S-738                 _______________________________________________

                                                   SENATE BILL NO. 5576

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Senators Sutherland, Metcalf, Owen and DeJarnatt; by request of Joint Select Committee on Marine and Ocean Resources

Read first time 1/27/89 and referred to Committee on   Environment & Natural Resources.

AN ACT Relating to distribution of funds from offshore oil and gas activity on the federal outer continental shelf; adding new sections to chapter 43.63A RCW; and adding a new section to chapter 43.99 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 43.63A RCW to read as follows:

          All revenue-sharing funds from oil and gas leasing activity on the outer continental shelf received from the federal government pursuant to 43 U.S.C. 1337(g)(2) shall be distributed as follows:

          (1) Thirty percent to the department of community development to be distributed to local governments impacted by the offshore oil and gas activity in accordance with section 2 of this act;

          (2) Forty percent to the recreation, fish, and wildlife permanent fund established in section 3 of this act; and

          (3) Thirty percent to the general fund.

NEW SECTION. Sec. 2.  A new section is added to chapter 43.63A RCW to read as follows:

          (1) The department of community development shall establish a local government grant program to distribute outer continental shelf federal revenue-sharing funds allocated to it in section 1 of this act.

          (2) Cities, towns, counties, school districts, public utility districts, port districts, other municipal corporations, tribal governments, and regional planning commissions are eligible to apply for grants.

          (3) Grants may be used for planning, social service delivery, capital construction projects, land acquisition, environmental review and monitoring, and program administration.

          (4) When deciding how the grants will be allocated, the department of community development shall consider the following criteria:

          (a) Increase, or projected increase, of new residents within the government's service area resulting from outer continental shelf oil and gas activity;

          (b) Number and size of existing or proposed onshore support facilities located within the government's service area;

          (c) Availability of other funds;

          (d) Size of local government matching contribution; and

          (e) Immediacy of the proposed project or use.

          (5) The department of community development shall establish guidelines for the grant program.  Up to ten percent of the funds allocated to the department under section 1 of this act may be used for program administration.

NEW SECTION. Sec. 3.  A new section is added to chapter 43.99 RCW to read as follows:

          (1) The recreation, fish, and wildlife permanent fund is hereby established in the custody of the state treasurer, and shall consist of outer continental shelf federal revenue-sharing funds allocated to it in section 1 of this act.

          (2) The principal of the account shall not be expended.

          (3) The interagency committee for outdoor recreation shall distribute the interest, dividends, and other earnings from the account as grants to state and local recreational, fish, and wildlife agencies and nonprofit organizations for projects and acquisitions that improve access to fish and wildlife resources, protect or enhance fish and wildlife habitats, or provide enhanced recreational opportunities for the state's citizens and its visitors.

          (4) When deciding how the grants will be allocated, the interagency commission for outdoor recreation shall consider the following criteria:

          (a) Number of people likely to be served by the proposed project;

          (b) Consistency of the project with the state-wide comprehensive recreation plan pursuant to RCW 43.99.122;

          (c) Potential threat and immediacy of habitat degradation;

          (d) Amount of matching contributions; and

          (e) Immediacy of the proposed project or acquisition.

          (5) The interagency committee for outdoor recreation shall establish guidelines for the grant program.  Up to ten percent of the annual earnings of the permanent fund may be used by the committee for program administration.