I
107TH CONGRESS
1ST SESSION
H. R. 2475
To provide for the distribution to coastal States and counties of revenues
collected under the Outer Continental Shelf Lands Act.
IN THE HOUSE OF REPRESENTATIVES
JULY 11, 2001
Mr. ROHRABACHER introduced the following bill; which was referred to the
Committee on Resources
A BILL
To provide for the distribution to coastal States and counties
of revenues collected under the Outer Continental Shelf
Lands Act.
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 ‘‘Fair Disbursement of
Offshore Oil Revenue Act of 2001’’.
SEC. 2. FINDINGS.
The Congress finds that—
(1) the demand for energy in the United States
is increasing and will continue to increase for the
foreseeable future;
under section 6, with jurisdiction over lands along
the coast line;
(3) the term ‘‘coast line’’ has the meaning given
such term under the Submerged Lands Act (43
U.S.C. 1301 et seq.);
(4) the term ‘‘Outer Continental Shelf’’ has the
meaning given the term ‘‘outer Continental Shelf’’
under the Outer Continental Shelf Lands Act (43
U.S.C. 1331 et seq.);
(5) the term ‘‘Secretary’’ means the Secretary
of the Interior; and
(6) the term ‘‘revenues’’ means all bonuses,
rents, royalties, and other moneys collected under
the Outer Continental Shelf Lands Act (43 U.S.C.
1331 et seq.), and interest thereon.
SEC. 4. COASTAL COMMUNITIES OUTER CONTINENTAL
SHELF RECEIPT FUND.
(a) ESTABLISHMENT.—There is established an inter-
est bearing account in the Treasury of the United States
to be known as the Coastal Communities Outer Conti-
nental Shelf Receipt Fund (hereafter in this Act referred
to as ‘‘the Fund’’).
(b) PAYMENTS TO FUND.—Beginning in fiscal year
2002, the Secretary shall pay into the Fund all revenues
described in subsection (c) that are attributable to an
Outer Continental Shelf lease, any part of which is within
200 geographical miles of the coast line. The Secretary
may adjust amounts in the Fund at any time to account
for overpayments, underpayments, and errors.
(c) NEW REVENUES.—Subsection (b) shall apply only
to—
(1) bonus revenues under a lease if no bonus
revenues have been received by the Secretary under
that lease before January 1, 2001;
(2) rent revenues under a lease if no rent reve-
nues have been received by the Secretary under that
lease before January 1, 2001;
(3) royalty revenues under a lease if no royalty
revenues have been received by the Secretary under
that lease before January 1, 2001; and
(4) other revenues under a lease if the lease
was issued on or after January 1, 2001.
SEC. 5. DISPOSITION OF FUND.
(a) STATE SHARE.—(1) Six months after the end of
fiscal year 2002, and annually thereafter, the Secretary
shall pay from the Fund to each coastal State one-half
of such revenues paid into the Fund with respect to the
fiscal year most recently completed, and any interest
earned thereon, as may be attributable to that State.
(2) In order to determine to which State revenues are
attributable for purposes of this Act, the Secretary shall
delimit the lateral boundaries between the coastal States
to a point 200 geographic miles seaward of the coast line.
Such boundaries shall be set according to the following
principles, listed in order of the priority of their applica-
tion:
(A) Any judicial decrees or interstate compacts
delimiting lateral offshore boundaries between coast-
al States.
(B) Principles of domestic and international law
governing the delimitation of lateral offshore bound-
aries.
(C) The desirability of following existing lease
boundaries and block lines on the Secretary’s official
protraction diagrams.
(3) Each coastal State, before receiving funds under
this subsection, shall annually enact the necessary legisla-
tion to provide any State permits required for onshore fa-
cilities needed to support offshore oil or gas development
or production in the area adjacent to that coastal State.
If a State fails to enact such legislation, the funds attrib-
utable to that State shall not be disbursed, and the Sec-
retary shall take into consideration that failure before of-
fering any additional leases for sale in the offshore area
adjacent to that State.
(b) COASTAL COUNTY SHARE.—(1) At the same time
that the Secretary pays revenues to coastal States under
subsection (a), the Secretary shall pay to coastal counties
within that State the remaining one-half of the revenues,
and any interest earned on those revenues, in the Fund
for that fiscal year attributable to that State.
(2) In order to determine to which coastal county rev-
enues are attributable for purposes of this Act, the Sec-
retary shall delimit the lateral boundaries between the
coastal counties to a point 200 geographic miles seaward
of the coast line. Such boundaries shall be set according
to the following principles, listed in order of the priority
of their application:
(A) Existing boundaries between coastal coun-
ties with valid supporting legal authority.
(B) The desirability of following existing lease
boundaries and block lines on the Secretary’s official
protraction diagrams.
(C) The principle that, to the extent consistent
with subparagraphs (A) and (B), the size of the
coastal county’s adjacent offshore area, as a percent-
age of all of that State’s adjacent offshore areas,
shall be based on a formula giving equal weight to—
(i) the coastal county’s coast line as a per-
centage of the State’s coast line, calculated
using the same large-scale charts of the Na-
tional Ocean Service that are used to delimit
the territorial sea under international law; and
(ii) the coastal county’s population as a
percentage of the population of all coastal coun-
ties in the State, calculated by the Secretary
using the best available national census data.
(3) Each coastal county, before receiving funds under
this subsection, shall annually enact by county statute or
ordinance the necessary legislation to provide the local
permits required for onshore facilities needed to support
offshore oil or gas development or production in the area
adjacent to that coastal county, and the necessary legisla-
tion to expend such funds. If a county fails to enact such
legislation, the funds attributable to that county shall not
be disbursed, and the Secretary shall take into consider-
ation that failure before offering any additional leases for
sale in the offshore area adjacent to that county.
(c) USE OF FUNDS BY STATES.—Each coastal State
shall use funds received pursuant to subsection (a)—
(1) to pay for the administrative costs the State
incurs in the leasing and permitting process as spec-
ified in the Outer Continental Shelf Lands Act;
(2) for such environmental and natural resource
projects as the State determines; or
(3) for such educational projects as the State
determines.
(d) COUNTY DISTRIBUTION OF FUNDS.—Each coast-
al county shall develop a formula to allocate at least two-
thirds of the funds received pursuant to subsection (b) to
local communities within its jurisdiction based on the
proximity of these communities to the coast, except that
funds shall be withheld from communities that the Sec-
retary determines have failed to issue permits required for
onshore facilities needed to support offshore oil or gas de-
velopment or production in the area adjacent to that
coastal county.
SEC. 6. DESIGNATION OF COASTAL COUNTIES.
For the purposes of this Act, the Secretary, after con-
sultation with the Governor of each coastal State, shall
determine which counties, parishes, boroughs, tribal gov-
ernments, or other units of general government imme-
diately below the level of State government shall be des-
ignated as coastal counties.
SEC. 7. LIMITATIONS ON APPLICABILITY OF BOUNDARIES.
The boundaries and areas delimited under section 5
are solely for the purposes of this Act.
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