HR 701 IH

To provide Outer Continental Shelf Impact Assistance to State and local governments, to amend the Land and Water Conservation Fund Act of 1965, the Urban Park and Recreation Recovery Act of 1978, and the Federal Aid in Wildlife Restoration Act (commonly referred to as the Pittman-Robertson Act) to establish a fund to meet the outdoor conservation and recreation needs of the American people, and for other purposes.

February 10, 1999

Mr. YOUNG of Alaska (for himself, Mr. DINGELL, Mr. TAUZIN, Mr. JOHN, Mr. BAKER, Mr. RANGEL, Mr. CHAMBLISS, Mr. PETERSON of Minnesota, Mr. ROGERS, Mr. TANNER, Mr. LIVINGSTON, Mr. LAMPSON, Mr. MCCRERY, Mr. TOWNS, Mr. GOSS, Mr. KILDEE, Mr. NORWOOD, Mr. SHOWS, Mr. HILLIARD, Mr. SESSIONS, Mr. LUTHER, Mr. ROEMER, Ms. MCCARTHY of Missouri, Mr. WEYGAND, Mr. WELLER, Mr. WATKINS, Mr. JEFFERSON, Ms. JACKSON-LEE of Texas, Mr. COOKSEY, Mr. HOLDEN, Mr. BASS, Ms. EDDIE BERNICE JOHNSON of Texas, Mr. GILCHREST, Mrs. BONO, and Mr. DUNCAN) introduced the following bill; which was referred to the Committee on Resources

To provide Outer Continental Shelf Impact Assistance to State and local governments, to amend the Land and Water Conservation Fund Act of 1965, the Urban Park and Recreation Recovery Act of 1978, and the Federal Aid in Wildlife Restoration Act (commonly referred to as the Pittman-Robertson Act) to establish a fund to meet the outdoor conservation and recreation needs of the American people, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Conservation and Reinvestment Act of 1999'.

TITLE I--OUTER CONTINENTAL SHELF IMPACT ASSISTANCE

SEC. 101. FINDINGS.

The Congress finds and declares that--

(1) the Nation owns valuable mineral assets that are located both onshore and on the Federal Outer Continental Shelf and the policy of the Federal Government is to develop those resources for the benefit of the Nation, under certain restrictions that are designed to prevent environmental damage and other adverse impacts;

(2) development of these resources of the Nation is accompanied by unavoidable environmental impacts and public service impacts in the States that host this development whether the development occurs onshore or on the Federal Outer Continental Shelf;

(3) the Federal Government has a responsibility to assist States that host the development of Federal mineral assets to mitigate adverse environmental and public service impacts incurred due to that development;

(4) the Federal Government discharges its responsibility to States that host onshore Federal mineral development by sharing 50 percent of the revenue derived from the mineral development with the host State pursuant to section 35 of the Mineral Leasing Act;

(5) today Federal mineral development is occurring as far as 200 miles offshore and occurs off the coasts of only 6 States and section 8(g) of the Outer Continental Shelf Lands Act does not adequately compensate these States for the onshore impacts of the offshore Federal mineral development;

(6) Federal Outer Continental Shelf mineral development is an important and secure source of our Nation's supply of oil and natural gas;

(7) the Outer Continental Shelf Advisory Committee of the Department of the Interior, consisting of representatives of coastal States, recommended in October 1997, that Federal mineral revenue derived from the entire Outer Continental Shelf be shared with all coastal States and territories to mitigate onshore impacts from Federal offshore mineral development and for other environmental mitigation;

(8) Federal mineral assets are a nonrenewable, capital asset of the Nation; the production and sale of this asset produces revenue to the Nation that is also a capital asset of the Nation; thus, a portion of the revenue derived from the production and sale of Federal minerals should be reinvested in the Nation through environmental mitigation and public service improvements; and

(9) it is fair to share a portion of the revenue derived from Federal Outer Continental Shelf production with the impacted States; and an emphasis on where this production takes place should not be construed as incentive for development.

SEC. 102. DEFINITIONS.

For purposes of this title:

(1) The term `allocable share' means, for a coastal State, that portion of revenue that is allocated to that coastal State under section 103(c). For an eligible political subdivision of a coastal State, such term means that portion of revenue that is allocated to that political subdivision under section 103(e).

(2) The term `coastal population' means the population of all 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 State as defined in a

State's coastal zone management program under the Coastal Zone Management Act (16 U.S.C. 1455).

(3) The term `coastal State' means any 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.

(4) The term `coastline' has the same meaning that it has in the Submerged Lands Act (43 U.S.C. 1301 et seq.).

(5) The term `distance' means minimum great circle distance, measured in statute miles.

(6) The term `eligible political subdivision' means a political subdivision of a coastal State which political 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 Governor of such State.

(7) 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.

(8) The term `Governor' means the highest elected official of a coastal State.

(9) 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.

(10) 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.

(11) 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 title.

(12) The term `qualified Outer Continental Shelf revenues' means all moneys received by the United States 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 of any coastal State, including 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.

(13) The term `Secretary' means the Secretary of the Interior or the Secretary's designee.

(14) The term `the Fund' means the Outer Continental Shelf Impact Assistance Fund established under section 103(a).

SEC. 103. IMPACT ASSISTANCE FORMULA AND PAYMENTS.

(a) ESTABLISHMENT OF FUND- (1) There is established in the Treasury of the United States a fund which shall be known as the `Outer Continental Shelf Impact Assistance Fund'. The Secretary shall deposit in the Fund in this section 27 percent of the qualified Outer Continental Shelf revenues.

(2) No revenues shall be placed in the Fund from a leased tract or portion of a leased tract that is located in a geographic area subject to a leasing moratorium on January 1, 1999, unless the lease was issued prior to the establishment of the moratorium and was in production on January 1, 1999.

(3) 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. All interest earned on such moneys shall be available, without further appropriation, for obligation or expenditure under chapter 69 of title 31 of the United States Code (relating to PILT) or under section 401 of the Act of June 15, 1935 (49 Stat. 383; 16 U.S.C. 715s).

(b) PAYMENT TO 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 eligible political subdivisions equal to the amount deposited in the Fund for the prior fiscal year (reduced by any refunds paid under section 106(b) and not including any interest earned as provided in subsection (a)(3)). Such payments shall be allocated among the coastal States and eligible political subdivisions as provided in this section.

(c) DETERMINATION OF STATES' ALLOCABLE SHARES-

(1) ALLOCABLE SHARE FOR EACH STATE- For each coastal State, the Secretary 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) 50 percent of such revenues shall be allocated to each State as provided in paragraph (2).

(B) 25 percent of such revenues shall be allocated to each State based on the ratio of each State's shoreline miles to the shoreline miles of all coastal States.

(C) 25 percent of such revenues shall be allocated to each State based on the ratio of each State's coastal population to the coastal population of all coastal States.

(2) OFFSHORE OUTER CONTINENTAL SHELF PRODUCTION SHARE- If any portion of a coastal State lies within a distance of 200 miles from the geographic center of any leased tract, such State shall receive part of its allocable share under paragraph (1)(A) based on the Outer Continental Shelf oil and gas production offshore of such State. Such part of its allocable share shall be inversely proportional to the distance between the nearest point on the coastline of such State and the geographic center of each leased tract or portion of the leased tract (to the nearest whole mile), as determined by the Secretary. In applying this paragraph a leased tract or portion of a leased tract shall be excluded if the tract or portion is located in a geographic area subject to a leasing moratorium on January 1, 1999, unless the lease was issued prior to the establishment of the moratorium and was in production on January 1, 1999.

(3) MINIMUM STATE SHARE-

(A) IN GENERAL- The allocable share of revenues determined by the Secretary under this subsection for each coastal State with an approved coastal management program (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 allocable share of such revenues shall not be less than 0.25 percent of such revenues.

(B) RECOMPUTATION- Where one or more coastal States' allocable shares, as computed under paragraph (1) and (2), 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 reduction shall be divided pro rata among such other coastal States.

(d) PAYMENTS TO STATE- 50 percent of each State's allocable share, as determined under subsection (c), shall be paid to the State, except that in the case of a coastal State in which there is no eligible political subdivision, 100 percent of the State's allocable share, as determined under subsection (c), shall be paid to the State.

(e) PAYMENTS TO POLITICAL SUBDIVISIONS- 50 percent of each State's allocable share, as determined under subsection (c), shall be paid to the eligible political subdivisions in such State. Such payments shall be allocated among the eligible political subdivisions of the State according to ratios that are inversely proportional to the distance between the nearest point on the seaward boundary of each such eligible political subdivision and the geographic center of each leased tract or portion of the leased tract (to the nearest whole mile), as determined by the Secretary.

(f) TIME OF PAYMENT- (1) Payments to coastal States and eligible political subdivisions under this section shall be made not later than December 31 of each year from revenues received 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 eligible political subdivisions under this section in any fiscal year shall be disposed of according to the law otherwise applicable to receipts from leases on the Outer Continental Shelf.

SEC. 104. USES OF FUNDS.

Funds received pursuant to this title shall be used by the coastal States and eligible political subdivisions for the following projects and activities:

(1) Air quality, water quality, fish and wildlife (including cooperative or contract research on marine fish), wetlands, or other coastal and estuarine resources.

(2) Other activities of such State or political subdivision, authorized by the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.), the provisions of subtitle B of title IV of the Oil Pollution Act of 1990 (104 Stat. 523), or the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.).

(3) Administrative and planning costs of complying with the provisions of this subtitle. Up to one percent of the amounts made available to any State in any fiscal year under this title may be used for purposes of administrative costs.

(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.

SEC. 105. OBLIGATIONS OF STATES AND ELIGIBLE POLITICAL SUBDIVISIONS.

(a) STATE PLANS- Within 1 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 than every 5 years.

(b) PROJECT SUBMISSION- Prior to receiving funds pursuant to this title for any fiscal year, an eligible political subdivision shall submit to the Governor of the State in which it is located a plan setting forth the projects and activities for which the eligible 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.

(c) PROJECT APPROVAL- Prior to the payment of funds pursuant to this title to any eligible political subdivision for any fiscal year, the Governor must approve the plan submitted by the eligible political subdivision pursuant to subsection (b) 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 eligible 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 eligible political subdivision. Any eligible political subdivision that fails to receive approval from the Governor of such plan may appeal to the Secretary and the Secretary may approve or disapprove such plan based on the eligible uses set forth in section 104.

(d) CERTIFICATION- Not later than 60 days after the end of the fiscal year, any eligible political subdivision receiving funds under this title shall 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.

The certification under paragraph (4) shall include a certification that a project or activity is consistent with the State plan developed under subsection (a).

SEC. 106. ANNUAL REPORT; REFUNDS.

(a) REPORT- On June 15 of each year, the Governor of each State receiving moneys from the Fund under this title shall account for all moneys so received for the previous fiscal year in a written report to the Secretary and the Congress. The report shall include a description of all projects and activities receiving funds under this title, including all information required under section 105(c).

(b) 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 title, 27 percent of such refunds shall be paid from amounts available in the Fund.

TITLE II--STATE, LOCAL, AND URBAN CONSERVATION AND RECREATION

SEC. 201. FINDINGS AND PURPOSE.

(a) FINDINGS- The Congress finds the following:

(1) The Land and Water Conservation Fund Act of 1965 embodied a concept that a portion of the proceeds from Outer Continental Shelf mineral leasing revenues and the depletion of a nonrenewable

natural resource should result in a legacy of places accessible to the public for conservation and 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 and Water Conservation Act of 1965 and the Act originally provided an equitable portion of funds to the States, and through them, to local governments.

(3) Because of competition for funding and the limited availability of Federal moneys, the original intention of the Land and Water Conservation Fund Act of 1965 has been abandoned and, in recent years, States have not received an equitable proportion of direct funding.

(4) With population growth and urban sprawl, the demand for conservation and recreation areas at the State and local level, including urban localities, remains a high priority.

(5) There has been an increasing need for Federal moneys to be made available for Federal purposes under the Land and Water Conservation Fund Act of 1965, with lands identified as important for Federal acquisition not being acquired for several years due to insufficient funds.

(b) PURPOSE- The purpose of this title is to complement State, local, and private commitments envisioned in the Land and Water Conservation Fund Act of 1965 and the Urban Park and Recreation Recovery Act of 1978 by providing grants for State, local, and urban conservation and recreation needs, and to provide a secure source of Federal purposes under the Land and Water Conservation Fund Act of 1965.

SEC. 202. FUNDING FOR STATE, LOCAL, AND URBAN CONSERVATION AND RECREATION.

(a) REVENUES- Section 2 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-5(c)(1)) is amended by redesignating paragraph (1) of subsection (c) as subsection (d) and by amending subsection (c) to read as follows:

`(c) OUTER CONTINENTAL SHELF REVENUES- (1) 23 percent of the qualified Outer Continental Shelf revenues (as defined in section 102 of the Conservation and Reinvestment Act of 1999) shall also be credited to a separate account in the Land and Water Conservation Fund in the Treasury in each fiscal year through September 30, 2015. Revenues covered into the fund under this subsection shall be available, without further appropriation, in the next succeeding fiscal year to carry out this Act. To the extent that such revenues in a fiscal year exceed $900,000,000, such excess shall be available, without further appropriation, in the next succeeding fiscal year for obligation or expenditure under chapter 69 of title 31 of the United States Code (relating to PILT) or under section 401 of the Act of June 15, 1935 (49 Stat. 383; 16 U.S.C. 715s).

`(2) The Secretary of the Treasury shall invest moneys in the separate account 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. All interest earned on such moneys shall be available, without further appropriation, for obligation or expenditure under chapter 69 of title 31 of the United States Code (relating to PILT) or under section 401 of the Act of June 15, 1935 (49 Stat. 383; 16 U.S.C. 715s).'.

(b) CONFORMING AMENDMENT- Section 3 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-6) is amended by striking `Moneys' and inserting `Except as provided under section 2(c), moneys'.

(c) ALLOCATION OF FUNDS- Section 5 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-7) is amended as follows:

(1) By striking `ALLOCATION' and inserting `(a) IN GENERAL' after `SEC 5.'.

(2) By striking the second sentence and all that follows down through the period at the end thereof.

(3) By adding at the end the following new subsection at the end:

`(b) ALLOCATION- Amounts available in the fund under section 2(c)(1) of this Act (16 U.S.C. 460l-5(c)(1)) for obligation or expenditure may be obligated or expended only as follows--

`(1) 42 percent shall be available for Federal purposes, 25 percent of which shall be made available to the Secretary of Agriculture for the acquisition of lands, waters, or interests in land or water solely within the exterior boundaries of areas of the National Forest System or any other land management unit established by Act of Congress and managed by the Secretary of Agriculture (notwithstanding the first proviso of section 7(1)), and 75 percent of which shall be available to the Secretary of the Interior for the acquisition of lands, waters, or interests in land or water solely within the exterior boundaries of areas of the National Park System, National Wildlife Refuge System, or any other land management unit established by Act of Congress and managed by the Secretary of the Interior. At least 2/3 of the moneys available under this subparagraph for Federal purposes shall be spent east of the 100th meridian. Up to one percent of the amounts made available in any fiscal year under this paragraph may be used for administration. No moneys available under this paragraph for Federal purposes shall be used for condemnation of any interest in property.

`(2) 42 percent shall be available for financial assistance to the States under section 6 of this Act (16 U.S.C. 460l-8) distributed according to the following allocation formula:

`(A) 60 percent shall be apportioned equally among the States.

`(B) 20 percent shall be apportioned on the basis of the ratio which the population of each State bears to the total population of all States.

`(C) 20 percent shall be apportioned on the basis of the ratio which the acreage of each State bears to the total acreage of all States.

Up to one percent of the amounts made available in any fiscal year under this paragraph may be used for administration.

`(3) 16 percent shall be available to local governments through the Urban Parks and Recreation Recovery Program (16 U.S.C. 2501-2514) of the Department of the Interior. Up to one percent of the amounts made available in any fiscal year under this paragraph may be used for administration.'.

(d) TRIBES AND ALASKA NATIVE VILLAGE CORPORATIONS- Section 6(b)(5) of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-8(b)(5)) is amended as follows:

(1) By inserting `(A)' after `(5)'.

(2) By adding at the end the following new subparagraph:

`(B) For the purposes of paragraph (1), all federally recognized Indian tribes and Alaska Native Village Corporations (as defined in section 3(j) of the Alaska Native Claims Settlement Act (43 U.S.C. 1602(j)) shall be treated collectively as 1 State, and shall receive shares of the apportionment under paragraph (1) in accordance with a competitive grant program established by the Secretary by rule. Such rule shall ensure that in each fiscal year no single tribe or Village Corporation receives more than 10 percent of the total amount made available to all tribes and Village Corporations pursuant to the apportionment under paragraph (1). Funds received by an Indian tribe or Village Corporation under this subparagraph may be expended only for the purposes specified in paragraphs (1) and (3) of subsection (b).'.

(e) LOCAL ALLOCATION- Section 6(b) of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-8(b)) is amended by adding the following new paragraph at the end:

`(6) Absent some compelling and annually documented reason to the contrary acceptable to the Secretary of the Interior, each State (other than an area treated as a State under paragraph (5)) shall make available as grants to local governments, at least 50 percent of the annual State apportionment, or an equivalent amount made available from other sources.'.

(f) MATCH- Subsection 6(c) of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-8(c)) is amended to read as follows:

`(c) MATCHING REQUIREMENTS- Payments to any State shall cover not more than 50 percent of the cost of outdoor conservation and recreation planning, acquisition, or development projects that are undertaken by the State.'.

(g) STATE ACTION AGENDA- (1) Section 6(d) of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-8(d)) is amended to read as follows:

`(d) STATE ACTION AGENDA REQUIRED- Each State may define its own priorities and criteria for selection of outdoor conservation and recreation acquisition and development projects eligible for grants under this Act so long as it provides for public involvement in this process and publishes an accurate and current State Action Agenda for Community Conservation and Recreation (in this Act referred to as the `State Action Agenda') indicating the needs it has identified and the priorities and criteria it has established. In order to assess its needs and establish its overall priorities, each State, in partnership with its local governments and Federal agencies, and in consultation with its citizens, shall develop, within 5 years after the enactment of the Conservation and Reinvestment Act of 1999, a State Action Agenda that meets the following requirements:

`(1) The agenda must be strategic, originating in broad-based and long-term needs, but focused on actions that can be funded over the next 4 years.

`(2) The agenda must be updated at least once every 4 years and certified by the Governor that the State Action Agenda conclusions and proposed actions have been considered in an active public involvement process.

State Action Agendas shall take into account all providers of conservation and recreation lands within each State, including Federal, regional, and local government resources and shall be correlated whenever possible with other State, regional, and local plans for parks, recreation, open space, and wetlands conservation. Recovery action programs developed by urban localities under section 1007 of the Urban Park and Recreation Recovery Act of 1978 shall be used by a State as a guide to the conclusions, priorities, and action schedules contained in State Action Agenda. Each State shall assure that any requirements for local outdoor conservation and recreation planning, promulgated as conditions for grants, minimize redundancy of local efforts by allowing, wherever possible, use of the findings, priorities, and implementation schedules of recovery action programs to meet such requirements.'.

(2) Comprehensive State Plans developed by any State under section 6(d) of the Land and Water Conservation Fund Act of 1965 before the date 5 years after the enactment of this Act shall remain in effect in that State until a State Action Agenda has been adopted pursuant to the amendment made by this subsection, but no later than 5 years after the enactment of this Act.

(h) STATE PLANS- Subsection 6(e) of Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-8(e)) is amended as follows:

(1) By striking `State comprehensive plan' at the end of the first paragraph and inserting `State Action Agenda'.

(2) By striking `State comprehensive plan' in paragraph (1) and inserting `State Action Agenda'.

(3) By striking `but not including incidental costs related to acquisition' at the end of paragraph (1).

(i) CONVERSION- Paragraph (3) of section 6(f) of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-8(f)(3)) is amended by striking the second sentence and inserting: `The Secretary shall approve such conversion only if the State demonstrates no prudent or

feasible alternative exists with the exception of those properties that no longer meet the criteria within the State Action Agenda as an outdoor conservation and recreation facility due to changes in demographics or that must be abandoned because of environmental contamination which endangers public health and safety. Any conversion must satisfy such conditions as the Secretary deems necessary to assure the substitution of other conservation and recreation properties of at least equal fair market value and reasonably equivalent usefulness and location and which are consistent with the existing State Action Agenda; except that wetland areas and interests therein as identified in the wetlands provisions of the action agenda and proposed to be acquired as suitable replacement property within that same State that is otherwise acceptable to the Secretary shall be considered to be of reasonably equivalent usefulness with the property proposed for conversion.'.

(j) COST LIMITATIONS- Section 7 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-9) is amended by adding the following at the end thereof:

`(d) MAXIMUM FEDERAL COST PER PROJECT- No expenditure shall be made to acquire, construct, operate, or maintain any project under this section, the total Federal cost of which exceeds $1,000,000 unless the funds for such project have been specifically authorized by a subsequently enacted law.'.

SEC. 203. URBAN PARK AND RECREATION RECOVERY ACT OF 1978 AMENDMENTS.

(a) GRANTS- Section 1004 of the Urban Park and Recreation Recovery Act (16 U.S.C. 2503) is amended by redesignating subsections (d), (e), and (f) as subsections (f), (g), and (h) respectively, and by inserting the following after subsection (c):

`(d) `development grants' means matching capital grants to local units of government to cover costs of development and construction on existing or new neighborhood recreation sites, including indoor and outdoor recreation facilities, support facilities, and landscaping, but excluding routine maintenance and upkeep activities;

`(e) `acquisition grants' means matching capital grants to local units of government to cover the direct and incidental costs of purchasing new park land to be permanently dedicated and made accessible for public recreation use;'.

(b) ELIGIBILITY- Section 1005(a) of the Urban Park and Recreation Recovery Act (16 U.S.C. 2504) is amended to read as follows:

`(a) Eligibility of general purpose local governments to compete for assistance under this title shall be based upon need as determined by the Secretary. Generally, the list of eligible governments shall include the following:

`(1) All central cities of Metropolitan, Primary or Consolidated Statistical Areas as currently defined by the census.

`(2) All political subdivisions of a State included in Metropolitan, Primary or Consolidated Statistical Areas as currently defined by the census.

`(3) Any other city, town, or village within a Metropolitan Statistical Area with a total population of 50,000 or more in the census of 1970, 1980, or subsequent updates.

`(4) Any other political subdivision of a State with a total population of 250,000 or more in the census of 1970, 1980, or subsequent updates.'.

(c) MATCHING GRANTS- Subsection 1006(a) of the Urban Park and Recreation Recovery Act (16 U.S.C. 2505(a)) is amended by striking all through paragraph (3) and inserting the following:

`SEC. 1006. (a) The Secretary is authorized to provide 70 percent matching grants for rehabilitation, innovation, development, or acquisition to any eligible general purpose unit of local government upon approval by the Secretary of applications for such purpose by the chief executive of such a government.

`(1) At the discretion of such applicants, and if consistent with an approved application, rehabilitation, innovation, development, or acquisition grants may be transferred in whole or in part to independent special purpose local governments, private nonprofit agencies or political subdivisions or regional park authorities; except that such general purpose units of local government shall provide assurance to the Secretary that they will maintain public recreation opportunities at assisted areas and facilities owned or managed by them in accordance with section 1010 of this Act.

`(2) Payments may be made only for those rehabilitation, innovation, development, or acquisition projects which have been approved by the Secretary. Such payments may be made from time-to-time in keeping with the rate of progress toward completion of a project, on a reimbursable basis.'.

(d) COORDINATION- Section 1008 of the Urban Park and Recreation Recovery Act (16 U.S.C. 2507) is amended by striking the last sentence and inserting the following: `The Secretary and general purpose local governments are encouraged to coordinate preparation of recovery action programs required by this title with State Action Agendas for Community Conservation and Recreation required by section 6 of the Land and Water Conservation Fund Act of 1965, including the allowance of flexibility in local preparation of recovery action programs so that they may be used to meet State or local qualifications for local receipt of Land and Water Conservation Fund grants or State grants for similar purposes or for other conservation or recreation purposes. The Secretary shall also encourage States to consider the findings, priorities, strategies, and schedules included in the recovery action programs of their urban localities in preparation and updating of the State Action Agendas for Conservation and Recreation, in accordance with the public coordination and citizen consultation requirements of subsection 6(d) of the Land and Water Conservation Fund Act of 1965.'

(e) CONVERSION- Section 1010 of the Urban Park and Recreation Recovery Act (16 U.S.C. 2509) is amended by striking the first sentence and inserting the following: `No property acquired or improved or developed under this title shall, without the approval of the Secretary, be converted to other than public recreation uses. The Secretary shall approve such conversion only if the grantee demonstrates no prudent or feasible alternative exists (with the exception of those properties that are no longer a viable recreation facility due to changes in demographics or must be abandoned because of environmental

contamination which endanger public health and safety). Any conversion must satisfy any conditions the Secretary deems necessary to assure the substitution of other conservation and recreation properties of at least equal market value and reasonably equivalent usefulness and location and which are in accord with the current conservation and recreation recovery action program.'.

(f) REPEAL- Section 1014 of the Urban Park and Recreation Recovery Act (16 U.S.C. 2513) is repealed.

SEC. 204. OTHER RIGHTS PRESERVED.

Nothing in this title shall be construed to limit any right to compensation that exists under the Constitution or other laws.

SEC. 205. HABITAT RESERVE PROGRAM.

(a) ESTABLISHMENT OF HABITAT RESERVE PROGRAM- There is hereby established within the Department of the Interior a Habitat Reserve Program (HRP) to be administered by the Secretary of the Interior in association with the applicable State fish and wildlife department in the State where the affected land is located. The Secretary shall enter into partnership agreements with the State fish and wildlife department and owners and operators of lands suitable for enrollment on a voluntary basis, under which the owners and operators manage the land for the protection and enhancement of protected species in exchange for incentive payments. Where the operator of such land is not the owner, both the owner and the operator must enter into the agreement.

(b) ELIGIBLE LANDS- Lands eligible for enrollment in the HRP shall be privately owned lands that have been designated by the State agency as being necessary to preserve the existence of 1 or more species listed pursuant to the Endangered Species Act whose owners and operators have voluntarily entered into partnership agreements with the Secretary and the State agency, and which have been accepted for enrollment in accordance with this section.

(c) LIMITATIONS ON LANDS ELIGIBLE FOR ENROLLMENT- (1) The Secretary and State agency shall not place under contract more than 25 percent of the land or water in any one county at any one time, except to the extent that the State agency determines, after public comment, that doing so would not adversely affect the local economy of the county.

(2) No contract shall be entered into under this section concerning land with respect to which ownership has changed in the 3-year period preceding the first year of the contract if such land was acquired in order to qualify for this program.

(d) CONTRACT REQUIREMENTS- (1) Each contract entered into under this section shall obligate the owner and operator of the land to implement the plan agreed to for not less than 5 years.

(2) The Secretary shall make available as grants to the State agency the funds specified in this title for the purposes of entering into landowner agreements as set forth in this title.

(e) MANAGEMENT PLANS- The plan referred to in subsection (a)(1) above shall set forth the management practices to be carried out by the owner and/or operator of the habitat for the protection and enhancement of the habitat and the species.

(f) DURATION- Contracts entered into hereunder shall be for a duration of 5 years, until land ownership is transferred, or until the land ceases to be included within designated critical habitat of the species, whichever is shorter.

(g) PAYMENTS- (1) The State agency shall establish an equitable method for determining the annual payments under this section, including through the submission of bids in such manner as the Secretary may prescribe.

(2) The Secretary shall pay the cost of establishing management measures and practices required pursuant to the approved management plan.

(3) Any payments received by an owner or operator under this section shall be in addition to, and shall not affect, the total amount of payments that the owner or operator is otherwise eligible to receive under this section, or any other program administered by the Secretary or any other Federal department or agency.

TITLE III--WILDLIFE CONSERVATION AND RESTORATION

SEC. 301. FINDINGS.

The Congress finds and declares that--

(1) a diverse array of species of fish and wildlife is of significant value to the Nation for many reasons: aesthetic, ecological, educational, cultural, recreational, economic, and scientific;

(2) it should be the objective of the United States to retain for present and future generations the opportunity to observe, understand, and appreciate a wide variety of wildlife;

(3) millions of citizens participate in outdoor recreation through hunting, fishing, and wildlife observation, all of which have significant value to the citizens who engage in these activities;

(4) providing sufficient and properly maintained wildlife-associated recreational opportunities is important to enhancing public appreciation of a diversity of wildlife and the habitats upon which they depend;

(5) lands and waters which contain species classified neither as game nor identified as endangered or threatened also provide opportunities for wildlife-associated recreation and education such as hunting and fishing permitted by applicable State or Federal law;

(6) hunters and anglers have for more than 60 years willingly paid user fees in the form of Federal excise taxes on hunting and fishing equipment to support wildlife diversity and abundance, through enactment of the Federal Aid in Wildlife Restoration Act (commonly referred to as the Pittman-Robertson Act) and the Federal Aid in Sport Fish Restoration Act (commonly referred to as the Dingell-Johnson/Wallop-Breaux Act);

(7) State programs, adequately funded to conserve a broad array of wildlife in an individual State and conducted in coordination with Federal, State, tribal, and private landowners and interested organizations, would continue to serve as a vital link in an effort to restore game and nongame wildlife, and the essential elements of such programs should include

conservation measures which manage for a diverse variety of populations of wildlife; and

(8) it is proper for Congress to bolster and extend this highly successful program to aid game and nongame wildlife in supporting the health and diversity of habitat, as well as providing funds for conservation education.

SEC. 302. PURPOSES.

The purposes of this title are--

(1) to extend financial and technical assistance to the States under the Federal Aid to Wildlife Restoration Act for the benefit of a diverse array of wildlife and associated habitats, including species that are not hunted or fished, to fulfill unmet needs of wildlife within the States in recognition of the primary role of the States to conserve all wildlife;

(2) to assure sound conservation policies through the development, revision and implementation of wildlife-associated recreation and wildlife-associated education and wildlife conservation law enforcement;

(3) to encourage State fish and wildlife agencies to participate with the Federal Government, other State agencies, wildlife conservation organizations, and outdoor recreation and conservation interests through cooperative planning and implementation of this title; and

(4) to encourage State fish and wildlife agencies to provide for public involvement in the process of development and implementation of a wildlife conservation and restoration program.

SEC. 303. DEFINITIONS.

(a) REFERENCE TO LAW- In this title, the term `Federal Aid in Wildlife Restoration Act' means the Act of September 2, 1937 (16 U.S.C. 669 et seq.), commonly referred to as the Federal Aid in Wildlife Restoration Act or the Pittman-Robertson Act.

(b) WILDLIFE CONSERVATION AND RESTORATION PROGRAM- Section 2 of the Federal Aid in Wildlife Restoration Act (16 U.S.C. 669a) is amended by inserting after `shall be construed' in the first place it appears the following: `to include the wildlife conservation and restoration program and'.

(c) STATE AGENCIES- Section 2 of the Federal Aid in Wildlife Restoration Act (16 U.S.C. 669a) is amended by inserting `or State fish and wildlife department' after `State fish and game department'.

(d) CONSERVATION- Section 2 of the Federal Aid in Wildlife Restoration Act (16 U.S.C. 669a) is amended by striking the period at the end thereof, substituting a semicolon, and adding the following: `the term `conservation' shall be construed to mean the use of methods and procedures necessary or desirable to sustain healthy populations of wildlife including all activities associated with scientific resources management such as research, census, monitoring of populations, acquisition, improvement and management of habitat, live trapping and transplantation, wildlife damage management, and periodic or total protection of a species or population as well as the taking of individuals within wildlife stock or population if permitted by applicable State and Federal law; the term `wildlife conservation and restoration program' means a program developed by a State fish and wildlife department that the Secretary determines meets the criteria in section 6(d), the projects that constitute such a program, which may be implemented in whole or part through grants and contracts by a State to other State, Federal, or local agencies wildlife conservation organizations and outdoor recreation and conservation education entities from funds apportioned under this title, and maintenance of such projects; the term `wildlife' shall be construed to mean any species of wild, free-ranging fauna including fish, and also fauna in captive breeding programs the object of which is to reintroduce individuals of a depleted indigenous species into previously occupied range; the term `wildlife-associated recreation' shall be construed to mean projects intended to meet the demand for outdoor activities associated with wildlife including, but not limited to, hunting and fishing, such projects as construction or restoration of wildlife viewing areas, observation towers, blinds, platforms, land and water trails, water access, trail heads, and access for such projects; and the term `wildlife conservation education' shall be construed to mean projects, including public outreach, intended to foster responsible natural resource stewardship.'.

(e) 10 PERCENT- Subsection 3(a) of the Federal Aid in Wildlife Restoration Act (16 U.S.C. 669b(a)) is amended in the first sentence by--

(1) inserting `(1)' after `(beginning with the fiscal year 1975)'; and

(2) inserting after `Internal Revenue Code of 1954' the following: `, and (2) from 10 percent of the qualified Outer Continental Shelf revenues, as defined in section 102 of the Conservation and Reinvestment Act of 1999,'.

SEC. 304. SUBACCOUNT AND REFUNDS.

Section 3 of the Federal Aid in Wildlife Restoration Act (16 U.S.C. 669b) is amended by adding at the end the following new subsections:

`(c) A subaccount shall be established in the Federal aid to wildlife restoration fund in the Treasury to be known as the `wildlife conservation and restoration account' and the credits to such account shall be equal to the 10 percent of Outer Continental Shelf revenues referred to in subsection (a)(2). Amounts credited to such account (other than interest) shall be invested by the Secretary of the Treasury as set forth in subsection (b) and shall be made available without further appropriation, in the next succeeding fiscal year, for apportionment to carry out State wildlife conservation and restoration programs. All interest on such amounts shall be available, without further appropriation, for obligation or expenditure for purposes of the North American Wetlands Conservation Act of 1989 (16 U.S.C. 4401 and following).

`(d) Funds covered into the wildlife conservation and restoration account shall supplement, but not replace, existing funds available to the States from the sport fish restoration and wildlife restoration accounts and shall be used for the development, revision, and implementation of wildlife conservation and restoration programs and should be used to address the unmet needs for a diverse array of wildlife and associated habitats, including species that are not hunted or fished, for wildlife conservation, wildlife conservation education, and wildlife-associated recreation projects; provided such funds may be used for new programs and projects as well as to enhance existing programs and projects.

`(e) Notwithstanding subsections (a) and (b) of this section, with respect to the wildlife conservation and restoration account so much of the appropriation apportioned to any State for any fiscal year as remains unexpended at the close thereof is authorized to be made available for expenditure in that State until the close of the fourth succeeding fiscal year. Any amount apportioned to any State under this subsection that is unexpended or unobligated at the end of the period during which it is available for expenditure on any project is authorized to be reapportioned to all States during the succeeding fiscal year.

`(f) In those instances where through judicial decision, administrative review, arbitration, or other means there are royalty refunds owed to entities generating revenues available for purposes of this Act, 10 percent of such refunds shall be paid from amounts available under subsection (a)(2).'.

SEC. 305. ALLOCATION OF SUBACCOUNT RECEIPTS.

Section 4 of the Federal Aid in Wildlife Restoration Act (16 U.S.C. 669c) is amended by adding the following new subsection:

`(c)(1) Notwithstanding subsection (a), so much, not to exceed one percent, of the revenues covered into the wildlife conservation and restoration account in each fiscal year as the Secretary of the Interior may estimate to be necessary for expenses in the administration and execution of programs carried out under the wildlife conservation and restoration account shall be deducted for that purpose, and such sum shall be available, without further appropriation, for such purposes in the next succeeding fiscal year, and within 60 days after the close of such fiscal year the Secretary of the Interior shall apportion such part thereof as remains unexpended, if any, on the same basis and in the same manner as is provided under paragraphs (2) and (3).

`(2) The Secretary of the Interior, after making the deduction under paragraph (1), shall make the following apportionment from the amount remaining in the wildlife conservation and restoration account:

`(A) To the District of Columbia and to the Commonwealth of Puerto Rico, each a sum equal to not more than 1/2 of 1 percent thereof; and

`(B) to Guam, American Samoa, the Virgin Islands, and the Commonwealth of the Northern Mariana Islands, each a sum equal to not more than 1/6 of 1 percent thereof.

`(3) The Secretary of the Interior, after making the deduction under paragraph (1) and the apportionment under paragraph (2), shall apportion the remaining amount in the wildlife conservation and restoration account for each year among the States in the following manner:

`(A) 1/3 of which is based on the ratio to which the land area of such State bears to the total land area of all such States; and

`(B) 2/3 of which is based on the ratio to which the population of such State bears to the total population of all such States;

The amounts apportioned under this paragraph shall be adjusted equitably so that no such State shall be apportioned a sum which is less than 1/2 of 1 percent of the amount available for apportionment under this paragraph for any fiscal year or more than 5 percent of such amount.'.

`(d) WILDLIFE CONSERVATION AND RESTORATION PROGRAMS- Any State, through its fish and wildlife department, may apply to the Secretary for approval of a wildlife conservation and restoration program or for funds to develop a program, which shall--

`(1) contain provision for vesting in the fish and wildlife department of overall responsibility and

accountability for development and implementation of the program;

`(2) contain provision for development and implementation of--

`(A) wildlife conservation projects which expand and support existing wildlife programs to meet the needs of a diverse array of wildlife species,

`(B) wildlife-associated recreation projects, and

`(C) wildlife conservation education projects; and

`(3) contain provision for public participation in the development, revision, and implementation of projects and programs stipulated in paragraph (2) of this subsection.

If the Secretary of the Interior finds that an application for such program contains the elements specified in paragraphs (1) and (2), the Secretary shall approve such application and set aside from the apportionment to the State made pursuant to section 4(c) an amount that shall not exceed 90 percent of the estimated cost of developing and implementing segments of the program for the first 5 fiscal years following enactment of this subsection and not to exceed 75 percent thereafter. Not more than 10 percent of the amounts apportioned to each State from this subaccount for the State's wildlife conservation and restoration program may be used for law enforcement. Following approval, the Secretary may make payments on a project that is a segment of the State's wildlife conservation and restoration program as the project progresses but such payments, including previous payments on the project, if any, shall not be more than the United States pro rata share of such project. The Secretary, under such regulations as he may prescribe, may advance funds representing the United States pro rata share of a project that is a segment of a wildlife conservation and restoration program, including funds to develop such program. For purposes of this subsection, the term `State' shall include the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.'.

(b) FACA- Coordination with State fish and wildlife agency personnel or with personnel of other State agencies pursuant to the Federal Aid in Wildlife Restoration Act or the Federal Aid in Sport Fish Restoration Act shall not be subject to the Federal Advisory Committee Act (5 U.S.C. App.) Except for the preceding sentence, the provisions of this title relate solely to wildlife conservation and restoration programs as defined in this title and shall not be construed to affect the provisions of the Federal Aid in Wildlife Restoration Act relating to wildlife restoration projects or the provisions of the Federal Aid in Sport Fish Restoration Act relating to fish restoration and management projects.

SEC. 306. LAW ENFORCEMENT AND EDUCATION.

The third sentence of subsection (a) of section 8 of the Federal Aid in Wildlife Restoration Act (16 U.S.C. 669g) is amended by inserting before the period at the end thereof: `, except that funds available from this subaccount for a State wildlife conservation and restoration program may be used for law enforcement and education'.

SEC. 307. PROHIBITION AGAINST DIVERSION.

No designated State agency shall be eligible to receive matching funds under this title if sources of revenue available to it after January 1, 1999, for conservation of wildlife are diverted for any purpose other than the administration of the designated State agency, it being the intention of Congress that funds available to States under this title be added to revenues from existing State sources and not serve as a substitute for revenues from such sources. Such revenues shall include interest, dividends, or other income earned on the forgoing.

END