WASHINGTON, D.C. -- Lawmakers on Capitol Hill are considering legislation granting states greater control over their coastal waters.

  • Lawmakers considers greater state control of offshore oil
  • Supporters say legislation is fair
  • Critics say measure amounts to a 'ransom'
  • READ: Draft legislation

Under the proposed legislation, states that open up to drilling could keep some of any tax revenue generated.

States that block access to the oil would have to foot the bill, paying the federal government for a portion of the revenue they could be missing out on.

Supporters say legislation and the proposed payments are fair.

“These lands are owned by the public, meaning that keeping these resources off the market represents a cost to taxpayers nationwide,” argued Rep. Paul Gosar, R-Arizona, during a Thursday hearing.

However, the proposal is facing pushback from coastal leaders.

North Carolina Gov. Roy Cooper says it amounts to a “ransom” payment. His office estimates blocking access to the oil and natural gas could cost upwards of $500 million.

Nags Head Mayor Ben Cahoon says while opening up to drilling would allow North Carolina to avoid ponying up to the feds, the potential cost to the beach tourism industry could be even greater.

“If there’s a spill, we’re dead. We have no livelihood, and we basically lose everything that we have,” Cahoon told lawmakers. “Coastal states should not be penalized for protecting their existing economic interests.”

The legislation has been introduced as the future of offshore drilling is at a turning point.

Earlier this year, the Trump administration announced plans to open up most waterways along the coast to oil exploration.

In a letter, Cooper joined other east coast governors in condemning the legislation, writing it “improperly imposes a significant and undue burden on states aiming to preserve the economies and environments that depend on their shorelines.”

Still, bill backers argue those local economies cannot exist in a bubble.

“At some point, you have to provide the energy that is necessary to drive tourism and everything else and you can’t have it both ways,” said Rep. Rob Bishop, R-Utah.

The legislation is still in its earliest form, awaiting a vote in House committee.