§1356a Coastal Impact Assistance Program

Summary

Provides $250,000,000 each year for fiscal years 2007, 2008, 2009, and 2010 to certain coastal States and local coastal governments. Key terms: coastal political subdivision (local government with any part inside a State’s coastal zone and within 200 nautical miles of a leased tract), coastal population (Census count of that local area), producing State (coastal State within 200 nautical miles of a lease), leased tract (an oil or gas lease), qualified Outer Continental Shelf revenues (money the U.S. gets from certain offshore oil and gas leases), leasing moratoria (areas where leasing was blocked on January 1, 2005), distance (shortest great circle distance in statute miles), and political subdivision (county, parish, or borough). The Secretary divides the $250 million among producing States based on each State’s share of qualified offshore revenues (use 2006 revenues for 2007–2008 and 2008 revenues for 2009–2010). If a lease lies near more than one State, money for that lease is split inversely by how far each State’s nearest coastline is from the lease. No State gets less than 1 percent. Thirty-five percent of each State’s share must go to its coastal local governments. That local share is split 25 percent by coastal population, 25 percent by miles of coastline, and 50 percent by distance to the leased tracts. Special rules apply for Louisiana (coastal-less areas count as one-third the average coastline length) and Alaska (split equally between the two closest local governments). Leased tracts in areas under moratoria on January 1, 2005 are excluded unless they were in production that day. The Governor of each producing State must send a coastal impact plan to the Secretary by July 1, 2008, after getting local and public input. The Secretary must approve or reject any plan or plan change within 90 days and will not pay a State or its local governments until the plan is approved. If a State has no approved plan, its share is split equally among the other producing States or held in escrow during appeals; the Secretary may hold funds if a State is trying in good faith to finish a plan. Money may be used only for: coastal and wetland conservation or restoration; fixing damage to fish, wildlife, or natural resources; planning and administrative costs to follow these rules; carrying out approved marine or coastal management plans; and funding onshore infrastructure or public services to reduce the impacts of offshore activity. No more than 23 percent of a year’s funds may be used for planning/administration and onshore infrastructure combined. If funds are spent improperly, further payments stop until the money is repaid or put to allowed uses. For a national oil spill, the Secretary may immediately release money for eligible projects that respond to the spill, but the State or local government must submit any required plan updates or extra information within 90 days or further funds will be withheld.