(1) The term ‘‘Act’’ means the Outer Conti-
nental Shelf Lands Act (43 U.S.C. 1331 et seq.). 
(2) The term ‘‘coastal State’’ has the same 
meaning that the term ‘‘coastal state’’ has in the 
Coastal Zone Management Act of 1972 (16 U.S.C. 
1451 et seq.). 
(3) The term ‘‘DRES Fund’’ means the Deficit 
Reduction Energy Security Fund. 
(4) The term ‘‘COSH Fund’’ means the Coastal 
and Ocean Sustainability and Health Fund estab-
lished by section 102. 
(5) The term ‘‘program’’ means a Final Outer 
Continental Shelf Oil and Gas Leasing Program 
issued under section 18 of the Act (43 U.S.C. 1344). 
(6) The term ‘‘Secretary’’ means the Secretary 
of Commerce, acting through the National Oceanic 
and Atmospheric Administration. 
(7) Other terms shall have the same meaning 
such terms have under the Act. 
TITLE I—DEFICIT REDUCTION 
ENERGY SECURITY 
SEC. 101. DEFICIT REDUCTION ACREAGE. 
(a) IN GENERAL.—The Secretary of the Interior 
shall, during the period covered by the Proposed Outer 
Continental Shelf Oil and Gas Leasing Program for 2012– 
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2017 issued by the Department of the Interior, and in 
addition to the acreage proposed to be leased under such 
program, conduct oil and gas lease sales under the Outer 
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) for 
additional acreage of the outer Continental Shelf (as that 
term is used in that Act) that total 10 percent of the acre-
age proposed to be leased under such program. The acre-
age for which lease sales are required under this section 
shall be known as the Deficit Reduction Acreage. 
(b) ANNUAL REQUIREMENT.—In each year in such 
period, the Secretary shall lease 20 percent of the Deficit 
Reduction Acreage. 
SEC. 102. DEFICIT REDUCTION ENERGY SECURITY FUND 
AND COASTAL AND OCEAN SUSTAINABILITY 
AND HEALTH FUND. 
(a) 
DEFICIT
REDUCTION
ENERGY
SECURITY 
FUND.— 
(1) IN GENERAL.—There is hereby established 
in the Treasury a separate account to be known as 
the Deficit Reduction Energy Security Fund, con-
sisting of such amounts as may be appropriated or 
credited to it. 
(2) DEPOSIT OF DEFICIT REDUCTION ACREAGE 
LEASE REVENUES.— 
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(A) IN GENERAL.—Except as provided in 
subparagraph (C), all rentals, royalties, bonus 
bids, and other sums due and payable to the 
United States under Deficit Reduction Acreage 
lease sales during the 15-fiscal-year period be-
ginning with the first fiscal year in which such 
sums are received by the United States shall be 
deposited in the DRES fund. 
(B) HOLDING
OF
OIL
AND
GAS
REVE-
NUES.—Any amount deposited into the DRES 
Fund under subparagraph (A)— 
(i) shall remain in DRES Fund and 
be invested in accordance with paragraph 
(2) until the end of the second full fiscal 
year after the amount is deposited into the 
DRES Fund; and 
(ii) upon the end of such fiscal year, 
shall be transferred to the general fund 
and applied solely to reduce the annual 
Federal budget deficit. 
(C) PAYMENTS
TO
STATES
NOT
AF-
FECTED.—This Act shall not affect any require-
ment under other law to pay to States amounts 
received by the United States as such royalties, 
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bonus bids, and other sums due and payable to 
the United States. 
(3) INVESTMENT.— 
(A) IN GENERAL.—Amounts in the DRES 
Fund shall be invested by the Secretary of the 
Treasury in accordance with section 9602 of 
the Internal Revenue Code of 1986. 
(B) INCLUSION
OF
INTEREST
IN
DRES 
FUND.—All interest earned on, and the pro-
ceeds from the sale or redemption of, any obli-
gations held in the DRES Fund— 
(i) shall be credited to and form part 
of the DRES Fund; and 
(ii) shall remain in the DRES Fund 
until transferred under paragraph (5), 
without regard to paragraph (2)(B)(ii). 
(4) AVAILABILITY
OF
PROCEEDS
OF
DEPOS-
ITS.—Amounts credited to the DRES Fund under 
paragraph (3)(B) in excess of the amounts deposited 
into the DRES Fund under paragraph (2) shall— 
(A) be available for expenditure, without 
further appropriation, solely for the purpose of 
and activities eligible under this Act; and 
(B) remain available until expended, with-
out fiscal year limitation. 
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(5) TRANSFER OF INTEREST TO COASTAL AND 
OCEAN SUSTAINABILITY AND HEALTH FUND.—Upon 
the transfer of an amount under paragraph 
(2)(B)(ii), the interest earned on such amount shall 
be transferred to the Coastal and Ocean Sustain-
ability and Health Fund established under sub-
section (b). 
(b) COASTAL
AND OCEAN SUSTAINABILITY
AND 
HEALTH FUND.— 
(1) IN GENERAL.—There is hereby established 
in the Treasury a separate account to be known as 
the Coastal and Ocean Sustainability and Health 
Fund, consisting of such amounts of interest as are 
transferred to it under subsection (a)(5). 
(2) AVAILABILITY.—Of the amounts trans-
ferred to the COSH Fund under subsection (a)(5) 
each fiscal year— 
(A) not more than 5 percent shall be avail-
able to the Secretary of Commerce to admin-
ister this title; and 
(B) the remainder shall be available to the 
Secretary of Commerce until expended and 
without fiscal year limitation, for use for— 
(i) the Coastal and Ocean Disaster 
Grant Program under section 102; and 
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(ii) the National Grant Program 
under section 103. 
(3) ALLOCATION OF FUNDING FOR GRANT PRO-
GRAMS.—Of amounts available under paragraph 
(2)(B), the Secretary of Commerce shall allocate— 
(A) 40 percent for the Coastal and Ocean 
Disaster Grant Program under section 103, of 
which— 
(i) 50 percent shall be allocated equal-
ly among impacted coastal States; 
(ii) 20 percent shall be allocated based 
on intensity of impact of disasters on im-
pacted coastal States; 
(iii) 15 percent shall be allocated 
based on tidal shorelines of impacted 
coastal States; and 
(iv) 15 percent of the funds shall be 
allocated based on the coastal population 
of impacted coastal States. 
(B) 60 percent for the National Grant 
Program for Coastal and Ocean Sustainability 
and Health under section 104, of which— 
(i) 50 percent shall be allocated to 
coastal States; 
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