WASHINGTON -- After weeks of tough negotiations, Alaska Sen. Frank Murkowski has convinced key members of the Senate Energy and Natural Resources Committee to support legislation that would share revenues derived from offshore oil and gas development with the states most impacted by these activities. The compromise also finally fully funds the federal Payment In Lieu of Taxes program, nearly doubling the amount that Alaska cities and boroughs receive to offset federal land ownership in the state.

"This is an important measure that will affect all people across the nation, from Little Leaguers to farmers, from historic preservationists to hunters. It also helps coastal states, like Alaska, by finally remedying the tremendous inequity in the distribution of revenues generated by offshore oil and gas production from the federal Outer Continental Shelf (OCS). This compromise remedies the inequities to coastal states, while helping everyone in the nation and it does so without Congress losing control over one dime of potential land acquisition funds," said Murkowski after reaching the agreement with Senate Energy and Natural Resources Committee ranking minority member Sen. Jeff Bingaman, D-N.M.

The bill, the Senate version of the Conservation and Reinvestment Act (CARA) (H.R. 701), will come before the full committee for formal review starting on Tuesday, July 18.

"Outside of the highway trust fund, this is the largest guaranteed infusion of federal funds Alaska has ever seen. This will help our communities, our coasts, our fisheries, our forests, our families and our wildlife resources," said Murkowski.

Murkowski said the bill is a substitute different in significant aspects from a bill successfully managed in the House by Alaska Congressman Don Young. The Senate version differs by fully funding the Payment In Lieu of Taxes program that is of particular importance to western public-land states since it reimburses cities, counties and boroughs for lost taxes because of federal ownership of lands. The Senate bill also fully funds the Youth Conservation Corps, a new Coastal Stewardship program and a new Forest Legacy Program.

The Senate bill includes $325 million for PILT payments, compared to the $116.5 million that the program has averaged the past six years from general funds. Alaska under the bill would receive about $22 million in PILT funding, about double this year's expected $9 million in funding. Last year Congress expanded the PILT program to allow unorganized boroughs in Alaska to participate. Overall, Alaska when all the programs are added up, will receive about $164 million a year in aid under the bill, about $7 million more than revised estimates of the original House bill¹s funding for the state.

"While we've made progress in recent years in increasing funding for PILT, federal land states have long been shortchanged. This bill will remedy that injustice," said Murkowski.

He said he was most proud of a complex change that he hopes will address the concern of private property rights advocates, that removes a budget hurdle for the bill, and that still fully funds a narrowly defined list of environmental programs and a host of hunting-wildlife programs nationwide.

Noting that private property groups have expressed concern that the bill's $450 million yearly allocation to the federal Land & Water Conservation Fund (L& WCF) might prove an entitlement allowing Administrative federal land acquisitions without any oversight, Murkowski said the revised bill adds several key protections to ease private property owners concerns.

"Western Senators with states that are predominantly owned by the Federal government do not look kindly on a fund they believe will allow the government to add to its largess of land. I agree with these concerns and believe we have addressed them in this bill," said Murkowski.

"Lands acquired under CARA must be from willing sellers and must be approved by the Congress. The Department of Interior will have no discretionary funds to spend on land acquisition. It all must be appropriated, and the Senate Energy and Natural Resources Committee will have the right to review the list of acquisitions."

There is also a section in the bill that guarantees private property rights. It reads, "Nothing in this Act shall authorize that private property be taken for public use, without just compensation." And the bill contains an even more sweeping protection for private property owners. It reads: "Nothing in this Act creates any new authority for Federal agencies to apply regulations on privately owned land."

As in the House, the bill divides OCS revenues between the federal treasury and the states. "This bill requires a healthy OCS leasing program for its revenues. But assuming that oil leasing continues, it will guarantee significant conservation funds for the future," said Murkowski.

The breakdown for the roughly $3 billion allocated for conservation programs, is:

• Coastal Impact Assistance ($430 million): This money would go to the seven producing oil and gas coastal states, including Alaska, $35 million going to each state and the rest of the money ($185 million) going to benefit states based on OCS production. Some 20 percent of a state's funds would be paid directly to coastal political subdivisions -- those communities within 200 miles of OCS leases.

• Land & Water Conservation Fund - Federal Lands ($450 million): This funds the 1965 program for park land acquisition nationwide. In the past five years federal land acquisition funding has averaged $400 million -- $418 million being appropriated this year. The measure will stabilize funding, while continuing the requirement of congressional control over the selection of all projects.

• Stateside Land and Water Conservation Fund ($450 million): The state-side portion of the L&WCF provides grants to states and local communities for the planning, acquisition and development of park and recreation facilities. Over 35 years that fund has provided more than $3.2 billion for 37,000 grants that have built Little League fields and picnic areas. In Alaska the program has funded Juneau¹s Marine Park, Anchorage's Russian Jack park, and facilities in most towns. This bill changes the allocation formula to benefit smaller population states with 60 percent equally divided amongst all states and the remaining 40 percent based on population. (Current law is 40% equally divided and 60% population.)

• State Wildlife Conservation and Restoration programs ($350 million): As in the House bill, this mark provides $350 million for State Wildlife Conservation and Restoration Programs. This nearly doubles the funds available for wildlife conservation under the existing Pittman-Robertson and Wallop-Breaux Acts. This funding is mostly used to support wildlife programs of importance to hunters and fishermen. Alaska would gain $17 million a year in such funding.

• Payment in Lieu of Taxes ($325 million): See above.

• Urban Park & Recreation Recovery Act (UPARR) ($75 million): These grants can provide up to 70 percent of a project cost, and have been instrumental, for example, in turning parking garages and old fire houses into recreation centers in urban areas.

• Historic Preservation Fund ($150 million):. The bill guarantees at least $75 million a year in funding for state and tribal historic preservation efforts; $15 million for the American Battlefield Protection Program; and $60 million for Federal historic preservation efforts. No federal land acquisition is allowed.

• National Park Service/Indian Lands Restoration ($125 million): This provides money for significant natural, cultural or historical resources at National Park Service units that are threatened or in need of restoration. This includes annual funding for financial assistance for the restoration of tribal lands.

There are also a series of new elements in the Senate bill. They include:

• Forest Legacy / Farmland Protection Programs($50 million each): Fifty million dollars will be available to the Forest Legacy Program that states can use to buy conservation easements on forest lands threatened with development to allow for continued productive economic use of the land, such as timber harvesting. And another $50 million would go to the Farmland Protection Program that limits development of farmland to non-agricultural uses.

  "The bill for forests will fund such things including hazardous fuel reduction (brushing), tree planting and thinning," said Murkowski.

• Youth Conservation Corps. ($60 million): Established in 1970, the Youth Conservation Corps (YCC) is a summer employment program on public lands for youth between the ages of 15 and 18. This would fully fund the program.

  "The bill helps to provide jobs for young people for activities on public lands, including such critical things as hazardous fuel reduction (brushing), tree planting and thinning," said Murkowski.

• Coastal Stewardship ($250 million): This program would be administered by the Secretary of Commerce for the benefit of coastal states. The funds could be used to protect coastal or marine habitats, protect water quality and coastlines, and provide assistance to manage the impact of growth and development on coastal or marine habitats and natural resources, including coastal community fishery assistance programs.

• Cooperative Enforcement and Research and Management ($100 million): The Cooperative Enforcement and Research and Management program is a $100 million grant program administered by the Secretary of Commerce to help with fisheries management. It supports critical state and regional efforts to protect fisheries and other living marine resources.

• Urban and Community Forestry program ($50 million): Established in 1990, the Urban and Community Forestry program provides technical and financial assistance to plan, protect, establish and manage forests and related resources in cities and towns. This would stabilize funding at $50 million a year. It does not provide for federal land acquisition.

• Coral Reef Protection ($25 million): The Secretaries of Commerce and Interior will have $25 million split between the two agencies for activities that preserve or sustain the health and viability of coral reef ecosystems.
  -30-

  MEDIA NOTE: There will be a satellite feed on the bill this afternoon. It will come at a new earlier time of 1:15 to 1:30 p.m. ADT this afternoon on Telestar 6, transponder 7v, channel 7, downlink 3840. Audio will be available later in the day at 1-800-545-1267 then press 322.