[Congressional Record Volume 159, Number 14 (Thursday, January 31, 2013)]
[Senate]
[Pages S442-S443]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BEGICH:
  S. 199. A bill to amend the Outer Continental Shelf Lands Act to 
require that oil produced from Federal leases in certain Arctic waters 
be transported by pipeline to onshore facilities and to provide for the 
sharing of certain outer Continental Shelf revenues from areas in the 
Alaska Adjacent Zone; to the Committee on Energy and Natural Resources.
  Mr. BEGICH. Mr. President, I wish to speak about legislation I am 
introducing today that would restore basic fairness to how our Nation 
shares revenue from energy produced Federal waters.
  The Alaska Adjacent Zone Safe Oil Transport and Revenue Sharing Act 
would provide Alaskans with the same share of Federal bonus bid and 
royalty revenue, 37.5 percent, as residents of Gulf Coast States. This 
is about fairness and a fix that is long overdue. Alaskans deserve to 
be treated as well as residents of the Gulf Coast. We bear the risks 
and the responsibilities of offshore development. It is only fair that 
we share in the proceeds.
  Revenue sharing will provide funding for the State of Alaska, local 
governments and tribes to mitigate effects of development and provide 
support for public sector infrastructure required to both develop the 
resources and respond in terms of emergency.
  The measure distributes to Alaska 37.5 percent of the Federal bonus 
bids and royalty share from any energy development, fossil or 
renewable. Of that 37.5 percent; 25 percent is directed to local 
governments; 25 percent is directed to Alaska Native corporations; 10 
percent is directed to tribal governments; and 40 percent is directed 
to the State of Alaska.
  Additionally, the Federal share is subdivided with 15 percent of the 
Federal royalties directed, without further appropriation, to the Land 
and Water Conservation Fund; and 7.5 percent directly to deficit 
reduction.
  In addition, this legislation requires oil produced in the Federal 
waters of the Chukchi and Beaufort Seas to be brought ashore by 
pipeline, a method that is safer than tanker transport and secures 
future throughput for the Trans-Alaska Pipeline.
  I am committed to putting in place all the pieces necessary to 
responsibly develop oil and gas from the Arctic Ocean. Beyond better 
permit coordination, that I have worked on in other legislation and 
with the administration, this includes more accurate marine science and 
the two main features of this bill: sharing revenue with the state and 
coastal communities as well as keeping Trans-Alaska Pipeline System, 
TAPS, flowing into the future.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 199

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Alaska Adjacent Zone Safe 
     Oil Transport and Revenue Sharing Act''.

     SEC. 2. PRODUCTION OF OIL FROM CERTAIN ARCTIC OFFSHORE 
                   LEASES.

       Section 5 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1334) is amended by adding at the end the following:
       ``(k) Oil Transportation in Arctic Waters.--The Secretary 
     shall--
       ``(1) require that oil produced from Federal leases in 
     Arctic waters in the Chukchi Sea planning area, Beaufort Sea 
     planning area, or Hope Basin planning area be transported by 
     pipeline to onshore facilities; and
       ``(2) provide for, and issue appropriate permits for, the 
     transportation of oil from Federal leases in Arctic waters in 
     preproduction phases (including exploration) by means other 
     than pipeline.''.

     SEC. 3. REVENUE SHARING FROM AREAS IN ALASKA ADJACENT ZONE.

       Section 18 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1344) is amended by adding at the end the following:
       ``(i) Revenue Sharing From Areas in Alaska Adjacent Zone.--
       ``(1) Definitions.--In this subsection:
       ``(A) Coastal political subdivision.--The term `coastal 
     political subdivision' means a county-equivalent subdivision 
     of the State all or part of which--
       ``(i) lies within the coastal zone (as defined in section 
     304 of the Coastal Zone Management Act of 1972 (16 U.S.C. 
     1453)); and
       ``(ii) the closest point of which is not more than 300 
     statute miles from the geographical center of any leased 
     tract.
       ``(B) Distance.--The terms `distance' means minimum great 
     circle distance.
       ``(C) Indian tribe.--The term `Indian tribe' means an 
     Alaska Native entity recognized and eligible to receive 
     services from the Bureau of Indian Affairs, the headquarters 
     of which is located within 300 miles of the geographical 
     center of a leased tract.
       ``(D) Leased tract.--The term `leased tract' means a tract 
     leased under this Act for the purpose of drilling for, 
     developing, and producing oil or natural gas resources.
       ``(E) Renewable energy.--The term `renewable energy' means 
     solar, wind, ocean, current, wave, tidal, or geothermal 
     energy.
       ``(F) State.--The term `State' means the State of Alaska.
       ``(2) Revenue sharing.--Subject to paragraphs (3), (4), and 
     (5), effective beginning on the date of enactment of this 
     subsection, the State shall, without further appropriation or 
     action, receive 37.5 percent of all revenues derived from all 
     rentals, royalties, bonus bids, and other sums due and 
     payable to the United States from energy development in any 
     area of the Alaska Adjacent Zone, including from all sources 
     of renewable energy leased, developed, or produced in any 
     area in the Alaska Adjacent Zone.
       ``(3) Allocation among coastal political subdivisions of 
     the state.--
       ``(A) In general.--The Secretary shall pay 25 percent of 
     any allocable share of the State, as determined under 
     paragraph (2), directly to coastal political subdivisions.
       ``(B) Allocation.--
       ``(i) In general.--For each leased tract used to calculate 
     the allocation of the State, the Secretary shall pay the 
     coastal political subdivisions within 300 miles of the 
     geographical center of the leased tract based on

[[Page S443]]

     the relative distance of the coastal political subdivisions 
     from the leased tract in accordance with this subparagraph.
       ``(ii) Distances.--For each coastal political subdivision, 
     the Secretary shall determine the distance between the point 
     on the coastal political subdivision coastline closest to the 
     geographical center of the leased tract and the geographical 
     center of the tract.
       ``(iii) Payments.--The Secretary shall divide and allocate 
     the qualified outer Continental Shelf revenues derived from 
     the leased tract among coastal political subdivisions in 
     amounts that are inversely proportional to the applicable 
     distances determined under clause (ii).
       ``(4) Allocation among regional corporations.--
       ``(A) In general.--The Secretary shall pay 25 percent of 
     any allocable share of the State, as determined under this 
     subsection, directly to certain Regional Corporations 
     established under section 7(a) of the Alaska Native Claims 
     Settlement Act (43 U.S.C. 1606(a)).
       ``(B) Allocation.--
       ``(i) In general.--For each leased tract used to calculate 
     the allocation of the State, the Secretary shall pay the 
     Regional Corporations, after determining those Native 
     villages within the region of the Regional Corporation which 
     are within 300 miles of the geographical center of the leased 
     tract based on the relative distance of such villages from 
     the leased tract, in accordance with this paragraph.
       ``(ii) Distances.--For each such village, the Secretary 
     shall determine the distance between the point in the village 
     closest to the geographical center of the leased tract and 
     the geographical center of the tract.
       ``(iii) Payments.--The Secretary shall divide and allocate 
     the qualified outer Continental Shelf revenues derived from 
     the leased tract among the qualifying Regional Corporations 
     in amounts that are inversely proportional to the distances 
     of all of the Native villages within each qualifying region.
       ``(iv) Revenues.--All revenues received by each Regional 
     Corporation under clause (iii) shall be--

       ``(I) treated by the Regional Corporation as revenue 
     subject to the distribution requirements of section 
     7(i)(1)(A) of the Alaska Native Claims Settlement Act (43 
     U.S.C. 1606(i)(1)(A)); and
       ``(II) divided annually by the Regional Corporation among 
     all 12 Regional Corporations in accordance with section 7(i) 
     of that Act.

       ``(v) Further distribution to village corporations.--A 
     Regional Corporation receiving revenues under clause (iii) or 
     (iv)(II) shall further distribute 50 percent of the revenues 
     received to the Village Corporations in the region and the 
     class of stockholders who are not residents of those villages 
     in accordance with section 7(j) of that Act (43 U.S.C. 
     1606(j)).
       ``(5) Allocation among indian tribes.--
       ``(A) In general.--The Secretary shall pay 10 percent of 
     any allocable share of the State, as determined under this 
     subsection, directly to Indian tribes.
       ``(B) Allocation.--
       ``(i) In general.--For each leased tract used to calculate 
     the allocation of the State, the Secretary shall pay Indian 
     tribes based on the relative distance of the headquarters of 
     the Indian tribes from the leased tract, in accordance with 
     this subparagraph.
       ``(ii) Distances.--For each Indian tribe, the Secretary 
     shall determine the distance between the location of the 
     headquarters of the Indian tribe and the geographical center 
     of the tract.
       ``(iii) Payments.--The Secretary shall divide and allocate 
     the qualified outer Continental Shelf revenues derived from 
     the leased tract among the Indian tribes in amounts that are 
     inversely proportional to the distances described in clause 
     (ii).
       ``(6) Conservation royalty.--After making distributions 
     under paragraph (2) and section 31, the Secretary shall, 
     without further appropriation or action, distribute a 
     conservation royalty equal to 15 percent of Federal royalty 
     revenues derived from an area leased under this subsection 
     from all areas leased under this subsection for any year, 
     into the land and water conservation fund established under 
     section 2 of the Land and Water Conservation Fund Act of 1965 
     (16 U.S.C. 460l-5) to provide financial assistance to States 
     under section 6 of that Act (16 U.S.C. 460l-8).
       ``(7) Deficit reduction.--After making distributions in 
     accordance with paragraph (2) and in accordance with section 
     31, the Secretary shall, without further appropriation or 
     action, distribute an amount equal to 7.5 percent of Federal 
     royalty revenues derived from an area leased under this 
     subsection from all areas leased under this subsection for 
     any year, into direct Federal deficit reduction.''.

     SEC. 4. IMPOSITION OF EXCISE TAX ON BITUMEN TRANSPORTED INTO 
                   THE UNITED STATES.

       (a) In General.--Subsection (a) of section 4612 of the 
     Internal Revenue Code of 1986 is amended--
       (1) in paragraph (1), by striking ``and natural gasoline'' 
     and inserting ``, natural gasoline, and bitumen'', and
       (2) by inserting at the end the following new paragraph:
       ``(10) Bitumen.--The term `bitumen' includes diluted 
     bitumen, bituminous mixtures, or any oil manufactured from 
     bitumen or a bituminous mixture.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to oil and petroleum products received or entered 
     after December 31, 2013.
                                 ______