Senator MURKOWSKI. Thank you, Mr. Cowles. I thank the panel, Ms. Greene, Mr. Campbell, Mr. Giffen, and Mr. Cowles. We have concluded our hearing of the full committee on the National Ocean Policy Study. I would remind you that the record is open for 2 weeks. With that, we will adjourn the hearing. [Whereupon at 11:45 a.m. the hearing was adjourned.] OUTER CONTINENTAL SHELF REVENUE SHARING PROPOSALS WEDNESDAY, SEPTEMBER 1, 1982 U.S. SENATE, COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION, Astoria, Oreg. The committee met, pursuant to notice, at 9 a.m., in the Commissioners' Conference Room, Port of Astoria Office, Astoria, Oreg., Hon. Bob Packwood (chairman of the committee) presiding. OPENING STATEMENT BY THE CHAIRMAN The CHAIRMAN. The hearing will come to order, please. I'm delighted that so many of you have taken the time not only to come to this hearing, but a good many others I see here were at the breakfast that Governor Atiyeh and I had just a few moments ago. As you are aware, there is a hearing this morning in Astoria and this afternoon in Coos Bay on the subject of some bills currently before the Congress that will allocate funds to coastal communities. In the years ahead, this Nation will be pressed more and more to develop our significant oil and gas resources on the Outer Continental Shelf and, clearly, these resources are substantial. The quantity is not fully known-probably never will be-but we realize there are extensive resources. The consequences of such a move are obviously going to be felt mostly by our coastal communities. Therefore, the bills—both of them, but in different ways-address the issues of how we are going to cope with the requirements of the development that is bound to occur on the coast as we go ahead with our Outer Continental Shelf drilling and exploration, how do we protect the renewable marine resources that are involved while we are doing this, and, last, how do we prepare our economies for the eventual day when those resources are depleted. There are two principal bills, one introduced by Senator Stevens and myself and others, S. 2792, and under this legislation a percentage of the Outer Continental Shelf receipts are to be shared among all of the coastal States in the form of a block grant for coastal planning, research, management, and development. Under that bill, the moneys are distributed to States on a certain formula. Those that actually have the oil or gas off of their coast will receive a slightly larger share than those States that do not. But, every coastal State will be guaranteed some portion of the fund. The money comes to the State, and a certain portion of it is directly passed through to the coastal communities, and the State uses the other portion for the benefit of the entire coast. Senator Weicker has introduced a bill, the Marine Resource Management and Research Act, S. 2794, and this also sets aside a portion of the Outer Continental Shelf energy revenues. These funds are intended as a supplement to existing Federal ocean and coastal programs. The portion set aside would be 10 percent under the Weicker bill-10 percent of the annual growth in the Outer Continental Shelf revenues. Using fiscal year 1981 as a base, that would put a $350 million a year limit on the amount that can be distributed. Unlike S. 2792, which is the bill of Senator Stevens and myself, these funds are made available through the annual appropriations process and, of course, that has tremendous variations in it. Sometimes appropriations are up; sometimes they are down. But you are perpetually dependent from year to year on the whims and vagaries of Congress. We have been doing very well recently, with Senator Hatfield as chairman of the Appropriations Committee, and I would have no fear that Oregon would fare well so long as Senator Hatfield is there. But, all things considered, I prefer a process where the money to the local governments is guaranteed in a reasonably predictable fashion, and the amounts are not subject to any great variation. As the witnesses testify today, I would appreciate it if they would be willing to compare one bill as against the other and see how Oregon would benefit under each. What constructive impacts can the State and localities anticipate from the funds? Do the purposes for which the funds are provided match the needs of States and localities? We are all familiar with the situation where there are Federal Government funds for certain projects and, indeed, those are not the projects that are the priorities of the recipients of the funds. They will take them, clearly, but given wider discretion and latitude in the spending of them, they might have different priorities than those for which the funds are allocated. I would appreciate comments on the distribution formula, and whether or not you think it is equitable. Regarding the last point-the distribution formula-Governor Atiyeh and I have proposed that coastal unemployment might be an appropriate consideration in the formula. Senator Stevens has agreed that this could be considered in devising the final disbursement formula. Governor Atiyeh deserves the sole credit for suggesting this. I had not thought about it at the time of drafting of the bill. He called it to my attention. Needless to say, if you look at the economies of the Oregon coast, if unemployment is a factor, it would be an increase in the amount of money that would be allocated to the State of Oregon and, therefore, to the counties. Our first witness today is my old friend, the Governor of the State of Oregon, Victor Atiyeh, who has been an early and a constant supporter of Outer Continental Shelf revenue sharing. Governor Atiyeh. STATEMENT OF HON. VICTOR ATIYEH, GOVERNOR, STATE OF OREGON Governor ATIYEH. Senator Packwood, on behalf of the people of Oregon's coastal counties, I want to thank you for bringing this field hearing on S. 2792 directly to the communities which, depending on the fate of the Federal legislation, can be helped or hurt by Outer Continental Shelf oil and gas leasing. I also appreciate the opportunity to cochair these hearings with you. The manner in which you and your staff have worked and consulted with my office, State agencies, and local governments on this issue has been both considerate and effective. We want to thank you for your leadership and your cooperation. I must also add that you have shown considerable political courage in cosponsoring S. 2792 at a time when Federal revenue sharing, regardless of what is fair and right, is not a comforting prospect to the U.S. Treasury. As Governor, I am proud to be your strong ally in urging Congress to approve this legislation. Benjamin Franklin once said "a part of everything you earn is yours to keep." He was talking about prudence and thrift, but his words drive to the heart of this issue. Oregon, more than any other coastal State in this Nation, has taken extraordinary measures that reflect the special reverence we have for a magnificent natural resource; 98 percent of our ocean shoreline is, and forever shall be, open and free to the public. By comparison, an average of only 2 percent of other coastal States' shorelines is open to their public. You and I, Senator, as members of the 1967 Öregon Legislature, supported the historic beach bill that represents Oregonians' everlasting commitment to preserve and protect an irreplaceable resource. The beach bill was an important and unprecedented statement of public policy. It assured the vitality of Oregon's third-largest income-producing industry-tourism-which even in these hard times is the Oregon coast's most reliable economic cornerstone. But the task of assuring a broad and long-term economic viability for coastal communities cannot be accomplished independently by those communities, or by State Government or by the Federal Government. All three must work together. The establishment of an effective local-State-Federal partnership is in the best interests of all three entities and Congress, in the past, has made sincere efforts to forge those alliances. Under the Coastal Zone Management Act, States prepared coastal zone management programs designed to accommodate national, regional, and State interests. Oregon was the second State to receive Federal approval of its coastal management program 5 years ago. Other Federal programs, including the national sea grant college program, the coastal energy impact program, and research programs conducted under the Anadromous Fish Act and the Commercial Fisheries Research and Development Act, have reinforced the notion that mutual benefits are the products of cooperation and shared responsibility. Now, however, the administration is ready to pull the plug on those partnerships, and at the same time intends to accelerate Outer Continental Shelf oil and gas leasing. |