[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 733 Introduced in Senate (IS)]







109th CONGRESS
  1st Session
                                 S. 733

 To amend the Outer Continental Shelf Lands Act to provide a domestic 
     offshore energy reinvestment program, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 6, 2005

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

_______________________________________________________________________

                                 A BILL


 
 To amend the Outer Continental Shelf Lands Act to provide a domestic 
     offshore energy reinvestment program, 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 ``Domestic Offshore Energy 
Reinvestment Act of 2005''.

SEC. 2. DOMESTIC OFFSHORE ENERGY REINVESTMENT.

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

``SEC. 32. DOMESTIC OFFSHORE ENERGY REINVESTMENT PROGRAM.

    ``(a) In this section:
            ``(1) The term `approved plan' means a secure energy 
        reinvestment plan approved by the Secretary under this section.
            ``(2) The term `coastal energy State' means a coastal State 
        off the coastline of which, within the seaward lateral 
        boundary, an outer Continental Shelf bonus bid or royalty is 
        generated (excluding a bonus bid or royalty from a leased tract 
        within an area of the outer Continental Shelf for which a 
        moratorium on new leasing was in effect as of January 1, 2002, 
        unless the lease was issued before the establishment of the 
        moratorium and was in production on that date).
            ``(3) The term `coastal political subdivision' means a 
        county, parish, or other equivalent subdivision of a coastal 
        energy State, all or part of which, on the date of the 
        enactment of this section, lies within the boundaries of the 
        coastal zone of the State, as identified in the coastal zone 
        management program of the State approved under the Coastal Zone 
        Management Act of 1972 (16 U.S.C. 1451 et seq.).
            ``(4) The term `coastal population' means the population of 
        a coastal political subdivision, as determined by the most 
        recent official data of the Census Bureau.
            ``(5) The term `coastline' has the meaning given the term 
        `coast line' in section 2(c) of the Submerged Lands Act (43 
        U.S.C. 1301(c)).
            ``(6) The term `Fund' means the Secure Energy Reinvestment 
        Fund established by subsection (b)(1).
            ``(7) The term `leased tract' means a tract maintained 
        under section 6 or leased under section 8 for the purpose of 
        drilling for, developing, and producing oil and natural gas 
        resources.
            ``(8)(A) Except as provided in subparagraph (B), the term 
        `qualified outer Continental Shelf revenues' means all amounts 
        received by the United States on or after October 1, 2005, from 
        each leased tract or portion of a leased tract lying seaward of 
        the zone defined and governed by section 8(g) (or lying within 
        that zone but to which section 8(g) does not apply), including 
        bonus bids, rents, royalties (including payments for royalties 
        taken in kind and sold), net profit share payments, and related 
        interest.
            ``(B) The term `qualified outer Continental Shelf revenues' 
        does not include any revenue from a leased tract or portion of 
        a leased tract that is included within any area of the outer 
        Continental Shelf for which a moratorium on new leasing was in 
        effect as of January 1, 2002, unless the lease was issued 
        before the establishment of the moratorium and was in 
        production on that date.
            ``(9) The term `Secretary' means the Secretary of the 
        Interior.
    ``(b)(1)(A) There is established in the Treasury of the United 
States a separate account to be known as the `Secure Energy 
Reinvestment Fund'.
    ``(B) The Fund shall consist of--
            ``(i) any amount deposited under paragraph (2); and
            ``(ii) any other amounts that are appropriated to the Fund.
    ``(2) For each fiscal year after fiscal year 2006, the Secretary of 
the Treasury shall deposit into the Fund the following:
            ``(A) Notwithstanding section 9, all qualified outer 
        Continental Shelf revenues attributable to royalties received 
        by the United States during the fiscal year in excess of--
                    ``(i) in the case of royalties received in fiscal 
                year 2006, $7,000,000,000;
                    ``(ii) in the case of royalties received in fiscal 
                year 2007, $7,100,000,000;
                    ``(iii) in the case of royalties received in fiscal 
                year 2008, $7,300,000,000;
                    ``(iv) in the case of royalties received in fiscal 
                year 2009, $6,900,000,000;
                    ``(v) in the case of royalties received in fiscal 
                year 2010, $7,200,000,000;
                    ``(vi) in the case of royalties received in fiscal 
                year 2011, $7,250,000,000;
                    ``(vii) in the case of royalties received in fiscal 
                year 2012, $8,125,000,000;
                    ``(viii) in the case of royalties received in 
                fiscal year 2013, $8,100,000,000;
                    ``(ix) in the case of royalties received in fiscal 
                year 2014, $9,000,000,000; and
                    ``(x) in the case of royalties received in fiscal 
                year 2015, $7,500,000,000.
            ``(B) Notwithstanding section 9, any qualified outer 
        Continental shelf revenues that are attributable to bonus bids 
        received by the United States during each of fiscal years 2006 
        through 2015 in excess of $880,000,000.
            ``(C) Notwithstanding section 9, in addition to amounts 
        deposited under subparagraphs (A), (B), and (F), $150,000,000 
        of the amounts received by the United States during each of 
        fiscal years 2006 through 2015 as royalties for oil or gas 
        production on the outer Continental Shelf.
            ``(D) All interest earned under paragraph (4).
            ``(E) All repayments made under subsection (f).
            ``(F) Notwithstanding section 9--
                    ``(i) for fiscal year 2016, an amount equal to 8 
                percent of the qualified outer Continental Shelf 
                revenues received by the United States during fiscal 
                year 2015;
                    ``(ii) for fiscal year 2017, an amount equal to 10 
                percent of the qualified outer Continental Shelf 
                revenues received by the United States during fiscal 
                year 2016;
                    ``(iii) for fiscal year 2018, an amount equal to 12 
                percent of the qualified outer Continental Shelf 
                revenues received by the United States during fiscal 
                year 2017;
                    ``(iv) for fiscal year 2019, an amount equal to 14 
                percent of the qualified outer Continental Shelf 
                revenues received by the United States during fiscal 
                year 2018;
                    ``(v) for fiscal year 2020, an amount equal to 16 
                percent of the qualified outer Continental Shelf 
                revenues received by the United States during fiscal 
                year 2019;
                    ``(vi) for fiscal year 2021, an amount equal to 18 
                percent of the qualified outer Continental Shelf 
                revenues received by the United States during fiscal 
                year 2020;
                    ``(vii) for fiscal year 2022, an amount equal to 20 
                percent of the qualified outer Continental Shelf 
                revenues received by the United States during fiscal 
                year 2021;
                    ``(viii) for fiscal year 2023, an amount equal to 
                22 percent of the qualified outer Continental Shelf 
                revenues received by the United States during fiscal 
                year 2022;
                    ``(ix) for fiscal year 2024, an amount equal to 24 
                percent of the qualified outer Continental Shelf 
                revenues received by the United States during fiscal 
                year 2023;
                    ``(x) for fiscal year 2025, an amount equal to 26 
                percent of the qualified outer Continental Shelf 
                revenues received by the United States during fiscal 
                year 2024; and
                    ``(xi) for fiscal year 2026 and each subsequent 
                fiscal year, an amount equal to 27 percent of the 
                qualified outer Continental Shelf revenues received by 
                the United States during the preceding fiscal year.
    ``(3)(A) For each fiscal year after fiscal year 2015 during which 
amounts received by the United States as royalties for oil or gas 
production on the outer Continental Shelf are less than the sum of the 
amounts described in subparagraph (B) and paragraph (2)(F), the 
Secretary of the Treasury shall reduce each of the amounts described in 
subparagraph (B) proportionately.
    ``(B) The amounts referred to in subparagraph (A) are--
            ``(i) the amount required to be covered into the Historic 
        Preservation Fund under section 108 of the National Historic 
        Preservation Act (16 U.S.C. 470h) on the date of the enactment 
        of this section;
            ``(ii) the amount required to be credited to the Land and 
        Water Conservation Fund under section 2(c)(2) of the Land and 
        Water Conservation Fund Act of 1965 (16 U.S.C. 460l-5(c)(2)) on 
        the date of enactment of this section; and
            ``(iii) the amount required to be deposited under paragraph 
        (2)(C).
    ``(4)(A) The Secretary of the Treasury shall invest money in the 
Fund (including interest) in public debt securities--
            ``(i) with maturities suitable to the needs of the Fund, as 
        determined by the Secretary of the Treasury; and
            ``(ii) bearing interest at rates determined by the 
        Secretary of the Treasury, taking into consideration current 
        market yields on outstanding marketable obligations of the 
        United States of comparable maturity.
    ``(B) Money invested pursuant to subparagraph (A) shall remain 
invested until the money is needed to meet a requirement for 
disbursement under this section.
    ``(5) Not later than December 31, 2010, the Secretary, in 
consultation with the Secretary of the Treasury, shall--
            ``(A) determine the amount and composition of outer 
        Continental Shelf revenues that were received by the United 
        States during each of fiscal years 2006 through 2010;
            ``(B) project the amount and composition of outer 
        Continental Shelf revenues that will be received by the United 
        States during each of fiscal years 2011 through 2015; and
            ``(C) submit to Congress a report regarding whether any 
        amount described in clauses (vi) through (x) of paragraph 
        (2)(A), or paragraph (2)(B), should be modified to reflect a 
        projection under subparagraph (B).
    ``(6) For each of fiscal years 2006 through 2015, in addition to 
the amounts deposited into the Fund under paragraph (2), there are 
authorized to be appropriated to the Fund an amount equal to 8 percent 
of the qualified outer Continental Shelf revenues received by the 
United States during the preceding fiscal year.
    ``(c)(1)(A) The Secretary shall use any amount remaining in the 
Fund after the application of subsections (h) and (i) to pay to each 
coastal energy State, and any coastal political subdivision of a State, 
the secure energy reinvestment plan of which is approved by the 
Secretary under this section, the amount allocated to the State or 
coastal political subdivision, respectively, under this subsection.
    ``(B) During December 2006, and each December thereafter, the 
Secretary shall make any payment under this paragraph from revenues 
received by the United States during the preceding fiscal year.
    ``(2) The Secretary shall allocate any amount deposited into the 
Fund for a fiscal year, and any other amount determined by the 
Secretary to be available, among coastal energy States, and coastal 
political subdivisions of those States, that have a plan approved by 
the Secretary under this section as follows:
            ``(A)(i) Of the amounts made available for each of the 
        first 10 fiscal years for which amounts are available for 
        allocation under this paragraph, the allocation for each 
        coastal energy State shall be calculated based on the ratio 
        that--
                    ``(I) the qualified outer Continental Shelf 
                revenues generated off the coastline of the coastal 
                energy State; bears to
                    ``(II) the qualified outer Continental Shelf 
                revenues generated off the coastlines of all coastal 
                energy States for the period beginning January 1, 1992, 
                and ending December 31, 2001.
            ``(ii) Of the amounts made available for a fiscal year 
        after the fiscal years described in clause (i), the allocation 
        for each coastal energy State shall be calculated based on a 
        ratio determined by the Secretary with respect to the qualified 
        outer Continental Shelf revenues generated in the corresponding 
        10-year period.
            ``(iii) For the purposes of this subparagraph, qualified 
        outer Continental Shelf revenues shall be considered to be 
        generated off the coastline of a coastal energy State if the 
        geographic center of the lease tract from which the revenues 
        are generated is located within the area formed by the 
        extension of the seaward lateral boundaries of the State, 
        calculated using the conventions established to delimit 
        international lateral boundaries under the Law of the Sea.
            ``(B) 35 percent of the allocable share of each coastal 
        energy State, as determined under subparagraph (A), shall be 
        allocated among and paid directly to the coastal political 
        subdivisions of the State by the Secretary based on the 
        following formula:
                    ``(i) 25 percent shall be allocated based on the 
                ratio that--
                            ``(I) the coastal population of each 
                        coastal political subdivision; bears to
                            ``(II) the coastal population of all 
                        coastal political subdivisions of the coastal 
                        energy State.
                    ``(ii)(I) 25 percent shall be allocated based on 
                the ratio that--
                            ``(aa) the length, in miles, of the 
                        coastline of each coastal political 
                        subdivision; bears to
                            ``(bb) the length, in miles, of the 
                        coastline of all coastal political subdivisions 
                        of the State.
                    ``(II) For purposes of this clause, in the case of 
                a coastal political subdivision without a coastline, 
                the coastline of the political subdivision shall be \1/
                3\ the average length of the coastline of the other 
                coastal political subdivisions of the State.
                    ``(iii) 50 percent shall be allocated based on a 
                formula that allocates--
                            ``(I) 75 percent of the funds based on the 
                        relative distance of the coastal political 
                        subdivision from any leased tract used to 
                        calculate the allocation to that State; and
                            ``(II) 25 percent of the funds based on the 
                        relative level of outer Continental Shelf oil 
                        and gas activities in a coastal political 
                        subdivision to the level of outer Continental 
                        Shelf oil and gas activities in all coastal 
                        political subdivisions in the State, as 
                        determined by the Secretary.
    ``(3) Any amount allocated to a coastal energy State or coastal 
political subdivision that is not disbursed because of a failure of a 
coastal energy State to have an approved plan shall be reallocated by 
the Secretary among all other coastal energy States in a manner 
consistent with this subsection, except that the Secretary--
            ``(A) shall hold the amount in escrow within the Fund until 
        the earlier of--
                    ``(i) the end of the next fiscal year during which 
                the allocation is made; or
                    ``(ii) the date on which a final resolution of an 
                appeal regarding the disapproval of a plan submitted by 
                the State under this section is filed; and
            ``(B) shall continue to hold the amount in escrow until the 
        end of the subsequent fiscal year, if the Secretary determines 
        that a State is making a good faith effort to develop and 
        submit, or update, a secure energy reinvestment plan under 
        subsection (d).
    ``(4) Notwithstanding any other provision of this subsection, the 
amount allocated under this subsection to each coastal energy State 
during a fiscal year shall be not less than 5 percent of the total 
amount available for that fiscal year for allocation under this 
subsection to coastal energy States.
    ``(5) If the allocation to 1 or more coastal energy States under 
paragraph (4) during any fiscal year is greater than the amount that 
would be allocated to those States under this subsection if paragraph 
(4) did not apply, the allocations under this subsection to all other 
coastal energy States shall be--
            ``(A) paid from the amount remaining after the amounts 
        allocated under paragraph (4) are deducted; and
            ``(B) reduced on a pro rata basis by the sum of the 
        allocations under paragraph (4) so that not more than 100 
        percent of the funds available in the Fund for allocation with 
        respect to that fiscal year is allocated.
    ``(d)(1)(A) The Governor of a State seeking to receive funds under 
this section shall prepare, and submit to the Secretary, a secure 
energy reinvestment plan describing planned expenditures of funds 
received under this section.
    ``(B) The Governor shall include in the State plan any plan 
prepared by a coastal political subdivision of the State.
    ``(C) In the development of the State plan, the Governor and the 
coastal political subdivision shall--
            ``(i) solicit local input;
            ``(ii) provide for public participation; and
            ``(iii) in describing the planned expenditures, include 
        only uses of funds described in subsection (e).
    ``(2)(A)(i) The Secretary shall not disburse funds to a State or 
coastal political subdivision under this section before the date on 
which the plan of the State is approved under this subsection.
    ``(ii) The Secretary shall approve a plan submitted by a State 
under paragraph (1) if the Secretary determines that--
            ``(I) each expenditures provided for in the plan is an 
        authorized use under subsection (e); and
            ``(II) the plan contains--
                    ``(aa) the name of the State agency that will have 
                the authority to represent and act for the State in 
                dealing with the Secretary for purposes of this 
                section;
                    ``(bb) goals including improving the environment 
                and addressing the impacts of oil and gas production 
                from the outer Continental Shelf;
                    ``(cc) a description of how the State and coastal 
                political subdivisions of the State will evaluate the 
                effectiveness of the plan;
                    ``(dd) a certification by the Governor that ample 
                opportunity has been accorded for public participation 
                in the development and revision of the plan;
                    ``(ee) measures for taking into account other 
                relevant Federal resources and programs;
                    ``(ff) assurance that the plan is correlated as 
                much as practicable with other State, regional, and 
                local plans;
                    ``(gg) for any State for which the ratio determined 
                under clause (i) or (ii) of subsection (c)(2)(A), 
                expressed as a percentage, exceeds 25 percent, a plan 
                to spend not less than 30 percent of the total funds 
                provided to that State and appropriate coastal 
                political subdivisions under this section during any 
                fiscal year to address the socioeconomic or 
                environmental impacts identified in the plan that 
                remain significant or progressive after implementation 
                of mitigation measures identified in the most current 
                environmental impact statement as of the date of 
                enactment of this section required under the National 
                Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
                seq.) for lease sales under this Act; and
                    ``(hh) a plan to use at least \1/2\ of the funds 
                provided pursuant to subsection (c)(2)(B), and a 
                portion of other funds provided to a State under this 
                section, on programs or projects that are coordinated 
                and conducted by a partnership between the State and a 
                coastal political subdivision.
    ``(B) Not later than 90 days after a plan of a State is submitted 
under this subsection, the Secretary shall approve or disapprove the 
plan.
    ``(3) Any amendment to or revision of a plan approved under this 
section shall be--
            ``(A) prepared and submitted in accordance with the 
        requirements of this paragraph; and
            ``(B) approved or disapproved by the Secretary in 
        accordance with paragraph (2)(B).
    ``(e) A coastal energy State, and a coastal political subdivision, 
shall use any amount paid under this section (including any amounts 
deposited into a trust fund administered by the State or coastal 
political subdivision consistent with this subsection), consistent with 
Federal and State law and the approved plan of the State--
            ``(1) to carry out a project or activity, including an 
        educational activity, for the conservation, protection, or 
        restoration of coastal areas including wetlands;
            ``(2) to mitigate damage to, or protect, fish, wildlife, or 
        natural resources;
            ``(3) to the extent considered reasonable by the Secretary, 
        to carry out planning assistance and pay the administrative 
        costs of complying with this section;
            ``(4) to implement a federally approved plan or program 
        for--
                    ``(A) marine, coastal, subsidence, or conservation 
                management; or
                    ``(B) protection of resources from natural 
                disasters; and
            ``(5) to mitigate the effect of an outer Continental Shelf 
        activity by providing onshore infrastructure or public service.
    ``(f) If the Secretary determines that an expenditure made by a 
coastal energy State or coastal political subdivision is not in 
accordance with the approved plan of the State (including any plan of a 
coastal political subdivision included in the plan of the State), the 
Secretary shall not disburse any additional amount under this section 
to that coastal energy State or coastal political subdivision until--
            ``(1) the amount of the expenditure is repaid to the 
        Secretary; or
            ``(2) the Secretary approves an amendment to the plan that 
        authorizes the expenditure.
    ``(g) The Secretary may require, as a condition of any payment 
under this section, that a State or coastal political subdivision shall 
submit to arbitration--
            ``(1) any dispute between the State or coastal political 
        subdivision and the Secretary regarding implementation of this 
        section; and
            ``(2) any dispute between the State and political 
        subdivision regarding implementation of this section, including 
        any failure to include in the plan submitted by the State under 
        subsection (d) any spending plan of the coastal political 
        subdivision.
    ``(h) The Secretary may use not more than \1/2\ of 1 percent of the 
amount in the Fund during a fiscal year to pay the administrative costs 
of implementing this section.
    ``(i)(1) An amount equal to 2 percent of an amount deposited into 
the Fund during each of fiscal years 2006 through 2015 shall be 
available to the Secretary to provide funding for the Coastal 
Restoration and Enhancement through Science and Technology program.
    ``(2) For purposes of determining the amount appropriated under any 
other provision of law that authorizes appropriations to carry out the 
Coastal Restoration and Enhancement through Science and Technology 
program, any amount made available under paragraph (1) during a fiscal 
year shall be treated as appropriated under that other provision.
    ``(j) Subject to subsection (e), a coastal energy State or coastal 
political subdivision may use funds provided to that State or coastal 
political subdivision under this section for any payment that is 
eligible to be made with funds provided to States under section 35 of 
the Mineral Leasing Act (30 U.S.C. 191).
    ``(k)(1) The Governor of a coastal energy State, in coordination 
with the coastal political subdivisions of that State, shall account 
for all funds received under this section during the previous fiscal 
year in a written report to the Secretary.
    ``(2) The report shall include, in accordance with regulations 
prescribed by the Secretary, a description of all projects and 
activities that received funds under this section.
    ``(3) The report may incorporate by reference any other report 
required to be submitted under another provision of law.
    ``(l) The Secretary shall require, as a condition of any allocation 
of funds provided under this section, that a State or coastal political 
subdivision shall include on any sign installed at a site at or near an 
entrance or public use area for which funds provided under this section 
are used a statement that the existence or development of the site is a 
product of those funds.''.
    (b) Conforming Amendments.--Section 31 of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1356a) is amended--
            (1) by striking subsection (a);
            (2) in subsection (c), by striking ``For fiscal year 2001, 
        $150,000,000 is'' and inserting ``Such sums as may be necessary 
        to carry out this section are'';
            (3) in subsection (d)(1)(B), by striking ``, except'' and 
        all that follows through the end of the sentence and inserting 
        a period;
            (4) by redesignating subsections (b) though (g) as 
        subsections (a) through (f), respectively; and
            (5) by striking ``subsection (f)'' each place it appears 
        and inserting ``subsection (e)''.
    (c) Use of Coastal Restoration and Enhancement Through Science and 
Technology Program.--
            (1) Authorization.--The Secretary of the Interior and the 
        Secretary of Commerce may use the Coastal Restoration and 
        Enhancement through Science and Technology program for the 
        purposes of--
                    (A) assessing the effects of a coastal habitat 
                restoration technique;
                    (B) developing improved ecosystem modeling 
                capabilities to improve predictions of coastal 
                conditions and habitat change;
                    (C) developing a new technology for a restoration 
                activity; and
                    (D) identifying economic options to address 
                socioeconomic consequences of coastal degradation.
            (2) Condition.--The Secretary of the Interior, in 
        consultation with the Secretary of Commerce, shall ensure that 
        the program--
                    (A) establishes procedures designed to avoid 
                duplicative activities among Federal agencies and 
                entities receiving Federal funds;
                    (B) coordinates with any person involved in a 
                similar activity; and
                    (C) establishes a mechanism to collect, organize, 
                and make available information and findings on coastal 
                restoration.
            (3) Report.--Not later than September 30, 2010, the 
        Secretary of the Interior, in consultation with the Secretary 
        of Commerce, shall submit to Congress a report that--
                    (A) describes the effectiveness of any Federal or 
                State restoration effort pursuant to this subsection; 
                and
                    (B) makes recommendations to improve coordinated 
                coastal restoration efforts.
            (4) Funding.--There is authorized to be appropriated to the 
        Secretary to carry out this subsection $10,000,000 for each of 
        fiscal years 2006 through 2015.
                                 <all>