[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1026 Introduced in Senate (IS)]







109th CONGRESS
  1st Session
                                S. 1026

  To ensure that offshore energy development on the outer Continental 
  Shelf continues to serve the needs of the United States, to create 
opportunities for new development and the use of alternative resources, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 12, 2005

 Ms. Landrieu introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
  To ensure that offshore energy development on the outer Continental 
  Shelf continues to serve the needs of the United States, to create 
opportunities for new development and the use of alternative resources, 
                        and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stewardship for Our Coasts and 
Opportunities for Reliable Energy Act''.

SEC. 2. OUTER CONTINENTAL SHELF REVENUE SHARING FOR NON-MORATORIA 
              COASTAL PRODUCING STATES.

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

``SEC. 32. OUTER CONTINENTAL SHELF REVENUE SHARING FOR NON-MORATORIA 
              COASTAL PRODUCING STATES.

    ``(a) Definitions.--In this section:
            ``(1) Coastal political subdivision.--The term `coastal 
        political subdivision' means a political subdivision of a 
        producing State, all or part of which lies within the 
        boundaries of the coastal zone of the producing State that are 
        identified in the coastal zone management program for the 
        producing State under the Coastal Zone Management Act of 1972 
        (16 U.S.C. 1451 et seq.), as in effect on the date of enactment 
        of this section.
            ``(2) Coastal population.--The term `coastal population' 
        means the population, as determined by the most recent official 
        data of the Census Bureau, of each political subdivision, any 
        part of which lies within the designated coastal boundary of a 
        State (as defined in a coastal zone management program of the 
        State under the Coastal Zone Management Act of 1972 (16 U.S.C. 
        1451 et seq.)).
            ``(3) Coastal state.--The term `coastal State' has the 
        meaning given the term in section 304 of the Coastal Zone 
        Management Act of 1972 (16 U.S.C. 1453).
            ``(4) Coastline.--The term `coastline' has the meaning 
        given the term in section 2 of the Submerged Lands Act (43 
        U.S.C. 1301).
            ``(5) Distance.--The term `distance' means the minimum 
        great circle distance, measured in statute miles.
            ``(6) Leased tract.--The term `leased tract' means a tract 
        that is subject to a lease under section 6 or 8 for the purpose 
        of drilling for, developing, and producing oil or natural gas 
        resources.
            ``(7) Leasing moratoria.--The term `leasing moratoria' 
        means the prohibitions on preleasing, leasing, and related 
        activities on any geographic area of the outer Continental 
        Shelf as contained in--
                    ``(A) the moratorium statement of the President on 
                June 12, 1998; or
                    ``(B) section 110 of the Department of the Interior 
                and Related Agencies Appropriations Act, 2002 (Public 
                Law 107-63; 115 Stat. 438).
            ``(8) Political subdivision.--The term `political 
        subdivision' means the local political jurisdiction immediately 
        below the level of State government, including counties, 
        parishes, and boroughs.
            ``(9) Producing state.--
                    ``(A) In general.--The term `producing State' means 
                a coastal State that has a coastal seaward boundary 
                within 200 miles of the geographic center of a leased 
                tract within any area of the outer Continental Shelf.
                    ``(B) Exclusion.--The term `producing State' does 
                not include a producing State, a majority of the 
                coastline of which is subject to leasing moratoria.
            ``(10) Qualified outer continental shelf revenues.--
                    ``(A) In general.--The term `qualified Outer 
                Continental Shelf revenues' means all amounts received 
                by the United States from each leased tract or portion 
                of a leased tract--
                            ``(i) lying--
                                    ``(I) seaward of the zone covered 
                                by section 8(g); or
                                    ``(II) within the zone covered by 
                                section 8(g), but to which section 8(g) 
                                does not apply; and
                            ``(ii) the geographic center of which lies 
                        within 200 miles of any part of the coastline 
                        of any coastal State.
                    ``(B) Inclusions.--The term `qualified Outer 
                Continental Shelf revenues' includes bonus bids, rents, 
                royalties (including payments for royalty taken in kind 
                and sold), net profit share payments, and related late-
                payment interest from natural gas and oil leases issued 
                under this Act.
                    ``(C) Exclusion.--The term `qualified Outer 
                Continental Shelf revenues' does not include any 
                revenues (other than revenues received under section 
                18(i)) from a leased tract or portion of a leased tract 
                that is located in a geographic area subject to a 
                leasing moratorium on January 1, 2005, unless the lease 
                was in production on that date.
            ``(11) Transferred amount.--The term `transferred amount' 
        means the amount transferred to the Secretary under subsection 
        (b)(1) to make payments to producing States and coastal 
        political subdivisions under this section for a fiscal year.
    ``(b) Payments to Producing States and Coastal Political 
Subdivisions.--
            ``(1) Transfer of amounts.--From qualified Outer 
        Continental Shelf revenues deposited in the Treasury under this 
        Act for a fiscal year, the Secretary of the Treasury shall 
        transfer to the Secretary to make payments to producing States 
        and coastal political subdivisions under this section--
                    ``(A) for each of fiscal years 2006 through 2010, 
                $500,000,000; and
                    ``(B) for fiscal year 2011 and each subsequent 
                fiscal year, an amount equal to 50 percent of qualified 
                Outer Continental Shelf revenues received for a fiscal 
                year.
            ``(2) Disbursement.--In each fiscal year, the Secretary 
        shall, without further appropriation for purposes of paragraph 
        (1)(B) and subject to the availability of appropriations for 
        purposes of paragraph (1)(A), disburse to each producing State 
        for which the Secretary has approved a plan under subsection 
        (c), and to coastal political subdivisions under paragraph (4), 
        the funds allocated to the producing State or coastal political 
        subdivision under this section for the fiscal year.
            ``(3) Allocation among producing states.--
                    ``(A) In general.--The transferred amount shall be 
                allocated to each producing State based on the ratio 
                that--
                            ``(i) the amount of qualified outer 
                        Continental Shelf revenues generated off the 
                        coastline of the producing State; bears to
                            ``(ii) the amount of qualified outer 
                        Continental Shelf revenues generated off the 
                        coastline of all producing States.
                    ``(B) Qualified outer continental shelf revenues.--
                            ``(i) Fiscal years 2006 through 2008.--For 
                        each of fiscal years 2006 through 2008, a 
                        calculation of a payment under this subsection 
                        shall be based on qualified outer Continental 
                        Shelf revenues received during fiscal year 
                        2005.
                            ``(ii) Fiscal years 2009 through 2010.--For 
                        each of fiscal years 2009 through 2010, a 
                        calculation of a payment under this subsection 
                        shall be based on qualified outer Continental 
                        Shelf revenues received during fiscal year 
                        2008.
                            ``(iii) Fiscal year 2011 and thereafter.--
                        Beginning in fiscal year 2011, a calculation of 
                        a payment under this subsection for each fiscal 
                        year during a 2-year fiscal year period shall 
                        be based on qualified outer Continental Shelf 
                        revenues received during the fiscal year 
                        preceding the first fiscal year of the 2-year 
                        fiscal year period.
                    ``(C) Multiple producing states.--If more than 1 
                producing State is located within 200 miles of any 
                portion of a leased tract, the amount allocated to each 
                producing State for the leased tract shall be inversely 
                proportional to the distance between--
                            ``(i) the nearest point on the coastline of 
                        the producing State; and
                            ``(ii) the geographic center of the leased 
                        tract.
                    ``(D) Minimum allocation.--An amount allocated to a 
                producing State under this paragraph shall be not less 
                than 1 percent of the transferred amount.
            ``(4) Payments to coastal political subdivisions.--
                    ``(A) In general.--The Secretary shall pay 35 
                percent of the amount allocated under paragraph (3) to 
                the coastal political subdivisions in the producing 
                State.
                    ``(B) Formula.--Of the amount paid by the Secretary 
                to coastal political subdivisions under subparagraph 
                (A)--
                            ``(i) 25 percent shall be allocated to each 
                        coastal political subdivision in the proportion 
                        that--
                                    ``(I) the coastal population of the 
                                coastal political subdivision; bears to
                                    ``(II) the coastal population of 
                                all coastal political subdivisions in 
                                the producing State;
                            ``(ii) 25 percent shall be allocated to 
                        each coastal political subdivision in the 
                        proportion that--
                                    ``(I) the number of miles of 
                                coastline of the coastal political 
                                subdivision; bears to
                                    ``(II) the number of miles of 
                                coastline of all coastal political 
                                subdivisions in the producing State; 
                                and
                            ``(iii) 50 percent shall be allocated in 
                        amounts that are inversely proportional to the 
                        respective distances between the points in each 
                        coastal political subdivision that are closest 
                        to the geographic center of each leased tract, 
                        as determined by the Secretary.
                    ``(C) Exception for louisiana.--For the purposes of 
                subparagraph (B)(ii), the coastline for coastal 
                political subdivisions in the State of Louisiana 
                without a coastline shall be the average length of the 
                coastline of all other coastal political subdivisions 
                in the State of Louisiana.
                    ``(D) Exception for alaska.--For the purposes of 
                carrying out subparagraph (B)(iii) in the State of 
                Alaska, the amount allocated shall be divided equally 
                among the 2 coastal political subdivisions that are 
                closest to the geographic center of a leased tract.
                    ``(E) Exclusion of certain leased tracts.--For 
                purposes of subparagraph (B)(iii), a leased tract or 
                portion of a leased tract shall be excluded if the 
                tract or portion of a leased tract is located in a 
                geographic area subject to a leasing moratorium on 
                January 1, 2005, unless the lease was in production on 
                that date.
            ``(5) No approved plan.--
                    ``(A) In general.--Subject to subparagraph (B) and 
                except as provided in subparagraph (C), if any amount 
                allocated to a producing State or coastal political 
                subdivision under paragraph (3) or (4) is not disbursed 
                because the producing State does not have in effect a 
                plan that has been approved by the Secretary under 
                subsection (c), the Secretary shall allocate the 
                undisbursed amount equally among all other producing 
                States.
                    ``(B) Retention of allocation.--The Secretary shall 
                hold in escrow an undisbursed amount described in 
                subparagraph (A) until the date that the final appeal 
                regarding the disapproval of a plan submitted under 
                subsection (c) is decided.
                    ``(C) Waiver.--The Secretary may waive the 
                requirements of subparagraph (A) with respect to an 
                allocated share of a producing State and hold the 
                allocable share in escrow if the Secretary determines 
                that the producing State is making a good faith effort 
                to develop and submit, or update, a plan in accordance 
                with subsection (c).
    ``(c) Coastal Impact Assistance Plan.--
            ``(1) Submission of state plan.--
                    ``(A) In general.--Not later than July 1, 2008, the 
                Governor of a producing State shall submit to the 
                Secretary a coastal impact assistance plan.
                    ``(B) Public participation.--In carrying out 
                subparagraph (A), the Governor shall solicit local 
                input and provide for public participation in the 
                development of the plan.
            ``(2) Approval.--
                    ``(A) In general.--The Secretary shall approve a 
                plan of a producing State submitted under paragraph (1) 
                before disbursing any amount to the producing State, or 
                to a coastal political subdivision located in the 
                producing State, under this section.
                    ``(B) Components.--The Secretary shall approve a 
                plan submitted under paragraph (1) if--
                            ``(i) the Secretary determines that the 
                        plan is consistent with the uses described in 
                        subsection (d); and
                            ``(ii) the plan contains--
                                    ``(I) the name of the State agency 
                                that will have the authority to 
                                represent and act on behalf of the 
                                producing State in dealing with the 
                                Secretary for purposes of this section;
                                    ``(II) a program for the 
                                implementation of the plan that 
                                describes how the amounts provided 
                                under this section to the producing 
                                State will be used;
                                    ``(III) for each coastal political 
                                subdivision that receives an amount 
                                under this section--
                                            ``(aa) the name of a 
                                        contact person; and
                                            ``(bb) a description of how 
                                        the coastal political 
                                        subdivision will use amounts 
                                        provided under this section;
                                    ``(IV) a certification by the 
                                Governor that ample opportunity has 
                                been provided for public participation 
                                in the development and revision of the 
                                plan; and
                                    ``(V) a description of measures 
                                that will be taken to determine the 
                                availability of assistance from other 
                                relevant Federal resources and 
                                programs.
            ``(3) Amendment to a plan.--Any amendment to a plan 
        submitted under paragraph (1) shall be--
                    ``(A) developed in accordance with this subsection; 
                and
                    ``(B) submitted to the Secretary for approval or 
                disapproval under paragraph (4).
            ``(4) Procedure.--Except as provided in subparagraph (B), 
        not later than 90 days after the date on which a plan or 
        amendment to a plan is submitted under paragraph (1) or (3), 
        the Secretary shall approve or disapprove the plan or 
        amendment.
    ``(d) Authorized Uses.--
            ``(1) Fiscal years 2006 through 2010.--A producing State or 
        coastal political subdivision shall use any amount transferred 
        under subsection (b)(1)(A) that is distributed to the producing 
        State or coastal political subdivision, including any amount 
        deposited in a trust fund that is administered by the State or 
        coastal political subdivision and dedicated to a use consistent 
        with this section, in accordance with all applicable Federal 
        and State law, only for 1 or more of the following purposes:
                    ``(A) Projects and activities for the conservation, 
                protection, or restoration of coastal areas, including 
                wetland.
                    ``(B) Mitigation of damage to fish, wildlife, or 
                natural resources.
                    ``(C) Planning assistance and the administrative 
                costs of complying with this section.
                    ``(D) Implementation of a federally-approved 
                marine, coastal, or comprehensive conservation 
                management plan.
                    ``(E) Mitigation of the impact of outer Continental 
                Shelf activities through funding of onshore 
                infrastructure, education, health care, and public 
                service needs.
            ``(2) Fiscal year 2011 and thereafter.--A producing State 
        or coastal political subdivision shall use at least 25 percent 
        of any amount transferred under subsection (b)(1)(B) that is 
        distributed to the producing State or coastal political 
        subdivision, including any amount deposited in a trust fund 
        that is administered by the State or coastal political 
        subdivision and dedicated to a use consistent with this 
        section, for 1 or more of the purposes described in paragraph 
        (1).
            ``(3) Compliance with authorized uses.--If the Secretary 
        determines that any expenditure made by a producing State or 
        coastal political subdivision is not consistent with this 
        subsection, the Secretary shall not disburse any additional 
        amount under this section to the producing State or the coastal 
        political subdivision until all amounts obligated for 
        unauthorized uses have been repaid or reobligated for 
        authorized uses.''.

SEC. 3. ESTABLISHMENT OF SEAWARD LATERAL BOUNDARIES FOR COASTAL STATES.

    Section 4(a)(2)(A) of the Outer Continental Shelf Lands Act (43 
U.S.C. 1333(a)(2)(A)) is amended--
            (1) by inserting ``(i)'' after ``(A)'';
            (2) in the first sentence--
                    (A) by striking ``President shall'' and inserting 
                ``Secretary shall by regulation''; and
                    (B) by inserting before the period at the end the 
                following: ``not later than 180 days after the date of 
                enactment of the Stewardship for Our Coasts and 
                Opportunities for Reliable Energy Act''; and
            (3) by adding at the end the following:
    ``(i)(I) For purposes of this Act (including determining boundaries 
to authorize leasing and preleasing activities and any attributing 
revenues under this Act and calculating payments to producing States 
and coastal political subdivisions under section 32), the Secretary 
shall delineate the lateral boundaries between coastal States in areas 
of the outer Continental shelf under exclusive Federal jurisdiction, to 
the extent of the exclusive economic zone of the United States, in 
accordance with article 15 of the United Nations Convention on the Law 
of the Sea of December 10, 1982.
    ``(II) This clause shall not affect any right or title to Federal 
submerged land on the outer Continental Shelf.''.

SEC. 4. OPTION TO PETITION FOR LEASING WITHIN CERTAIN AREAS ON THE 
              OUTER CONTINENTAL SHELF.

    Section 12 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1341) is amended by adding at the end the following:
    ``(g) Leasing Within the Seaward Lateral Boundaries of Coastal 
States.--
            ``(1) Definition of affected area.--In this subsection, the 
        term `affected area' means any area located--
                    ``(A) in the areas of northern, central, and 
                southern California and the areas of Oregon and 
                Washington;
                    ``(B) in the north, middle, or south planning area 
                of the Atlantic Ocean;
                    ``(C) in the eastern Gulf of Mexico planning area 
                and lying--
                            ``(i) south of 26 degrees north latitude; 
                        and
                            ``(ii) east of 86 degrees west longitude; 
                        or
                    ``(D) in the Straits of Florida.
            ``(2) Restrictions on leasing.--The Secretary shall not 
        offer for offshore leasing, preleasing, or any related 
        activity--
                    ``(A) any area located on the outer Continental 
                Shelf that, as of the date of enactment of this 
                subsection, is designated as a marine sanctuary under 
                the Marine Protection, Research, and Sanctuaries Act of 
                1972 (33 U.S.C. 1401 et seq.); or
                    ``(B) except as provided in paragraphs (3) and (4), 
                during the period beginning on the date of enactment of 
                this subsection and ending on June 30, 2012, any 
                affected area.
            ``(3) Resource assessments.--
                    ``(A) In general.--Beginning on the date on which 
                the Secretary delineates seaward lateral boundaries 
                under section 4(a)(2)(A)(ii), a Governor of a State in 
                which an affected area is located, with the consent of 
                the legislature of the State, may submit to the 
                Secretary a petition requesting a resource assessment 
                of any area within the seaward lateral boundary of the 
                State.
                    ``(B) Eligible resources.--A petition for a 
                resource assessment under subparagraph (A) may be for--
                            ``(i) oil and gas leasing;
                            ``(ii) gas-only leasing; or
                            ``(iii) any other energy source leasing, 
                        including renewable energy leasing.
                    ``(C) Action by secretary.--Not later than 90 days 
                after receipt of a petition under subparagraph (A), the 
                Secretary shall approve the petition, unless the 
                Secretary determines that a resource assessment of the 
                area would create an unreasonable risk of harm to the 
                marine, human, or coastal environment of the State.
                    ``(D) Failure to act.--If the Secretary fails to 
                approve or deny a petition in accordance with 
                subparagraph (C)--
                            ``(i) the petition shall be considered to 
                        be approved; and
                            ``(ii) a resource assessment of any 
                        appropriate area shall be carried out as soon 
                        as practicable.
                    ``(E) Submission to state.--As soon as practicable 
                after the date on which a petition is approved under 
                subparagraph (C) or (D), the Secretary shall--
                            ``(i) complete the resource assessment for 
                        the area; and
                            ``(ii) submit the completed resource 
                        assessment to the State.
            ``(4) Petition for leasing.--
                    ``(A) In general.--On receipt of a resource 
                assessment under paragraph (3)(E)(ii), the Governor of 
                a State in which an affected area is located, with the 
                consent of the legislature of the State, may submit to 
                the Secretary a petition requesting that the Secretary 
                make available any land that is within the seaward 
                lateral boundaries of the State (as established under 
                section 4(a)(2)(A)(ii)) and that is greater than 20 
                miles from the coastline of the State for the conduct 
                of offshore leasing, pre-leasing, or related activities 
                with respect to--
                            ``(i) oil and gas leasing;
                            ``(ii) gas-only leasing; or
                            ``(iii) any other energy source leasing, 
                        including renewable energy leasing.
                    ``(B) Action by secretary.--Not later than 90 days 
                after receipt of a petition under subparagraph (A), the 
                Secretary shall approve the petition, unless the 
                Secretary determines that leasing the area would create 
                an unreasonable risk of harm to the marine, human, or 
                coastal environment of the State.
                    ``(C) Failure to act.--If the Secretary fails to 
                approve or deny a petition in accordance with 
                subparagraph (B)--
                            ``(i) the petition shall be considered to 
                        be approved; and
                            ``(ii) any appropriate area shall be made 
                        available for oil and gas leasing, gas-only 
                        leasing, or any other energy source leasing, 
                        including renewable energy leasing.
            ``(5) Revenue sharing.--
                    ``(A) In general.--Beginning on the date on which 
                production begins in an area under this subsection, the 
                State shall, without further appropriation, share in 
                any qualified outer Continental Shelf revenues of the 
                production under section 32.
                    ``(B) Applicable law.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), a State shall not be required to 
                        comply with subsections (c) and (d) of section 
                        32 to share in qualified outer Continental 
                        Shelf revenues under subparagraph (A).
                            ``(ii) Exception.--Of any qualified outer 
                        Continental Shelf revenues received by a State 
                        (including a political subdivision of a State) 
                        under subparagraph (A), at least 25 percent 
                        shall be used for 1 or more of the purposes 
                        described in section 32(d)(1).
            ``(6) Effect.--Nothing in this subsection affects any right 
        relating to an area described in paragraph (1) or (2) under a 
        lease that was in existence on the day before the date of 
        enactment of this subsection.''.

SEC. 5. ALTERNATE ENERGY-RELATED USES ON THE OUTER CONTINENTAL SHELF.

    (a) Amendment to Outer Continental Shelf Lands Act.--Section 8 of 
the Outer Continental Shelf Lands Act (43 U.S.C. 1337) is amended by 
adding at the end the following:
    ``(p) Leases, Easements, or Rights-of-Way for Energy and Related 
Purposes.--
            ``(1) In general.--The Secretary, in consultation with the 
        Secretary of the Department in which the Coast Guard is 
        operating and other relevant departments and agencies of the 
        Federal Government, may grant a lease, easement, or right-of-
        way on the outer Continental Shelf for activities not otherwise 
        authorized under this Act, the Deepwater Port Act of 1974 (33 
        U.S.C. 1501 et seq.), the Ocean Thermal Energy Conversion Act 
        of 1980 (42 U.S.C. 9101 et seq.), or other applicable law, if 
        those activities--
                    ``(A) support exploration, development, production, 
                transportation, or storage of oil, natural gas, or 
                other minerals;
                    ``(B) produce or support production, 
                transportation, or transmission of energy from sources 
                other than oil and gas; or
                    ``(C) use, for energy-related or marine-related 
                purposes, facilities in use on or before the date of 
                enactment of this subsection for activities authorized 
                under this Act.
            ``(2) Payments.--
                    ``(A) In general.--The Secretary shall establish, 
                by rule or agreement with the party to which the 
                easement or right-of-way is granted under this 
                subsection, reasonable forms of payment for the 
                easement or right-of-way, including a fee, rental, 
                bonus, or other payment.
                    ``(B) Assessment.--A payment under subparagraph (A) 
                shall not be assessed on the basis of throughput or 
                production.
                    ``(C) Payments to states.--If a lease, easement, 
                right-of-way, license, or permit under this subsection 
                covers a specific tract of, or regards a facility 
                located on, the outer Continental Shelf and is not an 
                easement or right-of-way for transmission or 
                transportation of energy, minerals, or other natural 
                resources, the Secretary shall pay 50 percent of any 
                amount received from the holder of the lease, easement, 
                right-of-way, license, or permit to the State off the 
                shore of which the geographic center of the area 
                covered by the lease, easement, right-of-way, license, 
                permit, or facility is located.
            ``(3) Consultation.--Before exercising authority under this 
        subsection, the Secretary shall consult with the Secretary of 
        Defense and other appropriate agencies concerning issues 
        related to national security and navigational obstruction.
            ``(4) Competitive or noncompetitive basis.--
                    ``(A) In general.--The Secretary may issue a lease, 
                easement, or right-of-way under paragraph (1) on a 
                competitive or noncompetitive basis.
                    ``(B) Considerations.--In determining whether a 
                lease, easement, or right-of-way shall be granted 
                competitively or noncompetitively, the Secretary shall 
                consider such factors as--
                            ``(i) prevention of waste and conservation 
                        of natural resources;
                            ``(ii) the economic viability of an energy 
                        project;
                            ``(iii) protection of the environment;
                            ``(iv) the national interest and national 
                        security;
                            ``(v) human safety;
                            ``(vi) protection of correlative rights; 
                        and
                            ``(vii) potential return for the lease, 
                        easement, or right-of-way.
            ``(5) Regulations.--Not later than 270 days after the date 
        of enactment of this subsection, the Secretary, in consultation 
        with the Secretary of the Department in which the Coast Guard 
        is operating and other relevant agencies of the Federal 
        Government and affected States, shall issue any necessary 
        regulations to ensure--
                    ``(A) safety;
                    ``(B) protection of the environment;
                    ``(C) prevention of waste;
                    ``(D) conservation of the natural resources of the 
                outer Continental Shelf;
                    ``(E) protection of national security interests; 
                and
                    ``(F) protection of correlative rights in the outer 
                Continental Shelf.
            ``(6) Security.--The Secretary shall require the holder of 
        a lease, easement, or right-of-way granted under this 
        subsection--
                    ``(A) to furnish a surety bond or other form of 
                security, as prescribed by the Secretary; and
                    ``(B) to comply with such other requirements as the 
                Secretary considers necessary to protect the interests 
                of the United States.
            ``(7) Effect of subsection.--Nothing in this subsection 
        displaces, supersedes, limits, or modifies the jurisdiction, 
        responsibility, or authority of any Federal or State agency 
        under any other Federal law.
            ``(8) Applicability.--This subsection does not apply to any 
        area on the outer Continental Shelf designated as a National 
        Marine Sanctuary.''.
    (b) Conforming Amendment.--Section 8 of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1337) is amended by striking the section heading 
and inserting the following: ``leases, easements, and rights-of-way on 
the outer continental shelf.--''.
    (c) Savings Provision.--Nothing in the amendment made by subsection 
(a) requires any resubmittal of documents previously submitted or any 
reauthorization of actions previously authorized, with respect to any 
project--
            (1) for which offshore test facilities have been 
        constructed before the date of enactment of this Act; or
            (2) for which a request for proposals has been issued by a 
        public authority.

SEC. 6. REGULATIONS.

    (a) In General.--The Secretary of the Interior shall issue such 
regulations as are necessary to carry out this Act and the amendments 
made by this Act, including regulations establishing procedures for 
entering into gas-only leases.
    (b) Gas-Only Leases.--In issuing regulations establishing 
procedures for entering into gas-only leases, the Secretary shall--
            (1) ensure that gas-only leases under the Outer Continental 
        Shelf Lands Act (43 U.S.C. 1331 et seq.) are not available in a 
        State that (as of the day before the date of enactment of this 
        Act) did not contain an affected area (as defined in section 
        9(a) of that Act (as amended by section 5(a))); and
            (2) define ``natural gas'' as--
                    (A) unmixed natural gas; or
                    (B) any mixture of natural or artificial gas 
                (including compressed or liquefied petroleum gas) and 
                condensate recovered from natural gas.
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