A Republican package of ideas about how to revamp oil and gas leasing in federal offshore waters would use a carrot-and-stick approach to encourage states to support leasing while at the same time giving them partial veto authority.

A share of the revenues would be one of the carrots. Fees for obstructing federal development would be one of the sticks. If the incentives worked, oil and gas companies could expect to see more exploration and production opportunities.

Democrats at a House subcommittee hearing June 14 said they didn’t want to see coastal states hit...