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``(12) Nothing in this Title shall be interpreted to repeal or modify any existing moratorium on leasing Federal OCS leases for
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``SEC. 702. DEFINITIONS.
``For purposes of this Act:
``(1) The term `allocable share' means, for a coastal State, that por tion of revenue that is available to be distributed to that coastal State under thi s title. For an eligible political subdivision of a coastal State, such ter m means that portion of revenue that is available to be distributed to that political subdivision under this title.
``(2) The term `coastal population' mea ns the population of political subdivisions, as determined by the most recent official data of the Census Bureau, contained in whole or in part within the designated coastal boundary of a S tate as defined in a State's coastal zone management program under the Coast Zone Management Act (16 U.S.C. §1455).
``(3) The term `coastline' has the same meaning that it has in the Submerged Lands Act (43 U.S.C. §1301 et seq.).
``(4) The term `eligible political subdivision' means a coastal political subdi vision of a coastal State which pol itical subdivision has a seaward boundary that lies within a distance of 200 miles from the geographic center of any leased tract. The Secretary shall annually provide a list of all eligible political subdivisions of each coastal State to the Go vernor of such State.
``(5) The term `political subdivision' means the local political jurisdiction immediately below the level of State government, including counties, parishes, and boroughs. If State law recognizes an entity of general government that functions in lieu of, and is not within, a county, parish, or borough, the Secretary may recognize an area under the jurisdiction of such other entities of general government as a political subdivision for purposes of this Act.
``(6) The term `coastal State' means an y State of the United States bordering on the Atlantic Ocean, the Pacific Ocean, the Arctic Ocean, the Bering Sea, the Gulf of Mexico, or any of the Great Lakes, Puerto Rico, Guam, American Samoa, the Virgin Islands, and the Commonwealth of the Northern Mariana Islands.
``(7) The term `distance' means minimum great circle distance, measured in statute miles.
``(8) The term `fiscal year' means the Federal Government's accounting period which begins on October 1st and ends on September 30th, and is designated by the calendar year in which it ends.
``(9) The term `Governor' means the highest elected official of a coastal State.
``(10) The term `leased tract' means a tract, leased under section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. §1337) for the purpose of drilling for, developing and producing oil and natural gas resources, which is a unit consisting of either a block, a portion of a block, a combination of blocks and/or portions of blocks, as specified in the lease, and as depicted on an Outer Continental Shelf Official Protraction Diagram.
``(11) The term `revenues' means all moneys received by the United States as bonus bids, rents, royalties (including payments for royalty taken in kind and sold), net profit share payments, and related late-payment interest from natural gas and oil leases issued pursuant to the Outer Continental Shelf Lands Act.
``(12) The term `Outer Continental Shelf' means all submerged lands lying seaward and outside of the area of `lands beneath navigable waters' as defined in section 2(a) of the Submerged Lands Act (43 U.S.C. §1301(a)), and of which the subsoil and seabed appertain to the United States and are subject to its jurisdiction and control.
``(13) The term `Secretary' means the Secretary of the Interior or the Secretary's designee.
``SEC. 703. IMPACT ASSISTANCE FORM ULA AND PAY MENTS.
``(a) ESTABLISHMENT OF FUND.--(1) There is established in the Treasury of the United States a fund which shall be known as the `Outer Continent Shelf Impact Assistance Fund ' (referred to in this Act as `the Fund'). The Secretary shall deposit in the Fund 27 percent of the revenues from each leased tract or portion of a leased tract lying seaward of the zone defined and governed by section 8(g) of the Outer Continental Shelf Lands Act (43 U.S.C. §1337(g)), or lying within such zone but to which section 8(g) does not apply, the geographic center of which lies within a distance of 200 miles from any part of the coastline or any coastal State.
``(2) The Secretary of the Treasury shall invest moneys in the Fund that are excess to expenditures at the written request of the Secretary, in public debt securities with maturities suitable to the needs of the Fund, as determined by the Secretary, and bearing interest at rates determined by the Secretary of the Treasury, taking into consideration current market yields on outstanding marketable obligations of the United States of comparable maturity.
``(b) PAYMENT OF STATES.--Notwithstanding section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. §1338), the Secretary shall, without further appropriation, make payments in each fiscal year to coastal States and to e ligible political subdivisions equal to the amount deposited in the Fund for the prior fiscal year, together with the portion of interest earned from investment of the funds which corresponds to that amount (reduced by any refunds paid under section 705(c)). Such payments shall be allocated among the coastal States and elig ible political subdivisions as provided in this section.
``(c) DETERMINATION OF STATES' ALLOCABLE SHARES.--
``(1) ALLOCABLE SHARE FOR EACH STATE.--For each coastal State, the Secr etary shall determine the State's allocable share of the total amount of the revenues deposited in the Fund for each fiscal year using the following weighted formula:
``(A) 25 percent to the States's allocable share shall be
based on the ratio of such State's shoreline miles to the shoreline miles of all
coastal States.
& &
``(2) MINIMUM STATE SHARE.--
``(A) IN GENERAL.--The allocable share of revenues determined by the Secretary under this subsection for each coastal State with an a pproved coastal management prog ram (as defined by the Coastal Zone Management Act (16 U.S.C. §1451) or which is making satisfactory progress toward one shall not be less than 0.50 percent of the total amount of the revenues deposited in the Fund for each fiscal year. For any other coastal State the alloc able share of such revenues shall not be less than 0.25 percent of such revenues.
``(B) RECOMPUTATION.--Where one or more coastal
States' allocab le shares, as
computed under paragraph (1), are increased by any amount under this paragraph,
the allocable share for all other coastal States shall be recomputed and reduced by the
same amount so that not more than 100 percent of the amount deposited in the
fund is allocated to all coastal States. The red uction shall be divided pro rata
among such other coastal States.
&
``(A) DEFINITIONS.--In this paragraph:
``(i) NONPRODUCING STATE.--The term `nonproducing State' means a State other than a producing State.
``(ii) PRODUCING STATE.--The term `producing State' means a State off the coast of which any leased tract or tract in State water produced oil, condensate, or natural gas during fiscal year 1998 that, during that fiscal year, was transported by pipeline to a processing facility in the State.
``(iii) TRACT IN STATE WATER.--The term `tract in State water' means a tract on land beneath navigable water described in section 2(a)(2) of the Submerged Lands Act (43 U.S.C. 1301(a)(2)).
``(B) ADJUSTMENT.--For any fiscal year, if the application of paragraphs (1) and (2) would result in an allocable share for any nonproducing State that is greater than the allocable share for any producing State--
``(i) the amount of the allocable share for each such producing State shall be increased to the amount of the highest allocable share for any such nonproducing State; and
``(ii) the amount of the allocable shares for States and other than States receiving increases under paragraph (2) shall be reduced in the amount of the increase under clause (i) in the proportion that the allocable share for each such other State after application of paragraphs (1) and (2) bears to the total amount allocated to all States under paragraphs (1) and (2).
``(d) PAYMENTS TO STATES AND POLITICAL SUBDIVISIONS.--Each coastal State's allocab le share shall be divided between the State and political subdivisions in that State as follows:
``(1) 40 percent of each State's allocable share, as determined under subsection (c), shall be paid to the State;
``(2) 40 percent of each State's allocable share, as determined under subsection (c), shall be paid to the eligible political subdivisions in such State, with the funds to be allocated among the eligible political subdivisions using the following weighted formula:
``(A) 50 percent of an eligible political subdivision's allocable share shall be based on the ratio of that eligible political subdivision's acreage within the State's coastal zone, as define d in an approved State coastal management prog ram (as defined by the Coastal Zone Management Act (16 U.S.C. §1451)), to the entire acreage within the coastal zone in such St ate; Provided, however, That if the State in which the eligible political subdivision is located does not have an approved coastal management prog ram, then the allocable share shall be based on the ratio of that eligible political subdivision's shoreline miles to the total shoreline miles in that coastal State.
``(B) 25 percent of an eligible political subdivision's allocable share shall be based on the ratio of such eligible political subdivision's coastal population to the coastal population of all eligible political subdivisions in that State.
``(C) 25 percent of an eligible political subdivision's allocable share shall be based on
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``(3) 20 percent of each State's allocable share, as determined under subsection (c), shall be allocated to political subdivisions in the coastal State that do n ot qualify as eligible political subdivisions but which are determined by the Governor or the Secretary to have impacts from Outer Continental Shelf related activities and which have an approved plan under this subsection.
``(4) PROJECT SUBMISSION.--Prior to the receipt of funds pursuant to this subsection for any fiscal year, a political subdivision must submit to the Governor of the State in which it is located a plan setting forth the projects and activities for which the political subdivision proposes to expend such funds. Such plan shall state the amounts proposed to be expended for each project or activity during the upcoming fiscal year.
``(5) PROJECT APPROVAL.--(A) Prior to the payment of funds pursuant to this subsection to any political subdivision for any fiscal year, the Governor must approve the plan submitted by the political subdivision pursuant to this subsection and notify the Secretary of such approval. State approval of any such plan shall be consistent with all applicable State and Federal law. In the event the Governor disapproves any such plan, the funds that would otherwise be paid to the political subdivision shall be placed in escrow by the Secretary pending modification and approval of such plan, at which time such funds together with interest thereon shall be paid to the political subdivision.
``(B) A political subdivision that fails to receive approval from the Governor for a plan may appeal to the Secretary and the Secretary may approve or disapprove such plan based on the criteria set forth in section 704; Provided, however, That the Secretary shall have no authority to consider an appeal of a political subdivision if the Governor of the State has certified in writing to the Secretary that the State has adopted a State program that by its express terms addresses the allocation of revenues to political subdivisions.
``(e) TIME OF PAYMENT.--(1) Payments to coastal States and poli tical subdivisions under this section shall be made not later than December 31 of each year from revenues received and interest earned thereon during the immediately preceding fiscal year. Payment shall not commence before the date 12 months following the date of enactment of this Act.
``(2) Any amount in the Fund not paid to coastal States and poli tical subdivisions under this section in any fiscal year shall be disposed of according to the law otherwise applicable to revenues from leases on the Outer Continental Shelf.
``SEC. 704. USES OF FUNDS.
``(a) AUTHORIZED USES OF FUNDS.--Funds received pursuant to this Act may be used by the coastal States and poli tical subdivisions for
``(1) air quality, water quality, fish and wildlife,
wetlands, outdoor recreation programs, or other coastal resources, incl uding shoreline protection and
coastal restoration; ``(3) planning assistance and administrat ive costs of complying with
the provisions of this subtitle;
``(4) uses related to the Outer Continental Shelf Lands
Act;
``(5) mitigating impacts of Outer Continental Shelf
activities, including onshore infrastructure and public service needs; and
``(6) deposit in a state or political subdivision
administered trust fund dedicated to uses consistent with this section.
``(b) COMPLIANCE WITH APPLICABLE LAWS.--All projects
and activities paid for by the moneys received from the Fund shall comply with
the state Coastal Zone Management
Plan and all applicable Federal, state and local environmental laws and
regulations.''
``SEC. 705. STATE PLANS: CERTIFICATION; ANNUAL REPORT;
REFUNDS.
``(a) STATE PLANS.--Within one year after the date
of enactment of this Act, the Governor of every state eligible to receive moneys
from the Fund shall develop a state plan for the use of such moneys and shall
certify the plan to the Secretary. The plan shall be developed with public
participation and shall include the plan for the use of such funds by every
political subdivision of the state eligible to receive moneys from the Fund. The
Governor shall certify to the Secretary that the plan was developed with public
participation and in accordance with all applicable state laws. The Governor
shall amend the plan, as necessary, with public participation, but not less then
every five years.
``(b) CERTIFICATION.--Not later than 60 days after
the end of the fiscal year, any political subdivision receiving moneys from the
Fund must certify to the Governor--
``(1) the amount of such funds expended by the political
subdivision during the previous fiscal year;
``(2) the amounts expended on each project or activity;
``(3) a general description of how the funds were expended;
and
``(4) the status of each project or activity, including a
certification that the project or activity is consistent with the state plan
development under paragraph (a).
``(c) REPORT.--On June 15 of each year, the Governor
of each State receiving moneys from the Fund shall account for all moneys so
received for the previous fiscal year in a written report to the Secretary and
the Congress. This report shall include a description of all projects and
activities receiving funds under this Act, including all information required
under subsection (a).
``(d) REFUNDS.--In those instances where through
judicial decision, administrative review, arbitration, or other means there are
royalty refunds owed to entities generating revenues under this Act, 27 percent
of such refunds shall be paid from amounts available in the Fund.''
SECTION. 201. SHORT TITLE.
This title may be cited as the ``Land and Water
Conservation Fund Reform Act of 1998''.
SEC. 202. FINDINGS AND PURPOSE.
``(a) FINDINGS.--The Congress finds the following:
``(1) The Land and Water Conservation Fund Act of 1965
embodied a visionary concept--that a portion of the proceeds from Outer
Continental Shelf mineral leading revenues and the depletion of a nonrenewable
natural resource should result in a legacy of public places accessible for
public recreation and benefit from resources belonging to all people, of all
generations, and the enhancement of the most precious and most renewable natural
resource of any nation, healthy and active citizens.
(2) The States and local governments were to occupy a
pivotal role in accomplishing the purposes of the Land Water Conservation Fund
Act of 1965 and the Act originally provided an equitable portion of funds to the
States, and through them, to local governments.
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