S.Amdt. 803

1. Adds SEC. 32. COASTAL IMPACT ASSISTANCE PROGRAM at the end of section 1.

   Adds a section

   Inserted: SEC. 32. COASTAL IMPACT ASSISTANCE PROGRAM.

   Inserted: (a) In this section:

   Inserted: ( 1) The term 'approved plan' means a secure energy reinvestment plan approved by the Secretary under this section.

   Inserted: (2) The term 'coastal energy State' means a coastal State off the coastline of which, within the seaward lateral boundary, an outer Continental Shelf bonus bid or royalty is generated.

   Inserted: (3) The term 'coastal political subdivision' means a county, parish, or other equivalent subdivision of a coastal energy State, all or part of which, on the date of the enactment of this section, lies wthin the boundaries of the coastal zone of the State, as identified in the coastal zone management program of the State approved under the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.).

   Inserted: (4) The term 'coastal population' means the population of a coastal political subdivision, as determined by the most recent official data of the Census Bureau.

   Inserted: (5) The term 'coastline' has the meaning given the term 'coast line' in section 2(c) of the Submerged Lands Act (43 U.S.C. 1301(c)).

   Inserted: (6) The term 'Fund' means the Secure Energy Reinvestment Fund established by subsection (b)(1).

   Inserted: (7) The term 'leased tract' means a tract maintained under section 6 or leased under section 8 for the purpose of drilling for, developing, and producing oil and natural gas resources.

   Inserted: (8) The term 'qualified outer Continental Shelf revenues' means all amounts received by the United States on or after October 1, 2005, from each leased tract or portion of a leased tract lying seaward of the zone defined and governed by section 8(g) (or lying within that zone but to which section 8(g) does not apply), including bonus bids, rents, royalties (including payments for royalties taken in kind and sold), net profit share payments, and related interest.

   Inserted: (9) The term 'Secretary' means the Secretary of the Interior.

   Inserted: (b)(1)(A) There is established in the Treasury of the United States a separate account to be known as the 'Secure Energy Reinvestment Fund'.

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   Inserted: (B) The Fund shall consist of--

   Inserted: (i) any amount deposited under paragraph (2); and

   Inserted: (ii) any other amounts that are appropriated to the Fund.

   Inserted: (2) For each fiscal year 2006 through 2009, the Secretary of the Treasury shall deposit into the Fund $300,000,000.

   Inserted: (B) All repayments made under subsection (f).

   Inserted: (3) For each of fiscal years 2006 through 2020, in addition to the amounts deposited into the Fund under paragraph (2), there are authorized to be appropriated to the Fund an amount equal to 27 percent of the qualified outer Continental Shelf revenues received by the United Stated during the preceding fiscal year.

   Inserted: (c)(1)(A) The Secretary shall use any amount remaining in the Fund after the application of subsection (h) to pay to each coastal energy State, and any coastal political subdivision of a State, the secure energy reinvestment plan of which is approved by the Secretary under this section, the amount allocated to the State or coastal political subdivision, respectively, under this subsection.

   Inserted: (B) During December 2006, and each December thereafter, the Secretary shall make any payment under this paragraph from revenues received in the Fund by the United States during the preceding fiscal year.

   Inserted: (2) The Secretary shall allocate any amount deposited into the Fund for a fiscal year, and any other amount determined by the Secretary to be available, among coastal energy States, and coastal political subdivisions of those States, that have a plan approved by the Secretary under this section as follows:

   Inserted: (A)(i) Of the amounts made available for each fical year for which amounts are available for allocation under this paragraph, the allocation for each coastal energy State shall be calculated based on qualified Outer Continental Shelf revenues from each leased tract or portion of a leased tract the geographic center of which is within a distance (to the nearest whole mile) of 200 miles from the coastline of the State and shall be inversely proportional to the distance between point nearest point on the coastline of such coastal energy State and the geographic center of each such leased tract or portion of a leased tract, as determined by the Secretary.

   Inserted: (ii) For the purposes of this subparagraph, qualified outer Continental Shelf revenues shall be considered to be generate off the coastline of a coastal energy State if the geographic center of the lease tract from which the revenues are generated is located within the area formed by the extension of the seaward lateral boundaries of the State, calculated using the conventions established to delimit international lateral boundaries under the Law of the Sea.

   Inserted: (B) 35 percent of the allocable share of each coastal energy State, as determined under subparagraph (A), shall be allocated among and paid directly to the coastal political subdivisions of the State by the Secretary based on the following formula:

   Inserted: (i) 25 percent shall be allocated based on the ratio that--

   Inserted: (I) the coastal population of each coastal political subdivision; bears to

   Inserted: (II) the coastal population of all coastal political subdivisions of the coastal energy State.

   Inserted: (ii)(I) 25 percent shall be allocated based on the ratio that--

   Inserted: (aa) the length, in miles, of the coastal of each coastal political subdivision; bears to

   Inserted: (bb) the length, in miles, of the coastline of all coastal political subdivisions of the State.--

   Inserted: (II) For purposes of this clause, in the case of a coastal political subdivision in Louisiana without a coastline, the coastline of the political subdivision shall be considered as \1/3\ the average length of the coastline of the other coastal political subdivisions of the State.

   Inserted: (III) Exception for the State of Alaska.-- For the purposes of carrying out subparagraph (c)(2)(B) in the State of Alaska, the amounts allocated shall be divided equally among the 2 coastal political subdivisions that are closest to the geographic center of a leased tract.

   Inserted: (iii) 50 percent shall be allocated based on a formula that allocates--

   Inserted: (I) 75 percent of the funds based on the relative distance of the coastal political subdivision from any leased tract used to calculate the allocation to that State; and

   Inserted: (II) 25 percent of the funds based on the relative level of outer Continental Shelf oil and gas activities in a coastal political subdivision to the level of outer Continental Shelf oil and gas activities in all coastal political subdivisions in the State, as determined by the Secretary.

   Inserted: (3) Any amount allocated to a coastal energy State or coastal political subdivision that is not disbursed because of a failure of a Coastal energy State to have an approved plan shall be reallocated by the Secretary among all other coastal energy States in a manner consistent with this subsection, except that the Secretary--

   Inserted: (A) shall hold the amount in escrow within the Fund until the earlier of--

   Inserted: (i) the end of the next fiscal year during Which the allocation is made; or

   Inserted: (ii) the date on which a final resolution of an appeal regarding the disapproval of a plan submitted by the State under this section is filed; and

   Inserted: (B) shall continue to hold the amount in escrow until the end of the subsequent fiscal year, if the Secretary determines that a State is making a good faith effort to develop and submit, or update, a secure energy reinvestment plan under subsection (d).

   Inserted: (4) Notwithstanding any other provision of this subsection, the amount allocated under this subsection to each coastal energy State during a fiscal year shall be not less than 5 percent of the total amount available for that fiscal year for allocation under this subsection to coastal energy States.

   Inserted: (5) If the allocation to 1 or more coastal energy States under paragraph (4) during any fiscal year is greater than the amount that would be allocated to those States under this subsection if paragraph (4) did not apply, the allocations under this subsection to all other coastal energy States shall be--

   Inserted: (A) paid from the amount remaining after the amounts allocated under paragraph (4) are deducted; and

   Inserted: (B) reduced on a pro rata basis by the sum of the allocations under paragraph (4) so that not more than 100 percent of the funds available in the Fund for allocation with respect to that fiscal year is allocated.

   Inserted: (d)(1)(A) The Governor of a State seeking to receive funds under this section shall prepare, and submit to the Secretary, a secure energy reinvestment plan describing planned expenditures of funds received under this section.

   Inserted: (B) The Governor shall include in the State plan any plan prepared by a coastal political subdivision of the State.

   Inserted: (C) In the development of the State plan, the Governor and the coastal political subdivision shall--

   Inserted: (i) solicit local input;

   Inserted: (ii) provide for public participation; and

   Inserted: (iii) in describing the planned expenditures, include only uses of funds described in subsection (e).

   Inserted: (2)(A)(i) The Secretary shall not disburse funds to a State or coastal political subdivision under this section before the date on which the plan of the State is approved under this subsection.

   Inserted: (ii) The Secretary shall approve a plan submitted by a State under paragraph (1) if the Secretary determines that--

   Inserted: (I) each expenditures provided for in the plan is an authorized use under subsection (e); and

   Inserted: (II) the plan contains--

   Inserted: (aa) the name of the State agency that will have the authority to represent and act for the State in dealing with the Secretary for purposes of this section;

   Inserted: (bb) goals including improving the environment and addressing the impacts of oil and gas production from the outer Continental Shelf;

   Inserted: (cc) a description of how the State and coastal political subdivisions of the State will evaluate the effectiveness of the plan;

   Inserted: (dd) a certification by the Governor that ample opportunity has been accorded for public participation in the development and revision of the plan;

   Inserted: (ee) measures for taking into account other relevant Federal resources and programs;

   Inserted: (ff) assurance that the plan is correlated as much as practicable with other State, regional, and local plans;

   Inserted: (gg) for any State for which the ratio determined under clause (i) or (ii) of subsection (c)(2)(A), expressed as a percentage, exceeds 25 percent, a plan to spend not less than 30 percent of the total funds provided to that State and appropriate coastal political subdivisions under this section during any fiscal year to address the socioeconomic or environmental impacts identified in the plan that remain significant or progressive after implementation of mitigation measures identified in the most current environmental impact statement as of the date of enactment of this section required under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) for lease sales under his Act; and

   Inserted: (hh) a plan to use at least \1/2\ of the funds provided pursuant to subsection (c)(2)(B), and a portion of other funds provided to a State under this section, on programs or projects that are coordinated and conducted by a partnership between the State and a coastal political subdivision.

   Inserted: (B) Not later than 90 days after a plan of a State is submitted under this subsection, the Secretary shall approve or disapprove the Plan.

   Inserted: (3) Any amendment to or revision of a plan approved under this section shall be--

   Inserted: (A) prepared and submitted in accordance with the requirements of this paragraph; and

   Inserted: (B) approved or disapproved by the Secretary in accordance with paragraph (2)(B).

   Inserted: (e) A coastal energy State, and a coastal political subdivision, shall use any amount paid under this section (including any amounts deposited into a trust fund administered by the State or coastal political subdivision consistent with this subsection), consistent with Federal and State law and the approved plan of the State--

   Inserted: (1) to carry out a project or activity for the conservation, protection, or restoration of coastal areas including wetlands;

   Inserted: (2) to mitigate damage to, or protect, fish, wildlife, or natural resources;

   Inserted: (3) to implement a federally approved plan or program for--

   Inserted: (A) marine, coastal, subsidence, or conservation management; or

   Inserted: (B) protection of resources from natural disasters; and

   Inserted: (4) to mitigate the effect of an outer Continental Shelf activity by addressing impacts identified in an environmental impact statement as of the date of enactment of this section required under the National Environmental Policy Act of 1969 (42 V.S.C. 432 et seq.) for lease sales under this Act.

   Inserted: (f) If the Secretary determines that an expenditure made by a coastal energy State or coastal political subdivision is not in accordance with the approved plan of the State (including any plan of a coastal political subdivisionl included in the plan of the State), the Secretary shall not disburse any additional amount under this section to that coastal energy State or coastal political subdivision until--

   Inserted: (1) the amount of the expenditure is repaid to the Secretary; or

   Inserted: (2) the Secretary approves an amendment to the plan that authorizes the expenditure.

   Inserted: (g) The Secretary may require, as a condition of any payment under this section, that a State or coastal political subdivision shall submit to arbitration--

   Inserted: (1) any dispute between the State or coastal political subdivision and the Secretary regarding implementation of this section and

   Inserted: (2) any dispute between the State and political subdivision regarding implementation of this section, including any failure to include in the plan submitted by the State under subsection (d) any spending plan of the coastal political subdivision.

   Inserted: (h) The Secretary may use not more than \1/2\ of 1 percent of the amount in the Fund during a fiscal year to pay the administrative costs of implementing this section.

   Inserted: (i) A coastal energy State or coastal political subdivision may use funds provided to that State or coastal political subdivision under this section for any payment that is eligible to be made with funds provided to States under section 35 of the Mineral Leasing Act (30 U.S.C. 191) to carry out approved plan activities under subsection (e).

   Inserted: (j)(1) The Governor of a coastal energy State, in coordination with the coastal political subdivisions of that State, shall account for all funds received under this section during the previous fiscal year in a written report to the Secretary.

   Inserted: (2) The report shall include, in accordance with regulations prescribed by the Secretary, a description of all projects and activities that received funds under this section.

   Inserted: (3) The report may incorporate by reference any other report required to be submitted under another provision of law.

   Inserted: (k) The Secretary shall require, as a condition of any allocation of funds provided under this section, that a State or coastal political subdivision shall include on any sign installed at a site at or near an entrance or public use area for which funds provided under this section are used a statement that the existence or development of the site is a product of those funds.

   Original wording

   SECTION 1. DOMESTIC OFFSHORE ENERGY REINVESTMENT. (a) In General.--The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) is amended by adding at the end the following:

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As printed