SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Coastal Conservation and Habitat 
Restoration Act of 2006''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Coastal political subdivision.--The term ``coastal 
        political subdivision'' means a county, parish, or other 
        equivalent subdivision of a Coastal State, all or part of 
        which, on the date of the enactment of this Act, lies within 
        the boundaries of the coastal zone of the State, as identified 
        in the coastal zone management program of the State approved 
        under the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 
        et seq.).
            (2) Coastal state.--Except as otherwise provided, the term 
        ``coastal State'' shall have the meaning given such term in 
        section 304 of the Coastal Zone Management Act of 1972 (16 
        U.S.C. 1453)
            (3) Coastal zone.--The term ``coastal zone'' means the 
        coastal zone as determined under the Coastal Zone Management 
        Act of 1972 (16 U.S.C. 1451 et seq.) on the date of the 
        enactment of this Act.
            (4) Coastline.--The term ``coastline'' has the meaning 
        given the term ``coast line'' in section 2(c) of the Submerged 
        Lands Act (43 U.S.C. 1301(c)).
            (5) Fund.--The term ``Fund'' means the Coastal Conservation 
        and Habitat Restoration Fund established by section 3.
            (6) Plan.--The term ``Plan'' means a Coastal Conservation 
        and Habitat Restoration Plan described in section 4.
            (7) Qualified outer continental shelf revenues.--The term 
        ``qualified outer Continental Shelf revenues'' means all 
        amounts 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 that zone but to 
        which such section 8(g) does not apply), including bonus bids, 
        rents, royalties (including payments for royalties taken in 
        kind and sold), net profit share payments, and related 
        interest.
            (8) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.

SEC. 3. COASTAL CONSERVATION AND HABITAT RESTORATION FUND.

    (a) Establishment.--There is established in the Treasury of the 
United States a separate account to be known as the ``Coastal 
Conservation and Habitat Restoration Fund''.
    (b) Deposited Amounts.--The Secretary of the Treasury shall deposit 
into the Fund for each fiscal year, without further appropriation, the 
following amounts:
            (1) Digital transition and public safety fund.--Amounts 
        deposited in the Digital Transition and Public Safety Fund that 
        exceed $11,000,000,000.
            (2) Royalty revenues.--During each of the fiscal years 2006 
        through 2016, an amount equal to the amount of all qualified 
        outer Continental Shelf revenues attributable to royalties 
        received by the United States during the previous fiscal year 
        that are in excess of the following amount for the applicable 
        year:
                    (A) $7,000,000,000 in the case of royalties 
                received in fiscal year 2006.
                    (B) $8,300,000,000 in the case of royalties 
                received in fiscal year 2007.
                    (C) $9,500,000,000 in the case of royalties 
                received in fiscal year 2008.
                    (D) $9,100,000,000 in the case of royalties 
                received in fiscal year 2009.
                    (E) $9,600,000,000 in the case of royalties 
                received in fiscal year 2010.
                    (F) $9,650,000,000 in the case of royalties 
                received in fiscal year 2011.
                    (G) $9,100,000,000 in the case of royalties 
                received in fiscal year 2012.
                    (H) $10,900,000,000 in the case of royalties 
                received in fiscal year 2013.
                    (I) $10,900,000,000 in the case of royalties 
                received in fiscal year 2014.
                    (J) $11,000,000,000 in the case of royalties 
                received in fiscal year 2015.
                    (K) $11,100,000,000 in the case of royalties 
                received in fiscal year 2016.
            (3) Bonus bids.--During the fiscal years 2006 through 2016, 
        an amount equal to the amount of all qualified outer 
        Continental Shelf revenues attributable to bonus bids received 
        by the United States that are in excess of $850,000,000 during 
        the previous fiscal year.
            (4) Ocean activities.--During a fiscal year after 2016, an 
        amount equal to 50 percent of all qualified outer Continental 
        Shelf revenues received by the United States during the 
        preceding fiscal year.
            (5) Other funds.--Any other amounts that are appropriated 
        to the Fund.
    (c) Apportionment of Funds.--
            (1) In general.--The Secretary shall use amounts in the 
        Fund remaining after the application of subsection (d), without 
        further appropriation, to make payments to each coastal State, 
        if the Secretary has approved a Plan for such State under 
        section 4, during December of 2005, and December of each year 
        thereafter, from revenues in the Fund based upon calculations 
        from revenues generated in the immediately preceding fiscal 
        year.
            (2) Allocation.--The payments made under paragraph (1) 
        shall be allocated as follows:
                    (A) 20 percent shall be apportioned among the 
                coastal States so that the ratio of the amount 
                apportioned to each coastal State under this 
                subparagraph bears to the total amount so apportioned 
                for the fiscal year is equal to the ratio that the 
                coastline of such State bears to the total coastline of 
                all coastal States, as determined by the Secretary.
                    (B) 40 percent shall be apportioned among the 
                coastal States so that the ratio of the amount 
                apportioned to each coastal State under this 
                subparagraph bears to the total amount so apportioned 
                for the fiscal year is equal to the ratio that the 
                average qualified outer Continental Shelf revenues 
                generated off the coastline of such State over the 
                previous 40 year period to the average qualified outer 
                Continental Shelf revenues generated off the coastline 
                of all coastal States over the previous 40 year period.
                    (C) 40 percent shall be apportioned among the 
                coastal States so that the ratio of the amount 
                apportioned to each coastal State under this 
                subparagraph bears to the total amount so apportioned 
                is equal to the ratio of qualified outer Continental 
                Shelf revenues generated off the coastline of a coastal 
                State for the previous fiscal year to the qualified 
                outer Continental Shelf revenues generated off the 
                coastline of all coastal States during the previous 
                fiscal year.
            (3) Payments to coastal political subdivisions.--
                    (A) In general.--The Secretary shall pay 35 percent 
                of the amount allocated to each coastal State, as 
                determined under paragraph (2), to the coastal 
                political subdivisions of such coastal State.
                    (B) Allocation.--Of the amount paid to coastal 
                political subdivisions of a coastal State under 
                subparagraph (A), 100 percent shall be apportioned 
                among such coastal political subdivisions so that the 
                ratio of the amount apportioned to each coastal 
                political subdivision under this subparagraph bears to 
                the total amount so apportioned for the fiscal year for 
                the coastal State is equal to the ratio that the 
                coastline of such coastal political subdivision bears 
                to the total coastline of the coastal State, as 
                determined by the Secretary.
            (4) Determination of qualified outer continental shelf 
        revenues.--For purposes of paragraph (2), qualified outer 
        Continental Shelf revenues shall be considered to be generated 
        off the coastline of a State if such revenues were produced 
        within the area offshore of the State identified as the Federal 
        Outer Continental Shelf administrative boundary of the State by 
        the Director of the Minerals Management Service in the notice 
        published January 3, 2006, entitled Federal Outer Continental 
        Shelf (OCS) Administrative Boundaries Extending from the 
        Submerged Lands Act Boundary seaward to the Limit of the United 
        States Outer Continental Shelf (71 Fed. Reg. 127).
            (5) Notification.--The Secretary shall notify each coastal 
        State of its apportionment and the amounts of such 
        apportionment shall be available to such State to carry out 
        activities described in such State's approved Plan.
            (6) Reapportionment.--Any amount of any apportionment under 
        this subsection that has not been paid or obligated by the 
        Secretary during the fiscal year in which such notification is 
        given and the two fiscal years thereafter shall be reallocated 
        by the Secretary in accordance with paragraph (2).
            (7) Treatment of states.--
                    (A) Special rule for apportionment.--For the 
                purposes of payment and allocation under paragraphs (1) 
                and (2), Puerto Rico, the Virgin Islands, Guam, and 
                American Samoa--
                            (i) shall be treated collectively as one 
                        coastal State; and
                            (ii) shall each be allocated an equal share 
                        of any amount distributed to them pursuant to 
                        paragraph (2).
                    (B) Other purposes.--Each of the areas referred to 
                in subparagraph (A) shall be treated as a State for all 
                other purposes of this Act.
    (d) Administrative Costs.--The Secretary may use not more than \1/
2\ of 1 percent of the amount in the Fund during a fiscal year to pay 
the administrative costs of implementing this Act.

SEC. 4. COASTAL CONSERVATION AND HABITAT RESTORATION PLAN.

    (a) Requirement for Plan.--
            (1) In general.--The Secretary may provide amounts from the 
        Fund to a coastal State under section 3 only if the Secretary 
        has approved a Coastal Conservation and Habitat Restoration 
        Plan for such coastal State as described in this section.
            (2) Plans by political subdivision.--The Governor shall 
        include in the Plan submitted by the State any Plan prepared by 
        a coastal political subdivision of the State.
    (b) Content of Plan.--A Plan submitted under this section shall 
include activities to be carried out--
            (1) to implement a management program approved under 
        section 306 of the Coastal Zone Management Act of 1972 (16 
        U.S.C. 1455);
            (2) to conserve and restore coastal lands and wetlands, 
        including measures to address subsidence;
            (3) to protect areas of the coastal zone from damage 
        attributable to natural disasters, including activities to 
        protect property and lives from natural disasters;
            (4) to improve the knowledge and understanding of coastal 
        habitats, including the acquisition and installation of 
        equipment designed to collect data on such habitats;
            (5) to restore fisheries and coastal habitat; and
            (6) to mitigate and prevent damages from offshore 
        activities carried out in or near the coastal zone.
    (c) Requirement for Public Participation.--In the development of 
the Plan, the Governor and the coastal political subdivision shall--
            (1) solicit local input; and
            (2) provide for public participation.
    (d) Schedule for Review.--Not later than 90 days after a Plan of a 
State is submitted under this subsection, the Secretary shall approve 
or disapprove the plan.
    (e) Amendments or Modification.--Any amendment to or revision of a 
plan approved under this section shall be--
            (1) prepared and submitted in accordance with the 
        requirements of this section; and
            (2) approved or disapproved by the Secretary not later than 
        90 days after such amendment or revision is submitted.
    (f) Use of Funds.--A coastal State and a coastal political 
subdivision shall use any grant received under this Act--
            (1) to carry out activities described in the Plan for such 
        coastal State approved by the Secretary in a manner that is 
        consistent with Federal and State law; and
            (2) for any payment that is eligible to be made with funds 
        provided to States under section 35 of the Mineral Leasing Act 
        (30 U.S.C. 191).
    (g) Improper Use of Funds.--If the Secretary determines that an 
expenditure made by a coastal State or coastal political subdivision is 
not in accordance with the approved Plan of the State (including any 
plan of a coastal political subdivision included in the plan of the 
State), the Secretary shall not disburse any additional amount under 
this Act to such State or subdivision until--
            (1) the amount of the expenditure is repaid to the 
        Secretary; or
            (2) the Secretary approves an amendment to the plan that 
        authorizes the expenditure.
    (h) Requirement for Signage.--The Secretary shall require, as a 
condition of any allocation of funds provided under this section, that 
Coastal State or coastal political subdivision shall include on any 
sign installed at a site at or near an entrance or public use area for 
which funds provided under this Act are used a statement that the 
existence or development of the site is a product of those funds.
    (i) Annual Report.--
            (1) Requirement for report.--The Governor of a Coastal 
        State, in coordination with the coastal political subdivisions 
        of that State, shall submit an annual report to the Secretary 
        that describes all funds received under this Act during the 
        previous fiscal year and the use of such funds.
            (2) Incorporation by reference.--The annual report required 
        by paragraph (1) may incorporate by reference any other report 
        required to be submitted under another provision of law.

SEC. 5. ARBITRATION.

    The Secretary may require, as a condition of any payment under this 
section, that a coastal State or coastal political subdivision shall 
submit to arbitration--
            (1) any dispute between the Coastal State or coastal 
        political subdivision and the Secretary regarding 
        implementation of this Act; and
            (2) any dispute between the Coastal State and political 
        subdivision regarding implementation of this Act, including any 
        failure to include in the plan submitted by the State under 
        section 3 any spending plan of the coastal political 
        subdivision.

SEC. 6. CONSTRUCTION.

    Nothing in this Act shall be construed as repealing, superseding, 
modifying, or otherwise affect any authority or moratoria regarding 
leasing of offshore energy resources in effect on the date of enactment 
of this Act.
Coastal Conservation and Habitat Restoration Act of 2006 - Establishes the Coastal Conservation and Habitat Restoration Fund. Provides for the deposit into the Fund of specified amounts from the Digital Transition and Public Safety Fund and royalties from Outer Continental Shelf Fund revenues. Allocates Fund amounts in the form of grants to coastal states that have an approved Coastal Conservation and Habitat Restoration Plan that includes activities for coastal zone management, coastal wetlands conservation, coastal land protection, and fisheries habitat restoration.
A bill to establish a Conservation and Habitat Restoration Fund and to require the Secretary of Commerce to provide grants to States for coastal zone management, coastal wetlands conservation, coastal land protection, and fisheries habitat restoration, and to improve understanding of coastal areas, and for other purposes.