198 
(II) 1⁄2 shall be used for the 
ocean, coastal, and Great Lakes 
grants program established by sub-
section (c); 
(ii) 20 percent shall be allocated to 
the Secretary of Commerce to carry out 
the purposes of subsection (e); and 
(iii) 10 percent shall be allocated to 
the Secretary of Commerce to make grants 
to Regional Ocean Partnerships under sub-
section (d). 
(B) AVAILABILITY.—Amounts allocated to 
the Secretary of Commerce under subparagraph 
(A) shall be available without further appropria-
tion. 
(4) PROCEDURES.—The Secretary of Commerce 
shall establish application, review, oversight, finan-
cial accountability, and performance accountability 
procedures for each grant program for which funds 
are allocated under this subsection. 
(b) GRANTS TO COASTAL STATES.— 
(1) GRANT
AUTHORITY.—The Secretary of 
Commerce may use amounts allocated under sub-
section (a)(3)(A)(i)(I) to make grants to— 
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(A) coastal States pursuant to the formula 
established under section 306(c) of the Coastal 
Zone Management Act of 1972 (16 U.S.C. 
1455(c)); and 
(B) affected Indian tribes based on and 
proportional to any specific coastal and ocean 
management authority granted to an affected 
tribe pursuant to affirmation of a Federal re-
served right. 
(2) ELIGIBILITY.—To be eligible to receive a 
grant under this subsection, a coastal State or af-
fected Indian tribe must prepare and revise a 5-year 
plan and annual work plans that— 
(A) demonstrate that activities for which 
the coastal State or affected Indian tribe will 
use the funds are consistent with the eligible 
uses of the Fund described in subsection (f); 
and 
(B) provide mechanisms to ensure that 
funding is made available to government, non-
government, and academic entities to carry out 
eligible activities at the county and local level. 
(3) APPROVAL OF STATE AND AFFECTED TRIB-
AL PLANS.— 
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(A) IN GENERAL.—Plans required under 
paragraph (2) must be submitted to and ap-
proved by the Secretary of Commerce. 
(B) PUBLIC INPUT AND COMMENT.—In de-
termining whether to approve such plans, the 
Secretary of Commerce shall provide oppor-
tunity for, and take into consideration, public 
input and comment on the plans from stake-
holders and the general public. 
(4) OIL
SPILL
PLANNING
AND
RESPONSE 
GRANTS.—For each of the fiscal years 2018–2022, 
the Secretary of Commerce may use funds allocated 
for grants under this subsection to make grants to 
coastal States and affected tribes under section 321 
of the Coastal Zone Management Act of 1972 (16 
U.S.C. 1451 et seq.), as amended by this Act. 
(5) USE OF FUNDS.—Any amounts provided as 
a grant under this subsection, other than as a grant 
under paragraph (4), may only be used for activities 
described in subsection (f). 
(c) OCEAN
AND COASTAL COMPETITIVE GRANTS 
PROGRAM.— 
(1) ESTABLISHMENT.—The Secretary of Com-
merce shall use amounts allocated under subsection 
(a)(3)(A)(i)(II) to make competitive grants for con-
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201 
servation and management of ocean, coastal, and 
Great Lakes ecosystems and marine resources. 
(2) OCEAN, COASTAL, AND GREAT LAKES RE-
VIEW PANEL.— 
(A) IN GENERAL.—The Secretary of Com-
merce shall establish an Ocean, Coastal, and 
Great Lakes Review Panel (in this subsection 
referred to as the ‘‘Panel’’), which shall consist 
of 12 members appointed by the Secretary of 
Commerce with expertise in the conservation 
and management of ocean, coastal, and Great 
Lakes ecosystems and marine resources. In ap-
pointing members to the Council, the Secretary 
of Commerce shall include a balanced diversity 
of representatives of relevant Federal agencies, 
the private sector, nonprofit organizations, and 
academia. 
(B) FUNCTIONS.—The Panel shall— 
(i) review, in accordance with the pro-
cedures and criteria established under 
paragraph (3), grant applications under 
this subsection; 
(ii) make recommendations to the 
Secretary of Commerce regarding which 
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202 
grant applications should be funded and 
the amount of each grant; and 
(iii) establish any specific require-
ments, conditions, or limitations on a grant 
application recommended for funding. 
(3) PROCEDURES
AND
ELIGIBILITY
CRITERIA 
FOR GRANTS.— 
(A) IN GENERAL.—The Secretary of Com-
merce shall establish— 
(i) procedures for applying for a grant 
under this subsection and criteria for eval-
uating applications for such grants; and 
(ii) criteria, in consultation with the 
Panel, to determine what persons are eligi-
ble for grants under the program. 
(B) ELIGIBLE PERSONS.—Persons eligible 
under the criteria under subparagraph (A)(ii) 
shall include Federal, State, affected tribal, and 
local agencies, fishery or wildlife management 
organizations, nonprofit organizations, and aca-
demic institutions. 
(4) APPROVAL OF GRANTS.—In making grants 
under this subsection the Secretary of Commerce 
shall give the highest priority to the recommenda-
tions of the Panel. If the Secretary of Commerce 
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203 
disapproves a grant recommended by the Panel, the 
Secretary of Commerce shall explain that dis-
approval in writing. 
(5) USE OF GRANT FUNDS.—Any amounts pro-
vided as a grant under this subsection may only be 
used for activities described in subsection (f). 
(d) GRANTS TO REGIONAL OCEAN PARTNERSHIPS.— 
(1) GRANT
AUTHORITY.—The Secretary of 
Commerce may use amounts allocated under sub-
section (a)(3)(A)(iii) to make grants to Regional 
Ocean Partnerships. 
(2) ELIGIBILITY.—In order to be eligible to re-
ceive a grant, a Regional Ocean Partnership must 
prepare and annually revise a plan that— 
(A) identifies regional science and informa-
tion needs, regional goals and priorities, and 
mechanisms for facilitating coordinated and col-
laborative responses to regional issues; 
(B) establishes a process for coordinating 
and collaborating with the Regional Coordina-
tion Councils established under section 503 to 
address regional issues and information needs 
and achieve regional goals and priorities; and 
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204 
(C) demonstrates that activities to be car-
ried out with such funds are eligible uses of the 
funds identified in subsection (f). 
(3) APPROVAL
BY
SECRETARY.—Such plans 
must be submitted to and approved by the Secretary 
of Commerce. 
(4) PUBLIC INPUT AND COMMENT.—In deter-
mining whether to approve such plans, the Secretary 
of Commerce shall provide opportunity for, and take 
into consideration, input and comment on the plans 
from stakeholders and the general public. 
(5) USE OF FUNDS.—Any amounts provided as 
a grant under this subsection may only be used for 
activities described in subsection (f). 
(e) LONG-TERM OCEAN
AND COASTAL OBSERVA-
TIONS.— 
(1) IN GENERAL.—The Secretary of Commerce 
shall use the amounts allocated under subsection 
(a)(3)(A)(ii) to build, operate, and maintain the sys-
tem established under section 12304 of Public Law 
111–11 (33 U.S.C. 3603), in accordance with the 
purposes and policies for which the system was es-
tablished. 
(2) ADMINISTRATION
OF
FUNDS.—The Sec-
retary of Commerce shall administer and distribute 
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205 
funds under this subsection based upon comprehen-
sive system budgets adopted by the Council referred 
to in section 12304(c)(1)(A) of Public Law 111–11 
(33 U.S.C. 3603(c)(1)(A)). 
(f) ELIGIBLE USE
OF FUNDS.—Any funds made 
available under this section may only be used for activities 
that contribute to the conservation, protection, mainte-
nance, and restoration of ocean, coastal, and Great Lakes 
ecosystems in a manner that is consistent with Federal 
environmental laws and that avoids environmental deg-
radation, including— 
(1) activities to conserve, protect, maintain, and 
restore coastal, marine, and Great Lakes ecosystem 
health; 
(2) activities to protect marine biodiversity and 
living marine and coastal resources and their habi-
tats, including fish populations; 
(3) the development and implementation of 
multiobjective, science- and ecosystem-based plans 
for monitoring and managing the wide variety of 
uses affecting ocean, coastal, and Great Lakes eco-
systems and resources that consider cumulative im-
pacts and are spatially explicit where appropriate; 
(4) activities to improve the resiliency of those 
ecosystems; 
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206 
(5) activities to improve the ability of those eco-
systems to become more resilient, and to adapt to 
and withstand the impacts of climate change and 
ocean acidification; 
(6) planning for and managing coastal develop-
ment to minimize the loss of life and property asso-
ciated with sea level rise and the coastal hazards re-
sulting from it; 
(7) research, assessment, monitoring, and dis-
semination of information that contributes to the 
achievement of these purposes; 
(8) research of, protection of, enhancement to, 
and activities to improve the resiliency of culturally 
significant areas and resources; and 
(9) activities designed to rescue, rehabilitate, 
and recover injured marine mammals, marine birds, 
and sea turtles. 
SEC. 507. WAIVER. 
The Federal Advisory Committee Act (5 U.S.C. App.) 
shall not apply to the Regional Coordination Councils es-
tablished under section 503. 
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207 
Subtitle B—Outer Continental 
Shelf Lands Act Amendments 
SEC. 511. NATIONAL POLICY FOR THE OUTER CONTI-
NENTAL 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 na-
tional resource reserve held by the Federal Govern-
ment for the public, that should be managed in a 
manner that— 
‘‘(A) recognizes the need of the United 
States for domestic sources of energy, food, 
minerals, and other resources; 
‘‘(B) minimizes the potential impacts of 
development of those resources on the marine 
and coastal environment and on human health 
and safety; and 
‘‘(C) acknowledges the long-term economic 
value to the United States of the balanced and 
orderly management of those resources that 
safeguards the environment and respects the 
multiple values and uses of the outer Conti-
nental Shelf;’’; 
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208 
(2) in paragraph (4), by striking the period at 
the end and inserting a semicolon; 
(3) in paragraph (5), by striking ‘‘should be’’ 
and inserting ‘‘shall be’’, and striking ‘‘; and’’ and 
inserting a semicolon; 
(4) by redesignating paragraph (6) as para-
graph (7); 
(5) by inserting after paragraph (5) the fol-
lowing: 
‘‘(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 minimizes— 
‘‘(A) harmful impacts to life (including fish 
and other aquatic life) and health; 
‘‘(B) damage to the marine, coastal, and 
human environments and to property; and 
‘‘(C) harm to other users of the waters, 
seabed, or subsoil; and’’; and 
(6) in paragraph (7) (as so redesignated), by— 
(A) striking ‘‘should be’’ and inserting 
‘‘shall be’’; 
(B) 
inserting 
‘‘best 
available’’ 
after 
‘‘using’’; and 
(C) striking ‘‘or minimize’’. 
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209 
SEC. 512. OCS LEASING STANDARD. 
Section 5 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1334) is amended— 
(1) in subsection (a), by striking ‘‘The Sec-
retary may at any time’’ and inserting ‘‘The Sec-
retary shall’’; 
(2) in the second sentence of subsection (a), by 
inserting after ‘‘provide for’’ the following: ‘‘oper-
ational safety, the protection of the marine and 
coastal environment, and’’; 
(3) in subsection (a), by inserting ‘‘and the Sec-
retary of Commerce with respect to matters that 
may affect the marine and coastal environment’’ 
after ‘‘which may affect competition’’; 
(4) in clause (ii) of subsection (a)(2)(A), by 
striking ‘‘a reasonable period of time’’ and inserting 
‘‘30 days’’; and 
(5) in subsection (a)(7), by inserting ‘‘in a 
manner that minimizes harmful impacts to the ma-
rine and coastal environment’’ after ‘‘lease area’’. 
SEC. 513. OCS LEASING PROCEDURES. 
(a) FINANCIAL ASSURANCE AND FISCAL RESPONSI-
BILITY.—Section 8 of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1337) is amended by adding at the end 
the following: 
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210 
‘‘(q) REVIEW OF BOND AND SURETY AMOUNTS.— 
Not later than May 1, 2018, and every 5 years thereafter, 
the Secretary shall review the minimum financial responsi-
bility requirements for leases issued under this section and 
shall ensure that any bonds or surety required are ade-
quate to comply with the requirements of this Act or the 
Oil Pollution Act of 1990 (33 U.S.C. 2701 et seq.). 
‘‘(r) PERIODIC FISCAL REVIEW AND REPORT.— 
‘‘(1) 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 and prepare a report setting forth— 
‘‘(A)(i) the royalty and rental rates in-
cluded in new offshore oil and gas leases; and 
‘‘(ii) the rationale for the rates; 
‘‘(B) whether, in the view of the Secretary, 
the royalty and rental rates described in sub-
paragraph (A) will yield a fair return to the 
public while promoting the production of oil and 
gas resources in a timely manner; 
‘‘(C)(i) the minimum bond or surety 
amounts required pursuant to offshore oil and 
gas leases; and 
‘‘(ii) the rationale for the minimum 
amounts; 
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211 
‘‘(D) whether the bond or surety amounts 
described in subparagraph (C) are adequate to 
comply with subsection (q); and 
‘‘(E) whether the Secretary intends to 
modify the royalty or rental rates, or bond or 
surety amounts, based on the review. 
‘‘(2) PUBLIC PARTICIPATION.—In carrying out 
a review and preparing a report under paragraph 
(1), the Secretary shall provide to the public an op-
portunity to participate. 
‘‘(3) REPORT DEADLINE.—Not later than 30 
days after the date on which the Secretary completes 
a report under paragraph (1), the Secretary shall 
transmit copies of the report to— 
‘‘(A) the Committee on Energy and Nat-
ural Resources of the Senate; and 
‘‘(B) the Committee on Natural Resources 
of the House of Representatives. 
‘‘(s) COMPARATIVE REVIEW OF FISCAL SYSTEM.— 
‘‘(1) IN
GENERAL.—Not later than 2 years 
after the date of enactment of this subsection and 
every 5 years thereafter, the Secretary shall carry 
out a comprehensive review of all components of the 
Federal offshore oil and gas fiscal system, including 
requirements for— 
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212 
‘‘(A) bonus bids; 
‘‘(B) rental rates; 
‘‘(C) royalties; and 
‘‘(D) oil and gas taxes. 
‘‘(2) REQUIREMENTS.— 
‘‘(A) CONTENTS; SCOPE.—A review under 
paragraph (1) shall include— 
‘‘(i) the information and analyses nec-
essary to compare the offshore bonus bids, 
rents, royalties, and taxes of the Federal 
Government to the offshore bonus bids, 
rents, royalties, and taxes of other resource 
owners, including States and foreign coun-
tries; and 
‘‘(ii) an assessment of the overall off-
shore oil and gas fiscal system in the 
United States, as compared to foreign 
countries. 
‘‘(B) ADVISORY COMMITTEE.—In carrying 
out a review under paragraph (1), the Secretary 
shall convene and seek the advice of the Royalty 
Policy Committee. 
‘‘(3) REPORT.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
prepare a report that contains— 
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213 
‘‘(i) the contents and results of the re-
view carried out under paragraph (1) for 
the period covered by the report; and 
‘‘(ii) any recommendations of the Sec-
retary based on the contents and results of 
the review. 
‘‘(B) REPORT DEADLINE.—Not later than 
30 days after the date on which the Secretary 
completes a report under paragraph (1), the 
Secretary shall transmit copies of the report to 
the Committee on Natural Resources of the 
House of Representatives and the Committee 
on Energy and Natural Resources of the Sen-
ate.’’. 
(b) ENVIRONMENTAL DILIGENCE.—Section 8 of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1337) is 
amended by striking subsection (d) and inserting the fol-
lowing: 
‘‘(d) REQUIREMENT
FOR CERTIFICATION
OF RE-
SPONSIBLE STEWARDSHIP.— 
‘‘(1) CERTIFICATION
REQUIREMENT.—No bid 
or request for a lease, easement, or right-of-way 
under this section, or for a permit to drill under sec-
tion 11(d), may be submitted by any person unless 
the person certifies to the Secretary that the person 
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214 
(including any related person and any predecessor of 
such person or related person) meets each of the fol-
lowing requirements: 
‘‘(A) The person is meeting due diligence, 
safety, and environmental requirements on 
other leases, easements, and rights-of-way. 
‘‘(B) In the case of a person that is a re-
sponsible 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), the person has met all of its obli-
gations under that Act to provide compensation 
for covered removal costs and damages. 
‘‘(2) ENFORCEMENT.—If the Secretary deter-
mines that a certification made under paragraph (1) 
is false, the Secretary shall cancel any lease, ease-
ment, or right-of-way and shall revoke any permit 
with respect to which the certification was required 
under such paragraph. 
‘‘(3) DEFINITION OF RELATED PERSON.—For 
purposes of this subsection, the term ‘related person’ 
includes a parent, subsidiary, affiliate, member of 
the same controlled group, contractor, subcontractor, 
a person holding a controlling interest or in which 
a controlling interest is held, and a person with sub-
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215 
stantially the same board members, senior officers, 
or investors.’’. 
(c) REVIEW OF IMPACTS OF LEASE SALES ON THE 
MARINE AND COASTAL ENVIRONMENT BY SECRETARY.— 
Section 8 of the Outer Continental Shelf Lands Act (43 
U.S.C. 1337) is amended by adding at the end of sub-
section (a) the following: 
‘‘(9) At least 60 days prior to any lease sale, 
the Secretary shall request a review by the Secretary 
of Commerce of the proposed sale with respect to 
impacts on the marine and coastal environment. The 
Secretary of Commerce shall complete and submit in 
writing the results of that review within 60 days 
after receipt of the Secretary of the Interior’s re-
quest.’’. 
(d) TERMS AND PROVISIONS.—Section 8(b) of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1337(b)) 
is amended by striking ‘‘An oil and gas lease issued pursu-
ant to this section shall’’ and inserting ‘‘An oil and gas 
lease may be issued pursuant to this section only if the 
Secretary determines that activities under the lease are 
not likely to result in any condition described in section 
5(a)(2)(A)(i), and shall’’. 
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216 
SEC. 514. FUNDING. 
Section 9 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1338) is amended to read as follows: 
‘‘SEC. 9. DISPOSITION OF REVENUES. 
‘‘(a) GENERAL.—Except as provided in subsections 
(b), (c), and (d), all rentals, royalties, and other sums paid 
to the Secretary or the Secretary of the Navy under any 
lease on the outer Continental Shelf for the period from 
June 5, 1950, to date, and thereafter shall be deposited 
in the Treasury of the United States and credited to mis-
cellaneous receipts. 
‘‘(b) LAND AND WATER CONSERVATION FUND.—Ef-
fective for fiscal year 2018 and each fiscal year thereafter, 
$900,000,000 of the amounts referred to in subsection (a) 
shall be deposited in the Treasury of the United States 
and credited to the Land and Water Conservation Fund. 
These sums shall be available to the Secretary, without 
further appropriation or fiscal year limitation, for carrying 
out the purposes of chapter 2003 of title 54, United States 
Code. 
‘‘(c) HISTORIC PRESERVATION FUND.—Effective for 
fiscal year 2018 and each fiscal year thereafter, 
$150,000,000 of the amounts referred to in subsection (a) 
shall be deposited in the Treasury of the United States 
and credited to the Historic Preservation Fund. These 
sums shall be available to the Secretary, without further 
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217 
appropriation or fiscal year limitation, for carrying out the 
purposes of chapters 3021 through 3039 of title 54, 
United States Code. 
‘‘(d) OCEAN RESOURCES CONSERVATION AND AS-
SISTANCE FUND.—Effective for each fiscal year 2018 and 
thereafter, 10 percent of the amounts referred to in sub-
section (a) shall be deposited in the Treasury of the 
United States and credited to the Ocean Resources Con-
servation and Assistance Fund established by section 506 
of the Sustainable Energy Development Reform Act. 
These sums shall be available to the Secretary, without 
further appropriation or fiscal year limitation, for carrying 
out the purposes of such section. 
‘‘(e) SAVINGS PROVISION.—Nothing in this section 
shall decrease the amount any State shall receive pursuant 
to section 8(g) of this Act or section 105 of the Gulf of 
Mexico Energy Security Act (43 U.S.C. 1331 note).’’. 
SEC. 515. EXPLORATION PLANS. 
(a) LIMITATION ON HARM FROM AGENCY EXPLO-
RATION.—Section 11(a)(1) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1340(a)(1)) is amended by striking 
‘‘unduly harmful to’’ and inserting ‘‘likely to harm’’. 
(b) EXPLORATION PLAN REVIEW.—Section 11(c)(1) 
of the Outer Continental Shelf Lands Act (43 U.S.C. 
1340(c)(1)), is amended— 
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218 
(1) by inserting ‘‘(A)’’ before the first sentence; 
(2) in paragraph (1)(A), as designated by the 
amendment made by paragraph (1) of this sub-
section— 
(A) by striking ‘‘and the provisions of such 
lease’’ and inserting ‘‘the provisions of such 
lease, and other applicable environmental and 
natural resource conservation laws’’; and 
(B) by striking the fourth sentence and in-
serting the following: 
‘‘(B) The Secretary shall approve such 
plan, as submitted or modified, within 90 days 
after its submission and it is made publicly ac-
cessible by the Secretary, or within such addi-
tional time as the Secretary determines is nec-
essary to complete any environmental, safety, or 
other reviews, if the Secretary determines 
that— 
‘‘(i) any proposed activity under such 
plan is not likely to result in any condition 
described in section 5(a)(2)(A)(i); 
‘‘(ii) the plan complies with other ap-
plicable environmental or natural resource 
conservation laws; and 
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219 
‘‘(iii) the applicant has demonstrated 
the capability and technology to respond 
immediately and effectively to a worst-case 
oil spill in real-world conditions in the area 
of the proposed activity.’’; and 
(3) by adding at the end the following: 
‘‘(5) If the Secretary requires greater than 90 
days to review an exploration plan submitted pursu-
ant to any oil and gas lease issued or maintained 
under this Act, then the Secretary may provide for 
a suspension of that lease pursuant to section 5 
until the review of the exploration plan is com-
pleted.’’. 
(c) REQUIREMENTS.—Section 11(c) of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1340(c)) is 
amended by amending paragraph (3) to read as follows: 
‘‘(3) An exploration plan submitted under this 
subsection shall include, in the degree of detail that 
the Secretary may by regulation require— 
‘‘(A) a schedule of anticipated exploration 
activities to be undertaken; 
‘‘(B) a detailed and accurate description of 
equipment to be used for such activities, includ-
ing— 
‘‘(i) a description of each drilling unit; 
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220 
‘‘(ii) a statement of the design and 
condition of major safety-related pieces of 
equipment, including independent third- 
party certification of such equipment; and 
‘‘(iii) a description of any new tech-
nology to be used; 
‘‘(C) a map showing the location of each 
well to be drilled; 
‘‘(D) a scenario for the potential blowout 
of the well involving the highest potential vol-
ume of liquid hydrocarbons, along with a com-
plete description of a response plan to both con-
trol the blowout and manage the accompanying 
discharge of hydrocarbons, including the likeli-
hood for surface intervention to stop the blow-
out, the availability of a rig to drill a relief well, 
an estimate of the time it would take to drill a 
relief well, a description of other technology 
that may be used to regain control of the well 
or capture escaping hydrocarbons and the po-
tential timeline for using that technology for its 
intended purpose, and the strategy, organiza-
tion, and resources necessary to avoid harm to 
the environment and human health from hydro-
carbons; 
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221 
‘‘(E) an analysis of the potential impacts 
of the worst-case-scenario discharge of hydro-
carbons on the marine, coastal, and human en-
vironments for activities conducted pursuant to 
the proposed exploration plan; and 
‘‘(F) such other information deemed perti-
nent by the Secretary.’’. 
(d) DRILLING PERMITS.—Section 11(d) of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1340(d)) is 
amended to read as follows: 
‘‘(d) DRILLING PERMITS.— 
‘‘(1) IN
GENERAL.—The Secretary shall, by 
regulation, require that any lessee operating under 
an approved exploration plan obtain a permit prior 
to drilling any well in accordance with such plan, 
and prior to any significant modification of the well 
design as originally approved by the Secretary. 
‘‘(2) ENGINEERING
REVIEW
REQUIRED.—The 
Secretary may not grant any drilling permit or 
modification of the permit prior to completion of a 
full engineering review of the well system, including 
a determination that critical safety systems, includ-
ing blowout prevention, will utilize best available 
technology and that blowout prevention systems will 
include redundancy and remote triggering capability. 
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222 
‘‘(3) OPERATOR SAFETY AND ENVIRONMENTAL 
MANAGEMENT REQUIRED.—The Secretary shall not 
grant any drilling permit or modification of the per-
mit prior to completion of a safety and environ-
mental management plan to be utilized by the oper-
ator during all well operations.’’. 
(e) EXPLORATION PERMIT REQUIREMENTS.—Sec-
tion 11(g) of the Outer Continental Shelf Lands Act (43 
U.S.C. 1340(g)) is amended— 
(1) by striking ‘‘shall be issued’’ and inserting 
‘‘may be issued’’; 
(2) by inserting ‘‘and after consultation with 
the Secretary of Commerce,’’ after ‘‘in accordance 
with regulations issued by the Secretary’’; 
(3) by striking the ‘‘and’’ at the end of para-
graph (2); 
(4) in paragraph (3), by striking ‘‘will not be 
unduly harmful to’’ and inserting ‘‘is not likely to 
harm’’; 
(5) by striking the period at the end of para-
graph (3) and inserting a semicolon; and 
(6) by adding at the end the following: 
‘‘(4) the exploration will be conducted in ac-
cordance with other applicable environmental and 
natural resource conservation laws; 
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223 
‘‘(5) in the case of geophysical surveys, the ap-
plicant shall use the best available technologies and 
methods to minimize impacts on marine life; and 
‘‘(6) in the case of drilling operations, the appli-
cant has available oil spill response and clean-up 
equipment and technology that has been dem-
onstrated to be capable of effectively remediating a 
worst-case release of oil.’’. 
(f) ENVIRONMENTAL REVIEW OF PLANS.—Section 
11 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1340) is amended by adding at the end the following: 
‘‘(i) ENVIRONMENTAL REVIEW OF PLANS.—The Sec-
retary shall treat the approval of an exploration plan, or 
a significant revision of such a plan, as an agency action 
requiring preparation of an environmental assessment or 
environmental impact statement in accordance with the 
National Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.) and shall require that such plan be based 
on the best available technology to ensure safety in car-
rying out both the drilling of the well and any oil spill 
response. 
‘‘(j) DISAPPROVAL OF PLAN.— 
‘‘(1) IN
GENERAL.—The Secretary shall dis-
approve an exploration plan if the Secretary deter-
mines, because of exceptional geological conditions in 
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224 
the lease areas, exceptional resource values in the 
marine or coastal environment, or other exceptional 
circumstances, that— 
‘‘(A) implementation of the plan would 
probably cause serious harm or damage to life 
(including fish and other aquatic life), to prop-
erty, to any mineral deposits (in areas leased or 
not leased), to the national security or defense, 
or to the marine, coastal, or human environ-
ments; 
‘‘(B) the threat of harm or damage will 
not disappear or decrease to an acceptable ex-
tent within a reasonable period of time; and 
‘‘(C) the advantages of disapproving the 
plan outweigh the advantages of exploration. 
‘‘(2) CANCELLATION
OF
LEASE
FOR
DIS-
APPROVAL OF PLAN.—If a plan is disapproved under 
this subsection, the Secretary may cancel such lease 
in accordance with subsection (c)(1) of this sec-
tion.’’. 
SEC. 516. 5-YEAR PROGRAMS. 
Section 18 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1344) is amended— 
(1) in subsection (a) in the second sentence by 
striking ‘‘meet national energy needs’’ and inserting 
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225 
‘‘balance national energy needs and the protection of 
the marine and coastal environment and all the re-
sources in that environment,’’; 
(2) in subsection (a)(1), by striking ‘‘considers’’ 
and inserting ‘‘gives equal consideration to’’; 
(3) in subsection (a)(2)(A)— 
(A) by striking ‘‘existing’’ and inserting 
‘‘the best available scientific’’; and 
(B) by inserting ‘‘, including at least three 
consecutive years of data’’ after ‘‘information’’; 
(4) in subsection (a)(2)(D), by inserting ‘‘, po-
tential and existing sites of renewable energy instal-
lations’’ after ‘‘deepwater ports,’’; 
(5) in subsection (a)(2)(H), by inserting ‘‘in-
cluding the availability of infrastructure to support 
oil spill response’’ before the period; 
(6) in subsection (a)(3), by— 
(A) striking ‘‘to the maximum extent prac-
ticable,’’; 
(B) striking ‘‘obtain a proper balance be-
tween’’ and inserting ‘‘minimize’’; and 
(C) striking ‘‘damage,’’ and all that follows 
through the period and inserting ‘‘damage and 
adverse impacts on the marine, coastal, and 
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226 
human environments, and enhancing the poten-
tial for the discovery of oil and gas.’’; 
(7) in subsection (b)(1), by inserting ‘‘environ-
mental, marine, and energy’’ after ‘‘obtain’’; 
(8) in subsection (b)(2), by inserting ‘‘environ-
mental, marine, and’’ after ‘‘interpret the’’; 
(9) in subsection (b)(3), by striking ‘‘and’’ after 
the semicolon at the end; 
(10) by striking the period at the end of sub-
section (b)(4) and inserting a semicolon; 
(11) by adding at the end of subsection (b) the 
following: 
‘‘(5) provide technical review and oversight of 
exploration plans and a systems review of the safety 
of well designs and other operational decisions; 
‘‘(6) conduct regular and thorough safety re-
views and inspections; and 
‘‘(7) enforce all applicable laws and regula-
tions.’’; 
(12) in the first sentence of subsection (c)(1), 
by inserting ‘‘the National Oceanic and Atmospheric 
Administration and’’ after ‘‘including’’; 
(13) in subsection (c)(2)— 
(A) by inserting after the first sentence the 
following: ‘‘The Secretary shall also submit a 
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