What This Bill Does
This bill directs the federal government to share money earned from oil and gas activities in Alaska's ocean waters with the state and local communities. Starting in fiscal year 2024, revenues from energy development leases will be split into four parts, with portions going to the U.S. Treasury, Alaska, coastal communities, and a national ocean fund.
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Who It Affects
- The State of Alaska
- County-equivalent and municipal subdivisions in Alaska near coastal areas
- The U.S. Department of Interior
- The U.S. Department of Treasury
- Institutions of higher education in Alaska
- Communities affected by coastal erosion or permafrost melting
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Key Provisions
- Money from oil and gas rentals, royalties and bonus bids gets divided as follows: 50 percent to the federal Treasury, 30 percent to Alaska, 7.5 percent to coastal communities, and 12.5 percent to a national ocean fund (Sec. 3(a))
- Alaska must spend its money on coastal protection, wildlife conservation, community relocation due to erosion or climate change, infrastructure projects, energy systems that reduce emissions, higher education programs, or emergency preparedness (Sec. 3(d))
- Coastal communities closer to oil and gas leases receive larger shares of the 7.5 percent allocation through a formula based on distance (Sec. 3(b))
- Alaska must submit yearly reports to the Interior Department describing how money was spent, or the next year's funds will be withheld until the report arrives (Sec. 3(f))
- The Interior Secretary cannot approve, delay, modify or review how Alaska spends its money beyond requiring the yearly report (Sec. 3(f)(5))
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What Changes
If this becomes law, Alaska will receive 30 percent of revenues from federal oil and gas leases in its ocean waters instead of the current arrangement under the Outer Continental Shelf Lands Act. Coastal communities will also receive 7.5 percent of these revenues based on their proximity to leases. Money previously going entirely to the federal Treasury will now be shared with the state and local areas. The payments begin in the fiscal year after revenues are earned.
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Important Definitions
- **Coastal political subdivision**: A county-equivalent or city in Alaska that is partly in the coastal zone and within 200 nautical miles of an active oil and gas lease, or a city identified by the state as a major hub for oil and gas operations
- **Qualified revenues**: All money paid to the federal government from oil and gas rentals, royalties, bonus bids and other payments from energy development in Alaska's ocean waters (excluding certain lease types and non-royalty payments)
- **Institution of higher education**: Defined by the Higher Education Act of 1965
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Effective Date
Fiscal year 2024 and each fiscal year thereafter (Sec. 3(a))
II
Calendar No. 578
118TH CONGRESS
2D SESSION
S. 620
To provide for the distribution of certain outer Continental Shelf revenues
to the State of Alaska, and for other purposes.
IN THE SENATE OF THE UNITED STATES
MARCH 2, 2023
Ms. MURKOWSKI (for herself and Mr. SULLIVAN) introduced the following bill;
which was read twice and referred to the Committee on Energy and Nat-
ural Resources
NOVEMBER 21, 2024
Reported by Mr. MANCHIN, without amendment
A BILL
To provide for the distribution of certain outer Continental
Shelf revenues to the State of Alaska, and for other
purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Alaska Offshore Parity
4
Act’’.
5
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•S 620 RS
SEC. 2. DEFINITIONS.
1
In this Act:
2
(1) COASTAL
POLITICAL
SUBDIVISION.—The
3
term ‘‘coastal political subdivision’’ means—
4
(A) a county-equivalent subdivision of the
5
State—
6
(i) all or part of which lies within the
7
coastal zone (as defined in section 304 of
8
the Coastal Zone Management Act of 1972
9
(16 U.S.C. 1453)) of the State; and
10
(ii) the closest coastal point of which
11
is not more than 200 nautical miles from
12
the geographical center of any leased tract
13
in the Alaska outer Continental Shelf re-
14
gion; and
15
(B) a municipal subdivision of the State
16
that is determined by the State to be a signifi-
17
cant staging area for oil and gas servicing, sup-
18
ply vessels, operations, suppliers, or workers.
19
(2) INSTITUTION OF HIGHER EDUCATION.—The
20
term ‘‘institution of higher education’’ has the
21
meaning given the term in section 102 of the Higher
22
Education Act of 1965 (20 U.S.C. 1002).
23
(3) QUALIFIED REVENUES.—
24
(A) IN
GENERAL.—The term ‘‘qualified
25
revenues’’ means all revenues derived from all
26
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•S 620 RS
rentals, royalties, bonus bids, and other sums
1
due and payable to the United States from en-
2
ergy development in the Alaska outer Conti-
3
nental Shelf region.
4
(B) EXCLUSIONS.—The term ‘‘qualified
5
revenues’’ does not include—
6
(i) revenues generated from leases
7
subject to section 8(g) of the Outer Conti-
8
nental Shelf Lands Act (43 U.S.C.
9
1337(g)); or
10
(ii) revenues from the forfeiture of a
11
bond or other surety securing obligations
12
other than royalties, civil penalties, or roy-
13
alties taken by the Secretary in-kind and
14
not sold.
15
(4) SECRETARY.—The term ‘‘Secretary’’ means
16
the Secretary of the Interior.
17
(5) STATE.—The term ‘‘State’’ means the State
18
of Alaska.
19
SEC. 3. DISPOSITION OF QUALIFIED REVENUES IN ALASKA.
20
(a) IN GENERAL.—Notwithstanding section 9 of the
21
Outer Continental Shelf Lands Act (43 U.S.C. 1338) and
22
subject to the other provisions of this section, for fiscal
23
year 2024 and each fiscal year thereafter, the Secretary
24
of the Treasury shall deposit—
25
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•S 620 RS
(1) 50 percent of qualified revenues in the gen-
1
eral fund of the Treasury;
2
(2) 30 percent of qualified revenues in a special
3
account in the Treasury, to be distributed by the
4
Secretary to the State;
5
(3) 7.5 percent of qualified revenues in a spe-
6
cial account in the Treasury, to be distributed by the
7
Secretary to coastal political subdivisions; and
8
(4) 12.5 percent of qualified revenues in the
9
National Oceans and Coastal Security Fund estab-
10
lished under section 904(a) of the National Oceans
11
and Coastal Security Act (16 U.S.C. 7503(a)).
12
(b) ALLOCATION AMONG COASTAL POLITICAL SUB-
13
DIVISIONS.—Of the amount paid by the Secretary to
14
coastal political subdivisions under subsection (a)(3)—
15
(1) 90 percent shall be allocated among costal
16
political subdivisions described in section 2(1)(A) in
17
amounts (based on a formula established by the Sec-
18
retary by regulation) that are inversely proportional
19
to the respective distances between the point in each
20
coastal political subdivision that is closest to the geo-
21
graphic center of the applicable leased tract and not
22
more than 200 miles from the geographic center of
23
the leased tract; and
24
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•S 620 RS
(2) 10 percent shall be divided equally among
1
each coastal political subdivision described in section
2
2(1)(B).
3
(c) TIMING.—The amounts required to be deposited
4
under subsection (a) for the applicable fiscal year shall
5
be made available in accordance with that subsection dur-
6
ing the fiscal year immediately following the applicable fis-
7
cal year.
8
(d) AUTHORIZED USES.—
9
(1) IN GENERAL.—Subject to paragraph (2),
10
the State shall use all amounts received under sub-
11
section (a)(2) in accordance with all applicable Fed-
12
eral and State laws, for 1 or more of the following
13
purposes:
14
(A) Projects and activities for the purposes
15
of coastal protection, conservation, and restora-
16
tion, including onshore infrastructure and relo-
17
cation of communities directly affected by
18
coastal erosion, melting permafrost, or climate
19
change-related losses.
20
(B) Mitigation of damage to fish, wildlife,
21
or natural resources.
22
(C) Mitigation of the impact of outer Con-
23
tinental Shelf activities through the funding of
24
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•S 620 RS
onshore infrastructure projects and related
1
rights-of-way.
2
(D) Adaptation planning, vulnerability as-
3
sessments, and emergency preparedness assist-
4
ance to build healthy and resilient communities.
5
(E) Installation and operation of energy
6
systems to reduce energy costs and greenhouse
7
gas emissions compared to systems in use as of
8
the date of enactment of this Act.
9
(F) Programs at institutions of higher edu-
10
cation in the State.
11
(G) Other purposes, as determined by the
12
Governor of the State, with approval from the
13
State legislature.
14
(H) Planning assistance and the adminis-
15
trative costs of complying with this section.
16
(2) LIMITATION.—Not more than 3 percent of
17
amounts received by the State under subsection
18
(a)(2) may be used for the purposes described in
19
paragraph (1)(H).
20
(e) ADMINISTRATION.—Amounts made available
21
under paragraphs (2) and (3) of subsection (a) shall—
22
(1) be made available, without further appro-
23
priation, in accordance with this section;
24
(2) remain available until expended; and
25
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•S 620 RS
(3) be in addition to any amounts appropriated
1
under any other provision of law.
2
(f) REPORTING REQUIREMENT FOR FISCAL YEAR
3
2025 AND THEREAFTER.—
4
(1) IN GENERAL.—Beginning with fiscal year
5
2025, not later than 180 days after the end of each
6
fiscal year in which the State receives amounts
7
under subsection (a)(2), the State shall submit to
8
the Secretary a report that describes the use of the
9
amounts by the State during the preceding fiscal
10
year covered by the report.
11
(2) PUBLIC AVAILABILITY.—On receipt of a re-
12
port required under paragraph (1), the Secretary
13
shall make the report available to the public on the
14
website of the Department of the Interior.
15
(3) LIMITATION.—If the State fails to submit
16
the report required under paragraph (1) by the
17
deadline specified in that paragraph, any amounts
18
that would otherwise be provided to the State under
19
subsection (a)(2) for the succeeding fiscal year shall
20
be withheld for the succeeding fiscal year until the
21
date on which the report is submitted.
22
(4) CONTENTS OF REPORT.—Each report re-
23
quired under paragraph (1) shall include, for each
24
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•S 620 RS
project funded in whole or in part using amounts re-
1
ceived under subsection (a)(2)—
2
(A) the name and description of the
3
project;
4
(B) the amount received under subsection
5
(a)(2) that is allocated to the project; and
6
(C) a description of how each project is
7
consistent with the authorized uses under sub-
8
section (d).
9
(5) CLARIFICATION.—Nothing in this sub-
10
section—
11
(A) requires or provides authority for the
12
Secretary to delay, modify, or withhold payment
13
under this subsection, other than for failure to
14
submit a report as required under this sub-
15
section;
16
(B) requires or provides authority for the
17
Secretary to review or approve uses of funds re-
18
ported under this subsection;
19
(C) requires or provides authority for the
20
Secretary to approve individual projects that re-
21
ceive funds reported under this subsection;
22
(D) requires the State to obtain the ap-
23
proval of, or review by, the Secretary prior to
24
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•S 620 RS
spending funds disbursed under subsection
1
(a)(2);
2
(E) requires or provides authority for the
3
Secretary to issue guidance relating to the con-
4
tents of, or to determine the completeness of,
5
the report required under this subsection;
6
(F) requires the State to obligate or ex-
7
pend funds disbursed under subsection (a)(2)
8
by a certain date; or
9
(G) requires or provides authority for the
10
Secretary to request the State to return unobli-
11
gated funds.
12
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Calendar No. 578
118TH CONGRESS
2D SESSION
S. 620
A BILL
To provide for the distribution of certain outer
Continental Shelf revenues to the State of Alas-
ka, and for other purposes.
NOVEMBER 21, 2024
Reported without amendment
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