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Search Terms: "Conservation and Reinvestment Act", House or Senate or Joint

Document 36 of 92.

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APRIL 27, 1999, TUESDAY

SECTION: IN THE NEWS

LENGTH: 2421 words

HEADLINE: PREPARED STATMENT BY
LISA SPEER
SENIOR POLICY ANALYST
NATURAL RESOURCES DEFENSE COUNCIL
BEFORE THE SENATE ENERGY AND NATURAL RESOURCES COMMITTEE
SUBJECT - COASTAL AND MARINE ELEMENTS OF S. 25,
"THE CONSERVATION AND REINVESTMENT ACT,"
S. 446, "THE RESOURCES 2000 ACT,"
S. 819, "THE NATIONAL PARK PRESERVATION ACT,"
AND THE ADMINISTRATION'S "LANDS LEGACY INITIATIVE"

BODY:

MY NAME IS LISA SPEER AND I AM A SENIOR POLICY ANALYST WITH THE NATURAL RESOURCES DEFENSE COUNCIL (NRDC). I APPRECIATE THIS OPPORTUNITY TO TESTIFY TODAY BEFORE THE SENATE COMMITTEE ON ENERGY AND NATURAL RESOURCES ON S. 25, THE CONSERVATION AND REINVESTMENT ACT ("CARA"); S. 446, THE RESOURCES 2000 ACT; S. 819, THE NATIONAL PARK PRESERVATION ACT; AND THE ADMINISTRATION'S LANDS LEGACY INITIATIVE.
MY TESTIMONY ON BEHALF OF NRDC FOCUSES ON THE OUTER CONTINENTAL SHELF (OCS) IMPACT ASSISTANCE TITLE OF S. 25, THE LIVING MARINE RESOURCES TITLE OF S. 446, THE OCS REVENUES USED TO FUND ALL TITLES OF THE BILLS, AND THE COASTAL AND MARINE ELEMENTS OF THE LANDS LEGACY INITIATIVE. NRDC IS A NATIONAL ENVIRONMENTAL ORGANIZATION,- --- WITH OVER 400,000 MEMBERS, DEDICATED TO PROTECTING NATURAL RESOURCES AND ENSURING A SAFE AND HEALTHY ENVIRONMENT. NRDC HAS i LONG HISTORY OF INVOLVEMENT WITH THE PROTECTION OF OCEAN AND COASTAL RESOURCES, WITH a FOCUS ON OFFSHORE OIL AND GAS DRILLING, COASTAL ZONE MANAGEMENT AND MARINE FISH CONSERVATION.
IN OUR VIEW, THE OVERARCHING GOAL FOR THE COAST AND OCEAN TITLES OF THESE BILLS SHOULD BE PROTECTION AND RESTORATION OF OUR NATION'S FRAGILE, BUT EXTREMELY VALUABLE COASTAL AND MARINE RESOURCES WHICH ARE INCREASINGLY UNDER PRESSURE FROM A VARIETY OF SOURCES. IN ACHIEVING THAT GOAL, FIVE PRINCIPLES SHOULD BE CLOSELY ADHERED TO:
* THE LEGISLATION SHOULD PROVIDE NO FINANCIAL INCENTIVE TO STATES OR LOCAL GOVERNMENTS TO ACCEPT OR PROMOTE NEW OCS LEASING OR NEW PRODUCTION. THIS SHOULD APPLY TO ALL TITLES OF THE LEGISLATION, NOT JUST THE COASTAL OR OCS IMPACT ASSISTANCE TITLE.
* ALLOCATION OF MONEY TO STATE AND LOCAL GOVERNMENTS SHOULD NOT BE TIED TO NEW LEASING OR PRODUCTION.
* MONEY THAT GOES TO STATES AND LOCAL GOVERNMENTS MUST BE SPENT ON ENVIRONMENTALLY BENEFICIAL PROJECTS, NOT PROJECTS THAT COULD DO FURTHER DAMAGE TO COASTAL ZONE.
* THERE SHOULD BE FEDERAL AGENCY OVERSIGHT OF HOW MONEY IS SPENT TO ENSURE COMPLIANCE WITH FEDERAL ENVIRONMENTAL LAWS.
* ANY OFFSETS SHOULD NOT COME FROM EXISTING ENVIRONMENTAL PROGRAMS.THESE SAME BASIC PRINCIPLES ARE SET OUT IN THE JANUARY 7, 1999 LETTER TO SENATOR LANDRIEU, CHAIRMAN MURKOWSKI AND OTHER SENATORS FROM NINETEEN OF THE NATION'S MAJOR NATIONAL CONSERVATION ORGANIZATIONS THAT IS ATTACHED TO OUR TESTIMONY. THIS LETTER STATES THAT: "OUR ORGANIZATIONS ARE STRONGLY OPPOSED TO THE ESTABLISHMENT OF ANY FINANCIAL INCENTIVES THAT PROMOTE OFFSHORE OIL AND GAS DEVELOPMENT," IDENTIFIES INCENTIVES INCLUDED IN THE LEGISLATION AND RECOMMENDS WAYS OF REMOVING THEM.
S. 25, WHILE CONTAINING SOME IMPROVEMENTS OVER LAST YEAR'S BILL, STILL FALLS SERIOUSLY SHORT WHEN MEASURED AGAINST THE ABOVE PRINCIPLES. IN CONTRAST, S. 446 AND THE FUNDING MECHANISM IN S. 819 BOTH ADHERE TO THESE PRINCIPLES VERY CLOSELY. AS A RESULT, WE SUPPORT S. 446 AND THE FUNDING PROVISIONS .IN. S. 819, BUT.MUST CONTINUE TO OPPOSE S. 25 UNLESS AND UNTIL THE CONCERNS WE HAVE RAISED ARE SATISFACTORILY RESOLVED. WE STAND READY TO WORK WITH THE MEMBERS OF THE COMMITTEE AND THEIR STAFF TO DO THIS.
FOLLOWING IS OUR ANALYSIS OF THE THREE BILLS AND THE LANDS LEGACY INITIATIVE WITH RESPECT TO THE PRINCIPLES ENUNCIATED ABOVE.
S. 25, THE CONSERVATION AND REINVESTMENT ACT
REVENUE SOURCE
S. 25 INCLUDES REVENUES FROM NEW LEASING AND NEW PRODUCTION AS A FUNDING SOURCE FOR ALL TITLES OF THE BILL. IT DOES NOT EXCLUDE REVENUES FROM NEW LEASING AND PRODUCTION IN AREAS CURRENTLY UNDER MORATORIUM OR IN SENSITIVE FRONTIER AREAS NOT COVERED BY THE MORATORIUM. THE BILL THUS FALLS FAR SHORT OF MEETING THE FIRST PRINCIPLE.
THE CONCERN IS THAT IF THE MANY AND VARIED BENEFICIARIES OF THIS LEGISLATION SEE THAT IT IS IN THEIR FINANCIAL INTEREST FOR NEW LEASING AND PRODUCTION TO OCCUR--IN ORDER TO PROVIDE MORE FUNDING FOR THE LEGISLATION OVERALL AND FOR THEM IN PARTICULAR--IT WILL ERODE SUPPORT FOR THE EXISTING OFFSHORE OIL AND GAS MORATORIUM, WHICH CURRENTLY PROTECTS THE EAST COAST (WITH THE EXCEPTION OF EXISTING LEASES OFF CAPE HATTERAS), THE COAST OF FLORIDA (WITH THE EXCEPTION OF EXISTING LEASES OFF THE FLORIDA PANHANDLE), THE CENTRAL AND NORTHERN CALIFORNIA COAST (WITH THE EXCEPTION OF EXISTING LEASES OFF THE SOUTHERN AND CENTRAL CALIFORNIA COAST), OREGON, WASHINGTON AND BRISTOL BAY IN ALASKA. IT WILL ALSO LEAD TO SUPPORT FOR NEW DRILLING AND PRODUCTION ON EXISTING LEASES OFF NORTH CAROLINA, THE FLORIDA PANHANDLE AND CENTRAL CALIFORNIA, AS WELL AS IN SENSITIVE AREAS OFF ALASKA--NONE OF 'WHICH ARE CURRENTLY PROTECTED BY MORATORIA AND MANY OF WHICH, IF NOT ALL, ARE EXTREMELY CONTROVERSIAL. THUS, NOTWITHSTANDING THE DISCLAIMER IN SEC 701(12), S. 25 DOES IN FACT PROVIDE MAJOR INCENTIVES FOR OCS ACTIVITY.
TO ADDRESS THE PROBLEM, THE LEGISLATION SHOULD DEFINE THE TERM "QUALIFIED OUTER CONTINENTAL SHELF REVENUES" IN THE DEFINITIONS SECTION (SECTION 702) TO EXCLUDE REVENUES FROM NEW LEASING AND NEW PRODUCTION AFTER THE DATE OF ENACTMENT OF THE LEGISLATION, AS S. 446 AND S. 819 DO. THIS WOULD REMOVE THE FINANCIAL INCENTIVE TO SUPPORT NEW LEASING OR PRODUCTION IN MORATORIA AND OTHER SENSITIVE (COASTAL AREAS.
IT IS CRUCIAL TO REMEMBER THAT THE MORATORIUM ONLY EXIST BECAUSE CONGRESS EACH YEAR REENACTS IT AS PART OF THE INTERIOR APPROPRIATIONS LEGISLATION. PRESENTLY, A ONE-YEAR CONGRESSIONAL OUTER CONTINENTAL SHELF MORATORIUM CONTAINED IN THE FY 1999 DEPARTMENT OF INTERIOR APPROPRIATIONS BILL PRECLUDES THE EXPENDITURE OF FUNDS FOR NEW FEDERAL OFFSHORE OIL AND GAS LEASING IN SPECIFIC COASTAL AREAS UNTIL OCTOBER 1, OF THIS YEAR (1999).
THIS CONGRESSIONAL OCS MORATORIUM PREVENTS NEW LEASES FOR OFFSHORE DRILLING ALONG THE ENTIRE U.S. WEST COAST, THE EAST COAST, THE EASTERN GULF OF MEXICO, AND BRISTOL BAY IN ALASKA. NOW IN ITS SEVENTEENTH YEAR, THE MORATORIUM MUST BE RENEWED EACH YEAR. AS RECENTLY AS THE 104TH CONGRESS, THE MORATORIUM WAS REMOVED IN THE HOUSE SUBCOMMITTEE ON INTERIOR APPROPRIATIONS, AND WAS ONLY NARROWLY REINSTATED AFTER A BIG FIGHT IN THE FULL HOUSE APPROPRIATIONS COMMITTEE, IN SPITE OF STRONG OPPOSITION TO THE MEASURE BY THEN-CHAIRMAN REP. BOB LIVINGSTON. THERE HAVE BEEN PREVIOUS YEARS IN WHICH THE OCS MORATORIUM HAS SURVIVED IN THE HOUSE APPROPRIATIONS COMMITTEE BY A NARROW SINGLE-VOTE MARGIN. RELATED ACTIONS HAVE BEEN TAKEN BY TWO SUCCESSIVE PRESIDENTS, WHICH SUPPLEMENT, BUT DO NOT REPLACE, THE PROTECTION GRANTED BY THE CONGRESSIONAL MORATORIUM. THESE "PRESIDENTIAL DEFERRALS" WHILE AN IMPORTANT RECOGNITION OF THE NEED TO MAINTAIN THE MORATORIA, ARE NOT EMBODIED IN LEGISLATION. IN 1991, FORMER PRESIDENT GEORGE BUSH ANNOUNCED THAT HE WAS DIRECTING THAT ANY FURTHER OCS LEASING WITHIN THE AREAS PROTECTED BY CONGRESSIONAL MORATORIUM, EXCEPT IN ALASKA, BE DEFERRED UNTIL AFTER THE YEAR 2002. NO FORMAL EXECUTIVE ORDER WAS ISSUED BY MR. BUSH, AND ANY SUBSEQUENT PRESIDENT COULD REVERSE THIS DECISION.

DURING THE 1999 "YEAR OF THE OCEAN CONFERENCE" IN MONTEREY, CALIFORNIA, PRESIDENT CLINTON, ACCOMPANIED BY VICE-PRESIDENT AL GORE AND FOUR CABINET SECRETARIES, ANNOUNCED THAT THEY WERE DIRECTING THE MINERALS MANAGEMENT SERVICE OF THE DEPARTMENT OF INTERIOR TO EXTEND THE PREVIOUS BUSH OCS DEFERRALS UNTIL THE YEAR 2012. TO OUR KNOWLEDGE NO FORMAL EXECUTIVE ORDER HAS BEEN ISSUED BY THE CLINTON ADMINISTRATION SINCE THIS ANNOUNCEMENT, AND IT IS CONSIDERED VULNERABLE TO POSSIBLE POLICY REVERSALS BY SUBSEQUENT ADMINISTRATIONS.
ALLOCATION OF STATE AND LOCAL SHARES
S. 25 TIES A STATE'S SHARE OF FUNDING UNDER TITLE I DIRECTLY TO THE AMOUNT AND PROXIMITY OF OCS PRODUCTION OFF ITS COAST. THIS PROVIDES A CLEAR FINANCIAL INCENTIVE TO STATES TO ACCEPT NEW LEASING AND PRODUCTION.
FIFTY PERCENT OF A STATE'S ALLOCABLE SHARE IS DEPENDENT ON ITS BEING WITHIN 200 MILES OF A LEASED OCS TRACT. THE MORE PRODUCTION ON SUCH TRACTS AND THE CLOSER IN TO SHORE THESE TRACTS ARE, THE MORE MONEY THE STATE GETS. SEE SECTION 703 (c)(1) AND (2). WE BELIEVE THAT THE FORMULA FOR ALLOCATING FUNDS UNDER TITLE I SHOULD NOT BE TIED TO OCS PRODUCTION, BUT INSTEAD SHOULD REST ON SHORELINE MILES AND POPULATION ALONE. ALTERNATIVELY, IF OCS ACTIVITY HAS TO BE A FACTOR, IT SHOULD BE BASED ON A FIXED, FLAT PERCENTAGE OR AMOUNT BASED ON HISTORIC OCS ACTIVITY, NOT NEW ACTIVITY THAT OCCURS AFTER PASSAGE OF THE LEGISLATION. THIS WOULD ACKNOWLEDGE STATES THAT HAVE SUFFERED OCS IMPACTS TO DATE, WITHOUT PROVIDING AN INCENTIVE FOR NEW LEASING, EXPLORATION OR PRODUCTION.
ANOTHER MAJOR CONCERN WITH S. 2.5 CONCERNS THE METHOD OF ALLOCATING FUNDS TO LOCAL JURISDICTIONS. FORTY PERCENT OF A STATE'S SHARE GOES DIRECTLY TO ELIGIBLE LOCAL POLITICAL SUBDIVISIONS. SECTION 703(d). ELIGIBLE POLITICAL SUBDIVISIONS ARE DEFINED TO BE THOSE THAT LIE WITHIN 200 MILES OF ANY LEASED TRACT (INCLUDING TRACTS IN MORATORIA AREAS). SECTION 702(4). AS A CONSEQUENCE, A LOCALITY WITH OCS LEASING OFF ITS COAST IS ENTITLED TO SHARE IN 40% OF THE STATE'S ALLOCABLE SHARE, WITH ITS SHARE INCREASING THE CLOSER THE LEASED TRACT(S) ARE. THE REMAINING 20% OF A STATE'S ALLOCABLE SHARE GOES TO LOCALITIES THAT ARE DETERMINED BY THE GOVERNOR OR THE SECRETARY TO HAVE OCS IMPACTS. LOCALITIES WITH NO LEASING OR OCS IMPACTS ARE NOT ENTITLED TO ANY PART OF THE STATE'S ALLOCABLE SHARE. THIS CREATES A MAJOR INCENTIVE FOR LOCALITIES TO ACCEPT NEW OCS LEASING.TO ADDRESS THIS PROBLEM THE DEFINITION OF)ELIGIBLE POLITICAL SUBDIVISION. SHOULD EXCLUDE TRACTS LEASED AFTER ENACTMENT. SUCH TRACTS SHOULD ALSO BE OMITTED FROM THE CALCULATION OF HOW MUCH AN ELIGIBLE POLITICAL SUBDIVISION RECEIVES.
USES OF THE MONEY
It IS EXTREMELY IMPORTANT THAT FUNDS DISTRIBUTED TO STATE AND LOCAL GOVERNMENTS BE USED TO RESTORE AND ENHANCE COASTAL AND OCEAN RESOURCES AND NOT TO CAUSE FURTHER ENVIRONMENTAL DEGRADATION.
FOR THIS REASON, WE STRONGLY RECOMMEND THAT USES IN S. 25 BE RESTRICTED TO AMELIORATION OF ADVERSE ENVIRONMENTAL IMPACTS RESULTING FROM THE SITING, CONSTRUCTION, EXPANSION, OR OPERATION OF OCS FACILITIES, ABOVE AND BEYOND WHAT IS REQUIRED OF PERMITTED UNDER CURRENT LAW;
PROJECTS AND ACTIVITIES, INCLUDING HABITAT ACQUISITION, THAT PROJECT OR ENHANCE AIR QUALITY, WATER QUALITY, FISH AND WILDLIFE, OR WETLANDS IN THE COASTAL ZONE;
ADMINISTRATIVE COSTS THE STATE OR LOCAL GOVERNMENT INCURS IN APPROVING OR DISAPPROVING OR PERMITTING OCS DEVELOPMENT/PRODUCTION ACTIVITIES UNDER ANY APPLICABLE LAW INCLUDING CZMA OR OCSLA; AND/OR
REPURCHASE OF OCS LEASES.
THE USES OF THE MONEY AUTHORIZED IN SECTION 704 OF S. 25 DO NOT ENSURE THAT FURTHER ENVIRONMENTAL DEGRADATION DO NOT TAKE PLACE. THEIR FOCUS IS NOT ON RESTORING THE ENVIRONMENT OR ENSURING ACTIVITIES DO NOT FURTHER DEGRADE THE ENVIRONMENT. WHILE STATES MAY USE FUNDS FOR SUCH PURPOSES, THERE IS NO REQUIREMENT THAT THEY DO SO. MOREOVER, STATES AND LOCALITIES WOULD BE FREE TO USE THE MONEY FOR A HUGE ARRAY OF PURPOSES, INCLUDING PROMOTING MORE OFFSHORE DRILLING, HIGHWAY CONSTRUCTION AND THE LIKE.
WE URGE THAT OUR PROPOSED LANGUAGE BE SUBSTITUTED FOR THAT IN THE BILL, OR THAT THE APPROACH TAKEN IN S. 446, DISCUSSED BELOW, BE UTILIZED.
OVERSIGHT
TO ENSURE THAT FEDERAL DOLLARS ARE SPENT RESPONSIBLY, IN AN ENVIRONMENTALLY SENSITIVE MANNER THAT COMPLIES WITH FEDERAL LAW, IT IS IMPORTANT THAT THERE BE FEDERAL OVERSIGHT AND APPROVAL OF STATE AND LOCAL PLANS FOR UTILIZATION OF THE FUNDS. S. 25 PROVIDES NO SUCH OVERSIGHT. WHILE THE LEGISLATION REQUIRES THE STATES TO :DEVELOP PLANS FOR USE OF THE MONEY AND TO CERTIFY THE PLANS TO THE SECRETARY OF INTERIOR, THE SECRETARY IS GIVEN NO AUTHORITY TO REVIEW AND APPROVE THESE PLANS. IN ADDITION, IT IS THE STATE THAT DETERMINES CONSISTENCY OF LOCAL PLANS WITH FEDERAL LAW, NOT THE FEDERAL GOVERNMENT( SECTION 703(d)(5). THE LACK OF FEDERAL OVERSIGHT COMBINED WITH THE BROAD USES TO WHICH THE FUNDS MAY BE PUT AND THE LARGE:FEDERAL DOLLARS INVOLVED MEAN THAT ENVIRONMENTALLY DAMAGING PROJECTS COULD WELL BE FUNDED UNDER THIS LEGISLATION.
OFFSETS
IT IS ESSENTIAL THAT OCS IMPACT ASSISTANCE NOT BE FUNDED AT THE EXPENSE OF EXISTING ENVIRONMENTAL PROGRAMS.
S. 446, THE RESOURCES 2000 ACT
WE STRONGLY SUPPORT S. 446 BECAUSE IT ADHERES TO THE PRINCIPLES WE SUPPORT. IT DOES NOT PROVIDE INCENTIVES FOR NEW OFFSHORE LEASING OR DRILLING. THE BILL SPECIFICALLY EXCLUDES REVENUES FROM NEW LEASING AND PRODUCTION AS A FUNDING SOURCE FOR THE ENTIRE BILL. SEE SECTION 4(4), DEFINITION OF QUALIFIED OCS REVENUES.
THE BILL ALSO DOES NOT ALLOCATE REVENUES AMONG STATES (OR LOCAL JURISDICTIONS) BASED ON PROXIMITY TO LEASED TRACTS OR PRODUCTION. TITLE VI ("LIVING MARINE RESOURCES CONSERVATION, RESTORATION, AND MANAGEMENT ASSISTANCE") MAKES FINANCIAL ASSISTANCE AVAILABLE TO COASTAL STATES BASED ON COASTAL POPULATION AND SHORELINE MILES. SECTION 602(b)(1).
FINALLY, THE BILL REQUIRES THAT TITLE VI MONEY BE SPENT ON THE CONSERVATION OF LIVING MARINE RESOURCES, NOT ON ACTIVITIES THAT COULD CONTRIBUTE TO FURTHER ENVIRONMENTAL DEGRADATION. IT PROVIDES SIGNIFICANT NEW FUNDING ($300 MILLION) SPECIFICALLY FOR MARINE CONSERVATION.WE RECOMMEND THAT CONSIDERATION BE GIVEN TO HAVING SOME PORTION OF THE MONEY UNDER TITLE VI GO TO HELP FUND EXISTING UNDERFUNDED MARINE ANC COASTAL CONSERVATION PROGRAMS, SUCH AS COASTAL ZONE MANAGEMENT, MARINE SANCTUARIES, AND ESSENTIAL FISH HABITAT PROTECTION. A PORTION OF THE FUNDING UNDER THIS TITLE COULD BE USED TO ASSIST IN ACHIEVING THE GOALS OF AT LEAST SOME OF THESE PROGRAMS. SIMILARLY, WE WOULD LIKE THE OPPORTUNITY OF WORKING WITH SENATOR BOXER AND THE COMMITTEE ON THE STANDARDS THAT APPLY TO THE STATE CONSERVATION PLANS TO ENSURE THAT THESE PLANS ARE EFFECTIVE AS POSSIBLE AND ON WAYS TO ENCOURAGE STATES TO MOVE FROM THE PLANNING PHASE TO THE IMPLEMENTATION PHASE EXPEDITIOUSLY.
S. 819, THE NATIONAL PARK PRESERVATION ACT
WE STRONGLY SUPPORT THE APPROACH TAKEN IN S. 819, WHICH WOULD PROVIDE FUNDING TO ADDRESS IMPACTS TO NATIONAL PARKS, INCLUDING EVERGLADES NATIONAL PARK, THAT ORIGINATE BOTH INSIDE AND OUTSIDE THE PARKS, AS LONG AS THE LAND AND WATER CONSERVATION FUND IS FULLY FUNDED. WE ALSO STRONGLY SUPPORT THE FUNDING MECHANISM IN S. 819, WHICH LIKE S. 446, DOES NOT PROVIDE INCENTIVES FOR OCS ACTIVITIES.
CLINTON'S ADMINISTRATION "LANDS LEGACY INITIATIVE"
WE STRONGLY SUPPORT THE COASTAL AND OCEAN SEGMENTS OF THE LANDS LEGACY INITIATIVE, WHICH WOULD SUBSTANTIALLY INCREASE THE AMOUNT OF MONEY AVAILABLE FOR EXISTING KEY MARINE AND COASTAL PROGRAMS AS WELL AS PROVIDE FOR NEW INITIATIVES THAT WOULD PROTECT AND ENHANCE IMPORTANT COASTAL AND MARINE RESOURCES.
WE APPRECIATE THIS OPPORTUNITY TO TESTIFY AND LOOK FORWARD TO WORKING WITH THE COMMITTEE ON THIS IMPORTANT LEGISLATION.
END

LOAD-DATE: April 29, 1999

Document 36 of 92.


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