1981 (42 U.S.C. 8621, et seq.) and half to 
the Secretary of Energy for carrying out 
the Weatherization Assistance program 
under part A of title IV of the Energy 
Conservation and Production Act (42 
U.S.C. 6861 et seq.). 
‘‘(B) LEASED
TRACT
THAT
LIES
PAR-
TIALLY WITHIN THE SEAWARD BOUNDARIES OF 
A STATE.—In the case of a leased tract that lies 
partially within the seaward boundaries of a 
State, the amounts of bonus bids and royalties 
from such tract that are subject to subpara-
graph (A) with respect to such State shall be a 
percentage of the total amounts of bonus bids 
and royalties from such tract that is equivalent 
to the total percentage of surface acreage of the 
tract that lies within such seaward boundaries. 
‘‘(C) USE
OF
PAYMENTS
TO
STATES.— 
Amounts paid to a State under subparagraph 
(A)(ii) shall be used by the State for one or 
more of the following: 
‘‘(i) Education. 
‘‘(ii) Transportation. 
‘‘(iii) Reducing taxes. 
VerDate Aug 31 2005 
03:32 Jun 22, 2007
Jkt 059200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H2784.IH
H2784
bajohnson on PROD1PC77 with BILLS
‘‘(iv) Coastal and environmental res-
toration. 
‘‘(v) 
Energy 
infrastructure 
and 
projects. 
‘‘(vi) State seismic monitoring pro-
grams. 
‘‘(vii) Alternative energy development. 
‘‘(viii) Energy efficiency and conserva-
tion. 
‘‘(ix) Hurricane and natural disaster 
insurance programs. 
‘‘(x) Any other purpose determined by 
State law. 
‘‘(D) DEFINITIONS.—In this paragraph: 
‘‘(i) ADJACENT
STATE.—The term 
‘adjacent State’ means, with respect to any 
program, plan, lease sale, leased tract or 
other activity, proposed, conducted, or ap-
proved pursuant to the provisions of this 
Act, any State the laws of which are de-
clared, pursuant to section 4(a)(2), to be 
the law of the United States for the por-
tion of the outer Continental Shelf on 
which such program, plan, lease sale, 
VerDate Aug 31 2005 
03:32 Jun 22, 2007
Jkt 059200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H2784.IH
H2784
bajohnson on PROD1PC77 with BILLS
leased tract, or activity appertains or is, or 
is proposed to be, conducted. 
‘‘(ii) ADJACENT
ZONE.—The term 
‘adjacent zone’ means, with respect to any 
program, plan, lease sale, leased tract, or 
other activity, proposed, conducted, or ap-
proved pursuant to the provisions of this 
Act, the portion of the outer Continental 
Shelf for which the laws of a particular ad-
jacent State are declared, pursuant to sec-
tion 4(a)(2), to be the law of the United 
States. 
‘‘(iii) PRODUCING STATE.—The term 
‘producing State’ means an Adjacent State 
having an adjacent zone containing leased 
tracts from which are derived bonus bids 
and royalties under a lease under this Act. 
‘‘(iv) STATE.—The term ‘State’ in-
cludes Puerto Rico and the other Terri-
tories of the United States. 
‘‘(v) QUALIFIED
GAS
LEASE.—The 
term ‘qualified gas lease’ means a lease 
under this Act granted after the date of 
the enactment of the National Environ-
ment and Energy Development Act that 
VerDate Aug 31 2005 
03:32 Jun 22, 2007
Jkt 059200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H2784.IH
H2784
bajohnson on PROD1PC77 with BILLS
authorizes development and production of 
natural gas and associated condensate. 
‘‘(E) APPLICATION.—This paragraph shall 
apply to bonus bids and royalties received by 
the United States after September 30, 2007. 
‘‘(7) 
ESTABLISHMENT
OF
RESERVE
AC-
COUNTS.— 
‘‘(A) IN
GENERAL.—For budgetary pur-
poses, there is established as a separate account 
to receive deposits under paragraph (6)(A)— 
‘‘(i) the Energy Efficiency and Re-
newables Reserve to offset the cost of legis-
lation enacted after the date of the enact-
ment of the National Environment and 
Energy Development Act to accelerate the 
use of clean domestic renewable energy re-
sources and alternative fuels; to promote 
the utilization of energy-efficient products 
and practices and conservation; and to in-
crease research, development, and deploy-
ment of clean renewable energy and effi-
ciency technologies. 
‘‘(ii) the Carbon Capture and Seques-
tration Reserve to offset the cost of legisla-
tion enacted after the date of the enact-
VerDate Aug 31 2005 
03:32 Jun 22, 2007
Jkt 059200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H2784.IH
H2784
bajohnson on PROD1PC77 with BILLS
ment of the National Environment and 
Energy Development Act to promote activi-
ties associated with carbon capture and se-
questration; 
‘‘(iii) the Chesapeake Bay Restoration 
Reserve to offset the cost of legislation en-
acted after the date of the enactment of 
the National Environment and Energy De-
velopment Act to conduct restoration ac-
tivities primarily or entirely within the 
Chesapeake Bay watershed that seeks to 
improve the overall health of the ecosystem 
of the Chesapeake Bay; 
‘‘(iv) the Great Lakes Restoration Re-
serve to offset the cost of legislation en-
acted after the date of the enactment of 
the National Environment and Energy De-
velopment Act to conduct restoration ac-
tivities primarily or entirely within the the 
Great Lakes watershed that seeks to im-
prove the overall health of the ecosystem of 
the Great Lakes; 
‘‘(v) the Everglades Restoration Re-
serve to offset the cost of legislation en-
acted after the date of the enactment of 
VerDate Aug 31 2005 
03:32 Jun 22, 2007
Jkt 059200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H2784.IH
H2784
bajohnson on PROD1PC77 with BILLS
the National Environment and Energy De-
velopment Act to conduct restoration ac-
tivities primarily or entirely within the 
Florida Everglades watershed that seeks to 
improve the overall health of the ecosystem 
of the Everglades; 
‘‘(vi) the Colorado River Basin Res-
toration Reserve to offset the cost of legis-
lation enacted after the date of the enact-
ment of the National Environment and 
Energy Development Act to conduct res-
toration activities primarily or entirely 
within the the Colorado River Basin water-
shed that seeks to improve the overall 
health of the ecosystem of the Colorado 
River Basin; and 
‘‘(vii) the San Francisco Bay Restora-
tion Reserve to offset the cost of legislation 
enacted after the date of the enactment of 
the National Environment and Energy De-
velopment Act to conduct restoration ac-
tivities primarily or entirely within the San 
Francisco Bay, California, watershed that 
seeks to improve the overall health of the 
ecosystem of San Francisco Bay. 
VerDate Aug 31 2005 
03:32 Jun 22, 2007
Jkt 059200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H2784.IH
H2784
bajohnson on PROD1PC77 with BILLS
‘‘(B) PROCEDURE FOR ADJUSTMENTS.— 
‘‘(i) 
BUDGET
COMMITTEE
CHAIR-
MAN.—After the reporting of a bill or joint 
resolution, or the offering of an amend-
ment thereto or the submission of a con-
ference report thereon, providing funding 
for the purposes set forth in clause (i), (ii), 
(iii), (iv), (v), (vi), or (vii) of subparagraph 
(A) in excess of the amount of the deposits 
under paragraph (6)(A) for those purposes 
for fiscal year 2007, the chairman of the 
Committee on the Budget of the applicable 
House of Congress shall make the adjust-
ments set forth in clause (ii) for the 
amount of new budget authority and out-
lays in that measure and the outlays flow-
ing from that budget authority. 
‘‘(ii) MATTERS TO BE ADJUSTED.— 
The adjustments referred to in clause (i) 
are to be made to— 
‘‘(I) the discretionary spending 
limits, if any, set forth in the appro-
priate concurrent resolution on the 
budget; 
VerDate Aug 31 2005 
03:32 Jun 22, 2007
Jkt 059200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H2784.IH
H2784
bajohnson on PROD1PC77 with BILLS
‘‘(II) the allocations made pursu-
ant to the appropriate concurrent res-
olution on the budget pursuant to sec-
tion 302(a) of the Congressional 
Budget Act of 1974; and 
‘‘(III) the budget aggregates con-
tained in the appropriate concurrent 
resolution on the budget as required 
by section 301(a) of the Congressional 
Budget Act of 1974. 
‘‘(iii) AMOUNTS OF ADJUSTMENTS.— 
The adjustments referred to in clauses (i) 
and (ii) shall not exceed the receipts esti-
mated by the Congressional Budget Office 
that are attributable to this Act for the fis-
cal year in which the adjustments are 
made. 
‘‘(C) EXPENDITURES ONLY BY SECRETARY 
OF THE INTERIOR IN CONSULTATION.—Legisla-
tion shall not be treated as legislation referred 
to in subparagraph (A) unless any expenditure 
under such legislation for a purpose referred to 
in that subparagraph may be made only by the 
Secretary of the Interior after consultation with 
the Administrator of the Environmental Protec-
VerDate Aug 31 2005 
03:32 Jun 22, 2007
Jkt 059200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H2784.IH
H2784
bajohnson on PROD1PC77 with BILLS
tion Agency, the Administrator of the National 
Oceanic and Atmospheric Administration, the 
Secretary of the Army acting through the Corps 
of Engineers, and, as appropriate, the Secretary 
of State. 
‘‘(8) MAINTENANCE OF EFFORT BY STATES.— 
The Secretary of the Interior, the Secretary of 
Health and Human Services, and the Secretary of 
Energy shall ensure that financial assistance pro-
vided to a State for any purpose with amounts made 
available under this subsection or in any legislation 
with respect to which paragraph (7) applies supple-
ment, and do not replace, the amounts expended by 
the State for that purpose before the date of the en-
actment of the National Environment and Energy 
Development Act.’’. 
(b) ESTABLISHMENT OF STATE SEAWARD BOUND-
ARIES.—Section 4(a)(2)(A) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1333(a)(2)(A)) is amended in the 
first sentence by striking ‘‘, and the President’’ and all 
that follows through the end of the sentence and inserting 
the following: ‘‘. Such extended lines are deemed to be as 
indicated on the maps for each Outer Continental Shelf 
region entitled ‘Alaska OCS Region State Adjacent Zone 
and OCS Planning Areas’, ‘Pacific OCS Region State Ad-
VerDate Aug 31 2005 
03:32 Jun 22, 2007
Jkt 059200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H2784.IH
H2784
bajohnson on PROD1PC77 with BILLS
jacent Zones and OCS Planning Areas’, ‘Gulf of Mexico 
OCS Region State Adjacent Zones and OCS Planning 
Areas’, and ‘Atlantic OCS Region State Adjacent Zones 
and OCS Planning Areas’, all of which are dated Sep-
tember 2005 and on file in the Office of the Director, Min-
erals Management Service. The preceding sentence shall 
not apply with respect to the treatment under section 105 
of the Gulf of Mexico Energy Security Act of 2006 (title 
I of division C of Public Law 109–432) of qualified outer 
Continental Shelf revenues deposited and disbursed under 
subsection (a)(2) of that section.’’. 
SEC. 5. NATURAL GAS LEASING. 
Section 8 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1337) is further amended by adding at the 
end the following subsection: 
‘‘(r) NATURAL GAS LEASING.— 
‘‘(1) IN GENERAL.—The Secretary may issue 
leases under this section that authorize development 
and production of natural gas and associated con-
densate in accordance with regulations promulgated 
under paragraph (2). 
‘‘(2) REGULATIONS.—Before issuing any lease 
under paragraph (1), the Secretary must promulgate 
regulations that— 
VerDate Aug 31 2005 
03:32 Jun 22, 2007
Jkt 059200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H2784.IH
H2784
bajohnson on PROD1PC77 with BILLS
‘‘(A) define what constitutes natural gas, 
condensate, and oil; 
‘‘(B) establish the lessee’s rights and obli-
gations regarding condensate produced in asso-
ciation with natural gas; 
‘‘(C) prescribe procedures and require-
ments that the lessee of a lease issued under 
this subsection must follow if the lessee dis-
covers oil deposits in the course of exploration 
or development; and 
‘‘(D) establish such other requirements for 
natural gas leases as the Secretary considers 
appropriate. 
‘‘(3) APPLICATION OF OTHER LAWS.—All provi-
sions of this Act or any other Federal law or regula-
tions that apply to oil and natural gas leases for the 
Outer Continental Shelf shall apply to natural gas- 
only leases authorized under this subsection. 
‘‘(4) EXISTING LEASES.—At the request of the 
lessee of an oil and gas lease in effect under this sec-
tion on the date of enactment of this subsection, and 
under the requirements prescribed in regulations 
promulgated under paragraph (2), the Secretary 
may restrict development under such a lease to nat-
ural gas and associated condensate. 
VerDate Aug 31 2005 
03:32 Jun 22, 2007
Jkt 059200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H2784.IH
H2784
bajohnson on PROD1PC77 with BILLS
‘‘(5) OIL AND GAS LEASING PROGRAMS.—The 
Secretary may include provisions regarding issuance 
of natural gas leases in the outer Continental shelf 
leasing program that applies for the 5-year period 
beginning in 2007, notwithstanding any draft pro-
posal for such program issued before the date of the 
enactment of this subsection. 
‘‘(6) PROHIBITIONS
AND
WITHDRAWALS
FOR 
OIL NOT AFFECTED.—This subsection does not af-
fect— 
‘‘(A) any prohibition on the expenditure of 
appropriated funds to conduct oil leasing or 
preleasing activities; and 
‘‘(B) any withdrawal of Federal submerged 
lands from leasing for exploration for, and de-
velopment and production of, oil.’’. 
SEC. 6. POLICIES REGARDING BUYING AND BUILDING 
AMERICAN. 
(a) INTENT OF CONGRESS.—It is the intent of the 
Congress that this Act, among other things, result in a 
healthy and growing American industrial, manufacturing, 
transportation, and service sector employing the vast tal-
ents of America’s workforce to assist in the development 
of affordable energy from the Outer Continental Shelf. 
Moreover, the Congress intends to monitor the deployment 
VerDate Aug 31 2005 
03:32 Jun 22, 2007
Jkt 059200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H2784.IH
H2784
bajohnson on PROD1PC77 with BILLS