II
Calendar No. 492
111th CONGRESS
2d Session
S. 3516
[Report No. 111–236]
IN THE SENATE OF THE UNITED STATES
June 21, 2010
Mr. Bingaman (for himself, Ms. Murkowski, Mr. Dorgan, and Ms. Stabenow) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources
July 28, 2010
Reported by Mr. Bingaman, with amendments
Omit the part struck through and insert the part printed in italic
A BILL
To amend the Outer Continental Shelf Lands Act to reform the management of energy and mineral resources on the Outer Continental Shelf, and for other purposes.
Short title; table of contents
Short title
This Act may be cited
as the Outer Continental Shelf Reform
Act of 2010
.
Table of Contents
The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.
Sec. 4. National policy for the outer Continental Shelf.
Sec. 5. Structural reform of outer Continental Shelf program management.
Sec. 6. Safety, environmental, and financial reform of the Outer Continental Shelf Lands Act.
Sec. 7. Reform of other laws.
Sec. 8. Savings provisions.
Sec. 9. Budgetary effects.
Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.
Sec. 4. National policy for the outer Continental Shelf.
Sec. 5. Structural reform of outer Continental Shelf program management.
Sec. 6. Safety, environmental, and financial reform of the Outer Continental Shelf Lands Act.
Sec. 7. Study on the effect of the moratoria on new deepwater drilling in the Gulf of Mexico on employment and small businesses.
Sec. 8. Reform of other law.
Sec. 9. Safer oil and gas production.
Sec. 10. National Commission on Outer Continental Shelf Oil Spill Prevention.
Sec. 11. Classification of offshore systems.
Sec. 12. Savings provisions.
Sec. 13. Budgetary effects.
Purposes
The purposes of this Act are—
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;
to provide independent development and enforcement of safety and environmental laws (including regulations) governing—
energy development and mineral extraction activities on the outer Continental Shelf; and
related offshore activities; and
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.
Definitions
In this Act:
Department
The term Department means the Department of the Interior.
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).
Secretary
The term Secretary means the Secretary of the Interior.
National policy for the outer Continental Shelf
Section 3 of the Outer Continental Shelf Lands Act (43 U.S.C. 1332) is amended—
by striking paragraph (3) and inserting the following:
the outer Continental Shelf is a vital national resource reserve held by the Federal Government for the public, which should be managed in a manner that recognizes—
the need of the United States for domestic sources of energy, food, minerals, and other resources;
the potential impacts of development of those resources on the marine and coastal environment and on human health and safety; and
the long-term economic value to the United States of the balanced and orderly management of those resources that safeguards the environment and respects the multiple values and uses of the outer Continental Shelf;
;
by striking paragraph (3) and inserting the following:
the outer Continental Shelf is a vital national resource reserve held by the Federal Government for the public, which should be managed in a manner that—
recognizes the need of the United States for domestic sources of energy, food, minerals, and other resources;
minimizes the potential impacts of development of those resources on the marine and coastal environment and on human health and safety; and
acknowledges the long-term economic value to the United States of the balanced and orderly management of those resources that safeguards the environment and respects the multiple values and uses of the outer Continental Shelf;
;
in paragraph (4)(C), by striking the period at the end and inserting a semicolon;
in paragraph (5),
by striking ; and
and inserting a semicolon;
by redesignating paragraph (6) as paragraph (7);
by inserting after paragraph (5) the following:
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
in paragraph (7) (as so redesignated)—
by striking
should be
and inserting shall be
; and
by adding
best available
after using
.
Structural reform of outer Continental Shelf program management
In general
The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) is amended by adding to the end the following:
Structural reform of outer Continental Shelf program management
Leasing, permitting, and regulation bureaus
Establishment of bureaus
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.
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.
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.
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.
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.
Royalty and revenue office
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.).
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.
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.
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.
OCS Safety and Environmental Advisory Board
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.
Membership
Size
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.
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.
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.
Chair
The Secretary shall appoint the Chair for the Board.
Meetings
The Board shall—
meet not less than 3 times per year; and
at least once per year, shall host a public forum to review and assess the overall safety and environmental performance of outer Continental Shelf energy and mineral resource activities.
Reports
Reports of the Board shall—
be submitted to Congress; and
made available to the public in an electronically accessible form.
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.
Special personnel authorities
Direct hiring authority for critical personnel
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.
Requirements
In exercising the authority granted under subparagraph (A), the Secretary shall ensure that any action taken by the Secretary—
is consistent with the merit principles of chapter 23 of title 5, United States Code; and
complies with the public notice requirements of section 3327 of title 5, United States Code.
Critical pay authority
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—
the positions—
require expertise of an extremely high level in a scientific or technical field; and
any of the organizational units established in this section would not successfully accomplish an important mission without such an individual; and
exercise of the authority is necessary to recruit an individual exceptionally well qualified for the position.
Limitations
The authority granted under subparagraph (A) shall be subject to the following conditions:
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.
The term of an appointment under subparagraph (A) may not exceed 4 years.
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.
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.
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.
Notification
Each year, the Secretary shall submit to Congress a notification that lists each individual appointed under this paragraph.
Reemployment of civilian retirees
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.
Limitations
An annuitant hired with full salary and annuities under the authority granted by subparagraph (A)—
shall not be considered an employee for purposes of subchapter III of chapter 83 and chapter 84 of title 5, United States Code;
may not elect to have retirement contributions withheld from the pay of the annuitant;
may not use any employment under this paragraph as a basis for a supplemental or recomputed annuity; and
may not participate in the Thrift Savings Plan under subchapter III of chapter 84 of title 5, United States Code.
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.
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—
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;
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
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.
.
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.
.
Safety, environmental, and financial reform of the Outer Continental Shelf Lands Act
Definitions
Section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 1331) is amended by adding at the end the following:
Safety case
The term safety case means a
body of
evidence
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.
.
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—
by striking
The Secretary may at any time
and inserting The Secretary
shall
; and
by inserting
after provide for
the following: operational safety, the
protection of the marine and coastal environment,
.
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:
Review of bond and surety amounts
Not later than May 1, 2011, and every 5 years thereafter, the Secretary shall—
review the
minimum bond
amounts
financial responsibility requirements for mineral leases under
subsection (a)(11); and
set any bonds, surety, or other evidence
of financial responsibility required in amounts
adequate 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.).
Periodic fiscal reviews and reports
Royalty rates
In general
Not later than 1 year after the date of enactment of this
subsection and every 3 4 years thereafter, the
Secretary shall carry out a review of, and prepare a report that
describes—
the royalty and rental rates included in new offshore oil and gas leases and the rationale for the rates;
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
whether, based on the review, the Secretary intends to modify the royalty or rental rates.
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.
Comparative review of fiscal system
In general
Not later than
2
years 1
year after the date of enactment of this subsection and every
5 4 years thereafter, the
Secretary in consultation with the Secretary of the Treasury, shall carry out a
comprehensive review of all components of the Federal offshore oil and gas
fiscal system, including requirements for bonus bids, rental rates, royalties,
oil and gas taxes, income taxes
and other
significant financial elements, and oil and gas fees.
Inclusions
The review shall include—
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
an assessment of the overall offshore oil and gas fiscal system in the United States, as compared to foreign countries.
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.
Report
The Secretary shall prepare a report that contains—
the contents and results of the review carried out under this paragraph for the period covered by the report; and
any recommendations of the Secretary and the Secretary of the Treasury based on the contents and results of the review.
Combined report
The Secretary may combine the reports required by paragraphs (1) and (2)(D) into 1 report.
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—
the Committee on Energy and Natural Resources of the Senate;
the Committee on Finance of the Senate;
the Committee on Natural Resources of the House of Representatives; and
the Committee on Ways and Means of the House of Representatives.
.
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:
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—
is not meeting due diligence, safety, or environmental requirements on other leases; or
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
has failed to meet the obligations of the responsible party under that Act to provide compensation for covered removal costs and damages.
.
Exploration plans
Section 11 of the Outer Continental Shelf Lands Act (43 U.S.C. 1340) is amended—
in subsection (c)—
in the fourth
sentence of paragraph (1), by striking within thirty days of its
submission
and inserting by the deadline described in paragraph
(5)
;
by striking paragraph (3) and inserting the following:
Minimum requirements
In general
An exploration plan submitted under this subsection shall include, in such degree of detail as the Secretary by regulation may require—
a complete description and schedule of the exploration activities to be undertaken;
a description of the equipment to be used for the exploration activities, including—
a description of the drilling unit;
a statement of the design and condition of major safety-related pieces of equipment;
a description of any new technology to be used; and
a statement demonstrating that the equipment to be used meets the best available technology requirements under section 21(b);
a map showing the location of each well to be drilled;
a scenario for the
potential blowout of the well involving the highest
potential expected volume of liquid
hydrocarbons; and
a complete description of a response plan to control the blowout and manage the accompanying discharge of hydrocarbons, including—
the technology and timeline for regaining control of the well; and
the strategy, organization, and
resources necessary to be used to avoid harm to the
environment and human health from hydrocarbons; and
any other information determined to be relevant by the Secretary.
Deepwater wells
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.
Technology requirements
A deepwater operations plan under this subparagraph shall be based on the best available technology to ensure safety in carrying out the exploration activity and the blowout response plan.
Systems analysis required
The Secretary shall not approve a deepwater operations plan under this subparagraph unless the plan includes a technical systems analysis of—
the safety of the proposed exploration activity;
the blowout prevention technology; and
the blowout and spill response plans.
; and
by adding at the end the following:
Deadline for approval
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—
the date that is 90 days after the date on which the plan or the modifications to the plan are submitted; or
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.
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.
;
by resdesignating subsections (e) through (h) as subsections (f) through (i), respectively; and
by striking subsection (d) and inserting the following:
Drilling permits
In general
The Secretary shall, by regulation, require that any lessee operating under an approved exploration plan obtain a permit—
before the lessee drills a well in accordance with the plan; and
before the lessee significantly modifies the well design originally approved by the Secretary.
Engineering review required
The Secretary may not grant any drilling permit
until the date of completion of a full
engineering review of
the well system,
including a
system by not less than 2 agency engineers, including a written
determination that—
critical safety systems (including blowout prevention) will use best available technology; and
blowout prevention systems will include redundancy and remote triggering capability.
Modification review required
The Secretary may not approve any modification of
a permit without a determination, after an additional engineering review, that
the modification will not
degrade compromise the safety of the
well system previously approved.
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—
is to be used by the operator during all well operations; and
includes—
a description of the expertise and experience level of crew members who will be present on the rig; and
designation of at least 2 environmental and safety managers that—
are employees of the operator;
would be present on the rig at all times; and
have overall responsibility for the safety and environmental management of the well system and spill response plan; and
not later than May 1, 2012, requires that all employees on the rig meet the training and experience requirements under section 21(b)(4).
Disapproval of exploration plan
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—
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;
the threat of harm or damage would not disappear or decrease to an acceptable extent within a reasonable period of time; and
the advantages of disapproving the exploration plan outweigh the advantages of exploration.
Compensation
If an exploration plan is disapproved under this subsection, the provisions of subparagraphs (B) and (C) of section 25(h)(2) shall apply to the lease and the plan or any modified plan, except that the reference in section 25(h)(2)(C) to a development and production plan shall be considered to be a reference to an exploration plan.
.
Outer Continental Shelf leasing program
Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 1344) is amended—
in subsection (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
;
in paragraph (1),
by striking considers
and inserting gives equal
consideration to
; and
in paragraph (3),
by striking , to the maximum extent practicable,
;
in subsection (b)—
in paragraph (3),
by striking and
at the end;
in paragraph (4),
by striking the period at the end and inserting ; and
;
and
by adding at the end the following:
provide technical review and oversight of the exploration plan and a systems review of the safety of the well design and other operational decisions;
conduct regular and thorough safety reviews and inspections, and;
enforce all applicable laws (including regulations).
;
in the second
sentence of subsection (d)(2), by inserting , the head of an interested
Federal agency,
after Attorney General
;
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
by adding at the end the following:
Research and development
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.
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.
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.
.
Environmental studies
Section 20 of the Outer Continental Shelf Lands Act (43 U.S.C. 1346) is amended—
by redesignating subsections (a) through (f) as subsections (b) through (g), respectively;
by inserting before subsection (b) (as so redesignated) the following:
Comprehensive and independent studies
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.
Scope of research
The programs under this subsection shall include—
the gathering of baseline data in areas before energy or mineral resource development activities occur;
ecosystem research and monitoring studies to support integrated resource management decisions; and
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.
Use of data
The Secretary shall ensure that information from the studies carried out under this section—
informs the management of energy and mineral resources on the outer Continental Shelf including any areas under consideration for oil and gas leasing; and
contributes to a broader coordination of energy and mineral resource development activities within the context of best available science.
Independence
The Secretary shall create a program within the appropriate bureau established under section 32 that shall—
be programmatically separate and distinct from the leasing program;
carry out the environmental studies under this section;
conduct additional environmental studies relevant to the sound management of energy and mineral resources on the outer Continental Shelf;
provide for external scientific review of studies under this section, including through appropriate arrangements with the National Academy of Sciences; and
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
in the first
sentence of subsection (b)(1) (as so redesignated), by inserting every 3
years
after shall conduct
.
Safety research and regulations
Section 21 of the Outer Continental Shelf Lands Act (43 U.S.C. 1347) is amended—
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,
;
by striking subsection (b) and inserting the following:
Best available technologies and practices
In general
In exercising respective responsibilities under this Act, the Secretary, and the Secretary of the Department in which the Coast Guard is operating, shall require, on all new drilling and production operations and, to the maximum extent practicable, on existing operations, the use of the best available and safest technologies and practices, if the failure of equipment would have a significant effect on safety, health, or the environment.
Identification of best available technologies
Not later than May 1, 2011, and not later than every 3 years thereafter, the Secretary shall identify and publish an updated list of best available technologies for key areas of well design and operation, including blowout prevention and blowout and oil spill response.
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.
Employee training
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.
Requirements
The training standards under this paragraph shall require that employers of workers described in subparagraph (A)—
establish training programs approved by the Secretary; and
demonstrate that employees involved in the offshore operations meet standards that demonstrate the aptitude of the employees in critical technical skills.
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.
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
by adding at the end the following:
Technology research and risk assessment program
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.
Specific areas of focus
The program under this subsection shall include research, development, and other activities related to—
risk assessment, using all available data from safety and compliance records both within the United States and internationally;
analysis of industry trends in technology, investment, and interest in frontier areas;
analysis of incidents investigated under section 22;
reviews of best available technologies, including technologies associated with pipelines, blowout preventer mechanisms, casing, well design, and other associated infrastructure related to offshore energy development;
oil spill response and mitigation;
risks associated with human factors; and
renewable energy operations.
Information sharing activities
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.
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.
Reports
The program under this subsection shall provide to the Secretary, each Bureau Director under section 32, and the public quarterly reports that address—
developments in each of the areas under paragraph (2); and
any accidents that have occurred in the past quarter; and
appropriate responses to the accidents.
Independence
The Secretary shall create a program within the appropriate bureau established under section 32 that shall—
be programmatically separate and distinct from the leasing program;
carry out the studies, analyses, and other activities under this subsection;
provide for external scientific review of studies under this section, including through appropriate arrangements with the National Academy of Sciences; and
make available to the public studies conducted and data gathered under this section.
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.
.
Enforcement
Section 22 of the Outer Continental Shelf Lands Act (43 U.S.C. 1348) is amended—
in subsection (d)—
in paragraph (1)—
in
the first sentence, by inserting , each loss of well control, blowout,
activation of the blowout preventer, and other accident that presented a
serious risk to human or environmental safety,
after
fire
; and
in
the last sentence, by inserting as a condition of the lease
before the period at the end;
in the last sentence of paragraph (2), by inserting “as a condition of lease” before the period at the end;
in subsection (e)—
by striking
(e) The
and inserting the following:
Review of alleged safety violations
In general
The
; and
by adding at the end the following:
Investigation
The Secretary shall investigate any allegation from any employee of the lessee or any subcontractor of the lessee made under paragraph (1).
; and
by adding at the end of the section the following:
Independent investigation
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.
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.
Information on causes and corrective actions
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.
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.
Inspection fee
In general
TheTo 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).
Establishment
The Secretary shall establish, by rule, inspection fees—
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
using a schedule that reflects the differences in complexity among the classes of facilities to be inspected.
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).
Availability of fees
Notwithstanding section 3302 of title 31, United States Code, all amounts collected by the Secretary under this section—
shall be credited as offsetting collections;
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;
shall be available only to the extent provided for in advance in an appropriations Act; and
shall remain available until expended.
Annual reports
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.
Contents
Each report shall include, for the fiscal year covered by the report, the following:
A statement of the amounts deposited into the Fund.
A description of the expenditures made from the Fund for the fiscal year, including the purpose of the expenditures.
Recommendations for additional authorities to fulfill the purpose of the Fund.
A statement of the balance remaining in the Fund at the end of the fiscal year.
.
Remedies and penalties
Section 24 of the Outer Continental Shelf Lands Act (43 U.S.C. 1350) is amended—
by striking subsection (b) and inserting the following:
Civil penalty
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.
Administration
The Secretary may assess, collect, and compromise any penalty under paragraph (1).
Hearing
No penalty shall be assessed under this subsection until the person charged with a violation has been given the opportunity for a hearing.
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.
;
in subsection (c)—
in the first
sentence, by striking $100,000
and inserting
$10,000,000
; and
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
in subsection
(d), by inserting , or with reckless disregard,
after
knowingly and willfully
.
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).
Conflicts of interest
Section 29 of the Outer Continental Shelf Lands Act (43 U.S.C. 1355) is amended to read as follows:
Conflicts of interest
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—
within 2 years after his employment with the Department has ceased—
knowingly act as agent or attorney for, or otherwise represent, any other person (except the United States) in any formal or informal appearance before;
with the intent to influence, make any oral or written communication on behalf of any other person (except the United States) to; or
knowingly aid, advise, or assist in—
representing any other person (except the United States in any formal or informal appearance before; or
making, with the intent to influence, any oral or written communication on behalf of any other person (except the United States) to,
within 1 year after his employment with the Department has ceased—
knowingly act as agent or attorney for, or otherwise represent, any other person (except the United States) in any formal or informal appearance before;
with the intent to influence, make any oral or written communication on behalf of any other person (except the United States) to; or
knowingly aid , advise, or assist in —
representing any other person (except the United States in any formal or informal appearance before, or
making, with the intent to influence, any oral or written communication on behalf of any other person (except the United States) to,
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—
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
in which the employee participated personally and substantially as an officer or employee.
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—
the officer or employee or the spouse, minor child, or general partner of the officer or employee has a financial interest;
any organization in which the officer or employee is serving as an officer, director, trustee, general partner, or employee has a financial interest;
any person or organization with whom the officer or employee is negotiating or has any arrangement concerning prospective employment has a financial interest; or
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.
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).
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.
Penalties
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.
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.
.
Study on the effect of the moratoria on new deepwater drilling in the Gulf of Mexico on employment and small businesses
In general
The Secretary of Energy, acting through the Energy Information Administration, shall publish a monthly study evaluating the effect of the moratoria resulting from the blowout and explosion of the mobile offshore drilling unit Deepwater Horizon that occurred on April 20, 2010, and resulting hydrocarbon releases into the environment, on employment and small businesses.
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—
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;
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;
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
any recommendations to mitigate possible negative effects on small business concerns resulting from the moratoria.
Reform of other
laws
Coordinated mapping
initiative
Section 388(b) of the Energy Policy Act of 2005 (43 U.S.C. 1337 note; Public Law 109–58) is amended by adding at the end the following:
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.
.
Dedicated funding for outer continental shelf research activities
Section 999H(d) of the Energy Policy Act of 2005 (42 U.S.C. 16378(d)) is amended by striking paragraph (4) and inserting the following:
25 percent shall be used for research activities required under sections 20 and 21 of the Outer Continental Shelf Lands Act (43 U.S.C. 1346, 1347).
.
Safer oil and gas production
Program authority
Section 999A of the Energy Policy Act of 2005 (42 U.S.C. 16371) is amended—
in subsection (a)—
by striking
ultra-deepwater
and inserting deepwater
;
and
by inserting well
control and accident prevention,
after safe
operations,
;
in subsection (b)—
by striking paragraph (1) and inserting the following:
Deepwater architecture, well control and accident prevention, and deepwater technology, including drilling to deep formations in waters greater than 500 feet.
; and
by striking paragraph (4) and inserting the following:
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
in subsection (d)—
in the subsection
heading, by striking National Energy Technology Laboratory
and
inserting Office of
Fossil Energy of the Department
; and
by striking
National Energy Technology Laboratory
and inserting
Office of Fossil Energy of the Department
.
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—
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
;
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.
;
in subsection (c)(1)—
by redesignating subparagraphs (D) and (E) as subparagraphs (E) and (F), respectively; and
by inserting after subparagraph (C) the following:
projects will be selected on a competitive, peer-reviewed basis.
; and
in subsection (d)—
in paragraph (6), by
striking ultra-deepwater
and inserting
deepwater
;
in paragraph (7)—
in subparagraph (A)—
in the subparagraph
heading, by striking Ultra-deepwater
and inserting
Deepwater
;
by striking
development and
and inserting research, development,
and
; and
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.
;
in subparagraph (B), by
striking and environmental mitigation
and inserting use
of non-toxic materials, drilling safety, and environmental mitigation and
accident prevention
;
in subparagraph (C), by
inserting safety and accident prevention, well control and systems
integrity,
after including
; and
by adding at the end the following:
Safety and accident prevention technology research and development
Awards from allocations under section 999H(d)(4) shall be expended on areas including—
development of improved cementing and casing technologies;
best management practices for cementing, casing, and other well control activities and technologies;
development of integrity and stewardship guidelines for—
well-plugging and abandonment;
development of wellbore sealant technologies; and
improvement and standardization of blowout prevention devices.
; and
by adding at the end the following:
Study; report
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—
whether the benefits provided through each award under this subsection during calendar year 2011 have been maximized; and
the new areas of research that could be carried out to meet the overall objectives of the program.
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).
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.
;
in subsection (e)—
in paragraph (2)—
in the second sentence of
subparagraph (A), by inserting to the Secretary for review
after
submit
; and
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
by adding at the end the following:
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.
;
in subsection (i)—
in the subsection
heading, by striking United States Geological Survey
and
inserting Department of
the Interior
; and
by striking ,
through the United States Geological Survey,
; and
in the first sentence of
subsection (j), by striking National Energy Technology
Laboratory
and inserting Office of Fossil Energy of the
Department
.
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
.
Program Advisory Committee
Section 999D of the Energy Policy Act of 2005 (42 U.S.C. 16374) is amended to read as follows:
Program Advisory Committee
Establishment
Not
later than 270 days after the date of enactment of the Safe and Responsible
Energy Production Improvement Act of 2010, the Secretary shall establish an
advisory committee to be known as the Program Advisory Committee
(referred to in this section as the Advisory Committee
).
Membership
In general
The Advisory Committee shall be composed of members appointed by the Secretary, including—
individuals with extensive research experience or operational knowledge of hydrocarbon exploration and production;
individuals broadly representative of the affected interests in hydrocarbon production, including interests in environmental protection and safety operations;
representatives of Federal agencies, including the Environmental Protection Agency and the Department of the Interior;
State regulatory agency representatives; and
other individuals, as determined by the Secretary.
Limitations
In general
The Advisory Committee shall not include individuals who are board members, officers, or employees of the program consortium.
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.
Subcommittees
The Advisory Committee may establish subcommittees for separate research programs carried out under this subtitle.
Duties
The Advisory Committee shall—
advise the Secretary on the development and implementation of programs under this subtitle; and
carry out section 999B(e)(2)(B).
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.
Prohibition
The Advisory Committee shall not make recommendations on funding awards to particular consortia or other entities, or for specific projects.
.
Definitions
Section 999G of the Energy Policy Act of 2005 (42 U.S.C. 16377) is amended—
in paragraph (1), by
striking 200 but less than 1,500 meters
and inserting 500
feet
;
by striking paragraphs (8), (9), and (10);
by redesignating paragraphs (2) through (7) and (11) as paragraphs (4) through (9) and (10), respectively;
by inserting after paragraph (1) the following:
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.
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
in paragraph (10) (as
redesignated by paragraph (3)), by striking in an economically
inaccessible geological formation, including resources of small
producers
.
Funding
Section 999H of the Energy Policy Act of 2005 (42 U.S.C. 16378) is amended—
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
;
in subsection (d)—
in paragraph (1), by
striking 35 percent
and inserting 21.5
percent
;
in paragraph (2), by
striking 32.5 percent
and inserting 21
percent
;
in paragraph (4)—
by striking 25
percent
and inserting 30 percent
;
by striking
complementary research
and inserting safety technology
research and development
; and
by striking
contract management,
and all that follows through the period at
the end and inserting and contract management.
; and
by adding at the end the following:
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).
.
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
.
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
.
National Commission on Outer Continental Shelf Oil Spill Prevention
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
).
Purposes
The purposes of the Commission are—
to examine and report on the facts and causes relating to the Deepwater Horizon explosion and oil spill of 2010;
to ascertain, evaluate, and report on the evidence developed by all relevant governmental agencies regarding the facts and circumstances surrounding the incident;
to build upon the investigations of other entities, and avoid unnecessary duplication, by reviewing the findings, conclusions, and recommendations of—
the Committees on Energy and Natural Resources and Commerce, Science, and Transportation of the Senate;
the Committee on Natural Resources and the Subcommittee on Oversight and Investigations of the House of Representatives; and
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;
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
to investigate and report to the President and Congress findings, conclusions, and recommendations for corrective measures that may be taken to prevent similar incidents.
Composition of Commission
Members
The Commission shall be composed of 10 members, of whom—
1 member shall be appointed by the President, who shall serve as Chairperson of the Commission;
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;
2 members shall be appointed by the senior member of the leadership of the Senate from the Democratic Party;
2 members shall be appointed by the senior member of the leadership of the House of Representatives from the Republican Party;
2 members shall be appointed by the senior member of the leadership of the Senate from the Republican Party; and
2 members shall be appointed by the senior member of the leadership of the House of Representatives from the Democratic Party.
Qualifications; initial meeting
Political party affiliation
Not more than 5 members of the Commission shall be from the same political party.
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.
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—
engineering;
environmental compliance;
health and safety law (particularly oil spill legislation);
oil spill insurance policies;
public administration;
oil and gas exploration and production;
environmental cleanup; and
fisheries and wildlife management.
Deadline for appointment
All members of the Commission shall be appointed on or before September 15, 2010.
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.
Quorum; vacancies
In general
After the initial meeting of the Commission, the Commission shall meet upon the call of the Chairperson or a majority of the members of the Commission.
Quorum
6 members of the Commission shall constitute a quorum.
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.
Functions of Commission
In general
The functions of the Commission are—
to conduct an investigation that—
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
may include relevant facts and circumstances relating to—
permitting agencies;
environmental and worker safety law enforcement agencies;
national energy requirements;
deepwater and ultradeepwater oil and gas exploration and development;
regulatory specifications, testing, and requirements for offshore oil and gas well explosion prevention;
regulatory specifications, testing, and requirements offshore oil and gas well casing and cementing regulation;
the role of congressional oversight and resource allocation; and
other areas of the public and private sectors determined to be relevant to the Deepwater Horizon incident by the Commission;
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
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.
Relationship to inquiry by congressional committees
In investigating facts and circumstances relating to energy policy, the Commission shall—
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
after completion of that review, pursue any appropriate area of inquiry, if the Commission determines that—
those committees have not investigated that area;
the investigation of that area by those committees has not been completed; or
new information not reviewed by the committees has become available with respect to that area.
Powers of Commission
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—
hold such hearings, meet and act at such times and places, take such testimony, receive such evidence, and administer such oaths; and
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;
Subpoenas
Issuance
In general
A subpoena may be issued under this paragraph only—
by the agreement of the Chairperson and the Vice Chairperson; or
by the affirmative vote of 6 members of the Commission.
Signature
Subject to clause (i), a subpoena issued under this paragraph—
shall bear the signature of the Chairperson or any member designated by a majority of the Commission;
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.
Enforcement
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.
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.
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).
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.
Information from Federal agencies
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.
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.
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).
Assistance from Federal agencies
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.
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.
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.
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.
Public meetings and hearings
Public meetings and release of public versions of reports
The Commission shall—
hold public hearings and meetings, to the extent appropriate; and
release public versions of the reports required under paragraphs (1) and (2) of subsection (j).
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).
Staff of Commission
In general
Appointment and compensation
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.
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.
Personnel as Federal employees
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.
Members of commission
Clause (i) shall not apply to members of the Commission.
Detailees
In general
An employee of the Federal Government may be detailed to the Commission without reimbursement.
Civil service status
The detail of the employee shall be without interruption or loss of civil service status or privilege.
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.
Compensation and travel expenses
Compensation of members
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.
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.
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.
Security clearances for Commission members and staff
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.
Proprietary information
No person shall be provided with access to proprietary information under this section without the appropriate security clearances.
Reports of Commission; adjournment
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.
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.
Temporary adjournment
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).
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—
providing testimony to committees of Congress concerning reports of the Commission; and
disseminating the final report submitted under paragraph (2).
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—
the Commission shall reconvene in accordance with subsection (c)(3); and
the authority of the Commission under this section shall be of full force and effect.
Funding
Authorization of appropriations
There are authorized to be appropriated to carry out this section—
$10,000,000 for the first fiscal year in which the Commission convenes; and
$3,000,000 for each fiscal year thereafter in which the Commission convenes.
Availability
Amounts made available to carry out this section shall be available—
for transfer to the Commission for use in carrying out the functions and activities of the Commission under this section; and
until the date on which the Commission adjourns for the fiscal year under subsection (j)(3).
Nonapplicability of Federal Advisory Committee Act
The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the Commission.
Classification of offshore systems
Regulations
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—
to protect the health and safety of affiliated workers; and
to prevent environmental degradation.
Third-party verification
The standards established by regulation under paragraph (1) shall be verified through certification and classification by independent third parties that—
have been preapproved by both the Secretary and the Secretary of the Department in which the Coast Guard is operating; and
have no financial conflict of interest in conducting the duties of the third parties.
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—
mobile offshore drilling units;
fixed and floating drilling or production facilities;
drilling systems, including risers and blowout preventers; and
any other equipment dedicated to the safety systems relating to offshore extraction and production of oil and gas.
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—
the system is of an age or type where meeting such requirements is impractical; and
the system poses an acceptably low level of risk to the environment and to human safety.
Authority of Coast Guard
Nothing in this section preempts or interferes with the authority of the Coast Guard.
Savings provisions
Existing law
All regulations, rules, standards, determinations, contracts and agreements, memoranda of understanding, certifications, authorizations, appointments, delegations, results and findings of investigations, or any other actions issued, made, or taken by, or pursuant to or under, the authority of any law (including regulations) that resulted in the assignment of functions or activities to the Secretary, the Director of the Minerals Management Service (including by delegation from the Secretary), or the Department (as related to the implementation of the purposes referenced in this Act) that were in effect on the date of enactment of this Act shall continue in full force and effect after the date of enactment of this Act unless previously scheduled to expire or until otherwise modified or rescinded by this Act or any other Act.
Effect on other authorities
This Act does not amend or alter the provisions of other applicable laws, unless otherwise noted.
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.
July 28, 2010
Reported with amendments