To amend the Outer Continental Shelf Lands Act to direct the Secretary of the Interior to issue regulations under which the Secretary may authorize use of a decommissioned offshore oil and gas platform for culture of marine organisms, an artificial reef, or scientific research, and for other purposes.

June 26, 2003

Mr. VITTER introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Resources, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

To amend the Outer Continental Shelf Lands Act to direct the Secretary of the Interior to issue regulations under which the Secretary may authorize use of a decommissioned offshore oil and gas platform for culture of marine organisms, an artificial reef, or scientific research, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Rigs to Reefs Act of 2003'.

SEC. 2. AUTHORITY TO USE DECOMMISSIONED OFFSHORE OIL AND GAS PLATFORMS FOR MARICULTURE, ARTIFICIAL REEF, OR SCIENTIFIC RESEARCH.

(a) IN GENERAL- The Outer Continental Shelf Lands Act (43 U.S.C. 1301 et seq.) is amended by inserting after section 9 the following:

`SEC. 10. USE OF DECOMMISSIONED OFFSHORE OIL AND GAS PLATFORMS FOR MARICULTURE, ARTIFICIAL REEF, OR SCIENTIFIC RESEARCH.

`(a) IN GENERAL- The Secretary shall issue regulations under which the Secretary may authorize use of an offshore oil and gas platform that is decommissioned from service for oil and gas purposes for culture of marine organisms, an artificial reef, or scientific research.

`(b) LIMITATION ON LIABILITY- A person that used an offshore oil and gas platform for oil and gas purposes and that does not have any ownership or control of the platform shall not be liable under Federal law for any costs or damages arising from such platform after the date the platform is used for culture of marine organisms, an artificial reef, or scientific research under this section, unless such costs or damages arise from--

`(1) use of the platform by the person for development or production of oil or gas; or

`(2) another act or omission of the person.

`(c) OTHER LEASING AND USE NOT AFFECTED- This section, and the use of any offshore oil and gas platform for culture of marine organisms, an artificial reef, or scientific research under this section, shall not affect--

`(1) the authority of the Secretary to lease any area under this Act; or

`(2) any activity otherwise authorized by a lease under this Act.'.

(b) DEADLINE FOR REGULATIONS- The Secretary of the Interior shall issue regulations under subsection (a) by not later than 180 days after the date of the enactment of this Act.

(c) STUDY AND REPORT ON EFFECTS OF REMOVAL OF PLATFORMS- Not later than one year after the date of the enactment of this Act, the Secretary of Interior, in consultation with other Federal agencies as necessary, shall study and report to the Congress regarding how the removal of offshore oil and gas platforms from the outer Continental Shelf would affect existing fish stocks and coral populations.

SEC. 3. CREDIT FOR COSTS RELATING TO CONVERTING OFFSHORE OIL AND GAS PLATFORMS FOR USE IN CULTURING MARINE ORGANISMS.

(a) IN GENERAL- Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to business-related credits) is amended by adding at the end the following new section:

`SEC. 45G. CREDIT FOR COSTS RELATING TO CONVERTING OFFSHORE OIL AND GAS PLATFORMS FOR CULTURING MARINE ORGANISMS.

`(a) GENERAL RULE- For purposes of section 38, the marine organisms culturing credit is an amount equal to 30 percent of the qualified marine organisms culturing expenditures of the taxpayer during the taxable year.

`(b) QUALIFIED MARINE ORGANISMS CULTURING EXPENDITURES- For purposes of subsection (a), the term `qualified marine organisms culturing expenditures' means, with respect to a platform owned by the taxpayer--

`(1) amounts paid or incurred for maintaining an offshore oil and gas platform from the time such platform is decommissioned from service for oil and gas purposes to the time it is converted for use in the culture of marine organisms, including costs of moving such platform to the reefing location, if applicable,

`(2) an amount equal to the excess (if any) of--

`(A) the costs of converting such platform for use in the culture of marine organisms, over

`(B) the amount that could have been received if such platform were sold as scrap on shore.

`(c) ELECTION- This section shall apply to any taxpayer for any taxable year only if such taxpayer elects (at such time and in such manner as the Secretary may by regulations prescribe) to have this section apply for such taxable year.'.

(b) CONFORMING AMENDMENTS-

(1) Subsection (b) of section 38 of such Code is amended by striking `plus' at the end of paragraph (14), by striking the period at the end of paragraph (15) and inserting `, plus', and by adding at the end the following new paragraph:

`(16) the marine organisms culturing credit determined under section 45G(a).'.

(2) NO CARRYBACK BEFORE EFFECTIVE DATE- Subsection (d) of section 39 of such Code (relating to carryback and carryforward of unused credits) is amended by adding at the end the following new paragraph:

`(11) NO CARRYBACK OF SECTION 45G CREDIT BEFORE EFFECTIVE DATE- No portion of the unused business credit for any taxable year which is attributable to the credit determined under section 45G may be carried back to a taxable year ending before January 1, 2004.'.

(3) The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item:

`Sec. 45G. Credit for costs relating to converting offshore oil and gas platforms for culturing marine organisms.'.

(c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 2003.

END