[Congressional Record Volume 144, Number 140 (Thursday, October 8, 1998)]
[Senate]
[Pages S12027-S12032]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    REINVESTMENT AND ENVIRONMENTAL RESTORATION ACT OF 1998--S. 2566

  The text of the bill (S. 2566), introduced on October 7, 1998, is as 
follows:
       Be it enacted by the Senate and House of Representatives of 
     the Untied States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Reinvestment and 
     Environmental Restoration Act of 1998.''

                   TITLE I--COASTAL IMPACT ASSISTANCE

     SECTION 101. SHORT TITLE.

       This title may be cited as the ``Coastal Conservation and 
     Impact Assistance Act of 1998''.

     SEC. 102. AMENDMENT TO OUTER CONTINENTAL SHELF LANDS ACT.

       The Outer Continental Shelf Lands Act Amendments of 1978 
     (92 Stat. 629), as amended, is amended to add at the end 
     thereof a new Title VII as follows:

     ``SEC. 701. FINDINGS.

       ``The Congress finds and declares that--
       ``(1) The Nation owns valuable mineral resources that are 
     located both onshore and in the Federal Outer Continental 
     Shelf, and the Federal Government develops these resources 
     for the benefit of the Nation, under certain restrictions 
     designed to prevent environmental damage and other adverse 
     impacts.
       ``(2) Nonetheless, the development of these mineral 
     resources of the Nation is accompanied by unavoidable 
     environmental impacts and public service impacts in the 
     States that host this development, whether the development 
     occurs onshore or on the Federal Outer Continental Shelf.
       ``(3) The Federal Government has a responsibility to the 
     States affected by development of Federal mineral resources 
     to mitigate adverse environmental and public service impacts 
     incurred due to that development.
       ``(4) The Federal Government discharges its responsibility 
     to States where onshore Federal mineral development occurs by 
     sharing 50 percent of the revenue derived from the Federal 
     mineral development in that State pursuant to section 35 of 
     the Mineral Leasing Act.
       ``(5) Federal mineral development is occurring as far as 
     200 miles offshore and occurs off the coast of only 6 States, 
     yet section 8(g) of the Outer Continental Shelf Lands Act 
     does not adequately compensate these States for the onshore 
     impacts of the offshore Federal mineral development.
       ``(6) Federal Outer Continental Shelf mineral development 
     is an important and secure source of our Nation's supply of 
     oil and natural gas.
       ``(7) Further technological advancements in oil and natural 
     gas exploration and production need to be pursued and 
     encouraged.
       ``(8) These technological achievements have and will 
     continue to result in new Outer Continental Shelf production 
     having an unparalleled record of excellence on environmental 
     safety issues.
       ``(9) Additional technological advances with appropriate 
     incentives will further improve new resource recovery and 
     therefore increase revenues to the Treasury for the benefit 
     of all Americans who enjoy programs funded by Outer 
     Continental Shelf moneys.
       ``(10) The Outer Continental Shelf Advisory Committee of 
     the Department of the Interior, consisting of representatives 
     of coastal States, recommended in October 1997 that Federal 
     mineral revenue derived from the entire Outer Continental 
     Shelf be shared with all coastal States and territories to 
     mitigate onshore impacts from Federal offshore mineral 
     development and for other environmental mitigation; and
       ``(11) The Nation's Federal mineral resources are a 
     nonrenewable, capital asset of the Nation, with the 
     production and sale of this resource producing revenue for 
     the Nation, a portion of the revenue derived from the 
     production and sale of Federal mineral resources should be 
     reinvested in the Nation through environmental mitigation and 
     public service improvements.

     ``SEC. 702. DEFINITIONS.

       ``For purposes of this Act:
       ``(1) The term `allocable share' means, for a coastal 
     State, that portion of revenue that is available to be 
     distributed to that coastal State under this title. For an 
     eligible political subdivision of a coastal State, such term 
     means that portion of revenue that is available to be 
     distributed to that political subdivision under this title.
       ``(2) The term `coastal State' means the population of 
     political subdivisions, as determined by the most recent 
     official data of the

[[Page S12028]]

     Census Bureau, contained in whole or in part within the 
     designated coastal boundary of a State as defined in a 
     State's coastal zone management program under the Coastal 
     Zone Management Act (16 U.S.C. Sec. 1455).
       ``(3) The term `coastline' has the same meaning that is has 
     in the Submerged Lands Act (43 U.S.C. Sec. 1301 et seq.).
       ``(4) The term `eligible political subdivision' means a 
     coastal political subdivision of a coastal State which 
     political subdivision has a seaward boundary that lies within 
     a distance of 200 miles from the geographic center of any 
     leased tract. The Secretary shall annually provide a list of 
     all eligible political subdivisions of each coastal State to 
     the Governor of such State.
       ``(5) The term `political subdivision' means the local 
     political jurisdiction immediately below the level of State 
     government, including counties, parishes, and boroughs. If 
     State law recognizes an entity of general government that 
     functions in lieu of, and is not within, a county, parish, or 
     borough, the Secretary may recognize an area under the 
     jurisdiction of such other entities of general government as 
     a political subdivision for purposes of this Act.
       ``(6) The term `coastal State' means any State of the 
     United States bordering on the Atlantic Ocean, the Pacific 
     Ocean, the Arctic Ocean, the Bering Sea, the Gulf of Mexico, 
     or any of the Great Lakes, Puerto Rico, Guam, American Samoa, 
     the Virgin Islands, and the Commonwealth of the Northern 
     Mariana Islands.
       ``(7) The term `distance' means minimum great circle 
     distance, measured in statute miles.
       ``(8) The term `fiscal year' means the Federal Government's 
     accounting period which begins on October 1st and ends on 
     September 30th, and is designated by the calendar year in 
     which it ends.
       ``(9) The term `Governor' means the highest elected 
     official of a coastal State.
       ``(10) The term `leased tract' means a tract, leased under 
     section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 
     Sec. 1337) for the purpose of drilling for, developing and 
     producing oil and natural gas resources, which is a unit 
     consisting of either a block, a portion of a block, a 
     combination of blocks and/or portions of blocks, as specified 
     in the lease, and as depicted on an Outer Continental Shelf 
     Official Protraction Diagram.
       ``(11) The term `revenues' means all moneys received by the 
     United States as 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 pursuant to the Outer 
     Continental Shelf Lands Act.
       ``(12) The term `Outer Continental Shelf' means all 
     submerged lands lying seaward and outside of the area of 
     `lands beneath navigable waters' as defined in section 2(a) 
     of the Submerged Lands Act (43 U.S.C. Sec. 1301(a)), and of 
     which the subsoil and seabed appertain to the United States 
     and are subject to its jurisdiction and control.
       ``(13) The term `Secretary' means the Secretary of the 
     Interior or the Secretary's designee.

     ``SEC. 702. IMPACT ASSISTANCE FORMULA AND PAYMENTS.

       ``(a) Establishment of Fund.--(1) There is established in 
     the Treasury of the United States a fund which shall be known 
     as the `Outer Continental Shelf Impact Assistance Fund' 
     (referred to in this Act as `the Fund'). The Secretary shall 
     deposit in the Fund 27 percent of the revenues from each 
     leased tract or portion of a leased tract lying seaward of 
     the zone defined and governed by section 8(g) of the Outer 
     Continental Shelf Lands Act (43 U.S.C. Sec. 1337(g)), or 
     lying within such zone but to which section 8(g) does not 
     apply, the geographic center of which lies within a distance 
     of 200 miles from any part of the coastline of any coastal 
     State.
       ``(2) The Secretary of the Treasury shall invest moneys in 
     the Fund that are excess to expenditures at the written 
     request of the Secretary, in public debt securities with 
     maturities suitable to the needs of the Fund, as determined 
     by the Secretary, and 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) Payment to States.--Notwithstanding section 9 of the 
     Outer Continental Shelf Lands Act (43 U.S.C. Sec. 1338), the 
     Secretary shall, without further appropriation, make payments 
     in each fiscal year to coastal States and to eligible 
     political subdivisions equal to the amount deposited in the 
     Fund for the prior fiscal year, together with the portion of 
     interest earned from investment of the funds which 
     corresponds to that amount (reduced by any refunds paid 
     under section 705(c)). Such payments shall be allocated 
     among the coastal States and eligible political 
     subdivisions as provided in this section.
       ``(c) Determination of States' Allocable Shares.--
       ``(1) Allocable share for each state.--For each coastal 
     State, the Secretary shall determine the State's allocable 
     share of the total amount of the revenues deposited in the 
     Fund for each fiscal year using the following weighted 
     formula:
       ``(A) 25 percent of the State's allocable share shall be 
     based on the ratio of such State's shoreline miles to the 
     shoreline miles of all coastal States.
       ``(B) 25 percent of the State's allocable share shall be 
     based on the ratio of such State's coastal population to the 
     coastal population of all coastal States.
       ``(C) 50 percent of the State's allocable share shall be 
     computed based upon Outer Continental Shelf production. If 
     any portion of a coastal State lies within a distance of 200 
     miles from the geographic center of any leased tract, such 
     State shall receive 50 percent of its allocable share based 
     on the Outer Continental Shelf oil and gas production 
     offshore of such State. Such part of its allocable share 
     shall be inversely proportional to the distance between the 
     nearest point on the coastline of such State and the 
     geographic center of each leased tract or portion of the 
     leased tract (to the nearest whole mile), as determined by 
     the Secretary.
       ``(2) Minimum state share.--
       ``(A) In general.--The allocable share of revenues 
     determined by the Secretary under this subsection for each 
     coastal State with an approved coastal management program (as 
     defined by the Coastal zone Management Act (16 U.S.C. 
     Sec. 1451) or which is making satisfactory progress toward 
     one shall not be less than 0.50 percent of the total amount 
     of the revenues deposited in the Fund for each fiscal year. 
     For any other coastal State the allocable share of such 
     revenues shall not be less than 0.25 percent of such 
     revenues.
       ``(B) Recomputation.--Where one or more coastal States' 
     allocable shares, as compared under paragraph (1), are 
     increased by any amount under this paragraph, the allocable 
     share for all other coastal States shall be recomputed and 
     reduced by the same amount so that not more than 100 percent 
     of the amount deposited in the fund is allocated to all 
     coastal States. The reduction shall be divided pro rata among 
     such other coastal States.
       ``(d) Payments to States and Political Subdivisions.--Each 
     coastal State's allocable share shall be divided between the 
     State and political subdivision in that State as follows:
       ``(1) 40 percent of each State's allocable share, as 
     determined under subsection (c), shall be paid to the State;
       ``(2) 40 percent of each State's allocable share, as 
     determined under subsection (c), shall be paid to the 
     eligible political subdivisions in such State, with the funds 
     to be allocated among the eligible political subdivisions 
     using the following weighted formula:
       ``(A) 50 percent of an eligible political subdivision's 
     allocable share shall be based on the ratio of that eligible 
     political subdivision's acreage within the State's coastal 
     zone, as defined in an approved State coastal management 
     program (as defined by the Coastal Zone Management Act (16 
     U.S.C. Sec. 1451)), to the entire acreage within the coastal 
     zone in such State: Provided, however, That if the State in 
     which the eligible subdivision is located does not have an 
     approved coastal management program, then the allocable share 
     shall be based on the ratio of that eligible political 
     subdivision's shoreline miles to the total shoreline miles in 
     that coastal State.
       ``(B) 25 percent of an eligible political subdivision's 
     allocable share shall be based on the ratio of such eligible 
     political subdivision's coastal population to the coastal 
     population of all eligible political subdivisions in that 
     State.
       ``(C) 25 percent of an eligible political subdivision's 
     allocable share shall be based on ratios that are inversely 
     proportional to the distance between the nearest point on the 
     seaward boundary of each such eligible political subdivision 
     and the geographic center of each leased tract or portion of 
     the leased tract (to the nearest whole mile), as determined 
     by the Secretary.
       ``(3) 20 percent of each State's allocable share, as 
     determined under subsection (c), shall be allocated to 
     political subdivisions in the coastal State that do not 
     qualify as eligible political subdivisions but which are 
     determined by the Governor or the Secretary to have impacts 
     from Outer Continental Shelf related activities and which 
     have an approved plan under this subsection.
       ``(4) Project Submission.--Prior to the receipt of funds 
     pursuant to this subsection for any fiscal year, a political 
     subdivision must submit to the Governor of the State in which 
     it is located a plan setting forth the projects and 
     activities for which the political subdivision proposes to 
     expend such funds. Such plan shall state the amounts 
     proposed to be expended for each project or activity 
     during the upcoming fiscal year.
       ``(5) Project approval.--(A) Prior to the payment of funds 
     pursuant to this subsection to any political subdivision for 
     any fiscal year, the Governor must approve the plan submitted 
     by the political subdivision pursuant to this subsection and 
     notify the Secretary of such approval. State approval of any 
     such plan shall be consistent with all applicable State and 
     Federal law. In the event the Governor disapproves any such 
     plan, the funds that would otherwise be paid to the political 
     subdivision shall be placed in escrow by the Secretary 
     pending modification and approval of such plan, at which time 
     such funds together with interest thereon shall be paid to 
     the political subdivision.
       ``(B) A political subdivision that fails to receive 
     approval from the Governor for a plan may appeal to the 
     Secretary and the Secretary may approve or disapprove such 
     plan based on the criteria set forth in section 704: 
     Provided, however, That the Secretary shall have no authority 
     to consider an appeal of a political subdivision if the 
     Governor of the State has certified in writing to the 
     Secretary that the State has adopted a State program that by 
     its express terms addresses

[[Page S12029]]

     the allocation of revenues to political subdivisions.
       ``(e) Time of Payment.--(1) Payments to coastal States and 
     political subdivisions under this section shall be made not 
     later than December 31 of each year from revenues received 
     and interest earned thereon during the immediately preceding 
     fiscal year. Payment shall not commence before the date 12 
     months following the date of enactment of this Act.
       ``(2) Any amount in the Fund not paid to coastal States and 
     political subdivisions under this section in any fiscal year 
     shall be disposed of according to the law otherwise 
     applicable to revenues from leases on the Outer Continental 
     Shelf.

     ``SEC. 704. USES OF FUNDS.

       ``Funds received pursuant to this Act shall be used by the 
     coastal States and political subdivisions for projects and 
     activities, including but not limited to the following:
       ``(a) air quality, water quality, fish and wildlife, 
     wetlands, or other coastal resources, including shoreline 
     protection and coastal restoration;
       ``(b) other activities of such State or political 
     subdivision, authorized by the Coastal Zone Management Act of 
     1972 (16 U.S.C. Sec. 1451 et seq.), the provisions of 
     subtitle B of title IV of the Oil Pollution Act of 1990 (104 
     Stat. 523), or the Federal Water Pollution Control Act (33 
     U.S.C. Sec. 1251 et seq.);
       ``(c) administrative costs of complying with the provisions 
     of this subtitle;
       ``(d) uses related to the Outer Continental Shelf Lands 
     Act; and
       ``(e) mitigating impacts of Outer Continental Shelf 
     activities, including onshore infrastructure and public 
     service needs.

     ``SEC. 705. CERTIFICATION; ANNUAL REPORT; REFUNDS.

       ``(a) Certification.--Not later than 60 days after the end 
     of the fiscal year, any political subdivision receiving 
     moneys from the Fund must certify to the Governor--
       ``(1) the amount of such funds expended by the political 
     subdivision during the previous fiscal year;
       ``(2) the amounts expended on each project or activity;
       ``(3) a general description of how the funds were expended; 
     and
       ``(4) the status of each project or activity.
       ``(b) Report.--On June 15 of each year, the Governor of 
     each State receiving moneys from the Fund shall account for 
     all moneys so received for the previous fiscal year in a 
     written report to the Secretary and the Congress. This report 
     shall include a description of all projects and activities 
     receiving funds under this Act, including all information 
     required under subsection (a).
       ``(c) Refunds.--In those instances where through judicial 
     decision, administrative review, arbitration, or other means 
     there are royalty refunds owed to entities generating 
     revenues under this Act, 27 percent of such refunds shall be 
     paid from amounts available in the Fund.''

     SEC. 103. AMENDMENT TO SECTION 8 OF THE OUTER CONTINENTAL 
                   SHELF LANDS ACT.

       The first sentence of section 8(g)(2) of the Outer 
     Continental Shelf Lands Act (43 U.S.C. Sec. 1337(g)(2)) is 
     amended by inserting after ``three nautical miles'' each 
     place it appears the following: ``(or in the case of Alabama, 
     nine nautical miles)''.

           TITLE II--LAND AND WATER CONSERVATION FUND REFORM

     SECTION. 201. SHORT TITLE.

       This title may be cited as the ``Land and Water 
     Conservation Fund Reform Act of 1998''.

     SEC. 202. FINDINGS AND PURPOSE.

       (a) Findings.--The Congress finds the following:
       (1) The Land and Water Conservation Fund Act of 1965 
     embodied a visionary concept--that a portion of the proceeds 
     from Outer Continental Shelf mineral leasing revenues and the 
     depletion of a nonrenewable natural resource should result in 
     a legacy of public places accessible for public recreation 
     and benefit from resources belonging to all people, of 
     all generations, and the enhancement of the most precious 
     and most renewable natural resource of any nation, healthy 
     and active citizens.
       (2) The States and local governments were to occupy a 
     pivotal role in accomplishing the purposes of the Land and 
     Water Conservation Fund Act of 1965 and the Act originally 
     provided an equitable portion of funds to the States, and 
     through them, to local governments.
       (3) However, because of competition for limited Federal 
     moneys and the need for an annual appropriation, this 
     original intention has been abandoned and, in recent years, 
     the States have not received an equitable proportion of 
     funds.
       (4) Nonetheless, with population growth and urban sprawl, 
     the demand for recreation and conservation areas, at the 
     State and local level, including urban localities, remains a 
     high priority for our citizens.
       (5) In addition to the demand at the State and local level, 
     there has been an increasing unmet need for Federal moneys to 
     be made available for Federal purposes, with lands identified 
     as important for Federal acquisition not being acquired for 
     several years due to insufficient funds.
       (6) A new vision is called for--a vision that encompasses a 
     multilevel national network of parks, recreation and 
     conservation areas that reaches across the country to touch 
     all communities. National parks are not enough; the federal 
     government alone cannot accomplish this. A national vision, 
     backed by realistic national funding support, to stimulate 
     State, local and private sector, as well as Federal efforts, 
     is the only way to effectively address our ongoing outdoor 
     recreation and conservation needs.
       (b) Purpose.--The purpose of this title is to provide a 
     secure source of funds available for Federal purposes 
     authorized by the Land and Water Conservation Fund Act of 
     1965 and to revitalize and complement State, local and 
     private commitments envisioned in the Land and Water 
     Conservation Fund Act of 1965 and the Urban Park and 
     Recreation Recovery Act of 1978 by providing grants for 
     State, local and urban recreation and conservation needs.

     SEC. 203. LAND AND WATER CONSERVATION FUND AMENDMENTS.

       (a) Revenues.--Section 2(c)(1) of the Land and Water 
     Conservation Fund Act of 1965 (16 U.S.C. Sec. 460l-5(c)(1)) 
     is amended as follows:
       (1) By inserting ``(A)'' after ``(c)(1)''.
       (2) By striking ``there are authorized'' and all that 
     follows and inserting ``from 16 percent of the revenues, as 
     that term is defined in the Reinvestment and Environmental 
     Restoration Act of 1998, shall be deposited in the Land and 
     Water Conservation Fund in the Treasury and shall be 
     available, without further appropriation, to carry out this 
     Act for each fiscal year thereafter through September 30, 
     2015.''
       (3) By adding at the end the following new subparagraph:
       ``(B) In those instances where through judicial decision, 
     administrative review, arbitration, or other means there are 
     royalty refunds owed to entities generating revenues 
     available for purposes of this Act, 16 percent of such 
     refunds shall be paid from amounts available under this 
     subsection.''.
       (b) Authorization.--Section 2(c)(2) of the Land and Water 
     Conservation Fund Act of 1965 (16 U.S.C. Sec. 460l-5(c)(2)) 
     is amended by striking ``equivalent amounts provided in 
     clause (1)'' and inserting ``$900,000,000''.
       (c) Appropriation.--Section 3 of the Land and Water 
     Conservation Fund Act of 1965 (16 U.S.C. Sec. 460l-6) is 
     amended by striking ``Moneys'' and inserting ``Except as 
     provided under section 460l-5(c)(1), moneys''.
       (d) Allocation of Funds.--Section 5 of the Land and Water 
     Conservation Fund Act of 1965 (16 U.S.C. Sec. 460l-7) is 
     amended as follows:
       (1) by inserting ``(a)'' at the beginning;
       (2) by striking ``Those appropriations from the fund'' and 
     all that follows; and
       (3) by adding at the end the following new subsection:
       ``(b) Moneys credited to the fund under section 2(c)(1) of 
     this Act (16 U.S.C. Sec. 460l-5(c)(1)) for obligation or 
     expenditure may be obligated or expended only as follows--
       ``(1) 45 percent shall be available for Federal purposes. 
     Notwithstanding section 7 of this Act (16 U.S.C. Sec. 460l-
     9), 25 percent of such moneys shall be made available to the 
     Secretary of Agriculture for the acquisition of lands, 
     waters, or interests, in land or water within the exterior 
     boundaries of areas of the National Forest System or any 
     other land management unit established by an Act of Congress 
     and managed by the Secretary of Agriculture and 75 percent of 
     such moneys shall be available to the Secretary of the 
     Interior for the acquisition of lands, waters, or interests 
     in land or water within the exterior boundaries of areas of 
     the National Park System, National Wildlife Refuge System, or 
     other land management unit established by an Act of Congress: 
     Provided, That at least two-thirds of the moneys available 
     under this paragraph for Federal purposes shall be spent east 
     of the 100th meridian.
       ``(2) 45 percent shall be available for financial 
     assistance to the States under section 6 of this Act (16 
     U.S.C. Sec. 460l-8) distributed according to the following 
     allocation formula;
       ``(A) 60 percent shall be apportioned equally among the 
     several States;
       ``(B) 20 percent shall be apportioned on the basis of the 
     ratio which the population of each State bears to the total 
     population of the United States;
       ``(C) 20 percent shall be apportioned on the basis of the 
     urban population in each State (as defined by Metropolitan 
     Statistical Areas).
       ``(3) 10 percent shall be available to local governments 
     through the Urban Parks and Recreation Recovery Program (16 
     U.S.C. Sec. Sec. 2501-2514) of the Department of the 
     Interior.

     So much, not to exceed 2 percent, of the total of such moneys 
     credited to the fund under section 2(c)(1) of this Act (16 
     U.S.C. Sec. 460l-5(c)) in each fiscal year as the Secretary 
     of the Interior may estimate to be necessary for expenses in 
     the administration and execution of this subsection shall be 
     deducted for that purpose, and such sum is authorized to be 
     made available therefor until the expiration of the next 
     succeeding fiscal year, and within 60 days after the close of 
     such fiscal year the Secretary shall apportion such part 
     thereof as remains unexpended, if any, on the same basis and 
     in the same manner as is provided under paragraphs (1), (2) 
     and (3).''.
       (e) Tribes and Alaska Native Village Corporations.--
     Subsection 6(b)(5) of the Land and Water Conservation Fund 
     Act of 1965 (16 U.S.C. Sec. 460l-8(b)(5)) is amended as 
     follows:
       (1) By inserting ``(A)'' after ``(5)''.
       (2) By adding at the end the following new subparagraph:
       ``(B) For the purposes of paragraph (1), all federally 
     recognized Indian tribes and Alaska Native Village 
     Corporations (as defined in section 3(j) of the Alaska Native 
     Claims Settlement Act (43 U.S.C. 1602(j)) shall be treated 
     collectively as 1 State, and shall receive

[[Page S12030]]

     shares of the apportionment under paragraph (1) in accordance 
     with a competitive grant program established by the Secretary 
     by rule. Such rule shall ensure that in each fiscal year no 
     single tribe or Village Corporation receives more than 10 
     percent of the total amount made available to all tribes and 
     Village Corporations pursuant to the apportionment under 
     paragraph (1). Funds received by an Indian tribe or Village 
     Corporation under this subparagraph may be expended only for 
     the purposes specified in paragraphs (1) and (3) of 
     subsection (b).''
       (f) Local Allocation.--Subsection 6(b) of the Land and 
     Water Conservation Fund Act of 1965 (16 U.S.C. Sec. 460l-
     8(b)(5)) is amended by adding at the end the following new 
     paragraph:
       ``(6) Absent some compelling and annually documented reason 
     to the contrary acceptable to the Secretary, each State 
     (other than an area treated as a State under paragraph (5)) 
     shall make available as grants to local governments at least 
     50 percent of the annual State apportionment, or an 
     equivalent amount made available from other sources.''
       (g) Match.--Subsection 6(c) of the Land and Water 
     Conservation Fund Act of 1965 (16 U.S.C. Sec. 460l-8(c)) is 
     amended to read as follows:
       ``(c) Matching Requirements.--Payments to any State shall 
     cover not more than 50 percent of the cost of outdoor 
     recreation and conservation planning, acquisition or 
     development projects that are undertaken by the State.''
       (h) State Action Agenda.--Subsection 6(d) of the Land and 
     Water Conservation Fund Act of 1965 (16 U.S.C. Sec. 460l-
     8(d)) is amended to read as follows:
       ``(d) State Action Agenda Required.--Each State may define 
     its own priorities and criteria for selection of outdoor 
     recreation and conservation acquisition and development 
     projects eligible for grants under this Act so long as it 
     provides for public involvement in this process and publishes 
     an accurate and current State Action Agenda for Community 
     Recreation and Conservation indicating the needs it has 
     identified and the priorities and criteria it has 
     established. In order to assess its needs and establish its 
     overall priorities, each State, in partnership with its local 
     governments and Federal agencies, and in consultation with 
     its citizens, shall develop a State Action Agenda for 
     Community Recreation and Conservation, within five years of 
     enactment, that meets the following requirements:
       ``(1) The agenda must be strategic, originating in broad-
     based and long-term needs, but focused on actions that can be 
     funded over the next 4 years.
       ``(2) The agenda must be updated at least once every 4 
     years and certified by the Governor that the State Action 
     Agenda for Community Recreation and Conservation conclusions 
     and proposed actions have been considered in an active public 
     involvement process.

     State Action Agendas for Community Recreation and 
     Conservation shall take into account all providers of 
     recreation and conservation lands within each State, 
     including Federal, regional and local government resources 
     and shall be correlated whenever possible with other State, 
     regional, and local plans for parks, recreation, open space 
     and wetlands conservation.
       ``Each State Action Agenda for Community Recreation and 
     Conservation shall specifically address wetlands within that 
     State as important outdoor recreation and conservation 
     resources. Each State Action Agenda for Community Recreation 
     and Conservation shall incorporate a wetlands priority plan 
     developed in consultation with the State agency with 
     responsibility for fish and wildlife resources which is 
     consistent with that national wetlands priority conservation 
     plan developed under section 301 of the Emergency Wetlands 
     Resources Act.
       ``Recovery action programs developed by urban localities 
     under section 1007 of the Urban Park and Recreation Recovery 
     Act of 1978 shall be used by a State as one guide to the 
     conclusions, priorities and action schedules contained in the 
     State Action Agenda for Community Recreation and 
     Conservation. Each State shall assure that any requirements 
     for local outdoor recreation and conservation planning that 
     are promulgated as conditions for grants minimize redundancy 
     of local efforts by allowing, wherever possible, use of the 
     findings, priorities, and implementation schedules of 
     recovery action programs to meet such requirements.''
       (i) Comprehensive State Plans developed by any State under 
     section 6(d) of the Land and Water Conservation Fund Act of 
     1965 (16 U.S.C. Sec. 460l-8(d)) before the enactment of this 
     Act shall remain in effect in that State until or State 
     Action Agenda for Community Recreation and Conservation has 
     been adopted pursuant to the amendment made by this 
     subsection, but no later than 5 years after the enactment of 
     this Act.
       (j) State Plans.--Subsection 6(e) of the Land and Water 
     Conservation Fund Act of 1965 (16 U.S.C. Sec. 460l-8(e)) is 
     amended--
       (1) by striking ``State comprehensive plan'' at the end of 
     the first paragraph and inserting ``State Action Agenda for 
     Community Recreation and Conservation'';
       (2) by striking ``State comprehensive plan'' in paragraph 
     (1) and inserting ``State Action Agenda for Community 
     Recreation and Conservation''; and
       (3) by striking ``but not including incidental costs 
     related to acquisition'' at the end of paragraph (1).
       (k) Conversion.--Paragraph 6(f)(3) of the Land and Water 
     Conservation Fund Act of 1965 (16 U.S.C. Sec. 460l-8(f)(3)) 
     is amended by striking the second sentence and inserting: 
     ``With the exception of those properties that are no longer 
     viable as an outdoor recreation and conservation facility due 
     to changes in demographics or must be abandoned because of 
     environmental contamination which endanger public health and 
     safety, the Secretary shall approve such conversion only if 
     the State demonstrates no prudent or feasible alternative 
     exists. Any conversion must satisfy any conditions the 
     Secretary deems necessary to assure the substitution of other 
     recreation and conservation properties of at least equal fair 
     market value, or reasonably equivalent usefulness and 
     location and which are in accord with the existing State 
     Action Agenda for Community Recreation and Conservation: 
     Provided, That wetland areas and interests therein as 
     identified in the wetlands provisions of the action agenda 
     and proposed to be acquired as suitable replacement property 
     within that same State that is otherwise acceptable to the 
     Secretary shall be considered to be of reasonably equivalent 
     usefulness with the property proposed for conversion.''

     SEC. 204. URBAN PARK AND RECREATION RECOVERY ACT OF 1978 
                   AMENDMENTS.

       (a) Grants.--Section 1004 of the Urban Park and Recreation 
     Recovery Act (16 U.S.C. Sec. 2503) is amended by 
     redesignating subsections (d), (e), and (f) as subsections 
     (f), (g), and (h) respectively, and by inserting the 
     following after subsection (c):
       ``(d) `development grants' means matching capital grants to 
     local units of government to cover costs of development and 
     construction on existing or new neighborhood recreation 
     sites, including indoor and outdoor recreation facilities, 
     support facilities, and landscaping, but excluding routine 
     maintenance and upkeep activities;'';
       ``(e) `acquisition grants' means matching capital grants to 
     local units of government to cover the direct and incidental 
     costs of purchasing new parkland to be permanently dedicated 
     and made accessible for public recreation use;''.
       (b) Eligibility.--Subsection 1005(a) of the Urban Park and 
     Recreation Recovery Act (16 U.S.C. Sec. 2504) is amended to 
     read as follows:
       ``(a) Eligibility of general purpose local governments to 
     compete for assistance under this title shall be based upon 
     needed as determined by the Secretary. Generally, the list of 
     eligible governments shall include the following:
       ``(1) All central cities of Metropolitan, Primary or 
     Consolidated Statistical Areas as currently defined by the 
     census.
       ``(2) All political subdivisions included in Metropolitan, 
     Primary or Consolidated Statistical Areas as currently 
     defined by the census.
       ``(3) Any other city or town within a Metropolitan Area 
     with a total population of 50,000 or more in the census of 
     1970, 1980 or 1990.
       ``(4) Any other county, parish or township with a total 
     population of 250,000 or more in the census of 1970, 1980 or 
     1990.''.
       (c) Matching Grants.--Subsection 1006(a) of the Urban Park 
     and Recreation Recovery Act (16 U.S.C. Sec. 2505(a)) is 
     amended by striking all through paragraph (3) and inserting 
     the following:
       ``Sec. 1006.(a) The Secretary is authorized to provide 70 
     percent matching grants for rehabilitation, innovation, 
     development or acquisition purposes to eligible general 
     purpose local governments upon his approval of applications 
     therefor by the chief executives of such governments.
       ``(1) At the discretion of such applicants, and if 
     consistent with an approved application, rehabilitation, 
     innovation, development or acquisition grants may be 
     transferred in whole or in part to independent special 
     purpose local governments, private nonprofit agencies or 
     country or regional park authorities; except that, such 
     grantees shall provide assurance to the Secretary that they 
     will maintain public recreation opportunities at assisted 
     areas and facilities owned or managed by them in accordance 
     with section 1010 of this Act.
       ``(2) Payments may be made only for those rehabilitation, 
     innovation, development, or acquisition projects which have 
     been approved by the Secretary. Such payments may be made 
     from time to time in keeping with the rate of progress toward 
     completion of a project, on a reimbursable basis.''.
       (d) Coordination.--Section 1008 of the Urban Park and 
     Recreation Recovery Act (16 U.S.C. Sec. 2507) is amended by 
     striking the last sentence and inserting the following: ``The 
     Secretary and general purpose local governments are 
     encouraged to coordinate preparation of recovery action 
     programs required by this title with State Action Agendas for 
     Community Recreation and Conservation required by section 6 
     of the Land and Water Conservation Fund Act of 1965, 
     including the allowance of flexibility in local preparation 
     of recovery action programs so that they may be used to meet 
     State or local qualifications for local receipt of Land and 
     Water Conservation Fund grants or State grants for similar 
     purposes or for other recreation or conservation purposes. 
     The Secretary shall also encourage States to consider the 
     findings, priorities, strategies and schedules included in 
     the recovery action program of their urban localities in 
     preparation and updating of the State Action Agendas for 
     Community Recreation and Conservation, in accordance with the 
     public coordination and citizen consultation requirements of 
     subsection 6(d) of the Land and Water Conservation Fund Act 
     of 1965.''

[[Page S12031]]

       (e) Conversion.--Section 1010 of the Urban Park and 
     Recreation Recovery Act (16 U.S.C. Sec. 2509) is amended by 
     striking the first sentence and inserting the following: ``No 
     property acquired or improved or developed under this title 
     shall, without the approval of the Secretary, be converted to 
     other than public recreation uses. The Secretary shall 
     approve such conversion only if the grantee demonstrates no 
     prudent or feasible alternative exists (with the exception of 
     those properties that are no longer a viable recreation 
     facility due to changes in demographics or must be abandoned 
     because of environmental contamination which endanger public 
     health and safety). Any conversion must satisfy any 
     conditions the Secretary deems necessary to assure the 
     substitution of other recreation properties of at least equal 
     fair market value, or reasonably equivalent usefulness and 
     location and which are in accord with the current recreation 
     recovery action program.''
       (f) Repeal.--Section 1014 of the Urban Park and Recreation 
     Recovery Act (16 U.S.C. 2513) is repealed.

            TITLE III--WILDLIFE CONSERVATION AND RESTORATION

     SEC. 301. SHORT TITLE.

       This title may be cited as the ``Wildlife Conservation and 
     Restoration Act of 1998''.

     SEC. 302. FINDINGS.

       The Congress finds and declares that--
       (1) a diverse array of species of fish and wildlife is of 
     significant value to the Nation for many reasons: aesthetic, 
     ecological, educational, cultural, recreational, economic, 
     and scientific;
       (2) it should be the objective of the United States to 
     retain for present and future generations the opportunity to 
     observe, understand, and appreciate a wide variety of 
     wildlife;
       (3) millions of citizens participate in outdoor recreation 
     through hunting, fishing, and wildlife observation, all of 
     which have significant value to the citizens who engage in 
     these activities;
       (4) providing sufficient and properly maintained wildlife 
     associated recreational opportunities is important to 
     enhancing public appreciation of a diversity of wildlife and 
     the habitats upon which they depend;
       (5) lands and waters which contain species classified 
     neither as game nor identified as endangered or threatened 
     also can provide opportunities for wildlife associated 
     recreation and education such as hunting and fishing 
     permitted by applicable State or Federal law;
       (6) hunters and anglers have for more than 60 years 
     willingly paid user fees in the form of Federal excise taxes 
     on hunting and fishing equipment to support wildlife 
     diversity and abundance, through enactment of the Federal Aid 
     in Wildlife Restoration Act (commonly referred to as the 
     Pittman-Robertson Act) and the Federal Aid in Sport Fish 
     Restoration Act (commonly referred to as the Dingell-Johnson/
     Wallop-Breaux Act);
       (7) State programs, adequately funded to conserve a broader 
     array of wildlife in an individual State and conducted in 
     coordination with Federal, State, tribal, and private 
     landowners and interested organizations, would continue to 
     serve as a vital link in a nationwide effort to restore game 
     and nongame wildlife, and the essential elements of such 
     programs should include conservation measures which manage 
     for a diverse variety of populations of wildlife; and
       (8) It is proper for Congress to bolster and extend this 
     highly successful program to aid game and nongame wildlife in 
     supporting the health and diversity of habitat, as well as 
     providing funds for conservation education.

     SEC. 303. PURPOSES.

       The purposes of this title are--
       (1) to extend financial and technical assistance to the 
     States under the Federal Aid to Wildlife Restoration Act for 
     the benefit of a diverse array of wildlife and associated 
     habitats, including species that are not hunted or fished, to 
     fulfill unmet needs of wildlife within the States while 
     recognizing the mandate of the States to conserve all 
     wildlife;
       (2) to assure sound conservation policies through the 
     development, revision and implementation of wildlife 
     associated recreation and wildlife associated education and 
     wildlife conservation law enforcement;
       (3) to encourage State fish and wildlife agencies to create 
     partnerships between the Federal Government, other State 
     agencies, wildlife conservation organizations, and outdoor 
     recreation and conservation interests through cooperative 
     planning and implementation of this title; and
       (4) to encourage State fish and wildlife agencies to 
     provide for public involvement in the process of development 
     and implementation of a wildlife conservation and restoration 
     program.

     SEC. 304. DEFINITIONS.

       (a) Reference to Law.--In this title, the term ``Federal 
     Aid in Wildlife Restoration Act'' means the Act of September 
     2, 1937 (16 U.S.C. 669 et seq.), commonly referred to as the 
     Federal Aid in Wildlife Restoration Act or the Pittman-
     Robertson Act.
       (b) Wildlife Conservation and Restoration Program.--Section 
     2 of the Federal Aid in Wildlife Restoration Act (16 U.S.C. 
     669a) is amended by inserting after ``shall be construed'' in 
     the first place it appears the following: ``to include the 
     wildlife conservation and restoration program and''.
       (c) State Agencies.--Section 2 of the Federal Aid in 
     Wildlife Restoration Act (16 U.S.C. 669a) is amended by 
     inserting ``or State fish and wildlife department'' after 
     ``State fish and game department''.
       (d) Conservation.--Section 2 is amended by striking the 
     period at the end thereof, substituting a semicolon, and 
     adding the following: ``the term `conservation' shall be 
     construed to mean the use of methods and procedures necessary 
     or desirable to sustain healthy populations of wildlife 
     including all activities associated with scientific resources 
     management such as research, census, monitoring of 
     populations, acquisition, improvement and management of 
     habitat, live trapping and transplantation, wildlife damage 
     management, and periodic or total protection of a species or 
     population as well as the taking of individuals within 
     wildlife stock or population if permitted by applicable State 
     and Federal law; the term `wildlife conservation and 
     restoration program' shall be construed to mean a program 
     developed by a State fish and wildlife department that the 
     Secretary determines meets the criteria in section 6(d), the 
     projects that constitute such a program, which may be 
     implemented in whole or part through grants and contracts by 
     a State to other State, Federal, or local agencies wildlife 
     conservation organizations and outdoor recreation and 
     conservation education entities from funds apportioned under 
     this title, and maintenance of such projects; the term 
     `wildlife' shall be construed to mean any species of wild, 
     free-ranging fauna including fish, and also fauna in captive 
     breeding programs the object of which is to reintroduce 
     individuals of a depleted indigenous species into previously 
     occupied range; the term `wildlife-associated recreation' 
     shall be construed to mean projects intended to meet the 
     demand for outdoor activities associated with wildlife 
     including, but not limited to, hunting and fishing, such 
     projects as construction or restoration of wildlife viewing 
     areas, observation towers, blinds, platforms, land and water 
     trails, water access, trailheads, and access for such 
     projects; and the term `wildlife conservation education' 
     shall be construed to mean projects, including public 
     outreach, intended to foster responsible natural resource 
     stewardship.''.
       (3) 7 Percent.--Subsection 3(a) of the Federal Aid in 
     Wildlife Restoration Act (16 U.S.C. 669b(a)) is amended in 
     the first sentence by--
       (1) inserting ``(1)'' after ``(beginning with the fiscal 
     year 1975)''; and
       (2) inserting after ``Internal Revenue Code of 1954'' the 
     following: ``, and (2) from 7 percent of the revenues, as 
     that term is defined in the Reinvestment Act and 
     Environmental Restoration Act of 1998,''.

     SEC. 305. SUBACCOUNTS AND REFUNDS.

       Section 3 of the Federal Aid in Wildlife Restoration Act 
     (16 U.S.C. 669b) is amended by adding at the end the 
     following new subsections:
       ``(c) A subaccount shall be established in the Federal aid 
     to wildlife restoration fund in the Treasury to be known as 
     the `wildlife conservation and restoration account' and the 
     credits to such account shall be equal to the 7 percent of 
     revenues referred to in subsection (a)(2). Amounts in such 
     account shall be invested by the Secretary of the Treasury as 
     set forth in subsection (b) and shall be made available 
     without further appropriation, together with interest, for 
     apportionment at the beginning of fiscal year 2000 and each 
     fiscal year thereafter to carry out State wildlife 
     conservation and restoration programs.
       ``(d) Funds covered into the wildlife conservation and 
     restoration account shall supplement, but not replace, 
     existing funds available to the States from the sport fish 
     restoration and wildlife restoration accounts and shall be 
     used for the development, revision, and implementation of 
     wildlife conservation and restoration programs and should be 
     used to address the unmet needs for a diverse array of 
     wildlife and associated habitats, including species that are 
     not hunted or fished, for wildlife conservation, wildlife 
     conservation education, and wildlife-associated recreation 
     projects: Provided, such funds may be used for new programs 
     and projects as well as to enhance existing programs and 
     projects.
       ``(e) Notwithstanding subsections (a) and (b) of this Act, 
     with respect to the wildlife conservation and restoration 
     account so much of the appropriation apportioned to any State 
     for any fiscal year as remains unexpended at the close 
     thereof is authorized to be made available for expenditure in 
     that State until the close of the fourth succeeding fiscal 
     year. Any amount apportioned to any State under this 
     subsection that is unexpended or unobligated at the end of 
     the period during which it is available for expenditure on 
     any project is authorized to be reapportioned to all States 
     during the succeeding fiscal year.
       ``(f) In those instances where through judicial decision, 
     administrative review, arbitration, or other means there are 
     royalty refunds owed to entities generating revenues 
     available for purposes of this Act, 7 percent of such refunds 
     shall be paid from amounts available under subsection 
     (a)(2).''.

     SEC. 306. ALLOCATION OF SUBACCOUNT RECEIPTS.

       Section 4 of the Federal Aid in Wildlife Restoration Act 
     (16 U.S.C. 669c) is amended by adding the following new 
     subsection:
       ``(c)(1) Notwithstanding subsection (a), so much, not to 
     exceed 2 percent, of the revenues covered into the wildlife 
     conservation and restoration account in each fiscal year as 
     the Secretary of the Interior may estimate to be necessary 
     for expenses in the administration and execution of programs 
     carried out under the wildlife conservation and

[[Page S12032]]

     restoration account shall be deducted for that purpose, and 
     such sum is authorized to be made available therefor until 
     the expiration of the next succeeding fiscal year, and within 
     60 days after the close of such fiscal year the Secretary of 
     the Interior shall apportion such part thereof as remains 
     unexpended, if any, on the same basis and in the same manner 
     as is provided under paragraphs (2) and (3).
       ``(2) The Secretary of the Interior, after making the 
     deduction under paragraph (1), shall make the following 
     apportionment from the amount remaining in the wildlife 
     conservation and restoration account:
       ``(A) to the District of Columbia and to the Commonwealth 
     of Puerto Rico, each a sum equal to not more than \1/2\ of 1 
     percent thereof; and
       ``(B) to Guam, American Samoa, the Virgin Islands, and the 
     Commonwealth of the Northern Mariana Islands, each a sum 
     equal to not more than \1/6\ of 1 percent thereof.
       ``(3) The Secretary of the Interior, after making the 
     deduction under paragraph (1) and the apportionment under 
     paragraph (2), shall apportion the remaining amount in the 
     wildlife conservation and restoration account for each year 
     among the States in the following manner:
       ``(A) \1/3\ which is based on the ratio to which the land 
     area of such State bears to the total land area of all such 
     States; and
       ``(B) \2/3\ of which is based on the ratio to which the 
     population of such State bears to the total population of all 
     such States.

     The amounts apportioned under this paragraph shall be 
     adjusted equitably so that no such State shall be apportioned 
     a sum which is less than \1/2\ of 1 percent of the amount 
     available for apportionment under this paragraph for any 
     fiscal year or more than 5 percent of such amount.''.
       ``(d) Wildlife Conservation and Restoration Programs.--Any 
     State, through its fish and wildlife department, may apply to 
     the Secretary for approval of a wildlife conservation and 
     restoration program or for funds to develop a program, which 
     shall--
       ``(1) contain provision for vesting in the fish and 
     wildlife department of overall responsibility and 
     accountability for development and implementation of the 
     program; and
       ``(2) contain provision for development and implementation 
     of--
       ``(A) wildlife conservation projects which expand and 
     support existing wildlife programs to meet the needs of a 
     diverse array of wildlife species,
       ``(B) wildlife associated recreation programs, and
       ``(C) wildlife conservation education projects.

     If the Secretary of the Interior finds that an application 
     for such program contains the elements specified in 
     paragraphs (1) and (2), the Secretary shall approve such 
     application and set aside from the apportionment to the State 
     made pursuant to section 4(c) an amount that shall not 
     exceed 90 percent of the estimated cost of developing and 
     implementing segments of the program for the first 5 
     fiscal years following enactment of this subsection and 
     not to exceed 75 percent thereafter. Not more than 10 
     percent of the amounts apportioned to each State from this 
     subaccount for the State's wildlife conservation and 
     restoration program may be used for law enforcement. 
     Following approval, the Secretary may make payments on a 
     project that is a segment of the State's wildlife 
     conservation and restoration program as the project 
     progresses but such payments, including previous payments 
     on the project, if any, shall not be more than the United 
     States pro rata share of such project. The Secretary, 
     under such regulations as he may prescribe, may advance 
     funds representing the United States pro rata share of a 
     project that is a segment of a wildlife conservation and 
     restoration program, including funds to develop such 
     program. For purposes of this subsection, the term `State' 
     shall include the District of Columbia, the Commonwealth 
     of Puerto Rico, the United States Virgin Islands, Guam, 
     American Samoa, and the Commonwealth of the Northern 
     Mariana Islands.''.
       (b) FACA.--Coordination with State fish and wildlife 
     department personnel or with personnel of other State 
     agencies pursuant to the Federal Aid in Wildlife Restoration 
     Act or the Federal Aid in Sport Fish Restoration Act shall 
     not be subject to the Federal Advisory Committee Act (5 
     U.S.C. App.). Except for the preceding sentence, the 
     provisions of this title relate solely to wildlife 
     conservation and restoration programs as defined in this 
     title and shall not be construed to affect the provisions of 
     the Federal Aid in Wildlife Restoration Act relating to 
     wildlife restoration projects or the provisions of the 
     Federal Aid in Sport Fish Restoration Act relating to fish 
     restoration and management projects.

     SEC. 307. LAW ENFORCEMENT AND PUBLIC RELATIONS.

       The third sentence of subsection (a) of section 8 of the 
     Federal Aid in Wildlife Restoration Act (16 U.S.C. 669g) is 
     amended by inserting before the period at the end thereof: 
     ``, except that funds available from this subaccount for a 
     State wildlife conservation and restoration program may be 
     used for law enforcement and public relations''.

     SEC. 308. PROHIBITION AGAINST DIVERSION.

       No designated State agency shall be eligible to receive 
     matching funds under this Act if sources of revenue available 
     to it on January 1, 1998, for conservation of wildlife are 
     diverted for any purpose other than the administration of the 
     designated State agency, it being the intention of Congress 
     that funds available to States under this Act be added to 
     revenues from existing State sources and not serve as a 
     substitute for revenues from such sources. Such revenues 
     shall include interest, dividends, or other income earned on 
     the foregoing.

                          ____________________