H. Rept. 113-125 - 113th Congress (2013-2014)
June 24, 2013, As Reported by the Natural Resources Committee

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House Report 113-125 - OFFSHORE ENERGY AND JOBS ACT




[House Report 113-125]
[From the U.S. Government Printing Office]


113th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    113-125

======================================================================



 
                      OFFSHORE ENERGY AND JOBS ACT

                                _______
                                

 June 24, 2013.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Hastings of Washington, from the Committee on Natural Resources, 
                        submitted the following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 2231]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Natural Resources, to whom was referred 
the bill (H.R. 2231) to amend the Outer Continental Shelf Lands 
Act to increase energy exploration and production on the Outer 
Continental Shelf, provide for equitable revenue sharing for 
all coastal States, implement the reorganization of the 
functions of the former Minerals Management Service into 
distinct and separate agencies, and for other purposes, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Offshore Energy and Jobs Act''.

SEC. 2. TABLE OF CONTENTS.

  The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

        TITLE I--OUTER CONTINENTAL SHELF LEASING PROGRAM REFORMS

Sec. 101. Outer Continental Shelf leasing program reforms.
Sec. 102. Domestic oil and natural gas production goal.
Sec. 103. Development and submittal of new 5-year oil and gas leasing 
program.

TITLE II--DIRECTING THE PRESIDENT TO CONDUCT NEW OCS SALES IN VIRGINIA, 
                     SOUTH CAROLINA, AND CALIFORNIA

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

    TITLE III--EQUITABLE SHARING OF OUTER CONTINENTAL SHELF REVENUES

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

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

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

                   TITLE V--UNITED STATES TERRITORIES

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

        TITLE I--OUTER CONTINENTAL SHELF LEASING PROGRAM REFORMS

SEC. 101. OUTER CONTINENTAL SHELF LEASING PROGRAM REFORMS.

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

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

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

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

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

TITLE II--DIRECTING THE PRESIDENT TO CONDUCT NEW OCS SALES IN VIRGINIA, 
                     SOUTH CAROLINA, AND CALIFORNIA

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

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

SEC. 202. SOUTH CAROLINA LEASE SALE.

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

SEC. 203. SOUTHERN CALIFORNIA EXISTING INFRASTRUCTURE LEASE SALE.

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

SEC. 204. ENVIRONMENTAL IMPACT STATEMENT REQUIREMENT.

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

SEC. 205. NATIONAL DEFENSE.

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

SEC. 206. EASTERN GULF OF MEXICO NOT INCLUDED.

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

    TITLE III--EQUITABLE SHARING OF OUTER CONTINENTAL SHELF REVENUES

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

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

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

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

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

SEC. 402. BUREAU OF OCEAN ENERGY.

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

SEC. 403. OCEAN ENERGY SAFETY SERVICE.

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

SEC. 404. OFFICE OF NATURAL RESOURCES REVENUE.

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

SEC. 405. ETHICS AND DRUG TESTING.

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

SEC. 406. ABOLISHMENT OF MINERALS MANAGEMENT SERVICE.

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

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

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

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

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

SEC. 409. OUTER CONTINENTAL SHELF INSPECTION FEES.

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

                   TITLE V--UNITED STATES TERRITORIES

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

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

                          Purpose of the Bill

    The purpose of H.R. 2231 is to amend the Outer Continental 
Shelf Lands Act to increase energy exploration and production 
on the Outer Continental Shelf, provide for equitable revenue 
sharing for all coastal States, and implement the 
reorganization of the functions of the former Minerals 
Management Service into distinct and separate agencies.

                  Background and Need for Legislation

    In July 2008, as a result of escalating oil and gas prices, 
the Bush Administration lifted a long-standing executive 
moratorium on new offshore drilling. Congress soon followed 
suit, allowing the annual Congressional moratorium on offshore 
drilling to expire on September 30, 2008. In response to the 
lifting of the offshore drilling moratoria, the Minerals 
Management Service moved early to issue a Draft Proposed Plan 
for the 2010-2015 period, which was published on January 16, 
2009. This plan opened up the entire Atlantic Outer Continental 
Shelf (OCS) planning area, very small areas off the coast of 
California with known resources, a small area in Alaska, the 
Western and Central Gulf of Mexico, and an area in the Eastern 
Gulf of Mexico--12 areas in total (four areas off Alaska, three 
areas off the Atlantic coast, two areas off the Pacific coast, 
and three areas in the Gulf of Mexico).
    However, upon assuming office, the Obama Administration and 
Secretary of the Interior Ken Salazar slowed the process for 
the 2010-2015 Draft Proposed Plan by extending the comment 
period for an additional 180 days, then subsequently the 
Department of the Interior decided to scrap the 2010-2015 Draft 
Proposed Plan and instead create a new 2012-2017 plan. 
Additionally, the Obama Administration revised the existing 
2007-2012 Five-Year Plan to cancel several lease sales.
    In November 2011, Secretary Salazar introduced a Draft 
Proposed Five Year Plan for 2012-2017. The Obama Administration 
boasts that the plan ``makes available more than 75 percent of 
undiscovered technically recoverable oil and gas resources 
(UTRR) estimated in federal offshore areas.'' By focusing on 
UTRR rather than simply focusing on opening new acreage, the 
Obama Administration obfuscates the fact that no new areas are 
opened under this plan. By omitting key areas such as the 
Atlantic and the Pacific planning areas, the President's Five-
Year Plan shuts down possible exploration and development in 
these areas for the next five years. The Obama plan contained 
the fewest number of lease sales in the history of the five-
year planning process, fewer than the Carter Administration--
and locks up 85% of our nation's OCS acreage from development.
    In many cases, the UTRR estimates for offshore areas that 
have not seen activity in recent decades due to the moratoria 
is based on old seismic data. In cases such as the Virginia 
lease sale (Lease Sale 220), which was cancelled despite broad, 
bipartisan support from Virginia's Congressional delegation, 
Governor, and General Assembly, the seismic data utilized to 
estimate the UTRR off the Atlantic derives primarily from data 
collected in the late 1980s. Technology has matured by leaps 
and bounds since the 1980s, which in turn has changed the face 
of geological and geophysical (G&G) activities allowing us a 
much better understanding of the resources available in the 
ground. For instance, in 2002, the U.S. Geological Survey 
(USGS) estimated that the Marcellus Shale contained only 1.9 
trillion cubic feet of natural gas. Increased exploration and 
development, as well as technological advances, resulted in 
USGS concluding nearly a decade later in 2011, that it now 
believes the Marcellus has roughly 44 times the previously 
estimated amount, at 84 trillion cubic feet of natural gas. A 
more recent reassessment of the Bakken area that was released 
in April 2013 by the USGS had a similar result. In 1995, the 
USGS believed the Bakken contained 151 million barrels of oil; 
the most recent assessment from April 2013 concludes that 7.4 
billion barrels, nearly 50 times that amount, is available. 
While this is an onshore example, it demonstrates why estimates 
based on decades-old data is a poor excuse for excluding new 
areas in a Five-Year Plan.
    Additionally, the primary source of G&G data and 
information used by the Bureau of Ocean Energy Management 
(BOEM) to conduct resource evaluations is the oil and gas 
industry. BOEM issues permits to industry for conducting pre- 
and post-lease data collection, and then requires industry to 
share certain data with the federal government. While BOEM has 
attempted to draw focus away from the blatant omission of 
Virginia from the current five-year plan by advertising its 
ongoing effort to allow for G&G activity in the Mid-Atlantic, 
there is concern that industry will have very little incentive 
to invest capital to conduct seismic work because, should it 
make a discovery, it will have to wait, at the very least, 
until 2018 (the next five year plan) to purchase a lease.
    Finally, while the Obama plan did include three lease sales 
scheduled for areas off the coast of Alaska, these sales are 
consistently referred to by the Obama Administration as 
``potential'' lease sales. When paired with the Department of 
the Interior's March review of Shell's drilling operations in 
the Beaufort and Chukchi seas, the Administration has provided 
very little certainty that any new drilling will be conducted 
in any new areas of our nation's OCS.
    Today, our vast OCS resources are a vital lifeline for our 
nation's energy needs--though less than 3% of federal OCS lands 
are currently under lease. In 2010, the producing leases on 
this small percentage of land accounted for 30% of U.S. crude 
oil production and 10% of U.S. natural gas production. 
Regardless of any individual's particular perspective, there is 
no doubt that hydrocarbons will remain a key component of our 
nation's energy portfolio for decades. The Department of the 
Interior through the BOEM has the obligation, by statute, to 
plan for the efficient development of oil and gas resources on 
federal lands in accordance with national need. Instead, the 
plan put forward by this Administration is a major setback to 
future energy development off our shores.
    Meanwhile, American families are struggling to adapt to the 
new normal of $3.50+ gasoline with the average price for a 
gallon of regular gasoline averaging $3.66 for the week of June 
10, 2013. According to the Energy Information Administration 
(EIA), the average price for a gallon of gas in the U.S. has 
not been under $3.00 since 2010, and prices continue to build. 
While the causes behind gas prices have been studied and 
restudied, two of the most recent studies on this subject by 
the Federal Trade Commission (2011) and the Massachusetts 
Institute of Technology (2013) point to the economic truth that 
global crude prices drive U.S. gasoline prices.
    While soaring production on state and private lands and 
declines in consumption are helping to slowly reduce our 
nation's dependence on foreign oil, production on federal lands 
is waning. An EIA report released on May 30, 2013, shows an 8% 
decrease in federal offshore production volumes for Fiscal Year 
2012, and an 18% decrease since 2010. H.R. 2231, the Offshore 
Energy and Jobs Act, will extend the safe and responsible 
development of oil and gas production to new areas of our 
nation's OCS, grow production on federal lands, create more 
American energy, generate billions of dollars in revenue, and 
benefit our economy by establishing millions of new jobs. 
Additionally, as other countries ramp up operations to take 
advantage of natural resources in deepwater around the globe, 
the responsible leasing plan included in the Offshore Energy 
and Jobs Act takes advantage of new areas to help our country 
to maintain a competitive edge.

                             LEASING REFORM

    The Offshore Energy and Jobs Act will require the Secretary 
to conduct a goal-oriented leasing program in which the 
Secretary will aim to meet targeted production goals in line 
with national need. The Secretary will also be required to 
lease a specific amount of OCS acreage focusing on multiple 
planning areas that have the greatest potential for oil and gas 
resources. The Act then requires the Secretary to initiate a 
new lease sale for the 2015-2020 period utilizing the 
aforementioned criteria outlined in the Act. By focusing on 
areas estimated to contain the greatest amount of resources, 
the aim of this provision is to ensure that the offshore 
leasing planning process has a specific goal of increasing 
production of energy resources from federal OCS lands and 
reverse the trend of decreasing production on the federal OCS. 
Additionally, by bringing more acreage online in new areas, 
this provision aims to ensure our nation's competitiveness with 
other countries as they seek to attract businesses and rigs to 
their shores for energy development.

    DIRECTING LEASE SALES IN VIRGINIA, SOUTH CAROLINA AND SOUTHERN 
                               CALIFORNIA

    The Offshore Energy and Jobs Act directs three specific 
lease sales in Title II of the bill. Virginia Lease Sale 220 
was originally included in the 2007-2012 5-year offshore 
leasing plan as a reflection of the support by the Commonwealth 
of Virginia for a lease sale off its coast. In accordance with 
Lease Sale 220's inclusion in the 2007-2012 plan, a Call for 
Information and Notice of Intent to prepare an Environmental 
Impact Statement (EIS) for the sale was published in the 
Federal Register in November 13, 2008. Unfortunately, the Obama 
Administration first postponed this lease sale on May 7, 2010, 
and later cancelled the sale entirely on May 27, 2010. While 
the Governor of Virginia, the majority of the Congressional 
delegation, and the legislature of the Commonwealth of Virginia 
all expressed their renewed interest in moving forward with a 
lease sale off the coast and supported Virginia's inclusion 
during the comment period for the drafting of the new 2012-2017 
Five-Year offshore leasing plan, the Obama Administration 
ignored this vast support and excluded Virginia from the plan--
pushing the possibility of future leasing off the coast of 
Virginia to 2017 at the earliest. In order to remedy this 
exclusion and respect the broad support by the Commonwealth of 
Virginia, the Offshore Energy and Jobs Act requires the 
Secretary to conduct lease sale 220 within one year of 
enactment of this legislation.
    Additionally, given support in the 112th Congress by some 
members of the South Carolina delegation for a lease sale off 
the coast of South Carolina, the Offshore Energy and Jobs Act 
requires the Secretary to conduct a lease sale off the coast of 
South Carolina. The bill specifically requires the Secretary to 
determine which areas in the federal outer Continental Shelf 
off the coast of South Carolina have the most potential for 
hydrocarbon reservoirs, and requires the Secretary to make at 
least 25 percent of qualified areas available for lease within 
two years of enactment of the bill. The Governor of South 
Carolina, Nikki Haley, co-signed a letter along with the 
Governors of Virginia and North Carolina which was addressed to 
incoming Secretary of the Interior, Sally Jewell, in February 
2013, requesting her consideration of Atlantic OCS areas for 
future development, including areas off the coast of South 
Carolina. The Committee believes this provision directing a 
lease sale is reflective of the interest demonstrated in this 
letter and responds to South Carolina's interest in moving 
forward with the development of offshore energy resources.
    Finally, the bill directs a lease sale in the Southern 
California OCS Planning Area. This area is one where there are 
more than 1.6 billion barrels of known resources of 
hydrocarbons that could be developed from production platforms 
that already exist in federal waters. The Committee also noted 
the State of California's renewed interest in pursuing the 
development of state resources from existing resources. For 
these reasons, this bill directs a lease sale in Southern 
California, but requires that the leases only be those which 
can be reached from existing offshore infrastructure or from 
onshore-based directional drilling.
    Offshore drilling is certainly not new to the State of 
California--where there is currently oil and gas production 
from 23 platforms located offshore southern California which 
account for about 24 million barrels of oil and 47 billion 
cubic feet of natural gas annually. Despite these figures, 
California is a net importer of oil. According to the 
California Energy Commission, California produces only about 
37.2 percent of the petroleum it uses while importing more than 
50% of their demand from foreign sources. In 2007, the state 
spent nearly $50 billion for gasoline and $9.7 billion for 
diesel. Additionally, petroleum-based fuels account for 96 
percent of the state's transportation needs. By directing this 
lease sale, California can play a greater role in generating 
the petroleum it sorely needs and consumes largely for 
transportation purposes. Additionally, California will be 
entitled to a share of the revenues from this production.

                   PROTECTION FOR DEFENSE OPERATIONS

    Currently in conducting lease sales in the OCS, the 
Secretary of the Interior work within a mutually-agreed to 
framework that was developed between the Department of the 
Interior and the Department of Defense under a Memorandum of 
Agreement (MOA) signed by both Secretaries in 1983. This Act 
requires the Secretaries to continue to work inside that 
framework established by the Memorandum of Agreement, or any 
update of that agreement that follows.
    Public lands of the United States are entrusted to the care 
of the federal government to ensure for their multiple-use by a 
wide variety of interests. In the case of federal OCS waters, 
the MOA allows for a symbiotic relationship between the 
Department of Defense and the Department of the Interior. The 
MOA ensures that the Secretary of the Interior and the 
Secretary of Defense are on equal footing in the leasing 
process, and created the framework that balancesthose needs 
that is still in use today. The MOA clearly recognizes that the OCS 
leasing program of the Department of the Interior is an ``integral part 
of the nation's energy security program,'' but it also recognizes that 
the military's continued use of the OCS is imperative to ensure that 
our armed forces ``achieve and maintain an optimum state of 
readiness.'' It is clear that the MOA has successfully managed the 
multiple-use of federal lands.
    The success of this agreement does not mean that there is 
not a need to update the agreement so it may adapt to new and 
emerging offshore energy technologies, such as wind energy. The 
Committee requests that the Department of the Interior begin a 
process to update this MOA to account for technological 
advances and report to the appropriate Committees on Natural 
Resources within 60 days on the progress of advancing an 
updated MOA with other Departments.
    Given the success of this MOA, the only way to feasibly 
ensure that the joint goals of preserving access to the OCS for 
the U.S. Armed Forces and for mineral development is to allow 
the agencies to continue their negotiations inside the 
framework of the MOA. Any scenario where one Department is 
given precedence over the other would fundamentally undermine 
the multiple-use mission for public lands. Instead, the MOA is 
recognized as a delicate yet sound means by which both 
Departments may reach mutually acceptable solutions, thereby 
allowing leasing to continue in the OCS while making certain 
that the needs of our nation's armed forces are continued to be 
met.
    Finally, H.R. 2231 incorporates provisions that address the 
needs of the Department of Defense when conducting certain 
lease sales under this Act. In the Eastern Gulf of Mexico, 
provisions are included which allow limits on permanent surface 
occupancy should it conflict with military operations. 
Additionally, the Secretary of the Interior is able to include 
limits on drilling schedules to accommodate for military 
operations. Finally, the Secretary of the Interior may limit 
permanent surface infrastructure on any lease block that is 
within 12 nautical miles of any coastal state, unless that 
infrastructure is approved by the state.
    In the case of Virginia's Lease Sale 220, the Virginia 
lease sale planning area administrative boundaries were 
established in such a way as to incorporate recommendations 
from a Department of Defense report dated 15 February 2010 and 
entitled ``Report on the compatibility of Department of Defense 
(DoD) activities with oil and gas resource development on the 
Outer Continental Shelf (OCS).'' This report specifically 
outlines areas off the coast of Virginia (page 36; Mid-Atlantic 
Summary) where oil and gas activity can occur with no permanent 
oil and gas surface structures and areas where oil and gas 
activity would be outside of military operational areas. As a 
result of the planning area defined in this Act, Interior has 
the flexibility to mitigate conflicts with the military by 
allowing these new areas for lease under Lease Sale 220 in 
exchange for areas that Defense could request to defer from 
leasing under the terms of the MOA.

                            REVENUE SHARING

    Aside from requiring the Secretary to conduct lease sales 
in areas with existing drilling as well as new areas in a way 
that reduces military conflicts, the Offshore Energy and Jobs 
Act will also provide all coastal states and U.S. territories 
with a fair and equitable revenue sharing plan without changing 
the existing revenue sharing plan currently in place for four 
Gulf states under the Gulf of Mexico Energy Security Act 
(Public Law 109-432) (Texas, Louisiana, Alabama and 
Mississippi). The bill extends a phased-in 37.5% share of 
federal revenues to all coastal states for all other areas, and 
areas newly opened as a result of this bill. This plan respects 
concerns issued by state and local officials in the past when 
passing similar legislation in the 112th Congress, and Members 
of Congress from Gulf states who wished to leave the existing 
revenue formulas in place rather than replace them with a new 
formula for revenue sharing.
    The revenue sharing formula in the Offshore Energy and Jobs 
Act grants all coastal states within 200 miles of the leased 
tract a portion of the revenues based on their distance from 
that leased tract. This revenue sharing formula is phased in 
based on the five-year leasing plan, eventually resulting in 
37.5% of revenues derived from offshore energy development 
going to all coastal states, including the U.S. territories. 
However, the three directed lease sales in Title II of the bill 
are immediately able to receive a 37.5% revenue share. The 
purpose behind this is because those lease sales are required 
to be conducted expeditiously regardless of their exemption 
from the current five-year leasing plan in place though they 
would coincide with the schedule of the current 2012-2017 five-
year plan.

                             REORGANIZATION

    The Minerals Management Service (MMS), established in 1982, 
had long been the agency directly responsible for overseeing 
the safe planning, leasing, and production of our nation's 
energy and mineral resources on OCS lands, including the 
collection of related revenues. MMS had been organizationally 
aligned under the Assistant Secretary of Land and Minerals 
Management in the U.S. Department of the Interior. Oversight 
problems with the Royalty-in-Kind program and ethical lapses, 
and ensuing investigations, led to general concerns with the 
existing MMS management structure. The Deepwater Horizon 
explosion and subsequent oil spill in the Gulf of Mexico 
brought the issue of MMS reorganization to a critical juncture, 
resulting in an administrative reorganization in May 2010 by 
Secretarial Order that aimed to resolve what some identified as 
conflicting missions within MMS as well as address several 
suggestions in the Report issued by the National Commission on 
the BP Deepwater Horizon Oil Spill and Offshore Drilling.
    In October 2011, Interior Secretary Salazar finalized an 
administrative reorganization by Secretarial Order, breaking 
MMS into three separate offices to prevent what some have 
called a conflict of interest between the issuing of leases, 
the generation and collection of revenue from those leases, and 
the safety oversight over the offshore operations. One of the 
main aspects of Salazar's reorganization is isolating all 
revenue collection functions previously administered under MMS 
into a new Office of Natural Resources Revenue, placing it 
under the jurisdiction of the Assistant Secretary of Policy, 
Management and Budget. The remaining functions of MMS were 
divided between two newly established offices: the Bureau of 
Ocean Energy Management (BOEM) and the Bureau of Safety and 
Environmental Enforcement (BSEE), both of which remained under 
the Assistant Secretary for Land and Minerals Management. 
Additionally, a new Investigations and Review Unit (IRU) was 
established in June 2010 to act as a pseudo-law enforcement arm 
to investigate allegations of unethical behavior or misconduct 
by MMS employees and allegations of misconduct by industry.
    While lease sales, permitting and National Environmental 
Protection Act (NEPA) processes were formerly combined under 
the authority of the Director of MMS, the processes are pulled 
apart and split between the two new offices. Under the Salazar 
reorganization, BOEM retains responsibility for the leasing 
process and management, while BSEE is responsible for safety 
reviews, compliance inspections, approving spill response 
plans, and reviewing all NEPA activities. Under this 
reorganization, the permitting process is essentially split 
between the two ``separate'' agencies, with one agency 
responsible for energy and mineral leasing and development, and 
the other enforcement agency responsible for environmental and 
safety review.
    Despite these efforts by the Administration to assuage 
safety concerns by reorganizing the Department by Secretarial 
Order, many have called for organic legislation to codify these 
changes. This bill echoes the reorganization put forward by 
Secretary Salazar as though it includes important differences 
that are integral to preserving continued efficient development 
of our nation's offshore resources.
    Title IV of H.R. 2231 creates three completely separate 
agencies with clearly defined missions. The bill also creates 
an Under Secretary for Energy, Lands and Minerals, with a 
direct line to the Secretary of the Interior unless the 
Secretary delegates that authority. This new position also 
increases oversight of safe energy development on all federal 
lands including the OCS.
    This bill includes other differences as well, such as 
different agency names; the Bureau of Land Management and the 
Office of Surface Mining are also moved under the new Under 
Secretary to further encourage energy development both onshore 
and offshore; limiting the ability for safety inspectors to 
walk off the job to strike; ethics and drug testing 
requirements; and an OCS board that has the ability to provide 
recommendations on regulatory measures that are duplicative or 
unnecessary.

                            INSPECTION FEES

    The Offshore Energy and Jobs Act extends for 10 years the 
authorization for the existing inspection fees currently 
utilized for offshore drilling operations by the BSEE. The 
offshore inspection fees were originally established to help 
offset the growing cost of increased inspections on offshore 
facilities. The fees were first proposed by MMS in the Fiscal 
Year 2010 budget for industry to offset 25% of the compliance 
costs, with an overall budget request of $10 million in 
authority to assess these fees. The fees increased 
significantly moving forward, with $62 million being authorized 
through the annual appropriations process in Fiscal Year 2012. 
H.R. 2231 authorizes those fees into place for ten years, 
allowing them to be increased with adjustments tied to the 
Consumer Price Index. The bill also ensures revenues from those 
fees are directed back to the regional offices to fund 
inspectors in the field where they are most needed.

                            Committee Action

    H.R. 2231 was introduced on June 4, 2013, by Congressman 
Doc Hastings (R-WA). The bill was referred to the Committee on 
Natural Resources, and within the Committee to the Subcommittee 
on Energy and Mineral Resources. On June 6 and June 11, 2013, 
the Subcommittee on Energy and Mineral Resources held hearings 
on the bill. On June 12, 2013, the Full Natural Resources 
Committee met to consider the bill. The Subcommittee on Energy 
and Mineral Resources was discharged by unanimous consent. 
Congressman Hastings offered an en bloc amendment designated 
Lamborn #1 to the bill; the amendment was adopted by voice 
vote. Congressman Alan Lowenthal (D-CA) offered an amendment 
designated .005 to the bill; the amendment was not adopted by a 
roll call vote of 10 to 23, as follows:
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

    Congressman Raul Grijalva (D-AZ) offered an amendment 
designated .001 to the bill; the amendment was not adopted by a 
roll call vote of 14 to 25, as follows:
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

    Congressman Peter DeFazio (D-OR) offered an amendment 
designated .028 to the bill; the amendment was not adopted by a 
roll call vote of 16 to 24, as follows:
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

    Congressman Alan Lowenthal (D-CA) offered an amendment 
designated .003 to the bill; the amendment was not adopted by a 
roll call vote of 16 to 24, as follows:
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

    Congressman Rush Holt (D-NJ) offered an amendment 
designated .043 to the bill; the amendment was not adopted by a 
roll call vote of 17 to 24, as follows:
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

    Congressman Jon Runyan (R-NJ) offered an amendment 
designated .020 to the bill; the amendment was not adopted by 
voice vote. No further amendments were offered and the bill, as 
amended, was then adopted and ordered favorably reported to the 
House of Representatives by a bipartisan roll call vote of 23 
to 18, as follows:
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

            Committee Oversight Findings and Recommendations

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Natural Resources' oversight findings and 
recommendations are reflected in the body of this report.

                    Compliance With House Rule XIII

    1. Cost of Legislation. Clause 3(d)(1) of rule XIII of the 
Rules of the House of Representatives requires an estimate and 
a comparison by the Committee of the costs which would be 
incurred in carrying out this bill. However, clause 3(d)(2)(B) 
of that Rule provides that this requirement does not apply when 
the Committee has included in its report a timely submitted 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974. Under clause 3(c)(3) of Rule 
XIII of the Rules of the House of Representatives and section 
403 of the Congressional Budget Act of 1974, the Committee has 
received the following cost estimate for this bill from the 
Director of the Congressional Budget Office:

H.R. 2231--Offshore Energy and Jobs Act

    Summary: H.R. 2231 would revise existing laws and policies 
regarding the development of oil and gas resources on the Outer 
Continental Shelf (OCS). It would direct the Department of the 
Interior (DOI) to adopt a new leasing plan for the 2015-2020 
period, require auctions of leases in certain areas in the 
Atlantic and Pacific OCS, and reduce the department's 
discretion regarding which regions would be included in future 
lease sales. Under this bill, some of the offsetting receipts 
from leases issued in newly available areas would be spent, 
without further appropriation, to make payments to states. 
Finally, H.R. 2231 would direct DOI to collect fees from 
certain firms that operate in the OCS and to implement various 
administrative reforms.
    CBO estimates that enacting H.R. 2231 would reduce net 
direct spending by $1.5 billion over the 2014-2023 period. Pay-
as-you-go procedures apply because enacting the legislation 
would reduce direct spending. In addition, CBO estimates that 
implementing the bill would cost $40 million over the 2013-2018 
period, assuming appropriation of the necessary amounts. 
Enacting this bill would not affect revenues.
    H.R. 2231 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 2231 is shown in the following table. 
The costs of this legislation fall within budget functions 950 
(undistributed offsetting receipts) and 300 (natural resources 
and the environment).

----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                    ------------------------------------------------------------
                                                       2014      2015      2016      2017      2018    2014-2018
----------------------------------------------------------------------------------------------------------------
                                           CHANGES IN DIRECT SPENDINGa

Estimated Budget Authority.........................       -55       -70       -90      -265      -190       -670
Estimated Outlays..................................       -55       -70       -90      -265      -190       -670

                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level......................         5        15        15         5         3         43
Estimated Outlays..................................         1        14        15         7         3        40
----------------------------------------------------------------------------------------------------------------
aCHO estimates that enacting H.R. 2231 would reduce direct spending by $1,515 million over the 2014-2023 period.

    Basis of estimate: For this estimate, CBO assumes that H.R. 
2231 will be enacted near the beginning of fiscal year 2014 and 
that the necessary amounts will be appropriated for each fiscal 
year.

Direct spending

    CBO estimates that enacting H.R. 2231 would reduce net 
direct spending by $1.5 billion 2014-2023 period. That estimate 
reflects the budgetary effects of provisions that would change 
the terms and procedures governing the OCS leasing program, 
authorize direct spending for payments to states, and require 
firms to pay annual fees for federal inspections of their 
operations in the OCS.
    Payments for OCS leases and the proceeds from inspection 
fees would be recorded in the budget as offsetting receipts, 
which are treated as a reduction in direct spending. Because 
oil and gas production usually occurs several years after a 
lease is issued, CBO expects that most of the estimated 
increase in offsetting receipts over the next 10 years would 
result from bonus bids and rental payments. Most royalty 
collections associated with those leases would occur in later 
years. Such estimates are subject to considerable uncertainty, 
however, because the legislation would affect leasing activity 
in areas that have not been available for oil and gas 
development for more than 25 years.\1\
---------------------------------------------------------------------------
    \1\For more information about factors affecting OCS leasing 
activity, see Congressional Budget Office, Potential Budgetary Effects 
of Immediately Opening Most Federal Lands to Oil and Gas Leasing, 
August 2012. http://go.usa.gov/bQwH.
---------------------------------------------------------------------------
    OCS Leasing Activity. H.R. 2231 would revise DOI's current 
leasing plan for the OCS and limit the department's future 
discretion in determining where and when auctions for access to 
those leases should occur. CBO estimates that implementing 
those changes would increase gross offsetting receipts by $1.2 
billion over the 2014-2023 period above the amounts expected 
under current law.
    Under current law, most OCS leasing decisions are made 
administratively--in consultation with industry and states--for 
five-year planning periods. H.R. 2231 would reduce that 
administrative discretion by requiring DOI to auction leases 
for at least half of the available acreage in areas that the 
government estimates to contain certain quantities of oil or 
gas resources. In addition, the department would have to 
conduct three specific lease sales within two years of 
enactment: one off the coast of Virginia, one off the coast of 
South Carolina, and another for leases in the Santa Barbara and 
Ventura basins in the California OCS that could be developed by 
using existing offshore facilities or from onshore drilling 
sites. Finally, DOI would be required to adopt a new leasing 
plan for the 2015-2020 period that would replace the current 
leasing plan for the 2012-2017 period.
    Leasing in the Atlantic and Pacific OCS. Enacting H.R. 2231 
would primarily affect leasing activity in the Atlantic and 
Pacific OCS. CBO estimates that implementing the bill would 
increase gross offsetting receipts from leasing in those areas 
by about $1.0 billion over the next 10 years relative to our 
most recent baseline estimate of receipts under current law. 
This estimate of receipts attributable to the legislation 
reflects CBO's expectation that such leasing would generate 
proceeds of about $1.8 billion over fiscal years 2014 through 
2023 under the bill.\2\ However, CBO expects a portion of that 
amount--$0.8 billion--will be collected under current law. 
CBO's baseline estimate is less than the amount we estimate 
from enacting H.R. 2231 for two reasons. First, the current 
leasing plan for the 2012-2017 period does not include any 
auctions in the Atlantic and Pacific OCS. Second, the 
probability of such leasing occurring after 2017 under current 
law is uncertain because federal and state administrative 
policies toward leasing change over time.
---------------------------------------------------------------------------
    \2\CBO's estimate of the receipts from leasing in the Atlantic and 
Pacific OCS are roughly proportional to the bonus bids that CBO expects 
will be collected over a comparable period of time for regions in the 
Central and Western Gulf of Mexico and the Beaufort and Chukchi Seas in 
Alaska, which are available to be leased under current law and policy. 
The estimate also assumes that the pace of leasing would be consistent 
with past trends for areas with undiscovered resources that are 
geologically dispersed over large areas. Finally, based on the 
conclusions of a 2011 report sponsored by the American Petroleum 
Institute, CBO assumes that the amounts paid by bidders per barrel of 
oil equivalent (BOE) for resources in the Atlantic and Pacific would be 
about half the amounts expected to be paid for resources in the Arctic 
National Wildlife Refuge or the Eastern Gulf of Mexico.
---------------------------------------------------------------------------
    Leasing in Other OCS Regions. H.R. 2231 also would affect 
leasing in areas that are temporarily unavailable because of 
statutory or Presidential restrictions. The Gulf of Mexico 
Energy Security Act of 2006, for example, prohibits leasing of 
about 4.4 million acres in the eastern and central Gulf of 
Mexico until June 30, 2022. In addition, the BristolBay area in 
the North Aleutian Basin in Alaska was withdrawn from consideration 
through 2017 by the President. CBO estimates that requiring auctions 
after such restrictions expire would increase gross offsetting receipts 
by about $0.2 billion over the 2018-2023 period. Most of that increase 
is estimated to result from additional leasing activity in the Gulf of 
Mexico in fiscal year 2023.
    CBO estimates that enacting H.R. 2231 would have no effect 
on proceeds from areas that are included in the current leasing 
plan for the 2012-2017 period because DOI routinely auctions 
more than half of the available acreage in those areas. Those 
areas include the central and western Gulf of Mexico and the 
Beaufort Sea, Chukchi Sea, and Cook Inlet in the Alaska OCS.
    Receipt Sharing. H.R. 2231 would authorize certain payments 
to states affected by OCS activities in areas that would be 
made available for leasing by this bill and that are outside 
the central and western planning areas in the Gulf of Mexico. 
Under H.R. 2231, the percentage of lease payments paid to 
states would depend on the location and timing of the lease 
sales. For example, Virginia, South Carolina, and California 
would receive 37.5 percent of the gross proceeds from the three 
auctions specified in the bill. Elsewhere, states would receive 
a 12.5 percent share of the gross proceeds from eligible leases 
issued under the five-year plan that would take effect in 2015; 
25 percent from leases issued under the subsequent five-year 
plan; and 37.5 percent from leases issued thereafter.
    CBO estimates that the receipt-sharing provisions in H.R. 
2231 would increase direct spending by $0.3 billion over the 
2014-2023 period. That estimate reflects CBO's expectation that 
such payments would be limited to leases issued in areas that 
are not included in DOI's current leasing plan for 2012-2017, 
such as the Atlantic and Pacific OCS. Under this bill, funds 
would be disbursed to states the year after receipts are 
collected.
    Inspection Fees. H.R. 2231 would direct DOI to collect 
annual fees to cover the cost of inspecting OCS facilities and 
drilling operations, subject to certain conditions. The bill 
would specify the amounts due for various types of activities 
and would allow DOI to adjust those fees for inflation in 
future years. Amounts collected under the bill would be 
deposited in a new fund in the U.S. Treasury and would be 
available to DOI if appropriated in annual appropriation acts. 
DOI's authority to collect the fees would expire at the end of 
fiscal year 2022.
    Based on information from DOI, CBO estimates that 
collecting the inspection fees in H.R. 2231 would increase 
offsetting receipts by about $0.6 billion over the 2014-2022 
period, after adjusting for inflation. The appropriation act 
for fiscal year 2013 authorized DOI to assess and collect 
similar inspection fees, but that authority expires at the end 
of this fiscal year. For this estimate, CBO assumes that the 
inspection fees authorized by H.R. 2231 would take effect in 
fiscal year 2014 and extend through fiscal year 2022.

Spending subject to appropriation

    CBO estimates that implementing H.R. 2231 would cost about 
$40 million over the 2014-2018 period, assuming appropriation 
of the necessary amounts. Based on spending patterns for 
similar activities, CBO estimates that DOI would spend about 
$32 million over the 2014-2018 period to develop a new five-
year plan and complete the environmental, geologic, and 
economic assessments associated with conducting lease sales in 
new areas.
    In addition, H.R. 2231 would establish two new executive 
positions at DOI, an Under Secretary and an Assistant 
Secretary, who would oversee the development of mineral 
resources on federal lands. The bill also would require the 
agency to administer drug tests for certain employees who do 
work related to DOI energy programs. Based on information 
regarding the salaries for executive positions and support 
staff within the federal government and the cost of providing 
drug tests at other federal agencies, CBO estimates that 
implementing those provisions would cost about $1 million a 
year over the 2014-2018 period.
    Other provisions would codify organizational changes that 
were implemented by DOI in 2012, subject to certain 
modifications. Although the duties of the bureaus created by 
the bill would be similar to those established under current 
law, H.R. 2231 would assign different names to two of the three 
entities. Based on information from DOI on the cost of the 
previous reorganization, CBO estimates that implementing those 
name changes would cost a total of about $3 million over the 
next five years because the agencies' websites, regulations, 
and administrative personnel materials would need to be 
formally modified.
    Finally, CBO estimates that implementing H.R. 2231 would 
have no significant effect on the discretionary cost of 
inspecting OCS operations over the 2014-2018 period but would 
change the budgetary treatment of certain inspection fees. In 
recent years, the authority for DOI to collect fees for OCS 
inspections was provided in annual appropriation acts, and the 
proceeds were netted against the discretionary appropriation. 
Under H.R. 2231, the proceeds from such fees would be treated 
as a reduction in direct spending until the fee provisions in 
the bill expire at end of 2022.
    Pay-as-you-go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to those 
pay-as-you-go procedures are shown in the following table.

          CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 2231 AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON NATURAL RESOURCES ON JUNE 12, 2013
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in millions of dollars--
                             ---------------------------------------------------------------------------------------------------------------------------
                               2013    2014    2015    2016     2017      2018      2019      2020      2021      2022      2023    2013-2018  2013-2023
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       NET INCREASE OR DECREASE (-) IN THE DEFICIT

Statutory Pay-As-You-Go            0     -55     -70     -90      -265      -190      -155      -155      -155      -140      -240       -670     -1,515
 Impact.....................
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: H.R. 2231 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Estimate prepared by: Federal Costs: Kathleen Gramp (OCS 
leasing activities); Jeff LaFave (DOI reorganization); Impact 
on State, Local, and Tribal Governments: Melissa Merrill; 
Impact on the Private Sector: Amy Petz.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.
    2. Section 308(a) of Congressional Budget Act. As required 
by clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives and section 308(a) of the Congressional Budget 
Act of 1974, this bill does not contain any new budget 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures. CBO estimates that enacting H.R. 
2231 would reduce net direct spending by $1.5 billion over the 
2014-2023 period. Pay-as-you-go procedures apply because 
enacting the legislation would reduce direct spending. In 
addition, CBO estimates that implementing the bill would cost 
$40 million over the 2013-2018 period, assuming appropriation 
of the necessary amounts. Enacting this bill would not affect 
revenues.
    3. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill, as ordered reported, is to amend the 
Outer Continental Shelf Lands Act to increase energy 
exploration and production on the Outer Continental Shelf, 
provide for equitable revenue sharing for all coastal States, 
and implement the reorganization of the functions of the former 
Minerals Management Service into distinct and separate 
agencies.

                           Earmark Statement

    This bill does not contain any Congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined 
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of 
the House of Representatives.

                    Compliance With Public Law 104-4

    This bill contains no unfunded mandates.

                       Compliance With H. Res. 5

    Directed Rule Making. The Chairman estimates that this bill 
directs the Secretary of the Interior to conduct four 
rulemakings.
    Duplication of Existing Programs. In general, this bill 
does not directly establish or reauthorize a program of the 
federal government known to be duplicative of another program. 
However, this bill does attempt to reorganize and clarify 
overlapping and conflicting duties of the former Minerals 
Management Service (MMS) of the Department of the Interior. 
Several MMS programs that dealt with renewable energy 
initiatives focusing on wind power were identified in a report 
by the Government Accountability Office pursuant to section 21 
of Public Law 111-139. These include the Bureau of Ocean Energy 
Management, Regulation and Enforcement environmental studies 
program and technology assessment and research program. While 
not specifically established or reauthorized by this bill, 
these programs administered by the former MMS will benefit from 
the statutory reorganization of that agency in H.R. 2231.
    In addition, the most recent Catalog of Federal Domestic 
Assistance published pursuant to the Federal Program 
Information Act (Public Law 95-220, as amended by Public Law 
98-169) also identified programs overseen by the former MMS as 
relating to other programs. These include the aforementioned 
environmental studies program and Coastal Energy Impact 
Assistance. However, H.R. 2231 does not direct establish or 
reauthorize these programs but rather will streamline their 
administration through the statutory reorganization contained 
in Title IV of the bill, as well as the charge to the Outer 
Continental Shelf Energy Safety Advisory Board to recommend 
``how to reduce regulations and administrative actions that are 
duplicative or unnecessary.''

                Preemption of State, Local or Tribal Law

    This bill is not intended to preempt any State, local or 
tribal law.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

OUTER CONTINENTAL SHELF LANDS ACT

           *       *       *       *       *       *       *


  Sec. 2. Definitions.--When used in this Act--
  (a) The term ``outer Continental Shelf'' means all submerged 
lands lying seaward and outside of the area of lands beneath 
navigable waters as defined in section 2 of the Submerged Lands 
Act (Public Law 31, Eighty-third Congress, first session), and 
of which the subsoil and seabed appertain to the United States 
and are subject to its jurisdiction and control or lying within 
the United States exclusive economic zone and the Continental 
Shelf adjacent to any territory of the United States;
  (b) The term ``Secretary'' means the Secretary of the 
Interior, except that with respect to functions under this Act 
transferred to, or vested in, the Secretary of Energy or the 
Federal Energy Regulatory Commission by or pursuant to the 
Department of Energy Organization Act (42 U.S.C. 7101 et seq.), 
the term ``Secretary'' means the Secretary of Energy, or the 
Federal Energy Regulatory Commission, as the case may be;
  (c) The term ``lease'' means any form of authorization which 
is issued under section 8 or maintained under section 6 of this 
Act and which authorizes exploration for, and development and 
production of, minerals;
  (d) The term ``person'' includes, in addition to a natural 
person, an association, a State, a political subdivision of a 
State, or a private, public, or municipal corporation;
  (e) The term ``coastal zone'' means the coastal waters 
(including the lands therein and thereunder) and the adjacent 
shorelands (including the waters therein and thereunder), 
strongly influenced by each other and in proximity to the 
shorelines of the several coastal States, and includes islands, 
transition and intertidal areas, salt marshes, wetlands, and 
beaches, which zone extends seaward to the outer limit of the 
United States territorial sea and extends inland from the 
shorelines to the extent necessary to control shorelands, the 
uses of which have a direct and significant impact on the 
coastal waters, and the inward boundaries of which may be 
identified by the several coastal States, pursuant to the 
authority of section 305(b)(1) of the Coastal Zone Management 
Act of 1972 (16 U.S.C. 1454(b)(1));
  (f) The term ``affected State'' means, with respect to any 
program, plan, lease sale, or other activity, proposed, 
conducted, or approved pursuant to the provisions of this Act, 
any State--
          (1) the laws of which are declared, pursuant to 
        section 4(a)(2) of this Act, to be the law of the 
        United States for the portion of the outer Continental 
        Shelf on which such activity is, or is proposed to be, 
        conducted;
          (2) which is, or is proposed to be, directly 
        connected by transportation facilities to any 
        artificial island or structure referred to in section 
        4(a)(1) of this Act;
          (3) which is receiving, or in accordance with the 
        proposed activity will receive, oil for processing, 
        refining, or transshipment which was extracted from the 
        outer Continental Shelf and transported directly to 
        such State by means of vessels or by a combination of 
        means including vessels;
          (4) which is designated by the Secretary as a State 
        in which there is a substantial probability of 
        significant impact on or damage to the coastal, marine, 
        or human environment, or a State in which there will be 
        significant changes in the social, governmental, or 
        economic infrastructure, resulting from the 
        exploration, development, and production of oil and gas 
        anywhere on the Outer Continental Shelf; or
          (5) in which the Secretary finds that because of such 
        activity there is, or will be, a significant risk of 
        serious damage, due to factors such as prevailing winds 
        and currents, to the marine or coastal environment in 
        the event of any oilspill, blowout, or release of oil 
        or gas from vessels, pipelines, or other transshipment 
        facilities;
  (g) The term ``marine environment'' means the physical, 
atmospheric, and biological components, conditions, and factors 
which interactively determine the productivity, state, 
condition, and quality of the marine ecosystem, including the 
waters of the high seas, the contiguous zone, transitional and 
intertidal areas, salt marshes, and wetlands within the coastal 
zone and on the outer Continental Shelf;
  (h) The term ``coastal environment'' means the physical 
atmospheric, and biological components, conditions, and factors 
which interactively determine the productivity, state, 
condition, and quality of the terrestrial ecosystem from the 
shoreline inward to the boundaries of the coastal zone;
  (i) The term ``human environment'' means the physical, 
social, and economic components, conditions, and factors which 
interactively determine the state, condition, and quality of 
living conditions, employment, and health of those affected, 
directly or indirectly, by activities occurring on the outer 
Continental Shelf;
  (j) The term ``Governor'' means the Governor of a State, or 
the person or entity designated by, or pursuant to, State law 
to exercise the powers granted to such Governor pursuant to 
this Act;
  (k) The term ``exploration'' means the process of searching 
for minerals, including (1) geophysical surveys where magnetic, 
gravity, seismic, or other systems are used to detect or imply 
the presence of such minerals, and (2) any drilling, whether on 
or off known geological structures, including the drilling of a 
well in which a discovery of oil or natural gas in paying 
quantities is made and the drilling of any additional 
delineation well after such discovery which is needed to 
delineate any reservoir and to enable the lessee to determine 
whether to proceed with development and production;
  (l) The term ``development'' means those activities which 
take place following discovery of minerals in paying 
quantities, including geophysical activity, drilling, platform 
construction, and operation of all onshore support facilities, 
and which are for the purpose of ultimately producing the 
minerals discovered;
  (m) The term ``production'' means those activities which take 
place after the successful completion of any means for the 
removal of minerals, including such removal, field operations, 
transfer of minerals to shore, operation monitoring, 
maintenance, and work-over drilling;
  (n) The term ``antitrust law'' means--
          (1) the Sherman Act (15 U.S.C. 1 et seq.);
          (2) the Clayton Act (15 U.S.C. 12 et seq.);
          (3) the Federal Trade Commission Act (15 U.S.C. 41 et 
        seq.);
          (4) the Wilson Tariff Act (15 U.S.C. 8 et seq.); or
          (5) the Act of June 19, 1936, chapter 592 (15 U.S.C. 
        13, 13a, 13b, and 21a);
  (o) The term ``fair market value'' means the value of any 
mineral (1) computed at a unit price equivalent to the average 
unit price at which such mineral was sold pursuant to a lease 
during the period for which any royalty or net profit share is 
accrued or reserved to the United States pursuant to such 
lease, or (2) if there were no such sales, or if the Secretary 
finds that there were an insufficient number of such sales to 
equitably determine such value, computed at the average unit 
price at which such mineral was sold pursuant to other leases 
in the same region of the outer Continental Shelf during such 
period, or (3) if there were no sales of such mineral from such 
region during such period, or if the Secretary finds that there 
are an insufficient number of such sales to equitably determine 
such value, at an appropriate price determined by the 
Secretary;
  (p) The term ``major Federal action'' means any action or 
proposal by the Secretary which is subject to the provisions of 
section 102(2)(C) of the National Environmental Policy Act of 
1969 (42 U.S.C. 4332(2)(C)); [and]
  (q) The term ``minerals'' includes oil, gas, sulphur, 
geopressured-geothermal and associated resources, and all other 
minerals which are authorized by an Act of Congress to be 
produced from ``public lands'' as defined in section 103 of the 
Federal Land Policy and Management Act of 1976[.]; and
  (r) The term ``State'' includes each territory of the United 
States.

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

  Sec. 18. Outer Continental Shelf Leasing Program.--(a) The 
Secretary, pursuant to procedures set forth in subsections (c) 
and (d) of this section, shall prepare and periodically revise, 
and maintain an oil and gas leasing program to implement the 
policies of this Act. The leasing program shall consist of a 
schedule of proposed lease sales indicating, as precisely as 
possible, the size, timing, and location of leasing activity 
which he determines will best meet national energy needs for 
the five-year period following its approval or reapproval. Such 
leasing program shall be prepared and maintained in a manner 
consistent with the following principles:
          (1) Management of the outer Continental Shelf shall 
        be conducted in a manner which considers economic, 
        social, and environmental values of the renewable and 
        nonrenewable resources contained in the outer 
        Continental Shelf, and the potential impact of oil and 
        gas exploration on other resource values of the outer 
        Continental Shelf and the marine, coastal, and human 
        environments.
          (2) Timing and location of exploration, development, 
        and production of oil and gas among the oil- and gas-
        bearing physiographic regions of the outer Continental 
        Shelf shall be based on a consideration of--
                  (A) existing information concerning the 
                geographical, geological, and ecological 
                characteristics of such regions;
                  (B) an equitable sharing of developmental 
                benefits and environmental risks among the 
                various regions;
                  (C) the location of such regions with respect 
                to, and the relative needs of, regional and 
                national energy markets;
                  (D) the location of such regions with respect 
                to other uses of the sea and seabed, including 
                fisheries, navigation, existing or proposed 
                sealanes, potential sites of deepwater ports, 
                and other anticipated uses of the resources and 
                space of the outer Continental Shelf;
                  (E) the interest of potential oil and gas 
                producers in the development of oil and gas 
                resources as indicated by exploration or 
                nomination;
                  (F) laws, goals, and policies of affected 
                States which have been specifically identified 
                by the Governors of such States as relevant 
                matters for the Secretary's consideration;
                  (G) the relative environmental sensitivity 
                and marine productivity of different areas of 
                the outer Continental Shelf; and
                  (H) relevant environmental and predictive 
                information for different areas of the outer 
                Continental Shelf.
          (3) The Secretary shall select the timing and 
        location of leasing, to the maximum extent practicable, 
        so as to obtain a proper balance between the potential 
        for environmental damage, the potential for the 
        discovery of oil and gas, and the potential for adverse 
        impact on the coastal zone.
          (4) Leasing activities shall be conducted to assure 
        receipt of fair market value for the lands leased and 
        the rights conveyed by the Federal Government.
          (5)(A) In each oil and gas leasing program under this 
        section, the Secretary shall make available for leasing 
        and conduct lease sales including at least 50 percent 
        of the available unleased acreage within each outer 
        Continental Shelf planning area considered to have the 
        largest undiscovered, technically recoverable oil and 
        gas resources (on a total btu basis) based upon the 
        most recent national geologic assessment of the outer 
        Continental Shelf, with an emphasis on offering the 
        most geologically prospective parts of the planning 
        area.
          (B) The Secretary shall include in each proposed oil 
        and gas leasing program under this section any State 
        subdivision of an outer Continental Shelf planning area 
        that the Governor of the State that represents that 
        subdivision requests be made available for leasing. The 
        Secretary may not remove such a subdivision from the 
        program until publication of the final program.
          (C) In this paragraph the term ``available unleased 
        acreage'' means that portion of the outer Continental 
        Shelf that is not under lease at the time of a proposed 
        lease sale, and that has not otherwise been made 
        unavailable for leasing by law.
          (6)(A) In the 5-year oil and gas leasing program, the 
        Secretary shall make available for leasing any outer 
        Continental Shelf planning areas that--
                  (i) are estimated to contain more than 
                2,500,000,000 barrels of oil; or
                  (ii) are estimated to contain more than 
                7,500,000,000,000 cubic feet of natural gas.
          (B) To determine the planning areas described in 
        subparagraph (A), the Secretary shall use the document 
        entitled ``Minerals Management Service Assessment of 
        Undiscovered Technically Recoverable Oil and Gas 
        Resources of the Nation's Outer Continental Shelf, 
        2006''.
  [(b) The leasing program shall include estimates of the 
appropriations and staff required to--
          [(1) obtain resource information and any other 
        information needed to prepare the leasing program 
        required by this section;
          [(2) analyze and interpret the exploratory data and 
        any other information which may be compiled under the 
        authority of this Act;
          [(3) conduct environmental studies and prepare any 
        environmental impact statement required in accordance 
        with this Act and with section 102(2)(C) of the 
        National Environmental Policy Act of 1969 (42 U.S.C. 
        4332(2)(C)); and
          [(4) supervise operations conducted pursuant to each 
        lease in the manner necessary to assure due diligence 
        in the exploration and development of the lease area 
        and compliance with the requirement of applicable laws 
        and regulations, and with the terms of the lease.]
  (b) Domestic Oil and Natural Gas Production Goal.---
          (1) In general.--In developing a 5-year oil and gas 
        leasing program, and subject to paragraph (2), the 
        Secretary shall determine a domestic strategic 
        production goal for the development of oil and natural 
        gas as a result of that program. Such goal shall be--
                  (A) the best estimate of the possible 
                increase in domestic production of oil and 
                natural gas from the outer Continental Shelf;
                  (B) focused on meeting domestic demand for 
                oil and natural gas and reducing the dependence 
                of the United States on foreign energy; and
                  (C) focused on the production increases 
                achieved by the leasing program at the end of 
                the 15-year period beginning on the effective 
                date of the program.
          (2) Program goal.--For purposes of the 5-year oil and 
        gas leasing program, the production goal referred to in 
        paragraph (1) shall be an increase by 2032 of--
                  (A) no less than 3,000,000 barrels in the 
                amount of oil produced per day; and
                  (B) no less than 10,000,000,000 cubic feet in 
                the amount of natural gas produced per day.
          (3) Reporting.--The Secretary shall report annually, 
        beginning at the end of the 5-year period for which the 
        program applies, to the Committee on Natural Resources 
        of the House of Representatives and the Committee on 
        Energy and Natural Resources of the Senate on the 
        progress of the program in meeting the production goal. 
        The Secretary shall identify in the report projections 
        for production and any problems with leasing, 
        permitting, or production that will prevent meeting the 
        goal.
  (c)(1) During the preparation of any proposed leasing program 
under this section, the Secretary shall invite and consider 
suggestions for such program from any interested Federal 
agency, including the Attorney General, in consultation with 
the Federal Trade Commission, and from the Governor of any 
State which may become an affected State under such proposed 
program. The Secretary may also invite or consider any 
suggestions from the executive of any affected local government 
in such an affected State, which have been previously submitted 
to the Governor of such State, and from any other person.
  (2) After such preparation and at least sixty days prior to 
publication of a proposed leasing program in the Federal 
Register pursuant to paragraph (3) of this subsection, the 
Secretary shall submit a copy of such proposed program to the 
Governor of each affected State for review and comment. The 
Governor may solicit comments from those executives of local 
governments in his State which he, in his discretion, 
determines will be affected by the proposed program. If any 
comment by such Governor is received by the Secretary at least 
fifteen days prior to submission to the Congress pursuant to 
such paragraph (3) and includes a request for any modification 
of such proposed program, the Secretary shall reply in writing, 
granting or denying such request in whole or in part, or 
granting such request in such modified form as the Secretary 
considers appropriate, and stating his reasons therefor. All 
such correspondence between the Secretary and Governor of any 
affected State, together with any additional information and 
data relating thereto, shall accompany such proposed program 
when it is submitted to the Congress.
  (3) Within nine months after the date of enactment of this 
section, the Secretary shall submit a proposed leasing program 
to the Congress, the Attorney General, and the Governors of 
affected States, and shall publish such proposed program in the 
Federal Register. Each Governor shall, upon request, submit a 
copy of the proposed leasing program to the executive of any 
local government affected by the proposed program.
  (d)(1) Within ninety days after the date of publication of a 
proposed leasing program, the Attorney General may, after 
consultation with the Federal Trade Commission, submit comments 
on the anticipated effects of such proposed program upon 
competition. Any State, local government, or other person may 
submit comments and recommendations as to any aspect of such 
proposed program.
  (2) At least sixty days prior to approving a proposed leasing 
program, the Secretary shall submit it to the President and the 
Congress, together with any comments received. Such submission 
shall indicate why any specific recommendation of the Attorney 
General or a State or local government was not accepted.
  (3) After the leasing program has been approved by the 
Secretary, [or after eighteen months following the date of 
enactment of this section, whichever first occurs,] no lease 
shall be issued unless it is for an area included in the 
approved leasing program and unless it contains provisions 
consistent with the approved leasing program, except that 
leasing shall be permitted to continue until such program is 
approved and for so long thereafter as such program is under 
judicial or administrative review pursuant to the provisions of 
this Act.
  (e) The Secretary shall review the leasing program approved 
under this section at least once each year. He may revise and 
reapprove such program, at any time, and such revision and 
reapproval, except in the case of a revision which is not 
significant, shall be in the same manner as originally 
developed.
  (f) The Secretary shall, by regulation, establish procedures 
for--
          (1) receipt and consideration of nominations for any 
        area to be offered for lease or to be excluded from 
        leasing;
          (2) public notice of and participation in development 
        of the leasing program;
          (3) review by State and local governments which may 
        be impacted by the proposed leasing;
          (4) periodic consultation with State and local 
        governments, oil and gas lessees and permittees, and 
        representatives of other individuals or organizations 
        engaged in activity in or on the outer Continental 
        Shelf, including those involved in fish and shellfish 
        recovery, and recreational activities; and
          (5) consideration of the coastal zone management 
        program being developed or administered by an affected 
        coastal State pursuant to section 305 or section 306 of 
        the Coastal Zone Management Act of 1972 (16 U.S.C. 
        1454, 1455).
Such procedures shall be applicable to any significant revision 
or reapproval of the leasing program.
  (g) The Secretary may obtain from public sources, or purchase 
from private sources, any survey, data, report, or other 
information (including interpretations of such data, survey, 
report, or other information) which may be necessary to assist 
him in preparing any environmental impact statement and in 
making other evaluations required by this Act. Data of a 
classified nature provided to the Secretary under the 
provisions of this subsection shall remain confidential for 
such period of time as agreed to by the head of the department 
or agency from whom the information is requested. The Secretary 
shall maintain the confidentiality of all privileged or 
proprietary data or information for such period of time as is 
provided for in this Act, established by regulation, or agreed 
to by the parties.
  (h) The heads of all Federal departments and agencies shall 
provide the Secretary with any nonprivileged or nonproprietary 
information he requests to assist him in preparing the leasing 
program and may provide the Secretary with any privileged or 
proprietary information he requests to assist him in preparing 
the leasing program. Privileged or proprietary information 
provided to the Secretary under the provisions of this 
subsection shall remain confidential for such period of time as 
agreed to by the head of the department or agency from whom the 
information is requested. In addition, the Secretary shall 
utilize the existing capabilities and resources of such Federal 
departments and agencies by appropriate agreement.

           *       *       *       *       *       *       *

  Sec. 22. Enforcement.--(a) The Secretary, the Secretary of 
the Department in which the Coast Guard is operating, and the 
Secretary of the Army shall enforce safety and environmental 
regulations promulgated pursuant to this Act. Each such Federal 
department may by agreement utilize, with or without 
reimbursement, the services, personnel, or facilities of other 
Federal departments and agencies for the enforcement of their 
respective regulations.
  (b) It shall be the duty of any holder of a lease or permit 
under this Act to--
          (1) maintain all places of employment within the 
        lease area or within the area covered by such permit in 
        compliance with occupational safety and health 
        standards and, in addition, free from recognized 
        hazards to employees of the lease holder or permit 
        holder or of any contractor or subcontractor operating 
        within such lease area or within the area covered by 
        such permit on the outer Continental Shelf;
          (2) maintain all operations within such lease area or 
        within the area covered by such permit in compliance 
        with regulations intended to protect persons, property, 
        and the environment on the outer Continental Shelf; and
          (3) allow prompt access, at the site of any operation 
        subject to safety regulations, to any inspector, and to 
        provide such documents and records which are pertinent 
        to occupational or public health, safety, or 
        environmental protection, as may be requested.
  (c) The Secretary and the Secretary of the Department in 
which the Coast Guard is operating shall individually, or 
jointly if they so agree, promulgate regulations to provide 
for--
          (1) scheduled onsite inspection, at least once a 
        year, of each facility on the outer Continental Shelf 
        which is subject to any environmental or safety 
        regulation promulgated pursuant to this Act, which 
        inspection shall include all safety equipment designed 
        to prevent or ameliorate blowouts, fires, spillages, or 
        other major accidents; and
          (2) periodic onsite inspection without advance notice 
        to the operator of such facility to assure compliance 
        with such environmental or safety regulations.
  (d)(1) The Secretary or the Secretary of the Department in 
which the Coast Guard is operating shall make an investigation 
and public report on each major fire and each major oil 
spillage occurring as a result of operations conducted pursuant 
to this Act, and may, in his discretion, make an investigation 
and report of lesser oil spillages. For purposes of this 
subsection, a major oil spillage is any spillage in one 
instance of more than two hundred barrels of oil during a 
period of thirty days. All holders of leases or permits issued 
or maintained under this Act shall cooperate with the 
appropriate Secretary in the course of any such investigation.
  (2) The Secretary or the Secretary of the Department in which 
the Coast Guard is operating shall make an investigation and 
public report on any death or serious injury occurring as a 
result of operations conducted pursuant to this Act, and may, 
in his discretion, make an investigation and report of any 
injury. For purposes of this subsection, a serious injury is 
one resulting in substantial impairment of any bodily unit or 
function. All holders of leases or permits issued or maintained 
under this Act shall cooperate with the appropriate Secretary 
in the course of any such investigation.
  (e) The Secretary, or, in the case of occupational safety and 
health, the Secretary of the Department in which the Coast 
Guard is operating, may review any allegation from any person 
of the existence of a violation of a safety regulation issued 
under this Act.
  (f) In any investigation conducted pursuant to this section, 
the Secretary or the Secretary of the Department in which the 
Coast Guard is operating shall have power to summon witnesses 
and to require the production of books, papers, documents, and 
any other evidence. Attendance of witnesses or the production 
of books, papers, documents, or any other evidence shall be 
compelled by a similar process, as in the district courts of 
the United States. Such Secretary, or his designee, shall 
administer all necessary oaths to any witnesses summoned before 
such investigation.
  (g) Inspection Fees.--
          (1) Establishment.--The Secretary of the Interior 
        shall collect from the operators of facilities subject 
        to inspection under subsection (c) non-refundable fees 
        for such inspections--
                  (A) at an aggregate level equal to the amount 
                necessary to offset the annual expenses of 
                inspections of outer Continental Shelf 
                facilities (including mobile offshore drilling 
                units) by the Department of the Interior; and
                  (B) using a schedule that reflects the 
                differences in complexity among the classes of 
                facilities to be inspected.
          (2) Ocean energy safety fund.--There is established 
        in the Treasury a fund, to be known as the ``Ocean 
        Energy Enforcement Fund'' (referred to in this 
        subsection as the ``Fund''), into which shall be 
        deposited all amounts collected as fees under paragraph 
        (1) and which shall be available as provided under 
        paragraph (3).
          (3) Availability of fees.--
                  (A) In general.--Notwithstanding section 3302 
                of title 31, United States Code, all amounts 
                deposited in the Fund--
                          (i) shall be credited as offsetting 
                        collections;
                          (ii) shall be available for 
                        expenditure for purposes of carrying 
                        out inspections of outer Continental 
                        Shelf facilities (including mobile 
                        offshore drilling units) and the 
                        administration of the inspection 
                        program under this section;
                          (iii) shall be available only to the 
                        extent provided for in advance in an 
                        appropriations Act; and
                          (iv) shall remain available until 
                        expended.
                  (B) Use for field offices.--Not less than 75 
                percent of amounts in the Fund may be 
                appropriated for use only for the respective 
                Department of the Interior field offices where 
                the amounts were originally assessed as fees.
          (4) Initial fees.--Fees shall be established under 
        this subsection for the fiscal year in which this 
        subsection takes effect and the subsequent 10 years, 
        and shall not be raised without advise and consent of 
        the Congress, except as determined by the Secretary to 
        be appropriate as an adjustment equal to the percentage 
        by which the Consumer Price Index for the month of June 
        of the calendar year preceding the adjustment exceeds 
        the Consumer Price Index for the month of June of the 
        calendar year in which the claim was determined or last 
        adjusted.
          (5) Annual fees.--Annual fees shall be collected 
        under this subsection for facilities that are above the 
        waterline, excluding drilling rigs, and are in place at 
        the start of the fiscal year. Fees for fiscal year 2013 
        shall be--
                  (A) $10,500 for facilities with no wells, but 
                with processing equipment or gathering lines;
                  (B) $17,000 for facilities with 1 to 10 
                wells, with any combination of active or 
                inactive wells; and
                  (C) $31,500 for facilities with more than 10 
                wells, with any combination of active or 
                inactive wells.
          (6) Fees for drilling rigs.--Fees for drilling rigs 
        shall be assessed under this subsection for all 
        inspections completed in fiscal years 2013 through 
        2022. Fees for fiscal year 2013 shall be--
                  (A) $30,500 per inspection for rigs operating 
                in water depths of 1,000 feet or more; and
                  (B) $16,700 per inspection for rigs operating 
                in water depths of less than 1,000 feet.
          (7) Billing.--The Secretary shall bill designated 
        operators under paragraph (5) within 60 days after the 
        date of the inspection, with payment required within 30 
        days of billing. The Secretary shall bill designated 
        operators under paragraph (6) within 30 days of the end 
        of the month in which the inspection occurred, with 
        payment required within 30 days after billing.
          (8) Sunset.--No fee may be collected under this 
        subsection for any fiscal year after fiscal year 2022.
          (9) Annual reports.--
                  (A) In general.--Not later than 60 days after 
                the end of each fiscal year beginning with 
                fiscal year 2013, the Secretary shall submit to 
                the Committee on Energy and Natural Resources 
                of the Senate and the Committee on Natural 
                Resources of the House of Representatives a 
                report on the operation of the Fund during the 
                fiscal year.
                  (B) Contents.--Each report shall include, for 
                the fiscal year covered by the report, the 
                following:
                          (i) A statement of the amounts 
                        deposited into the Fund.
                          (ii) A description of the 
                        expenditures made from the Fund for the 
                        fiscal year, including the purpose of 
                        the expenditures and the additional 
                        hiring of personnel.
                          (iii) A statement of the balance 
                        remaining in the Fund at the end of the 
                        fiscal year.
                          (iv) An accounting of pace of permit 
                        approvals.
                          (v) If fee increases are proposed 
                        after the initial 10-year period 
                        referred to in paragraph (5), a proper 
                        accounting of the potential adverse 
                        economic impacts such fee increases 
                        will have on offshore economic activity 
                        and overall production, conducted by 
                        the Secretary.
                          (vi) Recommendations to increase the 
                        efficacy and efficiency of offshore 
                        inspections.
                          (vii) Any corrective actions levied 
                        upon offshore inspectors as a result of 
                        any form of misconduct.

           *       *       *       *       *       *       *

                              ----------                              


                      TITLE 5, UNITED STATES CODE



           *       *       *       *       *       *       *
PART III--EMPLOYEES

           *       *       *       *       *       *       *


SUBPART D--PAY AND ALLOWANCES

           *       *       *       *       *       *       *


CHAPTER 53--PAY RATES AND SYSTEMS

           *       *       *       *       *       *       *


SUBCHAPTER II--EXECUTIVE SCHEDULE PAY RATES

           *       *       *       *       *       *       *


Sec. 5314. Positions at level III

  Level III of the Executive Schedule applies to the following 
positions, for which the annual rate of basic pay shall be the 
rate determined with respect to such level under chapter 11 of 
title 2, as adjusted by section 5318 of this title:
          Solicitor General of the United States.
          Under Secretary of Commerce, Under Secretary of 
        Commerce for Economic Affairs, Under Secretary of 
        Commerce for Export Administration, and Under Secretary 
        of Commerce for Travel and Tourism.
          Under Secretaries of State (6).
          Under Secretaries of the Treasury (3).
          Under Secretary for Energy, Lands, and Minerals, 
        Department of the Interior.
          Administrator of General Services.
          Administrator of the Small Business Administration.
          Deputy Administrator, Agency for International 
        Development.
          Chairman of the Merit Systems Protection Board.
          Chairman, Federal Communications Commission.
          Chairman, Board of Directors, Federal Deposit 
        Insurance Corporation.
          Chairman, Federal Energy Regulatory Commission.
          Chairman, Federal Trade Commission.
          Chairman, Surface Transportation Board.
          Chairman, National Labor Relations Board.
          Chairman, Securities and Exchange Commission.
          Chairman, National Mediation Board.
          Chairman, Railroad Retirement Board.
          Chairman, Federal Maritime Commission.
          Comptroller of the Currency.
          Commissioner of Internal Revenue.
          Under Secretary of Defense for Policy.
          Under Secretary of Defense (Comptroller).
          Under Secretary of Defense for Personnel and 
        Readiness.
          Under Secretary of Defense for Intelligence.
          Deputy Chief Management Officer of the Department of 
        Defense.
          Under Secretary of the Air Force.
          Under Secretary of the Army.
          Under Secretary of the Navy.
          Deputy Administrator of the National Aeronautics and 
        Space Administration.
          Deputy Director of the Central Intelligence Agency.
          Director of the Office of Emergency Planning.
          Director of the Peace Corps.
          Deputy Director, National Science Foundation.
          President of the Export-Import Bank of Washington.
          Members, Nuclear Regulatory Commission.
          Members, Defense Nuclear Facilities Safety Board.
          Director of the Federal Bureau of Investigation, 
        Department of Justice.
          Administrator of the National Highway Traffic Safety 
        Administration.
          Administrator of the Federal Motor Carrier Safety 
        Administration.
          Administrator, Federal Railroad Administration.
          Chairman, National Transportation Safety Board.
          Chairman of the National Endowment for the Arts the 
        incumbent of which also serves as Chairman of the 
        National Council on the Arts.
          Chairman of the National Endowment for the 
        Humanities.
          Director of the Federal Mediation and Conciliation 
        Service.
          Federal Transit Administrator.
          President, Overseas Private Investment Corporation.
          Chairman, Postal Regulatory Commission.
          Chairman, Occupational Safety and Health Review 
        Commission.
          Governor of the Farm Credit Administration.
          Chairman, Equal Employment Opportunity Commission.
          Chairman, Consumer Product Safety Commission.
          Under Secretaries of Energy (3).
          Chairman, Commodity Futures Trading Commission.
          Deputy United States Trade Representatives (3).
          Chief Agricultural Negotiator.
          Chairman, United States International Trade 
        Commission.
          Under Secretary of Commerce for Oceans and 
        Atmosphere, the incumbent of which also serves as 
        Administrator of the National Oceanic and Atmospheric 
        Administration.
          Under Secretary of Commerce for Standards and 
        Technology, who also serves as Director of the National 
        Institute of Standards and Technology.
          Associate Attorney General.
          Chairman, Federal Mine Safety and Health Review 
        Commission.
          Chairman, National Credit Union Administration Board.
          Deputy Director of the Office of Personnel 
        Management.
          Under Secretary of Agriculture for Farm and Foreign 
        Agricultural Services.
          Under Secretary of Agriculture for Food, Nutrition, 
        and Consumer Services.
          Under Secretary of Agriculture for Natural Resources 
        and Environment.
          Under Secretary of Agriculture for Research, 
        Education, and Economics.
          Under Secretary of Agriculture for Food Safety.
          Under Secretary of Agriculture for Marketing and 
        Regulatory Programs.
          Director, Institute for Scientific and Technological 
        Cooperation.
          Under Secretary of Agriculture for Rural Development.
          Administrator, Maritime Administration.
          Executive Director Property Review Board.
          Deputy Administrator of the Environmental Protection 
        Agency.
          Archivist of the United States.
          Executive Director, Federal Retirement Thrift 
        Investment Board.
          Principal Deputy Under Secretary of Defense for 
        Acquisition, Technology, and Logistics.
          Director, Trade and Development Agency.
          Under Secretary for Health, Department of Veterans 
        Affairs.
          Under Secretary for Benefits, Department of Veterans 
        Affairs.
          Under Secretary for Memorial Affairs, Department of 
        Veterans Affairs.
          Under Secretaries, Department of Homeland Security.
          Director of the Bureau of Citizenship and Immigration 
        Services.
          Director of the Office of Government Ethics.
          Administrator for Federal Procurement Policy.
          Administrator, Office of Information and Regulatory 
        Affairs, Office of Management and Budget.
          Director of the Office of Thrift Supervision.
          Chairperson of the Federal Housing Finance Board.
          Executive Secretary, National Space Council.
          Controller, Office of Federal Financial Management, 
        Office of Management and Budget.
          Administrator, Research and Innovative Technology 
        Administration.
          Deputy Director for Demand Reduction, Office of 
        National Drug Control Policy.
          Deputy Director for Supply Reduction, Office of 
        National Drug Control Policy.
          Deputy Director for State and Local Affairs, Office 
        of National Drug Control Policy.
          Under Secretary of Commerce for Intellectual Property 
        and Director of the United States Patent and Trademark 
        Office.
          Register of Copyrights.
          Commissioner of Customs, Department of Homeland 
        Security.
          Under Secretary of Education
          Administrator of the Centers for Medicare & Medicaid 
        Services.
          Administrator of the Office of Electronic Government.
          Administrator, Pipeline and Hazardous Materials 
        Safety Administration.
          Director, Pension Benefit Guaranty Corporation.
          Deputy Administrators, Federal Emergency Management 
        Agency.
          Chief Executive Officer, International Clean Energy 
        Foundation.
          Independent Member of the Financial Stability 
        Oversight Council (1).
          Director of the Office of Financial Research.

Sec. 5315. Positions at level IV

  Level IV of the Executive Schedule applies to the following 
positions, for which the annual rate of basic pay shall be the 
rate determined with respect to such level under chapter 11 of 
title 2, as adjusted by section 5318 of this title:
          Deputy Administrator of General Services.
          Associate Administrator of the National Aeronautics 
        and Space Administration.
          Assistant Administrators, Agency for International 
        Development (6).
          Regional Assistant Administrators, Agency for 
        International Development (4).
          Assistant Secretaries of Agriculture (3).
          Assistant Secretaries of Commerce (11).
          Assistant Secretaries of Defense (16).
          Assistant Secretaries of the Air Force (4).
          Assistant Secretaries of the Army (5).
          Assistant Secretaries of the Navy (4).
          Assistant Secretaries of Health and Human Services 
        (6).
          [Assistant Secretaries of the Interior (6).]
          Assistant Secretaries, Department of the Interior 
        (7).
          Assistant Attorneys General (11).
          Assistant Secretaries of Labor (10), one of whom 
        shall be the Assistant Secretary of Labor for Veterans' 
        Employment and Training.
          Assistant Secretaries of State (24) and 4 other State 
        Department officials to be appointed by the President, 
        by and with the advice and consent of the Senate.
          Assistant Secretaries of the Treasury (10).
          Members, United States International Trade Commission 
        (5).
          Assistant Secretaries of Education (10).
          General Counsel, Department of Education.
          Director of Civil Defense, Department of the Army.
          Deputy Director of the Office of Emergency Planning.
          Deputy Director of the Office of Science and 
        Technology.
          Deputy Director of the Peace Corps.
          Assistant Directors of the Office of Management and 
        Budget (3).
          General Counsel of the Department of Agriculture.
          General Counsel of the Department of Commerce.
          General Counsel of the Department of Defense.
          General Counsel of the Department of Health and Human 
        Services.
          Solicitor of the Department of the Interior.
          Solicitor of the Department of Labor.
          General Counsel of the National Labor Relations 
        Board.
          General Counsel of the Department of the Treasury.
          First Vice President of the Export-Import Bank of 
        Washington.
          Members, Council of Economic Advisers.
          Members, Board of Directors of the Export-Import Bank 
        of Washington.
          Members, Federal Communications Commission.
          Member, Board of Directors of the Federal Deposit 
        Insurance Corporation.
          Directors, Federal Housing Finance Board.
          Members, Federal Energy Regulatory Commission.
          Members, Federal Trade Commission.
          Members, Surface Transportation Board.
          Members, National Labor Relations Board.
          Members, Securities and Exchange Commission.
          Members, Merit Systems Protection Board.
          Members, Federal Maritime Commission.
          Members, National Mediation Board.
          Members, Railroad Retirement Board.
          Director of Selective Service.
          Associate Director of the Federal Bureau of 
        Investigation, Department of Justice.
          Members, Equal Employment Opportunity Commission (4).
          Director, Community Relations Service.
          Members, National Transportation Safety Board.
          General Counsel, Department of Transportation.
          Deputy Administrator, Federal Aviation 
        Administration.
          Assistant Secretaries of Transportation (4).
          Deputy Federal Highway Administrator.
          Administrator of the Saint Lawrence Seaway 
        Development Corporation.
          Assistant Secretary for Science, Smithsonian 
        Institution.
          Assistant Secretary for History and Art, Smithsonian 
        Institution.
          Deputy Administrator of the Small Business 
        Administration.
          Assistant Secretaries of Housing and Urban 
        Development (8).
          General Counsel of the Department of Housing and 
        Urban Development.
          Commissioner of Interama.
          Federal Insurance Administrator, Federal Emergency 
        Management Agency.
          Executive Vice President, Overseas Private Investment 
        Corporation.
          Members, National Credit Union Administration Board 
        (2).
          Members, Postal Regulatory Commission (4).
          Members, Occupational Safety and Health Review 
        Commission.
          Deputy Under Secretaries of the Treasury (or 
        Assistant Secretaries of the Treasury) (2).
          Members, Consumer Product Safety Commission (4).
          Members, Commodity Futures Trading Commission.
          Director of Nuclear Reactor Regulation, Nuclear 
        Regulatory Commission.
          Director of Nuclear Material Safety and Safeguards, 
        Nuclear Regulatory Commission.
          Director of Nuclear Regulatory Research, Nuclear 
        Regulatory Commission.
          Executive Director for Operations, Nuclear Regulatory 
        Commission.
          President, Government National Mortgage Association, 
        Department of Housing and Urban Development.
          Assistant Secretary of Commerce for Oceans and 
        Atmosphere, the incumbent of which also serves as 
        Deputy Administrator of the National Oceanic and 
        Atmospheric Administration.
          Director, Bureau of Prisons, Department of Justice.
          Assistant Secretaries of Energy (8).
          General Counsel of the Department of Energy.
          Administrator, Economic Regulatory Administration, 
        Department of Energy.
          Administrator, Energy Information Administration, 
        Department of Energy.
          Director, Office of Indian Energy Policy and 
        Programs, Department of Energy.
          Director, Office of Science, Department of Energy.
          Assistant Secretary of Labor for Mine Safety and 
        Health.
          Members, Federal Mine Safety and Health Review 
        Commission.
          President, National Consumer Cooperative Bank.
          Special Counsel of the Merit Systems Protection 
        Board.
          Chairman, Federal Labor Relations Authority.
          Assistant Secretaries, Department of Homeland 
        Security.
          General Counsel, Department of Homeland Security.
          Officer for Civil Rights and Civil Liberties, 
        Department of Homeland Security.
          Chief Financial Officer, Department of Homeland 
        Security.
          Chief Information Officer, Department of Homeland 
        Security.
          Deputy Director, Institute for Scientific and 
        Technological Cooperation.
          Director of the National Institute of Justice.
          Director of the Bureau of Justice Statistics.
          Chief Counsel for Advocacy, Small Business 
        Administration.
          Assistant Administrator for Toxic Substances, 
        Environmental Protection Agency.
          Assistant Administrator, Office of Solid Waste, 
        Environmental Protection Agency.
          Assistant Administrators, Environmental Protection 
        Agency (8).
          Director of Operational Test and Evaluation, 
        Department of Defense.
          Director of Cost Assessment and Program Evaluation, 
        Department of Defense.
          Special Representatives of the President for arms 
        control, nonproliferation, and disarmament matters, 
        Department of State.
          Ambassadors at Large.
          Assistant Secretary of Commerce and Director General 
        of the United States and Foreign Commercial Service.
          Assistant Secretaries, Department of Veterans Affairs 
        (7).
          General Counsel, Department of Veterans Affairs.
          Commissioner of Food and Drugs, Department of Health 
        and Human Services
          Chairman, Board of Veterans' Appeals.
          Administrator, Office of Juvenile Justice and 
        Delinquency Prevention.
          Director, United States Marshals Service.
          Chairman, United States Parole Commission.
          Director, Bureau of the Census, Department of 
        Commerce.
          Director of the Institute of Museum and Library 
        Services.
          Chief Financial Officer, Department of Agriculture.
          Chief Financial Officer, Department of Commerce.
          Chief Financial Officer, Department of Education.
          Chief Financial Officer, Department of Energy.
          Chief Financial Officer, Department of Health and 
        Human Services.
          Chief Financial Officer, Department of Housing and 
        Urban Development.
          Chief Financial Officer, Department of the Interior.
          Chief Financial Officer, Department of Justice.
          Chief Financial Officer, Department of Labor.
          Chief Financial Officer, Department of State.
          Chief Financial Officer, Department of 
        Transportation.
          Chief Financial Officer, Department of the Treasury.
          Chief Financial Officer, Department of Veterans 
        Affairs.
          Chief Financial Officer, Environmental Protection 
        Agency.
          Chief Financial Officer, National Aeronautics and 
        Space Administration.
          Commissioner, Office of Navajo and Hopi Indian 
        Relocation.
          Principal Deputy Under Secretary of Defense for 
        Policy.
          Principal Deputy Under Secretary of Defense for 
        Personnel and Readiness.
          Principal Deputy Under Secretary of Defense 
        (Comptroller).
          Principal Deputy Under Secretary of Defense for 
        Intelligence.
          General Counsel of the Department of the Army.
          General Counsel of the Department of the Navy.
          General Counsel of the Department of the Air Force.
          Liaison for Community and Junior Colleges, Department 
        of Education.
          Director of the Office of Educational Technology.
          Director of the International Broadcasting Bureau.
          The Commissioner of Labor Statistics, Department of 
        Labor.
          Administrator, Rural Utilities Service, Department of 
        Agriculture.
          Chief Information Officer, Department of Agriculture.
          Chief Information Officer, Department of Commerce.
          Chief Information Officer, Department of Defense 
        (unless the official designated as the Chief 
        Information Officer of the Department of Defense is an 
        official listed under section 5312, 5313, or 5314 of 
        this title).
          Chief Information Officer, Department of Education.
          Chief Information Officer, Department of Energy.
          Chief Information Officer, Department of Health and 
        Human Services.
          Chief Information Officer, Department of Housing and 
        Urban Development.
          Chief Information Officer, Department of the 
        Interior.
          Chief Information Officer, Department of Justice.
          Chief Information Officer, Department of Labor.
          Chief Information Officer, Department of State.
          Chief Information Officer, Department of 
        Transportation.
          Chief Information Officer, Department of the 
        Treasury.
          Chief Information Officer, Department of Veterans 
        Affairs.
          Chief Information Officer, Environmental Protection 
        Agency.
          Chief Information Officer, National Aeronautics and 
        Space Administration.
          Chief Information Officer, Agency for International 
        Development.
          Chief Information Officer, Federal Emergency 
        Management Agency.
          Chief Information Officer, General Services 
        Administration.
          Chief Information Officer, National Science 
        Foundation.
          Chief Information Officer, Nuclear Regulatory Agency.
          Chief Information Officer, Office of Personnel 
        Management.
          Chief Information Officer, Small Business 
        Administration.
          Chief Information Officer of the Intelligence 
        Community.
          General Counsel of the Central Intelligence Agency.
          Principal Deputy Administrator, National Nuclear 
        Security Administration.
          Additional Deputy Administrators of the National 
        Nuclear Security Administration (3), but if the Deputy 
        Administrator for Naval Reactors is an officer of the 
        Navy on active duty, (2).
          Deputy Under Secretary of Commerce for Intellectual 
        Property and Deputy Director of the United States 
        Patent and Trademark Office.
          General Counsel of the Office of the Director of 
        National Intelligence.
          Chief Medical Officer, Department of Homeland 
        Security.

Sec. 5316. Positions at level V

  Level V of the Executive Schedule applies to the following 
positions, for which the annual rate of basic pay shall be the 
rate determined with respect to such level under chapter 11 of 
title 2, as adjusted by section 5318 of this title:
          Administrator, Bonneville Power Administration, 
        Department of the Interior.
          Administrator of the National Capital Transportation 
        Agency.
          Associate Administrators of the Small Business 
        Administration (4).
          Associate Administrators, National Aeronautics and 
        Space Administration (7).
          Associate Deputy Administrator, National Aeronautics 
        and Space Administration.
          Deputy Associate Administrator, National Aeronautics 
        and Space Administration.
          Archivist of the United States.
          Assistant Secretary of Health and Human Services for 
        Administration.
          Assistant Attorney General for Administration.
          Assistant and Science Adviser to the Secretary of the 
        Interior.
          Chairman, Foreign Claims Settlement Commission of the 
        United States, Department of Justice.
          Chairman of the Renegotiation Board.
          Chairman of the Subversive Activities Control Board.
          Chief Counsel for the Internal Revenue Service, 
        Department of the Treasury.
          Commissioner, Federal Acquisition Service, General 
        Services Administration.
          Director, United States Fish and Wildlife Service, 
        Department of the Interior.
          Commissioner of Indian Affairs, Department of the 
        Interior.
          Commissioners, Indian Claims Commission (5).
          Commissioner, Public Buildings Service, General 
        Services Administration.
          Commissioner of Reclamation, Department of the 
        Interior.
          Commissioner of Vocational Rehabilitation, Department 
        of Health and Human Services.
          Commissioner of Welfare, Department of Health and 
        Human Services.
          [Director, Bureau of Mines, Department of the 
        Interior.]
          Director, Bureau of Ocean Energy, Department of the 
        Interior.
          Director, Ocean Energy Safety Service, Department of 
        the Interior.
          Director, Office of Natural Resources Revenue, 
        Department of the Interior.
          Director, Geological Survey, Department of the 
        Interior.
          Deputy Commissioner of Internal Revenue, Department 
        of the Treasury.
          Associate Director of the Federal Mediation and 
        Conciliation Service.
          Associate Director for Volunteers, Peace Corps.
          Associate Director for Program Development and 
        Operations, Peace Corps.
          Assistants to the Director of the Federal Bureau of 
        Investigation, Department of Justice (2).
          Assistant Directors, Office of Emergency Planning 
        (3).
          Fiscal Assistant Secretary of the Treasury.
          General Counsel of the Agency for International 
        Development.
          General Counsel of the Nuclear Regulatory Commission.
          General Counsel of the National Aeronautics and Space 
        Administration.
          Manpower Administrator, Department of Labor.
          Members, Renegotiation Board.
          Members, Subversive Activities Control Board.
          Assistant Administrator of General Services.
          Director, United States Travel Service, Department of 
        Commerce.
          Administrator, Wage and Hour and Public Contracts 
        Division, Department of Labor.
          Assistant Director (Program Planning, Analysis and 
        Research), Office of Economic Opportunity.
          Deputy Director, National Security Agency.
          Director, Bureau of Land Management, Department of 
        the Interior.
          Director, National Park Service, Department of the 
        Interior.
          National Export Expansion Coordinator, Department of 
        Commerce.
          Staff Director, Commission on Civil Rights.
          Assistant Secretary for Administration, Department of 
        Transportation.
          Director, United States National Museum, Smithsonian 
        Institution.
          Director, Smithsonian Astrophysical Observatory, 
        Smithsonian Institution.
          Administrator of the Environmental Science Services 
        Administration.
          Associate Directors of the Office of Personnel 
        Management (5).
          Assistant Federal Highway Administrator.
          Deputy Administrator of the National Highway Traffic 
        Safety Administration.
          Deputy Administrator of the Federal Motor Carrier 
        Safety Administration.
          Assistant Federal Motor Carrier Safety Administrator.
          Director, Bureau of Narcotics and Dangerous Drugs, 
        Department of Justice.
          Vice Presidents, Overseas Private Investment 
        Corporation (3).
          Deputy Administrator, Federal Transit Administration, 
        Department of Transportation.
          General Counsel of the Equal Employment Opportunity 
        Commission.
          Executive Director, Advisory Council on Historic 
        Preservation.
          Additional Officers, Department of Energy (14).
          Additional officers, Nuclear Regulatory Commission 
        (5).
          Assistant Administrator for Coastal Zone Management, 
        National Oceanic and Atmospheric Administration.
          Assistant Administrator for Fisheries, National 
        Oceanic and Atmospheric Administration.
          Assistant Administrators (3), National Oceanic and 
        Atmospheric Administration.
          General Counsel, National Oceanic and Atmospheric 
        Administration.
          Members, Federal Labor Relations Authority (2) and 
        its General Counsel.
          Additional officers, Institute for Scientific and 
        Technological Cooperation (2).
          Additional officers, Office of Management and Budget 
        (6).
          Associate Deputy Secretary, Department of 
        Transportation.
          Chief Scientist, National Oceanic and Atmospheric 
        Administration.
          Director, Indian Health Service, Department of Health 
        and Human Services.
          Commissioners, United States Parole Commission (8).
          Commissioner, Administration on Children, Youth, and 
        Families.

           *       *       *       *       *       *       *


                            DISSENTING VIEWS

    We oppose H.R. 2231 because it would allow Big Oil to put 
drilling rigs off our beaches in California and every state on 
the East Coast from Maine to South Carolina. It would open up 
80 percent of the areas off of Alaska and require drilling in 
important fisheries and sensitive environments like Bristol Bay 
and the Arctic Ocean; all without enacting key drilling safety 
reforms following the BP Deepwater Horizon oil spill disaster.
    H.R. 2231 is bad policy worked through a bad process. The 
legislative hearing on the bill was completed less than 24 
hours before the markup. The short notice provided by the 
Majority for legislative hearings on this bill has prevented 
the Committee from even receiving testimony from the Interior 
Department on this legislation. After this rushed process, the 
bill will enjoy the same fate as the many irresponsible 
drilling bills the Majority has rammed through this Committee 
over the last two and a half years: it will head over to the 
Senate where it will be dead on arrival.
    We need to legislate based on reality. Domestic oil 
production is at a 20-year high and natural gas production is 
at an all-time high. Domestic production is projected to keep 
rising. We are likely to surpass Saudi Arabia as the world's 
largest oil producer in just 7 years. These shifts are 
projected to happen under President Obama, without this 
Republican legislation which threatens our tourism and fishing 
industries and the environment in coastal states with expanded, 
unsafe drilling.
    With this increase in domestic production already 
occurring, now is our opportunity to enhance drilling safety, 
not weaken it. We should be making sure that the increase in 
domestic oil production occurs in a manner that protects 
workers, coastal communities, and the environment. Yet, more 
than three years after the BP spill, Congress has yet to enact 
a single legislative reform to improve the safety of offshore 
drilling. The successor to the BP Spill Commission recently 
gave Congress a D-plus on its response to the spill.
    The Majority rejected an amendment offered by Public Lands 
and Environmental Regulation Subcommittee Ranking Member 
Grijalva (D-AZ) that would have implemented key safety reforms 
recommended following the Deepwater Horizon disaster such as 
raising the liability cap and increasing the penalties the 
Interior Department can levy against oil companies who violate 
the law. The Majority also rejected an amendment from 
Representative Lowenthal (D-CA) that would have protected 
California from new drilling. The Majority also turned away an 
amendment from Representative DeFazio (D-OR) that would have 
protected the important fishery of Bristol Bay in Alaska and 
one from Energy and Mineral Resources Subcommittee Ranking 
Member Holt (D-NJ) that would have safeguarded the East Coast.
    Under President Obama, our dependence on foreign oil has 
fallen from 57 percent to 36 percent. Democrats will continue 
to push for policies that increase our energy independence 
while protecting the environment and the safety of our workers 
and oppose additional attempts by the Majority to hand new 
giveaways to the oil industry.
                                   Edward J. Markey,
                                           Ranking Democratic Member.
                                   Niki Tsongas.
                                   Rush Holt.
                                   Carol Shea-Porter.
                                   Frank Pallone, Jr.
                                   Peter A. DeFazio.
                                   Jared Huffman.
                                   Raul M. Grijalva.
                                   Grace F. Napolitano.
                                   Madeleine Z. Bordallo.