Innovation in Offshore Leasing Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Innovation in Offshore Leasing 
Act''.

SEC. 2. INTERNET-BASED OFFSHORE OIL AND GAS LEASE SALES.

    (a) Authorization.--Section 8 of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1337) is amended by adding at the end the following:
    ``(q) Internet-Based Oil and Gas Lease Sales.--
            ``(1) In general.--In order to modernize the Nation's 
        offshore leasing program to ensure the best return to the 
        Federal taxpayer, reduce fraud, and ensure a fair and 
        competitive leasing process, the Secretary may conduct lease 
        sales under this section through Internet-based, sealed-bidding 
        methods.
            ``(2) Sale requirements.--Sales conducted under paragraph 
        (1) shall ensure--
                    ``(A) a publicly and freely accessible digital 
                delivery of the bid reading process, such as live 
                Internet streaming, and an option for bidders to submit 
                bids electronically;
                    ``(B) a bidder verification process that discloses 
                to bidders, by no later than 5 p.m. Central Time of the 
                day before each sale, a list of all bids submitted 
                (including the person submitting each bid) on each 
                lease tract without disclosing bid amounts;
                    ``(C) the ability for a bidder to correct a 
                possible misreading of a submitted bid;
                    ``(D) a designee from within the Office of the 
                Solicitor of the Department of the Interior to act as 
                an independent, third-party observer who will be 
                present during the bid reading process to prevent 
                wrongdoing, independently certify the bidding process, 
                and maintain transparency;
                    ``(E) data security measures to ensure bidder data 
                is kept secure; and
                    ``(F) a participant survey soliciting voluntary 
                feedback from bidders on the bidding process.
            ``(3) Transparency in sale-day statistics.--
                    ``(A) Requirement.--The Secretary shall publicly 
                disclose statistical data regarding each lease sale 
                under this subsection, on the day the sale is executed.
                    ``(B) Included data.--Among data disclosed, the 
                Secretary shall include--
                            ``(i) the total value of high bids;
                            ``(ii) the number of tracts offered;
                            ``(iii) the number of acres offered;
                            ``(iv) the number of tracts receiving bids;
                            ``(v) the number of acres receiving bids;
                            ``(vi) the total number of bids;
                            ``(vii) the average number of bids per 
                        tract;
                            ``(viii) the total number of bidders 
                        participating;
                            ``(ix) bidding statistics by water depth;
                            ``(x) the name of the entity that submitted 
                        each bid, the amount of the bid, and the tract 
                        for which the bid was submitted;
                            ``(xi) of tracts receiving bids, the number 
                        of bids per tract by water depth;
                            ``(xii) the tract receiving the greatest 
                        number of bids;
                            ``(xiii) the tract receiving the highest 
                        bid; and
                            ``(xiv) any other statistical data that may 
                        be disclosed in accordance with this Act.
                    ``(C) Data transparency.--The Secretary shall 
                ensure all data regarding lease sales under this 
                subsection is publicly available and easily accessible, 
                free of charge, on the Internet, including for download 
                and aggregation in machine-readable format.''.
    (b) Modernizing Leasing Through Collaboration.--
            (1) In general.--Before conducting the first Internet-based 
        lease sale under the amendment made by this section, the 
        Secretary of the Interior shall issue a request for information 
        from each company present for bidding at the ten most recent 
        oil and gas lease sales conducted by the Secretary under the 
        Outer Continental Shelf Lands Act, in order to provide the 
        bidding public sufficient opportunity to share innovative 
        ideas, methods, and concerns regarding Internet-based leasing.
            (2) Integration of information.--The Secretary shall 
        review, evaluate, and integrate suggestions and concerns 
        collected under paragraph (1) as the Secretary works to 
        modernize the offshore leasing process through Internet-based 
        leasing options.
            (3) User workshop.--The Secretary shall conduct not less 
        than one user workshop with viable bidders prior to conducting 
        an Internet-based lease sale to provide the bidding public with 
        an opportunity to beta test any prototype of an Internet-based 
        leasing platform.
    (c) Deadline for Gulf of Mexico Lease Sale.--Not later than 18 
months after the date of the enactment of this Act, the Secretary of 
the Interior shall conduct at least one Internet-based lease sale under 
the amendment made by subsection (a) for leasable acreage in the Gulf 
of Mexico.
    (d) Evaluating Internet-Based Offshore Leasing.--Not later than 90 
days after the third Internet-based lease sale conducted under the 
amendment made by subsection (a), the Secretary of the Interior shall 
analyze all such Internet-based lease sales and transmit to Congress a 
thorough analysis of the sales. The analysis shall include--
            (1) estimates of increases or decreases in such lease 
        sales, compared to sales conducted by non-Internet-based 
        bidding, in--
                    (A) the number of bidders;
                    (B) the average amount of bids;
                    (C) the highest bid; and
                    (D) the lowest bid;
            (2) an estimate of the total cost or savings to the 
        Department of the Interior as a result of such sales, compared 
        to sales conducted by non-Internet-based bidding;
            (3) voluntary and anonymous feedback from persons 
        participating in such sales, on the Internet-based leasing 
        process and potential areas for improvement in such sales; and
            (4) an evaluation of the demonstrated or expected 
        effectiveness of different structures for lease sales that may 
        provide an opportunity to better maximize bidder participation, 
        ensure the highest return to the Federal taxpayers, minimize 
        opportunities for fraud or collusion, and ensure the security 
        and integrity of the leasing process.

            Passed the House of Representatives September 6, 2016.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.

Summary: Innovation in Offshore Leasing Act This bill amends the Outer Continental Shelf Lands Act to authorize the Bureau of Ocean Energy Management (BOEM)to conduct offshore oil and gas lease sales through Internet-based bidding methods. Before conducting any Internet-based sale, BOEM is required to gather information from each company present for bidding at the 10 most recent oil and gas lease sales conducted under the Outer Continental Shelf Lands Act. The information is designed to provide the bidding public sufficient opportunity to share ideas, methods, and concerns regarding Internet-based leasing. All Internet-based sales must meet certain requirements and BOEM shall publicly disclose statistical data regarding any sale on the day the sale is executed. Additionally, BOEM must conduct at least one Internet-based lease sale in the Gulf of Mexico Outer Continental Shelf Region within 18 months. BOEM must also provide a report to Congress within 90 days after it conducts a third Internet-based lease sale.