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111th Congress                                            Rept. 111-554
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 1

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



 
SAFER OIL AND NATURAL GAS DRILLING TECHNOLOGY RESEARCH AND DEVELOPMENT 
                                  ACT

                                _______
                                

 July 21, 2010.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Gordon of Tennessee, from the Committee on Science and Technology, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 5716]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Science and Technology, to whom was 
referred the bill (H.R. 5716) to provide for enhancement of 
existing efforts in support of research, development, 
demonstration, and commercial application activities to advance 
technologies for the safe and environmentally responsible 
exploration, development, and production of oil and natural gas 
resources, having considered the same, report favorably thereon 
with an amendment and recommend that the bill as amended do 
pass.

                                CONTENTS

                                                                   Page
   I. Bill............................................................2
  II. Purpose.........................................................6
 III. Background and Need for the Legislation.........................6
  IV. Hearing Summary.................................................7
   V. Committee Actions...............................................8
  VI. Summary of Major Provisions of the Bill.........................9
 VII. Section-by-Section Analysis.....................................9
VIII. Committee Views................................................12
  IX. Cost Estimate..................................................12
   X. Congressional Budget Office Cost Estimate......................12
  XI. Compliance with Public Law 104-4...............................13
 XII. Committee Oversight Findings and Recommendations...............13
XIII. Statement on General Performance Goals and Objectives..........13
 XIV. Constitutional Authority Statement.............................13
  XV. Federal Advisory Committee Statement...........................13
 XVI. Congressional Accountability Act...............................13
XVII. Earmark Identification.........................................14
XVIII.Statement on Preemption of State, Local, or Tribal Law.........14

 XIX. Changes in Existing Law Made by the Bill, As Reported..........14
  XX. Committee Recommendations......................................24
 XXI. Additional Views...............................................25
XXII. Proceedings of the Full Committee Markup.......................27

                                I. Bill

  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 ``Safer Oil and Natural Gas Drilling 
Technology Research and Development Act''.

SEC. 2. SUBTITLE AMENDMENT.

  Subtitle J of title IX of the Energy Policy Act of 2005 (42 U.S.C. 
16371 et seq.) is amended in the subtitle heading by striking ``Ultra-
Deepwater and Unconventional Natural Gas and Other Petroleum 
Resources'' and inserting ``Safer Oil and Natural Gas Drilling 
Technology Research and Development Program''.

SEC. 3. SAFER OIL AND NATURAL GAS DRILLING TECHNOLOGY RESEARCH AND 
                    DEVELOPMENT PROGRAM.

  (a) Program Authority.--Section 999A of the Energy Policy Act of 2005 
(42 U.S.C. 16371) is amended--
          (1) in subsection (a)--
                  (A) by striking ``ultra-deepwater'' and inserting 
                ``deepwater''; and
                  (B) by inserting ``well control and accident 
                prevention,'' after ``safe operations,'';
          (2) in subsection (b)--
                  (A) by inserting ``, accident prevention and 
                mitigation,'' after ``improving safety'';
                  (B) by striking paragraph (1) and inserting the 
                following:
          ``(1) Deepwater architecture and technology, including those 
        for drilling to formations in water depths greater than 1,000 
        feet.''; and
                  (C) by striking paragraph (4) and inserting the 
                following:
          ``(4) Complementary research carried out by the 
        Department.'';
          (3) in subsection (d)--
                  (A) in the subsection heading, by striking ``National 
                Energy Technology Laboratory'' and inserting 
                ``Department of Energy''; and
                  (B) by striking ``National Energy Technology 
                Laboratory'' and inserting ``Office of Fossil Energy of 
                the Department'';
          (4) in subsection (e)--
                  (A) in the subsection heading, by striking 
                ``Secretary of the Interior'' and inserting ``Other 
                Federal Agencies''; and
                  (B) by inserting ``and other agencies as appropriate, 
                including those serving on, and collaborating with, the 
                Interagency Coordinating Committee on Oil Pollution 
                Research as established under section 7001 of the Oil 
                Pollution Act of 1990 (33 U.S.C. 2761(a))'' after 
                ``Secretary of the Interior''; and
          (5) by adding at the end the following:
  ``(f) Partnerships.--In carrying out the program under this subtitle, 
the Secretary shall seek to establish partnerships with eligible 
research performers, as described by section 999E, to undertake 
research and development not likely otherwise to be undertaken in the 
absence of support from the program.''.
  (b) Program Elements.--Section 999B of the Energy Policy Act of 2005 
(42 U.S.C. 16372) is amended--
          (1) in the section heading, by striking ``ULTRA-DEEPWATER AND 
        UNCONVENTIONAL ONSHORE NATURAL GAS AND OTHER PETROLEUM'' and 
        inserting ``SAFER OIL AND NATURAL GAS DRILLING TECHNOLOGY'';
          (2) by amending subsection (a) to read as follows:
  ``(a) In General.--The Secretary shall carry out the activities under 
section 999A to maximize the benefits of natural gas and other 
petroleum resources of the United States by advancing the safe and 
environmentally responsible exploration, development, and production of 
those resources.'';
          (3) in subsection (c)(1)--
                  (A) by redesignating subparagraphs (D) and (E) as 
                subparagraphs (E) and (F), respectively; and
                  (B) by inserting after subparagraph (C) the 
                following:
                  ``(D) select projects on a competitive basis;'';
          (4) in subsection (c)(3)(A)(ii), by striking ``under 
        subsection (f)(4)'';
          (5) in subsection (d)--
                  (A) in paragraph (6), by striking ``ultra-deepwater'' 
                and inserting ``deepwater''; and
                  (B) by striking paragraph (7) and inserting the 
                following:
          ``(7) Focus areas for awards.--
                  ``(A) Deepwater resources.--Awards from allocations 
                under section 999H(d)(1) shall focus on research, 
                development, demonstration, and commercial application 
                activities in areas that include--
                          ``(i) technologies and systems aimed at 
                        improving operational safety and reducing 
                        potential environmental impacts of deepwater 
                        exploration and production activities, 
                        including--
                                  ``(I) wellbore integrity, well 
                                control, and blowout prevention;
                                  ``(II) capture and containment of oil 
                                at or near the wellhead; and
                                  ``(III) expanding operational 
                                capabilities and efficiency of remotely 
                                operated devices and mechanics;
                          ``(ii) safe and environmentally responsible 
                        deepwater exploration and production 
                        technologies, integrated systems, and 
                        architectures for enhancing oil and natural gas 
                        drilling and recovery, including under extreme 
                        conditions;
                          ``(iii) methods and technologies for severe 
                        weather and ocean surface condition 
                        preparedness;
                          ``(iv) utilization of exploration and 
                        production methods and materials that reduce 
                        the potential impact of such activities on the 
                        environment; and
                          ``(v) other areas as determined appropriate 
                        by the Secretary.
                  ``(B) Unconventional onshore resources.--Awards from 
                allocations under section 999H(d)(2) shall focus on 
                research, development, demonstration, and commercial 
                application activities in areas that include--
                          ``(i) advanced coalbed methane, deep 
                        drilling, natural gas production from tight 
                        sands, natural gas production from gas shales, 
                        stranded gas, innovative exploration and 
                        production techniques, and enhanced recovery 
                        techniques;
                          ``(ii) increased efficiency of energy use in 
                        exploration and production activities;
                          ``(iii) utilization of exploration and 
                        production methods and materials that reduce 
                        the potential impact of such activities on the 
                        environment;
                          ``(iv) recovery, utilization, reduction, and 
                        improved management of produced water from 
                        exploration and production activities; and
                          ``(v) accident prevention and mitigation of 
                        unconventional natural gas and other petroleum 
                        resources exploration and production.
                  ``(C) Small producers.--Awards from allocations under 
                section 999H(d)(3) shall be made to consortia 
                consisting of small producers or organized primarily 
                for the benefit of small producers, and shall focus on 
                areas that include--
                          ``(i) safety and accident prevention, 
                        environmental mitigation, waste reduction, 
                        reduction of energy use, and well control and 
                        systems integrity;
                          ``(ii) complex geology involving rapid 
                        changes in the type and quality of the oil and 
                        gas reserves across the reservoir;
                          ``(iii) low reservoir pressure and 
                        unconventional natural gas reservoirs in 
                        coalbeds, deep reservoirs, tight sands, or 
                        shales; and
                          ``(iv) advancing energy efficient, safe, and 
                        environmentally responsible production of 
                        unconventional oil reservoirs in tar sands and 
                        oil shales.
                  ``(D) Safety, and accident prevention and mitigation, 
                technology research and development by the 
                department.--Awards from allocations under section 
                999H(d)(4) shall focus on safety, and accident 
                prevention and mitigation, research, development, 
                demonstration, and commercial application activities in 
                areas that may include--
                          ``(i) improved technologies and best 
                        management practices for enhanced well 
                        integrity including--
                                  ``(I) cementing;
                                  ``(II) casing;
                                  ``(III) wellbore sealant 
                                technologies;
                                  ``(IV) well-plugging and abandonment;
                                  ``(V) improvement and standardization 
                                of blowout prevention devices;
                                  ``(VI) actuation and pressure 
                                testing; and
                                  ``(VII) other well control 
                                activities;
                          ``(ii) research to aid in the development of 
                        industry best practices and standards for 
                        workforce training, design of safe workplace 
                        environments, and safety related decisionmaking 
                        processes, including by drawing on existing 
                        research into human factors and safety related 
                        practices in fields such as the nuclear energy, 
                        aviation, and automotive industries;
                          ``(iii) secondary control systems to activate 
                        blowout prevention devices and terminate well-
                        flow, including--
                                  ``(I) deadman switches;
                                  ``(II) automatic shears; and
                                  ``(III) remote acoustic switches;
                          ``(iv) technologies and methods for accident 
                        mitigation, including--
                                  ``(I) capture, containment, or 
                                dispersing of oil at or near the 
                                wellhead;
                                  ``(II) estimating flow rate;
                                  ``(III) diagnostic sensors to 
                                determine equipment malfunction; and
                                  ``(IV) procedures to terminate flow;
                          ``(v) continuing ongoing efforts, including 
                        in resource assessment and characterization, 
                        and in simulation of safe and effective 
                        drilling under extreme conditions, including 
                        high temperatures and pressures;
                          ``(vi) development of methodologies for risk 
                        management decisionmaking, including 
                        comparative risk analysis and quantitative risk 
                        assessment of potential for failure in the 
                        technologies, management practices, and systems 
                        studies under this subsection; and
                          ``(vii) other activities as described in this 
                        paragraph or as determined appropriate by the 
                        Secretary.'';
          (6) in subsection (e)--
                  (A) in paragraph (2)--
                          (i) in the second sentence of subparagraph 
                        (A), by inserting ``to the Secretary for 
                        review'' after ``submit''; and
                          (ii) in the first sentence of subparagraph 
                        (B), by striking ``Ultra-Deepwater'' and all 
                        that follows through ``and such Advisory 
                        Committees'' and inserting ``Program Advisory 
                        Committee established under section 999D(a), 
                        and the Advisory Committee'';
                  (B) in paragraph (4)--
                          (i) by striking ``and'' at the end of 
                        subparagraph (A);
                          (ii) by striking the period at the end of 
                        subparagraph (B) and inserting ``; and''; and
                          (iii) by adding at the end the following new 
                        subparagraph:
                  ``(C) a summary of ongoing and planned activities 
                aimed at improving operational safety and reducing 
                potential environmental impacts of exploration and 
                production.''; and
                  (C) by adding at the end the following:
          ``(6) Research findings and recommendations for 
        implementation.--The Secretary shall publish in the Federal 
        Register an annual report on the research findings of the 
        program carried out under this section and any recommendations 
        for implementation that the Secretary determines to be 
        necessary.'';
          (7) in subsection (f)(2), by inserting ``In carrying out this 
        subsection, the Secretary shall ensure that safety and accident 
        prevention and mitigation be regularly included as specific 
        focus areas for solicitations.'' after ``consortium.'';
          (8) in subsection (i)--
                  (A) in the subsection heading, by striking ``United 
                States Geological Survey'' and inserting ``Department 
                of the Interior''; and
                  (B) by striking ``, through the United States 
                Geological Survey,''; and
          (9) in subsection (j), by striking ``National Energy 
        Technology Laboratory'' and inserting ``Office of Fossil Energy 
        of the Department''.

SEC. 4. PROGRAM ADVISORY COMMITTEE.

  Section 999D of the Energy Policy Act of 2005 (42 U.S.C. 16374) is 
amended to read as follows:

``SEC. 999D. PROGRAM ADVISORY COMMITTEE.

  ``(a) Establishment.--Not later than 90 days after the date of 
enactment of the Safer Oil and Natural Gas Drilling Technology Research 
and Development Act, the Secretary shall establish an advisory 
committee to be known as the `Program Advisory Committee' (referred to 
in this section as the `Advisory Committee').
  ``(b) Membership.--
          ``(1) In general.--The Advisory Committee shall be composed 
        of members appointed by the Secretary, each of whom shall be 
        qualified by education, training, and experience to evaluate 
        scientific and technical information relevant to the research, 
        development, and demonstration under this subtitle. Members 
        shall include--
                  ``(A) individuals with extensive research experience 
                or operational knowledge of oil and natural gas 
                exploration and production;
                  ``(B) individuals broadly representative of the 
                affected interests in oil and natural gas production, 
                including interests in environmental protection and 
                operational safety;
                  ``(C) State regulatory agency representatives; and
                  ``(D) other individuals, as determined by the 
                Secretary.
          ``(2) Limitations.--
                  ``(A) In general.--The Advisory Committee shall not 
                include individuals who are board members, officers, or 
                employees of the program consortium.
                  ``(B) Categorical representation.--In appointing 
                members of the Advisory Committee, the Secretary shall 
                ensure that no class of individuals described in any of 
                subparagraphs (B), (C), or (D) of paragraph (1) 
                comprises more than \1/3\ of the membership of the 
                Advisory Committee.
  ``(c) Subcommittees.--The Advisory Committee may establish 
subcommittees or ad hoc working groups for the research focus areas 
described in section 999B(d)(7).
  ``(d) Duties.--The Advisory Committee shall--
          ``(1) advise the Secretary on the development and 
        implementation of programs under this subtitle; and
          ``(2) carry out section 999B(e)(2)(B).
  ``(e) Compensation.--A member of the Advisory Committee shall serve 
without compensation but shall be entitled to receive travel expenses 
in accordance with subchapter I of chapter 57 of title 5, United States 
Code.
  ``(f) Prohibition.--The Advisory Committee shall not make 
recommendations on funding awards to particular consortia or other 
entities, or for specific projects.''.

SEC. 5. DEFINITIONS.

  Section 999G of the Energy Policy Act of 2005 (42 U.S.C. 16377) is 
amended--
          (1) in paragraph (1), by striking ``200 but less than 1,500 
        meters'' and inserting ``1,000 feet'';
          (2) by striking paragraphs (8), (9), and (10);
          (3) by redesignating paragraphs (2) through (7) and (11) as 
        paragraphs (4) through (9) and (10), respectively; and
          (4) by inserting after paragraph (1) the following:
          ``(2) Deepwater architecture.--The term `deepwater 
        architecture' means the integration of technologies for the 
        safe and environmentally responsible exploration for, or 
        production of, natural gas or other petroleum resources located 
        at deepwater depths.
          ``(3) Deepwater technology.--The term `deepwater technology' 
        means a discrete technology that is specially suited to address 
        1 or more challenges associated with the safe and 
        environmentally responsible exploration for, or production of, 
        natural gas or other petroleum resources located at deepwater 
        depths.''.

SEC. 6. FUNDING.

  Section 999H of the Energy Policy Act of 2005 (42 U.S.C. 16378) is 
amended--
          (1) in the first sentence of subsection (a) by striking 
        ``Ultra-Deepwater and Unconventional Natural Gas and Other 
        Petroleum Research Fund'' and inserting ``Safer Oil and Natural 
        Gas Drilling Technology Research and Development Fund'';
          (2) in subsection (d)--
                  (A) in paragraph (1), by striking ``35 percent'' and 
                inserting ``32.5 percent'';
                  (B) in paragraph (2), by striking ``32.5 percent'' 
                and inserting ``25 percent''; and
                  (C) in paragraph (4)--
                          (i) by striking ``25 percent'' and inserting 
                        ``35 percent''; and
                          (ii) by striking ``contract management,'' and 
                        all that follows through the period at the end 
                        and inserting ``and contract management.'';
          (3) in subsection (f), by striking ``Ultra-Deepwater and 
        Unconventional Natural Gas and Other Petroleum Research Fund'' 
        and inserting ``Safer Oil and Natural Gas Drilling Technology 
        Research and Development Fund''; and
          (4) at the end of the section, by inserting the following new 
        subsection:
  ``(g) Coordination and Nonduplication.--The Secretary shall ensure, 
to the maximum extent practicable, that the research activities carried 
out by the consortium funded under paragraphs (1), (2), and (3) of 
subsection (d), and the research activities carried out by the 
Department of Energy as funded by subsection (d)(4), shall be 
coordinated and not duplicative of one another.''.

SEC. 7. CONFORMING AMENDMENTS.

  The table of contents of the Energy Policy Act of 2005 is amended--
          (1) by amending the item relating to subtitle J of title IX 
        to read as follows:

 ``Subtitle J--Safer Oil and Natural Gas Drilling Technology Research 
                       and Development Program'';

          (2) by amending the item relating to section 999B to read as 
        follows:

``Sec. 999B. Safer Oil and Natural Gas Drilling Technology Research and 
Development Program.'';

        and
          (3) by amending the item relating to section 999D to read as 
        follows:

``Sec. 999D. Program Advisory Committee.''.

                              II. Purpose

    The purpose of this bill is to provide for the enhancement 
of existing efforts in support of research, development, 
demonstration, and commercial application activities to advance 
technologies for the safe and environmentally responsible 
exploration, development, and production of oil and natural gas 
resources.

              III. Background and Need for the Legislation

    On April 20, 2010, an explosion and fire occurred on the BP 
Deepwater Horizon drilling rig as it completed the final stages 
of an exploratory well in approximately 5,000 feet of water. 
The rig capsized and sank two days later, leaving an 
uncontrolled flow of oil and gas from the wellhead, and 
resulting in the largest oil spill in U.S. history. While an 
investigation into the exact cause of the Deepwater Horizon 
accident is ongoing, it is understood to be a confluence of 
critical human errors and the failure of certain equipment 
designed to stop such an incident.
    Initial investigations of the Deepwater Horizon incident 
indicate that, in addition to a series of operator errors that 
compromised wellbore integrity, the highest-consequence 
technology failure lay in the inability of the Blowout 
Preventer (BOP) in immediately terminating oil and gas flow 
from the well. The BOP is a very large mechanism positioned at 
the wellhead on the seafloor, and is comprised of a series of 
high pressure hydraulic valves designed to stop an uncontrolled 
flow of oil and gas from the well. As a failsafe option of last 
resort, a BOP includes at least one ``blind shear ram'' which 
uses two blades to cut through the metal drill pipe and seal 
the wellbore. A BOP can be activated by personnel from the 
drill rig, automatically via a ``deadman switch'', via acoustic 
signal from a vessel other than the drill rig, or manually by 
remotely-operated vehicles (ROV). ROVs also perform a range of 
other deepwater functions. The crew aboard the Deepwater 
Horizon attempted unsuccessfully to activate the BOP before 
evacuating the rig, and subsequent attempts to activate the BOP 
using ROVs and other methods also failed. A number of 
stakeholders inside and outside of the industry, including the 
CEO of BP, have concluded that the design of blowout preventers 
must be rethought altogether. Witnesses at the June 9th, 2010, 
and June 23rd, 2010, Science and Technology Committee hearings 
testified about the need for industry and government-sponsored 
research into BOPs and a range of other accident prevention and 
mitigation technologies and practices.
    Deepwater drilling presents a unique set of technological 
challenges, including for environmental and worker safety, and 
accident prevention and mitigation. Operations must be 
optimized for the extreme pressures, stresses, and temperature 
variations that can affect the subsea and surface equipment and 
architecture, drilling materials, and the hydrocarbon reservoir 
itself. Consequently, the industry has invested billions of 
dollars in researching and developing advanced drilling systems 
specific to the deepwater and ultra-deepwater, especially those 
technologies which represent an increase in production 
efficiency. However, many contend that the industry has not 
devoted comparable resources to the development of technologies 
and methods for accident prevention and mitigation in the 
deepwater. Furthermore, while the technological demands differ 
between onshore and offshore, the onshore industry sector, 
including small producers, faces similar challenges in ensuring 
the safe and environmentally responsible exploration and 
production of oil and natural gas.
    Section 999 of the Energy Policy Act of 2005 authorizes the 
Secretary of Energy to establish an ``Ultra-Deepwater and 
Unconventional Onshore Natural Gas and Other Petroleum 
Resources'' research and development program. Management of the 
999 program was awarded to a research consortium known as the 
Research Partnership to Secure Energy for America (RPSEA), 
which is overseen for DOE by the National Energy Technology 
Laboratory (NETL). The program is funded through $50 million in 
annual mandatory spending from offshore oil and gas royalty 
revenues collected by the Department of Interior. Of this, DOE 
conducts approximately $12.5 million (25 percent) of ``in-
house'' research at NETL. The remaining $37.5 million (75 
percent) is managed by the research consortium, RPSEA, and is 
divided into three parts: ultra-deepwater architecture and 
technology; unconventional onshore natural gas and other 
resources; and technology challenges of small producers. RPSEA 
currently has approximately 170 members, with representation 
from industry, academia, NGOs, and government laboratories and 
programs.
    In the wake of the Deepwater Horizon tragedy, questions 
have arisen as to how the program activities authorized by 
Section 999 could better serve the nation in the development of 
advanced environmental and worker safety technologies and 
practices for oil and gas exploration and production, while 
also bolstering the federal government's technical expertise on 
deepwater, ultra-deepwater, and unconventional onshore drilling 
technologies.

                          IV. Hearing Summary

    On June 23, 2010, the House Committee on Science and 
Technology, Subcommittee on Energy and Environment, held a 
hearing entitled ``Deepwater Drilling Technology, Research, and 
Development.'' The purpose of the hearing was to explore the 
technologies, standards, and practices for prevention and 
mitigation of oil spills during deepwater oil and natural gas 
drilling operations; to understand the current and potential 
role of government-sponsored technology development programs in 
advancing these technologies; and, in the wake of the Deepwater 
Horizon tragedy, to discuss how firms will assess risk as it 
relates to incident prevention and mitigation. The following 
witnesses testified at the hearing:
     Mr. James Pappas--Vice President, Technical 
Programs, Research Partnership to Secure Energy for America 
(RPSEA). Mr. Pappas discussed the unique technological 
challenges of oil and natural gas drilling in deepwater and 
ultra-deepwater, as well as the potential role of RPSEA in 
developing technologies to prevent and mitigate incidents.
     Dr. Benton Baugh--President, Radoil, Inc. and 
member of the National Academy of Engineering. Dr. Baugh 
addressed the adequacy of existing systems for incident 
prevention and mitigation, as well as the need for 
technological advances and the processes for deploying new 
technologies in the field.
     Mr. Erik Milito--Group Director, Upstream and 
Industry Operations, American Petroleum Institute. Mr. Milito 
addressed the process for developing technical standards and 
best practices for deepwater drilling incident prevention and 
mitigation.
     Mr. Gregory McCormack--Director, Petroleum 
Extension Service, University of Texas at Austin. Mr. McCormack 
addressed the need for research to advance worker training as 
well as health and environmental safety practices in the oil 
and natural gas drilling industry.

                          V. Committee Actions

    H.R. 5716 was introduced on July 13, 2010 by Representative 
Bart Gordon.
    On July 14, 2010 the Committee on Science and Technology 
met to consider H.R. 5716. The following five amendments were 
offered:
          1. A manager's amendment offered by Mr. Gordon making 
        technical and clarifying changes; expanding the scope 
        of the Department of Energy research program to include 
        methodologies for risk management, research on human 
        factors in safety, and comparisons to other high-risk 
        industries; specifying that the Advisory Committee 
        members must be highly technically qualified; and 
        adding a new section to ensure that RPSEA and DOE 
        activities are coordinated and not duplicative; The 
        amendment was adopted by voice vote.
          2. An amendment by Mr. Garamendi instructing the 
        Secretary to consult with other federal agencies, 
        including those involved in the Interagency Coordinated 
        Council on Oil Pollution Research; The amendment was 
        adopted by voice vote.
          3. An amendment by Mr. McCaul adding a requirement 
        for the RPSEA program to focus on materials and methods 
        that reduce the environmental impacts of exploration 
        and production in both deepwater and unconventional 
        onshore research; The amendment was adopted by voice 
        vote.
          4. An amendment by Mr. Inglis requiring the annual 
        report to include a summary of operational safety and 
        environmental mitigation research; The amendment was 
        adopted by voice vote.
          5. An amendment by Mr. Inglis requiring the Secretary 
        to issue solicitations for safety and accident 
        prevention research; The amendment was adopted by voice 
        vote.
          An additional amendment by Ms. Edwards was listed on 
        the roster but not offered.
    The bill was favorably reported by voice vote to the House.

              VI. Summary of Major Provisions of the Bill

    H.R. 5716 makes a series of important changes to refocus 
and streamline the research activities authorized by Section 
999 of the Energy Policy Act of 2005. The bill renames the 
program the ``Safer Oil and Natural Gas Drilling Technology 
Research and Development Program'', and shifts much of the 
focus of RPSEA from technologies to increase production, to 
research and development on a range of technologies and 
practices for safety, accident prevention, energy and waste 
reduction, and overall environmental impact mitigation of oil 
and gas exploration activities.
    The bill consolidates the two current advisory committees 
into one advisory committee to be known as the ``Program 
Advisory Committee''; specifies membership of the Advisory 
Committee and their qualifications; authorizes the 
establishment of subcommittees and ad-hoc working groups; 
specifies the members' duties and compensation; and prohibits 
the Advisory Committee from making recommendations for specific 
awards.
    The bill also adds a new ``Safety, and Accident Prevention 
and Mitigation, Technology Research and Development Program'', 
to be conducted by DOE, which will focus research on areas such 
as: enhanced well control and integrity; blowout prevention 
devices; secondary control systems for well shut-off; 
technologies for accident mitigation; risk assessment 
methodologies; equipment testing for extreme conditions; human 
factors research for developing safety best practices; well 
diagnostics; determining flow rate; and other areas as 
determined by the Secretary.
    In addition to changing the focus areas of the program the 
bill also changes the allocation of the $50 million annual 
funding by increasing the Department of Energy's share from 25 
percent to 35 percent, and decreasing the allocation for the 
RPSEA consortium research accordingly.

                    VII. Section-by-Section Analysis


Section 1. Short title

    Safer Oil and Natural Gas Drilling Technology Research and 
Development Act.

Section 2. Subtitle amendment

    Amends Subtitle J of title IX of the Energy Policy Act of 
2005 (42 U.S.C. 16371 et seq.) that authorized the ``Ultra-
Deepwater and Unconventional Natural Gas and Other Petroleum 
Resources'' program, to authorize the ``Safer Oil and Natural 
Gas Drilling Technology Research and Development Program''.

Section 3. Safer Oil and Natural Gas Drilling Technology Research and 
        Development Program

    (a) Program Authority--Amends Section 999A of EPAct 2005 
by:
          (1) replacing ``ultra-deepwater'' with ``deepwater'';
          (2) inserting ``accident prevention and mitigation'' 
        as a program activity; by specifying that the program 
        elements shall include deepwater activities in depths 
        greater than 1000 feet;
          (3) specifying that complementary research will be 
        carried out by the Department of Energy, Office of 
        Fossil Energy, instead of specifying the National 
        Energy Technology Laboratory;
          (4) instructing the Secretary to consult with the 
        Department of Interior and other federal agencies, 
        including those serving on, or collaborating with, the 
        Interagency Coordinating Committee on Oil Pollution 
        Research;
          (5) instructing the Secretary shall seek to establish 
        partnerships with outside stakeholders for research not 
        likely to be undertaken by the private section alone.
    (b) Program Elements--Amends Section 999B of EPAct 2005 by:
          (1) changing program name to ``Safer Oil and Gas 
        Drilling Technology Research and Development Program'';
          (2) amending the IN GENERAL subsection to focus on 
        advancing the safe and environmentally responsible 
        exploration, development, and production of natural gas 
        and other petroleum resources;
          (3) specifying that projects will be selected on a 
        competitive basis;
          (4) making a small clarifying change in the 
        underlying act;
          (5) making significant changes to the areas on which 
        the program should focus to include the following:
                  (A) DEEPWATER RESOURCES R&D; will focus on 
                safer and more environmentally responsible 
                technologies, integrated systems, 
                architectures, methods, and materials for 
                deepwater exploration and production, adapting 
                operations to extreme weather and ocean 
                conditions, and other activities;
                  (B) UNCONVENTIONAL ONSHORE R&D; will, in 
                addition to maintaining some of its existing 
                focus, also focus on more energy efficient 
                operations, methods and materials that reduce 
                environmental impact, improved management of 
                produced water, and accident prevention and 
                mitigation;
                  (C) SMALL PRODUCERS R&D; will, in addition to 
                maintaining some of its existing focus on 
                technology challenges of small producers, also 
                focus on safety, accident prevention, and well 
                control and systems integrity, environmental 
                mitigation, waste reduction, and energy 
                efficient operations, including for tar sands 
                and oil shale;
                  (D) Adds a new SAFETY, ACCIDENT PREVENTION 
                AND MITIGATION TECHNOLOGY RESEARCH AND 
                DEVELOPMENT program to be conducted by the 
                Department of Energy. In addition to continuing 
                some ongoing activities, the Deparment's in-
                house activities may include research into: 
                technologies and practices to enhance well 
                control and integrity, blowout prevention 
                devices, research on best practices for 
                workforce training and workplace design, 
                secondary control systems for well shut-off, 
                technologies for accident mitigation, 
                methodologies for risk management, and other 
                activities as determined by the Secretary;
          (6) makes conforming changes to the Annual Plan to be 
        submitted by the Secretary, including a summary of 
        ongoing and planned activities focused on safety and 
        environmental impact, and also includes a new 
        requirement for the Secretary to publish an annual 
        report on the research findings and recommendations for 
        implementation;
          (7) requires the Secretary to include safety and 
        accident prevention as specific focus areas for 
        solicitations;
          (8) makes minor conforming changes;
          (9) instructs the Office of Fossil Energy to oversee 
        the program, instead of the National Energy Technology 
        Laboratory specifically.

Section 4. Program Advisory Committee

    Amends Section 999D of EPAct 2005 by making substantial 
changes to the current advisory committee structure. Most 
importantly, the two advisory committees known as the ``Ultra-
Deepwater Advisory Committee'' and the ``Unconventional 
Resources Technology Advisory Committee'' will be consolidated 
into one advisory committee to be known as the ``Program 
Advisory Committee.'' The section also specifies the scientific 
and technical qualifications for members of the Advisory 
Committee, authorizes the establishment of subcommittees and 
ad-hoc working groups, specifies the duties and compensation, 
and prohibits the Advisory Committee from making 
recommendations for specific awards.

Section 5. Definitions

    Amends Section 999G of EPAct 2005 by:
          (1) changing the definition of ``Deepwater'' to be 
        greater than 1000 feet;
          (2) striking definitions for ultra-deepwater, ultra-
        deepwater technology, and ultra-deepwater architecture;
          (3) making conforming changes;
          (4) inserting a new definition for ``DEEPWATER 
        ARCHITECTURE'' and ``DEEPWATER TECHNOLOGY''.

Section 6. Funding

        Amends Section 999H of EPAct 2005 by:
          (1) renaming the fund;
          (2) changing the allocations to the program focus 
        areas by:
                  (A) decreasing funding for Deepwater R&D; at 
                RPSEA to 32.5 percent from 35 percent;
                  (B) decreasing funding for Unconventional 
                Resources R&D; at RPSEA to 25 percent from 32.5 
                percent;
                  (C) increasing funding for Safety and 
                Accident Prevention and Mitigation R&D; at the 
                Department of Energy to 35 percent from 25 
                percent, and making changes to the duties of 
                the Department in managing the outside research 
                consortium;
          (3) making a small conforming change;
          (4) inserting a new section to ensure that the 
        research programs at RPSEA and DOE are coordinated and 
        non-duplicative of one another.

Section 7. Conforming changes

    Makes changes to the table of contents of EPAct 2005.

                         VIII. Committee Views

    It is the Committee's view that the BP Deepwater Horizon 
tragedy highlighted a number of critical gaps in the capacity 
of the oil and natural gas industry and government agencies in 
preventing and responding to catastrophic deepwater blowouts 
and large oil spills. The incident not only requires an 
unprecedented response and cleanup effort, it should also serve 
to focus research and development activities on advancing the 
engineering and scientific understanding of a range of 
technologies and practices designed to avoid and mitigate such 
incidents at the wellhead.
    It is the Committee's view that this area of research is 
best undertaken by a combination of public and private sector 
entities and academia, and that existing efforts are likely the 
most efficient and effective means for the rapid development 
and commercial application of new technologies and practices. 
If properly realigned to meet current challenges, the research 
programs at the National Energy Technology Laboratory and the 
Research Partnership to Secure Energy for America, as 
authorized by Section 999, represent the Department of Energy's 
best resources for improving safety and reducing the 
environmental impact of offshore and onshore oil and natural 
gas exploration and production activities.

                           IX. Cost Estimate

    A cost estimate and comparison prepared by the Director of 
the Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974 has been timely submitted to 
the Committee on Science and Technology prior to the filing of 
this report and is included in Section X of this report 
pursuant to House Rule XIII, clause 3(c)(3).
    H.R. 5716 does not contain new budget authority, credit 
authority, or changes in revenues or tax expenditures.

              X. Congressional Budget Office Cost Estimate

                                                     July 19, 2010.
Hon. Bart Gordon,
Chairman, Committee on Science and Technology,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 5716, the Safer 
Oil and Natural Gas Drilling Technology Research and 
Development Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Jeff LaFave.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 5716--Safer Oil and Natural Gas Drilling Technology Research and 
        Development Act

    H.R. 5716 would amend an existing research and development 
program related to technologies for oil and natural gas 
drilling. Under the bill, the program would be modified to 
include activities related to controlling hydrocarbon wells and 
accident prevention. Under current law, the program is 
authorized to receive an appropriation of $100 million and has 
mandatory spending authority of $50 million annually through 
2014. CBO estimates that implementing the legislation would 
have no significant impact on the federal budget. Enacting H.R. 
5716 would not affect direct spending or revenues; therefore, 
pay-as-you-go procedures would not apply.
    H.R. 5716 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on state, local, or tribal governments.
    The CBO staff contact for this estimate is Jeff LaFave. The 
estimate was approved by Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                  XI. Compliance With Public Law 104-4

    H.R. 5716 contains no unfunded mandates.

         XII. Committee Oversight Findings and Recommendations

    The oversight findings and recommendations of the Committee 
on Science and Technology are reflected in the body of this 
report.

      XIII. Statement on General Performance Goals and Objectives

    Pursuant to clause 3(c) of House Rule XIII, the goals of 
H.R. 5716 are refocus the existing ``Ultra-Deepwater and 
Unconventional Onshore Natural Gas and Other Petroleum 
Resources'' research and development program to shift much of 
the focus of the program from technologies to increase 
production, to research and development on a range of 
technologies and practices for safety, accident prevention, 
energy and waste reduction, and overall environmental impact 
mitigation of oil and gas exploration activities, and rename 
the program the, ``Safer Oil and Natural Gas Drilling 
Technology Research and Development Program.''

                XIV. Constitutional Authority Statement

    Article I, section 8 of the Constitution of the United 
States grants Congress the authority to enact H.R. 5716.

                XV. Federal Advisory Committee Statement

    H.R. 5716 does not establish nor authorize the 
establishment of any advisory committee, although the bill does 
amend certain aspects of existing advisory committees related 
to the program.

                 XVI. Congressional Accountability Act

    The Committee finds that H.R. 5716 does not relate to the 
terms and conditions of employment or access to public services 
or accommodations within the meaning of section 102(b)(3) of 
the Congressional Accountability Act (Public Law 104-1).

                      XVII. Earmark Identification

    H.R. 5716 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI.

     XVIII. Statement on Preemption of State, Local, or Tribal Law

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

       XIX. 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):

                       ENERGY POLICY ACT OF 2005


SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) * * *
  (b) Table of Contents.--The table of contents for this Act is 
as follows:
     * * * * * * *

                   TITLE IX--RESEARCH AND DEVELOPMENT

     * * * * * * *

 [Subtitle J--Ultra-Deepwater and Unconventional Natural Gas and Other 
                          Petroleum Resources]

 Subtitle J--Safer Oil and Natural Gas Drilling Technology Research and 
                           Development Program

     * * * * * * *
[Sec. 999B. Ultra-deepwater and unconventional onshore natural gas and 
          other petroleum research and development program.]
Sec. 999B. Safer Oil and Natural Gas Drilling Technology Research and 
          Development Program.
     * * * * * * *
[Sec. 999D. Advisory committees.]
Sec. 999D. Program Advisory Committee.

           *       *       *       *       *       *       *


TITLE IX--RESEARCH AND DEVELOPMENT

           *       *       *       *       *       *       *


 Subtitle J--[Ultra-Deepwater and Unconventional Natural Gas and Other 
  Petroleum Resources] Safer Oil and Natural Gas Drilling Technology 
                    Research and Development Program

SEC. 999A. PROGRAM AUTHORITY.

  (a) In General.--The Secretary shall carry out a program 
under this subtitle of research, development, demonstration, 
and commercial application of technologies for [ultra-
deepwater] deepwater and unconventional natural gas and other 
petroleum resource exploration and production, including 
addressing the technology challenges for small producers, safe 
operations, well control and accident prevention, and 
environmental mitigation (including reduction of greenhouse gas 
emissions and sequestration of carbon).
  (b) Program Elements.--The program under this subtitle shall 
address the following areas, including improving safety, 
accident prevention and mitigation, and minimizing 
environmental impacts of activities within each area:
          [(1) Ultra-deepwater architecture and technology, 
        including drilling to formations in the Outer 
        Continental Shelf to depths greater than 15,000 feet.]
          (1) Deepwater architecture and technology, including 
        those for drilling to formations in water depths 
        greater than 1,000 feet.

           *       *       *       *       *       *       *

          [(4) Complementary research performed by the National 
        Energy Technology Laboratory for the Department.]
          (4) Complementary research carried out by the 
        Department.

           *       *       *       *       *       *       *

  (d) Activities at the [National Energy Technology Laboratory] 
Department of Energy.--The Secretary, through the [National 
Energy Technology Laboratory] Office of Fossil Energy of the 
Department, shall carry out a program of research and other 
activities complementary to and supportive of the research 
programs under subsection (b).
  (e) Consultation With [Secretary of the Interior] Other 
Federal Agencies.--In carrying out this subtitle, the Secretary 
shall consult regularly with the Secretary of the Interior and 
other agencies as appropriate, including those serving on, and 
collaborating with, the Interagency Coordinating Committee on 
Oil Pollution Research as established under section 7001 of the 
Oil Pollution Act of 1990 (33 U.S.C. 2761(a)).
  (f) Partnerships.--In carrying out the program under this 
subtitle, the Secretary shall seek to establish partnerships 
with eligible research performers, as described by section 
999E, to undertake research and development not likely 
otherwise to be undertaken in the absence of support from the 
program.

SEC. 999B. [ULTRA-DEEPWATER AND UNCONVENTIONAL ONSHORE NATURAL GAS AND 
                    OTHER PETROLEUM] SAFER OIL AND NATURAL GAS DRILLING 
                    TECHNOLOGY RESEARCH AND DEVELOPMENT PROGRAM.

  [(a) In General.--The Secretary shall carry out the 
activities under section 999A, to maximize the value of natural 
gas and other petroleum resources of the United States, by 
increasing the supply of such resources, through reducing the 
cost and increasing the efficiency of exploration for and 
production of such resources, while improving safety and 
minimizing environmental impacts.]
  (a) In General.--The Secretary shall carry out the activities 
under section 999A to maximize the benefits of natural gas and 
other petroleum resources of the United States by advancing the 
safe and environmentally responsible exploration, development, 
and production of those resources.

           *       *       *       *       *       *       *

  (c) Role of the Program Consortium.--
          (1) In general.--The Secretary shall contract with a 
        corporation that is structured as a consortium to 
        administer the programmatic activities outlined in this 
        chapter. The program consortium shall--
                  (A) * * *

           *       *       *       *       *       *       *

                  (D) select projects on a competitive basis;
                  [(D)] (E) disburse research funds to research 
                performers awarded under subsection (f) as 
                directed by the Secretary in accordance with 
                the annual plan under subsection (e); and
                  [(E)] (F) carry out other activities assigned 
                to the program consortium by this section.

           *       *       *       *       *       *       *

          (3) Conflict of interest.--
                  (A) Procedures.--The Secretary shall 
                establish procedures--
                          (i)   * * *
                          (ii) to require any board member, 
                        officer, or employee with a financial 
                        relationship or interest disclosed 
                        under clause (i) to recuse himself or 
                        herself from any oversight [under 
                        subsection (f)(4)] with respect to such 
                        applicant or recipient.

           *       *       *       *       *       *       *

  (d) Selection of the Program Consortium.--
          (1) * * *

           *       *       *       *       *       *       *

          (6) Eligibility.--To be eligible to be selected as 
        the program consortium, an applicant must be an entity 
        whose members have collectively demonstrated 
        capabilities and experience in planning and managing 
        research, development, demonstration, and commercial 
        application programs for [ultra-deepwater] deepwater 
        and unconventional natural gas or other petroleum 
        exploration or production.
          [(7) Focus areas for awards.--
                  [(A) Ultra-deepwater resources.--Awards from 
                allocations under section 999H(d)(1) shall 
                focus on the development and demonstration of 
                individual exploration and production 
                technologies as well as integrated systems 
                technologies including new architectures for 
                production in ultra-deepwater.
                  [(B) Unconventional resources.--Awards from 
                allocations under section 999H(d)(2) shall 
                focus on areas including advanced coalbed 
                methane, deep drilling, natural gas production 
                from tight sands, natural gas production from 
                gas shales, stranded gas, innovative 
                exploration and production techniques, enhanced 
                recovery techniques, and environmental 
                mitigation of unconventional natural gas and 
                other petroleum resources exploration and 
                production.
                  [(C) Small producers.--Awards from 
                allocations under section 999H(d)(3) shall be 
                made to consortia consisting of small producers 
                or organized primarily for the benefit of small 
                producers, and shall focus on areas including 
                complex geology involving rapid changes in the 
                type and quality of the oil and gas reservoirs 
                across the reservoir; low reservoir pressure; 
                unconventional natural gas reservoirs in 
                coalbeds, deep reservoirs, tight sands, or 
                shales; and unconventional oil reservoirs in 
                tar sands and oil shales.]
          (7) Focus areas for awards.--
                  (A) Deepwater resources.--Awards from 
                allocations under section 999H(d)(1) shall 
                focus on research, development, demonstration, 
                and commercial application activities in areas 
                that include--
                          (i) technologies and systems aimed at 
                        improving operational safety and 
                        reducing potential environmental 
                        impacts of deepwater exploration and 
                        production activities, including--
                                  (I) wellbore integrity, well 
                                control, and blowout 
                                prevention;
                                  (II) capture and containment 
                                of oil at or near the wellhead; 
                                and
                                  (III) expanding operational 
                                capabilities and efficiency of 
                                remotely operated devices and 
                                mechanics;
                          (ii) safe and environmentally 
                        responsible deepwater exploration and 
                        production technologies, integrated 
                        systems, and architectures for 
                        enhancing oil and natural gas drilling 
                        and recovery, including under extreme 
                        conditions;
                          (iii) methods and technologies for 
                        severe weather and ocean surface 
                        condition preparedness;
                          (iv) utilization of exploration and 
                        production methods and materials that 
                        reduce the potential impact of such 
                        activities on the environment; and
                          (v) other areas as determined 
                        appropriate by the Secretary.
                  (B) Unconventional onshore resources.--Awards 
                from allocations under section 999H(d)(2) shall 
                focus on research, development, demonstration, 
                and commercial application activities in areas 
                that include--
                          (i) advanced coalbed methane, deep 
                        drilling, natural gas production from 
                        tight sands, natural gas production 
                        from gas shales, stranded gas, 
                        innovative exploration and production 
                        techniques, and enhanced recovery 
                        techniques;
                          (ii) increased efficiency of energy 
                        use in exploration and production 
                        activities;
                          (iii) utilization of exploration and 
                        production methods and materials that 
                        reduce the potential impact of such 
                        activities on the environment;
                          (iv) recovery, utilization, 
                        reduction, and improved management of 
                        produced water from exploration and 
                        production activities; and
                          (v) accident prevention and 
                        mitigation of unconventional natural 
                        gas and other petroleum resources 
                        exploration and production.
                  (C) Small producers.--Awards from allocations 
                under section 999H(d)(3) shall be made to 
                consortia consisting of small producers or 
                organized primarily for the benefit of small 
                producers, and shall focus on areas that 
                include--
                          (i) safety and accident prevention, 
                        environmental mitigation, waste 
                        reduction, reduction of energy use, and 
                        well control and systems integrity;
                          (ii) complex geology involving rapid 
                        changes in the type and quality of the 
                        oil and gas reserves across the 
                        reservoir;
                          (iii) low reservoir pressure and 
                        unconventional natural gas reservoirs 
                        in coalbeds, deep reservoirs, tight 
                        sands, or shales; and
                          (iv) advancing energy efficient, 
                        safe, and environmentally responsible 
                        production of unconventional oil 
                        reservoirs in tar sands and oil shales.
                  (D) Safety, and accident prevention and 
                mitigation, technology research and development 
                by the department.--Awards from allocations 
                under section 999H(d)(4) shall focus on safety, 
                and accident prevention and mitigation, 
                research, development, demonstration, and 
                commercial application activities in areas that 
                may include--
                          (i) improved technologies and best 
                        management practices for enhanced well 
                        integrity including--
                                  (I) cementing;
                                  (II) casing;
                                  (III) wellbore sealant 
                                technologies;
                                  (IV) well-plugging and 
                                abandonment;
                                  (V) improvement and 
                                standardization of blowout 
                                prevention devices;
                                  (VI) actuation and pressure 
                                testing; and
                                  (VII) other well control 
                                activities;
                          (ii) research to aid in the 
                        development of industry best practices 
                        and standards for workforce training, 
                        design of safe workplace environments, 
                        and safety related decisionmaking 
                        processes, including by drawing on 
                        existing research into human factors 
                        and safety related practices in fields 
                        such as the nuclear energy, aviation, 
                        and automotive industries;
                          (iii) secondary control systems to 
                        activate blowout prevention devices and 
                        terminate well-flow, including--
                                  (I) deadman switches;
                                  (II) automatic shears; and
                                  (III) remote acoustic 
                                switches;
                          (iv) technologies and methods for 
                        accident mitigation, including--
                                  (I) capture, containment, or 
                                dispersing of oil at or near 
                                the wellhead;
                                  (II) estimating flow rate;
                                  (III) diagnostic sensors to 
                                determine equipment 
                                malfunction; and
                                  (IV) procedures to terminate 
                                flow;
                          (v) continuing ongoing efforts, 
                        including in resource assessment and 
                        characterization, and in simulation of 
                        safe and effective drilling under 
                        extreme conditions, including high 
                        temperatures and pressures;
                          (vi) development of methodologies for 
                        risk management decisionmaking, 
                        including comparative risk analysis and 
                        quantitative risk assessment of 
                        potential for failure in the 
                        technologies, management practices, and 
                        systems studies under this subsection; 
                        and
                          (vii) other activities as described 
                        in this paragraph or as determined 
                        appropriate by the Secretary.
  (e) Annual Plan.--
          (1) * * *
          (2) Development.--
                  (A) Solicitation of recommendations.--Before 
                drafting an annual plan under this subsection, 
                the Secretary shall solicit specific written 
                recommendations from the program consortium for 
                each element to be addressed in the plan, 
                including those described in paragraph (4). The 
                program consortium shall submit to the 
                Secretary for review its recommendations in the 
                form of a draft annual plan.
                  (B) Submission of recommendations; other 
                comment.--The Secretary shall submit the 
                recommendations of the program consortium under 
                subparagraph (A) to the [Ultra-Deepwater 
                Advisory Committee established under section 
                999D(a) and to the Unconventional Resources 
                Technology Advisory Committee established under 
                section 999D(b), and such Advisory Committees] 
                Program Advisory Committee established under 
                section 999D(a), and the Advisory Committee 
                shall provide to the Secretary written comments 
                by a date determined by the Secretary. The 
                Secretary may also solicit comments from any 
                other experts.

           *       *       *       *       *       *       *

          (4) Contents.--The annual plan shall describe the 
        ongoing and prospective activities of the program under 
        this section and shall include--
                  (A) a list of any solicitations for awards to 
                carry out research, development, demonstration, 
                or commercial application activities, including 
                the topics for such work, who would be eligible 
                to apply, selection criteria, and the duration 
                of awards; [and]
                  (B) a description of the activities expected 
                of the program consortium to carry out 
                subsection (f)(3)[.]; and
                  (C) a summary of ongoing and planned 
                activities aimed at improving operational 
                safety and reducing potential environmental 
                impacts of exploration and production.

           *       *       *       *       *       *       *

          (6) Research findings and recommendations for 
        implementation.--The Secretary shall publish in the 
        Federal Register an annual report on the research 
        findings of the program carried out under this section 
        and any recommendations for implementation that the 
        Secretary determines to be necessary.
  (f) Awards.--
          (1) * * *
          (2) Proposals.--Upon approval of the Secretary the 
        program consortium shall solicit proposals for awards 
        under this subsection in such manner and at such time 
        as the Secretary may prescribe, in consultation with 
        the program consortium. In carrying out this 
        subsection, the Secretary shall ensure that safety and 
        accident prevention and mitigation be regularly 
        included as specific focus areas for solicitations.

           *       *       *       *       *       *       *

  (i) Activities by the [United States Geological Survey] 
Department of the Interior.--The Secretary of the Interior[, 
through the United States Geological Survey,] shall, where 
appropriate, carry out programs of long-term research to 
complement the programs under this section.
  (j) Program Review and Oversight.--The [National Energy 
Technology Laboratory] Office of Fossil Energy of the 
Department, on behalf of the Secretary, shall (1) issue a 
competitive solicitation for the program consortium, (2) 
evaluate, select, and award a contract or other agreement to a 
qualified program consortium, and (3) have primary review and 
oversight responsibility for the program consortium, including 
review and approval of research awards proposed to be made by 
the program consortium, to ensure that its activities are 
consistent with the purposes and requirements described in this 
subtitle. Up to 5 percent of program funds allocated under 
paragraphs (1) through (3) of section 999H(d) may be used for 
this purpose, including program direction and the establishment 
of a site office if determined to be necessary to carry out the 
purposes of this subsection.

           *       *       *       *       *       *       *


[SEC. 999D. ADVISORY COMMITTEES.

  [(a) Ultra-Deepwater Advisory Committee.--
          [(1) Establishment.--Not later than 270 days after 
        the date of enactment of this Act, the Secretary shall 
        establish an advisory committee to be known as the 
        Ultra-Deepwater Advisory Committee.
          [(2) Membership.--The Advisory Committee under this 
        subsection shall be composed of members appointed by 
        the Secretary, including--
                  [(A) individuals with extensive research 
                experience or operational knowledge of offshore 
                natural gas and other petroleum exploration and 
                production;
                  [(B) individuals broadly representative of 
                the affected interests in ultra-deepwater 
                natural gas and other petroleum production, 
                including interests in environmental protection 
                and safe operations;
                  [(C) no individuals who are Federal 
                employees; and
                  [(D) no individuals who are board members, 
                officers, or employees of the program 
                consortium.
          [(3) Duties.--The Advisory Committee under this 
        subsection shall--
                  [(A) advise the Secretary on the development 
                and implementation of programs under this 
                subtitle related to ultra-deepwater natural gas 
                and other petroleum resources; and
                  [(B) carry out section 999B(e)(2)(B).
          [(4) Compensation.--A member of the Advisory 
        Committee under this subsection shall serve without 
        compensation but shall receive travel expenses in 
        accordance with applicable provisions under subchapter 
        I of chapter 57 of title 5, United States Code.
  [(b) Unconventional Resources Technology Advisory 
Committee.--
          [(1) Establishment.--Not later than 270 days after 
        the date of enactment of this Act, the Secretary shall 
        establish an advisory committee to be known as the 
        Unconventional Resources Technology Advisory Committee.
          [(2) Membership.--The Secretary shall endeavor to 
        have a balanced representation of members on the 
        Advisory Committee to reflect the breadth of geographic 
        areas of potential gas supply. The Advisory Committee 
        under this subsection shall be composed of members 
        appointed by the Secretary, including--
                  [(A) a majority of members who are employees 
                or representatives of independent producers of 
                natural gas and other petroleum, including 
                small producers;
                  [(B) individuals with extensive research 
                experience or operational knowledge of 
                unconventional natural gas and other petroleum 
                resource exploration and production;
                  [(C) individuals broadly representative of 
                the affected interests in unconventional 
                natural gas and other petroleum resource 
                exploration and production, including interests 
                in environmental protection and safe 
                operations;
                  [(D) individuals with expertise in the 
                various geographic areas of potential supply of 
                unconventional onshore natural gas and other 
                petroleum in the United States;
                  [(E) no individuals who are Federal 
                employees; and
                  [(F) no individuals who are board members, 
                officers, or employees of the program 
                consortium.
          [(3) Duties.--The Advisory Committee under this 
        subsection shall--
                  [(A) advise the Secretary on the development 
                and implementation of activities under this 
                subtitle related to unconventional natural gas 
                and other petroleum resources; and
                  [(B) carry out section 999B(e)(2)(B).
          [(4) Compensation.--A member of the Advisory 
        Committee under this subsection shall serve without 
        compensation but shall receive travel expenses in 
        accordance with applicable provisions under subchapter 
        I of chapter 57 of title 5, United States Code.
  [(c) Prohibition.--No advisory committee established under 
this section shall make recommendations on funding awards to 
particular consortia or other entities, or for specific 
projects.]

SEC. 999D. PROGRAM ADVISORY COMMITTEE.

  (a) Establishment.--Not later than 90 days after the date of 
enactment of the Safer Oil and Natural Gas Drilling Technology 
Research and Development Act, the Secretary shall establish an 
advisory committee to be known as the ``Program Advisory 
Committee'' (referred to in this section as the ``Advisory 
Committee'').
  (b) Membership.--
          (1) In general.--The Advisory Committee shall be 
        composed of members appointed by the Secretary, each of 
        whom shall be qualified by education, training, and 
        experience to evaluate scientific and technical 
        information relevant to the research, development, and 
        demonstration under this subtitle. Members shall 
        include--
                  (A) individuals with extensive research 
                experience or operational knowledge of oil and 
                natural gas exploration and production;
                  (B) individuals broadly representative of the 
                affected interests in oil and natural gas 
                production, including interests in 
                environmental protection and operational 
                safety;
                  (C) State regulatory agency representatives; 
                and
                  (D) other individuals, as determined by the 
                Secretary.
          (2) Limitations.--
                  (A) In general.--The Advisory Committee shall 
                not include individuals who are board members, 
                officers, or employees of the program 
                consortium.
                  (B) Categorical representation.--In 
                appointing members of the Advisory Committee, 
                the Secretary shall ensure that no class of 
                individuals described in any of subparagraphs 
                (B), (C), or (D) of paragraph (1) comprises 
                more than \1/3\ of the membership of the 
                Advisory Committee.
  (c) Subcommittees.--The Advisory Committee may establish 
subcommittees or ad hoc working groups for the research focus 
areas described in section 999B(d)(7).
  (d) Duties.--The Advisory Committee shall--
          (1) advise the Secretary on the development and 
        implementation of programs under this subtitle; and
          (2) carry out section 999B(e)(2)(B).
  (e) Compensation.--A member of the Advisory Committee shall 
serve without compensation but shall be entitled to receive 
travel expenses in accordance with subchapter I of chapter 57 
of title 5, United States Code.
  (f) Prohibition.--The Advisory Committee shall not make 
recommendations on funding awards to particular consortia or 
other entities, or for specific projects.

           *       *       *       *       *       *       *


SEC. 999G. DEFINITIONS.

  In this subtitle:
          (1) Deepwater.--The term ``deepwater'' means a water 
        depth that is greater than   [200 but less than 1,500 
        meters] 1,000 feet.
          (2) Deepwater architecture.--The term ``deepwater 
        architecture'' means the integration of technologies 
        for the safe and environmentally responsible 
        exploration for, or production of, natural gas or other 
        petroleum resources located at deepwater depths.
          (3) Deepwater technology.--The term ``deepwater 
        technology'' means a discrete technology that is 
        specially suited to address 1 or more challenges 
        associated with the safe and environmentally 
        responsible exploration for, or production of, natural 
        gas or other petroleum resources located at deepwater 
        depths.
          [(2)] (4) Independent producer of oil or gas.--
                  (A) * * *

           *       *       *       *       *       *       *

          [(3)] (5) Program administration funds.--The term 
        ``program administration funds'' means funds used by 
        the program consortium to administer the program under 
        this subtitle, but not to exceed 10 percent of the 
        total funds allocated under paragraphs (1) through (3) 
        of section 999H(d).
          [(4)] (6) Program consortium.--The term ``program 
        consortium'' means the consortium selected under 
        section 999B(d).
          [(5)] (7) Program research funds.--The term ``program 
        research funds'' means funds awarded to research 
        performers by the program consortium consistent with 
        the annual plan.
          [(6)] (8) Remote or inconsequential.--The term 
        ``remote or inconsequential'' has the meaning given 
        that term in regulations issued by the Office of 
        Government Ethics under section 208(b)(2) of title 18, 
        United States Code.
          [(7)] (9) Small producer.--The term ``small 
        producer'' means an entity organized under the laws of 
        the United States with production levels of less than 
        1,000 barrels per day of oil equivalent.
          [(8) Ultra-deepwater.--The term ``ultra-deepwater'' 
        means a water depth that is equal to or greater than 
        1,500 meters.
          [(9) Ultra-deepwater architecture.--The term ``ultra-
        deepwater architecture'' means the integration of 
        technologies for the exploration for, or production of, 
        natural gas or other petroleum resources located at 
        ultra-deepwater depths.
          [(10) Ultra-deepwater technology.--The term ``ultra-
        deepwater technology'' means a discrete technology that 
        is specially suited to address one or more challenges 
        associated with the exploration for, or production of, 
        natural gas or other petroleum resources located at 
        ultra-deepwater depths.]
          [(11)] (10) Unconventional natural gas and other 
        petroleum resource.--The term ``unconventional natural 
        gas and other petroleum resource'' means natural gas 
        and other petroleum resource located onshore in an 
        economically inaccessible geological formation, 
        including resources of small producers.

SEC. 999H. FUNDING.

  (a) Oil and Gas Lease Income.--For each of fiscal years 2007 
through 2017, from any Federal royalties, rents, and bonuses 
derived from Federal onshore and offshore oil and gas leases 
issued under the Outer Continental Shelf Lands Act (43 U.S.C. 
1331 et seq.) and the Mineral Leasing Act (30 U.S.C. 181 et 
seq.) which are deposited in the Treasury, and after 
distribution of any such funds as described in subsection (c), 
$50,000,000 shall be deposited into the [Ultra-Deepwater and 
Unconventional Natural Gas and Other Petroleum Research Fund] 
Safer Oil and Natural Gas Drilling Technology Research and 
Development Fund (in this section referred to as the ``Fund''). 
For purposes of this section, the term ``royalties'' excludes 
proceeds from the sale of royalty production taken in kind and 
royalty production that is transferred under section 27(a)(3) 
of the Outer Continental Shelf Lands Act (43 U.S.C. 
1353(a)(3)).

           *       *       *       *       *       *       *

  (d) Allocation.--Amounts obligated from the Fund under 
subsection (a)(1) in each fiscal year shall be allocated as 
follows:
          (1) [35 percent] 32.5 percent shall be for activities 
        under section 999A(b)(1).
          (2) [32.5 percent] 25 percent shall be for activities 
        under section 999A(b)(2).

           *       *       *       *       *       *       *

          (4) [25 percent] 35 percent shall be for 
        complementary research under section 999A(b)(4) and 
        other activities under section 999A(b) to include 
        program direction funds, overall program oversight, 
        [contract management, and the establishment and 
        operation of a technical committee to ensure that in-
        house research activities funded under section 
        999A(b)(4) are technically complementary to, and not 
        duplicative of, research conducted under paragraphs 
        (1), (2), and (3) of section 999A(b).] and contract 
        management.

           *       *       *       *       *       *       *

  (f) Fund.--There is hereby established in the Treasury of the 
United States a separate fund to be known as the ``[Ultra-
Deepwater and Unconventional Natural Gas and Other Petroleum 
Research Fund] Safer Oil and Natural Gas Drilling Technology 
Research and Development Fund''.
  (g) Coordination and Nonduplication.--The Secretary shall 
ensure, to the maximum extent practicable, that the research 
activities carried out by the consortium funded under 
paragraphs (1), (2), and (3) of subsection (d), and the 
research activities carried out by the Department of Energy as 
funded by subsection (d)(4), shall be coordinated and not 
duplicative of one another.

           *       *       *       *       *       *       *


                     XX. Committee Recommendations

    On July 14, 2010, the Committee on Science and Technology 
by voice vote favorably reported the bill, H.R. 5716, as 
amended, to the House with the recommendation that the bill, as 
amended, do pass.

                         XXI. ADDITIONAL VIEWS

    America's domestic oil and natural gas resources are 
important national priorities that contribute significantly to 
job growth and the economy while reducing dependence on foreign 
sources of energy.
    The program amended by this legislation was established in 
Section 999 of the Energy Policy Act of 2005. The program 
supports, through a collaborative effort between the Department 
of Energy (DOE) and a consortium including universities, small 
producers, large and small businesses and research 
organizations, cutting-edge technologies to enhance safe and 
environmentally responsible offshore and onshore oil and gas 
development.
    We believe this program has contributed significantly to 
transformational advances in deep offshore and onshore drilling 
technologies that are helping to efficiently and responsibly 
recover energy supplies long known to exist, but which were 
previously inaccessible. The recovery of these resources has 
resulted in significant benefits to taxpayers in the form of 
domestic jobs and affordable energy, as well as increasing 
royalties to the fund that pays for the program in the first 
place.
    Unfortunately, and despite the record of success of the 
program and support for it in Congress, the Obama 
Administration continues to call for its termination, as well 
as the termination of all other oil and gas research and 
development within the fossil energy program at DOE. We believe 
this is a clear mis-prioritization, particularly since it is 
the only research and development program in the Federal 
government capable of ramping up activities quickly and 
effectively to address the renewed focus on research and 
development of safe and responsible drilling technology in the 
wake of the Deepwater Horizon disaster.
    This legislation makes reasonable and appropriate changes 
in the Section 999 program by preserving the program's original 
purpose to conduct research and development of technologies to 
advance safe and environmentally responsible oil and gas 
exploration and production, while shifting the balance of these 
activities toward more research into safety and accident 
prevention and mitigation. We believe these changes, including 
those made by several amendments offered by Republicans and 
adopted with bipartisan support, will serve to preserve and 
strengthen the program and maximize its contributions toward 
continued safe development of our Nation's energy resources.

                                   Ralph M. Hall.
                                   Paul C. Broun.
                                   Vernon J. Ehlers.
                                   W. Todd Akin.
                                   Michael T. McCaul.
                                   Adrian Smith.
                                   Pete Olson.
                                   Randy Neugebauer.
                                   Judy Biggert.
                                   Dana Rohrabacher.
                                   Lamar Smith.


XXII: PROCEEDINGS OF THE FULL COMMITTEE MARKUP ON H.R. 5716, THE SAFER 
  OIL AND NATURAL GAS DRILLING TECHNOLOGY RESEARCH AND DEVELOPMENT ACT

                              ----------                              


                        WEDNESDAY, JULY 14, 2010

                          House of Representatives,
                       Committee on Science and Technology,
                                                    Washington, DC.

    The Committee met, pursuant to call, at 10:05 a.m., in Room 
2318 of the Rayburn House Office Building, Hon. Bart Gordon 
[Chairman of the Committee] presiding.
    Chairman Gordon. Good morning. The Committee will come to 
order.
    Pursuant to notice, the Committee on Science and Technology 
meets to consider the following measures: H.R. 2693, the Oil 
Pollution Research and Development Program Reauthorization Act 
of 2010, and H.R. 5716, the Safer Oil and Natural Gas Drilling 
Technology Research and Development Act. We will now proceed 
with the markup.
    Today the Committee will consider two bills that address 
oil spill cleanup technologies and response coordination, as 
well as research and development of safe drilling technologies.
    First, we will consider H.R. 2693, authored by Ms. Woolsey 
of California. This bill was introduced and marked up in the 
Subcommittee on Energy and Environment last summer. Ms. 
Woolsey's foresight in introducing this legislation last year 
put us one step closer to advancing a robust Federal research 
and development program on oil spill response, and I thank Ms. 
Woolsey for her foresight.
    At the time, Ms. Woolsey was responding to a spill in her 
district. But the Deepwater Horizon accident and the subsequent 
response effort have made the intent of this bill all the more 
relevant today. In light of that, the amendment in the nature 
of a substitute to be marked up today sets up a more efficient 
Federal management structure, reprioritizes the research and 
development activities, and provides for more robust oversight 
and accountability of the interagency R&D; program.
    Second, we will consider H.R. 5716, the Safer Oil and 
Natural Gas Drilling Technology Research and Development Act. 
This bill amends Section 999 of the Energy Policy Act of 2005, 
which authorized the Secretary of Energy to establish an Ultra-
Deepwater and Unconventional Onshore Natural Gas and Other 
Petroleum Resources Research and Development program. As a 
long-time champion of this program, Mr. Hall recognized its 
potential for developing technologies to prevent and mitigate 
oil spills, and worked closely with us in drafting this bill.
    The bill makes a series of changes to the 999 program, 
including a shift in the focus and funding of the program to 
research and development of technologies for safety and 
accident prevention and mitigation. This bill will also 
streamline the operations of the program.
    It is our hope that with passage of this bill, activities 
conducted under Section 999 will better serve the Nation's 
needs for the development of advanced and improved 
environmental and worker safety technologies and practices, 
while also providing a Federal resource for technical expertise 
in this field.
    This bill is the product of significant bipartisan 
collaboration, and I want to thank Mr. Hall and his staff for 
their continued good work as we move this legislation out of 
Committee and to the Floor.
    The two bills before us today help to ensure that all 
stakeholders, including the Federal Government, industry, and 
academia, are better equipped to prevent and respond to such 
accidents in the future.
    Let me also bring up another point. As I think everyone on 
this Committee knows, it has been a long tradition of the 
Committee to request that amendments be presented by 10:00 the 
day before the bill is brought up. There is a good reason for 
this, and that is, particularly when we are at a Full Committee 
markup, that we want to send a bill to the Floor that doesn't 
have unintended consequences by a late amendment, and that is 
the reason that they need to be vetted. That doesn't mean that 
we are not going to hear an amendment that might be brought 
late. It just makes it a higher burden on the person who brings 
it. Our Committee staff--I mean our Members have been very good 
in that. We had a couple of amendments both Democrat and 
Republican this time that were a little late, although we did 
have notice on some of those. So again, let me--and I know part 
of the problem is just getting legislative counsel to get 
things through. So let me just say once again, everybody, to 
try to get those up on time.
    Let me also give a quick overview of what our intentions 
are for the rest of this month. We have a nuclear energy 
research bill that we think is important and good that will 
move forward research in the fourth-generation design that 
could make nuclear energy safer and less expensive, also, less 
likely to proliferate and hopefully less waste to have to 
store. So that is in the works in a bipartisan way.
    We also have a NASA reauthorization that we are struggling 
with and we hope that the first of next week that we can have a 
good discussion about where we think we are going on that. As I 
had mentioned to someone earlier, when you try to put two tons 
of canaries in a one-ton box, it makes it tough, but we are 
still trying to stuff them in there.
    And finally, we hope to have a rare earth minerals bill. As 
you might remember from our testimony, 90 to 95 percent of the 
rare earth mineral production in the world is in the hands of 
the Chinese. There were some hints from them earlier that they 
might try to restrict those to the rest of the world. The 
reason that is important is that those rare earth minerals in 
small amounts can significantly increase the efficiency of 
alternative energy and telecommunication, as well as a lot of 
other products. I just returned from a very quick, jet-lagged 
trip to Brussels to testify before our equivalent in the EU 
Parliament, and requested that they also take up rare earth 
minerals. I think we are going to see them do that so that 
hopefully there can be some joint research, as we are both in 
the same boat and can help each other in terms of that basic 
research where there really isn't a first-to-market advantage.
    So I thank you all for your attendance and participation 
this morning. I look forward to a productive markup.
    [The prepared statement of Chairman Gordon follows:]
               Prepared Statement of Chairman Bart Gordon
    Good morning, and welcome. Today the Committee will consider two 
bills that address oil spill cleanup technologies and response 
coordination, as well as research and development of safe drilling 
technologies.
    First, we will consider H.R. 2693 authored by Ms. Woolsey of 
California. This bill was introduced and marked up in the Subcommittee 
on Energy and Environment last summer.
    Ms. Woolsey's foresight in introducing this legislation last year 
put us one step closer to advancing a more robust Federal research and 
development program on oil spill response.
    At the time, Ms. Woolsey was responding to the spill in her 
district. But the Deepwater Horizon accident and the subsequent 
response effort have made the intent of this bill all the more relevant 
today. In light of that, the Amendment in the Nature of a Substitute to 
be marked up today sets up a more efficient Federal management 
structure, reprioritizes the research and development activities, and 
provides for more robust oversight and accountability of the 
interagency R&D; program.
    Next, we will consider H.R. 5716, the Safer Oil and Natural Gas 
Drilling Technology Research and Development Act. This bill amends 
Section 999 of the Energy Policy Act of 2005 which authorized the 
Secretary of Energy to establish an Ultra-Deepwater and Unconventional 
Onshore Natural Gas and Other Petroleum Resources research and 
development program. As the long-time champion for this program, Mr. 
Hall recognized its potential for developing technologies to prevent 
and mitigate oil spills, and worked closely with us in drafting this 
bill.
    The bill makes a series of changes to the 999 program, including a 
shift in the focus and funding of the program to research and 
development of technologies for safety and accident prevention and 
mitigation. This bill will also streamline the operations of the 
program.
    It is our hope that with passage of this bill, activities conducted 
under Section 999 will better serve the nation's needs for development 
of advanced and improved environmental and worker safety technologies 
and practices, while also providing a Federal resource for technical 
expertise in this field.
    H.R. 5716 is the product of significant bipartisan collaboration, 
and I want to thank Mr. Hall and his staff for their continued good 
work as we move this legislation out of Committee and to the floor.
    The two bills before us today help to ensure that all 
stakeholders--including the Federal Government, industry, and 
academia--are better equipped to prevent and respond to such accidents 
in the future.
    I thank you all for your attendance and participation this morning, 
and I look forward to a productive markup.

    Chairman Gordon. I now recognize Mr. Hall to present his 
opening remarks.
    Mr. Hall. I thank you, Mr. Chairman.
    As the disaster in the Gulf nears now, what, about three 
months and we await the results of the latest attempt to cap 
the well and stop the leak, our understanding of the precise 
causes of the accident and the missteps in the days that 
followed remain unclear even now. These unanswered questions 
really should serve to advise against temptations to overreact, 
especially given the importance of the offshore oil and gas 
industry to the Gulf Coast economy and America's energy 
independence goals. Regardless of the ultimate causes of and 
best responses to the disaster, it makes sense to continue 
pursuing improvements to safe and environmentally responsible 
drilling operations as well as effective spill response 
systems.
    The first bill we consider, H.R. 2693, amends the Oil 
Pollution Act of 1990. This bill was introduced last year and 
had gone through a subcommittee markup. The current bill 
illustrates the need to update certain aspects of the research 
and development title of the Oil Pollution Act since its 
passage 20 years ago. Further, it will be important for us to 
continue to exercise our Congressional duties and perform the 
necessary oversight to ensure that the laws we pass are being 
implemented and certainly carried out.
    Today we mark up an amendment in the nature of a substitute 
that changes the bill in ways that seek to address members' 
concerns as well as concerns expressed by expert witnesses. I 
applaud the author's willingness to move her bill in a 
direction that alleviates these concerns, and while there are 
still some unresolved issues, the approach of the ANS in 
correcting the problem of insecure law is more in the line with 
what we heard from scientists, industry and we heard from 
stakeholders that it should be.
    The second bill we consider amends the drilling 
technologies R&D; program established by section 999 of the 
Energy Policy Act of 2005. I led and helped work with the 
creation of this program in 2005 and I believe it has 
contributed significantly to recent technological advances that 
are enabling recovery of energy supplies that we know existed 
but we were unable to access. The program relies on established 
program structure and network of worldwide private and public 
sector experts. The funding for the program is drawn from the 
taxes paid by the industry on oil leases, and that money is 
paid back with eventual royalties on oil and natural gas that 
is discovered and used as a result of the program. I have 
always said that this program is a win-win for taxpayers. No 
only do Americans move in the direction of energy independence 
but the program pays for itself. Further, this is the only R&D; 
program in the Federal Government capable of addressing 
drilling safety and accident prevention-related technology 
needs in a timely and effective manner.
    As the present spill in the Gulf illustrates, we should 
encourage further research into this vital area so that we are 
best able to amend needed resources safety and effectively. 
Unfortunately, despite its clear growing in importance, this 
program along with most other fossil fuel R&D; activities, 
remains targeted by the Administration and others in Congress 
for termination. I think this represents a clear 
misprioritization and I am glad that Chairman Gordon agrees and 
has worked very closely with us on the vehicle before us today. 
I may quibble with some of the details but I believe this 
vehicle represents a reasonable compromise that will preserve 
and strengthen this successful program.
    Before I close, I do want to say a word about the process, 
as the chairman has. Many amendments including one of my own 
were filed well after the 10:00 deadline. However, the majority 
of the Republican colleagues worked hard and met or came very 
close to meeting the submission deadline. I may have more to 
say about this as we move forward today but I do want to 
mention amendments introducing significant policy shift or 
additions should be, we wish they would be, filed earlier 
rather than later so members and staff might thoroughly review 
and prepare for their consideration. I know the chairman agrees 
with this as he stated in the past and stated today.
    Again, I thank the chairman and the majority for working 
with Republicans on both bills and I look forward to continuing 
this result and find a good result, continue our effort as 
these vehicles move through the legislative process.
    I thank you, Mr. Chairman, and I yield back.
    [The prepared statement of Mr. Hall follows:]
           Prepared Statement of Representative Ralph M. Hall
    As the disaster in the Gulf nears three full months and we await 
the results of the latest attempt to cap the well and stop the leak, 
our understanding of the precise causes of the accident--and the 
missteps in the days that followed--remain unclear. These unanswered 
questions should serve to advise against temptations to overreact to 
the disaster, especially given the importance of the offshore oil and 
gas industry to the Gulf Coast economy and America's energy 
independence goals.
    Regardless of the ultimate causes of and best rest responses to the 
disaster it makes sense to continue pursuing improvements to safe and 
environmentally responsible drilling operations, as well as effective 
spill response systems. This Committee will play a key role in this 
effort, and the legislation before us today will have a significant 
impact on future drilling and environmental response mitigation 
efforts.
    The first bill we will consider, H.R. 2693, amends the Federal Oil 
Spill Research Program Act. This legislation was introduced last year 
and had gone through a subcommittee markup, demonstrating once again 
this Committee's foresight of the research and development needs of the 
nation. Today, we markup an Amendment in the Nature of a Substitute 
that changes the bill in ways that reflect the concerns of members on 
both sides of the aisle and testimony we received both last year and 
last month. . . .
    The second bill we will consider amends the drilling technologies 
R&D; program established by Section 999 of the Energy Policy Act of 
2005. I led creation of this program in 2005, and I believe it has 
contributed significantly to recent technological advances that are 
enabling recovery of energy supplies that we knew existed but were 
unable to access. Further, with its established program structure and 
network of worldwide private and public sector experts, it is the only 
R&D; program in the Federal Government capable of addressing priority 
drilling safety and accident prevention-related technology needs in a 
timely and effective manner.
    Unfortunately, despite its clear and growing importance, the 
program remains targeted by the Administration and others in Congress 
for termination. I think this represents a clear mis-prioritization, 
and I am glad that Chairman Gordon agrees and worked closely with me on 
the bill before us today. I may quibble with some of the details, but I 
believe the committee print represents a reasonable compromise that 
will preserve and strengthen this successful program.
    Again, I thank the Chairman and the majority for working with 
Republicans on both of these bills, and I look forward to continuing 
this effort as these vehicles move through the legislative process.
    I yield back.

    Chairman Gordon. Thank you, Mr. Hall. Members may place 
statements in the record at this point.
    Chairman Gordon. I thank the Members for their patience, 
but hopefully your patience is still--there is some left, 
because we now move to H.R. 5716. We will now consider the 
Safer Oil and Natural Gas Drilling Technology Research and 
Development Act.
    I recognize myself for five minutes, and since I have 
already described the bill earlier, we will stick with that 
description, and now I yield to Mr. Hall for any remarks on the 
bill.
    Mr. Hall. Mr. Chairman, as I mentioned in my opening 
statement on the beginning of this markup, this Committee print 
is the product of extensive negotiations with the majority to 
develop compromised legislations strengthening Section 999 
program on oil and natural gas drilling technologies.
    It would make three primary changes to the existing 
statute. It shifts the focus of each of the programs' four 
elements toward advancing safety and accident prevention and 
mitigation technologies associated with oil and natural gas 
exploration and production. It adjusts the allocations among 
these four programs, reducing deepwater and unconventional 
onshore natural gas programs by a small amount, while 
increasing the allocation for Department of Energy in-house 
research from 25 percent to 35 percent.
    And it redefines and expands the scope of offshore R&D; 
activities to those involving water depths of 1,000 feet or 
greater. That is a reduction from the 5,000 feet in current 
law, and in doing so modifies the current focus on, ``Ultra 
Deepwater,'' activities to pertain simply to deepwater 
activities.
    Additionally, the bill makes numerous additional minor 
changes to the management and structure of the 999 program 
while preserving its original goal and objective to advance 
safe and economically-responsible drilling.
    While the precise focus and detailed language in this 
Committee print is less than ideal in my opinion, and I suspect 
the Chairman might agree with me for different reasons, it 
represents a fair and reasonable compromise that preserves and 
strengthens the Section 999 program.
    As I indicated in my opening statement, this is the only 
R&D; program in the Federal Government capable of ramping up 
activities quickly and effectively to address a renewed 
interest in drilling technology research in the wake of the 
Deepwater Horizon disaster. Given this Administration's efforts 
to terminate any and all research and development relating to 
oil and natural gas, this program is all the more vital.
    I want to again extend my thanks to Chairman Gordon for 
working with me on this bill, and I look forward to continuing 
the bipartisan cooperation on the bill as the legislative 
process moves forward, and sir, I do yield back.
    Chairman Gordon. Thank you, Mr. Hall, for those remarks, 
but more importantly, thank you for the cooperation. I now want 
to thank the minority and majority staff for their work on 
bringing this bill before us.
    Does anyone else wish to be recognized?
    If not, then I ask unanimous consent the bill is considered 
as read and open to amendment at any point and that the members 
proceed with the amendments in the order of the roster.
    Without objection, so ordered.
    Chairman Gordon. The first amendment on the roster is a 
manager's amendment offered by the Chair. The clerk will report 
the amendment.
    The Clerk. Amendment number 006, amendment to H.R. 5716 
offered by Mr. Gordon of Tennessee.
    Chairman Gordon. I ask unanimous consent to dispense with 
the reading.
    Without objection, so ordered.
    I recognize myself for five minutes to explain the 
amendment. In addition to making clarifying and conforming 
changes, my manager's amendment incorporates a number of our 
Members' concerns and has been worked out in advance with Mr. 
Hall through this amendment.
    Mr. Lujan seeks to ensure that the Secretary would partner 
with all eligible entities such as universities, private firms, 
and national labs. Dr. Baird makes an addition to recognize the 
role of the human factors in safety-related decisions, making 
and seeking to draw out analogous research from other risk-
intensive industries.
    Dr. Lipinski specifies that the DOE program will include as 
a focus area development of methodologies for risk management. 
Mr. Hall ensures that the Advisory Committee includes only 
individuals who are highly technically or scientifically 
qualified to advise the Secretary on the research activities, 
and we reinstate language to ensure that the activities of the 
Research Consortium and DOE are coordinated and not 
duplicative.
    I appreciate the time these Members and Mr. Hall's staff 
has put in making this a better amendment through the manager's 
amendment, and I urge its adoption.
    Is there further discussion on the amendment?
    Mr. Hall. Mr. Chairman.
    Chairman Gordon. Mr. Hall is recognized.
    Mr. Hall. The manager's amendment makes several minor 
changes to the underlying Committee print, including specifying 
additional R&D; activities for the Section 999 Program and 
eligibility requirements for program applicants and Advisory 
Committee members.
    This was drafted in bipartisan fashion, and these changes 
improve the underlying legislation, so I urge passage of the 
manager's amendment.
    Chairman Gordon. Governor Garamendi is recognized.
    Mr. Garamendi. Thank you very much, Mr. Chairman, and thank 
you for your amendments. Just a question, clarification if I 
could. Yesterday I met with Sandia National Laboratories, who 
have been involved in the oil spill, and in their opinion the 
methodology used by the national labs to assure the safety and 
reliability of the Nuclear Weapons Programs, that that 
methodology is applicable to the issues of deepwater drilling.
    I believe your amendment, your manager's amendment does 
allow the national laboratories to engage specifically in the 
risk assessment and providing their expertise in setting out a 
methodology to assure the maximum safety and reliability.
    Chairman Gordon. I think that Dr. Lipinski's amendment 
will--would satisfy that concern.
    Mr. Garamendi. Thank you.
    Chairman Gordon. Is there further discussion on the 
amendment?
    If no, the vote occurs upon the amendment. All in favor, 
say aye. Opposed, no. The ayes have it. The amendment is agreed 
to.
    The second amendment on the roster is an amendment offered 
by the gentleman from California, Mr. Garamendi. Are you ready 
to proceed with your amendment? The clerk will report the 
amendment.
    The Clerk. Amendment number 005, amendment to H.R. 5716 
offered by Mr. Garamendi of California.
    Chairman Gordon. I ask unanimous consent to dispense with 
the reading.
    Without objection, so ordered.
    I recognize the gentleman for five minutes to explain his 
amendment.
    Mr. Garamendi. I won't take five minutes. Mr. Chairman, 
this amendment simply removes a language that specifies the 
Department of Interior, the Secretary of the Department, and 
makes it a more broader section to include all those relevant 
Federal agencies, and I ask for support of the amendment.
    Chairman Gordon. If there is no----
    Mr. Hall. Mr. Chairman.
    Chairman Gordon. Mr. Hall is recognized.
    Mr. Hall. This amendment simply directs the Secretary of 
Energy to consult with Interagency Coordinating Committee on 
all pollution research, which was addressed in the first bill 
we considered today.
    I support the passage. I yield back.
    Chairman Gordon. Thank you, Mr. Hall. It certainly makes--
--
    Mr. Rohrabacher. Mr. Chairman.
    Chairman Gordon. Mr. Rohrabacher is recognized.
    Mr. Rohrabacher. So this is an amendment to foster 
cooperative effort in the Interagency action. Let us see now. 
We have had one for international cooperation and now another 
verification of that, so I am still trying to figure out the 
opposition to the amendment that I offered, but that is OK. 
Thank you.
    Mr. Garamendi. Mr. Chair, if I might to my colleague from 
California, just give it up and move on.
    Chairman Gordon. Well, with that then if there is no 
further discussion, those--all in favor of the amendment say 
aye. Opposed, no. The ayes have it. The amendment is agreed to.
    The third amendment on the roster is an amendment offered 
by the gentleman from Texas, Mr. McCaul. Are you ready to 
proceed with your amendment?
    Mr. McCaul. I am. Thank you, Mr. Chairman. I have an 
amendment at the desk.
    Chairman Gordon. The clerk will report the amendment.
    The Clerk. Amendment number 002, amendment to H.R. 5716 
offered by Mr. McCaul.
    Chairman Gordon. I ask unanimous consent to dispense with 
the reading.
    Without objection, so ordered.
    I recognize the gentleman for five minutes to explain his 
amendment.
    Mr. McCaul. Thank you, Mr. Chairman. This is a simple 
amendment that is aimed at reinforcing the emphasis in the 
underlying bill on advancing environmentally-responsible oil 
and gas exploration and production activities.
    Specifically, the amendment adds to the list of research 
and technology focus areas provided for in the bill's deepwater 
and unconventional onshore oil and natural gas drilling 
subprograms to include a utilization of exploration and 
production methods and materials that reduce the potential 
impact of such activities on the environment.
    In the wake of the Deepwater Horizon disaster, this is an 
area in obvious need of further study. While the language of 
this amendment is intended to be broad and encompassing, it may 
help to advance, for example, understanding of the potential 
impacts of and alternatives to chemicals added to drilling muds 
such as those used in the recent top kill procedure.
    Similar research needs exist with respect to onshore deep 
natural gas drilling activities. I understand that the 
consortium funded by this program is already moving in this 
direction with respect to their research activities, but this 
will affirm and codify this move with explicit statutory 
language and further improve our ability to access these 
valuable oil and gas resources safely and effectively.
    And with that I yield back.
    [The prepared statement of Mr. McCaul follows:]
         Prepared Statement of Representative Michael T. McCaul
    This is a simple amendment that is aimed at reinforcing the 
emphasis in the underlying bill on advancing environmentally 
responsible oil and gas exploration and production activities.
    Specifically, the amendment adds to the list of research and 
technology focus areas provided for in the bill's deepwater and 
unconventional onshore oil and natural gas drilling sub-programs to 
include ``utilization of exploration and production methods and 
materials that reduce the potential impact of such activities on the 
environment.''
    In the wake of the Deepwater Horizon disaster, this is an area in 
obvious need of further study. While the language of this amendment is 
intended to be broad and encompassing, it may help to advance, for 
example, understanding of the potential impacts of and alternatives to 
chemicals added to drilling muds, such as that used in the recent ``top 
kill'' procedure. Similar research needs exist with respect to onshore 
deep natural gas drilling activities.
    I understand that the consortium funded by this program is already 
moving in this direction with respect to their research activities, but 
this will affirm and codify this move with explicit statutory language 
and further improve our ability to access these valuable oil and gas 
resources safety and effectively.

    Chairman Gordon. Thank you, Mr. McCaul. Interestingly I had 
asked about just such an amendment that this is an area that 
needs to be looked into, and I was told you had an amendment, 
and I welcome it. It is a good amendment, and Mr. Hall, did 
you--like to make a statement?
    Mr. Hall. Well, yeah, Mr. Chairman. At the risk of you 
telling me and Rohrabacher to get over it, I just want to say 
it is a good amendment, and I support its passage, and I yield 
back.
    Chairman Gordon. Thank you, Mr. Hall. Is there further 
discussion on the amendment?
    Mr. Rohrabacher. Mr. Chairman.
    Voice. Oh, I don't think he has gotten over it yet.
    Chairman Gordon. OK. Mr. Rohrabacher is recognized for some 
additional therapy.
    Mr. Rohrabacher. There is it. Let me just note again about 
something else, that almost all of the money that has been 
spent on research for the Department of Energy has been 
funneled into research when we are talking about fossil fuels 
research for the Department of Energy, has been channeled into 
basically developing carbon sequestration. And, again, we now 
are living with the consequences of this folly, what I consider 
to be a misallocation of funds based on a scientific nonsense 
in terms of global warming.
    Carbon sequestration, what is the harm that is done to our 
society and to the world based on this, what I consider to be a 
non-scientific approach and talking about global warming, what 
it is, is we haven't spent the money at the Department of 
Energy to develop the technology that we need to have safe oil 
and natural gas extraction that we could put to use for our 
people.
    So instead of spending the money on that we are spending 
the money on carbon sequestration, and so what I am trying to 
point out here is this amendment will come to grips with this 
and start directing research back to where it should be, and 
that is if we depend so much right now on oil and gas for our 
country's prosperity, we should, if we are spending money of 
the Department of Energy for research, it shouldn't go into 
areas that are not dramatically impacting on our prosperity and 
our security for today.
    So, again, I support this amendment because I think that it 
is undoing some really past mistakes in the direction of our 
research dollars at the Department of Energy. I appreciate 
that.
    One other thing is that we have to take a look at the money 
that has been spent in the developing of new technologies. 
Again, it wasn't being done by our own government. A private 
sector person testified here he put his own money into 
developing technologies for cleanup, and again, what happened 
to that?
    First of all, the Federal Government should have been the 
ones spending the money for a general cleanup technology, but 
Kevin Costner ended up putting his own money into developing 
centrifuge technology for separating oil from water, but yet it 
sat there on the shelf, unused for 15 years because we have 
policies of our government and policies of our regulatory 
agencies that were demanding what, perfection rather than 
something that could be useful and be--and have a positive 
impact.
    So I would suggest that as we move forward now, and I 
visited an offshore oil rig off my district during the break, 
it is really important that we take these things seriously and 
that we take a look at the allocation of these funds and 
realize that perhaps this tragedy in the Gulf will have sort of 
opened our eyes to the fact that we, yes, we can impose or we 
can support the theory of global warming, but we should darn 
well be making sure that those things that we do depend on are 
being done safely and that the allocation of our research 
dollars will go to promote that and have a positive impact on 
our safety today rather than relying on Kevin Costner and 
channeling our own monies into things that perhaps don't meet 
the most serious challenge that we face.
    So thank you, Mr. Chairman. I support this amendment.
    Chairman Gordon. Thank you, Mr. Rohrabacher, and I ask 
unanimous consent that in the future that you can just say 
number one and that we will put that statement back into the 
record.
    Is there further discussion on the amendment?
    If not, all in favor of the amendment, say aye. Opposed, 
no. The ayes have it, and the amendment is agreed to.
    The fourth amendment is an amendment that was going to be 
offered by Ms. Edwards. I think she has made her point and so 
we will move on then to amendment number five. The fifth 
amendment on the roster is an amendment offered by the 
gentleman from South Carolina, Mr. Inglis. Are you ready to 
proceed with your amendment?
    Mr. Inglis. Yes, Mr. Chairman. I have an amendment at the 
desk.
    Chairman Gordon. The clerk will report the amendment.
    The Clerk. Amendment number 003, amendment to H.R. 5716 
offered by Mr. Inglis of South Carolina.
    Chairman Gordon. I ask unanimous consent to dispense with 
the reading.
    Without objection, so ordered.
    I recognize the gentleman for five minutes to explain his 
amendment.
    Mr. Inglis. Thank you, Mr. Chairman. This amendment ensures 
that RPSEA, which is the Research Partnership to Secure Energy 
for America, will incorporate all activities related to 
improving safety and reducing potential environmental risks 
into their annual report.
    The changes we are making today in support of drilling 
research will ensure that RPSEA has a renewed focus, not only 
getting this hard-to-reach oil and gas but doing so at minimal 
risk to the personnel involved and to the surrounding 
environment.
    When the Deepwater Horizon rig caught fire and sank, we 
learned a lot about the risks of developing--of deepwater 
drilling, to BP and to the people of the Gulf Coast. We learned 
a lot, too, about the limits of our regulatory system. Eighty-
six days into the biggest environmental disaster in U.S. 
history and there is still a hole a mile below the sea gushing 
oil and gas into our waters.
    If there is anything--if anything is certain, it is that 
our capabilities to mitigate a disaster of this magnitude lag 
behind our ability to create one. We can't get this half right. 
If we are going to research for oil at the sea floor, we have 
to know how to prevent or tackle an incident of this magnitude.
    Blame for this incident is not reserved for BP or the 
drilling industry alone. That blame should be shared with a 
woefully-unprepared regulatory system that allowed this 
industry to self-regulate. While drilling policy is beyond the 
jurisdiction of this committee, we have an opportunity today to 
help the industry find the tools they need to drill safely and 
to give the Department of Interior the expertise they need to 
hold drilling companies accountable for proper, accurate 
contingency plans.
    Let us do our jobs and assure the American people the 
Congress is working to safeguard their health and health of our 
natural resources. We can prevent another disaster like this 
from happening again.
    RPSEA is a broad and active consortium already exploring 
ways to reorient their focus to meet major challenges made 
obvious by the Deepwater Horizon disaster. Let us give them an 
opportunity to answer those tough research questions.
    This discussion would be incomplete, though, Mr. Chairman, 
without expressing the hope of an America that would be no 
longer dependent on oil. Here is an obvious example of the 
extreme risk we take to fuel our economy on fossil fuels. Let 
us keep our focus on finding new solutions to our energy 
challenges so we can fuel our economy on American ingenuity 
instead.
    I encourage the adoption of this amendment, and I yield 
back the balance of my time.
    [The prepared statement of Mr. Inglis follows:]
            Prepared Statement of Representative Bob Inglis
    Thank you, Mr. Chairman. This amendment ensures that the Research 
Partnership to Secure Energy for America (RPSEA [``rip seal'']) will 
incorporate all activities related to improving safety and reducing 
potential environmental risk into their annual report.
    The changes we're making today in support of drilling research will 
ensure that RPSEA has a renewed focus on not only getting us hard-to-
reach oil and gas, but doing so at minimal risk to the personnel 
involved and to the surrounding environment.
    When the Deepwater Horizon rig caught fire and sank, we learned a 
lot about the risks of deepwater drilling to BP and the people of the 
Gulf Coast. We learned a lot about the limits of our regulatory system. 
Eighty-six days into the biggest environmental disaster in U.S. 
history, and there's still a hole a mile below the sea gushing oil and 
gas into our waters. If anything is certain, it's that our capabilities 
to mitigate a disaster of this magnitude lag far behind our ability to 
create one. We can't get this half right; if we're going to reach for 
oil at the sea floor, we have to know how to prevent or tackle an 
incident of this magnitude.
    Blame for this incident is not reserved for BP or for the drilling 
industry. That blame should be shared with a woefully unprepared 
regulatory system that allowed this industry to self-regulate. While 
drilling policy is beyond the jurisdiction of this Committee, we have 
an opportunity today to help industry find the tools they need to drill 
safely, and to give the Department of the Interior the expertise they 
need to hold drilling companies accountable for proper, accurate 
contingency plans. Let's do our jobs and assure the American people 
that Congress is working to safeguard their health and the health of 
our natural resources. We can prevent another disaster like this from 
happening again.
    RPSEA is a broad and active consortium, already exploring ways to 
reorient their focus to meet major challenges made obvious by the 
Deepwater Horizon disaster. Let's give them an opportunity to answer 
those tough research questions.
    This discussion would be incomplete without expressing the hope of 
an America no longer dependent on oil. Here is an obvious example of 
the extreme risks we take to fuel our economy on fossil fuels. Let's 
keep our focus on finding new solutions to our energy challenges so we 
can fuel our economy on American ingenuity instead.
    I encourage adoption of this amendment, and I yield back the 
balance of my time.

    Chairman Gordon. Thank you, Mr. Inglis, and more 
importantly thank you for your continued commitment to this 
committee.
    And if there is no further discussion on the amendment, all 
in favor, say aye. Opposed, no. The ayes have it. The amendment 
is agreed to.
    The sixth amendment on the roster is an amendment offered 
by the gentleman also from, once again, from South Carolina, 
Mr. Inglis. Are you ready to proceed with your amendment?
    Mr. Inglis. Yes, Mr. Chairman. I have an amendment at the 
desk.
    Chairman Gordon. The clerk will report the amendment.
    The Clerk. Amendment number 004, amendment to H.R. 5716 
offered by Mr. Inglis of South Carolina.
    Chairman Gordon. I ask unanimous consent to dispense with 
the reading.
    Without objection, so ordered.
    I recognize the gentleman for five minutes to explain the 
amendment.
    Mr. Inglis. Thank you, Mr. Chairman. This amendment will 
ensure that RPSEA regularly issues awards specifically for 
safety and accident prevention and mitigation. While these 
areas are incorporated as a new focus area for RPSEA awards, we 
cannot emphasize enough that any progress in drilling 
technology should be matched by progress and minimizing the 
impact of drilling on personnel and on the environment.
    Let us make sure that we can explore and develop our 
resources in a safe, environmentally-sound way.
    I encourage the adoption of this amendment and yield back 
the balance of my time.
    [The prepared statement of Mr. Inglis follows:]
            Prepared Statement of Representative Bob Inglis
    Thank you Mr. Chairman. This amendment will ensure that RPSEA 
regularly issues awards specifically for safety and accident prevention 
and mitigation. While these areas are incorporated as a new focus area 
for RPSEA awards, we can not emphasize enough that any progress in 
drilling technology should be matched by progress in minimizing the 
impact of drilling on personnel and on the environment. Let's make sure 
that we can explore and develop our resources in a safe, 
environmentally sound way.
    I encourage adoption of this amendment and yield back the balance 
of my time.

    Chairman Gordon. Thank you, Mr. Inglis. Is there further 
discussion on the amendment?
    If not, all in favor of the amendment, say aye. Opposed, 
no. The ayes have it, and the amendment is agreed to.
    If there are no other amendments, I think that we have now 
set a new Science and Technology Committee indoor world record 
for the most amendments in one day, and I thank everyone for 
their patience.
    So if there are no other amendments, then H.R. 5716 as 
amended, all in favor, say aye. All opposed, no. The ayes have 
it. In the opinion of the Chair the ayes have it.
    I now recognize Mr. Hall.
    Mr. Hall. Mr. Chairman, I move that the Committee favorably 
report H.R. 5716 as amended to the House with the 
recommendation that the bill do pass.
    Furthermore, I move that the staff be instructed to prepare 
the legislative report and make necessary technical and 
conforming changes and that the Chairman take all necessary 
steps to bring the bill before the House for consideration.
    Chairman Gordon. The question is on the motion to report 
the bill favorably. Those in favor of the motion will signify 
by saying aye. Opposed, no. The ayes have it. The bill is 
favorably reported.
    Without objection, the motion is reconsidered as laid upon 
the table. Members will have two subsequent calendar days in 
which to submit supplemental, minority, or additional views on 
the measure.
    And I want to, again, thank the hardcore for hanging 
through here for the last several hours, and also announce that 
as many of you know I am an only child, but I do have cousins, 
and I want to welcome my cousins, the Barton family, here 
today.
    Mr. Baird. Mr. Chairman.
    Chairman Gordon. Yes.
    Mr. Baird. I just want to inform the Chairman's cousins, 
this gentleman is an outstanding member of the Congress and a 
great Chairman, and I think that is shared on a bipartisan 
basis. We are all privileged to serve with him, and we are 
honored by your presence as well. Thank you.
    Chairman Gordon. It is hard to top that, so this committee 
is concluded. Thank you.
    [Whereupon, at 12:33 p.m., the Committee was adjourned.]
                               Appendix:

                              ----------                              


        H.R. 5716, Section-by-Section Analysis, Amendment Roster






                     Section-by-Section Analysis of
                               H.R. 5716
Safer Oil and Natural Gas Drilling Technology Research and Development 
                                  Act

Section 1. Short Title

    Safer Oil and Natural Gas Drilling Technology Research and 
Development Act.

Section 2. Subtitle Amendment

    Amends Subtitle J of title IX of the Energy Policy Act of 2005 (42 
U.S.C. 16371 et seq.), ``Ultra-Deepwater and Unconventional Natural Gas 
and Other Petroleum Resources'', to establish the ``Safer Oil and 
Natural Gas Drilling Technology Research and Development Program''.

Section 3. Safer Oil and Natural Gas Drilling Technolgy Research and 
                    Development Program

    (a) PROGRAM AUTHORITY--Amends Section 999A of EPAct 2005 by:

        (1)  Replacing ``ultra-deepwater'' with ``deepwater'';

        (2)  Inserting ``accident prevention and mitigation'' as 
        program activity; by specifying that the program elements shall 
        include deepwater activities in depths greater than 1000 feet; 
        and by specifying that complementary research will be carried 
        out by the Department of Energy and the Office of Fossil 
        Energy, instead of the National Energy Technology Laboratory 
        specifically; and,

        (3)  Specifying that the Secretary shall seek to establish 
        partnerships with outside stakeholders for research not likely 
        to be undertaken by the private section alone.

    (b) PROGRAM ELEMENTS--Amends Section 999B of EPAct 2005 by:

        (1)  Changing program name to ``Safer Oil and Gas Drilling 
        Technology Research and Development Program'';

        (2)  Amending the IN GENERAL subsection to include a focus on 
        advancing the safe and environmentally responsible exploration, 
        development, and production of natural gas and other petroleum 
        resources;

        (3)  Specifying that projects will be selected on a competitive 
        basis;

        (4)  Making significant changes to the areas on which the 
        program should focus to include the following:

            (A)  DEEPWATER RESOURCES R&D; will focus on safe and 
        environmentally responsible technologies, integrated systems, 
        and architectures for deepwater exploration and production, 
        adapting operations to extreme weather and ocean conditions, 
        and other activities.

            (B)  UNCONVENTIONAL ONSHORE R&D; will, in addition to its 
        existing focus, now also focus on more energy efficient 
        operations, improved management of produced water, and accident 
        prevention and mitigation.

            (C)  SMALL PRODUCERS R&D; will, in addition to its existing 
        focus, now also focus on safety, accident prevention, 
        environmental mitigation, waste reduction, energy efficient 
        operations, and well control and systems integrity.

            (D)  Adds a new SAFETY, ACCIDENT PREVENTION AND MITIGATION 
        TECHNOLOGY RESEARCH AND DEVELOPMENT program to be conducted by 
        the Department of Energy. The program may focus, in addition to 
        ongoing activities by the Department, on new in-house 
        activities including: technologies and practices to enhance 
        well control and integrity; blowout prevention devices; 
        research on best practices for workforce training; secondary 
        control systems for well shut-off; technologies for accident 
        mitigation; and other activities as determined by the 
        Secretary.

        (5)  Makes conforming changes to the Annual Plan to be 
        submitted by the Secretary, and includes a new requirement for 
        the Secretary to publish an annual report on the research 
        findings and recommendations for implementation; and,

        (6)  Makes minor conforming changes.

Section 4. Program Advisory Committee

    Amends Section 999D of EPAct 2005 by making substantial changes to 
the current advisory committees structure. Most importantly, the two 
advisory committees known as the ``Ultra-Deepwater Advisory Committee'' 
and the ``Unconventional Resources Technology Advisory Committee'' will 
be consolidated into one advisory committee to be known as the 
``Program Advisory Committee.'' The section also specifies membership 
of the Advisory Committee, authorizes the establishment of 
subcommittees and ad-hoc working groups, specifies the duties and 
compensation, and prohibits the Advisory Committee from making 
recommendations for specific awards.

Section 5. Definitions

    Amends Section 999G of EPAct 2005 by:

        (1)  changing ``Deepwater'' to be greater than 1000 feet;

        (2)  striking definitions for ultra-deepwater, ultra-deepwater 
        technology, and ultra-deepwater architecture;

        (3)  making conforming changes; and,

        (4)  inserting a new definition for ``DEEPWATER ARCHITECTURE'' 
        and ``DEEPWATER TECHNOLOGY''.

Section 6. Funding

    Amends Section 999G of EPAct 2005 by:

        (1)  renaming the fund; and,

        (2)  changing the allocations to the program focus areas by:

            (A)  decreasing funding for Deepwater R&D; to 32.5 percent 
        from 35 percent;

            (B)  decreasing funding for Unconventional Resources R&D; to 
        25 percent from 32.5 percent; and,

            (C)  increasing funding for Safety and Accident Prevention 
        and Mitigation R&D; at the Department of Energy to 35 percent 
        from 25 percent, and making changes to the duties of the 
        Department in managing the outside research consortium.

Section 7. Conforming Changes

    Makes changes to the table of contents of EPAct 2005.
    
    
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Safer Oil and Natural Gas 
Drilling Technology Research and Development Act''.

SEC. 2. SUBTITLE AMENDMENT.

  Subtitle J of title IX of the Energy Policy Act of 2005 (42 
U.S.C. 16371 et seq.) is amended in the subtitle heading by 
striking ``Ultra-Deepwater and Unconventional Natural Gas and 
Other Petroleum Resources'' and inserting ``Safer Oil and 
Natural Gas Drilling Technology Research and Development 
Program''.

SEC. 3. SAFER OIL AND NATURAL GAS DRILLING TECHNOLOGY RESEARCH AND 
                    DEVELOPMENT PROGRAM.

  (a) Program Authority.--Section 999A of the Energy Policy Act 
of 2005 (42 U.S.C. 16371) is amended--
          (1) in subsection (a)--
                  (A) by striking ``ultra-deepwater'' and 
                inserting ``deepwater''; and
                  (B) by inserting ``well control and accident 
                prevention,'' after ``safe operations,'';
          (2) in subsection (b)--
                  (A) by inserting ``, accident prevention and 
                mitigation,'' after ``improving safety'';
                  (B) by striking paragraph (1) and inserting 
                the following:
          ``(1) Deepwater architecture and technology, 
        including those for drilling to formations in water 
        depths greater than 1,000 feet.''; and
                  (C) by striking paragraph (4) and inserting 
                the following:
          ``(4) Complementary research carried out by the 
        Department.'';
          (3) in subsection (d)--
                  (A) in the subsection heading, by striking 
                ``National Energy Technology Laboratory'' and 
                inserting ``Department of Energy''; and
                  (B) by striking ``National Energy Technology 
                Laboratory'' and inserting ``Office of Fossil 
                Energy of the Department'';
          (4) in subsection (e)--
                  (A) in the subsection heading, by striking 
                ``Secretary of the Interior'''' and inserting 
                ``Other Federal Agencies''; and
                  (B) by inserting ``and other agencies as 
                appropriate, including those serving on, and 
                collaborating with, the Interagency 
                Coordinating Committee on Oil Pollution 
                Research as established under section 7001 of 
                the Oil Pollution Act of 1990 (33 U.S.C. 
                2761(a))'' after ``Secretary of the Interior''; 
                and
          (5) by adding at the end the following:
  ``(f) Partnerships.--In carrying out the program under this 
subtitle, the Secretary shall seek to establish partnerships 
with eligible research performers, as described by section 
999E, to undertake research and development not likely 
otherwise to be undertaken in the absence of support from the 
program.''.
  (b) Program Elements.--Section 999B of the Energy Policy Act 
of 2005 (42 U.S.C. 16372) is amended--
          (1) in the section heading, by striking ``ULTRA-
        DEEPWATER AND UNCONVENTIONAL ONSHORE NATURAL GAS AND 
        OTHER PETROLEUM'' and inserting ``SAFER OIL AND NATURAL 
        GAS DRILLING TECHNOLOGY'';
          (2) by amending subsection (a) to read as follows:
  ``(a) In General.--The Secretary shall carry out the 
activities under section 999A to maximize the benefits of 
natural gas and other petroleum resources of the United States 
by advancing the safe and environmentally responsible 
exploration, development, and production of those resources.'';
          (3) in subsection (c)(1)--
                  (A) by redesignating subparagraphs (D) and 
                (E) as subparagraphs (E) and (F), respectively; 
                and
                  (B) by inserting after subparagraph (C) the 
                following:
                  ``(D) select projects on a competitive 
                basis;'';
          (4) in subsection (c)(3)(ii), by striking ``under 
        subsection (f)(4)'';
          (5) in subsection (d)--
                  (A) in paragraph (6), by striking ``ultra-
                deepwater'' and inserting ``deepwater''; and
                  (B) by striking paragraph (7) and inserting 
                the following:
          ``(7) Focus areas for awards.--
                  ``(A) Deepwater resources.--Awards from 
                allocations under section 999H(d)(1) shall 
                focus on research, development, demonstration, 
                and commercial application activities in areas 
                that include--
                          ``(i) technologies and systems aimed 
                        at improving operational safety and 
                        reducing potential environmental 
                        impacts of deepwater exploration and 
                        production activities, including--
                                  ``(I) wellbore integrity, 
                                well control, and blowout 
                                prevention;
                                  ``(II) capture and 
                                containment of oil at or near 
                                the wellhead; and
                                  ``(III) expanding operational 
                                capabilities and efficiency of 
                                remotely operated devices and 
                                mechanics;
                          ``(ii) safe and environmentally 
                        responsible deepwater exploration and 
                        production technologies, integrated 
                        systems, and architectures for 
                        enhancing oil and natural gas drilling 
                        and recovery, including under extreme 
                        conditions;
                          ``(iii) methods and technologies for 
                        severe weather and ocean surface 
                        condition preparedness;
                          ``(iv) utilization of exploration and 
                        production methods and materials that 
                        reduce the potential impact of such 
                        activities on the environment; and
                          ``(v) other areas as determined 
                        appropriate by the Secretary.
                  ``(B) Unconventional onshore resources.--
                Awards from allocations under section 
                999H(d)(2) shall focus on research, 
                development, demonstration, and commercial 
                application activities in areas that include--
                          ``(i) advanced coalbed methane, deep 
                        drilling, natural gas production from 
                        tight sands, natural gas production 
                        from gas shales, stranded gas, 
                        innovative exploration and production 
                        techniques, and enhanced recovery 
                        techniques;
                          ``(ii) increased efficiency of energy 
                        use in exploration and production 
                        activities;
                          ``(iii) utilization of exploration 
                        and production methods and materials 
                        that reduce the potential impact of 
                        such activities on the environment;
                          ``(iv) recovery, utilization, 
                        reduction, and improved management of 
                        produced water from exploration and 
                        production activities; and
                          ``(v) accident prevention and 
                        mitigation of unconventional natural 
                        gas and other petroleum resources 
                        exploration and production.
                  ``(C) Small producers.--Awards from 
                allocations under section 999H(d)(3) shall be 
                made to consortia consisting of small producers 
                or organized primarily for the benefit of small 
                producers, and shall focus on areas that 
                include--
                          ``(i) safety and accident prevention, 
                        environmental mitigation, waste 
                        reduction, reduction of energy use, and 
                        well control and systems integrity;
                          ``(ii) complex geology involving 
                        rapid changes in the type and quality 
                        of the oil and gas reserves across the 
                        reservoir;
                          ``(iii) low reservoir pressure and 
                        unconventional natural gas reservoirs 
                        in coalbeds, deep reservoirs, tight 
                        sands, or shales; and
                          ``(iv) advancing energy efficient, 
                        safe, and environmentally responsible 
                        production of unconventional oil 
                        reservoirs in tar sands and oil shales.
                  ``(D) Safety, and accident prevention and 
                mitigation, technology research and development 
                by the department.--Awards from allocations 
                under section 999H(d)(4) shall focus on safety, 
                and accident prevention and mitigation, 
                research, development, demonstration, and 
                commercial application activities in areas that 
                may include--
                          ``(i) improved technologies and best 
                        management practices for enhanced well 
                        integrity including--
                                  ``(I) cementing;
                                  ``(II) casing;
                                  ``(III) wellbore sealant 
                                technologies;
                                  ``(IV) well-plugging and 
                                abandonment;
                                  ``(V) improvement and 
                                standardization of blowout 
                                prevention devices;
                                  ``(VI) actuation and pressure 
                                testing; and
                                  ``(VII) other well control 
                                activities;
                          ``(ii) research to aid in the 
                        development of industry best practices 
                        and standards for workforce training, 
                        design of safe workplace environments, 
                        and safety related decisionmaking 
                        processes, including by drawing on 
                        existing research into human factors 
                        and safety related practices in fields 
                        such as the nuclear energy, aviation, 
                        and automotive industries;
                          ``(iii) secondary control systems to 
                        activate blowout prevention devices and 
                        terminate well-flow, including--
                                  ``(I) deadman switches;
                                  ``(II) automatic shears; and
                                  ``(III) remote acoustic 
                                switches;
                          ``(iv) technologies and methods for 
                        accident mitigation, including--
                                  ``(I) capture, containment, 
                                or dispersing of oil at or near 
                                the wellhead;
                                  ``(II) estimating flow rate;
                                  ``(III) diagnostic sensors to 
                                determine equipment 
                                malfunction; and
                                  ``(IV) procedures to 
                                terminate flow;
                          ``(v) continuing ongoing efforts, 
                        including in resource assessment and 
                        characterization, and in simulation of 
                        safe and effective drilling under 
                        extreme conditions, including high 
                        temperatures and pressures;
                          ``(vi) development of methodologies 
                        for risk management decisionmaking, 
                        including comparative risk analysis and 
                        quantitative risk assessment of 
                        potential for failure in the 
                        technologies, management practices, and 
                        systems studies under this subsection; 
                        and
                          ``(vii) other activities as described 
                        in this paragraph or as determined 
                        appropriate by the Secretary.'';
          (6) in subsection (e)--
                  (A) in paragraph (2)--
                          (i) in the second sentence of 
                        subparagraph (A), by inserting ``to the 
                        Secretary for review'' after 
                        ``submit''; and
                          (ii) in the first sentence of 
                        subparagraph (B), by striking ``Ultra-
                        Deepwater'' and all that follows 
                        through ``and such Advisory 
                        Committees'' and inserting ``Program 
                        Advisory Committee established under 
                        section 999D(a), and the Advisory 
                        Committee'';
                  (B) in paragraph (4)--
                          (i) by striking ``and'' at the end of 
                        subparagraph (A);
                          (ii) by striking the period at the 
                        end of subparagraph (B) and inserting 
                        ``; and''; and
                          (iii) by adding at the end the 
                        following new subparagraph:
                  ``(C) a summary of ongoing and planned 
                activities aimed at improving operational 
                safety and reducing potential environmental 
                impacts of exploration and production.''; and
                  (C) by adding at the end the following:
          ``(6) Research findings and recommendations for 
        implementation.--The Secretary shall publish in the 
        Federal Register an annual report on the research 
        findings of the program carried out under this section 
        and any recommendations for implementation that the 
        Secretary determines to be necessary.'';
          (7) in subsection (f)(2), by inserting ``In carrying 
        out this subsection, the Secretary shall ensure that 
        safety and accident prevention and mitigation be 
        regularly included as specific focus areas for 
        solicitations.'' after ``consortium.'';
          (8) in subsection (i)--
                  (A) in the subsection heading, by striking 
                ``United States Geological Survey'' and 
                inserting ``Department of the Interior''; and
                  (B) by striking ``, through the United States 
                Geological Survey,''; and
          (9) in subsection (j), by striking ``National Energy 
        Technology Laboratory'' and inserting ``Office of 
        Fossil Energy of the Department''.

SEC. 4. PROGRAM ADVISORY COMMITTEE.

  Section 999D of the Energy Policy Act of 2005 (42 U.S.C. 
16374) is amended to read as follows:

``SEC. 999D. PROGRAM ADVISORY COMMITTEE.

  ``(a) Establishment.--Not later than 90 days after the date 
of enactment of the Safer Oil and Natural Gas Drilling 
Technology Research and Development Act, the Secretary shall 
establish an advisory committee to be known as the `Program 
Advisory Committee' (referred to in this section as the 
`Advisory Committee').
  ``(b) Membership.--
          ``(1) In general.--The Advisory Committee shall be 
        composed of members appointed by the Secretary, each of 
        whom shall be qualified by education, training, and 
        experience to evaluate scientific and technical 
        information relevant to the research, development, and 
        demonstration under this subtitle. Members shall 
        include--
                  ``(A) individuals with extensive research 
                experience or operational knowledge of oil and 
                natural gas exploration and production;
                  ``(B) individuals broadly representative of 
                the affected interests in oil and natural gas 
                production, including interests in 
                environmental protection and operational 
                safety;
                  ``(C) State regulatory agency 
                representatives; and
                  ``(D) other individuals, as determined by the 
                Secretary.
          ``(2) Limitations.--
                  ``(A) In general.--The Advisory Committee 
                shall not include individuals who are board 
                members, officers, or employees of the program 
                consortium.
                  ``(B) Categorical representation.--In 
                appointing members of the Advisory Committee, 
                the Secretary shall ensure that no class of 
                individuals described in any of subparagraphs 
                (B), (C), or (D) of paragraph (1) comprises 
                more than \1/3\ of the membership of the 
                Advisory Committee.
  ``(c) Subcommittees.--The Advisory Committee may establish 
subcommittees or ad hoc working groups for the research focus 
areas described in section 999B(d)(7).
  ``(d) Duties.--The Advisory Committee shall--
          ``(1) advise the Secretary on the development and 
        implementation of programs under this subtitle; and
          ``(2) carry out section 999B(e)(2)(B).
  ``(e) Compensation.--A member of the Advisory Committee shall 
serve without compensation but shall be entitled to receive 
travel expenses in accordance with subchapter I of chapter 57 
of title 5, United States Code.
  ``(f) Prohibition.--The Advisory Committee shall not make 
recommendations on funding awards to particular consortia or 
other entities, or for specific projects.''.

SEC. 5. DEFINITIONS.

  Section 999G of the Energy Policy Act of 2005 (42 U.S.C. 
16377) is amended--
          (1) in paragraph (1), by striking ``200 but less than 
        1,500 meters'' and inserting ``1,000 feet'';
          (2) by striking paragraphs (8), (9), and (10);
          (3) by redesignating paragraphs (2) through (7) and 
        (11) as paragraphs (4) through (9) and (10), 
        respectively; and
          (4) by inserting after paragraph (1) the following:
          ``(2) Deepwater architecture.--The term `deepwater 
        architecture' means the integration of technologies for 
        the safe and environmentally responsible exploration 
        for, or production of, natural gas or other petroleum 
        resources located at deepwater depths.
          ``(3) Deepwater technology.--The term `deepwater 
        technology' means a discrete technology that is 
        specially suited to address 1 or more challenges 
        associated with the safe and environmentally 
        responsible exploration for, or production of, natural 
        gas or other petroleum resources located at deepwater 
        depths.''.

SEC. 6. FUNDING.

  Section 999H of the Energy Policy Act of 2005 (42 U.S.C. 
16378) is amended--
          (1) in the first sentence of subsection (a) by 
        striking ``Ultra-Deepwater and Unconventional Natural 
        Gas and Other Petroleum Research Fund'' and inserting 
        ``Safer Oil and Natural Gas Drilling Technology 
        Research and Development Fund'';
          (2) in subsection (d)--
                  (A) in paragraph (1), by striking ``35 
                percent'' and inserting ``32.5 percent'';
                  (B) in paragraph (2), by striking ``32.5 
                percent'' and inserting ``25 percent''; and
                  (C) in paragraph (4)--
                          (i) by striking ``25 percent'' and 
                        inserting ``35 percent''; and
                          (ii) by striking ``contract 
                        management,'' and all that follows 
                        through the period at the end and 
                        inserting ``and contract management.'';
          (3) in subsection (f), by striking ``Ultra-Deepwater 
        and Unconventional Natural Gas and Other Petroleum 
        Research Fund'' and inserting ``Safer Oil and Natural 
        Gas Drilling Technology Research and Development 
        Fund''; and
          (4) at the end of the section, by inserting the 
        following new subsection:
  ``(g) Coordination and Nonduplication.--The Secretary shall 
ensure, to the maximum extent practicable, that the research 
activities carried out by the consortium funded under 
paragraphs (1), (2), and (3) of subsection (d), and the 
research activities carried out by the Department of Energy as 
funded by subsection (d)(4), shall be coordinated and not 
duplicative of one another.''.

SEC. 7. CONFORMING AMENDMENTS.

  The table of contents of the Energy Policy Act of 2005 is 
amended--
          (1) by amending the item relating to subtitle J of 
        title IX to read as follows:

 ``Subtitle J--Safer Oil and Natural Gas Drilling Technology Research 
                       and Development Program'';

          (2) by amending the item relating to section 999B to 
        read as follows:

``Sec. 999B. Safer Oil and Natural Gas Drilling Technology Research and 
          Development Program.'';

        and
          (3) by amending the item relating to section 999D to 
        read as follows:

``Sec. 999D. Program Advisory Committee.''.