I 
109TH CONGRESS 
1ST SESSION H. R. 1551
To amend the Outer Continental Shelf Lands Act to provide a domestic 
offshore energy reinvestment program, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 12, 2005
Mr. JINDAL (for himself, Mr. BOUSTANY, Mr. MCCRERY, Mr. BAKER, Mr. 
MELANCON, Mr. JEFFERSON, and Mr. ALEXANDER) introduced the fol-
lowing bill; which was referred to the Committee on Resources 
A BILL 
To amend the Outer Continental Shelf Lands Act to provide 
a domestic offshore energy reinvestment program, 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 ‘‘Domestic Offshore En-
ergy Reinvestment Act of 2005’’. 
SEC. 2. DOMESTIC OFFSHORE ENERGY REINVESTMENT. 
(a) IN GENERAL.—The Outer Continental Shelf 
Lands Act (43 U.S.C. 1331 et seq.) is amended by adding 
at the end the following:
‘‘SEC. 32. DOMESTIC OFFSHORE ENERGY REINVESTMENT 
PROGRAM. 
‘‘(a) In this section: 
‘‘(1) The term ‘approved plan’ means a secure 
energy reinvestment plan approved by the Secretary 
under this section. 
‘‘(2) The term ‘coastal energy State’ means a 
coastal State off the coastline of which, within the 
seaward lateral boundary, an outer Continental 
Shelf bonus bid or royalty is generated (excluding a 
bonus bid or royalty from a leased tract within an 
area of the outer Continental Shelf for which a mor-
atorium on new leasing was in effect as of January 
1, 2002, unless the lease was issued before the es-
tablishment of the moratorium and was in produc-
tion on that date). 
‘‘(3) The term ‘coastal political subdivision’ 
means a county, parish, or other equivalent subdivi-
sion of a coastal energy State, all or part of which, 
on the date of the enactment of this section, lies 
within the boundaries of the coastal zone of the 
State, as identified in the coastal zone management 
program of the State approved under the Coastal 
Zone Management Act of 1972 (16 U.S.C. 1451 et 
seq.).
‘‘(4) The term ‘coastal population’ means the 
population of a coastal political subdivision, as deter-
mined by the most recent official data of the Census 
Bureau. 
‘‘(5) The term ‘coastline’ has the meaning given 
the term ‘coast line’ in section 2(c) of the Sub-
merged Lands Act (43 U.S.C. 1301(c)). 
‘‘(6) The term ‘Fund’ means the Secure Energy 
Reinvestment Fund established by subsection (b)(1). 
‘‘(7) The term ‘leased tract’ means a tract 
maintained under section 6 or leased under section 
8 for the purpose of drilling for, developing, and pro-
ducing oil and natural gas resources. 
‘‘(8)(A) Except as provided in subparagraph 
(B), the term ‘qualified outer Continental Shelf reve-
nues’ means all amounts received by the United 
States on or after October 1, 2005, from each leased 
tract or portion of a leased tract lying seaward of 
the zone defined and governed by section 8(g) (or 
lying within that zone but to which section 8(g) does 
not apply), including bonus bids, rents, royalties (in-
cluding payments for royalties taken in kind and 
sold), net profit share payments, and related inter-
est.
‘‘(B) The term ‘qualified outer Continental 
Shelf revenues’ does not include any revenue from a 
leased tract or portion of a leased tract that is in-
cluded within any area of the outer Continental 
Shelf for which a moratorium on new leasing was in 
effect as of January 1, 2002, unless the lease was 
issued before the establishment of the moratorium 
and was in production on that date. 
‘‘(9) The term ‘Secretary’ means the Secretary 
of the Interior. 
‘‘(b)(1)(A) There is established in the Treasury of the 
United States a separate account to be known as the ‘Se-
cure Energy Reinvestment Fund’. 
‘‘(B) The Fund shall consist of—
‘‘(i) any amount deposited under paragraph (2); 
and 
‘‘(ii) any other amounts that are appropriated 
to the Fund. 
‘‘(2) For each fiscal year after fiscal year 2006, the 
Secretary of the Treasury shall deposit into the Fund the 
following: 
‘‘(A) Notwithstanding section 9, all qualified 
outer Continental Shelf revenues attributable to roy-
alties received by the United States during the fiscal 
year in excess of—
‘‘(i) in the case of royalties received in fis-
cal year 2006, $7,000,000,000; 
‘‘(ii) in the case of royalties received in fis-
cal year 2007, $7,100,000,000; 
‘‘(iii) in the case of royalties received in 
fiscal year 2008, $7,300,000,000; 
‘‘(iv) in the case of royalties received in fis-
cal year 2009, $6,900,000,000; 
‘‘(v) in the case of royalties received in fis-
cal year 2010, $7,200,000,000; 
‘‘(vi) in the case of royalties received in fis-
cal year 2011, $7,250,000,000; 
‘‘(vii) in the case of royalties received in 
fiscal year 2012, $8,125,000,000; 
‘‘(viii) in the case of royalties received in 
fiscal year 2013, $8,100,000,000; 
‘‘(ix) in the case of royalties received in fis-
cal year 2014, $9,000,000,000; and 
‘‘(x) in the case of royalties received in fis-
cal year 2015, $7,500,000,000. 
‘‘(B) Notwithstanding section 9, any qualified 
outer Continental shelf revenues that are attrib-
utable to bonus bids received by the United States 
during each of fiscal years 2006 through 2015 in ex-
cess of $880,000,000.
‘‘(C) Notwithstanding section 9, in addition to 
amounts deposited under subparagraphs (A), (B), 
and (F), $150,000,000 of the amounts received by 
the United States during each of fiscal years 2006 
through 2015 as royalties for oil or gas production 
on the outer Continental Shelf. 
‘‘(D) All interest earned under paragraph (4). 
‘‘(E) All repayments made under subsection (f). 
‘‘(F) Notwithstanding section 9—
‘‘(i) for fiscal year 2016, an amount equal to 8 
percent of the qualified outer Continental Shelf reve-
nues received by the United States during fiscal year 
2015; 
‘‘(ii) for fiscal year 2017, an amount equal to 
10 percent of the qualified outer Continental Shelf 
revenues received by the United States during fiscal 
year 2016; 
‘‘(iii) for fiscal year 2018, an amount equal to 
12 percent of the qualified outer Continental Shelf 
revenues received by the United States during fiscal 
year 2017; 
‘‘(iv) for fiscal year 2019, an amount equal to 
14 percent of the qualified outer Continental Shelf 
revenues received by the United States during fiscal 
year 2018;
‘‘(v) for fiscal year 2020, an amount equal to 
16 percent of the qualified outer Continental Shelf 
revenues received by the United States during fiscal 
year 2019; 
‘‘(vi) for fiscal year 2021, an amount equal to 
18 percent of the qualified outer Continental Shelf 
revenues received by the United States during fiscal 
year 2020; 
‘‘(vii) for fiscal year 2022, an amount equal to 
20 percent of the qualified outer Continental Shelf 
revenues received by the United States during fiscal 
year 2021; 
‘‘(viii) for fiscal year 2023, an amount equal to 
22 percent of the qualified outer Continental Shelf 
revenues received by the United States during fiscal 
year 2022; 
‘‘(ix) for fiscal year 2024, an amount equal to 
24 percent of the qualified outer Continental Shelf 
revenues received by the United States during fiscal 
year 2023; 
‘‘(x) for fiscal year 2025, an amount equal to 
26 percent of the qualified outer Continental Shelf 
revenues received by the United States during fiscal 
year 2024; and
‘‘(xi) for fiscal year 2026 and each subsequent 
fiscal year, an amount equal to 27 percent of the 
qualified outer Continental Shelf revenues received 
by the United States during the preceding fiscal 
year. 
‘‘(3)(A) For each fiscal year after fiscal year 2015 
during which amounts received by the United States as 
royalties for oil or gas production on the outer Continental 
Shelf are less than the sum of the amounts described in 
subparagraph (B) and paragraph (2)(F), the Secretary of 
the Treasury shall reduce each of the amounts described 
in subparagraph (B) proportionately. 
‘‘(B) The amounts referred to in subparagraph (A) 
are—
‘‘(i) the amount required to be covered into the 
Historic Preservation Fund under section 108 of the 
National Historic Preservation Act (16 U.S.C. 470h) 
on the date of the enactment of this section; 
‘‘(ii) the amount required to be credited to the 
Land and Water Conservation Fund under section 
2(c)(2) of the Land and Water Conservation Fund 
Act of 1965 (16 U.S.C. 460l–5(c)(2)) on the date of 
enactment of this section; and 
‘‘(iii) the amount required to be deposited 
under paragraph (2)(C).
‘‘(4)(A) The Secretary of the Treasury shall invest 
money in the Fund (including interest) in public debt se-
curities—
‘‘(i) with maturities suitable to the needs of the 
Fund, as determined by the Secretary of the Treas-
ury; and 
‘‘(ii) bearing interest at rates determined by the 
Secretary of the Treasury, taking into consideration 
current market yields on outstanding marketable ob-
ligations of the United States of comparable matu-
rity. 
‘‘(B) Money invested pursuant to subparagraph (A) 
shall remain invested until the money is needed to meet 
a requirement for disbursement under this section. 
‘‘(5) Not later than December 31, 2010, the Sec-
retary, in consultation with the Secretary of the Treasury, 
shall—
‘‘(A) determine the amount and composition of 
outer Continental Shelf revenues that were received 
by the United States during each of fiscal years 
2006 through 2010; 
‘‘(B) project the amount and composition of 
outer Continental Shelf revenues that will be re-
ceived by the United States during each of fiscal 
years 2011 through 2015; and
‘‘(C) submit to Congress a report regarding 
whether any amount described in clauses (vi) 
through (x) of paragraph (2)(A), or paragraph 
(2)(B), should be modified to reflect a projection 
under subparagraph (B). 
‘‘(6) For each of fiscal years 2006 through 2015, in 
addition to the amounts deposited into the Fund under 
paragraph (2), there are authorized to be appropriated to 
the Fund an amount equal to 8 percent of the qualified 
outer Continental Shelf revenues received by the United 
States during the preceding fiscal year. 
‘‘(c)(1)(A) The Secretary shall use any amount re-
maining in the Fund after the application of subsections 
(h) and (i) to pay to each coastal energy State, and any 
coastal political subdivision of a State, the secure energy 
reinvestment plan of which is approved by the Secretary 
under this section, the amount allocated to the State or 
coastal political subdivision, respectively, under this sub-
section. 
‘‘(B) During December 2006, and each December 
thereafter, the Secretary shall make any payment under 
this paragraph from revenues received by the United 
States during the preceding fiscal year. 
‘‘(2) The Secretary shall allocate any amount depos-
ited into the Fund for a fiscal year, and any other amount
determined by the Secretary to be available, among coastal 
energy States, and coastal political subdivisions of those 
States, that have a plan approved by the Secretary under 
this section as follows: 
‘‘(A)(i) Of the amounts made available for each 
of the first 10 fiscal years for which amounts are 
available for allocation under this paragraph, the al-
location for each coastal energy State shall be cal-
culated based on the ratio that—
‘‘(I) the qualified outer Continental Shelf 
revenues generated off the coastline of the 
coastal energy State; bears to 
‘‘(II) the qualified outer Continental Shelf 
revenues generated off the coastlines of all 
coastal energy States for the period beginning 
January 1, 1992, and ending December 31, 
2001. 
‘‘(ii) Of the amounts made available for a fiscal 
year after the fiscal years described in clause (i), the 
allocation for each coastal energy State shall be cal-
culated based on a ratio determined by the Secretary 
with respect to the qualified outer Continental Shelf 
revenues generated in the corresponding 10-year pe-
riod.
‘‘(iii) For the purposes of this subparagraph, 
qualified outer Continental Shelf revenues shall be 
considered to be generated off the coastline of a 
coastal energy State if the geographic center of the 
lease tract from which the revenues are generated is 
located within the area formed by the extension of 
the seaward lateral boundaries of the State, cal-
culated using the conventions established to delimit 
international lateral boundaries under the Law of 
the Sea. 
‘‘(B) 35 percent of the allocable share of each 
coastal energy State, as determined under subpara-
graph (A), shall be allocated among and paid di-
rectly to the coastal political subdivisions of the 
State by the Secretary based on the following for-
mula: 
‘‘(i) 25 percent shall be allocated based on 
the ratio that—
‘‘(I) the coastal population of each 
coastal political subdivision; bears to 
‘‘(II) the coastal population of all 
coastal political subdivisions of the coastal 
energy State. 
‘‘(ii)(I) 25 percent shall be allocated based 
on the ratio that—
‘‘(aa) the length, in miles, of the 
coastline of each coastal political subdivi-
sion; bears to 
‘‘(bb) the length, in miles, of the 
coastline of all coastal political subdivisions 
of the State. 
‘‘(II) For purposes of this clause, in the 
case of a coastal political subdivision without a 
coastline, the coastline of the political subdivi-
sion shall be 1⁄3 the average length of the coast-
line of the other coastal political subdivisions of 
the State. 
‘‘(iii) 50 percent shall be allocated based 
on a formula that allocates—
‘‘(I) 75 percent of the funds based on 
the relative distance of the coastal political 
subdivision from any leased tract used to 
calculate the allocation to that State; and 
‘‘(II) 25 percent of the funds based on 
the relative level of outer Continental Shelf 
oil and gas activities in a coastal political 
subdivision to the level of outer Conti-
nental Shelf oil and gas activities in all 
coastal political subdivisions in the State, 
as determined by the Secretary.
‘‘(3) Any amount allocated to a coastal energy State 
or coastal political subdivision that is not disbursed be-
cause of a failure of a coastal energy State to have an 
approved plan shall be reallocated by the Secretary among 
all other coastal energy States in a manner consistent with 
this subsection, except that the Secretary—
‘‘(A) shall hold the amount in escrow within the 
Fund until the earlier of—
‘‘(i) the end of the next fiscal year during 
which the allocation is made; or 
‘‘(ii) the date on which a final resolution of 
an appeal regarding the disapproval of a plan 
submitted by the State under this section is 
filed; and 
‘‘(B) shall continue to hold the amount in es-
crow until the end of the subsequent fiscal year, if 
the Secretary determines that a State is making a 
good faith effort to develop and submit, or update, 
a secure energy reinvestment plan under subsection 
(d). 
‘‘(4) Notwithstanding any other provision of this sub-
section, the amount allocated under this subsection to each 
coastal energy State during a fiscal year shall be not less 
than 5 percent of the total amount available for that fiscal
year for allocation under this subsection to coastal energy 
States. 
‘‘(5) If the allocation to 1 or more coastal energy 
States under paragraph (4) during any fiscal year is 
greater than the amount that would be allocated to those 
States under this subsection if paragraph (4) did not 
apply, the allocations under this subsection to all other 
coastal energy States shall be—
‘‘(A) paid from the amount remaining after the 
amounts allocated under paragraph (4) are de-
ducted; and 
‘‘(B) reduced on a pro rata basis by the sum 
of the allocations under paragraph (4) so that not 
more than 100 percent of the funds available in the 
Fund for allocation with respect to that fiscal year 
is allocated. 
‘‘(d)(1)(A) The Governor of a State seeking to receive 
funds under this section shall prepare, and submit to the 
Secretary, a secure energy reinvestment plan describing 
planned expenditures of funds received under this section. 
‘‘(B) The Governor shall include in the State plan 
any plan prepared by a coastal political subdivision of the 
State. 
‘‘(C) In the development of the State plan, the Gov-
ernor and the coastal political subdivision shall—
‘‘(i) solicit local input; 
‘‘(ii) provide for public participation; and 
‘‘(iii) in describing the planned expenditures, in-
clude only uses of funds described in subsection (e). 
‘‘(2)(A)(i) The Secretary shall not disburse funds to 
a State or coastal political subdivision under this section 
before the date on which the plan of the State is approved 
under this subsection. 
‘‘(ii) The Secretary shall approve a plan submitted 
by a State under paragraph (1) if the Secretary deter-
mines that—
‘‘(I) each expenditures provided for in the plan 
is an authorized use under subsection (e); and 
‘‘(II) the plan contains—
‘‘(aa) the name of the State agency that 
will have the authority to represent and act for 
the State in dealing with the Secretary for pur-
poses of this section; 
‘‘(bb) goals including improving the envi-
ronment and addressing the impacts of oil and 
gas production from the outer Continental 
Shelf; 
‘‘(cc) a description of how the State and 
coastal political subdivisions of the State will 
evaluate the effectiveness of the plan;
‘‘(dd) a certification by the Governor that 
ample opportunity has been accorded for public 
participation in the development and revision of 
the plan; 
‘‘(ee) measures for taking into account 
other relevant Federal resources and programs; 
‘‘(ff) assurance that the plan is correlated 
as much as practicable with other State, re-
gional, and local plans; 
‘‘(gg) for any State for which the ratio de-
termined under clause (i) or (ii) of subsection 
(c)(2)(A), expressed as a percentage, exceeds 25 
percent, a plan to spend not less than 30 per-
cent of the total funds provided to that State 
and appropriate coastal political subdivisions 
under this section during any fiscal year to ad-
dress the socioeconomic or environmental im-
pacts identified in the plan that remain signifi-
cant or progressive after implementation of 
mitigation measures identified in the most cur-
rent environmental impact statement as of the 
date of enactment of this section required under 
the National Environmental Policy Act of 1969 
(42 U.S.C. 4321 et seq.) for lease sales under 
this Act; and
‘‘(hh) a plan to use at least 1⁄2 of the funds 
provided pursuant to subsection (c)(2)(B), and 
a portion of other funds provided to a State 
under this section, on programs or projects that 
are coordinated and conducted by a partnership 
between the State and a coastal political sub-
division. 
‘‘(B) Not later than 90 days after a plan of a State 
is submitted under this subsection, the Secretary shall ap-
prove or disapprove the plan. 
‘‘(3) Any amendment to or revision of a plan ap-
proved under this section shall be—
‘‘(A) prepared and submitted in accordance 
with the requirements of this paragraph; and 
‘‘(B) approved or disapproved by the Secretary 
in accordance with paragraph (2)(B). 
‘‘(e) A coastal energy State, and a coastal political 
subdivision, shall use any amount paid under this section 
(including any amounts deposited into a trust fund admin-
istered by the State or coastal political subdivision con-
sistent with this subsection), consistent with Federal and 
State law and the approved plan of the State—
‘‘(1) to carry out a project or activity, including 
an educational activity, for the conservation, protec-
tion, or restoration of coastal areas including wet-
lands; 
‘‘(2) to mitigate damage to, or protect, fish, 
wildlife, or natural resources; 
‘‘(3) to the extent considered reasonable by the 
Secretary, to carry out planning assistance and pay 
the administrative costs of complying with this sec-
tion; 
‘‘(4) to implement a federally approved plan or 
program for—
‘‘(A) marine, coastal, subsidence, or con-
servation management; or 
‘‘(B) protection of resources from natural 
disasters; and 
‘‘(5) to mitigate the effect of an outer Conti-
nental Shelf activity by providing onshore infrastruc-
ture or public service. 
‘‘(f) If the Secretary determines that an expenditure 
made by a coastal energy State or coastal political subdivi-
sion is not in accordance with the approved plan of the 
State (including any plan of a coastal political subdivision 
included in the plan of the State), the Secretary shall not 
disburse any additional amount under this section to that 
coastal energy State or coastal political subdivision until—
‘‘(1) the amount of the expenditure is repaid to 
the Secretary; or 
‘‘(2) the Secretary approves an amendment to 
the plan that authorizes the expenditure. 
‘‘(g) The Secretary may require, as a condition of any 
payment under this section, that a State or coastal polit-
ical subdivision shall submit to arbitration—
‘‘(1) any dispute between the State or coastal 
political subdivision and the Secretary regarding im-
plementation of this section; and 
‘‘(2) any dispute between the State and political 
subdivision regarding implementation of this section, 
including any failure to include in the plan sub-
mitted by the State under subsection (d) any spend-
ing plan of the coastal political subdivision. 
‘‘(h) The Secretary may use not more than 1⁄2 of 1 
percent of the amount in the Fund during a fiscal year 
to pay the administrative costs of implementing this sec-
tion. 
‘‘(i)(1) An amount equal to 2 percent of an amount 
deposited into the Fund during each of fiscal years 2006 
through 2015 shall be available to the Secretary to provide 
funding for the Coastal Restoration and Enhancement 
through Science and Technology program.
‘‘(2) For purposes of determining the amount appro-
priated under any other provision of law that authorizes 
appropriations to carry out the Coastal Restoration and 
Enhancement through Science and Technology program, 
any amount made available under paragraph (1) during 
a fiscal year shall be treated as appropriated under that 
other provision. 
‘‘(j) Subject to subsection (e), a coastal energy State 
or coastal political subdivision may use funds provided to 
that State or coastal political subdivision under this sec-
tion for any payment that is eligible to be made with funds 
provided to States under section 35 of the Mineral Leasing 
Act (30 U.S.C. 191). 
‘‘(k)(1) The Governor of a coastal energy State, in 
coordination with the coastal political subdivisions of that 
State, shall account for all funds received under this sec-
tion during the previous fiscal year in a written report to 
the Secretary. 
‘‘(2) The report shall include, in accordance with reg-
ulations prescribed by the Secretary, a description of all 
projects and activities that received funds under this sec-
tion. 
‘‘(3) The report may incorporate by reference any 
other report required to be submitted under another provi-
sion of law.
‘‘(l) The Secretary shall require, as a condition of any 
allocation of funds provided under this section, that a 
State or coastal political subdivision shall include on any 
sign installed at a site at or near an entrance or public 
use area for which funds provided under this section are 
used a statement that the existence or development of the 
site is a product of those funds.’’. 
(b) CONFORMING AMENDMENTS.—Section 31 of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1356a) is 
amended—
(1) by striking subsection (a); 
(2) in subsection (c), by striking ‘‘For fiscal 
year 2001, $150,000,000 is’’ and inserting ‘‘Such 
sums as may be necessary to carry out this section 
are’’; 
(3) in subsection (d)(1)(B), by striking ‘‘, ex-
cept’’ and all that follows through the end of the 
sentence and inserting a period; 
(4) by redesignating subsections (b) though (g) 
as subsections (a) through (f), respectively; and 
(5) by striking ‘‘subsection (f)’’ each place it 
appears and inserting ‘‘subsection (e)’’. 
(c) USE OF COASTAL RESTORATION AND ENHANCE-
MENT
THROUGH
SCIENCE
AND
TECHNOLOGY
PRO-
GRAM.—
(1) AUTHORIZATION.—The Secretary of the In-
terior and the Secretary of Commerce may use the 
Coastal Restoration and Enhancement through 
Science and Technology program for the purposes 
of—
(A) assessing the effects of a coastal habi-
tat restoration technique; 
(B) developing improved ecosystem mod-
eling capabilities to improve predictions of 
coastal conditions and habitat change; 
(C) developing a new technology for a res-
toration activity; and 
(D) identifying economic options to ad-
dress socioeconomic consequences of coastal 
degradation. 
(2) CONDITION.—The Secretary of the Interior, 
in consultation with the Secretary of Commerce, 
shall ensure that the program—
(A) establishes procedures designed to 
avoid duplicative activities among Federal agen-
cies and entities receiving Federal funds; 
(B) coordinates with any person involved 
in a similar activity; and
(C) establishes a mechanism to collect, or-
ganize, and make available information and 
findings on coastal restoration. 
(3) REPORT.—Not later than September 30, 
2010, the Secretary of the Interior, in consultation 
with the Secretary of Commerce, shall submit to 
Congress a report that—
(A) describes the effectiveness of any Fed-
eral or State restoration effort pursuant to this 
subsection; and 
(B) makes recommendations to improve co-
ordinated coastal restoration efforts. 
(4) FUNDING.—There is authorized to be ap-
propriated to the Secretary to carry out this sub-
section $10,000,000 for each of fiscal years 2006 
through 2015.
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