BUDGETJUSTIFICATIONSThe United StatesDepartment of the Interiorand Performance InformationFiscal Year 2015BUREAU OFSAFETY ANDENVIRONMENTALENFORCEMENTNOTICE: These budgetjustifications are preparedfor the Interior, Environmentand Related AgenciesAppropriations Subcommittees.Approval for release of thejustifications prior to theirprinting in the public record ofthe Subcommittee hearingsmay be obtained throughthe Office of Budget of theDepartment of the Interior.

BUREAU OF SAFETY AND ENVIRONMENTAL ENFORCEMENTFY 2015 GREENBOOKTable of ContentsBureau/Office-Level Presentation . xDirector’s Preface . 1General Statement . 3Table 1: Summary of Budget Request . 3Table 2: Analysis of Budgetary Changes. 12Secretarial Initiatives and Agency Priority Goals . 15Performance Summary . 19Table 3: Goal Performance Table . 21Table: Budget At A Glance . 25Account-Level Presentation . xTables: Summary of Requirements . 27Table: Fixed Costs and Internal Realignments . 29Language Citations . 31Appropriations Language . 31Mandatory and Offsetting Collections Proposals . 33Environmental Enforcement Activity-Level Presentation . xTable 4: Introductory . 35Internal Transfers . 35Operations, Safety and Regulations Activity-Level Presentation. xTable 5: Introductory . 37Summary of BY Program Changes . 37Internal Transfers . 37Justification of BY Program Changes . 38Program Overview . 38Performance Overview . 39Table 6: Performance Overview . 46Administrative Operations Activity-Level Presentation . xi.

Table 7: Introductory . 49Summary of BY Program Changes . 49Justification of BY Program Changes . 49Program Overview . 49General Support Service Activity-Level Presentation . xTable 8: Introductory . 53Justification of BY Program Changes . 53Program Overview . 53Executive Direction Activity-Level Presentation . xTable 9: Introductory . 55Summary of BY Program Changes . 55Justification of BY Program Changes . 55Program Overview . 55Oil Spill Research Appropriation Presentation . xTable 10: Introductory . 59Summary of BY Program Changes . 59Justification of BY Program Changes . 59Program Overview . 59Performance Overview . 59Table 11: Performance Overview . 64Appendices . xSection 404 Compliance . 65Table: PER-4 Employee Count by Grade . 71MAX Tables/Budget Schedules . 73Authorizing Statutes. 81ii.

Director’s Preface

Director’s PrefaceFY 2015 BUDGET JUSTIFICATIONSBureau of Safety and Environmental EnforcementDirector’s PrefaceAs the Administration works to expand domestic energy production through President Obama’s “All ofthe Above” strategy, the Bureau of Safety and Environmental Enforcement (BSEE) is taking thenecessary steps to provide effective oversight of oil and gas development on the U.S. Outer ContinentalShelf (OCS), promoting compliance with Federal regulations, and leading the offshore oil and gasindustry toward a culture of safety and environmental protection.The 2015 BSEE budget fully supports the President’s strategy by ensuring development of the Nation’svast offshore energy resources is conducted in a safe and environmentally responsible manner. Fundswill be used to support and recruit expert engineers, scientists, and oil spill planning, prevention andresponse specialists to support the development of strong scientific information and the timely andthorough review of permits.In 2015, we will continue to build a robust culture of safety, with a strong focus on risk reduction. Everydecision and every action will be taken with the workers and the environment in mind. Risks to both willbe appropriately balanced and mitigated. We will bolster our capacity for analyzing data gained throughincident reporting requirements, near-miss reporting, and real-time monitoring. We will also work withindustry to better understand their safety processes, so that in turn we can mitigate and enhance riskreduction. Through these initiatives and others, we will continue to ensure that offshore developmentoccurs in a safe and environmentally responsible way.There are four key principles that guide the work we do for the American public: clarity, consistency,predictability, and accountability. These principles are what every citizen, as well as the regulatedcommunity, has the right to expect from their government and they provide the standard by which ourperformance will be measured. Our efforts are supported by two strategic goals: Regulate, enforce, and respond to OCS development using the full range of authorities, policies,and tools to compel safety, emergency preparedness, and environmental responsibility, andappropriate development and conservation of the offshore oil and natural gas resources, and; Build and sustain the organizational, technical, and intellectual capacity within and acrossBSEE’s key functions – capacity that keeps pace with OCS industry technological improvements,innovates in regulation and enforcement, and reduces risk through systemic assessment andregulatory and enforcement actions.These strategic goals guide our decision-making and investment strategies. The 2015 request furthersthese goals through a program increase of 905,000 to support enhanced review of emerging technologiesby technical experts, and expanding project funding used to validate technology, test protocols andanalyze economic feasibility. The 2015 request will allow BSEE to continue to strengthen our regulatoryand oversight capability on the U.S. Outer Continental Shelf by increasing the capacity in multipledisciplines to adequately staff regulatory, safety management, structural and technical support, and oilspill response prevention programs. Continued outreach and dialogue with stakeholders from academia,industry, non-governmental organizations, and other governmental agencies will enhance the knowledgebase of technical personnel related to innovative technologies, regulatory gaps, real-time monitoringcapabilities, and risk-based decision making for safety and environmental enforcement.Bureau of Safety and Environmental Enforcement1

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General Statement

General StatementFY 2015 PERFORMANCE BUDGET REQUESTBureau of Safety and Environmental EnforcementGeneral StatementTable 1: Summary of BSEE Budget RequestAccount/ActivityOffshore Safety and Environmental Enforcement (OSEE)FY 2013ActualFY 2014EnactedChangesfrom FY2014FY 2015RequestEnvironmental Enforcement1Operations, Safety and RegulationAdministrative OperationsGeneral Support ServicesExecutive DirectionTotal, 227189,726-8,314 9,704 116 399 106 2,011Offsetting Rental ReceiptsCost RecoveryInspection FeesTotal, Offsetting 02-65,000-123,970-50,412-8,167-65,000-123,579 156 235391Net OSEE58,18163,74566,147 2,402Oil Spill ,644202,61481,046204,625 2,402 2,011602120693125744125 51-722818869 51Disaster Relief Appropriations Act, 2013 (P.L. 113-2)Current BSEE FundingTotal BSEE FundingFull Time Equivalents (FTE)Total Direct FTETotal Reimbursable FTE (Reimbursable Agreements)Total FTE 2/1/The FY 2015 request consolidates the Environmental Enforcement Activity into the Operations, Safety and Regulation Activity.2/The total FTE request for 2015 is 2 FTE. The technical adjustment of 49 FTE aligns current staffing levels to those projected for the budgetyear base program. The FTE growth reflects current hiring trends that support measured growth, considering the challenges of filling technicalpositions across the Bureau. No additional funding is requested as a result of this adjustment.The Outer Continental Shelf (OCS) is a major source of energy for the United States. In calendar year2012, OCS leases offshore California, Alaska, and in the Gulf of Mexico provided about 483 millionbarrels of oil and 1,585 billion cubic feet of natural gas, accounting for almost 20 percent of the Nation’soil production and over 6 percent of domestic natural gas production1.1For additional details regarding OCS oil and gas production see: center/production/ocsprod.aspBureau of Safety and Environmental Enforcement3

General StatementThe Bureau of Safety and Environmental Enforcement (BSEE) is responsible for the oversight ofexploration, development, and production operations for oil and natural gas on the OCS. The BSEE’sregulation and oversight of Federal offshore resources ensures that energy development on the OCS isdone in a safe and environmentally responsible manner.The functions of BSEE include oil and gas permitting, facility inspections, regulations and standardsdevelopment, safety research, data collection, technology assessments, field operations, incidentinvestigation, environmental compliance and enforcement, oil spill prevention and readiness, review ofoperator oil spill response plans, oversight of production and development plans, and resourceconservation efforts.FY 2015 BUDGET REQUESTThe BSEE was established on October 1, 2011, and its purpose is to protect life, property, and theenvironment to ensure the safe and responsible development of our Nation’s offshore energy resources.BSEE’s continued focus is on safety and goes beyond simple compliance with regulations and toward theadoption, by everyone, of a meaningful safety culture that permeates all offshore activities. BSEEadvocates that every decision and every action must be taken with the workers and the environment inmind and risks to both must be appropriately balanced and mitigated.The BSEE continues to adapt its regulatory approach and oversight as offshore operations continue toexpand and move into new environments and require new technologies. Programs have been establishedthat will allow BSEE to identify, evaluate and promote emerging technologies for use on the OCS, whichwill decrease the risk of offshore oil and gas development and increase safety for offshore workers.BSEE has established a strategic plan that will allow the Bureau to quickly address current expanding andfuture activities on the OCS, such as inspecting proposed renewable energy projects and evaluatingtechnology advances that allow for deeper drilling at higher temperatures and pressures.Progress through ReformsThere are four key principles that guide the work BSEE does for the American public: clarity,consistency, predictability, and accountability. These principles are what every citizen, as well as theregulated community, has the right to expect from their government and they provide the standard bywhich BSEE’s performance will be measured. The Bureau’s efforts are supported by two strategic goals:4 To regulate, enforce, and respond to OCS development using the full range of authorities,policies, and tools to compel safety, emergency preparedness and environmental responsibilityand appropriate development and conservation of the offshore oil and natural gas resources. To build and sustain the organizational, technical, and intellectual capacity within and acrossBSEE’s key functions – capacity that keeps pace with the OCS industry’s technologicalBureau of Safety and Environmental Enforcement

General Statementimprovements, innovates in regulation and enforcement, and reduces risk through systemicassessment and regulatory and enforcement actions.The BSEE has already made significant progress toward achieving these goals. The Bureau enacted newregulations governing the safety of offshore drilling operations and implemented the Workplace SafetyRule incorporating, for the first time, performance-based standards through Safety and EnvironmentalManagement System (SEMS) requirements. The Bureau’s flexible, strategic approach towardcompliance was demonstrated through rigorous oversight of Shell’s drilling operations in the Arctic withround-the-clock inspector presence while drilling activities were ongoing. In addition, BSEE participatedin the Department’s comprehensive review of the company’s management and decisions, which has ledBSEE to begin development of an Arctic-specific rule that reflects the unique conditions under whichcompanies will work to develop the Nation’s oil and gas resources on the Arctic OCS.The BSEE 2012-2015 strategic plan forms a solid foundation for the Bureau and lays out a clearstatement of its mission, vision, and values. The BSEE will continue to build upon this foundation –working toward its strategic goals and prioritizing specific projects that will position the Bureau for evengreater effectiveness in its mission. Key focus areas include: Continuing to enhance offshore safety and environmental performance by promoting a safetyculture within the offshore oil and gas industry. Bolstering the investigations process to provide more data to aid in trend analysis and refining themethodology for evaluating emerging technologies to aid BSEE in making adjustments that willincrease the tools to make better decisions and keep pace with a dynamic, evolving industry. Increasing the capacity for analyzing data gained through incident reporting requirements, nearmiss reporting, and real-time monitoring. Promoting and supporting innovation through the review of emerging technologies and theidentification and use of Best Available and Safest Technology (BAST) within the drilling,production and spill response stakeholder communities. Promoting compliance through strategic enforcement by fully defining, enhancing, and utilizingthe Bureau’s enforcement authorities with a specific focus on risk. Investing in BSEE employees through recruiting and training. Investing in IT modernization and electronic reportingThe Bureau has continued to implement significant reforms that addressed several of the majorrecommendations resulting from the investigations and reports that followed the tragic explosion of theDeepwater Horizon and the subsequent oil spill. The Bureau issued the final drilling safety regulationsput in place on an interim basis after the spill and also updated oil spill response planning guidance. Bothof these reforms continue to contribute to the overall safety of the offshore oil and gas industry. Theupdated SEMS rule reinforced an ongoing effort by BSEE to