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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2231 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 2231

   To amend the Outer Continental Shelf Lands Act to increase energy 
exploration and production on the Outer Continental Shelf, provide for 
    equitable revenue sharing for all coastal States, implement the 
   reorganization of the functions of the former Minerals Management 
  Service into distinct and separate agencies, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              June 4, 2013

 Mr. Hastings of Washington (for himself, Mr. Lamborn, Mr. Cramer, Mr. 
  Flores, Mr. Duncan of South Carolina, Mr. LaMalfa, and Mr. Wittman) 
 introduced the following bill; which was referred to the Committee on 
                           Natural Resources

_______________________________________________________________________

                                 A BILL

 
   To amend the Outer Continental Shelf Lands Act to increase energy 
exploration and production on the Outer Continental Shelf, provide for 
    equitable revenue sharing for all coastal States, implement the 
   reorganization of the functions of the former Minerals Management 
  Service into distinct and separate agencies, and for other purposes.

    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 ``Offshore Energy and Jobs Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
        TITLE I--OUTER CONTINENTAL SHELF LEASING PROGRAM REFORMS

Sec. 101. Outer Continental Shelf leasing program reforms.
Sec. 102. Domestic oil and natural gas production goal.
Sec. 103. Development and submittal of new 5-year oil and gas leasing 
                            program.
TITLE II--ENHANCING THE 2012-2017 FIVE-YEAR OUTER CONTINENTAL SHELF OIL 
                        AND GAS LEASING PROGRAM

Sec. 201. Requirement to conduct proposed oil and gas Lease Sale 220 on 
                            the Outer Continental Shelf offshore 
                            Virginia.
Sec. 202. South Carolina lease sale.
Sec. 203. Southern California existing infrastructure lease sale.
Sec. 204. Environmental impact statement requirement.
Sec. 205. National defense.
Sec. 206. Eastern Gulf of Mexico not included.
    TITLE III--EQUITABLE SHARING OF OUTER CONTINENTAL SHELF REVENUES

Sec. 301. Disposition of Outer Continental Shelf revenues to coastal 
                            States.
    TITLE IV--REORGANIZATION OF MINERALS MANAGEMENT AGENCIES OF THE 
                       DEPARTMENT OF THE INTERIOR

Sec. 401. Establishment of Under Secretary for Energy, Lands, and 
                            Minerals and Assistant Secretary of Ocean 
                            Energy and Safety.
Sec. 402. Bureau of Ocean Energy.
Sec. 403. Ocean Energy Safety Service.
Sec. 404. Office of Natural Resources revenue.
Sec. 405. Ethics and drug testing.
Sec. 406. Abolishment of Minerals Management Service.
Sec. 407. Conforming amendments to Executive Schedule pay rates.
Sec. 408. Outer Continental Shelf Energy Safety Advisory Board.
Sec. 409. Outer Continental Shelf inspection fees.
                   TITLE V--UNITED STATES TERRITORIES

Sec. 501. Application of Outer Continental Shelf Lands Act with respect 
                            to territories of the United States.

        TITLE I--OUTER CONTINENTAL SHELF LEASING PROGRAM REFORMS

SEC. 101. OUTER CONTINENTAL SHELF LEASING PROGRAM REFORMS.

    Section 18(a) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1344(a)) is amended by adding at the end the following:
            ``(5)(A) In each oil and gas leasing program under this 
        section, the Secretary shall make available for leasing and 
        conduct lease sales including at least 50 percent of the 
        available unleased acreage within each outer Continental Shelf 
        planning area considered to have the largest undiscovered, 
        technically recoverable oil and gas resources (on a total btu 
        basis) based upon the most recent national geologic assessment 
        of the outer Continental Shelf, with an emphasis on offering 
        the most geologically prospective parts of the planning area.
            ``(B) The Secretary shall include in each proposed oil and 
        gas leasing program under this section any State subdivision of 
        an outer Continental Shelf planning area that the Governor of 
        the State that represents that subdivision requests be made 
        available for leasing. The Secretary may not remove such a 
        subdivision from the program until publication of the final 
        program.
            ``(C) In this paragraph the term `available unleased 
        acreage' means that portion of the outer Continental Shelf that 
        is not under lease at the time of a proposed lease sale, and 
        that has not otherwise been made unavailable for leasing by 
        law.
            ``(6)(A) In the 5-year oil and gas leasing program, the 
        Secretary shall make available for leasing any outer 
        Continental Shelf planning areas that--
                    ``(i) are estimated to contain more than 
                2,500,000,000 barrels of oil; or
                    ``(ii) are estimated to contain more than 
                7,500,000,000,000 cubic feet of natural gas.
            ``(B) To determine the planning areas described in 
        subparagraph (A), the Secretary shall use the document entitled 
        `Minerals Management Service Assessment of Undiscovered 
        Technically Recoverable Oil and Gas Resources of the Nation's 
        Outer Continental Shelf, 2006'.''.

SEC. 102. DOMESTIC OIL AND NATURAL GAS PRODUCTION GOAL.

    Section 18(b) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1344(b)) is amended to read as follows:
    ``(b) Domestic Oil and Natural Gas Production Goal.---
            ``(1) In general.--In developing a 5-year oil and gas 
        leasing program, and subject to paragraph (2), the Secretary 
        shall determine a domestic strategic production goal for the 
        development of oil and natural gas as a result of that program. 
        Such goal shall be--
                    ``(A) the best estimate of the possible increase in 
                domestic production of oil and natural gas from the 
                outer Continental Shelf;
                    ``(B) focused on meeting domestic demand for oil 
                and natural gas and reducing the dependence of the 
                United States on foreign energy; and
                    ``(C) focused on the production increases achieved 
                by the leasing program at the end of the 15-year period 
                beginning on the effective date of the program.
            ``(2) Program goal.--For purposes of the 5-year oil and gas 
        leasing program, the production goal referred to in paragraph 
        (1) shall be an increase by 2032 of--
                    ``(A) no less than 3,000,000 barrels in the amount 
                of oil produced per day; and
                    ``(B) no less than 10,000,000,000 cubic feet in the 
                amount of natural gas produced per day.
            ``(3) Reporting.--The Secretary shall report annually, 
        beginning at the end of the 5-year period for which the program 
        applies, to the Committee on Natural Resources of the House of 
        Representatives and the Committee on Energy and Natural 
        Resources of the Senate on the progress of the program in 
        meeting the production goal. The Secretary shall identify in 
        the report projections for production and any problems with 
        leasing, permitting, or production that will prevent meeting 
        the goal.''.

SEC. 103. DEVELOPMENT AND SUBMITTAL OF NEW 5-YEAR OIL AND GAS LEASING 
              PROGRAM.

    (a) In General.--The Secretary of the Interior shall--
            (1) by not later than July 15, 2014, publish and submit to 
        Congress a new proposed oil and gas leasing program under 
        section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 
        1344) for the 5-year period beginning on such date and ending 
        July 15, 2020; and
            (2) by not later than July 15, 2015, approve a final oil 
        and gas leasing program under such section for such period.
    (b) Consideration of All Areas.--In preparing such program the 
Secretary shall include consideration of areas of the Continental Shelf 
off the coasts of all States (as such term is defined in section 2 of 
that Act, as amended by this Act), that are subject to leasing under 
this Act.
    (c) Technical Correction.--Section 18(d)(3) of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1344(d)(3)) is amended by 
striking ``or after eighteen months following the date of enactment of 
this section, whichever first occurs,''.

TITLE II--ENHANCING THE 2012-2017 FIVE-YEAR OUTER CONTINENTAL SHELF OIL 
                        AND GAS LEASING PROGRAM

SEC. 201. REQUIREMENT TO CONDUCT PROPOSED OIL AND GAS LEASE SALE 220 ON 
              THE OUTER CONTINENTAL SHELF OFFSHORE VIRGINIA.

    (a) In General.--Notwithstanding the inclusion of Lease Sale 220 in 
the Final Outer Continental Shelf Oil & Gas Leasing Program 2012-2017, 
the Secretary of the Interior shall conduct offshore oil and gas Lease 
Sale 220 under section 8 of the Outer Continental Shelf Lands Act (43 
U.S.C. 1337) as soon as practicable, but not later than one year after 
the date of enactment of this Act.
    (b) Requirement To Make Replacement Lease Blocks Available.--For 
each lease block in a proposed lease sale under this section for which 
the Secretary of Defense, in consultation with the Secretary of the 
Interior, under the Memorandum of Agreement referred to in section 
205(b), issues a statement proposing deferral from a lease offering due 
to defense-related activities that are irreconcilable with mineral 
exploration and development, the Secretary of the Interior, in 
consultation with the Secretary of Defense, shall make available in the 
same lease sale one other lease block in the Virginia lease sale 
planning area that is acceptable for oil and gas exploration and 
production in order to mitigate conflict.
    (c) Balancing Military and Energy Production Goals.--In recognition 
that the Outer Continental Shelf oil and gas leasing program and the 
domestic energy resources produced therefrom are integral to national 
security, the Secretary of the Interior and the Secretary of Defense 
shall work jointly in implementing this section in order to ensure 
achievement of the following common goals:
            (1) Preserving the ability of the Armed Forces of the 
        United States to maintain an optimum state of readiness through 
        their continued use of the Outer Continental Shelf.
            (2) Allowing effective exploration, development, and 
        production of our Nation's oil, gas, and renewable energy 
        resources.
    (d) Definitions.--In this section:
            (1) Lease sale 220.--The term ``Lease Sale 220'' means such 
        lease sale referred to in the Request for Comments on the Draft 
        Proposed 5-Year Outer Continental Shelf (OCS) Oil and Gas 
        Leasing Program for 2010-2015 and Notice of Intent To Prepare 
        an Environmental Impact Statement (EIS) for the Proposed 5-Year 
        Program published January 21, 2009 (74 Fed. Reg. 3631).
            (2) Virginia lease sale planning area.--The term ``Virginia 
        lease sale planning area'' means the area of the outer 
        Continental Shelf (as that term is defined in the Outer 
        Continental Shelf Lands Act (33 U.S.C. 1331 et seq.)) that is 
        bounded by--
                    (A) a northern boundary consisting of a straight 
                line extending from the northernmost point of 
                Virginia's seaward boundary to the point on the seaward 
                boundary of the United States exclusive economic zone 
                located at 37 degrees 17 minutes 1 second North 
                latitude, 71 degrees 5 minutes 16 seconds West 
                longitude; and
                    (B) a southern boundary consisting of a straight 
                line extending from the southernmost point of 
                Virginia's seaward boundary to the point on the seaward 
                boundary of the United States exclusive economic zone 
                located at 36 degrees 31 minutes 58 seconds North 
                latitude, 71 degrees 30 minutes 1 second West 
                longitude.

SEC. 202. SOUTH CAROLINA LEASE SALE.

    Notwithstanding inclusion of the South Atlantic Outer Continental 
Shelf Planning Area in the Final Outer Continental Shelf Oil & Gas 
Leasing Program 2012-2017, the Secretary of the Interior shall conduct 
a lease sale not later than 2 years after the date of the enactment of 
this Act for areas off the coast of South Carolina determined by the 
Secretary to have the most geologically promising hydrocarbon resources 
and constituting not less than 25 percent of the leasable area within 
the South Carolina offshore administrative boundaries depicted in the 
notice entitled ``Federal Outer Continental Shelf (OCS) Administrative 
Boundaries Extending from the Submerged Lands Act Boundary seaward to 
the Limit of the United States Outer Continental Shelf'', published 
January 3, 2006 (71 Fed. Reg. 127).

SEC. 203. SOUTHERN CALIFORNIA EXISTING INFRASTRUCTURE LEASE SALE.

    (a) In General.--The Secretary of the Interior shall offer for sale 
leases of tracts in the Santa Maria and Santa Barbara/Ventura Basins of 
the Southern California OCS Planning Area as soon as practicable, but 
not later than December 31, 2014.
    (b) Use of Existing Structures or Onshore-Based Drilling.--The 
Secretary of the Interior shall include in leases offered for sale 
under this lease sale such terms and conditions as are necessary to 
require that development and production may occur only from offshore 
infrastructure in existence on the date of the enactment of this Act or 
from onshore-based, extended-reach drilling.

SEC. 204. ENVIRONMENTAL IMPACT STATEMENT REQUIREMENT.

    (a) In General.--For the purposes of this Act, the Secretary of the 
Interior shall prepare a multisale environmental impact statement under 
section 102 of the National Environmental Policy Act of 1969 (42 U.S.C. 
4332) for all lease sales required under this title.
    (b) Actions To Be Considered.--Notwithstanding section 102 of the 
National Environmental Policy Act of 1969 (42 U.S.C. 4332), in such 
statement--
            (1) the Secretary is not required to identify nonleasing 
        alternative courses of action or to analyze the environmental 
        effects of such alternative courses of action; and
            (2) the Secretary shall only--
                    (A) identify a preferred action for leasing and not 
                more than one alternative leasing proposal; and
                    (B) analyze the environmental effects and potential 
                mitigation measures for such preferred action and such 
                alternative leasing proposal.

SEC. 205. NATIONAL DEFENSE.

    (a) National Defense Areas.--This Act does not affect the existing 
authority of the Secretary of Defense, with the approval of the 
President, to designate national defense areas on the Outer Continental 
Shelf pursuant to section 12(d) of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1341(d)).
    (b) Prohibition on Conflicts With Military Operations.--No person 
may engage in any exploration, development, or production of oil or 
natural gas on the Outer Continental Shelf under a lease issued under 
this Act that would conflict with any military operation, as determined 
in accordance with the Memorandum of Agreement between the Department 
of Defense and the Department of the Interior on Mutual Concerns on the 
Outer Continental Shelf signed July 20, 1983, and any revision or 
replacement for that agreement that is agreed to by the Secretary of 
Defense and the Secretary of the Interior after that date but before 
the date of issuance of the lease under which such exploration, 
development, or production is conducted.

SEC. 206. EASTERN GULF OF MEXICO NOT INCLUDED.

    Nothing in this Act affects restrictions on oil and gas leasing 
under the Gulf of Mexico Energy Security Act of 2006 (title I of 
division C of Public Law 109-432; 43 U.S.C. 1331 note).

    TITLE III--EQUITABLE SHARING OF OUTER CONTINENTAL SHELF REVENUES

SEC. 301. DISPOSITION OF OUTER CONTINENTAL SHELF REVENUES TO COASTAL 
              STATES.

    (a) In General.--Section 9 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1338) is amended--
            (1) in the existing text--
                    (A) in the first sentence, by striking ``All 
                rentals,'' and inserting the following:
    ``(c) Disposition of Revenue Under Old Leases.--All rentals,''; and
                    (B) in subsection (c) (as designated by the 
                amendment made by subparagraph (A) of this paragraph), 
                by striking ``for the period from June 5, 1950, to 
                date, and thereafter'' and inserting ``in the period 
                beginning June 5, 1950, and ending on the date of 
                enactment of the Offshore Energy and Jobs Act'';
            (2) by adding after subsection (c) (as so designated) the 
        following:
    ``(d)  Definitions.--In this section:
            ``(1) Coastal state.--The term `coastal State' includes a 
        territory of the United States.
            ``(2) New leasing revenues.--The term `new leasing 
        revenues'--
                    ``(A) means amounts received by the United States 
                as bonuses, rents, and royalties under leases for oil 
                and gas, wind, tidal, or other energy exploration, 
                development, and production on areas of the outer 
                Continental Shelf that are authorized to be made 
                available for leasing as a result of enactment of the 
                Offshore Energy and Jobs Act and leasing under that 
                Act; and
                    ``(B) does not include amounts received by the 
                United States under any lease of an area located in the 
                boundaries of the Central Gulf of Mexico and Western 
                Gulf of Mexico Outer Continental Shelf Planning Areas 
                on the date of enactment of the Offshore Energy and 
                Jobs Act, including a lease issued before, on, or after 
                such date of enactment.''; and
            (3) by inserting before subsection (c) (as so designated) 
        the following:
    ``(a) Payment of New Leasing Revenues to Coastal States.--
            ``(1) In general.--Except as provided in paragraph (2), of 
        the amount of new leasing revenues received by the United 
        States each fiscal year, 37.5 percent shall be allocated and 
        paid in accordance with subsection (b) to coastal States that 
        are affected States with respect to the leases under which 
        those revenues are received by the United States.
            ``(2) Phase-in.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), paragraph (1) shall be applied--
                            ``(i) with respect to new leasing revenues 
                        under leases awarded under the first leasing 
                        program under section 18(a) that takes effect 
                        after the date of enactment of the Offshore 
                        Energy and Jobs Act, by substituting `12.5 
                        percent' for `37.5 percent'; and
                            ``(ii) with respect to new leasing revenues 
                        under leases awarded under the second leasing 
                        program under section 18(a) that takes effect 
                        after the date of enactment of the Offshore 
                        Energy and Jobs Act, by substituting `25 
                        percent' for `37.5 percent'.
                    ``(B) Exempted lease sales.--This paragraph shall 
                not apply with respect to any lease issued under title 
                II of the Offshore Energy and Jobs Act.
    ``(b) Allocation of Payments.--
            ``(1) In general.--The amount of new leasing revenues 
        received by the United States with respect to a leased tract 
        that are required to be paid to coastal States in accordance 
        with this subsection each fiscal year shall be allocated among 
        and paid to coastal States that are within 200 miles of the 
        leased tract, in amounts that are inversely proportional to the 
        respective distances between the point on the coastline of each 
        such State that is closest to the geographic center of the 
        lease tract, as determined by the Secretary.
            ``(2) Minimum and maximum allocation.--The amount allocated 
        to a coastal State under paragraph (1) each fiscal year with 
        respect to a leased tract shall be--
                    ``(A) in the case of a coastal State that is the 
                nearest State to the geographic center of the leased 
                tract, not less than 25 percent of the total amounts 
                allocated with respect to the leased tract;
                    ``(B) in the case of any other coastal State, not 
                less than 10 percent, and not more than 15 percent, of 
                the total amounts allocated with respect to the leased 
                tract; and
                    ``(C) in the case of a coastal State that is the 
                only coastal State within 200 miles of a least tract, 
                100 percent of the total amounts allocated with respect 
                to the leased tract.
            ``(3) Administration.--Amounts allocated to a coastal State 
        under this subsection--
                    ``(A) shall be available to the coastal State 
                without further appropriation;
                    ``(B) shall remain available until expended; and
                    ``(C) shall be in addition to any other amounts 
                available to the coastal State under this Act.
            ``(4) Use of funds.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a coastal State may use funds 
                allocated and paid to it under this subsection for any 
                purpose as determined by the laws of that State.
                    ``(B) Restriction on use for matching.--Funds 
                allocated and paid to a coastal State under this 
                subsection may not be used as matching funds for any 
                other Federal program.''.
    (b) Limitation on Application.--This section and the amendment made 
by this section shall not affect the application of section 105 of the 
Gulf of Mexico Energy Security Act of 2006 (title I of division C of 
Public Law 109-432; (43 U.S.C. 1331 note)), as in effect before the 
enactment of this Act, with respect to revenues received by the United 
States under oil and gas leases issued for tracts located in the 
Western and Central Gulf of Mexico Outer Continental Shelf Planning 
Areas, including such leases issued on or after the date of the 
enactment of this Act.

    TITLE IV--REORGANIZATION OF MINERALS MANAGEMENT AGENCIES OF THE 
                       DEPARTMENT OF THE INTERIOR

SEC. 401. ESTABLISHMENT OF UNDER SECRETARY FOR ENERGY, LANDS, AND 
              MINERALS AND ASSISTANT SECRETARY OF OCEAN ENERGY AND 
              SAFETY.

    There shall be in the Department of the Interior--
            (1) an Under Secretary for Energy, Lands, and Minerals, who 
        shall--
                    (A) be appointed by the President, by and with the 
                advise and consent of the Senate;
                    (B) report to the Secretary of the Interior or, if 
                directed by the Secretary, to the Deputy Secretary of 
                the Interior;
                    (C) be paid at the rate payable for level III of 
                the Executive Schedule; and
                    (D) be responsible for--
                            (i) the safe and responsible development of 
                        our energy and mineral resources on Federal 
                        lands in appropriate accordance with United 
                        States energy demands; and
                            (ii) ensuring multiple-use missions of the 
                        Department of the Interior that promote the 
                        safe and sustained development of energy and 
                        minerals resources on public lands (as that 
                        term is defined in the Federal Land Policy and 
                        Management Act of 1976 (43 U.S.C. 1701 et 
                        seq.));
            (2) an Assistant Secretary of Ocean Energy and Safety, who 
        shall--
                    (A) be appointed by the President, by and with the 
                advise and consent of the Senate;
                    (B) report to the Under Secretary for Energy, 
                Lands, and Minerals;
                    (C) be paid at the rate payable for level IV of the 
                Executive Schedule; and
                    (D) be responsible for ensuring safe and efficient 
                development of energy and minerals on the Outer 
                Continental Shelf of the United States; and
            (3) an Assistant Secretary of Land and Minerals Management, 
        who shall--
                    (A) be appointed by the President, by and with the 
                advise and consent of the Senate;
                    (B) report to the Under Secretary for Energy, 
                Lands, and Minerals;
                    (C) be paid at the rate payable for level IV of the 
                Executive Schedule; and
                    (D) be responsible for ensuring safe and efficient 
                development of energy and minerals on public lands and 
                other Federal onshore lands under the jurisdiction of 
                the Department of the Interior, including 
                implementation of the Mineral Leasing Act (30 U.S.C. 
                181 et seq.) and the Surface Mining Control and 
                Reclamation Act (30 U.S.C. 1201 et seq.) and 
                administration of the Office of Surface Mining.

SEC. 402. BUREAU OF OCEAN ENERGY.

    (a) Establishment.--There is established in the Department of the 
Interior a Bureau of Ocean Energy (referred to in this section as the 
``Bureau''), which shall--
            (1) be headed by a Director of Ocean Energy (referred to in 
        this section as the ``Director''); and
            (2) be administered under the direction of the Assistant 
        Secretary of Ocean Energy and Safety.
    (b) Director.--
            (1) Appointment.--The Director shall be appointed by the 
        Secretary of the Interior.
            (2) Compensation.--The Director shall be compensated at the 
        rate provided for level V of the Executive Schedule under 
        section 5316 of title 5, United States Code.
    (c) Duties.--
            (1) In general.--The Secretary of the Interior shall carry 
        out through the Bureau all functions, powers, and duties vested 
        in the Secretary relating to the administration of a 
        comprehensive program of offshore mineral and renewable energy 
        resources management.
            (2) Specific authorities.--The Director shall promulgate 
        and implement regulations--
                    (A) for the proper issuance of leases for the 
                exploration, development, and production of 
                nonrenewable and renewable energy and mineral resources 
                on the Outer Continental Shelf;
                    (B) relating to resource identification, access, 
                evaluation, and utilization;
                    (C) for development of leasing plans, lease sales, 
                and issuance of leases for such resources; and
                    (D) regarding issuance of environmental impact 
                statements related to leasing and post leasing 
                activities including exploration, development, and 
                production, and the use of third party contracting for 
                necessary environmental analysis for the development of 
                such resources.
            (3) Limitation.--The Secretary shall not carry out through 
        the Bureau any function, power, or duty that is--
                    (A) required by section 403 to be carried out 
                through the Ocean Energy Safety Service; or
                    (B) required by section 404 to be carried out 
                through the Office of Natural Resources Revenue.
    (d) Responsibilities of Land Management Agencies.--Nothing in this 
section shall affect the authorities of the Bureau of Land Management 
under the Federal Land Policy and Management Act of 1976 (43 U.S.C. 
1701 et seq.) or of the Forest Service under the National Forest 
Management Act of 1976 (Public Law 94-588).

SEC. 403. OCEAN ENERGY SAFETY SERVICE.

    (a) Establishment.--There is established in the Department of the 
Interior an Ocean Energy Safety Service (referred to in this section as 
the ``Service''), which shall--
            (1) be headed by a Director of Energy Safety (referred to 
        in this section as the ``Director''); and
            (2) be administered under the direction of the Assistant 
        Secretary of Ocean Energy and Safety.
    (b) Director.--
            (1) Appointment.--The Director shall be appointed by the 
        Secretary of the Interior.
            (2) Compensation.--The Director shall be compensated at the 
        rate provided for level V of the Executive Schedule under 
        section 5316 of title 5, United States Code.
    (c) Duties.--
            (1) In general.--The Secretary of the Interior shall carry 
        out through the Service all functions, powers, and duties 
        vested in the Secretary relating to the administration of 
        safety and environmental enforcement activities related to 
        offshore mineral and renewable energy resources on the Outer 
        Continental Shelf pursuant to the Outer Continental Shelf Lands 
        Act (43 U.S.C. 1331 et seq.) including the authority to 
        develop, promulgate, and enforce regulations to ensure the safe 
        and sound exploration, development, and production of mineral 
        and renewable energy resources on the Outer Continental Shelf 
        in a timely fashion.
            (2) Specific authorities.--The Director shall be 
        responsible for all safety activities related to exploration 
        and development of renewable and mineral resources on the Outer 
        Continental Shelf, including--
                    (A) exploration, development, production, and 
                ongoing inspections of infrastructure;
                    (B) the suspending or prohibiting, on a temporary 
                basis, any operation or activity, including production 
                under leases held on the Outer Continental Shelf, in 
                accordance with section 5(a)(1) of the Outer 
                Continental Shelf Lands Act (43 U.S.C. 1334(a)(1));
                    (C) cancelling any lease, permit, or right-of-way 
                on the Outer Continental Shelf, in accordance with 
                section 5(a)(2) of the Outer Continental Shelf Lands 
                Act (43 U.S.C. 1334(a)(2));
                    (D) compelling compliance with applicable Federal 
                laws and regulations relating to worker safety and 
                other matters;
                    (E) requiring comprehensive safety and 
                environmental management programs for persons engaged 
                in activities connected with the exploration, 
                development, and production of mineral or renewable 
                energy resources;
                    (F) developing and implementing regulations for 
                Federal employees to carry out any inspection or 
                investigation to ascertain compliance with applicable 
                regulations, including health, safety, or environmental 
                regulations;
                    (G) implementing the Offshore Technology Research 
                and Risk Assessment Program under section 21 of the 
                Outer Continental Shelf Lands Act (43 U.S.C. 1347);
                    (H) summoning witnesses and directing the 
                production of evidence;
                    (I) levying fines and penalties and disqualifying 
                operators;
                    (J) carrying out any safety, response, and removal 
                preparedness functions; and
                    (K) the processing of permits, exploration plans, 
                development plans.
    (d) Employees.--
            (1) In general.--The Secretary shall ensure that the 
        inspection force of the Bureau consists of qualified, trained 
        employees who meet qualification requirements and adhere to the 
        highest professional and ethical standards.
            (2) Qualifications.--The qualification requirements 
        referred to in paragraph (1)--
                    (A) shall be determined by the Secretary, subject 
                to subparagraph (B); and
                    (B) shall include--
                            (i) three years of practical experience in 
                        oil and gas exploration, development, or 
                        production; or
                            (ii) a degree in an appropriate field of 
                        engineering from an accredited institution of 
                        higher learning.
            (3) Assignment.--In assigning oil and gas inspectors to the 
        inspection and investigation of individual operations, the 
        Secretary shall give due consideration to the extent possible 
        to their previous experience in the particular type of oil and 
        gas operation in which such inspections are to be made.
            (4) Background checks.--The Director shall require that an 
        individual to be hired as an inspection officer undergo an 
        employment investigation (including a criminal history record 
        check).
            (5) Language requirements.--Individuals hired as inspectors 
        must be able to read, speak, and write English well enough to--
                    (A) carry out written and oral instructions 
                regarding the proper performance of inspection duties; 
                and
                    (B) write inspection reports and statements and log 
                entries in the English language.
            (6) Veterans preference.--The Director shall provide a 
        preference for the hiring of an individual as a inspection 
        officer if the individual is a member or former member of the 
        Armed Forces and is entitled, under statute, to retired, 
        retirement, or retainer pay on account of service as a member 
        of the Armed Forces.
            (7) Annual proficiency review.--
                    (A) Annual proficiency review.--The Director shall 
                provide that an annual evaluation of each individual 
                assigned inspection duties is conducted and documented.
                    (B) Continuation of employment.--An individual 
                employed as an inspector may not continue to be 
                employed in that capacity unless the evaluation 
                demonstrates that the individual--
                            (i) continues to meet all qualifications 
                        and standards;
                            (ii) has a satisfactory record of 
                        performance and attention to duty based on the 
                        standards and requirements in the inspection 
                        program; and
                            (iii) demonstrates the current knowledge 
                        and skills necessary to courteously, 
                        vigilantly, and effectively perform inspection 
                        functions.
            (8) Limitation on right to strike.--Any individual that 
        conducts permitting or inspections under this section may not 
        participate in a strike, or assert the right to strike.
            (9) Personnel authority.--Notwithstanding any other 
        provision of law, the Director may employ, appoint, discipline 
        and terminate for cause, and fix the compensation, terms, and 
        conditions of employment of Federal service for individuals as 
        the employees of the Service in order to restore and maintain 
        the trust of the people of the United States in the 
        accountability of the management of our Nation's energy safety 
        program.
            (10) Training academy.--
                    (A) In general.--The Secretary shall establish and 
                maintain a National Offshore Energy Safety Academy 
                (referred to in this paragraph as the ``Academy'') as 
                an agency of the Ocean Energy Safety Service.
                    (B) Functions of academy.--The Secretary, through 
                the Academy, shall be responsible for--
                            (i) the initial and continued training of 
                        both newly hired and experienced offshore oil 
                        and gas inspectors in all aspects of health, 
                        safety, environmental, and operational 
                        inspections;
                            (ii) the training of technical support 
                        personnel of the Bureau;
                            (iii) any other training programs for 
                        offshore oil and gas inspectors, Bureau 
                        personnel, Department personnel, or other 
                        persons as the Secretary shall designate; and
                            (iv) certification of the successful 
                        completion of training programs for newly hired 
                        and experienced offshore oil and gas 
                        inspectors.
                    (C) Cooperative agreements.--
                            (i) In general.--In performing functions 
                        under this paragraph, and subject to clause 
                        (ii), the Secretary may enter into cooperative 
                        educational and training agreements with 
                        educational institutions, related Federal 
                        academies, other Federal agencies, State 
                        governments, safety training firms, and oil and 
                        gas operators and related industries.
                            (ii) Training requirement.--Such training 
                        shall be conducted by the Academy in accordance 
                        with curriculum needs and assignment of 
                        instructional personnel established by the 
                        Secretary.
            (11) Use of department personnel.--In performing functions 
        under this subsection, the Secretary shall use, to the extent 
        practicable, the facilities and personnel of the Department of 
        the Interior. The Secretary may appoint or assign to the 
        Academy such officers and employees as the Secretary considers 
        necessary for the performance of the duties and functions of 
        the Academy.
            (12) Additional training programs.--
                    (A) In general.--The Secretary shall work with 
                appropriate educational institutions, operators, and 
                representatives of oil and gas workers to develop and 
                maintain adequate programs with educational 
                institutions and oil and gas operators that are 
                designed--
                            (i) to enable persons to qualify for 
                        positions in the administration of this Act; 
                        and
                            (ii) to provide for the continuing 
                        education of inspectors or other appropriate 
                        Department of the Interior personnel.
                    (B) Financial and technical assistance.--The 
                Secretary may provide financial and technical 
                assistance to educational institutions in carrying out 
                this paragraph.
    (e) Limitation.--The Secretary shall not carry out through the 
Service any function, power, or duty that is--
            (1) required by section 402 to be carried out through 
        Bureau of Ocean Energy; or
            (2) required by section 404 to be carried out through the 
        Office of Natural Resources Revenue.

SEC. 404. OFFICE OF NATURAL RESOURCES REVENUE.

    (a) Establishment.--There is established in the Department of the 
Interior an Office of Natural Resources Revenue (referred to in this 
section as the ``Office'') to be headed by a Director of Natural 
Resources Revenue (referred to in this section as the ``Director'').
    (b) Appointment and Compensation.--
            (1) In general.--The Director shall be appointed by the 
        Secretary of the Interior.
            (2) Compensation.--The Director shall be compensated at the 
        rate provided for Level V of the Executive Schedule under 
        section 5316 of title 5, United States Code.
    (c) Duties.--
            (1) In general.--The Secretary of the Interior shall carry 
        out, through the Office, all functions, powers, and duties 
        vested in the Secretary and relating to the administration of 
        offshore royalty and revenue management functions.
            (2) Specific authorities.--The Secretary shall carry out, 
        through the Office, all functions, powers, and duties 
        previously assigned to the Minerals Management Service 
        (including the authority to develop, promulgate, and enforce 
        regulations) regarding offshore royalty and revenue collection; 
        royalty and revenue distribution; auditing and compliance; 
        investigation and enforcement of royalty and revenue 
        regulations; and asset management for onshore and offshore 
        activities.
    (d) Limitation.--The Secretary shall not carry out through the 
Office any function, power, or duty that is--
            (1) required by section 402 to be carried out through 
        Bureau of Ocean Energy; or
            (2) required by section 403 to be carried out through the 
        Ocean Energy Safety Service.

SEC. 405. ETHICS AND DRUG TESTING.

    (a) Certification.--The Secretary of the Interior shall certify 
annually that all Department of the Interior officers and employees 
having regular, direct contact with lessees, contractors, 
concessionaires, and other businesses interested before the Government 
as a function of their official duties, or conducting investigations, 
issuing permits, or responsible for oversight of energy programs, are 
in full compliance with all Federal employee ethics laws and 
regulations under the Ethics in Government Act of 1978 (5 U.S.C. App.) 
and part 2635 of title 5, Code of Federal Regulations, and all guidance 
issued under subsection (c).
    (b) Drug Testing.--The Secretary shall conduct a random drug 
testing program of all Department of the Interior personnel referred to 
in subsection (a).
    (c) Guidance.--Not later than 90 days after the date of enactment 
of this Act, the Secretary shall issue supplementary ethics and drug 
testing guidance for the employees for which certification is required 
under subsection (a). The Secretary shall update the supplementary 
ethics guidance not less than once every 3 years thereafter.

SEC. 406. ABOLISHMENT OF MINERALS MANAGEMENT SERVICE.

    (a) Abolishment.--The Minerals Management Service is abolished.
    (b) Completed Administrative Actions.--
            (1) In general.--Completed administrative actions of the 
        Minerals Management Service shall not be affected by the 
        enactment of this Act, but shall continue in effect according 
        to their terms until amended, modified, superseded, terminated, 
        set aside, or revoked in accordance with law by an officer of 
        the United States or a court of competent jurisdiction, or by 
        operation of law.
            (2) Completed administrative action defined.--For purposes 
        of paragraph (1), the term ``completed administrative action'' 
        includes orders, determinations, memoranda of understanding, 
        memoranda of agreements, rules, regulations, personnel actions, 
        permits, agreements, grants, contracts, certificates, licenses, 
        registrations, and privileges.
    (c) Pending Proceedings.--Subject to the authority of the Secretary 
of the Interior and the officers of the Department of the Interior 
under this Act--
            (1) pending proceedings in the Minerals Management Service, 
        including notices of proposed rulemaking, and applications for 
        licenses, permits, certificates, grants, and financial 
        assistance, shall continue, notwithstanding the enactment of 
        this Act or the vesting of functions of the Service in another 
        agency, unless discontinued or modified under the same terms 
        and conditions and to the same extent that such discontinuance 
        or modification could have occurred if this Act had not been 
        enacted; and
            (2) orders issued in such proceedings, and appeals 
        therefrom, and payments made pursuant to such orders, shall 
        issue in the same manner and on the same terms as if this Act 
        had not been enacted, and any such orders shall continue in 
        effect until amended, modified, superseded, terminated, set 
        aside, or revoked by an officer of the United States or a court 
        of competent jurisdiction, or by operation of law.
    (d) Pending Civil Actions.--Subject to the authority of the 
Secretary of the Interior or any officer of the Department of the 
Interior under this Act, pending civil actions shall continue 
notwithstanding the enactment of this Act, and in such civil actions, 
proceedings shall be had, appeals taken, and judgments rendered and 
enforced in the same manner and with the same effect as if such 
enactment had not occurred.
    (e) References.--References relating to the Minerals Management 
Service in statutes, Executive orders, rules, regulations, directives, 
or delegations of authority that precede the effective date of this Act 
are deemed to refer, as appropriate, to the Department, to its 
officers, employees, or agents, or to its corresponding organizational 
units or functions. Statutory reporting requirements that applied in 
relation to the Minerals Management Service immediately before the 
effective date of this Act shall continue to apply.

SEC. 407. CONFORMING AMENDMENTS TO EXECUTIVE SCHEDULE PAY RATES.

    (a) Under Secretary for Energy, Lands, and Minerals.--Section 5314 
of title 5, United States Code, is amended by inserting after the item 
relating to ``Under Secretaries of the Treasury (3)'' the following:
            ``Under Secretary for Energy, Lands, and Minerals, 
        Department of the Interior.''.
    (b) Assistant Secretaries.--Section 5315 of title 5, United States 
Code, is amended by striking ``Assistant Secretaries, Department of the 
Interior (6)'' and inserting the following:
            ``Assistant Secretaries, Department of the Interior (7).''.
    (c) Directors.--Section 5316 of title 5, United States Code, is 
amended by striking ``Director, Bureau of Mines, Department of the 
Interior.'' and inserting the following new items:
            ``Director, Bureau of Ocean Energy, Department of the 
        Interior.
            ``Director, Ocean Energy Safety Service, Department of the 
        Interior.
            ``Director, Office of Natural Resources Revenue, Department 
        of the Interior.''.

SEC. 408. OUTER CONTINENTAL SHELF ENERGY SAFETY ADVISORY BOARD.

    (a) Establishment.--The Secretary of the Interior shall establish, 
under the Federal Advisory Committee Act, an Outer Continental Shelf 
Energy Safety Advisory Board (referred to in this section as the 
``Board'')--
            (1) to provide the Secretary and the Directors established 
        by this Act with independent scientific and technical advice on 
        safe, responsible, and timely mineral and renewable energy 
        exploration, development, and production activities; and
            (2) to review operations of the National Offshore Energy 
        Health and Safety Academy established under section 403(d), 
        including submitting to the Secretary recommendations of 
        curriculum to ensure training scientific and technical 
        advancements.
    (b) Membership.--
            (1) Size.--The Board shall consist of not more than 11 
        members, who--
                    (A) shall be appointed by the Secretary based on 
                their expertise in oil and gas drilling, well design, 
                operations, well containment and oil spill response; 
                and
                    (B) must have significant scientific, engineering, 
                management, and other credentials and a history of 
                working in the field related to safe energy 
                exploration, development, and production activities.
            (2) Consultation and nominations.--The Secretary shall 
        consult with the National Academy of Sciences and the National 
        Academy of Engineering to identify potential candidates for the 
        Board and shall take nominations from the public.
            (3) 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.
            (4) Balance.--In appointing members to the Board, the 
        Secretary shall ensure a balanced representation of industry 
        and research interests.
    (c) Chair.--The Secretary shall appoint the Chair for the Board 
from among its members.
    (d) Meetings.--The Board shall meet not less than 3 times per year 
and shall host, at least once per year, a public forum to review and 
assess the overall energy safety performance of Outer Continental Shelf 
mineral and renewable energy resource activities.
    (e) Offshore Drilling Safety Assessments and Recommendations.--As 
part of its duties under this section, the Board shall, by not later 
than 180 days after the date of enactment of this section and every 5 
years thereafter, submit to the Secretary a report that--
            (1) assesses offshore oil and gas well control 
        technologies, practices, voluntary standards, and regulations 
        in the United States and elsewhere; and
            (2) as appropriate, recommends modifications to the 
        regulations issued under this Act to ensure adequate protection 
        of safety and the environment, including recommendations on how 
        to reduce regulations and administrative actions that are 
        duplicative or unnecessary.
    (f) Reports.--Reports of the Board shall be submitted by the Board 
to the Committee on Natural Resources of the House or Representatives 
and the Committee on Energy and Natural Resources of the Senate and 
made available to the public in electronically accessible form.
    (g) Travel Expenses.--Members of the Board, other than full-time 
employees of the Federal Government, while attending meeting of the 
Board or while otherwise serving at the request of the Secretary or the 
Director while serving away from their homes or regular places of 
business, may be allowed travel expenses, including per diem in lieu of 
subsistence, as authorized by section 5703 of title 5, United States 
Code, for individuals in the Government serving without pay.

SEC. 409. OUTER CONTINENTAL SHELF INSPECTION FEES.

    Section 22 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1348) is amended by adding at the end of the section the following:
    ``(g) Inspection Fees.--
            ``(1) Establishment.--The Secretary of the Interior shall 
        collect from the operators of facilities subject to inspection 
        under subsection (c) non-refundable fees for such inspections--
                    ``(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.
            ``(2) Ocean energy safety 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 all amounts collected as 
        fees under paragraph (1) and which shall be available as 
        provided under paragraph (3).
            ``(3) Availability of fees.--
                    ``(A) In general.--Notwithstanding section 3302 of 
                title 31, United States Code, all amounts deposited in 
                the Fund--
                            ``(i) shall be credited as offsetting 
                        collections;
                            ``(ii) shall be available for expenditure 
                        for purposes of carrying out inspections of 
                        outer Continental Shelf facilities (including 
                        mobile offshore drilling units) and the 
                        administration of the inspection program under 
                        this section;
                            ``(iii) shall be available only to the 
                        extent provided for in advance in an 
                        appropriations Act; and
                            ``(iv) shall remain available until 
                        expended.
                    ``(B) Use for field offices.--Not less than 75 
                percent of amounts in the Fund may be appropriated for 
                use only for the respective Department of the Interior 
                field offices where the amounts were originally 
                assessed as fees.
            ``(4) Initial fees.--Fees shall be established under this 
        subsection for the fiscal year in which this subsection takes 
        effect and the subsequent 10 years, and shall not be raised 
        without advise and consent of the Congress, except as 
        determined by the Secretary to be appropriate as an adjustment 
        equal to the percentage by which the Consumer Price Index for 
        the month of June of the calendar year preceding the adjustment 
        exceeds the Consumer Price Index for the month of June of the 
        calendar year in which the claim was determined or last 
        adjusted.
            ``(5) Annual fees.--Annual fees shall be collected under 
        this subsection for facilities that are above the waterline, 
        excluding drilling rigs, and are in place at the start of the 
        fiscal year. Fees for each fiscal year in the period of fiscal 
        years 2013 through 2022 shall be--
                    ``(A) $10,500 for facilities with no wells, but 
                with processing equipment or gathering lines;
                    ``(B) $17,000 for facilities with 1 to 10 wells, 
                with any combination of active or inactive wells; and
                    ``(C) $31,500 for facilities with more than 10 
                wells, with any combination of active or inactive 
                wells.
            ``(6) Fees for drilling rigs.--Fees for drilling rigs shall 
        be assessed under this subsection for all inspections completed 
        in fiscal years 2013 through 2022. Fees for fiscal year 2013 
        shall be:
                    ``(A) $30,500 per inspection for rigs operating in 
                water depths of 1,000 feet or more; and
                    ``(B) $16,700 per inspection for rigs operating in 
                water depths of less than 1,000 feet.
            ``(7) Billing.--The Secretary shall bill designated 
        operators under paragraph (5) within 60 days after the date of 
        the inspection, with payment required within 30 days of 
        billing. The Secretary shall bill designated operators under 
        paragraph (6) within 30 days of the end of the month in which 
        the inspection occurred, with payment required within 30 days 
        after billing.
            ``(8) Sunset.--No fee may be collected under this 
        subsection for any fiscal year after fiscal year 2022.
            ``(9) Annual reports.--
                    ``(A) In general.--Not later than 60 days after the 
                end of each fiscal year beginning with fiscal year 
                2013, 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 and 
                        the additional hiring of personnel.
                            ``(iii) A statement of the balance 
                        remaining in the Fund at the end of the fiscal 
                        year.
                            ``(iv) An accounting of pace of permit 
                        approvals.
                            ``(v) If fee increases are proposed after 
                        the initial 10-year period referred to in 
                        paragraph (5), a proper accounting of the 
                        potential adverse economic impacts such fee 
                        increases will have on offshore economic 
                        activity and overall production, conducted by 
                        the Secretary.
                            ``(vi) Recommendations to increase the 
                        efficacy and efficiency of offshore 
                        inspections.
                            ``(vii) Any corrective actions levied upon 
                        offshore inspectors as a result of any form of 
                        misconduct.''.

                   TITLE V--UNITED STATES TERRITORIES

SEC. 501. APPLICATION OF OUTER CONTINENTAL SHELF LANDS ACT WITH RESPECT 
              TO TERRITORIES OF THE UNITED STATES.

    Section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 1331) 
is amended--
            (1) in paragraph (a), by inserting after ``control'' the 
        following: ``or lying within the United States exclusive 
        economic zone and the Continental Shelf adjacent to any 
        territory of the United States'';
            (2) in paragraph (p), by striking ``and'' after the 
        semicolon at the end;
            (3) in paragraph (q), by striking the period at the end and 
        inserting ``; and''; and
            (4) by adding at the end the following:
    ``(r) The term `State' includes each territory of the United 
States.''.
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