[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2784 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 2784

 To greatly enhance the Nation's environmental, energy, economic, and 
national security by terminating long-standing Federal prohibitions on 
 the domestic production of abundant offshore supplies of natural gas, 
     to dedicate fixed percentages of the resultant royalties for 
    environmental restoration projects, renewable energy and carbon 
 sequestration research, and weatherization and energy assistance for 
those in need, and to share a portion of such royalties with producing 
                    States, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 20, 2007

Mr. Peterson of Pennsylvania (for himself, Mr. Abercrombie, Mrs. Drake, 
  Mr. Nunes, Mr. Edwards, and Mr. Melancon) introduced the following 
bill; which was referred to the Committee on Natural Resources, and in 
  addition to the Committees on Rules and Budget, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
 To greatly enhance the Nation's environmental, energy, economic, and 
national security by terminating long-standing Federal prohibitions on 
 the domestic production of abundant offshore supplies of natural gas, 
     to dedicate fixed percentages of the resultant royalties for 
    environmental restoration projects, renewable energy and carbon 
 sequestration research, and weatherization and energy assistance for 
those in need, and to share a portion of such royalties with producing 
                    States, 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 ``National Environment and Energy 
Development Act''.

SEC. 2. TERMINATION OF PROHIBITIONS ON EXPENDITURES FOR, AND 
              WITHDRAWALS FROM, OFFSHORE GAS LEASING.

    (a) Prohibitions on Expenditures.--All provisions of Federal law 
that prohibit the expenditure of appropriated funds to conduct natural 
gas leasing and preleasing activities for any area of the Outer 
Continental Shelf shall have no force or effect with respect to such 
activities.
    (b) Revocation Withdrawals.--All withdrawals of Federal submerged 
lands of the Outer Continental Shelf from leasing, including 
withdrawals by the President under the authority of section 12(a) of 
the Outer Continental Shelf Lands Act (43 U.S.C. 1341(a)), are hereby 
revoked and are no longer in effect with respect to the leasing of 
areas for exploration for, and development and production of, natural 
gas.
    (c) Prohibitions and Withdrawals for Oil Not Affected.--This 
section does not affect--
            (1) any prohibition on the expenditure of appropriated 
        funds to conduct oil leasing or preleasing activities; and
            (2) any withdrawal of Federal submerged lands from leasing 
        for exploration for, and development and production of, oil.

SEC. 3. OUTER CONTINENTAL SHELF NATURAL GAS LEASING PROGRAM.

    The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) is 
amended by inserting after section 9 the following:

``SEC. 10. MORATORIA AREA AND STATE APPROVAL REQUIREMENT WITH RESPECT 
              TO NATURAL GAS LEASING.

    ``(a) Buffer Zone.--The Secretary may not grant any natural gas 
lease for any area of the outer Continental Shelf that is located 
within 25 miles of the coastline of a State.
    ``(b) State Approval Requirement.--
            ``(1) In general.--The Secretary may not issue any lease 
        authorizing exploration for, or development of, natural gas in 
        any area of the outer Continental Shelf that is located within 
        50 miles of the coastline of a State unless the State has 
        enacted a law approving of the issuance of such leases by the 
        Secretary.
            ``(2) State approval permanent.--Repeal of such a law by a 
        State shall have no effect for purposes of paragraph (1).
    ``(c) State Disapproval Authority.--
            ``(1) In general.--The Secretary may not issue any lease 
        authorizing exploration for, or development of, natural gas in 
        any area of the outer Continental Shelf that is located more 
        than 50 miles and less than 100 miles from the coastline of a 
        State if the State has enacted a law disapproving of the 
        issuance of such leases by the Secretary.
            ``(2) Requirements for state law.--A law enacted by a State 
        for purposes of paragraph (1)--
                    ``(A) shall have no force or effect for purposes of 
                paragraph (1) unless first enacted by the State within 
                the one-year period beginning on the date of the 
                enactment of the National Environment and Energy 
                Development Act; and
                    ``(B) shall have no force or effect for purposes of 
                paragraph (1) after the end of the 2-year period 
                beginning on the date it first takes effect, unless the 
                State, in the 2-year period preceding the application 
                of the law for purposes of paragraph (1), enacted 
                legislation extending the effectiveness of the law.''.

SEC. 4. SHARING OF REVENUES.

    (a) In General.--Section 8(g) of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1337(g)) is amended--
            (1) in paragraph (2) by striking ``Notwithstanding'' and 
        inserting ``Except as provided in paragraph (6), and 
        notwithstanding'';
            (2) by redesignating paragraphs (6) and (7) as paragraphs 
        (8) and (9); and
            (3) by inserting after paragraph (5) the following:
            ``(6) Bonus bids and royalties under qualified gas 
        leases.--
                    ``(A) New gas leases.--Of amounts received by the 
                United States as bonus bids and royalties under any 
                qualified gas lease on submerged lands that are located 
                within the seaward boundaries of a State established 
                under section 4(a)(2)(A)--
                            ``(i) 25 percent shall be deposited in the 
                        general fund of the Treasury;
                            ``(ii) 37.5 percent shall be paid to the 
                        States that are producing States with respect 
                        to those submerged lands;
                            ``(iii) 8.0 percent shall be deposited in 
                        the Energy Efficiency and Renewables Reserve 
                        established by paragraph (7);
                            ``(iv) 8.0 percent shall be deposited in 
                        the Carbon Capture and Sequestration Reserve 
                        established by paragraph (7);
                            ``(v) 5.0 percent shall be deposited in the 
                        Chesapeake Bay Restoration Reserve established 
                        by paragraph (7);
                            ``(vi) 5.0 percent shall be deposited in 
                        the Great Lakes Restoration Reserve established 
                        by paragraph (7);
                            ``(vii) 3.0 percent shall be deposited in 
                        the Everglades Restoration Reserve established 
                        by paragraph (7);
                            ``(viii) 3.0 percent shall be deposited in 
                        the Colorado River Basin Restoration Reserve 
                        established by paragraph (7);
                            ``(ix) 3.0 percent shall be deposited in 
                        the San Francisco Bay Restoration Reserve 
                        established by paragraph (7); and
                            ``(x) 2.5 percent shall be available, half 
                        to the Secretary of Health and Human Services 
                        for carrying out the Low-Income Home Energy 
                        Assistance Act of 1981 (42 U.S.C. 8621, et 
                        seq.) and half to the Secretary of Energy for 
                        carrying out the Weatherization Assistance 
                        program under part A of title IV of the Energy 
                        Conservation and Production Act (42 U.S.C. 6861 
                        et seq.).
                    ``(B) Leased tract that lies partially within the 
                seaward boundaries of a state.--In the case of a leased 
                tract that lies partially within the seaward boundaries 
                of a State, the amounts of bonus bids and royalties 
                from such tract that are subject to subparagraph (A) 
                with respect to such State shall be a percentage of the 
                total amounts of bonus bids and royalties from such 
                tract that is equivalent to the total percentage of 
                surface acreage of the tract that lies within such 
                seaward boundaries.
                    ``(C) Use of payments to states.--Amounts paid to a 
                State under subparagraph (A)(ii) shall be used by the 
                State for one or more of the following:
                            ``(i) Education.
                            ``(ii) Transportation.
                            ``(iii) Reducing taxes.
                            ``(iv) Coastal and environmental 
                        restoration.
                            ``(v) Energy infrastructure and projects.
                            ``(vi) State seismic monitoring programs.
                            ``(vii) Alternative energy development.
                            ``(viii) Energy efficiency and 
                        conservation.
                            ``(ix) Hurricane and natural disaster 
                        insurance programs.
                            ``(x) Any other purpose determined by State 
                        law.
                    ``(D) Definitions.--In this paragraph:
                            ``(i) Adjacent state.--The term `adjacent 
                        State' means, with respect to any program, 
                        plan, lease sale, leased tract or other 
                        activity, proposed, conducted, or approved 
                        pursuant to the provisions of this Act, any 
                        State the laws of which are declared, pursuant 
                        to section 4(a)(2), to be the law of the United 
                        States for the portion of the outer Continental 
                        Shelf on which such program, plan, lease sale, 
                        leased tract, or activity appertains or is, or 
                        is proposed to be, conducted.
                            ``(ii) Adjacent zone.--The term `adjacent 
                        zone' means, with respect to any program, plan, 
                        lease sale, leased tract, or other activity, 
                        proposed, conducted, or approved pursuant to 
                        the provisions of this Act, the portion of the 
                        outer Continental Shelf for which the laws of a 
                        particular adjacent State are declared, 
                        pursuant to section 4(a)(2), to be the law of 
                        the United States.
                            ``(iii) Producing state.--The term 
                        `producing State' means an Adjacent State 
                        having an adjacent zone containing leased 
                        tracts from which are derived bonus bids and 
                        royalties under a lease under this Act.
                            ``(iv) State.--The term `State' includes 
                        Puerto Rico and the other Territories of the 
                        United States.
                            ``(v) Qualified gas lease.--The term 
                        `qualified gas lease' means a lease under this 
                        Act granted after the date of the enactment of 
                        the National Environment and Energy Development 
                        Act that authorizes development and production 
                        of natural gas and associated condensate.
                    ``(E) Application.--This paragraph shall apply to 
                bonus bids and royalties received by the United States 
                after September 30, 2007.
            ``(7) Establishment of reserve accounts.--
                    ``(A) In general.--For budgetary purposes, there is 
                established as a separate account to receive deposits 
                under paragraph (6)(A)--
                            ``(i) the Energy Efficiency and Renewables 
                        Reserve to offset the cost of legislation 
                        enacted after the date of the enactment of the 
                        National Environment and Energy Development Act 
                        to accelerate the use of clean domestic 
                        renewable energy resources and alternative 
                        fuels; to promote the utilization of energy-
                        efficient products and practices and 
                        conservation; and to increase research, 
                        development, and deployment of clean renewable 
                        energy and efficiency technologies.
                            ``(ii) the Carbon Capture and Sequestration 
                        Reserve to offset the cost of legislation 
                        enacted after the date of the enactment of the 
                        National Environment and Energy Development Act 
                        to promote activities associated with carbon 
                        capture and sequestration;
                            ``(iii) the Chesapeake Bay Restoration 
                        Reserve to offset the cost of legislation 
                        enacted after the date of the enactment of the 
                        National Environment and Energy Development Act 
                        to conduct restoration activities primarily or 
                        entirely within the Chesapeake Bay watershed 
                        that seeks to improve the overall health of the 
                        ecosystem of the Chesapeake Bay;
                            ``(iv) the Great Lakes Restoration Reserve 
                        to offset the cost of legislation enacted after 
                        the date of the enactment of the National 
                        Environment and Energy Development Act to 
                        conduct restoration activities primarily or 
                        entirely within the the Great Lakes watershed 
                        that seeks to improve the overall health of the 
                        ecosystem of the Great Lakes;
                            ``(v) the Everglades Restoration Reserve to 
                        offset the cost of legislation enacted after 
                        the date of the enactment of the National 
                        Environment and Energy Development Act to 
                        conduct restoration activities primarily or 
                        entirely within the Florida Everglades 
                        watershed that seeks to improve the overall 
                        health of the ecosystem of the Everglades;
                            ``(vi) the Colorado River Basin Restoration 
                        Reserve to offset the cost of legislation 
                        enacted after the date of the enactment of the 
                        National Environment and Energy Development Act 
                        to conduct restoration activities primarily or 
                        entirely within the the Colorado River Basin 
                        watershed that seeks to improve the overall 
                        health of the ecosystem of the Colorado River 
                        Basin; and
                            ``(vii) the San Francisco Bay Restoration 
                        Reserve to offset the cost of legislation 
                        enacted after the date of the enactment of the 
                        National Environment and Energy Development Act 
                        to conduct restoration activities primarily or 
                        entirely within the San Francisco Bay, 
                        California, watershed that seeks to improve the 
                        overall health of the ecosystem of San 
                        Francisco Bay.
                    ``(B) Procedure for adjustments.--
                            ``(i) Budget committee chairman.--After the 
                        reporting of a bill or joint resolution, or the 
                        offering of an amendment thereto or the 
                        submission of a conference report thereon, 
                        providing funding for the purposes set forth in 
                        clause (i), (ii), (iii), (iv), (v), (vi), or 
                        (vii) of subparagraph (A) in excess of the 
                        amount of the deposits under paragraph (6)(A) 
                        for those purposes for fiscal year 2007, the 
                        chairman of the Committee on the Budget of the 
                        applicable House of Congress shall make the 
                        adjustments set forth in clause (ii) for the 
                        amount of new budget authority and outlays in 
                        that measure and the outlays flowing from that 
                        budget authority.
                            ``(ii) Matters to be adjusted.--The 
                        adjustments referred to in clause (i) are to be 
                        made to--
                                    ``(I) the discretionary spending 
                                limits, if any, set forth in the 
                                appropriate concurrent resolution on 
                                the budget;
                                    ``(II) the allocations made 
                                pursuant to the appropriate concurrent 
                                resolution on the budget pursuant to 
                                section 302(a) of the Congressional 
                                Budget Act of 1974; and
                                    ``(III) the budget aggregates 
                                contained in the appropriate concurrent 
                                resolution on the budget as required by 
                                section 301(a) of the Congressional 
                                Budget Act of 1974.
                            ``(iii) Amounts of adjustments.--The 
                        adjustments referred to in clauses (i) and (ii) 
                        shall not exceed the receipts estimated by the 
                        Congressional Budget Office that are 
                        attributable to this Act for the fiscal year in 
                        which the adjustments are made.
                    ``(C) Expenditures only by secretary of the 
                interior in consultation.--Legislation shall not be 
                treated as legislation referred to in subparagraph (A) 
                unless any expenditure under such legislation for a 
                purpose referred to in that subparagraph may be made 
                only by the Secretary of the Interior after 
                consultation with the Administrator of the 
                Environmental Protection Agency, the Administrator of 
                the National Oceanic and Atmospheric Administration, 
                the Secretary of the Army acting through the Corps of 
                Engineers, and, as appropriate, the Secretary of State.
            ``(8) Maintenance of effort by states.--The Secretary of 
        the Interior, the Secretary of Health and Human Services, and 
        the Secretary of Energy shall ensure that financial assistance 
        provided to a State for any purpose with amounts made available 
        under this subsection or in any legislation with respect to 
        which paragraph (7) applies supplement, and do not replace, the 
        amounts expended by the State for that purpose before the date 
        of the enactment of the National Environment and Energy 
        Development Act.''.
    (b) Establishment of State Seaward Boundaries.--Section 4(a)(2)(A) 
of the Outer Continental Shelf Lands Act (43 U.S.C. 1333(a)(2)(A)) is 
amended in the first sentence by striking ``, and the President'' and 
all that follows through the end of the sentence and inserting the 
following: ``. Such extended lines are deemed to be as indicated on the 
maps for each Outer Continental Shelf region entitled `Alaska OCS 
Region State Adjacent Zone and OCS Planning Areas', `Pacific OCS Region 
State Adjacent Zones and OCS Planning Areas', `Gulf of Mexico OCS 
Region State Adjacent Zones and OCS Planning Areas', and `Atlantic OCS 
Region State Adjacent Zones and OCS Planning Areas', all of which are 
dated September 2005 and on file in the Office of the Director, 
Minerals Management Service. The preceding sentence shall not apply 
with respect to the treatment under section 105 of the Gulf of Mexico 
Energy Security Act of 2006 (title I of division C of Public Law 109-
432) of qualified outer Continental Shelf revenues deposited and 
disbursed under subsection (a)(2) of that section.''.

SEC. 5. NATURAL GAS LEASING.

    Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337) 
is further amended by adding at the end the following subsection:
    ``(r) Natural Gas Leasing.--
            ``(1) In general.--The Secretary may issue leases under 
        this section that authorize development and production of 
        natural gas and associated condensate in accordance with 
        regulations promulgated under paragraph (2).
            ``(2) Regulations.--Before issuing any lease under 
        paragraph (1), the Secretary must promulgate regulations that--
                    ``(A) define what constitutes natural gas, 
                condensate, and oil;
                    ``(B) establish the lessee's rights and obligations 
                regarding condensate produced in association with 
                natural gas;
                    ``(C) prescribe procedures and requirements that 
                the lessee of a lease issued under this subsection must 
                follow if the lessee discovers oil deposits in the 
                course of exploration or development; and
                    ``(D) establish such other requirements for natural 
                gas leases as the Secretary considers appropriate.
            ``(3) Application of other laws.--All provisions of this 
        Act or any other Federal law or regulations that apply to oil 
        and natural gas leases for the Outer Continental Shelf shall 
        apply to natural gas-only leases authorized under this 
        subsection.
            ``(4) Existing leases.--At the request of the lessee of an 
        oil and gas lease in effect under this section on the date of 
        enactment of this subsection, and under the requirements 
        prescribed in regulations promulgated under paragraph (2), the 
        Secretary may restrict development under such a lease to 
        natural gas and associated condensate.
            ``(5) Oil and gas leasing programs.--The Secretary may 
        include provisions regarding issuance of natural gas leases in 
        the outer Continental shelf leasing program that applies for 
        the 5-year period beginning in 2007, notwithstanding any draft 
        proposal for such program issued before the date of the 
        enactment of this subsection.
            ``(6) Prohibitions and withdrawals for oil not affected.--
        This subsection does not affect--
                    ``(A) any prohibition on the expenditure of 
                appropriated funds to conduct oil leasing or preleasing 
                activities; and
                    ``(B) any withdrawal of Federal submerged lands 
                from leasing for exploration for, and development and 
                production of, oil.''.

SEC. 6. POLICIES REGARDING BUYING AND BUILDING AMERICAN.

    (a) Intent of Congress.--It is the intent of the Congress that this 
Act, among other things, result in a healthy and growing American 
industrial, manufacturing, transportation, and service sector employing 
the vast talents of America's workforce to assist in the development of 
affordable energy from the Outer Continental Shelf. Moreover, the 
Congress intends to monitor the deployment of personnel and material in 
the Outer Continental Shelf to encourage the development of American 
technology and manufacturing to enable United States workers to benefit 
from this Act by good jobs and careers, as well as the establishment of 
important industrial facilities to support expanded access to American 
resources.
    (b) Safeguard for Extraordinary Ability.--Section 30(a) of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1356(a)) is amended in the 
matter preceding paragraph (1) by striking ``regulations which'' and 
inserting ``regulations that shall be supplemental and complimentary 
with and under no circumstances a substitution for the provisions of 
the Constitution and laws of the United States extended to the subsoil 
and seabed of the outer Continental Shelf pursuant to section 4 of this 
Act, except insofar as such laws would otherwise apply to individuals 
who have extraordinary ability in the sciences, arts, education, or 
business, which has been demonstrated by sustained national or 
international acclaim, and that''.
                                 <all>