I 
110TH CONGRESS 
1ST SESSION H. R. 2784 
To greatly enhance the Nation’s environmental, energy, economic, and na-
tional security by terminating long-standing Federal prohibitions on the 
domestic production of abundant offshore supplies of natural gas, to 
dedicate fixed percentages of the resultant royalties for environmental 
restoration projects, renewable energy and carbon sequestration research, 
and weatherization and energy assistance for those in need, and to 
share a portion of such royalties with producing States, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 20, 2007 
Mr. PETERSON of Pennsylvania (for himself, Mr. ABERCROMBIE, Mrs. DRAKE, 
Mr. NUNES, Mr. EDWARDS, and Mr. MELANCON) introduced the fol-
lowing bill; which was referred to the Committee on Natural Resources, 
and in addition to the Committees on Rules and Budget, for a period to 
be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To greatly enhance the Nation’s environmental, energy, eco-
nomic, and national security by terminating long-stand-
ing Federal prohibitions on the domestic production of 
abundant offshore supplies of natural gas, to dedicate 
fixed percentages of the resultant royalties for environ-
mental restoration projects, renewable energy and carbon 
sequestration research, and weatherization and energy 
assistance for those in need, and to share a portion 
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of such royalties with producing States, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘National Environment 
and Energy Development Act’’. 
SEC. 2. TERMINATION OF PROHIBITIONS ON EXPENDI-
TURES FOR, AND WITHDRAWALS FROM, OFF-
SHORE GAS LEASING. 
(a) PROHIBITIONS ON EXPENDITURES.—All provi-
sions of Federal law that prohibit the expenditure of ap-
propriated funds to conduct natural gas leasing and 
preleasing activities for any area of the Outer Continental 
Shelf shall have no force or effect with respect to such 
activities. 
(b) REVOCATION WITHDRAWALS.—All withdrawals 
of Federal submerged lands of the Outer Continental Shelf 
from leasing, including withdrawals by the President 
under the authority of section 12(a) of the Outer Conti-
nental 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 exploration for, and development and 
production of, natural gas. 
(c) PROHIBITIONS AND WITHDRAWALS FOR OIL NOT 
AFFECTED.—This section does not affect— 
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(1) any prohibition on the expenditure of appro-
priated funds to conduct oil leasing or preleasing ac-
tivities; and 
(2) any withdrawal of Federal submerged lands 
from leasing for exploration for, and development 
and production of, oil. 
SEC. 3. OUTER CONTINENTAL SHELF NATURAL GAS LEAS-
ING PROGRAM. 
The Outer Continental Shelf Lands Act (43 U.S.C. 
1331 et seq.) is amended by inserting after section 9 the 
following: 
‘‘SEC. 10. MORATORIA AREA AND STATE APPROVAL RE-
QUIREMENT WITH RESPECT TO NATURAL 
GAS LEASING. 
‘‘(a) BUFFER ZONE.—The Secretary may not grant 
any natural gas lease for any area of the outer Continental 
Shelf that is located within 25 miles of the coastline of 
a State. 
‘‘(b) STATE APPROVAL REQUIREMENT.— 
‘‘(1) IN
GENERAL.—The Secretary may not 
issue any lease authorizing exploration for, or devel-
opment of, natural gas in any area of the outer Con-
tinental Shelf that is located within 50 miles of the 
coastline of a State unless the State has enacted a 
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law approving of the issuance of such leases by the 
Secretary. 
‘‘(2) STATE APPROVAL PERMANENT.—Repeal of 
such a law by a State shall have no effect for pur-
poses of paragraph (1). 
‘‘(c) STATE DISAPPROVAL AUTHORITY.— 
‘‘(1) IN
GENERAL.—The Secretary may not 
issue any lease authorizing exploration for, or devel-
opment of, natural gas in any area of the outer Con-
tinental Shelf that is located more than 50 miles and 
less than 100 miles from the coastline of a State if 
the State has enacted a law disapproving of the 
issuance of such leases by the Secretary. 
‘‘(2) REQUIREMENTS FOR STATE LAW.—A law 
enacted by a State for purposes of paragraph (1)— 
‘‘(A) shall have no force or effect for pur-
poses of paragraph (1) unless first enacted by 
the State within the one-year period beginning 
on the date of the enactment of the National 
Environment and Energy Development Act; and 
‘‘(B) shall have no force or effect for pur-
poses of paragraph (1) after the end of the 2- 
year period beginning on the date it first takes 
effect, unless the State, in the 2-year period 
preceding the application of the law for pur-
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poses of paragraph (1), enacted legislation ex-
tending the effectiveness of the law.’’. 
SEC. 4. SHARING OF REVENUES. 
(a) IN GENERAL.—Section 8(g) of the Outer Conti-
nental Shelf Lands Act (43 U.S.C. 1337(g)) is amended— 
(1) in paragraph (2) by striking ‘‘Notwith-
standing’’ and inserting ‘‘Except as provided in 
paragraph (6), and notwithstanding’’; 
(2) by redesignating paragraphs (6) and (7) as 
paragraphs (8) and (9); and 
(3) by inserting after paragraph (5) the fol-
lowing: 
‘‘(6) BONUS
BIDS
AND
ROYALTIES
UNDER 
QUALIFIED GAS LEASES.— 
‘‘(A) NEW GAS LEASES.—Of amounts re-
ceived by the United States as bonus bids and 
royalties under any qualified gas lease on sub-
merged lands that are located within the sea-
ward boundaries of a State established under 
section 4(a)(2)(A)— 
‘‘(i) 25 percent shall be deposited in 
the general fund of the Treasury; 
‘‘(ii) 37.5 percent shall be paid to the 
States that are producing States with re-
spect to those submerged lands; 
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‘‘(iii) 8.0 percent shall be deposited in 
the Energy Efficiency and Renewables Re-
serve established by paragraph (7); 
‘‘(iv) 8.0 percent shall be deposited in 
the Carbon Capture and Sequestration Re-
serve established by paragraph (7); 
‘‘(v) 5.0 percent shall be deposited in 
the Chesapeake Bay Restoration Reserve 
established by paragraph (7); 
‘‘(vi) 5.0 percent shall be deposited in 
the Great Lakes Restoration Reserve es-
tablished by paragraph (7); 
‘‘(vii) 3.0 percent shall be deposited in 
the Everglades Restoration Reserve estab-
lished by paragraph (7); 
‘‘(viii) 3.0 percent shall be deposited 
in the Colorado River Basin Restoration 
Reserve established by paragraph (7); 
‘‘(ix) 3.0 percent shall be deposited in 
the San Francisco Bay Restoration Re-
serve established by paragraph (7); and 
‘‘(x) 2.5 percent shall be available, 
half to the Secretary of Health and 
Human Services for carrying out the Low- 
Income Home Energy Assistance Act of 
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