[House Report 115-1029]
[From the U.S. Government Publishing Office]
115th Congress } { REPORT
HOUSE OF REPRESENTATIVES
2d Session } { 115-1029
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OFFSHORE WIND FOR TERRITORIES ACT
_______
November 16, 2018.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Bishop of Utah, from the Committee on Natural Resources,
submitted the following
R E P O R T
[To accompany H.R. 6665]
[Including cost estimate of the Congressional Budget Office]
The Committee on Natural Resources, to whom was referred
the bill (H.R. 6665) to amend the Outer Continental Shelf Lands
Act to apply to territories of the United States, to establish
offshore wind lease sale requirements, to provide dedicated
funding for coral reef conservation, and for other purposes,
having considered the same, report favorably thereon without
amendment and recommend that the bill do pass.
Purpose of the Bill
The purpose of H.R. 6665 is to amend the Outer Continental
Shelf Lands Act to apply to territories of the United States,
to establish offshore wind lease sale requirements, and to
provide dedicated funding for coral reef conservation.
Background and Need for Legislation
Wind energy development on the U.S. Outer Continental Shelf
(OCS) is a relatively new phenomenon, with a regulatory and
statutory structure only being contemplated in the past two
decades. The OCS are the submerged lands, subsoil and seabed
that stretch from the low water mark of the shore to at least
200 miles seaward and in some cases beyond.\1\ Under the
federal Outer Continental Shelf Lands Act (OCSLA, 43 U.S.C.
1331 et seq.), the federal government regulates the OCS outside
of State jurisdiction, which is most cases is 3 nautical miles
from shore.\2\
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\1\https://www.boem.gov/Outer-Continental-Shelf/; https://
nauticalcharts.noaa.gov/data/us-maritime-limits-and-boundaries.html.
\2\Id. Texas and the Gulf of Mexico coast of Florida have
jurisdiction that extends 9 nautical miles seaward.
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Although frameworks had long been established for onshore
federal mineral leasing, and for oil and natural gas activities
on the OCS, it was not until 2005 that Congress clarified the
process for OCS renewable energy with the passage of the Energy
Policy Act of 2005 (EPAct05, Public Law 109-58). Prior to
EPAct05, the Army Corps of Engineers (Corps) generally led the
offshore wind leasing process, as the projects were considered
obstructions in ``navigable waters of the United States.''\3\
EPAct05 clarified this uncertainty by amending the OCSLA to
provide the Secretary of the Interior the authority to lease
offshore lands for the purposes of renewable energy
development. Furthermore, EPAct05 preserved and clarified the
responsibilities of other federal agencies, such as the Corps,
who operate on the OCS.
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\3\U.S.C. 403.
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While several coastal States have seen the benefits
envisioned under the OCSLA,\4\ these benefits have not spread
to the territories. Currently, OCSLA does not apply to the
territories and possessions of the United States.\5\ Therefore,
the Department of the Interior (DOI) cannot lease or otherwise
manage the federal OCS acreage offshore these islands for the
purposes of development.
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\4\See Public Law 109-432.
\5\These include American Samoa, Guam, Northern Mariana Islands,
Puerto Rico, and the U.S. Virgin Islands.
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The inapplicability of OCSLA to the U.S. territories, as
well as their distance from the mainland, have hindered the
territories' abilities to tap into the mainland's large-scale
electricity grids. Many are reliant on imported petroleum
products. For instance, Guam's per capita petroleum consumption
is nearly twice that in the continental U.S.\6\ Moreover, the
devastating hurricanes experienced by Puerto Rico again
reiterated the need for modernization and diversification of
fuel sources. These islands are in dire need of energy
solutions.
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\6\See U.S. Energy Information Administration-Guam, September 21,
2017, available at https://www.eia.gov/state/analysis.php?sid=GQ.
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Several of the territories are attempting to address the
energy crisis they currently face. In 2008, Guam enacted a
renewable portfolio goal of sourcing 8% of its power from
renewable generation by 2020.\7\ Since that time, several major
solar initiatives have taken off. Additionally, Guam has
considerable offshore wind potential, and so long as the
turbines are engineered to withstand typhoon conditions and
earthquakes, offshore wind could prove a reliable energy
resource. However, the long-term economic feasibility of a
commercial offshore wind project is still unknown.
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\7\See Guam Bill 166, March 2008.
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A predominant concern about offshore wind energy leasing is
that development may directly conflict with existing uses and
activities. Throughout the pre-leasing and leasing process for
offshore areas of the mainland U.S., DOI attempts to engage
with a variety of coastal and ocean users, including local
tourism boards, coastal mayors, fisheries, and shippers.\8\
Yet, despite this outreach, many offshore stakeholders maintain
that additional activities will impair or displace existing
offshore interests.
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\8\See Bureau of Ocean Energy Management, Regulatory Roadmap,
available at (https://www.boem.gov/Regulatory-Roadmap/)
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Fishermen are among the most concerned, as their livelihood
directly depends on their ability to access large swaths of the
sea. Importantly, the Department of Defense (DOD) is a major,
active user of the OCS--particularly in the Pacific Theater--
and conducts training and testing missions in nearly all OCS
regions. Guam, for instance, is home to several major military
installations, and is a critical hub for operations in the
Pacific.\9\ Tourism may also be impacted by offshore wind
turbines dotting the horizon. In most territories, tourism is a
major economic driver. The presence of visible offshore wind
installations might be considered a threat to the local tourism
industry.\10\
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\9\See Military INSTALLATIONS, Joint Region Marianas_Naval Base
Guam, Guam, available at http://www.militaryinstallations.dod.mil/MOS/
f?p=132:CONTENT:0::NO::P4_INST_ID%2CP4_
INST_TYPE:3025%2CINSTALLATION.
\10\See Michelle Froese, Study shows offshore wind would have no
impact on Maryland tourism, Oct. 11, 2017, available at https://
www.windpowerengineering.com/business-news-projects/study-shows-
offshore-wind-no-impact-maryland-tourism/ (``. . . some observers have
expressed concern that the wind farms could impact tourism'').
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Like the offshore areas of the mainland U.S., minimizing
and mitigating potential conflicts with other ocean users,
including local and regional stakeholders and the DOD, is
essential to the successful development and progression of the
wind industry off the territories.
H.R. 6665 applies the OCSLA to the submerged lands off
American territories and possessions, providing DOI with
management authority for such offshore acreage. The bill also
creates a revenue sharing structure, providing 37.5% of the
revenues generated to the adjacent territory. In addition,
12.5% of the revenues generated are deposited into the National
Oceanic and Atmospheric Administration's Coral Reef
Conservation Program Fund.
Section-by-Section Analysis of H.R. 6665
Section 2. Application of Outer Continental Shelf Lands Act with
respect to the territories of the United States
Amends the application of the Outer
Continental Shelf Lands Act (OCLSA) to include the
territories and possessions of the United States
Excludes the territories and possessions
from inclusion in a National OCS Oil and Gas Leasing
Program
Section 3. Disposition of revenues with respect to territories of the
United States
Establishes a revenue sharing program for
revenues generated by leasing and development offshore
a territory
Territories will receive 37.5% of qualifying
revenues, consistent with the revenue sharing structure
for the Gulf Coast States, as established in the Gulf
of Mexico Energy Security Act (Public Law 109-432)
12.5% of revenues will be deposited into the
Coral Reef Conservation Fund
50% of revenues generated will be deposited
into U.S. Treasury
Section 4. Wind lease sales for areas of outer continental shelf
Directs DOI to conduct feasibility studies
on offshore wind lease sales offshore all territories
Should a study determine that a wind lease
is feasible, DOI is directed to conduct a lease sale
Section 5. Establishment of Coral Reef Conservation Fund
Establishes the Coral Reef Conservation Fund
for the purpose of maintaining the health of coral
reefs on the U.S. OCS
Fund is subject to appropriation
Renames existing Coral Reef Conservation
Fund established under the Coral Reef Conservation Act
of 2000 (16 U.S.C. 6404) as the ``Coral Reef Public-
Private Partnership''
Committee Action
H.R. 6665 was introduced on August 10, 2018, by
Congresswoman Madeleine Z. Bordallo (D-GU). The bill was
referred to the Committee on Natural Resources. On September 5,
2018, the Natural Resources Committee met to consider the bill.
No amendments were offered, and the bill was ordered favorably
reported to the House of Representatives by unanimous consent.
Committee Oversight Findings and Recommendations
Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the House of Representatives, the
Committee on Natural Resources' oversight findings and
recommendations are reflected in the body of this report.
Compliance With House Rule XIII and Congressional Budget Act
1. Cost of Legislation and the Congressional Budget Act.
With respect to the requirements of clause 3(c)(2) and (3) of
rule XIII of the Rules of the House of Representatives and
sections 308(a) and 402 of the Congressional Budget Act of
1974, the Committee has received the following estimate for the
bill from the Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, November 14, 2018.
Hon. Rob Bishop,
Chairman, Committee on Natural Resources,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 6665, the Offshore
Wind for Territories Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Kathleen
Gramp.
Sincerely,
Keith Hall,
Director.
Enclosure.
H.R. 6665--Offshore Wind for Territories Act
Summary: H.R. 6665 would authorize the Department of the
Interior (DOI) to auction leases for developing energy and
mineral resources off the coast of certain U.S. territories and
possessions, subject to certain conditions. In particular, the
bill would direct DOI to study the potential for developing
offshore wind resources within the territorial jurisdiction of
American Samoa, Guam, the Northern Mariana Islands, Puerto
Rico, and the U.S. Virgin Islands, and to offer leases in areas
where such development is feasible. Under the bill, 37.5
percent of the income from such leases could be spent without
further appropriation for payments to the affected
jurisdictions.
CBO estimates that implementing H.R. 6665 would reduce net
direct spending by $14 million over the 2019-2028 period,
primarily as a result of new leasing activity for offshore wind
resources. In addition, CBO estimates that it would cost $3
million over the 2019-2023 period to complete the studies and
planning activities required by the bill; any spending would be
subject to the availability of appropriated funds.
Because enacting H.R. 6665 would affect direct spending;
therefore, pay-as-you-go procedures apply. The bill would not
affect revenues.
CBO estimates that enacting H.R. 6665 would not increase
net direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2029.
H.R. 6665 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would benefit U.S. territories through the sharing of
royalties generated from offshore wind leases.
Estimated cost to the Federal Government: The estimated
budgetary effect of H.R. 6665 is shown in the following table.
The costs of the legislation fall within budget functions 300
(natural resources and the environment) and 950 (undistributed
offsetting receipts).
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By fiscal year, in millions of dollars----
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2020 2021 2022 2023 2024 2025 2026 2027 2028 2019-2028 2019-2023
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DECREASES IN DIRECT SPENDING
Estimated Budget Authority................................. 0 0 0 0 0 -4 -3 -3 -3 -3 0 -14
Estimated Outlays.......................................... 0 0 0 0 0 -4 -3 -3 -3 -3 0 -14
INCREASES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level.............................. 0 1 1 1 1 1 1 1 1 1 3 9
Estimated Outlays.......................................... 0 1 1 1 1 1 1 1 1 1 3 9
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Components may not sum to totals because of rounding.
Basis of estimate: For this estimate, CBO assumes that H.R.
6665 will be enacted by the end of 2018. Estimated spending is
based on historical patterns.
Direct spending
Based on the prices paid for leases of offshore wind
resources in the Atlantic and the characteristics of the
electricity markets in the Caribbean and the South Pacific, CBO
estimates that implementing H.R. 6665 would increase net
offsetting receipts (which are recorded as reductions in direct
spending) by $14 million over the 2019-2028 period. That
estimate reflects estimated gross proceeds of $20 million and
direct spending of $6 million for payments to the affected
jurisdictions.
Since 2013, DOI has conducted seven auctions of leases for
offshore wind resources along the Atlantic coast, generating
offsetting receipts of almost $70 million. Taken together, the
12 existing leases cover nearly 1.4 million acres, with
individual leases ranging in size from less than 70,000 acres
to almost 190,000 acres each.\1\ The prices paid for individual
leases also have varied widely, ranging from less than $1
million to $42 million each, which is equivalent to less than
$1 per acre to more than $500 per acre.
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\1\According to the Energy Information Administration, the two
largest markets, Puerto Rico and Guam, used 20 billion and 2 billion
kilowatt-hours (kWh) in 2015, respectively. By comparison, the annual
resource potential for individual leases in the Atlantic ranges from
about 3 billion kWh to almost 9 billion kWh each, depending on the
acreage of the lease. The estimated kilowatt-hour potential assumes an
average of 3 megawatts of capacity per square kilometer and an average
capacity factor of 45 percent. See Walt Musial, Principal Engineer and
Manager of Offshore Wind, National Renewable Energy Laboratory,
``Offshore Wind Energy Facility Characteristics,'' (presentation at
BOEM's Offshore Wind and Maritime Industry Knowledge Exchange Workshop,
March 5, 2018), https://go.usa.gov/xPfng (PDF, 2.1 MB). For data on
electricity production for each jurisdiction, see Energy Information
Administration, ``U.S. States, State Profiles and Estimates: U.S.
Overview'' (accessed November 13, 2018), www.eia.gov/state/?sid=US. For
more information on wind resources in the jurisdictions, see Frank
Oteri and others, 2017 State of Wind Development in the United States
by Region, National Renewable Energy Laboratory, NREL/TP-5000-70738
(April 2018), www.nrel.gov/docs/fy18osti/70738.pdf (6.3 MB).
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Several factors suggest that receipts from auctions in the
Caribbean and South Pacific regions may be considerably lower,
at least for the next few years. For example, technological
advances are needed to deploy systems that can withstand
category 5 hurricane strength winds. Similarly, current
technologies for producing electricity from offshore wind may
not be economically viable for the comparatively small markets
in these regions.\2\ On the other hand, the cost of
conventional fuels in those regions is much higher than on the
U.S. mainland, which may increase the relative value of
offshore wind to utilities or large customers like the
Department of Defense.
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\2\See, for example, World Bank, Precautionary Management of Deep
Sea Mining Potential in Pacific Island Countries (draft for discussion,
accessed November 13, 2018). http://tinyurl.com/y9a81q18 (PDF, 3.4 MB).
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CBO expects that any such auctions would occur toward the
end of the 10-year period because of the time needed to resolve
such technical and economic issues. CBO estimates that few
leases would be issued by 2028 because of the small size of the
electricity markets in the Caribbean and South Pacific regions,
but that the value of those leases would be similar to those
paid for leases in the Atlantic because of the high cost of
other fuel supplies. Thus, CBO estimates that gross proceeds
would range from less than $1 million to over $40 million, with
a midpoint of $20 million. For this estimate, CBO assumes that
payments to the affected jurisdictions would be made the year
after proceeds are collected and would total $6 million over
the 2019-2028 period.
Finally, H.R. 6665 would authorize DOI to issue licenses to
companies to explore and develop mineral resources other than
oil and gas in areas within the exclusive economic zone (EEZ)
on the OCS adjacent to any territory or possession of the
United States. Based on the available information regarding
deep-sea mining opportunities in the SouthPacific, CBO
estimates that any proceeds from issuing licenses for such mining would
be negligible over the 2019-2028 period. According to the World Bank
and others, the FEZs off the coast of American Samoa and other
territories are relatively small and no large nodules of precious
metals or minerals have been discovered.
Spending subject to appropriation
Based on historical trends in spending for similar
activities, CBO estimates that completing the studies and
activities related to leasing off the coast of U.S. territories
would cost about $3 million over the 2019-2023 period. Most of
that spending would be for the technical and environmental
assessments of offshore wind and mineral development off the
coasts of U.S. territories in the Caribbean and South Pacific.
CBO also estimates that conducting lease sales in those areas
would cost about $3 million, but expects that such spending
would occur after 2023.
Finally, the bill would authorize DOE to deposit 12.5
percent of the proceeds in the Coastal Reef Conservation Fund;
any spending of those amounts would be subject to
appropriation. CBO estimates that spending from the Coastal
Reef Conservation Fund would occur after 2023 and total about
$2 million over the 2024-2028 period.
Uncertainty: CBO aims to produce cost estimates that
generally reflect the middle of a range of the most likely
budgetary outcomes that would result if the legislation was
enacted. The estimated reductions in direct spending resulting
from the implementation of H.R. 6665 could be higher or lower
for several reasons:
CBO cannot predict the technical or economic
feasibility of offshore wind systems in the Caribbean
and South Pacific regions over the next 10 years.
Proceeds from leasing could be higher if electricity
from offshore wind systems becomes less expensive than
alternative supplies but could be lower if current
technological and market constraints continue; and
CBO cannot predict the amount that companies
would be willing to pay for leases of offshore wind
resources. The prices paid for lease off the Atlantic
coast have varied widely, reflecting differences in the
strategic interests of bidders as well as technical and
market conditions.
Pay-As-You-Go Considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays that are subject to those
pay-as-you-go procedures are shown in the following table.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 6665 AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON NATURAL RESOURCES ON SEPTEMBER 5, 2018
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By fiscal year, in millions of dollars--
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2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2019-2023 2019-2028
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NET DECREASE IN THE DEFICIT
Statutory Pay-As-You-Go Impact.............................. 0 0 0 0 0 -4 -3 -3 -3 -3 0 -14
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Increase in long-term direct spending and deficits: CBO
estimates that enacting H.R. 6665 would not increase net direct
spending or on-budget deficits in any of the four consecutive
10-year periods beginning in 2029.
Mandates: H.R. 6665 contains no intergovernmental or
private-sector mandates as defined in UMRA and would benefit
U.S. territories through the sharing of royalties generated
from offshore wind leases.
Previous CBO estimate: On December 1, 2017, CBO transmitted
a cost estimate for H.R. 4239, the SECURE American Energy Act,
as ordered reported by the House Committee on Natural Resources
on November 8, 2017. Sections 108 and 109 of H.R. 4239 would
authorize the leasing of wind resources in similar areas, and
the estimates of gross proceeds are similar. However, H.R. 6665
would authorize a larger portion of those proceeds to be spent
without further appropriation. Thus, the estimated net decrease
in direct spending is smaller than estimated for the similar
provisions in H.R. 4239. Differences in the estimated
discretionary cost primarily reflect differences between the
two bills.
Estimate prepared by: Federal costs: Kathleen Gramp;
Mandates: Jon Sperl.
Estimate reviewed by: Kim P. Cawley, Chief, Natural and
Physical Resources Cost Estimates Unit; H. Samuel Papenfuss,
Deputy Assistant Director for Budget Analysis.
2. General Performance Goals and Objectives. As required by
clause 3(c)(4) of rule XIII, the general performance goal or
objective of this bill is to amend the Outer Continental Shelf
Lands Act to apply to territories of the United States, to
establish offshore wind lease sale requirements, and to provide
dedicated funding for coral reef conservation.
Earmark Statement
This bill does not contain any Congressional earmarks,
limited tax benefits, or limited tariff benefits as defined
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of
the House of Representatives.
Compliance With Public Law 104-4
This bill contains no unfunded mandates.
Compliance With H. Res. 5
Directed Rule Making. This bill does not contain any
directed rule makings.
Duplication of Existing Programs. This bill does not
establish or reauthorize a program of the federal government
known to be duplicative of another program. Such program was
not included in any report from the Government Accountability
Office to Congress pursuant to section 21 of Public Law 111-139
or identified in the most recent Catalog of Federal Domestic
Assistance published pursuant to the Federal Program
Information Act (Public Law 95-220, as amended by Public Law
98-169) as relating to other programs.
Preemption of State, Local or Tribal Law
This bill is not intended to preempt any State, local or
tribal law.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
OUTER CONTINENTAL SHELF LANDS ACT
* * * * * * *
Sec. 2. Definitions.--When used in this Act--
(a) The term ``outer Continental Shelf'' means all submerged
lands lying seaward and outside of the area of lands beneath
navigable waters as defined in section 2 of the Submerged Lands
Act (Public Law 31, Eighty-third Congress, first session), and
of which the subsoil and seabed appertain to the United States
and are subject to its jurisdiction and control or lying within
the exclusive economic zone of the United States and the outer
Continental Shelf adjacent to any territory or possession of
the United States, except that such term shall not include any
area conveyed by Congress to a territorial government for
administration;
(b) The term ``Secretary'' means the Secretary of the
Interior, except that with respect to functions under this Act
transferred to, or vested in, the Secretary of Energy or the
Federal Energy Regulatory Commission by or pursuant to the
Department of Energy Organization Act (42 U.S.C. 7101 et seq.),
the term ``Secretary'' means the Secretary of Energy, or the
Federal Energy Regulatory Commission, as the case may be;
(c) The term ``lease'' means any form of authorization which
is issued under section 8 or maintained under section 6 of this
Act and which authorizes exploration for, and development and
production of, minerals;
(d) The term ``person'' includes, in addition to a natural
person, an association, a State, a political subdivision of a
State, or a private, public, or municipal corporation;
(e) The term ``coastal zone'' means the coastal waters
(including the lands therein and thereunder) and the adjacent
shorelands (including the waters therein and thereunder),
strongly influenced by each other and in proximity to the
shorelines of the several coastal States, and includes islands,
transition and intertidal areas, salt marshes, wetlands, and
beaches, which zone extends seaward to the outer limit of the
United States territorial sea and extends inland from the
shorelines to the extent necessary to control shorelands, the
uses of which have a direct and significant impact on the
coastal waters, and the inward boundaries of which may be
identified by the several coastal States, pursuant to the
authority of section 305(b)(1) of the Coastal Zone Management
Act of 1972 (16 U.S.C. 1454(b)(1));
(f) The term ``affected State'' means, with respect to any
program, plan, lease sale, or other activity, proposed,
conducted, or approved pursuant to the provisions of this Act,
any State--
(1) the laws of which are declared, pursuant to
section 4(a)(2) of this Act, to be the law of the
United States for the portion of the outer Continental
Shelf on which such activity is, or is proposed to be,
conducted;
(2) which is, or is proposed to be, directly
connected by transportation facilities to any
artificial island or structure referred to in section
4(a)(1) of this Act;
(3) which is receiving, or in accordance with the
proposed activity will receive, oil for processing,
refining, or transshipment which was extracted from the
outer Continental Shelf and transported directly to
such State by means of vessels or by a combination of
means including vessels;
(4) which is designated by the Secretary as a State
in which there is a substantial probability of
significant impact on or damage to the coastal, marine,
or human environment, or a State in which there will be
significant changes in the social, governmental, or
economic infrastructure, resulting from the
exploration, development, and production of oil and gas
anywhere on the Outer Continental Shelf; or
(5) in which the Secretary finds that because of such
activity there is, or will be, a significant risk of
serious damage, due to factors such as prevailing winds
and currents, to the marine or coastal environment in
the event of any oilspill, blowout, or release of oil
or gas from vessels, pipelines, or other transshipment
facilities;
(g) The term ``marine environment'' means the physical,
atmospheric, and biological components, conditions, and factors
which interactively determine the productivity, state,
condition, and quality of the marine ecosystem, including the
waters of the high seas, the contiguous zone, transitional and
intertidal areas, salt marshes, and wetlands within the coastal
zone and on the outer Continental Shelf;
(h) The term ``coastal environment'' means the physical
atmospheric, and biological components, conditions, and factors
which interactively determine the productivity, state,
condition, and quality of the terrestrial ecosystem from the
shoreline inward to the boundaries of the coastal zone;
(i) The term ``human environment'' means the physical,
social, and economic components, conditions, and factors which
interactively determine the state, condition, and quality of
living conditions, employment, and health of those affected,
directly or indirectly, by activities occurring on the outer
Continental Shelf;
(j) The term ``Governor'' means the Governor of a State, or
the person or entity designated by, or pursuant to, State law
to exercise the powers granted to such Governor pursuant to
this Act;
(k) The term ``exploration'' means the process of searching
for minerals, including (1) geophysical surveys where magnetic,
gravity, seismic, or other systems are used to detect or imply
the presence of such minerals, and (2) any drilling, whether on
or off known geological structures, including the drilling of a
well in which a discovery of oil or natural gas in paying
quantities is made and the drilling of any additional
delineation well after such discovery which is needed to
delineate any reservoir and to enable the lessee to determine
whether to proceed with development and production;
(l) The term ``development'' means those activities which
take place following discovery of minerals in paying
quantities, including geophysical activity, drilling, platform
construction, and operation of all onshore support facilities,
and which are for the purpose of ultimately producing the
minerals discovered;
(m) The term ``production'' means those activities which take
place after the successful completion of any means for the
removal of minerals, including such removal, field operations,
transfer of minerals to shore, operation monitoring,
maintenance, and work-over drilling;
(n) The term ``antitrust law'' means--
(1) the Sherman Act (15 U.S.C. 1 et seq.);
(2) the Clayton Act (15 U.S.C. 12 et seq.);
(3) the Federal Trade Commission Act (15 U.S.C. 41 et
seq.);
(4) the Wilson Tariff Act (15 U.S.C. 8 et seq.); or
(5) the Act of June 19, 1936, chapter 592 (15 U.S.C.
13, 13a, 13b, and 21a);
(o) The term ``fair market value'' means the value of any
mineral (1) computed at a unit price equivalent to the average
unit price at which such mineral was sold pursuant to a lease
during the period for which any royalty or net profit share is
accrued or reserved to the United States pursuant to such
lease, or (2) if there were no such sales, or if the Secretary
finds that there were an insufficient number of such sales to
equitably determine such value, computed at the average unit
price at which such mineral was sold pursuant to other leases
in the same region of the outer Continental Shelf during such
period, or (3) if there were no sales of such mineral from such
region during such period, or if the Secretary finds that there
are an insufficient number of such sales to equitably determine
such value, at an appropriate price determined by the
Secretary;
(p) The term ``major Federal action'' means any action or
proposal by the Secretary which is subject to the provisions of
section 102(2)(C) of the National Environmental Policy Act of
1969 (42 U.S.C. 4332(2)(C)); [and]
(q) The term ``minerals'' includes oil, gas, sulphur,
geopressured-geothermal and associated resources, and all other
minerals which are authorized by an Act of Congress to be
produced from ``public lands'' as defined in section 103 of the
Federal Land Policy and Management Act of 1976[.]; and
(r) The term ``State'' includes each territory of the United
States.
* * * * * * *
Sec. 9. Disposition of Revenues.--[All rentals] (a) In
General._Except as otherwise provided in law, all rentals,
royalties, and other sums paid to the Secretary or the
Secretary of the Navy under any lease on the outer Continental
Shelf for the period from June 5, 1950, to date, and thereafter
shall be deposited in the Treasury of the United States and
credited to miscellaneous receipts.
(b) Disposition of Revenues to Territories of the United
States.--Of the rentals, royalties, and other sums paid to the
Secretary under this Act from a lease for an area of land on
the outer Continental Shelf adjacent to a territory and lying
within the exclusive economic zone of the United States
pertaining to such territory, and not otherwise obligated or
appropriated--
(1) 50 percent shall be deposited in the Treasury and
credited to miscellaneous receipts;
(2) 12.5 percent shall be deposited in the Coral Reef
Conservation Fund established under section 211 of the
Coral Reef Conservation Act of 2000; and
(3) 37.5 percent shall be disbursed to territories of
the United States in an amount for each territory
(based on a formula established by the Secretary by
regulation) that is inversely proportional to the
respective distance between the point on the coastline
of the territory that is closest to the geographic
center of the applicable leased tract and the
geographic center of the leased tract.
* * * * * * *
Sec. 18. Outer Continental Shelf Leasing Program.--(a) The
Secretary, pursuant to procedures set forth in subsections (c)
and (d) of this section, shall prepare and periodically revise,
and maintain an oil and gas leasing program to implement the
policies of this Act. The leasing program shall consist of a
schedule of proposed lease sales indicating, as precisely as
possible, the size, timing, and location of leasing activity
which he determines will best meet national energy needs for
the five-year period following its approval or reapproval. Such
leasing program shall be prepared and maintained in a manner
consistent with the following principles:
(1) Management of the outer Continental Shelf shall
be conducted in a manner which considers economic,
social, and environmental values of the renewable and
nonrenewable resources contained in the outer
Continental Shelf, and the potential impact of oil and
gas exploration on other resource values of the outer
Continental Shelf and the marine, coastal, and human
environments.
(2) Timing and location of exploration, development,
and production of oil and gas among the oil- and gas-
bearing physiographic regions of the outer Continental
Shelf shall be based on a consideration of--
(A) existing information concerning the
geographical, geological, and ecological
characteristics of such regions;
(B) an equitable sharing of developmental
benefits and environmental risks among the
various regions;
(C) the location of such regions with respect
to, and the relative needs of, regional and
national energy markets;
(D) the location of such regions with respect
to other uses of the sea and seabed, including
fisheries, navigation, existing or proposed
sealanes, potential sites of deepwater ports,
and other anticipated uses of the resources and
space of the outer Continental Shelf;
(E) the interest of potential oil and gas
producers in the development of oil and gas
resources as indicated by exploration or
nomination;
(F) laws, goals, and policies of affected
States which have been specifically identified
by the Governors of such States as relevant
matters for the Secretary's consideration;
(G) the relative environmental sensitivity
and marine productivity of different areas of
the outer Continental Shelf; and
(H) relevant environmental and predictive
information for different areas of the outer
Continental Shelf.
(3) The Secretary shall select the timing and
location of leasing, to the maximum extent practicable,
so as to obtain a proper balance between the potential
for environmental damage, the potential for the
discovery of oil and gas, and the potential for adverse
impact on the coastal zone.
(4) Leasing activities shall be conducted to assure
receipt of fair market value for the lands leased and
the rights conveyed by the Federal Government.
(b) The leasing program shall include estimates of the
appropriations and staff required to--
(1) obtain resource information and any other
information needed to prepare the leasing program
required by this section;
(2) analyze and interpret the exploratory data and
any other information which may be compiled under the
authority of this Act;
(3) conduct environmental studies and prepare any
environmental impact statement required in accordance
with this Act and with section 102(2)(C) of the
National Environmental Policy Act of 1969 (42 U.S.C.
4332(2)(C)); and
(4) supervise operations conducted pursuant to each
lease in the manner necessary to assure due diligence
in the exploration and development of the lease area
and compliance with the requirement of applicable laws
and regulations, and with the terms of the lease.
(c)(1) During the preparation of any proposed leasing program
under this section, the Secretary shall invite and consider
suggestions for such program from any interested Federal
agency, including the Attorney General, in consultation with
the Federal Trade Commission, and from the Governor of any
State which may become an affected State under such proposed
program. The Secretary may also invite or consider any
suggestions from the executive of any affected local government
in such an affected State, which have been previously submitted
to the Governor of such State, and from any other person.
(2) After such preparation and at least sixty days prior to
publication of a proposed leasing program in the Federal
Register pursuant to paragraph (3) of this subsection, the
Secretary shall submit a copy of such 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 his State which he, in his discretion,
determines will be affected by the proposed program. If any
comment by such Governor is received by the Secretary at least
fifteen days prior to submission to the Congress pursuant to
such 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 his reasons therefor. All
such correspondence between the Secretary and 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.
(3) Within nine months after the date of enactment of this
section, the Secretary shall submit a proposed leasing program
to the Congress, the Attorney General, and the Governors of
affected States, and shall publish such proposed program in the
Federal Register. Each Governor shall, upon request, submit a
copy of the proposed leasing program to the executive of any
local government affected by the proposed program.
(d)(1) Within ninety days after the date of publication of a
proposed leasing program, the Attorney General may, after
consultation with the Federal Trade Commission, submit comments
on the anticipated effects of such proposed program upon
competition. Any State, local government, or other person may
submit comments and recommendations as to any aspect of such
proposed program.
(2) At least sixty days prior to approving a proposed leasing
program, the Secretary shall submit it to the President and the
Congress, together with any comments received. Such submission
shall indicate why any specific recommendation of the Attorney
General or a State or local government was not accepted.
(3) After the leasing program has been approved by the
Secretary, or after eighteen months following the date of
enactment of this section, whichever first occurs, no lease
shall be issued unless it is for an area included in the
approved leasing program and unless it contains provisions
consistent with the approved leasing program, except that
leasing shall be permitted to continue until such program is
approved and for so long thereafter as such program is under
judicial or administrative review pursuant to the provisions of
this Act.
(e) The Secretary shall review the leasing program approved
under this section at least once each year. He may revise and
reapprove such program, at any time, and such revision and
reapproval, except in the case of a revision which is not
significant, shall be in the same manner as originally
developed.
(f) The Secretary shall, by regulation, establish procedures
for--
(1) receipt and consideration of nominations for any
area to be offered for lease or to be excluded from
leasing;
(2) public notice of and participation in development
of the leasing program;
(3) review by State and local governments which may
be impacted by the proposed leasing;
(4) periodic consultation with State and local
governments, oil and gas lessees and permittees, and
representatives of other individuals or organizations
engaged in activity in or on the outer Continental
Shelf, including those involved in fish and shellfish
recovery, and recreational activities; and
(5) consideration of the coastal zone management
program being developed or administered by an affected
coastal State pursuant to section 305 or section 306 of
the Coastal Zone Management Act of 1972 (16 U.S.C.
1454, 1455).
Such procedures shall be applicable to any significant revision
or reapproval of the leasing program.
(g) The Secretary may obtain from public sources, or purchase
from private sources, any survey, data, report, or other
information (including interpretations of such data, survey,
report, or other information) which may be necessary to assist
him in preparing any environmental impact statement and in
making other evaluations required by this Act. Data of a
classified nature provided to the Secretary under the
provisions of this subsection shall remain confidential for
such period of time as agreed to by the head of the department
or agency from whom the information is requested. The Secretary
shall maintain the confidentiality of all privileged or
proprietary data or information for such period of time as is
provided for in this Act, established by regulation, or agreed
to by the parties.
(h) The heads of all Federal departments and agencies shall
provide the Secretary with any nonprivileged or nonproprietary
information he requests to assist him in preparing the leasing
program and may provide the Secretary with any privileged or
proprietary information he requests to assist him in preparing
the leasing program. Privileged or proprietary information
provided to the Secretary under the provisions of this
subsection shall remain confidential for such period of time as
agreed to by the head of the department or agency from whom the
information is requested. In addition, the Secretary shall
utilize the existing capabilities and resources of such Federal
departments and agencies by appropriate agreement.
(i) This section shall not apply to the scheduling of lease
sales in the outer Continental Shelf adjacent to the
territories and possessions of the United States.
* * * * * * *
SEC. 33. WIND LEASE SALES FOR AREAS OF OUTER CONTINENTAL SHELF.
(a) Authorization.--The Secretary may conduct wind lease
sales on the outer Continental Shelf.
(b) Wind Lease Sale Procedure.--Any wind lease sale conducted
under this section shall be considered a lease under section
8(p).
(c) Wind Lease Sales Off Coasts of Territories of the United
States.--
(1) Study on feasibility of conducting wind lease
sales.--
(A) In general.--The Secretary shall conduct
a study on the feasibility, including the
technological and long-term economic
feasibility, of conducting wind lease sales on
an area of the outer Continental Shelf within
the territorial jurisdiction of American Samoa,
Guam, the Northern Mariana Islands, Puerto
Rico, and the Virgin Islands of the United
States.
(B) Consultation.--In conducting the study
required in paragraph (A), the Secretary shall
consult--
(i) the National Renewable Energy
Laboratory of the Department of Energy;
and
(ii) the Governor of each of American
Samoa, Guam, the Northern Mariana
Islands, Puerto Rico, and the Virgin
Islands of the United States.
(C) Publication.--The study required in
paragraph (A) shall be published in the Federal
Register for public comment for not fewer than
60 days.
(D) Submission of results.--Not later than 18
months after the date of the enactment of this
section, the Secretary shall submit the results
of the study conducted under subparagraph (A)
to:
(i) the Committee on Energy and
Natural Resources of the Senate;
(ii) the Committee on Natural
Resources of the House of
Representatives; and
(iii) each of the delegates or
resident commissioner to the House of
Representatives from American Samoa,
Guam, the Northern Mariana Islands,
Puerto Rico, and the Virgin Islands of
the United States, respectively.
(E) Public availability.--The study required
under subparagraph (A) and results submitted
under subparagraph (C) shall be made readily
available on a public Government internet
website.
(2) Call for information and nominations.--The
Secretary shall issue a call for information and
nominations for proposed wind lease sales for areas
determined to be feasible under the study conducted
under paragraph (1).
(3) Conditional wind lease sales.--
(A) In general.--For each territory, the
Secretary shall conduct not less than 1 wind
lease sale on an area of the outer Continental
Shelf within the territorial jurisdiction of
such territory that meets each of the following
criteria:
(i) The study required under
paragraph (1)(A) concluded that a wind
lease sale on the area is feasible.
(ii) The Secretary has determined
that the call for information has
generated sufficient interest for the
area.
(iii) The Secretary has consulted
with the Secretary of Defense regarding
such a sale.
(iv) The Secretary has consulted with
the Governor of the territory regarding
the suitability of the area for wind
energy development.
(B) Exception.--If no area of the outer
Continental Shelf within the territorial
jurisdiction of a territory meets each of the
criteria in clauses (i) through (iii) of
subparagraph (A), the requirement under
subparagraph (A) shall not apply to such
territory.
----------
CORAL REEF CONSERVATION ACT OF 2000
* * * * * * *
TITLE II--CORAL REEF CONSERVATION
* * * * * * *
SEC. 205. [CORAL REEF CONSERVATION FUND] CORAL REEF PUBLIC-PRIVATE
PARTNERSHIP.
(a) Fund.--The Administrator may enter into an agreement with
a nonprofit organization that promotes coral reef conservation
authorizing such organization to receive, hold, and administer
funds received pursuant to this section. The organization shall
invest, reinvest, and otherwise administer the funds and
maintain such funds and any interest or revenues earned in a
separate interest bearing account, hereafter referred to as the
Fund, established by such organization solely to support
partnerships between the public and private sectors that
further the purposes of this Act and are consistent with the
national coral reef action strategy under section 203.
(b) Authorization To Solicit Donations.--Pursuant to an
agreement entered into under subsection (a) of this section, an
organization may accept, receive, solicit, hold, administer,
and use any gift to further the purposes of this title. Any
moneys received as a gift shall be deposited and maintained in
the [Fund] separate interest bearing account established by the
organization under subsection (a).
(c) Review of Performance.--The Administrator shall conduct a
continuing review of the grant program administered by an
organization under this section. Each review shall include a
written assessment concerning the extent to which that
organization has implemented the goals and requirements of this
section and the national coral reef action strategy under
section 203.
(d) Administration.--Under an agreement entered into pursuant
to subsection (a), the Administrator may transfer funds
appropriated to carry out this title to an organization.
Amounts received by an organization under this subsection may
be used for matching, in whole or in part, contributions
(whether in money, services, or property) made to the
organization by private persons and State and local government
agencies.
* * * * * * *
SEC. 211. CORAL REEF CONSERVATION FUND.
(a) Establishment.--There is established in the Treasury the
Coral Reef Conservation Fund, hereafter referred to as the
Fund.
(b) Deposits.--For each fiscal year, there shall be deposited
in the Fund the portion of such revenues due and payable to the
United States under subsection (b)(2) of section 9 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1338).
(c) Uses.--Amounts deposited in the Fund under this section
and appropriated to the Secretary of Commerce under subsection
(f) shall be used by the Secretary of Commerce to carry out the
Coral Reef Conservation Act of 2000 (16 U.S.C. 6401 et seq.),
with priority given to carrying out sections 204 and 206 of
such Act (16 U.S.C. 6403 and 6405).
(d) Availability.--Amounts deposited in the Fund shall remain
in the Fund until appropriated by Congress.
(e) Reporting.--The President shall include with the proposed
budget for the United States Government submitted to Congress
for a fiscal year a comprehensive statement of deposits into
the Fund during the previous fiscal year and estimated
requirements during the following fiscal year for
appropriations from the Fund.
(f) Authorization of Appropriations.--There are authorized to
be appropriated from the Fund to the Secretary of Commerce, an
amount equal to the amount deposited in the Fund in the
previous fiscal year.
(g) No Limitation.--Appropriations from the Fund pursuant to
this section may be made without fiscal year limitation.
[all]