[Congressional Record (Bound Edition), Volume 152 (2006), Part 10]
[House]
[Pages 13633-13680]
[From the U.S. Government Publishing Office, www.gpo.gov]




                DEEP OCEAN ENERGY RESOURCES ACT OF 2006

  The SPEAKER pro tempore. Pursuant to House Resolution 897 and rule 
XVIII, the Chair declares the House in the Committee of the Whole House 
on the State of the Union for the consideration of the bill, H.R. 4761.

                              {time}  1458


                     In the Committee of the Whole

  Accordingly, the House resolved itself into the Committee of the 
Whole House on the State of the Union for the consideration of the bill 
(H.R. 4761) to provide for exploration, development, and production 
activities for mineral resources on the outer Continental Shelf, and 
for other purposes, with Mr. Simpson in the chair.
  The Clerk read the title of the bill.
  The CHAIRMAN. Pursuant to the rule, the bill is considered read the 
first time.
  The gentleman from California (Mr. Pombo) and the gentleman from West 
Virginia (Mr. Rahall) each will control 30 minutes.
  The Chair recognizes the gentleman from California.
  Mr. POMBO. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, we have before us today an extremely important bill. 
Earlier in the day we had quite a bit of debate on the rule. 
Unfortunately, much of that debate had very little to do with this 
bill. Much of that debate had more to do with other issues that 
Congress has failed to address over the last several years; but we do 
have the opportunity today to move forward in terms of a national 
energy policy and taking a step in the right direction.
  I look forward to a very active debate, a very insightful debate; and 
I hope that my colleagues can actually debate the bill that is in front 
of us today because that is what we are debating. I hope that we have 
the opportunity to have a full hearing on what is important to this 
country.
  Mr. Chairman, I reserve the balance of my time.

                              {time}  1500

  Mr. RAHALL. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I rise in opposition to the pending legislation on the 
basis that I am unwilling to vote against America's energy 
independence. This bill would continue to mortgage our Nation's future 
to a handful of multinational oil conglomerates. It demands a continued 
addiction to a petroleum diet. It would only further enslave us as a 
Nation, as a society, to the oily ways of the past, which do not bode 
well for our energy future.

[[Page 13634]]

  It is telling that the so-called ``energy week'' proclaimed by the 
Republican majority consists only of this single piece of legislation 
that would only further shackle the Nation to the whims and caprices of 
the petroleum industry. It is telling that this is their idea, as it 
has been all along, of what energy independence means.
  As Paul Revere did on that famous midnight ride, those of us opposed 
to this ill-conceived bill are raising an alarm. The drumbeat that we 
hear pounds out a call of freedom. Freedom to be done with those who 
profit and plunder at the gas pumps throughout this country, freedom 
from the price gougers, freedom from the merchants of profit and power 
over our American values, and the freedom to devise new and alternative 
fuels to our petroleum dependency. It is time to stand up and be 
counted, to hoist up the flag and salute it, to strike a resounding 
chord that will reverberate across this great land of ours.
  I say to my colleagues that truly today is Independence Day here in 
the House of Representatives, for we are being given an opportunity to 
vote against this outrageous bill and vote against it on the following 
grounds:
  First, it would improperly and perhaps unconstitutionally delegate to 
the coastal States virtually all decision-making powers over the 
disposition of a Federal resource. It says to all of the other owners 
of our offshore water and energy resources, whether they reside in 
Ohio, Idaho, Arizona or my great State of West Virginia, so it should 
say to the owners of our offshore waters and energy resources, all of 
the American taxpayers, no matter what State that they reside in, that 
they have no say in this matter. No say whatsoever, that we are going 
to vest all of the power with a few, to the detriment of the many.
  Second, it would grab the second largest source of income to the 
Federal Government after personal income taxes, yank this revenue out 
of the Treasury and redistribute it to those few. Let's be clear. This 
bill would reallocate existing revenue from OCS oil and gas leases to 
willing coastal States, not just future, potential revenue streams, but 
also those currently being dedicated to the benefit of the Nation as a 
whole.
  It would rob the majority of the American people and bankrupt the 
Land and Water Conservation Fund so cherished by communities and 
localities across this great land. According to the administration, 
this is their figures, the revenue-sharing provisions of bill alone 
would constitute a $74 billion hit over the first 15 years. Envision 
this massive rate on America's resources and what it will mean to the 
average American.
  Third reason for opposing this bill, it would deprive most of us of 
jobs and economic benefits in most of the regions of our country. Those 
of you from the Midwest, from the corn belt, you can forget about 
ethanol. This bill demands petroleum. Vote for it, and you vote against 
your interests. You vote against the jobs in your region and against 
economic benefits that the production of ethanol brings to your region.
  Those of you from the coalfields, like myself, where we have sought 
for many years to broaden our employment base and to reduce our 
Nation's petroleum fixation with liquid fuels made from coal, vote for 
this and you are voting against the future of your coal miners.
  As in the past, these so-called energy bills that come before this 
Republican-controlled Congress are nothing but a vote for further, as 
the President wants to wean us away from, it is nothing but a vote for 
a further addiction to oil.
  With the Nation hard and fast on a petroleum diet for decades to come 
brought forth by this pending legislation, the widespread 
commercialization of coal-to-liquids technology to fuel our vehicles 
will continue to be an elusive goal and merely lip service only.
  I have never forsaken the coal miners in my congressional district, 
and I am not about to do so now.
  Fourth, Mr. Chairman, this bill simply is not necessary. Under the 
Bush administration alone, the Department of Interior has offered 
leases covering 267 million acres of the OCS. Industry has only sought 
to acquire 24 million of those acres.
  Now, contemplate that for a moment. There are still 243 million acres 
available, currently available for leasing that the oil and gas 
industry has not yet seen fit to bid upon. In all, in total, over 40 
million acres of the OCS are under lease and less than 7 million of 
those acres are in production.
  Is there a crisis in the OCS? Is there evidence that legislation such 
as that before us today, which shreds long-standing moratoria is 
needed? The facts tell us not.
  Those who bring forth this legislation represent an era that should 
now be in our past, seeking to place all of our eggs in a black basket 
woven of petroleum. They would defend the predominance of Big Oil, 
those with wealth and power over our energy destiny.
  Those of us opposed to this legislation bring with us the conviction 
that there are limits to what the American people will suffer for the 
sake of profit and power. This is indeed a turning point for America.
  Mr. Chairman, I urge the defeat of the pending legislation.
  Mr. Chairman, I reserve the balance of my time.
  Mr. POMBO. Mr. Chairman I yield 2 minutes to the majority whip, Mr. 
Blunt.
  Mr. BLUNT. Mr. Chairman, I thank the chairman and Mr. Abercrombie for 
their work on this bill, which will produce a bipartisan vote today.
  I join my friend, Mr. Rahall, in his interest and support in the 
continued expansion of the use of coal and ethanol. I just do not think 
this bill prevents that from happening. This bill allows us, during a 
transitional generation, to help meet the needs of that transition.
  This bill allows us to look at domestic resources, at resources close 
to our shore that replace those things we are now importing. The U.S. 
Minerals Management Service estimates that in these deep sea areas 
there are 420 trillion cubic feet of natural gas, almost 20 times the 
annual U.S. consumption of natural gas, 86 billion barrels of oil. 
Twenty years of imported oil would be 86 billion barrels of oil, or 
almost 20 years of imported oil.
  This bill is balanced, a common-sense approach that gives the coastal 
States unprecedented power to prevent production within 100 miles of 
their coastline, while enabling the United States to produce energy in 
the deep waters beyond.
  This bill is at no cost to the Federal Government. The scoring in the 
bill that the sponsors have worked on comes back at no cost in 1 year, 
no cost in 2 years, no cost in 10 years. In fact, the Federal 
Government brings in additional revenues under this formula, even 
though it is beginning to share new revenues with the States.
  The U.S. is facing high energy prices. The U.S. is in a crisis of too 
much imported oil and natural gas. Too many jobs and gross sales have 
gone to other countries as the natural gas prices have made us less 
competitive in fertilizer and other industries than we used to be.
  This is a great piece of legislation. It is a great effort to bring 
so many elements together. I want to again thank the chairman for his 
leadership on this legislation and others, along with Mr. Abercrombie, 
who have worked so hard to bring it to floor today.
  Mr. RAHALL. Mr. Chairman, I yield 3\1/4\ minutes to the gentlewoman 
from California (Mrs. Capps), a true leader in this area who has 
devoted a great deal of time on this issue and has a true concern for 
our environment and what this issues means for us.
  Mrs. CAPPS. Mr. Chairman, I thank my colleague for yielding me time.
  Mr. Chairman, I rise in such strong opposition to this budget-busting 
bill that threatens our coastal communities. This bill is unnecessary, 
misleading and fiscally irresponsible.
  The oil and gas companies, awash in profits from high energy prices, 
would have you believe these three things: That the offshore oil 
resources are off limits today. Second, that this bill will give States 
control over the drilling off their coasts. Third, that this bill is 
fiscally responsible.

[[Page 13635]]

  All of it is hogwash.
  First, here is a little secret supporters of the bill do not want you 
to know. The industry already has access to the vast majority of oil 
and gas on the OCS. According to the Bush administration, some 80 
percent of the known reserves are located in areas where drilling is 
already allowed.
  Furthermore, the oil and gas industry already owns the drilling 
rights to more than 4,000 untapped leases in the Gulf of Mexico alone. 
Why should we open the entire U.S. coast to drilling when the industry 
will not even drill where it already can?
  Second, this bill turns Federal efforts for coastal protection and 
public lands protection on its head. The Federal Government sets the 
rules on drilling and other activities in Federal waters. The impact on 
the environment and the fishing and transportation industries are just 
too broad to be determined by a single State.
  But this bill turns these important decisions over to the States. It 
would be like letting California decide what should go on in Yosemite, 
or letting Pennsylvania set the rules for air quality on the east 
coast.
  And as for the claim that the bill gives a State control of oil 
drilling off its coast, that is full of holes, too. The bill ends the 
current moratorium on new drilling immediately. In order to continue 
even parts of the current ban, a State has to clear numerous hurdles. 
It has to petition the Feds through separate legislative votes and 
actions by its governor. The petitioning has to be repeated every 5 
years.
  The Federal Government can simply ignore a State's request for 
continuation of the ban anyway, and that is hardly giving a State 
control over its coastal protection.
  Finally, this bill creates a new permanent entitlement that will add 
billions to the Federal deficit.
  The Bush administration says the bill would cost $74 billion over the 
next 15 years and a whopping $600 billion over the next 60 years. For 
my fiscally conservative friends who spent hours trying to strike 
$100,000 dollars from appropriations bills, let me repeat that. This 
bill will add $74 billion to the deficit over the next 15 years and 
$600 billion over the next 60 years.
  And for my fiscally conservative Blue Dog friends, this budget-
busting bill will add even more zeroes to those great deficit signs 
outside your offices.
  I know that Chairman Pombo has spent the last couple of days trying 
to bring that cost down. But who really knows what the effect of his 
proposed changes are, given the little time anyone actually has had to 
digest his manager's amendment?
  Mr. Chairman, if Members really want to put brakes on reckless 
budgeting, here is the chance to lower the deficit by dollars and not 
pennies.
  This bill is a bad deal for America. It will unnecessarily put at 
risk protections for our coastlines that have been in place for 25 
years. It will lead to even more control of our offshore waters by the 
oil and gas industry. It will lead to even larger Federal budget 
deficits. Vote no on this budget buster.
  Mr. POMBO. Mr. Chairman, I yield for a unanimous consent request to 
Mr. Duncan.
  Mr. DUNCAN. Mr. Chairman, I want to thank and commend Chairman Pombo 
for this bill.
  Mr. Chairman, I rise in support of the Deep Ocean Energy Resources 
Act. Simply put, the DOER Act is a matter of both out national security 
and our economic security. Over the last couple of years gasoline and 
natural gas prices have skyrocketed.
  More and more people are finding it harder to pay for the gas to fill 
up their tanks just so they can get to work to provide for their 
families. Lower income citizens are having trouble paying their utility 
bills.
  We have been blessed with relatively low inflation rates that date 
back to the Reagan Administration. However, now in recent months, the 
Federal Reserve is constantly rising interest rates due to inflation, 
largely caused by rising energy costs.
  When businesses have to raise their prices to pay for their energy 
bills, those increased costs get passed on to consumers. that is just 
simple economics.
  At one of our hearings in the Resources Committee we were told that 
the United States is the only country in the world that forbids safe 
energy production on its Outer Continental shelf. If environmentalists 
will not let us drill offshore or in areas within the Country, from 
where are we supposed to get our energy? this makes us more vulnerable 
to foreign energy producers.
  It also drives up prices and hurts poor and lower income and working 
people most of all.
  We are forced to seek supplies overseas in politically unstable areas 
of the world such as the Middle East, Nigeria and Venezuela. Now we are 
told that the President of Venezuela wants to work with Castro's Cuba 
and the Chinese and drill for energy in Cuban waters that are close to 
Florida, so Cuba can drill close to Florida, but we can't.
  America has proven oil and gas reserves that we have locked up. We 
can no longer afford that luxury. the DOER Act would allow us to 
increase the supply of domestic oil and gas and improve the prospects 
for a more affordable energy future.
  Mr. POMBO. Mr. Chairman, I yield 2 minutes to the gentleman from 
Louisiana (Mr. Jindal), one of the chief authors of the bill.
  Mr. JINDAL. Mr. Chairman, I want to thank Mr. Pombo for his very good 
work on this bill. I would encourage support and a yes vote on this 
bill for several reasons.
  If you are worried about rising energy prices, I would recommend a 
yes vote on this bill. Thirty percent of the Nation's energy comes off 
the gulf coast.
  If you are interested in treating the gulf coast States equally, the 
way that we treat on-shore drilling on Federal lands for inland States, 
I would recommend a yes vote on this bill.
  If you are interested in our environment, if you are interested in 
restoring America's wetlands, I would encourage a yes vote on this 
bill.
  Louisiana loses 30 miles a year off our coast. We lost 100 miles last 
year off our coast thanks to Hurricanes Katrina and Rita. We have lost 
a size of land equivalent to the entire state of Rhode Island. The 
State of Louisiana is poised to pass a constitutional amendment 
dedicating 100 percent of the royalties we will receive under this bill 
for coastal restoration, hurricane and flood protection, restoring our 
coastal infrastructure.
  If you are worried about the hundreds of thousands of jobs we are 
losing in this country, if you worried about the 100,000 jobs we have 
lost in the wood and paper industry in the last 6 years, the 100,000 
jobs we have lost in the petrochemical industry in the last 6 years, I 
would encourage a yes vote on this bill.
  In Louisiana alone, we have lost 5,000 jobs, 5,000 jobs in the last 
couple of years, jobs that averaged $50,000 a year, jobs in our 
fertilizer industry, jobs in our wood and paper industry, in part 
because natural gas prices are half, in Russia are half or less 
overseas compared to what we are paying right here in the United 
States. If you are worried about keeping those jobs, I would encourage 
a yes vote on this bill.
  If you are worried about the hurricane damage that occurred in 
Louisiana, one of the reasons the entire Louisiana delegation, our 
Democrats and Republicans, our Democratic governor, are strongly 
encouraging a yes vote for this bill is this is our best chance to get 
the recurring revenue sources we need for category 5 levees. This is 
the best chance we have for recurring revenue sources to restore our 
coasts. Every 2.4 miles of wetlands absorbs 1 foot of tidal surge. I am 
going to repeat that. Every 2.4 miles of wetlands absorbs 1 foot of 
tidal surge.
  We were all shocked, outraged and hopefully sympathetic with the 
people of Louisiana after last year's hurricanes. The best way to help 
those people is with a yes vote on this bill.

                              {time}  1515

  Mr. RAHALL. Mr. Chairman, I yield for the purposes of a unanimous 
consent request to the gentleman from Texas (Mr. Gene Green).
  Mr. GENE GREEN of Texas. Mr. Chairman, I rise in support of the bill 
and oppose the amendments.
   Mr. Chairman, the price of natural gas is unsustainable for the 
American manufacturing base and for American families' home heating. We 
are already in a crisis with natural gas around $7 per thousand cubic 
feet.
  Average long-term contract prices for natural gas have tripled and 
quadrupled over the

[[Page 13636]]

last 5 years, and spot market prices are even higher.
  Normally it would be heresy for a Texan to complain about high 
natural gas prices. The fact that I do just that is proof of this 
crisis.
  The American chemical industry has already lost almost 1 million high 
paying jobs due to high natural gas prices. But the worst is yet to 
come.
  We are on the verge of a tragedy as the production in the open areas 
of the Gulf of Mexico peaks in the next 10 years, and we have nothing 
to replace it unless we pass this legislation.
  Many of the opponents of oil and gas drilling say drilling will have 
no impact on prices. With oil, they have a point, because it is a 
global price, but domestic oil does protect us from shortages and price 
spikes.
  However, natural gas is not easily shipped overseas because it must 
be frozen to negative 200 degrees, so it is not a global price.
  The high prices we pay for home heating and manufacturing are a 
direct result of the fact that our U.S. natural gas is locked up by 
federal bans.
  Unless we open our offshore areas, the U.S. will experience shortages 
of natural gas over the coming winters.
  Natural gas is the most efficient, cleanest form of home heating 
available and many areas have no alternatives.
  We face the very real possibility that one winter, natural gas on the 
spot market will not be available at any price--factories will close 
and Americans will risk death during the winter.
  If that happens, Congress will be to blame, because the United States 
is the only developed nation in the world that forbids safe energy 
production offshore.
  Norway, Britain, Canada, and other highly developed countries with 
strong environmental protection produce offshore without problems.
  Because they produce their gas, their industries have a competitive 
advantage against ours.
  Major chemical companies have told me point blank that they are 
adding jobs in Europe instead of America, even though they have more 
labor and environmental regulations, because they have cheaper natural 
gas.
  Those are tragic decisions for us, but natural gas is as much as much 
as ten times more expensive in the United States than it is overseas.
  I support energy alternatives, but ethanol, solar power, and wind 
power cannot substitute for natural gas in home heating or for making 
plastic.
  Electric home heating is much less efficient and natural gas is 
needed in manufacturing not just as a fuel, but as a feedstock to 
produce plastics.
  Much of the materials we use in our daily lives are plastics, and 
those materials used to be made in the U.S.
  Unless we allow our industries access to domestic natural gas, more 
jobs will go to Europe, Russia, China and India in search of natural 
gas.
  I urge a ``yes'' vote on the bill, and a ``no'' vote on all 
amendments to weaken the legislation.
  Mr. RAHALL. Mr. Chairman, I yield 3 minutes to the distinguished 
gentleman from New York (Mr. Boehlert).
  Mr. BOEHLERT. Mr. Chairman, I rise in the strongest possible 
opposition to this bill.
  First, we should not be opening our coasts, all of our coasts, to oil 
drilling when we have not taken the first step, not the first step, to 
conserve oil. Drilling today just depletes oil we may need later. 
Conserving now means saving more oil year after year after year. But 
the Rules Committee did not make in order my amendment on fuel economy 
standards, which at least would have allowed us to have a debate on 
demand and supply at the same time.
  But my opposition goes beyond any general concern about oil drilling 
because this bill does far more than simply lift the long-standing 
moratoriums on drilling. This bill basically hands over our coastal 
waters to the oil interests and makes it hard for States or citizens to 
do anything about it.
  And this is no exaggeration. The bill makes it difficult for States 
to bar drilling. Then, if a State allows drilling, the bill eliminates 
fundamental parts of the current process that allow States and citizens 
to review drilling plans to make sure they are environmentally sound 
and consistent with other possible uses of the waters. Then the bill 
blocks any use of the waters that could interfere with drilling. And, 
finally, to add a constitutional insult to all that coastal injury, it 
enables the Secretary of the Interior to threaten to withhold funding 
from States if the Secretary thinks Congress is interfering with oil 
drilling. This bill is breathtaking in its overreaching.
  Whether you are for or against offshore drilling, you ought to be 
against this bill. Once your constituents find out what really is in 
it, you will have a lot of explaining to do.
  Let me add that the manager's amendment does not do anything to 
alleviate my concerns. We studied it to the best of our ability. It was 
only available last night at midnight, and we have studied it. The 
amendment leaves in place all the unprecedented provisions I just 
mentioned. It leaves in place at least one new mandatory spending 
program. It even adds a new penalty to coerce States into opening 
waters to drilling.
  The manager's amendment is also rife with financial gimmickry. It 
actually increases the revenues denied the Federal Treasury over the 
long haul. It just delays the phase-in of the revenue sharing to 
States, but it raises the maximum amount States will get with no 
requirement, absolutely none, to report how the money has been used.
  So this is not a very good bill. As a matter of fact, it is my 
conclusion that it is a bad bill, even with the manager's amendment. It 
would make John D. Rockefeller blush.
  Mr. POMBO. Mr. Chairman, I yield 1 minute to the gentleman from 
California (Mr. Rohrabacher).
  Mr. ROHRABACHER. Mr. Chairman, I rise in strong support of this 
legislation.
  I have represented a southern California coastal district for 18 
years. There has never been an oil spill caused by an offshore rig, and 
we have had offshore oil drilling off my district for decades. The one 
spill we had that polluted our coast came from a tanker.
  Those who vote against offshore oil development are basically making 
us more dependent on tankers, which are dramatically more likely to 
spill oil upon our shores.
  As a scuba diver and one of the two active surfers in Congress, I 
suggest to those opposing offshore oil development, get real. What you 
are advocating will make us more dependent on tankers. Thus, we will 
are more likely to have oil spills. Cloaking your positions in 
environmental rhetoric does not make it so. You are making us more 
likely to have oil spills by making us more dependent on tankers.
  Support offshore oil development and a strong, independent American 
energy sector.
  Mr. RAHALL. Mr. Chairman, I yield 3 minutes to the gentleman from New 
Jersey (Mr. Pallone), a valued member of our Resources Committee.
  Mr. PALLONE. Mr. Chairman, I rise in strong opposition to this bill.
  House Republicans have called this week their so-called ``energy 
week,'' but the best they can do is offer up the same tired old refrain 
of drill, drill, drill. Unfortunately for them and for the American 
people, simply allowing more drilling is going to do virtually nothing 
for gasoline or natural gas prices and nothing to move us towards a 
sustainable energy future.
  Now, proponents of this misguided legislation will accuse those of us 
fighting the bill of only saying ``no'' and not having any solution of 
our own, but that is a false choice. They are saying that we are either 
for drilling or we are for absolutely nothing.
  The truth is that many of my colleagues and I have repeatedly offered 
solutions to our energy problems, only to have them rebuffed and not 
brought to the floor for a vote. Many of these solutions would not be 
germane to today's bill but are critical to solving our energy 
problems. I am talking about increasing fuel economy standards for our 
cars, introducing renewable portfolio standards, and strengthening 
energy efficiency standards for buildings and appliances.
  I want to say, Mr. Chairman, I am in my district every week talking 
about energy efficiency, fuel economy. We just had a school opening, 
and we talked about how in Highland Park in my district we have a new 
school building that has geothermal fuels, that has new lighting that 
has solar power.

[[Page 13637]]

  Just a week ago, I went to Middlesex County, one of my counties, at 
the Rutgers Cooperative Extension Station, and we just showcased new 
solar panels. We talked about all the things that can be done to create 
more energy efficiency in office buildings and residential buildings.
  The State of New Jersey is providing grants that the Federal 
Government does not have for residential users to basically provide 
more energy efficiency.
  So the fact of the matter is the Democrats and those who oppose this 
bill have been out there offering solutions. You just do not let us 
bring them up.
  The choice that we are making today, whether or not to pass this 
bill, also comes with a serious price tag that we have already talked 
about. According to the Minerals Management Services' estimates, the 
revenue sharing in this bill, along with the giveaways to the oil and 
gas companies, would cost taxpayers $74 billion over 15 years, just 
increasing the debt. That is what the Republicans do. They increase the 
debt.
  Now, what is worse is allowing drilling in sensitive offshore areas 
with endangered coastal economies in States like New Jersey.
  Speakers on the other side have said that they are worried about 
jobs. Well, I am worried about jobs in my State. The beach season, the 
summer season has begun in my district. When we had problems in the 
late 1980s and our beaches were closed for other reasons, we had 
billions of dollars, hundreds of thousands of jobs that were lost, and 
do not tell me that you are not going to have a spill. You say, oh, we 
are going to drill for natural gas and we are not going to hit oil. 
That is garbage. You have no way of knowing that.
  You also make statements about how a State can opt-out. Well, my 
State is a small State. How do we opt-out when New York or Virginia 
have a spill and it comes to our shores? This is going to devastate our 
coastal environment.
  Mr. POMBO. Mr. Chairman, I yield 1 minute to the gentleman from South 
Carolina (Mr. Brown).
  Mr. BROWN of South Carolina. Mr. Chairman, I rise today to encourage 
my colleagues to support the Deep Ocean Energy Resources Act of 2006.
  I represent over 75 percent of the coastline of South Carolina, which 
is some of the most beautiful beaches in the world. I have worked 
closely with Chairman Pombo to ensure that the interests of coastal 
communities are addressed in this bill.
  The revenue share portion of this bill going to coastal communities 
will help these communities fund important projects such as beach 
renourishment, infrastructure construction and wetlands conservation.
  I thank Chairman Pombo and my fellow Resource Committee colleagues, 
Congressman Bobby Jindal and Congressman John Peterson, for their hard 
work in bringing this bill to the floor today.
  I believe that this bill is an important part of the solution to fix 
the energy crisis we are all facing today in America. It is also an 
important step to stop America's dependency on foreign sources of oil. 
Becoming more energy self-sufficient is not only an economic issue but 
also an issue of our national security.
  Mr. RAHALL. Mr. Chairman, I yield 3 minutes to the gentleman from 
California (Mr. George Miller), the ranking member on the House 
Committee on Education and the Workforce.
  Mr. GEORGE MILLER of California. Mr. Chairman, I thank the gentleman 
from West Virginia for yielding.
  Mr. Chairman, there are many reasons to oppose this legislation. You 
can begin with the fiscal reasons. Just last week, we had the 
Republicans on the floor pleading for line-item veto so the President 
could help them cut deficit spending and cut spending. The President 
now says he opposes the spending in this bill, but they are not going 
to take that into regard this week. They are going to go ahead and 
spend and going to go ahead and increase the deficit. So, apparently, 
they just cannot stop themselves from doing that.
  But a more important reason is this. It is because of the threat to 
the coast that this bill presents and the threat to the coast that is 
not necessary. If the rest of the Nation would just follow California, 
we banned offshore oil drilling a long time ago, but we also recognized 
that we had an obligation as a State to meet our energy needs and not 
be as dependent on others as we were at that time. What you now see is 
California is the most efficient energy user per capita in the country.
  But that is not enough. We are going to go beyond that. The Public 
Utilities Commission is putting in a conservation program and energy 
efficiency program that will end up being a positive payback for the 
consumers. They will save money at the end of the expenditures of about 
$2 billion.
  We will, in fact, increase the use of biofuels dramatically. The 
governor has asked for 180 million gallons of biofuels I think in 2010, 
and we are going to meet and exceed that level.
  So there are these alternatives that dramatically reduce our 
dependence on fossil fuels, and this is really where we ought to be 
going.
  This is a continuation of a philosophy that has gotten this Nation 
into so much trouble, and that is, while we use 25 percent of the 
world's fossil fuel resources and we hold 3 percent of the reserve, 
that somehow we can drill ourselves out of that problem. It is a 
continuation of a policy that was in vogue and popular and maybe even 
right-headed in 1950 and 1960, but everything we have learned since 
then tells us that we cannot continue in this direction.
  So we tried to believe that we could drill our way out of our problem 
in Alaska, and now we are going to some of those valuable coastlines 
and risking that coastline on the idea that, again, we can continue to 
drill our way out of it.
  Because the people of this Nation do not want it, this bill has a 
perverse set of financial incentives to States and localities to try to 
make money talk, as opposed to the people of that State, to try to get 
the political establishments to overwhelm the people who have spoken in 
the Carolinas and Florida and California and Oregon and Washington and 
elsewhere in the country against this policy. So now we are just going 
to see if we can bribe them into changing their mind. This is not about 
an energy policy. This is about an etiology.
  Finally, the other reason to do this is that this legislation drains 
money from every other State, money that would be available to the 
Federal Government for deficit reduction or for whatever purpose, and 
throws it into a couple of States that become the winners of this great 
offshore oil lottery.
  This House ought to reject it on budget grounds, on environmental 
grounds, on energy grounds and on simply a vision of the future.
  Mr. POMBO. Mr. Chairman, I yield 1 minute to the gentleman from 
Louisiana (Mr. Jefferson).
  Mr. JEFFERSON. Mr. Chairman, I thank the gentleman for yielding.
  Mr. Chairman, this bill is not about alternative fuels or about the 
environment or about any of the things we are hearing about here today. 
It is about the price of natural gas and getting it down in our 
country. It is about fairness to the coastal States that are now 
providing so much of the resources for this country that are not 
getting their fair share of the resources back. It is about inclusion 
and including folks in this industry who are not yet included and have 
not had the trading to be included or the education to be included.
  Right now, natural gas prices are $12.68 per million btu, $4.85 in 
China, $1.21 in Iran and 95 cents in Russia. We cannot compete with 
those prices. This high natural gas price is devastating our 
industries; and, therefore, we are losing jobs across the country in 
manufacturing and in the petrochemical industry in my State and around 
the country.
  Eighty-five percent of the Outer Continental Shelf is off limits for 
natural gas production. That is wrong.
  Louisiana is America's energy corridor. Approximately 34 percent of 
the Nation's natural gas supply and almost 30 percent of the Nation's 
crude oil comes through our State. We need to have the right kind of 
support to continue providing this help to our country.

[[Page 13638]]



                              {time}  1530

  Mr. RAHALL. Mr. Chairman, I yield 1 minute to the distinguished 
gentlewoman from California (Ms. Eshoo).
  Ms. ESHOO. I thank my colleague for yielding.
  Mr. Chairman, I rise in the strongest opposition possible to this 
legislation which will erase 25 years of critical environmental 
protection. Only a month ago, the House rejected an attempt to lift the 
ban on coastal drilling, and yet today we are being told that the 
solution to our addiction to oil is more oil; that the oil companies 
who are reaping record profits need more relief from Federal 
regulation, and that more of our public lands need to be sacrificed for 
their bottom lines.
  This bill should be entitled Nothing is Sacred Any More. This is an 
outrage. The wheels have come off here. This bill not only hurts us in 
terms of the fiscal condition of the country; it gives the wrong 
message. It sends a terrible message to people in States that have 
spoken out over and over and over again. Their voices will be ignored. 
The vote will be ignored.
  The Republican Governor of California is vehemently opposed to this. 
This is an insult to local governments, to State governments, and to 
anyone that wants to land on the side of the future for our country and 
not the past.
  Mr. POMBO. Mr. Chairman, I yield 1 minute to the gentleman from 
California (Mr. Costa).
  Mr. COSTA. Thank you very much, Mr. Chairman. I rise to support H.R. 
4761. I would also like to thank Chairman Pombo and Ranking Member 
Rahall for their efforts on this legislation.
  This bill is an important step toward achieving the goal of further 
developing our domestic energy resources. We have for too long put vast 
oil and natural gas reserves off limits to exploration and production, 
as The Washington Post editorial stated this week.
  Our domestic reserves are not limitless, and this is a first step. 
But we must take other steps, such as increasing conservation, 
developing an ethanol industry, and increasing CAFE standards if we are 
to make our country safer by cutting our reliance on foreign oil.
  Despite the previous efforts of Congresses, our addiction to foreign 
oil, as the President stated, is greater today than ever before. That 
dependency is a threat to our national security, and we must address 
that threat.
  I would also like to take this opportunity to commend the efforts of 
the author and my friend, Representative Charlie Melancon, on this 
legislation. It is clear that Congressmen Jindal and Melancon are 
putting the interests of their constituents and the American public 
first as opposed to the interests of partisan politics.
  Please vote for H.R. 4761. I think it is a step in the right 
direction.
  Mr. RAHALL. Mr. Chairman, I yield 3 minutes to the distinguished 
gentleman from Florida (Mr. Davis), who year after year after year has 
been a true leader on this issue and on its environmental effects.
  Mr. DAVIS of Florida. Mr. Chairman, today we are debating an issue 
that is not just important to the country but it is deeply important to 
my home State of Florida: offshore oil drilling.
  For the last decade, and I hope and expect for decades to come, the 
Florida delegation has stood together to protect Florida on this 
critical issue. Why? Because our beaches, our coastline is critical to 
who we are as Floridians. It is what brings us to Florida. It is what 
keeps us in Florida. It is what brings many of your constituents to 
Florida, particularly this time of year. And we do not want to 
sacrifice our beaches, our coastline, our environment for oil and gas 
drilling that threatens our environment.
  Many of the Members of Congress here today from the States that 
generate revenue from oil and gas have said this is a debate about 
jobs. It is a debate about jobs. Eighty-eight million tourists visited 
our State last year. The threat of spilling off the coast of Florida 
could be a disaster to our reputation.
  Last year, during a tropical storm, not even a hurricane, a tropical 
storm off the coast of Louisiana, there was a spill. A spill such as 
that off the coast of Florida would be a disaster to our environment, 
to our economy. And what is at stake here? Just a few months of natural 
gas and oil.
  This is not the price Florida should pay. We should be debating here 
today raising fuel-efficiency standards, investing in research and 
development for the next generation of alternative and renewable 
energy. We should not be sacrificing the environment, the economy of 
the State of Florida for just a little oil and gas.
  This Congress missed a very important opportunity to strike the 
balance. I have introduced a bill here in Congress, it is the Permanent 
Protection For Florida Act, which would have allowed for oil and gas 
drilling safely off the coast of Florida, safely off the coast of the 
Panhandle. I went to the Rules Committee and suggested that this bill 
be made in order as an amendment. The majority refused.
  We need to strike a balance here, a balance between minimizing our 
dependency on foreign oil, using the resources we have, but protecting 
our resources. Florida's beaches are not just a State resource; they 
are a national resource, and they are a national treasure. They are 
part of who we are. And we will stand up and protect our environment, 
our economy, and our beaches.
  Until this Congress strikes the balance, I would urge the rejection 
of this bill.
  Mr. POMBO. Mr. Chairman, I yield 2 minutes to the gentleman from 
Florida (Mr. Putnam).
  Mr. PUTNAM. Mr. Chairman, I thank the gentleman for yielding.
  Much has been made about the role of Florida in this debate because 
Florida has been offered a tremendous opportunity to participate in 
this debate as a result of the leadership of Mr. Pombo and Mr. Jindal.
  There are things about this bill that give Florida protections she 
does not enjoy today. Currently, the entire east coast of Florida is 
unprotected. This bill protects it. Currently, the Keys are completely 
unprotected. This bill protects them.
  There are those who say that 100 miles is too close, who also 
cosponsored a bill in 1997 that would have allowed it right at 100 
miles. There are those who say that the legislature shouldn't have a 
say in what their State does or does not do, who proudly served in the 
legislature, many times in leadership positions.
  This is not a perfect bill. No bill that ever leaves here and heads 
to conference is. But it gives Florida protections she does not now 
enjoy. It gives Floridians control over Florida's coasts, where the 
chances of Florida having Florida's future in Florida's hands are 100 
percent as opposed to what they are in this Congress, where they make 
up 25 out of 435.
  It gives Floridians concrete proof, written-in-stone protection from 
our Department of Defense and the military mission line, thanks to the 
leadership of Mr. Young and Mr. Miller working with the committee to 
insert into this bill, along with Mr. Boyd, the definition of that 
military mission line, which now further aligns this House bill with 
our two Florida Senators' proposal.
  This is a huge step forward from where we are. And the bottom line in 
this debate is that if we do nothing, unlike most other issues that 
come before this House, if we do nothing, bad things do happen. Because 
the moratorium that Floridians have slept under the protection of for 
the last 25 years begins to expire as soon as 2007, and it continues on 
in the expiration into 2012 when drilling will be far closer to our 
coast than anyone wants in this Chamber.
  So I commend the gentleman for his leadership. I urge people to 
support the bill, I urge them to give every consideration to the 
Bilirakis amendment, and let us move this thing forward.
  Mr. RAHALL. Mr. Chairman, I yield 1 minute to the gentleman from 
California (Mr. Farr).
  Mr. FARR. I thank the gentleman for yielding.
  This bill is an ignorant bill. This bill is a greed bill. It ignores 
getting away

[[Page 13639]]

from the oil addiction. If oil is the street drug addiction, why at a 
time of energy independence are we increasing the addiction? You don't 
give alcoholics more alcohol to get them cured.
  It is a greed-producing bill. Mr. Markey pointed out that 80 percent 
of the drillable Federal land is already in the oil companies' hands.
  The bill steals State and local control. Why would the author go 
against his own State legislature, his own Governor, who opposes this 
legislation? Why would the President sign a bill such as this, which 
has a direct conflict with our own U.S. Commission on Ocean Policy 
which recommended that oil-gas leasing revenues be dedicated to ocean 
and coastal resources? There is no dedication in this bill.
  This bill is a financial and environmental disaster. A ``no'' vote 
allows improvement.
  Mr. POMBO. Mr. Chairman, I yield 1 minute to the gentleman from 
Nebraska (Mr. Osborne).
  Mr. OSBORNE. Mr. Chairman, most Americans believe that we need to 
increase our renewable fuels and decrease our dependency on foreign 
oil. And you may say, well, what does this have to do with the bill 
before us? The reason is that 30 to 50 percent of our corn crop is 
based on fertilizer. If you don't have fertilizer, it reduces 
dramatically the amount of corn you produce and the amount of ethanol.
  Last year, we produced 4 billion gallons of ethanol in the United 
States, and 1.6 billion was directly attributable to fertilizer. The 
problem is that you can't produce fertilizer if you don't have natural 
gas. We have some of the most expensive fertilizer in the world and the 
highest natural gas prices.
  We absolutely have to get this under control. We have tremendous 
supplies, but we can't get at them because of the regulations. So this 
makes sense for our economy, and it certainly makes sense for our 
farmers, our agriculture, and our renewable fuels.
  I urge support of this bill. It is absolutely essential for our 
economy that we take action at this time. I support H.R. 4761.
  Mr. RAHALL. Mr. Chairman, how much time remains on both sides?
  The CHAIRMAN. The gentleman from West Virginia has 8 minutes 
remaining, and the gentleman from California has 18 minutes remaining.
  Mr. RAHALL. Mr. Chairman, I yield 1 minute to the gentlewoman from 
Florida (Ms. Corrine Brown), who represents the coastlines of Florida.
  Ms. CORRINE BROWN of Florida. Mr. Chairman, during the State of the 
Union message, I thought I was having a flashback. I thought I was 
watching ``Dallas'' and J. R. Ewing was talking to us.
  But, no, I was actually listening to the President of the United 
States, George W. Bush; and he was saying that we were hooked on oil. 
Funny. We are hooked on oil. Yet that was the same day that oil 
companies announced the largest profit in the history of the United 
States, $39 billion.
  Yes, folks, we have got a problem, an energy problem. But let us not 
compound it by destroying Florida's coasts. In the past, the Florida 
delegation has always worked together, unified, to protect the coast of 
Florida. As former Governor and Senator Bob Graham used to say, if you 
live long enough, you will be a Floridian.
  Eighty percent of the Floridians do not support drilling off the 
coast of Florida. Vote ``no'' on this horrible bill.
  Mr. POMBO. Mr. Chairman, I yield 3 minutes to the gentleman from 
Louisiana (Mr. Melancon).
  Mr. MELANCON. Thank you, Mr. Pombo.
  Mr. Chairman, as I have expressed earlier and on numerous occasions, 
this oil and gas exploration is not what it was 50 years ago when it 
started offshore. Back then, yes, they discharged off the sides of the 
rigs. They didn't worry about the environment.
  In these days and times, not only is the technology so much better, 
but so is the enforcement of all the environmental laws. That includes 
offshore oil drilling.
  It has been a boon. And I tell my friends from Florida, you are 
putting artificial reefs out there that will bring fish. And if you 
think you have got tourists now and you think you have got good fishing 
now, these oil rigs will not hurt that whatsoever.
  I wish we had the beaches that you have. We don't. We have lost our 
beaches because through the years Louisiana has provided the oil and 
gas, approximately, these days, 30 percent of what is consumed by this 
Nation. And for decades we have received zero for our efforts on behalf 
of this country.
  After Katrina, after Rita, hundreds of square miles of Louisiana 
disappeared. It is gone. The only way we will ever be able to revive it 
or bring it back is to rebuild and restore our coastal marshes. Those 
coastal marshes are also responsible for about 25 percent of the 
seafood consumed in this country.
  That estuary, that marsh, that coastal land that we have lost, for 
years this Congress and previous administrations have put into bills 
``wants.'' Wants. We have been asking for years for help for things we 
need. And what we need is coastal protection. What we need is to 
preserve and bring back our coastal areas. What we need is barrier 
islands. What we need is to protect the Louisianans that produce the 
oil, the gas, and the fisheries for this country.
  I stand here today, as I have on all of my votes, and say that this 
bill provides for those States that do not wish to drill, that do not 
want to contribute to the national effort to make us energy 
independent. You have an option to not do that, and that is called 
States' rights. That is one of the strongest parts of this bill that I 
think solves, or should solve, the problem or the conscience of those 
people who represent Americans who aren't fed up yet with $3-plus gas, 
who aren't fed up yet with the cost of natural gas, and who, 
apparently, must not be reading the paper or watching TV, if there are 
any like that.

                              {time}  1545

  I am so glad to see that we brought this bill to the floor. It is 
historic, in my mind. Louisiana, ladies and gentlemen, has been waiting 
decades for this help.
  Mr. RAHALL. Mr. Chairman, since the time is so tilted, I would hope 
that my chairman from California would use more time before I yield my 
next amount of time.
  Before I do that, I do want to commend the gentleman from Louisiana 
who has just spoken. Although we deliver on this issue, he has done his 
State and his district superbly. He has been patient, persistent and 
has worked with me on this issue, as has the chairman, I might add. I 
do want to salute Mr. Melancon for the tremendous work and patience he 
has had on this legislation.
  Mr. POMBO. Mr. Chairman, I yield 4 minutes to the gentleman from 
Hawaii (Mr. Abercrombie).
  Mr. ABERCROMBIE. Mr. Chairman, it is an opportunity for me to thank 
those who helped put this legislation together. I don't want to engage 
in a refutation of what in some instances can only be termed 
accusations with respect to the bill. I don't want to reply in a manner 
which sets us up in a confrontational way but rather to try to put some 
perspective on this issue, as I see it, as a member of the Resources 
Committee. I would rather talk about what the bill does do, rather than 
what its inadequacies might be.
  I got started in this bill because of my response to the arguments 
made by Mr. Peterson in committee. We pay attention in committee. 
Committee hearings and briefings are what gives us the opportunity to 
educate ourselves, and that is where I came to the table.
  I didn't know enough about this issue, and I learned about it. What I 
discovered was, particularly where natural gas was concerned, that we 
needed to have it. Natural gas is the alternative energy available to 
us now. It is the bridge to the alternative energy future that we want.
  None of us are opposing any of the alternatives that have been put 
forward today. We are saying we have to get there. In order to do that, 
we have to recognize that lifting the moratorium on the Outer 
Continental Shelf is the way to do it. It can be done safely. It can be 
done responsibly.

[[Page 13640]]

  Issues have been made about revenue. You can't get any revenue when 
you don't have it coming in; 100 percent of nothing is nothing. Arguing 
about where the revenue is going to go, whether it is the States in 
some formula, whether it comes back to the Federal Government, as the 
Congressional Budget Office now argues the bill does, is something that 
we can address in time to come when this bill leaves the House and goes 
to the Senate and hopefully comes back for a conference.
  No one is dismissing any of the legitimate concerns that have been 
made by those who are now in opposition to the bill. We can take all 
those issues up.
  We have labor support now. Construction trades are for the bill, 
because we are going to create jobs.
  When we talk about revenue, numbers have been tossed around and up to 
today as high as $600 billion. That money is leaving the United States. 
That money is not here for investment in jobs in the future of our 
country.
  If that is in fact what is at stake, if those billions of dollars are 
at stake, let us put it together in a manner that keeps jobs and that 
money in this country. Let's seek energy independence in this Nation.
  The time for natural gas exploration and extrication of energy 
resources in the Outer Continental Shelf has come. Simply to cite 25 
years of saying no, no, no does not solve our problem.
  So I ask those who have some reservations about today's bill, move 
this bill forward. We will take up all the considerations that you have 
raised. Let's move to energy independence in this Nation. Let's move to 
a time when we can say that we met the responsibilities of our time.
  Mr. RAHALL. Mr. Chairman, I yield 1 minute to the gentleman from 
Oregon (Mr. Blumenauer).
  Mr. BLUMENAUER. Thank you.
  I appreciate the tone of my friend, the gentleman from Hawaii, but I 
think it is time for us, instead of having a collection of proposals 
that are basically an attractive grab bag politically engineered that 
has some attractive provisions, there is a provision in there that is 
very attractive to me that deals with rural education.
  I think it is important that, instead, we deal with this in a 
thoughtful, comprehensive fashion that doesn't entail the costs of 
hundreds of billions of dollars off the top, that doesn't have a lop-
sided process in favor of drilling pristine areas and biased against 
protection, making it harder to protect.
  There are technical items in here about calculation of oil shale 
royalties. These are provisions nobody in the House of Representatives 
fully understands. That bears more scrutiny.
  The notion of allowing oil equipment to remain out there in the ocean 
and not being removed under current law is not necessarily of an 
environmentally benign era. Environmentalists are very concerned. I 
would reject this politically engineered energy grab bag and work 
together on a policy that is safe, economical and will happen sooner.
  Mr. POMBO. Mr. Chairman, I yield 1\1/2\ minutes to the gentleman from 
Florida (Mr. Keller).
  Mr. KELLER. Mr. Chairman, I rise in strong support of this bill.
  Mr. Chairman, opposition to this bill on environmental grounds cannot 
be justified.
  First, the industry safety record for exploration is impressive. For 
example, oil rigs in the western half of the Gulf of Mexico endured 
Hurricane Katrina without any spills.
  Second, according to the Washington Post editorial board, not 
allowing any drilling whatsoever past the 100-mile mark may increase 
the danger of oil spills, because it means more incoming traffic from 
oil tankers, which are riskier than oil rigs. As you recall, the Exxon 
Valdez accident was an oil tanker, not an oil rig.
  It is for these reasons, among others, that Governor Jeb Bush of 
Florida has endorsed this bill, as has the Washington Post editorial 
board. I urge my colleagues to vote yes on this legislation.
  Mr. RAHALL. May I have the time again, please?
  The CHAIRMAN. The gentleman from Virginia has 6 minutes remaining. 
The gentleman from California has 10\1/2\ minutes.
  Mr. RAHALL. Mr. Chairman, I yield 1\1/2\ minutes to the gentleman 
from Maryland (Mr. Bartlett).
  Mr. BARTLETT of Maryland. Mr. Chairman, today oil is above $70 a 
barrel. The world has either peaked or will very shortly peak in oil 
production. We will, of necessity, have to transition to renewables.
  I am not going to vote for any drilling anywhere until we have a 
rational plan for transitioning to renewables. We have now run out of 
time and run out of energy. Additional drilling will buy us a little 
time to give us a little energy, but I will not vote for that until we 
have a rational plan.
  Secondly, Mr. Chairman, we are now leaving our kids the largest 
inter-
generational debt transfer in the history of the world. In all 
conscience, can we also deny them the oil and the gas that they are 
going to need for their civilization?
  There is a true moral element to this. I have 10 kids, 15 grandkids 
and two great grandchildren. I want to leave them a little oil, please. 
Vote ``no.''
  Mr. POMBO. Mr. Chairman, I yield 5 minutes to one of the chief 
authors of the legislation, the gentleman from Pennsylvania (Mr. 
Peterson).
  Mr. PETERSON of Pennsylvania. I thank the gentleman. I want to thank 
him for all of his work, and I want to thank all involved in the staff, 
because this is not an easy process, but it is one that I think has 
brought us to this position.
  Mr. Chairman, what we are talking about today is helping America 
compete for the first time in the history of this country. We are not 
the only big dog in the world. We must compete with the Chinas, the 
Taiwans, Indias, who have a plan to take every business that 
manufactures and produces away from us.
  Our steel companies have the highest energy prices in the world 
because we have the highest gas prices. Our wood and paper product 
companies have the highest energy costs in the world because of our 
natural gas prices. Polymers and plastics not only use a lot of energy, 
but a lot of energy is consumed in the making of it. Petrochemicals, 55 
percent of their cost is natural gas, and in America they pay the 
highest price in the world. Why? Because we locked it up.
  We don't want to drill for it. That is the only way you produce 
natural gas, is to drill a hole in the ground, put a steel pipe in, and 
let a harmless gas out that is one of the most valuable commodities in 
the world.
  Fifty percent of our fertilizer companies are now on foreign shores. 
We will soon have none, and our farmers will rely on Russian 
fertilizer, if they can get it and they can afford it, to grow the corn 
to make the ethanol.
  I talked to a big glass company in Pittsburgh, PPG. He said, I want 
to stay here, I want to be in Pittsburgh, but I can't compete.
  Last year's natural gas prices averaged $9.50. Five years ago, they 
were $2. That is a five-fold increase. Those are wholesale prices. This 
is not about oil companies. This is about America competing. This is 
about homeowners being able to heat their homes. It is about small 
businesses who consume a lot of energy to stay in business and make a 
profit. It is about the blue collar workers that we ought to be 
protecting and representing in this country, the blue collar workers 
that want to raise their families and have a decent vehicle and send 
their kids to college.
  Someone said this is a budget breaker. For every $10 billion that 
comes in, $5.8 billion will stay in the Treasury. How is that a budget 
breaker? Every $10 billion, $5.8 billion, they are talking about that 
because the environmental argument doesn't wash. If our shores are 
threatened, I wouldn't support this bill.
  I have enjoyed the Florida beaches and the North Carolina and South 
Carolina beaches as much as anyone. Folks, they have been producing on 
the Outer Continental Shelf in Canada forever. They have drilled in 
Lake Erie, gas only, since 1916. Twenty-some hundred wells they drill 
every summer.

[[Page 13641]]

  Ireland has good beaches; Norway, an environmental country; UK, 
Netherlands, Scotland, New Zealand, Australia. Folks, we are the only 
society that has said we are going to lock up our resources. We are 
going to buy them from foreign countries. We are going to buy them from 
countries that don't support us. We are going to pay high prices. We 
are going to enrich them so that they can own us. That is the path we 
are on.
  I am for renewables. Natural gas is the bridge to renewables. Natural 
gas is a forerunner to hydrogen. The hydrogen cars will have a natural 
gas tank. One-third of our auto fleet could be on natural gas at these 
prices, and we could move almost 3 million barrels a day.
  Folks, this is about America competing. For the first time, we have 
countries who can clean our clock economically, and they are trying to. 
Are we going to give them an energy advantage? Are we going to give our 
jobs to China and Taiwan, hand it to them, because energy is a third 
there of what it is here, Russia a fraction, South America, 1.5? We 
will be buying our bricks and glass from Trinidad.
  Folks, this is about workers in America who want to have a good job, 
and affordable energy is the best thing we can do for them.
  Mr. RAHALL. Mr. Chairman, I yield 1 minute to the distinguished 
gentleman from Florida (Mr. Meek).
  Mr. MEEK. Mr. Chairman, I guess I want to quickly say that as someone 
that is from Florida, that does know something about coastline and 
intracoastal and who does know something about the economy that we 
count on in Florida, we have people who travel throughout this world 
who come and spend their dollars in this United States because this 
Congress and the United States of America protected our beaches over 
the years.
  Now we know that oil companies are very, very pushy right now, and 
they want all that they can get right now, in the moment. But, you 
know, the thing may change respectively in another 2 or 3 months. This 
wouldn't even be a discussion.

                              {time}  1600

  We are in Florida. We are asking for no drilling whatsoever. We are 
asking for alternative fuels and real investment and making sure that 
we have flex vehicles, making sure that we can go on ethanol, making 
sure that we can invest in the heartland and the Midwest versus the 
Middle East.
  We are all for energy independence, but I can tell you, not on the 
backs of our environment, not on the backs of our economy, not on the 
backs of individuals that have fought before us in this House of making 
sure that we can at least keep some of our beaches oil free and not 
have what some would want us to have as it relates to special 
interests.
  I respect the Members on the other side of this issue, Mr. Chairman, 
but I think it is important for us to realize that it is not worth 
going into these sensitive areas.
  Mr. RAHALL. Mr. Chairman, I yield the remainder of my time to the 
gentleman from Massachusetts (Mr. Markey), a very valuable member of 
our Resources Committee, and the ranking member on the Financial 
Services Committee.
  Mr. MARKEY. Mr. Chairman, right now in America, 80 percent of all of 
the Outer Continental Shelf area where the oil and gas is already open 
to the oil and gas industry. The only thing that has stopped the oil 
and gas industry from going to much of the area in the Outer 
Continental Shelf where 80 percent of the oil and gas is, which we all 
agree they should be able to go to, today, under the law, with no 
changes, is that the price of oil was $30 a barrel. But at $70 a 
barrel, Shell and Exxon-Mobil are going there. So what is the debate 
about? Well, yeah, I don't want them drilling off of Massachusetts, in 
Georgia's bank, and the Floridians don't want them off their shore. But 
that is really not what it is all about.
  Right now, according to the Minerals Management Service, we can 
expect $600 billion to go to the Federal Government for drilling right 
down here in Federal land on land which is already open to the oil 
companies. And that $600 billion is used and will be used to pay for 
our troops in Iraq, to pay for the education of poor children, to 
ensure that we can pay for Medicare benefits for senior citizens.
  But what the majority is doing, what the Republican administration is 
doing is they are going to take that $600 billion that would have gone 
to the Federal Government, and they are moving it down here where only 
four States are going to get the benefit of it. Only those four States 
are going to be the beneficiaries.
  Now, if you come from one of those four States, Texas, Louisiana, 
Mississippi or Alabama, you vote for this bill and put out a press 
release tonight. You tell everyone back in your districts in those four 
States, we were able to convince the United States Congress to give us 
$600 billion today.
  And by the way, Huey Long used to say, ``every man a king.'' Well, 
every man and woman will be a king in Louisiana after this. And God 
bless them if they can pull it off today.
  This is the king of all earmarks. It will take 200 amendments a day 
from Mr. Flake for the next 50 years to get back this $600 billion. And 
the Republicans, of course, will oppose the cuts that he will propose 
out here on the House floor as well. So that is what it is all about.
  It is about this shifting of money from all of the red States, 46 
States, down to four States. And that is the game that is going on, 
because the oil industry is already drilling in the Gulf on Federal 
lands that we all agree they should go to today. And that is why the 
Minerals Management Service, the Bush administration says that $600 
billion will be lost to the Federal Treasury because over 80 percent of 
all of the revenues that are going to be generated from this proposal 
will go there.
  And so, ladies and gentlemen, if you are out there listening, this 
is, without question, also, nothing that can happen in your State that 
will make up for the loss of this $600 billion. If this was any other 
bill, we would be having a huge fight over what the formula should be 
for who gets this money. But instead, in one fell swoop, the 
Republicans are moving $600 billion from 46 States into four States.
  Do not vote for this bill. This is a fiscal disaster. This money 
should remain in the budget for the troops in Iraq. It should remain in 
the budget for Medicare recipients. It should remain in the budget for 
the poor children of our country.
  Mr. POMBO. Mr. Chairman, I yield myself the balance of our time.
  Well, it unfortunately hasn't been that enlightening of a debate 
because we have had a number of people come to the floor and debate 
things that either weren't in the bill or had nothing to do with the 
bill. Fortunately, they decided to close with Mr. Markey, who debated 
something that had nothing to do with our bill, which happens.
  The truth of the matter is, when it comes to the cost of the bill, it 
is a net revenue increase to the Federal Government, $2.3 billion over 
5 years, $900 million over 10 years. That is what the bill does. So all 
the numbers you heard about, 600 billion, 800 billion, how many 
trillion, they pulled them out of the air. The CBO score on the bill is 
$2.3 billion over 5 years in increased revenue to the Federal 
Government.
  We also heard that 80 percent of the OCS is already leased. Eighty 
percent. That is strange because 85 percent of it is off limits. Eighty 
percent of it is off limits. And yet they claim 80 percent of it is 
already leased.
  Talk about fuzzy numbers? That is about as fuzzy as it gets.
  We also heard somebody come down here a little while ago, and I love 
this, oh, we are going to cure it with CAFE standards. We are going to 
raise CAFE standards. That is how we are going to cure our energy 
problems.
  Let me let you in on a dirty little secret on CAFE standards. U.S. 
auto makers manufacture cars today that get 35, 40, 50 miles to the 
gallon. What they want to mandate is not that car companies make cars 
that get 50 miles to the gallon. They want to mandate that you have to 
buy them. They want to mandate that their constituents have to buy 
those cars because they

[[Page 13642]]

are available today and they are not buying them. So they want to force 
them down your throat because you won't buy them.
  Let's talk about energy policy. You know what our energy policy is in 
this country? Our energy policy is no, we are not going to develop 
domestic energy, period.
  For 30 years, we have had the same people coming down here making the 
same arguments as to why we can't develop a domestic energy source. And 
it doesn't matter if it is natural gas or oil or hydro or solar or wind 
or what it is. It makes no difference. They are still a no. There is 
always a reason to be no.
  We had the Alaskan National Wildlife Refuge, and they vote ``no.''
  We had a bill last year on the floor that expanded wind, solar, 
geothermal. They voted ``no.'' We have had the opportunity five times 
to vote on an energy bill that put money into alternative energy, 
renewable energy, conservation, and they voted ``no.'' No, no, no. No 
domestic energy, nothing for our constituents, for our businesses, for 
our economy.
  And what was the result of all of that? The result is that in the 
early 1970s and the mid-1970s, when we had our first energy crisis and 
OPEC cut us off and we had gas lines, we were dependent on foreign 
energy for 33 percent of our energy. In their 30 years of policy, today 
we depend on foreign countries for 66 percent of our energy.
  You can't be no on everything. Everything that has been proposed, no 
matter what it was, the answer was no.
  Now, you might think, well, they must have an alternative. There must 
be something else they want to do. Well, maybe it is, but they have 
failed to tell anybody, because they oppose everything.
  This bill was a compromise. This bill was a compromise between the 24 
different bills that have been introduced in this Congress alone on 
offshore gas development, oil and gas development. Twenty-four bills. 
The two major bills, one was introduced by Mr. Peterson and Mr. 
Abercrombie, and it dealt mainly with natural gas. The other one by Mr. 
Melancon and Mr. Jindal. And we sat down and we tried to work out the 
differences between those bills.
  And, obviously, the coastal States have something to say about what 
happens off their coasts. I don't care how many times you come down 
here and rant and rave, the coastal States have something to say about 
what happens on their coasts. And we had to include them in this. We 
had to include them in the negotiations and them in the debate.
  And the decision was made that for the first time in our history that 
we would give the States, the coastal States, the ability to protect 
100 miles off their coast. It would be up to the State legislature and 
the Governor for whether or not they wanted any kind of development. If 
they chose not to, they wouldn't get it. If they chose they want it, 
then it would be, the opportunity would be there for them to do it. And 
if they chose to, they would share in the revenue, exactly the way we 
do on onshore public lands. Exactly the same way.
  I am telling you, it is time to stop saying no. It is time to move 
forward with energy policy that makes sense for all of America, not 
just a small group of special interests who want to destroy our 
economy.
  Mr. STARK. Mr. Chairman, even if I supported offshore drilling--which 
I don't--I certainly wouldn't do it through this fiscally reckless and 
convoluted bill.
  The Domestic Energy Production through Offshore Exploration and 
Equitable Treatment of State Holdings Act makes it far easier for 
states to allow drilling than to prevent it. It bribes states into 
allowing offshore drilling by increasing their share of royalties from 
27 percent to 50 percent, at a cost to the federal government of $600 
billion over 60 years. If a state takes no action to facilitate natural 
gas drilling in the immediate year or oil drilling in the next three 
years, then this law would open its waters for drilling. In order to 
maintain a moratorium on drilling, a state legislature would have to 
vote to prohibit drilling every five years. How many states will be 
able to resist billions of dollars in exchange for doing nothing?
  H.R. 4761 also guts the environmental review process and makes all 
other uses of the Outer Continental Shelf subordinate to drilling, even 
in states than continue to ban drilling. According to the bill, ''No 
Federal agency may permit construction or operation of any facility, 
that will be incompatible with. . . oil and gas or natural gas 
leasing.'' So if your state wants to operate a marine sanctuary, it 
better pass the Pombo oil compatibility test.
  All this, and for what? Drilling is already allowed in areas that 
have 80 percent of offshore oil and natural gas reserves. This bill 
simultaneously endangers our coasts and delays an urgently needed 
transformation to a clean energy economy. I vote no to yet another 
Republican attempt to maintain our oil addiction.
  Mr. LINCOLN DIAZ-BALART of Florida. Mr. Chairman, because I firmly 
oppose drilling for oil off the coasts of Florida, I believe that it is 
critical that a permanent, state-controlled ban on drilling around the 
entire state becomes law as soon as possible. This is why I believe the 
Pombo-Putnam compromise in H.R. 4761, the Domestic Energy Production 
through Offshore Exploration and Equitable Treatment of State Holdings 
Act of 2006, is essential in order to protect Florida's beaches.
  The Pombo-Putnam compromise would allow Florida to prohibit drilling 
for 100 miles. In negotiations with the legislation's authors and in 
the House Rules Committee, I worked to further protect Florida's 
environmental treasures. As successfully amended, the compromise would 
also codify the ban on drilling within the ``military mission line''--
approximately 234 miles from Tampa--to provide even more protection for 
Florida's west coast.
  This plan, in many ways, is better than a bill that the Florida 
delegation almost unanimously cosponsored in 1997. That bipartisan 
legislation sought to prohibit any leasing or drilling within 100 miles 
of Florida's coasts, but did not include the added protection provided 
by the ``military mission line.'' It also lacked the factor of state 
control of the drilling issue. Former Governor Lawton Chiles also 
supported, in writing, a 100-mile ban on drilling.
  Presently, Florida's only protections against offshore oil drilling 
reside with an expiring presidential promise (known as the 
``moratoria'') and a year-to-year appropriations limitation amendment--
a technical legislative maneuver that prohibits Federal funds from 
being used to conduct offshore leasing.
  The stark reality Florida faces is not only the expiring 
``moratoria,'' but also a strong push in Congress to allow drilling as 
close as 20 miles from our shores. On May 18 of this year, the House 
passed an amendment by a close 217-203 vote to prevent drilling as 
close as three miles from Florida's east coast and nine miles from 
Florida's west coast. Eight cosponsors of a bill (H.R. 4318) to allow 
drilling just 20 miles off Florida's coasts voted for this amendment 
because they felt that three miles was just too close. Had those eight 
cosponsors voted against that amendment, the vote would have been lost 
211-209, and drilling would have been allowed as close as three miles 
from Florida's coast. Although they voted for this particular 
amendment, our colleagues assured us that they would vote in favor of 
legislation to allow drilling at 20 miles. Instead of relying on votes 
from over 400 Congressmen from outside of Florida, I support placing 
the fate of Florida's beaches in the hands of Floridians.
  In 2005, Congressional passage of a plan was possible that would have 
permanently banned drilling within 125 miles of our beaches. On June 
29, 2006, we learned, by a vote of 65 to 353, that a majority in 
Congress no longer supports a 125-mile ban. Last year's offer of 125 
miles has now been reduced to 100 miles from our coastline. The next 
step could very well be a horrible 20 miles. As a strong opponent of 
drilling, I believe that our window of opportunity in Congress for a 
permanent ban on offshore drilling is closing. This is why I support 
the Pombo-Putnam compromise.
  Mr. MARIO DIAZ-BALART of Florida. Mr. Chairman, because I firmly 
oppose drilling for oil off the coasts of Florida, I believe that it is 
critical that a permanent, State-controlled ban on drilling around the 
entire state becomes law a soon as possible. This is why I believe the 
Pombo-Putnam compromise in H.R. 4761, the Domestic Energy Production 
Through Offshore Exploration and Equitable Treatment of State Holdings 
Act of 2006, is essential in order to protect Florida's beaches.
  The Pombo-Putnam compromise would allow Florida to prohibit drilling 
for 100 miles. In negotiations with the legislation's authors and in 
the House Rules Committee, I worked to further protect Florida's 
environmental treasures. As successfully amended, the compromise would 
also codify the ban on drilling within the ``military mission line''--
approximately 234 miles from Tampa--to provide even more protection for 
Florida's west coast.
  This plan, in many ways, is better than a bill that the Florida 
delegation almost unanimously

[[Page 13643]]

cosponsored in 1997. That bipartisan legislation sought to prohibit any 
leasing or drilling within 100 miles of Florida's coasts, but did not 
include the added protection provided by the ``military mission line.'' 
It also lacked the factor of State control of the drilling issue. 
Former Governor Lawton Chiles also supported, in writing, a 100-mile 
ban on drilling.
  Presently, Florida's only protections against offshore oil drilling 
reside with an expiring Presidential promise (known as the 
``moratoria'') and a year-to-year appropriations limitation amendment--
a technical legislative maneuver that prohibits Federal funds from 
being used to conduct offshore leasing.
  The stark reality Florida faces is not only the expiring 
``moratoria,'' but also a strong push in Congress to allow drilling as 
close as 20 miles from our shores. On May 18 of this year, the House 
passed an amendment by a close 217-203 vote to prevent drilling as 
close as 3 miles from Florida's east coast and 9 miles from Florida's 
west coast. Eight cosponsors of a bill (H.R. 4318) to allow drilling 
just 20 miles off Florida's coasts voted for this amendment because 
they felt that 3 miles was just too close. Had those eight cosponsors 
voted against that amendment, the vote would have been lost 211-209, 
and drilling would have been allowed as close as 3 miles from Florida's 
coast. Although they voted for this particular amendment, our 
colleagues assured us that they would vote in favor of legislation to 
allow drilling at 20 miles. Instead of relying on votes from over 400 
Congressmen from outside of Florida, I support placing the fate of 
Florida's beaches in the hands of Floridians.
  In 2005, congressional passage of a plan was possible that would have 
permanently banned drilling within 125 miles of our beaches. On June 
29, 2006, we learned, by a vote of 65 to 353, that a majority in 
Congress no longer supports a 125-mile ban. Last year's offer of 125 
miles has now been reduced to 100 miles from our coastline. The next 
step could very well be a horrible 20 miles. As a strong opponent of 
drilling, I believe that our window of opportunity in Congress for a 
permanent ban on offshore drilling is closing. This is why I support 
the Pombo-Putnam compromise.
  Mr. UDALL of Colorado. I agree with President Bush that an America 
now ``addicted to oil'' needs to reduce its dependency on petroleum and 
other fossil fuels.
  And as a chair of the Renewable Energy and Energy Efficiency Caucus, 
I strongly support legislation aimed at achieving that goal, including 
greater investments in renewable energy sources (such as wind, sun, and 
biofuels) that also will boost our economy, create jobs, and revitalize 
rural communities.
  Still, some additional development of the oil and gas resources of 
the Outer Continental Shelf (OCS) would be desirable to help meet our 
immediate needs, and I could support appropriate legislation to achieve 
that result.
  Unfortunately, I do not think this bill is appropriate, and I cannot 
support it as it stands.
  The bill's provisions dealing with the OCS are excessively 
complicated and costly, and the bill also includes a plethora of 
unrelated and unnecessary provisions, including changes in the rules 
for onshore leases and a section dealing with oil shale royalties that 
I think is particularly troublesome.
  In the Resources Committee, I offered an amendment that would have 
made this a much simpler bill. It would have deleted all the 
complicated provisions dealing with State legislation, different rules 
for different parts of the offshore lands, and the disposition of 
Federal revenues--not to mention the section about oil shale. It would 
have replaced all that with a short and simple requirement for the 
Interior Department to lease within a year the lands within the so-
called ``181 Area'' in the Gulf of Mexico.
  My amendment was essentially identical to a bill--S. 2253--introduced 
by Senators Domenici and Bingaman with 28 cosponsors, from both sides 
of the aisle and already approved by the Senate's Committee on Energy 
and Natural Resources by a bipartisan vote of 16 to 5. Its groundwork 
has been laid by the Department of the Interior over a number of years, 
including completion of environmental reviews and consultation with 
coastal States and the public.
  The amendment would have put only two limits on the requirement for 
leasing the 181 area.
  First, it said that one part--the part east of a ``military mission 
line''--could only be leased if the Defense Department had agreed in 
advance that development there can be done without interfering with 
military activities. That responded to issues raised by Secretary 
Rumsfeld last year in a letter to the Senate's Armed Services 
Committee.
  And, second, the amendment said there could be no leasing within 100 
miles of the Florida coastline. That, of course, responded to concerns 
about potential adverse effects on that State's coastal areas.
  According to the Mineral Management Service, the whole 181 area has 
about 930 million barrels of recoverable oil and more than 6 trillion 
cubic feet of recoverable natural gas. And the same agency's numbers 
show that even if the Defense Department were to say there would be no 
leasing east of the military mission line, there would still be about 
800 million barrels of recoverable oil and nearly 5 trillion cubic feet 
of recoverable natural gas in the rest of the 181 area. Thus, my 
amendment would have cleared the way for rapid development of 
significant new supplies of energy. And it would have done so without 
the complications that caused the Administration to testify that they 
have ``serious concerns'' about the bill as it stands.
  If our goal is to get more energy from offshore areas, I think it 
would make more sense to start with simple and straightforward 
legislation that's based on sound science and that has some strong 
support, including from a significant number of our colleagues in the 
other body.
  My amendment followed that approach--but, unfortunately, the 
committee did not adopt it.
  As a result, we must vote today on this seriously flawed bill which, 
according to the Congressional Budget Office, will ``increase net 
direct spending by about $900 million in 2007, $3.2 billion over the 
2007-2011 period, and $11.0 billion over the 2007-2016 period.''
  Those are sobering numbers. And even if the bill is revised along the 
lines proposed by some of its supporters, I expect any change in that 
estimate to be marginal, and will have no significant effect on the 
bottom line. I am not ready to support increased mandatory spending on 
the scale that will result from this bill while our country is at war 
and we are running persistent budget deficits that must be financed by 
increases in the national debt our children will be required to repay 
with interest.
  And I think if anything CBO underestimates the potential costs of 
this bill to the taxpayers, because their estimate does not discuss all 
of the provisions not directly related to offshore leasing.
  For example, while the estimate does discuss section 17's requirement 
that the Interior Department comply with lessees' requests for the 
government to repurchase and cancel leases (and compensate their 
holders) under certain circumstances, it does not note that the chances 
of such required payments are increased by section 19, which would 
impose a series of tight deadlines which the Interior Department must 
meet if it is to avoid a demand for compensation.
  It could be that CBO isn't able to estimate how much money that might 
cost--and, even if they could, that estimate would not include other 
costs, including the likelihood that the deadlines will lead the 
Interior Department to put so much emphasis on speed that they will be 
less careful in the way they assess potential problems and will not 
ensure appropriate steps to mitigate those problems. This would not be 
good for the owners of private surface properties underlain by Federal 
minerals, for affected communities, or for the environment.
  Further, the estimate does not even mention section 24, which would 
prohibit the Department of the Interior from adjusting the fees it 
charges for actions related to mineral leases. This applies to both 
offshore and onshore leases, and could result in requiring the 
taxpayers to shoulder the burden of paying for things that otherwise 
would be the responsibility of the mineral lessees.
  And, CBO says nothing about Section 29, which deals with oil shale.
  Colorado has lots of oil shale, so we have a special interest in the 
subject. But it's important for the whole country, as an energy 
resource, and it's important to all taxpayers because most of it, as 
Federal property, belongs to them.
  That means that all the taxpayers have an interest in how it is 
developed and what return they the taxpayers, will get for this 
resource. And both those interests--in oil shale as an energy source 
and in fair treatment for the taxpayers--are reflected in current law.
  Specifically, section 369(o) of the 2005 Energy Policy Act says the 
Secretary of the Interior will set royalties and other payments for oil 
shale leases at levels that will do two things--first, ``encourage 
development'' of oil shale; and, second, ``ensure a fair return to the 
United States,'' meaning to the taxpayers.
  I was not a big fan of most parts of last year's energy bill, but I 
think that provision is good policy. So, I am troubled that part of 
section 29 of this bill would repeal it and replace it with what can 
only be described as legislative price fixing.
  The relevant part of section 29 starts by telling the Secretary of 
the Interior to ``model'' tar sand and oil shale royalties on the 
royalty program now used in one Canadian province. But

[[Page 13644]]

then it goes on to say that the Secretary would have to reduce the 
actual rates in accordance with ``a sliding scale'' based on a 
complicated formula based on the monthly average price of ``NYMEX West 
Texas Intermediate crude oil at Cushing, Oklahoma.''
  I'm not an expert on oil prices, but it's easy to understand what is 
involved here. It's Congressional micromanagement in the form of 
legislating a formula for royalty rates.
  It's an attempt to have Congress--not the Secretary--decide a very 
technical issue that could affect a lot of money. And it's the kind of 
thing that should raise suspicions in anybody who cares about making 
sure the taxpayers get a fair shake, especially because the supporters 
of the bill have made it clear that they put more emphasis on 
encouraging production than on ensuring that the Federal Government--
and the local Governments with whom the revenues are to be shared--will 
get a fair return.
  As the Interior Department proceeds to implement the current law, 
there will be ample opportunity for all of us to weigh in if we think 
the Secretary is not doing a good job in setting royalty rates. In the 
meantime, I think Congress should not try to set the rate through 
legislation.
  That was why I opposed including a similar provision in the 
reconciliation legislation when the Resources Committee debated it 
earlier this year, and why I was glad when it was finally dropped from 
that legislation. But, like a bad penny, it turned up again in this 
bill--and is still the same bad idea as before.
  So, in committee I offered an amendment to strike this attempt at 
long-term political price-fixing, and to replace it with the language 
of the current law that says the Secretary is to set royalties that 
will encourage development and ensure a fair return to the taxpayer. 
Unfortunately, that amendment was not adopted, either, which is another 
reason I cannot support the bill.
  In fairness, I should note that the bill does include some worthwhile 
provisions. One example is the provisions aimed at closing OCS royalty-
rate loopholes that have unduly reduced the return to the taxpayers. 
Another is section 23, which deals with support for accredited 
petroleum and mining schools, applied geology and geophysics programs, 
and individuals pursuing degrees in petroleum and mining engineering 
and related subjects.
  Overall, though, the bill's good parts are so outweighed by its 
defects that I cannot support it.
  Mr. VAN HOLLEN. Mr. Chairman, I rise today in opposition to H.R. 
4761, the Offshore Drilling bill. I do so not because I am 
categorically opposed to expanding the scope of offshore drilling, but 
because I believe this bill does so in an irresponsible fashion. As 
proponents of the bill have correctly stated, Canada and Norway have 
both allowed offshore drilling in an environmentally sound manner. In 
particular, I believe we can increase our supply of clean natural gas 
through expanded offshore drilling. This bill, however, would create a 
blank check for oil and gas drilling without adequate oversight and 
environmental safeguards.
  Moreover, this bill diverts much-needed funds from the Federal 
Government to the States and creates hurdles for States that would 
prefer to opt-out of costal drilling. In order to create incentives for 
states to approve offshore drilling, the bill would divert money from 
leases in Federal waters to States. This includes existing leases that 
are currently generating Federal revenue. This loss of funds would only 
increase our ballooning deficit. As the Bush Administration itself has 
reported to Congress, this bill will reduce Federal revenue from oil 
leases by several hundred billion dollars in the years ahead.
  The bill's proponents claim that states can choose not to drill off 
their shores. But the hurdles it creates makes opting out difficult. In 
order to protect their waters from drilling within 50 to 100 miles, 
governors would have to get the concurrence of their State legislatures 
within one year to petition the Department of the Interior to prevent 
natural gas only leasing, and within three years to prevent oil 
leasing. States must re-petition every five years to maintain the 
protections. And the legislation entices states to drill within 50 
miles of the coastline by offering between 50 and 75 percent of the 
revenues if they opt-in. With such an incentive, valid environmental 
concerns may easily lose to fiscal ones.
  Mr. Speaker, we must to take action to develop a comprehensive energy 
strategy. That requires a policy that includes energy supply, energy 
efficiency, and energy conservation. We can increase our domestic 
production of oil and gas through responsible offshore drilling. This 
bill does not do that. Moreover, this bill does nothing to promote 
renewable sources of energy that are critical to reducing our 
dependence on foreign oil and fossil fuels. We must adopt a 
comprehensive long-term energy policy in order to achieve important 
national security, environmental and economic objectives. 
Unfortunately, this bill represents a lost opportunity to meet these 
goals.
  Mr. SHIMKUS. Mr. Chairman, more than 80 percent of the area in the 
Outer Continental Shelf is off-limits to energy development, while the 
Department of Energy estimates that maintaining U.S. economic growth 
through 2025 will require a 40 percent increase in natural gas.
  I rise in support of H.R. 4716, the Deep Ocean Energy Resources Act--
a vote for H.R. 4761 is a vote for agriculture. Currently, natural gas 
makes up 90 percent of the production cost of anhydrous ammonia, a 
nitrogen fertilizer and the chemical building block for all other 
nitrogen fertilizer products.
  Nitrogen fertilizer is used on all crops produced in this country, 
but it is a key plant nutrient to produce corn a critical crop to 
Illinois farmers.
  Since 2002, thirty-six percent of the U.S. nitrogen fertilizer 
industry has been shut down or slowed. This loss of U.S. production has 
had a significant impact on the American farmer. The continued loss of 
production from the domestic nitrogen industry would force U.S. farmers 
to rely on a highly uncertain and highly volatile world market with no 
assurance that they will be able to obtain enough product to meet their 
full demand.
  This is particularly important when considering the importance of 
nitrogen to farmers. For example, according to the University of 
Illinois, 30-50 percent of corn yields can be directly attributed to 
nitrogen fertilizer.
  Farm input prices have not gone down but have escalated at a record 
pace. Nitrogen prices have climbed over 80 percent during this time 
period resulting in over a 50 percent increase in a typical corn 
farmer's fertilizer bill.
  Just as disturbing, since 2003--Illinois has lost more than 56,000 
manufacturing jobs. Natural gas availability and skyrocketing price 
increases the cost of doing business and hurt the ability of Illinois 
manufacturers to compete in the global economy.
  New supply of natural gas from the Outer Continental Shelf is needed 
to give U.S. agriculture and manufacturing sectors access to affordable 
and reliable sources of fertilizer and energy. Please support H.R. 4761 
to ease the burden on U.S. farmers. A vote for H.R. 4761 is a vote for 
agriculture.
  Mr. SHAYS. Mr. Chairman, I rise in opposition of H.R. 4761, which 
would open the entire Outer Continental Shelf to drilling for both oil 
and gas. Before looking to open up more area for drilling, we need to 
develop a comprehensive energy policy that emphasizes conservation, as 
well as increasing our supply with renewable and nonrenewable energy 
resources.
  We need to increase our supply of energy, but it is imperative we 
first take bold action to reduce our demand for oil. This legislation 
takes the wrong approach to our energy policy by not challenging 
Americans to use energy in more responsible ways.
  The bottom line is we are not resolving our energy needs because we 
are not conserving. We'll just continue to consume more and waste more, 
consume more and waste more, and act like it doesn't matter. We are on 
a demand course that is simply unsustainable.
  Drilling is the wrong answer to the right question of how do we meet 
our energy needs? Before we increase our supply of energy, we must 
first take control of our over-consumption.
  Mr. PETRI. Mr. Chairman, today I am voting for the Deep Ocean Energy 
Resources Act; however, I do so with reservations.
  I agree that we need to end our dependence on foreign oil, and I 
believe that this legislation will benefit our economy by increasing 
domestic energy supply and creating American jobs. However, I am 
concerned with a number of provisions in the bill. In particular, I am 
concerned about the overly generous revenue sharing provisions that 
direct money away from the federal treasury to coastal states. I know 
improvements have been made in the manager's amendment adopted today, 
but I hope we continue to discuss the proper balance between the state 
and federal share of revenues generated from a federal asset.
  I also have reservations about the potential for this legislation to 
weaken federal environmental laws. Finally, I have concerns with the 
power we are giving states over waters as far as 200 miles off their 
coasts. What coordination is there with the federal government in terms 
of jurisdiction over these waters, such as impacts on shipping lanes 
and other national or international priorities?
  I believe that in order to truly end our dependence on foreign oil we 
need to pass legislation that promotes conservation and alternative 
energy sources, and increases domestic production in a manner that 
limits the potential for damage to our invaluable coastlines,

[[Page 13645]]

national parks, forests, and other natural resources.
  My vote today is a vote to move this process along, but I hope any 
conference report or final bill brought before us will address these 
concerns and my vote on a bill going to the President will be based on 
how these issues are resolved.
  Mr. CONYERS. Mr. Chairman, I rise in strong opposition to H.R. 4761. 
Once again, Congress wants to give a handout to Big Oil and jeopardize 
the environment instead of working for an energy policy that would 
benefit all Americans. The oil companies and their Republican partners 
in Congress are seeking to exploit our concern over high oil prices to 
force through a controversial, destructive, ill-conceived measure.
  This legislation will allow big oil and gas companies to profit by 
bribing coastal states to lift their drilling bans with the promise of 
quick cash in the form of royalties. H.R. 4761 would make these monies 
available by shifting off-shore drilling royalties from the federal 
government to the states. The Bush Administration's own Minerals and 
Management Service (MMS) has estimated that this bill could cost the 
federal government $600 billion in lost royalty revenues over the next 
sixty years. The only reason we're even able to consider this bill is 
because the Republicans waived the rules that normally protect the 
taxpayers from deficit spending and new entitlements.
  Of course, states that choose not to open their coasts to drilling 
would receive no royalties. But, Mr. Chairman, oil spills do not 
respect political boundaries. An offshore spill from one state could 
easily cripple the coastal economies of its neighbors. Those states 
that choose to protect their sensitive shorelines from drilling would 
still have to face the consequences of their neighboring state's 
decision to allow the oil companies in.
  The sponsors of this bill claim that their proposal poses no threat 
to the environment. Yet, the bill drops the requirement for oil and gas 
companies to prepare an environmental impact statement in order to get 
a lease for drilling. Not only would H.R. 4761 expose more of our 
coastline to environmental destruction, it would free oil and gas 
companies from existing requirements to clean up their operations and 
restore the drilling site when they are finished with it. Unbelievably, 
it would allow the oil companies to dump their abandoned oil rigs in 
the ocean. Make no mistake about it: this bill is a blank check to Big 
Oil, and the price will be paid by ordinary Americans.
  Mr. Chairman, this bill is no way to solve America's energy crisis. 
Congress has set and sustained a precedent for wise stewardship of our 
sensitive coastlines for the last 25 years, knowing that one offshore 
oil spill would cripple our pristine beaches, fisheries and coastal 
economies. Let's not permanently terminate this time-honored tradition 
by giving away America's coasts to the highest bidder. I urge my 
colleagues to vote no on this ill-conceived, destructive legislation.
  Mr. CALVERT. Mr. Chairman, I rise today in support of the Deep Ocean 
Energy Resources Act. The legislation before us represents a balanced 
approach to expanding domestic energy production and, for the first 
time, gives states an opportunity to determine what occurs along their 
shores.
  I represent a coastal California district that includes beautiful 
beaches up and down the City of San Clemente's shoreline. I take the 
responsibility to protect those beautiful beaches seriously and I have 
worked with local officials over the years to do just that. I would not 
be supporting the bill if I did not believe it gave local and state 
officials the necessary authorities they need to protect our invaluable 
coastlines. Our coastal states deserve the right to make energy 
production decisions that affect their people, environment, and 
economy.
  I also believe we must ensure that our military needs throughout the 
Outer Continental Shelf (OCS) are accounted for and protected. Our 
military conducts significant training and operations in the OCS to 
protect our mainland and maintain readiness for future conflicts. As 
many of my colleagues from the Armed Services Committee know, military 
training and operations are under a seemingly constant threat of 
encroachment from many sources.
  In fact, just this week a lawsuit was filed by an environmental group 
to prevent the Navy from conducting exercises in the Pacific Ocean. 
While people will undoubtedly disagree about the merits of the lawsuit, 
there should be no disagreement about the fact that the cumulative 
effect of encroachments upon our military restricts the ability of our 
servicemembers to protect our nation.
  To that end, I believe we must enact OCS drilling policies that do 
not place another level of work-around restrictions on our military and 
require OCS leasing programs be developed with the consultation and 
concurrence of the Secretary of Defense. We did so in the Energy Policy 
Act as it relates to siting LNG facilities and we should do it again in 
the Deep Ocean Energy Resources Act as we develop OCS energy supply. I 
look forward to working with my colleagues on the Armed Services 
Committee and Resources Committee to ensure that any OCS drilling 
legislation sent to the President provides the proper and necessary 
authorities to protect our military ranges, training and operations.
  With the July Fourth holiday just around the comer, Americans are 
reminded of the liberties and freedoms secured by our nation's 
military. There are many ways Americans can express their appreciation 
for our military. One way this Congress can express our appreciation is 
to enact policies that protect our military from unintended 
encroachments to military training, operations, and readiness.
  Mr. CASTLE. Mr. Chairman, I rise today in opposition to H.R. 4761, 
the Deep Ocean Energy Resources Act, which would end a twenty-five year 
oil and natural gas drilling prohibition for most of the country's 
offshore waters.
  The increased strain that high-energy prices are having on the 
pockets of many Americans, and the national security concerns over the 
United States' dependence on foreign oil are real problems that deserve 
thoughtful, multi-pronged policy solutions. While the severity of 
current energy trends cannot be ignored, we cannot rush to drill before 
first crafting a comprehensive energy policy with solutions for meeting 
both our immediate and future energy needs. We must work to increase 
vehicle fuel efficiency, spur investment in efficiency and renewable 
energy research and technology, and improve conservation methods.
  I respect the attempt to increase the states' ability to participate 
in the planning of oil and gas development off their shores, however 
H.R. 4671 goes too far and undermines the strong federal protections 
for our coastal waters. H.R. 4671 purports to allow states to maintain 
control of activities in their coastal waters, but instead ties states' 
hands in many ways with unprecedented provisions. It subordinates every 
other use of coastal waters to oil drilling, blocking any effort to use 
waters in a way that could ever limit drilling, undermines states' 
authority under the Coastal Zone Management Act, changes state marine 
boundary maps, and it eliminates many environmental reviews and public 
participation requirements for issuing oil leases and for exploration 
and drilling activities. Clearly, this is of concern to our State and 
other nearby States too (see attached Governor's letter).
  I am also concerned that this legislation lifts the offshore drilling 
ban, while we continue to ignore many conservation and alternative fuel 
proposals, which would have a more immediate and beneficial effect on 
meeting our energy needs.
  H.R. 4761 does not simply deal with increased drilling, but instead 
has other far-reaching implications for coastal states and federal 
revenues. This legislation would create an open-ended fund for drilling 
states, with no reporting requirements, at a time when we have a huge 
federal deficit. The estimated cost of this transfer from federal 
revenues to states is estimated to be several hundred billion dollars 
over 60 years, according to President Bush's Statement of 
Administration Policy.
  While a thoughtful approach to offshore drilling is worthy of 
consideration, this legislation is not good policy for Delaware or the 
United States.
  Mr. HOLT. Mr. Chairman, I rise today in opposition to the Deep Ocean 
Energy Resources Act (H.R. 4761). I fundamentally disagree with the 
premise of the Deep Ocean Energy Resources Act that more drilling, 
regardless of where it is, is the answer to energy independence.
  I have read in the papers this week that this bill will be considered 
on the House floor as part of an ``Energy week.'' Republicans would 
like to use this bill to claim that Democrats are not committed to 
ending our dependence on foreign oil or as a ruse to feign lowering gas 
prices before the July 4th holiday weekend. This is simply not true.
  Just so we have the facts straight, today we are considering a bill 
that will immediately lift a twenty-five year moratorium on offshore 
drilling on the Outer Continental Shelf. This is the same twenty-five 
year moratorium that the House overwhelmingly voted in favor of 
continuing just a couple of weeks ago when we considered the Fiscal 
Year 2007 Interior Appropriations. The major difference between the two 
votes is that the Deep Ocean Energy Resources Act will give states an 
``opt out'' option.
  The so-called ``opt out'' option is alarming to me, because in truth, 
it is anything but giving states the authority to control what happens 
off their own coasts. In fact, what this bill does is first cut the 
moratoria area by 100 miles from state boundaries (current law 
establishes

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a boundary of 200 miles). Then the bill lifts the moratoria on drilling 
between 50-100 miles off a state boundary. Yes, many of my colleagues 
will assert that states then have the ability to ``opt out'' of 
offshore drilling leases. However, the complicated procedures outlined 
in the bill will actually make it difficult for states to use this 
``opt out'' option and if they miss the deadline to file a petition, 
drilling can start immediately. My question for my colleagues who 
support this bill is: What happens if New Jersey is successful in 
opting out of new leasing but New York and Delaware decide to allow 
drilling. How can New Jersey coastal cities, businesses, and other 
interested parties be sure that accidents in neighboring states will 
not affect their industries?
  Many of my colleagues today have talked at length about the costs of 
this bill. An estimate initially done by the Minerals Management 
Service (MMS) concluded that the bill would add $69 billion to the 
federal budget deficit over the next fifteen years. CBO also estimates 
that the bill will cost taxpayers $11 billion over the next ten years. 
I would hope that many of my colleagues who care deeply about the 
fiscal discipline of this Congress would see the hypocrisy in passing 
this bill.
  I am most concerned with the bill's direct contravention of the 
National Environmental Policy Act provisions that promote 
environmentally friendly practices. Section 12 of this bill says that 
seismic air gun surveys and other exploratory leasing plans are exempt 
from preparing an Environmental Impact Statement before drilling can 
occur. The effects on our environment of seismic air gun surveys and 
other exploratory plans are well documented. Large blasts and seismic 
airgun arrays can cause severe damage to the hearing of many of the 
ocean wildlife that depend on hearing for survival in addition to the 
damage to the reefs and other ocean landscape. In 2004, the 
International Whaling Commission's Scientific Committee concluded that 
increased sound from seismic surveys was ``cause for serious concern.'' 
Allowing lease sales to be exempt from NEPA is misguided policy.
  For all these reasons I have outlined above, I urge my colleagues to 
vote against the Deep Ocean Energy Resources Act. I have said this 
before on the House floor and I believe it is worth saying again: 
drilling is not the answer to our energy concerns and until we in 
Congress work to promote energy conservation and sustainable energy 
supplies, we will continue on the same treacherous path we are on 
today.
  Mr. TIAHRT. Mr. Chairman, I rise again today in strong support of 
jobs and lower energy costs for the American people. The House is 
considering the Deep Ocean Energy Resources Act of 2006 that would 
establish a common-sense framework to help America access more of its 
vast energy resources in an environmentally safe manner. More access to 
energy sources means more energy security for the American people, more 
jobs for workers and less dependency on foreign sources of energy.
  I strongly support H.R. 4761 and commend Representative Bobby Jindal 
for his work on this important energy bill. I also want to thank 
Chairman Pombo and Chairman Barton for their work on this issue and for 
their leadership in helping bring this bill to the floor today.
  The Deep Ocean Energy Resources Act will allow for expanded oil and 
gas leasing off the Outer Continental Shelf (OCS) by allowing the 
Secretary of the Interior to offer new OCS areas for leasing that 
presently are not open.
  I urge my colleagues to join me in support of H.R. 4761. Support of 
this bill is support for helping move us away from our dependency on 
foreign sources of energy. The United States is currently more than 60 
percent dependent on foreign sources of oil to meet our growing energy 
demands. If we do not take steps to access more domestic sources of oil 
and natural gas, we are placing ourselves at an economic disadvantage. 
American's pay more for natural gas than any other country in the 
world. The high cost of natural gas is not just an inconvenience, it is 
costing American jobs.
  My colleague from Pennsylvania, Representative John Peterson, 
regularly notes that America is the only country in the world with a 
moratorium on off-shore drilling for natural gas. While there are vast 
amounts of this environmentally-clean energy source available in areas 
far off our shorelines, opponents of lifting the moratorium are 
standing in the way of lowering energy costs for our farmers, chemical 
workers, small businesses and manufacturers.
  Because Americans pay as much as 600 percent more for natural gas 
than other countries, American businesses are often at a competitive 
disadvantage when trying to compete with foreign businesses.
  We all know our farmers depend upon natural gas for everything from 
irrigation to food processing to nitrogen fertilizer production. When 
the price of natural gas is high, that translates to more economic 
hardship for rural America. And unlike most other businesses, farmers 
are not able to pass along their increased input costs to consumers. It 
simply means less income for them and the rural communities that depend 
on a strong agriculture economy.
  Natural gas prices account for most of the cost of fertilizers, which 
means that as long as we refuse to open up more of our natural gas 
reserves and lower the costs, farmers and rural farming communities 
will continue to suffer.
  In the past six years, 21 fertilizer plants in this country have 
closed because they were no longer able to compete. This is just one 
example of how high natural gas prices are closing businesses and 
killing jobs. The longer we wait to lift the moratorium on offshore 
drilling, the more jobs we lose.
  Small businesses suffer when natural gas prices are high because they 
have to spend more money for heating and cooling bills rather than 
investments in new technologies or better wages for workers. Instead of 
being able to sell their products and services for less, many 
businesses are forced to raise their prices. In today's 21st century 
economy, small businesses are often competing with foreign competitors, 
not just the business down the street.
  Manufacturing jobs are even more at risk for leaving if we do not 
address the high cost of natural gas in this country. Over 100,000 
chemical jobs have been lost over the past five years because of high 
natural gas costs. These are jobs that we should not be forced to lose. 
Americans deserve better than a continuation of an out-dated moratorium 
on offshore drilling for natural gas and oil.
  I urge my colleagues to join me in voting for H.R. 4761 and help 
America compete by lowering energy costs, creating jobs and becoming 
more energy self-sufficient.
  Mr. MILLER of Florida. Mr. Chairman, right now our country is facing 
an energy crisis. I believe that H.R. 4761 is a great first step to 
freeing our country from the powerful grips of foreign energy reliance. 
This bill also makes a powerful statement about the value we place on 
our military by preventing drilling east of the Military Mission Line, 
thus providing our military with the tools and resources it needs for 
defense training.
  Secretary of Defense, Donald Rumsfeld has said, areas east of the 
military mission line are ``specially critical to DoD due to the number 
and diversity of military testing and training activities conducted 
there now, and those planned for the future.''
  I want to thank Chairman Pombo and Congressman Young of Florida for 
their strong support of this legislation and the military training area 
that this bill will protect. Continuing to provide adequate training 
facilities for our military shows not only support for our troops but 
also sends a message to our enemies that we are serious about winning 
this war and that our priorities are where they should be.
  Ms. SCHAKOWSKY. Mr. Chairman, I rise today in opposition to H.R. 
4761, the Domestic Energy Production through Offshore Exploration Act. 
This shortsighted initiative would feed America's oil addiction while 
threatening our coasts and eliminating one of our few remaining sources 
of fossil fuels.
  Since President Bush declared that the nation is addicted to oil in 
his State of the Union speech, the President and the Republican 
Congress have continued to advance the agenda of their big oil buddies. 
This legislation would ensure that the nation's increasing energy 
demand is fed with oil instead of investing in alternative energy 
sources and promoting efficiency. The United States holds only 2% of 
the world's remaining oil reserves, while the Persian Gulf states have 
60 percent of that oil. Feeding the nation's oil addiction is a threat 
to the nation's security.
  This legislation limits states' abilities to protect their 
environment and their coastal residents. The energy companies already 
have access to 80% of our offshore oil and gas reserves. This 
legislation eliminates a 25-year, bi-partisan moratorium against 
offshore drilling that protects beaches and sensitive coastal areas. 
This bill makes it more difficult for states to prevent drilling off 
their coasts than to allow it, and limits their power to prevent new 
pipeline construction. It gives the Secretary of the Interior the 
authority to threaten states with a loss of funding if they pass any 
law that restricts drilling. In order to reward the oil and gas 
industry, the Bush Administration and the Republican Congress will make 
coastal states and their residents pay the price if we pass this 
legislation.
  This bill will not bring down gasoline prices in the near term or 
ever. Given the average

[[Page 13647]]

time it takes to produce oil and gas from new wells offshore, no oil 
and gas would be brought to the market from these new projects until 
2013. We have the renewable energy capability and the efficient 
technology to radically reduce our demand for oil and gas today. By 
increasing fuel economy standards for passenger cars and light trucks 
to 33 miles per gallon by 2015, we could eliminate our imports of oil 
from the Persian Gulf. By spreading alternative fuels and biofuels 
across the country, we could radically reduce the largest source of our 
carbon emissions. And renewable energy sources like wind farms could be 
brought online and produce electricity in as little time as one year.
  This bill will add tens of billions of dollars to our record deficit 
by subsidizing the same oil and gas companies that are reporting record 
profits. Already, every man, woman and child in this country bares the 
burden of $30,000 of our current deficit. Now, this bill would allow 
oil and gas companies to pay billions of dollars less in royalty 
relief, compensates oil companies for any delays in their drilling 
projects with taxpayer money, and allows the Congress to divert revenue 
for new drilling projects. Oil companies should drill at their own 
expense, not taxpayer expense, and the federal government should 
vigilantly regulate all drilling projects.
  I urge all members to oppose this budget-busting, polluting 
legislation and encourage Congress to fight America's oil addiction 
rather than feed it.
  Mr. KIND. Mr. Chairman, I rise today in support of H.R. 4761 to 
diversify our nation's domestic energy production. In the face of 
volatile natural gas markets that are forcing our industries and jobs 
overseas, we must begin drawing on the clean reliable fuel source that 
lies far off our nations coasts while preserving states rights to 
manage their nearshore waters.
  For years I, along with many of my colleagues, have been calling for 
a more clean alternative energy supplies for our nation and this bill 
heeds that call. Our nation is currently generating half its 
electricity by burning coal. In the midwest alone, we have an 
astounding five-hundred individual coal burning power plants. According 
to the department of energy, nearly half of these plants are burning 
low grade, so called, sub-bituminous coal.
  This enormous dependence on coal is not environmentally responsible. 
In 2005, the United States produced more than 7 times more 
CO2 from coal than from natural gas emits far fewer 
particulates and climate changing gases compared to coal and is much 
cleaner to produce domestically, yet our nation continues to rely on 
coal. This bill will begin to reverse the longstnding habit.
  Developing a domestic supply of natural gas is also critical to the 
industries that produce the jobs and products our nation needs. The 
volatility in the gas market makes it difficult for our companies to 
compete which drives job losses, a sting we have felt in my district in 
western Wisconsin. We can bring stability to these markets through 
domestic gas production and keep those middle-class jobs at home where 
they belong.
  Our nation still needs a comprehensive energy policy and this bill is 
only a small piece of what must eventually be a 21st century strategy 
for clean domestic energy from a variety of sources. We must replace 
middle east oil with midwest grain and other `home grown' alternatives 
and that includes the clean natural gas that would be produced under 
this bill. I urge my colleagues to support H.R. 4761.
  Mr. BOREN. Mr. Chairman, I rise today to join my colleagues in 
support of the Deep Ocean Energy Resources Act.
  I support this act for a multitude of reasons; however, I want to 
briefly talk about how this legislation is important to non-coastal 
states like mine.
  Mr. Chairman, many people may question why a piece of legislation 
that opens the Outer Continental Shelf should matter to states like 
Oklahoma.
  Well, I am here to say that it is vitally important. It's important 
to the farmers of America's Heartland.
  This bill will bring relief to the farmers who have seen their costs 
for fuel and crop inputs rise significantly over the last several years 
by increasing natural gas supplies.
  The farmers and ranchers of America know all too well that natural 
gas is an important feedstock for the nitrogen fertilizers that are 
used on virtually every crop produced in this country.
  Mr. Chairman, we can even take the farmers out of the equation and 
this legislation is still important to our nation.
  Producing more natural gas will mean that we can reduce the cost of 
utilities for the nation's working families.
  Finally, I want to call attention to the fact that natural gas is a 
clean source of energy. It is clean from its utilization as a fuel to 
the processes that are used produce it. In recent years, the 
technologies in the industry have dramatically improved leaving us with 
everything from cleaner diesel fuel to smaller footprints after 
drilling has ceased.
  Mr. Chairman, this is our chance to help lower costs, create jobs, 
and even increase production of an environmentally-friendly domestic 
fuel source.
  For these reasons, I urge my colleagues to support H.R 4761.
  Mr. HERGER. Mr. Chairman, if gasoline prices are bad, natural gas 
prices are even worse. The price of this fuel has tripled over the last 
six years. This dramatic increase is hurting my constituents in 
Northern California who rely on natural gas for heating and lighting. 
Farmers who use natural gas for crop drying, irrigation, and fertilizer 
production are also getting squeezed. Yet while prices climb to record 
levels, Washington has essentially made it impossible for states to 
provide any relief.
  H.R. 4761 changes that. This bipartisan compromise gives the states 
the power to decide how to utilize America's ocean energy resources. 
It's a common sense plan for affordable energy, new jobs, and 
environmental protection. I commend Chairman Pombo and urge my 
colleagues to support this bill.
  Mr. DINGELL. Mr. Chairman, regrettably, I rise in opposition to this 
legislation. I say regrettably because I really would like to support 
increased domestic production of hydrocarbons. Like all my other 
colleagues, over this past winter, my office was inundated with pleas 
for help from constituents with through-the-roof home heating bills. 
Unfortunately, I expect the same next winter.
  You see, Mr. Chairman, I just fundamentally believe that the waters 
we are talking about are federal waters. And that the revenue from 
leasing activities should go to the Federal Treasury for the betterment 
of the Nation. While I might agree to sharing some of the revenue with 
the states, I simply cannot in good conscience support giving them 50 
to 75 percent--or as is in the manager's amendment 42.5 percent to 75 
percent. These revenues go to funding some of our most important 
programs throughout the country, including in my home state of 
Michigan. The Minerals Management Services estimated, prior to the 
manager's amendment, that this revenue sharing will cost the Federal 
Treasury $69 billion over the next 15 years. While the new period over 
which this is phased in has lengthened, the net cost is still much the 
same. In this era of ever increasing deficits, we simply cannot afford 
to lose that revenue.
  As the author of the National Environmental Policy Act, I am also 
troubled by a provision that would exempt leases sales from the 
analysis and public process required by NEPA.
  In short, Mr. Chairman, I would like to see more energy production in 
the Outer Continental Shelf. However, there is a right way and a wrong 
way to achieve this. Unfortunately, the bill we are considering today 
is the wrong way.
  Mr. GOODLATTE. Mr. Chairman, my friends, I rise in support of H.R. 
4761, the Domestic Energy Production Through Offshore Exploration Act 
of 2006.
  In 1981, Congress enacted a ban on energy exploration covering more 
than 85 percent of the U.S. outer continental shelf. At the time, U.S. 
natural gas prices were the lowest in the industrialized world.
  Today, U.S. Natural gas prices are the highest in the industrialized 
world. Prices for natural gas continue to increase, while the 
government continues to promote new natural gas consumption.
  To balance the market, we need to invest in efficient, alternative 
energy. Additionally, we need to increase access to new energy supply 
sources, like ethanol and hydrogen, to keep pace with new and growing 
demands.
  The high cost of natural gas and oil has a major impact on both the 
farm and forest sectors.
  Paper mills, a major employer in my district, are very energy 
intensive. Energy costs account for 18 percent of the cost of operating 
a mill, almost eclipsing costs for employee compensation. The effects 
of higher energy prices have been dramatic. Over 232 paper mills have 
closed and 182,000 jobs lost since 2000 when energy prices started 
their steep ascent.
  For farmers, higher natural gas prices mean higher costs for 
fertilizers. According to the USDA, average fertilizer prices in March 
2006 stood 74 percent higher than the 1990-92 levels, nearly 
approaching all-time records. The high cost of oil has also greatly 
effected farmers and ranchers. Unlike many businesses, farmers and 
ranchers cannot pass on the extra costs to their customers and must 
absorb rising costs themselves.

[[Page 13648]]

  H.R. 4761 addresses the supply piece of the puzzle to help bring 
natural gas and oil prices down. We can no longer continue to ban 
access to large sources of supply, while we continue to encourage 
innovation and advancement in all areas of industry, education, and 
technology.
  This bill allows the Federal government to begin the process of 
developing these important resources throughout the outer continental 
shelf.
  The bill's provisions are essential to ensuring a more cost efficient 
source of natural gas and oil. The benefits of efficient and cost-
effective energy are not limited to one single industry, but extend to 
businesses, farmers, consumers, and communities. We find ourselves for 
the first time in a quarter century acknowledging that we as a Congress 
can no longer continue to promote natural gas and oil consumption and, 
at the same time, prohibit more production. I urge my colleagues to 
vote. ``yes'' on H.R. 4761.
  Mr. WELDON of Florida. Mr. Chairman, I rise in support of the bill 
and thank you for working with Members of Florida's Congressional 
delegation to try and address our concerns. The residents of Florida 
and much of the Nation are facing significant increases in energy 
costs--gas to electricity bills--due to the increases in global demand 
and our Nation's increasing reliance on foreign sources of energy. Yet 
for Florida, our beaches are important for tourism and it is important 
that we offer some protections along our coast. I believe the bill 
before us reaches a good balance. It offers good protections while 
enabling responsible exploration for natural gas and oil.
  Mr. Chairman, if we in this body and as a Nation are really serious 
about energy independence and its related national security 
implications, we must allow greater drilling for natural gas and oil in 
our Outer Continental Shelf. To do otherwise is to deny reality and 
live in a dream world. This bill takes a significant step to reduce our 
reliance on foreign oil and natural gas.
  Some have made baseless claims that allowing natural gas wells or oil 
wells within the Outer Continental Shelf (OCS) will do little to 
address the energy costs in the United States. This claim simply is not 
based on sound economics. Over the past decade both in the state of 
Florida and across the Nation, there has been a dramatic increase in 
the use of natural gas for electric power generation. This switch was a 
quick and cost-effective way for power companies to reduce greenhouse 
gas emissions. According to a 2005 report from the Florida Public 
Service Commission (FPSC), in 2003, 26 percent of Florida's electric 
power was generated using natural gas. By 2013, just 7 years from now, 
the FPSC projects that over 50 percent of Florida's electric power will 
be generated using natural gas. The U.S. already pays the highest price 
in the world for natural gas, and it will only rise further if we fail 
to tap our own natural gas resources along the OCS.
  Yet today we are increasingly importing natural gas from not only 
Canada and Mexico, but Trinidad, Qatar, Nigeria, Oman, Egypt, and 
Algeria. This increasing reliance on natural gas from Middle Eastern or 
unstable countries will further threaten our Nation's economic vitality 
and energy independence. This is the wrong path, particularly when we 
have untapped natural gas along our Nation's Outer Continental Shelf.
  The U.S. Department of Energy reports that the cost of natural gas 
for electric power generation increased 300 percent between 2000 and 
2005. Absent a new, larger and reliable supply of reasonably priced 
natural gas, Florida residents--many of them senior citizens on fixed 
incomes--will face dramatic increases in monthly power bills over the 
next 7 years. Passage of the bill before, us will enable Florida to 
secure a long-term supply of natural gas and help keep power bills in 
check.
  The bill before us allows drilling for oil and natural gas 100 miles 
or more offshore. Between 50 and 100 miles the state legislature is 
given 1 year to withdraw this area from natural gas wells and 3 years 
to withdraw this area from oil wells. The coastal areas between the 
shoreline out 50 miles are presumed to be under moratorium unless the 
state legislature specifically authorizes either natural gas wells or 
oil drilling within that area. The bill also provides for some revenue 
sharing with the states that permit natural gas and oil recovery, 
allowing billions of dollars to be shared with the states to meet 
participating states' needs.
  I trust the state legislature and the Governor of Florida to make the 
right decisions about our coastlines and potential natural gas and oil 
exploration. That is what this bill does. It ensures that the state 
elected officials . . .
  Finally, to those, particularly in Florida who would say we should 
reject this legislation, I think it is important to consider the 
sizable shift in recent votes the House and Senate have had on the 
issue of off-shore drilling. When one considers the shift of 76 votes 
between the vote we held on this issue last year and the vote held last 
month, this bill before us today is likely the best deal Florida is 
going to get. A year ago, Senators Nelson and Martinez could muster 
only 44 votes in their attempt to strip off-shore drilling out of the 
energy bill. I'm sure that, as in the House, there is a growing 
consensus in the Senate to allow drilling in our Nation's Outer 
Continental Shelf, including Florida's coast.
  It is also important to note that there are currently areas off of 
Florida's East coast that have less protection than what is offered in 
this bill. Those areas will receive greater protection under this bill 
that they have under current law.
  Finally, I would say that Cuba and China are proposing a joint 
venture to drill for gas of the northern coast of Cuba--45 miles from 
the Florida shoreline. To stand idly by and watch the Communist Cuban 
government and China drill within 45 miles of Florida's coast--perhaps 
extracting gas that is in U.S. territorial waters--is absurd.
  Given the realities of our needs, the national security concerns 
associated with continued reliance on Middle Eastern oil and 
legislative realities, I believe it is important that we move forward 
with this bill today.
  Let's vote for the underlying bill.
  Mr. POE. Mr. Chairman, I rise in strong support of the Deep Ocean 
Energy Resources (DOER) Act, H.R. 4761.
  The United States must be more self-sufficient when it comes to 
energy. The United States imports 60 percent of its crude oil from 
foreign countries even though there are large quantities of oil and 
natural gas available in the Outer Continental Shelf (OCS). However, 
these valuable resources are wrapped up in red tape and are off-limits 
to energy exploration. The United States is the only developed nation 
that limits access to their own natural resources. Other nations are 
willing to drill close to their own shores. Canada drills in the Great 
Lakes. Ireland, Norway, United Kingdom, Australia and New Zealand all 
drill within 50 miles of their own coastline. The Netherlands drills 20 
miles off their shoes and Scotland drills 10 miles off their coast.
  One part of the OCS, the Gulf of Mexico, is responsible for one-third 
of the domestic oil production and 20 percent of the domestic natural 
gas production. However, as we saw from Hurricanes Katrina and Rita, 
these areas can be subject to supply disruption. It is imperative that 
the United States begin drilling in other parts outside of the Gulf. 
There is a wide range of areas where we can drill. While the United 
States drills off my home State of Texas and Louisiana; there is crude 
oil still available in the eastern parts of the Gulf of Mexico, on the 
east coast and, yes, even off the sacred coast of California. It is 
vital that we think and consider drilling in these areas.
  Since the 1980s, Congress has been placing appropriations moratoriums 
on drilling in about 90 percent of the Outer Continental Shelf placing 
them off limit to any energy development. All the people in non-
drilling coastal States want cheap gasoline and natural gas, but they 
do not drill in their neighborhood. They want Texas and Louisiana to 
keep drilling in our neighborhood. We cannot have it both ways; cheap 
gasoline and refuse to drill offshore. We must do everything in our 
power to expand energy exploration in the OCS.
  Limiting our ability to explore for energy is hypocritical. It does 
not make sense. In this Outer Continental Shelf, there are about 300 
trillion cubic feet of natural gas and more than 50 billion barrels of 
oil yet to be discovered, that is enough oil or natural gas to: replace 
current imports from the Persian Gulf for 60 years and produce 
sufficient natural gas to heat 75 million homes for 60 years; produce 
gasoline for 116 million cars and heating oil for 47 million homes for 
15 years; produce sufficient natural gas to heat 75 million homes for 
60 years.
  The DOER Act is an important bill as it grants states the power to 
control the OCS area off their coasts and still allow energy 
exploration. States will now have the ability to control drilling 
rights up to 100 miles off their coast. Current law only gives them 
authority up to 3 miles. Additionally, the DOER Act will allow states 
to share in the leasing royalties that occur in those areas that States 
now control.
  This will help to encourage more states to participate in energy 
exploration as they will now share in the benefits from leasing rights. 
For my State of Texas, we have long held the belief that drilling can 
be done in a responsible and environmentally safe way. Now, Texas will 
be able to share in those leasing royalties that in the past have been 
exclusively limited to the federal government. These funds can be used 
by Texas to offset the cost of Rita, fund

[[Page 13649]]

education for Katrina refugees or other important programs for the 
State.
  It is for these reasons that I support and am a proud cosponsor for 
H.R. 4761. If we want to reduce energy prices, we need to explore for 
energy. This is a good bill that will allow for further exploration and 
reward states that allow for that exploration. I encourage my 
colleagues to support this important piece of legislation.
  Ms. KILPATRICK of Michigan. Mr. Chairman, I rise today in opposition 
to H.R. 4761, the Deep Ocean Energy Resources Act. I believe the 
measure deceptively undermines States' rights to protect their 
coastlines, compromises fragile coastal environments, and ultimately 
would cost taxpayers billions in lost revenue, adding to the already 
record-setting national deficit.
  H.R. 4761 presents the illusion of granting States more control over 
drilling, when in actuality it makes it more cumbersome for States 
choosing to continue protecting their coastlines. States desiring to 
opt-out of drilling would be required to pass legislation every 5 
years, subject to approval by their governor, and present it to the 
Federal Government. If State legislatures and their governors are 
unable to come to agreement on drilling policy within one year of this 
bill's enactment, they would lose their right to decide as the Federal 
Government would then have authority to begin granting leases within 50 
to 100 miles off their coastlines.
  This bill attempts to bait States, already suffering fiscal 
restraints due to the Majority's consistent practice of cutting States 
funding for vital services like Medicaid/Medicare and public education, 
with a greater share of revenue if they are willing to sacrifice their 
coastal protections. It would take the second largest funding source of 
the Federal Government, after income taxes, and redistribute those 
funds only to the coastal States that will allow drilling. This comes 
as a sacrifice to all other States as the Interior Department has 
estimated the alteration of current Federal-State revenue sharing 
provisions on royalty payments will result in a loss of approximately 
$70 billion in revenues over the next 15 years; adding to the public 
debt burden.
  It is important to note that 80 percent of known oil and natural gas 
reserves are in areas where drilling is already permitted. The 
Department of the Interior has already offered leases for 267 million 
acres of the outer-continental shelf; however, energy companies have 
only taken the initiative to explore 24 million of those acres already 
available to them. It would be insensible to risk these coastal 
environments before companies have even exhausted the exploration of 
areas they are already permitted to drill.
  America's families need real relief from high-energy costs. Even if 
this measure had addressed this issue in the most optimal manner, 
offshore exploration remains an expensive, slow, and risky way of 
addressing the nation's energy crisis. The Federal Government should be 
investing resources to advance energy efficiency, conservation, and the 
development of alternative fuels, which can provide immediate relief to 
American citizens, not reinforcing our nation's gluttonous appetite for 
oil.
  I urge my colleagues to vote ``no'' on H.R. 4761.
  Ms. McCOLLUM of Minnesota. Mr. Chairman, I rise today in strong 
opposition to the Deep Ocean Energy Resources Act (H.R. 4761). The 
``DOER'' Act is yet another lost opportunity to develop real solutions 
to our energy challenges and a reckless raid on the Federal Treasury 
that even the Bush Administration opposes.
  The DOER Act will repeal a 25-year, bipartisan moratorium on oil and 
gas drilling off most of the U.S. coastline. In place of the 
moratorium, a weak system of protections will be established that 
allows individual states to sanction drilling within 100 miles of their 
shores. To entice states to permit drilling, the bill increases states' 
share of drilling royalties from the current ceiling of 27 percent to 
64 percent.
  Bush administration officials released a statement today strongly 
opposing the revenue-sharing provisions of the bill, which are expected 
to add several hundred billion dollars to the federal deficit over the 
next 60 years. The diversion of more drilling royalties to states is a 
transparent, irresponsible ploy that will cost the government billions. 
But Republican leaders are so unconcerned about runaway federal 
deficits they decided to waive the rules of the Congressional Budget 
Act that are supposed to protect taxpayers from deficit spending.
  While the bill's proponents argue this revenue-sharing arrangement is 
a matter of states' rights, the language of H.R. 4761 actually gives 
the administration enormous new powers over states. The bill limits 
states' ability to block pipeline construction and to review oil 
drilling activities once drilling is allowed. H.R. 4761 also allows the 
Secretary of the Interior to threaten states with a loss of funding if 
Congress passes legislation restricting oil drilling in any way. And, 
by rolling back environmental reviews and mitigation responsibilities 
for oil companies, the bill imposes hidden costs on states and their 
tourism industries, which will be left with the tab for drilling-
related mishaps.
  The Republicans declared this week ``Energy Week'' in the House and 
then moved one bill, H.R. 4761 to the floor. This legislation, 
apparently the Republicans' solution to America's complex energy 
challenges, includes no new incentives for energy conservation, no 
increases in fuel efficiency, no new support for mass transit and no 
boost for home-grown renewable energy technologies such as biofuels or 
wind energy. This bill falls far short of the bold, comprehensive 
energy policy America so urgently needs. Only House Republican leaders 
could call a bill that balloons the federal deficit, undermines states' 
rights, rolls back environmental protections and fails to reduce demand 
for fossil fuels a ``commonsense compromise.'' It's time to hold a 
funeral for common sense.
  Mr. ETHERIDGE. Mr. Chairman, I rise today in opposition to H.R. 4761.
  Our country is facing a painful energy crisis as a result of the 
policies of this Administration and Congressional Leadership. The price 
of oil is as high as it has ever been, and the people in my district in 
North Carolina are suffering from these high energy prices. The 
American people desperately need effective new energy policies, but 
H.R. 4761 is simply more of the same failed solutions from the 
Republican majority in this body.
  This legislation would override provisions in my State of North 
Carolina against offshore drilling, and eliminate a long-standing 
national moratorium on coastal drilling. I have never supported 
drilling off the Outer Continental Shelf that could threaten North 
Carolina's pristine beaches.
  Instead of finding new solutions to our energy crisis, such as 
passing biofuels legislation that would encourage our farmers to grow 
our own fuel here at home, the Republican leadership chooses to put at 
risk the places all Americans hold dear.
  Mr. Chairman, I will vote against H.R. 4761, and I urge my colleagues 
to vote against this bill.
  The Acting CHAIRMAN (Mr. LaHood). All time for general debate has 
expired.
  Pursuant to the rule, the amendment in the nature of a substitute 
printed in the bill shall be considered as an original bill for the 
purpose of amendment under the 5-minute rule and shall be considered 
read.
  The text of the amendment in the nature of a substitute is as 
follows:

                               H.R. 4761

       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 ``Deep Ocean Energy Resources 
     Act of 2006''.

     SEC. 2. POLICY.

       It is the policy of the United States that--
       (1) the United States is blessed with abundant energy 
     resources on the outer Continental Shelf and has developed a 
     comprehensive framework of environmental laws and regulations 
     and fostered the development of state-of-the-art technology 
     that allows for the responsible development of these 
     resources for the benefit of its citizenry;
       (2) adjacent States are required by the circumstances to 
     commit significant resources in support of exploration, 
     development, and production activities for mineral resources 
     on the outer Continental Shelf, and it is fair and proper for 
     a portion of the receipts from such activities to be shared 
     with Adjacent States and their local coastal governments;
       (3) the existing laws governing the leasing and production 
     of the mineral resources of the outer Continental Shelf have 
     reduced the production of mineral resources, have preempted 
     Adjacent States from being sufficiently involved in the 
     decisions regarding the allowance of mineral resource 
     development, and have been harmful to the national interest;
       (4) the national interest is served by granting the 
     Adjacent States more options related to whether or not 
     mineral leasing should occur in the outer Continental Shelf 
     within their Adjacent Zones;
       (5) it is not reasonably foreseeable that exploration of a 
     leased tract located more than 25 miles seaward of the 
     coastline, development and production of a natural gas 
     discovery located more than 25 miles seaward of the 
     coastline, or development and production of an oil discovery 
     located more than 50 miles seaward of the coastline will 
     adversely affect resources near the coastline;
       (6) transportation of oil from a leased tract might 
     reasonably be foreseen, under limited circumstances, to have 
     the potential to adversely

[[Page 13650]]

     affect resources near the coastline if the oil is within 50 
     miles of the coastline, but such potential to adversely 
     affect such resources is likely no greater, and probably 
     less, than the potential impacts from tanker transportation 
     because tanker spills usually involve large releases of oil 
     over a brief period of time; and
       (7) among other bodies of inland waters, the Great Lakes, 
     Long Island Sound, Delaware Bay, Chesapeake Bay, Albemarle 
     Sound, San Francisco Bay, and Puget Sound are not part of the 
     outer Continental Shelf, and are not subject to leasing by 
     the Federal Government for the exploration, development, and 
     production of any mineral resources that might lie beneath 
     them.

     SEC. 3. DEFINITIONS UNDER THE OUTER CONTINENTAL SHELF LANDS 
                   ACT.

       Section 2 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1331) is amended--
       (1) by amending paragraph (f) to read as follows:
       ``(f) The term `affected State' means the Adjacent 
     State.'';
       (2) by striking the semicolon at the end of each of 
     paragraphs (a) through (o) and inserting a period;
       (3) by striking ``; and'' at the end of paragraph (p) and 
     inserting a period;
       (4) by adding at the end the following:
       ``(r) 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. 
     For purposes of this paragraph, the term `State' includes 
     Puerto Rico and the other Territories of the United States.
       ``(s) 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.
       ``(t) The term `miles' means statute miles.
       ``(u) The term `coastline' has the same meaning as the term 
     `coast line' as defined in section 2(c) of the Submerged 
     Lands Act (43 U.S.C. 1301(c)).
       ``(v) The term `Neighboring State' means a coastal State 
     having a common boundary at the coastline with the Adjacent 
     State.''; and
       (5) in paragraph (a), by inserting after ``control'' the 
     following: ``or lying within the United States exclusive 
     economic zone adjacent to the Territories of the United 
     States''.

     SEC. 4. DETERMINATION OF ADJACENT ZONES AND PLANNING AREAS.

       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: ``. The 
     lines extending seaward and defining each State's Adjacent 
     Zone, and each OCS Planning Area, are 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.''.

     SEC. 5. ADMINISTRATION OF LEASING.

       Section 5 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1334) is amended by adding at the end the following:
       ``(k) Voluntary Partial Relinquishment of a Lease.--Any 
     lessee of a producing lease may relinquish to the Secretary 
     any portion of a lease that the lessee has no interest in 
     producing and that the Secretary finds is geologically 
     prospective. In return for any such relinquishment, the 
     Secretary shall provide to the lessee a royalty incentive for 
     the portion of the lease retained by the lessee, in 
     accordance with regulations promulgated by the Secretary to 
     carry out this subsection. The Secretary shall publish final 
     regulations implementing this subsection within 365 days 
     after the date of the enactment of the Deep Ocean Energy 
     Resources Act of 2006.
       ``(l) Natural Gas Lease Regulations.--Not later than July 
     1, 2007, the Secretary shall publish a final regulation that 
     shall--
       ``(1) establish procedures for entering into natural gas 
     leases;
       ``(2) ensure that natural gas leases are only available for 
     tracts on the outer Continental Shelf that are wholly within 
     100 miles of the coastline within an area withdrawn from 
     disposition by leasing on the day after the date of enactment 
     of the Deep Ocean Energy Resources Act of 2006;
       ``(3) provide that natural gas leases shall contain the 
     same rights and obligations established for oil and gas 
     leases, except as otherwise provided in the Deep Ocean Energy 
     Resources Act of 2006;
       ``(4) provide that, in reviewing the adequacy of bids for 
     natural gas leases, the value of any crude oil estimated to 
     be contained within any tract shall be excluded;
       ``(5) provide that any crude oil produced from a well and 
     reinjected into the leased tract shall not be subject to 
     payment of royalty, and that the Secretary shall consider, in 
     setting the royalty rates for a natural gas lease, the 
     additional cost to the lessee of not producing any crude oil; 
     and
       ``(6) provide that any Federal law that applies to an oil 
     and gas lease on the outer Continental Shelf shall apply to a 
     natural gas lease unless otherwise clearly inapplicable.''.

     SEC. 6. GRANT OF LEASES BY SECRETARY.

       Section 8 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1337) is amended--
       (1) in subsection (a)(1) by inserting after the first 
     sentence the following: ``Further, the Secretary may grant 
     natural gas leases in a manner similar to the granting of oil 
     and gas leases and under the various bidding systems 
     available for oil and gas leases.'';
       (2) by adding at the end of subsection (b) the following:
     ``The Secretary may issue more than one lease for a given 
     tract if each lease applies to a separate and distinct range 
     of vertical depths, horizontal surface area, or a combination 
     of the two. The Secretary may issue regulations that the 
     Secretary determines are necessary to manage such leases 
     consistent with the purposes of this Act.'';
       (3) by amending subsection (p)(2)(B) to read as follows:
       ``(B) The Secretary shall provide for the payment to 
     coastal states, and their local coastal governments, of 75 
     percent of Federal receipts from projects authorized under 
     this section located partially or completely within the area 
     extending seaward of State submerged lands out to 4 marine 
     leagues from the coastline, and the payment to coastal states 
     of 50 percent of the receipts from projects completely 
     located in the area more than 4 marine leagues from the 
     coastline. Payments shall be based on a formula established 
     by the Secretary by rulemaking no later than 180 days after 
     the date of the enactment of the Deep Ocean Energy Resources 
     Act of 2006 that provides for equitable distribution, based 
     on proximity to the project, among coastal states that have 
     coastline that is located within 200 miles of the geographic 
     center of the project.''.
       (4) by adding at the end the following:
       ``(q) Natural Gas Leases.--
       ``(1) Right to produce natural gas.--A lessee of a natural 
     gas lease shall have the right to produce the natural gas 
     from a field on a natural gas leased tract if the Secretary 
     estimates that the discovered field has at least 40 percent 
     of the economically recoverable Btu content of the field 
     contained within natural gas and such natural gas is 
     economical to produce.
       ``(2) Crude oil.--A lessee of a natural gas lease may not 
     produce crude oil from the lease.
       ``(3) Estimates of btu content.--The Secretary shall make 
     estimates of the natural gas Btu content of discovered fields 
     on a natural gas lease only after the completion of at least 
     one exploration well, the data from which has been tied to 
     the results of a three-dimensional seismic survey of the 
     field. The Secretary may not require the lessee to further 
     delineate any discovered field prior to making such 
     estimates.
       ``(4) Definition of natural gas.--For purposes of a natural 
     gas lease, natural gas means natural gas and all substances 
     produced in association with gas, including, but not limited 
     to, hydrocarbon liquids (other than crude oil) that are 
     obtained by the condensation of hydrocarbon vapors and 
     separate out in liquid form from the produced gas stream.
       ``(r) Removal of Restrictions on Joint Bidding in Certain 
     Areas of the Outer Continental Shelf.--Restrictions on joint 
     bidders shall no longer apply to tracts located in the Alaska 
     OCS Region. Such restrictions shall not apply to tracts in 
     other OCS regions determined to be `frontier tracts' or 
     otherwise `high cost tracts' under final regulations that 
     shall be published by the Secretary by not later than 365 
     days after the date of the enactment of the Deep Ocean Energy 
     Resources Act of 2006.
       ``(s) Royalty Suspension Provisions.--The Secretary shall 
     agree to a request by any lessee to amend any lease issued 
     for Central and Western Gulf of Mexico tracts during the 
     period of December 1, 1995, through December 31, 2000, to 
     incorporate price thresholds applicable to royalty suspension 
     provisions, or amend existing price thresholds, in the amount 
     of $40.50 per barrel (2006 dollars) for oil and for natural 
     gas of $6.75 per million Btu (2006 dollars). Any amended 
     lease shall impose the new or revised price thresholds 
     effective October 1, 2005. Existing lease provisions shall 
     prevail through September 30, 2005. After the date of the 
     enactment of the Deep Ocean Energy Resources Act of 2006, 
     price thresholds shall apply to any royalty suspension 
     volumes granted by the Secretary. Unless otherwise set by 
     Secretary by regulation or for a particular lease sale, the 
     price thresholds shall be $40.50 for oil (2006 dollars) and 
     $6.75 for natural gas (2006 dollars).
       ``(t) Royalty Rate for Oil and Gas or Natural Gas Leases on 
     the Outer Continental Shelf.--After the date of the enactment 
     of the Deep Ocean Energy Resources Act of 2006, the base 
     royalty rate for new oil and gas or natural gas leases on the 
     outer Continental Shelf shall be the same for all leased 
     tracts.
       ``(u) Conservation of Resources Fees.--
       ``(1) Not later than one year after the date of the 
     enactment of the Deep Ocean Energy Resources Act of 2006, the 
     Secretary by regulation shall establish a conservation of 
     resources fee for producing leases that will apply to new and 
     existing leases which shall be set at $9 per barrel for oil 
     and $1.25 per million Btu for gas. This fee shall only apply 
     to leases in production located in more than 200 meters of 
     water for which royalties are not being paid when prices 
     exceed $40.50 per barrel for oil and $6.75 per million Btu 
     for natural gas in 2006, dollars. This fee shall

[[Page 13651]]

     apply to production from and after October 1, 2005, and shall 
     be treated as offsetting receipts.
       ``(2) Not later than one year after the date of the 
     enactment of the Deep Ocean Energy Resources Act of 2006, the 
     Secretary by regulation shall establish a conservation of 
     resources fee for nonproducing leases that will apply to new 
     and existing leases which shall be set at not less than $1.00 
     nor more than $4.00 per acre per year. This fee shall apply 
     from and after October 1, 2005, and shall be treated as 
     offsetting receipts.'';
       (5) by striking subsection (a)(3)(A) and redesignating the 
     subsequent subparagraphs as subparagraphs (A) and (B), 
     respectively;
       (6) in subsection (a)(3)(A) (as so redesignated) by 
     striking ``In the Western'' and all that follows through 
     ``the Secretary'' the first place it appears and inserting 
     ``The Secretary''; and
       (7) effective October 1, 2006, in subsection (g)--
       (A) by striking all after ``(g)'', except paragraph (3);
       (B) by striking the last sentence of paragraph (3); and
       (C) by striking ``(3)''.

     SEC. 7. DISPOSITION OF RECEIPTS.

       Section 9 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1338) is amended--
       (1) by designating the existing text as subsection (a);
       (2) in subsection (a) (as so designated) by inserting ``, 
     if not paid as otherwise provided in this title'' after 
     ``receipts''; and
       (3) by adding the following:
       ``(b) Treatment of OCS Receipts From Tracts Completely 
     Within 100 Miles of the Coastline.--
       ``(1) Deposit.--The Secretary shall deposit into a separate 
     account in the Treasury the portion of OCS Receipts for each 
     fiscal year that will be shared under paragraphs (2), (3), 
     and (4).
       ``(2) Phased-in receipts sharing.--
       ``(A) Beginning October 1, 2005, the Secretary shall share 
     OCS Receipts derived from the following areas:
       ``(i) Lease tracts located on portions of the Gulf of 
     Mexico OCS Region completely beyond 4 marine leagues from any 
     coastline and completely within 100 miles of any coastline 
     that are available for leasing under the 2002-2007 5-Year Oil 
     and Gas Leasing Program in effect prior to the date of the 
     enactment of the Deep Ocean Energy Resources Act of 2006.
       ``(ii) Lease tracts in production prior to October 1, 2005, 
     completely beyond 4 marine leagues from any coastline and 
     completely within 100 miles of any coastline located on 
     portions of the OCS that were not available for leasing under 
     the 2002-2007 5-Year OCS Oil and Gas Leasing Program in 
     effect prior to the date of the enactment of the Deep Ocean 
     Energy Resources Act of 2006.
       ``(iii) Lease tracts for which leases are issued prior to 
     October 1, 2005, located in the Alaska OCS Region completely 
     beyond 4 marine leagues from any coastline and completely 
     within 100 miles of the coastline.
       ``(B) The Secretary shall share the following percentages 
     of OCS Receipts from the leases described in subparagraph (A) 
     derived during the fiscal year indicated:
       ``(i) For fiscal year 2006, 6.0 percent.
       ``(ii) For fiscal year 2007, 7.0 percent.
       ``(iii) For fiscal year 2008, 8.0 percent.
       ``(iv) For fiscal year 2009, 9.0 percent.
       ``(v) For fiscal year 2010, 12.0 percent.
       ``(vi) For fiscal year 2011, 15.0 percent.
       ``(vii) For fiscal year 2012, 18.0 percent.
       ``(viii) For fiscal year 2013, 21.0 percent.
       ``(ix) For fiscal year 2014, 24.0 percent.
       ``(x) For fiscal year 2015, 27.0 percent.
       ``(xi) For fiscal year 2016, 30.0 percent.
       ``(xii) For fiscal year 2017, 33.0 percent.
       ``(xiii) For fiscal year 2018, 36.0 percent.
       ``(xiv) For fiscal year 2019, 39.0 percent.
       ``(xv) For fiscal year 2020, 42.0 percent.
       ``(xvi) For fiscal year 2021, 45.0 percent.
       ``(xvii) For fiscal year 2022 and each subsequent fiscal 
     year, 50.0 percent.
       ``(C) The provisions of this paragraph shall not apply to 
     leases that could not have been issued but for section 5(k) 
     of this Act or section 6(2) of the Deep Ocean Energy 
     Resources Act of 2006.
       ``(3) Immediate receipts sharing.--Beginning October 1, 
     2005, the Secretary shall share 50 percent of OCS Receipts 
     derived from all leases located completely beyond 4 marine 
     leagues from any coastline and completely within 100 miles of 
     any coastline not included within the provisions of paragraph 
     (2).
       ``(4) Receipts sharing from tracts within 4 marine leagues 
     of any coastline.--Beginning October 1, 2005, the Secretary 
     shall share 75 percent of OCS Receipts derived from all 
     leases located completely or partially within 4 marine 
     leagues from any coastline.
       ``(5) Allocations.--The Secretary shall allocate the OCS 
     Receipts deposited into the separate account established by 
     paragraph (1) that are shared under paragraphs (2), (3), and 
     (4) as follows:
       ``(A) Bonus bids.--Deposits derived from bonus bids from a 
     leased tract, including interest thereon, shall be allocated 
     at the end of each fiscal year as follows:
       ``(i) 85 percent to the Adjacent State.
       ``(ii) 5 percent into the Treasury, which shall be 
     allocated to the account established by section 14 of the 
     Deep Ocean Energy Resources Act of 2006.
       ``(iii) 5 percent into the account established by section 
     23 of the Deep Ocean Energy Resources Act of 2006.
       ``(iv) 5 percent into the account established by section 26 
     of the Deep Ocean Energy Resources Act of 2006.
       ``(B) Royalties.--Deposits derived from royalties from a 
     leased tract, including interest thereon, shall be allocated 
     at the end of each fiscal year as follows:
       ``(i) 85 percent to the Adjacent State and any other 
     producing State or States with a leased tract within its 
     Adjacent Zone within 100 miles of its coastline that 
     generated royalties during the fiscal year, if the other 
     producing or States have a coastline point within 300 miles 
     of any portion of the leased tract, in which case the amount 
     allocated for the leased tract shall be--

       ``(I) one-third to the Adjacent State; and
       ``(II) two-thirds to each producing State, including the 
     Adjacent State, inversely proportional to the distance 
     between the nearest point on the coastline of the producing 
     State and the geographic center of the leased tract.

       ``(ii) 5 percent into the Treasury, which shall be 
     allocated to the account established by section 14 of the 
     Deep Ocean Energy Resources Act of 2006.
       ``(iii) 5 percent into the account established by section 
     23 of the Deep Ocean Energy Resources Act of 2006.
       ``(iv) 5 percent into the account established by section 26 
     of the Deep Ocean Energy Resources Act of 2006.
       ``(c) Treatment of OCS Receipts From Tracts Partially or 
     Completely Beyond 100 Miles of the Coastline.--
       ``(1) Deposit.--The Secretary shall deposit into a separate 
     account in the Treasury the portion of OCS Receipts for each 
     fiscal year that will be shared under paragraphs (2) and (3).
       ``(2) Phased-in receipts sharing.--
       ``(A) Beginning October 1, 2005, the Secretary shall share 
     OCS Receipts derived from the following areas:
       ``(i) Lease tracts located on portions of the Gulf of 
     Mexico OCS Region partially or completely beyond 100 miles of 
     any coastline that were available for leasing under the 2002-
     2007 5-Year Oil and Gas Leasing Program in effect prior to 
     the date of enactment of the Deep Ocean Energy Resources Act 
     of 2006.
       ``(ii) Lease tracts in production prior to October 1, 2005, 
     partially or completely beyond 100 miles of any coastline 
     located on portions of the OCS that were not available for 
     leasing under the 2002-2007 5-Year OCS Oil and Gas Leasing 
     Program in effect prior to the date of enactment of the Deep 
     Ocean Energy Resources Act of 2006.
       ``(iii) Lease tracts for which leases are issued prior to 
     October 1, 2005, located in the Alaska OCS Region partially 
     or completely beyond 100 miles of the coastline.
       ``(B) The Secretary shall share the following percentages 
     of OCS Receipts from the leases described in subparagraph (A) 
     derived during the fiscal year indicated:
       ``(i) For fiscal year 2006, 6.0 percent.
       ``(ii) For fiscal year 2007, 7.0 percent.
       ``(iii) For fiscal year 2008, 8.0 percent.
       ``(iv) For fiscal year 2009, 9.0 percent.
       ``(v) For fiscal year 2010, 12.0 percent.
       ``(vi) For fiscal year 2011, 15.0 percent.
       ``(vii) For fiscal year 2012, 18.0 percent.
       ``(viii) For fiscal year 2013, 21.0 percent.
       ``(ix) For fiscal year 2014, 24.0 percent.
       ``(x) For fiscal year 2015, 27.0 percent.
       ``(xi) For fiscal year 2016, 30.0 percent.
       ``(xii) For fiscal year 2017, 33.0 percent.
       ``(xiii) For fiscal year 2018, 36.0 percent.
       ``(xiv) For fiscal year 2019, 39.0 percent.
       ``(xv) For fiscal year 2020, 42.0 percent.
       ``(xvi) For fiscal year 2021, 45.0 percent.
       ``(xvii) For fiscal year 2022 and each subsequent fiscal 
     year, 50.0 percent.
       ``(C) The provisions of this paragraph shall not apply to 
     leases that could not have been issued but for section 5(k) 
     of this Act or section 6(2) of the Deep Ocean Energy 
     Resources Act of 2006.
       ``(3) Immediate receipts sharing.--Beginning October 1, 
     2005, the Secretary shall share 50 percent of OCS Receipts 
     derived on and after October 1, 2005, from all leases located 
     partially or completely beyond 100 miles of any coastline not 
     included within the provisions of paragraph (2).
       ``(4) Allocations.--The Secretary shall allocate the OCS 
     Receipts deposited into the separate account established by 
     paragraph (1) that are shared under paragraphs (2) and (3) as 
     follows:
       ``(A) Bonus bids.--Deposits derived from bonus bids from a 
     leased tract, including interest thereon, shall be allocated 
     at the end of each fiscal year as follows:
       ``(i) 85 percent to the Adjacent State.
       ``(ii) 5 percent into the Treasury, which shall be 
     allocated to the account established by section 14 of the 
     Deep Ocean Energy Resources Act of 2006.
       ``(iii) 5 percent into the account established by section 
     23 of the Deep Ocean Energy Resources Act of 2006.
       ``(iv) 5 percent into the account established by section 26 
     of the Deep Ocean Energy Resources Act of 2006.
       ``(B) Royalties.--Deposits derived from royalties from a 
     leased tract, including interest thereon, shall be allocated 
     at the end of each fiscal year as follows:
       ``(i) 85 percent to the Adjacent State and any other 
     producing State or States with a leased tract within its 
     Adjacent Zone partially or completely beyond 100 miles of its 
     coastline that generated royalties during the fiscal year, if 
     the other producing State or States have a coastline point 
     within 300 miles of any portion of the

[[Page 13652]]

     leased tract, in which case the amount allocated for the 
     leased tract shall be--

       ``(I) one-third to the Adjacent State; and
       ``(II) two-thirds to each producing State, including the 
     Adjacent State, inversely proportional to the distance 
     between the nearest point on the coastline of the producing 
     State and the geographic center of the leased tract.

       ``(ii) 5 percent into the account established by section 14 
     of the Deep Ocean Energy Resources Act of 2006.
       ``(iii) 5 percent into the account established by section 
     23 of the Deep Ocean Energy Resources Act of 2006.
       ``(iv) 5 percent into the account established by section 26 
     of the Deep Ocean Energy Resources Act of 2006.
       ``(d) Transmission of Allocations.--
       ``(1) In general.--Not later than 90 days after the end of 
     each fiscal year, the Secretary shall transmit--
       ``(A) to each State 60 percent of such State's allocations 
     under subsections (b)(5)(A)(i), (b)(5)(B)(i), (c)(4)(A)(i), 
     and (c)(4)(B)(i) for the immediate prior fiscal year;
       ``(B) to coastal county-equivalent and municipal political 
     subdivisions of such State a total of 40 percent of such 
     State's allocations under subsections (b)(5)(A)(i), 
     (b)(5)(B)(i), (c)(4)(A)(i), and (c)(4)(B)(i), together with 
     all accrued interest thereon; and
       ``(C) the remaining allocations under subsections (b)(5) 
     and (c)(4), together with all accrued interest thereon.
       ``(2) Allocations to coastal county-equivalent political 
     subdivisions.--The Secretary shall make an initial allocation 
     of the OCS Receipts to be shared under paragraph (1)(B) as 
     follows:
       ``(A) 25 percent shall be allocated to coastal county-
     equivalent political subdivisions that are completely more 
     than 25 miles landward of the coastline and at least a part 
     of which lies not more than 75 miles landward from the 
     coastline, with the allocation among such coastal county-
     equivalent political subdivisions based on population.
       ``(B) 75 percent shall be allocated to coastal county-
     equivalent political subdivisions that are completely or 
     partially less than 25 miles landward of the coastline, with 
     the allocation among such coastal county-equivalent political 
     subdivisions to be further allocated as follows:
       ``(i) 25 percent shall be allocated based on the ratio of 
     such coastal county-equivalent political subdivision's 
     population to the coastal population of all coastal county-
     equivalent political subdivisions in the State.
       ``(ii) 25 percent shall be allocated based on the ratio of 
     such coastal county-equivalent political subdivision's 
     coastline miles to the coastline miles of all coastal county-
     equivalent political subdivisions in the State as calculated 
     by the Secretary. In such calculations, coastal county-
     equivalent political subdivisions without a coastline shall 
     be considered to have 50 percent of the average coastline 
     miles of the coastal county-equivalent political subdivisions 
     that do have coastlines.
       ``(iii) 25 percent shall be allocated to all coastal 
     county-equivalent political subdivisions having a coastline 
     point within 300 miles of the leased tract for which OCS 
     Receipts are being shared based on a formula that allocates 
     the funds based on such coastal county-equivalent political 
     subdivision's relative distance from the leased tract.
       ``(iv) 25 percent shall be allocated to all coastal county-
     equivalent political subdivisions having a coastline point 
     within 300 miles of the leased tract for which OCS Receipts 
     are being shared based on the relative level of outer 
     Continental Shelf oil and gas activities in a coastal 
     political subdivision compared to the level of outer 
     Continental Shelf activities in all coastal political 
     subdivisions in the State. The Secretary shall define the 
     term `outer Continental Shelf oil and gas activities' for 
     purposes of this subparagraph to include, but not be limited 
     to, construction of vessels, drillships, and platforms 
     involved in exploration, production, and development on the 
     outer Continental Shelf; support and supply bases, ports, and 
     related activities; offices of geologists, geophysicists, 
     engineers, and other professionals involved in support of 
     exploration, production, and development of oil and gas on 
     the outer Continental Shelf; pipelines and other means of 
     transporting oil and gas production from the outer 
     Continental Shelf; and processing and refining of oil and gas 
     production from the outer Continental Shelf. For purposes of 
     this subparagraph, if a coastal county-equivalent political 
     subdivision does not have a coastline, its coastal point 
     shall be the point on the coastline closest to it.
       ``(3) Allocations to coastal municipal political 
     subdivisions.--The initial allocation to each coastal county-
     equivalent political subdivision under paragraph (2) shall be 
     further allocated to the coastal county-equivalent political 
     subdivision and any coastal municipal political subdivisions 
     located partially or wholly within the boundaries of the 
     coastal county-equivalent political subdivision as follows:
       ``(A) One-third shall be allocated to the coastal county-
     equivalent political subdivision.
       ``(B) Two-thirds shall be allocated on a per capita basis 
     to the municipal political subdivisions and the county-
     equivalent political subdivision, with the allocation to the 
     latter based upon its population not included within the 
     boundaries of a municipal political subdivision.
       ``(e) Investment of Deposits.--Amounts deposited under this 
     section shall be invested by the Secretary of the Treasury in 
     securities backed by the full faith and credit of the United 
     States having maturities suitable to the needs of the account 
     in which they are deposited and yielding the highest 
     reasonably available interest rates as determined by the 
     Secretary of the Treasury.
       ``(f) Use of Funds.--A recipient of funds under this 
     section may use the funds for one or more of the following:
       ``(1) To reduce in-State college tuition at public 
     institutions of higher learning and otherwise support public 
     education, including career technical education.
       ``(2) To make transportation infrastructure improvements.
       ``(3) To reduce taxes.
       ``(4) To promote, fund, and provide for--
       ``(A) coastal or environmental restoration;
       ``(B) fish, wildlife, and marine life habitat enhancement;
       ``(C) waterways construction and maintenance;
       ``(D) levee construction and maintenance and shore 
     protection; and
       ``(E) marine and oceanographic education and research.
       ``(5) To promote, fund, and provide for --
       ``(A) infrastructure associated with energy production 
     activities conducted on the outer Continental Shelf;
       ``(B) energy demonstration projects;
       ``(C) supporting infrastructure for shore-based energy 
     projects;
       ``(D) State geologic programs, including geologic mapping 
     and data storage programs, and state geophysical data 
     acquisition;
       ``(E) State seismic monitoring programs, including 
     operation of monitoring stations;
       ``(F) development of oil and gas resources through enhanced 
     recovery techniques;
       ``(G) alternative energy development, including bio fuels, 
     coal-to-liquids, oil shale, tar sands, geothermal, 
     geopressure, wind, waves, currents, hydro, and other 
     renewable energy;
       ``(H) energy efficiency and conservation programs; and
       ``(I) front-end engineering and design for facilities that 
     produce liquid fuels from hydrocarbons and other biological 
     matter.
       ``(6) To promote, fund, and provide for--
       ``(A) historic preservation programs and projects;
       ``(B) natural disaster planning and response; and,
       ``(C) hurricane and natural disaster insurance programs.
       ``(7) For any other purpose as determined by State law.
       ``(g) No Accounting Required.--No recipient of funds under 
     this section shall be required to account to the Federal 
     Government for the expenditure of such funds, except as 
     otherwise may be required by law. However, States may enact 
     legislation providing for accounting for and auditing of such 
     expenditures. Further, funds allocated under this section to 
     States and political subdivisions may be used as matching 
     funds for other Federal programs.
       ``(h) Effect of Future Laws.--Enactment of any future 
     Federal statute that has the effect, as determined by the 
     Secretary, of restricting any Federal agency from spending 
     appropriated funds, or otherwise preventing it from 
     fulfilling its pre-existing responsibilities as of the date 
     of enactment of the statute, unless such responsibilities 
     have been reassigned to another Federal agency by the statute 
     with no prevention of performance, to issue any permit or 
     other approval impacting on the OCS oil and gas leasing 
     program, or any lease issued thereunder, or to implement any 
     provision of this Act shall automatically prohibit any 
     sharing of OCS Receipts under this section directly with the 
     States, and their coastal political subdivisions, for the 
     duration of the restriction. The Secretary shall make the 
     determination of the existence of such restricting effects 
     within 30 days of a petition by any outer Continental Shelf 
     lessee or producing State.
       ``(i) Definitions.--In this section:
       ``(1) Coastal county-equivalent political subdivision.--The 
     term `coastal county-equivalent political subdivision' means 
     a political jurisdiction immediately below the level of State 
     government, including a county, parish, borough in Alaska, 
     independent municipality not part of a county, parish, or 
     borough in Alaska, or other equivalent subdivision of a 
     coastal State, that lies within the coastal zone.
       ``(2) Coastal municipal political subdivision.--The term 
     `coastal municipal political subdivision' means a 
     municipality located within and part of a county, parish, 
     borough in Alaska, or other equivalent subdivision of a 
     State, all or part of which coastal municipal political 
     subdivision lies within the coastal zone.
       ``(3) Coastal population.--The term `coastal population' 
     means the population of all coastal county-equivalent 
     political subdivisions, as determined by the most recent 
     official data of the Census Bureau.
       ``(4) Coastal zone.--The term `coastal zone' means that 
     portion of a coastal State, including the entire territory of 
     any coastal county-equivalent political subdivision at least 
     a part of which lies, within 75 miles landward from the 
     coastline, or a greater distance as determined by State law 
     enacted to implement this section.
       ``(5) Bonus bids.--The term `bonus bids' means all funds 
     received by the Secretary to issue an outer Continental Shelf 
     minerals lease.
       ``(6) Royalties.--The term `royalties' means all funds 
     received by the Secretary from production of oil or natural 
     gas, or the sale of production taken in-kind, from an outer 
     Continental Shelf minerals lease.
       ``(7) Producing state.--The term `producing State' means an 
     Adjacent State having an Adjacent Zone containing leased 
     tracts from which OCS Receipts were derived.

[[Page 13653]]

       ``(8) OCS receipts.--The term `OCS Receipts' means bonus 
     bids, royalties, and conservation of resources fees.''.

     SEC. 8. REVIEW OF OUTER CONTINENTAL SHELF EXPLORATION PLANS.

       Subsections (c) and (d) of section 11 of the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1340) are amended to 
     read as follows:
       ``(c) Plan Review; Plan Provisions.--
       ``(1) Except as otherwise provided in this Act, prior to 
     commencing exploration pursuant to any oil and gas lease 
     issued or maintained under this Act, the holder thereof shall 
     submit an exploration plan (hereinafter in this section 
     referred to as a `plan') to the Secretary for review which 
     shall include all information and documentation required 
     under paragraphs (2) and (3). The Secretary shall review the 
     plan for completeness within 10 days of submission. If the 
     Secretary finds that the plan is not complete, the Secretary 
     shall notify the lessee with a detailed explanation and 
     require such modifications of such plan as are necessary to 
     achieve completeness. The Secretary shall have 10 days to 
     review a modified plan for completeness. Such plan may apply 
     to more than one lease held by a lessee in any one region of 
     the outer Continental Shelf, or by a group of lessees acting 
     under a unitization, pooling, or drilling agreement, and the 
     lessee shall certify that such plan is consistent with the 
     terms of the lease and is consistent with all statutory and 
     regulatory requirements in effect on the date of issuance of 
     the lease, and any regulations promulgated under this Act to 
     the conservation of resources after the date of the lease 
     issuances. The Secretary shall have 30 days from the date the 
     plan is deemed complete to conduct a review of the plan. If 
     the Secretary finds the plan is not consistent with the lease 
     and all such statutory and regulatory requirements, the 
     Secretary shall notify the lessee with a detailed explanation 
     of such modifications of such plan as are necessary to 
     achieve compliance. The Secretary shall have 30 days to 
     review any modified plan submitted by the lessee. The lessee 
     shall not take any action under the exploration plan within 
     the 30-day review period, or thereafter until the plan has 
     been modified to achieve compliance as so notified.
       ``(2) An exploration plan submitted under this subsection 
     shall include, in the degree of detail which the Secretary 
     may by regulation require--
       ``(A) a schedule of anticipated exploration activities to 
     be undertaken;
       ``(B) a description of equipment to be used for such 
     activities;
       ``(C) the general location of each well to be drilled; and
       ``(D) such other information deemed pertinent by the 
     Secretary.
       ``(3) The Secretary may, by regulation, require that such 
     plan be accompanied by a general statement of development and 
     production intentions which shall be for planning purposes 
     only and which shall not be binding on any party.
       ``(d) Plan Revisions; Conduct of Exploration Activities.--
       ``(1) If a significant revision of an exploration plan 
     under this subsection is submitted to the Secretary, the 
     process to be used for the review of such revision shall be 
     the same as set forth in subsection (c) of this section.
       ``(2) All exploration activities pursuant to any lease 
     shall be conducted in accordance with an exploration plan or 
     a revised plan which has been submitted to and reviewed by 
     the Secretary.''.

     SEC. 9. RESERVATION OF LANDS AND RIGHTS.

       Section 12 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1341) is amended--
       (1) in subsection (a) by adding at the end the following: 
     ``The President may partially or completely revise or revoke 
     any prior withdrawal made by the President under the 
     authority of this section. The President may not revise or 
     revoke a withdrawal that was initiated by a petition from a 
     State and approved by the Secretary of the Interior under 
     subsection (h). A withdrawal by the President may be for a 
     term not to exceed 10 years. When considering potential uses 
     of the outer Continental Shelf, to the maximum extent 
     possible, the President shall accommodate competing interests 
     and potential uses.'';
       (2) by adding at the end the following:
       ``(g) Availability for Leasing Within Certain Areas of the 
     Outer Continental Shelf.--
       ``(1) Prohibition against leasing.--
       ``(A) Unavailable for leasing without state request.--
     Except as otherwise provided in this subsection, from and 
     after enactment of the Deep Ocean Energy Resources Act of 
     2006, the Secretary shall not offer for leasing for oil and 
     gas, or natural gas, any area within 50 miles of the 
     coastline that was withdrawn from disposition by leasing in 
     the Atlantic OCS Region or the Pacific OCS Region, or the 
     Gulf of Mexico OCS Region Eastern Planning Area, as depicted 
     on the maps referred to in this subparagraph, under the 
     `Memorandum on Withdrawal of Certain Areas of the United 
     States Outer Continental Shelf from Leasing Disposition', 34 
     Weekly Comp. Pres. Doc. 1111, dated June 12, 1998, or any 
     area within 50 miles of the coastline not withdrawn under 
     that Memorandum that is included within the Gulf of Mexico 
     OCS Region Eastern Planning Area as indicated on the map 
     entitled `Gulf of Mexico OCS Region State Adjacent Zones and 
     OCS Planning Areas' or the Florida Straits Planning Area as 
     indicated on the map entitled `Atlantic OCS Region State 
     Adjacent Zones and OCS Planning Areas', both of which are 
     dated September 2005 and on file in the Office of the 
     Director, Minerals Management Service.
       ``(B) Areas between 50 and 100 miles from the coastline.--
     Unless an Adjacent State petitions under subsection (h) 
     within one year after the date of the enactment of the Deep 
     Ocean Energy Resources Act of 2006 for natural gas leasing or 
     by June 30, 2009, for oil and gas leasing, the Secretary 
     shall offer for leasing any area more than 50 miles but less 
     than 100 miles from the coastline that was withdrawn from 
     disposition by leasing in the Atlantic OCS Region, the 
     Pacific OCS Region, or the Gulf of Mexico OCS Region Eastern 
     Planning Area, as depicted on the maps referred to in this 
     subparagraph, under the `Memorandum on Withdrawal of Certain 
     Areas of the United States Outer Continental Shelf from 
     Leasing Disposition', 34 Weekly Comp. Pres. Doc. 1111, dated 
     June 12, 1998, or any area more than 50 miles but less than 
     100 miles of the coastline not withdrawn under that 
     Memorandum that is included within the Gulf of Mexico OCS 
     Region Eastern Planning Area as indicated on the map entitled 
     `Gulf of Mexico OCS Region State Adjacent Zones and OCS 
     Planning Areas' or within the Florida Straits Planning Area 
     as indicated on the map entitled `Atlantic OCS Region State 
     Adjacent Zones and OCS Planning Areas', both of which are 
     dated September 2005 and on file in the Office of the 
     Director, Minerals Management Service.
       ``(2) Revocation of withdrawal.--The provisions of the 
     `Memorandum on Withdrawal of Certain Areas of the United 
     States Outer Continental Shelf from Leasing Disposition', 34 
     Weekly Comp. Pres. Doc. 1111, dated June 12, 1998, are hereby 
     revoked and are no longer in effect regarding any areas that 
     are more than 100 miles from the coastline, nor for any areas 
     that are less than 100 miles from the coastline and are 
     included within the Gulf of Mexico OCS Region Central 
     Planning Area as depicted on the map entitled `Gulf of Mexico 
     OCS Region State Adjacent Zones and OCS Planning Areas' dated 
     September 2005 and on file in the Office of the Director, 
     Minerals Management Service. The 2002-2007 5-Year Outer 
     Continental Shelf Oil and Gas Leasing Program is hereby 
     amended to include the areas added to the Gulf of Mexico OCS 
     Region Central Planning Area by this Act to the extent that 
     such areas were included within the original boundaries of 
     proposed Lease Sale 181. The amendment to such leasing 
     program includes a sale in such additional areas, which shall 
     be held no later than June 30, 2007. The Final Environmental 
     Impact Statement prepared for this area for Lease Sale 181 
     shall be deemed sufficient for all purposes for each lease 
     sale in which such area is offered for lease during the 2002-
     2007 5-Year Outer Continental Shelf Oil and Gas Leasing 
     Program without need for supplementation. Any tract only 
     partially added to the Gulf of Mexico OCS Region Central 
     Planning Area by this Act shall be eligible for leasing of 
     the part of such tract that is included within the Gulf of 
     Mexico OCS Region Central Planning Area, and the remainder of 
     such tract that lies outside of the Gulf of Mexico OCS Region 
     Central Planning Area may be developed and produced by the 
     lessee of such partial tract using extended reach or similar 
     drilling from a location on a leased area. Further, any area 
     in the OCS withdrawn from leasing may be leased, and 
     thereafter developed and produced by the lessee using 
     extended reach or similar drilling from a location on a 
     leased area located in an area available for leasing.
       ``(3) Petition for leasing.--
       ``(A) In general.--The Governor of the State, upon 
     concurrence of its legislature, may submit to the Secretary a 
     petition requesting that the Secretary make available any 
     area that is within the State's Adjacent Zone, included 
     within the provisions of paragraph (1), and that (i) is 
     greater than 25 miles from any point on the coastline of a 
     Neighboring State for the conduct of offshore leasing, pre-
     leasing, and related activities with respect to natural gas 
     leasing; or (ii) is greater than 50 miles from any point on 
     the coastline of a Neighboring State for the conduct of 
     offshore leasing, pre-leasing, and related activities with 
     respect to oil and gas leasing. The Adjacent State may also 
     petition for leasing any other area within its Adjacent Zone 
     if leasing is allowed in the similar area of the Adjacent 
     Zone of the applicable Neighboring State, or if not allowed, 
     if the Neighboring State, acting through its Governor, 
     expresses its concurrence with the petition. The Secretary 
     shall only consider such a petition upon making a finding 
     that leasing is allowed in the similar area of the Adjacent 
     Zone of the applicable Neighboring State or upon receipt of 
     the concurrence of the Neighboring State. The date of receipt 
     by the Secretary of such concurrence by the Neighboring State 
     shall constitute the date of receipt of the petition for that 
     area for which the concurrence applies. Except for any area 
     described in the last sentence of paragraph (2), a petition 
     for leasing any part of the Alabama Adjacent Zone that is a 
     part of the Gulf of Mexico Eastern Planning Area, as 
     indicated on the map entitled `Gulf of Mexico OCS Region 
     State Adjacent Zones and OCS Planning Areas' which is dated 
     September 2005 and on file in the Office of the Director, 
     Minerals Management Service, shall require the concurrence of 
     both Alabama and Florida.
       ``(B) Limitations on leasing.--In its petition, a State 
     with an Adjacent Zone that contains leased tracts may 
     condition new leasing for oil and gas, or natural gas for 
     tracts within 25 miles of the coastline by--
       ``(i) requiring a net reduction in the number of production 
     platforms;
       ``(ii) requiring a net increase in the average distance of 
     production platforms from the coastline;

[[Page 13654]]

       ``(iii) limiting permanent surface occupancy on new leases 
     to areas that are more than 10 miles from the coastline;
       ``(iv) limiting some tracts to being produced from shore or 
     from platforms located on other tracts; or
       ``(v) other conditions that the Adjacent State may deem 
     appropriate as long as the Secretary does not determine that 
     production is made economically or technically impracticable 
     or otherwise impossible.
       ``(C) Action by secretary.--Not later than 90 days after 
     receipt of a petition under subparagraph (A), the Secretary 
     shall approve the petition, unless the Secretary determines 
     that leasing the area would probably cause serious harm or 
     damage to the marine resources of the State's Adjacent Zone. 
     Prior to approving the petition, the Secretary shall complete 
     an environmental assessment that documents the anticipated 
     environmental effects of leasing in the area included within 
     the scope of the petition.
       ``(D) Failure to act.--If the Secretary fails to approve or 
     deny a petition in accordance with subparagraph (C) the 
     petition shall be considered to be approved 90 days after 
     receipt of the petition.
       ``(E) Amendment of the 5-year leasing program.--
     Notwithstanding section 18, within 180 days of the approval 
     of a petition under subparagraph (C) or (D), after the 
     expiration of the time limits in paragraph (1)(B), and within 
     180 days after the enactment of the Deep Ocean Energy 
     Resources Act of 2006 for the areas made available for 
     leasing under paragraph (2), the Secretary shall amend the 
     current 5-Year Outer Continental Shelf Oil and Gas Leasing 
     Program to include a lease sale or sales for at least 75 
     percent of the associated areas, unless there are, from the 
     date of approval, expiration of such time limits, or 
     enactment, as applicable, fewer than 12 months remaining in 
     the current 5-Year Leasing Program in which case the 
     Secretary shall include the associated areas within lease 
     sales under the next 5-Year Leasing Program. For purposes of 
     amending the 5-Year Program in accordance with this section, 
     further consultations with States shall not be required. For 
     purposes of this section, an environmental assessment 
     performed under the provisions of the National Environmental 
     Policy Act of 1969 to assess the effects of approving the 
     petition shall be sufficient to amend the 5-Year Leasing 
     Program.
       ``(h) Option to Petition for Extension of Withdrawal From 
     Leasing Within Certain Areas of the Outer Continental 
     Shelf.--
       ``(1) In general.--The Governor of the State, upon the 
     concurrence of its legislature, may submit to the Secretary 
     petitions requesting that the Secretary extend for a period 
     of time of up to 5 years for each petition the withdrawal 
     from leasing for all or part of any area within the State's 
     Adjacent Zone located more than 50 miles, but less than 100 
     miles, from the coastline that is subject to subsection 
     (g)(1)(B). A State may petition multiple times for any 
     particular area but not more than once per calendar year for 
     any particular area. A State must submit separate petitions, 
     with separate votes by its legislature, for oil and gas 
     leasing and for natural gas leasing. A petition of a State 
     may request some areas to be withdrawn from all leasing and 
     some areas to be withdrawn only from one type of leasing. 
     Petitions for extending the withdrawal from leasing of any 
     part of the Alabama Adjacent Zone that is more than 50 miles, 
     but less than 100 miles, from the coastline that is a part of 
     the Gulf of Mexico OCS Region Eastern Planning Area, as 
     indicated on the map entitled `Gulf of Mexico OCS Region 
     State Adjacent Zones and OCS Planning Areas' which is dated 
     September 2005 and on file in the Office of the Director, 
     Minerals Management Service, may be made by either Alabama or 
     Florida.
       ``(2) Action by secretary.--The Secretary shall perform an 
     environmental assessment under the National Environmental 
     Policy Act of 1969 to assess the effects of approving the 
     petition under paragraph (1). Not later than 90 days after 
     receipt of the petition, the Secretary shall approve the 
     petition, unless the Secretary determines that extending the 
     withdrawal from leasing would probably cause serious harm or 
     damage to the marine resources of the State's Adjacent Zone. 
     The Secretary shall not approve a petition from a State that 
     extends the remaining period of a withdrawal of an area from 
     leasing for a total of more than 10 years. However, the 
     Secretary may approve petitions to extend the withdrawal from 
     leasing of any area ad infinitum, subject only to the 
     limitations contained in this subsection.
       ``(3) Failure to act.--If the Secretary fails to approve or 
     deny a petition in accordance with paragraph (2) the petition 
     shall be considered to be approved 90 days after receipt of 
     the petition.
       ``(i) Effect of Other Laws.--Adoption by any Adjacent State 
     of any constitutional provision, or enactment of any State 
     statute, that has the effect, as determined by the Secretary, 
     of restricting either the Governor or the Legislature, or 
     both, from exercising full discretion related to subsection 
     (g) or (h), or both, shall automatically (1) prohibit any 
     sharing of OCS Receipts under this Act with the Adjacent 
     State, and its coastal political subdivisions, and (2) 
     prohibit the Adjacent State from exercising any authority 
     under subsection (h), for the duration of the restriction. 
     The Secretary shall make the determination of the existence 
     of such restricting constitutional provision or State statute 
     within 30 days of a petition by any outer Continental Shelf 
     lessee or coastal State.''.

     SEC. 10. OUTER CONTINENTAL SHELF LEASING PROGRAM.

       Section 18 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1344) is amended--
       (1) in subsection (a), by adding at the end of paragraph 
     (3) the following: ``The Secretary shall, in each 5-year 
     program, include lease sales that when viewed as a whole 
     propose to offer for oil and gas or natural gas leasing at 
     least 75 percent of the available unleased acreage within 
     each OCS Planning Area. Available unleased acreage is that 
     portion of the outer Continental Shelf that is not under 
     lease at the time of the proposed lease sale, and has not 
     otherwise been made unavailable for leasing by law.'';
       (2) in subsection (c), by striking so much as precedes 
     paragraph (3) and inserting the following:
       ``(c)(1) During the preparation of any proposed leasing 
     program under this section, the Secretary shall consider and 
     analyze leasing throughout the entire Outer Continental Shelf 
     without regard to any other law affecting such leasing. 
     During this preparation the Secretary shall invite and 
     consider suggestions from any interested Federal agency, 
     including the Attorney General, in consultation with the 
     Federal Trade Commission, and from the Governor of any 
     coastal State. The Secretary may also invite or consider any 
     suggestions from the executive of any local government in a 
     coastal State that have been previously submitted to the 
     Governor of such State, and from any other person. Further, 
     the Secretary shall consult with the Secretary of Defense 
     regarding military operational needs in the outer Continental 
     Shelf. The Secretary shall work with the Secretary of Defense 
     to resolve any conflicts that might arise regarding offering 
     any area of the outer Continental Shelf for oil and gas or 
     natural gas leasing. If the Secretaries are not able to 
     resolve all such conflicts, any unresolved issues shall be 
     elevated to the President for resolution.
       ``(2) After the consideration and analysis required by 
     paragraph (1), including the consideration of the suggestions 
     received from any interested Federal agency, the Federal 
     Trade Commission, the Governor of any coastal State, any 
     local government of a coastal State, and any other person, 
     the Secretary shall publish in the Federal Register a 
     proposed leasing program accompanied by a draft environmental 
     impact statement prepared pursuant to the National 
     Environmental Policy Act of 1969. After the publishing of the 
     proposed leasing program and during the comment period 
     provided for on the draft environmental impact statement, the 
     Secretary shall submit a copy of the proposed program to the 
     Governor of each affected State for review and comment. The 
     Governor may solicit comments from those executives of local 
     governments in the Governor's State that the Governor, in the 
     discretion of the Governor, determines will be affected by 
     the proposed program. If any comment by such Governor is 
     received by the Secretary at least 15 days prior to 
     submission to the Congress pursuant to paragraph (3) and 
     includes a request for any modification of such proposed 
     program, the Secretary shall reply in writing, granting or 
     denying such request in whole or in part, or granting such 
     request in such modified form as the Secretary considers 
     appropriate, and stating the Secretary's reasons therefor. 
     All such correspondence between the Secretary and the 
     Governor of any affected State, together with any additional 
     information and data relating thereto, shall accompany such 
     proposed program when it is submitted to the Congress.''; and
       (3) by adding at the end the following:
       ``(i) Projection of State Adjacent Zone Resources and State 
     and Local Government Shares of OCS Receipts.--Concurrent with 
     the publication of the scoping notice at the beginning of the 
     development of each 5-year outer Continental Shelf oil and 
     gas leasing program, or as soon thereafter as possible, the 
     Secretary shall--
       ``(1) provide to each Adjacent State a current estimate of 
     proven and potential oil and gas resources located within the 
     State's Adjacent Zone; and
       ``(2) provide to each Adjacent State, and coastal political 
     subdivisions thereof, a best-efforts projection of the OCS 
     Receipts that the Secretary expects will be shared with each 
     Adjacent State, and its coastal political subdivisions, using 
     the assumption that the unleased tracts within the State's 
     Adjacent Zone are fully made available for leasing, including 
     long-term projected OCS Receipts. In addition, the Secretary 
     shall include a macroeconomic estimate of the impact of such 
     leasing on the national economy and each State's economy, 
     including investment, jobs, revenues, personal income, and 
     other categories.''.

     SEC. 11. COORDINATION WITH ADJACENT STATES.

       Section 19 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1345) is amended--
       (1) in subsection (a) in the first sentence by inserting 
     ``, for any tract located within the Adjacent State's 
     Adjacent Zone,'' after ``government''; and
       (2) by adding the following:
       ``(f)(1) No Federal agency may permit or otherwise approve, 
     without the concurrence of the Adjacent State, the 
     construction of a crude oil or petroleum products (or both) 
     pipeline within the part of the Adjacent State's Adjacent 
     Zone that is withdrawn from oil and gas or natural gas 
     leasing, except that such a pipeline may be approved, without 
     such Adjacent State's concurrence, to pass through such 
     Adjacent Zone if at least 50 percent of the production 
     projected to be carried by the pipeline within its first 10 
     years of operation is from areas of the Adjacent State's 
     Adjacent Zone.
       ``(2) No State may prohibit the construction within its 
     Adjacent Zone or its State waters of

[[Page 13655]]

     a natural gas pipeline that will transport natural gas 
     produced from the outer Continental Shelf. However, an 
     Adjacent State may prevent a proposed natural gas pipeline 
     landing location if it proposes two alternate landing 
     locations in the Adjacent State, acceptable to the Adjacent 
     State, located within 50 miles on either side of the proposed 
     landing location.''.

     SEC. 12. ENVIRONMENTAL STUDIES.

       Section 20(d) of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1346) is amended--
       (1) by inserting ``(1)'' after ``(d)''; and
       (2) by adding at the end the following:
       ``(2) For all programs, lease sales, leases, and actions 
     under this Act, the following shall apply regarding the 
     application of the National Environmental Policy Act of 1969:
       ``(A) Granting or directing lease suspensions and the 
     conduct of all preliminary activities on outer Continental 
     Shelf tracts, including seismic activities, are categorically 
     excluded from the need to prepare either an environmental 
     assessment or an environmental impact statement, and the 
     Secretary shall not be required to analyze whether any 
     exceptions to a categorical exclusion apply for activities 
     conducted under the authority of this Act.
       ``(B) The environmental impact statement developed in 
     support of each 5-year oil and gas leasing program provides 
     the environmental analysis for all lease sales to be 
     conducted under the program and such sales shall not be 
     subject to further environmental analysis.
       ``(C) Exploration plans shall not be subject to any 
     requirement to prepare an environmental impact statement, and 
     the Secretary may find that exploration plans are eligible 
     for categorical exclusion due to the impacts already being 
     considered within an environmental impact statement or due to 
     mitigation measures included within the plan.
       ``(D) Within each OCS Planning Area, after the preparation 
     of the first development and production plan environmental 
     impact statement for a leased tract within the Area, future 
     development and production plans for leased tracts within the 
     Area shall only require the preparation of an environmental 
     assessment unless the most recent development and production 
     plan environmental impact statement within the Area was 
     finalized more than 10 years prior to the date of the 
     approval of the plan, in which case an environmental impact 
     statement shall be required.''.

     SEC. 13. REVIEW OF OUTER CONTINENTAL SHELF DEVELOPMENT AND 
                   PRODUCTION PLANS.

       Section 25 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1351(a)) is amended to read as follows:

     ``SEC. 25. REVIEW OF OUTER CONTINENTAL SHELF DEVELOPMENT AND 
                   PRODUCTION PLANS.

       ``(a) Development and Production Plans; Submission to 
     Secretary; Statement of Facilities and Operation; Submission 
     to Governors of Affected States and Local Governments.--
       ``(1) Prior to development and production pursuant to an 
     oil and gas lease issued on or after September 18, 1978, for 
     any area of the outer Continental Shelf, or issued or 
     maintained prior to September 18, 1978, for any area of the 
     outer Continental Shelf, with respect to which no oil or gas 
     has been discovered in paying quantities prior to September 
     18, 1978, the lessee shall submit a development and 
     production plan (hereinafter in this section referred to as a 
     `plan') to the Secretary for review.
       ``(2) A plan shall be accompanied by a statement describing 
     all facilities and operations, other than those on the outer 
     Continental Shelf, proposed by the lessee and known by the 
     lessee (whether or not owned or operated by such lessee) that 
     will be constructed or utilized in the development and 
     production of oil or gas from the lease area, including the 
     location and site of such facilities and operations, the 
     land, labor, material, and energy requirements associated 
     with such facilities and operations, and all environmental 
     and safety safeguards to be implemented.
       ``(3) Except for any privileged or proprietary information 
     (as such term is defined in regulations issued by the 
     Secretary), the Secretary, within 30 days after receipt of a 
     plan and statement, shall--
       ``(A) submit such plan and statement to the Governor of any 
     affected State, and upon request to the executive of any 
     affected local government; and
       ``(B) make such plan and statement available to any 
     appropriate interstate regional entity and the public.
       ``(b) Development and Production Activities in Accordance 
     With Plan as Lease Requirement.--After enactment of the Deep 
     Ocean Energy Resources Act of 2006, no oil and gas lease may 
     be issued pursuant to this Act in any region of the outer 
     Continental Shelf, unless such lease requires that 
     development and production activities be carried out in 
     accordance with a plan that complies with the requirements of 
     this section. This section shall also apply to leases that do 
     not have an approved development and production plan as of 
     the date of enactment of the Deep Ocean Energy Resources Act 
     of 2006.
       ``(c) Scope and Contents of Plan.--A plan may apply to more 
     than one oil and gas lease, and shall set forth, in the 
     degree of detail established by regulations issued by the 
     Secretary--
       ``(1) the general work to be performed;
       ``(2) a description of all facilities and operations 
     located on the outer Continental Shelf that are proposed by 
     the lessee or known by the lessee (whether or not owned or 
     operated by such lessee) to be directly related to the 
     proposed development, including the location and size of such 
     facilities and operations, and the land, labor, material, and 
     energy requirements associated with such facilities and 
     operations;
       ``(3) the environmental safeguards to be implemented on the 
     outer Continental Shelf and how such safeguards are to be 
     implemented;
       ``(4) all safety standards to be met and how such standards 
     are to be met;
       ``(5) an expected rate of development and production and a 
     time schedule for performance; and
       ``(6) such other relevant information as the Secretary may 
     by regulation require.
       ``(d) Completeness Review of the Plan.--
       ``(1) Prior to commencing any activity under a development 
     and production plan pursuant to any oil and gas lease issued 
     or maintained under this Act, the lessee shall certify that 
     the plan is consistent with the terms of the lease and that 
     it is consistent with all statutory and regulatory 
     requirements in effect on the date of issuance of the lease, 
     and any regulations promulgated under this Act related to the 
     conservation of resources after the date of lease issuance. 
     The plan shall include all required information and 
     documentation required under subsection (c).
       ``(2) The Secretary shall review the plan for completeness 
     within 30 days of submission. If the Secretary finds that the 
     plan is not complete, the Secretary shall notify the lessee 
     with a detailed explanation of such modifications of such 
     plan as are necessary to achieve completeness. The Secretary 
     shall have 30 days to review a modified plan for 
     completeness.
       ``(e) Review for Consistency of the Plan.--
       ``(1) After a determination that a plan is complete, the 
     Secretary shall have 120 days to conduct a review of the 
     plan, to ensure that it is consistent with the terms of the 
     lease, and that it is consistent with all such statutory and 
     regulatory requirements applicable to the lease. The review 
     shall ensure that the plan is consistent with lease terms, 
     and statutory and regulatory requirements applicable to the 
     lease, related to national security or national defense, 
     including any military operating stipulations or other 
     restrictions. The Secretary shall seek the assistance of the 
     Department of Defense in the conduct of the review of any 
     plan prepared under this section for a lease containing 
     military operating stipulations or other restrictions and 
     shall accept the assistance of the Department of Defense in 
     the conduct of the review of any plan prepared under this 
     section for any other lease when the Secretary of Defense 
     requests an opportunity to participate in the review. If the 
     Secretary finds that the plan is not consistent, the 
     Secretary shall notify the lessee with a detailed explanation 
     of such modifications of such plan as are necessary to 
     achieve consistency.
       ``(2) The Secretary shall have 120 days to review a 
     modified plan.
       ``(3) The lessee shall not conduct any activities under the 
     plan during any 120-day review period, or thereafter until 
     the plan has been modified to achieve compliance as so 
     notified.
       ``(4) After review by the Secretary provided for by this 
     section, a lessee may operate pursuant to the plan without 
     further review or approval by the Secretary.
       ``(f) Review of Revision of the Approved Plan.--The lessee 
     may submit to the Secretary any revision of a plan if the 
     lessee determines that such revision will lead to greater 
     recovery of oil and natural gas, improve the efficiency, 
     safety, and environmental protection of the recovery 
     operation, is the only means available to avoid substantial 
     economic hardship to the lessee, or is otherwise not 
     inconsistent with the provisions of this Act, to the extent 
     such revision is consistent with protection of the human, 
     marine, and coastal environments. The process to be used for 
     the review of any such revision shall be the same as that set 
     forth in subsections (d) and (e).
       ``(g) Cancellation of Lease on Failure to Submit Plan or 
     Comply With a Plan.--Whenever the owner of any lease fails to 
     submit a plan in accordance with regulations issued under 
     this section, or fails to comply with a plan, the lease may 
     be canceled in accordance with section 5(c) and (d). 
     Termination of a lease because of failure to comply with a 
     plan, including required modifications or revisions, shall 
     not entitle a lessee to any compensation.
       ``(h) Production and Transportation of Natural Gas; 
     Submission of Plan to Federal Energy Regulatory Commission; 
     Impact Statement.--If any development and production plan 
     submitted to the Secretary pursuant to this section provides 
     for the production and transportation of natural gas, the 
     lessee shall contemporaneously submit to the Federal Energy 
     Regulatory Commission that portion of such plan that relates 
     to the facilities for transportation of natural gas. The 
     Secretary and the Federal Energy Regulatory Commission shall 
     agree as to which of them shall prepare an environmental 
     impact statement pursuant to the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.) applicable to 
     such portion of such plan, or conduct studies as to the 
     effect on the environment of implementing it. Thereafter, the 
     findings and recommendations by the agency preparing such 
     environmental impact statement or conducting such studies 
     pursuant to such agreement shall be adopted by the other 
     agency, and such other agency shall not independently prepare 
     another environmental impact statement or duplicate such 
     studies with respect to such portion of such plan, but the 
     Federal Energy Regulatory Commission, in connection with its 
     review of an application for a

[[Page 13656]]

     certificate of public convenience and necessity applicable to 
     such transportation facilities pursuant to section 7 of the 
     Natural Gas Act (15 U.S.C. 717f), may prepare such 
     environmental studies or statement relevant to certification 
     of such transportation facilities as have not been covered by 
     an environmental impact statement or studies prepared by the 
     Secretary. The Secretary, in consultation with the Federal 
     Energy Regulatory Commission, shall promulgate rules to 
     implement this subsection, but the Federal Energy Regulatory 
     Commission shall retain sole authority with respect to rules 
     and procedures applicable to the filing of any application 
     with the Commission and to all aspects of the Commission's 
     review of, and action on, any such application.''.

     SEC. 14. FEDERAL ENERGY NATURAL RESOURCES ENHANCEMENT FUND 
                   ACT OF 2006.

       (a) Findings.--The Congress finds the following:
       (1) Energy and minerals exploration, development, and 
     production on Federal onshore and offshore lands, including 
     bio-based fuel, natural gas, minerals, oil, geothermal, and 
     power from wind, waves, currents, and thermal energy, 
     involves significant outlays of funds by Federal and State 
     wildlife, fish, and natural resource management agencies for 
     environmental studies, planning, development, monitoring, and 
     management of wildlife, fish, air, water, and other natural 
     resources.
       (2) State wildlife, fish, and natural resource management 
     agencies are funded primarily through permit and license fees 
     paid to the States by the general public to hunt and fish, 
     and through Federal excise taxes on equipment used for these 
     activities.
       (3) Funds generated from consumptive and recreational uses 
     of wildlife, fish, and other natural resources currently are 
     inadequate to address the natural resources related to energy 
     and minerals development on Federal onshore and offshore 
     lands.
       (4) Funds available to Federal agencies responsible for 
     managing Federal onshore and offshore lands and Federal-trust 
     wildlife and fish species and their habitats are inadequate 
     to address the natural resources related to energy and 
     minerals development on Federal onshore and offshore lands.
       (5) Receipts derived from sales, bonus bids, and royalties 
     under the mineral leasing laws of the United States are paid 
     to the Treasury through the Minerals Management Service of 
     the Department of the Interior.
       (6) None of the receipts derived from sales, bonus bids, 
     and royalties under the minerals leasing laws of the United 
     States are paid to the Federal or State agencies to examine, 
     monitor, and manage wildlife, fish, air, water, and other 
     natural resources related to natural gas, oil, and mineral 
     exploration and development.
       (b) Purposes.--It is the purpose of this section to--
       (1) establish a fund for the monitoring and management of 
     wildlife and fish, and their habitats, and air, water, and 
     other natural resources related to energy and minerals 
     development on Federal onshore and offshore lands;
       (2) make available receipts derived from sales, bonus bids, 
     royalties, and fees from onshore and offshore gas, mineral, 
     oil, and any additional form of energy and minerals 
     development under the laws of the United States for the 
     purposes of such fund;
       (3) distribute funds from such fund each fiscal year to the 
     Secretary of the Interior and the States; and
       (4) use the distributed funds to secure the necessary 
     trained workforce or contractual services to conduct 
     environmental studies, planning, development, monitoring, and 
     post-development management of wildlife and fish and their 
     habitats and air, water, and other natural resources that may 
     be related to bio-based fuel, gas, mineral, oil, wind, or 
     other energy exploration, development, transportation, 
     transmission, and associated activities on Federal onshore 
     and offshore lands, including, but not limited to--
       (A) pertinent research, surveys, and environmental analyses 
     conducted to identify any impacts on wildlife, fish, air, 
     water, and other natural resources from energy and mineral 
     exploration, development, production, and transportation or 
     transmission;
       (B) projects to maintain, improve, or enhance wildlife and 
     fish populations and their habitats or air, water, or other 
     natural resources, including activities under the Endangered 
     Species Act of 1973;
       (C) research, surveys, environmental analyses, and projects 
     that assist in managing, including mitigating either onsite 
     or offsite, or both, the impacts of energy and mineral 
     activities on wildlife, fish, air, water, and other natural 
     resources; and
       (D) projects to teach young people to live off the land.
       (c) Definitions.--In this section:
       (1) Enhancement fund.--The term ``Enhancement Fund'' means 
     the Federal Energy Natural Resources Enhancement Fund 
     established by subsection (d).
       (2) State.--The term ``State'' means the Governor of the 
     State.
       (d) Establishment and Use of Federal Energy Natural 
     Resources Enhancement Fund.--
       (1) Enhancement fund.--There is established in the Treasury 
     a separate account to be known as the ``Federal Energy 
     Natural Resources Enhancement Fund''.
       (2) Funding.--The Secretary of the Treasury shall deposit 
     in the Enhancement Fund--
       (A) such sums as are provided by sections 9(b)(5)(A)(ii), 
     9(b)(5)(B)(ii), 9(c)(4)(A)(ii), and 9(c)(4)(B)(ii) of the 
     Outer Continental Shelf Lands Act, as amended by this Act;
       (B)(i) during the period of October 1, 2006, through 
     September 30, 2015, one percent of all sums paid into the 
     Treasury under section 35 of the Mineral Leasing Act (30 
     U.S.C. 191), and
       (ii) beginning October 1, 2015, and thereafter, 2.5 percent 
     of all sums paid into the Treasury under section 35 of the 
     Mineral Leasing Act (30 U.S.C. 191); and
       (C)(i) during the period of October 1, 2006, through 
     September 30, 2015, one percent of all sums paid into the 
     Treasury from receipts derived from bonus bids and royalties 
     from other mineral leasing on public lands, and
       (ii) beginning October 1, 2015, and thereafter, 2.5 percent 
     of all sums paid into the Treasury from receipts derived from 
     bonus bids and royalties from other mineral leasing on public 
     lands.
       (3) Investments.--The Secretary of the Treasury shall 
     invest the amounts deposited under paragraph (2) and all 
     accrued interest on the amounts deposited under paragraph (2) 
     only in interest bearing obligations of the United States or 
     in obligations guaranteed as to both principal and interest 
     by the United States.
       (4) Payment to secretary of the interior.--
       (A) In general.--Beginning with fiscal year 2007, and in 
     each fiscal year thereafter, one-third of amounts deposited 
     into the Enhancement Fund, together with the interest 
     thereon, shall be available, without fiscal year limitations, 
     to the Secretary of the Interior for use for the purposes 
     described in (b)(4).
       (B) Withdrawals and transfer of funds.--The Secretary of 
     the Treasury shall withdraw such amounts from the Enhancement 
     Fund as the Secretary of the Interior may request, subject to 
     the limitation in (A), and transfer such amounts to the 
     Secretary of the Interior to be used, at the discretion of 
     the Secretary of the Interior, by the Minerals Management 
     Service, the Bureau of Land Management, and the United States 
     Fish and Wildlife Service for use for the purposes described 
     in subsection (b)(4).
       (5) Payment to states.--
       (A) In general.--Beginning with fiscal year 2007, and in 
     each fiscal year thereafter, two-thirds of amounts deposited 
     into the Enhancement Fund, together with the interest 
     thereon, shall be available, without fiscal year limitations, 
     to the States for use for the purposes described in (b)(4).
       (B) Withdrawals and transfer of funds.--Within the first 90 
     days of each fiscal year, the Secretary of the Treasury shall 
     withdraw amounts from the Enhancement Fund and transfer such 
     amounts to the States based on the proportion of all receipts 
     that were collected the previous fiscal year from Federal 
     leases within the boundaries of each State and each State's 
     outer Continental Shelf Adjacent Zone as determined in 
     accordance with section 4(a) of the Outer Continental Shelf 
     Lands Act (43 U.S.C. 1333(a)), as amended by this Act.
       (C) Use of payments by state.--Each State shall use the 
     payments made under subparagraph (B) only for carrying out 
     projects and programs for the purposes described in (b)(4).
       (D) Encourage use of private funds by state.--Each State 
     shall use the payments made under subparagraph (B) to 
     leverage private funds for carrying out projects for the 
     purposes described in (b)(4).
       (e) Limitation on Use.--Amounts available under this 
     section may not be used for the purchase of any interest in 
     land.
       (f) Reports to Congress.--
       (1) In general.--Beginning in fiscal year 2008 and 
     continuing for each fiscal year thereafter, the Secretary of 
     the Interior and each State receiving funds from the 
     Enhancement Fund shall submit a report to the Committee on 
     Energy and Natural Resources of the Senate and the Committee 
     on Resources of the House of Representatives.
       (2) Required information.--Reports submitted to the 
     Congress by the Secretary of the Interior and States under 
     this subsection shall include the following information 
     regarding expenditures during the previous fiscal year:
       (A) A summary of pertinent scientific research and surveys 
     conducted to identify impacts on wildlife, fish, and other 
     natural resources from energy and mineral developments.
       (B) A summary of projects planned and completed to 
     maintain, improve or enhance wildlife and fish populations 
     and their habitats or other natural resources.
       (C) A list of additional actions that assist, or would 
     assist, in managing, including mitigating either onsite or 
     offsite, or both, the impacts of energy and mineral 
     development on wildlife, fish, and other natural resources.
       (D) A summary of private (non-Federal) funds used to plan, 
     conduct, and complete the plans and programs identified in 
     paragraphs (2)(A) and (2)(B).

     SEC. 15. TERMINATION OF EFFECT OF LAWS PROHIBITING THE 
                   SPENDING OF APPROPRIATED FUNDS FOR CERTAIN 
                   PURPOSES.

       All provisions of existing Federal law prohibiting the 
     spending of appropriated funds to conduct oil and natural gas 
     leasing and preleasing activities, or to issue a lease to any 
     person, for any area of the outer Continental Shelf shall 
     have no force or effect.

     SEC. 16. OUTER CONTINENTAL SHELF INCOMPATIBLE USE.

       (a) In General.--No Federal agency may permit construction 
     or operation (or both) of any facility, or designate or 
     maintain a restricted transportation corridor or operating 
     area on the

[[Page 13657]]

     Federal outer Continental Shelf or in State waters, that will 
     be incompatible with, as determined by the Secretary of the 
     Interior, oil and gas or natural gas leasing and 
     substantially full exploration and production of tracts that 
     are geologically prospective for oil or natural gas (or 
     both).
       (b) Exceptions.--Subsection (a) shall not apply to any 
     facility, transportation corridor, or operating area the 
     construction, operation, designation, or maintenance of which 
     is or will be--
       (1) located in an area of the outer Continental Shelf that 
     is unavailable for oil and gas or natural gas leasing by 
     operation of law;
       (2) used for a military readiness activity (as defined in 
     section 315(f) of Public Law 107-314; 16 U.S.C. 703 note); or
       (3) required in the national interest, as determined by the 
     President.

     SEC. 17. REPURCHASE OF CERTAIN LEASES.

       (a) Authority to Repurchase and Cancel Certain Leases.--The 
     Secretary of the Interior shall repurchase and cancel any 
     Federal oil and gas, geothermal, coal, oil shale, tar sands, 
     or other mineral lease, whether onshore or offshore, if the 
     Secretary finds that such lease qualifies for repurchase and 
     cancellation under the regulations authorized by this 
     section.
       (b) Regulations.--Not later than 365 days after the date of 
     the enactment of this Act, the Secretary shall publish a 
     final regulation stating the conditions under which a lease 
     referred to in subsection (a) would qualify for repurchase 
     and cancellation, and the process to be followed regarding 
     repurchase and cancellation. Such regulation shall include, 
     but not be limited to, the following:
       (1) The Secretary shall repurchase and cancel a lease after 
     written request by the lessee upon a finding by the Secretary 
     that--
       (A) a request by the lessee for a required permit or other 
     approval complied with applicable law, except the Coastal 
     Zone Management Act of 1972 (16 U.S.C. 1451 et seq.), and 
     terms of the lease and such permit or other approval was 
     denied;
       (B) a Federal agency failed to act on a request by the 
     lessee for a required permit, other approval, or 
     administrative appeal within a regulatory or statutory time-
     frame associated with the requested action, whether advisory 
     or mandatory, or if none, within 180 days; or
       (C) a Federal agency attached a condition of approval, 
     without agreement by the lessee, to a required permit or 
     other approval if such condition of approval was not mandated 
     by Federal statute or regulation in effect on the date of 
     lease issuance, or was not specifically allowed under the 
     terms of the lease.
       (2) A lessee shall not be required to exhaust 
     administrative remedies regarding a permit request, 
     administrative appeal, or other required request for approval 
     for the purposes of this section.
       (3) The Secretary shall make a final agency decision on a 
     request by a lessee under this section within 180 days of 
     request.
       (4) Compensation to a lessee to repurchase and cancel a 
     lease under this section shall be the amount that a lessee 
     would receive in a restitution case for a material breach of 
     contract.
       (5) Compensation shall be in the form of a check or 
     electronic transfer from the Department of the Treasury from 
     funds deposited into miscellaneous receipts under the 
     authority of the same Act that authorized the issuance of the 
     lease being repurchased.
       (6) Failure of the Secretary to make a final agency 
     decision on a request by a lessee under this section within 
     180 days of request shall result in a 10 percent increase in 
     the compensation due to the lessee if the lease is ultimately 
     repurchased.
       (c) No Prejudice.--This section shall not be interpreted to 
     prejudice any other rights that the lessee would have in the 
     absence of this section.

     SEC. 18. OFFSITE ENVIRONMENTAL MITIGATION.

       Notwithstanding any other provision of law, any person 
     conducting activities under the Mineral Leasing Act (30 
     U.S.C. 181 et seq.), the Geothermal Steam Act (30 U.S.C. 1001 
     et seq.), the Mineral Leasing Act for Acquired Lands (30 
     U.S.C. 351 et seq.), the Weeks Act (16 U.S.C. 552 et seq.), 
     the General Mining Act of 1872 (30 U.S.C. 22 et seq.), the 
     Materials Act of 1947 (30 U.S.C. 601 et seq.), or the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), may in 
     satisfying any mitigation requirements associated with such 
     activities propose mitigation measures on a site away from 
     the area impacted and the Secretary of the Interior shall 
     accept these proposed measures if the Secretary finds that 
     they generally achieve the purposes for which mitigation 
     measures appertained.

     SEC. 19. AMENDMENTS TO THE MINERAL LEASING ACT.

       Section 17(g) of the Mineral Leasing Act (30 U.S.C. 226(g)) 
     is amended to read as follows:
       ``(g) Regulation of Surface-Disturbing Activities.--
       ``(1) Regulation of surface-disturbing activities.--The 
     Secretary of the Interior, or for National Forest lands, the 
     Secretary of Agriculture, shall regulate all surface-
     disturbing activities conducted pursuant to any lease issued 
     under this Act, and shall determine reclamation and other 
     actions as required in the interest of conservation of 
     surface resources.
       ``(2) Submission of exploration plan; completion review; 
     compliance review.--
       ``(A) Prior to beginning oil and gas exploration 
     activities, a lessee shall submit an exploration plan to the 
     Secretary of the Interior for review.
       ``(B) The Secretary shall review the plan for completeness 
     within 10 days of submission.
       ``(C) In the event the exploration plan is determined to be 
     incomplete, the Secretary shall notify the lessee in writing 
     and specify the items or information needed to complete the 
     exploration plan.
       ``(D) The Secretary shall have 10 days to review any 
     modified exploration plan submitted by the lessee.
       ``(E) To be deemed complete, an exploration plan shall 
     include, in the degree of detail to be determined by the 
     Secretary by rule or regulation--
       ``(i) a drilling plan containing a description of the 
     drilling program;
       ``(ii) the surface and projected completion zone location;
       ``(iii) pertinent geologic data;
       ``(iv) expected hazards, and proposed mitigation measures 
     to address such hazards;
       ``(v) a schedule of anticipated exploration activities to 
     be undertaken;
       ``(vi) a description of equipment to be used for such 
     activities;
       ``(vii) a certification from the lessee stating that the 
     exploration plan complies with all lease, regulatory and 
     statutory requirements in effect on the date of the issuance 
     of the lease and any regulations promulgated after the date 
     of lease issuance related to the conservation of resources;
       ``(viii) evidence that the lessee has secured an adequate 
     bond, surety, or other financial arrangement prior to 
     commencement of any surface disturbing activity;
       ``(ix) a plan that details the complete and timely 
     reclamation of the lease tract; and
       ``(x) such other relevant information as the Secretary may 
     by regulation require.
       ``(F) Upon a determination that the exploration plan is 
     complete, the Secretary shall have 30 days from the date the 
     plan is deemed complete to conduct a review of the plan.
       ``(G) If the Secretary finds the exploration plan is not 
     consistent with all statutory and regulatory requirements 
     described in subparagraph (E)(vii), the Secretary shall 
     notify the lessee with a detailed explanation of such 
     modifications of the exploration plan as are necessary to 
     achieve compliance.
       ``(H) The lessee shall not take any action under the 
     exploration plan within a 30 day review period, or thereafter 
     until the plan has been modified to achieve compliance as so 
     notified.
       ``(I) After review by the Secretary provided by this 
     subsection, a lessee may operate pursuant to the plan without 
     further review or approval by the Secretary.
       ``(3) Plan revisions; conduct of exploration activities.--
       ``(A) If a significant revision of an exploration plan 
     under this subsection is submitted to the Secretary, the 
     process to be used for the review of such revision shall be 
     the same as set forth in paragraph (1) of this subsection.
       ``(B) All exploration activities pursuant to any lease 
     shall be conducted in accordance with an exploration plan 
     that has been submitted to and reviewed by the Secretary or a 
     revision of such plan.
       ``(4) Submission of development and production plan; 
     completeness review; compliance review.--
       ``(A) Prior to beginning oil and gas development and 
     production activities, a lessee shall submit a development 
     and exploration plan to the Secretary of the Interior. Upon 
     submission, such plans shall be subject to a review for 
     completeness.
       ``(B) The Secretary shall review the plan for completeness 
     within 30 days of submission.
       ``(C) In the event a development and production plan is 
     determined to be incomplete, the Secretary shall notify the 
     lessee in writing and specify the items or information needed 
     to complete the plan.
       ``(D) The Secretary shall have 30 days to review for 
     completeness any modified development and production plan 
     submitted by the lessee.
       ``(E) To be deemed complete, a development and production 
     plan shall include, in the degree of detail to be determined 
     by the Secretary by rule or regulation--
       ``(i) a drilling plan containing a description of the 
     drilling program;
       ``(ii) the surface and projected completion zone location;
       ``(iii) pertinent geologic data;
       ``(iv) expected hazards, and proposed mitigation measures 
     to address such hazards;
       ``(v) a statement describing all facilities and operations 
     proposed by the lessee and known by the lessee (whether or 
     not owned or operated by such lessee) that shall be 
     constructed or utilized in the development and production of 
     oil or gas from the leases areas, including the location and 
     site of such facilities and operations, the land, labor, 
     material, and energy requirements associated with such 
     facilities and operations;
       ``(vi) the general work to be performed;
       ``(vii) the environmental safeguards to be implemented in 
     connection with the development and production and how such 
     safeguards are to be implemented;
       ``(viii) all safety standards to be met and how such 
     standards are to be met;
       ``(ix) an expected rate of development and production and a 
     time schedule for performance;
       ``(x) a certification from the lessee stating that the 
     development and production plan complies with all lease, 
     regulatory, and statutory requirements in effect on the date 
     of issuance of the lease, and any regulations promulgated 
     after the date of lease issuance related to the conservation 
     of resources;

[[Page 13658]]

       ``(xi) evidence that the lessee has secured an adequate 
     bond, surety, or other financial arrangement prior to 
     commencement of any surface disturbing activity;
       ``(xii) a plan that details the complete and timely 
     reclamation of the lease tract; and
       ``(xiii) such other relevant information as the Secretary 
     may by regulation require.
       ``(F) Upon a determination that the development and 
     production plan is complete, the Secretary shall have 120 
     days from the date the plan is deemed complete to conduct a 
     review of the plan.
       ``(G) If the Secretary finds the development and production 
     plan is not consistent with all statutory and regulatory 
     requirements described in subparagraph (E)(x), the Secretary 
     shall notify the lessee with a detailed explanation of such 
     modifications of the development and production plan as are 
     necessary to achieve compliance.
       ``(H) The lessee shall not take any action under the 
     development and production plan within a 120 day review 
     period, or thereafter until the plan has been modified to 
     achieve compliance as so notified.
       ``(5) Plan revisions; conduct of development and production 
     activities.--
       ``(A) If a significant revision of a development and 
     production plan under this subsection is submitted to the 
     Secretary, the process to be used for the review of such 
     revision shall be the same as set forth in paragraph (4) of 
     this subsection.
       ``(B) All development and production activities pursuant to 
     any lease shall be conducted in accordance with a development 
     and production plan that has been submitted to and reviewed 
     by the Secretary or a revision of such plan.
       ``(6) Cancellation of lease on failure to submit plan or 
     comply with approved plan.--Whenever the owner of any lease 
     fails to submit a plan in accordance with regulations issued 
     under this section, or fails to comply with a plan, the lease 
     may be canceled in accordance with section 31. Termination of 
     a lease because of failure to comply with a plan, including 
     required modifications or revisions, shall not entitle a 
     lessee to any compensation.''.

     SEC. 20. MINERALS MANAGEMENT SERVICE.

       The bureau known as the ``Minerals Management Service'' in 
     the Department of the Interior shall be known as the 
     ``National Ocean Resources and Royalty Service''.

     SEC. 21. AUTHORITY TO USE DECOMMISSIONED OFFSHORE OIL AND GAS 
                   PLATFORMS AND OTHER FACILITIES FOR ARTIFICIAL 
                   REEF, SCIENTIFIC RESEARCH, OR OTHER USES.

       (a) Short Title.--This section may be cited as the ``Rigs 
     to Reefs Act of 2006''.
       (b) In General.--The Outer Continental Shelf Lands Act (43 
     U.S.C. 1301 et seq.) is amended by inserting after section 9 
     the following:

     ``SEC. 10. USE OF DECOMMISSIONED OFFSHORE OIL AND GAS 
                   PLATFORMS AND OTHER FACILITIES FOR ARTIFICIAL 
                   REEF, SCIENTIFIC RESEARCH, OR OTHER USES.

       ``(a) In General.--The Secretary shall issue regulations 
     under which the Secretary may authorize use of an offshore 
     oil and gas platform or other facility that is decommissioned 
     from service for oil and gas purposes for an artificial reef, 
     scientific research, or any other use authorized under 
     section 8(p) or any other applicable Federal law.
       ``(b) Transfer Requirements.--The Secretary shall not allow 
     the transfer of a decommissioned offshore oil and gas 
     platform or other facility to another person unless the 
     Secretary is satisfied that the transferee is sufficiently 
     bonded, endowed, or otherwise financially able to fulfill its 
     obligations, including but not limited to--
       ``(1) ongoing maintenance of the platform or other 
     facility;
       ``(2) any liability obligations that might arise;
       ``(3) removal of the platform or other facility if 
     determined necessary by the Secretary; and
       ``(4) any other requirements and obligations that the 
     Secretary may deem appropriate by regulation.
       ``(c) Plugging and Abandonment.--The Secretary shall ensure 
     that plugging and abandonment of wells is accomplished at an 
     appropriate time.
       ``(d) Potential to Petition to Opt-Out of Regulations.--An 
     Adjacent State acting through a resolution of its 
     legislature, with concurrence of its Governor, may 
     preliminarily petition to opt-out of the application of 
     regulations promulgated under this section to platforms and 
     other facilities located in the area of its Adjacent Zone 
     within 12 miles of the coastline. Upon receipt of the 
     preliminary petition, the Secretary shall complete an 
     environmental assessment that documents the anticipated 
     environmental effects of approving the petition. The 
     Secretary shall provide the environmental assessment to the 
     State, which then has the choice of no action or confirming 
     its petition by further action of its legislature, with the 
     concurrence of its Governor. The Secretary is authorized to 
     except such area from the application of such regulations, 
     and shall approve any confirmed petition.
       ``(e) Limitation on Liability.--A person that had used an 
     offshore oil and gas platform or other facility for oil and 
     gas purposes and that no longer has any ownership or control 
     of the platform or other facility shall not be liable under 
     Federal law for any costs or damages arising from such 
     platform or other facility after the date the platform or 
     other facility is used for any purpose under subsection (a), 
     unless such costs or damages arise from--
       ``(1) use of the platform or other facility by the person 
     for development or production of oil or gas; or
       ``(2) another act or omission of the person.
       ``(f) Other Leasing and Use not Affected.--This section, 
     and the use of any offshore oil and gas platform or other 
     facility for any purpose under subsection (a), shall not 
     affect--
       ``(1) the authority of the Secretary to lease any area 
     under this Act; or
       ``(2) any activity otherwise authorized under this Act.''.
       (c) Deadline for Regulations.--The Secretary of the 
     Interior shall issue regulations under subsection (b) by not 
     later than 180 days after the date of the enactment of this 
     Act.
       (d) Study and Report on Effects of Removal of Platforms.--
     Not later than one year after the date of enactment of this 
     Act, the Secretary of the Interior, in consultation with 
     other Federal agencies as the Secretary deems advisable, 
     shall study and report to the Congress regarding how the 
     removal of offshore oil and gas platforms and other 
     facilities from the outer Continental Shelf would affect 
     existing fish stocks and coral populations.

     SEC. 22. REPEAL OF REQUIREMENT TO CONDUCT COMPREHENSIVE 
                   INVENTORY OF OCS OIL AND NATURAL GAS RESOURCES.

       The Energy Policy Act of 2005 (Public Law 109-58) is 
     amended--
       (1) by repealing section 357 (119 Stat. 720; 42 U.S.C. 
     15912); and
       (2) in the table of contents in section 1(b), by striking 
     the item relating to such section 357.

     SEC. 23. MINING AND PETROLEUM SCHOOLS.

       (a) Federal Energy and Mineral Resources Professional 
     Development Fund.--
       (1) Professional development fund.--There is established in 
     the Treasury a separate account to be known as the ``Federal 
     Energy And Mineral Resources Professional Development Fund'' 
     (in this section referred to as the ``Professional 
     Development Fund'').
       (2) Funding.--The Secretary of the Treasury shall deposit 
     in the Professional Development Fund--
       (A) such sums as are provided by sections 9(b)(5)(A)(iii), 
     9(b)(5)(B)(iii), 9(c)(4)(A)(iii), and 9(c)(4)(B)(iii) of the 
     Outer Continental Shelf Lands Act, as amended by this Act;
       (B)(i) during the period of October 1, 2006, through 
     September 30, 2015, one percent of all sums paid into the 
     Treasury under section 35 of the Mineral Leasing Act (30 
     U.S.C. 191), and
       (ii) beginning October 1, 2015, and thereafter, 2.5 percent 
     of all sums paid into the Treasury under section 35 of the 
     Mineral Leasing Act (30 U.S.C. 191);
       (C)(i) during the period of October 1, 2006, through 
     September 30, 2015, one percent of all sums paid into the 
     Treasury from receipts derived from bonus bids and royalties 
     from other mineral leasing on public lands, and
       (ii) beginning October 1, 2015, and thereafter, 2.5 percent 
     of all sums paid into the Treasury from receipts derived from 
     bonus bids and royalties from other mineral leasing on public 
     lands;
       (D) donations received under paragraph (4);
       (E) amounts referred to in section 2325 of the Revised 
     Statutes; and
       (F) funds received under section 10 of the Energy and 
     Mineral Schools Reinvestment Act, as amended by this Act.
       (3) Investments.--The Secretary of the Treasury shall 
     invest the amounts deposited under paragraph (2) and all 
     accrued interest on the amounts deposited under paragraph (2) 
     only in interest bearing obligations of the United States or 
     in obligations guaranteed as to both principal and interest 
     by the United States.
       (4) Donations.--The Secretary of the Interior may solicit 
     and accept donations of funds for deposit into the 
     Professional Development Fund.
       (5) Availability to secretary of the interior.--
       (A) In general.--Beginning with fiscal year 2007, and in 
     each fiscal year thereafter, the amounts deposited into the 
     Professional Development Fund, together with the interest 
     thereon, shall be available, without fiscal year limitations, 
     to the Secretary of the Interior for use to carry out the 
     Energy and Mineral Schools Reinvestment Act.
       (B) Withdrawals and transfer of funds.--The Secretary of 
     the Treasury shall withdraw such amounts from the 
     Professional Development Fund as the Secretary of the 
     Interior may request and transfer such amounts to the 
     Secretary of the Interior to be used, at the discretion of 
     the Secretary to carry out the Energy and Mineral Schools 
     Reinvestment Act.
       (b) Maintenance and Restoration of Existing and Historic 
     Petroleum and Mining Engineering Programs.--Public Law 98-409 
     (30 U.S.C. 1221 et seq.) is amended to read as follows:

     ``SECTION 1. SHORT TITLE.

       ``This Act may be cited as the `Energy and Mineral Schools 
     Reinvestment Act'.

     ``SEC. 2. POLICY.

       ``It is the policy of the United States to maintain the 
     human capital needed to preserve and foster the economic, 
     energy, and mineral resources security of the United States. 
     The petroleum and mining engineering programs and the applied 
     geology and geophysics programs at State chartered schools, 
     universities, and institutions that produce human capital are 
     national assets and should be assisted with Federal funds to 
     ensure their continued health and existence.

[[Page 13659]]



     ``SEC. 3. MAINTAINING AND RESTORING HISTORIC AND EXISTING 
                   PETROLEUM AND MINING ENGINEERING EDUCATION 
                   PROGRAMS.

       ``(a) Using the funds in the Federal Energy And Mineral 
     Resources Professional Development Fund, the Secretary of the 
     Interior (in this Act referred to as the `Secretary') shall 
     provide funds to each historic and existing State-chartered 
     recognized petroleum or mining school to assist such schools, 
     universities, and institutions in maintaining programs in 
     petroleum, mining, and mineral engineering education and 
     research. All funds shall be directed only to these programs 
     and shall be subject to the conditions of this section. Such 
     funds shall not be less than 33 percent of the annual outlay 
     of funds under this Act.
       ``(b) In this Act the term `historic and existing State-
     chartered recognized petroleum or mining school' means a 
     school, university, or educational institution with the 
     presence of an engineering program meeting the specific 
     program criteria, established by the member societies of 
     ABET, Inc., for petroleum, mining, or mineral engineering and 
     that is accredited on the date of enactment of the Deep Ocean 
     Energy Resources Act of 2006 by ABET, Inc.
       ``(c) It shall be the duty of each school, university, or 
     institution receiving funds under this section to provide for 
     and enhance the training of undergraduate and graduate 
     petroleum, mining, and mineral engineers through research, 
     investigations, demonstrations, and experiments. All such 
     work shall be carried out in a manner that will enhance 
     undergraduate education.
       ``(d) Each school, university, or institution receiving 
     funds under this Act shall maintain the program for which the 
     funds are provided for 10 years after the date of the first 
     receipt of such funds and take steps agreed to by the 
     Secretary to increase the number of undergraduate students 
     enrolled in and completing the programs of study in 
     petroleum, mining, and mineral engineering.
       ``(e) The research, investigation, demonstration, 
     experiment, and training authorized by this section may 
     include development and production of conventional and non-
     conventional fuel resources, the production of metallic and 
     non-metallic mineral resources including industrial mineral 
     resources, and the production of stone, sand, and gravel. In 
     all cases the work carried out with funds made available 
     under this Act shall include a significant opportunity for 
     participation by undergraduate students.
       ``(f) Research funded by this Act related to energy and 
     mineral resource development and production may include 
     studies of petroleum, mining, and mineral extraction and 
     immediately related beneficiation technology; mineral 
     economics, reclamation technology and practices for active 
     operations, and the development of re-mining systems and 
     technologies to facilitate reclamation that fosters the 
     ultimate recovery of resources at abandoned petroleum, 
     mining, and aggregate production sites.
       ``(g) Grants for basic science and engineering studies and 
     research shall not require additional participation by 
     funding partners. Grants for studies to demonstrate the proof 
     of concept for science and engineering or the demonstration 
     of feasibility and implementation shall include participation 
     by industry and may include funding from other Federal 
     agencies.
       ``(h)(1) No funds made available under this section shall 
     be applied to the acquisition by purchase or lease of any 
     land or interests therein, or the rental, purchase, 
     construction, preservation, or repair of any building.
       ``(2) Funding made available under this section may be used 
     with the express approval of the Secretary for proposals that 
     will provide for maintaining or upgrading of existing 
     laboratories and laboratory equipment. Funding for such 
     maintenance shall not be used for university overhead 
     expenses.
       ``(3) Funding made available under this Act may be used for 
     maintaining and upgrading mines and oil and gas drilling rigs 
     owned by a school, university, or institution described in 
     this section that are used for undergraduate and graduate 
     training and worker safety training. All requests for funding 
     such mines and oil and gas drilling rigs must demonstrate 
     that they have been owned by the school, university, or 
     institution for 5 years prior to the date of enactment of the 
     Deep Ocean Energy Resources Act of 2006 and have been 
     actively used for instructional or training purposes during 
     that time.
       ``(4) Any funding made available under this section for 
     research, investigation, demonstration, experiment, or 
     training shall not be used for university overhead charges in 
     excess of 10 percent of the amount authorized by the 
     Secretary.

     ``SEC. 4. FORMER AND NEW PETROLEUM AND MINING ENGINEERING 
                   PROGRAMS.

       ``A school, university, or educational institution that 
     formerly met the requirements of section 3(b) immediately 
     before the date of the enactment of the Deep Ocean Energy 
     Resources Act of 2006, or that seeks to establish a new 
     program described in section 3(b), shall be eligible for 
     funding under this Act only if it--
       ``(1) establishes a petroleum, mining, or mineral 
     engineering program that meets the specific program criteria 
     and is accredited as such by ABET, Inc.;
       ``(2) agrees to the conditions of subsections (c) through 
     (h) of section 3 and the Secretary, as advised by the 
     Committee established by section 11, determines that the 
     program will strengthen and increase the number of nationally 
     available, well- qualified faculty members in petroleum, 
     mining, and mineral engineering; and
       ``(3) agrees to maintain the accredited program for 10 
     years after the date of the first receipt of funds under this 
     Act.

     ``SEC. 5. FUNDING OF CONSORTIA OF HISTORIC AND EXISTING 
                   SCHOOLS.

       ``Where appropriate, the Secretary may make funds available 
     to consortia of schools, universities, or institutions 
     described in sections 3, 4, and 6, including those consortia 
     that include schools, universities, or institutions that are 
     ineligible for funds under this Act if those schools, 
     universities, or institutions, respectively, have skills, 
     programs, or facilities specifically identified as needed by 
     the consortia to meet the necessary expenses for purposes 
     of--
       ``(1) specific energy and mineral research projects of 
     broad application that could not otherwise be undertaken, 
     including the expenses of planning and coordinating regional 
     petroleum, geothermal, mining, and mineral engineering or 
     beneficiation projects by two or more schools; and
       ``(2) research into any aspects of petroleum, geothermal, 
     mining, or mineral engineering or beneficiation problems, 
     including but not limited to exploration, that are related to 
     the mission of the Department of the Interior and that are 
     considered by the Committee to be desirable.

     ``SEC. 6. SUPPORT FOR SCHOOLS WITH ENERGY AND MINERAL 
                   RESOURCE PROGRAMS IN PETROLEUM AND MINERAL 
                   EXPLORATION GEOLOGY, PETROLEUM GEOPHYSICS, OR 
                   MINING GEOPHYSICS.

       ``(a) Twenty percent of the annual outlay of funds under 
     this Act may be granted to schools, universities, and 
     institutions other than those described in sections 3 and 4.
       ``(b) The Secretary, as advised by the Committee 
     established by section 11, shall determine the eligibility of 
     a college or university to receive funding under this Act 
     using criteria that include--
       ``(1) the presence of a substantial program of 
     undergraduate and graduate geoscience instruction and 
     research in one or more of the following specialties: 
     petroleum geology, geothermal geology, mineral exploration 
     geology, economic geology, industrial minerals geology, 
     mining geology, petroleum geophysics, mining geophysics, 
     geological engineering, or geophysical engineering that has a 
     demonstrated history of achievement;
       ``(2) evidence of institutional commitment for the purposes 
     of this Act that includes a significant opportunity for 
     participation by undergraduate students in research;
       ``(3) evidence that such school, university, or institution 
     has or can obtain significant industrial cooperation in 
     activities within the scope of this Act;
       ``(4) agreement by the school, university, or institution 
     to maintain the programs for which the funding is sought for 
     the 10-year period beginning on the date the school, 
     university, or institution first receives such funds; and
       ``(5) requiring that such funding shall be for the purposes 
     set forth in subsections (c) through (h) of section 3 and 
     subject to the conditions set forth in section 3(h).

     ``SEC. 7. DESIGNATION OF FUNDS FOR SCHOLARSHIPS AND 
                   FELLOWSHIPS.

       ``(a) The Secretary shall utilize 19 percent of the annual 
     outlay of funds under this Act for the purpose of providing 
     merit-based scholarships for undergraduate education, 
     graduate fellowships, and postdoctoral fellowships.
       ``(b) In order to receive a scholarship or a graduate 
     fellowship, an individual student must be a lawful permanent 
     resident of the United States or a United States citizen and 
     must agree in writing to complete a course of studies and 
     receive a degree in petroleum, mining, or mineral 
     engineering, petroleum geology, geothermal geology, mining 
     and economic geology, petroleum and mining geophysics, or 
     mineral economics.
       ``(c) The regulations required by section 9 shall require 
     that an individual, in order to retain a scholarship or 
     graduate fellowship, must continue in one of the course of 
     studies listed in subsection (b) of this section, must remain 
     in good academic standing, as determined by the school, 
     institution, or university and must allow for reinstatement 
     of the scholarship or graduate fellowship by the Secretary, 
     upon the recommendation of the school or institution. Such 
     regulations may also provide for recovery of funds from an 
     individual who fails to complete any of the courses of study 
     listed in subsection (b) of this section after notice that 
     such completion is a requirement of receipt funding under 
     this Act.

     ``SEC. 8. FUNDING CRITERIA FOR INSTITUTIONS.

       ``(a) Each application for funds under this Act shall 
     state, among other things, the nature of the project to be 
     undertaken; the period during which it will be pursued; the 
     qualifications of the personnel who will direct and conduct 
     it; the estimated costs; the importance of the project to the 
     Nation, region, or States concerned; its relation to other 
     known research projects theretofore pursued or being pursued; 
     the extent to which the proposed project will maximize the 
     opportunity for the training of undergraduate petroleum, 
     mining, and mineral engineers; geologists and geophysicists; 
     and the extent of participation by nongovernmental sources in 
     the project.
       ``(b) No funds shall be made available under this Act 
     except for a project approved by the Secretary. All funds 
     shall be made available upon the basis of merit of the 
     project, the need for the knowledge that it is expected to 
     produce when completed, and the opportunity it provides for 
     the undergraduate training of individuals as petroleum, 
     mining, and mineral engineers, geologists, and geophysicists.
       ``(c) Funds available under this Act shall be paid at such 
     times and in such amounts during

[[Page 13660]]

     each fiscal year as determined by the Secretary, and upon 
     vouchers approved by the Secretary. Each school, university, 
     or institution that receives funds under this Act shall--
       ``(1) establish its plan to provide for the training of 
     individuals as petroleum, mining, and mineral engineers, 
     geologists, and geophysicists under a curriculum appropriate 
     to the field of mineral resources and mineral engineering and 
     related fields;
       ``(2) establish policies and procedures that assure that 
     Federal funds made available under this Act for any fiscal 
     year will supplement and, to the extent practicable, increase 
     the level of funds that would, in the absence of such Federal 
     funds, be made available for purposes of this Act, and in no 
     case supplant such funds; and
       ``(3) have an officer appointed by its governing authority 
     who shall receive and account for all funds paid under this 
     Act and shall make an annual report to the Secretary on or 
     before the first day of September of each year, on work 
     accomplished and the status of projects underway, together 
     with a detailed statement of the amounts received under this 
     Act during the preceding fiscal year, and of its 
     disbursements on schedules prescribed by the Secretary.
       ``(d) If any of the funds received by the authorized 
     receiving officer of a program under this Act are found by 
     the Secretary to have been improperly diminished, lost, or 
     misapplied, such funds shall be recovered by the Secretary.
       ``(e) Schools, universities, and institutions receiving 
     funds under this Act are authorized and encouraged to plan 
     and conduct programs under this Act in cooperation with each 
     other and with such other agencies, business enterprises and 
     individuals.

     ``SEC. 9. DUTIES OF SECRETARY.

       ``(a) The Secretary, acting through the Assistant Secretary 
     for Land and Minerals Management, shall administer this Act 
     and shall prescribe such rules and regulations as may be 
     necessary to carry out its provisions not later than 1 year 
     after the enactment of the Deep Ocean Energy Resources Act of 
     2006.
       ``(b)(1) There is established in the Department of the 
     Interior, under the supervision of the Assistant Secretary 
     for Land and Minerals Management, an office to be known as 
     the Office of Petroleum and Mining Schools (hereafter in this 
     Act referred to as the `Office') to administer the provisions 
     of this Act. There shall be a Director of the Office who 
     shall be a member of the Senior Executive Service. The 
     position of the Director shall be allocated from among the 
     existing Senior Executive Service positions at the Department 
     of the Interior and shall be a career reserved position as 
     defined in section 3132(a)(8) of title 5, United States Code.
       ``(2) The Director is authorized to appoint a Deputy 
     Director and to employ such officers and employees as may be 
     necessary to enable the Office to carry out its functions, 
     not to exceed fifteen. Such appointments shall be made from 
     existing positions at the Department of the Interior, and 
     shall be subject to the provisions of title 5, United States 
     Code, governing appointments in the competitive service. Such 
     positions shall be paid in accordance with the provisions of 
     chapter 51 and subchapter III of chapter 53 of such title 
     relating to classification and General Schedule pay rates.
       ``(3) In carrying out his or her functions, the Director 
     shall assist and advise the Secretary and the Committee 
     established by section 11 of this Act by
       ``(A) providing professional and administrative staff 
     support for the Committee including recordkeeping and 
     maintaining minutes of all Committee and subcommittee 
     meetings;
       ``(B) coordinating the activities of the Committee with 
     Federal agencies and departments, and the schools, 
     universities, and institutions to which funds are provided 
     under this Act;
       ``(C) maintaining accurate records of funds disbursed for 
     all scholarships, fellowships, research grants, and grants 
     for career technical education purposes;
       ``(D) preparing any regulations required to implement this 
     Act;
       ``(E) conducting site visits at schools, universities, and 
     institutions receiving funding under this Act; and
       ``(F) serving as a central repository for reports and 
     clearing house for public information on research funded by 
     this Act.
       ``(4) The Director or an employee of the Office shall be 
     present at each meeting of the Committee established by 
     section 11 or a subcommittee of such Committee.
       ``(5) The Director is authorized to contract with public or 
     private agencies, institutions, and organizations and with 
     individuals without regard to section 3324(a) and (b) of 
     title 31, United States Code, and section 5 of title 41, 
     United States Code, in carrying out his or her functions.
       ``(6) As needed the Director shall ascertain whether the 
     requirements of this Act have been met by schools, 
     universities, institutions, and individuals, including the 
     payment of any revenues derived from patents into the fund 
     created by section 23(a) of this Act as required by section 
     10(d).
       ``(c) The Secretary, acting through the Office of Petroleum 
     and Mining Schools, shall furnish such advice and assistance 
     as will best promote the purposes of this Act, shall 
     participate in coordinating research, investigations, 
     demonstrations, and experiments initiated under this Act, 
     shall indicate to schools, universities, and institutions 
     receiving funds under this Act such lines of inquiry that 
     seem most important, and shall encourage and assist in the 
     establishment and maintenance of cooperation between such 
     schools, universities, and institutions, other research 
     organizations, the Department of the Interior, and other 
     Federal agencies.
       ``(d) The Secretary shall establish procedures--
       ``(1) to ensure that each employee and contractor of the 
     Office established by this section and each member of the 
     committee established by section 11 of this Act shall 
     disclose to the Secretary any financial interests in or 
     financial relationships with schools, universities, 
     institutions or individuals receiving funds, scholarships or 
     fellowships under this Act;
       ``(2) to require any employee, contractor, or member of the 
     committee with a financial relationship disclosed under 
     paragraph (1) to recuse themselves from--
       ``(A) any recommendation or decision regarding the awarding 
     of funds, scholarships or fellowships; or
       ``(B) any review, report, analysis or investigation 
     regarding compliance with the provisions of this Act by a 
     school, university, institution or any individual.
       ``(e) On or before the first day of July of each year 
     beginning after the date of enactment of this sentence, 
     schools, universities, and institutions receiving funds under 
     this Act shall certify compliance with this Act and upon 
     request of the Director of the office established by this 
     section provide documentation of such compliance.
       ``(f) An individual granted a scholarship or fellowship 
     with funds provided under this Act shall through their 
     respective school, university, or institution, advise the 
     Director of the office established by this Act of progress 
     towards completion of the course of studies and upon the 
     awarding of the degree within 30 days after the award.
       ``(g) The regulations required by this section shall 
     include a preference for veterans and service members who 
     have received or will receive either the Afghanistan Campaign 
     Medal or the Iraq Campaign Medal as authorized by Public Law 
     108-234, and Executive Order 13363.

     ``SEC. 10. COORDINATION.

       ``(a) Nothing in this Act shall be construed to impair or 
     modify the legal relationship existing between any of the 
     schools, universities, and institutions under whose direction 
     a program is established with funds provided under this Act 
     and the government of the State in which it is located. 
     Nothing in this Act shall in any way be construed to 
     authorize Federal control or direction of education at any 
     school, university, or institution.
       ``(b) The programs authorized by this Act are intended to 
     enhance the Nation's petroleum, mining, and mineral 
     engineering education programs and to enhance educational 
     programs in petroleum and mining exploration and to increase 
     the number of individuals enrolled in and completing these 
     programs. To achieve this intent, the Secretary and the 
     Committee established by section 11 shall receive the 
     continuing advice and cooperation of all agencies of the 
     Federal Government concerned with the identification, 
     exploration, and development of energy and mineral resources.
       ``(c) Nothing in this Act is intended to give or shall be 
     construed as giving the Secretary any authority over mining 
     and mineral resources research conducted by any agency of the 
     Federal Government, or as repealing or diminishing existing 
     authorities or responsibilities of any agency of the Federal 
     Government to plan and conduct, contract for, or assist in 
     research in its area of responsibility and concern with 
     regard to mining and mineral resources.
       ``(d) The schools, universities, and institutions receiving 
     funding under this Act shall make detailed reports to the 
     Office of Petroleum and Mining Schools on projects completed, 
     in progress, or planned with funds provided under this Act. 
     All such reports shall available to the public on not less 
     than an annual basis through the Office of Petroleum and 
     Mining Schools. All uses, products, processes, patents, and 
     other developments resulting from any research, 
     demonstration, or experiment funded in whole or in part under 
     this Act shall be made available promptly to the general 
     public, subject to exception or limitation, if any, as the 
     Secretary may find necessary in the interest of national 
     security. Schools, universities, and institutions receiving 
     patents for inventions funded in whole or in part under this 
     Act shall be governed by the applicable Federal law, except 
     that one percent of gross annual revenues due to the holders 
     of the patents that are derived from such patents shall be 
     paid by the holders of the patents to the Federal Energy and 
     Mineral Resources Professional Development Fund established 
     by section 23(a) of the Deep Ocean Energy Resources Act of 
     2006.

     ``SEC. 11. COMMITTEE ON PETROLEUM, MINING, AND MINERAL 
                   ENGINEERING AND ENERGY AND MINERAL RESOURCE 
                   EDUCATION.

       ``(a) The Secretary shall appoint a Committee on Petroleum, 
     Mining, and Mineral Engineering and Energy and Mineral 
     Resource Education composed of--
       ``(1) the Assistant Secretary of the Interior responsible 
     for land and minerals management and not more than 16 other 
     persons who are knowledgeable in the fields of mining and 
     mineral resources research, including 2 university 
     administrators one of whom shall be from historic and 
     existing petroleum and mining schools; a community, 
     technical, or tribal college administrator; a career 
     technical education educator; 6 representatives equally 
     distributed from the petroleum, mining, and aggregate 
     industries; a

[[Page 13661]]

     working miner; a working oilfield worker; a representative of 
     the Interstate Oil and Gas Compact Commission; a 
     representative from the Interstate Mining Compact Commission; 
     a representative from the Western Governors Association; a 
     representative of the State geologists, and a representative 
     of a State mining and reclamation agency. In making these 16 
     appointments, the Secretary shall consult with interested 
     groups.
       ``(2) The Assistant Secretary for Land and Minerals 
     Management, in the capacity of the Chairman of the Committee, 
     may have present during meetings of the Committee 
     representatives of Federal agencies with responsibility for 
     energy and minerals resources management, energy and mineral 
     resource investigations, energy and mineral commodity 
     information, international trade in energy and mineral 
     commodities, mining safety regulation and mine safety 
     research, and research into the development, production, and 
     utilization of energy and mineral commodities. These 
     representatives shall serve as technical advisors to the 
     committee and shall have no voting responsibilities.
       ``(b) The Committee shall consult with, and make 
     recommendations to, the Secretary on all matters relating to 
     funding energy and mineral resources research, the awarding 
     of scholarships and fellowships and allocation of funding 
     made under this Act. The Secretary shall consult with and 
     carefully consider recommendations of the Committee in such 
     matters.
       ``(c) Committee members, other than officers or employees 
     of Federal, State, or local governments, shall be, for each 
     day (including traveltime) during which they are performing 
     Committee business, paid at a rate fixed by the Secretary but 
     not in excess of the daily equivalent of the maximum rate of 
     pay for level IV of the Executive Schedule under section 5136 
     of title 5, United States Code, and shall be fully reimbursed 
     for travel, subsistence, and related expenses.
       ``(d) The Committee shall be chaired by the Assistant 
     Secretary of the Interior responsible for land and minerals 
     management. There shall also be elected a Vice Chairman by 
     the Committee from among the members referred to in this 
     section. The Vice Chairman shall perform such duties as are 
     determined to be appropriate by the committee, except that 
     the Chairman of the Committee must personally preside at all 
     meetings of the full Committee. The Committee may organize 
     itself into such subcommittees as the Committee may deem 
     appropriate.
       ``(e) Following completion of the report required by 
     section 385 of the Energy Policy Act of 2005, the Committee 
     shall consider the recommendations of the report, ongoing 
     efforts in the schools, universities, and institutions 
     receiving funding under this Act, the Federal and State 
     Governments, and the private sector, and shall formulate and 
     recommend to the Secretary a national plan for a program 
     utilizing the fiscal resources provided under this Act. The 
     Committee shall submit such plan to the Secretary for 
     approval. Upon approval, the plan shall guide the Secretary 
     and the Committee in their actions under this Act.
       ``(f) Section 10 of the Federal Advisory Committee Act (5 
     U.S.C. App. 2) shall not apply to the Committee.

     ``SEC. 12. CAREER TECHNICAL EDUCATION.

       ``(a) Up to 25 percent of the annual outlay of funds under 
     this Act may be granted to schools or institutions including, 
     but not limited to, colleges, universities, community 
     colleges, tribal colleges, technical institutes, and 
     secondary schools, other than those described in sections 3, 
     4, 5, and 6.
       ``(b) The Secretary, as advised by the Committee 
     established under section 11, shall determine the eligibility 
     of a school or institution to receive funding under this 
     section using criteria that include--
       ``(1) the presence of a State-approved program in mining 
     engineering technology, petroleum engineering technology, 
     industrial engineering technology, or industrial technology 
     that--
       ``(A) is focused on technology and its use in energy and 
     mineral production and related maintenance, operational 
     safety, or energy infrastructure protection and security;
       ``(B) prepares students for advanced or supervisory roles 
     in the mining industry or the petroleum industry; and
       ``(C) grants either an associate's degree or a 
     baccalaureate degree in one of the subjects listed in 
     subparagraph (A);
       ``(2) the presence of a program, including a secondary 
     school vocational education program or career academy, that 
     provides training for individuals entering the petroleum, 
     coal mining, or mineral mining industries; or
       ``(3) the presence of a State-approved program of career 
     technical education at a secondary school, offered 
     cooperatively with a community college in one of the 
     industrial sectors of--
       ``(A) agriculture, forestry, or fisheries;
       ``(B) utilities;
       ``(C) construction;
       ``(D) manufacturing; and
       ``(E) transportation and warehousing.
       ``(c) Schools or institutions receiving funds under this 
     section must show evidence of an institutional commitment for 
     the purposes of career technical education and provide 
     evidence that the school or institution has received or will 
     receive industry cooperation in the form of equipment, 
     employee time, or donations of funds to support the 
     activities that are within the scope of this section.
       ``(d) Schools or institutions receiving funds under this 
     section must agree to maintain the programs for which the 
     funding is sought for a period of 10 years beginning on the 
     date the school or institution receives such funds, unless 
     the Secretary finds that a shorter period of time is 
     appropriate for the local labor market or is required by 
     State authorities.
       ``(e) Schools or institutions receiving funds under this 
     section may combine these funds with State funds, and other 
     Federal funds where allowed by law, to carry out programs 
     described in this section, however the use of the funds 
     received under this section must be reported to the Secretary 
     not less than annually.

     ``SEC. 13. DEPARTMENT OF THE INTERIOR WORKFORCE ENHANCEMENT.

       ``(a) Physical Science, Engineering and Technology 
     Scholarship Program.--
       ``(1) From the funds made available to carry out this 
     section, the Secretary shall use 30 percent of that amount to 
     provide financial assistance for education in physical 
     sciences, engineering, and engineering or industrial 
     technology and disciplines that, as determined by the 
     Secretary, are critical to the functions of the Department of 
     the Interior and are needed in the Department of the Interior 
     workforce.
       ``(2) The Secretary of the Interior may award a scholarship 
     in accordance with this section to a person who--
       ``(A) is a citizen of the United States;
       ``(B) is pursuing an undergraduate or advanced degree in a 
     critical skill or discipline described in paragraph (1) at an 
     institution of higher education; and
       ``(C) enters into a service agreement with the Secretary of 
     the Interior as described in subsection (e).
       ``(3) The amount of the financial assistance provided under 
     a scholarship awarded to a person under this subsection shall 
     be the amount determined by the Secretary of the Interior as 
     being necessary to pay all educational expenses incurred by 
     that person, including tuition, fees, cost of books, 
     laboratory expenses, and expenses of room and board. The 
     expenses paid, however, shall be limited to those educational 
     expenses normally incurred by students at the institution of 
     higher education involved.
       ``(b) Scholarship Program for Students Attending Minority 
     Serving Higher Education Institutions.--
       ``(1) From the funds made available to carry out this 
     section, the Secretary shall use 25 percent of that amount to 
     award scholarships in accordance with this section to persons 
     who--
       ``(A) are enrolled in a Minority Serving Higher Education 
     Institutions.
       ``(B) are citizens of the United States;
       ``(C) are pursuing an undergraduate or advanced degree in 
     agriculture, engineering, engineering or industrial 
     technology, or physical sciences, or other discipline that is 
     found by the Secretary to be critical to the functions of the 
     Department of the Interior and are needed in the Department 
     of the Interior workforce; and
       ``(D) enter into a service agreement with the Secretary of 
     the Interior as described in subsection (e).
       ``(2) The amount of the financial assistance provided under 
     a scholarship awarded to a person under this subsection shall 
     be the amount determined by the Secretary of the Interior as 
     being necessary to pay all educational expenses incurred by 
     that person, including tuition, fees, cost of books, 
     laboratory expenses, and expenses of room and board. The 
     expenses paid, however, shall be limited to those educational 
     expenses normally incurred by students at the institution of 
     higher education involved.
       ``(c) Education Partnerships With Minority Serving Higher 
     Education Institutions.--
       ``(1) The Secretary shall require the director of each 
     Bureau and Office, to foster the participation of Minority 
     Serving Higher Education Institutions in any regulatory 
     activity, land management activity, science activity, 
     engineering or industrial technology activity, or engineering 
     activity carried out by the Department of the Interior.
       ``(2) From the funds made available to carry out this 
     section, the Secretary shall use 25 percent of that amount to 
     support activities at Minority Serving Higher Education 
     Institutions by--
       ``(A) funding faculty and students in these institutions in 
     collaborative research projects that are directly related to 
     the Departmental or Bureau missions;
       ``(B) allowing equipment transfer to Minority Serving 
     Higher Education Institutions as a part of a collaborative 
     research program directly related to a Departmental or Bureau 
     mission;
       ``(C) allowing faculty and students at these Minority 
     Serving Higher Education Institutions to participate 
     Departmental and Bureau training activities;
       ``(D) funding paid internships in Departmental and Bureau 
     facilities for students at Minority Serving Higher Education 
     Institutions;
       ``(E) assigning Departmental and Bureau personnel to 
     positions located at Minority Serving Higher Educational 
     Institutions to serve as mentors to students interested in a 
     science, technology or engineering disciplines related to the 
     mission of the Department or the Bureaus.
       ``(d) Kindergarten Through Grade Twelve Science Education 
     Enhancement Program.--
       ``(1) From the funds made available to carry out this 
     section, the Secretary shall use 20 percent of that amount to 
     support activities designed to enhance the knowledge and 
     expertise of teachers of basic sciences, mathematics, 
     engineering and technology in Kindergarten through Grade 
     Twelve programs.
       ``(2) The Secretary is authorized to--

[[Page 13662]]

       ``(A) support competitive events for students under the 
     supervision of teachers that are designed to encourage 
     student interest and knowledge in science, engineering, 
     technology and mathematics;
       ``(B) support competitively-awarded, peer-reviewed programs 
     to promote professional development for mathematics, science, 
     engineering and technology teachers who teach in grades from 
     kindergarten through grade 12;
       ``(C) support summer internships at Department facilities, 
     for mathematics, science, engineering and technology teachers 
     who teach in grades from kindergarten through grade 12; and
       ``(D) sponsor and assist in sponsoring educational and 
     teacher training activities in subject areas identified as 
     critical skills.
       ``(e) Service Agreement for Recipients of Assistance.--
       ``(1) To receive financial assistance under subsection (a) 
     and subsection (b) of this section--
       ``(A) in the case of an employee of the Department of the 
     Interior, the employee shall enter into a written agreement 
     to continue in the employment of the department for the 
     period of obligated service determined under paragraph (2); 
     and
       ``(B) in the case of a person not an employee of the 
     Department of the Interior, the person shall enter into a 
     written agreement to accept and continue employment in the 
     Department of the Interior for the period of obligated 
     service determined under paragraph (2).
       ``(2) For the purposes of this section, the period of 
     obligated service for a recipient of a scholarship under this 
     section shall be the period determined by the Secretary of 
     the Interior as being appropriate to obtain adequate service 
     in exchange for the financial assistance provided under the 
     scholarship. In no event may the period of service required 
     of a recipient be less than the total period of pursuit of a 
     degree that is covered by the scholarship. The period of 
     obligated service is in addition to any other period for 
     which the recipient is obligated to serve in the civil 
     service of the United States.
       ``(3) An agreement entered into under this subsection by a 
     person pursuing an academic degree shall include any terms 
     and conditions that the Secretary of the Interior determines 
     necessary to protect the interests of the United States or 
     otherwise appropriate for carrying out this section.
       ``(f) Refund for Period of Unserved Obligated Service.--
       ``(1) A person who voluntarily terminates service before 
     the end of the period of obligated service required under an 
     agreement entered into under subsection (e) shall refund to 
     the United States an amount determined by the Secretary of 
     the Interior as being appropriate to obtain adequate service 
     in exchange for financial assistance.
       ``(2) An obligation to reimburse the United States imposed 
     under paragraph (1) is for all purposes a debt owed to the 
     United States.
       ``(3) The Secretary of the Interior may waive, in whole or 
     in part, a refund required under paragraph (1) if the 
     Secretary determines that recovery would be against equity 
     and good conscience or would be contrary to the best 
     interests of the United States.
       ``(4) A discharge in bankruptcy under title 11, United 
     States Code, that is entered less than five years after the 
     termination of an agreement under this section does not 
     discharge the person signing such agreement from a debt 
     arising under such agreement or under this subsection.
       ``(g) Relationship to Other Programs.--The Secretary of the 
     Interior shall coordinate the provision of financial 
     assistance under the authority of this section with the 
     provision of financial assistance under the authorities 
     provided in this Act in order to maximize the benefits 
     derived by the Department of Interior from the exercise of 
     all such authorities.
       ``(h) Report.--Not later than September 1 of each year, the 
     Secretary of the Interior shall submit to the Committee on 
     Resources of the House of Representatives and the Committee 
     on Energy and Natural Resources of the Senate a report on the 
     status of the assistance program carried out under this 
     section. The report shall describe the programs within the 
     Department designed to recruit and retain a workforce on a 
     short-term basis and on a long-term basis.
       ``(i) Definitions.--As used in this section:
       ``(1) The term `Minority Serving Higher Education 
     Institutions' means a Hispanic-serving institution, 
     historically Black college or university, Alaska Native-
     serving institution, or tribal college.
       ``(2) The term `Hispanic-serving institution' has the 
     meaning given the term in section 502(a) of the Higher 
     Education Act of 1965 (20 U.S.C. 1101a(a)).
       ``(3) The term `historically Black college or university' 
     has the meaning given the term `part B institution' in 
     section 322 of the Higher Education Act of 1965 (20 U.S.C. 
     1061).
       ``(4) The term `tribal college' has the meaning given the 
     term `tribally controlled college or university' in section 
     2(a) of the Tribally Controlled College Assistance Act of 
     1978 (25 U.S.C. 1801(a)).
       ``(5) The term `institution of higher education' has the 
     meaning given such term in section 101 of the Higher 
     Education Act of 1965 (20 U.S.C. 1001).
       ``(6) The term `Alaska Native-serving institution' has the 
     meaning given the term in section 317 of the Higher Education 
     Act of 1965 (20 U.S.C. 1059d).
       ``(j) Funding.--The Secretary shall spend 3 percent of the 
     annual outlay under this Act to implement this section not to 
     exceed $10,000,000.''.

     SEC. 24. ONSHORE AND OFFSHORE MINERAL LEASE FEES.

       Except as otherwise provided in this Act, the Department of 
     the Interior is prohibited from charging fees applicable to 
     actions on Federal onshore and offshore oil and gas, coal, 
     geothermal, and other mineral leases, including 
     transportation of any production from such leases, if such 
     fees were not established in final regulations prior to the 
     date of issuance of the lease.

     SEC. 25. OCS REGIONAL HEADQUARTERS.

       The headquarters for the Gulf of Mexico Region shall 
     permanently be located within the State of Louisiana within 
     25 miles of the center of Jackson Square, New Orleans, 
     Louisiana. Further, not later than July 1, 2008, the 
     Secretary of the Interior shall establish the headquarters 
     for the Atlantic OCS Region and the headquarters for the 
     Pacific OCS Region within a State bordering the Atlantic OCS 
     Region and a State bordering the Pacific OCS Region, 
     respectively, from among the States bordering those Regions, 
     that petitions by no later than January 1, 2008, for leasing, 
     for oil and gas or natural gas, covering at least 40 percent 
     of the area of its Adjacent Zone within 100 miles of the 
     coastline. Such Atlantic and Pacific OCS Regions headquarters 
     shall be located within 25 miles of the coastline and each 
     MMS OCS regional headquarters shall be the permanent duty 
     station for all Minerals Management Service personnel that on 
     a daily basis spend on average 60 percent or more of their 
     time in performance of duties in support of the activities of 
     the respective Region, except that the Minerals Management 
     Service may house regional inspection staff in other 
     locations. Each OCS Region shall each be led by a Regional 
     Director who shall be an employee within the Senior Executive 
     Service.

     SEC. 26. NATIONAL GEO FUND ACT OF 2006.

       (a) Short Title.--This section may be cited as the 
     ``National Geo Fund Act of 2006''.
       (b) Purposes.--The purpose of this section is to--
       (1) establish a fund to provide funding for the management 
     of geologic programs, geologic mapping, geophysical and other 
     seismic studies, seismic monitoring programs, and the 
     preservation and use of geologic and geophysical data, 
     geothermal and geopressure energy resource management, 
     unconventional energy resources management, and renewable 
     energy management associated with ocean wave, current, and 
     thermal resources;
       (2) make available receipts derived from sales, bonus bids, 
     royalties, and fees from onshore and offshore gas, minerals, 
     oil, and any additional form of energy exploration and 
     development under the laws of the United States for the 
     purposes of the such fund;
       (3) distribute funds from such fund each fiscal year to the 
     Secretary of the Interior and the States; and
       (4) use the distributed funds to manage activities 
     conducted under this section, and to secure the necessary 
     trained workforce, contractual services, and other support, 
     including maintenance and capital investments, to perform the 
     functions and activities described in paragraph (1).
       (c) Definitions.--In this section:
       (1) Geo fund.--The term ``Geo Fund'' means the National Geo 
     Fund established by subsection (d).
       (2) State.--The term ``State'' means the agency of a State 
     designated by its Governor or State law to perform the 
     functions and activities described in subsection (b)(1).
       (d) Establishment and Use of the Geo Fund.--
       (1) Geo fund.--There is established in the Treasury a 
     separate account to be known as the ``National Geo Fund''.
       (2) Funding.--The Secretary of the Treasury shall deposit 
     in the Geo Fund--
       (A) such sums as are provided by sections 9(b)(5)(A)(iv), 
     9(b)(5)(B)(iv), 9(c)(4)(A)(iv), and 9(c)(4)(B)(iv) of the 
     Outer Continental Shelf Lands Act, as amended by this Act;
       (B)(i) during the period of October 1, 2006, through 
     September 30, 2015, one percent of all sums paid into the 
     Treasury under section 35 of the Mineral Leasing Act (30 
     U.S.C. 191), and
       (ii) beginning October 1, 2015, and thereafter, 2.5 percent 
     of all sums paid into the Treasury under section 35 of the 
     Mineral Leasing Act (30 U.S.C. 191);
       (C)(i) during the period of October 1, 2006, through 
     September 30, 2015, one percent of all sums paid into the 
     Treasury from receipts derived from bonus bids and royalties 
     from other mineral leasing on public lands, and
       (ii) beginning October 1, 2015, and thereafter, 2.5 percent 
     of all sums paid into the Treasury from receipts derived from 
     bonus bids and royalties from other mineral leasing on public 
     lands; and
       (D) $65,000,000 from outer Continental Shelf bonus bids, 
     royalties, and conservation of resources fees received in 
     fiscal year 2007, and $50,000,000 from outer Continental 
     Shelf bonus bids, royalties, and conservation of resources 
     fees received in each of fiscal years 2008, 2009, 2010, 2011, 
     2012, and 2013, 75 percent of which shall be used to 
     implement subsection (g) and all of which shall remain 
     available until expended.
       (3) Investments.--The Secretary of the Treasury shall 
     invest the amounts deposited under paragraph (2) and all 
     accrued interest on the amounts deposited under paragraph (2) 
     only in interest bearing obligations of the United States or 
     in obligations guaranteed as to both principal and interest 
     by the United States.

[[Page 13663]]

       (4) Availability to secretary of the interior.--
       (A) In general.--Beginning with fiscal year 2007, and in 
     each fiscal year thereafter, one-third of amounts deposited 
     into the Geo Fund, unless otherwise specified herein, 
     together with the interest thereon, shall be available, 
     without fiscal year limitations, to the Secretary of the 
     Interior for use for the purposes described in subsection 
     (b)(4).
       (B) Withdrawals and transfer of funds.--The Secretary of 
     the Treasury shall withdraw such amounts from the Geo Fund as 
     the Secretary of the Interior may request, subject to the 
     limitation in subparagraph (A), and transfer such amounts to 
     the Secretary of the Interior to be used, at the discretion 
     of the Secretary of the Interior, by the Minerals Management 
     Service, the Bureau of Land Management, and the United States 
     Geological Survey for the purposes described in subsection 
     (b)(4). No funds distributed from the Geo Fund may be used to 
     purchase an interest in land.
       (5) Payment to states.--
       (A) In general.--Beginning with fiscal year 2007, and in 
     each fiscal year thereafter, two-thirds of amounts deposited 
     into the Geo Fund, unless otherwise specified herein, 
     together with the interest thereon, shall be available, 
     without fiscal year limitations, to the States for use for 
     the purposes described in subsection (b)(4).
       (B) Withdrawals and transfer of funds.--Within the first 90 
     days of each fiscal year, the Secretary of the Treasury shall 
     withdraw amounts from the Geo Fund and transfer such amounts 
     to the States based on a formula devised by the Secretary of 
     the Interior based on the relative needs of the States and 
     the needs of the Nation.
       (C) Use of payments by states.--Each State shall use the 
     payments made under subparagraph (B) only for carrying out 
     projects and programs for the purposes described in 
     subsection (b)(4). No funds distributed from the Geo Fund may 
     be used to purchase an interest in land.
       (D) Encouragement of use of private funds by states.--Each 
     State shall use the payments made under subparagraph (B) to 
     leverage private funds for carrying out projects for the 
     purposes described in subsection (b)(4).
       (E) Report to congress.--Beginning in fiscal year 2008 and 
     continuing for each fiscal year thereafter, the Secretary of 
     the Interior and each State receiving funds from the Geo Fund 
     shall submit a report to the Committee on Energy and Natural 
     Resources of the Senate and the Committee on Resources of the 
     House of Representatives. Reports submitted to the Congress 
     by the Secretary of the Interior and the States shall include 
     detailed information regarding expenditures during the 
     previous fiscal year.
       (e) Strategic Unconventional Resources.--
       (1) Program.--The Secretary of the Interior shall establish 
     a program for production of fuels from strategic 
     unconventional resources, and production of oil and gas 
     resources using CO2 enhanced recovery. The program shall 
     focus initially on activities and domestic resources most 
     likely to result in significant production in the near 
     future, and shall include work necessary to improve 
     extraction techniques, including surface and in situ 
     operations. The program shall include characterization and 
     assessment of potential resources, a sampling program, 
     appropriate laboratory and other analyses and testing, and 
     assessment of methods for exploration and development of 
     these strategic unconventional resources.
       (2) Pilot projects.--The program created in paragraph (1) 
     shall include, but not be limited to, pilot projects on (A) 
     the Maverick Basin heavy oil and tar sands formations of 
     Texas, including the San Miguel deposits, (B) the Greater 
     Green River Basin heavy oil, oil shale, tar sands, and coal 
     deposits of Colorado, Utah, and Wyoming, (C) the shale, tar 
     sands, heavy oil, and coal deposits in the Alabama-
     Mississippi-Tennessee region, (D) the shale, tar sands, heavy 
     oil, and coal deposits in the Ohio River valley, and (E) 
     strategic unconventional resources in California. The 
     Secretary shall identify and report to Congress on feasible 
     incentives to foster recovery of unconventional fuels by 
     private industry within the United States. Such incentives 
     may include, but are not limited to, long-term contracts for 
     the purchase of unconventional fuels for defense purposes, 
     Federal grants and loan guarantees for necessary capital 
     expenditures, and favorable terms for the leasing of 
     Government lands containing unconventional resources.
       (3) Definitions.--In this subsection:
       (A) Strategic unconventional resources.--The term 
     ``strategic unconventional resources'' means hydrocarbon 
     resources, including heavy oil, oil shale, tar sands, and 
     coal deposits, from which liquid fuels may be produced.
       (B) In situ extraction methods.--The term ``in situ 
     extraction methods'' means recovery techniques that are 
     applied to the resources while they are still in the ground, 
     and are in commercial use or advanced stages of development. 
     Such techniques include, but are not limited to, steam 
     flooding, steam-assisted gravity drainage (including 
     combination with electric power generation where 
     appropriate), cyclic steam stimulation, air injection, and 
     chemical treatment.
       (4) Funding.--The Secretary shall carry out the program for 
     the production of strategic unconventional fuels with funds 
     from the Geo Fund in each of fiscal years 2007 through 2011 
     in the amount of not less than $35,000,000 each year. Each 
     pilot project shall be allocated not less than $4,000,000 per 
     year in each of fiscal years 2007 through 2011.
       (f) Support of Geothermal and Geopressure Oil and Gas 
     Energy Production.--
       (1) In general.--The Secretary shall carry out a grant 
     program in support of geothermal and geopressure oil and gas 
     energy production. The program shall include grants for a 
     total of not less than three assessments of the use of 
     innovative geothermal techniques such as organic rankine 
     cycle systems at marginal, unproductive, and productive oil 
     and gas wells, and not less than one assessment of the use of 
     innovative geopressure techniques. The Secretary shall, to 
     the extent practicable and in the public interest, make 
     awards that--
       (A) include not less than five oil or gas well sites per 
     project award;
       (B) use a range of oil or gas well hot water source 
     temperatures from 150 degrees Fahrenheit to 300 degrees 
     Fahrenheit;
       (C) use existing or new oil or gas wells;
       (D) cover a range of sizes from 175 kilowatts to one 
     megawatt;
       (E) are located at a range of sites including tribal lands, 
     Federal lease, State, or privately owned sites;
       (F) can be replicated at a wide range of sites;
       (G) facilitate identification of optimum techniques among 
     competing alternatives;
       (H) include business commercialization plans that have the 
     potential for production of equipment at high volumes and 
     operation and support at a large number of sites; and
       (I) satisfy other criteria that the Secretary determines 
     are necessary to carry out the program.
     The Secretary shall give preference to assessments that 
     address multiple elements contained in subparagraphs (A) 
     through (I).
       (2) Grant awards.--
       (A) In general.--Each grant award for assessment of 
     innovative geothermal or geopressure technology such as 
     organic rankine cycle systems at oil and gas wells made by 
     the Secretary under this section shall include--
       (i) necessary and appropriate site engineering study;
       (ii) detailed economic assessment of site specific 
     conditions;
       (iii) appropriate feasibility studies to determine ability 
     for replication;
       (iv) design or adaptation of existing technology for site 
     specific circumstances or conditions;
       (v) installation of equipment, service, and support; and
       (vi) monitoring for a minimum of one year after 
     commissioning date.
       (3) Competitive grant selection.--Not less than 180 days 
     after the date of the enactment of this Act, the Secretary 
     shall conduct a national solicitation for applications for 
     grants under the program. Grant recipients shall be selected 
     on a competitive basis based on criteria in subsection (b).
       (4) Federal share.--The Federal share of costs of grants 
     under this subsection shall be provided from funds made 
     available to carry out this section. The Federal share of the 
     cost of a project carried out with such a grant shall not 
     exceed 50 percent of such cost.
       (5) Funding.--The Secretary shall carry out the grant 
     program under this subsection with funds from the Geo Fund in 
     each of fiscal years 2007 through 2011 in the amount of not 
     less than $5,000,000 each fiscal year. No funds authorized 
     under this section may be used for the purposes of drilling 
     new wells.
       (6) Amendment.--Section 4 of the Geothermal Steam Act of 
     1970 (30 USC 1003) is amended by adding at the end the 
     following:
       ``(h) Geothermal Resources Co-Produced With the Minerals.--
     Any person who holds a lease or who operates a cooperative or 
     unit plan under the Mineral Leasing Act, in the absence of an 
     existing lease for geothermal resources under this Act, shall 
     upon notice to the Secretary have the right to utilize any 
     geothermal resources co-produced with the minerals for which 
     the lease was issued during the operation of that lease or 
     cooperative or unit plan, for the generating of electricity 
     to operate the lease. Any electricity that is produced in 
     excess of that which is required to operate the lease and 
     that is sold for purposes outside of the boundary of the 
     lease shall be subject to the requirements of section 5.''
       (g) Liquid Fuels Grant Program.--
       (1) Program.--The Secretary of the Interior shall establish 
     a grant program for facilities for coal-to-liquids, petroleum 
     coke-to-liquids, oil shale, tar sands, heavy oil, and Alaska 
     natural gas-to-liquids and to assess the production of low-
     rank coal water fuel (in this subsection referred to as 
     ``LRCWF'').
       (2) LRCWF.--The LRCWF grant project location shall use 
     lignite coal from fields near the Tombigbee River within 60 
     miles of a land-grant college and shall be allocated 
     $15,000,000 for expenditure during fiscal year 2007.
       (3) Definitions.--In this subsection:
       (A) Coal-to-liquids front-end engineering and design.--The 
     terms ``coal-to-liquids front-end engineering and design'' 
     and ``FEED'' mean those expenditures necessary to engineer, 
     design, and obtain permits for a facility for a particular 
     geographic location which will utilize a process or technique 
     to produce liquid fuels from coal resources.
       (B) Low-rank coal water fuel.--In this subsection the term 
     ``low-rank coal water fuel'' means a liquid fuel produced 
     from hydrothermal treatment of lignite and sub-bituminous 
     coals.
       (4) Grant provisions.--All grants shall require a 50 
     percent non-Federal cost share. The first 4 FEED grant 
     recipients who receive full

[[Page 13664]]

     project construction financing commitments, based on earliest 
     calendar date, shall not be required to repay any of their 
     grants. The next 4 FEED grant recipients who receive such 
     commitments shall be required to repay 25 percent of the 
     grant. The next 4 FEED grant recipients who receive such 
     commitments shall be required to repay 50 percent of the 
     grant, and the remaining FEED grant recipeints shall be 
     required to repay 75 percent of the grant. The LRCWF 
     recipient shall not be required to repay the grant. Any 
     required repayment shall be paid as part of the closing 
     process for any construction financing relating to the grant. 
     No repayment shall require the payment of interest if repaid 
     within 5 years of the issuance of the grant. FEED grants 
     shall be be limited to a maximum of $1,000,000 per 1,000 
     barrels per day of liquid fuels production capacity, not to 
     exceed $25 million per year.
       (5) Funding.--The Secretary shall carry out the grant 
     program established by this subsection with funds from the 
     Geo Fund.
       (h) Renewable Energy From Ocean Wave, Current, and Thermal 
     Resources.--
       (1) Program.--The Secretary of the Interior shall establish 
     a grant program for the production of renewable energy from 
     ocean waves, currents, and thermal resources.
       (2) Grant provisions.--All grants under this subsection 
     shall require a 50 percent non-Federal cost share.
       (3) Funding.--The Secretary shall carry out this grant 
     program with funds from the Geo Fund in each of fiscal years 
     2007 through 2011 in the amount of not less than $6,000,000 
     each year, and thereafter in such amounts as the Secretary 
     may find appropriate.
       (i) Amendment to the Surface Mining Control and Reclamation 
     Act of 1977.--Section 517 of the Surface Mining Control and 
     Reclamation Act of 1977 (30 U.S.C. 1267) is amended by adding 
     adding at the end the following:
       ``(i) Any person who provides the regulatory authority with 
     a map under subsection (b)(1) shall not be liable to any 
     other person in any way for the accuracy or completeness of 
     any such map which was not prepared and certified by or on 
     behalf of such person.''.

     SEC. 27. LEASES FOR AREAS LOCATED WITHIN 100 MILES OF 
                   CALIFORNIA OR FLORIDA.

       (a) Authorization to Cancel and Exchange Certain Existing 
     Oil and Gas Leases; Prohibition on Submittal of Exploration 
     Plans for Certain Leases Prior to June 30, 2010.--
       (1) Authority.--Within 2 years after the date of enactment 
     of this Act, the lessee of an existing oil and gas lease for 
     an area located completely within 100 miles of the coastline 
     within the California or Florida Adjacent Zones shall have 
     the option, without compensation, of exchanging such lease 
     for a new oil and gas lease having a primary term of 5 years. 
     For the area subject to the new lease, the lessee may select 
     any unleased tract on the outer Continental Shelf that is in 
     an area available for leasing. Further, with the permission 
     of the relevant Governor, such a lessee may convert its 
     existing oil and gas lease into a natural gas lease having a 
     primary term of 5 years and covering the same area as the 
     existing lease or another area within the same State's 
     Adjacent Zone within 100 miles of the coastline.
       (2) Administrative process.--The Secretary of the Interior 
     shall establish a reasonable administrative process to 
     implement paragraph (1). Exchanges and conversions under 
     subsection (a), including the issuance of new leases, shall 
     not be considered to be major Federal actions for purposes of 
     the National Environmental Policy Act of 1969 (42 U.S.C. 4321 
     et seq.). Further, such actions conducted in accordance with 
     this section are deemed to be in compliance all provisions of 
     the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et 
     seq.).
       (3) Operating restrictions.--A new lease issued in exchange 
     for an existing lease under this section shall be subject to 
     such national defense operating stipulations on the OCS tract 
     covered by the new lease as may be applicable upon issuance.
       (4) Priority.--The Secretary shall give priority in the 
     lease exchange process based on the amount of the original 
     bonus bid paid for the issuance of each lease to be 
     exchanged. The Secretary shall allow leases covering partial 
     tracts to be exchanged for leases covering full tracts 
     conditioned upon payment of additional bonus bids on a per-
     acre basis as determined by the average per acre of the 
     original bonus bid per acre for the partial tract being 
     exchanged.
       (5) Exploration plans.--Any exploration plan submitted to 
     the Secretary of the Interior after the date of the enactment 
     of this Act and before July 1, 2010, for an oil and gas lease 
     for an area wholly within 100 miles of the coastline within 
     the California Adjacent Zone or Florida Adjacent Zone shall 
     not be treated as received by the Secretary until the earlier 
     of July 1, 2010, or the date on which a petition by the 
     Adjacent State for oil and gas leasing covering the area 
     within which is located the area subject to the oil and gas 
     lease was approved.
       (b) Further Lease Cancellation and Exchange Provisions.--
       (1) Cancellation of lease.--As part of the lease exchange 
     process under this section, the Secretary shall cancel a 
     lease that is exchanged under this section.
       (2) Consent of lessees.--All lessees holding an interest in 
     a lease must consent to cancellation of their leasehold 
     interests in order for the lease to be cancelled and 
     exchanged under this section.
       (3) Waiver of rights.--As a prerequisite to the exchange of 
     a lease under this section, the lessee must waive any rights 
     to bring any litigation against the United States related to 
     the transaction.
       (4) Plugging and abandonment.--The plugging and abandonment 
     requirements for any wells located on any lease to be 
     cancelled and exchanged under this section must be complied 
     with by the lessees prior to the cancellation and exchange.
       (c) Area Partially Within 100 Miles of Florida.--An 
     existing oil and gas lease for an area located partially 
     within 100 miles of the coastline within the Florida n 
     Adjacent Zone may only be developed and produced using wells 
     drilled from well-head locations at least 100 miles from the 
     coastline to any bottom-hole location on the area of the 
     lease. This subsection shall not apply if Florida has 
     petitioned for leasing closer to the coastline than 100 
     miles.
       (d) Existing Oil and Gas Lease Defined.--In this section 
     the term ``existing oil and gas lease'' means an oil and gas 
     lease in effect on the date of the enactment of this Act.

     SEC. 28. COASTAL IMPACT ASSISTANCE.

        Section 31 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1356a) is repealed.

     SEC. 29. OIL SHALE AND TAR SANDS AMENDMENTS.

       (a) Repeal of Requirement to Establish Payments.--Section 
     369(o) of the Energy Policy Act of 2005 (Public Law 109-58; 
     119 Stat. 728; 42 U.S.C. 15927) is repealed.
       (b) Treatment of Revenues.--Section 21 of the Mineral 
     Leasing Act (30 U.S.C. 241) is amended by adding at the end 
     the following:
       ``(e) Revenues.--
       ``(1) In general.--Notwithstanding the provisions of 
     section 35, all revenues received from and under an oil shale 
     or tar sands lease shall be disposed of as provided in this 
     subsection.
       ``(2) Royalty rates for commercial leases.--
       ``(A) Royalty rates.--The Secretary shall model the royalty 
     schedule for oil shale and tar sands leases based on the 
     royalty program currently in effect for the production of 
     synthetic crude oil from oil sands in the Province of 
     Alberta, Canada.
       ``(B) Reduction.--The Secretary shall reduce any royalty 
     otherwise required to be paid under subparagraph (A) under 
     any oil shale or tar sands lease on a sliding scale based 
     upon market price, with a 10 percent reduction if the average 
     futures price of NYMEX Light Sweet Crude, or a similar index, 
     drops, for the previous quarter year, below $50 (in January 
     1, 2006, dollars), and an 80 percent reduction if the average 
     price drops below $30 (in January 1, 2006, dollars) for the 
     quarter previous to the one in which the production is sold.
       ``(3) Disposition of revenues.--
       ``(A) Deposit.--The Secretary shall deposit into a separate 
     account in the Treasury all revenues derived from any oil 
     shale or tar sands lease.
       ``(B) Allocations to states and local political 
     subdivisions.--The Secretary shall allocate 50 percent of the 
     revenues deposited into the account established under 
     subparagraph (A) to the State within the boundaries of which 
     the leased lands are located, with a portion of that to be 
     paid directly by the Secretary to the State's local political 
     subdivisions as provided in this paragraph.
       ``(C) Transmission of allocations.--
       ``(i) In general.--Not later than the last business day of 
     the month after the month in which the revenues were 
     received, the Secretary shall transmit--

       ``(I) to each State two-thirds of such State's allocations 
     under subparagraph (B), and in accordance with clauses (ii) 
     and (iii) to certain county-equivalent and municipal 
     political subdivisions of such State a total of one-third of 
     such State's allocations under subparagraph (B), together 
     with all accrued interest thereon; and
       ``(II) the remaining balance of such revenues deposited 
     into the account that are not allocated under subparagraph 
     (B), together with interest thereon, shall be transmitted to 
     the miscellaneous receipts account of the Treasury, except 
     that until a lease has been in production for 20 years 50 
     percent of such remaining balance derived from a lease shall 
     be paid in accordance with subclause (I).

       ``(ii) Allocations to certain county-equivalent political 
     subdivisions.--The Secretary shall under clause (i)(I) make 
     equitable allocations of the revenues to county-equivalent 
     political subdivisions that the Secretary determines are 
     closely associated with the leasing and production of oil 
     shale and tar sands, under a formula that the Secretary shall 
     determine by regulation.
       ``(iii) Allocations to municipal political subdivisions.--
     The initial allocation to each county-equivalent political 
     subdivision under clause (ii) shall be further allocated to 
     the county-equivalent political subdivision and any municipal 
     political subdivisions located partially or wholly within the 
     boundaries of the county-equivalent political subdivision on 
     an equitable basis under a formula that the Secretary shall 
     determine by regulation.
       ``(D) Investment of deposits.--The deposits in the Treasury 
     account established under this section shall be invested by 
     the Secretary of the Treasury in securities backed by the 
     full faith and credit of the United States having maturities 
     suitable to the needs of the account and yielding the highest 
     reasonably available interest rates as determined by the 
     Secretary of the Treasury.
       ``(E) Use of funds.--A recipient of funds under this 
     subsection may use the funds for any lawful purpose as 
     determined by State law. Funds allocated under this 
     subsection to States

[[Page 13665]]

     and local political subdivisions may be used as matching 
     funds for other Federal programs without limitation. Funds 
     allocated to local political subdivisions under this 
     subsection may not be used in calculation of payments to such 
     local political subdivisions under programs for payments in 
     lieu of taxes or other similar programs.
       ``(F) No accounting required.--No recipient of funds under 
     this subsection shall be required to account to the Federal 
     Government for the expenditure of such funds, except as 
     otherwise may be required by law.
       ``(4) Definitions.--In this subsection:
       ``(A) County-equivalent political subdivision.--The term 
     `county-equivalent political subdivision' means a political 
     jurisdiction immediately below the level of State government, 
     including a county, parish, borough in Alaska, independent 
     municipality not part of a county, parish, or borough in 
     Alaska, or other equivalent subdivision of a State.
       ``(B) Municipal political subdivision.--The term `municipal 
     political subdivision' means a municipality located within 
     and part of a county, parish, borough in Alaska, or other 
     equivalent subdivision of a State.''.

     SEC. 30. AVAILABILITY OF OCS RECEIPTS TO PROVIDE PAYMENTS 
                   UNDER SECURE RURAL SCHOOLS AND COMMUNITY SELF-
                   DETERMINATION ACT OF 2000.

       Section 9 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1338) is amended by inserting after subsection (i), as 
     added by section 7 of this Act, the following new subsection:
       ``(j) Availability of Funds for Payments Under Secure Rural 
     Schools and Community Self-Determination Act of 2000.--
     Notwithstanding any other provision of this section, 
     $50,000,000 of OCS Receipts shall be available to the 
     Secretary of the Treasury for each of fiscal years 2007 
     through 2012 to make payments under sections 102 and 103 of 
     the Secure Rural Schools and Community Self-Determination Act 
     of 2000 (Public Law 106-393; 16 U.S.C. 500 note). The 
     Secretary of the Treasury shall use the funds made available 
     by this subsection to make such payments in lieu of using 
     funds in the Treasury not otherwise appropriated, as 
     otherwise authorized by sections 102(b)(3) and 103(b)(2) of 
     such Act.''.

  The Acting CHAIRMAN. No amendment to the committee amendment is in 
order except those printed in House Report 109-540. Each amendment may 
be offered only in the order printed in the report, by a Member 
designated in the report, shall be considered read, shall be debatable 
for the time specified in the report, equally divided and controlled by 
the proponent and an opponent, shall not be subject to amendment, and 
shall not be subject to a demand for division of the question.


                  Amendment No. 1 Offered by Mr. Pombo

  The Acting CHAIRMAN. It is now in order to consider amendment No. 1 
printed in House Report 109-540.
  Mr. POMBO. Mr. Chairman, I have an amendment made in order under 
House Resolution 897.
  The Acting CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 1 offered by Mr. Pombo:
       Page 12, line 4, strike ``December 1, 1996, through 
     December 31, 2000,'' and insert ``January 1, 1998, through 
     December 31, 1999,''.
       Page 12, line 18, strike subsection (t).
       Page 13, line 19, strike ``not less than $1.00 nor more 
     than $4.00'' and insert ``$3.75''.
       Page 16, line 8, strike ``6.0'' and insert ``4.6''.
       Page 16, line 9, strike ``7.0'' and insert ``5.95''.
       Page 16, line 10, strike ``8.0'' and insert ``6.8''.
       Page 16, line 11, strike ``9.0'' and insert ``7.65''.
       Page 16, line 12, strike ``12.0'' and insert ``10.20''.
       Page 16, line 13, strike ``15.0'' and insert ``12.75''.
       Page 16, line 15, strike ``18.0'' and insert ``15.30''.
       Page 16, line 17, strike ``21.0'' and insert ``17.85''.
       Page 16, line 19, strike ``24.0'' and insert ``20.40''.
       Page 16, line 21, strike ``27.0'' and insert ``22.95''.
       Page 16, line 22, strike ``30.0'' and insert ``25.50''.
       Page 16, line 24, strike ``33.0'' and insert ``28.05''.
       Page 17, line 1, strike ``36.0'' and insert ``30.60''.
       Page 17, line 3, strike ``39.0'' and insert ``33.15''.
       Page 17, line 5, strike ``42.0'' and insert ``35.70''.
       Page 17, line 7, strike ``45.0'' and insert ``38.25''.
       Page 17, line 10, strike ``50.0'' and insert ``42.50''.
       Page 17, line 17, strike ``50'' and insert ``42.50''.
       Page 17, line 23, strike the existing paragraph (4) and 
     insert the following:
       ``(4) Receipts sharing from tracts within 4 marine leagues 
     of any coastline.--
       ``(A) Areas described in paragraph (2).--
       ``(i) Beginning October 1, 2005, and continuing through 
     September 30, 2010, the Secretary shall share 25 percent of 
     OCS Receipts derived from all leases located within 4 marine 
     leagues from any coastline within areas described in 
     paragraph (2). For each fiscal year after September 30, 2010, 
     the Secretary shall increase the percent shared in 5 percent 
     increments each fiscal year until the sharing rate for all 
     leases located within 4 marine leagues from any coastline 
     within areas described in paragraph (2) becomes 42.5 percent.
       ``(ii) During fiscal year 2016, the Secretary shall conduct 
     an analysis of all of the areas described in paragraph (3) 
     and subsection (c)(3) to determine the total of OCS Receipts 
     derived from such areas during the period of fiscal year 2007 
     through fiscal year 2016. The Secretary shall subtract the 
     amount of $4 billion from the total of such OCS Receipts. If 
     the result is a positive number, the Secretary shall divide 
     such positive number by $4 billion. The resulting quotient, 
     not to exceed 0.5, shall then be multiplied times 25. The 
     product of such multiplication shall be added to 42.5 and the 
     sum shall be the percent that the Secretary shall share for 
     fiscal year 2017 and all future years from OCS Receipts 
     derived from all leases located within 4 marine leagues from 
     any coastline within areas described in paragraph (2), unless 
     increased by the provisions of (iii).
       ``(iii) Beginning October 1, 2017, the Secretary shall 
     share, in addition to the share established by (i), as 
     modified by (ii) if any, amounts determined as follows, with 
     the total of the amounts shared under this paragraph not to 
     exceed in any fiscal year an amount equal to 63.75 percent of 
     total OCS Receipts derived from all leases located within 4 
     marine leagues from any coastline within areas described in 
     paragraph (2)--25 percent of the total of OCS Receipts 
     derived from areas described in paragraph (3) and subsection 
     (c)(3) that exceed the following amounts for the fiscal year 
     indicated: for fiscal year 2017 the amount of $900,000,000 
     and for each fiscal year thereafter add $100,000,000. Amounts 
     added under this clause to be shared, if any, for any fiscal 
     year shall be added to the sharing base for all subsequent 
     years and shall be allocated among State Adjacent Zones on a 
     basis proportional to the result from the calculation in 
     clause (i).
       ``(B) Areas not described in paragraph (2).--Beginning 
     October 1, 2005, the Secretary shall share 63.75 percent of 
     OCS receipts derived from all leases located completely or 
     partially within 4 marine leagues from any coastline within 
     areas not described paragraph (2).''.
       Page 18, beginning at line 11, strike ``as follows:'' and 
     all that follows through line 22 and insert ``to the Adjacent 
     State.''.
       Page 19, beginning at line 2, strike ``as follows:'' and 
     all that follows through line 3 and insert ``to the Adjacent 
     State''.
       Page 19, lines 12 through 19, redesignate the quoted 
     subclauses (I) and (II) as clauses (i) and (ii), and move 
     such clauses 2 ems to the left.
       Page 19, strike line 20 and all that follows through page 
     20, line 6.
       Page 21, line 17, strike ``6.0'' and insert ``4.6''.
       Page 21, line 18, strike ``7.0'' and insert ``5.95''.
       Page 21, line 19, strike ``8.0'' and insert ``6.80''.
       Page 21, line 20, strike ``9.0'' and insert ``7.65''.
       Page 21, line 21, strike ``12.0'' and insert ``10.20''.
       Page 21, line 22, strike ``15.0'' and insert ``12.75''.
       Page 21, line 24, strike ``18'' and insert ``15.30''.
       Page 22, line 1, strike ``21.0'' and insert ``17.85''.
       Page 22, line 3, strike ``24.0'' and insert ``20.40''.
       Page 22, line 5, strike ``27.0'' and insert ``22.95''.
       Page 22, line 6, strike ``30.0'' and insert ``25.50''.
       Page 22, line 8, strike ``33.0'' and insert ``28.05''.
       Page 22, line 10, strike ``36.0'' and insert ``30.60''.
       Page 22, line 12, strike ``39.0'' and insert ``33.15''.
       Page 22, line 14, strike ``42.0'' and insert ``35.70''.
       Page 22, line 16, strike ``45.0'' and insert ``38.25''.
       Page 22, line 19, strike ``50.0'' and insert ``42.50''.
       Page 23, line 2, strike ``50'' and insert ``42.5''.
       Page 23, line 6, strike the period and insert the 
     following: ``, except that the Secretary shall only share 25 
     percent of such OCS Receipts derived from all such leases 
     within a State's Adjacent Zone if no leasing is allowed 
     within any portion of that State's Adjacent Zone located 
     completely within 100 miles of any coastline.''.
       Page 23, beginning on line 13, strike ``each fiscal year'' 
     and all that follows through line 25 and insert ``each fiscal 
     year to the Adjacent State''.
       Page 24, beginning at line 4, strike ``as follows:'' and 
     all that follows through line 5 and insert ``to the Adjacent 
     State''.
       Page 24, lines 15 through 22, redesignate the quoted 
     subclauses (I) and (II) as clauses

[[Page 13666]]

     (i) and (ii), and move such clauses 2 ems to the left.
       Page 24, strike line 23 and all that follows through page 
     25, line 6.
       Page 25, strike lines 11 through 20 and insert the 
     following:
       ``(A) to each State 60 percent of such State's allocations 
     under subsections (b)(5)(A), (b)(5)(B), (c)(4)(A), and 
     (c)(4)(B) for the immediate prior fiscal year;
       ``(B) to each coastal county-equivalent and municipal 
     political subdivisions of such State a total of 40 percent of 
     such State's allocations under subsections (b)(5)(A), 
     (b)(5)(B), (c)(4)(A), and (c)(4)(B), together with all 
     accrued interest thereon; and
       Page 34, beginning at line 15, strike section 8.
       Page 37, beginning at line 18, strike ``was initiated'' and 
     all that follows through the end of the sentence and insert 
     ``is extended by a State under subsection (h)''.
       Page 37, line 20, strike the period and insert the 
     following: ``, nor may the President withdraw from leasing 
     any area for which a State failed to prohibit, or petition to 
     prohibit, leasing under subsection (g). Further, in the area 
     of the outer Continental Shelf more than 100 miles from any 
     coastline, not more than 25 percent of the acreage of any OCS 
     Planning Area may be withdrawn from leasing under this 
     section at any point in time.''.
       Page 40, line 16, insert a period after the word ``effect'' 
     and strike the remainder of the sentence.
       Page 41, line 7, strike ``June 30'' and insert ``April 
     30''.
       Page 46, line 7, strike ``Petition for Extension Of'' and 
     insert ``Extend''.
       Page 46, strike lines 10 through 12 and insert the 
     following:
       ``(1) In general.--A State, through its Governor and upon 
     the concurrence of its legislature, may''.
       Page 46, line 14, strike ``petition'' and insert 
     ``extension''.
       Page 46, line 18, strike ``petition'' and insert 
     ``extend''.
       Page 46, beginning at line 20, strike ``submit separate 
     petitions'' and insert ``prepare separate extensions''.
       Page 46, beginning at line 22, strike ``A petition of a 
     State may request'' and insert ``An extension by a State may 
     affect''.
       Page 46, beginning at line 25, strike ``Petitions for 
     extending'' and insert ``Extensions of''.
       Page 47, strike line 11 and all that follows through page 
     48, line 6.
       Page 48, strike the close quotation marks and the following 
     period at line 20, and after line 20 insert the following:
       ``(j) Prohibition on Leasing East of the Military Mission 
     Line.--
       ``(1) Notwithstanding any other provision of law, from and 
     after the enactment of the Deep Ocean Energy Resources Act of 
     2006, no area of the outer Continental Shelf located in the 
     Gulf of Mexico east of the military mission line may be 
     offered for leasing for oil and gas or natural gas.
       ``(2) In this subsection, the term `military mission line' 
     means a line located at 86 degrees, 41minutes West Longitude, 
     and extending south from the coast of Florida to the outer 
     boundary of United States territorial waters in the Gulf of 
     Mexico.''.
       Page 55, beginning at line 3, strike section 13.
       Page 61, beginning at line 20, amend section 14 to read as 
     follows:

     SEC. 14. FEDERAL ENERGY NATURAL RESOURCES ENHANCEMENT ACT OF 
                   2006.

       (a) Findings.--The Congress finds the following:
       (1) Energy and minerals exploration, development, and 
     production on Federal onshore and offshore lands, including 
     bio-based fuel, natural gas, minerals, oil, geothermal, and 
     power from wind, waves, currents, and thermal energy, 
     involves significant outlays of funds by Federal and State 
     wildlife, fish, and natural resource management agencies for 
     environmental studies, planning, development, monitoring, and 
     management of wildlife, fish, air, water, and other natural 
     resources.
       (2) State wildlife, fish, and natural resource management 
     agencies are funded primarily through permit and license fees 
     paid to the States by the general public to hunt and fish, 
     and through Federal excise taxes on equipment used for these 
     activities.
       (3) Funds generated from consumptive and recreational uses 
     of wildlife, fish, and other natural resources currently are 
     inadequate to address the natural resources related to energy 
     and minerals development on Federal onshore and offshore 
     lands.
       (4) Funds available to Federal agencies responsible for 
     managing Federal onshore and offshore lands and Federal-trust 
     wildlife and fish species and their habitats are inadequate 
     to address the natural resources related to energy and 
     minerals development on Federal onshore and offshore lands.
       (5) Receipts derived from sales, bonus bids, and royalties 
     under the mineral leasing laws of the United States are paid 
     to the Treasury through the Minerals Management Service of 
     the Department of the Interior.
       (6) None of the receipts derived from sales, bonus bids, 
     and royalties under the minerals leasing laws of the United 
     States are paid to the Federal or State agencies to examine, 
     monitor, and manage wildlife, fish, air, water, and other 
     natural resources related to natural gas, oil, and mineral 
     exploration and development.
       (b) Purposes.--It is the purpose of this section to--
       (1) authorize expenditures for the monitoring and 
     management of wildlife and fish, and their habitats, and air, 
     water, and other natural resources related to energy and 
     minerals development on Federal onshore and offshore lands;
       (2) authorize expenditures for each fiscal year to the 
     Secretary of the Interior and the States; and
       (3) use the appropriated funds to secure the necessary 
     trained workforce or contractual services to conduct 
     environmental studies, planning, development, monitoring, and 
     post-development management of wildlife and fish and their 
     habitats and air, water, and other natural resources that may 
     be related to bio-based fuel, gas, mineral, oil, wind, or 
     other energy exploration, development, transportation, 
     transmission, and associated activities on Federal onshore 
     and offshore lands, including, but not limited to--
       (A) pertinent research, surveys, and environmental analyses 
     conducted to identify any impacts on wildlife, fish, air, 
     water, and other natural resources from energy and mineral 
     exploration, development, production, and transportation or 
     transmission;
       (B) projects to maintain, improve, or enhance wildlife and 
     fish populations and their habitats or air, water, or other 
     natural resources, including activities under the Endangered 
     Species Act of 1973;
       (C) research, surveys, environmental analyses, and projects 
     that assist in managing, including mitigating either onsite 
     or offsite, or both, the impacts of energy and mineral 
     activities on wildlife, fish, air, water, and other natural 
     resources; and
       (D) projects to teach young people to live off the land.
       (c) Definitions.--In this section:
       (1) Enhancement program.--The term ``Enhancement Program'' 
     means the Federal Energy Natural Resources Enhancement 
     Program established by this section.
       (2) State.--The term ``State'' means the Governor of the 
     State.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out the Enhancement Program 
     $150,000,000 for each of fiscal years 2007 through 2017.
       (e) Establishment of Federal Energy Natural Resources 
     Enhancement Program.--
       (1) In general.--There is established the Federal Energy 
     Natural Resources Enhancement Program.
       (2) Payment to secretary of the interior.--Beginning with 
     fiscal year 2007, and in each fiscal year thereafter, one-
     third of amounts appropriated for the Enhancement Program 
     shall be available to the Secretary of the Interior for use 
     for the purposes described in subsection (b)(3).
       (3) Payment to states.--
       (A) In general.--Beginning with fiscal year 2007, and in 
     each fiscal year thereafter, two-thirds of amounts 
     appropriated for the Enhancement Program shall be available 
     to the States for use for the purposes described in (b)(3).
       (B) Use of payments by state.--Each State shall use the 
     payments made under this paragraph only for carrying out 
     projects and programs for the purposes described in (b)(3).
       (C) Encourage use of private funds by state.--Each State 
     shall use the payments made under this paragraph to leverage 
     private funds for carrying out projects for the purposes 
     described in (b)(3).
       (f) Limitation on Use.--Amounts made available under this 
     section may not be used for the purchase of any interest in 
     land.
       (g) Reports to Congress.--
       (1) In general.--Beginning in fiscal year 2008 and 
     continuing for each fiscal year thereafter, the Secretary of 
     the Interior and each State receiving funds from the 
     Enhancement Fund shall submit a report to the Committee on 
     Energy and Natural Resources of the Senate and the Committee 
     on Resources of the House of Representatives.
       (2) Required information.--Reports submitted to the 
     Congress by the Secretary of the Interior and States under 
     this subsection shall include the following information 
     regarding expenditures during the previous fiscal year:
       (A) A summary of pertinent scientific research and surveys 
     conducted to identify impacts on wildlife, fish, and other 
     natural resources from energy and mineral developments.
       (B) A summary of projects planned and completed to 
     maintain, improve or enhance wildlife and fish populations 
     and their habitats or other natural resources.
       (C) A list of additional actions that assist, or would 
     assist, in managing, including mitigating either onsite or 
     offsite, or both, the impacts of energy and mineral 
     development on wildlife, fish, and other natural resources.
       (D) A summary of private (non-Federal) funds used to plan, 
     conduct, and complete the plans and programs identified in 
     paragraphs (2)(A) and (2)(B).
        Page 72, line 14, insert after ``offshore,'' the 
     following: ``but not including any outer Continental Shelf 
     oil and gas leases that are subject to litigation in the 
     Court of Federal Claims on January 1, 2006,''.

[[Page 13667]]

       Page 75, beginning at line 13, strike section 19.
       Page 87, beginning at line 18, strike section 23 and insert 
     the following:

     SEC. 23. MINING AND PETROLEUM SCHOOLS.

       (a) Maintenance and Restoration of Existing and Historic 
     Petroleum and Mining Engineering Programs.--Public Law 98-409 
     (30 U.S.C. 1221 et seq.) is amended to read as follows:

     ``SECTION 1. SHORT TITLE.

       ``This Act may be cited as the `Energy and Mineral Schools 
     Reinvestment Act'.

     ``SEC. 2. POLICY.

       ``It is the policy of the United States to maintain the 
     human capital needed to preserve and foster the economic, 
     energy, and mineral resources security of the United States. 
     The petroleum and mining engineering programs and the applied 
     geology and geophysics programs at State chartered schools, 
     universities, and institutions that produce human capital are 
     national assets and should be assisted with Federal funds to 
     ensure their continued health and existence.

     ``SEC. 3. MAINTAINING AND RESTORING HISTORIC AND EXISTING 
                   PETROLEUM AND MINING ENGINEERING EDUCATION 
                   PROGRAMS.

       ``(a) The Secretary of the Interior (in this Act referred 
     to as the `Secretary') shall provide funds to historic and 
     existing State-chartered recognized petroleum or mining 
     schools to assist such schools, universities, and 
     institutions in maintaining programs in petroleum, mining, 
     and mineral engineering education and research. All funds 
     shall be directed only to these programs and shall be subject 
     to the conditions of this section. Such funds shall not be 
     less than 25 percent of the annual outlay of funds authorized 
     by section 23(d) of the Deep Ocean Energy Resources Act of 
     2006.
       ``(b) In this Act the term `historic and existing State-
     chartered recognized petroleum or mining school' means a 
     school, university, or educational institution with the 
     presence of an engineering program meeting the specific 
     program criteria, established by the member societies of 
     ABET, Inc., for petroleum, mining, or mineral engineering and 
     that is accredited on the date of enactment of the Deep Ocean 
     Energy Resources Act of 2006 by ABET, Inc.
       ``(c) It shall be the duty of each school, university, or 
     institution receiving funds under this section to provide for 
     and enhance the training of undergraduate and graduate 
     petroleum, mining, and mineral engineers through research, 
     investigations, demonstrations, and experiments. All such 
     work shall be carried out in a manner that will enhance 
     undergraduate education.
       ``(d) Each school, university, or institution receiving 
     funds under this Act shall maintain the program for which the 
     funds are provided for 10 years after the date of the first 
     receipt of such funds and take steps described in its 
     application for funding to increase the number of 
     undergraduate students enrolled in and completing the 
     programs of study in petroleum, mining, and mineral 
     engineering.
       ``(e) The research, investigation, demonstration, 
     experiment, and training authorized by this section may 
     include development and production of conventional and non-
     conventional fuel resources, the production of metallic and 
     non-metallic mineral resources including industrial mineral 
     resources, and the production of stone, sand, and gravel. In 
     all cases the work carried out with funds made available 
     under this Act shall include a significant opportunity for 
     participation by undergraduate students.
       ``(f) Research funded by this Act related to energy and 
     mineral resource development and production may include--
       ``(1) studies of petroleum, mining, and mineral extraction 
     and immediately related beneficiation technology;
       ``(2) mineral economics, reclamation technology, and 
     practices for active operations;
       ``(3) the development of re-mining systems and technologies 
     to facilitate reclamation that fosters the ultimate recovery 
     of resources at abandoned petroleum, mining, and aggregate 
     production sites; and
       ``(4) research on ways to extract petroleum and mineral 
     resources that reduce the environmental impact of those 
     activities.
       ``(g) Grants for basic science and engineering studies and 
     research shall not require additional participation by 
     funding partners. Grants for studies to demonstrate the proof 
     of concept for science and engineering or the demonstration 
     of feasibility and implementation shall include participation 
     by industry and may include funding from other Federal 
     agencies.
       ``(h)(1) No funds made available under this section shall 
     be applied to the acquisition by purchase or lease of any 
     land or interests therein, or the rental, purchase, 
     construction, preservation, or repair of any building.
       ``(2) Funding made available under this section may be used 
     with the express approval of the Secretary for proposals that 
     will provide for maintaining or upgrading of existing 
     laboratories and laboratory equipment. Funding for such 
     maintenance shall not be used for university overhead 
     expenses.
       ``(3) Funding made available under this Act may be used for 
     maintaining and upgrading mines and oil and gas drilling rigs 
     owned by a school, university, or institution described in 
     this section that are used for undergraduate and graduate 
     training and worker safety training. All requests for funding 
     such mines and oil and gas drilling rigs must demonstrate 
     that they have been owned by the school, university, or 
     institution for 5 years prior to the date of enactment of the 
     Deep Ocean Energy Resources Act of 2006 and have been 
     actively used for instructional or training purposes during 
     that time.
       ``(4) Any funding made available under this section for 
     research, investigation, demonstration, experiment, or 
     training shall not be used for university overhead charges in 
     excess of 10 percent of the amount authorized by the 
     Secretary.

     ``SEC. 4. FORMER AND NEW PETROLEUM AND MINING ENGINEERING 
                   PROGRAMS.

       ``(a) A school, university, or educational institution that 
     formerly met the requirements of section 3(b) immediately 
     before the date of the enactment of the Deep Ocean Energy 
     Resources Act of 2006, or that seeks to establish a new 
     program described in section 3(b), shall be eligible for 
     funding under this Act only if it--
       ``(1) establishes a petroleum, mining, or mineral 
     engineering program that meets the specific program criteria 
     and is accredited as such by ABET, Inc.;
       ``(2) agrees to the conditions of subsections (c) through 
     (h) of section 3 and the Secretary determines that the 
     program will strengthen and increase the number of nationally 
     available, well-qualified faculty members in petroleum, 
     mining, and mineral engineering; and
       ``(3) agrees to maintain the accredited program for 10 
     years after the date of the first receipt of funds under this 
     Act.
       ``(b) The Secretary shall seek the advice of the Committee 
     established pursuant to section 11 in determining the 
     criteria used to carry out this section.

     ``SEC. 5. FUNDING OF CONSORTIA OF HISTORIC AND EXISTING 
                   SCHOOLS.

       ``Where appropriate, the Secretary may make funds available 
     to consortia of schools, universities, or institutions 
     described in sections 3, 4, and 6, including those consortia 
     that include schools, universities, or institutions that are 
     ineligible for funds under this Act if those schools, 
     universities, or institutions, respectively, have skills, 
     programs, or facilities specifically identified as needed by 
     the consortia to meet the necessary expenses for purposes 
     of--
       ``(1) specific energy and mineral research projects of 
     broad application that could not otherwise be undertaken, 
     including the expenses of planning and coordinating regional 
     petroleum, geothermal, mining, and mineral engineering or 
     beneficiation projects by two or more schools; and
       ``(2) research into any aspects of petroleum, geothermal, 
     mining, or mineral engineering or beneficiation problems, 
     including but not limited to exploration, that are related to 
     the mission of the Department of the Interior.

     ``SEC. 6. SUPPORT FOR SCHOOLS WITH ENERGY AND MINERAL 
                   RESOURCE PROGRAMS IN PETROLEUM AND MINERAL 
                   EXPLORATION GEOLOGY, PETROLEUM GEOPHYSICS, OR 
                   MINING GEOPHYSICS.

       ``(a) Twelve percent of the annual outlay of funds 
     authorized by section 23(d) of the Deep Ocean Energy 
     Resources Act of 2006 may be granted to schools, 
     universities, and institutions other than those described in 
     sections 3 and 4.
       ``(b) The Secretary shall determine the eligibility of a 
     college or university to receive funding under this Act using 
     criteria that include--
       ``(1) the presence of a substantial program of 
     undergraduate and graduate geoscience instruction and 
     research in one or more of the following specialties: 
     petroleum geology, geothermal geology, mineral exploration 
     geology, economic geology, industrial minerals geology, 
     mining geology, petroleum geophysics, mining geophysics, 
     geological engineering, or geophysical engineering that has a 
     demonstrated history of achievement;
       ``(2) evidence of institutional commitment for the purposes 
     of this Act that includes a significant opportunity for 
     participation by undergraduate students in research;
       ``(3) evidence that such school, university, or institution 
     has or can obtain significant industrial cooperation in 
     activities within the scope of this Act;
       ``(4) agreement by the school, university, or institution 
     to maintain the programs for which the funding is sought for 
     the 10-year period beginning on the date the school, 
     university, or institution first receives such funds; and
       ``(5) requiring that such funding shall be for the purposes 
     set forth in subsections (c) through (h) of section 3 and 
     subject to the conditions set forth in section 3(h).
       ``(c) The Secretary shall seek the advice of the Committee 
     established pursuant to section 11 in determining the 
     criteria used to carry out this section.

     ``SEC. 7. DESIGNATION OF FUNDS FOR SCHOLARSHIPS AND 
                   FELLOWSHIPS.

       ``(a) The Secretary shall utilize 10 percent of the annual 
     outlay of funds authorized by section 23(d) of the Deep Ocean 
     Energy Resources Act of 2006 for the purpose of providing 
     merit-based scholarships for undergraduate education, 
     graduate fellowships, and postdoctoral fellowships.
       ``(b) In order to receive a scholarship or a graduate 
     fellowship, an individual student

[[Page 13668]]

     must be a lawful permanent resident of the United States or a 
     United States citizen and must agree in writing to complete a 
     course of studies and receive a degree in petroleum, mining, 
     or mineral engineering, petroleum geology, geothermal 
     geology, mining and economic geology, petroleum and mining 
     geophysics, or mineral economics.
       ``(c) The regulations required by section 9 shall require 
     that an individual, in order to retain a scholarship or 
     graduate fellowship, must continue in one of the course of 
     studies listed in subsection (b) of this section, must remain 
     in good academic standing, as determined by the school, 
     institution, or university and must allow for reinstatement 
     of the scholarship or graduate fellowship by the Secretary, 
     upon the recommendation of the school or institution. Such 
     regulations may also provide for recovery of funds from an 
     individual who fails to complete any of the courses of study 
     listed in subsection (b) of this section after notice that 
     such completion is a requirement of receipt funding under 
     this Act.
       ``(d) To carry out this section, the Secretary shall award 
     grants to schools, universities, and institutions that are 
     eligible to receive funding under section 3, 4 or 6. A 
     school, university, or institution receiving funding under 
     this subsection shall be responsible for enforcing the 
     requirements of this section for scholarship or fellowship 
     students and shall return to the Secretary any funds 
     recovered from an individual under subsection (c). An 
     institution seeking funds under this subsection shall 
     describe, in its application to the Secretary for funding, 
     the number of students that would be awarded scholarships or 
     fellowships if the application is approved, how such students 
     would be selected, and how the provisions of this section 
     will be enforced.

     ``SEC. 8. FUNDING CRITERIA FOR INSTITUTIONS.

       ``(a) Each application to the Secretary for funds under 
     this Act shall state, among other things, the nature of the 
     project to be undertaken; the period during which it will be 
     pursued; the qualifications of the personnel who will direct 
     and conduct it; the estimated costs; the importance of the 
     project to the Nation, region, or States concerned; its 
     relation to other known research projects theretofore pursued 
     or being pursued; the extent to which the proposed project 
     will maximize the opportunity for the training of 
     undergraduate petroleum, mining, and mineral engineers; 
     geologists and geophysicists; and the extent of participation 
     by nongovernmental sources in the project.
       ``(b) No funds shall be made available under this Act 
     except for an application approved by the Secretary. All 
     funds shall be made available upon the basis of merit of the 
     application, the need for the knowledge that it is expected 
     to produce when completed, and the opportunity it provides 
     for the undergraduate training of individuals as petroleum, 
     mining, and mineral engineers, geologists, and geophysicists. 
     The Secretary may use competitive review by nongovernmental 
     experts in relevant fields to determine which applications to 
     approve, to the extent practicable.
       ``(c) Funds available under this Act shall be paid at such 
     times and in such amounts during each fiscal year as 
     determined by the Secretary, and upon vouchers approved by 
     the Secretary. Each school, university, or institution that 
     receives funds under this Act shall--
       ``(1) establish its plan to provide for the training of 
     individuals as petroleum, mining, and mineral engineers, 
     geologists, and geophysicists under a curriculum appropriate 
     to the field of mineral resources and mineral engineering and 
     related fields;
       ``(2) establish policies and procedures that assure that 
     Federal funds made available under this Act for any fiscal 
     year will supplement and, to the extent practicable, increase 
     the level of funds that would, in the absence of such Federal 
     funds, be made available for purposes of this Act, and in no 
     case supplant such funds; and
       ``(3) have an officer appointed by its governing authority 
     who shall receive and account for all funds paid under this 
     Act and shall make an annual report to the Secretary on or 
     before the first day of September of each year, on work 
     accomplished and the status of projects underway, together 
     with a detailed statement of the amounts received under this 
     Act during the preceding fiscal year, and of its 
     disbursements on schedules prescribed by the Secretary.
       ``(d) If any of the funds received by the authorized 
     receiving officer of a program under this Act are found by 
     the Secretary to have been improperly diminished, lost, or 
     misapplied, such funds shall be recovered by the Secretary.
       ``(e) Schools, universities, and institutions receiving 
     funds under this Act are authorized and encouraged to plan 
     and conduct programs under this Act in cooperation with each 
     other and with such other agencies, business enterprises and 
     individuals.

     ``SEC. 9. DUTIES OF SECRETARY.

       ``(a) The Secretary, acting through the Assistant Secretary 
     for Land and Minerals Management, shall administer this Act 
     and shall prescribe such rules and regulations as may be 
     necessary to carry out its provisions not later than 1 year 
     after the enactment of the Deep Ocean Energy Resources Act of 
     2006.
       ``(b)(1) There is established in the Department of the 
     Interior, under the supervision of the Assistant Secretary 
     for Land and Minerals Management, an office to be known as 
     the Office of Petroleum and Mining Schools (hereafter in this 
     Act referred to as the `Office') to administer the provisions 
     of this Act. There shall be a Director of the Office who 
     shall be a member of the Senior Executive Service. The 
     position of the Director shall be allocated from among the 
     existing Senior Executive Service positions at the Department 
     of the Interior and shall be a career reserved position as 
     defined in section 3132(a)(8) of title 5, United States Code.
       ``(2) The Director is authorized to appoint a Deputy 
     Director and to employ such officers and employees as may be 
     necessary to enable the Office to carry out its functions. 
     Such appointments shall be made from existing positions at 
     the Department of the Interior, and shall be subject to the 
     provisions of title 5, United States Code, governing 
     appointments in the competitive service. Such positions shall 
     be paid in accordance with the provisions of chapter 51 and 
     subchapter III of chapter 53 of such title relating to 
     classification and General Schedule pay rates.
       ``(3) In carrying out his or her functions, the Director 
     shall assist and advise the Secretary and the Committee 
     pursuant to section 11 of this Act by--
       ``(A) providing professional and administrative staff 
     support for the Committee including recordkeeping and 
     maintaining minutes of all Committee and subcommittee 
     meetings;
       ``(B) coordinating the activities of the Committee with 
     Federal agencies and departments, and the schools, 
     universities, and institutions to which funds are provided 
     under this Act;
       ``(C) maintaining accurate records of funds disbursed for 
     all scholarship and fellowship grants, research grants, and 
     grants for career technical education purposes;
       ``(D) preparing any regulations required to implement this 
     Act;
       ``(E) conducting site visits at schools, universities, and 
     institutions receiving funding under this Act; and
       ``(F) serving as a central repository for reports and 
     clearing house for public information on research funded by 
     this Act.
       ``(4) The Director or an employee of the Office shall be 
     present at each meeting of the Committee pursuant to section 
     11 or a subcommittee of such Committee.
       ``(5) The Director is authorized to contract with public or 
     private agencies, institutions, and organizations and with 
     individuals without regard to section 3324(a) and (b) of 
     title 31, United States Code, and section 5 of title 41, 
     United States Code, in carrying out his or her functions.
       ``(6) As needed the Director shall ascertain whether the 
     requirements of this Act have been met by schools, 
     universities, institutions, and individuals.
       ``(c) The Secretary, acting through the Office of Petroleum 
     and Mining Schools, shall furnish such advice and assistance 
     as will best promote the purposes of this Act, shall 
     participate in coordinating research, investigations, 
     demonstrations, and experiments initiated under this Act, 
     shall indicate to schools, universities, and institutions 
     receiving funds under this Act such lines of inquiry that 
     seem most important, and shall encourage and assist in the 
     establishment and maintenance of cooperation between such 
     schools, universities, and institutions, other research 
     organizations, the Department of the Interior, and other 
     Federal agencies.
       ``(d) The Secretary shall establish procedures--
       ``(1) to ensure that each employee and contractor of the 
     Office established by this section and each member of the 
     Committee pursuant to section 11 of this Act shall disclose 
     to the Secretary any financial interests in or financial 
     relationships with schools, universities, institutions or 
     individuals receiving funds, scholarships or fellowships 
     under this Act;
       ``(2) to require any employee, contractor, or member of the 
     Committee with a financial relationship disclosed under 
     paragraph (1) to recuse themselves from--
       ``(A) any recommendation or decision regarding the awarding 
     of funds, scholarships or fellowships; or
       ``(B) any review, report, analysis or investigation 
     regarding compliance with the provisions of this Act by a 
     school, university, institution or any individual.
       ``(e) On or before the first day of July of each year 
     beginning after the date of enactment of this sentence, 
     schools, universities, and institutions receiving funds under 
     this Act shall certify compliance with this Act and upon 
     request of the Director of the office established by this 
     section provide documentation of such compliance.
       ``(f) An individual granted a scholarship or fellowship 
     with funds provided under this Act shall through their 
     respective school, university, or institution, advise the 
     Director of the office established by this Act of progress 
     towards completion of the course of studies and upon the 
     awarding of the degree within 30 days after the award.
       ``(g) The regulations required by this section shall 
     include a preference for veterans

[[Page 13669]]

     and service members who have received or will receive either 
     the Afghanistan Campaign Medal or the Iraq Campaign Medal as 
     authorized by Public Law 108-234, and Executive Order 13363.

     ``SEC. 10. COORDINATION.

       ``(a) Nothing in this Act shall be construed to impair or 
     modify the legal relationship existing between any of the 
     schools, universities, and institutions under whose direction 
     a program is established with funds provided under this Act 
     and the government of the State in which it is located. 
     Nothing in this Act shall in any way be construed to 
     authorize Federal control or direction of education at any 
     school, university, or institution.
       ``(b) The programs authorized by this Act are intended to 
     enhance the Nation's petroleum, mining, and mineral 
     engineering education programs and to enhance educational 
     programs in petroleum and mining exploration and to increase 
     the number of individuals enrolled in and completing these 
     programs. To achieve this intent, the Secretary and the 
     Committee pursuant to section 11 shall receive the continuing 
     advice and cooperation of all agencies of the Federal 
     Government concerned with the identification, exploration, 
     and development of energy and mineral resources.
       ``(c) Nothing in this Act is intended to give or shall be 
     construed as giving the Secretary any authority over mining 
     and mineral resources research conducted by any agency of the 
     Federal Government, or as repealing or diminishing existing 
     authorities or responsibilities of any agency of the Federal 
     Government to plan and conduct, contract for, or assist in 
     research in its area of responsibility and concern with 
     regard to mining and mineral resources.
       ``(d) The schools, universities, and institutions receiving 
     funding under this Act shall make detailed reports to the 
     Office of Petroleum and Mining Schools on projects completed, 
     in progress, or planned with funds provided under this Act. 
     All such reports shall be available to the public on not less 
     than an annual basis through the Office of Petroleum and 
     Mining Schools. All uses, products, processes, and other 
     developments resulting from any research, demonstration, or 
     experiment funded in whole or in part under this Act shall be 
     made available promptly to the general public, subject to 
     exception or limitation, if any, as the Secretary may find 
     necessary in the interest of national security, and subject 
     to the applicable Federal law governing patents.

     ``SEC. 11. COMMITTEE ON PETROLEUM, MINING, AND MINERAL 
                   ENGINEERING AND ENERGY AND MINERAL RESOURCE 
                   EDUCATION.

       ``(a) The Secretary shall appoint a Committee on Petroleum, 
     Mining, and Mineral Engineering and Energy and Mineral 
     Resource Education composed of--
       ``(1) the Assistant Secretary of the Interior responsible 
     for land and minerals management and not more than 16 other 
     persons who are knowledgeable in the fields of mining and 
     mineral resources research, including 2 university 
     administrators one of whom shall be from historic and 
     existing petroleum and mining schools; a community, 
     technical, or tribal college administrator; a career 
     technical education educator; 6 representatives equally 
     distributed from the petroleum, mining, and aggregate 
     industries; a working miner; a working oilfield worker; a 
     representative of the Interstate Oil and Gas Compact 
     Commission; a representative from the Interstate Mining 
     Compact Commission; a representative from the Western 
     Governors Association; a representative of the State 
     geologists, and a representative of a State mining and 
     reclamation agency. In making these 16 appointments, the 
     Secretary shall consult with interested groups.
       ``(2) The Assistant Secretary for Land and Minerals 
     Management, in the capacity of the Chairman of the Committee, 
     may have present during meetings of the Committee 
     representatives of Federal agencies with responsibility for 
     energy and minerals resources management, energy and mineral 
     resource investigations, energy and mineral commodity 
     information, international trade in energy and mineral 
     commodities, mining safety regulation and mine safety 
     research, and research into the development, production, and 
     utilization of energy and mineral commodities. These 
     representatives shall serve as technical advisors to the 
     committee and shall have no voting responsibilities.
       ``(b) The Committee shall consult with, and make 
     recommendations to, the Secretary on policy matters relating 
     to carrying out this Act. The Secretary shall consult with 
     and carefully consider recommendations of the Committee in 
     such matters.
       ``(c) Committee members, other than officers or employees 
     of Federal, State, or local governments, shall be, for each 
     day (including traveltime) during which they are performing 
     Committee business, paid at a rate fixed by the Secretary but 
     not in excess of the daily equivalent of the maximum rate of 
     pay for level IV of the Executive Schedule under section 5136 
     of title 5, United States Code, and shall be fully reimbursed 
     for travel, subsistence, and related expenses.
       ``(d) The Committee shall be chaired by the Assistant 
     Secretary of the Interior responsible for land and minerals 
     management. There shall also be elected a Vice Chairman by 
     the Committee from among the members referred to in this 
     section. The Vice Chairman shall perform such duties as are 
     determined to be appropriate by the committee, except that 
     the Chairman of the Committee must personally preside at all 
     meetings of the full Committee. The Committee may organize 
     itself into such subcommittees as the Committee may deem 
     appropriate.
       ``(e) Following completion of the report required by 
     section 385 of the Energy Policy Act of 2005, the Committee 
     shall consider the recommendations of the report, ongoing 
     efforts in the schools, universities, and institutions 
     receiving funding under this Act, the Federal and State 
     Governments, and the private sector, and shall formulate and 
     recommend to the Secretary a national plan for a program 
     utilizing the fiscal resources provided under this Act. The 
     Committee shall submit such plan to the Secretary for 
     approval. Upon approval, the plan shall guide the Secretary 
     and the Committee in their actions under this Act.
       ``(f) Section 10 of the Federal Advisory Committee Act (5 
     U.S.C. App. 2) shall not apply to the Committee.

     ``SEC. 12. CAREER TECHNICAL EDUCATION.

       ``(a) Up to 25 percent of the annual outlay of funds 
     authorized by section 23(d) of the Deep Ocean Energy 
     Resources Act of 2006 may be granted to schools or 
     institutions including, but not limited to, colleges, 
     universities, community colleges, tribal colleges and 
     universities, technical institutes, secondary schools, other 
     than those described in sections 3, 4, 5, and 6, and jointly 
     sponsored apprenticeship and training programs that are 
     authorized by Federal law.
       ``(b) The Secretary shall determine the eligibility of a 
     school or institution to receive funding under this section 
     using criteria that include--
       ``(1) the presence of a State-approved program in mining 
     engineering technology, petroleum engineering technology, 
     industrial engineering technology, or industrial technology 
     that--
       ``(A) is focused on technology and its use in energy and 
     mineral production and related maintenance, operational 
     safety, or energy infrastructure protection and security;
       ``(B) prepares students for advanced or supervisory roles 
     in the mining industry or the petroleum industry; and
       ``(C) grants either an associate's degree or a 
     baccalaureate degree in one of the subjects listed in 
     subparagraph (A);
       ``(2) the presence of a program, including a secondary 
     school vocational education program or career academy, that 
     provides training for individuals entering the petroleum, 
     coal mining, or mineral mining industries; or
       ``(3) the presence of a State-approved program of career 
     technical education at a secondary school, offered 
     cooperatively with a community college in one of the 
     industrial sectors of--
       ``(A) agriculture, forestry, or fisheries;
       ``(B) utilities;
       ``(C) construction;
       ``(D) manufacturing; and
       ``(E) transportation and warehousing.
       ``(c) Schools or institutions receiving funds under this 
     section must show evidence of an institutional commitment for 
     the purposes of career technical education and provide 
     evidence that the school or institution has received or will 
     receive industry cooperation in the form of equipment, 
     employee time, or donations of funds to support the 
     activities that are within the scope of this section.
       ``(d) Schools or institutions receiving funds under this 
     section must agree to maintain the programs for which the 
     funding is sought for a period of 10 years beginning on the 
     date the school or institution receives such funds, unless 
     the Secretary finds that a shorter period of time is 
     appropriate for the local labor market or is required by 
     State authorities.
       ``(e) Schools or institutions receiving funds under this 
     section may combine these funds with State funds, and other 
     Federal funds where allowed by law, to carry out programs 
     described in this section, however the use of the funds 
     received under this section must be reported to the Secretary 
     not less than annually.
       ``(f) The Secretary shall seek the advice of the Committee 
     established pursuant to section 11 in determining the 
     criteria used to carry out this section.

     ``SEC. 13. DEPARTMENT OF THE INTERIOR WORKFORCE ENHANCEMENT.

       ``(a) Physical Science, Engineering and Technology 
     Scholarship Program.--
       ``(1) From the amount of funds available to carry out this 
     section, the Secretary shall use 30 percent of that amount to 
     provide financial assistance for education in physical 
     sciences, engineering, and engineering or industrial 
     technology and disciplines that, as determined by the 
     Secretary, are critical to the functions of the Department of 
     the Interior and are needed in the Department of the Interior 
     workforce.
       ``(2) The Secretary of the Interior may award a scholarship 
     in accordance with this section to a person who--
       ``(A) is a citizen of the United States;
       ``(B) is pursuing an undergraduate or advanced degree in a 
     critical skill or discipline described in paragraph (1) at an 
     institution of higher education; and

[[Page 13670]]

       ``(C) enters into a service agreement with the Secretary of 
     the Interior as described in subsection (e).
       ``(3) The amount of the financial assistance provided under 
     a scholarship awarded to a person under this subsection shall 
     be the amount determined by the Secretary of the Interior as 
     being necessary to pay all educational expenses incurred by 
     that person, including tuition, fees, cost of books, 
     laboratory expenses, and expenses of room and board. The 
     expenses paid, however, shall be limited to those educational 
     expenses normally incurred by students at the institution of 
     higher education involved.
       ``(b) Scholarship Program for Students Attending Minority 
     Serving Higher Education Institutions.--
       ``(1) From the amount of funds available to carry out this 
     section, the Secretary shall use 35 percent of that amount to 
     award scholarships in accordance with this section to persons 
     who--
       ``(A) are enrolled in a Minority Serving Higher Education 
     Institutions.
       ``(B) are citizens or nationals of the United States;
       ``(C) are pursuing an undergraduate or advanced degree in 
     agriculture, engineering, engineering or industrial 
     technology, or physical sciences, or other discipline that is 
     found by the Secretary to be critical to the functions of the 
     Department of the Interior and are needed in the Department 
     of the Interior workforce; and
       ``(D) enter into a service agreement with the Secretary of 
     the Interior as described in subsection (e).
       ``(2) The amount of the financial assistance provided under 
     a scholarship awarded to a person under this subsection shall 
     be the amount determined by the Secretary of the Interior as 
     being necessary to pay all educational expenses incurred by 
     that person, including tuition, fees, cost of books, 
     laboratory expenses, and expenses of room and board. The 
     expenses paid, however, shall be limited to those educational 
     expenses normally incurred by students at the institution of 
     higher education involved.
       ``(c) Education Partnerships With Minority Serving Higher 
     Education Institutions.--
       ``(1) The Secretary shall require the director of each 
     Bureau and Office, to foster the participation of Minority 
     Serving Higher Education Institutions in any regulatory 
     activity, land management activity, science activity, 
     engineering or industrial technology activity, or engineering 
     activity carried out by the Department of the Interior.
       ``(2) From the amount of funds available to carry out this 
     section, the Secretary shall use 35 percent of that amount to 
     support activities at Minority Serving Higher Education 
     Institutions by--
       ``(A) funding faculty and students in these institutions in 
     collaborative research projects that are directly related to 
     the Departmental or Bureau missions;
       ``(B) allowing equipment transfer to Minority Serving 
     Higher Education Institutions as a part of a collaborative 
     research program directly related to a Departmental or Bureau 
     mission;
       ``(C) allowing faculty and students at these Minority 
     Serving Higher Education Institutions to participate 
     Departmental and Bureau training activities;
       ``(D) funding paid internships in Departmental and Bureau 
     facilities for students at Minority Serving Higher Education 
     Institutions;
       ``(E) assigning Departmental and Bureau personnel to 
     positions located at Minority Serving Higher Educational 
     Institutions to serve as mentors to students interested in a 
     science, technology or engineering disciplines related to the 
     mission of the Department or the Bureaus.
       ``(d) Service Agreement for Recipients of Assistance.--
       ``(1) To receive financial assistance under subsection (a) 
     or (b) of this section--
       ``(A) in the case of an employee of the Department of the 
     Interior, the employee shall enter into a written agreement 
     to continue in the employment of the department for the 
     period of obligated service determined under paragraph (2); 
     and
       ``(B) in the case of a person not an employee of the 
     Department of the Interior, the person shall enter into a 
     written agreement to accept and continue employment in the 
     Department of the Interior for the period of obligated 
     service determined under paragraph (2).
       ``(2) For the purposes of this section, the period of 
     obligated service for a recipient of a scholarship under this 
     section shall be the period determined by the Secretary of 
     the Interior as being appropriate to obtain adequate service 
     in exchange for the financial assistance provided under the 
     scholarship. In no event may the period of service required 
     of a recipient be less than the total period of pursuit of a 
     degree that is covered by the scholarship. The period of 
     obligated service is in addition to any other period for 
     which the recipient is obligated to serve in the civil 
     service of the United States.
       ``(3) An agreement entered into under this subsection by a 
     person pursuing an academic degree shall include any terms 
     and conditions that the Secretary of the Interior determines 
     necessary to protect the interests of the United States or 
     otherwise appropriate for carrying out this section.
       ``(e) Refund for Period of Unserved Obligated Service.--
       ``(1) A person who voluntarily terminates service before 
     the end of the period of obligated service required under an 
     agreement entered into under subsection (d) shall refund to 
     the United States an amount determined by the Secretary of 
     the Interior as being appropriate to obtain adequate service 
     in exchange for financial assistance.
       ``(2) An obligation to reimburse the United States imposed 
     under paragraph (1) is for all purposes a debt owed to the 
     United States.
       ``(3) The Secretary of the Interior may waive, in whole or 
     in part, a refund required under paragraph (1) if the 
     Secretary determines that recovery would be against equity 
     and good conscience or would be contrary to the best 
     interests of the United States.
       ``(4) A discharge in bankruptcy under title 11, United 
     States Code, that is entered less than five years after the 
     termination of an agreement under this section does not 
     discharge the person signing such agreement from a debt 
     arising under such agreement or under this subsection.
       ``(f) Relationship to Other Programs.--The Secretary of the 
     Interior shall coordinate the provision of financial 
     assistance under the authority of this section with the 
     provision of financial assistance under the authorities 
     provided in this Act in order to maximize the benefits 
     derived by the Department of Interior from the exercise of 
     all such authorities.
       ``(g) Report.--Not later than September 1 of each year, the 
     Secretary of the Interior shall submit to the Congress a 
     report on the status of the assistance program carried out 
     under this section. The report shall describe the programs 
     within the Department designed to recruit and retain a 
     workforce on a short-term basis and on a long-term basis.
       ``(h) Definitions.--As used in this section:
       ``(1) The term `Minority Serving Higher Education 
     Institutions' means a Hispanic-serving institution, 
     historically Black college or university, Alaska Native-
     serving institution, tribal college or university, or insular 
     area school.
       ``(2) The term `Hispanic-serving institution' has the 
     meaning given the term in section 502(a) of the Higher 
     Education Act of 1965 (20 U.S.C. 1101a(a)).
       ``(3) The term `historically Black college or university' 
     has the meaning given the term `part B institution' in 
     section 322 of the Higher Education Act of 1965 (20 U.S.C. 
     1061).
       ``(4) The term `tribal college or university' has the 
     meaning given the term `Tribal College or University' in 
     section 316(b)(3) of the Higher Education Act of 1965 (20 
     U.S.C. 1059c).
       ``(5) The term `institution of higher education' has the 
     meaning given such term in section 101 of the Higher 
     Education Act of 1965 (20 U.S.C. 1001).
       ``(6) The term `Alaska Native-serving institution' has the 
     meaning given the term in section 317 of the Higher Education 
     Act of 1965 (20 U.S.C. 1059d).
       ``(7) The term `insular area school' means an academic 
     institution or university in American Samoa, Guam, The 
     Northern Mariana Islands, Puerto Rico, and the Virgin 
     Islands, or any other territory or possession of the United 
     States.
       ``(i) Funding.--To implement this section, the Secretary 
     shall use 3 percent of the annual outlay authorized by 
     section 23(d) of the Deep Ocean Energy Resources Act of 
     2006.''.
       (b) Funding for Energy Research.--
       (1) Using 20 percent of the funds authorized by subsection 
     (d), the Secretary of Energy, through the energy supply 
     research and development programs of the Department of 
     Energy, and in consultation with the Office of Science of the 
     Department of Energy, shall carry out a program to award 
     grants to institutions of higher education on the basis of 
     competitive, merit-based review, for the purpose of 
     conducting research on advanced energy technologies with the 
     potential to transform the energy systems of the United 
     States so as to--
       (A) reduce dependence on foreign energy supplies;
       (B) reduce or eliminate emissions of greenhouse gases;
       (C) reduce negative environmental effects associated with 
     energy production, storage, and use; and
       (D) enhance the competitiveness of United States energy 
     technology exports.
       (2) Awards made under this subsection may include funding 
     for--
       (A) energy efficiency;
       (B) renewable energy, including solar, wind, and biofuels; 
     and
       (C) nuclear, hydrogen, and any other energy research that 
     could accomplish the purpose set forth in paragraph (1).
       (3) The Secretary of Energy may require or authorize 
     grantees under this subsection to partner with industry, but 
     only to the extent that such a requirement does not prevent 
     long-range, potentially pathbreaking research from being 
     funded under this subsection.
       (4) An institution of higher education seeking funding 
     under this subsection shall submit an application at such 
     time, in such manner, and containing such information as the 
     Secretary of Energy may require.
       (5) In this subsection, the term ``institution of higher 
     education'' has the meaning

[[Page 13671]]

     given that term in section 101(a) of the Higher Education Act 
     of 1965.
       (c) Funding for Energy Scholarships.--
       (1) Using 5 percent of the funds authorized by subsection 
     (d), the Secretary of Energy, through the energy supply 
     research and development programs of the Department of 
     Energy, and in consultation with the Office of Science of the 
     Department of Energy, shall carry out a program to award 
     grants to institutions of higher education on the basis of 
     competitive, merit-based review, to grant graduate 
     traineeships to Ph.D. students who are citizens of the United 
     States who will carry out research on advanced energy 
     technologies to accomplish the purpose set forth in 
     subsection (c)(1).
       (2) Awards made under this subsection may include funding 
     for--
       (A) energy efficiency;
       (B) renewable energy, including solar, wind, and biofuels; 
     and
       (C) nuclear, hydrogen, and any other energy research that 
     would accomplish the purpose set forth in subsection (c)(1) 
     that is not eligible for funding under section 7 of the 
     Energy and Mineral Schools Reinvestment Act.
       (3) An institution of higher education seeking funding 
     under this subsection shall submit an application at such 
     time, in such manner, and containing such information as the 
     Secretary of Energy may require.
       (4) In this subsection, the term ``institution of higher 
     education'' has the meaning given that term in section 101(a) 
     of the Higher Education Act of 1965.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $150,000,000 for 
     each of fiscal years 2007 through 2017.
       Page 95, line 3, before the semicolon insert the following: 
     ``, with particular consideration awarded to establishing 
     programs at minority serving institutions''.
       Page 96, line 18, before the period insert the following: 
     ``, with particular consideration awarded to minority serving 
     institutions''.
       Page 123, beginning at line 22, strike ``The purpose'' and 
     all that follows through ``funding for'' at line 23 and 
     insert ``The purpose of this section is to provide for''.
       Page 124, line 6, strike the semicolon and insert a period.
       Page 124, strike line 7 and all that follows through page 
     129, line 9, and insert the following:
       (c) State Defined.--In this section the term ``State'' 
     means the agency of a State designated by its Governor or 
     State law to perform the functions and activities described 
     in subsection (b).
       Page 129, line 10, strike ``(e)'' and insert ``(c)''.
       Page 131, strike lines 14 through 18 and insert the 
     following:
       (4) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection for each of 
     fiscal years 2007 through 2011 not less than $35,000,000. 
     Each pilot project
       Page 131, line 21, strike ``(f)'' and insert ``(d)''.
       Page 134, strike line 15 and all that follows through 
     ``fiscal year.'' at line 18 and insert the following:
       (5) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection for each of 
     fiscal years 2007 through 2011 not less than $5,000,000. Each 
     pilot project
       Page 135, line 12, strike ``(g)'' and insert ``(e)''.
       Page 137, strike lines 9 through 11 and insert the 
     following:
       (5) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection--
       (A) $65,000,000 for fiscal year 2007; and
       (B) $37,500,000 for each of fiscal years 2008 through 2013.
       Page 137, line 12, strike ``(h)'' and insert ``(f)''.
       Page 137, strike line 21 and 22 and insert the following:
       (3) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection funds for
       Page 138, line 4, strike ``517'' and insert ``507''.
       Page 138, line 9, strike ``(b)(1)'' and insert ``(b)(13) or 
     (b)(14)''.
       Page 147 , line 14, strike section 30 and insert the 
     following:

     SEC. 30. AVAILABILITY OF OCS RECEIPTS TO PROVIDE PAYMENTS 
                   UNDER SECURE RURAL SCHOOLS AND COMMUNITY SELF-
                   DETERMINATION ACT OF 2000.

       Section 9 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1338) is amended by inserting after subsection (i), as 
     added by section 7 of this Act, the following new subsection:
       ``(j) Conditional Availability of Funds for Payments Under 
     Secure Rural Schools and Community Self-Determination Act of 
     2000.--
       ``(1) Availability of funds.--Subject to paragraph (2), but 
     notwithstanding any other provision of this section, 
     $50,000,000 of OCS Receipts shall be available to the 
     Secretary of the Treasury for each of fiscal years 2007 
     through 2012 to make payments under sections 102 and 103 of 
     the Secure Rural Schools and Community Self-Determination Act 
     of 2000 (Public Law 106-393; 16 U.S.C. 500 note). The 
     Secretary of the Treasury shall use the funds made available 
     by this subsection to make such payments in lieu of using 
     funds in the Treasury not otherwise appropriated, as 
     otherwise authorized by sections 102(b)(3) and 103(b)(2) of 
     such Act.
       ``(2) Condition on availability.--OCS Receipts shall be 
     available under paragraph (1) for a fiscal year only if--
       ``(A) title I of the Secure Rural Schools and Community 
     Self-Determination Act of 2000 has been reauthorized through 
     at least that fiscal year; and
       ``(B) the authority to initiate projects under titles II 
     and III of such Act has been extended through at least that 
     fiscal year.''.
       Add at the end the following:

     SEC. 31. SENSE OF THE CONGRESS TO BUY AND BUILD AMERICAN.

       (a) Buy and Build American.--It is the intention 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(a)(1) 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''.


          Modification to Amendment No. 1 Offered by Mr. Pombo

  Mr. POMBO. Mr. Chairman, I have a modification at the desk.
  The Acting CHAIRMAN. The Clerk will report the modification.
  The Clerk read as follows:

       Modification to amendment No. 1 offered by Mr. Pombo:
       Page 1, line 1, strike ``1996'' and insert ``1995''.
       Page 21, line 24, before the semicolon, insert the 
     following: ``, with particular consideration awarded to 
     establishing programs and minority serving institutions''.
       Page 23, line 18, before the period, insert the following: 
     ``, with particular consideration awarded to minority serving 
     institutions''.
       Page 52, strike the instruction relating to page 95.
       Page 53, strike the instruction relating to page 96.

  The Acting CHAIRMAN. Without objection, the amendment is modified.
  There was no objection.
  The Acting CHAIRMAN. Pursuant to House Resolution 897, the gentleman 
from California (Mr. Pombo) and the gentleman from West Virginia (Mr. 
Rahall) each will control 5 minutes.
  The Chair recognizes the gentleman from California.
  Mr. POMBO. Mr. Chairman, I would like to yield 1 minute to the 
gentleman from Florida (Mr. Young).
  Mr. YOUNG of Florida. Mr. Chairman, with adoption of the manager's 
amendment, this bill is going to give Floridians protection for their 
coast that we haven't ever had before. And I think it is important to 
note that some of our colleagues from Florida have misrepresented 
exactly what this bill is going to do.
  We have fought since 1983 to maintain a moratorium off Florida's Gulf 
Coast against drilling of any kind. This manager's amendment, and this 
bill, will guarantee that off of Florida's west coast, a district that 
I represent, Mr. Bilirakis represents, others represent, there will be 
a protection zone of 235, get this, 235 miles because in the manager's 
amendment the so-called military mission line is put into statute. It 
is made permanent and anything east of that line in the Gulf of Mexico 
there will be no drilling. So Florida's west coast is protected far and 
above where we had originally requested, 235 miles. That is a lot of 
protection. And this manager's amendment makes this bill good for 
Florida.

[[Page 13672]]



                              {time}  1615

  Mr. RAHALL. Mr. Chairman, has the chairman explained the amendment 
yet?
  Mr. POMBO. If the gentleman will yield, I am yielding time on my 
time. You can yield time on yours.
  Mr. RAHALL. Mr. Chairman, as I understand, if I am on the right 
amendment, the pending amendment drops some provisions of the 
underlying legislation such as new royalty relief, which should never 
have been part of the bill to begin with.
  On balance, however, the amendment consists of budget gimmickry 
designed to hide the true costs to the Treasury of the bill and to 
pacify CBO by pushing the spending beyond the 10-year scoring window. 
Under the manager's amendment, State revenue sharing will cost the 
Federal Treasury $18 billion in the first 10 years under the CBO 
analysis.
  According to the MMS, Minerals Management Service, which administers 
the offshore OCS oil and gas leasing program, this legislation's 
provisions for diverting Federal revenues to States will cost $74 
billion over the first 15 years and a staggering $600 billion over six 
decades. So under the manager's amendment, the new gimmickry, as I 
understand it, the Federal spending is largely deferred until 10 years 
and then the costs escalate rapidly and continue permanently. So that 
is the basis for my opposition.
  It is a new, permanent entitlement program with 80 percent of the 
diverted Federal revenue goes only to four States, as we have heard in 
previous debate, those States being Louisiana, Texas, Alabama, and 
Mississippi. This is revenue that is generated from the development of 
oil and gas resources owned by all the American people. All of our 
names are on the deed. And it currently goes to the Federal Treasury 
and is allocated by Congress for many, many national priorities that 
are getting slashed these days.
  And despite assertions to the contrary, this is not new revenue to be 
generated by this bill, but rather it is existing revenue that is 
generated under current laws allowing for the development of oil and 
gas on Federal OCS lands, primarily in the Gulf of Mexico. The 
publicly-owned OCS resources are far beyond the State boundaries, and 
to grant the adjacent Gulf States a permanent entitlement to those 
revenues is to the detriment and at the cost of all the other States.
  Mr. Chairman, I reserve the balance of my time in opposition to the 
manager's amendment.
  Mr. POMBO. Mr. Chairman, I yield 1 minute to the gentlewoman from 
Texas (Ms. Jackson-Lee).
  Ms. JACKSON-LEE of Texas. Mr. Chairman, this is about natural gas. 
Natural gas not for Texas or Louisiana but natural gas for the entire 
country, Midwest, Southwest, east coast, for the entire country.
  Energy imports now make up one-third of America's trade deficit. 
Through this bill America could improve the supply/demand imbalance, 
lower consumer prices, and increase jobs by producing more of its own 
energy resources.
  I want to make sure that we do have an environmentally safe way of 
finding energy. I also want to expand the opportunities for jobs. And 
this manager's amendment creates petroleum and mining programs in 
historically black colleges and Hispanic-serving colleges. In addition, 
it provides consideration for programs dealing with energy and mineral 
resource programs to train future geologists so that we can be 
independent as well as look to alternative fuels. And then I would hope 
that this legislation, as it moves towards conference, can reinforce 
our commitment to giving competitive advantage to a certain extent to 
small minority-owned and women-owned businesses so they have equal 
access to oil and gas leases.
  I hope we can work together as we move this legislation forward.
  Mr. Chairman, I appreciate that two of my amendments to H.R. 4761, 
the Deep Ocean Energy Resources Act of 2006, have been incorporated 
into the Manager's Amendment. In addition, I have another amendment 
which I will be introducing on the floor.
  First and foremost, I must admit that I do have reservations about 
certain provisions in this bill and the process with which this bill 
has arrived on the House floor. I think many of us would agree that the 
issues central to this bill, the future of energy exploration off of 
our Pacific, Atlantic, and Gulf coastlines, deserves more time for 
deliberation and debate. Also, I would have preferred if this bill 
would have included more careful consideration of the environmental 
impact offshore drilling would have on our Continental Shelf 
Activities. However, this bill is about helping the production of clean 
natural gas cheaply for all of America.
  Energy is the lifeblood of every economy, especially ours. Producing 
more of it leads to more good jobs, cheaper goods, lower fuel prices, 
and greater economic and national security. However, the U.S. is more 
than 60 percent dependent on foreign sources of energy, twice as 
dependent today as we were just 30 years ago. Although energy is the 
lifeblood of America's economic security, this growing and dangerous 
dependence has resulted in the loss of hundreds of thousands of good 
American jobs, skyrocketing consumer prices, and vulnerabilities in our 
national security.
  Energy imports now make up one third of America's trade deficit. 
Through this bill, America could improve the supply-demand imbalance, 
lower consumer prices, and increase jobs by producing more of its own 
energy resources. With my district of Houston being the energy capital 
of the world, I support the efforts that this bill makes to recognize 
state stakeholders and incorporate their interests in revenue sharing.
  According to the U.S. Minerals Management Service (MMS), America's 
deep seas on the Outer Continental Shelf (OCS) contain 420 trillion 
cubic feet of natural gas (the U.S. consumes 23 TCF per year) and 86 
billion barrels of oil (the U.S. imports 4.5 billion per year). Even 
with all these energy resources, the U.S. sends more than $300 billion 
(and countless American jobs) overseas every year for energy we can 
create at home.
  In some cases, the U.S. is facing much-higher energy prices than 
other countries. Natural gas, for example, is as much at ten times more 
expensive in the United States than it is in foreign nations. This fact 
alone has led to the loss of hundreds of thousands of high-paying 
American jobs, as natural gas-dependent factories are forced to close 
their doors and move overseas in search of more affordable energy. The 
outsourcing of American jobs is an issue of central importance to me 
and my constituents, and I believe this bill is a step in the right 
direction of bringing jobs back to hard-working Americans.
  Yet the present issue I would like to speak on addresses the fact 
that contracts and leases, as considered in this bill, engage fierce 
competition from national and multinational corporations, in addition 
to domestic businesses. The share of businesses owned by minorities 
rose from 6.8 percent of all U.S. businesses in 1982 to 15.1 percent in 
1997, yet this is far below representative of the proportion of the 
minority population today.
  Historically, minority and women-owned businesses have been 
disadvantaged in seeking and winning these contracts. According to a 
survey by the Small Business Administration, minority-owned employer 
establishments had lower survival rates than non-minority-owned 
employer establishments between 1997 and 2002.
  During 1997-2001, the business expansion rates of three minority 
business groups were higher than that for non-minority-owned 
businesses. While 27.4 percent of non-minority owned establishments 
expanded during this period, 34.0 percent of Hispanic-owned employer 
establishments expanded, as did 32.1 percent of Asian and Pacific 
Islander owned establishments, and 27.8 percent of American Indian/
Alaska Native-owned establishments.
  There may be inherent disadvantages for these businesses, but it is 
clear their potential is tremendous. This amendment ensures that these 
businesses have the ability to compete fairly for these lucrative 
opportunities.
  I am very proud that my district, Harris County and Houston ranks 
sixth and Texas ranked fifth in the country for the largest number of 
African-American owned firms, following New York, California, Florida, 
and Georgia. Minority and women-owned businesses across the country 
will appreciate the effort to preserve their opportunity to compete for 
these contracts.
  I encourage the esteemed members of the committee to remember that 
there are a great many barriers to minority and women business 
professionals, and provisions such as these preserve equal access and 
open opportunities.
  In addition, we must continue to safeguard equal opportunities in 
fields of study and professions that have far too low of a minority 
ratio.

[[Page 13673]]

  According to the National Center for Educational Statistics, 
Americans who are African-American, Hispanic, and Native American make 
up only 9.7 percent of the science and engineering workforce, compared 
to 16.8 percent of the entire U.S. labor force.
  The National Science Foundation contends that although the 
proportions of women, Blacks, and Hispanics in science and engineering 
occupations have continued to grow over time, there are still fewer 
numbers in science than their proportions of the population. In 
addition, the representation of African-Americans in science and 
engineering occupations increased from 2.6 percent in 1980 to 6.9 
percent in 2000. The representation of Hispanics increased from 2.0 
percent to 3.2 percent. However, for Hispanics, this is proportionally 
less than their increase in the population.
  With these provisions, the door should be opened a few more inches. 
We want America's youth to find their way to engineering and the 
sciences.
  I encourage the esteemed members of the committee to remember that 
there are a great many barriers to minorities and women pursuing 
degrees in the sciences and in advancing their small businesses. 
Accordingly, my amendments which have been incorporated into the 
Manager's Amendment and my amendment regarding minority serving 
institutions which I will introduce on the floor provide provisions 
which preserve fundamental American values of equal access and 
opportunities.
  I urge my colleagues to support this amendment and final passage.
  Mr. POMBO. Mr. Chairman, I yield 1\1/2\ minutes to the gentleman from 
Wisconsin (Mr. Kind).
  Mr. KIND. Mr. Chairman, I thank the gentleman for yielding me this 
time.
  I find myself in the uncomfortable position of supporting legislation 
that my ranking member on the Resources Committee opposes, because I 
have all the respect and admiration for his knowledge of energy issues 
in this country.
  And I am the first to admit, standing here today, that we do need a 
new energy policy for a new century, one that transitions off our 
dependence on the imports of foreign oil, on fossil fuel consumption 
generally, with major investments in alternative and renewable energy 
sources, biofuels, hybrid technology; the energy source of the future, 
which is hydrogen power.
  But I also admit that this is not going to happen overnight. And the 
reality of the situation as it exists in the upper Midwest today is 
that we have well over 500 coal-burning electrical power plants today, 
58 in Wisconsin, with many more in line of production. And the main 
reason they are moving to more coal burning in the upper Midwest is 
because of the spike of natural gas prices in this country. No one can 
convince me that that is good and healthy for our environment. No one 
can convince me that that is the best route to take in our battle 
against global warming in this country.
  This, I believe, is commonsense legislation that brings the Gulf 
States into the decision-making as far as production off their coasts. 
I believe it will lead to a greater enhancement in production of 
natural gas capability in this country. It will enable us to buy some 
additional time in order to put together a long-ranging, forward-
looking energy policy that makes sense for our consumers, makes sense 
for our economy, and perhaps more importantly, makes sense for our 
battle against global warming that we face on this planet.
  I encourage my colleagues to support the legislation.
  Mr. RAHALL. Mr. Chairman, I yield myself such time as I may consume, 
continuing to claim my time in opposition.
  I understand that the administration has just come out with their 
position on this legislation; and, as I understand it, much to 
everybody's surprise, it is in opposition. It is in opposition on 
budget grounds, as I understand the statement that has just come out 
from the administration, as well as their opposition to the revenue-
sharing proposals that are contained inherent in this current 
legislation.
  Mr. Chairman, I reserve the balance of my time.
  Mr. POMBO. Mr. Chairman, I yield 1 minute to the gentleman from 
Hawaii (Mr. Abercrombie).
  Mr. ABERCROMBIE. Mr. Chairman, I have been saying both in debate and 
on the floor and talking to people that we want to reach out to those 
who say they are in opposition. But it is difficult to reach out when 
you have to listen to the kinds of things that are being said here 
about revenues and all the rest of it.
  Let us get something straight here. One hundred percent of nothing is 
nothing. There are no revenues coming in. All of these figures that are 
being bandied about as if we are losing something, we are not losing 
anything except energy independence in this country.
  Now we have reached out to everybody that we wanted to speak to and 
who has wanted to be honest with us about what we are talking about 
here today.
  We are losing jobs by the thousands. Why do you think that American 
labor is on our side in this? We are losing our petrochemical 
industries. We are losing our manufacturing base. We are losing our 
ability to farm, while rich, elite people in this country that support 
some of these environmental Taliban organizations are out there with 
the propaganda that is trying to say that some of us that are trying to 
get to energy independence are the ones that are causing the 
difficulty.
  Well, let me tell you something. We are not going to back off on 
this, and we are not going to listen to lies about revenue and 
distortions about revenue. We are going to bring revenue into this 
country and bring energy independence into this country. We are not 
backing down, and we are not backing off.
  Mr. RAHALL. Mr. Chairman, I yield 1 minute to the gentleman from 
Massachusetts (Mr. Markey).
  Mr. MARKEY. Mr. Chairman, I thank the gentleman for yielding.
  So the Bush administration has now checked in, and the Bush 
administration is saying they are very unhappy about $600 billion being 
taken from the Federal Government and given to four States. They are 
unhappy with this rip-off of the Federal taxpayers of 46 States. This 
transfer of $600 billion, down here. Yes, drill down here. Yes, drill 
tomorrow. Yes, at $70 a barrel, drill, drill, drill. That is 80 
percent. But do not ship $600 billion from the red States, the 46 
States, down to only four States.
  That is what the Bush administration just said to you all. It will 
force him to cut the budget in Iraq. It will force him to cut Medicare. 
Even this administration does not want this additional $600 billion 
loss.
  The Acting CHAIRMAN. The gentleman from California has 30 seconds 
remaining, and the gentleman from West Virginia has the right to close.
  Mr. POMBO. Mr. Chairman, I yield myself the balance of my time.
  I say that, regardless of how I describe the amendment, it really 
does not matter, because they make it up as they go along. And in terms 
of the message from the President, it actually says: ``The 
administration supports House passage of H.R. 4761 to advance the 
legislative process.'' They did not come out and oppose it.
  The underlying manager's amendment was an agreement that we worked 
out with so many different people in order to take care of issues that 
they had.
  I urge support of the manager's amendment.
  Mr. RAHALL. Mr. Chairman, I yield myself the balance of my time.
  That hardly sounds like a ringing endorsement of the legislation. 
When the administration says they want to move the process forward, I 
hardly think that means that they will sign the current bill as written 
into law. And I have the administration's language here in front of me.
  Mr. POMBO. Mr. Chairman, will the gentleman yield?
  Mr. RAHALL. Yes, I will yield. Did they say that it was signed into 
law?
  Mr. POMBO. Did they say that they opposed it?
  Mr. RAHALL. Well, it is hardly a ringing endorsement. I have been 
here 30 years, and I have seen administrations endorse legislation or I 
have seen where they wanted to move along the process.
  Reclaiming my time, the way I read it, although I don't have my 
glasses, it is to move this process forward.

[[Page 13674]]

  ``The administration strongly opposes revenue sharing . . . '' I am 
reading now. My eyes just focused.
  ``The administration strongly opposes revenue-sharing provisions that 
do not incentivize production and that would reduce Federal receipts 
relative to current law and have a long-term impact on the Federal 
deficit. The administration's preliminary estimate is that the revenue-
sharing provisions of H.R. 4761 would reduce Federal receipts by 
several hundred billion dollars over 60 years.''
  Is that a ringing endorsement? Is that support of the legislation? 
Read the English language.
  Mr. Chairman, I yield back the balance of my time.
  The Acting CHAIRMAN. The question is on the amendment offered by the 
gentleman from California (Mr. Pombo), as modified.
  The amendment, as modified, was agreed to.


                 Amendment No. 2 Offered by Mr. Inslee

  The Acting CHAIRMAN. It is now in order to consider amendment No. 2 
printed in House Report 109-540.
  Mr. INSLEE. Mr. Chairman, I offer an amendment.
  The Acting CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 2 offered by Mr. Inslee:
       In section 26(h)(3) (page 137, line 24), strike 
     ``$6,000,000'' and insert ``$20,000,000''.

  The Acting CHAIRMAN. Pursuant to House Resolution 897, the gentleman 
from Washington (Mr. Inslee) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Washington.
  Mr. INSLEE. Mr. Chairman, I yield myself such time as I may consume.
  This is a very simple amendment that will increase the amount of 
authorization for clean, renewable ocean energy projects from the 
current $6 million to $20 million.
  We have enormous potential off of our shores not only for oil and gas 
but for clean, renewable sources, including wave power-generated 
electricity and current-generated electricity, and there are several 
places in the United States where we are doing that today. In fact, in 
Hawaii, we have a wave power system that is generating electricity for 
the United States Navy, a very ingenious product that is essentially an 
ocean bell that bobs up and down just underneath the surface of the 
ocean, drives a hydraulic system, and generates electricity.
  Just to give you an order of magnitude of the capacity that we may 
have to develop off our shores, a 10 megawatt power station would only 
use 30 acres of ocean space. That is enough for 10,000 homes. A 10 by 
10 area off our oceans has enough capacity, and this is pretty amazing 
when you think about it, to generate all of the electricity used in the 
State of California. Now, these are prototypes in the water today, but 
we think they have great, great potential. So we would like a modest 
increase to allow this technology to go forward.
  It is a very modest increase, of course, and here is something we can 
do with our oceans that is clean and renewable. And we have heard the 
science coming out on global warming, the importance of not just 
relying on fossil fuel in our energy plan.
  Mr. Chairman, I yield 1 minute to the gentleman from New Jersey (Mr. 
Holt).

                              {time}  1630

  Mr. HOLT. Mr. Chairman, I thank the gentleman for yielding me time.
  Mr. Chairman, I rise in support of this amendment to devote more 
resources to extracting energy from the ocean. We should be doing 
everything we can to develop all sustainable environmentally benign 
sources. Ocean sources, whether you are talking about thermal 
gradients, tidal power, wave power, have a lot, a lot of energy and in 
many cases they can be extracted in an environmentally benign way.
  My colleague from Washington spoke about a kind of technology, for 
example, Ocean Power Technologies Company located in New Jersey has an 
installation in Hawaii that extracts energy from the waves and converts 
that to electricity. The buoys are located well offshore. They are 
invisible to residents from the coast line. There are, of course, still 
questions to be resolved, still technologies to be developed; but the 
basic technology to harness the ocean's power already exists. What the 
gentleman from Washington is proposing makes great sense.
  The Acting CHAIRMAN. Does the gentleman from California claim the 
time in opposition?
  Mr. POMBO. Yes, Mr. Chairman.
  The Acting CHAIRMAN. The gentleman is recognized for 5 minutes.
  Mr. POMBO. Mr. Chairman, I yield myself such time as I may consume.
  While I do support clean renewable energy, obviously we all have 
questions about this particular technology. We just heard an 
impassioned plea on the part of Mr. Rahall about the costs; and to go 
in and increase the cost does concern me, but I know this is something 
that Mr. Inslee has researched. He cares a great deal about it, and I 
tend to accept his explanation even though I do have some concerns.
  Mr. Chairman, I yield 30 seconds to the gentleman from Florida (Mr. 
Young).
  Mr. YOUNG of Florida. Mr. Chairman, in my enthusiasm for the 
manager's amendment, I transposed a number. I said the military mission 
line would protect 325 miles. It is actually 235 miles, which is still 
a good deal for Florida; but I just wanted to correct that I did 
transpose the number.
  Mr. POMBO. Mr. Chairman, I yield 2 minutes to the gentleman from 
Virginia (Mr. Cantor).
  Mr. CANTOR. Mr. Chairman, I thank the gentleman for yielding me time. 
I rise in opposition to the amendment and in support of the amended 
Deep Ocean Energy Resources Act.
  In America we continue to gamble our economic future through 
dependence on foreign sources of energy. The time to stop this is now. 
The most effective and sure way to secure our energy future is to 
utilize the fossil fuel resources we have here at home. The underlying 
bill will allow Virginia to choose exploration off its coast.
  Virginia's deep ocean production will help reduce America's 
dependence on foreign oil and provide a revenue source to fund the 
cleanup of the Chesapeake Bay. Energy security depends first on a 
reliable supply through exploration of domestic oil and gas reserves 
while we encourage the development of alternative sources of energy.
  This bill, Mr. Chairman, and I recognize the leadership and the 
gentleman of California in bringing this bill forward, is a necessary 
part of ensuring American energy security, and I am proud to support 
it.
  Mr. INSLEE. Mr. Chairman, I yield myself such time as I may consume.
  I appreciate the Chair's acceptance of the amendment. I just wanted 
to point out I have looked at this, as the Chair believes. I just want 
to point out in dealing with these new energy technologies, we are 
going to find some that are dry holes and do not work, but I think it 
is incumbent on us to look for any technology that has a reasonable 
chance for success. I think this one does. This is a good investment 
for taxpayers. I appreciate the Chair accepting the amendment.
  Mr. Chairman, I yield back the balance of my time.
  Mr. POMBO. Mr. Chairman, I yield myself such time as I may consume, 
and I yield to the gentleman from Mississippi.
  Mr. TAYLOR of Mississippi. Mr. Chairman, prior to Hurricane Katrina, 
the hottest topic on the Mississippi gulf coast was a proposed ban on 
drilling 12 miles out, and that has kind of been put on hold. But 
anywhere from champions of industry who actually own shipyards that 
repair drilling rigs are in favor of this; an ex-president of Tidewater 
Marine was in favor of this ban. A lot of people in the oil business 
wanted a ban for 12 miles off of Mississippi. My question is, how would 
this affect that? There really is not a synopsis of the bill available 
yet, and I regret that, and I am sure it is an oversight, but 
representing the people of south Mississippi, I would like to know how 
does this affect that.
  Mr. POMBO. Reclaiming my time, it does not impact it at all, and your

[[Page 13675]]

State would be able to continue doing exactly what they are doing.
  Mr. TAYLOR of Mississippi. So if the State wished to have a ban for 
12 miles from the shoreline or 12 miles out from the barrier islands, 
that would be within their jurisdiction under this bill?
  Mr. POMBO. Yes, sir. Reclaiming my time, it actually gives the State 
the first 50 miles that they do not have to do anything, and they could 
ban anything within that first 50 miles.
  Mr. TAYLOR of Mississippi. I thank the gentleman for yielding.
  Ms. JACKSON-LEE of Texas. Mr. Chairman, will the gentleman yield?
  Mr. POMBO. I yield to the gentlewoman from Texas.
  Ms. JACKSON-LEE of Texas. Mr. Chairman, I rise to support the Inslee 
amendment which we have accepted and I thank you, but I wanted to ask 
these two questions: one, the issue of revenue sharing perspectively 
does not limit itself just to States that names have been called. It 
does expand to the potential of revenue sharing. And secondly, the 
commitment that we would have to give advantage or give an opportunity 
for small, medium, women-owned, and minority-owned businesses in the 
granting of leases as we move toward conference and be able to develop 
expanded opportunities for jobs.
  Mr. POMBO. Reclaiming my time, I will tell the gentlewoman that we 
have talked about her amendment and her effort to expand the 
opportunities for smaller business, minority-owned and women-owned 
businesses. I fully support that and will continue to work with her to 
ensure that the revenue that is increased and the jobs that are 
increased because of this bill, we will give as much as we possibly can 
to small business and minority- and women-owned businesses because I 
support that goal.
  In terms of revenue sharing, contrary to some of the rhetoric you 
have heard here today, every single State that has any kind of 
development off its shores will share in the revenue. It is not just 
limited to the four States. Although those four States would probably 
like that, it is not just limited to the four States. It is open to 
every single coastal State.
  Mr. Chairman, I yield back the balance of my time.
  The Acting CHAIRMAN. The question is on the amendment offered by the 
gentleman from Washington (Mr. Inslee).
  The amendment was agreed to.


          Amendment No. 3 Offered by Mr. Tom Davis of Virginia

  The Acting CHAIRMAN. It is now in order to consider amendment No. 3 
printed in House Report 109-540.
  Mr. TOM DAVIS of Virginia. Mr. Chairman, I offer an amendment.
  The Acting CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 3 offered by Mr. Tom Davis of Virginia:
       Add at the end the following new section:

     SEC. __. AVAILABILITY OF OCS RECEIPTS TO PROVIDE FUNDS FOR 
                   TRANSPORTATION INFRASTRUCTURE OF THE NATION'S 
                   CAPITAL.

       Section 9 of the Outer Continental Shelf Lands Act (43. 
     U.S.C. 1338) is further amended by adding at the end the 
     following new subsection:
       ``(k) Availability of Funds for Improvements to the 
     Transportation Infrastructure of the Nation's Capital.--
     Notwithstanding any other provision of this section, 
     $150,000,000 of OCS Receipts shall be available to the 
     Secretary of the Treasury for each of fiscal years 2007 
     through 2016 to make payments, subject to appropriations, to 
     the Washington Metropolitan Area Transit Authority (as 
     defined in the National Capital Transportation Act of 1969) 
     (sec. 9--1111.01 et seq., D.C. Official Code) to finance in 
     part the capital and preventive maintenance projects included 
     in the Capital Improvement Program approved by the Board of 
     Directors of the Washington Metropolitan Area Transit 
     Authority.

  The Acting CHAIRMAN. Pursuant to House Resolution 897, the gentleman 
from Virginia (Mr. Tom Davis) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Virginia.
  Mr. RAHALL. Mr. Chairman, I claim the time in opposition to the 
amendment.
  Mr. TOM DAVIS of Virginia. Mr. Chairman, I yield myself such time as 
I may consume.
  Mr. Chairman, I commend Chairman Pombo for bringing H.R. 4761, the 
Deep Ocean Energy Resources Act of 2006, to the floor today. This 
important legislation would modernize a key aspect of our Nation's 
energy policy by providing for energy production on the Outer 
Continental Shelf of the United States.
  H.R. 4761 would generate a significant amount of new revenue in the 
form of oil and natural gas royalties for coastal States that allow 
offshore drilling, as well as the Federal Government. The amendment I 
am offering today would authorize a portion of the funds generated by 
the legislation to go to supporting Washington Metropolitan Area 
Transit Authority. Specifically, the amendment would provide $150 
million per year for 10 years to fund capital and preventative 
maintenance projects for Metro, without which Metro could not function 
effectively, would have to be matched dollar for dollar from Virginia, 
Maryland and the District.
  Congress has long recognized the unique relationship between Metro 
and the Federal Government. Three times we have authorized renewed 
Federal commitments to this system, understanding that it is a vital 
Federal Government asset.
  The government first committed to sharing in this responsibility for 
Metro in 1960 when President Eisenhower signed the National Capital 
Transportation Act, creating a National Capital Transportation Agency 
to develop a regional rail system for the Nation's capital. Since that 
time, Congress has periodically infused the system with Federal funding 
to protect its original investment and accommodate ridership growth. 
The government continues to pay its fair share of the costs of the 
capital region's transit system.
  Unlike other regional transit systems in the country, Metro was 
designed to make sure Federal workers and contractors as well as 
tourists have easy access to government offices and work places.
  Mr. Chairman, I reserve the balance of my time.
  Mr. RAHALL. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I certainly do not begrudge the gentleman from Virginia 
or the gentlewoman from the District of Columbia for their efforts to 
obtain additional funding for the transit system in this region. I have 
ridden it. It is a very valuable part of our infrastructure not only in 
our Nation's capital but in this country.
  Quite honestly, I do not see any link here between OCS, oil and gas 
leasing, and funding a particular transit system. I have got some 
roadways in my State I wish I would have thought to include in this 
bill as well. But nevertheless, the only specific authorized use of 
these funds is for the Land and Water Conservation Fund, up to a total 
of 900 million each and every year. That is important to my State.
  There is a linkage here with conservation of our land and water 
resources being financed with revenues obtained from the development of 
these resources in this bill. So if there is a linkage but here between 
OCS and WMATA, I see no linkage.
  Second, the Washington Metropolitan Area Transit, as all mature 
transit systems are, is eligible for funding and it does receive 
funding through the Mass Transit Account of the Highway Trust Fund. 
There I am happy to support it as well through my position on the 
Transportation and Infrastructure Committee. And I know that the 
authority is not really scratching for dollars these days, so that is 
why I claimed this time in opposition.
  Again, I salute Mr. Davis for his dedication as well as the 
gentlewoman, Ms. Holmes Norton.
  Mr. Chairman, I reserve the balance of my time.
  Mr. TOM DAVIS of Virginia. Mr. Chairman, I yield 1 minute to the 
gentlewoman from the District of Columbia.
  Ms. NORTON. Chairman Davis has gone to wonderful creative trouble to 
find the funds, funds that were not being obligated to use for other 
purposes. This may look like a regional matter. It is a matter 
involving 20 million visitors who come to the District

[[Page 13676]]

of Columbia and, frankly, have so piled on to the system that they have 
broken it down. Moreover, the rest of the people who use it during the 
weekdays are almost always Federal workers. We subsidize those Federal 
workers in order to get them to use this system. Watch what you wish 
for. They are now using it.
  Now the system in which we have invested so much, we helped build it, 
we the Federal Government, because we knew visitors and Federal workers 
were chiefly involved. Because of that we have got to have a dedicated 
stream of funding or we do not have enough cars and we are not able to 
protect our investment by keeping the upkeep and that is why it is 
falling down.
  In every respect, Members have more at stake than we do because of 
Federal workers and because our own constituents use this system. I 
thank the gentleman.
  Mr. RAHALL. Mr. Chairman, I yield the balance of my time to the 
gentleman from Massachusetts (Mr. Markey).
  Mr. MARKEY. Mr. Chairman, I thank the gentleman very much, and I 
congratulate the gentleman from Virginia. He is amongst the most astute 
Members of Congress, and it is clear that there is a big gravy train 
moving through Congress this afternoon and he is one of the very 
smartest Members to figure out that he should attach his constituents' 
agenda to it. And rapid transit is a very important issue. 
Unfortunately, the majority decided that Mr. Boehlert's amendment on 
fuel economy standards for automobiles was not important today. But I 
understand what the gentleman from Virginia is doing, and I 
congratulate him on his acute understanding of what this bill really 
is.
  By the way, when I was a boy, my father was a milkman, and you looked 
at television to see what you can aspire to be and my favorite show was 
always ``Perry Mason,'' and I could never really figure out how Perry 
was going to get his client out of the mess. And then with about 5 
minutes left to go in the show, every single week Della Street, his 
great assistant, would come into the back of the courtroom and say, I 
have new evidence.
  Now, the case would always get solved and Perry would always win. So 
I have been charged all afternoon with making up numbers, that there 
will not be, as I say there is, a $600 billion transfer from 46 States 
down to 4 States. But now we have a Della Street-like letter from the 
President of the United States to the Republican leadership of the 
committee. Here is what the President says, ``The administration 
strongly opposes the revenue-sharing provisions that do not incentivize 
production and that would reduce Federal receipts relative to current 
law and have a long-term impact on the Federal deficit. The 
administration's preliminary estimate is that the revenue sharing 
provisions would reduce Federal receipts by several hundred billion 
dollars.''

                              {time}  1645

  So it turns out that the numbers I was quoting from the Bush 
administration, from its own Department of Interior, that this would 
lead to a $600 billion loss of revenues from 46 States going down to 
four States is now confirmed by President Bush's letter to us this 
afternoon.
  So if you want to vote this way, Members of Congress, you can do it. 
And by the way, again I say this to Louisiana, Texas, Mississippi, 
Alabama, delegations: if you win this vote this afternoon, put out a 
press release. It is the greatest achievement of your career. It will 
be the greatest achievement you ever, ever have here in the House 
floor, moving $600 billion in one vote from 46 States to your States, a 
great victory.
  And President Bush today is asking the Members of Congress not to do 
it. Now, Mr. Pombo will say to you, do not fix it now, we will fix it 
later. But the President is saying this is a big mess. We oppose it. 
Clean it up. And still we have a chance to clean it up.
  Thank God we got the letter before we voted to create the mess. Now 
Mr. Pombo is saying, let's create the mess and we will clean it up when 
it gets to the Senate, which is, I think, an unnaturally great 
deference to a body that ordinarily does not receive that kind of 
respect from us.
  Why should we wait for them to have the responsibility to deal with 
what we all now understand to be a complete mess? Again, I congratulate 
Mr. Davis, because if this is going to happen, I give you credit for 
understanding that getting $150 million for his district makes a lot of 
sense.
  Mr. TOM DAVIS of Virginia. Mr. Chairman, I yield the balance of my 
time to the gentleman from Maryland (Mr. Hoyer).
  Mr. HOYER. Mr. Chairman, I think Perry Mason would be very proud of 
Mr. Davis on this effort. I understand, you and I have talked about it, 
it is an important effort. I sympathize and am going to vote with Mr. 
Markey, but I nevertheless think that your effort is certainly some 
small attempt to reduce, by some little bit, the $600 billion. I thank 
the gentleman for his efforts.
  Mr. TOM DAVIS of Virginia. I would appreciate your vote on the 
amendment.
  The Acting CHAIRMAN. The question is on the amendment offered by the 
gentleman from Virginia (Mr. Tom Davis).
  The amendment was agreed to.


                 Amendment No. 4 Offered by Mr. Markey

  The Acting CHAIRMAN. It is now in order to consider amendment No. 4 
printed in House Report 109-540.
  Mr. MARKEY. Mr. Chairman, I offer an amendment.
  The Acting CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 4 offered by Mr. Markey:
       Strike section 2 (page 2, beginning at line 6) and all that 
     follows through the quoted subsection (r) in section 6(4) 
     (through page 11, line 25), and insert the following:

     SEC. 2. ROYALTY SUSPENSION AUTHORITY AND IMPOSITION OF 
                   CONSERVATION OF RESOURCES FEES.

       Section 8 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1337) is amended by adding at the end the following 
     new subsections:
       At the end of section 6(3) (page 10, line 13), strike the 
     period after the closed quotation marks and insert ``; and''.
       In section 6(4), strike the quoted subsections (s) and (t) 
     (page 12, beginning at line 1).
       At the end of section 6(4) (page 13, line 22) strike the 
     semicolon and insert a period.
       Strike section 6(5) (page 13, beginning at line 23) and all 
     that follows through the end of the bill.

  The Acting CHAIRMAN. Pursuant to House Resolution 897, the gentleman 
from Massachusetts (Mr. Markey) and a Member opposed each will control 
5 minutes.
  The Chair recognizes the gentleman from Massachusetts.
  Mr. MARKEY. Mr. Chairman, what my amendment will do is to correct the 
problem that the President has identified, amongst other things that 
also need correcting in the bill, while leaving intact a wonderful 
provision that will ensure that we correct the problem that occurred in 
the 1990s during the Clinton administration, which allows for oil 
companies to escape paying the royalties which the American people 
should be receiving on leases which were given out during that period 
of time, 1998 and 1999.
  I agree with the intent of the language which is in the bill that the 
majority has crafted. They did a good job on that section, although 
with the rest of the bill I have a problem. And my amendment will help 
to correct that problem.
  Mr. Chairman, I reserve the balance of my time.
  Mr. POMBO. Mr. Chairman, I claim the time in opposition.
  The Acting CHAIRMAN. The gentleman is recognized for 5 minutes.
  Mr. POMBO. Mr. Chairman, I do appreciate Mr. Markey's kind words 
about at least one provision in the bill.
  I do appreciate that he did not want to waste that sign, since he had 
his staff make up the poster and they put a lot of hard work into that. 
And even though it is inaccurate and really has very little to do with 
the bill that we are discussing, I do appreciate his effort to recycle 
and reuse his information, even though it is inaccurate.
  For 30 years, opponents of American energy have cloaked their 
arguments in an environmental apocalypse. They

[[Page 13677]]

have tried to make the argument that no matter what we do, it will 
destroy the environment. I remember 30-plus years ago they started 
talking about wind energy production.
  And in my district we had one of the first windmill farms built 
anywhere in this country. And it produces today a sizeable amount of 
electricity: clean, nonpolluting electricity.
  Those windmills are up for renewal, to have their permits renewed. 
And lo and behold, the environmental groups are filing lawsuits against 
renewing those permits. Because they produce energy. They do not like 
energy production.
  And what this amendment that Mr. Markey brings to us does is it takes 
out all of the energy production. It does leave in the part about 
trying to fix the mistake that was made during the Clinton 
administration on royalties, but it takes out all of the energy 
production.
  It is a callous disregard for the jobs, the millions of jobs, that 
have been lost over the last 30 years of following this kind of policy. 
It is a callous disregard for the men and women of this country who 
want a good job, who want the opportunity to feed their family on a 
family-wage job. It takes it away. It tells them no.
  You know, one of the things that I have heard over the years is that, 
you know, union membership has gone down and tried to explain it away 
in so many different ways. And I hear people talk about it, and I 
think, you know, it is not about people not wanting to join the union; 
it is about that we exported all of their jobs. The people who used to 
work in the timber industry, their jobs are in Canada or Germany.
  The people who used to work in the mining industry, their jobs are 
now in South America. The people who work in oil and gas, their jobs 
are in the Middle East or Canada. We have exported their jobs. And if 
the Markey amendment passes, we not only do not get those jobs back, we 
are going to send the rest of them. Because we do not like people 
actually working producing energy. That is what he is telling us.
  This amendment went down in committee. It was offered, and it was 
eloquently debated. But it went down big. And it went down big because 
the people on the committee who have spent the greatest amount of time 
working on this issue know how important it is to create jobs in this 
country, to create clean natural gas in this country, so that it can be 
the bridge to the future, so that things like Mr. Inslee's wave machine 
may end up producing enough electricity so that we do not have to be 
dependent on foreign oil any more.
  Mr. Chairman, I reserve the balance of my time.
  Mr. MARKEY. Mr. Chairman, I yield 1\3/4\ minutes to the gentlewoman 
from California (Mrs. Capps).
  Mrs. CAPPS. Mr. Chairman, I thank my colleague for yielding me time.
  Mr. Chairman, I rise in strong support of the Markey amendment that 
would preserve the longstanding moratorium so important to coastal 
States. The amendment would also preserve the underlying bill's one 
redeeming feature, the renegotiating of the cash-cow leases now pouring 
billions of dollars into already stuffed oil industry coffers.
  Mr. Chairman, the bill before us represents what is wrong with the 
Republican energy strategy. We have something like 3 percent of the 
world oil reserves, and yet are responsible for 25 percent of the 
world's demand. A report out yesterday noticed that with only 5 percent 
of the world's population, the United States has 30 percent of the 
world's automobiles, and we produce 45 percent of the world's 
automotive carbon dioxide emissions.
  This addiction harms our environment, our economy and our national 
security. Even oil man George Bush says we are addicted to oil and we 
must confront our problem. But the Republican strategy is just to drill 
more. Not too much concerned about energy efficiency or conservation, 
no real emphasis on alternative renewable energy. This is where we need 
to go in the 21st century with the many new jobs it would entail in the 
Midwest and all around the country.
  Instead, what we have before us is a bill that attempts to bribe 
coastal States into drilling off their shores by promising them more 
money, a lot more money. Even the Bush administration says the bill 
would drive up the Federal deficit by hundreds of billions of dollars 
over the next few decades.
  The argument that the bill gives States control over their coast is 
specious at best. Control is mostly given to States that want to drill; 
those that do not confront numerous hurdles for temporary protection 
that can simply be overridden by Federal authorities.
  Authority over Federal waters off our coast being moved to various 
State capitals is a bad idea anyway. These are Federal waters. They 
belong to all of us. The impacts from drilling, effects on fishing or 
shipping are bigger than the interest of one State. Mr. Markey's 
amendment would restore some sanity to this process. We should adopt 
it.
  Mr. POMBO. Mr. Chairman, I yield to Mr. Kirk for a unanimous consent 
request.
  Mr. KIRK. Mr. Chairman, I thank the gentleman for yielding. I would 
like to compliment the manager's amendment on reducing the fiscal 
impact of this bill.
  Mr. Chairman, I rise in opposition to this legislation--a bill the 
President has said ``would reduce Federal receipts by several hundred 
billion dollars over the next 60 years.'' As the Statement of 
Administration Policy put it, the administration strongly opposed key 
provisions ``because of their long-term consequences on the Federal 
deficit.''
  This bill establishes new entitlement programs--mandatory spending 
mechanisms that already drive up our deficit. It establishes costly oil 
shale leases and imposes other expensive charges the Federal budget 
cannot afford.
  I am also worried that the bill sets up the oil and gas industry 
above all other Federal interests. Under section 16, all Federal 
permitting is prohibited, despite my other marine or naval concerns. 
Many of these rigs could be put in sensitive waters with national 
defense implications. Under this bill, the government can consider no 
other issue--even for the defense of this Nation.
  Section 17 allows lessees to request the Federal Government to 
repurchase leases.
  This is an irresponsible provision that allows a transfer of risk 
from an energy company to the taxpayer. This is ironic because while 
the Federal Government is in the red, most energy companies are 
earnings record profits.
  Mr. Chairman, we can have an honest debate about whether we should 
open the Outer Continental Shelf to energy development but there should 
be little debate on granting new assistance at the expense of the 
taxpayer to energy companies who are some of the most profitable 
entities on earth.
  This bill, as it has been written, was a great threat to the 
Treasury. I want to compliment the Chairman and Ranking Minority Member 
for the manager's amendment they crafted that dramatically reduces the 
cost of this bill. This amendment heeds many of the fiscal concerns of 
the President and reduces that budgetary impact of the proposed 
legislation. I would now urge the authors to further listen to the 
President's fiscal guidance.
  Mr. MARKEY. Mr. Chairman, I yield myself the remaining minute.
  What the Markey amendment will do is to remove the provision which 
takes $600 billion from 46 States and gives it to four States, where 
oil and gas companies can already drill. If my amendment is adopted, 
according to CBO, my amendment will then generate $13 billion in new 
revenues over the next 10 years.
  So your choice on the Markey amendment is lose $600 billion or gain 
$13 billion. Ladies and gentlemen, that is what this thing is all 
about. It is all about the money. Because 80 percent of the oil and gas 
that can be drilled for off our coast is already available. They might 
have a lot of additional coastline in America, but the geological 
service and the oil companies have said 80 percent of it is right here. 
By the way, it is already legal to go there.
  And we, Ed Markey, liberal from Massachusetts, we want you to go 
there. I want you to drill there. Get the oil that is down there in the 
gulf. But the revenues should go to the Federal Government or else, as 
George Bush has just said to us in a letter this afternoon, we will 
lose hundreds of billions of dollars to the Federal Government and give 
it to only four States without any real understanding or debate here on 
the House floor.

[[Page 13678]]

  Vote for the Markey amendment. Let's generate $13 billion worth of 
revenue for our country rather than lose $600 billion.
  Mr. POMBO. Mr. Chairman, I yield myself the balance of the time.
  Mr. Chairman, there is a great deal of misunderstanding about what 
this bill is about. And there is one thing that Mr. Markey said that 
was actually accurate, and that is that it is about the money. We just 
saw recently in Canada, they announced they needed 100,000 new oil 
field workers, 100,000. And they are taking them from us. They are 
taking our jobs from us to produce our energy.
  We also heard one of my colleagues from California, and I am just 
amazed by this, right now the State of California controls 3 miles off 
its coast. This bill gives our State 100 miles. We would control 100 
miles off our coast. Not 3, 100.
  If you really do oppose drilling off the coast of California or 
Florida or wherever your State may be, you have to support the bill and 
vote against the short-sighted, mean, callous Markey amendment.
  The Acting CHAIRMAN. The question is on the amendment offered by the 
gentleman from Massachusetts (Mr. Markey).
  The question was taken; and the Acting Chairman announced that the 
noes appeared to have it.
  Mr. MARKEY. Mr. Chairman, I demand a recorded vote.
  The Acting CHAIRMAN. Pursuant to clause 6 of rule XVIII, further 
proceedings on the amendment offered by the gentleman from 
Massachusetts will be postponed.

                              {time}  1700


                Amendment No. 5 Offered by Mr. Bilirakis

  The Acting CHAIRMAN. It is now in order to consider amendment No. 5 
printed in House Report 109-540.
  Mr. BILIRAKIS. Mr. Chairman, I offer an amendment.
  The Acting CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 5 offered by Mr. Bilirakis:
       In section 9(2), in the quoted subsection (g)(1)(A), strike 
     ``50 miles'' each place it appears (page 38, lines 9 and 19) 
     and insert ``125 miles'' .
       In section 9(2), in the quoted subsection (g)(1), strike 
     subparagraph (B) (page 39, beginning at line 6).
       Page 40, lines 17 and 18, strike ``100'' each place it 
     appears and insert ``125''.
       In section 9(2), strike the quoted subsection (h) (page 46, 
     beginning at line 7).
       In section 9(2), in the quoted subsection (i) (page 48, 
     beginning at line 7)--
       (1) strike ``or (h), or both,'';
       (2) strike ``(1)''; and
       (3) strike ``, and (2)'' and all that follows through the 
     end of the sentence and insert a period.

  The Acting CHAIRMAN. Pursuant to House Resolution 897, the gentleman 
from Florida (Mr. Bilirakis) and a Member opposed each will control 5 
minutes.
  Mr. RAHALL. Mr. Chairman, I claim the time in opposition.
  The Acting CHAIRMAN. The Chair recognizes the gentleman from Florida.
  Mr. BILIRAKIS. Mr. Chairman, I yield myself such time as I may 
consume.
  I am offering this amendment with several of my Florida colleagues: 
Debbie Wasserman-Schultz, Bill Young, Ginny Brown-Waite, Katherine 
Harris, Robert Wexler, Mario Diaz-Balart, and Cliff Stearns.
  First of all, Mr. Chairman, I am told that this amendment is slated 
for defeat, and that is really unfortunate because it greatly improves 
the basic bill in that it provides solid, true statutory protections 
off of Florida and all coastal State shores. This amendment does not 
shred the existing 25-year drilling moratorium, as claimed by some 
vocal groups. In fact, that moratorium ends in 2007 and 2012. The 
moratorium is by executive order. It can be revoked at any time, even 
before July 1, 2007, and before 2012.
  This amendment codifies in statute the protection up to 125 miles. 
The moratorium does not now cover the Florida Keys nor most of the 
Florida Atlantic. The amendment gives protection to all of the Florida 
coastlines and to other coastal States permanently, not subject to the 
whims of any executive.
  This form of government is a republic, meaning that we legislators 
represent our constituents' interests, a government of, by and for the 
people. We ask ourselves, who is better equipped to better decide how 
close offshore drilling should come to a State's coast, the U.S. 
Congress or the States themselves?
  I say that the people of coastal States should make that decision. If 
they want leasing and drilling, they can opt in. If they do not, then 
no action is required.
  The bottom line, Mr. Chairman, of my amendment is to allow States to 
determine whether or not drilling occurs closest to their coastlines.
  Mr. Chairman, I reserve the balance of my time.
  Mr. RAHALL. Mr. Chairman, I yield myself such time as I may consume.
  By extending ``no leasing'' buffer zones to 125 miles away from the 
State boundaries, this amendment is I must admit an improvement in the 
current bill from the perspective of its Florida sponsors, and I 
certainly understand that and commend them for the effort here.
  However, as is in the underlying bill, the amendment gives effective 
control over national resources to the States.
  The OCS lands and oil and gas resources belong to all the people of 
America. The name of every West Virginian, the name of other citizens 
of our country are on the deed to these properties.
  So these oil and gas resources belong to all the American people and 
not just to those who reside in the adjacent States; and, as such, 
Congress should retain the powers to make the decisions regarding those 
national resources on those grounds. It is for that reason that I 
object to the amendment.
  Mr. Chairman, I reserve the balance of my time.
  Mr. BILIRAKIS. Mr. Chairman, I yield myself such time as I may 
consume.
  I would suggest to the gentleman, with all due respect, that the 
mountains of West Virginia, those beautiful mountains, belong to all 
the people, too, but I would expect the people of West Virginia could 
make the best decision regarding those mountains.
  Mr. RAHALL. If the gentleman would yield, in response to the 
gentleman, that was not an accurate statement. The mountains of West 
Virginia do not belong to all the people of this land.
  Mr. BILIRAKIS. Mr. Chairman, I yield 1 minute to the gentlewoman from 
Florida (Ms. Wasserman Schultz.)
  Ms. WASSERMAN SCHULTZ. Mr. Chairman, I thank the gentleman from 
Florida.
  There are times in life when we must make difficult choices. The 
Bilirakis, Wasserman Schultz and others amendment will add 125 miles of 
protection and require the legislature to affirmatively vote to allow 
drilling closer than that distance. It adds protection to the Outer 
Continental Shelf coastline that we do not now enjoy.
  The choice in front of us on this amendment is do we squeeze our eyes 
shut tight, cross our fingers and pray that we will never have drilling 
off of our coastline or do we act now and ensure that we do not? I 
believe in controlling our own destiny. I want to know that there is 
125 miles of protection that we do not now have off the eastern 
coastline.
  For those Members that are opposed to this bill, as I am, you can 
vote in good conscience for this amendment and ensure a significant 
amount of protection in the event that the bill passes. If this 
amendment does not pass and the bill does, then we are left with the 
possibility of having oil rigs within 50 miles of our coastline. That 
is an unacceptable option.
  We should act now to ensure that we have at least 125 miles of 
protection off the eastern coast in the Outer Continental Shelf.
  I urge the adoption of the Bilirakis-Wasserman Schultz amendment.
  There are times in life when we must make choices, some of them are 
easy and some of them are not. I firmly believe that as Members of 
Congress we have an obligation to protect

[[Page 13679]]

people and the environment who have only our votes standing between 
them and devastating consequences.
  I am an opponent of oil drilling. I have never voted for drilling in 
my 14 years as a public servant. But as public servants we must use 
both our heart and our head when deciding what is best at any given 
moment in time. The underlying legislation would be harmful to our 
environment. Drilling 50 miles off our coast, which is possible under 
the Pombo legislation is irresponsible. We should be investing in 
alternative energy resources and truly breaking ourselves of the 
addiction to oil referenced in President Bush's State of the Union 
speech. But, we won't have that chance today and sadly, unless the tide 
turns in this body, I fear that we won't ever have that chance.
  I represent the cities of Ft. Lauderdale, Hollywood and Miami Beach, 
from the ocean to the Everglades. Florida's coastline must be 
protected. Our economy depends on our number one industry--tourism, 
which brings in 86 million tourists annually, supports one million jobs 
and generates $56 billion. There is a lot at stake for Florida.
  That is why there are times in life when we must make difficult 
choices. The Bilirakis, Wasserman Schultz and others amendment will add 
125 miles of protection and require the legislature to affirmatively 
vote to allow drilling closer than that distance. It adds protection to 
the Outer Continental Shelf coastline that we do not now enjoy. The 
choice in front of us on this amendment is do we squeeze our eyes shut 
tight, cross our fingers and pray that we'll never have drilling off of 
our coastline or do we act now and ensure that we don't? I believe in 
controlling our own destiny. I want to know that there is 125 miles of 
protection that we do not now have off the eastern coastline. For those 
Members that are opposed to this bill, as I am, you can vote in good 
conscience for this amendment and ensure a significant amount of 
protection in the event that the bill passes. If this amendment does 
not pass and the bill does, then we are left with the possibility of 
having oil rigs within 50 miles of our coastline. That is an 
unacceptable option. We should act now to ensure at least 125 miles of 
protection off the eastern coastline.
  At the end of the day, we are representatives of our communities and 
our States, but we are ultimately United States Representatives, 
charged with thinking about our whole country. In that role, we have an 
obligation to ensure that the legislative products we send out of this 
institution, with or without our votes contain the best content we can 
develop. That requires the courage to compromise. Henry Clay said it 
best,

       ``All legislation . . . is founded upon the principle of 
     mutual concession--Let him who elevates himself above 
     humanity, above its weaknesses, its infirmities, its wants, 
     its necessities, say, if he pleases, ``I never will 
     compromise''; but let no one who is not above the frailties 
     of our common nature disdain compromise.''

  The coastline of the Unites States of America must have the maximum 
protection we can attain for her. The Bilirakis-Wasserman Schultz 
amendment does that. Is it perfection? No, but if we live for 
perfection, we risk failure. The failure to protect our environment as 
much as we can is not an option. This amendment provides that 
protection for in this legislation. Without it, our environment faces 
grave danger.


                  Announcement by the Acting Chairman

  The Acting CHAIRMAN. The Chair would ask Members not to step in front 
of someone who is speaking.
  Mr. RAHALL. Mr. Chairman, I yield 1 minute to the distinguished 
gentleman from Florida (Mr. Weldon).
  Mr. WELDON of Florida. Mr. Chairman, I thank the gentleman for 
yielding.
  I rise in opposition to the Bilirakis amendment. He is a good friend 
of mine. I do not agree with him on this issue.
  I represent about 75 miles of coastline. We had no spills from 
Katrina and Rita. You cannot see an oil derrick beyond about 40 miles, 
and I think the language in the bill the chairman has put in there is 
very good. You have got 50 miles of protection, and then the State, if 
it wants to allow drilling 50 to 100 miles, it can.
  Let us face it, gas is at $3 a gallon. Renewable energy resources are 
not there yet. I think we need to explore that.
  Jeepers, I drive a hybrid vehicle. I drove up here just now in a 
hybrid vehicle. But we need fuel, and I think this is a very, very good 
bill, and I think the Bilirakis amendment goes too far. I would 
encourage all my colleagues, as somebody from Florida, vote ``no'' on 
the Bilirakis amendment.
  Mr. BILIRAKIS. Mr. Chairman, I yield 45 seconds to the gentleman from 
Florida (Mr. Boyd).
  Mr. BOYD. Mr. Chairman, I thank the gentleman for yielding.
  There are some provisions in the underlying Pombo bill that are very 
onerous, and one of them in particular is the opt-in/opt-out language, 
particularly opt-out, which most of us that have served in the State 
legislature understand that there are a thousand ways to kill 
legislation which you would have to opt out.
  The opt-in language is much better. So if you are opposed to the 
legislation, I would strongly request that you support the Bilirakis 
amendment which will fix the onerous language that is in the Pombo bill 
which requires an opt-out by the State legislature.
  Mr. RAHALL. Mr. Chairman, I yield 1 minute to the gentleman from 
Pennsylvania (Mr. Peterson), one of the cosponsors of the original 
underlying bill.
  Mr. PETERSON of Pennsylvania. Mr. Chairman, I thank the gentleman.
  This is a very important amendment that should not pass. We have 
worked very hard. There has been a lot of compromise in this bill. We 
have given a lot of shoreline protection, 50 miles locked up, total 
State control. They have to opt out. The next 50-miles is rich with gas 
up and down our coast, and this country needs natural gas to fuel the 
industries that employ the blue collar workers of this country.
  If we wait for Houses and Senates and governors to agree, I served in 
one for 20 years. It takes a long time. We cannot add years to the 
process. We need to open up our coastlines. We need to allow the States 
to have to opt out.
  There will be a debate in every coastline State, and I am confident 
that in many States the vote will be to open up for natural gas 
specifically because of the need and because of the volume, that it is 
there to preserve the jobs in this country and keep this country 
competitive.
  Mr. BILIRAKIS. Mr. Chairman, I yield 30 seconds to the gentleman from 
Florida (Mr. Wexler).
  Mr. WEXLER. Mr. Chairman, I rise to support this vital amendment that 
would extend the prohibition on offshore drilling from 100 to 125 miles 
off the coast. The amendment would also require States to proactively 
opt in, as has been described, to drilling, giving States that do not 
want to drill the ability to do so clearly.
  This amendment is vital to coastal States as it provides further 
protection from drilling, and I would urge everyone to support it.
  Mr. RAHALL. Mr. Chairman, I yield 2 minutes to the gentleman from 
Massachusetts (Mr. Markey).
  Mr. MARKEY. Mr. Chairman, I thank the gentleman.
  Again, I want to congratulate the gentleman from West Virginia for 
his leadership on this issue and on the bill this afternoon, and I want 
to congratulate the Florida delegation for their success in improving a 
bad bill but not changing the fundamental nature of the bill. It is a 
bad bill, but it is an improvement, and I give them credit for that, 
but it should not be in any way interpreted as a reason to vote for the 
bill.
  Again, jobs come from energy. The energy comes from leases that have 
already been given over to oil companies, 80 percent of which have 
never been drilled on, but it has already happened. The Bush 
administration says that the area already open is where 80 percent of 
the oil and gas off our shores is.
  The big issue that we are all going to have to vote on final passage 
is whether or not we are going to allow a transfer of $600 billion from 
46 States that now receive that $600 billion as a promise over the next 
several decades, or we are going to allow the oil companies to give 
that money to four States, even though the drilling is on Federal land, 
even though those leases have already been obtained by the oil 
companies but they have been waiting for the price of oil to go to $70 
a barrel, which is where it is now. We do not have to give them any 
additional incentives.
  This bill makes no sense whatsoever. It runs totally contrary to the 
economics of energy, and President Bush has

[[Page 13680]]

now sent us a letter and asked us to not allow this $600 billion to go 
down here but to keep it up here in the Federal budget that can be used 
to keep our budget balanced.
  Mr. BILIRAKIS. Mr. Chairman, I yield 25 seconds to the gentlewoman 
from Florida (Ms. Ginny Brown-Waite).
  Ms. GINNY BROWN-WAITE of Florida. Mr. Chairman, I thank the 
gentleman.
  Mr. Chairman, this is a very important amendment that is going to 
protect the coastlines not just in Florida. This is not just a Florida 
issue, but it is going to protect the coastlines by another 25 miles.
  The 25-miles can make a real difference to people who live near the 
coastline. The existing moratorium is limited in scope and can be done 
away with in the Florida area.
  This is a bipartisan amendment. We heard from two Members of the 
other side who also support it, and I urge support for the amendment.
  Mr. BILIRAKIS. Mr. Chairman, I yield to the gentleman from Florida 
(Mr. Stearns) for the purposes of a unanimous consent request.
  Mr. STEARNS. Mr. Chairman, I thank my distinguished colleague for all 
his leadership on this issue, going back, way back, and I rise in 
strong support of this amendment. I thank my friend for his leadership.
  I rise today in strong support of this amendment and I thank my 
friend, Mr. Bilirakis and my other Florida colleagues for offering it. 
This amendment ensures that no oil or natural gas leasing occurs within 
125 miles of a State's coastline unless the State requests leasing. 
This amendment provides the States with real authority to protect their 
coastlines and I urge its adoption.
  We can all agree that the United States is far too reliant on 
imported sources of energy. Currently we import 60 percent of our oil 
demand, and by 2025 that number will increase to nearly 75 percent. In 
addition, the rising price of natural gas is causing serious problems 
to many different sectors of our economy.
  This dependence on imported sources of energy is a threat to our 
economy and to our national security. In addition to expanding 
alternative fuels and employing clean fuel technologies, we need to 
produce more oil and natural gas domestically.
  The United States encompass a wide diversity featuring deserts, 
tropical forests, and arctic tundra. The States vary, with some 
dependent on agriculture and others on manufacturing. States such as 
Alaska rely on developing its natural resources, and I support the will 
of the Alaskan people to open their land to oil and gas development.
  However, my State of Florida has a different reliance on its natural 
resources, maintaining our pristine beaches and waters that could be 
damaged by offshore drilling. If Alabama or Louisiana wants to permit 
leasing off its shores, then such leasing should be allowed. But, if my 
State of Florida has concerns about the effect leasing would have on 
its fragile ecosystem and its tourism economy, then Florida should be 
have the authority to ban leasing off its shores.
  The underlying bill opens areas to oil and gas leasing that are 
currently under moratorium while protecting the rights of States to 
control activities off their shores. As written, H.R. 4761 gives States 
1 year from the date of enactment to decide whether to permit or deny 
natural gas leasing in the area between 50 and 100 miles of their 
coastlines. If a state does not act, however, leasing can occur. Thus, 
States have to act in order to prevent leasing between 50 and 100 
miles.
  This amendment seeks to increase the power States would have in 
deciding whether or not to allow leasing off their shores. It would 
prohibit oil and gas leasing within 125 miles of a State's coast unless 
the Governor and State legislature agree to permit leasing in this 
area. Instead of having the State take action to prevent leasing, as 
the DOER Act would require, leasing could only occur within 125 miles 
of the coast if the State explicitly allows it.
  In closing, Mr. Chairman, in a nation as diverse and with as many 
competing interests as the United States, it is important to return 
greater authority to the States so they can control activities 125 
miles offshore. This amendment does that and I urge its adoption.
  Mr. BILIRAKIS. Mr. Chairman, I yield the remaining 20 seconds to the 
gentleman from Florida (Mr. Mario Diaz-Balart).
  Mr. MARIO DIAZ-BALART of Florida. Mr. Chairman, I have always opposed 
offshore oil drilling. This amendment extends the protection an 
additional 25 miles. It is a good amendment. Please support it.
  The Acting CHAIRMAN. The question is on the amendment offered by the 
gentleman from Florida (Mr. Bilirakis).
  The question was taken; and the Acting Chairman announced that the 
noes appeared to have it.
  Mr. BILIRAKIS. Mr. Chairman, I demand a recorded vote.
  The Acting CHAIRMAN. Pursuant to clause 6 of rule XVIII, further 
proceedings on the amendment offered by the gentleman from Florida will 
be postponed.
  Mr. POMBO. Mr. Chairman, I move that the Committee do now rise.
  The motion was agreed to.
  Accordingly, the Committee rose; and the Speaker pro tempore (Mr. 
Bonner) having assumed the chair, Mr. LaHood, Acting Chairman of the 
Committee of the Whole House on the State of the Union, reported that 
that Committee, having had under consideration the bill (H.R. 4761) to 
provide for exploration, development, and production activities for 
mineral resources on the Outer Continental Shelf, and for other 
purposes, had come to no resolution thereon.

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