1.
This Act may be cited as the
Domestic Offshore Energy Reinvestment
Act of 2005
.
2.
Domestic offshore energy reinvestment
(a)
The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et
seq.) is amended by adding at the end the following:
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)
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)
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)
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)
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)
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.