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115th Congress }                                          { REPORT
                        HOUSE OF REPRESENTATIVES
  2d Session   }                                          { 115-1029

======================================================================
 
                   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\
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \3\U.S.C. 403.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \4\See Public Law 109-432.
    \5\These include American Samoa, Guam, Northern Mariana Islands, 
Puerto Rico, and the U.S. Virgin Islands.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \6\See U.S. Energy Information Administration-Guam, September 21, 
2017, available at https://www.eia.gov/state/analysis.php?sid=GQ.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \7\See Guam Bill 166, March 2008.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \8\See Bureau of Ocean Energy Management, Regulatory Roadmap, 
available at (https://www.boem.gov/Regulatory-Roadmap/)
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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'').
---------------------------------------------------------------------------
    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).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  By fiscal year, in millions of dollars----
                                                            -------------------------------------------------------------------------------------
                                                              2020   2021   2022   2023   2024   2025   2026   2027   2028  2019-2028  2019-2023
-------------------------------------------------------------------------------------------------------------------------------------------------
                                                              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
--------------------------------------------------------------------------------------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
    \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).
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \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).
---------------------------------------------------------------------------
    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
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                       By fiscal year, in millions of dollars--
                                                             -------------------------------------------------------------------------------------------
                                                               2019   2020   2021   2022   2023   2024   2025   2026   2027   2028  2019-2023  2019-2028
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               NET DECREASE IN THE DEFICIT
 
Statutory Pay-As-You-Go Impact..............................      0      0      0      0      0     -4     -3     -3     -3     -3         0        -14
--------------------------------------------------------------------------------------------------------------------------------------------------------

    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.

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