tion’s Offshore Waters Act of 2008’’ or the ‘‘DRILL 
NOW Act of 2008’’. 
SEC. 2. TERMINATION OF LAWS PROHIBITING THE SPEND-
ING OF APPROPRIATED FUNDS FOR OUTER 
CONTINENTAL SHELF LEASING ACTIVITIES. 
All provisions of existing Federal law prohibiting the 
spending of appropriated funds to conduct oil and natural 
gas leasing and preleasing activities for any area of the 
Outer Continental Shelf shall have no force or effect. 
SEC. 3. REVOCATION OF EXISTING PRESIDENTIAL WITH-
DRAWALS. 
All withdrawals of Federal submerged lands of the 
Outer Continental Shelf from leasing, including with-
drawals by the President under the authority of section 
12(a) of the Outer Continental Shelf Lands Act (43 
U.S.C. 1341(a)), are hereby revoked and are no longer 
in effect with respect to the leasing of areas for explo-
ration for, and development and production of, oil, and 
natural gas. 
SEC. 4. REVOCATION OF EXISTING PRESIDENTIAL AUTHOR-
ITY. 
All authorities given to the President with respect to 
the leasing of Federal submerged lands of the Outer Con-
tinental Shelf, given under section 12(a) of the Outer Con-
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tinental Shelf Lands Act (43 U.S.C. 1341(a)), are hereby 
revoked, except in the interest of national security. 
SEC. 5. AVAILABILITY OF CERTAIN AREAS FOR LEASING. 
Section 8 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1337) is amended by adding at the end the 
following: 
‘‘(q) AVAILABILITY OF CERTAIN AREAS FOR LEAS-
ING.— 
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) GOVERNOR.—The term ‘Governor’ 
means the Governor of a State. 
‘‘(B) QUALIFIED
REVENUES.—The term 
‘qualified revenues’ means all rentals, royalties, 
bonus bids, and other sums due and payable to 
the United States from leases entered into on 
or after the date of enactment of this Act for 
natural gas exploration and extraction activities 
authorized by the Secretary under this sub-
section. 
‘‘(2) PETITION.— 
‘‘(A) IN
GENERAL.—The Governor may 
submit to the Secretary a petition requesting 
that the Secretary issue leases authorizing the 
conduct of oil and natural gas exploration and 
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extraction activities in any area that is at least 
50 miles beyond the coastal zone of the State. 
‘‘(B) CONTENTS.—In any petition under 
subparagraph (A), the Governor shall include a 
detailed plan of the proposed exploration and 
extraction activities, as applicable. 
‘‘(3) ACTION BY SECRETARY.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (D), as soon as practicable after the date 
of receipt of a petition under paragraph (2), the 
Secretary shall approve or deny the petition. 
‘‘(B) REQUIREMENTS
FOR
EXPLORATION 
AND EXTRACTION.—The Secretary shall not ap-
prove a petition submitted under paragraph 
(2)(A) unless the State enacts legislation sup-
porting exploration and extraction of oil and 
natural gas in the coastal zone of the State. 
‘‘(C) CONSISTENCY WITH LEGISLATION.— 
The plan provided in the petition under para-
graph (2)(B) shall be consistent with the legis-
lation described in subparagraph (B) as appli-
cable. 
‘‘(D) CONFLICTS
WITH
MILITARY
OPER-
ATIONS
AND
NATIONAL
SECURITY.—The Sec-
retary shall not approve a petition for a drilling 
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activity under this paragraph if the drilling ac-
tivity would conflict with any military operation 
or national security, as determined by the 
President. 
‘‘(4) DISPOSITION
OF
REVENUES.—Notwith-
standing section 9, for each applicable fiscal year, 
the Secretary of the Treasury shall deposit— 
‘‘(A) 25 percent of qualified revenues in a 
Clean and Alternative Energy Fund in the 
Treasury, which shall be established by the Sec-
retary; 
‘‘(B) 25 percent of qualified revenues in 
the general fund of the Treasury; 
‘‘(C) 37.5 percent of qualified revenues in 
a special account in the Treasury from which 
the Secretary shall disburse to the State; and 
‘‘(D) 6.25 percent to provide financial as-
sistance to States in accordance with section 6 
of the Land and Water Conservation Fund Act 
of 1965 (16 U.S.C. 460l–8), which shall be con-
sidered income to the Land and Water Con-
servation Fund for purposes of section 2 of that 
Act (16 U.S.C. 460l–5); and 
‘‘(E) 6.25 percent to a reserve fund to be 
used to mitigate for any environmental damage 
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that occurs as a result of extraction activities 
authorized under this subsection, regardless of 
whether the damage is— 
‘‘(i) reasonably foreseeable; or 
‘‘(ii) caused by negligence, natural 
disasters, or other acts. 
‘‘(5) EXISTING LEASES.—Any funds that would 
be received by the United States as royalties under 
any Federal oil and gas lease of an area on the 
outer Continental Shelf within 50 miles of the coast-
al zone of the State of Texas, Louisiana, Mississippi, 
or Alabama that is in effect on the date of enact-
ment of the DRILL NOW Act of 2008 shall be paid 
to that State if the State enacts a statute that es-
tablishes a plan for expenditure of those funds.’’. 
Æ 
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