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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3516 Introduced in Senate (IS)]

111th CONGRESS
  2d Session
                                S. 3516

To amend the Outer Continental Shelf Lands Act to reform the management 
of energy and mineral resources on the Outer Continental Shelf, and for 
                            other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             June 21, 2010

 Mr. Bingaman (for himself, Ms. Murkowski, and Mr. Dorgan) introduced 
the following bill; which was read twice and referred to the Committee 
                    on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL

 
To amend the Outer Continental Shelf Lands Act to reform the management 
of energy and mineral resources on the Outer Continental Shelf, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Outer Continental 
Shelf Reform Act of 2010''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.
Sec. 4. National policy for the outer Continental Shelf.
Sec. 5. Structural reform of outer Continental Shelf program 
                            management.
Sec. 6. Safety, environmental, and financial reform of the Outer 
                            Continental Shelf Lands Act.
Sec. 7. Reform of other laws.
Sec. 8. Savings provisions.
Sec. 9. Budgetary effects.

SEC. 2. PURPOSES.

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

SEC. 3. DEFINITIONS.

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

SEC. 4. NATIONAL POLICY FOR THE OUTER CONTINENTAL SHELF.

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

SEC. 5. STRUCTURAL REFORM OF OUTER CONTINENTAL SHELF PROGRAM 
              MANAGEMENT.

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

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

    ``(a) Leasing, Permitting, and Regulation Bureaus.--
            ``(1) Establishment of bureaus.--
                    ``(A) In general.--Subject to the discretion 
                granted by Reorganization Plan Number 3 of 1950 (64 
                Stat. 1262; 43 U.S.C. 1451 note), the Secretary shall 
                establish in the Department of the Interior not more 
                than 2 bureaus to carry out the leasing, permitting, 
                and safety and environmental regulatory functions 
                vested in the Secretary by this Act and the Federal Oil 
                and Gas Royalty Management Act of 1982 (30 U.S.C. 1701 
                et seq.) related to the outer Continental Shelf.
                    ``(B) Conflicts of interest.--In establishing the 
                bureaus under subparagraph (A), the Secretary shall 
                ensure, to the maximum extent practicable, that any 
                potential organizational conflicts of interest related 
                to leasing, revenue creation, environmental protection, 
                and safety are eliminated.
            ``(2) Director.--Each bureau shall be headed by a Director, 
        who shall be appointed by the President, by and with the advice 
        and consent of the Senate.
            ``(3) Compensation.--Each Director shall be compensated at 
        the rate provided for level V of the Executive Schedule under 
        section 5316 of title 5, United States Code.
            ``(4) Qualifications.--Each Director shall be a person who, 
        by reason of professional background and demonstrated ability 
        and experience, is specially qualified to carry out the duties 
        of the office.
    ``(b) Royalty and Revenue Office.--
            ``(1) Establishment of office.--Subject to the discretion 
        granted by Reorganization Plan Number 3 of 1950 (64 Stat. 1262; 
        43 U.S.C. 1451 note), the Secretary shall establish in the 
        Department of the Interior an office to carry out the royalty 
        and revenue management functions vested in the Secretary by 
        this Act and the Federal Oil and Gas Royalty Management Act of 
        1982 (30 U.S.C. 1701 et seq.).
            ``(2) Director.--The office established under paragraph (1) 
        shall be headed by a Director, who shall be appointed by the 
        President, by and with the advice and consent of the Senate.
            ``(3) Compensation.--The Director shall be compensated at 
        the rate provided for level V of the Executive Schedule under 
        section 5316 of title 5, United States Code.
            ``(4) Qualifications.--The Director shall be a person who, 
        by reason of professional background and demonstrated ability 
        and experience, is specially qualified to carry out the duties 
        of the office.
    ``(c) OCS Safety and Environmental Advisory Board.--
            ``(1) Establishment.--The Secretary shall establish, under 
        the Federal Advisory Committee Act (5 U.S.C. App.), an Outer 
        Continental Shelf Safety and Environmental Advisory Board 
        (referred to in this subsection as the `Board'), to provide the 
        Secretary and the Directors of the bureaus established under 
        this section with independent scientific and technical advice 
        on safe and environmentally compliant energy and mineral 
        resource exploration, development, and production activities.
            ``(2) Membership.--
                    ``(A) Size.--
                            ``(i) In general.--The Board shall consist 
                        of not more than 12 members, chosen to reflect 
                        a range of expertise in scientific, 
                        engineering, management, and other disciplines 
                        related to safe and environmentally compliant 
                        energy and mineral resource exploration, 
                        development, and production activities.
                            ``(ii) Consultation.--The Secretary shall 
                        consult with the National Academy of Sciences 
                        and the National Academy of Engineering to 
                        identify potential candidates for membership on 
                        the Board.
                    ``(B) Term.--The Secretary shall appoint Board 
                members to staggered terms of not more than 4 years, 
                and shall not appoint a member for more than 2 
                consecutive terms.
                    ``(C) Chair.--The Secretary shall appoint the Chair 
                for the Board.
            ``(3) Meetings.--The Board shall--
                    ``(A) meet not less than 3 times per year; and
                    ``(B) at least once per year, shall host a public 
                forum to review and assess the overall safety and 
                environmental performance of outer Continental Shelf 
                energy and mineral resource activities.
            ``(4) Reports.--Reports of the Board shall--
                    ``(A) be submitted to Congress; and
                    ``(B) made available to the public in an 
                electronically accessible form.
            ``(5) Travel expenses.--Members of the Board, other than 
        full-time employees of the Federal Government, while attending 
        a meeting of the Board or while otherwise serving at the 
        request of the Secretary or the Director while serving away 
        from their homes or regular places of business, may be allowed 
        travel expenses, including per diem in lieu of subsistence, as 
        authorized by section 5703 of title 5, United States Code, for 
        individuals in the Federal Government serving without pay.
    ``(d) Special Personnel Authorities.--
            ``(1) Direct hiring authority for critical personnel.--
                    ``(A) In general.--Notwithstanding sections 3104, 
                3304, and 3309 through 3318 of title 5, United States 
                Code, the Secretary may, upon a determination that 
                there is a severe shortage of candidates or a critical 
                hiring need for particular positions, recruit and 
                directly appoint highly qualified accountants, 
                scientists, engineers, or critical technical personnel 
                into the competitive service, as officers or employees 
                of any of the organizational units established under 
                this section.
                    ``(B) Requirements.--In exercising the authority 
                granted under subparagraph (A), the Secretary shall 
                ensure that any action taken by the Secretary--
                            ``(i) is consistent with the merit 
                        principles of chapter 23 of title 5, United 
                        States Code; and
                            ``(ii) complies with the public notice 
                        requirements of section 3327 of title 5, United 
                        States Code.
            ``(2) Critical pay authority.--
                    ``(A) In general.--Notwithstanding section 5377 of 
                title 5, United States Code, and without regard to the 
                provisions of that title governing appointments in the 
                competitive service or the Senior Executive Service and 
                chapters 51 and 53 of that title (relating to 
                classification and pay rates), the Secretary may 
                establish, fix the compensation of, and appoint 
                individuals to critical positions needed to carry out 
                the functions of any of the organizational units 
                established under this section, if the Secretary 
                certifies that--
                            ``(i) the positions--
                                    ``(I) require expertise of an 
                                extremely high level in a scientific or 
                                technical field; and
                                    ``(II) any of the organizational 
                                units established in this section would 
                                not successfully accomplish an 
                                important mission without such an 
                                individual; and
                            ``(ii) exercise of the authority is 
                        necessary to recruit an individual 
                        exceptionally well qualified for the position.
                    ``(B) Limitations.--The authority granted under 
                subparagraph (A) shall be subject to the following 
                conditions:
                            ``(i) The number of critical positions 
                        authorized by subparagraph (A) may not exceed 
                        40 at any 1 time in either of the bureaus 
                        established under this section.
                            ``(ii) The term of an appointment under 
                        subparagraph (A) may not exceed 4 years.
                            ``(iii) An individual appointed under 
                        subparagraph (A) may not have been an employee 
                        of the Department of the Interior during the 2-
                        year period prior to the date of appointment.
                            ``(iv) Total annual compensation for any 
                        individual appointed under subparagraph (A) may 
                        not exceed the highest total annual 
                        compensation payable at the rate determined 
                        under section 104 of title 3, United States 
                        Code.
                            ``(v) An individual appointed under 
                        subparagraph (A) may not be considered to be an 
                        employee for purposes of subchapter II of 
                        chapter 75 of title 5, United States Code.
                    ``(C) Notification.--Each year, the Secretary shall 
                submit to Congress a notification that lists each 
                individual appointed under this paragraph.
            ``(3) Reemployment of civilian retirees.--
                    ``(A) In general.--Notwithstanding part 553 of 
                title 5, Code of Federal Regulations (relating to 
                reemployment of civilian retirees to meet exceptional 
                employment needs), or successor regulations, the 
                Secretary may approve the reemployment of an individual 
                to a particular position without reduction or 
                termination of annuity if the hiring of the individual 
                is necessary to carry out a critical function of any of 
                the organizational units established under this section 
                for which suitably qualified candidates do not exist.
                    ``(B) Limitations.--An annuitant hired with full 
                salary and annuities under the authority granted by 
                subparagraph (A)--
                            ``(i) shall not be considered an employee 
                        for purposes of subchapter III of chapter 83 
                        and chapter 84 of title 5, United States Code;
                            ``(ii) may not elect to have retirement 
                        contributions withheld from the pay of the 
                        annuitant;
                            ``(iii) may not use any employment under 
                        this paragraph as a basis for a supplemental or 
                        recomputed annuity; and
                            ``(iv) may not participate in the Thrift 
                        Savings Plan under subchapter III of chapter 84 
                        of title 5, United States Code.
                    ``(C) Limitation on term.--The term of employment 
                of any individual hired under subparagraph (A) may not 
                exceed an initial term of 2 years, with an additional 
                2-year appointment under exceptional circumstances.
    ``(e) Continuity of Authority.--Subject to the discretion granted 
by Reorganization Plan Number 3 of 1950 (64 Stat. 1262; 43 U.S.C. 1451 
note), any reference in any law, rule, regulation, directive, or 
instruction, or certificate or other official document, in force 
immediately prior to the date of enactment of this section--
            ``(1) to the Minerals Management Service that pertains to 
        any of the duties and authorities described in this section 
        shall be deemed to refer and apply to the appropriate bureaus 
        and offices established under this section;
            ``(2) to the Director of the Minerals Management Service 
        that pertains to any of the duties and authorities described in 
        this section shall be deemed to refer and apply to the Director 
        of the bureau or office under this section to whom the 
        Secretary has assigned the respective duty or authority; and
            ``(3) to any other position in the Minerals Management 
        Service that pertains to any of the duties and authorities 
        described in this section shall be deemed to refer and apply to 
        that same or equivalent position in the appropriate bureau or 
        office established under this section.''.
    (b) Conforming Amendment.--Section 5316 of title 5, United States 
Code, is amended by striking ``Director, Bureau of Mines, Department of 
the Interior'' and inserting the following:
            ``Bureau Directors, Department of the Interior (2).
            ``Director, Royalty and Revenue Office, Department of the 
        Interior.''.

SEC. 6. SAFETY, ENVIRONMENTAL, AND FINANCIAL REFORM OF THE OUTER 
              CONTINENTAL SHELF LANDS ACT.

    (a) Definitions.--Section 2 of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1331) is amended by adding at the end the following:
    ``(r) Safety Case.--The term `safety case' means a body of evidence 
that provides a basis for determining whether a system is adequately 
safe for a given application in a given environment.''.
    (b) Administration of Leasing.--Section 5(a) of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1334(a)) is amended in the 
second sentence--
            (1) by striking ``The Secretary may at any time'' and 
        inserting ``The Secretary shall''; and
            (2) by inserting after ``provide for'' the following: 
        ``operational safety, the protection of the marine and coastal 
        environment,''.
    (c) Maintenance of Leases.--Section 6 of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1335) is amended by adding at the end the 
following:
    ``(f) Review of Bond and Surety Amounts.--Not later than May 1, 
2011, and every 5 years thereafter, the Secretary shall--
            ``(1) review the minimum bond amounts for mineral leases 
        under subsection (a)(11); and
            ``(2) set any bonds, surety, or other evidence of financial 
        responsibility required in amounts adequate to permit lessees 
        to fulfill all obligations under this Act or the Oil Pollution 
        Act of 1990 (33 U.S.C. 2701 et seq.).
    ``(g) Periodic Fiscal Reviews and Reports.--
            ``(1) Royalty rates.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this subsection and every 3 years 
                thereafter, the Secretary shall carry out a review of, 
                and prepare a report that describes--
                            ``(i) the royalty and rental rates included 
                        in new offshore oil and gas leases and the 
                        rationale for the rates;
                            ``(ii) whether, in the view of the 
                        Secretary, the royalty and rental rates 
                        described in subparagraph (A) would yield a 
                        fair return to the public while promoting the 
                        production of oil and gas resources in a timely 
                        manner; and
                            ``(iii) whether, based on the review, the 
                        Secretary intends to modify the royalty or 
                        rental rates.
                    ``(B) Public participation.--In carrying out a 
                review and preparing a report under subparagraph (A), 
                the Secretary shall provide to the public an 
                opportunity to participate.
            ``(2) Comparative review of fiscal system.--
                    ``(A) In general.--Not later than 2 years after the 
                date of enactment of this subsection and every 5 years 
                thereafter, the Secretary in consultation with the 
                Secretary of the Treasury, shall carry out a 
                comprehensive review of all components of the Federal 
                offshore oil and gas fiscal system, including 
                requirements for bonus bids, rental rates, royalties, 
                oil and gas taxes, and oil and gas fees.
                    ``(B) Inclusions.--The review shall include--
                            ``(i) information and analyses comparing 
                        the offshore bonus bids, rents, royalties, 
                        taxes, and fees of the Federal Government to 
                        the offshore bonus bids, rents, royalties, 
                        taxes, and fees of other resource owners 
                        (including States and foreign countries); and
                            ``(ii) an assessment of the overall 
                        offshore oil and gas fiscal system in the 
                        United States, as compared to foreign 
                        countries.
                    ``(C) Independent advisory committee.--In carrying 
                out a review under this paragraph, the Secretary shall 
                convene and seek the advice of an independent advisory 
                committee comprised of oil and gas and fiscal experts 
                from States, Indian tribes, academia, the energy 
                industry, and appropriate nongovernmental 
                organizations.
                    ``(D) Report.--The Secretary shall prepare a report 
                that contains--
                            ``(i) the contents and results of the 
                        review carried out under this paragraph for the 
                        period covered by the report; and
                            ``(ii) any recommendations of the Secretary 
                        and the Secretary of the Treasury based on the 
                        contents and results of the review.
            ``(3) Report deadline.--Not later than 30 days after the 
        date on which the Secretary completes each report under this 
        subsection, the Secretary shall submit copies of the report 
        to--
                    ``(A) the Committee on Energy and Natural Resources 
                of the Senate;
                    ``(B) the Committee on Finance of the Senate;
                    ``(C) the Committee on Natural Resources of the 
                House of Representatives; and
                    ``(D) the Committee on Ways and Means of the House 
                of Representatives.''.
    (d) Leases, Easements, and Rights-of-Way.--Section 8 of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1337) is amended by striking 
subsection (d) and inserting the following:
    ``(d) Disqualification From Bidding.--No bid for a lease may be 
submitted by any entity that the Secretary finds, after notice and 
opportunity for a hearing--
            ``(1) is not meeting due diligence, safety, or 
        environmental requirements on other leases; or
            ``(2)(A) is a responsible party for a vessel or a facility 
        from which oil is discharged, for purposes of section 1002 of 
        the Oil Pollution Act of 1990 (33 U.S.C. 2702); and
            ``(B) has failed to meet the obligations of the responsible 
        party under that Act to provide compensation for covered 
        removal costs and damages.''.
    (e) Exploration Plans.--Section 11 of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1340) is amended--
            (1) in subsection (c)--
                    (A) in the fourth sentence of paragraph (1), by 
                striking ``within thirty days of its submission'' and 
                inserting ``by the deadline described in paragraph 
                (5)'';
                    (B) by striking paragraph (3) and inserting the 
                following:
            ``(3) Minimum requirements.--
                    ``(A) In general.--An exploration plan submitted 
                under this subsection shall include, in such degree of 
                detail as the Secretary by regulation may require--
                            ``(i) a complete description and schedule 
                        of the exploration activities to be undertaken;
                            ``(ii) a description of the equipment to be 
                        used for the exploration activities, 
                        including--
                                    ``(I) a description of the drilling 
                                unit;
                                    ``(II) a statement of the design 
                                and condition of major safety-related 
                                pieces of equipment;
                                    ``(III) a description of any new 
                                technology to be used; and
                                    ``(IV) a statement demonstrating 
                                that the equipment to be used meets the 
                                best available technology requirements 
                                under section 21(b);
                            ``(iii) a map showing the location of each 
                        well to be drilled;
                            ``(iv)(I) a scenario for the potential 
                        blowout of the well involving the highest 
                        potential volume of liquid hydrocarbons; and
                            ``(II) a complete description of a response 
                        plan to control the blowout and manage the 
                        accompanying discharge of hydrocarbons, 
                        including--
                                    ``(aa) the technology and timeline 
                                for regaining control of the well; and
                                    ``(bb) the strategy, organization, 
                                and resources necessary to avoid harm 
                                to the environment and human health 
                                from hydrocarbons; and
                            ``(v) any other information determined to 
                        be relevant by the Secretary.
                    ``(B) Deepwater wells.--
                            ``(i) In general.--Before conducting 
                        exploration activities in water depths greater 
                        than 500 feet, the holder of a lease shall 
                        submit to the Secretary for approval a 
                        deepwater operations plan prepared by the 
                        lessee in accordance with this subparagraph.
                            ``(ii) Technology requirements.--A 
                        deepwater operations plan under this 
                        subparagraph shall be based on the best 
                        available technology to ensure safety in 
                        carrying out the exploration activity and the 
                        blowout response plan.
                            ``(iii) Systems analysis required.--The 
                        Secretary shall not approve a deepwater 
                        operations plan under this subparagraph unless 
                        the plan includes a technical systems analysis 
                        of--
                                    ``(I) the safety of the proposed 
                                exploration activity;
                                    ``(II) the blowout prevention 
                                technology; and
                                    ``(III) the blowout and spill 
                                response plans.''; and
                    (C) by adding at the end the following:
            ``(5) Deadline for approval.--
                    ``(A) In general.--In the case of a lease issued 
                under a sale held after March 17, 2010, the deadline 
                for approval of an exploration plan referred to in the 
                fourth sentence of paragraph (1) is--
                            ``(i) the date that is 90 days after the 
                        date on which the plan or the modifications to 
                        the plan are submitted; or
                            ``(ii) the date that is not later than an 
                        additional 180 days after the deadline 
                        described in clause (i), if the Secretary makes 
                        a finding that additional time is necessary to 
                        complete any environmental, safety, or other 
                        reviews.
                    ``(B) Existing leases.--In the case of a lease 
                issued under a sale held on or before March 17, 2010, 
                the Secretary, with the consent of the holder of the 
                lease, may extend the deadline applicable to the lease 
                for such additional time as the Secretary determines is 
                necessary to complete any environmental, safety, or 
                other reviews.'';
            (2) by resdesignating subsections (e) through (h) as 
        subsections (f) through (i), respectively; and
            (3) by striking subsection (d) and inserting the following:
    ``(d) Drilling Permits.--
            ``(1) In general.--The Secretary shall, by regulation, 
        require that any lessee operating under an approved exploration 
        plan obtain a permit--
                    ``(A) before the lessee drills a well in accordance 
                with the plan; and
                    ``(B) before the lessee significantly modifies the 
                well design originally approved by the Secretary.
            ``(2) Engineering review required.--The Secretary may not 
        grant any drilling permit until the date of completion of a 
        full engineering review of the well system, including a 
        determination that--
                    ``(A) critical safety systems (including blowout 
                prevention) will use best available technology; and
                    ``(B) blowout prevention systems will include 
                redundancy and remote triggering capability.
            ``(3) Modification review required.--The Secretary may not 
        approve any modification of a permit without a determination, 
        after an additional engineering review, that the modification 
        will not degrade the safety of the well system previously 
        approved.
            ``(4) Operator safety and environmental management 
        required.--The Secretary may not grant any drilling permit or 
        modification of the permit until the date of completion and 
        approval of a safety and environmental management plan that--
                    ``(A) is to be used by the operator during all well 
                operations; and
                    ``(B) includes--
                            ``(i) a description of the expertise and 
                        experience level of crew members who will be 
                        present on the rig; and
                            ``(ii) designation of at least 2 
                        environmental and safety managers that--
                                    ``(I) are employees of the 
                                operator;
                                    ``(II) would be present on the rig 
                                at all times; and
                                    ``(III) have overall responsibility 
                                for the safety and environmental 
                                management of the well system and spill 
                                response plan; and
                    ``(C) not later than May 1, 2012, requires that all 
                employees on the rig meet the training and experience 
                requirements under section 21(b)(4).
    ``(e) Disapproval of Exploration Plan.--
            ``(1) In general.--The Secretary shall disapprove an 
        exploration plan submitted under this section if the Secretary 
        determines that, because of exceptional geological conditions 
        in the lease areas, exceptional resource values in the marine 
        or coastal environment, or other exceptional circumstances, 
        that--
                    ``(A) implementation of the exploration plan would 
                probably cause serious harm or damage to life 
                (including fish and other aquatic life), property, 
                mineral deposits, national security or defense, or the 
                marine, coastal or human environments;
                    ``(B) the threat of harm or damage would not 
                disappear or decrease to an acceptable extent within a 
                reasonable period of time; and
                    ``(C) the advantages of disapproving the 
                exploration plan outweigh the advantages of 
                exploration.
            ``(2) Compensation.--If an exploration plan is disapproved 
        under this subsection, the provisions of subparagraphs (B) and 
        (C) of section 25(h)(2) shall apply to the lease and the plan 
        or any modified plan, except that the reference in section 
        25(h)(2)(C) to a development and production plan shall be 
        considered to be a reference to an exploration plan.''.
    (f) Outer Continental Shelf Leasing Program.--Section 18 of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1344) is amended--
            (1) in subsection (a)--
                    (A) in the second sentence, by inserting after 
                ``national energy needs'' the following: ``and the need 
                for the protection of the marine and coastal 
                environment and resources'';
                    (B) in paragraph (1), by striking ``considers'' and 
                inserting ``gives equal consideration to''; and
                    (C) in paragraph (3), by striking ``, to the 
                maximum extent practicable,'';
            (2) in subsection (b)--
                    (A) in paragraph (3), by striking ``and'' at the 
                end;
                    (B) in paragraph (4), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(5) provide technical review and oversight of the 
        exploration plan and a systems review of the safety of the well 
        design and other operational decisions;
            ``(6) conduct regular and thorough safety reviews and 
        inspections, and;
            ``(7) enforce all applicable laws (including 
        regulations).'';
            (3) in the second sentence of subsection (d)(2), by 
        inserting ``, the head of an interested Federal agency,'' after 
        ``Attorney General'';
            (4) in the first sentence of subsection (g), by inserting 
        before the period at the end the following: ``, including 
        existing inventories and mapping of marine resources previously 
        undertaken by the Department of the Interior and the National 
        Oceanic and Atmospheric Administration, information provided by 
        the Department of Defense, and other available data regarding 
        energy or mineral resource potential, navigation uses, 
        fisheries, aquaculture uses, recreational uses, habitat, 
        conservation, and military uses on the outer Continental 
        Shelf''; and
            (5) by adding at the end the following:
    ``(i) Research and Development.--
            ``(1) In general.--The Secretary shall carry out a program 
        of research and development to ensure the continued improvement 
        of methodologies for characterizing resources of the outer 
        Continental Shelf and conditions that may affect the ability to 
        develop and use those resources in a safe, sound, and 
        environmentally responsible manner.
            ``(2) Inclusions.--Research and development activities 
        carried out under paragraph (1) may include activities to 
        provide accurate estimates of energy and mineral reserves and 
        potential on the outer Continental Shelf and any activities 
        that may assist in filling gaps in environmental data needed to 
        develop each leasing program under this section.
            ``(3) Leasing activities.--Research and development 
        activities carried out under paragraph (1) shall not be 
        considered to be leasing or pre-leasing activities for purposes 
        of this Act.''.
    (g) Environmental Studies.--Section 20 of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1346) is amended--
            (1) by redesignating subsections (a) through (f) as 
        subsections (b) through (g), respectively;
            (2) by inserting before subsection (b) (as so redesignated) 
        the following:
    ``(a) Comprehensive and Independent Studies.--
            ``(1) In general.--The Secretary shall develop and carry 
        out programs for the collection, evaluation, assembly, 
        analysis, and dissemination of environmental and other resource 
        data that are relevant to carrying out the purposes of this 
        Act.
            ``(2) Scope of research.--The programs under this 
        subsection shall include--
                    ``(A) the gathering of baseline data in areas 
                before energy or mineral resource development 
                activities occur;
                    ``(B) ecosystem research and monitoring studies to 
                support integrated resource management decisions; and
                    ``(C) the improvement of scientific understanding 
                of the fate, transport, and effects of discharges and 
                spilled materials, including deep water hydrocarbon 
                spills, in the marine environment.
            ``(3) Use of data.--The Secretary shall ensure that 
        information from the studies carried out under this section--
                    ``(A) informs the management of energy and mineral 
                resources on the outer Continental Shelf including any 
                areas under consideration for oil and gas leasing; and
                    ``(B) contributes to a broader coordination of 
                energy and mineral resource development activities 
                within the context of best available science.
            ``(4) Independence.--The Secretary shall create a program 
        within the appropriate bureau established under section 32 that 
        shall--
                    ``(A) be programmatically separate and distinct 
                from the leasing program;
                    ``(B) carry out the environmental studies under 
                this section;
                    ``(C) conduct additional environmental studies 
                relevant to the sound management of energy and mineral 
                resources on the outer Continental Shelf;
                    ``(D) provide for external scientific review of 
                studies under this section, including through 
                appropriate arrangements with the National Academy of 
                Sciences; and
                    ``(E) subject to the restrictions of subsections 
                (g) and (h) of section 18, make available to the public 
                studies conducted and data gathered under this 
                section.''; and
            (3) in the first sentence of subsection (b)(1) (as so 
        redesignated), by inserting ``every 3 years'' after ``shall 
        conduct''.
    (h) Safety Research and Regulations.--Section 21 of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1347) is amended--
            (1) in the first sentence of subsection (a), by striking 
        ``Upon the date of enactment of this section,'' and inserting 
        ``Not later than May 1, 2011, and every 3 years thereafter,'';
            (2) by striking subsection (b) and inserting the following:
    ``(b) Best Available Technologies and Practices.--
            ``(1) In general.--In exercising respective 
        responsibilities under this Act, the Secretary, and the 
        Secretary of the Department in which the Coast Guard is 
        operating, shall require, on all new drilling and production 
        operations and, to the maximum extent practicable, on existing 
        operations, the use of the best available and safest 
        technologies and practices, if the failure of equipment would 
        have a significant effect on safety, health, or the 
        environment.
            ``(2) Identification of best available technologies.--Not 
        later than May 1, 2011, and not later than every 3 years 
        thereafter, the Secretary shall identify and publish an updated 
        list of best available technologies for key areas of well 
        design and operation, including blowout prevention and blowout 
        and oil spill response.
            ``(3) Safety case.--Not later than May 1, 2011, the 
        Secretary shall promulgate regulations requiring a safety case 
        be submitted along with each new application for a permit to 
        drill on the outer Continental Shelf.
            ``(4) Employee training.--
                    ``(A) In general.--Not later than May 1, 2011, the 
                Secretary shall promulgate regulations setting 
                standards for training for all workers on offshore 
                facilities (including mobile offshore drilling units) 
                conducting energy and mineral resource exploration, 
                development, and production operations on the outer 
                Continental Shelf.
                    ``(B) Requirements.--The training standards under 
                this paragraph shall require that employers of workers 
                described in subparagraph (A)--
                            ``(i) establish training programs approved 
                        by the Secretary; and
                            ``(ii) demonstrate that employees involved 
                        in the offshore operations meet standards that 
                        demonstrate the aptitude of the employees in 
                        critical technical skills.
                    ``(C) Experience.--The training standards under 
                this section shall require that any offshore worker 
                with less than 5 years of applied experience in 
                offshore facilities operations pass a certification 
                requirement after receiving the appropriate training.
                    ``(D) Monitoring training courses.--The Secretary 
                shall ensure that Department employees responsible for 
                inspecting offshore facilities monitor, observe, and 
                report on training courses established under this 
                paragraph, including attending a representative number 
                of the training sessions, as determined by the 
                Secretary.''; and
            (3) by adding at the end the following:
    ``(g) Technology Research and Risk Assessment Program.--
            ``(1) In general.--The Secretary shall carry out a program 
        of research, development, and risk assessment to address 
        technology and development issues associated with outer 
        Continental Shelf energy and mineral resource activities, with 
        the primary purpose of informing the role of research, 
        development, and risk assessment relating to safety, 
        environmental protection, and spill response.
            ``(2) Specific areas of focus.--The program under this 
        subsection shall include research, development, and other 
        activities related to--
                    ``(A) risk assessment, using all available data 
                from safety and compliance records both within the 
                United States and internationally;
                    ``(B) analysis of industry trends in technology, 
                investment, and interest in frontier areas;
                    ``(C) analysis of incidents investigated under 
                section 22;
                    ``(D) reviews of best available technologies, 
                including technologies associated with pipelines, 
                blowout preventer mechanisms, casing, well design, and 
                other associated infrastructure related to offshore 
                energy development;
                    ``(E) oil spill response and mitigation;
                    ``(F) risks associated with human factors; and
                    ``(G) renewable energy operations.
            ``(3) Information sharing activities.--
                    ``(A) Domestic activities.--The Secretary shall 
                carry out programs to facilitate the exchange and 
                dissemination of scientific and technical information 
                and best practices related to the management of safety 
                and environmental issues associated with energy and 
                mineral resource exploration, development, and 
                production.
                    ``(B) International cooperation.--The Secretary 
                shall carry out programs to cooperate with 
                international organizations and foreign governments to 
                share information and best practices related to the 
                management of safety and environmental issues 
                associated with energy and mineral resource 
                exploration, development, and production.
            ``(4) Reports.--The program under this subsection shall 
        provide to the Secretary, each Bureau Director under section 
        32, and the public quarterly reports that address--
                    ``(A) developments in each of the areas under 
                paragraph (2); and
                    ``(B)(i) any accidents that have occurred in the 
                past quarter; and
                    ``(ii) appropriate responses to the accidents.
            ``(5) Independence.--The Secretary shall create a program 
        within the appropriate bureau established under section 32 that 
        shall--
                    ``(A) be programmatically separate and distinct 
                from the leasing program;
                    ``(B) carry out the studies, analyses, and other 
                activities under this subsection;
                    ``(C) provide for external scientific review of 
                studies under this section, including through 
                appropriate arrangements with the National Academy of 
                Sciences; and
                    ``(D) make available to the public studies 
                conducted and data gathered under this section.
            ``(6) Use of data.--The Secretary shall ensure that the 
        information from the studies and research carried out under 
        this section inform the development of safety practices and 
        regulations as required by this Act and other applicable 
        laws.''.
    (i) Enforcement.--Section 22 of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1348) is amended--
            (1) in subsection (d)--
                    (A) in paragraph (1)--
                            (i) in the first sentence, by inserting ``, 
                        each loss of well control, blowout, activation 
                        of the blowout preventer, and other accident 
                        that presented a serious risk to human or 
                        environmental safety,'' after ``fire''; and
                            (ii) in the last sentence, by inserting 
                        ``as a condition of the lease'' before the 
                        period at the end;
                    (B) in the last sentence of paragraph (2), by 
                inserting ``as a condition of lease'' before the period 
                at the end;
            (2) in subsection (e)--
                    (A) by striking ``(e) The'' and inserting the 
                following:
    ``(e) Review of Alleged Safety Violations.--
            ``(1) In general.--The''; and
                    (B) by adding at the end the following:
            ``(2) Investigation.--The Secretary shall investigate any 
        allegation from any employee of the lessee or any subcontractor 
        of the lessee made under paragraph (1).''; and
            (3) by adding at the end of the section the following:
    ``(g) Independent Investigation.--
            ``(1) In general.--At the request of the Secretary, the 
        National Transportation Safety Board may conduct an independent 
        investigation of any accident, occurring in the outer 
        Continental Shelf and involving activities under this Act, that 
        does not otherwise fall within the definition of an accident or 
        major marine casualty, as those terms are used in chapter 11 of 
        title 49, United States Code.
            ``(2) Transportation accident.--For purposes of an 
        investigation under this subsection, the accident that is the 
        subject of the request by the Secretary shall be determined to 
        be a transportation accident within the meaning of that term in 
        chapter 11 of title 49, United States Code.
    ``(h) Information on Causes and Corrective Actions.--
            ``(1) In general.--For each incident investigated under 
        this section, the Secretary shall promptly make available to 
        all lessees and the public technical information about the 
        causes and corrective actions taken.
            ``(2) Public database.--All data and reports related to an 
        incident described in paragraph (1) shall be maintained in a 
        database that is available to the public.
    ``(i) Inspection Fee.--
            ``(1) In general.--The Secretary shall collect a non-
        refundable inspection fee, which shall be deposited in the 
        Ocean Energy Enforcement Fund established under paragraph (3), 
        from the designated operator for facilities subject to 
        inspection under subsection (c).
            ``(2) Establishment.--The Secretary shall establish, by 
        rule, inspection fees--
                    ``(A) at an aggregate level equal to the amount 
                necessary to offset the annual expenses of inspections 
                of outer Continental Shelf facilities (including mobile 
                offshore drilling units) by the Department of the 
                Interior; and
                    ``(B) using a schedule that reflects the 
                differences in complexity among the classes of 
                facilities to be inspected.
            ``(3) Ocean energy enforcement fund.--There is established 
        in the Treasury a fund, to be known as the `Ocean Energy 
        Enforcement Fund' (referred to in this subsection as the 
        `Fund'), into which shall be deposited amounts collected under 
        paragraph (1) and which shall be available as provided under 
        paragraph (4).
            ``(4) Availability of fees.--Notwithstanding section 3302 
        of title 31, United States Code, all amounts collected by the 
        Secretary under this section--
                    ``(A) shall be credited as offsetting collections;
                    ``(B) shall be available for expenditure only for 
                purposes of carrying out inspections of outer 
                Continental Shelf facilities (including mobile offshore 
                drilling units) and the administration of the 
                inspection program;
                    ``(C) shall be available only to the extent 
                provided for in advance in an appropriations Act; and
                    ``(D) shall remain available until expended.
            ``(5) Annual reports.--
                    ``(A) In general.--Not later than 60 days after the 
                end of each fiscal year beginning with fiscal year 
                2011, the Secretary shall submit to the Committee on 
                Energy and Natural Resources of the Senate and the 
                Committee on Natural Resources of the House of 
                Representatives a report on the operation of the Fund 
                during the fiscal year.
                    ``(B) Contents.--Each report shall include, for the 
                fiscal year covered by the report, the following:
                            ``(i) A statement of the amounts deposited 
                        into the Fund.
                            ``(ii) A description of the expenditures 
                        made from the Fund for the fiscal year, 
                        including the purpose of the expenditures.
                            ``(iii) Recommendations for additional 
                        authorities to fulfill the purpose of the Fund.
                            ``(iv) A statement of the balance remaining 
                        in the Fund at the end of the fiscal year.''.
    (j) Remedies and Penalties.--Section 24 of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1350) is amended--
            (1) by striking subsection (b) and inserting the following:
    ``(b) Civil Penalty.--
            ``(1) In general.--Subject to paragraphs (2) through (3), 
        if any person fails to comply with this Act, any term of a 
        lease or permit issued under this Act, or any regulation or 
        order issued under this Act, the person shall be liable for a 
        civil administrative penalty of not more than $75,000 for each 
        day of continuance of each failure.
            ``(2) Administration.--The Secretary may assess, collect, 
        and compromise any penalty under paragraph (1).
            ``(3) Hearing.--No penalty shall be assessed under this 
        subsection until the person charged with a violation has been 
        given the opportunity for a hearing.
            ``(4) Adjustment.--The penalty amount specified in this 
        subsection shall increase each year to reflect any increases in 
        the Consumer Price Index for All Urban Consumers published by 
        the Bureau of Labor Statistics of the Department of Labor.'';
            (2) in subsection (c)--
                    (A) in the first sentence, by striking ``$100,000'' 
                and inserting ``$10,000,000''; and
                    (B) by adding at the end the following: ``The 
                penalty amount specified in this subsection shall 
                increase each year to reflect any increases in the 
                Consumer Price Index for All Urban Consumers published 
                by the Bureau of Labor Statistics of the Department of 
                Labor.''; and
            (3) in subsection (d), by inserting ``, or with reckless 
        disregard,'' after ``knowingly and willfully''.
    (k) Oil and Gas Development and Production.--Section 25 of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1351) is amended by 
striking ``, other than the Gulf of Mexico,'' each place it appears in 
subsections (a)(1), (b), and (e)(1).

SEC. 7. REFORM OF OTHER LAWS.

    (a) Coordinated Mapping Initiative.--Section 388(b) of the Energy 
Policy Act of 2005 (43 U.S.C. 1337 note; Public Law 109-58) is amended 
by adding at the end the following:
            ``(4) Federal agencies.--Any head of a Federal department 
        or agency shall, on request of the Secretary, provide to the 
        Secretary all data and information that the Secretary 
        determines to be necessary for the purpose of including the 
        data and information in the mapping initiative, except that no 
        Federal department or agency shall be required to provide any 
        data or information that is privileged or proprietary.''.
    (b) Dedicated Funding for Outer Continental Shelf Research 
Activities.--Section 999H(d) of the Energy Policy Act of 2005 (42 
U.S.C. 16378(d)) is amended by striking paragraph (4) and inserting the 
following:
            ``(4) 25 percent shall be used for research activities 
        required under sections 20 and 21 of the Outer Continental 
        Shelf Lands Act (43 U.S.C. 1346, 1347).''.

SEC. 8. SAVINGS PROVISIONS.

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

SEC. 9. BUDGETARY EFFECTS.

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