The Conservation and Reinvestment Act of 1999 will provide impact assistance to coastal states, aid to state parks and conservation initiatives as well as aid to wildlife. Currently, nearly 100% of the funds that the federal government receives annually from Outer Continental Shelf (OCS) oil and gas development goes to the federal treasury. The treatment of these revenues is different from the treatment of the revenues from federal oil and gas development onshore. Under the Mineral Funds Leasing Act, fifty percent of the revenues from federal oil and gas development onshore is distributed annually to the "host " state in an effort to mitigate the impacts associated with oil and gas development. A glaring discrepancy exists for coastal states that have adjacent federal offshore oil and gas activity.
The time has come to take the proceeds from this non- renewable resource for the purpose of reinvesting a portion of these revenues in the conservation and enhancement of our renewable resources. To continue to do otherwise, as we have over the last HIty years, is fiscally irresponsible. In this bill, my cosponsors and I propose to take fifty percent of these revenues, as we do in onshore areas, for the purpose of making wise investments in our environment. The Conservation and Reinvestment Act of 1999 proposes three distinct reinvestment programs.
Title I dedicates 27% of the annual federal oil and gas revenues to coastal impact assistance. The coastal impact assistance program contained in Title I is different from any previous plan considered by Congress and is based on the October, 1997 recommendations ofthe OCS Advisory Committee to the Department of the Interior.
Title I provides coastal impact assistance to all coastal states and territories, not just those states that host federal OCS oil and gas development. The funding goes directly to States and local governments for improvements in air and water quality, fish and wildlife habitat, wetlands, or other coast resources. These revenues to coastal states will help offset a range of costs unique to maintaining a coastal zone for specific enumerated uses. The formula for allocating this revenue is based on population, miles of coastline and proximity to production. A portion of the state's allocation is paid directly to coastal counties, parishes and boroughs. These coastal impact assistance funds can be used for environmental mitigation and infrastructure services associated with offshore activity, as well as for coastal environmental purposes by states that do not produce oil and gas. While there has been some discussion about the intent of using this formula, I would like to take this opportunity to assure all the members of this committee that this legislation is neither pro-drilling nor anti-drilling. This is a revenue sharing bill—uniquely. I recognize, however, the concerns raised by my colleagues and interested parties regarding the proximity formula, and I would like to work with them on that point.
Title II provides a permanent stream of revenue for the State and Federal sides of the Land and Water Conservation Fund, as well as for the Urban Parks and Recreation Recovery Program. Under the bill, funding to the LWCF becomes automatic at 16% of annual revenues. Receiving just under half this amount, the state side of LWCF will provide funds to state and local governments for land acquisition, urban conservation and recreation projects--all under the discretion of state and local authorities. The Urban Parks and Recreation program would enable cities and towns to focus on the needs of its populations within our more densely inhabited areas with fewer greenspaces, playgrounds and soccer fields for our youth. Stable funding, not subject to appropriations, will provide greater revenue certainty to state and local planning authorities. A stable baseline will be established for Federal land acquisition through the LWCF at a higher level than the historical average over the past decade. Federal LWCF, which is the one Federal program explicitly designed to help states and communities preserve open space, will receive just under half of the amount in this title of the bill. And, nothing in this bill will preclude additional Federal LWCF funds to be sought through the annual appropriations process. LWCF dollars will be used for land acquisition in areas which have been and will be authorized by Congress. Property will be acquired on a willing seller basis. The bill will restore Congressional intent with respect to the LWCF, the goal of which is to share a significant portion of revenues from offshore development with the states to provide for protection and public use of the natural environment. While there have been some provisions added to the bill that elicit varying responses from Members and groups,
I firmly believe that a compromise exists on the Land and Water Conservation Fund that will garner broad support.
Finally, the wildlife conservation and restoration provision in Title III of this bill guarantees funding of 7% of annual OCS revenues for wildlife conservation initiatives, through the Pittman-Robertson Act. This program enjoys a great deal of support and would be enhanced without imposing new taxes.
These funds will be allocated to all states for wildlife conservation for non-game and game species, with a principle benefit realized through the prevention of species from becoming endangered or threatened under the Endangered Species Act. I look forward to working with the Chairman and other members of this committee to make this program happen.
I believe that this measure will be a major step forward in the nation's effort to conserve and enhance our coastal areas as well as other special areas that will be important to future generations, as well as for irreplaceable wildlife resources. I also wanted to take this opportunity to commend the efforts of Senators Boxer and Feinstein who have introduced similar measures which address some of the same issues as those highlighted in the Conservation and Reinvestment Act of 1999.
Thank you, Mr. Chairman.