Santa Barbara Channel Federal Energy Reserve Act

Santa Barbara Channel Federal Energy Reserve Act - Expresses the findings of Congress, including that present drilling and production methods constitute environmental and navigational hazards which threaten the Santa Barbara coastline and its submerged lands sanctuary.

Provides that the area of the Outer Continental Shelf in the Santa Barbara Channel is hereby established as the Santa Barbara Channel Federal Energy Reserve. States that, except as expressly provided, all production of oil and gas in the reserve is suspended, but nothing in this Act shall prevent the continued exploration for oil and gas in the reserve. Sets forth the circumstances under which such suspension shall be lifted.

Authorizes the Secretary to extend the primary term on each lease on which production is suspended for a specified period of time.

Prescribes provisions with respect to specified leases, including that the Secretary shall not permit the erection of any further platforms within the leases unless necessary to prevent oil leakage.

Permits a tax credit for specified suspension costs to lease holders.