COASTAL Act

II Calendar No. 430 116TH CONGRESS 2D SESSION S. 2418 To amend the Gulf of Mexico Energy Security Act of 2006 to modify a definition and the disposition and authorized uses of qualified outer Continental Shelf revenues under that Act and to exempt State and county payments under that Act from sequestration, 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 AUGUST 1, 2019 Mr. CASSIDY (for himself, Ms. MURKOWSKI, Mr. KENNEDY, Mr. WICKER, Mr. JONES, Mr. SULLIVAN, and Mrs. HYDE-SMITH) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources FEBRUARY 25, 2020 Reported by Ms. MURKOWSKI, with amendments [Omit the part struck through and insert the part printed in italic] A BILL To amend the Gulf of Mexico Energy Security Act of 2006 to modify a definition and the disposition and authorized uses of qualified outer Continental Shelf revenues under that Act and to exempt State and county payments under that Act from sequestration, to provide for the distribution of certain outer Continental Shelf revenues to the State of Alaska, and for other purposes. VerDate Sep 11 2014 22:15 Feb 25, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\S2418.RS S2418 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 2418 RS 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; TABLE OF CONTENTS. 3 (a) SHORT TITLE.—This Act may be cited as the 4 ‘‘Conservation Of America’s Shoreline Terrain and Aquat- 5 ic Life Act’’ or the ‘‘COASTAL Act’’. 6 (b) TABLE OF CONTENTS.—The table of contents for 7 this Act is as follows: 8 Sec. 1. Short title; table of contents. TITLE I—GULF OF MEXICO OUTER CONTINENTAL SHELF REVENUES Sec. 101. Definition of qualified outer Continental Shelf revenues. Sec. 102. Disposition of qualified outer Continental Shelf revenues. Sec. 103. Exemption of certain payments from sequestration. TITLE II—ALASKA OUTER CONTINENTAL SHELF REVENUES Sec. 201. Definitions. Sec. 202. Disposition of qualified revenues in Alaska. TITLE III—STATE MINERAL REVENUE PROTECTION Sec. 301. Elimination of administrative fee. TITLE I—GULF OF MEXICO 9 OUTER CONTINENTAL SHELF 10 REVENUES 11 SEC. 101. DEFINITION OF QUALIFIED OUTER CONTINENTAL 12 SHELF REVENUES. 13 Section 102(9)(A) of the Gulf of Mexico Energy Se- 14 curity Act of 2006 (43 U.S.C. 1331 note; Public Law 15 109–432) is amended— 16 (1) in clause (i)(II), by striking ‘‘and’’ after the 17 semicolon; 18 VerDate Sep 11 2014 22:15 Feb 25, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2418.RS S2418 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 2418 RS (2) in clause (ii)— 1 (A) in the matter preceding subclause (I), 2 by striking ‘‘fiscal year 2017 and each fiscal 3 year thereafter’’ and inserting ‘‘each of fiscal 4 years 2017 through 2019’’; and 5 (B) in subclause (III), by striking the pe- 6 riod and inserting ‘‘; and’’; and 7 (3) by adding at the end the following: 8 ‘‘(iii) in the case of fiscal year 2020 9 and each fiscal year thereafter, all rentals, 10 royalties, bonus bids, and other sums due 11 and payable to the United States received 12 on or after October 1, 2019, from leases 13 entered into on or after October 1, 2000 14 for— 15 ‘‘(I) the 181 Area; 16 ‘‘(II) the 181 South Area; and 17 ‘‘(III) the 2002–2007 planning 18 area.’’. 19 SEC. 102. DISPOSITION OF QUALIFIED OUTER CONTI- 20 NENTAL SHELF REVENUES. 21 (a) IN GENERAL.—Section 105(a) of the Gulf of 22 Mexico Energy Security Act of 2006 (43 U.S.C. 1331 23 note; Public Law 109–432) is amended— 24 VerDate Sep 11 2014 22:15 Feb 25, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2418.RS S2418 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 2418 RS (1) in paragraph (1), by striking ‘‘50’’ and in- 1 serting ‘‘37.5’’; and 2 (2) in paragraph (2)— 3 (A) in the matter preceding subparagraph 4 (A), by striking ‘‘50’’ and inserting ‘‘62.5’’; 5 (B) in subparagraph (A), by striking ‘‘75’’ 6 and inserting ‘‘80’’; and 7 (C) in subparagraph (B), by striking ‘‘25’’ 8 and inserting ‘‘20’’. 9 (b) AUTHORIZED USES.—Section 105(d)(1) of the 10 Gulf of Mexico Energy Security Act of 2006 (43 U.S.C. 11 1331 note; Public Law 109–432) is amended by adding 12 at the end the following: 13 ‘‘(F) Planning, engineering, design, con- 14 struction, operations, and maintenance of 1 or 15 more projects that are specifically authorized by 16 any other Act for ecosystem restoration, hurri- 17 cane protection, or flood damage prevention.’’. 18 (c) LIMITATIONS ON AMOUNT OF DISTRIBUTED 19 QUALIFIED OUTER CONTINENTAL SHELF REVENUES.— 20 (b) LIMITATIONS ON AMOUNT OF DISTRIBUTED QUALI- 21 FIED OUTER CONTINENTAL SHELF REVENUES.—Section 22 105(f) of the Gulf of Mexico Energy Security Act of 2006 23 (43 U.S.C. 1331 note; Public Law 109–432) is amend- 24 ed— 25 VerDate Sep 11 2014 22:15 Feb 25, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S2418.RS S2418 pamtmann on DSKBC07HB2PROD with BILLS 5 •S 2418 RS (1) in paragraph (1)— 1 (A) by striking subparagraphs (B) and 2 (C); 3 (B) in subparagraph (A), by striking the 4 semicolon at the end and inserting a period; 5 and 6 (C) beginning in the matter preceding sub- 7 paragraph (A), by striking ‘‘exceed—’’ and all 8 that follows through ‘‘for each’’ in subpara- 9 graph (A) and inserting the following: ‘‘exceed 10 $500,000,000 for each’’; and 11 (2) in paragraph (2), by striking ‘‘2055’’ and 12 inserting ‘‘2019’’. 13 SEC. 103. EXEMPTION OF CERTAIN PAYMENTS FROM SE- 14 QUESTRATION. 15 (a) IN GENERAL.—Section 255(g)(1)(A) of the Bal- 16 anced Budget and Emergency Deficit Control Act of 1985 17 (2 U.S.C. 905(g)(1)(A)) is amended by inserting after 18 ‘‘Payments to Social Security Trust Funds (28–0404–0– 19 1–651).’’ the following: 20 ‘‘Payments to States pursuant to section 21 105(a)(2)(A) of the Gulf of Mexico Energy Se- 22 curity Act of 2006 (Public Law 109–432; 43 23 U.S.C. 1331 note) (014–5535–0–2–302).’’. 24 VerDate Sep 11 2014 22:15 Feb 25, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S2418.RS S2418 pamtmann on DSKBC07HB2PROD with BILLS 6 •S 2418 RS (b) APPLICABILITY.—The amendment made by this 1 section shall apply to any sequestration order issued under 2 the Balanced Budget and Emergency Deficit Control Act 3 of 1985 (2 U.S.C. 900 et seq.) on or after the date of 4 enactment of this Act. 5 TITLE II—ALASKA OUTER CONTI- 6 NENTAL SHELF REVENUES 7 SEC. 201. DEFINITIONS. 8 In this title: 9 (1) COASTAL POLITICAL SUBDIVISION.—The 10 term ‘‘coastal political subdivision’’ means— 11 (A) a county-equivalent subdivision of the 12 State— 13 (i) all or part of which lies within the 14 coastal zone (as defined in section 304 of 15 the Coastal Zone Management Act of 1972 16 (16 U.S.C. 1453)) of the State; and 17 (ii) the closest coastal point of which 18 is not more than 200 nautical miles from 19 the geographical center of any leased tract 20 in the Alaska outer Continental Shelf re- 21 gion; and 22 (B) a municipal subdivision of the State 23 that is determined by the State to be a signifi- 24 VerDate Sep 11 2014 22:15 Feb 25, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S2418.RS S2418 pamtmann on DSKBC07HB2PROD with BILLS 7 •S 2418 RS cant staging area for oil and gas servicing, sup- 1 ply vessels, operations, suppliers, or workers. 2 (2) INSTITUTION OF HIGHER EDUCATION.—The 3 term ‘‘institution of higher education’’ has the 4 meaning given the term in section 102 of the Higher 5 Education Act of 1965 (20 U.S.C. 1002). 6 (3) QUALIFIED REVENUES.— 7 (A) IN GENERAL.—The term ‘‘qualified 8 revenues’’ means all revenues derived from all 9 rentals, royalties, bonus bids, and other sums 10 due and payable to the United States from en- 11 ergy development in the Alaska outer Conti- 12 nental Shelf region. 13 (B) EXCLUSIONS.—The term ‘‘qualified 14 revenues’’ does not include— 15 (i) revenues generated from leases 16 subject to section 8(g) of the Outer Conti- 17 nental Shelf Lands Act (43 U.S.C. 18 1337(g)); or 19 (ii) revenues from the forfeiture of a 20 bond or other surety securing obligations 21 other than royalties, civil penalties, or roy- 22 alties taken by the Secretary in-kind and 23 not sold. 24 VerDate Sep 11 2014 22:15 Feb 25, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S2418.RS S2418 pamtmann on DSKBC07HB2PROD with BILLS 8 •S 2418 RS (4) SECRETARY.—The term ‘‘Secretary’’ means 1 the Secretary of the Interior. 2 (5) STATE.—The term ‘‘State’’ means the State 3 of Alaska. 4 SEC. 202. DISPOSITION OF QUALIFIED REVENUES IN ALAS- 5 KA. 6 (a) IN GENERAL.—Notwithstanding section 9 of the 7 Outer Continental Shelf Lands Act (43 U.S.C. 1338) and 8 subject to the other provisions of this section, for fiscal 9 year 2021 and each fiscal year thereafter, the Secretary 10 of the Treasury shall deposit— 11 (1) 50 percent of qualified revenues in the gen- 12 eral fund of the Treasury; 13 (2) 42.5 percent of qualified revenues in a spe- 14 cial account in the Treasury, to be distributed by the 15 Secretary to the State; and 16 (3) 7.5 percent of qualified revenues in a spe- 17 cial account in the Treasury, to be distributed by the 18 Secretary to coastal political subdivisions. 19 (b) ALLOCATION AMONG COASTAL POLITICAL SUB- 20 DIVISIONS.—Of the amount paid by the Secretary to 21 coastal political subdivisions under subsection (a)(3)— 22 (1) 90 percent shall be allocated among costal 23 political subdivisions described in section 201(1)(A) 24 in amounts (based on a formula established by the 25 VerDate Sep 11 2014 22:15 Feb 25, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S2418.RS S2418 pamtmann on DSKBC07HB2PROD with BILLS 9 •S 2418 RS Secretary by regulation) that are inversely propor- 1 tional to the respective distances between the point 2 in each coastal political subdivision that is closest to 3 the geographic center of the applicable leased tract 4 and not more than 200 miles from the geographic 5 center of the leased tract; and 6 (2) 10 percent shall be divided equally among 7 each coastal political subdivision described in section 8 201(1)(B). 9 (c) TIMING.—The amounts required to be deposited 10 under subsection (a) for the applicable fiscal year shall 11 be made available in accordance with that subsection dur- 12 ing the fiscal year immediately following the applicable fis- 13 cal year. 14 (d) AUTHORIZED USES.— 15 (1) IN GENERAL.—Subject to paragraph (2), 16 the State shall use all amounts received under sub- 17 section (a)(2) in accordance with all applicable Fed- 18 eral and State laws, for 1 or more of the following 19 purposes: 20 (A) Projects and activities for the purposes 21 of coastal protection, conservation, and restora- 22 tion, including onshore infrastructure and relo- 23 cation of communities directly affected by 24 VerDate Sep 11 2014 22:15 Feb 25, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S2418.RS S2418 pamtmann on DSKBC07HB2PROD with BILLS 10 •S 2418 RS coastal erosion, melting permafrost, or climate 1 change-related losses. 2 (B) Mitigation of damage to fish, wildlife, 3 or natural resources. 4 (C) Mitigation of the impact of outer Con- 5 tinental Shelf activities through the funding of 6 onshore infrastructure projects and related 7 rights-of-way. 8 (D) Adaptation planning, vulnerability as- 9 sessments, and emergency preparedness assist- 10 ance to build healthy and resilient communities. 11 (E) Installation and operation of energy 12 systems to reduce energy costs and greenhouse 13 gas emissions compared to systems in use as of 14 the date of enactment of this Act. 15 (F) Programs at institutions of higher edu- 16 cation in the State. 17 (G) Other purposes, as determined by the 18 Governor of the State, with approval from the 19 State legislature. 20 (H) Planning assistance and the adminis- 21 trative costs of complying with this section. 22 (2) LIMITATION.—Not more than 3 percent of 23 amounts received by the State under subsection 24 VerDate Sep 11 2014 22:15 Feb 25, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S2418.RS S2418 pamtmann on DSKBC07HB2PROD with BILLS 11 •S 2418 RS (a)(2) may be used for the purposes described in 1 paragraph (1)(H). 2 (e) ADMINISTRATION.—Amounts made available 3 under paragraphs (2) and (3) of subsection (a) shall— 4 (1) be made available, without further appro- 5 priation, in accordance with this section; 6 (2) remain available until expended; and 7 (3) be in addition to any amounts appropriated 8 under any other provision of law. 9 TITLE III—STATE MINERAL 10 REVENUE PROTECTION 11 SEC. 301. ELIMINATION OF ADMINISTRATIVE FEE. 12 (a) IN GENERAL.—Section 35 of the Mineral Leasing 13 Act (30 U.S.C. 191) is amended— 14 (1) in subsection (a), in the first sentence, by 15 striking ‘‘, subject to the provisions of subsection (b),’’; 16 (2) by striking subsection (b); 17 (3) by redesignating subsections (c) and (d) as 18 subsections (b) and (c), respectively; 19 (4) in subsection (b)(3)(B)(ii) (as so redesig- 20 nated), by striking ‘‘subsection (d)’’ and inserting 21 ‘‘subsection (c)’’; and 22 (5) in subsection (c)(3)(A)(ii) (as so redesig- 23 nated), by striking ‘‘subsection (c)(2)(B)’’ and insert- 24 ing ‘‘subsection (b)(2)(B)’’. 25 VerDate Sep 11 2014 22:15 Feb 25, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6203 E:\BILLS\S2418.RS S2418 pamtmann on DSKBC07HB2PROD with BILLS 12 •S 2418 RS (b) CONFORMING AMENDMENTS.— 1 (1) Section 6(a) of the Mineral Leasing Act for 2 Acquired Lands (30 U.S.C. 355(a)) is amended— 3 (A) in the first sentence, by striking ‘‘Sub- 4 ject to the provisions of section 35(b) of the Min- 5 eral Leasing Act (30 U.S.C. 191(b)), all’’ and in- 6 serting ‘‘All’’; and 7 (B) in the second sentence, by striking ‘‘of 8 the Act of February 25, 1920 (41 Stat. 450; 30 9 U.S.C. 191)’’ and inserting ‘‘of the Mineral 10 Leasing Act (30 U.S.C. 191)’’. 11 (2) Section 20(a) of the Geothermal Steam Act 12 of 1970 (30 U.S.C. 1019(a)) is amended in the matter 13 preceding paragraph (1), in the second sentence, by 14 striking ‘‘the provisions of subsection (b) of section 35 15 of the Mineral Leasing Act (30 U.S.C. 191(b)) and’’. 16 (3) Section 205(f) of the Federal Oil and Gas 17 Royalty Management Act of 1982 (30 U.S.C. 1735(f)) 18 is amended by striking the fourth, fifth, and sixth 19 sentences. 20 VerDate Sep 11 2014 22:15 Feb 25, 2020 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6203 E:\BILLS\S2418.RS S2418 pamtmann on DSKBC07HB2PROD with BILLS VerDate Sep 11 2014 22:15 Feb 25, 2020 Jkt 099200 PO 00000 Frm 00013 [Text truncated for display. 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