CARA in a nutshell

By Sarah Foster

Revenues from the outer continental shelf drilling operations at present go
into the nation’s general fund. If S 25 or HR 701 are enacted, these
revenues would be divided between the states and the federal government
according to specific formula. The exact amounts available for distribution
would depend on the amount of revenue generated on a yearly basis. At
present the amount is between $4 billion and $5 billion a year. That would
be increased if states lift the moratorium on drilling.

The total would be divided on a straight 50-50 basis in S 25. HR 701 splits
the take at 60 percent to the “stateside” section, 40 percent to the federal
government.

CARA subdivides this second portion into three parts called Titles.

  • Title I establishes the Outer Continental Shelf Impact Assistance
    Fund. In both bills 27 percent of federal revenues from OCS oil and gas
    production would be deposited in the fund, then distributed between 34
    alleged “coastal” states — which to ensure passage include the Great Lakes
    states, even though these have permanent moratoria on oil drilling and are
    hardly “coastal.”

    “They put the Great Lakes states in because there are a hundred votes in the
    House from those states,” said Myron Ebell of the Competitive Enterprise
    Institute. “Out of 435 votes, a hundred are from New York, Michigan,
    Wisconsin, Illinois and so on. After the money is spread around, Louisiana
    will only get about $350 million (in Title I) — but that’s better than
    zero.”

    State and local governments can use the money for parks, sewage systems,
    restoring wetlands, building Little League fields, hockey rinks —
    “basically anything they want to,” said Ebell, including land purchases.

  • Title II amends the Land and Water Conservation Fund Act of 1965,
    which created an account into which offshore royalties money were to be
    placed to provide up to $900 million a year for land purchases by the
    federal government, subject to congressional approval and appropriation.

    In recent years Congress has limited appropriations to $200 million to $300
    million a year.

    Both S 25 and HR 701 restore the Land and Conservation Fund (LWCF) to its
    original level, but relieves Congress of its oversight role.

    Under CARA, 16 percent (S 25) or 23 percent (HR 701) of the federal revenue
    from OCS oil and gas production would be deposited in the Land and Water
    Conservation Fund up to the current authorized level of $900 million.

    Title II: Federal Share: 45 percent (S 25) or 42 percent (HR 701) of
    the authorized LWCF money would be automatically distributed according to
    formulae between the Forest Service, the National Parks Service, the U.S.
    Fish and Wildlife Service and the Bureau of Land Management — to be used
    exclusively for land acquisition, with purchases limited to land within
    congressionally designated boundaries.

    Total allocated funds for federal land purchases would be capped at $330
    million (S 25) or $378 million (HR 701) a year.

    Under the plan, two-thirds of the LWCF money must be spent on land east of
    the 100th meridian, which runs through Texas and includes the
    Midwest and Great Lakes states.

    Condemnation, taking private land for public use, would be prohibited for
    federal acquisitions and purchases restricted to “willing sellers.”

    Congressional approval required for purchases over $5 million (S 25) or
    $1 million (HR 701).

    Title II: Stateside Share: 45 percent (S 25) or 42 percent (HR
    701) of the authorized LWCF money would be distributed on a
    dollar-for-dollar matching fund basis among the states for land acquisition
    and development according to certain formulae. Land and Water Conservation
    Fund money cannot be used to cover more than 50 percent of the costs of
    state and local land acquisitions, development or planning.

    Under Title II, states must distribute 50 percent of the money received to
    local governments.

    Condemnation would not be prohibited for state and local land purchases.

    Indian tribes and native corporations would be treated collectively as one
    state.

    Title II: Urban Parks: 10 percent (S 25) or 16 percent (HR 701) of
    the authorized LWCF money would go to local governments for the Urban Parks
    and Recreation Recovery Program.

  • Title III creates an additional revenue stream for the fund
    established by the Federal Aid in Wildlife Restoration Act of 1937 (the
    Pittman-Robertson Act). The Pittman-Robertson Act established a special
    account — funded by an excise tax on guns, ammunition, and fishing
    equipment — with the proceeds to be distributed to state fish and game
    departments to improve their conservation projects.

    “The money goes for fisheries, game nurseries, that sort of thing,” said
    Myron Ebell. “It’s never excited a great deal of controversy. Title III
    would be a new revenue source from offshore oil money; it’s a way to buy the
    support of state governors, fish and game departments, and the sporting
    community — the hunters and fishermen.”

    Under CARA, 7 percent (S 25) or 10 percent (HR 701) of the OCS money would
    be deposited in a fund and distributed without further appropriation or
    approval by Congress to state fish and game/wildlife departments according
    to a formula, to be used for wildlife conservation and restoration projects
    and programs — including land acquisition — approved by the Interior
    Secretary under Pittman-Robertson.

    The plan allows funds to be used for law enforcement and public relations.
    Ebell predicts that through the public relations provision moneys will be
    used to promote “environmental propaganda.”

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