89–006 

1https://www.boem.gov/Outer-Continental-Shelf/; https://nauticalcharts.noaa.gov/data/us-maritime-limits-and-boundaries.html. 

115TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 115–1029 

OFFSHORE WIND FOR TERRITORIES ACT 

NOVEMBER 16, 2018.—Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 

Mr. BISHOP of Utah, from the Committee on Natural Resources, 

submitted the following 

R E P O R T 

[To accompany H.R. 6665] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Natural Resources, to whom was referred the 

bill (H.R. 6665) to amend the Outer Continental Shelf Lands Act 

to apply to territories of the United States, to establish offshore 

wind lease sale requirements, to provide dedicated funding for coral 

reef conservation, and for other purposes, having considered the 

same, report favorably thereon without amendment and recommend that the bill do pass. 

PURPOSE OF THE BILL

The purpose of H.R. 6665 is to amend the Outer Continental 

Shelf Lands Act to apply to territories of the United States, to establish offshore wind lease sale requirements, and to provide dedicated funding for coral reef conservation. 

BACKGROUND AND NEED FOR LEGISLATION

Wind energy development on the U.S. Outer Continental Shelf 

(OCS) is a relatively new phenomenon, with a regulatory and statutory structure only being contemplated in the past two decades. 

The OCS are the submerged lands, subsoil and seabed that stretch 

from the low water mark of the shore to at least 200 miles seaward 

and in some cases beyond.1 Under the federal Outer Continental 

Shelf Lands Act (OCSLA, 43 U.S.C. 1331 et seq.), the federal govVerDate Sep 11 2014 06:19 Nov 18, 2018 Jkt 089006 PO 00000 Frm 00001 Fmt 6659 Sfmt 6602 E:\HR\OC\HR1029.XXX HR1029
2 

2 Id. Texas and the Gulf of Mexico coast of Florida have jurisdiction that extends 9 nautical 

miles seaward. 3 U.S.C. 403. 4See Public Law 109–432. 

5These include American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and the U.S. 

Virgin Islands. 6See U.S. Energy Information Administration-Guam, September 21, 2017, available at https:// 

www.eia.gov/state/analysis.php?sid=GQ. 7See Guam Bill 166, March 2008. 8See Bureau of Ocean Energy Management, Regulatory Roadmap, available at (https:// 

www.boem.gov/Regulatory-Roadmap/) 

ernment regulates the OCS outside of State jurisdiction, which is 

most cases is 3 nautical miles from shore.2

Although frameworks had long been established for onshore federal mineral leasing, and for oil and natural gas activities on the 

OCS, it was not until 2005 that Congress clarified the process for 

OCS renewable energy with the passage of the Energy Policy Act 

of 2005 (EPAct05, Public Law 109–58). Prior to EPAct05, the Army 

Corps of Engineers (Corps) generally led the offshore wind leasing 

process, as the projects were considered obstructions in ‘‘navigable 

waters of the United States.’’ 3 EPAct05 clarified this uncertainty 

by amending the OCSLA to provide the Secretary of the Interior 

the authority to lease offshore lands for the purposes of renewable 

energy development. Furthermore, EPAct05 preserved and clarified 

the responsibilities of other federal agencies, such as the Corps, 

who operate on the OCS. 

While several coastal States have seen the benefits envisioned 

under the OCSLA,4 these benefits have not spread to the territories. Currently, OCSLA does not apply to the territories and possessions of the United States.5 Therefore, the Department of the 

Interior (DOI) cannot lease or otherwise manage the federal OCS 

acreage offshore these islands for the purposes of development. 

The inapplicability of OCSLA to the U.S. territories, as well as 

their distance from the mainland, have hindered the territories’ 

abilities to tap into the mainland’s large-scale electricity grids. 

Many are reliant on imported petroleum products. For instance, 

Guam’s per capita petroleum consumption is nearly twice that in 

the continental U.S.6 Moreover, the devastating hurricanes experienced by Puerto Rico again reiterated the need for modernization 

and diversification of fuel sources. These islands are in dire need 

of energy solutions. 

Several of the territories are attempting to address the energy 

crisis they currently face. In 2008, Guam enacted a renewable portfolio goal of sourcing 8% of its power from renewable generation by 

2020.7 Since that time, several major solar initiatives have taken 

off. Additionally, Guam has considerable offshore wind potential, 

and so long as the turbines are engineered to withstand typhoon 

conditions and earthquakes, offshore wind could prove a reliable 

energy resource. However, the long-term economic feasibility of a 

commercial offshore wind project is still unknown. 

A predominant concern about offshore wind energy leasing is 

that development may directly conflict with existing uses and activities. Throughout the pre-leasing and leasing process for offshore 

areas of the mainland U.S., DOI attempts to engage with a variety 

of coastal and ocean users, including local tourism boards, coastal 

mayors, fisheries, and shippers.8 Yet, despite this outreach, many 

3 

9See Military INSTALLATIONS, Joint Region Marianas_Naval Base Guam, Guam, available at http://www.militaryinstallations.dod.mil/MOS/f?p=132:CONTENT:0::NO::P4_INST_ID%2CP4_ INST_TYPE:3025%2CINSTALLATION. 10See Michelle Froese, Study shows offshore wind would have no impact on Maryland tourism, Oct. 11, 2017, available at https://www.windpowerengineering.com/business-news-projects/ 

study-shows-offshore-wind-no-impact-maryland-tourism/ (‘‘. . . some observers have expressed 

concern that the wind farms could impact tourism’’). 

offshore stakeholders maintain that additional activities will impair or displace existing offshore interests. 

Fishermen are among the most concerned, as their livelihood directly depends on their ability to access large swaths of the sea. 

Importantly, the Department of Defense (DOD) is a major, active 

user of the OCS—particularly in the Pacific Theater—and conducts 

training and testing missions in nearly all OCS regions. Guam, for 

instance, is home to several major military installations, and is a 

critical hub for operations in the Pacific.9 Tourism may also be impacted by offshore wind turbines dotting the horizon. In most territories, tourism is a major economic driver. The presence of visible 

offshore wind installations might be considered a threat to the local 

tourism industry.10

Like the offshore areas of the mainland U.S., minimizing and 

mitigating potential conflicts with other ocean users, including 

local and regional stakeholders and the DOD, is essential to the 

successful development and progression of the wind industry off 

the territories. 

H.R. 6665 applies the OCSLA to the submerged lands off American territories and possessions, providing DOI with management 

authority for such offshore acreage. The bill also creates a revenue 

sharing structure, providing 37.5% of the revenues generated to the 

adjacent territory. In addition, 12.5% of the revenues generated are 

deposited into the National Oceanic and Atmospheric Administration’s Coral Reef Conservation Program Fund. 

SECTION-BY-SECTION ANALYSIS OF H.R. 6665 

Section 2. Application of Outer Continental Shelf Lands Act with 

respect to the territories of the United States 

• Amends the application of the Outer Continental Shelf 

Lands Act (OCLSA) to include the territories and possessions 

of the United States 

• Excludes the territories and possessions from inclusion in 

a National OCS Oil and Gas Leasing Program 

Section 3. Disposition of revenues with respect to territories of the 

United States 

• Establishes a revenue sharing program for revenues generated by leasing and development offshore a territory 

• Territories will receive 37.5% of qualifying revenues, consistent with the revenue sharing structure for the Gulf Coast 

States, as established in the Gulf of Mexico Energy Security 

Act (Public Law 109–432) 

• 12.5% of revenues will be deposited into the Coral Reef 

Conservation Fund 

• 50% of revenues generated will be deposited into U.S. 

Treasury 

4 

Section 4. Wind lease sales for areas of outer continental shelf 

• Directs DOI to conduct feasibility studies on offshore wind 

lease sales offshore all territories 

• Should a study determine that a wind lease is feasible, 

DOI is directed to conduct a lease sale 

Section 5. Establishment of Coral Reef Conservation Fund 

• Establishes the Coral Reef Conservation Fund for the purpose of maintaining the health of coral reefs on the U.S. OCS 

• Fund is subject to appropriation 

• Renames existing Coral Reef Conservation Fund established under the Coral Reef Conservation Act of 2000 (16 

U.S.C. 6404) as the ‘‘Coral Reef Public-Private Partnership’’ 

COMMITTEE ACTION

H.R. 6665 was introduced on August 10, 2018, by Congresswoman Madeleine Z. Bordallo (D–GU). The bill was referred to the 

Committee on Natural Resources. On September 5, 2018, the Natural Resources Committee met to consider the bill. No amendments 

were offered, and the bill was ordered favorably reported to the 

House of Representatives by unanimous consent. 

COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of rule XIII 

of the Rules of the House of Representatives, the Committee on 

Natural Resources’ oversight findings and recommendations are reflected in the body of this report. 

COMPLIANCE WITH HOUSE RULE XIII AND CONGRESSIONAL BUDGET

ACT

1. Cost of Legislation and the Congressional Budget Act. With respect to the requirements of clause 3(c)(2) and (3) of rule XIII of 

the Rules of the House of Representatives and sections 308(a) and 

402 of the Congressional Budget Act of 1974, the Committee has 

received the following estimate for the bill from the Director of the 

Congressional Budget Office: 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, November 14, 2018. 

Hon. ROB BISHOP, Chairman, Committee on Natural Resources, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 6665, the Offshore Wind 

for Territories Act. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Kathleen Gramp. 

Sincerely, 

KEITH HALL, Director. 

Enclosure. 

5 

H.R. 6665—Offshore Wind for Territories Act 

Summary: H.R. 6665 would authorize the Department of the Interior (DOI) to auction leases for developing energy and mineral resources off the coast of certain U.S. territories and possessions, 

subject to certain conditions. In particular, the bill would direct 

DOI to study the potential for developing offshore wind resources 

within the territorial jurisdiction of American Samoa, Guam, the 

Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands, and to offer leases in areas where such development is feasible. Under the bill, 37.5 percent of the income from such leases 

could be spent without further appropriation for payments to the 

affected jurisdictions. 

CBO estimates that implementing H.R. 6665 would reduce net 

direct spending by $14 million over the 2019–2028 period, primarily as a result of new leasing activity for offshore wind resources. In addition, CBO estimates that it would cost $3 million 

over the 2019–2023 period to complete the studies and planning activities required by the bill; any spending would be subject to the 

availability of appropriated funds. 

Because enacting H.R. 6665 would affect direct spending; therefore, pay-as-you-go procedures apply. The bill would not affect revenues. 

CBO estimates that enacting H.R. 6665 would not increase net 

direct spending or on-budget deficits in any of the four consecutive 

10-year periods beginning in 2029. 

H.R. 6665 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) 

and would benefit U.S. territories through the sharing of royalties 

generated from offshore wind leases. 

Estimated cost to the Federal Government: The estimated budgetary effect of H.R. 6665 is shown in the following table. The costs 

of the legislation fall within budget functions 300 (natural resources and the environment) and 950 (undistributed offsetting receipts). 

By fiscal year, in millions of dollars—— 

2020 2021 2022 2023 2024 2025 2026 2027 2028 2019– 

2028

2019– 

2023 

DECREASES IN DIRECT SPENDING 

Estimated Budget Authority ...................... 0 0 0 0 0 ¥4 ¥3 ¥3 ¥3 ¥3 0 ¥14 

Estimated Outlays ..................................... 0 0 0 0 0 ¥4 ¥3 ¥3 ¥3 ¥3 0 ¥14 

INCREASES IN SPENDING SUBJECT TO APPROPRIATION 

Estimated Authorization Level .................. 0 1 1 1 1 1 1 1 1 1 3 9 

Estimated Outlays ..................................... 0 1 1 1 1 1 1 1 1 1 3 9 

Components may not sum to totals because of rounding. 

Basis of estimate: For this estimate, CBO assumes that H.R. 

6665 will be enacted by the end of 2018. Estimated spending is 

based on historical patterns. 

Direct spending 

Based on the prices paid for leases of offshore wind resources in 

the Atlantic and the characteristics of the electricity markets in the 

Caribbean and the South Pacific, CBO estimates that implementing H.R. 6665 would increase net offsetting receipts (which 

6 

1 According to the Energy Information Administration, the two largest markets, Puerto Rico 

and Guam, used 20 billion and 2 billion kilowatt-hours (kWh) in 2015, respectively. By comparison, the annual resource potential for individual leases in the Atlantic ranges from about 3 billion kWh to almost 9 billion kWh each, depending on the acreage of the lease. The estimated 

kilowatt-hour potential assumes an average of 3 megawatts of capacity per square kilometer and 

an average capacity factor of 45 percent. See Walt Musial, Principal Engineer and Manager of 

Offshore Wind, National Renewable Energy Laboratory, ‘‘Offshore Wind Energy Facility Characteristics,’’ (presentation at BOEM’s Offshore Wind and Maritime Industry Knowledge Exchange 

Workshop, March 5, 2018), https://go.usa.gov/xPfng (PDF, 2.1 MB). For data on electricity production for each jurisdiction, see Energy Information Administration, ‘‘U.S. States, State Profiles 

and Estimates: U.S. Overview’’ (accessed November 13, 2018), www.eia.gov/state/?sid=US. For 

more information on wind resources in the jurisdictions, see Frank Oteri and others, 2017 State 

of Wind Development in the United States by Region, National Renewable Energy Laboratory, 

NREL/TP–5000–70738 (April 2018), www.nrel.gov/docs/fy18osti/70738.pdf (6.3 MB). 2See, for example, World Bank, Precautionary Management of Deep Sea Mining Potential in 

Pacific Island Countries (draft for discussion, accessed November 13, 2018). http://tinyurl.com/ 

y9a81q18 (PDF, 3.4 MB). 

are recorded as reductions in direct spending) by $14 million over 

the 2019–2028 period. That estimate reflects estimated gross proceeds of $20 million and direct spending of $6 million for payments 

to the affected jurisdictions. 

Since 2013, DOI has conducted seven auctions of leases for offshore wind resources along the Atlantic coast, generating offsetting 

receipts of almost $70 million. Taken together, the 12 existing 

leases cover nearly 1.4 million acres, with individual leases ranging 

in size from less than 70,000 acres to almost 190,000 acres each.1

The prices paid for individual leases also have varied widely, ranging from less than $1 million to $42 million each, which is equivalent to less than $1 per acre to more than $500 per acre. 

Several factors suggest that receipts from auctions in the Caribbean and South Pacific regions may be considerably lower, at least 

for the next few years. For example, technological advances are 

needed to deploy systems that can withstand category 5 hurricane 

strength winds. Similarly, current technologies for producing electricity from offshore wind may not be economically viable for the 

comparatively small markets in these regions.2 On the other hand, 

the cost of conventional fuels in those regions is much higher than 

on the U.S. mainland, which may increase the relative value of offshore wind to utilities or large customers like the Department of 

Defense. 

CBO expects that any such auctions would occur toward the end 

of the 10-year period because of the time needed to resolve such 

technical and economic issues. CBO estimates that few leases 

would be issued by 2028 because of the small size of the electricity 

markets in the Caribbean and South Pacific regions, but that the 

value of those leases would be similar to those paid for leases in 

the Atlantic because of the high cost of other fuel supplies. Thus, 

CBO estimates that gross proceeds would range from less than $1 

million to over $40 million, with a midpoint of $20 million. For this 

estimate, CBO assumes that payments to the affected jurisdictions 

would be made the year after proceeds are collected and would 

total $6 million over the 2019–2028 period. 

Finally, H.R. 6665 would authorize DOI to issue licenses to companies to explore and develop mineral resources other than oil and 

gas in areas within the exclusive economic zone (EEZ) on the OCS 

adjacent to any territory or possession of the United States. Based 

on the available information regarding deep-sea mining opportunities in the South Pacific, CBO estimates that any proceeds from 

issuing licenses for such mining would be negligible over the 2019– 

7 

2028 period. According to the World Bank and others, the FEZs off 

the coast of American Samoa and other territories are relatively 

small and no large nodules of precious metals or minerals have 

been discovered. 

Spending subject to appropriation 

Based on historical trends in spending for similar activities, CBO 

estimates that completing the studies and activities related to leasing off the coast of U.S. territories would cost about $3 million over 

the 2019–2023 period. Most of that spending would be for the technical and environmental assessments of offshore wind and mineral 

development off the coasts of U.S. territories in the Caribbean and 

South Pacific. CBO also estimates that conducting lease sales in 

those areas would cost about $3 million, but expects that such 

spending would occur after 2023. 

Finally, the bill would authorize DOE to deposit 12.5 percent of 

the proceeds in the Coastal Reef Conservation Fund; any spending 

of those amounts would be subject to appropriation. CBO estimates 

that spending from the Coastal Reef Conservation Fund would 

occur after 2023 and total about $2 million over the 2024–2028 period. 

Uncertainty: CBO aims to produce cost estimates that generally 

reflect the middle of a range of the most likely budgetary outcomes 

that would result if the legislation was enacted. The estimated reductions in direct spending resulting from the implementation of 

H.R. 6665 could be higher or lower for several reasons: 

• CBO cannot predict the technical or economic feasibility of 

offshore wind systems in the Caribbean and South Pacific regions over the next 10 years. Proceeds from leasing could be 

higher if electricity from offshore wind systems becomes less 

expensive than alternative supplies but could be lower if current technological and market constraints continue; and 

• CBO cannot predict the amount that companies would be 

willing to pay for leases of offshore wind resources. The prices 

paid for lease off the Atlantic coast have varied widely, reflecting differences in the strategic interests of bidders as well as 

technical and market conditions. 

Pay-As-You-Go Considerations: The Statutory Pay-As-You-Go Act 

of 2010 establishes budget-reporting and enforcement procedures 

for legislation affecting direct spending or revenues. The net 

changes in outlays that are subject to those pay-as-you-go procedures are shown in the following table. 

CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 6665 AS ORDERED REPORTED BY THE 

HOUSE COMMITTEE ON NATURAL RESOURCES ON SEPTEMBER 5, 2018 

By fiscal year, in millions of dollars— 

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2019– 

2023 

2019– 

2028 

NET DECREASE IN THE DEFICIT 

Statutory Pay-As-You-Go Impact ............... 0 0 0 0 0 ¥4 ¥3 ¥3 ¥3 ¥3 0 ¥14 

Increase in long-term direct spending and deficits: CBO estimates that enacting H.R. 6665 would not increase net direct spendVerDate Sep 11 2014 06:19 Nov 18, 2018 Jkt 089006 PO 00000 Frm 00007 Fmt 6659 Sfmt 6602 E:\HR\OC\HR1029.XXX HR1029
8 

ing or on-budget deficits in any of the four consecutive 10-year periods beginning in 2029. 

Mandates: H.R. 6665 contains no intergovernmental or privatesector mandates as defined in UMRA and would benefit U.S. territories through the sharing of royalties generated from offshore 

wind leases. 

Previous CBO estimate: On December 1, 2017, CBO transmitted 

a cost estimate for H.R. 4239, the SECURE American Energy Act, 

as ordered reported by the House Committee on Natural Resources 

on November 8, 2017. Sections 108 and 109 of H.R. 4239 would authorize the leasing of wind resources in similar areas, and the estimates of gross proceeds are similar. However, H.R. 6665 would authorize a larger portion of those proceeds to be spent without further appropriation. Thus, the estimated net decrease in direct 

spending is smaller than estimated for the similar provisions in 

H.R. 4239. Differences in the estimated discretionary cost primarily 

reflect differences between the two bills. 

Estimate prepared by: Federal costs: Kathleen Gramp; Mandates: Jon Sperl. 

Estimate reviewed by: Kim P. Cawley, Chief, Natural and Physical Resources Cost Estimates Unit; H. Samuel Papenfuss, Deputy 

Assistant Director for Budget Analysis. 

2. General Performance Goals and Objectives. As required by 

clause 3(c)(4) of rule XIII, the general performance goal or objective 

of this bill is to amend the Outer Continental Shelf Lands Act to 

apply to territories of the United States, to establish offshore wind 

lease sale requirements, and to provide dedicated funding for coral 

reef conservation. 

EARMARK STATEMENT

This bill does not contain any Congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined under clause 9(e), 

9(f), and 9(g) of rule XXI of the Rules of the House of Representatives. 

COMPLIANCE WITH PUBLIC LAW 104–4 

This bill contains no unfunded mandates. 

COMPLIANCE WITH H. RES. 5 

Directed Rule Making. This bill does not contain any directed 

rule makings. 

Duplication of Existing Programs. This bill does not establish or 

reauthorize a program of the federal government known to be duplicative of another program. Such program was not included in 

any report from the Government Accountability Office to Congress 

pursuant to section 21 of Public Law 111–139 or identified in the 

most recent Catalog of Federal Domestic Assistance published pursuant to the Federal Program Information Act (Public Law 95–220, 

as amended by Public Law 98–169) as relating to other programs. 

PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

This bill is not intended to preempt any State, local or tribal law. 

9 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

and existing law in which no change is proposed is shown in 

roman): 

OUTER CONTINENTAL SHELF LANDS ACT 

* * * * * * * 

SEC. 2. DEFINITIONS.—When used in this Act— 

(a) The term ‘‘outer Continental Shelf’’ means all submerged 

lands lying seaward and outside of the area of lands beneath navigable waters as defined in section 2 of the Submerged Lands Act 

(Public Law 31, Eighty-third Congress, first session), and of which 

the subsoil and seabed appertain to the United States and are subject to its jurisdiction and control or lying within the exclusive economic zone of the United States and the outer Continental Shelf adjacent to any territory or possession of the United States, except that 

such term shall not include any area conveyed by Congress to a territorial government for administration; 

(b) The term ‘‘Secretary’’ means the Secretary of the Interior, except that with respect to functions under this Act transferred to, 

or vested in, the Secretary of Energy or the Federal Energy Regulatory Commission by or pursuant to the Department of Energy Organization Act (42 U.S.C. 7101 et seq.), the term ‘‘Secretary’’ means 

the Secretary of Energy, or the Federal Energy Regulatory Commission, as the case may be; 

(c) The term ‘‘lease’’ means any form of authorization which is 

issued under section 8 or maintained under section 6 of this Act 

and which authorizes exploration for, and development and production of, minerals; 

(d) The term ‘‘person’’ includes, in addition to a natural person, 

an association, a State, a political subdivision of a State, or a private, public, or municipal corporation; 

(e) The term ‘‘coastal zone’’ means the coastal waters (including 

the lands therein and thereunder) and the adjacent shorelands (including the waters therein and thereunder), strongly influenced by 

each other and in proximity to the shorelines of the several coastal 

States, and includes islands, transition and intertidal areas, salt 

marshes, wetlands, and beaches, which zone extends seaward to 

the outer limit of the United States territorial sea and extends inland from the shorelines to the extent necessary to control 

shorelands, the uses of which have a direct and significant impact 

on the coastal waters, and the inward boundaries of which may be 

identified by the several coastal States, pursuant to the authority 

of section 305(b)(1) of the Coastal Zone Management Act of 1972 

(16 U.S.C. 1454(b)(1)); 

(f) The term ‘‘affected State’’ means, with respect to any program, 

plan, lease sale, or other activity, proposed, conducted, or approved 

pursuant to the provisions of this Act, any State— 

(1) the laws of which are declared, pursuant to section 4(a)(2) 

of this Act, to be the law of the United States for the portion 

10 

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, includVerDate Sep 11 2014 06:19 Nov 18, 2018 Jkt 089006 PO 00000 Frm 00010 Fmt 6659 Sfmt 6602 E:\HR\OC\HR1029.XXX HR1029
11 

ing 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 workover 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)); øand¿ 

(q) The term ‘‘minerals’’ includes oil, gas, sulphur, geopressuredgeothermal 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 1976ø.¿; and 

(r) The term ‘‘State’’ includes each territory of the United States. 

* * * * * * * 

SEC. 9. DISPOSITION OF REVENUES.—øAll rentals¿ (a) IN GEN- ERAL.—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; 

12 

(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. 

13 

(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 

14 

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 deVerDate Sep 11 2014 06:19 Nov 18, 2018 Jkt 089006 PO 00000 Frm 00014 Fmt 6659 Sfmt 6602 E:\HR\OC\HR1029.XXX HR1029
15 

partment 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: 

16 

(i) the Committee on Energy and Natural Resources 

of the Senate; 

(ii) the Committee on Natural Resources of the House 

of Representatives; and 

(iii) each of the delegates or resident commissioner to 

the House of Representatives from American Samoa, 

Guam, the Northern Mariana Islands, Puerto Rico, 

and the Virgin Islands of the United States, respectively. 

(E) PUBLIC AVAILABILITY.—The study required under subparagraph (A) and results submitted under subparagraph 

(C) shall be made readily available on a public Government 

internet website. 

(2) CALL FOR INFORMATION AND NOMINATIONS.—The Secretary shall issue a call for information and nominations for 

proposed wind lease sales for areas determined to be feasible 

under the study conducted under paragraph (1). 

(3) CONDITIONAL WIND LEASE SALES.— (A) IN GENERAL.—For each territory, the Secretary shall 

conduct not less than 1 wind lease sale on an area of the 

outer Continental Shelf within the territorial jurisdiction of 

such territory that meets each of the following criteria: 

(i) The study required under paragraph (1)(A) concluded that a wind lease sale on the area is feasible. 

(ii) The Secretary has determined that the call for information has generated sufficient interest for the area. 

(iii) The Secretary has consulted with the Secretary 

of Defense regarding such a sale. 

(iv) The Secretary has consulted with the Governor of 

the territory regarding the suitability of the area for 

wind energy development. 

(B) EXCEPTION.—If no area of the outer Continental Shelf 

within the territorial jurisdiction of a territory meets each 

of the criteria in clauses (i) through (iii) of subparagraph 

(A), the requirement under subparagraph (A) shall not 

apply to such territory. 

CORAL REEF CONSERVATION ACT OF 2000 

* * * * * * * 

TITLE II—CORAL REEF CONSERVATION 

* * * * * * * 

SEC. 205. øCORAL REEF CONSERVATION FUND¿ CORAL REEF PUBLICPRIVATE PARTNERSHIP. 

(a) FUND.—The Administrator may enter into an agreement with 

a nonprofit organization that promotes coral reef conservation authorizing such organization to receive, hold, and administer funds 

received pursuant to this section. The organization shall invest, reinvest, and otherwise administer the funds and maintain such 

funds and any interest or revenues earned in a separate interest 

bearing account, hereafter referred to as the Fund, established by 

such organization solely to support partnerships between the public 

17 

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 øFund¿ separate 

interest bearing account established by the organization under subsection (a). 

(c) REVIEW OF PERFORMANCE.—The Administrator shall conduct 

a continuing review of the grant program administered by an organization under this section. Each review shall include a written assessment concerning the extent to which that organization has implemented the goals and requirements of this section and the national coral reef action strategy under section 203. 

(d) ADMINISTRATION.—Under an agreement entered into pursuant to subsection (a), the Administrator may transfer funds appropriated to carry out this title to an organization. Amounts received 

by an organization under this subsection may be used for matching, in whole or in part, contributions (whether in money, services, 

or property) made to the organization by private persons and State 

and local government agencies. 

* * * * * * * 

SEC. 211. CORAL REEF CONSERVATION FUND. 

(a) ESTABLISHMENT.—There is established in the Treasury the 

Coral Reef Conservation Fund, hereafter referred to as the Fund. 

(b) DEPOSITS.—For each fiscal year, there shall be deposited in 

the Fund the portion of such revenues due and payable to the 

United States under subsection (b)(2) of section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338). 

(c) USES.—Amounts deposited in the Fund under this section and 

appropriated to the Secretary of Commerce under subsection (f) 

shall be used by the Secretary of Commerce to carry out the Coral 

Reef Conservation Act of 2000 (16 U.S.C. 6401 et seq.), with priority 

given to carrying out sections 204 and 206 of such Act (16 U.S.C. 

6403 and 6405). 

(d) AVAILABILITY.—Amounts deposited in the Fund shall remain 

in the Fund until appropriated by Congress. 

(e) REPORTING.—The President shall include with the proposed 

budget for the United States Government submitted to Congress for 

a fiscal year a comprehensive statement of deposits into the Fund 

during the previous fiscal year and estimated requirements during 

the following fiscal year for appropriations from the Fund. 

(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated from the Fund to the Secretary of Commerce, an 

amount equal to the amount deposited in the Fund in the previous 

fiscal year. 

(g) NO LIMITATION.—Appropriations from the Fund pursuant to 

this section may be made without fiscal year limitation. 

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