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termined by the Secretary of the Treasury, and bearing 
interest at rates determined by the Secretary of the Treas-
ury, taking into consideration current market yields on 
outstanding marketable obligations of the United States 
of comparable maturity. Such invested moneys shall re-
main invested until needed to meet requirements for dis-
bursement for the programs financed under this Act. 
(e) REFUNDS.—In those instances in which through 
judicial decision, administrative review, arbitration, or 
other means there are royalty refunds owed to entities 
generating revenues under this title, refunds shall be paid 
by the Secretary of the Treasury from amounts available 
in the Fund to the extent that such refunds are attrib-
utable to qualified Outer Continental Shelf revenues de-
posited in the Fund under this Act. 
(f) INTENT OF CONGRESS TO SUPPLEMENT ANNUAL 
APPROPRIATIONS
FOR FEDERAL AGENCIES.—Amounts 
made available by this Act are intended by the Congress 
to supplement, and not detract from, annual appropria-
tions for Federal agencies receiving funding under this 
title. 
SEC. 1102. LIMITATION ON USE OF AVAILABLE AMOUNTS 
FOR ADMINISTRATION. 
Notwithstanding any other provision of law, of 
amounts made available by this title (including the amend-
119
ments made by this title) for a particular activity, not 
more than 2 percent may be used for administrative ex-
penses of that activity. 
SEC. 1103. RECORDKEEPING REQUIREMENTS. 
The Administrator, in consultation with the National 
Oceans Council, shall establish such rules regarding rec-
ordkeeping by State and local governments and the audit-
ing of expenditures made by State and local governments 
from funds made available under this Act as may be nec-
essary. Such rules shall be in addition to other require-
ments established regarding recordkeeping and the audit-
ing of such expenditures under other authority of law. 
SEC. 1104. MAINTENANCE OF EFFORT AND MATCHING 
FUNDING. 
(a) IN GENERAL.—It is the intent of the Congress 
in this Act that States not use this Act as an opportunity 
to reduce State or local resources for the programs funded 
by this Act. Except as provided in subsection (b), no State 
or local government shall receive any funds under this Act 
during any fiscal year in which its expenditures of non-
Federal funds for recurrent expenditures for programs for 
which funding is provided under this Act will be less than 
its expenditures were for such programs during the pre-
ceding fiscal year. No State or local government shall re-
ceive funding under this Act with respect to a program
120
unless the Administrator is satisfied that such a grant will 
be so used to supplement and, to the extent practicable, 
increase the level of State, local, or other non-Federal 
funds available for such program. 
(b) EXCEPTION.—The Administrator may provide 
funding under this Act to a State or local government not 
meeting the requirements of subsection (a) if the Adminis-
trator determines that a reduction in expenditures—
(1) is attributable to a nonselective reduction in 
expenditures for the programs of all executive 
branch agencies of the State or local government; or 
(2) is a result of reductions in State or local 
revenue as a result of a downturn in the economy. 
(c) USE OF FUND TO MEET MATCHING REQUIRE-
MENTS.—All funds received by a State or local govern-
ment under this Act shall be treated as Federal funds for 
purposes of compliance with any provision in effect under 
any other law requiring that non-Federal funds be used 
to provide a portion of the funding for any program or 
project. 
SEC. 1105. SUNSET. 
This title shall have no force or effect after Sep-
tember 30, 2024.
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SEC. 1106. COMMUNITY ASSISTANCE FORMULA AND PAY-
MENTS. 
(a) 
CONSERVATION
PAYMENTS
TO
COASTAL 
STATES.—
(1) GRANT PROGRAM.—Amounts transferred to 
the Administrator from the Fund under section 
1101(b)(1) for purposes of making payments to 
coastal States under this title in any fiscal year shall 
be allocated by the Administrator among coastal 
States as provided in this section each such fiscal 
year. In each such fiscal year, the Administrator 
shall, without further appropriation, disburse such 
allocated funds to those coastal States for which the 
Administrator has approved a spending plan under 
section 1107 and that have met all other require-
ments of this title. Payments for all projects shall be 
made by the Administrator to the Governor of the 
State or to the State official or agency designated by 
the Governor or by State law as having authority 
and responsibility to accept and to administer funds 
paid hereunder. No payment shall be made to any 
State until the State has agreed to provide such re-
ports to the Administrator, in such form and con-
taining such information, as may be reasonably nec-
essary to enable the Administrator to perform the 
duties of the Administrator under this title, and pro-