OF THE GOV. Memorandum 2 AM October 7:1,8 91101/J211,21314 5 Date: To: From: Re: • pa.t. The State of Texas ffice of State - Federal Relations 600 Maryland Avenue, S.W., • Suite 255 Washington, D.C. 20024 202/488-3927 -David Herndon, John Gosdin, Steve Stagner, Andy Kever, Mike Hightower, Seth Burnitt, Bill Fisher, Mark Lawless Lee Solsbery, eputy Director House Passa evenue Sharing Bill and Prospects for F er Action Later This Year William P. Clements, Jr. Governor Daniel N. Matheson, Ill Director After two earlier floor debates and several postponements, the full House finally passed its Outer Continental Shelf Revenue Sharing bill, H.R. 5543, by a 260-134 vote on September 29. A major reason for the lengthy debate and delays was a written communication from the Admin- istration voicing strong opposition to the legislation. Copies of the September 29 floor debate and recorded vote in the House are attached, along with the Administration letter to House Merchant Marine Committee Chairman Jones opposing H.R. 5543. The Senate Commerce Committee did not mark up the OCS Revenue Sharing legislation pending there before the recess (S. 2792 and S. 2794), but a lot of pressure will be placed on them to move on a bill during the lame duck session. S. 2792, the Stevens-Hollings compromise bill which, unlike the House bill, recognizes actual OCS oil and gas activity as well as coastal management activities in its funding formula, now has 22 co-sponsors in the Senate. A major effort to attract additional co-sponsors will be mounted during the recess. Possibly more important is the Administration's written position on S. 2792 (also attached) which only says they cannot support the Senate bill "as drafted"--a much softer stance than their vehement opposition to H.R. 5543. The Administration letter to the Senate, in fact, gives some indication as to what things would have to be in an OCS revenue sharing bill to make it acceptable to the President. Senator Lowell Weicker (R-Conn.) is not strongly pushing his alternative bill, S. 2794, although he is pushing for one or two elements of his bill to be included in the final Senate product. In particular, Sen. Weicker is suggesting a revised funding formula which is based 50% on OCS production activity and 50% on coastal zone management activities as a compromise between two of the key constituencies for revenue sharing. Senator Bob Packwood (R-Oregon), who chairs the Senate committee which must act on the bill, is said to be pushing for a formula which sends more money to his home state. Suffice to say that many disparate interests, very little time, and coolness on the part of the Administration make the prospects for a final OCS revenue sharing bill this session less than optimistic; however, there is still a legitimate chance for action if the right compromises are made. I will keep you posted on further developments. Attachments