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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3410 Reported in House (RH)]

                                                 Union Calendar No. 275
112th CONGRESS
  2d Session
                                H. R. 3410

                          [Report No. 112-395]

 To require the Secretary of the Interior to conduct certain offshore 
oil and gas lease sales, to provide fair and equitable revenue sharing 
for all coastal States, to formulate future offshore energy development 
    plans in areas with the most potential, to generate revenue for 
            American infrastructure, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           November 14, 2011

Mr. Stivers (for himself, Mr. LaTourette, Mr. Tiberi, Mr. Fitzpatrick, 
Mr. Gerlach, Mr. Womack, Mr. Reed, Mr. Johnson of Ohio, and Mr. Meehan) 
 introduced the following bill; which was referred to the Committee on 
                           Natural Resources

                            February 9, 2012

Additional sponsors: Mr. Kelly, Mr. Dent, Mr. Schilling, Mrs. Miller of 
 Michigan, Mr. Gibson, Mr. Kline, Mr. Burton of Indiana, Mr. Heck, Mr. 
                Duncan of South Carolina, and Mrs. Noem

                            February 9, 2012

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
    [For text of introduced bill, see copy of bill as introduced on 
                           November 14, 2011]

_______________________________________________________________________

                                 A BILL

 
 To require the Secretary of the Interior to conduct certain offshore 
oil and gas lease sales, to provide fair and equitable revenue sharing 
for all coastal States, to formulate future offshore energy development 
    plans in areas with the most potential, to generate revenue for 
            American infrastructure, and for other purposes.

 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Energy Security and Transportation 
Jobs Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

             TITLE I--EXPANDING OFFSHORE ENERGY DEVELOPMENT

Sec. 101. Outer Continental Shelf leasing program.
Sec. 102. Domestic oil and natural gas production goal.

            TITLE II--CONDUCTING PROMPT OFFSHORE LEASE SALES

Sec. 201. Requirement to conduct proposed oil and gas Lease Sale 216 in 
                            the Central Gulf of Mexico.
Sec. 202. Requirement to conduct proposed oil and gas Lease Sale 220 on 
                            the Outer Continental Shelf offshore 
                            Virginia.
Sec. 203. Requirement to conduct oil and gas lease Sale 222 in the 
                            Central Gulf of Mexico.
Sec. 204. Lease sale offshore California with no new offshore impact.
Sec. 205. Requirement to conduct oil and gas Lease Sale 214 in the 
                            North Aleutian Basin offshore Alaska.
Sec. 206. Additional leases.
Sec. 207. Definitions.

                TITLE III--LEASING IN NEW OFFSHORE AREAS

Sec. 301. Leasing in the Eastern Gulf of Mexico.
Sec. 302. Reforming oil and gas leasing in the Eastern Gulf of Mexico.
Sec. 303. Areas added to Central Gulf of Mexico Planning Area.
Sec. 304. Application of Outer Continental Shelf Lands Act with respect 
                            to territories of the United States.

           TITLE IV--OUTER CONTINENTAL SHELF REVENUE SHARING

Sec. 401. Disposition of Outer Continental Shelf revenues to coastal 
                            States.

                   TITLE V--MISCELLANEOUS PROVISIONS

Sec. 501. Policies regarding buying, building, and working for America.
Sec. 502. Regulations.

             TITLE I--EXPANDING OFFSHORE ENERGY DEVELOPMENT

SEC. 101. OUTER CONTINENTAL SHELF LEASING PROGRAM.

    Section 18(a) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1344(a)) is amended by adding at the end the following:
            ``(5)(A) In each oil and gas leasing program under this 
        section, the Secretary shall make available for leasing and 
        conduct lease sales including--
                    ``(i) at least 50 percent of the available unleased 
                acreage within each outer Continental Shelf planning 
                area considered to have the largest undiscovered, 
                technically recoverable oil and gas resources (on a 
                total btu basis) based upon the most recent national 
                geologic assessment of the outer Continental Shelf, 
                with an emphasis on offering the most geologically 
                prospective parts of the planning area; and
                    ``(ii) any State subdivision of an outer 
                Continental Shelf planning area that the Governor of 
                the State that represents that subdivision requests be 
                made available for leasing.
            ``(B) In this paragraph the term `available unleased 
        acreage' means that portion of the outer Continental Shelf that 
        is not under lease at the time of a proposed lease sale, and 
        that has not otherwise been made unavailable for leasing by 
        law.
            ``(6)(A) In the 2012-2017 5-year oil and gas leasing 
        program, the Secretary shall make available for leasing any 
        outer Continental Shelf planning areas that--
                    ``(i) are estimated to contain more than 
                2,500,000,000 barrels of oil; or
                    ``(ii) are estimated to contain more than 
                7,500,000,000,000 cubic feet of natural gas.
            ``(B) To determine the planning areas described in 
        subparagraph (A), the Secretary shall use the document entitled 
        `Minerals Management Service Assessment of Undiscovered 
        Technically Recoverable Oil and Gas Resources of the Nation's 
        Outer Continental Shelf, 2006'.''.

SEC. 102. DOMESTIC OIL AND NATURAL GAS PRODUCTION GOAL.

    Section 18(b) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1344(b)) is amended to read as follows:
    ``(b) Domestic Oil and Natural Gas Production Goal.---
            ``(1) In general.--In developing a 5-year oil and gas 
        leasing program, and subject to paragraph (2), the Secretary 
        shall determine a domestic strategic production goal for the 
        development of oil and natural gas as a result of that program. 
        Such goal shall be--
                    ``(A) the best estimate of the possible increase in 
                domestic production of oil and natural gas from the 
                outer Continental Shelf;
                    ``(B) focused on meeting domestic demand for oil 
                and natural gas and reducing the dependence of the 
                United States on foreign energy; and
                    ``(C) focused on the production increases achieved 
                by the leasing program at the end of the 15-year period 
                beginning on the effective date of the program.
            ``(2) 2012-2017 program goal.--For purposes of the 2012-
        2017 5-year oil and gas leasing program, the production goal 
        referred to in paragraph (1) shall be an increase by 2027, from 
        the levels of oil and gas produced as of the date of enactment 
        of this paragraph, of--
                    ``(A) no less than 3,000,000 barrels in the amount 
                of oil produced per day; and
                    ``(B) no less than 10,000,000,000 cubic feet in the 
                amount of natural gas produced per day.
            ``(3) Reporting.--The Secretary shall report annually, 
        beginning at the end of the 5-year period for which the program 
        applies, to the Committee on Natural Resources of the House of 
        Representatives and the Committee on Energy and Natural 
        Resources of the Senate on the progress of the program in 
        meeting the production goal. The Secretary shall identify in 
        the report projections for production and any problems with 
        leasing, permitting, or production that will prevent meeting 
        the goal.''.

            TITLE II--CONDUCTING PROMPT OFFSHORE LEASE SALES

SEC. 201. REQUIREMENT TO CONDUCT PROPOSED OIL AND GAS LEASE SALE 216 IN 
              THE CENTRAL GULF OF MEXICO.

    (a) In General.--The Secretary of the Interior shall conduct 
offshore oil and gas Lease Sale 216 under section 8 of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1337) as soon as practicable, 
but not later than 4 months after the date of enactment of this Act.
    (b) Environmental Review.--For the purposes of that lease sale, the 
Environmental Impact Statement for the 2007-2012 5 Year Outer 
Continental Shelf Plan and the Multi-Sale Environmental Impact 
Statement are deemed to satisfy the requirements of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

SEC. 202. REQUIREMENT TO CONDUCT PROPOSED OIL AND GAS LEASE SALE 220 ON 
              THE OUTER CONTINENTAL SHELF OFFSHORE VIRGINIA.

    (a) In General.--Notwithstanding the inclusion of Lease Sale 220 in 
the Proposed Outer Continental Shelf Oil & Gas Leasing Program 2012-
2017, the Secretary shall conduct offshore oil and gas Lease Sale 220 
under section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1337) as soon as practicable, but not later than one year after the 
date of enactment of this Act.
    (b) Requirement to Make Replacement Lease Blocks Available.--
            (1) In general.--For each lease block in a proposed lease 
        sale under this section for which the Secretary of Defense, in 
        consultation with the Secretary of the Interior, under the 
        Memorandum of Agreement referred to in subsection (c)(2), 
        issues a statement proposing deferral from a lease offering due 
        to defense-related activities that are irreconcilable with 
        mineral exploration and development, the Secretary of the 
        Interior, in consultation with the Secretary of Defense, shall 
        make available in the same lease sale two other lease blocks in 
        the Virginia lease sale planning area that are acceptable for 
        oil and gas exploration and production in order to mitigate 
        conflict.
            (2) Virginia lease sale planning area defined.--In this 
        subsection the term ``Virginia lease sale planning area'' means 
        the area of the outer Continental Shelf (as that term is 
        defined in the Outer Continental Shelf Lands Act (33 U.S.C. 
        1331 et seq.)) that is bounded by--
                    (A) a northern boundary consisting of a straight 
                line extending from the northernmost point of 
                Virginia's seaward boundary to the point on the seaward 
                boundary of the United States exclusive economic zone 
                located at 37 degrees 17 minutes 1 second North 
                latitude, 71 degrees 5 minutes 16 seconds West 
                longitude; and
                    (B) a southern boundary consisting of a straight 
                line extending from the southernmost point of 
                Virginia's seaward boundary to the point on the seaward 
                boundary of the United States exclusive economic zone 
                located at 36 degrees 31 minutes 58 seconds North 
                latitude, 71 degrees 30 minutes 1 second West 
                longitude.
    (c) Balancing Military and Energy Production Goals.--
            (1) Joint goals.--In recognition that the Outer Continental 
        Shelf oil and gas leasing program and the domestic energy 
        resources produced therefrom are integral to national security, 
        the Secretary of the Interior and the Secretary of Defense 
        shall work jointly in implementing this section in order to 
        ensure achievement of the following common goals:
                    (A) Preserving the ability of the Armed Forces of 
                the United States to maintain an optimum state of 
                readiness through their continued use of the Outer 
                Continental Shelf.
                    (B) Allowing effective exploration, development, 
                and production of our Nation's oil, gas, and renewable 
                energy resources.
            (2) Prohibition on conflicts with military operations.--No 
        person may engage in any exploration, development, or 
        production of oil or natural gas off the coast of Virginia that 
        would conflict with any military operation, as determined in 
        accordance with the Memorandum of Agreement between the 
        Department of Defense and the Department of the Interior on 
        Mutual Concerns on the Outer Continental Shelf signed July 20, 
        1983, and any revision or replacement for that agreement that 
        is agreed to by the Secretary of Defense and the Secretary of 
        the Interior after that date but before the date of issuance of 
        the lease under which such exploration, development, or 
        production is conducted.

SEC. 203. REQUIREMENT TO CONDUCT OIL AND GAS LEASE SALE 222 IN THE 
              CENTRAL GULF OF MEXICO.

    (a) In General.--The Secretary shall conduct offshore oil and gas 
Lease Sale 222 under section 8 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1337) by as soon as practicable, but not later than 
September 1, 2012.
    (b) Environmental Review.--For the purposes of that lease sale, the 
Environmental Impact Statement for the 2007-2012 5 Year Outer 
Continental Shelf Plan and the Multi-Sale Environmental Impact 
Statement are deemed to satisfy the requirements of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

SEC. 204. LEASE SALE OFFSHORE CALIFORNIA WITH NO NEW OFFSHORE IMPACT.

    (a) Southern California Lease Sale.--The Secretary shall offer for 
sale leases of tracts in the Southern California Planning Area in the 
Santa Maria and Santa Barbara/Ventura Basins in accordance with section 
8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337) as soon as 
practicable, but not later than July 1, 2014.
    (b) Use of Existing Structures or Onshore-based Drilling.--Leases 
offered for sale under this section shall include such terms and 
conditions as are necessary to require that development and production 
may occur only from existing offshore infrastructure or from onshore-
based drilling.
    (c) Relationship to Leasing Program.--Areas shall be offered for 
lease under this section notwithstanding the omission of the Southern 
California Planning Area from any outer Continental Shelf leasing 
program under section 18 of the Outer Continental Shelf Lands Act (43 
U.S.C. 1344).
    (d) Relationship to State Coastal Zone Management Program.--Section 
307(c) of the Coastal Zone Management Act of 1972 (16 U.S.C. 1456(c)) 
shall not apply to lease sales under this section and activities 
conducted under leases issued in such sales, including exploration, 
development, and production.
    (e) Environmental Impact Statement Requirement.--
            (1) In general.--Before conducting the first lease sale 
        under this section, the Secretary shall prepare an 
        environmental impact statement for the lease sales required 
        under this section, under section 102 of the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4332).
            (2) Actions to be considered.--
                    (A) In general.--Notwithstanding section 102 of the 
                National Environmental Policy Act of 1969 (42 U.S.C. 
                4332), in such statement--
                            (i) the Secretary is not required to 
                        identify nonleasing alternative courses of 
                        action or to analyze the environmental effects 
                        of such alternative courses of action; and
                            (ii) the Secretary shall only--
                                    (I) identify a preferred action for 
                                leasing and not more than one 
                                alternative leasing proposal; and
                                    (II) analyze the environmental 
                                effects and potential mitigation 
                                measures for such preferred action and 
                                such alternative leasing proposal.
                    (B) Deadline.--The identification of the preferred 
                action and related analysis for the first lease sale 
                under this Act shall be completed within 18 months 
                after the date of enactment of this Act.
            (3) Consideration of public comments.--In preparing such 
        statement, the Secretary shall only consider public comments 
        that specifically address the Secretary's preferred action and 
        that are filed within 20 days after publication of an 
        environmental analysis.
            (4) Compliance.--Compliance with this subsection is deemed 
        to satisfy all requirements for the analysis and consideration 
        of the environmental effects of proposed leasing under this 
        section.

SEC. 205. REQUIREMENT TO CONDUCT OIL AND GAS LEASE SALE 214 IN THE 
              NORTH ALEUTIAN BASIN OFFSHORE ALASKA.

    (a) In General.--The Secretary of the Interior shall conduct the 
lease sale formerly known as Lease Sale 214, for the tracts located in 
the North Aleutian Basin Outer Continental Shelf Planning Area, not 
later than 1 year after the date of enactment of this Act.
    (b) Relationship to Leasing Program.--Areas shall be offered for 
lease under this section notwithstanding inclusion of areas referred to 
in subsection (a) in the Proposed Outer Continental Shelf Oil & Gas 
Leasing Program 2012-2017.

SEC. 206. ADDITIONAL LEASES.

    Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1344) is amended by adding at the end the following:
    ``(i) Additional Lease Sales.--In addition to lease sales in 
accordance with a leasing program in effect under this section, the 
Secretary may hold lease sales for areas identified by the Secretary to 
have the greatest potential for new oil and gas development as a result 
of local support, new seismic findings, or nomination by interested 
persons.''.

SEC. 207. DEFINITIONS.

    In this title:
            (1) The term ``Environmental Impact Statement for the 2007-
        2012 5 Year Outer Continental Shelf Plan'' means the Final 
        Environmental Impact Statement for Outer Continental Shelf Oil 
        and Gas Leasing Program: 2007-2012 (April 2007) prepared by the 
        Secretary.
            (2) The term ``Multi-Sale Environmental Impact Statement'' 
        means the Environmental Impact Statement for Proposed Western 
        Gulf of Mexico Outer Continental Shelf Oil and Gas Lease Sales 
        204, 207, 210, 215, and 218, and Proposed Central Gulf of 
        Mexico Outer Continental Shelf Oil and Gas Lease Sales 205, 
        206, 208, 213, 216, and 222 (September 2008) prepared by the 
        Secretary.
            (3) The term ``Secretary'' means the Secretary of the 
        Interior.

                TITLE III--LEASING IN NEW OFFSHORE AREAS

SEC. 301. LEASING IN THE EASTERN GULF OF MEXICO.

    Section 104 of division C of the Tax Relief and Health Care Act of 
2006 (Public Law 109-432; 120 Stat. 3003) is repealed.

SEC. 302. REFORMING OIL AND GAS LEASING IN THE EASTERN GULF OF MEXICO.

    (a) Reforming Administrative Boundaries.--Effective July 1, 2012, 
for purposes of administering the Outer Continental Shelf Lands Act (43 
U.S.C. 1331 et seq.) the boundary between the Central Gulf of Mexico 
Outer Continental Shelf Planning Area and the Eastern Gulf of Mexico 
Outer Continental Shelf Planning Area shall be 86 degrees, 41 minutes 
west longitude.
    (b) Extending the Moratorium.--Effective during the period 
beginning on the date of enactment of this Act and ending June 30, 
2025, the Secretary of the Interior shall not offer for leasing, 
preleasing, or any related activity any area in the Eastern Gulf of 
Mexico Outer Continental Shelf Planning Area except as required under 
subsection (c).
    (c) Limited New Leasing in the Eastern Gulf of Mexico.--
            (1) In general.--Notwithstanding the Proposed Outer 
        Continental Shelf Oil & Gas Leasing Program 2012-2017, the 
        Secretary shall conduct planning and leasing for one lease sale 
        in the Eastern Gulf of Mexico Outer Continental Shelf Planning 
        Area in each of 2013, 2014, and 2015. Each lease sale shall 
        only consist of 50 contiguous Outer Continental Shelf lease 
        blocks in those areas the Secretary considers to have the 
        greatest potential for oil and gas after issuing a request for, 
        receiving, and considering public comment. In reviewing 
        potential areas for such leasing, the Secretary shall focus on 
        those areas for which there are known quantities of 
        hydrocarbons that can be conventionally produced using existing 
        or reasonably foreseeable technology, and for which oil and gas 
        exploration, development, production, and marketing could be 
        carried out in an expeditious manner.
            (2) Lease conditions.--In addition to such requirements as 
        otherwise apply, each lease sale under this subsection shall be 
        subject to the following:
                    (A) The Secretary may include limits on permanent 
                surface occupancy on any lease block if surface 
                occupancy is incompatible with military operations.
                    (B) The Secretary may include limits on drilling 
                schedules and surface occupancy to accommodate defense 
                activities on a short-term or seasonal basis. Such 
                limits shall be treated as administrative suspensions 
                of a lease term.
                    (C) The Secretary may limit permanent surface 
                infrastructure on any Outer Continental Shelf lease 
                block that is closer than 12 nautical miles to the 
                coast of any State, unless that infrastructure is 
                approved by the State.
    (d) Requirement to Make Replacement Lease Blocks Available.--For 
each lease block in a proposed lease sale under this section for which 
the Secretary of Defense, in consultation with the Secretary of the 
Interior, under the Memorandum of Agreement referred to in subsection 
(e)(2) issues a statement proposing deferral from a lease offering due 
to defense-related activities that are irreconcilable with mineral 
exploration and development, the Secretary of the Interior, in 
consultation with the Secretary of Defense, shall make available in the 
same lease sale two other lease blocks in the same Outer Continental 
Shelf planning area that are acceptable for oil and gas exploration and 
production in order to mitigate conflict.
    (e) Balancing Military and Energy Production Goals.--
            (1) Joint goals.--In recognition that the Outer Continental 
        Shelf oil and gas leasing program and the domestic energy 
        resources produced therefrom are integral to national security, 
        the Secretary of the Interior and the Secretary of Defense 
        shall work jointly in implementing this section in order to 
        ensure achievement of the goals of--
                    (A) preserving the ability of the Armed Forces of 
                the United States to maintain an optimum state of 
                readiness through their continued use of the Outer 
                Continental Shelf; and
                    (B) allowing effective exploration, development, 
                and production of our Nation's oil, gas, and renewable 
                energy resources.
                    (C) recognizing the Outer Continental Shelf oil and 
                gas leasing program is an integral part of the Nation's 
                energy security program to develop domestic oil and gas 
                resources.
            (2) Prohibition on conflicts with military operations.--No 
        person may engage in any exploration, development, or 
        production of oil or natural gas in the Eastern Gulf of Mexico 
        Outer Continental Shelf Planning Area that would conflict with 
        any military operation, as determined in accordance with the 
        Memorandum of Agreement between the Department of Defense and 
        the Department of the Interior on Mutual Concerns on the Outer 
        Continental Shelf signed July 20, 1983, and any revision or 
        replacement for that agreement that is agreed to by the 
        Secretary of Defense and the Secretary of the Interior after 
        that date but before the date of issuance of the lease under 
        which such exploration, development, or production is 
        conducted.

SEC. 303. AREAS ADDED TO CENTRAL GULF OF MEXICO PLANNING AREA.

    The Secretary shall conduct an offshore oil and gas lease sale 
under section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1337) for the areas added to the Central Gulf of Mexico Outer 
Continental Shelf Planning Area as a result of the enactment of section 
302(a) as soon as practicable, but not later than the first lease sale 
under such section after the date of the enactment of this Act in which 
any area in such planning area is made available for leasing.

SEC. 304. APPLICATION OF OUTER CONTINENTAL SHELF LANDS ACT WITH RESPECT 
              TO TERRITORIES OF THE UNITED STATES.

    Section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 1331) 
is amended--
            (1) in paragraph (a), by inserting after ``control'' the 
        following: ``or lying within the United States' exclusive 
        economic zone and the Continental Shelf adjacent to any 
        territory of the United States''; and
            (2) in paragraph (p), by striking ``and'' after the 
        semicolon at the end;
            (3) in paragraph (q), by striking the period at the end and 
        inserting ``; and''; and
            (4) by adding at the end the following:
    ``(r) The term `State' includes each territory of the United 
States.''.

           TITLE IV--OUTER CONTINENTAL SHELF REVENUE SHARING

SEC. 401. DISPOSITION OF OUTER CONTINENTAL SHELF REVENUES TO COASTAL 
              STATES.

    (a) In General.--Section 9 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1338) is amended--
            (1) in the existing text--
                    (A) in the first sentence, by striking ``All 
                rentals,'' and inserting the following:
    ``(c) Disposition of Revenue Under Old Leases.--All rentals,''; and
                    (B) in subsection (c) (as designated by the 
                amendment made by subparagraph (A) of this paragraph), 
                by striking ``for the period from June 5, 1950, to 
                date, and thereafter'' and inserting ``in the period 
                beginning June 5, 1950, and ending on the date of 
                enactment of the Energy Security and Transportation 
                Jobs Act'';
            (2) by adding after subsection (c) (as so designated) the 
        following:
    ``(d)  Definitions.--In this section:
            ``(1) Coastal state.--The term `coastal State' includes a 
        territory of the United States.
            ``(2) New leasing revenues.--The term `new leasing 
        revenues'--
                    ``(A) means amounts received by the United States 
                as bonuses, rents, and royalties under leases for oil 
                and gas, wind, tidal, or other energy exploration, 
                development, and production on areas of the outer 
                Continental Shelf that are authorized to be made 
                available for leasing as a result of enactment of the 
                Energy Security and Transportation Jobs Act; and
                    ``(B) does not include amounts received by the 
                United States under any lease of an area located in the 
                boundaries of the Central Gulf of Mexico and Western 
                Gulf of Mexico Outer Continental Shelf Planning Areas 
                on the date of the enactment of the Energy Security and 
                Transportation Jobs Act, including a lease issued 
                before, on, or after such date of enactment.''; and
            (3) by inserting before subsection (c) (as so designated) 
        the following:
    ``(a) Payment of New Leasing Revenues to Coastal States.--
            ``(1) In general.--Except as provided in paragraph (2), of 
        the amount of new leasing revenues received by the United 
        States each fiscal year, 37.5 percent shall be allocated and 
        paid in accordance with subsection (b) to coastal States that 
        are affected States with respect to the leases under which 
        those revenues are received by the United States.
            ``(2) Phase-in.--Paragraph (1) shall be applied--
                    ``(A) with respect to new leasing revenues under 
                leases awarded under the first leasing program under 
                section 18(a) that takes effect after the date of 
                enactment of the Energy Security and Transportation 
                Jobs Act, by substituting `12.5 percent' for `37.5 
                percent'; and
                    ``(B) with respect to new leasing revenues under 
                leases awarded under the second leasing program under 
                section 18(a) that takes effect after the date of 
                enactment of the Energy Security and Transportation 
                Jobs Act, by substituting `25 percent' for `37.5 
                percent'.
    ``(b) Allocation of Payments.--
            ``(1) In general.--The amount of new leasing revenues 
        received by the United States with respect to a leased tract 
        that are required to be paid to coastal States in accordance 
        with this subsection each fiscal year shall be allocated among 
        and paid to coastal States that are within 200 miles of the 
        leased tract, in amounts that are inversely proportional to the 
        respective distances between the point on the coastline of each 
        such State that is closest to the geographic center of the 
        lease tract, as determined by the Secretary.
            ``(2) Minimum and maximum allocation.--The amount allocated 
        to a coastal State under paragraph (1) each fiscal year with 
        respect to a leased tract shall be--
                    ``(A) in the case of a coastal State that is the 
                nearest State to the geographic center of the leased 
                tract, not less than 25 percent of the total amounts 
                allocated with respect to the leased tract;
                    ``(B) in the case of any other coastal State, not 
                less than 10 percent, and not more than 15 percent, of 
                the total amounts allocated with respect to the leased 
                tract; and
                    ``(C) in the case of a coastal State that is the 
                only coastal State within 200 miles of a least tract, 
                100 percent of the total amounts allocated with respect 
                to the leased tract.
            ``(3) Administration.--Amounts allocated to a coastal State 
        under this subsection--
                    ``(A) shall be available to the coastal State 
                without further appropriation;
                    ``(B) shall remain available until expended; and
                    ``(C) shall be in addition to any other amounts 
                available to the coastal State under this Act.
            ``(4) Use of funds.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a coastal State may use funds 
                allocated and paid to it under this subsection for any 
                purpose as determined by the laws of that State.
                    ``(B) Restriction on use for matching.--Funds 
                allocated and paid to a coastal State under this 
                subsection may not be used as matching funds for any 
                other Federal program.''.
    (b) Limitation on Application.--This section and the amendment made 
by this section shall not affect the application of section 105 of the 
Gulf of Mexico Energy Security Act of 2006 (title I of division C of 
Public Law 109-432; (43 U.S.C. 1331 note)), as in effect before the 
enactment of this Act, with respect to revenues received by the United 
States under oil and gas leases issued for tracts located in the 
Western and Central Gulf of Mexico Outer Continental Shelf Planning 
Areas, including such leases issued on or after the date of the 
enactment of this Act.

                   TITLE V--MISCELLANEOUS PROVISIONS

SEC. 501. POLICIES REGARDING BUYING, BUILDING, AND WORKING FOR AMERICA.

    (a) Congressional Intent.--It is the intent of the Congress that--
            (1) this Act will support a healthy and growing United 
        States domestic energy sector that, in turn, helps to 
        reinvigorate American manufacturing, transportation, and 
        service sectors by employing the vast talents of United States 
        workers to assist in the development of energy from domestic 
        sources; and
            (2) Congress will monitor the deployment of personnel and 
        material onshore and offshore to encourage the development of 
        American technology and manufacturing to enable United States 
        workers to benefit from this Act through good jobs and careers, 
        as well as the establishment of important industrial facilities 
        to support expanded access to American resources.
    (b) Requirement.--The Secretary of the Interior shall when 
possible, and practicable, encourage the use of United States workers 
and equipment manufactured in the United States in all construction 
related to mineral and renewable energy resource development on the 
Outer Continental Shelf under this Act.

SEC. 502. REGULATIONS.

    Section 30(a) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1356(a)) is amended by striking ``shall issue regulations which'' and 
inserting ``shall issue regulations that shall be supplemental to, 
complementary with, and under no circumstances a substitution for the 
provisions of the Constitution and laws of the United States extended 
to the subsoil and seabed of the outer Continental Shelf by section 
4(a)(1), except insofar as such laws would otherwise apply to 
individuals who have extraordinary ability in the sciences, arts, 
education, or business, which has been demonstrated by sustained 
national or international acclaim, and that''.
                                                 Union Calendar No. 275

112th CONGRESS

  2d Session

                               H. R. 3410

                          [Report No. 112-395]

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                                 A BILL

 To require the Secretary of the Interior to conduct certain offshore 
oil and gas lease sales, to provide fair and equitable revenue sharing 
for all coastal States, to formulate future offshore energy development 
    plans in areas with the most potential, to generate revenue for 
            American infrastructure, and for other purposes.

_______________________________________________________________________

                            February 9, 2012

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
```