1. The House Budget Reconciliation Bill: Provisions to expand offshore drilling into coastal areas under federal moratorium and banned areas of the Outer Continental Shelf off Florida’s Coast and Eastern Portions of the Gulf of Mexico (Baltimore, 2005). By Emily Chessin

2. Introduction Richard Pombo, the chairman of The House Resources Committee formulated the provision of the offshore drilling initiative in the House Resources Committee’s Budget Reconciliation Bill. Richard Pombo, the chairman of The House Resources Committee formulated the provision of the offshore drilling initiative in the House Resources Committee’s Budget Reconciliation Bill. This initiative is part of a larger goal to open up the Arctic National Wildlife Refuge for oil drilling This initiative is part of a larger goal to open up the Arctic National Wildlife Refuge for oil drilling My paper focused on the specific effects the legislation would have on the State of Florida. My paper focused on the specific effects the legislation would have on the State of Florida.

3. Current Federal Laws on offshore Drilling States have jurisdiction over any natural resources within 3 nautical miles of their coastline. States have jurisdiction over any natural resources within 3 nautical miles of their coastline. Florida and Texas have jurisdiction over any natural resource within 9 nautical miles off the coast of the Gulf of Mexico. Florida and Texas have jurisdiction over any natural resource within 9 nautical miles off the coast of the Gulf of Mexico. Any submerged lands outside of the States jurisdiction are managed and controlled by the Federal government. Any submerged lands outside of the States jurisdiction are managed and controlled by the Federal government. Congressional moratoriums in effect through FY2006 and Presidential offshore leasing prohibitions in effect until 2012. Congressional moratoriums in effect through FY2006 and Presidential offshore leasing prohibitions in effect until 2012. Prohibit offshore drilling for portions of the Outer Continental Shelf Prohibit offshore drilling for portions of the Outer Continental Shelf

4. The Proposed Initiative Open areas of the Eastern Gulf of Mexico to oil and natural gas production Open areas of the Eastern Gulf of Mexico to oil and natural gas production Reduce current buffer zone for offshore drilling to 125 miles Reduce current buffer zone for offshore drilling to 125 miles “Offshore States Option Acts” “Offshore States Option Acts” States could extend moratoriums through 2012 by petitioning the Secretary of Interior States could extend moratoriums through 2012 by petitioning the Secretary of Interior

5. Incentives for states to ‘opt out’ of Federal Moratoriums Receive a portion of the lease royalties energy companies pay to the Federal government. Receive a portion of the lease royalties energy companies pay to the Federal government. States would receive up to 40%-50% of the revenue from leases States would receive up to 40%-50% of the revenue from leases Roughly splitting $1.6 billion dollars over 5 years with the Federal government. Roughly splitting $1.6 billion dollars over 5 years with the Federal government.

6. Proposed Initiatives cont. Permit natural gas drilling as close as 25 miles to the coast and oil drilling as close as 50 miles to the coast of Florida. Permit natural gas drilling as close as 25 miles to the coast and oil drilling as close as 50 miles to the coast of Florida. Moratoriums expire the Mineral Management Service could begin leasing these areas to oil and gas companies (Humphries, 2006). Moratoriums expire the Mineral Management Service could begin leasing these areas to oil and gas companies (Humphries, 2006). Opens up controversial Lease sale area 181. Opens up controversial Lease sale area 181. US defense secretary and Department of Interior secretary resolve issues between oil and natural gas drilling operations and military training operations US defense secretary and Department of Interior secretary resolve issues between oil and natural gas drilling operations and military training operations

7. Foundational pieces of Legislation Submerged Lands Act (SLA) 1953 Submerged Lands Act (SLA) 1953 Outer Continental Shelf Lands Act (OCSLA) 1953 Outer Continental Shelf Lands Act (OCSLA) 1953 Coastal Zone Management Act 1972 Coastal Zone Management Act 1972 Environmental Regulations Environmental Regulations –NEPA 1969 –CAA 1970 –ESA 1973 –CWA 1977

8. Proponents of the Budget Reconciliation Bill The chairman of the House Committee on Resources Richard Pombo The chairman of the House Committee on Resources Richard Pombo Governor of Florida Jeb Bush Governor of Florida Jeb Bush Florida Republicans Florida Republicans House Republicans House Republicans Oil and natural gas industries Oil and natural gas industries Trade groups that represent energy intensive industries Trade groups that represent energy intensive industries

9. Opposition to the Budget Reconciliation Bill Several Florida Republican Representatives Several Florida Republican Representatives Florida senators, Mel Martinez, a Republican, and Bill Nelson, a democrat Florida senators, Mel Martinez, a Republican, and Bill Nelson, a democrat Attorney General Charlie Crist Attorney General Charlie Crist Environmental Organization Environmental Organization Local Groups Local Groups

10. Strategies Including the provision in the Budget Reconciliation Bill Including the provision in the Budget Reconciliation Bill Can not be filibustered Can not be filibustered Can be passed with a simple majority vote Can be passed with a simple majority vote

11. Update and Conclusion On November 9, 2005 House Republicans removed the language from the budget reconciliation bill on both drilling in Alaska’s Arctic National Wildlife Refuge and expanding offshore drilling off of Florida’s coast. On November 9, 2005 House Republicans removed the language from the budget reconciliation bill on both drilling in Alaska’s Arctic National Wildlife Refuge and expanding offshore drilling off of Florida’s coast. The Budget Reconciliation Bill is in conference between the House and Senate and a final bill has not yet been proposed The Budget Reconciliation Bill is in conference between the House and Senate and a final bill has not yet been proposed Far from a sound piece of legislation Far from a sound piece of legislation Real intention: to open up as much of the Outer Continental Shelf as possible for oil and gas production. Real intention: to open up as much of the Outer Continental Shelf as possible for oil and gas production. Does not consider the environmental or economic impacts that Florida and other states may suffer Does not consider the environmental or economic impacts that Florida and other states may suffer Makes it a state issue rather than a national issue Makes it a state issue rather than a national issue