OFFSHORE Act of 2020

II 116TH CONGRESS 2D SESSION S. 3485 To expand the Outer Continental Shelf Lands Act to expand revenue sharing for offshore wind, to reauthorize the National Oceans and Coastal Secu- rity Act, and for other purposes. IN THE SENATE OF THE UNITED STATES MARCH 12, 2020 Mr. WHITEHOUSE (for himself, Mr. CASSIDY, and Mr. KING) introduced the following bill; which was read twice and referred to the Committee on En- ergy and Natural Resources A BILL To expand the Outer Continental Shelf Lands Act to expand revenue sharing for offshore wind, to reauthorize the National Oceans and Coastal Security Act, 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 ‘‘Opening Federal Fi- 4 nancial Sharing to Heighten Opportunities for Renewable 5 Energy Act of 2020’’ or the ‘‘OFFSHORE Act of 2020’’. 6 VerDate Sep 11 2014 03:03 Mar 21, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3485.IS S3485 kjohnson on DSK79L0C42PROD with BILLS 2 •S 3485 IS SEC. 2. NATIONAL OCEANS AND COASTAL SECURITY FUND. 1 (a) REPEAL OF AUTHORIZATION OF APPROPRIA- 2 TIONS FOR FISCAL YEARS 2017, 2018, AND 2019.—Sec- 3 tion 908 of the National Oceans and Coastal Security Act 4 (16 U.S.C. 7507) is repealed. 5 (b) DEPOSITS.—Section 904 of the National Oceans 6 and Coastal Security Act (16 U.S.C. 7503) is amended— 7 (1) in subsection (b), by striking paragraph (1) 8 and inserting the following: 9 ‘‘(1) IN GENERAL.—The Fund shall consist of 10 such amounts as— 11 ‘‘(A) are deposited in the Fund under sub- 12 paragraph (C) of section 8(p)(2) of the Outer 13 Continental Shelf Lands Act (43 U.S.C. 14 1337(p)(2)); or 15 ‘‘(B) are appropriated or otherwise made 16 available for the Fund.’’; and 17 (2) in subsection (d), in the matter preceding 18 paragraph (1), by inserting ‘‘, and amounts appro- 19 priated or otherwise made available for,’’ before ‘‘the 20 Fund’’. 21 VerDate Sep 11 2014 03:03 Mar 21, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3485.IS S3485 kjohnson on DSK79L0C42PROD with BILLS 3 •S 3485 IS SEC. 3. EXTENSION OF CONSTITUTION, LAWS, AND JURIS- 1 DICTION OF THE UNITED STATES TO ENERGY 2 FACILITIES AND DEVICES ON THE OUTER 3 CONTINENTAL SHELF. 4 Section 4(a)(1) of the Outer Continental Shelf Lands 5 Act (43 U.S.C. 1333(a)(1)) is amended— 6 (1) by inserting ‘‘or producing or supporting 7 the production of energy from sources other than oil 8 and gas’’ before ‘‘, or any such installation’’; 9 (2) by inserting ‘‘or transmitting energy’’ after 10 ‘‘transporting such resources’’; and 11 (3) in the proviso, by inserting ‘‘and other en- 12 ergy’’ after ‘‘That mineral’’. 13 SEC. 4. PARITY IN OFFSHORE WIND REVENUE SHARING. 14 Section 8(p)(2) of the Outer Continental Shelf Lands 15 Act (43 U.S.C. 1337(p)(2)) is amended— 16 (1) in subparagraph (A), by striking ‘‘(A) The 17 Secretary’’ and inserting the following: 18 ‘‘(A) IN GENERAL.—Subject to subpara- 19 graphs (B) and (C), the Secretary’’; 20 (2) in subparagraph (B), by striking ‘‘(B) The 21 Secretary’’ and inserting the following: 22 ‘‘(B) DISPOSITION OF REVENUES FOR 23 PROJECTS LOCATED WITHIN 3 NAUTICAL MILES 24 SEAWARD OF STATE SUBMERGED LAND.—The 25 Secretary’’; and 26 VerDate Sep 11 2014 03:03 Mar 21, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3485.IS S3485 kjohnson on DSK79L0C42PROD with BILLS 4 •S 3485 IS (3) by adding at the end the following: 1 ‘‘(C) DISPOSITION OF REVENUES FOR OFF- 2 SHORE WIND PROJECTS IN CERTAIN AREAS.— 3 ‘‘(i) DEFINITIONS.—In this subpara- 4 graph: 5 ‘‘(I) COVERED OFFSHORE WIND 6 PROJECT.—The term ‘covered off- 7 shore wind project’ means a wind- 8 powered electric generation project in 9 a wind energy area on the outer Con- 10 tinental Shelf that is not wholly or 11 partially located within an area sub- 12 ject to subparagraph (B). 13 ‘‘(II) ELIGIBLE STATE.—The 14 term ‘eligible State’ means a State a 15 point on the coastline of which is lo- 16 cated within 75 miles of the geo- 17 graphic center of the covered offshore 18 wind project. 19 ‘‘(ii) REQUIREMENT.— 20 ‘‘(I) IN GENERAL.—Of the oper- 21 ating fees, rentals, bonuses, royalties, 22 and other payments that are paid to 23 the Secretary under subparagraph (A) 24 from covered offshore wind projects— 25 VerDate Sep 11 2014 03:03 Mar 21, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3485.IS S3485 kjohnson on DSK79L0C42PROD with BILLS 5 •S 3485 IS ‘‘(aa) 50 percent shall be de- 1 posited in the Treasury and cred- 2 ited to miscellaneous receipts; 3 ‘‘(bb) 12.5 percent shall be 4 deposited in the National Oceans 5 and Coastal Security Fund estab- 6 lished under section 904(a) of 7 the National Oceans and Coastal 8 Security Act (16 U.S.C. 9 7503(a)); and 10 ‘‘(cc) 37.5 percent shall be 11 deposited in a special account in 12 the Treasury, from which the 13 Secretary, subject to subclause 14 (II), shall disburse to each eligi- 15 ble State an amount (based on a 16 formula established by the Sec- 17 retary of the Interior by rule- 18 making not later than 180 days 19 after the date of enactment of 20 the OFFSHORE Act of 2020) 21 that is inversely proportional to 22 the respective distances be- 23 tween— 24 VerDate Sep 11 2014 03:03 Mar 21, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S3485.IS S3485 kjohnson on DSK79L0C42PROD with BILLS 6 •S 3485 IS ‘‘(AA) the point on the 1 coastline of each eligible 2 State that is closest to the 3 geographic center of the ap- 4 plicable leased tract; and 5 ‘‘(BB) the geographic 6 center of the leased tract. 7 ‘‘(II) MINIMUM ALLOCATION.— 8 The amount allocated to an eligible 9 State each fiscal year under item (cc) 10 of subclause (I) shall be at least 10 11 percent of the amounts available 12 under that item. 13 ‘‘(iii) TIMING.—The amounts required 14 to be deposited under item (cc) of clause 15 (ii)(I) for the applicable fiscal year shall be 16 made available in accordance with that 17 item during the fiscal year immediately fol- 18 lowing the applicable fiscal year. 19 ‘‘(iv) AUTHORIZED USES.— 20 ‘‘(I) IN GENERAL.—Subject to 21 subclause (II), each State shall use all 22 amounts received under clause 23 (ii)(I)(cc) in accordance with all appli- 24 VerDate Sep 11 2014 03:03 Mar 21, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S3485.IS S3485 kjohnson on DSK79L0C42PROD with BILLS 7 •S 3485 IS cable Federal and State laws, only for 1 one or more of the following purposes: 2 ‘‘(aa) Projects and activities 3 for the purposes of coastal pro- 4 tection, including conservation, 5 coastal restoration, hurricane 6 protection, and infrastructure di- 7 rectly affected by coastal wetland 8 losses. 9 ‘‘(bb) Mitigation of damage 10 to fish, wildlife, or natural re- 11 sources. 12 ‘‘(cc) Implementation of a 13 federally approved marine, coast- 14 al, or comprehensive conservation 15 management plan. 16 ‘‘(dd) Mitigation of the im- 17 pact of outer Continental Shelf 18 activities through the funding of 19 onshore infrastructure projects. 20 ‘‘(ee) Planning assistance 21 and the administrative costs of 22 complying with this section. 23 ‘‘(II) LIMITATION.—Of the 24 amounts received by a State under 25 VerDate Sep 11 2014 03:03 Mar 21, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S3485.IS S3485 kjohnson on DSK79L0C42PROD with BILLS 8 •S 3485 IS clause (ii)(I)(cc), not more than 3 per- 1 cent shall be used for the purposes de- 2 scribed in subclause (I)(ee). 3 ‘‘(v) ADMINISTRATION.—Subject to 4 clause (vi)(III), amounts made available 5 under clause (ii)(I) shall— 6 ‘‘(I) be made available, without 7 further appropriation, in accordance 8 with this paragraph; 9 ‘‘(II) remain available until ex- 10 pended; and 11 ‘‘(III) be in addition to any 12 amount appropriated under any other 13 Act. 14 ‘‘(vi) REPORTING REQUIREMENT.— 15 ‘‘(I) IN GENERAL.—Not later 16 than 180 days after the end of each 17 fiscal year, the Governor of each eligi- 18 ble State that receives amounts under 19 clause (ii)(I)(cc) for the applicable fis- 20 cal year shall submit to the Secretary 21 a report that describes the use of the 22 amounts by the eligible State during 23 the period covered by the report. 24 VerDate Sep 11 2014 03:03 Mar 21, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S3485.IS S3485 kjohnson on DSK79L0C42PROD with BILLS 9 •S 3485 IS ‘‘(II) PUBLIC AVAILABILITY.—On 1 receipt of a report under subclause 2 (I), the Secretary shall make the re- 3 port available to the public on the 4 website of the Department of the In- 5 terior. 6 ‘‘(III) LIMITATION.—If the Gov- 7 ernor of an eligible State that receives 8 amounts under clause (ii)(I)(cc) for 9 the applicable fiscal year fails to sub- 10 mit the report required under sub- 11 clause (I) by the deadline specified in 12 that subclause, any amounts that 13 would otherwise be provided to the eli- 14 gible State under clause (ii)(I)(cc) for 15 the succeeding fiscal year shall be de- 16 posited in the National Oceans and 17 Coastal Security Fund established 18 under section 904(a) of the National 19 Oceans and Coastal Security Act (16 20 U.S.C. 7503(a)).’’. 21 SEC. 5. EXEMPTION OF CERTAIN PAYMENTS FROM SEQUES- 22 TRATION. 23 (a) IN GENERAL.—Section 255(g)(1)(A) of the Bal- 24 anced Budget and Emergency Deficit Control Act of 1985 25 VerDate Sep 11 2014 03:03 Mar 21, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S3485.IS S3485 kjohnson on DSK79L0C42PROD with BILLS 10 •S 3485 IS (2 U.S.C. 905(g)(1)(A)) is amended by inserting after 1 ‘‘Payments to Social Security Trust Funds (28–0404–0– 2 1–651).’’ the following: 3 ‘‘Payments to States pursuant to subpara- 4 graph (C)(ii)(I)(cc) of section 8(p)(2) of the 5 Outer Continental Shelf Lands Act (43 U.S.C. 6 1337(p)(2)).’’. 7 (b) APPLICABILITY.—The amendment made by this 8 section shall apply to any sequestration order issued under 9 the Balanced Budget and Emergency Deficit Control Act 10 of 1985 (2 U.S.C. 900 et seq.) on or after the date of 11 enactment of this Act. 12 Æ VerDate Sep 11 2014 03:03 Mar 21, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6301 E:\BILLS\S3485.IS S3485 kjohnson on DSK79L0C42PROD with BILLS