies 
national objectives and outlines processes and government structures to 
restore, protect, and maintain our ocean and coastal resources, the 
National Endowment for the Oceans will provide the funding to actually 
achieve those public purposes. The endowment would make grants 
available to coastal and Great Lakes States, local government agencies, 
regional planning bodies, academic institutions, and nonprofit 
organizations so these entities could embark on projects to learn more 
about and do a better job of protecting our precious natural resources.
  Author C. Clarke once said:

       How inappropriate to call this planet Earth when it is 
     quite clearly ocean.

  Oceans cover three-quarters of our planet's surface, contain 90 
percent of our planet's water, and produce more than two-thirds of our 
planet's oxygen. For as long as mankind has lived on the lands of this 
planet, oceans have sustained our survival and been part of our 
identity.
  Speaking at a dinner in Newport, RI, in 1961, President Kennedy said:

       We are tied to the ocean . . . and when we go back to the 
     sea, whether it is to sail or to watch it, we are going back 
     from whence we came.

  My State, and indeed our country, always have kept a special bond 
with those great waters.
  As a practical matter, my State's economy, as do many others, relies 
on Narragansett Bay and Rhode Island Sound to provide the jobs for 
fishing, shipbuilding, tourism, and soon, we hope, wind farming. Across 
America, coastal waters generate over 50 percent of our Nation's gross 
domestic product and support more than 28 million jobs.
  So we don't call Rhode Island the Ocean State just because of its 
beautiful coasts and beaches. Although as a sailor and proud ambassador 
for Rhode Island's tourism industry, I will tell my colleagues that 
Rhode Island's coast is one of the most beautiful places on Earth. We 
are the Ocean State because from our earliest days we have relied on 
the ocean and our beloved Narragansett Bay for trade, for food, for 
jobs, for recreation, and for solace and inspiration.
  In part, it is Americans' love of the oceans that drives the need now 
to protect and restore them. Coastal America is experiencing a huge 
population boom, leading to more and more construction that puts 
significant pressure on our natural coastline and our wetlands. 
Worldwide demand for seafood grows at a pace that our fish stocks 
cannot keep pace with, and our demand for energy leads us deeper and 
deeper into the ocean in search of fuel.
  For too long, we have been takers from our oceans rather than 
caretakers of our oceans, and the evidence of our peril is mounting.
  From the Arctic Ocean, where ice sheets that have been part of Inuit 
lore as far back as memory and oral tradition go, are now disappearing, 
to the tropic seas, where coral reefs that serve as nurseries for ocean 
life are bleaching and dying, warnings are ringing.
  From the far-off waters of the Pacific, where a garbage gyre of 
accumulated marine litter has grown larger than the State of Texas, to 
our near coasts such as Rhode Island's own Narragansett Bay where the 
water temperature has risen 4 degrees in the winter in the last 40 
years, an ecosystem shift displacing our historic fisheries, warnings 
are ringing.
  From the top of the oceanic food chain, where pollutants are turning 
our marine mammals into swimming toxic waste and major pelagic species 
have suffered a 90-percent population crash, to the very bottom of the 
food chain where greenhouse gases change the fundamental chemistry of 
our oceans until they may become too acidic to support the plankton 
base of the food chain, real warnings are ringing.
  Our present day ocean is more acidic today than it has been in 8,000 
centuries. A change in ocean chemistry happening so quickly, we don't 
know if species will be able to adapt in time to survive. Even if we 
were to act immediately to curb our carbon pollution, the stress on 
these ecosystems will certainly worsen for some time from what we have 
already put into our atmosphere.
  So from the far Arctic to the warm tropics, from the far ocean to the 
near coasts, from the top of the food chain to the bottom, real warning 
bells are ringing.
  We can't begin to know what the total effects on our oceans will be, 
but what we have observed so far must be deeply troubling to any 
prudent, thoughtful person.
  If you have been to the Biltmore Hotel in downtown Providence, you 
have seen a large plaque on the wall in the lobby marking the high 
water mark of the great hurricane of 1938 when a massive storm surge 
filled downtown Providence and the hotel lobby to a depth of about 5 
feet. Sea level rise, another ocean threat, could mean that future 
storm surges crest much higher, wreaking far worse devastation.
  That is a threat that is not unique to Rhode Island. Island nations 
around the globe are currently preparing for the possibility--really, 
the inevitability--that they will literally be engulfed by the ocean.
  The National Intelligence Council reports that at least 30 American 
military installations around the world will be underwater if sea 
levels rise as projected. There is a dangerous feedback loop. The more 
ice that melts, the greater the danger. As darker ocean water traps 
rather than reflects the Sun's rays, melting accelerates and leaves us 
with less and less time to act, less and less time to spare our 
grandchildren the consequences of our generation's selfishness and 
folly.
  Even seemingly modest changes in temperature, such as the 4 degree 
increase in Narragansett Bay, wreak havoc on marine ecosystems, causing 
what amounts to a full ecosystem shift. Anybody who relies on marine 
life for food, recreation, or a paycheck may soon find their lives 
changed by the disruption of the ocean's delicate ecosystem.
  As a member of the Senate's Committee on Environment and Public 
Works, I find myself habitually frustrated that this ``tragedy of the 
commons'' continues to play out, while we stand idly on the sidelines 
and fail to intervene.
  As a source of jobs and economic opportunity, a key element of our 
American tradition and, truly, the origin of life on our planet, our 
oceans, and our responsibility for them, ought to occupy a more 
prominent place on our national agenda.
  Yet, our commitment to ocean and coastal preservation is unreliable 
at best--subject to the volatility of the yearly budget and 
appropriations process. None other than Robert Ballard, the famed ocean 
explorer who discovered the Titanic and is current president of the 
Ocean Exploration Trust, recently lamented that available funds for 
ocean research often fall far short of desired goals.

[[Page 13861]]

  As we stand here and BP's oil poisons our Gulf of Mexico, it is time 
to ask our political system to put the stewardship of our natural 
resources, our ocean resources, at the forefront of our national 
agenda. In the past, Congress had established lasting endowments to 
protect other important American priorities.
  Because we believe that a great society must cherish artistic 
expression and study closely the lessons of history, we established--
through the wisdom of Senator Claiborne Pell--the National Endowment 
for the Arts and the National Endowment for the Humanities. Because we 
believe that a great society must connect communities to each other, we 
established a national highway trust fund. Because we believe that a 
great society must guarantee its elders a dignified and comfortable 
retirement after a lifetime of work, we established Social Security. 
Because we are indeed tied to our great waters, we should now act to 
establish a national endowment for the oceans, coasts, and Great Lakes.
  This legislation, as I said, is bipartisan. I thank Senator Olympia 
Snowe for joining in this effort. This legislation is science based, 
with much of the money made available through a competitive grant 
program that will award funding to research undertaken by academic 
institutions, on-the-ground conservation by nonprofit organizations, 
and local governments, and protection of critical public 
infrastructure.
  This legislation is cost effective, coordinating existing efforts of 
Federal, local, and private programs, reducing duplication of research 
efforts, and crossing political borders to ensure that every dollar is 
spent with the greatest possible effect.
  This legislation is appropriately paid for with revenue generated 
from the oilspill liability trust fund, Outer Continental Shelf 
drilling, offshore renewable energy development, and fines collected 
for violations of the Federal law off our coastline. Put simply, a 
small portion of the revenue extracted from our oceans and great waters 
must be reinvested to now protect their long-term viability.
  The ocean provides us with great bounty, and we will continue to take 
advantage of the ocean's bounty, as we should. We will fish, we will 
sail, and we will trade. We will dispose of waste. We will extract fuel 
and construct wind farms. We will put pressure on our oceans. Navies 
and cruise ships, sailboats and supertankers, will plow their surface. 
We cannot change that part of our relationship with the sea.
  What we can change is what we do in return. We can, for the first 
time, give back. We can become stewards of our oceans--not just takers, 
but caretakers.
  My wife, Sandra, is a marine biologist. We have watched as the 
University of Rhode Island, home of the Graduate School of 
Oceanography, has become a world leader in understanding our oceans and 
how to conserve them.
  We are watching GSO's researchers struggle to keep up with rapid 
changes reshaping the ecosystems they study. This endowment will help 
science keep pace with change.
  The National Oceanic Atmospheric Administration received $167 million 
for coastal restoration projects under the Recovery Act last year. More 
than 800 proposals for shovel-ready projects came in, totaling $3 
billion. But NOAA could only fund 50. This endowment will help us move 
forward with those projects that protect our oceans and drive our 
economy.
  The oceans contain the potential for new discoveries, the potential 
for new jobs, and the potential for new solutions to the emerging 
crisis off our shores.
  But it is time to act. I urge my colleagues to join Senator Snowe and 
myself in support of this legislation. Let ours be the generation that 
tips the increasingly troubling balance between mankind and the oceans, 
from whence we came, a little bit back toward the benefit of our 
oceans.
  Ms. SNOWE. Mr. President, as I rise today to join Senator Whitehouse 
in introducing the National Endowment for the Oceans Act, our Nation 
continues to bear the brunt of what has now become the biggest offshore 
oil spill in recorded history. Since April 20, 2010, when the mobile 
offshore drilling unit Deepwater Horizon exploded and sank 50 miles off 
the coast of Louisiana, claiming the lives of 11 men, as much as 180 
million gallons of oil has spewed into the Gulf of Mexico. The 
ecosystem, environment, and the culture of the Gulf coast region will 
feel the effects of this spill for decades to come in the aftermath of 
an event that has focused National attention on one of our most 
productive, beautiful, and beloved resources: our oceans and coasts. I 
also want to acknowledge the support of the Chair of the Senate 
Committee on Commerce, Science, and Transportation, Senator Rockefeller 
for his cosponsorship of this initiative.
  As Ranking Member on the Commerce Subcommittee on Oceans, Atmosphere, 
Fisheries, and Coast Guard, and as a Senator from a state which relies 
heavily on our marine and coastal resources, I have long appreciated 
the tremendous value of America's oceans, coasts, and Great Lakes. 
Throughout my time in this body I have pursued policies that would 
enhance our stewardship of these treasured regions, and permit 
sustainable use of the bounty they provide. This legislation would 
ensure a brighter future for these areas that heal our souls and drive 
our economy.
  Investment in our oceans is investment in our future. The United 
States' exclusive economic zone, encompassing the area 200 miles out 
from our shores, covers more of the earth's surface than our land area, 
and ultimately what affects our coastal economy drives our Nation's 
economy. More than 75 percent of growth in this country from 1997 to 
2007, whether measured in population, jobs, or gross domestic product, 
occurred in coastal States. Coastal counties, covering just 18 percent 
of our land area, contributed 42 percent of U.S. economic output in 
2007 according to a report published last year by the National Ocean 
Economics Program. Tourism, inherently reliant on pristine beaches, 
healthy habitat to foster fish, shellfish, and marine mammals, and 
fishable, swimmable waters, contributed over half a trillion dollars to 
our national GDP.
  This is why in the 2004 report of the U.S. Commission on Ocean 
Policy, one of that body's fundamental priorities was the creation of 
an ocean policy trust fund to supplement existing appropriations for 
ocean and coastal programs. The Joint Ocean Commission Initiative, 
comprised of members of that body and the Pew Oceans Commission, has 
consistently listed establishment of an ocean trust fund among its 
highest priorities. The National Endowment for the Oceans will at long 
last meet this demand and provide a consistent stream of supplemental 
funding to enhance our commitment to protecting and sustaining these 
most fragile resources.
  The fact is, our oceans and coastal regions face more challenges 
today than at any time in our history. Global climate change is already 
being felt more pressingly off our shores than our scientists yet 
understand. In the past few years alone, ocean acidification, a threat 
so new it was not even mentioned in the Ocean Commission's report, has 
begun to change the fundamental makeup of the ocean food web and 
destroy coral reef structures that have for eons girded our shores and 
provided nursery grounds for countless species of fish. Scientists 
believe increasing ocean temperatures are to blame for a steep and 
sudden decline in the southern New England and Long Island Sound 
lobster populations. This problem is so grave that fishery managers are 
considering closing the entire fishery in this area that has been rich 
with lobster throughout the duration of recorded human history. Hypoxic 
areas known as ``dead zones'' are cropping up off our shores in areas 
where they never before existed, and the annual hypoxic zone in the 
Gulf of Mexico regularly encompasses an area the size of the state of 
New Jersey. I could go on and on, but my point is abundantly clear--our 
oceans need our help.
  This vital legislation would set aside a portion of revenues from 
offshore oil and gas and renewable energy development on the outer 
continental shelf

[[Page 13862]]

and would apply interest generated by the oil spill liability trust 
fund to a dedicated National Endowment for the Oceans. This endowment 
would fund three targeted grant programs--one to coastal states, a 
second to support regional ocean partnerships, and a third to fund the 
activities of additional ocean research not covered by the other two 
programs. This money would be available at the discretion of State and 
Federal resource managers for activities proven to restore, protect, 
maintain, or understand living marine resources and their habitats and 
ecosystems.
  Funding will supplement, not replace, annual appropriations for the 
National Oceanic and Atmospheric Administrations, NOAA, and other 
Federal agencies already carrying out critical work in our ocean, 
coastal, and Great Lakes regions. In the past I have pressed the 
Administration and others in this body to increase Federal support for 
these agencies. I will continue to call for increases in NOAA's base 
funding until our investment in the agency meets the requirements of 
its missions. In the meantime, this program would provide a significant 
boost to our efforts to protect, conserve, restore, and understand the 
oceans, coasts and Great Lakes so vital to our national heritage, 
culture, economy, and identity.
  I would like once again to thank Senator Whitehouse for his tireless 
ocean advocacy and his invaluable work to introduce the National 
Endowment for the Oceans Act, and Senator Rockefeller for his 
cosponsorship of this initiative, and I look forward to working with 
them on this and many more ocean issues in the future.
                                 ______
                                 
      By Mrs. BOXER (for herself, Mr. Merkley, Mrs. Gillibrand, and Mr. 
        Begich):
  S. 3642. A bill to ensure that the underwriting standards of Fannie 
Mae and Freddie Mac facilitate the use of property assessed clean 
energy programs to finance the installation of renewable energy and 
energy efficiency improvements; to the Committee on Banking, Housing, 
and Urban Affairs.
  Mrs. BOXER. Mr. President, I rise today to introduce the PACE 
Assessment Protection Act of 2010. I am pleased to be joined in this 
effort by my colleagues, Senators Merkley, Gillibrand, and Begich.
  Property Assessed Clean Energy or PACE programs allow homeowners and 
building owners to finance an energy efficiency upgrade to their 
property through a tax assessment on that property. In this way, 
property owners are able to spread the cost of the upgrades over 
several years, lower their energy costs, contribute to a cleaner 
environment, and create jobs.
  In California, nearly half of the State's 58 counties, as well as 
individual cities, have developed PACE programs or plan to start one, 
and 23 states as well as the District of Columbia have enacted PACE 
legislation. The program has the strong support of the White House and 
the Department of Energy, and many States and cities dedicated Recovery 
Act funding for their PACE programs.
  Despite the promise of this program, the Federal Housing Finance 
Agency recently ordered Fannie Mae and Freddie Mac to take actions that 
limit the use of PACE programs in conjunction with their home 
mortgages, effectively killing the program. FHFA objected that PACE 
assessments carry a priority lien, ahead of the lenders, on 
participating properties.
  The right of States and localities to secure property tax assessments 
with a senior position is well established, and in the past, Fannie and 
Freddie have always respected this right--such as with assessments to 
finance sidewalks, bridges, or parks and other projects that provide a 
public benefit--without raising any concerns over the impact of such 
priority liens. In addition, the Department of Energy issued guidance 
for municipalities intending to use Recovery Act funding for PACE 
programs that calls for strong underwriting standards. These guidelines 
require that the savings a property owner would see as a result of any 
upgrade must be greater than the cost of the assessment, leaving 
homeowners in a more financially secure position.
  To allow PACE programs to continue, as well as protect homeowners and 
taxpayers, we must take immediate action to address the overreach by 
the FHFA. My legislation would require Fannie Mae and Freddie Mac to: 
adopt sound underwriting standards for financing clean-energy upgrades, 
consistent with Department of Energy guidelines; treat a PACE 
assessment as any other property tax assessment and respect States' 
authority to secure such assessments with a first lien; allow 
homeowners to finance, refinance, or sell their home without having to 
repay any PACE assessment first; prohibit discrimination against 
communities implementing or participating in a PACE program.
  The legislation also limits the assessment amount subject to 
foreclosure to only the unpaid delinquent amount, along with applicable 
penalties, interest and costs, and not the entire amount.
  The current uncertainty surrounding PACE programs is jeopardizing 
$110 million in Federal investments for California communities, and 
millions more in other States, which is simply unacceptable. We must 
take action to protect these initiatives because they create jobs, save 
homeowners money on their energy bills and help our environment. I urge 
my colleagues to join me and to support this legislation.
                                 ______
                                 
      By Mr. McCONNELL (for himself, Ms. Murkowski, Mr. Alexander, Mr. 
        Inhofe, and Mr. Thune):
  S. 3643. A bill to amend the Outer Continental Shelf Lands Act to 
reform the management of energy and mineral resources on the Outer 
Continental Shelf, to improve oil spill compensation, to terminate the 
moratorium on deepwater drilling, and for other purposes; read the 
first time.
  Mr. McCONNELL. Mr. President, I ask unanimous consent that the text 
of the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3643

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Oil Spill 
     Response Improvement Act of 2010''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                TITLE I--OUTER CONTINENTAL SHELF REFORM

Sec. 101. Purposes.
Sec. 102. Definitions.
Sec. 103. National policy for the outer Continental Shelf.
Sec. 104. Structural reform of outer Continental Shelf program 
              management.
Sec. 105. Safety, environmental, and financial reform of the Outer 
              Continental Shelf Lands Act.
Sec. 106. Study on the effect of the moratoria on new deepwater 
              drilling in the Gulf of Mexico on employment and small 
              businesses.
Sec. 107. Reform of other law.
Sec. 108. Safer oil and gas production.
Sec. 109. National Commission on Outer Continental Shelf Oil Spill 
              Prevention.
Sec. 110. Classification of offshore systems.
Sec. 111. Savings provisions.
Sec. 112. Budgetary effects.

                    TITLE II--OIL SPILL COMPENSATION

                    Subtitle A--Oil Spill Liability

                   PART I--Oil Pollution Act of 1990

Sec. 201. Liability limits.
Sec. 202. Advance payment.

                PART II--Oil Spill Liability Trust Fund

Sec. 211. Rate of tax for Oil Spill Liability Trust Fund.
Sec. 212. Limitations on expenditures and borrowing authority.

                 Subtitle B--Federal Oil Spill Research

Sec. 221. Definitions.
Sec. 222. Federal oil spill research.
Sec. 223. National Academy of Science participation.
Sec. 224. Technical and conforming amendments.
Sec. 225. Oil spill response authority.
Sec. 226. Maritime center of expertise.
Sec. 227. National strike force.
Sec. 228. District preparedness and response teams.
Sec. 229. Oil spill response organizations.
Sec. 230. Program for oil spill and hazardous substance release 
              response.
Sec. 230a. Oil and hazardous substance liability.

[[Page 13863]]

                    Subtitle C--Oil and Gas Leasing

Sec. 231. Revenue sharing from outer Continental Shelf areas in certain 
              coastal States.
Sec. 232. Revenue sharing from areas in Alaska Adjacent zone.
Sec. 233. Accelerated revenue sharing to promote coastal resiliency 
              among Gulf producing States.
Sec. 234. Coastal impact assistance program amendments.
Sec. 235. Production of oil from certain Arctic offshore leases.
Sec. 236. Use of stimulus funds to offset spending.

 TITLE III--GUIDANCE ON MORATORIUM ON OUTER CONTINENTAL SHELF DRILLING

Sec. 301. Limitation of moratorium on certain permitting and drilling 
              activities.
Sec. 302. Deepwater Horizon incident.

                TITLE I--OUTER CONTINENTAL SHELF REFORM

     SEC. 101. PURPOSES.

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

     SEC. 102. DEFINITIONS.

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

     SEC. 103. NATIONAL POLICY FOR THE OUTER CONTINENTAL SHELF.

       Section 3 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1332) is amended--
       (1) by striking paragraph (3) and inserting the following:
       ``(3) the outer Continental Shelf is a vital national 
     resource reserve held by the Federal Government for the 
     public, which should be managed in a manner that--
       ``(A) recognizes the need of the United States for 
     competitive domestic sources of energy, food, minerals, and 
     other resources;
       ``(B) minimizes the potential impacts of development of 
     those resources on the marine and coastal environment and on 
     human health and safety; and
       ``(C) acknowledges the long-term economic value to the 
     United States of the balanced, expeditious, and orderly 
     management and production of those resources that safeguards 
     the environment and respects the multiple values and uses of 
     the outer Continental Shelf;'';
       (2) in paragraph (4)(C), by striking the period at the end 
     and inserting a semicolon;
       (3) in paragraph (5), by striking ``; and'' and inserting a 
     semicolon;
       (4) by redesignating paragraph (6) as paragraph (7);
       (5) by inserting after paragraph (5) the following:
       ``(6) exploration, development, and production of energy 
     and minerals on the outer Continental Shelf should be allowed 
     only when those activities can be accomplished in a manner 
     that provides reasonable assurance of adequate protection 
     against harm to life, health, the environment, property, or 
     other users of the waters, seabed, or subsoil; and''; and
       (6) in paragraph (7) (as so redesignated)--
       (A) by striking ``should be'' and inserting ``shall be''; 
     and
       (B) by adding ``best available commercial'' after 
     ``using''.

     SEC. 104. STRUCTURAL REFORM OF OUTER CONTINENTAL SHELF 
                   PROGRAM MANAGEMENT.

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

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

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

[[Page 13864]]

       ``(2) Critical pay authority.--
       ``(A) In general.--Notwithstanding section 5377 of title 5, 
     United States Code, and without regard to the provisions of 
     that title governing appointments in the competitive service 
     or the Senior Executive Service and chapters 51 and 53 of 
     that title (relating to classification and pay rates), the 
     Secretary may establish, fix the compensation of, and appoint 
     individuals to critical positions needed to carry out the 
     functions of any of the organizational units established 
     under this section, if the Secretary certifies that--
       ``(i) the positions--

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

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

     SEC. 105. SAFETY, ENVIRONMENTAL, AND FINANCIAL REFORM OF THE 
                   OUTER CONTINENTAL SHELF LANDS ACT.

       (a) Definitions.--Section 2 of the Outer Continental Shelf 
     Lands Act (43 U.S.C. 1331) is amended by adding at the end 
     the following:
       ``(r) Safety Case.--The term `safety case' means a complete 
     set of safety documentation that provides a basis for 
     determining whether a system is adequately safe for a given 
     application in a given environment.''.
       (b) Administration of Leasing.--Section 5(a) of the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1334(a)) is amended in 
     the second sentence--
       (1) by striking ``The Secretary may at any time'' and 
     inserting ``The Secretary shall''; and
       (2) by inserting after ``provide for'' the following: 
     ``operational safety, the protection of the marine and 
     coastal environment,''.
       (c) Maintenance of Leases.--Section 6 of the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1335) is amended by 
     adding at the end the following:
       ``(f) Review of Bond and Surety Amounts.--Not later than 
     May 1, 2011, and every 5 years thereafter, the Secretary 
     shall--
       ``(1) review the minimum financial responsibility 
     requirements for mineral leases under subsection (a)(11); and
       ``(2) adjust for inflation based on the Consumer Price 
     Index for all Urban Consumers published by the Bureau of 
     Labor Statistics of the Department of Labor, and recommend to 
     Congress any further changes to existing financial 
     responsibility requirements necessary to permit lessees to 
     fulfill all obligations under this Act or the Oil Pollution 
     Act of 1990 (33 U.S.C. 2701 et seq.).
       ``(g) Periodic Fiscal Reviews and Reports.--
       ``(1) Royalty rates.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of this subsection and every 4 years thereafter, 
     the Secretary shall carry out a review of, and prepare a 
     report that describes--
       ``(i) the royalty and rental rates included in new offshore 
     oil and gas leases and the rationale for the rates;
       ``(ii) whether, in the view of the Secretary, the royalty 
     and rental rates described in subparagraph (A) would yield a 
     fair return to the public while promoting the production of 
     oil and gas resources in a timely manner; and
       ``(iii) whether, based on the review, the Secretary intends 
     to modify the royalty or rental rates.
       ``(B) Public participation.--In carrying out a review and 
     preparing a report under subparagraph (A), the Secretary 
     shall provide to the public an opportunity to participate.
       ``(2) Comparative review of fiscal system.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of this subsection and every 4 years thereafter, 
     the Secretary in consultation with the Secretary of the 
     Treasury, shall carry out a comprehensive review of all 
     components of the Federal offshore oil and gas fiscal system, 
     including requirements and trends for bonus bids, rental 
     rates, royalties, oil and gas taxes, income taxes, wage 
     requirements, regulatory compliance costs, oil and gas fees, 
     and other significant financial elements.
       ``(B) Inclusions.--The review shall include--
       ``(i) information and analyses comparing the offshore bonus 
     bids, rents, royalties, taxes, and fees of the Federal 
     Government to the offshore bonus bids, rents, royalties, 
     taxes, and fees of other resource owners (including States 
     and foreign countries); and
       ``(ii) an assessment of the overall offshore oil and gas 
     fiscal system in the United States, as compared to foreign 
     countries.
       ``(C) Independent advisory committee.--In carrying out a 
     review under this paragraph, the Secretary shall convene and 
     seek the advice of an independent advisory committee 
     comprised of oil and gas and fiscal experts from States, 
     Indian tribes, academia, the energy industry, and appropriate 
     nongovernmental organizations.
       ``(D) Report.--The Secretary shall prepare a report that 
     contains--
       ``(i) the contents and results of the review carried out 
     under this paragraph for the period covered by the report; 
     and
       ``(ii) any recommendations of the Secretary and the 
     Secretary of the Treasury based on the contents and results 
     of the review.
       ``(E) Combined report.--The Secretary may combine the 
     reports required by paragraphs (1) and (2)(D) into 1 report.
       ``(3) Report deadline.--Not later than 30 days after the 
     date on which the Secretary completes each report under this 
     subsection, the Secretary shall submit copies of the report 
     to--
       ``(A) the Committee on Energy and Natural Resources of the 
     Senate;
       ``(B) the Committee on Finance of the Senate;
       ``(C) the Committee on Natural Resources of the House of 
     Representatives; and
       ``(D) the Committee on Ways and Means of the House of 
     Representatives.''.
       (d) Leases, Easements, and Rights-of-Way.--Section 8 of the 
     Outer Continental Shelf Lands Act (43 U.S.C. 1337) is amended 
     by striking subsection (d) and inserting the following:

[[Page 13865]]

       ``(d) Disqualification From Bidding.--No bid for a lease 
     may be submitted by any entity that the Secretary finds, 
     after prior public notice and opportunity for a hearing--
       ``(1) is not meeting due diligence, safety, or 
     environmental requirements, constituting significant 
     infractions, on other leases; or
       ``(2)(A) is a responsible party for a vessel or a facility 
     from which oil is discharged, for purposes of section 1002 of 
     the Oil Pollution Act of 1990 (33 U.S.C. 2702); and
       ``(B) has failed to meet the obligations of the responsible 
     party under that Act to provide compensation for covered 
     removal costs and damages.''.
       (e) Exploration Plans.--Section 11 of the Outer Continental 
     Shelf Lands Act (43 U.S.C. 1340) is amended--
       (1) in subsection (c)--
       (A) in the fourth sentence of paragraph (1), by striking 
     ``within thirty days of its submission'' and inserting ``by 
     the deadline described in paragraph (5)'';
       (B) by striking paragraph (3) and inserting the following:
       ``(3) Minimum requirements.--
       ``(A) In general.--An exploration plan submitted under this 
     subsection shall include, in such degree of detail as the 
     Secretary by regulation may require--
       ``(i) a complete description and schedule of the 
     exploration activities to be undertaken;
       ``(ii) a description of the equipment to be used for the 
     exploration activities, including--

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

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

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

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

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

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

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

       ``(C) not later than May 1, 2012, requires that all 
     employees on the rig meet the training and experience 
     requirements under section 21(b)(4).
       ``(e) Disapproval of Exploration Plan.--
       ``(1) In general.--The Secretary shall disapprove an 
     exploration plan submitted under this section if the 
     Secretary determines that, because of exceptional geological 
     conditions in the lease areas, exceptional resource values in 
     the marine or coastal environment, or other exceptional 
     circumstances, that--
       ``(A) implementation of the exploration plan would probably 
     cause serious harm or damage to life (including fish and 
     other aquatic life), property, mineral deposits, national 
     security or defense, or the marine, coastal or human 
     environments;
       ``(B) the threat of harm or damage would not disappear or 
     decrease to an acceptable extent within a reasonable period 
     of time; and
       ``(C) the advantages of disapproving the exploration plan 
     outweigh the advantages of exploration.
       ``(2) Compensation.--If an exploration plan is disapproved 
     under this subsection, the provisions of subparagraphs (B) 
     and (C) of section 25(h)(2) shall apply to the lease and the 
     plan or any modified plan, except that the reference in 
     section 25(h)(2) to a development and production plan shall 
     be considered to be a reference to an exploration plan.''.
       (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:

[[Page 13866]]

       ``(i) Research and Development.--
       ``(1) In general.--The Secretary shall carry out a program 
     of research and development to ensure the continued 
     improvement of methodologies for characterizing resources of 
     the outer Continental Shelf and conditions that may affect 
     the ability to develop and use those resources in a safe, 
     sound, and environmentally responsible manner.
       ``(2) Inclusions.--Research and development activities 
     carried out under paragraph (1) may include activities to 
     provide accurate estimates of energy and mineral reserves and 
     potential on the outer Continental Shelf and any activities 
     that may assist in filling gaps in environmental data needed 
     to develop each leasing program under this section.
       ``(3) Leasing activities.--Research and development 
     activities carried out under paragraph (1) shall not be 
     considered to be leasing or pre-leasing activities for 
     purposes of this Act.''.
       (g) Environmental Studies.--Section 20 of the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1346) is amended--
       (1) by redesignating subsections (a) through (f) as 
     subsections (b) through (g), respectively;
       (2) by inserting before subsection (b) (as so redesignated) 
     the following:
       ``(a) Comprehensive and Independent Studies.--
       ``(1) In general.--The Secretary shall develop and carry 
     out programs for the collection, evaluation, assembly, 
     analysis, and dissemination of environmental and other 
     resource data that are relevant to carrying out the purposes 
     of this Act.
       ``(2) Scope of research.--The programs under this 
     subsection shall include--
       ``(A) the gathering of baseline data in areas before energy 
     or mineral resource development activities occur;
       ``(B) ecosystem research and monitoring studies to support 
     integrated resource management decisions; and
       ``(C) the improvement of scientific understanding of the 
     fate, transport, and effects of discharges and spilled 
     materials, including deep water hydrocarbon spills, in the 
     marine environment.
       ``(3) Use of data.--The Secretary shall ensure that 
     information from the studies carried out under this section--
       ``(A) informs the management of energy and mineral 
     resources on the outer Continental Shelf including any areas 
     under consideration for oil and gas leasing; and
       ``(B) contributes to a broader coordination of energy and 
     mineral resource development activities within the context of 
     best available science.
       ``(4) Independence.--The Secretary shall create a program 
     within the appropriate bureau established under section 32 
     that shall--
       ``(A) be programmatically separate and distinct from the 
     leasing program;
       ``(B) carry out the environmental studies under this 
     section;
       ``(C) conduct additional environmental studies relevant to 
     the sound management of energy and mineral resources on the 
     outer Continental Shelf;
       ``(D) provide for external scientific review of studies 
     under this section, including through appropriate 
     arrangements with the National Academy of Sciences; and
       ``(E) subject to the restrictions of subsections (g) and 
     (h) of section 18, make available to the public studies 
     conducted and data gathered under this section.''; and
       (3) in the first sentence of subsection (b)(1) (as so 
     redesignated), by inserting ``every 3 years'' after ``shall 
     conduct''.
       (h) Safety Research and Regulations.--Section 21 of the 
     Outer Continental Shelf Lands Act (43 U.S.C. 1347) is 
     amended--
       (1) in the first sentence of subsection (a), by striking 
     ``Upon the date of enactment of this section,'' and inserting 
     ``Not later than May 1, 2011, and every 3 years 
     thereafter,'';
       (2) by striking subsection (b) and inserting the following:
       ``(b) Best Available Technologies and Practices.--
       ``(1) In general.--In exercising respective 
     responsibilities under this Act, the Secretary, and the 
     Secretary of the Department in which the Coast Guard is 
     operating, shall require, on all new drilling and production 
     operations and, to the maximum extent practicable, on 
     existing operations, the use of the best available and safest 
     commercial technologies and practices, if the failure of 
     equipment would have a significant effect on safety, health, 
     or the environment.
       ``(2) Identification of best available technologies.--Not 
     later than May 1, 2011, the Secretary shall identify and 
     publish a list, to be updated and maintained to reflect 
     technological advances, of best available commercial 
     technologies for key areas of well design and operation, 
     including blowout prevention and blowout and oil spill 
     response.
       ``(3) Safety case.--Not later than May 1, 2011, the 
     Secretary shall promulgate regulations requiring a safety 
     case be submitted along with each new application for a 
     permit to drill on the outer Continental Shelf.
       ``(4) Employee training.--
       ``(A) In general.--Not later than May 1, 2011, the 
     Secretary shall promulgate regulations setting standards for 
     training for all workers on offshore facilities (including 
     mobile offshore drilling units) conducting energy and mineral 
     resource exploration, development, and production operations 
     on the outer Continental Shelf.
       ``(B) Requirements.--The training standards under this 
     paragraph shall require that employers of workers described 
     in subparagraph (A)--
       ``(i) establish training programs approved by the 
     Secretary; and
       ``(ii) demonstrate that employees involved in the offshore 
     operations meet standards that demonstrate the aptitude of 
     the employees in critical technical skills.
       ``(C) Experience.--The training standards under this 
     section shall require that any offshore worker with less than 
     5 years of applied experience in offshore facilities 
     operations pass a certification requirement after receiving 
     the appropriate training.
       ``(D) Monitoring training courses.--The Secretary shall 
     ensure that Department employees responsible for inspecting 
     offshore facilities monitor, observe, and report on training 
     courses established under this paragraph, including attending 
     a representative number of the training sessions, as 
     determined by the Secretary.''; and
       (3) by adding at the end the following:
       ``(g) Technology Research and Risk Assessment Program.--
       ``(1) In general.--The Secretary shall carry out a program 
     of research, development, and risk assessment to address 
     technology and development issues associated with outer 
     Continental Shelf energy and mineral resource activities, 
     with the primary purpose of informing the role of research, 
     development, and risk assessment relating to safety, 
     environmental protection, and spill response.
       ``(2) Specific areas of focus.--The program under this 
     subsection shall include research, development, and other 
     activities related to--
       ``(A) risk assessment, using all available data from safety 
     and compliance records both within the United States and 
     internationally;
       ``(B) analysis of industry trends in technology, 
     investment, and interest in frontier areas;
       ``(C) analysis of incidents investigated under section 22;
       ``(D) reviews of best available commercial technologies, 
     including technologies associated with pipelines, blowout 
     preventer mechanisms, casing, well design, and other 
     associated infrastructure related to offshore energy 
     development;
       ``(E) oil spill response and mitigation;
       ``(F) risks associated with human factors; and
       ``(G) renewable energy operations.
       ``(3) Information sharing activities.--
       ``(A) Domestic activities.--The Secretary shall carry out 
     programs to facilitate the exchange and dissemination of 
     scientific and technical information and best practices 
     related to the management of safety and environmental issues 
     associated with energy and mineral resource exploration, 
     development, and production.
       ``(B) International cooperation.--The Secretary shall carry 
     out programs to cooperate with international organizations 
     and foreign governments to share information and best 
     practices related to the management of safety and 
     environmental issues associated with energy and mineral 
     resource exploration, development, and production.
       ``(4) Reports.--The program under this subsection shall 
     provide to the Secretary, each Bureau Director under section 
     32, and the public quarterly reports that address--
       ``(A) developments in each of the areas under paragraph 
     (2); and
       ``(B)(i) any accidents that have occurred in the past 
     quarter; and
       ``(ii) appropriate responses to the accidents.
       ``(5) Independence.--The Secretary shall create a program 
     within the appropriate bureau established under section 32 
     that shall--
       ``(A) be programmatically separate and distinct from the 
     leasing program;
       ``(B) carry out the studies, analyses, and other activities 
     under this subsection;
       ``(C) provide for external scientific review of studies 
     under this section, including through appropriate 
     arrangements with the National Academy of Sciences; and
       ``(D) make available to the public studies conducted and 
     data gathered under this section.
       ``(6) Use of data.--The Secretary shall ensure that the 
     information from the studies and research carried out under 
     this section inform the development of safety practices and 
     regulations as required by this Act and other applicable 
     laws.''.
       (i) Enforcement.--Section 22 of the Outer Continental Shelf 
     Lands Act (43 U.S.C. 1348) is amended--
       (1) in subsection (d)--
       (A) in paragraph (1)--
       (i) in the first sentence, by inserting ``, each loss of 
     well control, blowout, activation of the shear rams, and 
     other accident that presented a serious risk to human or 
     environmental safety,'' after ``fire''; and
       (ii) in the last sentence, by inserting ``as a condition of 
     the lease'' before the period at the end;

[[Page 13867]]

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

     ``SEC. 29. CONFLICTS OF INTEREST.

       ``(a) Restrictions on Employment.--No full-time officer or 
     employee of the Department of the Interior who directly or 
     indirectly discharges duties or responsibilities under this 
     Act shall--
       ``(1) within 2 years after his employment with the 
     Department has ceased--
       ``(A) knowingly act as agent or attorney for, or otherwise 
     represent, any other person (except the United States) in any 
     formal or informal appearance before;
       ``(B) with the intent to influence, make any oral or 
     written communication on behalf of any other person (except 
     the United States) to; or
       ``(C) knowingly aid, advise, or assist in--
       ``(i) representing any other person (except the United 
     States in any formal or informal appearance before; or
       ``(ii) making, with the intent to influence, any oral or 
     written communication on behalf of any other person (except 
     the United States) to,
     any department, agency, or court of the United States, or any 
     officer or employee thereof, in connection with any judicial 
     or other proceeding, application, request for a ruling or 
     other determination, regulation, order lease, permit, 
     rulemaking, inspection, enforcement action, or other 
     particular matter involving a specific party or parties in 
     which the United States is a party or has a direct and 
     substantial interest which was actually pending under his 
     official responsibility as an officer or employee within a 
     period of one year prior to the termination of such 
     responsibility or in which he participated personally and 
     substantially as an officer or employee;
       ``(2) within 1 year after his employment with the 
     Department has ceased--
       ``(A) knowingly act as agent or attorney for, or otherwise 
     represent, any other person (except the United States) in any 
     formal or informal appearance before;
       ``(B) with the intent to influence, make any oral or 
     written communication on behalf of any other person (except 
     the United States) to; or
       ``(C) knowingly aid , advise, or assist in --
       ``(i) representing any other person (except the United 
     States in any formal or informal appearance before, or
       ``(ii) making, with the intent to influence, any oral or 
     written communication on behalf of any other person (except 
     the United States) to,
     the Department of the Interior, or any officer or employee 
     thereof, in connection with any judicial, rulemaking, 
     regulation, order, lease, permit, regulation, inspection, 
     enforcement action, or other particular matter which is 
     pending before the Department of the Interior or in which the 
     Department has a direct and substantial interest; or
       ``(3) accept employment or compensation, during the 1-year 
     period beginning on the 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--

[[Page 13868]]

       ``(1) the officer or employee or the spouse, minor child, 
     or general partner of the officer or employee has a financial 
     interest;
       ``(2) any organization in which the officer or employee is 
     serving as an officer, director, trustee, general partner, or 
     employee has a financial interest;
       ``(3) any person or organization with whom the officer or 
     employee is negotiating or has any arrangement concerning 
     prospective employment has a financial interest; or
       ``(4) any person or organization in which the officer or 
     employee has, within the preceding 1-year period, served as 
     an officer, director, trustee, general partner, agent, 
     attorney, consultant, contractor, or employee has a financial 
     interest.
       ``(c) Gifts From Outside Sources.--No full-time officer or 
     employee of the Department of the Interior who directly or 
     indirectly discharges duties or responsibilities under this 
     Act shall, directly or indirectly, solicit or accept any gift 
     in violation of subpart B of part 2635 of title V, Code of 
     Federal Regulations (or successor regulations).
       ``(d) Exemptions.--The Secretary may, by rule, exempt from 
     this section clerical and support personnel who do not 
     conduct inspections, perform audits, or otherwise exercise 
     regulatory or policy making authority under this Act.
       ``(e) Penalties.--
       ``(1) Criminal penalties.--Any person who violates 
     paragraph (1) or (2) of subsection (a) or subsection (b) 
     shall be punished in accordance with section 216 of title 18, 
     United States Code.
       ``(2) Civil penalties.--Any person who violates subsection 
     (a)(3) or (c) shall be punished in accordance with subsection 
     (b) of section 216 of title 18, United States Code.''.

     SEC. 106. STUDY ON THE EFFECT OF THE MORATORIA ON NEW 
                   DEEPWATER DRILLING IN THE GULF OF MEXICO ON 
                   EMPLOYMENT AND SMALL BUSINESSES.

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

     SEC. 107. REFORM OF OTHER LAW.

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

     SEC. 108. SAFER OIL AND GAS PRODUCTION.

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

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

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

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

       (C) by adding at the end the following:
       ``(8) Study; report.--
       ``(A) Study.--As soon as practicable after the date of 
     enactment of this paragraph, the Secretary shall enter into 
     an arrangement with the National Academy of Sciences under 
     which the Academy shall conduct a study to determine--
       ``(i) whether the benefits provided through each award 
     under this subsection during calendar year 2011 have been 
     maximized; and
       ``(ii) the new areas of research that could be carried out 
     to meet the overall objectives of the program.
       ``(B) Report.--Not later than January 1, 2012, the 
     Secretary shall submit to the appropriate committees of 
     Congress a report that contains a description of the results 
     of the study conducted under subparagraph (A).
       ``(C) Optional updates.--The Secretary may update the 
     report described in subparagraph (B) for the 5-year period 
     beginning on the date described in that subparagraph and each 
     5-year period thereafter.'';
       (5) in subsection (e)--
       (A) in paragraph (2)--
       (i) in the second sentence of subparagraph (A), by 
     inserting ``to the Secretary for review'' after ``submit''; 
     and
       (ii) in the first sentence of subparagraph (B), by striking 
     ``Ultra-Deepwater'' and all that follows through ``and such 
     Advisory 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)--

[[Page 13869]]

       (A) in the subsection heading, by striking ``United States 
     Geological Survey'' and inserting ``Department of the 
     Interior''; and
       (B) by striking ``, through the United States Geological 
     Survey,''; and
       (7) in the first sentence of subsection (j), by striking 
     ``National Energy Technology Laboratory'' and inserting 
     ``Office of Fossil Energy of the Department''.
       (c) Additional Requirements for Awards.--Section 999C(b) of 
     the Energy Policy Act of 2005 (42 U.S.C. 16373(b)) is amended 
     by striking ``an ultra-deepwater technology or an ultra-
     deepwater architecture'' and inserting ``a deepwater 
     technology''.
       (d) Program Advisory Committee.--Section 999D of the Energy 
     Policy Act of 2005 (42 U.S.C. 16374) is amended to read as 
     follows:

     ``SEC. 999D. PROGRAM ADVISORY COMMITTEE.

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

     SEC. 109. NATIONAL COMMISSION ON OUTER CONTINENTAL SHELF OIL 
                   SPILL PREVENTION.

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

[[Page 13870]]

     meet upon the call of the Chairperson or a majority of the 
     members of the Commission.
       (B) Quorum.--6 members of the Commission shall constitute a 
     quorum.
       (C) Vacancies.--Any vacancy in the Commission shall not 
     affect the powers of the Commission, but shall be filled in 
     the same manner in which the original appointment was made.
       (d) Functions of Commission.--
       (1) In general.--The functions of the Commission are--
       (A) to conduct an investigation that--
       (i) investigates relevant facts and circumstances relating 
     to the Deepwater Horizon incident of April 20, 2010, and the 
     associated oil spill thereafter, including any relevant 
     legislation, Executive order, regulation, plan, policy, 
     practice, or procedure; and
       (ii) may include relevant facts and circumstances relating 
     to--

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

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

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

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

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

       (B) Enforcement.--
       (i) In general.--In the case of contumacy or failure to 
     obey a subpoena issued under subparagraph (A), the United 
     States district court for the district in which the 
     subpoenaed person resides, is served, or may be found, or 
     where the subpoena is returnable, may issue an order 
     requiring the person to appear at any designated place to 
     testify or to produce documentary or other evidence.
       (ii) Judicial action for noncompliance.--Any failure to 
     obey the order of the court may be punished by the court as a 
     contempt of that court.
       (iii) Additional enforcement.--In the case of any failure 
     of any witness to comply with any subpoena or to testify when 
     summoned under authority of this subsection, the Commission 
     may, by majority vote, certify a statement of fact 
     constituting such failure to the appropriate United States 
     attorney, who may bring the matter before the grand jury for 
     action, under the same statutory authority and procedures as 
     if the United States attorney had received a certification 
     under sections 102 through 104 of the Revised Statutes (2 
     U.S.C. 192 through 194).
       (3) Contracting.--The Commission may, to such extent and in 
     such amounts as are provided in appropriation Acts, enter 
     into contracts to enable the Commission to discharge the 
     duties of the Commission under this section.
       (4) Information from federal agencies.--
       (A) In general.--The Commission may secure directly from 
     any Executive department, bureau, agency, board, commission, 
     office, independent establishment, or instrumentality of the 
     Federal Government, information, suggestions, estimates, and 
     statistics for the purposes of this section.
       (B) Cooperation.--Each Federal department, bureau, agency, 
     board, commission, office, independent establishment, or 
     instrumentality shall, to the extent authorized by law, 
     furnish information, suggestions, estimates, and statistics 
     directly to the Commission, upon request made by the 
     Chairperson, the Chairperson of any subcommittee created by a 
     majority of the Commission, or any member designated by a 
     majority of the Commission.
       (C) Receipt, handling, storage, and dissemination.--
     Information shall be received, handled, stored, and 
     disseminated only by members of the Commission and the staff 
     of the Commission in accordance with all applicable laws 
     (including regulations and Executive orders).
       (5) Assistance from federal agencies.--
       (A) General services administration.--The Administrator of 
     General Services shall provide to the Commission on a 
     reimbursable basis administrative support and other services 
     for the performance of the functions of the Commission.
       (B) Other departments and agencies.--In addition to the 
     assistance prescribed in subparagraph (A), departments and 
     agencies of the United States may provide to the Commission 
     such services, funds, facilities, staff, and other support 
     services as are determined to be advisable and authorized by 
     law.
       (6) Gifts.--The Commission may accept, use, and dispose of 
     gifts or donations of services or property, including travel, 
     for the direct advancement of the functions of the 
     Commission.
       (7) Postal services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as departments and agencies of the United States.
       (f) Public Meetings and Hearings.--
       (1) Public meetings and release of public versions of 
     reports.--The Commission shall--
       (A) hold public hearings and meetings, to the extent 
     appropriate; and
       (B) release public versions of the reports required under 
     paragraphs (1) and (2) of subsection (j).
       (2) Public hearings.--Any public hearings of the Commission 
     shall be conducted in a manner consistent with the protection 
     of proprietary or sensitive information provided to or 
     developed for or by the Commission as required by any 
     applicable law (including a regulation or Executive order).
       (g) Staff of Commission.--
       (1) In general.--
       (A) Appointment and compensation.--
       (i) In general.--The Chairperson, in consultation with the 
     Vice Chairperson and in accordance with rules agreed upon by 
     the Commission, may, without regard to the civil service laws 
     (including regulations), appoint and fix the compensation of 
     a staff director and such other personnel as are necessary to 
     enable the Commission to carry out the functions of the 
     Commission.
       (ii) Maximum rate of pay.--No rate of pay fixed under this 
     subparagraph may exceed the equivalent of that payable for a 
     position at level V of the Executive Schedule under section 
     5316 of title 5, United States Code.
       (B) Personnel as federal employees.--
       (i) In general.--The staff director and any personnel of 
     the Commission who are employees shall be considered to be 
     employees under section 2105 of title 5, United States Code, 
     for purposes of chapters 63, 81, 83, 84, 85, 87, 89, and 90 
     of that title.
       (ii) Members of commission.--Clause (i) shall not apply to 
     members of the Commission.
       (2) Detailees.--
       (A) In general.--An employee of the Federal Government may 
     be detailed to the Commission without reimbursement.
       (B) Civil service status.--The detail of the employee shall 
     be without interruption or loss of civil service status or 
     privilege.
       (3) Procurement of temporary and intermittent services.--
     The Chairperson of the Commission may procure temporary and 
     intermittent services in accordance with section 3109(b) of 
     title 5, United States Code, at rates for individuals that do 
     not exceed the daily equivalent of the annual rate of basic 
     pay prescribed for level V of the Executive Schedule under 
     section 5316 of that title.
       (h) Compensation and Travel Expenses.--
       (1) Compensation of members.--

[[Page 13871]]

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

     SEC. 110. CLASSIFICATION OF OFFSHORE SYSTEMS.

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

     SEC. 111. SAVINGS PROVISIONS.

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

     SEC. 112. BUDGETARY EFFECTS.

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

                    TITLE II--OIL SPILL COMPENSATION

                    Subtitle A--Oil Spill Liability

                   PART I--OIL POLLUTION ACT OF 1990

     SEC. 201. LIABILITY LIMITS.

       (a) Presidential Establishment of Limits.--Section 1004 of 
     the Oil Pollution Act of 1990 (33 U.S.C. 2704) is amended by 
     adding at the end the following:
       ``(e) Limits for Strict Liability.--
       ``(1) In general.--For the purpose of subsection (a)(3), 
     after a 60-day period of public notice and comment beginning 
     on the date of enactment of this subsection, and from time to 
     time thereafter, the President shall establish a set of 
     limits for strict liability for damages for incidents 
     occurring from offshore facilities (other than deepwater 
     ports) covered by Outer Continental Shelf leases issued after 
     the date of enactment of the Oil Spill Response Improvement 
     Act of 2010.
       ``(2) Requirements.--The limits for strict liability 
     established under paragraph (1) shall--
       ``(A) take into account the availability of insurance 
     products for offshore facilities; and
       ``(B) be otherwise based equally on and categorized by--
       ``(i) the water depth of the lease;
       ``(ii) the minimum projected well depth of the lease;
       ``(iii) the proximity of the lease to oil and gas emergency 
     response equipment and infrastructure;
       ``(iv) the likelihood of the offshore facility covered by 
     the lease to encounter broken sea ice;
       ``(v) the record and historical number of regulatory 
     violations of the leaseholder under the Outer Continental 
     Shelf Lands Act (43 U.S.C. 1331 et seq.) or the Federal Water 
     Pollution Control Act (33 U.S.C. 1251 et seq.) (or the 
     absence of such a record or violations);

[[Page 13872]]

       ``(vi) the estimated hydrocarbon reserves of the lease;
       ``(vii) the estimated well pressure, expressed in pounds 
     per square inch, of the reservoir associated with the lease;
       ``(viii) the availability and projected availability, 
     including through borrowing authority, of funds in the Oil 
     Spill Liability Trust Fund established by section 9509 of the 
     Internal Revenue Code of 1986;
       ``(ix) other available remedies under law;
       ``(x) the estimated economic value of nonenergy coastal 
     resources that may be impacted by a spill of national 
     significance involving the offshore facility covered by the 
     lease;
       ``(xi) whether the offshore facility covered by the lease 
     employs a subsea or surface blowout preventer stack; and
       ``(xii) the availability of industry payments under 
     subsection (f).
       ``(3) Public liability insurance.--In no case shall the 
     strict liability limits under this subsection for the 
     applicable offshore facility be less than the maximum amount 
     of public liability insurance that is broadly available for 
     related offshore environmental incidents.
       ``(f) Liability of Industry.--
       ``(1) In general.--If an incident on the Outer Continental 
     Shelf results in economic damages claims exceeding the 
     maximum amount for strict liability for economic damages to 
     be paid by the responsible party under subsection (a)(3), the 
     claims in excess of the maximum amount for strict liability 
     for economic damages under subsection (a)(3) shall be paid 
     initially, in an amount not to exceed a total of 
     $20,000,000,000, by all other entities operating offshore 
     facilities on the Outer Continental Shelf on the date of the 
     incident, as determined by the Secretary of the Interior, in 
     accordance with paragraph (2).
       ``(2) Proportional payment.--The amount of liability claims 
     to be paid under paragraph (1) by an entity described in that 
     paragraph shall be determined by the Secretary of the 
     Interior based on the proportion that--
       ``(A) the number of offshore facilities operated by the 
     entity on the Outer Continental Shelf; bears to
       ``(B) the total number of offshore facilities operated by 
     all entities on the Outer Continental Shelf.
       ``(3) Oil spill liability trust fund.--Economic damages 
     that exceed the amounts available under subsection (a)(3) and 
     paragraph (1) shall be paid from the Oil Spill Liability 
     Trust Fund and amounts made available to the Fund under part 
     II of the Oil Spill Response Improvement Act of 2010.''.
       (b) Conforming Amendments.--
       (1) Limit for offshore facilities.--Section 1004(a) of the 
     Oil Pollution Act of 1990 (33 U.S.C. 2704(a)) is amended--
       (A) in paragraph (2), by striking ``,,'' and inserting a 
     comma; and
       (B) by striking paragraph (3) and inserting the following:
       ``(3) for an offshore facility (except a deepwater port) 
     covered by an Outer Continental Shelf lease--
       ``(A) if the lease was issued prior to the date of 
     enactment of the Oil Spill Response Improvement Act of 2010, 
     the total of all removal costs plus $75,000,000; and
       ``(B) if the lease was issued on or after the date of 
     enactment of the Oil Spill Response Improvement Act of 2010, 
     the total of all removal costs plus the limit for strict 
     liability for damages for that offshore facility established 
     by the President under subsection (e); and''.
       (2) Exceptions.--Section 6002(b) of the Oil Pollution Act 
     of 1990 (33 U.S.C. 2752(b)) is amended in the first sentence 
     by inserting ``1004(f),'' after ``sections''.

     SEC. 202. ADVANCE PAYMENT.

       Section 1012 of the Oil Pollution Act of 1990 (33 U.S.C. 
     2712) is amended by adding at the end the following:
       ``(l) Advance Payments.--The President shall promulgate 
     regulations that allow advance payments to be made from the 
     Fund to States and political subdivisions of States for 
     actions taken to prepare for and mitigate substantial threats 
     from the discharge of oil.''.

                PART II--OIL SPILL LIABILITY TRUST FUND

     SEC. 211. RATE OF TAX FOR OIL SPILL LIABILITY TRUST FUND.

       (a) In General.--Section 4611 of the Internal Revenue Code 
     of 1986 (relating to the imposition of tax) is amended--
       (1) in subsection (c), by adding at the end the following 
     new paragraph:
       ``(3) Adjustments to temporary suspension of oil spill 
     liability trust fund financing rate.--In the case of any 
     calendar quarter in which the Secretary estimates that, as of 
     the close of the previous quarter, the unobligated balance in 
     the Oil Spill Liability Trust Fund is greater than 
     $10,000,000,000, the Oil Spill Liability Trust Fund financing 
     shall be 0 cents a barrel.''; and
       (2) by striking subsection (f).
       (b) Effective Date.--The amendments made by this section 
     shall apply on and after the first day of the first calendar 
     quarter after the date of enactment of this Act.
       (c) New Revenues to the Oil Spill Liability Trust Fund.--
     Notwithstanding section 3302 of title 31, United States Code, 
     the revenue resulting from any increase in the Oil Spill 
     Liability Trust Fund financing rate under this section or the 
     amendments made by this section shall--
       (1) be credited only as offsetting collections for the Oil 
     Spill Liability Trust Fund;
       (2) be available for expenditure only for purposes of the 
     Oil Spill Liability Trust Fund; and
       (3) remain available until expended.

     SEC. 212. LIMITATIONS ON EXPENDITURES AND BORROWING 
                   AUTHORITY.

       (a) Limitations on Expenditures.--Section 9509(c) of the 
     Internal Revenue Code of 1986 (relating to expenditures from 
     the Oil Spill Liability Trust Fund) is amended--
       (1) by striking paragraph (2);
       (2) by striking ``Expenditures'' in the subsection heading 
     and all that follows through ``Amounts in'' in paragraph (1) 
     and inserting ``Expenditures.--Amounts in''; and
       (3) by redesignating subparagraphs (A) through (F) as 
     paragraphs (1) through (6), respectively, and indenting 
     appropriately.
       (b) Authority To Borrow.--Section 9509(d) of the Internal 
     Revenue Code of 1986 (relating to authority to borrow from 
     the Oil Spill Liability Trust Fund) is amended--
       (1) in paragraph (2), by striking ``$1,000,000,000'' and 
     inserting ``$10,000,000,000''; and
       (2) in paragraph (3)--
       (A) by striking subparagraph (B); and
       (B) by redesignating subparagraph (C) as subparagraph (B).

                 Subtitle B--Federal Oil Spill Research

     SEC. 221. DEFINITIONS.

       In this subtitle:
       (1) Commandant.--The term ``Commandant'' means the 
     Commandant of the Coast Guard.
       (2) Program.--The term ``program'' means the program for 
     oil spill response established pursuant to section 230.

     SEC. 222. FEDERAL OIL SPILL RESEARCH.

       (a) In General.--Title VII of the Oil Pollution Act of 1990 
     is amended--
       (1) by inserting before section 7001 (33 U.S.C. 2761) the 
     following:

     ``SEC. 7000. DEFINITIONS.

       ``In this title:
       ``(1) Assessment.--The term `assessment' means the research 
     assessment on the status of the oil spill prevention and 
     response capabilities conducted under section 7004.
       ``(2) Committee.--The term `Committee' means the 
     Interagency Committee established under section 7001.
       ``(3) Plan.--The term `plan' means the Federal oil spill 
     research plan developed under section 7005.
       ``(4) Program.--The term `program' means the Federal oil 
     spill research program established under section 7003.'';
       (2) by redesignating section 7002 (33 U.S.C. 2762) as 
     section 7009;
       (3) in section 7001 (33 U.S.C. 2761), by striking 
     subsections (b) through (e) and inserting the following:
       ``(b) Regional Subcommittees.--
       ``(1) In general.--The Committee shall establish--
       ``(A) a regional subcommittee for each of the Gulf of 
     Mexico and Arctic regions of the United States; and
       ``(B) such other regional subcommittees as the Committee 
     determines to be necessary.
       ``(2) Coordination.--In accordance with the program, each 
     regional subcommittee established under this subsection shall 
     coordinate with the Committee and other relevant State, 
     national, and international bodies with expertise in the 
     region to research and develop technologies for use in the 
     prevention, detection, recovery, mitigation, and evaluation 
     of effects of incidents in the regional environment.''; and
       (4) by inserting after section 7001 (33 U.S.C. 2761) the 
     following:

     ``SEC. 7002. FUNCTIONS OF THE COMMITTEE.

       ``The Committee shall--
       ``(1) coordinate a comprehensive Federal oil spill research 
     and development program in accordance with section 7003 to 
     coordinate oil pollution research, technology development, 
     and demonstration among the Federal agencies, in cooperation 
     and coordination with industry, institutions of higher 
     education, research institutions, State and tribal 
     governments, and other relevant stakeholders;
       ``(2) conduct a research assessment on the status of the 
     oil spill prevention and response capabilities in accordance 
     with section 7004; and
       ``(3) develop a Federal oil spill research plan in 
     accordance with section 7005.

     ``SEC. 7003. FEDERAL OIL SPILL RESEARCH PROGRAM.

       ``(a) In General.--The Committee shall establish a program 
     for conducting oil pollution research, development, and 
     demonstration.
       ``(b) Program Elements.--The program established under 
     subsection (a) shall provide for research, development, and 
     demonstration technologies, practices, and procedures that 
     provide for effective and direct response to prevent, detect, 
     recover, or mitigate oil discharges, including--
       ``(1) new technologies to detect accidental or intentional 
     overboard oil discharges;
       ``(2) models and monitoring capabilities to predict the 
     transport and fate of oil, including trajectory and behavior 
     predictions due

[[Page 13873]]

     to location, weather patterns, hydrographic data, and water 
     conditions, including Arctic sea ice environments;
       ``(3) containment and well-control capabilities, including 
     drilling of relief wells, containment structures, and 
     injection technologies;
       ``(4) response capabilities, such as improved dispersants, 
     biological treatment methods, booms, oil skimmers, 
     containment vessels, and offshore and onshore storage 
     capacity;
       ``(5) research and training, in coordination with the 
     National Response Team, to improve the removal of oil 
     discharge quickly and effectively;
       ``(6) decision support systems for contingency planning and 
     response;
       ``(7) improvement of options for oily or oiled waste 
     dispersal;
       ``(8) technologies, methods, and standards for use in 
     protecting personnel and for volunteers that may participate 
     in incident responses, including--
       ``(A) training;
       ``(B) adequate supervision;
       ``(C) protective equipment;
       ``(D) maximum exposure limits; and
       ``(E) decontamination procedures; and
       ``(9) technologies and methods to prevent, detect, recover, 
     and mitigate oil discharges in polar environments.
       ``(c) Study of Environmental Effects of Response 
     Techniques.--Notwithstanding any other provision of law, the 
     Coast Guard shall conduct reasonable environmental studies of 
     oil discharge prevention or mitigation technologies, 
     including the use of small quantities of oil for testing of 
     in situ burning, chemical dispersants, and herding agents, 
     upon and within navigable waters of the United States, if the 
     Coast Guard, in consultation with the Committee, determines 
     that the information to be obtained cannot be adequately 
     obtained through a laboratory or simulated experiment.

     ``SEC. 7004. FEDERAL RESEARCH ASSESSMENT.

       ``Not later than 1 year after the date of enactment of Oil 
     Spill Response Improvement Act of 2010, the Committee shall 
     submit to Congress an assessment of the status of oil spill 
     prevention and response capabilities that--
       ``(1) identifies research programs conducted and 
     technologies developed by governments, institutions of higher 
     education, and industry;
       ``(2) assesses the status of knowledge on oil pollution 
     prevention, response, and mitigation technologies;
       ``(3) identifies regional oil pollution research needs and 
     priorities for a coordinated program of research at the 
     regional level developed in consultation with State, local, 
     and tribal governments;
       ``(4) assesses the status of spill response equipment and 
     determines areas in need of improvement, including quantity, 
     age, quality, effectiveness, or necessary technological 
     improvements;
       ``(5) assesses the status of real-time data available to 
     mariners, researchers, and responders, including weather, 
     hydrographic, and water condition data, and the impact of 
     incomplete and inaccessible data on preventing, detecting, or 
     mitigating oil discharges; and
       ``(6) is subject to a 90-day public comment period and 
     addresses suggestions received and incorporates public input 
     received, as appropriate.

     ``SEC. 7005. FEDERAL INTERAGENCY RESEARCH PLAN.

       ``(a) In General.--
       ``(1) Plan.--Not later than 60 days after the date on which 
     the President submits to Congress, pursuant to section 1105 
     of title 31, United States Code, a budget for fiscal year 
     2012, and for each fiscal year thereafter, the Committee 
     shall submit to Congress a plan that establishes the 
     priorities for Federal oil spill research and development.
       ``(2) Recommendations.--In the development of the plan, the 
     Committee shall consider recommendations by the National 
     Academy of Sciences and information from State, local, and 
     tribal governments.
       ``(b) Plan Requirements.--The plan shall--
       ``(1) make recommendations to improve technologies and 
     practices to prevent oil spills;
       ``(2) suggest changes to the program to improve the rates 
     of oil recovery and spill mitigation;
       ``(3) make recommendations to improve technologies, 
     practices, and procedures to provide for effective and direct 
     response to oil spills;
       ``(4) make recommendations to improve the quality of real-
     time data available to mariners, researchers, and responders; 
     and
       ``(5) be subject to a 90-day public comment period and 
     address suggestions received and incorporate public input 
     received, as appropriate.

     ``SEC. 7006. EXTRAMURAL GRANTS.

       ``(a) In General.--In carrying out the program, the 
     Committee shall--
       ``(1) award competitive grants to institutions of higher 
     education or other research institutions to carry out 
     projects--
       ``(A) to advance research and development; and
       ``(B) to demonstrate technologies for preventing, 
     detecting, or mitigating oil discharges that are relevant to 
     the goals and priorities of the plan; and
       ``(2) incorporate a competitive, merit-based process for 
     awarding grants that may be conducted jointly with other 
     participating agencies.
       ``(b) Regional Research Program.--
       ``(1) Definition of region.--In this subsection, the term 
     `region' means a Coast Guard district as described in part 3 
     of subchapter A of chapter I of title 33, Code of Federal 
     Regulations (1989).
       ``(2) Program.--Consistent with the program, the Committee 
     shall coordinate the provision of competitive grants to 
     institutions of higher education or other research 
     institutions (or groups of those institutions) for the 
     purpose of conducting a coordinated research program relating 
     to the aspects of oil pollution with respect to each region, 
     including research on such matters as--
       ``(A) prevention;
       ``(B) removal mitigation; and
       ``(C) the effects of discharged oil on regional 
     environments.
       ``(3) Publication.--
       ``(A) In general.--The Committee shall coordinate the 
     publication by the agencies represented on the Committee of a 
     solicitation for grants under this subsection.
       ``(B) Form and content.--The application for a grant under 
     this subsection shall be in such form and contain such 
     information as shall be required in the published 
     solicitation.
       ``(C) Review of applications.--Each application for a grant 
     under this subsection shall be--
       ``(i) reviewed by the Committee; and
       ``(ii) at the option of the Committee, included among 
     applications recommended by the Committee for approval in 
     accordance with paragraph (5).
       ``(D) Provision of grants.--
       ``(i) In general.--A granting agency represented on the 
     Committee shall provide the grants recommended by the 
     Committee unless the granting agency--

       ``(I) decides not to provide the grant due to budgetary or 
     other compelling considerations; and
       ``(II) publishes in the Federal Register the reasons for 
     such a determination.

       ``(ii) Funds for grants.--No grants may be provided by any 
     agency under this subsection from any funds authorized to 
     carry out this paragraph unless the grant award has first 
     been recommended by the Committee under subparagraph (C)(ii).
       ``(4) Eligible applicants.--
       ``(A) In general.--Any institution of higher education or 
     other research institution (or a group of those institutions) 
     may apply for a grant for the regional research program 
     established under this subsection.
       ``(B) Location of applicant.--An applicant described in 
     subparagraph (A) shall be located in the region, or in a 
     State a part of which is in the region, for which the project 
     covered by the grant application is proposed to be carried 
     out as part of the regional research program.
       ``(C) Group applications.--With respect to an application 
     described in subparagraph (A) from a group of institutions 
     referred to in that subparagraph, the 1 or more entities that 
     will carry out the substantial portion of the proposed 
     project covered by the grant shall be located in the region, 
     or in a State a part of which is in the region, for which the 
     project is proposed as part of the regional research program.
       ``(5) Recommendations.--
       ``(A) In general.--The Committee shall make recommendations 
     on grants in such a manner as to ensure an appropriate 
     balance within a region among the various aspects of oil 
     pollution research, including--
       ``(i) prevention;
       ``(ii) removal;
       ``(iii) mitigation; and
       ``(iv) the effects of discharged oil on regional 
     environments.
       ``(B) Additional criteria.--In addition to the requirements 
     described in subparagraph (A), the Committee shall make 
     recommendations for the approval of grants based on whether--
       ``(i) there are available to the applicant for use in 
     carrying out this paragraph demonstrated research resources;
       ``(ii) the applicant demonstrates the capability of making 
     a significant contribution to regional research needs; and
       ``(iii) the projects that the applicant proposes to carry 
     out under the grant--

       ``(I) are consistent with the plan under section 7005; and
       ``(II) would further the objectives of the program 
     established under section 7003.

       ``(6) Term of grants; review; cost-sharing.--A grant 
     provided under this subsection shall--
       ``(A) be for a period of up to 3 years;
       ``(B) be subject to annual review by the granting agency; 
     and
       ``(C) provide not more than 80 percent of the costs of the 
     research activities carried out in connection with the grant.
       ``(7) Prohibition on use of grant funds.--No funds made 
     available to carry out this subsection may be used for--
       ``(A) the acquisition of real property (including 
     buildings); or
       ``(B) the construction of any building.
       ``(8) Effect on other authority.--Nothing in this paragraph 
     alters or abridges the authority under existing law of any 
     Federal

[[Page 13874]]

     agency to provide grants, or enter into contracts or 
     cooperative agreements, using funds other than those 
     authorized in this Act for the purpose of carrying out this 
     subsection.
       ``(9) Funding.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     for each of fiscal years 2011 through 2015, not less than 
     $32,000,000 of amounts in the Fund shall be available to 
     carry out the regional research program under this 
     subsection, to be available in equal amounts for the regional 
     research program in each region.
       ``(B) Additional grants.--If the agencies represented on 
     the Committee determine that regional research needs exist 
     that cannot be addressed by the amount of funds made 
     available under subparagraph (A), the agencies may use 
     authority under subsection (a) to make additional grants to 
     meet those needs.

     ``SEC. 7007. ANNUAL REPORT.

       ``Concurrent with the submission of the Federal interagency 
     research plan pursuant to section 7005, the Committee shall 
     submit to Congress an annual report that describes the 
     activities and results of the program during the previous 
     fiscal year and described the objectives of the program for 
     the next fiscal year.

     ``SEC. 7008. FUNDING.

       ``(a) In General.--Of the amounts in the Fund for each 
     fiscal year, not more than $50,000,000 shall be available to 
     carry out this section (other than section 7006(b)) for the 
     fiscal year.
       ``(b) Appropriations.--All activities authorized under this 
     title, including under section 7006(b), shall be subject to 
     the availability of appropriations.''.

     SEC. 223. NATIONAL ACADEMY OF SCIENCE PARTICIPATION.

       The Commandant shall enter into an arrangement with the 
     National Academy of Sciences under which the Academy shall--
       (1) not later than 1 year after the date of enactment of 
     this Act, assess and evaluate the status of Federal oil spill 
     research and development as of the day before the date of 
     enactment of this Act;
       (2) submit to Congress and the Federal Oil Spill Research 
     Committee established under section 7002 of the Oil Pollution 
     Act of 1990 a report evaluating the conclusions and 
     recommendations from the Federal research assessment under 
     section 7004 of that Act to be used in the development of the 
     Federal oil spill research plan under section 7005 of that 
     Act; and
       (3) not later than 1 year after the Federal interagency 
     research plan is submitted to Congress under section 7005 of 
     that Act, evaluate, and report to Congress on, the plan.

     SEC. 224. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Use of Funds.--Section 1012(a)(5)(A) of the Oil 
     Pollution Act of 1990 (33 U.S.C. 2712(a)(5)(A)) is amended by 
     striking ``$25,000,000'' and inserting ``$50,000,000''.
       (b) Table of Contents.--The table of contents in section 2 
     of the Oil Pollution Act of 1990 (33 U.S.C. prec. 2701) is 
     amended by striking the items relating to sections 7001 and 
     7002 and inserting the following:

``Sec. 7000. Definitions.
``Sec. 7001. Oil pollution research and development program.
``Sec. 7002. Functions of the Committee.
``Sec. 7003. Federal oil spill research program.
``Sec. 7004. Federal research assessment.
``Sec. 7005. Federal interagency research plan.
``Sec. 7006. Extramural grants.
``Sec. 7007. Annual report.
``Sec. 7008. Funding.
``Sec. 7009. Submerged oil program.''.

     SEC. 225. OIL SPILL RESPONSE AUTHORITY.

       Notwithstanding any other provision of law, the Incident 
     Commander of the Coast Guard may authorize the use of 
     dispersants in response to a spill of oil from--
       (1) any facility or vessel located in, on, or under any of 
     the navigable waters of the United States; and
       (2) any facility of any kind that is subject to the 
     jurisdiction of the United States and that is located in, on, 
     or under any other waters.

     SEC. 226. MARITIME CENTER OF EXPERTISE.

       (a) In General.--The Commandant shall establish a Maritime 
     Center of Expertise for Maritime Oil Spill and Hazardous 
     Substance Release Response.
       (b) Duties.--The Center shall--
       (1) serve as the primary Federal facility for Coast Guard 
     personnel to obtain qualifications to perform the duties of a 
     regional response team cochair, a Federal on-scene 
     coordinator, or a Federal on-scene coordinator 
     representative;
       (2) train Federal, State, and local first responders in the 
     incident command system structure, maritime oil spill and 
     hazardous substance release response techniques and 
     strategies, and public affairs;
       (3) work with academic and private sector response training 
     centers to develop and standardize maritime oil spill and 
     hazardous substance release response training and techniques;
       (4) conduct research, development, testing, and 
     demonstration for maritime oil spill and hazardous substance 
     release response equipment, technologies, and techniques to 
     prevent or mitigate maritime oil discharges and hazardous 
     substance releases;
       (5) maintain not less than 2 incident management and 
     assistance teams, 1of which shall be ready to deploy anywhere 
     in the continental United States within 24 hours after an 
     incident or event;
       (6) conduct marine environmental response standardization 
     visits with Coast Guard Federal on-scene coordinators;
       (7) administer and coordinate Coast Guard participation in 
     the National Preparedness for Response Exercise Program; and
       (8) establish and maintain Coast Guard marine environmental 
     response doctrine.

     SEC. 227. NATIONAL STRIKE FORCE.

       (a) In General.--The Commandant shall maintain a National 
     Strike Force to facilitate preparedness for and response to 
     maritime oil spill and hazardous substance release incidents.
       (b) Composition.--The National Strike Force--
       (1) shall consist of--
       (A) a National Strike Force Coordination Center;
       (B) strike force teams, including--
       (i) 1 team for the Atlantic Ocean;
       (ii) 1 team for the Pacific Ocean; and
       (iii) 1 team for the Gulf of Mexico; and
       (C) a public information assist team; and
       (2) may include, on the direction of the Commandant, 1 or 
     more teams for the northwest Pacific Ocean and the Arctic 
     Ocean.
       (c) National Strike Force Coordination Center Duties.--The 
     National Strike Force Coordination Center shall--
       (1) provide support and standardization guidance to the 
     regional strike teams;
       (2) maintain a response resource inventory of maritime oil 
     spill and hazardous substance release response, marine 
     salvage, and marine firefighting equipment maintained by 
     certified oil spill response organizations as well as 
     equipment listed in a vessel or facility oil spill response 
     plan, as required by section 311(j) of the Federal Water 
     Pollution Control Act (33 U.S.C. 1321(j));
       (3) oversee the maintenance and adequacy of Coast Guard 
     environmental response equipment;
       (4) certify and inspect maritime oil spill response 
     organizations; and
       (5) maintain the National Area Contingency Plan library.
       (d) Strike Force Team Duties.--The Strike Force Response 
     Teams shall--
       (1) provide rapid response support in incident management, 
     site safety, contractor performance monitoring, resource 
     documentation, response strategies, hazard assessment, oil 
     spill dispersant, in situ burn and other technologies, 
     prefabrication of containment technology, operational 
     effectiveness monitoring, and high-capacity lightering and 
     offshore skimming capabilities;
       (2) train Coast Guard units in environmental pollution 
     response and incident command systems, test and evaluate 
     pollution response equipment, and operate as liaisons with 
     response agencies within the areas of responsibility of the 
     respective units;
       (3) maintain sufficient maritime oil spill and hazardous 
     substance release assets to ensure the protection of human 
     health and the environment in the event of an oil spill or 
     hazardous substance release, including the prefabrication of 
     oil spill containment equipment; and
       (4) maintain the capability to mobilize personnel and 
     equipment to respond to an oil spill or hazardous substance 
     release anywhere in the continental United States within 24 
     hours of such an event.
       (e) Public Information Assist Team Duties.--The Public 
     Information Assist Team shall maintain the capability--
       (1) to provide crisis communication during oil spills, 
     hazardous material releases, marine accidents, and other 
     disasters, including staffing and managing public affairs and 
     intergovernmental communication;
       (2) provide public information and communications training 
     to Federal, State, and local agencies and industry personnel; 
     and
       (3) maintain the capability to mobilize personnel and 
     equipment to respond to an oil spill or hazardous substance 
     release anywhere in the continental United States within 24 
     hours after such an event.

     SEC. 228. DISTRICT PREPAREDNESS AND RESPONSE TEAMS.

       The Commandant shall maintain district preparedness 
     response teams--
       (1) to maintain Coast Guard environmental response 
     equipment;
       (2) to administer area contingency plans;
       (3) to administer the National Preparedness for Response 
     Exercise Program;
       (4) to conduct responder incident command system training 
     and health and safety training;
       (5) to provide Federal on-scene coordinator technical 
     advice;
       (6) to coordinate district pollution response operations;
       (7) to support regional response team cochairs;
       (8) to coordinate district participation with the regional 
     interagency steering committee of the Federal Emergency 
     Management Agency; and
       (9) to conduct response public affairs and joint 
     information center training.

[[Page 13875]]



     SEC. 229. OIL SPILL RESPONSE ORGANIZATIONS.

       (a) Requirement.--Each maritime oil spill response 
     organization that is listed under an oil spill response plan 
     of a vessel or facility regulated by the Coast Guard, as 
     required by section 311(j) of the Federal Water Pollution 
     Control Act (33 U.S.C. 1321(j)) shall be--
       (1) certified by the Coast Guard; and
       (2) inspected at least once each year to ensure that the 
     organization has the capabilities to meet the requirements 
     delegated to the organization under applicable oil spill 
     response plans.
       (b) Certification Criteria and Requirements.--Not later 
     than 180 days after the date of enactment of this Act, the 
     Commandant shall develop criteria and requirements for 
     certifying and classifying maritime oil spill response 
     organizations.
       (c) Inventory of Maritime Oil Spill Response Equipment.--
     Each certified maritime oil spill response organization and 
     any facility regulated by the Coast Guard that is not using a 
     maritime oil spill response organization to meet the facility 
     oil spill response plan requirements of section 311(j) of the 
     Federal Water Pollution Control Act (33 U.S.C. 1321(j)) 
     shall--
       (1) maintain a current list of the maritime oil spill 
     response equipment of the organization or facility; and
       (2) submit a copy of that list to the National Strike Force 
     Coordination Center.
       (d) Decreased Capacity Reports.--If a maritime oil spill 
     response organization experiences a decrease in the maritime 
     oil spill response assets of the organization, the 
     organization shall report the decrease to the National Strike 
     Force Coordination Center and the Captain of the Port in 
     which that organization operates.

     SEC. 230. PROGRAM FOR OIL SPILL AND HAZARDOUS SUBSTANCE 
                   RELEASE RESPONSE.

       (a) Requirement to Establish Program.--The Commandant shall 
     establish a program for oil spill and hazardous substance 
     release response, within the Maritime Center of Expertise for 
     Oil Spill Response, to conduct research, development, 
     testing, and demonstration for oil spill and hazardous 
     substance release response equipment, technologies, and 
     techniques to prevent or mitigate oil discharges and 
     hazardous substance releases.
       (b) Program Elements.--The program under subsection (a) 
     shall include--
       (1) research, development, testing, and demonstration of 
     new or improved methods (including the use of dispersants and 
     biological treatment methods) for the containment, recovery, 
     removal, and disposal of oil and hazardous substances;
       (2) assistance for--
       (A) the development of improved designs for vessel 
     operations (including vessel operations in Arctic waters) and 
     facilities that are regulated by the Coast Guard; and
       (B) improved operational practices;
       (3) research and training, in consultation with the 
     National Response Team, to improve the ability of private 
     industry and the Federal Government to respond to an oil 
     discharge or a hazardous substance release;
       (4) a list of oil spill and hazardous substance 
     containment, recovery, removal, and disposal technology that 
     is approved for use by the Commandant and is made publicly 
     available, in such manner as is determined to be appropriate 
     by the Commandant; and
       (5) a process for the Federal Government, State and local 
     governments, private industry, academic institutions, and 
     nongovernmental organizations to submit systems, equipment, 
     and technologies for testing and evaluation.
       (c) Grants for Oil Spill Response.--The Commandant shall 
     have the authority to make grants to or enter into 
     cooperative agreements with academic institutions to conduct 
     research and development for oil spill response equipment, 
     technology, and techniques.
       (d) Coordination.--The Commandant shall carry out the 
     program in coordination with the Interagency Coordinating 
     Committee on Oil Pollution Research established pursuant to 
     section 7001(a) of the Oil Pollution Act of 1990 (33 U.S.C. 
     2761(a)).
       (e) Funding.--The Commandant shall use such sums as are 
     necessary to carry out this section for fiscal years 2010 
     through 2015 from funds appropriated to the research, 
     development, and testing program account of the Coast Guard 
     for those years.

     SEC. 230A. OIL AND HAZARDOUS SUBSTANCE LIABILITY.

       Section 311 of the Federal Water Pollution Control Act (33 
     U.S.C. 1321) is amended--
       (1) in subsection (c)(2)(B)--
       (A) in clause (i), by striking ``and'' at the end;
       (B) in clause (ii), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(iii) immediately deploy cleanup and mitigation assets 
     owned by the Federal Government, or provided by private 
     individuals or entities or foreign countries, to the location 
     of discharge.''; and
       (2) in subsection (d)(2), by adding at the end the 
     following:
       ``(N) Establishment of a clear, accountable chain of 
     command throughout the jurisdictions impacted by the 
     discharge.
       ``(O) Establishment of a system and procedures that ensure 
     coordination with, and prompt response to, State and local 
     officials.''.

                    Subtitle C--Oil and Gas Leasing

     SEC. 231. REVENUE SHARING FROM OUTER CONTINENTAL SHELF AREAS 
                   IN CERTAIN COASTAL STATES.

       Section 18 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1344) is amended by adding at the end the following:
       ``(i) Revenue Sharing From Outer Continental Shelf Areas in 
     Certain Coastal States.--
       ``(1) Definitions.--In this subsection through subsection 
     (j):
       ``(A) Coastal political subdivision.--The term `coastal 
     political subdivision' of a coastal State means a county-
     equivalent subdivision of a coastal State all or part of 
     which--
       ``(i) lies within the coastal zone (as defined in section 
     304 of the Coastal Zone Management Act of 1972 (16 U.S.C. 
     1453)); and
       ``(ii) the closest point of which is not more than 300 
     statute miles from the geographic center of any leased tract.
       ``(B) Coastal state.--The term `coastal State' means a 
     State with a coastal seaward boundary within 300 statute 
     miles distance of the geographic center of a leased tract in 
     an outer Continental Shelf planning area that--
       ``(i) as of January 1, 2000, had no oil or natural gas 
     production; and
       ``(ii) is not a Gulf producing State (as defined in section 
     102 of the Gulf of Mexico Energy Security Act of 2006 (43 
     U.S.C. 1331 note; Public Law 109-432)).
       ``(C) Distance.--The terms `distance' and `distances' mean 
     minimum great circle distance and distances, respectively.
       ``(D) Leased tract.--The term `leased tract' means a tract 
     leased under this Act for the purpose of drilling for, 
     developing, and producing oil or natural gas resources.
       ``(E) Outer continental shelf area.--The term `outer 
     Continental Shelf area' means--
       ``(i) any area withdrawn from disposition by leasing by the 
     `Memorandum on Withdrawal of Certain Areas of the United 
     States Outer Continental Shelf from Leasing Disposition', 
     from 34 Weekly Comp. Pres. Doc. 1111, dated June 12, 1998; or
       ``(ii) any area of the outer Continental Shelf as to which 
     Congress has denied the use of appropriated funds or other 
     means for preleasing, leasing, or related activities.
       ``(2) Post leasing revenues.--If the Governor or the 
     Legislature of a coastal State requests the Secretary to 
     allow leasing in an outer Continental Shelf area and the 
     Secretary allows the leasing, in addition to any bonus bids, 
     the coastal State shall, without further appropriation or 
     action, receive, from leasing of the area, 37.5 percent of--
       ``(A) any lease rental payments;
       ``(B) any lease royalty payments;
       ``(C) any royalty proceeds from a sale of royalties taken 
     in kind by the Secretary; and
       ``(D) any other revenues from a bidding system under 
     section 8.
       ``(3) Allocation among coastal political subdivisions of 
     states.--
       ``(A) In general.--The Secretary shall pay 20 percent of 
     the allocable share of each coastal State, as determined 
     under this subsection, directly to certain coastal political 
     subdivisions of the coastal State.
       ``(B) Allocation.--
       ``(i) In general.--For each leased tract used to calculate 
     the allocation of a coastal State, the Secretary shall pay 
     the coastal political subdivisions within 300 miles of the 
     geographic center of the leased tract based on the relative 
     distance of such coastal political subdivisions from the 
     leased tract in accordance with this subparagraph.
       ``(ii) Distances.--For each coastal political subdivision 
     described in clause (i), the Secretary shall determine the 
     distance between the point on the coastal political 
     subdivision coastline closest to the geographic center of the 
     leased tract and the geographic center of the tract.
       ``(iii) Payments.--The Secretary shall divide and allocate 
     the qualified outer Continental Shelf revenues derived from 
     the leased tract among coastal political subdivisions 
     described in clause (i) in amounts that are inversely 
     proportional to the applicable distances determined under 
     clause (ii).
       ``(4) Conservation royalty.--After making distributions 
     under paragraphs (1) and (2) and section 31, the Secretary 
     shall, without further appropriation or action, distribute a 
     conservation royalty equal to 12.5 percent of Federal royalty 
     revenues derived from an area leased under this section from 
     all areas leased under this section for any year, into the 
     land and water conservation fund established under section 2 
     of the Land and Water Conservation Fund Act of 1965 (16 
     U.S.C. 460l-5) to provide financial assistance to States 
     under section 6 of that Act (16 U.S.C. 460l-8).
       ``(5) Deficit reduction.--
       ``(A) In general.--After making distributions in accordance 
     with paragraphs (1) and (2) and in accordance with section 
     31, the Secretary shall, without further appropriation or 
     action, distribute an amount equal to 50 percent of Federal 
     royalty revenues derived from all areas leased under this 
     section for any year, into direct Federal deficit reduction.
       ``(B) Budgetary treatment.--Any amounts distributed into 
     direct Federal deficit reduction under this paragraph shall 
     not

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     be included for purposes determining budget levels under 
     section 201 of S. Con. Res. 21 (110th Congress).''.

     SEC. 232. REVENUE SHARING FROM AREAS IN ALASKA ADJACENT ZONE.

       Section 18 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1344) (as amended by section 231) is amended by adding 
     at the end the following:
       ``(j) Revenue Sharing From Areas in Alaska Adjacent Zone.--
       ``(1) In general.--Except as provided in paragraph (2), 
     effective beginning on the date that is 5 years after the 
     date of enactment of this subsection, revenues from 
     production that derives from an area in the Alaska Adjacent 
     Zone shall be distributed in the same proportion and for the 
     same uses as provided in subsection (i).
       ``(2) Allocation among regional corporations.--
       ``(A) In general.--The Secretary shall pay 33 percent of 
     any allocable share of the State of Alaska, as determined 
     under this section, directly to certain Regional Corporations 
     established under section 7(a) of the Alaska Native Claims 
     Settlement Act (43 U.S.C. 1606(a)).
       ``(B) Allocation.--
       ``(i) In general.--For each leased tract used to calculate 
     the allocation of the State of Alaska, the Secretary shall 
     pay the Regional Corporations, after determining those Native 
     villages within the region of the Regional Corporation which 
     are within 300 miles of the geographic center of the leased 
     tract based on the relative distance of such villages from 
     the leased tract, in accordance with this paragraph.
       ``(ii) Distances.--For each such village, the Secretary 
     shall determine the distance between the point in the village 
     closest to the geographic center of the leased tract and the 
     geographic center of the tract.
       ``(iii) Payments.--The Secretary shall divide and allocate 
     the qualified outer Continental Shelf revenues derived from 
     the leased tract among the qualifying Regional Corporations 
     in amounts that are inversely proportional to the distances 
     of all of the Native villages within each qualifying region.
       ``(iv) Revenues.--All revenues received by each Regional 
     Corporation shall be--

       ``(I) treated by the Regional Corporation as revenue 
     subject to the distribution requirements of section 
     7(i)(1)(A) of the Alaska Native Claims Settlement Act (43 
     U.S.C. 1606(i)(1)(A)); and
       ``(II) divided annually by the Regional Corporation among 
     all 12 Regional Corporations in accordance with section 7(i) 
     of that Act.

       ``(v) Further distribution.--A Regional Corporation 
     receiving revenues under clause (iv)(II) shall further 
     distribute 50 percent of the revenues received in accordance 
     with section 7(j) of the Alaska Native Claims Settlement Act 
     (43 U.S.C. 1606(j)).''.

     SEC. 233. ACCELERATED REVENUE SHARING TO PROMOTE COASTAL 
                   RESILIENCY AMONG GULF PRODUCING STATES.

       Section 105 of the Gulf of Mexico Energy Security Act of 
     2006 (43 U.S.C. 1331 note; Public Law 109-432) is amended--
       (1) by striking subsection (b) and inserting the following:
       ``(b) Allocation Among Gulf Producing States for Fiscal 
     Years 2010 and Thereafter.--
       ``(1) In general.--Subject to the provisions of this 
     subsection, for fiscal year 2010 and each fiscal year 
     thereafter, the amount made available under subsection 
     (a)(2)(A) from a covered lease described in paragraph (2) 
     shall be allocated to each Gulf producing State in amounts 
     that are inversely proportional to the respective distances 
     between the point on the coastline of each Gulf producing 
     State that is closest to the geographic center of each 
     historical lease site and the geographic center of the 
     historical lease site, as determined by the Secretary.
       ``(2) Covered lease.--A covered lease referred to in 
     paragraph (1) means a lease entered into for--
       ``(A) the 2002-2007 planning area;
       ``(B) the 181 Area; or
       ``(C) the 180 South Area.
       ``(3) Minimum allocation.--The amount allocated to a Gulf 
     producing State each fiscal year under paragraph (1) shall be 
     at least 10 percent of the amounts available under subsection 
     (a)(2)(A).
       ``(4) Historical lease sites.--
       ``(A) In general.--Subject to subparagraph (B), for 
     purposes of this subsection, the historical lease sites in 
     the 2002-2007 planning area shall include all leases entered 
     into by the Secretary for an area in the Gulf of Mexico 
     during the period beginning on October 1, 1982 (or an earlier 
     date if practicable, as determined by the Secretary), and 
     ending on December 31, 2015.
       ``(B) Adjustment.--Effective January 1, 2022, and every 5 
     years thereafter, the ending date described in subparagraph 
     (A) shall be extended for an additional 5 calendar years.
       ``(5) Payments to coastal political subdivisions.--
       ``(A) In general.--The Secretary shall pay 20 percent of 
     the allocable share of each Gulf producing State, as 
     determined under paragraphs (1) and (3), to the coastal 
     political subdivisions of the Gulf producing State.
       ``(B) Allocation.--The amount paid by the Secretary to 
     coastal political subdivisions shall be allocated to each 
     coastal political subdivision in accordance with 
     subparagraphs (B), (C), and (E) of section 31(b)(4) of the 
     Outer Continental Shelf Lands Act (43 U.S.C. 1356a(b)(4)).''; 
     and
       (2) by striking subsection (f).

     SEC. 234. COASTAL IMPACT ASSISTANCE PROGRAM AMENDMENTS.

       Section 31(c) of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1356a(c)) is amended by adding at the end the 
     following:
       ``(5) Application requirements; availability of funding.--
     On approval of a State plan under this section, the Secretary 
     shall--
       ``(A) immediately disburse payments allocated under this 
     section to the State or political subdivision; and
       ``(B) other than requiring notification to the Secretary of 
     the projects being carried out under the State plan, not 
     subject a State or political subdivision to any additional 
     requirements, including application requirements, to receive 
     payments under this section.''.

     SEC. 235. PRODUCTION OF OIL FROM CERTAIN ARCTIC OFFSHORE 
                   LEASES.

       Section 5 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1334) is amended by adding at the end the following:
       ``(k) Oil Transportation in Arctic Waters.--The Secretary 
     shall--
       ``(1) require that oil produced from Federal leases in 
     Arctic waters in the Chukchi Sea planning area, Beaufort Sea 
     planning area, or Hope Basin planning area be transported by 
     pipeline to the Trans-Alaska Pipeline System; and
       ``(2) provide for, and issue appropriate permits for, the 
     transportation of oil from Federal leases in Arctic waters in 
     preproduction phases (including exploration) by means other 
     than pipeline.''.

     SEC. 236. USE OF STIMULUS FUNDS TO OFFSET SPENDING.

       (a) In General.--The unobligated balance of each amount 
     appropriated or made available under the American Recovery 
     and Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 
     115) (other than under title X of division A of that Act) is 
     rescinded, on a pro rata basis, by an aggregate amount that 
     equals the amounts necessary to offset any net increase in 
     spending or foregone revenues resulting from this subtitle 
     and the amendments made by this subtitle.
       (b) Report.--The Director of the Office of Management and 
     Budget shall submit to each congressional committee the 
     amounts rescinded under subsection (a) that are within the 
     jurisdiction of the committee.

 TITLE III--GUIDANCE ON MORATORIUM ON OUTER CONTINENTAL SHELF DRILLING

     SEC. 301. LIMITATION OF MORATORIUM ON CERTAIN PERMITTING AND 
                   DRILLING ACTIVITIES.

       (a) In General.--The moratorium set forth in the decision 
     memorandum of the Secretary of the Interior entitled 
     ``Decision memorandum regarding the suspension of certain 
     offshore permitting and drilling activities on the Outer 
     Continental Shelf'' and dated July 12, 2010, and any 
     suspension of operations issued in connection with the 
     moratorium, shall not apply to an applicant for a permit to 
     drill if the Secretary determines that the applicant--
       (1) has complied with the notice entitled ``National Notice 
     to Lessees and Operators of Federal Oil and Gas Leases, Outer 
     Continental Shelf (OCS)'' dated June 8, 2010 (NTL No. 2010-
     N05) and the notice entitled ``National Notice to Lessees and 
     Operators of Federal Oil and Gas Leases, Outer Continental 
     Shelf (OCS)'' dated June 18, 2010 (NTL No. 2010-N06); and
       (2) has completed all required safety inspections.
       (b) Determination on Permit.--Not later than 30 days after 
     the date on which the Secretary makes a determination that an 
     applicant has complied with paragraphs (1) and (2) of 
     subsection (a), the Secretary shall make a determination on 
     whether to issue the permit.
       (c) No Suspension of Consideration.--No Federal entity 
     shall suspend the active consideration of, or preparatory 
     work for, permits required to resume or advance activities 
     suspended in connection with the moratorium.

     SEC. 302. DEEPWATER HORIZON INCIDENT.

       Not later than 60 days after the date of enactment of this 
     Act, the Secretary shall develop, and expeditiously begin 
     implementation of, a plan to ensure that onshore oil and 
     natural gas development on Federal land would provide full 
     energy resource compensation for offshore oil and natural gas 
     resources not being developed and Federal revenues not being 
     generated for the benefit of the United States Treasury 
     during such time as any offshore moratorium is in place in 
     response to the incident involving the mobile offshore 
     drilling unit Deepwater Horizon.

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