§1356a Coastal Impact Assistance Program

Summary

The federal government must pay $250,000,000 each year for fiscal years 2007, 2008, 2009, and 2010 to certain coastal States and nearby local governments to help with the impacts of offshore oil and gas activities. The money goes only to “producing States” and to coastal political subdivisions in those States, and the Secretary must approve a State plan before any funds are paid. If a State has no approved plan, its share may be split equally among the other producing States or held in escrow while appeals or plan work continue. Key defined terms (one line each): coastal political subdivision — a local government partly inside a State’s coastal zone and within 200 nautical miles of a lease center; coastal population — Census population of that local area; coastal State — a State as defined in the Coastal Zone Management Act; coastline — as defined elsewhere in law; distance — the shortest great-circle distance in statute miles; leased tract — an oil or gas lease area; leasing moratoria — the 2005 bans on leasing certain areas; political subdivision — local government below the State level; producing State — a coastal State within 200 nautical miles of a lease center (with some moratoria exceptions); qualified Outer Continental Shelf revenues — federal oil and gas payments tied to leases within 200 nautical miles, including bonuses, rents, royalties, and related interest (excluding revenues from moratoria areas unless already producing on January 1, 2005). How funds are divided: each year funds are split among producing States based on their share of qualified Outer Continental Shelf revenues (FY2007–2008 use FY2006 revenue data; FY2009–2010 use FY2008 data). If more than one State lies within 200 nautical miles of a lease, the money for that lease is split inversely by distance to the lease center. No State gets less than 1 percent. The Secretary must pay coastal political subdivisions 35 percent of each producing State’s share. That 35 percent is split so 25 percent is based on coastal population, 25 percent on miles of coastline, and 50 percent on inverse distance to lease centers, with special rules for Louisiana and Alaska and the same moratoria exclusions described above. What the money can be used for: coastal conservation, restoration, and wetland work; fixing damage to fish, wildlife, or natural resources; planning and related administrative costs; carrying out approved marine or coastal management plans; and onshore infrastructure and public services to offset offshore activity impacts. No more than 23 percent of a recipient’s yearly funds may be used for planning/administration and onshore infrastructure/public services combined. In an oil spill of national significance, the Secretary may immediately approve and pay for spill-response projects that fit these uses, but States must submit required plan updates or extra information within 90 days or further payments will stop. The Secretary must approve or disapprove State plans or plan amendments within 90 days of submission.