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116th Congress    }                                       {     Report
                        HOUSE OF REPRESENTATIVES
 1st Session      }                                       {    116-230

======================================================================



 
                   OFFSHORE WIND FOR TERRITORIES ACT

                                _______
                                

October 11, 2019.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Grijalva, from the Committee on Natural Resources, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 1014]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Natural Resources, to whom was referred 
the bill (H.R. 1014) 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. 1014 is 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.

                  Background and Need for Legislation

    America's offshore wind resources are a potential source of 
sustainable, carbon-free energy and hold significant potential 
to power coastal economies and create new jobs. While many 
states on both the East and West Coast are working alongside 
the Department of the Interior to jumpstart offshore wind 
development, current law prohibits the U.S. territories of 
Puerto Rico, Guam, American Samoa, the Commonwealth of the 
Northern Mariana Islands, and the Virgin Islands from doing the 
same. The Outer Continental Shelf Lands Act, which governs 
offshore wind leasing and development in federal waters, does 
not apply to the territories, thereby blocking those islands 
from potentially developing wind resources off their coasts.
    There is strong interest in the territories in developing 
renewable energy resources such as offshore wind. While the 
specific goals and timelines vary for each territory, expanding 
use of renewable energy could help them reduce dependence on 
imported fossil fuels, reduce electricity prices for families 
and businesses, and improve grid resiliency in the face of 
extreme weather events and climate change. Each territory has 
energy challenges that could at least be partially ameliorated 
by the deployment of offshore turbines. Guam currently relies 
on forty-year-old generation units burning heavy fuel oil to 
supply the majority of its electricity,\1\ while the 
Commonwealth of the Northern Mariana Islands imports more than 
20 million gallons of diesel fuel annually.\2\ The average 
consumer in the Virgin Islands pays electricity prices that are 
three times higher than prices for consumers in the fifty 
states,\3\ while two-fifths of the population on American Samoa 
doesn't have electricity at all.\4\ Puerto Rico experienced the 
largest blackout in U.S. history following Hurricanes Maria and 
Irma, and the lack of reliable electricity likely contributed 
to the significant loss of life.\5\ All five territories have 
set renewable energy targets to try to address some of these 
concerns, including American Samoa's goal of reaching 100% 
renewable energy by 2040 and Puerto Rico's goal of 100% by 
2050. Without offshore wind, it would be significantly more 
difficult to achieve these goals.
---------------------------------------------------------------------------
    \1\Nat'l Renewable Energy Lab., Energy Transition Initiative, 
Energy Snapshot Guam (2015), https://www.nrel.gov/docs/fy15osti/
64290.pdf.
    \2\U.S. Energy Info. Admin., Northern Mariana Islands Territory 
Profile & Energy Estimates (last updated Oct. 18, 2018), https://
www.eia.gov/state/?sid=CQ.
    \3\U.S. Energy Info. Admin., US Virgin Islands Territory Profile & 
Energy Estimates (last updated Oct. 18, 2019), https://www.eia.gov/
state/?sid=VQ.
    \4\U.S. Energy Info. Admin., American Samoa Territory Profile & 
Energy Estimates (last updated Oct. 18, 2019), https://www.eia.gov/
state/?sid=AQ.
    \5\Alexia Fernandez Campbell, It Took 11 Months to Restore Power to 
Puerto Rico after Hurricane Maria. A Similar Crisis Could Happen 
Again., VOX: Identities (Aug. 15, 2018, 12:40pm EDT), https://
www.vox.com/identities/2018/8/15/17692414/puerto-rico-power-
electricity-restored-hurricane-maria.
---------------------------------------------------------------------------
    H.R. 1014, the Offshore Wind for Territories Act, will 
allow the Department of the Interior to work closely with local 
stakeholders and pursue responsible offshore wind leasing. It 
will also establish a dedicated fund for coral reef 
conservation and direct a portion of the offshore wind revenues 
back into local communities.

                            Committee Action

    H.R. 1014 was introduced on February 6, 2019, by 
Representative Jenniffer Gonzalez-Colon (R-PR). The bill was 
referred solely to the Committee on Natural Resources, and 
within the Committee to the Subcommittee on Energy and Mineral 
Resources and the Subcommittee on Water, Oceans, and Wildlife. 
On May 1, 2019, the Committee met to consider the bill. The 
Subcommittees were discharged by unanimous consent. No 
amendments were offered. The bill was ordered favorably 
reported to the House of Representatives by unanimous consent.

                                Hearings

    For the purposes of section 103(i) of H. Res. 6 of the 
116th Congress--the following hearing was used to develop or 
consider H.R. 1014: full committee markup held on May 1, 2019.

            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, May 28, 2019.
Hon. Raul M. Grijalva,
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. 1014, 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.

              [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    

    The bill would authorize:
           Auctions of leases for wind and mineral 
        development off the coast of certain U.S. territories 
        and possessions
           Spending of a portion of the income for 
        payments to those jurisdictions (without further 
        appropriation) and for activities administered by the 
        Coastal Reef Conservation Fund (subject to 
        appropriation)
           Spending to conduct auctions and study such 
        offshore wind resources, subject to appropriation
    Estimated budgetary effects would primarily stem from 
increasing:
           Collection of offsetting receipts from 
        offshore energy and mineral leases
           Spending subject to appropriation for 
        administrative expenses related to new leasing 
        activities and for the Coastal Reef Conservation Fund
    Areas of significant uncertainty include:
            The technical and economic feasibility of 
        developing offshore wind and mineral resources in the 
        affected areas
           The amounts companies would be willing to 
        pay to for leases to develop offshore wind resources
           The timing of auctions.
    Bill summary: H.R. 1014 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 jurisdictions 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.
    Estimated Federal cost: The estimated budgetary effect of 
H.R. 1014 is shown in Table 1. The costs of the legislation 
fall within budget functions 300 (natural resources and 
environment) and 950 (undistributed offsetting receipts).

                                                   TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 1014
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                     By fiscal year, millions of dollars--
                                                      --------------------------------------------------------------------------------------------------
                                                        2019   2020   2021   2022   2023   2024   2025   2026   2027   2028   2029  2019-2024  2019-2029
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              Decreases in Direct Spending
 
Estimated Budget Authority...........................      0      0      0      0      0      0     -8     -5     -5     -5     -5         0        -28
Estimated Outlays....................................      0      0      0      0      0      0     -8     -5     -5     -5     -5         0        -28
                                                     Increases in Spending Subject to Appropriation
 
Estimated Authorization..............................      0      *      *      1      1      1      1      2      2      1      1         3         10
Estimated Outlays....................................      0      *      *      1      1      1      1      2      2      1      1         3         10
--------------------------------------------------------------------------------------------------------------------------------------------------------
* = between zero and $500,000.

    Basis of estimate: For this estimate, CBO assumes that H.R. 
1014 will be enacted by the end of fiscal year 2019. Estimated 
spending is based on historical patterns for similar 
activities.

Direct spending

    Based on the prices paid for leases of offshore wind 
resources in different areas of the Atlantic Ocean and the 
characteristics of the electricity markets in the Caribbean and 
the South Pacific, CBO estimates that implementing H.R. 1014 
would increase net offsetting receipts (which are recorded in 
the budget as reductions in direct spending) by $28 million 
over the 2019-2029 period. That estimate reflects estimated 
gross proceeds of $40 million and direct spending of $12 
million for payments to the affected jurisdictions.
    Since 2013, DOI has conducted eight auctions of leases for 
offshore wind resources along the Atlantic coast, generating 
receipts of about $470 million. Taken together, the 15 existing 
leases cover nearly 1.6 million acres, suggesting an average 
size of about 100,000 acres each and an average value of $300 
per acre. In reality, the values and acreage vary widely among 
leases, with the sizes ranging from less than 70,000 acres to 
almost 190,000 acres and prices ranging from less than $1 per 
acre to over $1,000 per acre.
    Several factors suggest that the acreage leased in the 
Caribbean and South Pacific would be on the low end of that 
range at least for the next few years. For example, 
technological advances are needed to deploy systems that can 
withstand winds from category 5 hurricanes. Similarly, current 
technologies for producing electricity from offshore wind may 
not be economically viable for the comparatively small markets 
in those regions.\1\ Despite those limitations, 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.
---------------------------------------------------------------------------
    \1\According to the Energy Information Administration, the two 
largest electricity markets in these regions, Puerto Rico and Guam, 
used a total of 21 billion and 2 billion kilowatt-hours (kWh) in 2016, 
respectively That total is equivalent to about 3 percent of the 
electricity used by the Atlantic states with offshore leases. For data 
on electricity production for each jurisdiction, see Energy Information 
Administration, ``U.S. States, State Profiles and Estimates: U.S. 
Overview'' (accessed May 16, 2019), 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).
---------------------------------------------------------------------------
    CBO expects that any auctions carried out under H.R. 1014 
would occur toward the end of the 10-year period covered by 
this estimate because it would take time to resolve technical 
and economic issues. Based on trends in the Atlantic, CBO 
estimates that the acreage leased over that period would have 
the potential to produce about 30 percent of the electricity 
used in those jurisdictions, or about 120,000 acres.\2\ CBO 
also expects that the average value of that acreage would be 
similar to the prices paid in the Atlantic because of the 
comparatively high cost of other fuel supplies. Thus CBO 
estimates that the gross proceeds over the period would total 
about $40 million. For this estimate, CBO assumes that payments 
made to the affected jurisdictions would be made the year after 
proceeds are collected; those payments would total $12 million 
over the 2019-2029 period.
---------------------------------------------------------------------------
    \2\CBO estimates that the annual resource potential for individual 
leases in the Atlantic ranges from about 3 billion kWh to almost 9 
billion kWh, depending on the acreage of the lease. Thus, most or all 
of that demand could be supplied by one or two leases, assuming they 
are similar in size to those issued in the Atlantic. The estimated 
megawatt-hour values 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).
---------------------------------------------------------------------------
    Finally, H.R.1014 would authorize DOI to issue licenses to 
companies to explore and develop mineral resources in areas on 
the Outer Continental Shelf adjacent to any territory or 
possession of the United States. Based on the information 
available regarding economically recoverable mineral resources 
in those areas, CBO estimates that any proceeds from issuing 
such leases would be negligible over the 2019-2029 period.

Spending subject to appropriation

    CBO estimates that implementing H.R. 1014 would have a 
discretionary cost of $3 million over the 2020-2024 period, 
mostly 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 2024.
    Finally, the bill would authorize DOI to deposit 12.5 
percent of the leasing proceeds in the Coastal Reef 
Conservation Fund; any spending of those amounts would be 
subject to appropriation. CBO estimates that spending from that 
fund would occur after 2024 and would total about $4 million 
over the 2025-2029 period.

Uncertainty

    The estimated reductions in direct spending resulting from 
enacting H.R. 1014 could be higher or lower for several 
reasons:
           CBO cannot precisely 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 lower if 
        current technological and market constraints continue. 
        Similarly proceeds could be collected earlier or later 
        than estimated, depending on the timing of such 
        technological or economic changes.
           CBO also cannot predict with certainty what 
        companies would be willing to pay for leases of 
        offshore wind resources. The prices for leases 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 Table 2.

                                             TABLE 2.--CBO'S ESTIMATE OF PAY-AS-YOU-GO EFFECTS OF H.R. 1014
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                By fiscal year, millions of dollars--
                                           -------------------------------------------------------------------------------------------------------------
                                             2019    2020    2021    2022    2023    2024    2025    2026    2027    2028    2029   2019-2024  2019-2029
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               Net Decrease in the Deficit
 
Statutory Pay-As-You-Go Effect............       0       0       0       0       0       0      -8      -5      -5      -5      -5         0        -28
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Increase in long-term deficits: None.
    Mandates: None.
    Estimate prepared by: Federal costs: Kathleen Gramp, 
Mandates: Jon Sperl.
    Estimate reviewed by: Kim P. Cawley, Chief, Natural 
Resources and 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 goals and 
objectives of this bill is 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.

                 Unfunded Mandates Reform Act Statement

    This bill contains no unfunded mandates.

                           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. The Coral Reef Conservation 
Fund established by the bill at Section 5 would be related and 
complementary to, but not duplicative of, the following 
programs identified in the most recent Catalog of Federal 
Domestic Assistance published pursuant to 31 U.S.C. 6104: the 
Coral Reef Conservation Program (CFDA No. 11.482), the Habitat 
Conservation program (CFDA No. 11.463), the Financial 
Assistance for National Centers for Coastal Ocean Science 
program (CFDA No. 11.426), the Coastal Zone Management 
Administration Awards program (CFDA No. 11.419), and the 
Regional Fishery Management Councils program (CFDA No. 11.441).

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

               Preemption of State, Local, or Tribal Law

    Any preemptive effect of this bill over state, local, or 
tribal law is intended to be consistent with the bill's 
purposes and text and the Supremacy Clause of Article VI of the 
U.S. Constitution.

         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 italics, 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. 201. SHORT TITLE.

  This title may be cited as the ``Coral Reef Conservation Act 
of 2000''.

           *       *       *       *       *       *       *


SEC. 205. [CORAL REEF CONSERVATION FUND]  CORAL REEF PUBLIC-PRIVATE 
                    PARTNERSHIP.

  (a)  [Fund] Public-Private Partnership.--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.

        Supplemental, Minority, Additional, or Dissenting Views

    None.

                                  [all]