SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Gulf Coast Protection Act of 2006''.

SEC. 2. PAYMENTS TO COASTAL PRODUCING STATES.

    The Outer Continental Shelf Lands Act (43 U.S.C. 1301 et seq.) is 
amended by adding at the end the following:

``SEC. 32. PAYMENTS TO COASTAL PRODUCING STATES.

    ``(a) Definitions.--In this section:
            ``(1) Coastal political subdivision.--The term `coastal 
        political subdivision' means a political subdivision of a 
        coastal State, any part of which is located--
                    ``(A) within the coastal zone (as defined in 
                section 304 of the Coastal Zone Management Act of 1972 
                (16 U.S.C. 1453)) of the coastal State as of the date 
                of enactment of this section; and
                    ``(B) not more than 200 nautical miles from the 
                geographic center of any leased tract.
            ``(2) Coastal state.--The term `coastal State' has the 
        meaning given the term in section 304 of the Coastal Zone 
        Management Act of 1972 (16 U.S.C. 1453).
            ``(3) Coastal producing state.--
                    ``(A) In general.--The term `coastal producing 
                State' means a coastal State that has a coastal seaward 
                boundary within 200 nautical miles of the geographic 
                center of a leased tract within any area of the outer 
                Continental Shelf.
                    ``(B) Exclusion.--The term `coastal producing 
                State' does not include any State a majority of the 
                coastline of which is subject to leasing moratoria as 
                of January 1, 2006.
            ``(4) Leased tract.--The term `leased tract' means a 
        tract--
                    ``(A) maintained under section 6; or
                    ``(B) leased under section 8.
            ``(5) Qualified outer continental shelf revenues.--
                    ``(A) In general.--The term `qualified outer 
                Continental Shelf revenues' means the amounts received 
                by the United States from each leased tract or portion 
                of a leased tract--
                            ``(i) lying--
                                    ``(I) seaward of the zone covered 
                                by section 8(g); or
                                    ``(II) within that zone, but to 
                                which section 8(g) does not apply; and
                            ``(ii) the geographic center of which lies 
                        within 200 nautical miles from any part of the 
                        coastline of any coastal State.
                    ``(B) Inclusions.--The term `qualified outer 
                Continental Shelf revenues' includes bonus bids, rents, 
                royalties (including payments for royalty taken in-kind 
                and sold), net profit share payments, and related late-
                payment interest from natural gas and oil leases issued 
                under this Act.
                    ``(C) Exclusion.--The term `qualified outer 
                Continental Shelf revenues' does not include any 
                revenues from a leased tract or portion of a leased 
                tract that is located in a geographic area subject to a 
                leasing moratorium as of January 1, 2006, unless the 
                lease was in production on that date.
    ``(b) Disbursements.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, not later than December 31, 2006, and annually thereafter, 
        the Secretary of the Treasury, without further appropriation 
        and subject to subjection (c), shall disburse to coastal 
        producing States 50 percent of qualified outer Continental 
        Shelf revenues received during the preceding year.
            ``(2) Proportional allocations.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the amounts made available under 
                paragraph (1) shall be allocated to each coastal 
                producing State based on the ratio that--
                            ``(i) the amount of qualified outer 
                        Continental Shelf revenues generated off the 
                        coastline of the coastal producing State; bears 
                        to
                            ``(ii) the amount of qualified outer 
                        Continental Shelf revenues generated off the 
                        coastline of all coastal producing States.
                    ``(B) Exception for multiple coastal producing 
                states.--In a case in which more than 1 coastal 
                producing State is located within 200 nautical miles of 
                any portion of a leased tract, the amount allocated to 
                each coastal producing State for the leased tract shall 
                be inversely proportional to the distance between--
                            ``(i) the nearest point on the coastline of 
                        the coastal producing State; and
                            ``(ii) the geographic center of the leased 
                        tract.
                    ``(C) Formula.--Of the share of each coastal 
                producing State under this paragraph, 35 percent shall 
                be allocated among and paid directly to appropriate 
                coastal political subdivisions by the Secretary of the 
                Treasury based on the following formula:
                            ``(i) 50 percent shall be allocated in 
                        amounts that are inversely proportional to the 
                        respective distances between the points in each 
                        coastal political subdivision that are closest 
                        to the geographic center of each leased tract, 
                        as determined by the Secretary.
                            ``(ii) 25 percent shall be allocated based 
                        on the ratio that--
                                    ``(I) the length, in miles, of the 
                                coastline of each coastal political 
                                subdivision; bears to
                                    ``(II) the length, in miles, of the 
                                coastline of all coastal political 
                                subdivisions of the State.
                            ``(iii) 25 percent shall be allocated based 
                        on the ratio that--
                                    ``(I) the coastal population of the 
                                coastal political subdivision; bears to
                                    ``(II) the coastal population of 
                                all coastal political subdivisions of 
                                the State.
    ``(c) Use of Funds.--A coastal producing State, and a coastal 
political subdivision, shall use amounts received under this section 
(including any amounts deposited into a trust fund administered by the 
coastal producing State or coastal political subdivision in accordance 
with this subsection), only for 1 or more of the following purposes:
            ``(1) To conserve, protect, or restore coastal areas, 
        including wetlands.
            ``(2) To mitigate damage to natural resources and protect 
        fish and wildlife in the coastal zone.
            ``(3) To mitigate the impact of outer Continental Shelf 
        activity by providing onshore infrastructure or public service.
            ``(4) Hurricane protection, storm damage mitigation, and 
        integrated flood control systems.
            ``(5) Levee construction and maintenance.
            ``(6) Marine and coastal subsidence.
            ``(7) Coastal and riverine erosion.
            ``(8) Coastal and wetlands conservation and management.
            ``(9) Infrastructure for navigation, ports, and 
        transportation relating to trade, commerce, evacuation, 
        economic development, and public safety.
    ``(d) Additional Use of Funds.--Subject to subsection (c), a 
coastal producing State may use amounts received under this section 
(including any amounts deposited into a trust fund administered by the 
coastal producing State or coastal political subdivision in accordance 
with this subsection) to make any payment that is eligible to be made 
with funds provided to States under section 35 of the Mineral Leasing 
Act (30 U.S.C. 191).''.
Gulf Coast Protection Act of 2006 - Amends the Outer Continental Shelf Lands Act to instruct the Secretary of the Treasury to disburse to coastal producing states by December 31, 2006, without further appropriation, 50% of the qualified outer Continental Shelf revenues received during the preceding year.

Prescribes proportional allocation requirements.

Restricts the purposes for which the producing states and coastal political subdivisions may use such funds.
A bill to amend the Outer Continental Shelf Lands Act to provide for payments for producing coastal States.