I 

113TH CONGRESS 

1ST SESSION H. R. 2784 

To amend the Outer Continental Shelf Lands Act to require the Secretary 

of the Interior to conduct offshore oil and gas leasing, to use revenues 

from such leasing to capitalize bonds that provide a dedicated source 

of revenue to fund highway, other transportation, and water infrastructure projects, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 22, 2013 

Mr. STIVERS (for himself and Mr. RICHMOND) introduced the following bill; 

which was referred to the Committee on Natural Resources, and in addition to the Committees on Ways and Means, Transportation and Infrastructure, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Outer Continental Shelf Lands Act to require 

the Secretary of the Interior to conduct offshore oil and 

gas leasing, to use revenues from such leasing to capitalize bonds that provide a dedicated source of revenue 

to fund highway, other transportation, and water infrastructure projects, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


jbell on DSK7SPTVN1PROD with BILLS
2 

•HR 2784 IH

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘American-Made En3 ergy and Infrastructure Jobs Act’’. 

4 SEC. 2. TABLE OF CONTENTS. 

5 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. 

TITLE III—EQUITABLE SHARING OF OUTER CONTINENTAL 

SHELF REVENUES 

Sec. 301. Disposition of Outer Continental Shelf revenues to coastal States. 

Sec. 302. Acceleration of Phase II GOMESA revenue sharing. 

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 VI—INFRASTRUCTURE REVENUE BONDS 


jbell on DSK7SPTVN1PROD with BILLS
3 

•HR 2784 IH

Sec. 601. Leveraging Infrastructure Trust Account with infrastructure revenue 

bonds. 

Sec. 602. Ninety-five percent of bond proceeds for Highway Trust Fund. 

Sec. 603. Five percent of bond proceeds for State revolving loan funds for 

wastewater treatment facilities and drinking water facilities. 

1 TITLE I—OUTER CONTINENTAL 

2 SHELF LEASING PROGRAM 

3 REFORMS 

4 SEC. 101. OUTER CONTINENTAL SHELF LEASING PROGRAM 

5 REFORMS. 

6 Section 18(a) of the Outer Continental Shelf Lands 

7 Act (43 U.S.C. 1344(a)) is amended by adding at the end 

8 the following: 

9 ‘‘(5)(A) In each oil and gas leasing program 

10 under this section, the Secretary shall make avail11 able for leasing and conduct lease sales including at 

12 least 50 percent of the available unleased acreage 

13 within each outer Continental Shelf planning area 

14 considered to have the largest undiscovered, tech15 nically recoverable oil and gas resources (on a total 

16 btu basis) based upon the most recent national geo17 logic assessment of the outer Continental Shelf, with 

18 an emphasis on offering the most geologically pro19 spective parts of the planning area. 

20 ‘‘(B) The Secretary shall include in each pro21 posed oil and gas leasing program under this section 

22 any State subdivision of an outer Continental Shelf 

23 planning area that the Governor of the State that 


jbell on DSK7SPTVN1PROD with BILLS
4 

•HR 2784 IH

1 represents that subdivision requests be made avail2 able for leasing. The Secretary may not remove such 

3 a subdivision from the program until publication of 

4 the final program. 

5 ‘‘(C) In this paragraph the term ‘available un6 leased acreage’ means that portion of the outer Con7 tinental Shelf that is not under lease at the time of 

8 a proposed lease sale, and that has not otherwise 

9 been made unavailable for leasing by law. 

10 ‘‘(6)(A) In the 5-year oil and gas leasing pro11 gram, the Secretary shall make available for leasing 

12 any outer Continental Shelf planning areas that— 

13 ‘‘(i) are estimated to contain more than 

14 2,500,000,000 barrels of oil; or 

15 ‘‘(ii) are estimated to contain more than 

16 7,500,000,000,000 cubic feet of natural gas. 

17 ‘‘(B) To determine the planning areas described 

18 in subparagraph (A), the Secretary shall use the 

19 document entitled ‘Minerals Management Service 

20 Assessment of Undiscovered Technically Recoverable 

21 Oil and Gas Resources of the Nation’s Outer Conti22 nental Shelf, 2006’.’’. 


jbell on DSK7SPTVN1PROD with BILLS
5 

•HR 2784 IH

1 SEC. 102. DOMESTIC OIL AND NATURAL GAS PRODUCTION 

2 GOAL. 

3 Section 18(b) of the Outer Continental Shelf Lands 

4 Act (43 U.S.C. 1344(b)) is amended to read as follows: 

5 ‘‘(b) DOMESTIC OIL AND NATURAL GAS PRODUC6 TION GOAL.—– 

7 ‘‘(1) IN GENERAL.—In developing a 5-year oil 

8 and gas leasing program, and subject to paragraph 

9 (2), the Secretary shall determine a domestic stra10 tegic production goal for the development of oil and 

11 natural gas as a result of that program. Such goal 

12 shall be— 

13 ‘‘(A) the best estimate of the possible in14 crease in domestic production of oil and natural 

15 gas from the outer Continental Shelf; 

16 ‘‘(B) focused on meeting domestic demand 

17 for oil and natural gas and reducing the de18 pendence of the United States on foreign en19 ergy; and 

20 ‘‘(C) focused on the production increases 

21 achieved by the leasing program at the end of 

22 the 15-year period beginning on the effective 

23 date of the program. 

24 ‘‘(2) PROGRAM GOAL.—For purposes of the 5- 

25 year oil and gas leasing program, the production 


jbell on DSK7SPTVN1PROD with BILLS
6 

•HR 2784 IH

1 goal referred to in paragraph (1) shall be an in2 crease by 2032 of— 

3 ‘‘(A) no less than 3,000,000 barrels in the 

4 amount of oil produced per day; and 

5 ‘‘(B) no less than 10,000,000,000 cubic 

6 feet in the amount of natural gas produced per 

7 day. 

8 ‘‘(3) REPORTING.—The Secretary shall report 

9 annually, beginning at the end of the 5-year period 

10 for which the program applies, to the Committee on 

11 Natural Resources of the House of Representatives 

12 and the Committee on Energy and Natural Re13 sources of the Senate on the progress of the pro14 gram in meeting the production goal. The Secretary 

15 shall identify in the report projections for production 

16 and any problems with leasing, permitting, or pro17 duction that will prevent meeting the goal.’’. 

18 SEC. 103. DEVELOPMENT AND SUBMITTAL OF NEW 5-YEAR 

19 OIL AND GAS LEASING PROGRAM. 

20 (a) IN GENERAL.—The Secretary of the Interior 

21 shall— 

22 (1) by not later than July 15, 2014, publish 

23 and submit to Congress a new proposed oil and gas 

24 leasing program under section 18 of the Outer Con25 tinental Shelf Lands Act (43 U.S.C. 1344) for the 


jbell on DSK7SPTVN1PROD with BILLS
7 

•HR 2784 IH

1 5-year period beginning on such date and ending 

2 July 15, 2020; and 

3 (2) by not later than July 15, 2015, approve a 

4 final oil and gas leasing program under such section 

5 for such period. 

6 (b) CONSIDERATION OF ALL AREAS.—In preparing 

7 such program the Secretary shall include consideration of 

8 areas of the Continental Shelf off the coasts of all States 

9 (as such term is defined in section 2 of that Act, as 

10 amended by this Act), that are subject to leasing under 

11 this Act. 

12 (c) TECHNICAL CORRECTION.—Section 18(d)(3) of 

13 the Outer Continental Shelf Lands Act (43 U.S.C. 

14 1344(d)(3)) is amended by striking ‘‘or after eighteen 

15 months following the date of enactment of this section, 

16 whichever first occurs,’’. 

17 TITLE II—ENHANCING THE 2012– 

18 2017 FIVE-YEAR OUTER CON19 TINENTAL SHELF OIL AND 

20 GAS LEASING PROGRAM 

21 SEC. 201. REQUIREMENT TO CONDUCT PROPOSED OIL AND 

22 GAS LEASE SALE 220 ON THE OUTER CONTI23 NENTAL SHELF OFFSHORE VIRGINIA. 

24 (a) IN GENERAL.—Notwithstanding the inclusion of 

25 Lease Sale 220 in the Final Outer Continental Shelf Oil 


jbell on DSK7SPTVN1PROD with BILLS
8 

•HR 2784 IH

1 & Gas Leasing Program 2012–2017, the Secretary of the 

2 Interior shall conduct offshore oil and gas Lease Sale 220 

3 under section 8 of the Outer Continental Shelf Lands Act 

4 (43 U.S.C. 1337) as soon as practicable, but not later 

5 than one year after the date of enactment of this Act. 

6 (b) REQUIREMENT TO MAKE REPLACEMENT LEASE

7 BLOCKS AVAILABLE.—For each lease block in a proposed 

8 lease sale under this section for which the Secretary of 

9 Defense, in consultation with the Secretary of the Interior, 

10 under the Memorandum of Agreement referred to in sec11 tion 205(b), issues a statement proposing deferral from 

12 a lease offering due to defense-related activities that are 

13 irreconcilable with mineral exploration and development, 

14 the Secretary of the Interior, in consultation with the Sec15 retary of Defense, shall make available in the same lease 

16 sale one other lease block in the Virginia lease sale plan17 ning area that is acceptable for oil and gas exploration 

18 and production in order to mitigate conflict. 

19 (c) BALANCING MILITARY AND ENERGY PRODUC20 TION GOALS.—In recognition that the Outer Continental 

21 Shelf oil and gas leasing program and the domestic energy 

22 resources produced therefrom are integral to national se23 curity, the Secretary of the Interior and the Secretary of 

24 Defense shall work jointly in implementing this section in 


jbell on DSK7SPTVN1PROD with BILLS
9 

•HR 2784 IH

1 order to ensure achievement of the following common 

2 goals: 

3 (1) Preserving the ability of the Armed Forces 

4 of the United States to maintain an optimum state 

5 of readiness through their continued use of the 

6 Outer Continental Shelf. 

7 (2) Allowing effective exploration, development, 

8 and production of our Nation’s oil, gas, and renew9 able energy resources. 

10 (d) DEFINITIONS.—In this section: 

11 (1) LEASE SALE 220.—The term ‘‘Lease Sale 

12 220’’ means such lease sale referred to in the Re13 quest for Comments on the Draft Proposed 5-Year 

14 Outer Continental Shelf (OCS) Oil and Gas Leasing 

15 Program for 2010–2015 and Notice of Intent To 

16 Prepare an Environmental Impact Statement (EIS) 

17 for the Proposed 5-Year Program published January 

18 21, 2009 (74 Fed. Reg. 3631). 

19 (2) VIRGINIA LEASE SALE PLANNING AREA.— 

20 The term ‘‘Virginia lease sale planning area’’ means 

21 the area of the outer Continental Shelf (as that term 

22 is defined in the Outer Continental Shelf Lands Act 

23 (33 U.S.C. 1331 et seq.)) that is bounded by— 

24 (A) a northern boundary consisting of a 

25 straight line extending from the northernmost 


jbell on DSK7SPTVN1PROD with BILLS
10 

•HR 2784 IH

1 point of Virginia’s seaward boundary to the 

2 point on the seaward boundary of the United 

3 States exclusive economic zone located at 37 de4 grees 17 minutes 1 second North latitude, 71 

5 degrees 5 minutes 16 seconds West longitude; 

6 and 

7 (B) a southern boundary consisting of a 

8 straight line extending from the southernmost 

9 point of Virginia’s seaward boundary to the 

10 point on the seaward boundary of the United 

11 States exclusive economic zone located at 36 de12 grees 31 minutes 58 seconds North latitude, 71 

13 degrees 30 minutes 1 second West longitude. 

14 SEC. 202. SOUTH CAROLINA LEASE SALE. 

15 Notwithstanding inclusion of the South Atlantic 

16 Outer Continental Shelf Planning Area in the Final Outer 

17 Continental Shelf Oil & Gas Leasing Program 2012–2017, 

18 the Secretary of the Interior shall conduct a lease sale not 

19 later than 2 years after the date of the enactment of this 

20 Act for areas off the coast of South Carolina determined 

21 by the Secretary to have the most geologically promising 

22 hydrocarbon resources and constituting not less than 25 

23 percent of the leasable area within the South Carolina off24 shore administrative boundaries depicted in the notice en25 titled ‘‘Federal Outer Continental Shelf (OCS) AdminisVerDate Mar 15 2010 07:18 Jul 24, 2013 Jkt 029200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H2784.IH H2784

jbell on DSK7SPTVN1PROD with BILLS
11 

•HR 2784 IH

1 trative Boundaries Extending from the Submerged Lands 

2 Act Boundary seaward to the Limit of the United States 

3 Outer Continental Shelf’’, published January 3, 2006 (71 

4 Fed. Reg. 127). 

5 SEC. 203. SOUTHERN CALIFORNIA EXISTING INFRASTRUC6 TURE LEASE SALE. 

7 (a) IN GENERAL.—The Secretary of the Interior shall 

8 offer for sale leases of tracts in the Santa Maria and 

9 Santa Barbara/Ventura Basins of the Southern California 

10 OCS Planning Area as soon as practicable, but not later 

11 than December 31, 2014. 

12 (b) USE OF EXISTING STRUCTURES OR ONSHORE13 BASED DRILLING.—The Secretary of the Interior shall in14 clude in leases offered for sale under this lease sale such 

15 terms and conditions as are necessary to require that de16 velopment and production may occur only from offshore 

17 infrastructure in existence on the date of the enactment 

18 of this Act or from onshore-based, extended-reach drilling. 

19 SEC. 204. ENVIRONMENTAL IMPACT STATEMENT REQUIRE20 MENT. 

21 (a) IN GENERAL.—For the purposes of this Act, the 

22 Secretary of the Interior shall prepare a multisale environ23 mental impact statement under section 102 of the Na24 tional Environmental Policy Act of 1969 (42 U.S.C. 4332) 

25 for all lease sales required under this title. 


jbell on DSK7SPTVN1PROD with BILLS
12 

•HR 2784 IH

1 (b) ACTIONS TO BE CONSIDERED.—Notwithstanding 

2 section 102 of the National Environmental Policy Act of 

3 1969 (42 U.S.C. 4332), in such statement— 

4 (1) the Secretary is not required to identify 

5 nonleasing alternative courses of action or to analyze 

6 the environmental effects of such alternative courses 

7 of action; and 

8 (2) the Secretary shall only— 

9 (A) identify a preferred action for leasing 

10 and not more than one alternative leasing pro11 posal; and 

12 (B) analyze the environmental effects and 

13 potential mitigation measures for such pre14 ferred action and such alternative leasing pro15 posal. 

16 SEC. 205. NATIONAL DEFENSE. 

17 (a) NATIONAL DEFENSE AREAS.—This Act does not 

18 affect the existing authority of the Secretary of Defense, 

19 with the approval of the President, to designate national 

20 defense areas on the Outer Continental Shelf pursuant to 

21 section 12(d) of the Outer Continental Shelf Lands Act 

22 (43 U.S.C. 1341(d)). 

23 (b) PROHIBITION ON CONFLICTS WITH MILITARY

24 OPERATIONS.—No person may engage in any exploration, 

25 development, or production of oil or natural gas on the 


jbell on DSK7SPTVN1PROD with BILLS
13 

•HR 2784 IH

1 Outer Continental Shelf under a lease issued under this 

2 Act that would conflict with any military operation, as de3 termined in accordance with the Memorandum of Agree4 ment between the Department of Defense and the Depart5 ment of the Interior on Mutual Concerns on the Outer 

6 Continental Shelf signed July 20, 1983, and any revision 

7 or replacement for that agreement that is agreed to by 

8 the Secretary of Defense and the Secretary of the Interior 

9 after that date but before the date of issuance of the lease 

10 under which such exploration, development, or production 

11 is conducted. 

12 TITLE III—EQUITABLE SHARING 

13 OF OUTER CONTINENTAL 

14 SHELF REVENUES 

15 SEC. 301. DISPOSITION OF OUTER CONTINENTAL SHELF 

16 REVENUES TO COASTAL STATES. 

17 (a) IN GENERAL.—Section 9 of the Outer Conti18 nental Shelf Lands Act (43 U.S.C. 1338) is amended— 

19 (1) in the existing text— 

20 (A) in the first sentence, by striking ‘‘All 

21 rentals,’’ and inserting the following: 

22 ‘‘(c) DISPOSITION OF REVENUE UNDER OLD

23 LEASES.—All rentals,’’; and 

24 (B) in subsection (c) (as designated by the 

25 amendment made by subparagraph (A) of this 


jbell on DSK7SPTVN1PROD with BILLS
14 

•HR 2784 IH

1 paragraph), by striking ‘‘for the period from 

2 June 5, 1950, to date, and thereafter’’ and in3 serting ‘‘in the period beginning June 5, 1950, 

4 and ending on the date of enactment of the 

5 American-Made Energy and Infrastructure 

6 Jobs Act’’; 

7 (2) by adding after subsection (c) (as so des8 ignated) the following: 

9 ‘‘(d) DEFINITIONS.—In this section: 

10 ‘‘(1) COASTAL STATE.—The term ‘coastal 

11 State’ includes a territory of the United States. 

12 ‘‘(2) NEW LEASING REVENUES.—The term ‘new 

13 leasing revenues’— 

14 ‘‘(A) means amounts received by the 

15 United States as bonuses, rents, and royalties 

16 under leases for oil and gas, wind, tidal, or 

17 other energy exploration, development, and pro18 duction on areas of the outer Continental Shelf 

19 that are authorized to be made available for 

20 leasing as a result of enactment of the Amer21 ican-Made Energy and Infrastructure Jobs Act 

22 and leasing under that Act; and 

23 ‘‘(B) does not include amounts received by 

24 the United States under any lease of an area lo25 cated in the boundaries of the Central Gulf of 


jbell on DSK7SPTVN1PROD with BILLS
15 

•HR 2784 IH

1 Mexico and Western Gulf of Mexico Outer Con2 tinental Shelf Planning Areas on the date of en3 actment of the American-Made Energy and In4 frastructure Jobs Act, including a lease issued 

5 before, on, or after such date of enactment.’’; 

6 and 

7 (3) by inserting before subsection (c) (as so 

8 designated) the following: 

9 ‘‘(a) PAYMENT OF NEW LEASING REVENUES TO

10 COASTAL STATES.— 

11 ‘‘(1) IN GENERAL.—Except as provided in para12 graph (2), of the amount of new leasing revenues re13 ceived by the United States each fiscal year, 37.5 

14 percent shall be allocated and paid in accordance 

15 with subsection (b) to coastal States that are af16 fected States with respect to the leases under which 

17 those revenues are received by the United States. 

18 ‘‘(2) PHASE-IN.— 

19 ‘‘(A) IN GENERAL.—Except as provided in 

20 subparagraph (B), paragraph (1) shall be ap21 plied— 

22 ‘‘(i) with respect to new leasing reve23 nues under leases awarded under the first 

24 leasing program under section 18(a) that 

25 takes effect after the date of enactment of 


jbell on DSK7SPTVN1PROD with BILLS
16 

•HR 2784 IH

1 the American-Made Energy and Infra2 structure Jobs Act, by substituting ‘12.5 

3 percent’ for ‘37.5 percent’; and 

4 ‘‘(ii) with respect to new leasing reve5 nues under leases awarded under the sec6 ond leasing program under section 18(a) 

7 that takes effect after the date of enact8 ment of the American-Made Energy and 

9 Infrastructure Jobs Act, by substituting 

10 ‘25 percent’ for ‘37.5 percent’. 

11 ‘‘(B) EXEMPTED LEASE SALES.—This 

12 paragraph shall not apply with respect to any 

13 lease issued under title II of the American14 Made Energy and Infrastructure Jobs Act. 

15 ‘‘(b) ALLOCATION OF PAYMENTS.— 

16 ‘‘(1) IN GENERAL.—The amount of new leasing 

17 revenues received by the United States with respect 

18 to a leased tract that are required to be paid to 

19 coastal States in accordance with this subsection 

20 each fiscal year shall be allocated among and paid 

21 to coastal States that are within 200 miles of the 

22 leased tract, in amounts that are inversely propor23 tional to the respective distances between the point 

24 on the coastline of each such State that is closest to 


jbell on DSK7SPTVN1PROD with BILLS
17 

•HR 2784 IH

1 the geographic center of the lease tract, as deter2 mined by the Secretary. 

3 ‘‘(2) MINIMUM AND MAXIMUM ALLOCATION.— 

4 The amount allocated to a coastal State under para5 graph (1) each fiscal year with respect to a leased 

6 tract shall be— 

7 ‘‘(A) in the case of a coastal State that is 

8 the nearest State to the geographic center of 

9 the leased tract, not less than 25 percent of the 

10 total amounts allocated with respect to the 

11 leased tract; 

12 ‘‘(B) in the case of any other coastal State, 

13 not less than 10 percent, and not more than 15 

14 percent, of the total amounts allocated with re15 spect to the leased tract; and 

16 ‘‘(C) in the case of a coastal State that is 

17 the only coastal State within 200 miles of a 

18 least tract, 100 percent of the total amounts al19 located with respect to the leased tract. 

20 ‘‘(3) ADMINISTRATION.—Amounts allocated to 

21 a coastal State under this subsection— 

22 ‘‘(A) shall be available to the coastal State 

23 without further appropriation; 

24 ‘‘(B) shall remain available until expended; 

25 and 


jbell on DSK7SPTVN1PROD with BILLS
18 

•HR 2784 IH

1 ‘‘(C) shall be in addition to any other 

2 amounts available to the coastal State under 

3 this Act. 

4 ‘‘(4) USE OF FUNDS.— 

5 ‘‘(A) IN GENERAL.—Except as provided in 

6 subparagraph (B), a coastal State may use 

7 funds allocated and paid to it under this sub8 section for any purpose as determined by the 

9 laws of that State. 

10 ‘‘(B) RESTRICTION ON USE FOR MATCH11 ING.—Funds allocated and paid to a coastal 

12 State under this subsection may not be used as 

13 matching funds for any other Federal pro14 gram.’’. 

15 (b) LIMITATION ON APPLICATION.—This section and 

16 the amendment made by this section shall not affect the 

17 application of section 105 of the Gulf of Mexico Energy 

18 Security Act of 2006 (title I of division C of Public Law 

19 109–432; (43 U.S.C. 1331 note)), as in effect before the 

20 enactment of this Act, with respect to revenues received 

21 by the United States under oil and gas leases issued for 

22 tracts located in the Western and Central Gulf of Mexico 

23 Outer Continental Shelf Planning Areas, including such 

24 leases issued on or after the date of the enactment of this 

25 Act. 


jbell on DSK7SPTVN1PROD with BILLS
19 

•HR 2784 IH

1 SEC. 302. ACCELERATION OF PHASE II GOMESA REVENUE 

2 SHARING. 

3 Section 105 of the of Mexico Energy Security Act of 

4 2006 (43 U.S.C. 1331 note) is amended— 

5 (1) in subsection (b)(1)— 

6 (A) in the heading for paragraph (1), by 

7 striking ‘‘2016’’ and inserting ‘‘2014’’; and 

8 (B) in subparagraph (A), by striking 

9 ‘‘2016’’ and inserting ‘‘2014’’; 

10 (2) in subsection (b)(2)— 

11 (A) in the heading for paragraph (1), by 

12 striking ‘‘2017’’ and inserting ‘‘2015’’; and 

13 (B) in subparagraph (A), by striking 

14 ‘‘2017’’ and inserting ‘‘2015’’; and 

15 (3) in subsection (f)(1), by inserting before the 

16 period ‘‘, except that such amount shall increase by 

17 $250,000,000 upon the issuance of each 5-year oil 

18 and gas leasing program under section 18 of the 

19 Outer Continental Shelf Lands Act (43 U.S.C. 

20 1344)’’. 


jbell on DSK7SPTVN1PROD with BILLS
20 

•HR 2784 IH

1 TITLE IV—REORGANIZATION OF 

2 MINERALS MANAGEMENT 

3 AGENCIES OF THE DEPART4 MENT OF THE INTERIOR 

5 SEC. 401. ESTABLISHMENT OF UNDER SECRETARY FOR EN6 ERGY, LANDS, AND MINERALS AND ASSIST7 ANT SECRETARY OF OCEAN ENERGY AND 

8 SAFETY. 

9 There shall be in the Department of the Interior— 

10 (1) an Under Secretary for Energy, Lands, and 

11 Minerals, who shall— 

12 (A) be appointed by the President, by and 

13 with the advise and consent of the Senate; 

14 (B) report to the Secretary of the Interior 

15 or, if directed by the Secretary, to the Deputy 

16 Secretary of the Interior; 

17 (C) be paid at the rate payable for level III 

18 of the Executive Schedule; and 

19 (D) be responsible for— 

20 (i) the safe and responsible develop21 ment of our energy and mineral resources 

22 on Federal lands in appropriate accordance 

23 with United States energy demands; and 

24 (ii) ensuring multiple-use missions of 

25 the Department of the Interior that proVerDate Mar 15 2010 07:18 Jul 24, 2013 Jkt 029200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\H2784.IH H2784

jbell on DSK7SPTVN1PROD with BILLS
21 

•HR 2784 IH

1 mote the safe and sustained development 

2 of energy and minerals resources on public 

3 lands (as that term is defined in the Fed4 eral Land Policy and Management Act of 

5 1976 (43 U.S.C. 1701 et seq.)); 

6 (2) an Assistant Secretary of Ocean Energy 

7 and Safety, who shall— 

8 (A) be appointed by the President, by and 

9 with the advise and consent of the Senate; 

10 (B) report to the Under Secretary for En11 ergy, Lands, and Minerals; 

12 (C) be paid at the rate payable for level IV 

13 of the Executive Schedule; and 

14 (D) be responsible for ensuring safe and 

15 efficient development of energy and minerals on 

16 the Outer Continental Shelf of the United 

17 States; and 

18 (3) an Assistant Secretary of Land and Min19 erals Management, who shall— 

20 (A) be appointed by the President, by and 

21 with the advise and consent of the Senate; 

22 (B) report to the Under Secretary for En23 ergy, Lands, and Minerals; 

24 (C) be paid at the rate payable for level IV 

25 of the Executive Schedule; and 


jbell on DSK7SPTVN1PROD with BILLS
22 

•HR 2784 IH

1 (D) be responsible for ensuring safe and 

2 efficient development of energy and minerals on 

3 public lands and other Federal onshore lands 

4 under the jurisdiction of the Department of the 

5 Interior, including implementation of the Min6 eral Leasing Act (30 U.S.C. 181 et seq.) and 

7 the Surface Mining Control and Reclamation 

8 Act (30 U.S.C. 1201 et seq.) and administra9 tion of the Office of Surface Mining. 

10 SEC. 402. BUREAU OF OCEAN ENERGY. 

11 (a) ESTABLISHMENT.—There is established in the 

12 Department of the Interior a Bureau of Ocean Energy (re13 ferred to in this section as the ‘‘Bureau’’), which shall— 

14 (1) be headed by a Director of Ocean Energy 

15 (referred to in this section as the ‘‘Director’’); and 

16 (2) be administered under the direction of the 

17 Assistant Secretary of Ocean Energy and Safety. 

18 (b) DIRECTOR.— 

19 (1) APPOINTMENT.—The Director shall be ap20 pointed by the Secretary of the Interior. 

21 (2) COMPENSATION.—The Director shall be 

22 compensated at the rate provided for level V of the 

23 Executive Schedule under section 5316 of title 5, 

24 United States Code. 

25 (c) DUTIES.— 


jbell on DSK7SPTVN1PROD with BILLS
23 

•HR 2784 IH

1 (1) IN GENERAL.—The Secretary of the Inte2 rior shall carry out through the Bureau all func3 tions, powers, and duties vested in the Secretary re4 lating to the administration of a comprehensive pro5 gram of offshore mineral and renewable energy re6 sources management. 

7 (2) SPECIFIC AUTHORITIES.—The Director 

8 shall promulgate and implement regulations— 

9 (A) for the proper issuance of leases for 

10 the exploration, development, and production of 

11 nonrenewable and renewable energy and min12 eral resources on the Outer Continental Shelf; 

13 (B) relating to resource identification, ac14 cess, evaluation, and utilization; 

15 (C) for development of leasing plans, lease 

16 sales, and issuance of leases for such resources; 

17 and 

18 (D) regarding issuance of environmental 

19 impact statements related to leasing and post 

20 leasing activities including exploration, develop21 ment, and production, and the use of third 

22 party contracting for necessary environmental 

23 analysis for the development of such resources. 


jbell on DSK7SPTVN1PROD with BILLS
24 

•HR 2784 IH

1 (3) LIMITATION.—The Secretary shall not carry 

2 out through the Bureau any function, power, or duty 

3 that is— 

4 (A) required by section 403 to be carried 

5 out through the Ocean Energy Safety Service; 

6 or 

7 (B) required by section 404 to be carried 

8 out through the Office of Natural Resources 

9 Revenue. 

10 (d) RESPONSIBILITIES OF LAND MANAGEMENT

11 AGENCIES.—Nothing in this section shall affect the au12 thorities of the Bureau of Land Management under the 

13 Federal Land Policy and Management Act of 1976 (43 

14 U.S.C. 1701 et seq.) or of the Forest Service under the 

15 National Forest Management Act of 1976 (Public Law 

16 94–588). 

17 SEC. 403. OCEAN ENERGY SAFETY SERVICE. 

18 (a) ESTABLISHMENT.—There is established in the 

19 Department of the Interior an Ocean Energy Safety Serv20 ice (referred to in this section as the ‘‘Service’’), which 

21 shall— 

22 (1) be headed by a Director of Energy Safety 

23 (referred to in this section as the ‘‘Director’’); and 

24 (2) be administered under the direction of the 

25 Assistant Secretary of Ocean Energy and Safety. 


jbell on DSK7SPTVN1PROD with BILLS
25 

•HR 2784 IH

1 (b) DIRECTOR.— 

2 (1) APPOINTMENT.—The Director shall be ap3 pointed by the Secretary of the Interior. 

4 (2) COMPENSATION.—The Director shall be 

5 compensated at the rate provided for level V of the 

6 Executive Schedule under section 5316 of title 5, 

7 United States Code. 

8 (c) DUTIES.— 

9 (1) IN GENERAL.—The Secretary of the Inte10 rior shall carry out through the Service all functions, 

11 powers, and duties vested in the Secretary relating 

12 to the administration of safety and environmental 

13 enforcement activities related to offshore mineral 

14 and renewable energy resources on the Outer Conti15 nental Shelf pursuant to the Outer Continental Shelf 

16 Lands Act (43 U.S.C. 1331 et seq.) including the 

17 authority to develop, promulgate, and enforce regu18 lations to ensure the safe and sound exploration, de19 velopment, and production of mineral and renewable 

20 energy resources on the Outer Continental Shelf in 

21 a timely fashion. 

22 (2) SPECIFIC AUTHORITIES.—The Director 

23 shall be responsible for all safety activities related to 

24 exploration and development of renewable and minVerDate Mar 15 2010 07:18 Jul 24, 2013 Jkt 029200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\H2784.IH H2784

jbell on DSK7SPTVN1PROD with BILLS
26 

•HR 2784 IH

1 eral resources on the Outer Continental Shelf, in2 cluding— 

3 (A) exploration, development, production, 

4 and ongoing inspections of infrastructure; 

5 (B) the suspending or prohibiting, on a 

6 temporary basis, any operation or activity, in7 cluding production under leases held on the 

8 Outer Continental Shelf, in accordance with 

9 section 5(a)(1) of the Outer Continental Shelf 

10 Lands Act (43 U.S.C. 1334(a)(1)); 

11 (C) cancelling any lease, permit, or right12 of-way on the Outer Continental Shelf, in ac13 cordance with section 5(a)(2) of the Outer Con14 tinental Shelf Lands Act (43 U.S.C. 

15 1334(a)(2)); 

16 (D) compelling compliance with applicable 

17 Federal laws and regulations relating to worker 

18 safety and other matters; 

19 (E) requiring comprehensive safety and en20 vironmental management programs for persons 

21 engaged in activities connected with the explo22 ration, development, and production of mineral 

23 or renewable energy resources; 

24 (F) developing and implementing regula25 tions for Federal employees to carry out any inVerDate Mar 15 2010 07:18 Jul 24, 2013 Jkt 029200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\H2784.IH H2784

jbell on DSK7SPTVN1PROD with BILLS
27 

•HR 2784 IH

1 spection or investigation to ascertain compli2 ance with applicable regulations, including 

3 health, safety, or environmental regulations; 

4 (G) implementing the Offshore Technology 

5 Research and Risk Assessment Program under 

6 section 21 of the Outer Continental Shelf 

7 Lands Act (43 U.S.C. 1347); 

8 (H) summoning witnesses and directing 

9 the production of evidence; 

10 (I) levying fines and penalties and disquali11 fying operators; 

12 (J) carrying out any safety, response, and 

13 removal preparedness functions; and 

14 (K) the processing of permits, exploration 

15 plans, development plans. 

16 (d) EMPLOYEES.— 

17 (1) IN GENERAL.—The Secretary shall ensure 

18 that the inspection force of the Bureau consists of 

19 qualified, trained employees who meet qualification 

20 requirements and adhere to the highest professional 

21 and ethical standards. 

22 (2) QUALIFICATIONS.—The qualification re23 quirements referred to in paragraph (1)— 

24 (A) shall be determined by the Secretary, 

25 subject to subparagraph (B); and 


jbell on DSK7SPTVN1PROD with BILLS
28 

•HR 2784 IH

1 (B) shall include— 

2 (i) three years of practical experience 

3 in oil and gas exploration, development, or 

4 production; or 

5 (ii) a degree in an appropriate field of 

6 engineering from an accredited institution 

7 of higher learning. 

8 (3) ASSIGNMENT.—In assigning oil and gas in9 spectors to the inspection and investigation of indi10 vidual operations, the Secretary shall give due con11 sideration to the extent possible to their previous ex12 perience in the particular type of oil and gas oper13 ation in which such inspections are to be made. 

14 (4) BACKGROUND CHECKS.—The Director shall 

15 require that an individual to be hired as an inspec16 tion officer undergo an employment investigation 

17 (including a criminal history record check). 

18 (5) LANGUAGE REQUIREMENTS.—Individuals 

19 hired as inspectors must be able to read, speak, and 

20 write English well enough to— 

21 (A) carry out written and oral instructions 

22 regarding the proper performance of inspection 

23 duties; and 

24 (B) write inspection reports and state25 ments and log entries in the English language. 


jbell on DSK7SPTVN1PROD with BILLS
29 

•HR 2784 IH

1 (6) VETERANS PREFERENCE.—The Director 

2 shall provide a preference for the hiring of an indi3 vidual as a inspection officer if the individual is a 

4 member or former member of the Armed Forces and 

5 is entitled, under statute, to retired, retirement, or 

6 retainer pay on account of service as a member of 

7 the Armed Forces. 

8 (7) ANNUAL PROFICIENCY REVIEW.— 

9 (A) ANNUAL PROFICIENCY REVIEW.—The 

10 Director shall provide that an annual evaluation 

11 of each individual assigned inspection duties is 

12 conducted and documented. 

13 (B) CONTINUATION OF EMPLOYMENT.—An 

14 individual employed as an inspector may not 

15 continue to be employed in that capacity unless 

16 the evaluation demonstrates that the indi17 vidual— 

18 (i) continues to meet all qualifications 

19 and standards; 

20 (ii) has a satisfactory record of per21 formance and attention to duty based on 

22 the standards and requirements in the in23 spection program; and 

24 (iii) demonstrates the current knowl25 edge and skills necessary to courteously, 


jbell on DSK7SPTVN1PROD with BILLS
30 

•HR 2784 IH

1 vigilantly, and effectively perform inspec2 tion functions. 

3 (8) LIMITATION ON RIGHT TO STRIKE.—Any 

4 individual that conducts permitting or inspections 

5 under this section may not participate in a strike, or 

6 assert the right to strike. 

7 (9) PERSONNEL AUTHORITY.—Notwithstanding 

8 any other provision of law, the Director may employ, 

9 appoint, discipline and terminate for cause, and fix 

10 the compensation, terms, and conditions of employ11 ment of Federal service for individuals as the em12 ployees of the Service in order to restore and main13 tain the trust of the people of the United States in 

14 the accountability of the management of our Na15 tion’s energy safety program. 

16 (10) TRAINING ACADEMY.— 

17 (A) IN GENERAL.—The Secretary shall es18 tablish and maintain a National Offshore En19 ergy Safety Academy (referred to in this para20 graph as the ‘‘Academy’’) as an agency of the 

21 Ocean Energy Safety Service. 

22 (B) FUNCTIONS OF ACADEMY.—The Sec23 retary, through the Academy, shall be respon24 sible for— 


jbell on DSK7SPTVN1PROD with BILLS
31 

•HR 2784 IH

1 (i) the initial and continued training 

2 of both newly hired and experienced off3 shore oil and gas inspectors in all aspects 

4 of health, safety, environmental, and oper5 ational inspections; 

6 (ii) the training of technical support 

7 personnel of the Bureau; 

8 (iii) any other training programs for 

9 offshore oil and gas inspectors, Bureau 

10 personnel, Department personnel, or other 

11 persons as the Secretary shall designate; 

12 and 

13 (iv) certification of the successful 

14 completion of training programs for newly 

15 hired and experienced offshore oil and gas 

16 inspectors. 

17 (C) COOPERATIVE AGREEMENTS.— 

18 (i) IN GENERAL.—In performing func19 tions under this paragraph, and subject to 

20 clause (ii), the Secretary may enter into 

21 cooperative educational and training agree22 ments with educational institutions, related 

23 Federal academies, other Federal agencies, 

24 State governments, safety training firms, 


jbell on DSK7SPTVN1PROD with BILLS
32 

•HR 2784 IH

1 and oil and gas operators and related in2 dustries. 

3 (ii) TRAINING REQUIREMENT.—Such 

4 training shall be conducted by the Acad5 emy in accordance with curriculum needs 

6 and assignment of instructional personnel 

7 established by the Secretary. 

8 (11) USE OF DEPARTMENT PERSONNEL.—In 

9 performing functions under this subsection, the Sec10 retary shall use, to the extent practicable, the facili11 ties and personnel of the Department of the Interior. 

12 The Secretary may appoint or assign to the Acad13 emy such officers and employees as the Secretary 

14 considers necessary for the performance of the du15 ties and functions of the Academy. 

16 (12) ADDITIONAL TRAINING PROGRAMS.— 

17 (A) IN GENERAL.—The Secretary shall 

18 work with appropriate educational institutions, 

19 operators, and representatives of oil and gas 

20 workers to develop and maintain adequate pro21 grams with educational institutions and oil and 

22 gas operators that are designed— 

23 (i) to enable persons to qualify for po24 sitions in the administration of this Act; 

25 and 


jbell on DSK7SPTVN1PROD with BILLS
33 

•HR 2784 IH

1 (ii) to provide for the continuing edu2 cation of inspectors or other appropriate 

3 Department of the Interior personnel. 

4 (B) FINANCIAL AND TECHNICAL ASSIST5 ANCE.—The Secretary may provide financial 

6 and technical assistance to educational institu7 tions in carrying out this paragraph. 

8 (e) LIMITATION.—The Secretary shall not carry out 

9 through the Service any function, power, or duty that is— 

10 (1) required by section 402 to be carried out 

11 through Bureau of Ocean Energy; or 

12 (2) required by section 404 to be carried out 

13 through the Office of Natural Resources Revenue. 

14 SEC. 404. OFFICE OF NATURAL RESOURCES REVENUE. 

15 (a) ESTABLISHMENT.—There is established in the 

16 Department of the Interior an Office of Natural Resources 

17 Revenue (referred to in this section as the ‘‘Office’’) to 

18 be headed by a Director of Natural Resources Revenue 

19 (referred to in this section as the ‘‘Director’’). 

20 (b) APPOINTMENT AND COMPENSATION.— 

21 (1) IN GENERAL.—The Director shall be ap22 pointed by the Secretary of the Interior. 

23 (2) COMPENSATION.—The Director shall be 

24 compensated at the rate provided for Level V of the 


jbell on DSK7SPTVN1PROD with BILLS
34 

•HR 2784 IH

1 Executive Schedule under section 5316 of title 5, 

2 United States Code. 

3 (c) DUTIES.— 

4 (1) IN GENERAL.—The Secretary of the Inte5 rior shall carry out, through the Office, all functions, 

6 powers, and duties vested in the Secretary and relat7 ing to the administration of offshore royalty and rev8 enue management functions. 

9 (2) SPECIFIC AUTHORITIES.—The Secretary 

10 shall carry out, through the Office, all functions, 

11 powers, and duties previously assigned to the Min12 erals Management Service (including the authority 

13 to develop, promulgate, and enforce regulations) re14 garding offshore royalty and revenue collection; roy15 alty and revenue distribution; auditing and compli16 ance; investigation and enforcement of royalty and 

17 revenue regulations; and asset management for on18 shore and offshore activities. 

19 (d) LIMITATION.—The Secretary shall not carry out 

20 through the Office any function, power, or duty that is— 

21 (1) required by section 402 to be carried out 

22 through Bureau of Ocean Energy; or 

23 (2) required by section 403 to be carried out 

24 through the Ocean Energy Safety Service. 


jbell on DSK7SPTVN1PROD with BILLS
35 

•HR 2784 IH

1 SEC. 405. ETHICS AND DRUG TESTING. 

2 (a) CERTIFICATION.—The Secretary of the Interior 

3 shall certify annually that all Department of the Interior 

4 officers and employees having regular, direct contact with 

5 lessees, contractors, concessionaires, and other businesses 

6 interested before the Government as a function of their 

7 official duties, or conducting investigations, issuing per8 mits, or responsible for oversight of energy programs, are 

9 in full compliance with all Federal employee ethics laws 

10 and regulations under the Ethics in Government Act of 

11 1978 (5 U.S.C. App.) and part 2635 of title 5, Code of 

12 Federal Regulations, and all guidance issued under sub13 section (c). 

14 (b) DRUG TESTING.—The Secretary shall conduct a 

15 random drug testing program of all Department of the 

16 Interior personnel referred to in subsection (a). 

17 (c) GUIDANCE.—Not later than 90 days after the 

18 date of enactment of this Act, the Secretary shall issue 

19 supplementary ethics and drug testing guidance for the 

20 employees for which certification is required under sub21 section (a). The Secretary shall update the supplementary 

22 ethics guidance not less than once every 3 years there23 after. 


jbell on DSK7SPTVN1PROD with BILLS
36 

•HR 2784 IH

1 SEC. 406. ABOLISHMENT OF MINERALS MANAGEMENT 

2 SERVICE. 

3 (a) ABOLISHMENT.—The Minerals Management 

4 Service is abolished. 

5 (b) COMPLETED ADMINISTRATIVE ACTIONS.— 

6 (1) IN GENERAL.—Completed administrative 

7 actions of the Minerals Management Service shall 

8 not be affected by the enactment of this Act, but 

9 shall continue in effect according to their terms until 

10 amended, modified, superseded, terminated, set 

11 aside, or revoked in accordance with law by an offi12 cer of the United States or a court of competent ju13 risdiction, or by operation of law. 

14 (2) COMPLETED ADMINISTRATIVE ACTION DE15 FINED.—For purposes of paragraph (1), the term 

16 ‘‘completed administrative action’’ includes orders, 

17 determinations, memoranda of understanding, 

18 memoranda of agreements, rules, regulations, per19 sonnel actions, permits, agreements, grants, con20 tracts, certificates, licenses, registrations, and privi21 leges. 

22 (c) PENDING PROCEEDINGS.—Subject to the author23 ity of the Secretary of the Interior and the officers of the 

24 Department of the Interior under this Act— 

25 (1) pending proceedings in the Minerals Man26 agement Service, including notices of proposed ruleVerDate Mar 15 2010 07:18 Jul 24, 2013 Jkt 029200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\H2784.IH H2784

jbell on DSK7SPTVN1PROD with BILLS
37 

•HR 2784 IH

1 making, and applications for licenses, permits, cer2 tificates, grants, and financial assistance, shall con3 tinue, notwithstanding the enactment of this Act or 

4 the vesting of functions of the Service in another 

5 agency, unless discontinued or modified under the 

6 same terms and conditions and to the same extent 

7 that such discontinuance or modification could have 

8 occurred if this Act had not been enacted; and 

9 (2) orders issued in such proceedings, and ap10 peals therefrom, and payments made pursuant to 

11 such orders, shall issue in the same manner and on 

12 the same terms as if this Act had not been enacted, 

13 and any such orders shall continue in effect until 

14 amended, modified, superseded, terminated, set 

15 aside, or revoked by an officer of the United States 

16 or a court of competent jurisdiction, or by operation 

17 of law. 

18 (d) PENDING CIVIL ACTIONS.—Subject to the au19 thority of the Secretary of the Interior or any officer of 

20 the Department of the Interior under this Act, pending 

21 civil actions shall continue notwithstanding the enactment 

22 of this Act, and in such civil actions, proceedings shall be 

23 had, appeals taken, and judgments rendered and enforced 

24 in the same manner and with the same effect as if such 

25 enactment had not occurred. 


jbell on DSK7SPTVN1PROD with BILLS
38 

•HR 2784 IH

1 (e) REFERENCES.—References relating to the Min2 erals Management Service in statutes, Executive orders, 

3 rules, regulations, directives, or delegations of authority 

4 that precede the effective date of this Act are deemed to 

5 refer, as appropriate, to the Department, to its officers, 

6 employees, or agents, or to its corresponding organiza7 tional units or functions. Statutory reporting requirements 

8 that applied in relation to the Minerals Management Serv9 ice immediately before the effective date of this Act shall 

10 continue to apply. 

11 SEC. 407. CONFORMING AMENDMENTS TO EXECUTIVE 

12 SCHEDULE PAY RATES. 

13 (a) UNDER SECRETARY FOR ENERGY, LANDS, AND

14 MINERALS.—Section 5314 of title 5, United States Code, 

15 is amended by inserting after the item relating to ‘‘Under 

16 Secretaries of the Treasury (3)’’ the following: 

17 ‘‘Under Secretary for Energy, Lands, and Min18 erals, Department of the Interior.’’. 

19 (b) ASSISTANT SECRETARIES.—Section 5315 of title 

20 5, United States Code, is amended by striking ‘‘Assistant 

21 Secretaries, Department of the Interior (6)’’ and inserting 

22 the following: 

23 ‘‘Assistant Secretaries, Department of the Inte24 rior (7).’’. 


jbell on DSK7SPTVN1PROD with BILLS
39 

•HR 2784 IH

1 (c) DIRECTORS.—Section 5316 of title 5, United 

2 States Code, is amended by striking ‘‘Director, Bureau of 

3 Mines, Department of the Interior.’’ and inserting the fol4 lowing new items: 

5 ‘‘Director, Bureau of Ocean Energy, Depart6 ment of the Interior. 

7 ‘‘Director, Ocean Energy Safety Service, De8 partment of the Interior. 

9 ‘‘Director, Office of Natural Resources Rev10 enue, Department of the Interior.’’. 

11 SEC. 408. OUTER CONTINENTAL SHELF ENERGY SAFETY 

12 ADVISORY BOARD. 

13 (a) ESTABLISHMENT.—The Secretary of the Interior 

14 shall establish, under the Federal Advisory Committee 

15 Act, an Outer Continental Shelf Energy Safety Advisory 

16 Board (referred to in this section as the ‘‘Board’’)— 

17 (1) to provide the Secretary and the Directors 

18 established by this Act with independent scientific 

19 and technical advice on safe, responsible, and timely 

20 mineral and renewable energy exploration, develop21 ment, and production activities; and 

22 (2) to review operations of the National Off23 shore Energy Health and Safety Academy estab24 lished under section 403(d), including submitting to 


jbell on DSK7SPTVN1PROD with BILLS
40 

•HR 2784 IH

1 the Secretary recommendations of curriculum to en2 sure training scientific and technical advancements. 

3 (b) MEMBERSHIP.— 

4 (1) SIZE.—The Board shall consist of not more 

5 than 11 members, who— 

6 (A) shall be appointed by the Secretary 

7 based on their expertise in oil and gas drilling, 

8 well design, operations, well containment and 

9 oil spill response; and 

10 (B) must have significant scientific, engi11 neering, management, and other credentials and 

12 a history of working in the field related to safe 

13 energy exploration, development, and produc14 tion activities. 

15 (2) CONSULTATION AND NOMINATIONS.—The 

16 Secretary shall consult with the National Academy 

17 of Sciences and the National Academy of Engineer18 ing to identify potential candidates for the Board 

19 and shall take nominations from the public. 

20 (3) TERM.—The Secretary shall appoint Board 

21 members to staggered terms of not more than 4 

22 years, and shall not appoint a member for more 

23 than 2 consecutive terms. 


jbell on DSK7SPTVN1PROD with BILLS
41 

•HR 2784 IH

1 (4) BALANCE.—In appointing members to the 

2 Board, the Secretary shall ensure a balanced rep3 resentation of industry and research interests. 

4 (c) CHAIR.—The Secretary shall appoint the Chair 

5 for the Board from among its members. 

6 (d) MEETINGS.—The Board shall meet not less than 

7 3 times per year and shall host, at least once per year, 

8 a public forum to review and assess the overall energy 

9 safety performance of Outer Continental Shelf mineral 

10 and renewable energy resource activities. 

11 (e) OFFSHORE DRILLING SAFETY ASSESSMENTS

12 AND RECOMMENDATIONS.—As part of its duties under 

13 this section, the Board shall, by not later than 180 days 

14 after the date of enactment of this section and every 5 

15 years thereafter, submit to the Secretary a report that— 

16 (1) assesses offshore oil and gas well control 

17 technologies, practices, voluntary standards, and 

18 regulations in the United States and elsewhere; and 

19 (2) as appropriate, recommends modifications 

20 to the regulations issued under this Act to ensure 

21 adequate protection of safety and the environment, 

22 including recommendations on how to reduce regula23 tions and administrative actions that are duplicative 

24 or unnecessary. 


jbell on DSK7SPTVN1PROD with BILLS
42 

•HR 2784 IH

1 (f) REPORTS.—Reports of the Board shall be sub2 mitted by the Board to the Committee on Natural Re3 sources of the House or Representatives and the Com4 mittee on Energy and Natural Resources of the Senate 

5 and made available to the public in electronically acces6 sible form. 

7 (g) TRAVEL EXPENSES.—Members of the Board, 

8 other than full-time employees of the Federal Government, 

9 while attending meeting of the Board or while otherwise 

10 serving at the request of the Secretary or the Director 

11 while serving away from their homes or regular places of 

12 business, may be allowed travel expenses, including per 

13 diem in lieu of subsistence, as authorized by section 5703 

14 of title 5, United States Code, for individuals in the Gov15 ernment serving without pay. 

16 SEC. 409. OUTER CONTINENTAL SHELF INSPECTION FEES. 

17 Section 22 of the Outer Continental Shelf Lands Act 

18 (43 U.S.C. 1348) is amended by adding at the end of the 

19 section the following: 

20 ‘‘(g) INSPECTION FEES.— 

21 ‘‘(1) ESTABLISHMENT.—The Secretary of the 

22 Interior shall collect from the operators of facilities 

23 subject to inspection under subsection (c) non-re24 fundable fees for such inspections— 


jbell on DSK7SPTVN1PROD with BILLS
43 

•HR 2784 IH

1 ‘‘(A) at an aggregate level equal to the 

2 amount necessary to offset the annual expenses 

3 of inspections of outer Continental Shelf facili4 ties (including mobile offshore drilling units) by 

5 the Department of the Interior; and 

6 ‘‘(B) using a schedule that reflects the dif7 ferences in complexity among the classes of fa8 cilities to be inspected. 

9 ‘‘(2) OCEAN ENERGY SAFETY FUND.—There is 

10 established in the Treasury a fund, to be known as 

11 the ‘Ocean Energy Enforcement Fund’ (referred to 

12 in this subsection as the ‘Fund’), into which shall be 

13 deposited all amounts collected as fees under para14 graph (1) and which shall be available as provided 

15 under paragraph (3). 

16 ‘‘(3) AVAILABILITY OF FEES.— 

17 ‘‘(A) IN GENERAL.—Notwithstanding sec18 tion 3302 of title 31, United States Code, all 

19 amounts deposited in the Fund— 

20 ‘‘(i) shall be credited as offsetting col21 lections; 

22 ‘‘(ii) shall be available for expenditure 

23 for purposes of carrying out inspections of 

24 outer Continental Shelf facilities (including 

25 mobile offshore drilling units) and the adVerDate Mar 15 2010 07:18 Jul 24, 2013 Jkt 029200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 E:\BILLS\H2784.IH H2784

jbell on DSK7SPTVN1PROD with BILLS
44 

•HR 2784 IH

1 ministration of the inspection program 

2 under this section; 

3 ‘‘(iii) shall be available only to the ex4 tent provided for in advance in an appro5 priations Act; and 

6 ‘‘(iv) shall remain available until ex7 pended. 

8 ‘‘(B) USE FOR FIELD OFFICES.—Not less 

9 than 75 percent of amounts in the Fund may 

10 be appropriated for use only for the respective 

11 Department of the Interior field offices where 

12 the amounts were originally assessed as fees. 

13 ‘‘(4) INITIAL FEES.—Fees shall be established 

14 under this subsection for the fiscal year in which 

15 this subsection takes effect and the subsequent 10 

16 years, and shall not be raised without advise and 

17 consent of the Congress, except as determined by the 

18 Secretary to be appropriate as an adjustment equal 

19 to the percentage by which the Consumer Price 

20 Index for the month of June of the calendar year 

21 preceding the adjustment exceeds the Consumer 

22 Price Index for the month of June of the calendar 

23 year in which the claim was determined or last ad24 justed. 


jbell on DSK7SPTVN1PROD with BILLS
45 

•HR 2784 IH

1 ‘‘(5) ANNUAL FEES.—Annual fees shall be col2 lected under this subsection for facilities that are 

3 above the waterline, excluding drilling rigs, and are 

4 in place at the start of the fiscal year. Fees for each 

5 fiscal year in the period of fiscal years 2013 through 

6 2022 shall be— 

7 ‘‘(A) $10,500 for facilities with no wells, 

8 but with processing equipment or gathering 

9 lines; 

10 ‘‘(B) $17,000 for facilities with 1 to 10 

11 wells, with any combination of active or inactive 

12 wells; and 

13 ‘‘(C) $31,500 for facilities with more than 

14 10 wells, with any combination of active or in15 active wells. 

16 ‘‘(6) FEES FOR DRILLING RIGS.—Fees for drill17 ing rigs shall be assessed under this subsection for 

18 all inspections completed in fiscal years 2013 

19 through 2022. Fees for fiscal year 2013 shall be: 

20 ‘‘(A) $30,500 per inspection for rigs oper21 ating in water depths of 1,000 feet or more; 

22 and 

23 ‘‘(B) $16,700 per inspection for rigs oper24 ating in water depths of less than 1,000 feet. 


jbell on DSK7SPTVN1PROD with BILLS
46 

•HR 2784 IH

1 ‘‘(7) BILLING.—The Secretary shall bill des2 ignated operators under paragraph (5) within 60 

3 days after the date of the inspection, with payment 

4 required within 30 days of billing. The Secretary 

5 shall bill designated operators under paragraph (6) 

6 within 30 days of the end of the month in which the 

7 inspection occurred, with payment required within 

8 30 days after billing. 

9 ‘‘(8) SUNSET.—No fee may be collected under 

10 this subsection for any fiscal year after fiscal year 

11 2022. 

12 ‘‘(9) ANNUAL REPORTS.— 

13 ‘‘(A) IN GENERAL.—Not later than 60 

14 days after the end of each fiscal year beginning 

15 with fiscal year 2013, the Secretary shall sub16 mit to the Committee on Energy and Natural 

17 Resources of the Senate and the Committee on 

18 Natural Resources of the House of Representa19 tives a report on the operation of the Fund dur20 ing the fiscal year. 

21 ‘‘(B) CONTENTS.—Each report shall in22 clude, for the fiscal year covered by the report, 

23 the following: 

24 ‘‘(i) A statement of the amounts de25 posited into the Fund. 


jbell on DSK7SPTVN1PROD with BILLS
47 

•HR 2784 IH

1 ‘‘(ii) A description of the expenditures 

2 made from the Fund for the fiscal year, in3 cluding the purpose of the expenditures 

4 and the additional hiring of personnel. 

5 ‘‘(iii) A statement of the balance re6 maining in the Fund at the end of the fis7 cal year. 

8 ‘‘(iv) An accounting of pace of permit 

9 approvals. 

10 ‘‘(v) If fee increases are proposed 

11 after the initial 10-year period referred to 

12 in paragraph (5), a proper accounting of 

13 the potential adverse economic impacts 

14 such fee increases will have on offshore 

15 economic activity and overall production, 

16 conducted by the Secretary. 

17 ‘‘(vi) Recommendations to increase 

18 the efficacy and efficiency of offshore in19 spections. 

20 ‘‘(vii) Any corrective actions levied 

21 upon offshore inspectors as a result of any 

22 form of misconduct.’’. 


jbell on DSK7SPTVN1PROD with BILLS
48 

•HR 2784 IH

1 TITLE V—UNITED STATES 

2 TERRITORIES 

3 SEC. 501. APPLICATION OF OUTER CONTINENTAL SHELF 

4 LANDS ACT WITH RESPECT TO TERRITORIES 

5 OF THE UNITED STATES. 

6 Section 2 of the Outer Continental Shelf Lands Act 

7 (43 U.S.C. 1331) is amended— 

8 (1) in paragraph (a), by inserting after ‘‘con9 trol’’ the following: ‘‘or lying within the United 

10 States exclusive economic zone and the Continental 

11 Shelf adjacent to any territory of the United 

12 States’’; 

13 (2) in paragraph (p), by striking ‘‘and’’ after 

14 the semicolon at the end; 

15 (3) in paragraph (q), by striking the period at 

16 the end and inserting ‘‘; and’’; and 

17 (4) by adding at the end the following: 

18 ‘‘(r) The term ‘State’ includes each territory of the 

19 United States.’’. 


jbell on DSK7SPTVN1PROD with BILLS
49 

•HR 2784 IH

1 TITLE VI—INFRASTRUCTURE 

2 REVENUE BONDS 

3 SEC. 601. LEVERAGING INFRASTRUCTURE TRUST ACCOUNT 

4 WITH INFRASTRUCTURE REVENUE BONDS. 

5 (a) IN GENERAL.—Subchapter I of chapter 31 of 

6 subtitle III of title 31, United States Code, is amended 

7 by inserting after section 3102 the following new section: 

8 ‘‘§ 3102A. Infrastructure revenue bonds 

9 ‘‘(a) IN GENERAL.—With the approval of the Presi10 dent, the Secretary of the Treasury may borrow for high11 way and transportation project expenditures, and water 

12 infrastructure expenditures, authorized by law after the 

13 date of the enactment of this section and may issue inter14 est-bearing bonds for the amounts borrowed and may buy, 

15 redeem, and make refunds under section 3111 of this title. 

16 The Secretary may prescribe conditions under section 

17 3121 of this title, except that such bonds shall mature 

18 20 years from the date of issue. 

19 ‘‘(b) FINANCED WITH INFRASTRUCTURE TRUST AC20 COUNT.—Such obligations, and the interest thereon, are 

21 not guaranteed by the United States and shall be paid 

22 solely from amounts deposited in the Infrastructure Trust 

23 Account established by paragraph (6)(A)(ii) of section 

24 8(g) of the Outer Continental Shelf Lands Act (43 U.S.C. 

25 1337(g)). 


jbell on DSK7SPTVN1PROD with BILLS
50 

•HR 2784 IH

1 ‘‘(c) LIMITATION.—The aggregate face amount of ob2 ligations issued during a calendar year under subsection 

3 (a) shall not exceed— 

4 ‘‘(1) $25,000,000,000 for each of calendar 

5 years 2014 through 2019; and 

6 ‘‘(2) $0 for each calendar year thereafter. 

7 ‘‘(d) REDEMPTION.—The Government may redeem 

8 any part of a series of bonds before maturity by giving 

9 at least 4 months’ notice.’’. 

10 (b) CLERICAL AMENDMENT.—The table of sections 

11 subchapter I of chapter 31 of subtitle III of title 31, 

12 United States Code, is amended by inserting after section 

13 3102 the following new item: 

‘‘3102A. Infrastructure revenue bonds.’’. 

14 SEC. 602. NINETY-FIVE PERCENT OF BOND PROCEEDS FOR 

15 HIGHWAY TRUST FUND. 

16 (a) IN GENERAL.—Subsection (b) of section 9503 of 

17 the Internal Revenue Code of 1986 is amended by adding 

18 at the end the following new paragraph: 

19 ‘‘(7) INFRASTRUCTURE REVENUE BOND PRO20 CEEDS.—There are hereby appropriated to the 

21 Highway Trust Fund amounts equivalent to 95 per22 cent of any proceeds from the issuance of infrastruc23 ture revenue bonds under section 3102A of title 31, 

24 United States Code.’’. 


jbell on DSK7SPTVN1PROD with BILLS
51 

•HR 2784 IH

1 (b) CLERICAL AMENDMENT.—The heading for sub2 section (b) of section 9503 of such Code is amended by 

3 striking ‘‘TAXES AND PENALTIES’’ and inserting ‘‘TAXES, 

4 PENALTIES, AND BOND PROCEEDS’’. 

5 SEC. 603. FIVE PERCENT OF BOND PROCEEDS FOR STATE 

6 REVOLVING LOAN FUNDS FOR WASTEWATER 

7 TREATMENT FACILITIES AND DRINKING 

8 WATER FACILITIES. 

9 (a) WASTEWATER TREATMENT FACILITIES.— 

10 Amounts equivalent to 2.5 percent of any proceeds from 

11 the issuance of infrastructure revenue bonds under section 

12 3102A of title 31, United States Code, shall be made 

13 available to the Administrator of the Environmental Pro14 tection Agency for making capitalization grants to eligible 

15 States under title VI of the Federal Water Pollution Con16 trol Act (33 U.S.C. 1381 et seq.). 

17 (b) DRINKING WATER FACILITIES.—Amounts equiv18 alent to 2.5 percent of any proceeds from the issuance of 

19 infrastructure revenue bonds under section 3102A of title 

20 31, United States Code, shall be made available to the 

21 Administrator of the Environmental Protection Agency for 

22 making capitalization grants to eligible States under sec23 tion 1452 of the Safe Drinking Water Act (42 U.S.C. 

24 300j–12). 

Æ 


jbell on DSK7SPTVN1PROD with BILLS