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Conservation Funding: Coastal Impact Assistance

Background - Coastal Impact Assistance in CARA and Resources 2000

All the conservation funding proposals Congress is considering include specific provisions relating to coastal states.

Two of the most prominent bills would devote $1.24 billion annually (based on projected OCS revenue in the year 2000 of $4.59 billion) to 35 coastal states and territories, including the Great Lakes states. Coastal states have significant funding needs to mitigate the effects of offshore drilling.

There is concern that because the allocation of funds under these bills is partly based on the amount of oil and gas drilling that occurs off the shore of those states, the proposals could become an incentive for increasing offshore drilling. Also, funds could be used for inappropriate infrastructure development rather than environmental restoration and conservation.

Other measures Congress is considering also include funds for coastal states, but base their allocations so that no incentive for offshore drilling would be created, or do not link available funding to offshore drilling at all.


Background: Coastal Conservation

Fragile coastal ecosystems around the country face treats from development and other types of human disturbances. It is hard to overstate the devastating environmental impacts of OCS drilling — impacts that result from the initial exploration and development of the platforms; from the production, transportation, and refining of oil an gas; and ultimately, from our own consumption of OCS petroleum. The lion's share of these impacts are borne by America's coastal zones and fragile marine ecosystems, which rank among our most biologically rich and economically significant natural systems. In general, coastal states that have oil and gas drilling off their shores suffer from the most chronic and direct impacts of this industry. However, the recent oil spill from a grounded tanker in Coos Bay, Oregon, clearly illustrates the hazards that oil and gas related activities pose to all of the nation's important marine and coastal resources.

Our coasts are now home to half the populace, which places incredible pressures on estuaries, tidal wetlands, beaches and other coastal habitat. As our population continues to expand, it will become more difficult to maintain intact, functioning coastal ecosystems. If we do not protect these coastal resources, we will lose economically valuable fisheries, irreplaceable outdoor recreational opportunities, and unique assemblages of species.

Our nation's marine resources face similar pressures. Increased pollution, climate change, over-harvesting of fisheries, and other factors are threatening the survival of many marine species — including endangered marine mammals like the blue whale and Hawaiian monk seal, and commercially valuable fish species like red snapper and bluefin tuna. These are resources we cannot afford to lose.

The use of Outer Continental Shelf oil and gas leasing revenues for coastal and marine conservation work in areas with, and without, offshore drilling is both appropriate and necessary.

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Coastal Conservation Funding in CARA and Resources 2000

The Conservation and Reinvestment Act (CARA - H.R. 701/S. 25) provides 27 percent of annual Outer Continental Shelf (OCS) oil and gas leasing revenues to 35 coastal states (including the Great Lakes states) for use in the following areas: air and water quality; fish, wildlife, wetlands, and coastal restoration; and in states with offshore drilling, for onshore infrastructure and public service needs.

Resources 2000 (H.R. 798/S. 446) also contains a funding program that addresses coastal conservation, but it places more emphasis on ocean species and marine ecosystems that CARA. Unlike CARA, Resources 2000 does not provide special funding to states that have OCS oil and gas development off of their shores. Any bill that passes into law should incorporate the following in its coastal conservation title:




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