[Senate Report 114-137]
[From the U.S. Government Publishing Office]


                                                      Calendar No. 217
114th Congress    }                                      {      Report
                                 SENATE
 1st Session      }                                      {     114-137

======================================================================



 
  THE OFFSHORE PRODUCTION AND ENERGIZING NATIONAL SECURITY ACT OF 2015

                                _______
                                

               September 9, 2015.--Ordered to be printed

                                _______
                                

  Ms. Murkowski, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                         [To accompany S. 2011]

    The Committee on Energy and Natural Resources, having 
considered an original bill (S. 2011) to provide for reforms of 
the administration of the Outer Continental Shelf of the United 
States, and for other purposes, reports favorably thereon and 
recommends that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose of the Measure...........................................     1
Background and Need..............................................     2
Legislative History..............................................     4
Committee Recommendation and Tabulation of Votes.................     4
Section-by-Section Analysis......................................     5
Cost and Budgetary Considerations................................     9
Regulatory Impact Evaluation.....................................     9
Congressionally Directed Spending................................    10
Executive Communications.........................................    10
Minority Views...................................................    11
Changes in Existing Law..........................................    16

                                Purpose

    The purpose of this measure is to provide for reforms of 
the administration of the Outer Continental Shelf of the United 
States, to provide for revenue sharing for coastal producing 
states, to lift the ban on crude oil exports, and to support 
Tribal resilience efforts.

                          Background and Need

    The outer continental shelf (OCS) of the United States is a 
significant source of domestic oil and natural gas production. 
Following the Supreme Court's decision in United States v. 
California in 1947 that all of the submerged lands and their 
oil and gas resources beyond the nation's coastline belonged to 
the nation as a whole and not to the adjacent state, Congress 
gave the coastal states the first three nautical miles of 
submerged lands beyond their shores in 1953. At the same time, 
Congress expressly retained control over the submerged lands 
and their resources beyond the three-nautical-mile area ceded 
to the coastal states. In 1986, Congress gave the coastal 
states an additional 27 percent of the federal oil and gas 
royalties from leases in the second three nautical miles from 
the coastline to compensate the states for any drainage of 
state resources that might occur from oil and gas development 
on adjacent federal leases. In 2006, pursuant to the Gulf of 
Mexico Energy Security Act (GOMESA), Congress gave four coastal 
states--Louisiana, Texas, Alabama, and Mississippi--37.5 
percent of the federal royalties from new leases in a limited 
area (Phase I) of the Gulf of Mexico beginning in 2007, and 
beginning in fiscal year 2017 from all leases in the Gulf of 
Mexico entered into after 2006 (Phase II). Phase II revenue 
sharing for the four Gulf states is currently subject to an 
annual cap of $500 million. Under current law, Alaska, Florida, 
and the Atlantic and Pacific Ocean coastal states are not 
eligible to receive a share of lease revenues for leasing that 
may occur off their shores.

Oil and gas lease sales

    According to the U.S. Energy Information Administration 
(EIA), crude oil production from the Federal OCS in the Gulf of 
Mexico (GOM) averaged 1.4 million barrels per day in 2014, 
which accounts for roughly 16 percent of domestic crude oil 
production. Offshore production also contributes substantial 
revenues to the Federal Treasury. According to the Office of 
Natural Resources Revenue, royalties from crude oil production 
in the offshore GOM for fiscal year 2014 were $4.65 billion 
dollars. In the same fiscal year, $3.4 million dollars were 
shared with the four coastal states pursuant to GOMESA, 
accounting for roughly 0.07 percent of the royalties from GOM 
crude oil production. In addition to crude oil, the OCS is an 
important source of natural gas, natural gas liquids, and 
condensate that also provide domestic energy and revenues for 
the treasury. In addition to direct revenues, producing oil and 
gas from the OCS supports local businesses and employment; the 
Bureau of Ocean Energy Management (BOEM) estimates that the GOM 
supports approximately 250,000 jobs and that increased leasing 
may increase local employment opportunities associated with 
development and production.
    Lease sales form the foundation of future OCS production by 
providing access to prospective acreage. In lease sales, 
companies competitively bid for the right to explore for oil 
and gas on the lease and--should they discover commercially 
viable quantities of oil and gas--the right to pursue 
development, and ultimately production. Lease sales are held by 
the BOEM based on Five-Year Plans developed according to the 
Outer Continental Shelf Lands Act (OCSLA). The current Draft 
Proposed Program (DPP) issued by BOEM recommends 14 lease sales 
over the period from 2017 through 2022. BOEM proposes a single 
lease sale in the Beaufort (2020), one in the Cook Inlet 
(2021), and one in the Chukchi (2022) sea off Alaska over the 
five year period. Similarly, in the Mid-Atlantic and South-
Atlantic the DPP calls for a single sale (2021). The remaining 
lease sales are proposed for the GOM regions not currently 
subject to Congressional moratorium--primarily the Eastern Gulf 
of Mexico (EGOM). It is important to note that inclusion of a 
sale in the DPP does not guarantee that a sale will be included 
in the final plan. The Committee believes this legislation is 
necessary to improve our economy, strengthen national energy 
security, and provide more funding for land and water 
conservation.

Oil exports

    A complex regulatory and legal framework imposes a general 
prohibition on the export of domestic crude oil. The Energy 
Policy and Conservation Act of 1975 requires the President to 
``promulgate a rule'' prohibiting oil exports. Additional 
statutory restrictions are imposed by the Mineral Leasing Act, 
as amended in 1973; the Outer Continental Shelf Lands Act, as 
amended in 1978; and the Naval Petroleum Reserves Production 
Act of 1976. In the past, Presidents Ronald Reagan, George H.W. 
Bush, and Bill Clinton determined oil exports to be in the 
national interest under certain conditions. The United States 
is the only member of the International Energy Agency that 
generally prohibits exporting oil.
    Despite rising supply and falling net imports, companies 
that produce oil in the United States are unable to access 
global markets. Refined products, however, may be exported 
without a license and are currently at record levels. The EIA 
reported that light grades of oil constitute the majority of 
new production, which the bulk of refineries in the U.S. are 
not optimized to process, and that domestic gasoline prices 
correlate to the international benchmark price of oil, which 
would likely decrease as a result of greater domestic oil 
exports. The Congressional Budget Office and the Government 
Accountability Office (GAO) have concluded that repealing the 
general prohibition on exporting oil would likely not raise 
gasoline prices.
    The Committee believes that domestic crude oil exports are 
in the best interest of the country. This legislation would 
authorize exports of domestic crude oil without a license 
although exports of oil from the Strategic Petroleum Reserve 
would still require a license. Exports to countries that are 
subject to sanctions by the United States would be prohibited. 
This legislation also preserves the emergency authority of the 
President to prohibit exports.

Tribal resilience

    The Committee recognizes the need to provide support to 
Indian Tribes to protect their land and resources from weather-
related events. This legislation builds off existing 
Administration planning and education programs to focus on 
capital investment in the restoration or construction of 
infrastructure, energy systems that reduce emissions and social 
or cultural infrastructure that supports resilience.

                          Legislative History

    During the 113th Congress, the Committee on Energy and 
Natural Resources conducted two oversight hearings (January 30, 
2014 and March 25, 2014) to examine the issue of crude oil 
exports. Numerous measures in both the Senate and the House of 
Representatives were introduced dealing with oil and gas 
development in the OCS. The House of Representatives passed 
H.R. 2231, the Offshore Energy and Jobs Act on June 28, 2013 
and it was referred to the Committee but no further action was 
taken.
    In the 114th Congress, the Committee of Energy and Natural 
Resources conducted an oversight hearing on crude oil export 
policy (March 19, 2015). The Full Committee held a legislative 
hearing on energy supply (S. Hrg. 114-17, May 19, 2015) to 
consider a number of measures, including: S. 1276, the Gulf of 
Mexico Offshore Energy and Jobs Act, S. 1278, the Alaska Outer 
Continental Shelf Lease Sale Act; and S. 1279, the Southern 
Atlantic Energy Security Act. The Committee also held a 
legislation hearing to consider energy accountability and 
reform measures (June 9, 2015), including S. 1312, the Energy 
Supply and Distribution Act.
    On July 22, 2015, the Chairman circulated to Members of the 
Committee a draft of an original bill drawn from the text of S. 
1276. S. 1278, S. 1279, and S. 1312.
    The Committee on Energy and Natural Resources met in open 
business session on July 30, 2015 to consider the draft, and 
ordered an original bill favorably reported.

            Committee Recommendation and Tabulation of Votes

    The Senate Committee on Energy and Natural Resources, in an 
open business session on July 30, 2015, by a majority voice 
vote of a quorum present, recommended that the Senate pass an 
original bill, as described herein.
    The roll call vote on reporting the measure was 12 yeas, 10 
nays, as follows:
        YEAS                          NAYS
Ms. Murkowski                       Ms. Cantwell
Mr. Barrasso                        Mr. Wyden*
Mr. Risch                           Mr. Sanders*
Mr. Lee*                            Ms. Stabenow
Mr. Flake*                          Mr. Franken
Mr. Daines                          Mr. Manchin
Mr. Cassidy                         Mr. Heinrich
Mr. Gardner                         Ms. Hirono
Mr. Portman                         Mr. King
Mr. Hoeven                          Ms. Warren
Mr. Alexander*
Mrs. Capito

*Indicates vote by proxy.

                      Section-by-Section Analysis


Section 1. Short title; Table of contents

    Section 1 provides a short title and table of contents.

Section 2. Definition of Secretary

    Section 2 defines ``Secretary'' for purposes of the Act as 
the Secretary of the Interior.

    TITLE 1: THE GULF OF MEXICO OFFSHORE ENERGY AND JOBS ACT OF 2015

Section 101. Outer Continental Shelf leasing program reforms

    Section 101 amends section 18 of the OCSLA by defining the 
term ``available unleased acreage'' and requiring the Secretary 
to make available unleased acreage in each proposed oil and gas 
leasing program in the Gulf of Mexico based on the most recent 
geologic assessment. It also requires the Secretary to include 
any State subdivision requested by a Governor of the State in 
each proposed oil and gas leasing program in the Gulf of 
Mexico; prohibits the Secretary from removing such subdivision 
from the proposed program until publication of the final 
program; and requires the Secretary to include in each proposed 
oil and gas leasing program in the Gulf of Mexico any OCS area 
that is estimated to include more than a specified quantity of 
oil or gas resources and specifies the guidelines to be used by 
the Secretary in estimating the resources.

Section 102. Moratorium on oil and gas leasing in certain areas of the 
        Gulf of Mexico

    Section 102(a) amends section 102 of GOMESA to define the 
military mission line in the western border of the Eastern 
Planning Area. Section 102(b) amends section 104(a) of that Act 
by adjusting the moratorium in the Eastern Planning Area from 
125 miles off the coast of the State of Florida to 50 miles and 
the area of the moratorium in the Central Planning Area from 
within 100 miles to within 50 miles off the Florida coastline.

Section 103. Requirement to implement proposed 2017-2022 oil and gas 
        leasing program

    Section 103 requires the Secretary to implement the 
Proposed Final Outer Continental Shelf Oil and Gas Leasing 
Program (2017-2022) with certain revisions and adds three lease 
sales in the Eastern Gulf of Mexico Planning Area in fiscal 
years 2018, 2019, and 2020.

Section 104. Disposition of outer Continental Shelf revenues to Gulf 
        producing States

    Section 104 amends section 102 of GOMESA to include the 
State of Florida as a Gulf producing State beginning in fiscal 
year 2017 and to provide for revenue sharing to the State from 
sales in the Eastern Gulf of Mexico Planning Area from leases 
entered into on, or after October 1, 2016. Section 104(b) 
amends section 105(a) of GOMESA to direct the 25 percent of the 
50 percent of revenues from the Gulf of Mexico not reserved to 
the treasury or to states to be considered as income to the 
Land and Water Conservation Fund for financial assistance to 
States. Section 104(d) amends section 105(f) of GOMESA to 
increase the cap on revenue sharing to Gulf Producing States 
from $500 million to $699 million from fiscal years 2018 
through 2025 and from $699 million to $999 million from fiscal 
years 2026 through 2055.

Section 105. National defense

    Section 105 clarifies that the authority of the Secretary 
of Defense to designate national defense areas on the OCS 
remains unaffected, and prohibits conflicts between 
exploration, development or production of oil and gas on the 
OCS with any military operation.

Section 106. Environmental impact statement requirement

    Section 106 directs the Secretary to prepare a multi-state 
environmental impact statement for the lease sales required 
under the title that are not included in the Proposed Final 
Outer Continental Shelf Oil and Gas Leasing Program (2017-2022) 
and specifies the actions to be considered.

Section 107. State authorization

    Section 107 allows a State to enter into a leasing program 
prior to the publication of an environmental impact statement 
for the Proposed Final Outer Continental Shelf Oil and Gas 
Leasing Program if the legislature of that State enacts a law 
approving inclusion in the program.

Section 108. Air emissions from outer Continental Shelf activities

    Section 108 amends section 328 of the Clean Air Act to 
create consistency with the rest of the Gulf of Mexico for the 
Eastern Gulf of Mexico Planning Area for the purposes of air 
permitting.

Section 109. Offshore certainty

    Section 109 adopts time requirements for the Secretary's 
consideration of requests for an Incidental Harassment 
Authorization (IHA) and clarifies the treatment of an IHA for 
the purposes of the Endangered Species Act.

Section 110. Continuous operations rule

    Section 110 requires the Secretary to amend the regulatory 
requirement for continuous operations to maintain a lease from 
180 to 365 days.

Section 111. GAO report on cumulative cost of regulation for offshore 
        energy production

    Section 111 requires the Comptroller General to prepare a 
report estimating the cost of complying with major Federal 
rules relating to offshore energy development and submit the 
report to the Congressional committees of jurisdiction.

      TITLE II: THE ALASKA OUTER CONTINENTAL SHELF LEASE SALE ACT

Section 201. Lease sales in Nearshore Beaufort Sea Planning Area, Cook 
        Inlet Planning Area

    Section 201 establishes the Nearshore Beaufort Sea Planning 
Area and requires the Secretary to conduct lease sales in that 
Planning Area and the Cook Inlet Planning Area in fiscal years 
2018, 2019, and 2020.

Section 202. Lease terms of certain Chukchi and Beaufort leases

    Section 202 amends section 8(b)(2) of OCSLA to revise the 
term of leases issued in the Beaufort Sea Planning Area or the 
Chukchi Sea Planning Area to 20 years and provides the 
Secretary explicit authority to extend existing lease terms in 
the Chukchi and Beaufort to 20 years.

Section 203. Distribution of revenue to Alaska

    Section 203 amends section 9 of OCSLA to direct the 
disposition of revenues from the OCS of Alaska for fiscal years 
2016 through 2026 to the Treasury; the State of Alaska; coastal 
political subdivisions; the North Slope Science Initiative; 
institutions of higher education and workforce investment 
boards; a special account in the Treasury to support offshore 
leasing and development programs and the development of rights 
of way needed for transportation purposes; and to the Tribal 
Resilience Fund established in section 402 of this bill. It 
directs the disposition of revenues from the OCS of Alaska to 
the Treasury, the State of Alaska, coastal political 
subdivisions and the Tribal Resilience Fund beginning in fiscal 
year 2027.

Section 204. Inclusion of Beaufort, Nearshore Beaufort, Cook Inlet, and 
        Chukchi lease sales in 5-year leasing programs

    Section 304 amends section 18 of OCSLA to require at least 
three lease sales in each of the Beaufort Planning Area and the 
Chukchi Planning Area, and annually in the Nearshore Beaufort 
Planning Area and Cook Inlet Planning area in any 5-year 
proposed oil and gas leasing program, beginning with the oil 
and gas leasing program for 2023 to 2027.

Section 205. North Slope science initiative

    Section 205 amends section 348 of the Energy Policy Act of 
2005 to include the Beaufort and Chukchi Seas in the 
jurisdiction of the North Slope Science Initiative (NSSI) and 
to expand the membership of the NSSI to include the Northwest 
Arctic Borough and NANA Regional Corporation.

          TITLE III: THE SOUTHERN ATLANTIC ENERGY SECURITY ACT

Section 301. Definition

    Section 301 defines key terms for the title and establishes 
the South Atlantic Planning Area.

Section 302. Preserving coastal viewsheds

    Section 302(a) creates protections for coastal viewsheds by 
requiring consultation by the Secretary with a Governor prior 
to conducting a lease sale within 30 nautical miles of the 
coastline of a State to consider the establishment of lease 
stipulations for the management of surface occupancy of the 
areas between the coastline and 30 nautical miles. Section 
302(b) sets forth consideration for production facilities. 
Section 302(c) establishes restrictions on the installation of 
permanent production facilities in the area up to 30 nautical 
miles off coastline.

Section 303. 2017-2022 leasing program

    Section 303 requires the Secretary to include the South 
Atlantic Planning Area in the OCS leasing program for fiscal 
years 2017 through 2022 and conduct lease sales in the South 
Atlantic Planning Area in fiscal years 2021 and 2022.

Section 304. Balancing of military and energy production goals

    Section 304(a) recognizes that the OCS is integral to 
national security, requires the Secretary to work with the 
Secretary of Defense in implementing lease sales to preserve 
the ability of the Armed Forces of the United States to use the 
OCS and to allow effective oil, gas and renewable energy 
exploration, development and production from the OCS. Section 
304(b) clarifies that nothing in this title or amendment 
affects the authority of the Secretary of Defense to designate 
national defense areas on the OCS. Prohibits exploration, 
development, or production of oil and gas on the OCS that would 
conflict with any military operation.

Section 305. Disposition of revenues to Atlantic States

    Section 305 amends section 9 of OCSLA to direct the 
disposition of revenues from the South Atlantic Planning Area 
to the Treasury, States, the Department of Energy for projects 
that enhance the safety, security, resiliency and reliability 
of energy supply, research, transmission, storage or 
distribution infrastructure, the Energy Efficiency and 
Renewable Energy program at the Department of Energy, and to 
high priority maintenance needs at the National Park Service 
that support critical infrastructure and visitor services. It 
provides for a Governor to direct revenues received by a State 
to enhance State land and water conservation efforts, improve 
public transportation projects, establish alternative, 
renewable and clean energy production, enhance beach 
nourishment and coastal dredging, and enhance geological and 
geophysical education programs.

Section 306. Enhancing geological and geophysical education for 
        America's energy future

    Section 306(a) requires the Secretary to partner with 
institutions of higher education to facilitate the study of 
geological and geophysical sciences in support of exploration 
and development of the OCS. Section 306(b) provides direction 
for the focus of activities amended under this section. Section 
306(c) provides direction for a Governor's nomination of 
institutions of higher education, authorizes an institution of 
higher education to conduct research under this section, 
requires a permit to conduct certain research that uses any 
solid or liquid explosive, establishes requirements for data 
development, and establishes reporting requirements.

Section 307. Atlantic regional office

    Section 307 requires the Director of the BOEM to establish 
an Atlantic Regional Office and provides criteria for the 
location of the office.

                  TITLE IV: TRIBAL RESILIENCE PROGRAM

Section 401. Tribal Resilience Program

    Section 401 requires the Secretary to establish the Tribal 
Resilience Program, authorizes grants, defines eligible program 
activities, specifies the uses of program funds, requires 
interagency cooperation and creates a Tribal Resilience Liaison 
position.

Section 402. Tribal Resilience Fund

    Section 402 establishes the Tribal Resilience Fund, defines 
deposits to the fund, and authorizes appropriations.

                         TITLE V: MISCELLANEOUS

Section 501. Access to markets

    Section 501(a) authorizes all crude oil to be exported 
without a Federal license to countries not sanctioned by the 
United States, except crude oil stored in the Strategic 
Petroleum Reserve. Section 501(b) preserves the emergency 
authorities of the President to prohibit exports. Section 
501(d) specifies that the President may prohibit exports on an 
annual basis if the Secretary of Commerce and the Secretary 
Energy determine that exports are causing supply shortages or 
price spikes that threaten the U.S. economy. Section 501(e) 
requires the GAO to report biannually on the effects of oil 
exports.

Section 502. Reports

    Section 502(a) requires the Secretary to submit to the 
relevant Congressional Committees an analysis of the proposed 
regulations of the Bureau of Safety and Environmental 
Enforcement relating to blowout preventer systems and well 
control and exploratory drilling in the arctic. Section 501(b) 
provides direction for the contents of such analysis, and 
prohibits the Secretary from issuing any proposed, interim or 
final regulation until submission of the required report. 
Section 501(c) further prohibits the Secretary from issuing any 
final regulation or rule that does not take into account the 
report's findings.

                   Cost and Budgetary Considerations

    The Congressional Budget Office estimate of the costs of 
this measure has been requested but was not received at the 
time the report was filed. When the report is available, the 
Chairman will request it to be printed in the Congressional 
Record for the advice of the Senate.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out the legislation.
    The bill is not a regulatory measure in the sense of 
imposing Government-established standards or significant 
economic responsibilities on private individuals and 
businesses.
    The provides that an institute of higher education selected 
for a grant under this section may only conduct research under 
this section using any solid or liquid explosive upon 
authorization by a permit issued by the Director.
    The bill also provides that the President may impose export 
licensing requirements or other restrictions on the export of 
crude oil from the United States in certain emergency 
circumstances. This emergency authority mirrors existing law 
and any economic and regulatory burden would only apply in 
times of emergency.
    No personal information would be collected in administering 
programs authorized under the bill. Therefore, there would be 
no impact on personal privacy.
    Little, if any, additional paperwork would result from the 
enactment of the bill, as ordered reported.

                   Congressionally Directed Spending

    The bill, as reported, does not contain any congressionally 
directed spending items, limited tax benefits, or limited 
tariff benefits as defined in rule XLIV of the Standing Rules 
of the Senate.

                        Executive Communications

    Executive views on the original bill have not been 
received.

                             MINORITY VIEWS

    The best thing that can be said for the Offshore Production 
and Energizing National Security Act, or OPENS Act, is that it 
has an appropriate acronym. It opens the doors to the United 
States Treasury to a few chosen states; it opens new offshore 
areas to oil and gas development upon demand, heedless of 
rational planning; and it opens access to our domestic oil 
supplies to foreign buyers, leaving the American people open to 
paying higher gasoline prices.

                         THE ROYALTY GIVE-AWAY

    All of the lands submerged beneath the territorial sea 
beyond our shores and the oil and natural gas resources they 
contain once belonged to the nation and to its people as a 
whole. More than sixty years ago, a few coastal states tried to 
claim those submerged lands and their resources for themselves 
alone. But the Supreme Court rejected the coastal states' 
claims and held that the submerged lands and their resources 
belonged to the nation as a whole. ``National interests, 
national responsibilities, national concerns are involved,'' 
the Court said.\1\
---------------------------------------------------------------------------
    \1\United States v. Louisiana, 339 U.S. 699, 704 (1950), citing 
United States v. California, 332 U.S. 19 (1947).
---------------------------------------------------------------------------
    In spite of the Supreme Court's decision, Congress voted to 
give the submerged lands beneath our territorial seas to the 
adjacent coastal states in 1953. The Submerged Lands Act, 
dubbed the ``Oil Give-Away'' Law by its opponents, gave the 
coastal states all of the submerged lands to a distance of 
three nautical miles from the coastline (and in the case of 
Florida and Texas, nine nautical miles into the Gulf of 
Mexico). The Oil Give-Away Law also gave the coastal states the 
right to develop the oil and natural gas resources beneath 
these submerged lands and to retain all of the royalties from 
those resources for themselves.
    But in giving the coastal states the first three nautical 
miles of the continental shelf, Congress made it clear that it 
was retaining for the nation as a whole the so-called ``outer'' 
continental shelf, the rest of the continental shelf outside 
the area given to the coastal states. The Outer Continental 
Shelf Lands Act, enacted just three months after the Oil Give-
Away Law, gave the federal government exclusive ownership and 
control over the mineral wealth of the outer continental shelf. 
Royalties from the oil and natural leases on the outer 
continental shelf are now one of the federal government's 
largest sources of non-tax income.
    Not satisfied with the generous gift of the inner 
continental shelf, four of the five Gulf Coast states persuaded 
Congress in 2006 to give them 37.5 percent of the federal 
government's royalties from certain new federal leases in the 
Gulf of Mexico beginning in fiscal year 2007, and 37.5 percent 
of the federal royalties from all leases in the central and 
western planning areas of the Gulf of Mexico beginning in 
fiscal year 2017, up to a total of $500 million per year.
    The OPENS Act will compound this huge loss to the Federal 
Treasury. It begins by raising the $500 million annual cap on 
the payment of federal royalties to the Gulf Coast states to 
$699 million per year beginning in October 2017, and then 
raising it again to $999 million per year, nearly double its 
current level, beginning in October 2025.
    But the OPENS Act does not stop there. It extends the 
payment of federal royalties to six more coastal states: 
Alaska, Florida, Georgia, North Carolina, South Carolina, and 
Virginia. It commits 37.5 percent of the federal royalties from 
oil and gas leases on the outer continental shelf beneath the 
Atlantic Ocean to the four Atlantic coastal states, without any 
cap on the total payments. It commits 22.5 percent of the 
federal royalties from oil and gas leases on the outer 
continental shelf surrounding Alaska to Alaska and 2.5 percent 
to Indian tribes beginning this October, and 37.5 percent to 
Alaska and 12.5 percent to Indian tribes beginning in October 
2026, without any cap on total payments. All of these amounts 
are in addition to the state royalties collected by the coastal 
states for oil and gas leases on the inner continental shelf 
given to them by the Submerged Lands Act in 1953. They are 
taken from the federal royalties the Act reserved to the 
federal government for the benefit of all Americans.

                         THE PLANNING GIVE-AWAY

    Under current law, ``the outer Continental Shelf is a vital 
national reserve held by the Federal Government for the public, 
which should be made available for expeditious and orderly 
development, subject to environmental safeguards, in a manner 
which is consistent with . . . national needs.'' 43 U.S.C. 
Sec. 1332(3). To that end, the Outer Continental Shelf Lands 
Act establishes an orderly planning process. It requires the 
Secretary of the Interior, as the guardian of this public 
trust, to maintain an ongoing leasing program in five-year 
planning increments. The Act commands her to conduct the 
leasing program ``in a manner which considers economic, social, 
and environmental values . . ., and the potential impact of oil 
and gas'' development on ``the marine, coastal, and human 
environments.'' 43 U.S.C. Sec. 1344(a)(1).
    The OCS Lands Act entrusts the responsibility for 
conducting the leasing program to the Secretary of the 
Interior. She is entrusted to ``select the timing and location 
of leasing, to the maximum extent practicable, so as to obtain 
a proper balance between the potential for environmental 
damage, the potential for discovery of oil and gas, and the 
potential for adverse impact on the coastal zone.'' 43 U.S.C. 
Sec. 1344(a)(3). Governors may make recommendations to the 
Secretary, but she alone bears the responsibility for striking 
``a reasonable balance between the national interest and the 
well-being of the citizens of the affected state.'' 43 U.S.C. 
Sec. 1345(c). It is the Secretary, not the Governors or the oil 
and gas industry, who must determine ``the size, timing, and 
location of leasing activity which . . . will best meet 
national energy needs . . .'' 43 U.S.C. Sec. 1344(a).
    The OPENS Act upends this balance by requiring the 
Secretary to conduct mandatory lease sales. To begin with, 
under the Gulf of Mexico Energy Security Act of 2006, the 
Secretary may not lease any area within 125 miles of the 
Florida coastline in the eastern planning area or within 100 
miles of the Florida coastline in the central planning area 
before July 2022. Nor may she lease, before July 2022, any area 
east of the Military Mission Line, a line drawn south from 
Eglin Air Force Base nearly 30 years ago to avoid conflicts 
between oil and gas leasing and military testing and training 
activities in the Eastern Gulf of Mexico. Congress put these 
areas off limits by statute in 2006 out of concern for military 
preparedness and the potential environmental consequences of 
oil and gas development in the Eastern Gulf.
    The OPENS Act opens up a vast part of the Eastern Gulf 
currently protected by current law by shrinking the statutory 
125- and 100-mile exclusion areas to only 50 miles, and by 
shortening the Military Mission line to only 50 miles from the 
Florida coastline. It then mandates three lease sales in the 
Eastern Gulf, one each in fiscal years 2018, 2019, and 2020, 
without regard to the Secretary's determination of national 
energy needs or her balancing of national interests.
    Similarly, the OPENS Act requires the Secretary to make 
available for leasing all ``available unleased acreage'' within 
each of the three planning areas in the Gulf of Mexico thought 
``to have the largest undiscovered, technically recoverable oil 
and gas resources,'' as well as any subdivision of a planning 
area requested by a Governor. It mandates three lease sales, 
one each in fiscal years 2018, 2019, and 2020, in a new 
``Nearshore'' planning area in the Beaufort Sea, and three 
additional lease sales, one each in fiscal years 2018, 2019, 
and 2020, in the Cook Inlet planning area in Alaska. It 
requires the Secretary to conduct at least 3 lease sales in the 
existing Beaufort planning area and at least 3 lease sales in 
the Chukchi planning area during the 2023-2027 planning period. 
It requires her to conduct one lease sale in the new 
``Nearshore'' planning area in the Beaufort Sea and one lease 
sale in the Cook Inlet planning area in each of the five years 
during the 2023-2027 planning period. And it requires her to 
conduct at least one lease sale during fiscal year 2021 and two 
lease sales during fiscal year 2022 in the South Atlantic 
planning area. That adds up to 28 mandatory lease sales that 
the Secretary must conduct without regard to whether she 
believes they ``will best meet national energy needs,'' or 
whether they will strike a ``proper balance between the 
potential for environmental damage, the potential for the 
discovery of oil and gas, and the potential for adverse impact 
on the coastal zone.''
    To make matters worse, the OPENS Act goes on to weaken air 
pollution controls, marine mammal protections, endangered 
species protections, due diligence requirements, and National 
Environmental Policy Act requirements, and it quadruples the 
length of leases in the Arctic in its headlong rush to produce 
more oil for sale abroad.

                           THE OIL GIVE-AWAY

    The OPENS Act also lifts the crude oil export ban. The 
current ban on crude oil exports stems from three separate laws 
within the Committee's jurisdiction: section 103 of the Energy 
Policy and Conservation Act; section 28 of the Mineral Leasing 
Act; and section 28 of the OCS Lands Act. All three of these 
laws rest on the Export Administration Act of 1979, which by 
its terms expired in 2001, but remains in effect under 
emergency authority granted to the President by the 
International Emergency Economic Powers Act. President Bush 
invoked this emergency authority to continue the Export 
Administration Act's export controls in 2001, saying that it 
was necessary to protect the domestic economy. President Bush 
and President Obama have continued to use the emergency 
authority to continue export controls each year since 2001.
    The Energy Policy and Conservation Act was enacted in 1975 
to conserve energy supplies following the Arab oil embargo of 
1973. EPCA does not bar crude oil export directly, but instead 
directs the President to prohibit crude oil exports by use of 
the export control procedures established by the Export 
Administration Act of 1979. Similarly, the Mineral Leasing Act 
subjects the export of any domestically produced crude oil that 
is transported by pipeline over a right-of-way granted under 
that Act across public lands to the licensing requirements of 
the Export Administration Act. And the OCS Lands Act subjects 
oil and gas produced from the outer continental shelf to the 
requirements of the Export Administration Act.
    Significantly, though, EPCA, the Mineral Leasing Act, and 
the OCS Lands Act all provide a national interest exception to 
the export ban. EPCA exempts crude oil exports from the ban if 
the President determines they are consistent with the national 
interest. The Mineral Leasing Act permits crude oil exports if 
they will not diminish domestic oil supplies. The OCS Lands Act 
permits exports if they will not increase our dependence on 
imported oil. Both the Mineral Leasing Act and the OCS Lands 
Act also require that any exports be in the national interest 
and in accord with the Export Administration Act.
    Plainly, then, the President can loosen or lift the ban on 
crude oil exports under these statutes without any additional 
legislative authority simply by finding that crude oil exports 
are consistent with the national interest and will not diminish 
domestic supplies or increase dependence on foreign imports. 
Under this authority, President Reagan authorized crude oil 
exports to Canada in 1985 and 1988, President George H. W. Bush 
authorized exports of California heavy crude oil in 1992, and 
President Clinton authorized exports of Alaskan North Slope 
crude oil in 1996. In addition, the Commerce Department has 
recently announced its decision to permit the export of light, 
sweet crude produced in this country to Mexico, in exchange for 
heavy Mexican crude. Several Presidents have found relaxing the 
ban on crude oil exports is in the national interest, but none 
has yet been able to find that lifting it entirely is. The fact 
that our dependence on foreign oil has declined since its peak 
in 2005 may suggest to some that the ban can now be lifted. But 
the fact that we still need to import about a quarter of the 
oil we consume argues strongly against lifting the ban 
completely.
    The OPENS Act sweeps away the crude oil export ban based 
upon its own self-declared findings. But the bill's wishful 
thinking is no substitute for the Presidential determination 
required by current law that exports must be in the national 
interest, must not diminish domestic supplies, and must not 
increase our dependence on foreign imports. The bill contains a 
savings clause that would allow the President to reinstate the 
ban if exports harm the economy. But it would be better not to 
lift the ban until the President can make the necessary 
determinations that the ban will do no harm in the first place, 
rather than promising to reinstate the ban after harm is done.

                               CONCLUSION

    Under current law, the Outer Continental Shelf ``is a vital 
natural resource reserve held by the Federal Government for the 
public.'' It is ``available for expeditious and orderly 
development,'' but ``subject to environmental safeguards,'' and 
``in a manner which is consistent with . . . national needs.'' 
43 U.S.C. Sec. 1332(3). Congress should use the wealth that 
comes from developing this national resource to meet national 
needs, for the benefit of the nation as a whole, and not turn 
it over to a few select coastal states. It should ensure the 
orderly development of those resources, in a manner that 
safeguards our fisheries and the environment, and on a schedule 
designed to ``best meet national energy needs.'' We should not 
``mindlessly . . . lease every square foot of seabottom at 
whatever risk''\2\ to satisfy world oil demand. We should not 
lift the ban on crude oil exports unless we can first establish 
that doing so will not reduce our domestic oil supplies, 
increase our dependence on foreign imports, or harm our 
national interest.
---------------------------------------------------------------------------
    \2\Massachusetts v. Andrus, 594 F.2d 872, 889 (1st Cir. 1979).
---------------------------------------------------------------------------
    The OPENS Act would give federal royalties that belong to 
the nation as a whole to a select group of coastal states, it 
would force the leasing of areas without regard to our national 
energy needs, and it would export domestic crude oil without 
regard for the national interest. For all of these reasons, it 
should not be enacted.

                                                    Maria Cantwell.
                        Changes in Existing Law

    In compliance with paragraph 12 of Rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the original bill, as ordered reported, are shown as follows: 
existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no changes is proposes is shown in roman):

                           Table of Contents

                                                                   Page
1.  Clean Air Act, Act of July 14, 1955, Chapter 360, as Amended.    16
2.  Energy Policy Act of 2005, Public Law 109-58, as Amended.....    17
3.  Gulf of Mexico Energy Security Act of 2005, Division C of 
  Public Law 109-432.............................................    18
4.  The Outer Continental Shelf Lands Act, Act of August 7, 1953, 
  Chapter 345, as Amended........................................    22

                             CLEAN AIR ACT

Act of July 14, 1955, Chapter 360, as amended

           *       *       *       *       *       *       *



SEC. 328. AIR POLLUTION FROM OUTER CONTINENTAL SHELF ACTIVITIES.

    (a)(1) Applicable Requirements for Certain Areas.--Not 
later than 12 months after the enactment of the Clean Air Act 
Amendments of 1990, following consultation with the Secretary 
of the Interior and the Commandant of the United States Coast 
Guard, the Administrator, by rule, shall establish requirements 
to control air pollution from Outer Continental Shelf sources 
located offshore of the States along the Pacific, Arctic and 
Atlantic Coasts (other than Outer Continental Shelf sources 
located offshore of the North Slope Borough of the State of 
Alaska), [and along the United States Gulf Coast off the State 
of Florida eastward of longitude 87 degrees and 30 minutes] 
(``OCS sources'') to attain and maintain Federal and State 
ambient air quality standards and to comply with the provisions 
of part C of title I. For such sources located within 25 miles 
of the seaward boundary of such States, such requirements shall 
be the same as would be applicable if the source were located 
in the corresponding onshore area, and shall include, but not 
be limited to, State and local requirements for emission 
controls, emission limitations, offsets, permitting, 
monitoring, testing, and reporting. New OCS sources shall 
comply with such requirements on the date of promulgation and 
existing OCS sources shall comply on the date 24 months 
thereafter. The Administrator shall update such requirements as 
necessary to maintain consistency with onshore regulations. The 
authority of this subsection shall supersede section 5(a)(8) of 
the Outer Continental Shelf Lands Act but shall not repeal or 
modify any other Federal, State, or local authorities with 
respect to air quality. Each requirement established under this 
section shall be treated, for purposes of sections 113, 114, 
116, 120, and 304, as a standard under section 111 and a 
violation of any such requirement shall be considered a 
violation of section 111(e).

           *       *       *       *       *       *       *

    (b) Requirements for Other Offshore Areas.--For portions of 
the United States Outer Continental Shelf that are adjacent to 
the States not covered by subsection (a) which are Texas, 
Louisiana, Mississippi, the United States Gulf Coast off the 
State of Florida, and Alabama or are adjacent to the North 
Slope Borough of the State of Alaska, the Secretary shall 
consult with the Administrator to assure coordination of air 
pollution control regulation for Outer Continental Shelf 
emissions and emissions in adjacent onshore areas. Concurrently 
with this obligation, the Secretary shall complete within 3 
years of enactment of this section a research study examining 
the impacts of emissions from Outer Continental Shelf 
activities in such areas that fail to meet the national ambient 
air quality standards for either ozone or nitrogen dioxide. 
Based on the results of this study, the Secretary shall consult 
with the Administrator and determine if any additional actions 
are necessary. There are authorized to be appropriated such 
sums as may be necessary to provide funding for the study 
required under this section.

           *       *       *       *       *       *       *


                       ENERGY POLICY ACT OF 2005

Public Law 109-58, as amended

           *       *       *       *       *       *       *



SEC. 348. NORTH SLOPE SCIENCE INITIATIVE.

    (a) Establishment.--
          (1) In general.--The Secretary of the Interior 
        (referred to in this section as the ``Secretary'') 
        shall establish a long-term initiative to be known as 
        the ``North Slope Science Initiative'' (referred to in 
        this section as the ``Initiative'').
          (2) Purpose.--The purpose of the Initiative shall be 
        to implement efforts to coordinate collection of 
        scientific data that will provide a better 
        understanding of the terrestrial, aquatic, and marine 
        ecosystems of the North Slope of Alaska (including the 
        Beaufort and Chukchi seas).
    (b) Objectives.--To ensure that the Initiative is conducted 
through a comprehensive science strategy and implementation 
plan, the Initiative shall, at a minimum--
          (1) identify and prioritize information needs for 
        inventory, monitoring, and research activities to 
        address the individual and cumulative effects of past, 
        ongoing, and anticipated development activities and 
        environmental change on the North Slope (including the 
        Beaufort and Chukchi seas);
          (2) [develop an understanding of] identify 
        information needs for regulatory and land management 
        agencies, local governments, and the public;

           *       *       *       *       *       *       *

    (c) Membership.--
          (1) In general.--To ensure comprehensive collection 
        of scientific data, in carrying out the Initiative, the 
        Secretary shall consult and coordinate with Federal, 
        State, and local agencies that have responsibilities 
        for land and resource management across the North 
        Slope.
          (2) Cooperative agreements.--The Secretary shall 
        enter into cooperative agreements with the State of 
        Alaska, the North Slope Borough, the Arctic Slope 
        Regional Corporation, the Northwest Arctic Borough, the 
        NANA Regional Corporation, and other Federal agencies 
        as appropriate to coordinate efforts, share resources, 
        and fund projects under this section.

           *       *       *       *       *       *       *


               GULF OF MEXICO ENERGY SECURITY ACT OF 2006

Division C of Public Law 109-432

           *       *       *       *       *       *       *



SEC. 102. DEFINITIONS.

    In this title:

           *       *       *       *       *       *       *

          [(7) Gulf producing state.--The term ``Gulf producing 
        State'' means each of the States of Alabama, Louisiana, 
        Mississippi, and Texas.]
          (7) Gulf producing state.--The term ``Gulf producing 
        State'' means--
                  (A) each of the States of Alabama, Louisiana, 
                Mississippi, and Texas; and
                  (B) effective beginning in fiscal year 2017, 
                the State of Florida.
          [(8) Military mission line.--The term ``Military 
        Mission Line'' means the north-south line at 86+ 41, W. 
        longitude.]
          (8) Military mission line.--The term ``Military 
        Mission Line'' means the western border of the Eastern 
        Planning Area extending from the State of Florida 
        waters to the point that is 50 miles south in the Gulf 
        of Mexico.
          (9) Qualified outer continental shelf revenues.--
                  (A) In general.--The term ``qualified outer 
                Continental Shelf revenues'' means--
                          (i) in the case of each of fiscal 
                        years 2007 through 2016, all rentals, 
                        royalties, bonus bids, and other sums 
                        due and payable to the United States 
                        from leases entered into on or after 
                        the date of enactment of this Act for--
                                  (I) areas in the 181 Area 
                                located in the Eastern Planning 
                                Area; and
                                  (II) the 181 South Area; 
                                [and]
                          [(ii) in the case of fiscal year 2017 
                        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, 2016, from leases entered 
                        into on or after the date of enactment 
                        of this Act for--
                                  [(I) the 181 Area;
                                  [(II) the 181 South Area; and
                                  [(III) the 2002-2007 planning 
                                area.]
                          (ii) in the case of fiscal year 2017 
                        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, 2016, from leases entered 
                        into on or after December 20, 2006 in--
                                  (I) areas in the 181 Area 
                                located in the Eastern Planning 
                                Region;
                                  (II) the 181 South Area;
                                  (III) the Central Planning 
                                Area, as described in paragraph 
                                (6)(A)(ii); and
                                  (IV) the Western Planning 
                                Area, as described in paragraph 
                                (6)(A)(iii); and
                          (iii) in the case of fiscal year 2017 
                        and each fiscal year thereafter, all 
                        eligible rentals, royalties, bonus 
                        bids, and other sums due and payable to 
                        the United States from leases entered 
                        into on or after October 1, 2016, in 
                        the Eastern Planning Area, as described 
                        in paragraph (6)(A)(i).

           *       *       *       *       *       *       *


SEC. 104. MORATORIUM ON OIL AND GAS LEASING IN CERTAIN AREAS OF GULF OF 
                    MEXICO.

    (a) In General.--Effective during the period beginning on 
the date of enactment of this Act and ending on June 30, 2022, 
the Secretary shall not offer for leasing, preleasing, or any 
related activity--
          (1) any area east of the Military Mission Line in the 
        Gulf of Mexico;
          (2) any area in the Eastern Planning Area that is 
        within [125] 50 miles of the coastline of the State of 
        Florida; or
          [(3) any area in the Central Planning Area that is--
                  [(A) within--
                          [(i) the 181 Area; and
                          [(ii) 100 miles of the coastline of 
                        the State of Florida; or
                  [(B)(i) outside the 181 Area;
                  [(ii) east of the western edge of the 
                Pensacola Official Protraction Diagram (UTM X 
                coordinate 1,393,920 (NAD 27 feet)); and
                  [(iii) within 100 miles of the coastline of 
                the State of Florida.]
          (3) any area in the Central Planning Area that is 
        within--
                  (A) the 181 Area; and
                  (B) 50 miles off the coastline of the State 
                of Florida.

           *       *       *       *       *       *       *


SEC. 105. DISPOSITION OF QUALIFIED OUTER CONTINENTAL SHELF REVENUES 
                    FROM 181 AREA, 181 SOUTH AREA, AND 2002-2007 
                    PLANNING AREAS OF GULF OF MEXICO.

    (a) In General.--Notwithstanding section 9 of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1338) and subject to the 
other provisions of this section, for each applicable fiscal 
year, the Secretary of the Treasury shall deposit--
          (1) 50 percent of qualified outer Continental Shelf 
        revenues in the general fund of the Treasury; [and]
          [(2) 50 percent of qualified outer Continental Shelf 
        revenues in a special account in the Treasury from 
        which the Secretary shall disburse--]
                  [(A) 75 percent to Gulf producing States in 
                accordance with subsection (b); and]
                  [(B) 25 percent to provide financial 
                assistance to States in accordance with section 
                200305 of title 54, United States Code, which 
                shall be considered income to the Land and 
                Water Conservation Fund for purposes of section 
                200302 of that title.]
          (2) in the case of qualified outer Continental Shelf 
        revenues described in section 102(9)(A)(ii) generated 
        from outer Continental Shelf areas adjacent to the Gulf 
        producing States described in section 102(7)(A), 50 
        percent in a special account in the Treasury from which 
        the Secretary shall disburse--
                  (A) 75 percent to those Gulf producing States 
                in accordance with subsection (b); and
                  (B) 25 percent to provide financial 
                assistance to States in accordance with section 
                200305 of title 54, United States Code, which 
                shall be considered income to the Land and 
                Water Conservation Fund for purposes of section 
                200302 of that title.
          (3) in the case of qualified outer Continental Shelf 
        revenues described in section 102(9)(A)(iii) generated 
        from outer Continental Shelf areas adjacent to the Gulf 
        producing States described in section 102(7), 50 
        percent in a special account in the Treasury from which 
        the Secretary shall disburse--
                  (A) 75 percent to those Gulf producing States 
                in accordance with subsection (b); and
                  (B) 25 percent to provide financial 
                assistance to States in accordance with section 
                200305 of title 54, United States Code, which 
                shall be considered income to the Land and 
                Water Conservation Fund for purposes of section 
                200302 of that title.

           *       *       *       *       *       *       *

    (b) Allocation Among Gulf Producing States and Coastal 
Political Subdivisions.--
          (1) Allocation among gulf producing states for fiscal 
        years 2007 through 2016.--
                  (A) In general.--Subject to subparagraph (B), 
                effective for each of fiscal years 2007 through 
                2016, the amount made available under 
                subsection (a)(2)(A) shall be allocated to each 
                Gulf producing State in amounts (based on a 
                formula established by the Secretary by 
                regulation) that are inversely proportional to 
                the respective distances between the point on 
                the coastline of each Gulf producing State that 
                is closest to the geographic center of the 
                applicable leased tract and the geographic 
                center of the leased tract.
                  (B) Minimum allocation.--The amount allocated 
                to a Gulf producing State each fiscal year 
                under subparagraph (A) shall be at least 10 
                percent of the amounts available under 
                subsection (a)(2)(A).
          (2) Allocation among gulf producing states for fiscal 
        year 2017 and thereafter.--
                (A) In general.--Subject to subparagraphs (B) 
                and (C), effective for fiscal year 2017 and 
                each fiscal year thereafter--
                          (i) the amount made available under 
                        subsection (a)(2)(A) from any lease 
                        entered into within the 181 Area or the 
                        181 South Area shall be allocated to 
                        each Gulf producing State, as described 
                        in section 102(7)(A), in amounts (based 
                        on a formula established by the 
                        Secretary by regulation) that are 
                        inversely proportional to the 
                        respective distances between the point 
                        on the coastline of each Gulf producing 
                        State, as described in section 
                        102(7)(A), that is closest to the 
                        geographic center of the applicable 
                        leased tract and the geographic center 
                        of the leased tract; [and]
                          (ii) the amount made available under 
                        subsection (a)(2)(A) from any lease 
                        entered into within the 2002-2007 
                        planning area shall be allocated to 
                        each Gulf producing State, as described 
                        in section 102(7)(A), in amounts that 
                        are inversely proportional to the 
                        respective distances between the point 
                        on the coastline of each Gulf producing 
                        State, as described in section 
                        102(7)(A), that is closest to the 
                        geographic center of each historical 
                        lease site and the geographic center of 
                        the historical lease site, as 
                        determined by the Secretary[.]; and
                          (iii) the amount made available under 
                        subsection (a)(3)(A) from any lease 
                        entered into within the Eastern 
                        Planning Area, as described in section 
                        102(6)(A)(i), shall be allocated to 
                        each Gulf producing State, as described 
                        in section 102(7), in amounts that are 
                        inversely proportional to the 
                        respective distances between the point 
                        on the coastline of each Gulf producing 
                        State, as described in section 102(7), 
                        that is closest to the geographic 
                        center of each historical lease site 
                        and the geographic center of the 
                        historical lease site, as determined by 
                        the Secretary.
                  (B) Minimum allocation.--The amount allocated 
                to a Gulf producing State [each fiscal year 
                under subparagraph (A)] described in section 
                102(7)(A) each fiscal year under clauses (i) 
                and (ii) of subparagraph (A) shall be at least 
                10 percent of the amounts available under 
                subsection (a)(2)(A).

           *       *       *       *       *       *       *

    (f) Limitations on Amount of Distributed Qualified Outer 
Continental Shelf Revenues.--
          [(1) In general.--Subject to paragraph (2), the total 
        amount of qualified outer Continental Shelf revenues 
        made available under subsection (a)(2) shall not exceed 
        $500,000,000 for each of fiscal years 2016 through 
        2055.]
          (1) In general.--Subject to paragraph (2), the total 
        amount of qualified outer Continental Shelf revenues 
        described in section 102(9)(A)(ii) that are made 
        available under subsection (a)(2)(A) shall not exceed--
                  (A) for fiscal year 2017, $500,000,000;
                  (B) for each of fiscal years 2018 through 
                2025, $699,000,000; and
                  (C) for each of fiscal years 2026 through 
                2055, $999,000,000.

           *       *       *       *       *       *       *


                 THE OUTER CONTINENTAL SHELF LANDS ACT

Act of August 7, 1953, Chapter 345, as amended

           *       *       *       *       *       *       *



SEC. 8. LEASING OF OUTER CONTINENTAL SHELF.--

    (a) * * *

           *       *       *       *       *       *       *

    (b) An oil and gas lease issued pursuant to this section 
shall--
          (1) be for a tract consisting of a compact area not 
        exceeding five thousand seven hundred and sixty acres, 
        as the Secretary may determine, unless the Secretary 
        finds that a larger area is necessary to comprise a 
        reasonable economic production unit;
          (2) be for an initial period of--
                  (A) five years; [or]
                  (B) not to exceed ten years where the 
                Secretary finds that such longer period is 
                necessary to encourage exploration and 
                development in areas because of unusually deep 
                water or other unusually adverse conditions,
        and as long after such initial period as oil or gas is 
        produced from the area in paying quantities, or 
        drilling or well reworking operations as approved by 
        the Secretary are conducted thereon[;]; or
                  (C) in the case of an oil and gas lease in 
                the Beaufort Planning Area or the portion of 
                the Chukchi Planning Area that is beyond 3 
                nautical miles of the seaward boundary of the 
                State of Alaska, 20 years;''.

           *       *       *       *       *       *       *


SEC. 9. DISPOSITION OF REVENUES.--[ALL RENTALS,]

    (a) In General._Except as provided in subsections (b) and 
(c), all rentals, royalties, and other sums paid to the 
Secretary or the Secretary of the Navy under any lease on the 
outer Continental Shelf for the period from June 5, 1950, to 
date, and thereafter shall be deposited in the Treasury of the 
United States and credited to miscellaneous receipts.
    (b) Distribution of Revenue to Alaska.--
          (1) Definitions.--In this subsection:
                  (A) Coastal political subdivision.--The term 
                ``coastal political subdivision'' means a 
                county-equivalent subdivision of the State--
                          (i) all or part of which lies within 
                        the coastal zone of the State (as 
                        defined in section 304 of the Coastal 
                        Zone Management Act of 1972 (16 U.S.C. 
                        1453)); and
                          (ii)(I) 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; or
                          (II)(aa) the closest point of which 
                        is more than 200 nautical miles from 
                        the geographical center of a leased 
                        tract in the Alaska outer Continental 
                        Shelf region; and
                          (bb) 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 revenues 
                        generated from leases subject to 
                        section 8(g).
                  (D) State.--The term `State' means the State 
                of Alaska.
                  (E) Workforce investment board.--The term 
                `workforce investment board' means a State or 
                local workforce investment board established 
                under subtitle B of title I of the Workforce 
                Investment Act of 1998 (29 U.S.C. 2811 et 
                seq.).
          (2) Fiscal years 2016-2026.--For each of fiscal years 
        2016 through 2026, the Secretary shall deposit--
                  (A) 75 percent of qualified revenues in the 
                general fund of the Treasury;
                  (B) 7.5 percent of qualified revenues in a 
                special account in the Treasury, to be 
                distributed by the Secretary to the State;
                  (C) 7.5 percent of qualified revenues in a 
                special account in the Treasury, to be 
                distributed by the Secretary to coastal 
                political subdivisions;
                  (D) 2.5 percent of qualified revenues in a 
                special account in the Treasury, to be used to 
                carry out the North Slope Science Initiative 
                established under section 348(a)(1) of the 
                Energy Policy Act of 2005 (42 U.S.C. 
                15906(a)(1));
                  (E) 2.5 percent of qualified revenues in a 
                special account in the Treasury, to be used by 
                the Secretary to provide grants on a 
                competitive basis to eligible institutions of 
                higher education and workforce investment 
                boards in the State to establish and providing 
                funding for--
                          (i) programs to ensure an adequately 
                        skilled workforce to construct, 
                        operate, or maintain oil or gas 
                        pipelines; or
                          (ii) programs to ensure an adequately 
                        skilled workforce to operate, maintain, 
                        and perform all environmental processes 
                        relating to existing or future oil and 
                        gas infrastructure;
                  (F) 2.5 percent of qualified revenues in a 
                special account in the Treasury to provide 
                financial assistance for--
                          (i) offshore leasing and development 
                        programs in the State; and
                          (ii) the development of rights-of-way 
                        for pipelines to transport oil or gas 
                        produced offshore through land under 
                        the jurisdiction of the Secretary in 
                        the State; and
                  (G) 2.5 percent of qualified revenues in the 
                Tribal Resilience Fund established by section 
                402 of the Offshore Production and Energizing 
                National Security Act of 2015.
          (3) Subsequent Fiscal Years.--For fiscal year 2027 
        and each subsequent fiscal year, the Secretary shall 
        deposit--
                  (A) 50 percent of qualified revenues in 
                general fund of the Treasury;
                  (B) 30 percent of qualified revenues in a 
                special account in the Treasury, to be 
                distributed by the Secretary to the State;
                  (C) 12.5 percent of qualified revenues in the 
                Tribal Resilience Fund established by section 
                402 of the Offshore Production and Energizing 
                National Security Act of 2015; and
                  (D) 7.5 in a special account in the Treasury, 
                to be distributed by the Secretary to coastal 
                political subdivisions.
          (4) Allocation Among Coastal Political 
        Subdivisions.--Of the amount paid by the Secretary to 
        coastal political subdivisions under paragraph (2)(C) 
        or (3)(D)--
                  (A) 90 percent shall be allocated 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 that--
                          (i) is more than 200 nautical miles 
                        from the geographic center of a leased 
                        tract; and
                          (ii) the State of Alaska determines 
                        to be a significant staging area for 
                        oil and gas servicing, supply vessels, 
                        operations, suppliers, or workers.
          (5) Timing.--The amounts required to be deposited 
        under paragraphs (2) and (3) for the applicable fiscal 
        year shall be made available in accordance with those 
        paragraphs during the fiscal year immediately following 
        the applicable fiscal year.
          (6) Adminstration.--Amounts made available under 
        paragraphs (2) and (3) 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.
    (c) Distribution of Revenue to Atlantic States.--
          (1) Definitions.--In this subsection:
                  (A) Atlantic state.--The term `Atlantic 
                State' means a State adjacent to the South 
                Atlantic Planning Area.
                  (B) 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 Atlantic planning 
                        region.
                          (ii) Exclusions.--The term `qualified 
                        revenues' does not include revenues 
                        generated from leases subject to 
                        section 8(g).
          (2) Deposit.--For fiscal year 2017 and each fiscal 
        year thereafter, the Secretary shall deposit--
                  (A) 62.5 percent of any qualified revenues in 
                the general fund of the Treasury, of which--
                          (i) 5 percent shall be allocated to 
                        the Department of Energy for projects 
                        that enhance the safety, security, 
                        resilience, and reliability of energy 
                        supply, research, transmission, 
                        storage, or distribution 
                        infrastructure;
                          (ii) 5 percent shall be allocated to 
                        the Energy Efficiency and Renewable 
                        Energy program at the Department of 
                        Energy; and
                          (iii) 2.5 percent shall be allocated 
                        to high priority deferred maintenance 
                        needs of the National Park Service that 
                        support critical infrastructure and 
                        visitor services; and
                  (B) 37.5 percent of any qualified revenues in 
                a special account in the Treasury from which 
                the Secretary shall disburse amounts to the 
                Atlantic States in accordance with paragraph 
                (3).
          (3) Allocation to states.--
                  (A) In general.--Subject to subparagraphs (B) 
                and (C), effective for fiscal year 2017 and 
                each fiscal year thereafter, the Secretary of 
                the Treasury shall allocate the qualified 
                revenues described in paragraph (2)(B) to each 
                Atlantic State in amounts (based on a formula 
                established by the Secretary, by regulation) 
                that are inversely proportional to the 
                respective distances between--
                          (i) the point on the coastline of 
                        each Atlantic State that is closest to 
                        the geographical center of the 
                        applicable leased tract; and
                          (ii) the geographical center of that 
                        leased tract.
                  (B) Minimum allocation.--The amount allocated 
                to an Atlantic State for each fiscal year under 
                subparagraph (A) shall be not less than 10 
                percent of the amounts available under 
                paragraph (2)(B).
                  (C) State allocation.--Of the amounts 
                received by a State under subparagraph (A), the 
                Atlantic State may use, at the discretion of 
                the Governor of the State--
                          (i) 10 percent--
                                  (I) to enhance State land and 
                                water conservation efforts;
                                  (II) to improve State public 
                                transportation projects;
                                  (III) to establish 
                                alternative, renewable, and 
                                clean energy production and 
                                generation within each State; 
                                and
                                  (IV) to enhance beach 
                                nourishment and costal 
                                dredging; and
                          (ii) 2.5 percent to enhance 
                        geological and geophysical education 
                        for the energy future of the United 
                        States in accordance with section 306 
                        of the Offshore Production and 
                        Energizing National Security Act of 
                        2015.

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SEC. 18. OUTER CONTINENTAL SHELF LEASING PROGRAM.--

    (a) The Secretary, pursuant to procedures set forth in 
subsections (c) and (d) of this section, shall prepare and 
periodically revise, and maintain an oil and gas leasing 
program to implement the policies of this Act. The leasing 
program shall consist of a schedule of proposed lease sales 
indicating, as precisely as possible, the size, timing, and 
location of leasing activitiy which he determines will best 
meet national energy needs for the five-year period following 
its approval or reapproval. Such leasing program shall be 
prepared and maintained in a manner consistent with the 
following principles:

           *       *       *       *       *       *       *

          (2) Timing and location of exploration, development, 
        and production of oil and gas among the oil- and gas-
        bearing physiographic regions of the outer Continental 
        Shelf shall be based on a consideration of--
                  (A) existing information concerning the 
                geographical, geological, and ecological 
                characteristics of such regions;
                  (B) an equitable sharing of developmental 
                benefits and environmental risks among the 
                various regions;
                  (C) the location of such regions with respect 
                to, and the relative needs of, regional and 
                national energy markets;
                  (D) the location of such regions with respect 
                to other uses of the sea and seabed, including 
                fisheries, navigation, existing or proposed 
                sealanes, potential sites of deepwater ports, 
                and other anticipated uses of the resources and 
                space of the outer Continental Shelf;
                  (E) the interest of potential oil and gas 
                producers in the development of oil and gas 
                resources as indicated by exploration or 
                nomination;
                  (F) laws, goals, and policies of affected 
                States which have been specifically identified 
                by the Governors of such States as relevant 
                matters for the Secretary's consideration;
                  (G) the relative environmental sensitivity 
                and marine productivity of different areas of 
                the outer Continental Shelf; and
                  (H) relevant environmental and predictive 
                information for different areas of the outer 
                Continental Shelf.
          (3) The Secretary shall select the timing and 
        location of leasing, to the maximum extent practicable, 
        so as to obtain a proper balance between the potential 
        for environmental damage, the potential for the 
        discovery of oil and gas, and the potential for adverse 
        impact on the coastal zone.
          (4) Leasing activities shall be conducted to assure 
        receipt of fair market value for the lands leased and 
        the rights conveyed by the Federal Government.
          (5)(A) In this paragraph, the term `available 
        unleased acreage' means that portion of the outer 
        Continental Shelf that is not under lease at the time 
        of a proposed lease sale, and that has not otherwise 
        been made unavailable for leasing by law in the Gulf of 
        Mexico.
          (B) In each oil and gas leasing program under this 
        section, the Secretary shall make available for 
        leasing, and conduct lease sales including, the 
        available unleased acreage within each outer 
        Continental Shelf planning area in the Gulf of Mexico 
        considered to have the largest undiscovered, 
        technically recoverable oil and gas resources (on a 
        total btu basis) based on the most recent national 
        geologic assessment of the outer Continental Shelf, 
        with an emphasis on offering the most geologically 
        prospective parts of the planning area.
          (6)(A) The Secretary shall include in each proposed 
        oil and gas leasing program under this section any 
        State subdivision of an outer Continental Shelf 
        planning area in the Gulf of Mexico that the Governor 
        of the State that represents that subdivision requests 
        be made available for leasing.
          (B) The Secretary may not remove a subdivision 
        described in subparagraph (A) from the program until 
        publication of the final program.
          (7)(A) The Secretary shall make available for leasing 
        under each 5-year oil and gas leasing program under 
        this section any outer Continental Shelf planning area 
        in the Gulf of Mexico that--
                  (i) is estimated to contain more than 
                2,500,000,000 barrels of oil; or
                  (ii) is estimated to contain more than 
                7,500,000,000,000 cubic feet of natural gas.
          (B) To determine which planning areas meet the 
        criteria described in subparagraph (A), the Secretary 
        shall use the document entitled `Bureau of Ocean Energy 
        Management Assessment of Undiscovered Technically 
        Recoverable Oil and Gas Resources of the Nation's Outer 
        Continental Shelf, 2011'.

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    (i) Inclusion of Certain Lease Sales.--Effective starting 
with the leasing program for fiscal years 2023 through 2027, 
the Secretary shall include in any leasing program prepared in 
accordance with this section provisions for the conduct of at 
least 3 lease sales in each of the Beaufort Planning Area and 
the Chukchi Planning Area, and annual lease sales in the 
Nearshore Beaufort Sea Planning Area and the Cook Inlet 
Planning Area during the term of the leasing program.

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