[Congressional Record Volume 166, Number 107 (Wednesday, June 10, 2020)]
[Senate]
[Pages S2882-S2885]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 1623. Mr. CASSIDY (for himself and Mr. Whitehouse) submitted an 
amendment intended to be proposed to amendment SA 1617 proposed by Mr. 
Gardner (for himself, Mr. Manchin, Mr. Daines, Mr. Warner, Mr. Portman, 
Ms. Cantwell, Mr. Alexander, Mr. King, Mr. Burr, Mr. Tester, Ms. 
Collins, Mr. Udall, Mr. Boozman, Mr. Schumer, Mr. Blunt, Ms. Harris, 
Mrs. Capito, Mr. Peters, Mr. Tillis, Ms. Baldwin, Ms. McSally, Mr. 
Casey, Mr. Graham, Mr. Heinrich, Mr. Bennet, Mrs. Feinstein, Mr. 
Sanders, Mr. Booker, Ms. Cortez Masto, Mr. Merkley, Mr. Wyden, Mr. 
Kaine, Ms. Sinema, Ms. Rosen, Mr. Coons, Ms. Smith, Ms. Hassan, Mrs. 
Gillibrand, Mrs. Murray, Mr. Durbin, Mrs. Shaheen, Mr. Blumenthal, Mr. 
Jones, Mr. Van Hollen, Mr. Menendez, Mr. Cardin, Mr. Brown, Ms. Hirono, 
Ms. Warren, Mr. Murphy, Ms. Klobuchar, Ms. Duckworth, Ms. Stabenow, Mr. 
Leahy, Mr. McConnell, Mr. Markey, Mr. Roberts, Mr. Perdue, Mr. Cramer, 
and Mr. Schatz) to the bill H.R. 1957, to amend the Internal Revenue 
Code of 1986 to modernize and improve the Internal Revenue Service, and 
for other purposes; which was ordered to lie on the table; as follows:

        At the end, add the following:

     SEC. 4. OUTER CONTINENTAL SHELF REVENUES.

       (a) Gulf of Mexico Outer Continental Shelf Revenues.--
       (1) Definition of qualified outer continental shelf 
     revenues.--Section 102(9)(A) of the Gulf of Mexico Energy 
     Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109-
     432) is amended--
       (A) in clause (i)(II), by striking ``and'' after the 
     semicolon;
       (B) in clause (ii)--
       (i) in the matter preceding subclause (I), by striking 
     ``fiscal year 2017 and each fiscal year thereafter'' and 
     inserting ``each of fiscal years 2017 through 2020''; and
       (ii) in subclause (III), by striking the period and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(iii) in the case of fiscal year 2021 and each fiscal 
     year thereafter, all rentals, royalties, bonus bids, and 
     other sums due and payable to the United States received on 
     or after October 1, 2020, from leases entered into on or 
     after October 1, 2000, for--

       ``(I) the 181 Area;
       ``(II) the 181 South Area; and
       ``(III) the 2002-2007 planning area.''.

       (2) Elimination of limitation on amount of distributed 
     qualified outer continental shelf revenues.--Section 105 of 
     the Gulf of Mexico Energy Security Act of 2006 (43 U.S.C. 
     1331 note; Public Law 109-432) is amended by striking 
     subsection (f) and inserting the following:

[[Page S2883]]

       ``(f) Limitations on Amount of Distributed Qualified Outer 
     Continental Shelf Revenues.--
       ``(1) Limitations.--
       ``(A) Fiscal years 2016 through 2020.--Subject to paragraph 
     (2), the total amount of qualified outer Continental Shelf 
     revenues made available under subsection (a)(2) shall not 
     exceed--
       ``(i) $500,000,000 for each of fiscal years 2016 through 
     2019; and
       ``(ii) $650,000,000 for fiscal year 2020.
       ``(B) Fiscal years 2021 through 2055.--Subject to paragraph 
     (2), the total amount of qualified outer Continental Shelf 
     revenues made available under subsection (a)(2)(B) shall not 
     exceed $125,000,000 for each of fiscal years 2021 through 
     2055.
       ``(2) Expenditures.--
       ``(A) Fiscal years 2016 through 2020.--For the purpose of 
     paragraph (1)(A), for each of fiscal years 2016 through 2020, 
     expenditures under subsection (a)(2) shall be net of receipts 
     from that fiscal year from any area in the 181 Area in the 
     Eastern Planning Area and the 181 South Area.
       ``(B) Fiscal years 2021 through 2055.--For the purpose of 
     paragraph (1)(B), for each of fiscal years 2021 through 2055, 
     expenditures under subsection (a)(2)(B) shall be net of 
     receipts from that fiscal year from any area in the 181 Area 
     in the Eastern Planning Area and the 181 South Area.
       ``(3) Pro rata reductions; reversion.--
       ``(A) Fiscal years 2016 through 2020.--If paragraph (1)(A) 
     limits the amount of qualified outer Continental Shelf 
     revenues that would be paid under subparagraphs (A) and (B) 
     of subsection (a)(2)--
       ``(i) the Secretary shall reduce the amount of qualified 
     outer Continental Shelf revenues provided to each recipient 
     on a pro rata basis; and
       ``(ii) any remainder of the qualified outer Continental 
     Shelf revenues shall revert to the general fund of the 
     Treasury.
       ``(B) Fiscal years 2021 through 2055.--If paragraph (1)(B) 
     limits the amount of qualified outer Continental Shelf 
     revenues that would be paid under subsection (a)(2)(B), any 
     remainder of the qualified outer Continental Shelf revenues 
     shall be deposited in the National Oceans and Coastal 
     Security Fund established under section 904(a) of the 
     National Oceans and Coastal Security Act (16 U.S.C. 
     7503(a)).''.
       (b) Alaska Outer Continental Shelf Revenues.--
       (1) Definitions.--In this subsection:
       (A) Coastal political subdivision.--The term ``coastal 
     political subdivision'' means--
       (i) a county-equivalent subdivision of the State--

       (I) all or part of which lies within the coastal zone (as 
     defined in section 304 of the Coastal Zone Management Act of 
     1972 (16 U.S.C. 1453)) of the State; and
       (II) the closest coastal point of which is not more than 
     200 nautical miles from the geographical center of any leased 
     tract in the Alaska outer Continental Shelf region; and

       (ii) a municipal subdivision of the State that is 
     determined by the State to be a significant staging area for 
     oil and gas servicing, supply vessels, operations, suppliers, 
     or workers.
       (B) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given the 
     term in section 102 of the Higher Education Act of 1965 (20 
     U.S.C. 1002).
       (C) Qualified revenues.--
       (i) In general.--The term ``qualified revenues'' means all 
     revenues derived from all rentals, royalties, bonus bids, and 
     other sums due and payable to the United States from energy 
     development in the Alaska outer Continental Shelf region.
       (ii) Exclusions.--The term ``qualified revenues'' does not 
     include--

       (I) revenues generated from leases subject to section 8(g) 
     of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(g)); 
     or
       (II) revenues from the forfeiture of a bond or other surety 
     securing obligations other than royalties, civil penalties, 
     or royalties taken by the Secretary in-kind and not sold.

       (D) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (E) State.--The term ``State'' means the State of Alaska.
       (2) Disposition of qualified revenues in alaska.--
     Notwithstanding section 9 of the Outer Continental Shelf 
     Lands Act (43 U.S.C. 1338) and subject to the other 
     provisions of this subsection, for fiscal year 2021 and each 
     fiscal year thereafter, the Secretary of the Treasury shall 
     deposit--
       (A) 50 percent of qualified revenues in the general fund of 
     the Treasury;
       (B) 42.5 percent of qualified revenues in a special account 
     in the Treasury, to be distributed by the Secretary to the 
     State; and
       (C) 7.5 percent of qualified revenues in a special account 
     in the Treasury, to be distributed by the Secretary to 
     coastal political subdivisions.
       (3) Allocation among coastal political subdivisions.--Of 
     the amount paid by the Secretary to coastal political 
     subdivisions under paragraph (2)(C)--
       (A) 90 percent shall be allocated among costal political 
     subdivisions described in paragraph (1)(A)(i) in amounts 
     (based on a formula established by the Secretary by 
     regulation) that are inversely proportional to the respective 
     distances between the point in each coastal political 
     subdivision that is closest to the geographic center of the 
     applicable leased tract and not more than 200 miles from the 
     geographic center of the leased tract; and
       (B) 10 percent shall be divided equally among each coastal 
     political subdivision described in paragraph (1)(A)(ii).
       (4) Timing.--The amounts required to be deposited under 
     paragraph (2) for the applicable fiscal year shall be made 
     available in accordance with that paragraph during the fiscal 
     year immediately following the applicable fiscal year.
       (5) Authorized uses.--
       (A) In general.--Subject to subparagraph (B), the State 
     shall use all amounts received under paragraph (2)(B) in 
     accordance with all applicable Federal and State laws, for 1 
     or more of the following purposes:
       (i) Projects and activities for the purposes of coastal 
     protection, conservation, and restoration, including onshore 
     infrastructure and relocation of communities directly 
     affected by coastal erosion, melting permafrost, or climate 
     change-related losses.
       (ii) Mitigation of damage to fish, wildlife, or natural 
     resources.
       (iii) Mitigation of the impact of outer Continental Shelf 
     activities through the funding of onshore infrastructure 
     projects and related rights-of-way.
       (iv) Adaptation planning, vulnerability assessments, and 
     emergency preparedness assistance to build healthy and 
     resilient communities.
       (v) Installation and operation of energy systems to reduce 
     energy costs and greenhouse gas emissions compared to systems 
     in use as of the date of enactment of this Act.
       (vi) Programs at institutions of higher education in the 
     State.
       (vii) Other purposes, as determined by the Governor of the 
     State, with approval from the State legislature.
       (viii) Planning assistance and the administrative costs of 
     complying with this subsection.
       (B) Limitation.--Not more than 3 percent of amounts 
     received by the State under paragraph (2)(B) may be used for 
     the purposes described in subparagraph (A)(viii).
       (6) Administration.--Amounts made available under 
     subparagraphs (B) and (C) of paragraph (2) shall--
       (A) be made available, without further appropriation, in 
     accordance with this subsection;
       (B) remain available until expended; and
       (C) be in addition to any amounts appropriated under any 
     other provision of law.

     SEC. 5. NATIONAL OCEANS AND COASTAL SECURITY FUND; PARITY IN 
                   OFFSHORE WIND REVENUE SHARING.

       (a) Definitions in the National Oceans and Coastal Security 
     Act.--Section 902 of the National Oceans and Coastal Security 
     Act (16 U.S.C. 7501) is amended--
       (1) by striking paragraph (5) and inserting the following:
       ``(5) Indian tribe.--The term `Indian tribe' has the 
     meaning given that term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 
     5304).''; and
       (2) in paragraph (7), by striking ``has the meaning given 
     that term pursuant to'' and inserting ``means a `tidal 
     shoreline' or a `Great Lake shoreline', as those terms are 
     used in''.
       (b) National Oceans and Coastal Security Fund.--Section 904 
     of the National Oceans and Coastal Security Act (16 U.S.C. 
     7503) is amended--
       (1) in subsection (a), by inserting ``and jointly manage'' 
     after ``establish'';
       (2) in subsection (b), by striking paragraph (1) and 
     inserting the following:
       ``(1) In general.--The Fund shall consist of such amounts 
     as--
       ``(A) are deposited in the Fund under section 105(f)(3)(B) 
     of the Gulf of Mexico Energy Security Act of 2006 (43 U.S.C. 
     1331 note; Public Law 109-432);
       ``(B) are deposited in the Fund under subparagraph 
     (C)(ii)(I)(bb) of section 8(p)(2) of the Outer Continental 
     Shelf Lands Act (43 U.S.C. 1337(p)(2)); and
       ``(C) are appropriated or otherwise made available for the 
     Fund.'';
       (3) by striking subsection (d) and inserting the following:
       ``(d) Expenditure.--
       ``(1) In general.--Of the amounts deposited into, and 
     amounts appropriated or otherwise made available for, the 
     Fund for each fiscal year--
       ``(A) not more than 75 percent may be used for the award of 
     grants under section 906(b);
       ``(B) not more than 20 percent may be used for the award of 
     grants under section 906(c); and
       ``(C) not more than 5 percent may be used by the 
     Administrator and the Foundation for administrative expenses 
     to carry out this title.
       ``(2) Limitation.--If less than $50,000,000 is deposited 
     into, or appropriated or otherwise made available for, the 
     Fund for a fiscal year, in that fiscal year--
       ``(A) amounts in the Fund shall be used for the award of 
     grants only under section 906(c); and
       ``(B) not more than 5 percent may be used by the 
     Administrator and the Foundation for administrative expenses 
     to carry out this title.
       ``(3) Division of amounts for administrative expenses.--The 
     amounts referred to in paragraphs (1)(C) and (2)(B) shall be 
     divided between the Administrator and the Foundation pursuant 
     to an agreement reached and documented by both the 
     Administrator and the Foundation.''; and

[[Page S2884]]

       (4) in subsection (e)(2), by striking ``section 906(a)(1)'' 
     and inserting ``section 906(a)''.
       (c) Eligible Uses of Amounts in the National Oceans and 
     Coastal Security Fund.--Section 905 of the National Oceans 
     and Coastal Security Act (16 U.S.C. 7504) is amended to read 
     as follows:

     ``SEC. 905. ELIGIBLE USES.

       ``(a) In General.--Amounts in the Fund may be allocated by 
     the Administrator and the Foundation to support programs and 
     activities carried out by States, local governments, Indian 
     tribes, regional and interstate collaboratives such as 
     regional ocean partnerships, nongovernmental organizations, 
     public-private partnerships, and academic institutions for 
     the purposes described in subsection (b).
       ``(b) Purposes Described.--The purposes described in this 
     subsection are the following:
       ``(1) Ocean, coastal, and Great Lakes restoration and 
     protection, including efforts to address potential impacts to 
     natural resources, communities, and coastal economies of sea 
     level change, sedimentation, erosion, changes in ocean 
     chemistry, hurricanes and other extreme coastal storms, 
     flooding, and changes in ocean temperature.
       ``(2) Restoration, protection, or maintenance of ocean, 
     coastal, and Great Lakes resources and marine habitats.
       ``(3) Projects to address management, planning, or 
     resiliency and readiness at a regional scope, such as through 
     regional ocean partnerships or similar bodies, including 
     sustainable coastal development.
       ``(4) Scientific research that contributes to the 
     understanding and mitigation of ecological, economic, 
     societal, and national security threats driven by sea level 
     change, sedimentation, erosion, changes in ocean chemistry, 
     hurricanes and other extreme weather that result in 
     declarations of major disasters pursuant to section 401 of 
     the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5170), flooding, and changes in 
     ocean temperature, including specific attention to how those 
     conditions impact commercial and recreational fishing 
     businesses, aquaculture, boat building, ports, or other 
     coastal-related businesses.
       ``(5) Efforts to assist coastal States in strengthening, 
     stabilizing, elevating, modifying, repositioning, or 
     otherwise enhancing the resiliency of onshore infrastructure, 
     including public infrastructure, affected by coastal land 
     loss or erosion, hurricanes or other extreme coastal storms, 
     or flooding from sea level change.
       ``(6) The collection, compilation, and sharing of data that 
     supports and includes regular stakeholder engagement to 
     minimize actual or potential conflicts among ocean users.
       ``(c) Prohibition on Use of Funds for Litigation or Other 
     Purposes.--No funds made available under this title may be 
     used--
       ``(1) to fund litigation against the Federal Government; or
       ``(2) to fund the creation of national marine monuments, 
     marine protected areas, or marine spatial plans.''.
       (d) Grants Under the National Oceans and Coastal Security 
     Act.--Section 906 of the National Oceans and Coastal Security 
     Act (16 U.S.C. 7505) is amended--
       (1) in subsection (a)--
       (A) by striking paragraph (2);
       (B) by striking ``(a) Administration of Grants.--'' and all 
     that follows through ``the following:'' and inserting the 
     following:
       ``(a) Administration of Grants.--Not later than 90 days 
     after funds are deposited into the Fund and made available to 
     the Administrator and the Foundation for administrative 
     purposes, the Administrator and the Foundation shall 
     establish the following:'';
       (C) in subparagraph (A), by striking ``such subsections'' 
     and inserting ``this section'';
       (D) by striking subparagraph (B) and inserting the 
     following:
       ``(B) Selection procedures and criteria for the awarding of 
     grants under this section that require consultation with the 
     Administrator and the Secretary of the Interior.'';
       (E) in subparagraph (C), by striking clause (ii) and 
     inserting the following:
       ``(ii) under subsection (c) to entities including States, 
     local governments, Indian tribes, regional and interstate 
     collaboratives such as regional ocean partnerships, 
     nongovernmental organizations, public-private partnerships, 
     and academic institutions.'';
       (F) in subparagraph (D), by striking ``Performance 
     accountability and monitoring'' and inserting ``Performance, 
     accountability, and monitoring''; and
       (G) by redesignating subparagraphs (A) through (H) as 
     paragraphs (1) through (8), respectively, and moving such 
     paragraphs, as so redesignated, 2 ems to the left;
       (2) by striking subsection (b) and inserting the following:
       ``(b) Grants to Coastal States.--
       ``(1) In general.--The Administrator shall award grants to 
     coastal States as follows:
       ``(A) 50 percent of available amounts shall be allocated 
     equally among coastal States.
       ``(B) 25 percent of available amounts shall be allocated on 
     the basis of the ratio of tidal shoreline miles in a coastal 
     State to the tidal shoreline miles of all coastal States.
       ``(C) 25 percent of available amounts shall be allocated on 
     the basis of the ratio of population density of the coastal 
     counties of a coastal State to the average population density 
     of all coastal counties based on the most recent data 
     available from the Bureau of the Census.
       ``(2) Maximum allocation to states.--Notwithstanding 
     paragraph (1), not more than 5 percent of the total funds 
     distributed under this subsection may be allocated to any 
     single coastal State. Any amount exceeding that limitation 
     shall be redistributed equally among the remaining coastal 
     States.
       ``(3) Requirement to submit plans.--
       ``(A) In general.--To be eligible to receive a grant under 
     this subsection, a coastal State shall submit to the 
     Administrator for review and approval a 5-year plan, which 
     shall include the following:
       ``(i) Criteria to determine eligibility for entities that 
     may receive funding under this subsection.
       ``(ii) A description of the process the coastal State will 
     use in allocating amounts received under this subsection, 
     which shall include--

       ``(I) a description of the relative roles in the State 
     process of--

       ``(aa) the State coastal zone management program approved 
     under the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 
     et seq.), if the coastal State has such a program; and
       ``(bb) any sea grant program (as defined in section 203 of 
     the National Sea Grant College Program Act (33 U.S.C. 1122)), 
     if the coastal State has such a program; and

       ``(II) a demonstration the process is consistent with the 
     procedures established by the Administrator and the 
     Foundation under subsection (a).

       ``(iii) A process to certify that a project or program 
     carried out using amounts received under this subsection, and 
     the awarding of a contract for the expenditure of such 
     amounts, are consistent with the standard procurement rules 
     and regulations governing a comparable project or program in 
     the coastal State, including all applicable competitive 
     bidding and audit requirements.
       ``(iv) Procedures to make publicly available on the 
     internet a list of all projects and programs receiving 
     amounts under this subsection that includes, at a minimum--

       ``(I) an identification of each entity receiving amounts 
     under this subsection;
       ``(II) the amount of funds received by each such entity;
       ``(III) a description of each such project and program; and
       ``(IV) a statement of the status of each such project and 
     program.

       ``(B) Updates.--As a condition of receiving a grant under 
     this subsection, a coastal State shall submit to the 
     Administrator, not less frequently than once every 5 years, 
     an update to the plan submitted by the coastal State under 
     subparagraph (A) for the 5-year period immediately following 
     the most recent submittal under this paragraph.
       ``(C) Inaugural year.--In the first year after the date of 
     the enactment of the Great American Outdoors Act in which the 
     Administrator awards grants under this subsection--
       ``(i) a plan approved under this paragraph shall not be 
     required; and
       ``(ii) a coastal State may use amounts received under this 
     subsection to develop a plan under this paragraph to receive 
     funding in future years.
       ``(4) Opportunity for public comment.--In determining 
     whether to approve a plan or an update to a plan under 
     paragraph (3), the Administrator shall provide the 
     opportunity for, and take into consideration, public input 
     and comment on the plan.
       ``(5) Nonparticipation by a state.--In any year, if a 
     coastal State does not submit a plan as required by paragraph 
     (3) or declines amounts distributed under this subsection, 
     the amounts that would have been allocated to the coastal 
     State shall be redistributed equally among the remaining 
     coastal States.''; and
       (3) in subsection (c)--
       (A) in paragraph (2)(B)--
       (i) in clause (ii), by striking ``; and'' and inserting a 
     semicolon;
       (ii) by redesignating clause (iii) as clause (iv); and
       (iii) by inserting after clause (ii) the following:
       ``(iii) nongovernmental organizations; and''; and
       (B) by adding at the end the following:
       ``(3) Matching requirement.--As a condition of receiving a 
     grant under this subsection, the entity seeking to receive 
     the grant shall demonstrate that funds are available from 
     non-Federal sources to match the amount of the grant.
       ``(4) Exclusion of funds from limitation.--The amount of a 
     grant awarded under this subsection shall not count toward 
     the limitation under subsection (b)(2) on funding to coastal 
     States through grants awarded under subsection (b).''.
       (e) Annual Report on Operation of the National Oceans and 
     Coastal Security Fund.--Section 907(a) of the National Oceans 
     and Coastal Security Act (16 U.S.C. 7506(a)) is amended by 
     striking ``Subject to'' and all that follows through ``the 
     Foundation'' and inserting the following: ``Not later than 60 
     days after the end of each fiscal year, the Administrator and 
     the Foundation''.
       (f) Repeal of Authorization of Appropriations for Fiscal 
     Years 2017, 2018, and 2019.--Section 908 of the National 
     Oceans and Coastal Security Act (16 U.S.C. 7507) is repealed.
       (g) Extension of Constitution, Laws, and Jurisdiction of 
     the United States to Energy Facilities and Devices on the 
     Outer Continental Shelf.--Section 4(a)(1) of the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1333(a)(1)) is 
     amended--

[[Page S2885]]

       (1) by inserting ``or producing or supporting the 
     production of energy from sources other than oil and gas'' 
     before ``, or any such installation'';
       (2) by inserting ``or transmitting energy'' after 
     ``transporting such resources''; and
       (3) in the proviso, by inserting ``and other energy'' after 
     ``That mineral''.
       (h) Parity in Offshore Wind Revenue Sharing.--Section 
     8(p)(2) of the Outer Continental Shelf Lands Act (43 U.S.C. 
     1337(p)(2)) is amended--
       (1) in subparagraph (A), by striking ``(A) The Secretary'' 
     and inserting the following:
       ``(A) In general.--Subject to subparagraphs (B) and (C), 
     the Secretary'';
       (2) in subparagraph (B), by striking ``(B) The Secretary'' 
     and inserting the following:
       ``(B) Disposition of revenues for projects located within 3 
     nautical miles seaward of state submerged land.--The 
     Secretary''; and
       (3) by adding at the end the following:
       ``(C) Disposition of revenues for offshore wind projects in 
     certain areas.--
       ``(i) Definitions.--In this subparagraph:

       ``(I) Covered offshore wind project.--The term `covered 
     offshore wind project' means a wind-powered electric 
     generation project in a wind energy area on the outer 
     Continental Shelf that is not wholly or partially located 
     within an area subject to subparagraph (B).
       ``(II) Eligible state.--The term `eligible State' means a 
     State a point on the coastline of which is located within 75 
     miles of the geographic center of the covered offshore wind 
     project.

       ``(ii) Requirement.--

       ``(I) In general.--Of the operating fees, rentals, bonuses, 
     royalties, and other payments that are paid to the Secretary 
     under subparagraph (A) from covered offshore wind projects--

       ``(aa) 50 percent shall be deposited in the Treasury and 
     credited to miscellaneous receipts;
       ``(bb) 12.5 percent shall be deposited in the National 
     Oceans and Coastal Security Fund established under section 
     904(a) of the National Oceans and Coastal Security Act (16 
     U.S.C. 7503(a)); and
       ``(cc) 37.5 percent shall be deposited in a special account 
     in the Treasury, from which the Secretary, subject to 
     subclause (II), shall disburse to each eligible State an 
     amount (based on a formula established by the Secretary of 
     the Interior by rulemaking not later than 180 days after the 
     date of enactment of the Great American Outdoors Act) that is 
     inversely proportional to the respective distances between--
       ``(AA) the point on the coastline of each eligible State 
     that is closest to the geographic center of the applicable 
     leased tract; and
       ``(BB) the geographic center of the leased tract.

       ``(II) Minimum allocation.--The amount allocated to an 
     eligible State each fiscal year under item (cc) of subclause 
     (I) shall be at least 10 percent of the amounts available 
     under that item.

       ``(iii) Timing.--The amounts required to be deposited under 
     item (cc) of clause (ii)(I) for the applicable fiscal year 
     shall be made available in accordance with that item during 
     the fiscal year immediately following the applicable fiscal 
     year.
       ``(iv) Authorized uses.--

       ``(I) In general.--Subject to subclause (II), each State 
     shall use all amounts received under clause (ii)(I)(cc) in 
     accordance with all applicable Federal and State laws, only 
     for 1 or more of the following purposes:

       ``(aa) Projects and activities for the purposes of coastal 
     protection, including conservation, coastal restoration, 
     hurricane protection, and infrastructure directly affected by 
     coastal wetland losses.
       ``(bb) Mitigation of damage to fish, wildlife, or natural 
     resources.
       ``(cc) Implementation of a federally approved marine, 
     coastal, or comprehensive conservation management plan.
       ``(dd) Mitigation of the impact of outer Continental Shelf 
     activities through the funding of onshore infrastructure 
     projects.
       ``(ee) Planning assistance and the administrative costs of 
     complying with this section.

       ``(II) Limitation.--Of the amounts received by a State 
     under clause (ii)(I)(cc), not more than 3 percent shall be 
     used for the purposes described in subclause (I)(ee).

       ``(v) Administration.--Subject to clause (vi)(III), amounts 
     made available under clause (ii)(I) shall--

       ``(I) be made available, without further appropriation, in 
     accordance with this paragraph;
       ``(II) remain available until expended; and
       ``(III) be in addition to any amount appropriated under any 
     other Act.

       ``(vi) Reporting requirement.--

       ``(I) In general.--Not later than 180 days after the end of 
     each fiscal year, the Governor of each eligible State that 
     receives amounts under clause (ii)(I)(cc) for the applicable 
     fiscal year shall submit to the Secretary a report that 
     describes the use of the amounts by the eligible State during 
     the period covered by the report.
       ``(II) Public availability.--On receipt of a report under 
     subclause (I), the Secretary shall make the report available 
     to the public on the website of the Department of the 
     Interior.
       ``(III) Limitation.--If the Governor of an eligible State 
     that receives amounts under clause (ii)(I)(cc) for the 
     applicable fiscal year fails to submit the report required 
     under subclause (I) by the deadline specified in that 
     subclause, any amounts that would otherwise be provided to 
     the eligible State under clause (ii)(I)(cc) for the 
     succeeding fiscal year shall be deposited in the National 
     Oceans and Coastal Security Fund established under section 
     904(a) of the National Oceans and Coastal Security Act (16 
     U.S.C. 7503(a)).''.

       (i) Exemption of Certain Payments From Sequestration.--
       (1) In general.--Section 255(g)(1)(A) of the Balanced 
     Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 
     905(g)(1)(A)) is amended by inserting after ``Payments to 
     Social Security Trust Funds (28-0404-0-1-651).'' the 
     following:
       ``Payments to States pursuant to subparagraph 
     (C)(ii)(I)(cc) of section 8(p)(2) of the Outer Continental 
     Shelf Lands Act (43 U.S.C. 1337(p)(2)).''.
       (2) Applicability.--The amendment made by this section 
     shall apply to any sequestration order issued under the 
     Balanced Budget and Emergency Deficit Control Act of 1985 (2 
     U.S.C. 900 et seq.) on or after the date of enactment of this 
     Act.
                                 ______