To provide for the distribution to coastal States and counties of revenues collected under the Outer Continental Shelf Lands Act.

SECTION 1. SHORT TITLE.

     This Act may be cited as the ``Fair Disbursement of Offshore Oil 
Revenue Act of 2003''.

SEC. 2. FINDINGS.

     The Congress finds that--
            (1) the demand for energy in the United States is 
        increasing and will continue to increase for the foreseeable 
        future;
            (2) domestic production of oil and gas is declining;
            (3) the United States continues to be overly dependent on 
        foreign sources of oil and gas;
            (4) the Outer Continental Shelf contains significant 
        quantities of oil and gas that should be developed to meet 
        United States energy needs while safeguarding important 
        environmental values;
            (5) the exploration, development, and production of Outer 
        Continental Shelf resources, and the siting of related energy 
        facilities, may impact various State and local governments; and
            (6) coastal States and counties should be provided with a 
        share of the revenues derived from Outer Continental Shelf oil 
        and gas leasing, exploration, development, and production 
        activities.

SEC. 3. DEFINITIONS.

     For purposes of this Act--
            (1) the term ``coastal State'' means any State of the 
        United States bordering on the Atlantic Ocean, the Pacific 
        Ocean, the Arctic Ocean, or the Gulf of Mexico;
            (2) the term ``coastal county'' means a unit of general 
        government immediately below the level of State government, as 
        determined by the Secretary under section 6, with jurisdiction 
        over lands along the coast line;
            (3) the term ``coast line'' has the meaning given such term 
        under the Submerged Lands Act (43 U.S.C. 1301 et seq.);
            (4) the term ``Outer Continental Shelf'' has the meaning 
        given the term ``outer Continental Shelf'' under the Outer 
        Continental Shelf Lands Act (43 U.S.C. 1331 et seq.);
            (5) the term ``Secretary'' means the Secretary of the 
        Interior; and
            (6) the term ``revenues'' means all bonuses, rents, 
        royalties, and other moneys collected under the Outer 
        Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), and 
        interest thereon.

SEC. 4. COASTAL COMMUNITIES OUTER CONTINENTAL SHELF RECEIPT FUND.

    (a) Establishment.--There is established an interest bearing 
account in the Treasury of the United States to be known as the Coastal 
Communities Outer Continental Shelf Receipt Fund (hereafter in this Act 
referred to as ``the Fund'').
    (b) Payments to Fund.--Beginning in fiscal year 2004, the Secretary 
shall pay into the Fund all revenues described in subsection (c) that 
are attributable to an Outer Continental Shelf lease, any part of which 
is within 200 geographical miles of the coast line. The Secretary may 
adjust amounts in the Fund at any time to account for overpayments, 
underpayments, and errors.
    (c) New Revenues.--Subsection (b) shall apply only to--
            (1) bonus revenues under a lease if no bonus revenues have 
        been received by the Secretary under that lease before January 
        1, 2003;
            (2) rent revenues under a lease if no rent revenues have 
        been received by the Secretary under that lease before January 
        1, 2003;
            (3) royalty revenues under a lease if no royalty revenues 
        have been received by the Secretary under that lease before 
        January 1, 2003; and
            (4) other revenues under a lease if the lease was issued on 
        or after January 1, 2003.

SEC. 5. DISPOSITION OF FUND.

    (a) State Share.--(1) Six months after the end of fiscal year 2004, 
and annually thereafter, the Secretary shall pay from the Fund to each 
coastal State one-half of such revenues paid into the Fund with respect 
to the fiscal year most recently completed, and any interest earned 
thereon, as may be attributable to that State.
    (2) In order to determine to which State revenues are attributable 
for purposes of this Act, the Secretary shall delimit the lateral 
boundaries between the coastal States to a point 200 geographic miles 
seaward of the coast line. Such boundaries shall be set according to 
the following principles, listed in order of the priority of their 
application:
            (A) Any judicial decrees or interstate compacts delimiting 
        lateral offshore boundaries between coastal States.
            (B) Principles of domestic and international law governing 
        the delimitation of lateral offshore boundaries.
            (C) The desirability of following existing lease boundaries 
        and block lines on the Secretary's official protraction 
        diagrams.
    (3) Each coastal State, before receiving funds under this 
subsection, shall annually enact the necessary legislation to provide 
any State permits required for onshore facilities needed to support 
offshore oil or gas development or production in the area adjacent to 
that coastal State. If a State fails to enact such legislation, the 
funds attributable to that State shall not be disbursed, and the 
Secretary shall take into consideration that failure before offering 
any additional leases for sale in the offshore area adjacent to that 
State.
    (b) Coastal County Share.--(1) At the same time that the Secretary 
pays revenues to coastal States under subsection (a), the Secretary 
shall pay to coastal counties within that State the remaining one-half 
of the revenues, and any interest earned on those revenues, in the Fund 
for that fiscal year attributable to that State.
    (2) In order to determine to which coastal county revenues are 
attributable for purposes of this Act, the Secretary shall delimit the 
lateral boundaries between the coastal counties to a point 200 
geographic miles seaward of the coast line. Such boundaries shall be 
set according to the following principles, listed in order of the 
priority of their application:
            (A) Existing boundaries between coastal counties with valid 
        supporting legal authority.
            (B) The desirability of following existing lease boundaries 
        and block lines on the Secretary's official protraction 
        diagrams.
            (C) The principle that, to the extent consistent with 
        subparagraphs (A) and (B), the size of the coastal county's 
        adjacent offshore area, as a percentage of all of that State's 
        adjacent offshore areas, shall be based on a formula giving 
        equal weight to--
                    (i) the coastal county's coast line as a percentage 
                of the State's coast line, calculated using the same 
                large-scale charts of the National Ocean Service that 
                are used to delimit the territorial sea under 
                international law; and
                    (ii) the coastal county's population as a 
                percentage of the population of all coastal counties in 
                the State, calculated by the Secretary using the best 
                available national census data.
    (3) Each coastal county, before receiving funds under this 
subsection, shall annually enact by county statute or ordinance the 
necessary legislation to provide the local permits required for onshore 
facilities needed to support offshore oil or gas development or 
production in the area adjacent to that coastal county, and the 
necessary legislation to expend such funds. If a county fails to enact 
such legislation, the funds attributable to that county shall not be 
disbursed, and the Secretary shall take into consideration that failure 
before offering any additional leases for sale in the offshore area 
adjacent to that county.
    (c) Use of Funds by States.--Each coastal State shall use funds 
received pursuant to subsection (a)--
            (1) to pay for the administrative costs the State incurs in 
        the leasing and permitting process as specified in the Outer 
        Continental Shelf Lands Act;
            (2) for such environmental and natural resource projects as 
        the State determines; or
            (3) for such educational projects as the State determines.
    (d) County Distribution of Funds.--Each coastal county shall 
develop a formula to allocate at least two-thirds of the funds received 
pursuant to subsection (b) to local communities within its jurisdiction 
based on the proximity of these communities to the coast, except that 
funds shall be withheld from communities that the Secretary determines 
have failed to issue permits required for onshore facilities needed to 
support offshore oil or gas development or production in the area 
adjacent to that coastal county.

SEC. 6. DESIGNATION OF COASTAL COUNTIES.

     For the purposes of this Act, the Secretary, after consultation 
with the Governor of each coastal State, shall determine which 
counties, parishes, boroughs, tribal governments, or other units of 
general government immediately below the level of State government 
shall be designated as coastal counties.

SEC. 7. LIMITATIONS ON APPLICABILITY OF BOUNDARIES.

     The boundaries and areas delimited under section 5 are solely for 
the purposes of this Act.

Summary: Fair Disbursement of Offshore Oil Revenue Act of 2003 - Establishes the Coastal Communities Outer Continental Shelf Receipt Fund as an interest-bearing account in the Treasury. Instructs the Secretary of the Treasury to pay into the Fund all revenues attributable to an Outer Continental Shelf lease, any part of which is within 200 geographical miles of the coast line. Directs the Secretary to pay each coastal State and its coastal counties, respectively, one-half of the revenues and any interest earned on them attributable to the State for the fiscal year most recently completed. Preconditions such disposition of funds upon annual enactment by each coastal State and coastal county of the legislation necessary to provide State and local permits for the onshore facilities needed to support offshore oil or gas development or production in the pertinent adjacent area. Declares that if a State or county fails to enact such legislation, the funds attributable to it shall not be disbursed, and the Secretary shall take that failure into consideration before offering any additional leases for sale in the offshore area adjacent to that State or county.