[Senate Report 117-200]
[From the U.S. Government Publishing Office]


                                                     Calendar No. 551
117th Congress      }                           {         Report
                                 SENATE
 2d Session         }                           {         117-200

======================================================================
 
         REINVESTING IN SHORELINE ECONOMIES AND ECOSYSTEMS ACT

                                _______
                                

               November 17, 2022.--Ordered to be printed

                                _______
                                

         Mr. Manchin, from the Committee on Energy and Natural
                   Resources, submitted the following

                              R E P O R T

                         [To accompany S. 2130]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 2130), to modify the disposition of 
certain outer Continental Shelf revenues and to open Federal 
financial sharing to heighten opportunities for renewable 
energy, and for other purposes, having considered the same, 
reports favorably thereon with an amendment in the nature of a 
substitute and recommends that the bill, as amended, do pass.

                               Amendment

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Reinvesting in Shoreline Economies 
and Ecosystems Act of 2022'' or the ``RISEE Act of 2022''.

SEC. 2. 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) by striking paragraph (7) and inserting the following:
          ``(7) Tidal shoreline.--The term `tidal shoreline' means the 
        length of tidal shoreline or Great Lake shoreline based on the 
        most recently available data from or accepted by the Office of 
        
39-010
        
        Coast Survey of the National Oceanic and Atmospheric 
        Administration.''.
    (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 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 subparagraph 
                (C)(ii)(II) of section 8(p)(2) of the Outer Continental 
                Shelf Lands Act (43 U.S.C. 1337(p)(2)); and
                  ``(B) are appropriated or otherwise made available 
                for the Fund.'';
          (3) by striking subsection (d) and inserting the following:
    ``(d) Expenditure.--
          ``(1) $34,000,000 or less.--If $34,000,000 or less is 
        deposited in, or appropriated or otherwise made available for, 
        the Fund for a fiscal year, in that fiscal year--
                  ``(A) not more than 5 percent of such amounts may be 
                used by the Administrator and the Foundation for 
                administrative expenses to carry out this title; and
                  ``(B) any remaining amounts shall be used only for 
                the award of grants under section 906(c).
          ``(2) More than $34,000,000.--If more than $34,000,000 is 
        deposited in, or appropriated or otherwise made available for, 
        the Fund for a fiscal year, in that fiscal year--
          ``(A) not more than 5 percent of such amounts may be used by 
        the Administrator and the Foundation for administrative 
        expenses to carry out this title;
          ``(B) not less than $34,000,000 shall be used for the award 
        of grants under section 906(c); and
          ``(C) of any amounts exceeding $34,000,000--
                          ``(i) not more than 75 percent may be used 
                        for the award of grants under section 906(b); 
                        and
                          ``(ii) not more than 20 percent may be used 
                        for the award of grants under section 906(c).
          ``(3) Division of amounts for administrative expenses.--The 
        amounts referred to in paragraphs (1)(A) and (2)(A) shall be 
        divided between the Administrator and the Foundation pursuant 
        to an agreement reached and documented by both the 
        Administrator and the Foundation.''; and
          (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 under section 906(b) and the Foundation, in consultation 
with the Administrator, under section 906(c) to support programs and 
activities intended to improve understanding and use of ocean and 
coastal resources and coastal infrastructure.
    ``(b) Programs and Activities.--The programs and activities 
referred to in subsection (a) may include scientific research related 
to changing environmental conditions, ocean observing projects, efforts 
to enhance resiliency of infrastructure and communities (including 
project planning and design), habitat protection and restoration, 
monitoring and reducing damage to natural resources and marine life 
(including birds, marine mammals, and fish), and efforts to support 
sustainable seafood production 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.
    ``(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 in 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'';
                  (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; 
                and
                  (H) in paragraph (3), as so redesignated, by 
                redesignating clauses (i) and (ii) as subparagraphs (A) 
                and (B), respectively, and moving such subparagraphs, 
                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) 70 percent of available amounts shall be 
                allocated equally among coastal States.
                  ``(B) 15 percent of available amounts shall be 
                allocated on the basis of the ratio of tidal shoreline 
                in a coastal State to the tidal shoreline of all 
                coastal States.
                  ``(C) 15 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) Optional matching funds.--Each entity seeking to 
        receive a grant under this subsection is encouraged, but not 
        required, to demonstrate that funds of any amount are available 
        from non-Federal sources to supplement the amount of the 
        grant.''; and
          (3) in subsection (c)--
                  (A) in paragraph (1), by striking ``The Administrator 
                and the Foundation'' and inserting ``The Foundation, in 
                consultation with the Administrator,''; and
                  (B) by adding at the end the following:
          ``(3) 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) 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 lease 
                                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 a lease tract lying wholly or 
                                partly within the area of the 
                                applicable covered offshore wind 
                                project.
                          ``(ii) Requirement.--Of the operating fees, 
                        rentals, bonuses, royalties, and other payments 
                        that are paid to the Secretary under 
                        subparagraph (A) from covered offshore wind 
                        projects carried out under a lease entered into 
                        on or after January 1, 2022--
                                  ``(I) 50 percent shall be deposited 
                                in the Treasury and credited to 
                                miscellaneous receipts;
                                  ``(II) 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
                                  ``(III) 37.5 percent shall be 
                                deposited in a special account in the 
                                Treasury, from which the Secretary 
                                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 Reinvesting in Shoreline Economies 
                                and Ecosystems Act of 2022) 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.
                          ``(iii) Timing.--The amounts required to be 
                        deposited under subclause (III) of clause (ii) 
                        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)(III) 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, including through 
                                        fisheries science and research.
                                          ``(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, on the 
                                        condition that the projects are 
                                        not primarily for entertainment 
                                        purposes.
                                          ``(ee) Planning assistance 
                                        and the administrative costs of 
                                        complying with this section.
                                  ``(II) Limitation.--Of the amounts 
                                received by a State under clause 
                                (ii)(III), 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) 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 for fiscal year 
                        2023 and thereafter.--
                                  ``(I) In general.--Beginning with 
                                fiscal year 2023, not later than 180 
                                days after the end of each fiscal year, 
                                each eligible State that receives 
                                amounts under clause (ii)(III) 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 an eligible 
                                State that receives amounts under 
                                clause (ii)(III) 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)(III) for the succeeding 
                                fiscal year shall be withheld for the 
                                succeeding fiscal year until the date 
                                on which the report is submitted.
                                  ``(IV) Contents of report.--Each 
                                report required under subclause (I) 
                                shall include, for each project funded 
                                in whole or in part using amounts 
                                received under clause (ii)(III)--
                                          ``(aa) the name and 
                                        description of the project;
                                          ``(bb) the amount received 
                                        under clause (ii)(III) that is 
                                        allocated to the project; and
                                          ``(cc) a description of how 
                                        each project is consistent with 
                                        the authorized uses under 
                                        clause (iv)(I).
                                  ``(V) Clarification.--Nothing in this 
                                clause--
                                          ``(aa) requires or provides 
                                        authority for the Secretary to 
                                        delay, modify, or withhold 
                                        payment under clause (ii)(III), 
                                        other than for failure to 
                                        submit a report as required 
                                        under this clause;
                                          ``(bb) requires or provides 
                                        authority for the Secretary to 
                                        review or approve uses of funds 
                                        reported under this clause;
                                          ``(cc) requires or provides 
                                        authority for the Secretary to 
                                        approve individual projects 
                                        that receive funds reported 
                                        under this clause;
                                          ``(dd) requires an eligible 
                                        State to obtain the approval 
                                        of, or review by, the Secretary 
                                        prior to spending funds 
                                        disbursed under clause 
                                        (ii)(III);
                                          ``(ee) requires or provides 
                                        authority for the Secretary to 
                                        issue guidance relating to the 
                                        contents of, or to determine 
                                        the completeness of, the report 
                                        required under this clause;
                                          ``(ff) requires an eligible 
                                        State to obligate or expend 
                                        funds by a certain date; or
                                          ``(gg) requires or provides 
                                        authority for the Secretary to 
                                        request an eligible State to 
                                        return unobligated funds.''.

SEC. 3. GULF OF MEXICO OUTER CONTINENTAL SHELF REVENUES.

    (a) Authorized Uses.--Section 105(d)(1)(D) of the Gulf of Mexico 
Energy Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109-432) 
is amended by inserting ``, on the condition that the projects are not 
primarily for entertainment purposes'' after ``infrastructure 
projects''.
    (b) Administration.--Section 105(e) of the Gulf of Mexico Energy 
Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109-432) is 
amended, in the matter preceding paragraph (1), by striking ``Amounts'' 
and inserting ``Subject to subsection (g)(3), amounts''.
    (c) Elimination of Limitation on Amount of Distributed Qualified 
Outer Continental Shelf Revenues.--Section 105(f) of the Gulf of Mexico 
Energy Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109-432) 
is amended--
          (1) in paragraph (1), by striking subparagraphs (A) through 
        (C) and inserting the following:
                  ``(A) $500,000,000 for each of fiscal years 2016 
                through 2019; and
                  ``(B) $650,000,000 for each of fiscal years 2020 
                through 2022.''; and
          (2) in paragraph (2), by striking ``2055'' and inserting 
        ``2022''.
    (d) Reporting Requirements.--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 adding at the end the following:
    ``(g) Reporting Requirement for Fiscal Year 2023 and Thereafter.--
          ``(1) In general.--Beginning with fiscal year 2023, not later 
        than 180 days after the end of each fiscal year, each Gulf 
        producing State that receives amounts under subsection 
        (a)(2)(A) for the applicable fiscal year shall submit to the 
        Secretary a report that describes the use of the amounts by the 
        Gulf producing State during the period covered by the report.
          ``(2) Public availability.--On receipt of a report under 
        paragraph (1), the Secretary shall make the report available to 
        the public on the website of the Department of the Interior.
          ``(3) Limitation.--If a Gulf producing State that receives 
        amounts under subsection (a)(2)(A) for the applicable fiscal 
        year fails to submit the report required under paragraph (1) by 
        the deadline specified in that paragraph, any amounts that 
        would otherwise be provided to the Gulf producing State under 
        subsection (a)(2)(A) for the succeeding fiscal year shall be 
        withheld for the succeeding fiscal year until the date on which 
        the report is submitted.
          ``(4) Contents of report.--Each report required under 
        paragraph (1) shall include, for each project funded in whole 
        or in part using amounts received under subsection (a)(2)(A)--
                  ``(A) the name and description of the project;
                  ``(B) the amount received under subsection (a)(2)(A) 
                that is allocated to the project; and
                  ``(C) a description of how each project is consistent 
                with the authorized uses under subsection (d)(1).
          ``(5) Clarification.--Nothing in this clause--
                  ``(A) requires or provides authority for the 
                Secretary to delay, modify, or withhold payment under 
                subsection (a)(2)(A), other than for failure to submit 
                a report as required under this subsection;
                  ``(B) requires or provides authority for the 
                Secretary to review or approve uses of funds reported 
                under this subsection;
                  ``(C) requires or provides authority for the 
                Secretary to approve individual projects that receive 
                funds reported under this subsection;
                  ``(D) requires a Gulf producing State to obtain the 
                approval of, or review by, the Secretary prior to 
                spending funds disbursed under subsection (a)(2)(A);
                  ``(E) requires or provides authority for the 
                Secretary to issue guidance relating to the contents 
                of, or to determine the completeness of, the report 
                required under this subsection;
                  ``(F) requires a Gulf producing State to obligate or 
                expend funds by a certain date; or
                  ``(G) requires or provides authority for the 
                Secretary to request a Gulf producing State to return 
                unobligated funds.''.

SEC. 4. ELIMINATION OF ADMINISTRATIVE FEE UNDER THE MINERAL LEASING 
                    ACT.

    (a) In General.--Section 35 of the Mineral Leasing Act (30 U.S.C. 
191) is amended--
          (1) in subsection (a), in the first sentence, by striking 
        ``and, subject to the provisions of subsection (b),'';
          (2) by striking subsection (b);
          (3) by redesignating subsections (c) and (d) as subsections 
        (b) and (c), respectively;
          (4) in paragraph (3)(B)(ii) of subsection (b) (as so 
        redesignated), by striking ``subsection (d)'' and inserting 
        ``subsection (c)''; and
          (5) in paragraph (3)(A)(ii) of subsection (c) (as so 
        redesignated), by striking ``subsection (c)(2)(B)'' and 
        inserting ``subsection (b)(2)(B)''.
    (b) Conforming Amendments.--
          (1) Section 6(a) of the Mineral Leasing Act for Acquired 
        Lands (30 U.S.C. 355(a)) is amended--
                  (A) in the first sentence, by striking ``Subject to 
                the provisions of section 35(b) of the Mineral Leasing 
                Act (30 U.S.C. 191(b)), all'' and inserting ``All''; 
                and
                  (B) in the second sentence, by striking ``of the Act 
                of February 25, 1920 (41 Stat. 450; 30 U.S.C. 191),'' 
                and inserting ``of the Mineral Leasing Act (30 U.S.C. 
                191)''.
          (2) Section 20(a) of the Geothermal Steam Act of 1970 (30 
        U.S.C. 1019(a)) is amended, in the second sentence of the 
        matter preceding paragraph (1), by striking ``the provisions of 
        subsection (b) of section 35 of the Mineral Leasing Act (30 
        U.S.C. 191(b)) and section 5(a)(2) of this Act'' and inserting 
        ``section 5(a)(2)''.
          (3) Section 205(f) of the Federal Oil and Gas Royalty 
        Management Act of 1982 (30 U.S.C. 1735(f)) is amended--
                  (A) in the first sentence, by striking ``this 
                Section'' and inserting ``this section''; and
                  (B) by striking the fourth, fifth, and sixth 
                sentences.

                                Purpose

    The purpose of S. 2130, as ordered reported, is to modify 
the disposition of certain Outer Continental Shelf revenues by 
providing for revenue sharing for offshore wind energy 
development, to modify existing revenue sharing provisions 
under the Gulf of Mexico Energy Security Act for Federal oil 
and gas revenue from the Outer Continental Shelf in the Gulf of 
Mexico, and to amend section 35 of the Mineral Leasing Act to 
remove the 2 percent payment reduction for revenue sharing 
payments to states.

                      Summary of Major Provisions

    S. 2130, as ordered reported, contains two separate 
provisions expanding revenue sharing for offshore energy with 
Coastal States. With respect to revenue sharing for the Gulf 
Coast States (Texas, Louisiana, Mississippi, and Alabama), the 
bill maintains existing revenue sharing percentages but removes 
the $500 million annual cap on total disbursements to the 
States and LWCF. The bill also narrows the allowable uses for 
funds to strictly infrastructure related projects, and requires 
States to report their uses of state allocated GOMESA funding.
    With respect to offshore wind development, where 100 
percent of the revenue is currently deposited into the U.S. 
Treasury, the bill applies a similar revenue sharing formula to 
that established under GOMESA. Under the bill, 50 percent of 
offshore wind revenue would be deposited into the U.S. 
Treasury, 37.5 percent would be allocated to eligible States, 
and 12.5 percent would be deposited into the National Oceans 
and Coastal Security Fund. The eligible uses of State funds 
will also match GOMESA's eligible uses, and the State must 
submit a report detailing the projects and associated use of 
funds.
    Additionally, as ordered reported, the bill would repeal 
the Mineral Leasing Act's deduction for administrative costs 
with regard to revenue sharing payments to states under that 
Act. Under current law, payments to states under section 35 of 
the Mineral Leasing Act are reduced by 2 percent and the amount 
of the reduced payment is deposited into the Treasury as 
miscellaneous receipts.

                          Background and Need

    The Department of the Interior (DOI), through the Bureau of 
Ocean Energy Management (BOEM), manages energy development of 
the Outer Continental Shelf (OCS). Development in the OCS has 
been a significant source of domestic oil and natural gas 
production and federal revenues.
    The Outer Continental Shelf Lands Act (OCSLA), Public Law 
95-372, governs federal mineral exploration and development on 
the OCS, generally defined by the Submerged Lands Act (SLA) as 
the submerged lands seaward of the state-managed submerged 
lands. The Energy Policy Act of 2005, Public Law 109-58, 
amended the OCSLA to authorize the Secretary of the Interior to 
issue leases, easements, and rights-of-way to allow for 
renewable energy development on the OCS. As amended, OCSLA now 
governs both renewable and fossil energy development in federal 
waters. BOEM manages both the renewable leasing programs and 
the offshore oil and gas leasing programs.
    Leases issued under these authorities for energy 
development generate significant revenue, primarily from oil 
and gas receipts, although wind receipts are expected to 
increase as additional leases are issued and move toward 
operation. The revenues generated from energy and mineral 
leasing are currently distributed in a variety of ways, often 
with a revenue sharing component, whereby federal revenues are 
disbursed directly to states or localities. Onshore leasable 
mineral development, including coal and oil and gas, on federal 
lands generally results in 48 percent of the revenues produced 
being shared with the State they are located within (50 percent 
less a 2 percent deduction for administrative and other costs), 
to be used by the State for general public purposes.
    Providing for new forms of revenue sharing, or modifying 
the conditions of existing revenue sharing programs, has been a 
frequent topic of legislation before this Committee. With 
offshore oil and gas revenue sharing expected to be limited by 
statutory caps in the near future and the increasing demand for 
offshore wind energy development, there has been significant 
interest in revisiting the statutory frameworks for the 
disbursement of OCS revenues.
    Most offshore revenue is retained by the U.S. Treasury, 
although current law directs some revenue to specified funds as 
well as requiring revenue sharing with states and localities. 
Under the Land and Water Conservation Fund Act, up to $900 
million of OCS revenues are credited each year to the Land and 
Water Conservation Fund (LWCF). Pursuant to the enactment of 
the Great American Outdoors Act in 2020, OCS revenues deposited 
into the LWCF are available for expenditure without further 
appropriation. Additionally, $150 million of OCS revenues are 
credited annually to the Historic Preservation Fund (HPF), 
although expenditures from the HPF remain subject to 
appropriation.
    A portion of Federal offshore oil and gas revenue shared 
with coastal states is based on the proximity of the lease to 
the state's coast. In accordance with 8(g) of OCSLA, for leases 
lying within three nautical miles of the boundary of state 
waters (as defined by the SLA), 27 percent of revenue is 
disbursed to states and 73 percent is retained by the U.S. 
Treasury. This is often referred to as the 8(g) area.
    Since the 2006 passage of the Gulf of Mexico Energy 
Security Act (GOMESA), revenue within designated areas of the 
Gulf of Mexico has been shared with the four coastal states 
(Louisiana, Texas, Alabama, and Mississippi). Under current 
law, 37.5 percent of revenue from covered leases entered after 
2006 is disbursed to the Gulf States and 12.5 percent of 
revenue is deposited in the LWCF but is only available for 
state purposes. The combined revenue distributed under these 
provisions is limited to a combined cap of $500 million per 
year, or $375 million per year to the Gulf States and $125 
million per year in the LWCF. The remaining 50 percent of 
revenue is retained by the U.S. Treasury. Revenue that would 
otherwise be shared with the states or deposited in the LWCF 
but is limited by the $500 million cap reverts to the Treasury. 
Under current law, other coastal states, such as Alaska and 
California, do not receive similar revenue sharing 
disbursements.
    OCSLA provides the authority to issue leases, easements, 
and rights-of-way for energy-related and marine-related 
purposes, in addition to oil and gas leasing. To date, this 
authority has primarily been utilized for the issuance of wind 
energy leases.
    Revenue for leases issued under this broad energy-related 
and marine-related authority is generally deposited into the 
Treasury as miscellaneous receipts, with one exception for the 
8(g) area: as with oil and gas, for energy-related leases lying 
within 3 nautical miles of the state waters boundary, 27 
percent of revenue is disbursed to states and 73 percent is 
retained by the U.S. Treasury. However, there are currently no 
offshore wind leases in the 8(g) area.

                          Legislative History

    S. 2130 was introduced by Senators Whitehouse, Cassidy, 
Coons, Hyde-Smith, Kaine, King, Schatz, Shaheen, Van Hollen, 
and Wicker on June 17, 2021. Senators Heinrich, Blumenthal, 
Kennedy, Gillibrand, Hickenlooper, Feinstein, Collins, Warner, 
Cardin, Murphy, and Daines have also cosponsored the bill. The 
Subcommittee on Public Lands, Forests, and Mining held a 
hearing on S. 2130 on October 19, 2021. Representatives 
Fletcher, Weber, Luria, and Rice have sponsored companion 
legislation in the House of Representatives, H.R. 9049.
    In the 116th Congress, two similar bills were considered: 
S. 3485, introduced by Senator Whitehouse, regarding offshore 
wind revenue sharing; and S. 2418, introduced by Senator 
Cassidy, regarding offshore oil and gas revenue sharing. The 
Subcommittee on Public Lands, Forests, and Mining held a 
hearing on S. 3485 on September 16, 2020 and the full Committee 
held a hearing on S. 2418 on November 7, 2019. S. 2418 was 
ordered reported on February 25, 2020.

                        Committee Recommendation

    The Senate Committee on Energy and Natural Resources, in an 
open business session on July 21, 2022, by a voice vote of a 
quorum present, recommends that the Senate pass S. 2130, if 
amended as described herein.

                          Committee Amendment

    The Committee adopted an amendment in the nature of a 
substitute during its consideration of S. 2130. The amendment 
makes several changes to the percentages of the revenues shared 
with the four Gulf producing States and the National Oceans and 
Coastal Security Fund compared with the bill as introduced. 
Specifically, the amendment reduces the percentage of the oil 
and gas revenues shared with the four Gulf producing States 
from 50 percent in the bill as introduced to 37.5 percent (as 
is now the case under existing law). It makes comparable 
reductions in the percentage of wind revenues shared with 
coastal states, reducing them from 50 percent in the bill as 
introduced to 37.5 percent.
    The committee amendment also eliminates the proposal in the 
bill as introduced to share 12.5 percent of oil and gas 
revenues with the National Oceans and Coastal Security Fund, 
and it decreases the percentage of wind revenues shared with 
the National Oceans and Coastal Security Fund from 37.5 percent 
in the bill as introduced to 12.5 percent. It increases the 
percentage of oil and gas revenues retained by the U.S. 
Treasury from 25 percent in the bill as introduced to 50 
percent (as is now the case under existing law) and increases 
the percentage of wind revenues retained by the U.S. Treasury 
from 12.5 percent to 50 percent.
    The committee amendment also eliminates the exemptions from 
budget sequestration under section 255 of the Balanced Budget 
and Emergency Deficit Control Act of 1985 provided in section 
2(h) and 3(d) of the bill as introduced and the provisions of 
section 3(a) of the bill expanding the scope of the oil and gas 
revenues shared with the Gulf producing States. It also adds a 
new requirement that Gulf producing States annually report how 
they use amounts received under GOMESA.
    Finally, the committee amendment adds a new section 4, 
which eliminates the administrative fee on States imposed by 
section 35(b) of the Mineral Leasing Act and makes conforming 
amendments to the Mineral Leasing Act for Acquired Lands, the 
Geothermal Steam Act of 1970, and the Federal Oil and Gas 
Royalty Management Act.
    The amendment is described further in the section-by-
section analysis below.

                      Section-by-Section Analysis


Section 1. Short title

    Section 1 provides the short title for the bill, the 
``Reinvesting in Shoreline Economies and Ecosystems Act of 
2022''.

Sec. 2. National Oceans and Coastal Security Fund; Parity in Offshore 
        Wind Revenue Sharing

    Subsection (a) amends definitions in section 902 of the 
National Oceans and Coastal Security Act (16 U.S.C. 7501).
    Subsection (b) amends section 904 of the National Oceans 
and Coastal Security Act to allow for funds to be deposited in 
the National Oceans and Coastal Security Fund (the Fund) 
through the revenue sharing provisions of subsection (g). This 
subsection also amends the provisions governing the expenditure 
and allocation of the Fund, including raising the maximum 
percentage permitted to be used for administrative expenses to 
5 percent from 2 percent.
    Subsection (c) amends section 905 of the National Oceans 
and Coastal Security Act to modify the eligible uses of the 
Fund and to provide for the Administrator of the National 
Oceanic and Atmospheric Administration (Administrator) to 
allocate the coastal grants to states under section 906(b) 
instead of by the National Fish and Wildlife Foundation 
(Foundation), as is done under current law. Additionally, this 
subsection provides for the nationwide grants for oceans, 
coasts, and Great Lakes under section 906(c) to be allocated by 
the Foundation, in consultation with the Administrator, instead 
of solely by the Foundation.
    Subsection (d) amends section 906 of the National Oceans 
and Coastal Security Act governing the grants to be provided 
through the Fund and the administration of those grants. 
Paragraph (d)(1) amends section 906(a) to provide that States, 
local governments, Indian tribes, regional and interstate 
collaborative, non-governmental organizations, public-private 
partnerships, and academic institutions are eligible entities 
for the nationwide grants under section 906(c), in addition to 
making technical and conforming edits. Paragraph (d)(2) amends 
section 906(b), which governs grants to coastal States from the 
Fund. As amended, the Administrator shall award grants to 
states as follows: 70 percent is to be allocated equally among 
coastal states; 15 percent is to be allocated based on the 
ratio of tidal shoreline in a coastal state to the tidal 
shoreline of all coastal states; and 15 percent is to be 
allocated based on the ratio of population of the coastal 
counties of a coastal state to the average population of all 
coastal counties. Not more than 5 percent may be allocated to 
any single coastal state and any entity seeking a grant is 
encouraged, but not required, to demonstrate capability of a 
non-Federal match to supplement the grant. Paragraph d(3) 
amends section 906(c) to provide that the Foundation, in 
consultation with the Administrator, may award national grants 
(in lieu of jointly, under current law) and provides that 
national grants shall not count toward the limitations of 
funding to coastal states under section 906(b).
    Subsection (e) amends section 907(a) of the National Oceans 
and Coastal Security Act to make a technical correction to the 
annual reporting requirement and to provide that the annual 
report on the Fund shall be submitted by the Administrator and 
the Foundation.
    Subsection (f) repeals section 908 of the National Oceans 
and Coastal Security Act, which authorized appropriations for 
the Fund for 2017, 2018, and 2019.
    Subsection (g) amends section 8(p)(2) of the Outer 
Continental Shelf Lands Act to provide for the allocation of 
revenue from covered offshore wind generation. Of the operating 
fees, rentals, bonuses, royalties, and other payments paid to 
the Secretary of the Interior from covered offshore wind 
projects carried out under a lease entered into on or after 
January 1, 2022, 50 percent shall be deposited into the U.S. 
Treasury, 37.5 percent shall be disbursed to eligible States, 
and 12.5 percent shall be deposited into the National Oceans 
and Coastal Security Fund.
    This subsection also establishes the authorized uses for 
the covered offshore wind revenue that is distributed to the 
States. These authorized uses included: coastal protection and 
restoration activities, mitigating damage to fish, wildlife, 
and natural resources, implementing a federally approved 
marine, coastal, or conservation comprehensive management plan, 
or onshore infrastructure projects to mitigate the impact of 
outer Continental Shelf activities. Not more than 3 percent of 
funds disbursed to eligible states may be used for 
administrative purposes and the amounts will be made available 
without further appropriation and remain available until 
expended.
    Finally, subsection (g) also requires States to submit a 
report an annual report that describes each project funded, in 
whole or in part, using amounts received under this section, 
The report is required to be submitted to the Secretary of the 
Interior within 180 days of the end of each fiscal year, 
starting with fiscal year 2023. If the report is not submitted 
by the deadline, the Secretary shall withhold the succeeding 
fiscal year disbursement until the report is submitted. The 
Secretary shall make the report publicly available on the 
website of the Department of the Interior. Subsection (g) also 
provides that the Secretary does not have the authority to 
withhold payment for any other reason other than failure to 
submit the report, to review or approve uses of funds, approve 
individual projects, issue guidance relating to the contents or 
completeness of the report, or require a State to expend the 
funds by a certain date or return unobligated funds.

Sec. 3. Gulf of Mexico Outer Continental Shelf revenues

    Subsection (a) amends section 105(d)(1)(D) of the Gulf of 
Mexico Energy Security Act of 2006 to clarify that of the 
eligible uses of the funding distributed to States, 
infrastructure projects to mitigate the impact of outer 
Continental Shelf activities are only eligible on the condition 
that the projects are not primarily for entertainment purposes.
    Subsection (b) provides for a conforming edit to section 
105(e) of the Gulf of Mexico Energy Security Act of 2006, to 
conform to the reporting provision in subsection (d) of this 
bill.
    Subsection (c) amends section 105(f) of the Gulf of Mexico 
Energy Security Act of 2006 to remove, starting in 2023, the 
$500,000,000 limitation on the amount of revenue that is 
disbursed pursuant to the Gulf of Mexico Energy Security Act of 
2006.
    Subsection (d) amends section 105 of the Gulf of Mexico 
Energy Security Act of 2006 to require each Gulf producing 
State to annually submit a report describing the use of amounts 
received pursuant to section 105. The report is required to be 
submitted to the Secretary of the Interior within 180 days of 
the end of each fiscal year, starting with fiscal year 2023. If 
the report is not submitted by the deadline, the Secretary 
shall withhold the succeeding fiscal year disbursement until 
the report is submitted. The Secretary shall make the report 
publicly available on the website of the Department of the 
Interior.
    Subsection (d) also provides that the Secretary does not 
have the authority to withhold payment for any other reason 
other than failure to submit the report, to review or approve 
uses of funds, approve individual projects, issue guidance 
relating to the contents or completeness of the report, or 
require a State to expend the funds by a certain date or return 
unobligated funds.

Sec. 4. Elimination of administrative fee under the Mineral Leasing Act

    Subsection (a) amends section 35 of the Mineral Leasing Act 
to strike the provision that provides for a 2 percent reduction 
in payments to the States under the revenue sharing provisions 
of the Mineral Leasing Act.
    Subsection (b) makes conforming amendments to the Mineral 
Leasing Act for Acquired Lands, the Geothermal Steam Act of 
1970, and the Federal Oil and Gas Royalty Management Act to 
conform to the elimination of the 2 percent payment reduction 
in subsection (a).

                   Cost and Budgetary Considerations

    The following estimate of costs of this measure has been 
provided by the Congressional Budget Office.

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    The bill would:
           Raise the statutory cap on direct spending 
        of offsetting receipts collected in 2022 from certain 
        oil and gas leases on the Outer Continental Shelf (OCS) 
        and remove those caps starting in 2023
           Authorize offsetting receipts from certain 
        OCS wind leases to be spent, without further 
        appropriation, for purposes outlined in the bill
           Convey an additional 1 percent of proceeds 
        from onshore oil and gas leases to states without 
        further appropriation
           Amend two grant programs authorized under 
        the National Oceans and Coastal Security Act
    Estimated budgetary effects would mainly stem from:
           Increasing direct spending of offsetting 
        receipts from OCS and onshore oil and gas leases, and 
        from OCS wind leases
    Areas of significant uncertainty include:
           Predicting the amount of oil, gas, and 
        electricity produced from leases that would be affected 
        by the bill
           Predicting the bill's effects on the amounts 
        companies would pay to acquire new wind and oil and gas 
        leases
           Predicting future prices of oil, gas, and 
        electricity
           Determining whether amendments made to 
        funding for the National Fish and Wildlife Foundation--
        a federally established nonprofit corporation--would 
        make activities of the foundation federal in nature
    Bill summary: S. 2130 would increase spending related to 
certain federal leases for energy resources on the Outer 
Continental Shelf (OCS) and in other areas. Specifically, the 
bill would:
           Raise the statutory cap for spending 
        receipts from OCS oil and gas leases collected in 2022 
        from $500 million to $650 million and eliminate the cap 
        in 2023. By eliminating that cap, 50 percent of 
        receipts would be available to be spent without further 
        appropriation; 37.5 percent of those receipts would be 
        allocated to states and 12.5 percent allocated for 
        activities funded through the Land and Water 
        Conservation Fund (LWCF).
           Make available 37.5 percent of offsetting 
        receipts from OCS wind leases to make payments to 
        certain coastal states and 12.5 percent for grants and 
        other activities authorized by the National Oceans and 
        Coastal Security Act.
           Increase the share of future proceeds paid 
        to states from 49 percent to 50 percent for onshore 
        mineral leases under the Mineral Leasing Act.
    S. 2130 also would change how certain research and planning 
grants for coastal protection and restoration projects 
authorized by the National Oceans and Coastal Security Act are 
awarded. Under current law, all such grants are awarded 
competitively to coastal states and private entities; S. 2130 
would require a share of the grant funding be awarded to 
coastal states by a formula established in the bill.
    Estimated Federal Cost: The estimated budgetary effect of 
S. 2130 is shown in Table 1. The costs of the legislation fall 
within budget functions 300 (natural resources and environment) 
and 950 (undistributed offsetting receipts).
    Basis of estimate: For this estimate, CBO assumes that the 
legislation will be enacted by the end of 2022; estimated 
outlays are based on spending patterns for similar programs. 
The estimates are based on the economic and technical 
assumptions underlying CBO's May 2022 baseline projections, as 
updated to reflect the effects of Public Law 117-169, and the 
Bureau of Ocean Energy Management's draft plan for oil and gas 
leasing on the OCS.\1\
---------------------------------------------------------------------------
    \1\See Bureau of Ocean Energy Management, 2023-2028 National Outer 
Continental Shelf Oil and Gas Leasing: Proposed Program (July 2022), 
https://tinyurl.com/5y8vcust.
---------------------------------------------------------------------------
    In total, CBO estimates that enacting S. 2130 would 
increase direct spending by $11.6 billion over the 2023-2032 
period, most of it stemming from provisions that would allow 
some of the receipts collected under current law from the OCS 
to be spent without further appropriation. That estimated 
spending is net of the effects of sequestration procedures.

                                                    TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF S. 2130
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    By fiscal year, millions of dollars--
                                                   -----------------------------------------------------------------------------------------------------
                                                     2023    2024    2025    2026    2027    2028    2029    2030    2031    2032   2023-2027  2023-2032
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              Increases in Direct Spending
 
Spending of OCS Oil and Gas Receipts:
    Estimated Budget Authority....................     110     400     395     465     585     715     855   1,020   1,185   1,400     1,955      7,130
    Estimated Outlays.............................      90     330     350     430     545     665     800     960   1,120   1,335     1,745      6,625
Spending of OCS Wind Receipts:
    Estimated Budget Authority....................   2,215     495     495     190     165     165     165     190     190     225     3,560      4,495
    Estimated Outlays.............................   2,215     495     495     190     165     165     165     190     190     225     3,560      4,495
Spending of Onshore Mineral Receipts:
    Estimated Budget Authority....................      50      45      45      45      45      50      55      55      60      65       230        515
    Estimated Outlays.............................      50      45      45      45      45      50      55      55      60      65       230        515
    Total:
        Estimated Budget Authority................   2,375     940     935     700     795     930   1,075   1,265   1,435   1,690     5,745     12,140
        Estimated Outlays.........................   2,355     870     890     665     755     880   1,020   1,205   1,370   1,625     5,535     11,635
--------------------------------------------------------------------------------------------------------------------------------------------------------
CBO estimates the administrative activities authorized under S. 2130 would cost $1 million over the 2023-2027 period.
OCS = Outer Continental Shelf.

    Direct spending: Federally owned energy resources are 
developed under a leasing system that requires companies to pay 
bonus bids when leases are issued; annual rent on nonproducing 
leases; and royalties or fees on the value of any oil, gas, or 
electricity produced. The payments are recorded in the budget 
as offsetting receipts, which are treated in the budget as 
reductions in direct spending.
    Subject to certain conditions, current law allows some 
receipts from federal on- and offshore oil and gas leases to be 
spent without subsequent appropriation. Under the Mineral 
Leasing Act, for example, states receive 49 percent of all 
royalties, rents, and bonus bids from onshore mineral 
resources. In addition, through 2055 the Gulf of Mexico Energy 
Security Act of 2006 (GOMESA) allows $500 million from oil and 
gas receipts from OCS leases issued after 2006 to be used to 
make payments to states and to be deposited into the LWCF, 
which can spend those funds without further appropriation. 
After 2055, 50 percent of eligible receipts would be available 
for those purposes.
    Under GOMESA, payments are made the year after receipts are 
collected. Thus, the estimated cost over the 2023-2032 period 
of enacting provisions that would change existing spending 
formulas depends on the amount of royalties, rents, and bonus 
payments collected over the 2022-2031 period. For this 
estimate, CBO assumes that payments authorized to be spent from 
receipts collected in fiscal year 2022 will be disbursed in 
2023.
    Spending of Outer Continental Shelf Oil and Gas Receipts. 
S. 2130 would raise the limit under GOMESA on annual payments 
to states and on deposits to the LWCF to $650 million for 
receipts collected in 2022. The bill would eliminate that cap 
starting in 2023.
    CBO estimates that OCS oil and gas receipts will total 
about $25 billion over the 2022-2031 period, primarily from 
payments of royalties on oil production. Assuming that the 
timing of disbursements follows historical trends and 
accounting for sequestration, CBO estimates that under the bill 
outlays for GOMESA programs would increase by $6.6 billion over 
the 2023-2032 period.
    Spending of Outer Continental Shelf Wind Receipts. S. 2130 
would authorize 50 percent of receipts from OCS wind leases 
issued after January 1, 2022, to be spent without further 
appropriation. The bill would make those funds available the 
year after receipts are collected. Thus, the cost would depend 
on the amount of bonus bids, rent, and fees collected over the 
2022-2031 period, which CBO estimates will total about $9.5 
billion, primarily from bonus payments. In total, CBO estimates 
that enacting the bill would increase direct spending of 
receipts from OCS wind leases by $4.5 billion over the 2023-
2032 period, net of the effects of sequestration procedures. 
Those outlays would be split between the two purposes described 
below.
    Coastal States. Under S. 2130, 37.5 percent of the receipts 
from OCS wind leases would be allocated for payments to coastal 
states within 75 miles of an eligible lease. CBO estimates that 
a total of $3.4 billion would be disbursed to those states over 
the 2022-2032 period.
    National Coastal Resilience Fund. S. 2130 would allocate 
12.5 percent (or about $1.2 billion) of the receipts from OCS 
wind leases to activities authorized by the National Oceans and 
Coastal Security Fund, also known as the National Coastal 
Resilience Fund (NCRF). Under current law, the NCRF is used to 
protect coastal communities and improve fish and wildlife 
habitats. Project funding comes from private donations and from 
transfers of appropriated amounts from the National Oceanic and 
Atmospheric Administration.
    The NCRF is administered by the National Fish and Wildlife 
Foundation, a federally established nonprofit corporation whose 
activities are not accounted for in the federal budget. Thus, 
any federal payments to the foundation--including payments to 
the NRCF--are recorded as outlays at the time they are made.
    CBO estimates that enacting the bill would result in 
spending of $1.1 billion, reflecting payments to the NCRF, over 
the 2023-2032 period.
    Spending of Onshore Mineral Receipts. S. 2130 would direct 
the Department of the Interior to convey to states an 
additional 1 percent of receipts from onshore oil and gas 
leases under the Mineral Leasing Act. CBO estimates that after 
adjusting for sequestration reductions enacting that provision 
would increase direct spending by $515 million over the 2023-
2032 period.
    Spending subject to appropriation: CBO estimates that the 
Department of the Interior would incur additional 
administrative costs to develop accounting systems necessary to 
disburse receipts from OCS wind leases to states and the NCRF. 
Using information from the department, CBO estimates that those 
activities would cost $1 million over the 2023-2027 period.
    Uncertainty: When estimating the costs of S. 2130, CBO had 
to account for uncertainty in several areas.
    CBO cannot predict the total amount of oil or gas that will 
be produced from OCS leases in the Gulf of Mexico in the future 
or how much electricity will be generated from OCS wind leases 
issued after January 1, 2022. Depending on the technical and 
economic characteristics of each lease, spending of the 
proceeds could be more or less than CBO estimates.
    CBO also cannot predict the amount or timing of future 
bonus and royalty payments from oil, gas, or wind leases, which 
depend on private-sector investment decisions as well as on 
federal leasing policies. Differences in the timing of payments 
could affect the years in which costs are incurred.
    Furthermore, CBO cannot predict future oil, gas, or 
electricity prices, which will affect royalties and bonus 
payments for on- and offshore leases. Differences between 
estimated and actual prices would have a corresponding effect 
on the costs of the legislation.
    Finally, the bill would allow NOAA to exercise more control 
over activities of the National Fish and Wildlife Foundation, 
which CBO currently treats as a nongovernmental entity. For 
this estimate, CBO continues to treat the foundation as a 
nongovernmental organization because--in our judgement--the 
extent of governmental control over the foundation would not be 
large enough to justify treating the foundation's activities as 
governmental and thus accounting for its cashflows in the 
federal budget.\2\ If the foundation were treated as a 
governmental entity, all cashflows--including the collection 
and spending of non-federal funds and the spending of earned 
interest--would be accounted for as direct spending.
---------------------------------------------------------------------------
    \2\For more information on how CBO determines if an activity should 
be classified as governmental, see Congressional Budget Office. How CBO 
determines Whether to Classify an Activity as Governmental When 
Estimating Its Budgetary Effects (June 2017), www.cbo.gov/publication/
52803.
---------------------------------------------------------------------------
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to those 
pay-as-you-go procedures are shown in Table 2.

    TABLE 2.--CBO'S ESTIMATE OF THE STATUTORY PAY-AS-YOU-GO EFFECTS OF S. 2130, THE REINVESTING IN SHORELINE ECONOMIES AND ECOSYSTEMS ACT OF 2022, AS
                                ORDERED REPORTED BY THE SENATE COMMITTEE ON ENERGYAND NATURAL RESOURCES ON JULY 21, 2022
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    By Fiscal Year, Millions of Dollars--
                                                   -----------------------------------------------------------------------------------------------------
                                                     2023    2024    2025    2026    2027    2028    2029    2030    2031    2032   2023-2027  2023-2032
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               Net Increase in the Deficit
 
Pay-As-You-Go Effect..............................   2,355     870     890     665     755     880   1,020   1,205   1,370   1,625     5,535     11,635
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Increase in long-term deficits: CBO estimates that enacting 
S. 2130 would increase on-budget deficits by more than $5 
billion in all of the four consecutive 10-year periods 
beginning in 2033.
    Mandates: None.
    Estimate prepared by: Federal Costs: Kathleen Gramp (Outer 
Continental Shelf); Lilia Ledezma (Onshore Minerals); Robert 
Reese (National Oceans and Coastal Security Act); Mandates: 
Rachel Austin.
    Estimate reviewed by: Kathleen FitzGerald, Chief, Public 
and Private Mandates Unit; Susan Willie, Chief, Natural and 
Physical Resources Cost Estimates Unit; H. Samuel Papenfuss, 
Deputy Director of Budget Analysis; Theresa Gullo, Director of 
Budget Analysis.

                      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 S. 2130. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant economic responsibilities on private individuals 
and businesses. No personal information would be collected in 
administering the program. Therefore, there would be no impact 
on personal privacy. Little, if any, additional paperwork would 
result from the enactment of S. 2130, as ordered reported.

                   Congressionally Directed Spending

    S. 2130, as ordered 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

    The testimony provided by the Department of the Interior at 
the October 19, 2021, hearing on S. 2130 follows:

Statement of Steve Feldgus, Ph.D., Deputy Assistant Secretary Land and 
          Minerals Management, U.S. Department of the Interior

    Thank you for the opportunity to present the Department of 
the Interior's views on S. 2130, the Reinvesting In Shoreline 
Economies and Ecosystems Act (RISEE Act). The Department is 
supportive of efforts to advance offshore wind development on 
the Outer Continental Shelf (OCS) in an economically and 
environmentally responsible manner, as well as increase coastal 
adaptation and resiliency to a changing climate. However, the 
Administration has concerns with the impact to the Treasury and 
recognizes the need to further evaluate the implication of 
diverting revenue and creating further dependence on funding 
from energy development for conservation and resilience.


                               background


    As part of tackling the climate crisis, the Administration 
is committed to advancing the Nation's transition to a clean 
energy future. Just last week, Secretary of the Interior Deb 
Haaland outlined the path forward for future offshore wind 
leasing to meet the Biden-Harris administration's goal to 
deploy 30 gigawatts (GW) of offshore wind energy by 2030 and 
beyond. These ambitious plans include up to seven new offshore 
lease sales by 2025 in the Gulf of Maine, the New York Bight, 
the Central Atlantic, and the Gulf of Mexico, as well as 
offshore the Carolinas, California, and Oregon. The Department 
is laying out an ambitious roadmap as we advance the 
Administration's plans to confront climate change, create good-
paying jobs, and accelerate the nation's transition to a 
cleaner energy future.
    The Department's Bureau of Ocean Energy Management (BOEM) 
is working on refining its process for identifying additional 
Wind Energy Areas, and developing clear goals, objectives, and 
guidelines that can be shared with government agencies, Tribes, 
industry, ocean users, and others prior to identifying such 
areas. In addition, BOEM will use the best available science as 
well as knowledge from ocean users and other stakeholders to 
minimize conflict with existing uses and marine life.
    BOEM completed its review of a Construction and Operations 
Plan (COP) for the Vineyard Wind project earlier this year and 
plans to issue a record of decision on a second project later 
this year and review at least 16 COPs by 2025 representing more 
than 19 GW of clean energy capacity.


  s. 2130, the reinvesting in shoreline economies and ecosystems act 
                              (risee act)


    S. 2130 would establish an offshore wind revenue sharing 
model for adjacent coastal states, dedicate a percentage of 
offshore wind revenues to the National Oceans and Coastal 
Security Fund (NOCSF), and amend the Gulf of Mexico Energy 
Security Act (GOMESA) to eliminate the cap on state revenue 
sharing, increasing the percentage of revenues shared with 
states from 37.5 percent to 50 percent. The Administration has 
concerns with how provisions in the RISEE Act could reduce 
funding to the Treasury and impact revenues necessary to carry 
out authorized activities.
Offshore Wind Receipts
    Revenues from offshore wind leases are necessary to support 
critical needs to advance the Administration's ambitious 
offshore wind goals, including lease area and project reviews, 
research, public outreach and engagement, mitigation 
activities, and staff to support those activities. Under 
current law, OCS wind leases are projected to provide over $1.4 
billion to the Treasury over the next 5 years (FY 2022-2026). 
Of that total, this bill would redirect $723 million to the 
states and $542 million to the NOCSF, leaving only $181 million 
for the Treasury, a decline of over $1.25 billion. 
Additionally, there is no requirement that any portion of the 
funds provided to the states or NOCSF be used for programs or 
activities related to offshore wind development.
    The Administration believes that revenues from offshore 
wind should benefit Americans broadly. The President's FY 2022 
Budget invests in programs that help ensure responsible 
offshore wind development to meet the Administration's clean 
energy targets; to identify and mitigate potential impacts; 
form partnerships to improve regional collaboration; and ensure 
robust and ongoing engagement with states and coastal 
communities early and often throughout the offshore wind 
development process.
GOMESA Revenue Sharing
    The GOMESA amendments in S. 2130 would have even more 
significant fiscal impacts. Under GOMESA's current terms, the 
states of Alabama, Louisiana, Mississippi, and Texas are 
expected to share $375 million each year from 2022 through 
2055. The Department's preliminary estimate is that eliminating 
that cap, changing the revenue allocation share to 50 percent, 
and changing the eligible date for future payments from leases 
existing on or after 2007 to those leases existing on or after 
2000 would result in a projected additional $9.4 billion going 
to those four states over the next ten years, a number that 
could increase significantly in subsequent decades.
    Broadly, the Department supports funding and programs for 
coastal resilience activities and conservation. However, the 
Department also acknowledges the need to further evaluate the 
implication of diverting that amount of revenue and creating 
further dependence on funding from energy development in order 
to accomplish conservation and resilience goals, given the 
variability of such funding on global energy prices and the 
level of industry activity.
    The Department has and continues to work with states and 
coastal communities experiencing sea level rise, ocean 
acidification, higher storm surges, more frequent extreme 
weather events, erosion, and flooding to adapt to and build 
resilience for a changing climate. Highlights of such 
collaboration in the recent Department of the Interior Climate 
Action Plan include the National Park Service's Coastal 
Adaptation Strategies Handbook, and the Bureau of Ocean Energy 
Management's leasing of sand and sediment resources to restore, 
nourish, and protect shores, beaches, and wetlands.


                               conclusion


    The Department looks forward to working with the Committee 
and the sponsors of this legislation to meet the challenges of 
a changing climate through advancing offshore renewable energy 
development and coastal climate adaptation and resiliency.

                        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 bill S. 3185, 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 change is proposed is shown in roman):

                 NATIONAL OCEANS AND COASTAL SURVEY ACT

    Division O of the Consolidated Appropriations Act, 2016, 
Public Law 114-113

           *       *       *       *       *       *       *


             TITLE IX--NATIONAL OCEANS AND COASTAL SECURITY

SEC. 901. SHORT TITLE.

    This title may be cited as the ``National Oceans and 
Coastal Security Act''.

SEC. 902. DEFINITIONS.

    In this title:
          (1) Coastal county.--The term ``coastal county'' has 
        the meaning given the term by the National Oceanic and 
        Atmospheric Administration in the document entitled 
        ``NOAA's List of Coastal Counties for the Bureau of the 
        Census'' (or similar successor document).
          (2) Coastal state.--The term ``coastal state'' has 
        the meaning given the term ``coastal state'' in section 
        1453 of this title.
          (3) Foundation.--The term ``Foundation'' means the 
        National Fish and Wildlife Foundation established by 
        section 3701(a) of this title.
          (4) Fund.--The term ``Fund'' means the National 
        Oceans and Coastal Security Fund established under 
        section 7503(a) of this title.
          [(5) Indian tribe.--The term ``Indian tribe'' means 
        any federally recognized Indian tribe.]
          (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).
          (6) Administrator.--Except as otherwise specifically 
        provided, the term ``Administrator'' means the Under 
        Secretary of Commerce for Oceans and Atmosphere and 
        Administrator of the National Oceanic and Atmospheric 
        Administration.
          [(7) Tidal shoreline.--The term ``tidal shoreline'' 
        has the meaning given that term pursuant to section 
        923.110(c)(2)(i) of title 15, Code of Federal 
        Regulations, or a similar successor regulation.]
        (7)  Tidal shoreline.--The term ``tidal shoreline'' 
        means the length of tidal shoreline or Great Lake 
        shoreline based on the most recently available data 
        from or accepted by the Office of Coast Survey of the 
        National Oceanic and Atmospheric Administration.

           *       *       *       *       *       *       *


SEC. 904. NATIONAL OCEANS AND COASTAL SECURITY FUND.

    (a) Establishment.--The Administrator and the Foundation 
are authorized to establish and manage the National Oceans and 
Coastal Security Fund as a tax exempt fund to further the 
purposes of this Act.
    (b) Deposits.--
          [(1) In general.--There shall be deposited into the 
        Fund amounts appropriated or otherwise made available 
        to carry out this Act.]
          (1) In general.--The Fund shall consist of such 
        amounts as--
                  (A) are deposited in the Fund under 
                subparagraph (C)(ii)(II) of section 8(p)(2) of 
                the Outer Continental Shelf Lands Act (43 
                U.S.C.1337(p)(2)); and
                  (B) are appropriated or otherwise made 
                available for the Fund.
          (2) Prohibitions on donations from foreign 
        Governments.--No amounts donated by a foreign 
        government, as defined in section 7342 of title 5, may 
        be deposited into the Fund.
    (c) Requirements.--Any amounts received by the Foundation 
pursuant to this Act shall be subject to the provisions of the 
National Fish and Wildlife Foundation Establishment Act (16 
U.S.C. 3701 et seq.), except the provisions of--
          (1) section 4(e)(1)(B) of that Act (16 U.S.C. 
        3703(e)(1)(B)); and
          (2) section 10(a) of that Act (16 U.S.C. 3709(a)).
    [(d) Expenditure.--Of the amounts deposited into the Fund 
for each fiscal year--
          (1) funds may be used by the Foundation to award 
        grants to coastal States under section 7505(b) of this 
        title;
          (2) funds may be used by the Foundation to award 
        grants under section 7505(c) of this title;
          (3) no more than 2 percent may be used by the 
        Administrator and the Foundation for administrative 
        expenses to carry out this Act, which amount shall be 
        divided between the Administrator and the Foundation 
        pursuant to an agreement reached and documented by both 
        the Administrator and the Foundation.]
    (d) Expenditure.--
          (1) $34,000,000 or less.--If $34,000,000 or less is 
        deposited in, or appropriated or otherwise made 
        available for, the Fund for a fiscal year, in that 
        fiscal year--
                  (A) not more than 5 percent of such amounts 
                may be used by the Administrator and the 
                Foundation for administrative expenses to carry 
                out this title; and
                  (B) any remaining amounts shall be used only 
                for the award of grants under section 906(c).
          (2) More than $34,000,000.--If more than $34,000,000 
        is deposited in, or appropriated or otherwise made 
        available for, the Fund for a fiscal year, in that 
        fiscal year--
                  (A) not more than 5 percent of such amounts 
                may be used by the Administrator and the 
                Foundation for administrative expenses to carry 
                out this title;
                  (B) not less than $34,000,000 shall be used 
                for the award of grants under section 906(c); 
                and
                  (C) of any amounts exceeding $34,000,000--
                          (i) not more than 75 percent may be 
                        used for the award of grants under 
                        section 906(b); and
                          (ii) not more than 20 percent may be 
                        used for the award of grants under 
                        section 906(c).
          (3) Division of amounts for administrative 
        expenses.--The amounts referred to in paragraphs (1)(A) 
        and (2)(A) shall be divided between the Administrator 
        and the Foundation pursuant to an agreement reached and 
        documented by both the Administrator and the 
        Foundation.
    (e) Recovery of Payments.--After notice and an opportunity 
for a hearing, the Administrator is authorized to recover any 
Federal payments under this section if the Foundation--
          (1) makes a withdrawal or expenditure from the Fund 
        that is not consistent with the requirements of section 
        7504 of this title; or
          (2) fails to comply with a procedure, measure, 
        method, or standard established under [section 
        906(a)(1)] section 906(a) of this title.

SEC. 905. ELIGIBLE USES.

    [(a) In General.--Amounts in the Fund may be allocated by 
the Foundation to support programs and activities intended to 
better understand and utilize ocean and coastal resources and 
coastal infrastructure, including baseline scientific research, 
ocean observing, and other programs and activities carried out 
in coordination with Federal and State departments or agencies.
    (b) Prohibition on Use of Funds for Litigation or Other 
Purposes.--No funds made available under this Act may be used 
to--
          (1) fund litigation against the Federal Government; 
        or
          (2) fund the creation of national marine monuments 
        and marine protected areas, marine spatial planning, or 
        the National Ocean Policy.]
    (a) In General.--Amounts in the Fund may be allocated by 
the Administrator under section 906(b) and the Foundation, in 
consultation with the Administrator, under section 906(c) to 
support programs and activities intended to improve 
understanding and use of ocean and coastal resources and 
coastal infrastructure.
    (b) Programs and Activities.--The programs and activities 
referred to in subsection (a) may include scientific research 
related to changing environmental conditions, ocean observing 
projects, efforts to enhance resiliency of infrastructure and 
communities (including project planning and design), habitat 
protection and restoration, monitoring and reducing damage to 
natural resources and marine life (including birds, marine 
mammals, and fish), and efforts to support sustainable seafood 
production 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.
    (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.

SEC. 906. GRANTS.

    [(a) Administration of Grants.
          (1) In general.--Not later than 90 days after funds 
        are deposited into the Fund and made available to the 
        Foundation for administrative purposes, the Foundation 
        shall establish the following:]
    (a) Administration of Grants.--Not later than 90 days after 
funds are deposited in the Fund and made available to the 
Administrator and the Foundation for administrative purposes, 
the Administrator and the Foundation shall establish the 
following:
                  [(A](1) Application and review procedures for 
                the awarding of grants under this section, 
                including requirements ensuring that any 
                amounts awarded under [such subsections] this 
                section may only be used for an eligible use 
                described under section 905 of this title.
                  [(B) Selection procedures and criteria for 
                the awarding of grants under this section 
                that--
                          (i) require consultation with the 
                        Administrator and the Secretary of the 
                        Interior; and
                          (ii) prioritize the projects or 
                        activities where non-Federal partners 
                        have committed to share the cost of the 
                        project.]
                  [(B)](2) Selection procedures and criteria 
                for the awarding of grants under this section 
                that require consultation with the 
                Administrator and the Secretary of the 
                Interior.
                  [(C)](3) Eligibility criteria for awarding 
                grants--
                          [(i)](A) under subsection (b) to 
                        coastal States; and
                          [(ii) under subsection (c) to--
                                  (I) entities including 
                                States, local governments, and 
                                Indian tribes; and
                                  (II) the research and 
                                restoration work of 
                                associations, nongovernmental 
                                organizations, public-private 
                                partnerships, and academic 
                                institutions.]
                  (B) 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.
                  [(D)](4) [Performance accountability and 
                monitoring] Performance, accountability, and 
                monitoring measures for programs and activities 
                funded by a grant awarded under subsection (b) 
                or (c).
                  [(E)](5) Procedures and methods to ensure 
                accurate accounting and appropriate 
                administration of grants awarded under this 
                section, including standards of recordkeeping.
                  [(F)](6) Procedures to carry out audits of 
                the Fund as necessary, but not less frequently 
                than once every year if grants have been 
                awarded in that year.
                  [(G)](7) Procedures to carry out audits of 
                the recipients of grants under this section.
                  [(H)](8) Procedures to make publicly 
                available on the Internet a list of all 
                projects funded by the Fund, that includes at a 
                minimum the grant recipient, grant amount, 
                project description, and project status.
          [(2) Approval.--The Foundation shall submit to the 
        Administrator for approval each procedure, measure, 
        method, and standard established under paragraph (1).]
    [(b) Grants to Coastal States.
      (1) In general.--The Administrator and the Foundation may 
award grants according to the procedures established in 
subsection (a) to coastal States and United States territories 
to support activities consistent with section 904. In 
determining distribution of grants, the Foundation may--
                  (A) consider for each State--
                          (i) percent of total United States 
                        shoreline miles;
                          (ii) coastal population density; and
                          (iii) other factors;
                  (B) establish criteria for States, including 
                the requirement for a State to establish a plan 
                to distribute the funds; and
                  (C) establish a maximum and minimum 
                percentage of funding to be awarded to each 
                State or United States territory.
          (2) Indian tribes.--As a condition on receipt of a 
        grant under this subsection, a State that receives a 
        grant under this subsection shall ensure that Indian 
        tribes in the State are eligible to participate in any 
        competitive grants established in this Act.]
    (b) Grants to Coastal States.--
      (1) In general.--The Administrator shall award grants to 
coastal States as follows:
                  (A) 70 percent of available amounts shall be 
                allocated equally among coastal States.
                  (B) 15 percent of available amounts shall be 
                allocated on the basis of the ratio of tidal 
                shoreline in a coastal State to the tidal 
                shoreline of all coastal States.
                  (C) 15 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) Optional matching funds.--Each entity seeking to 
        receive a grant under this subsection is encouraged, 
        but not required, to demonstrate that funds of any 
        amount are available from non-Federal sources to 
        supplement the amount of the grant.
    (c) National Grants for Oceans, Coasts, and Great Lakes.--
          (1) In general.--[The Administrator and the 
        Foundation] The Foundation, in consultation with the 
        Administrator, may award grants according to the 
        procedures established in subsection (a) to support 
        activities consistent with section 905.
          (2) Advisory panel.--
                  (A) In general.--The Foundation may establish 
                an advisory panel to conduct reviews of 
                applications for grants under paragraph (1) and 
                the Foundation may consider the recommendations 
                of the advisory panel with respect to such 
                applications.
                  (B) Membership.--The advisory panel described 
                under subparagraph (A) shall include persons 
                representing--
                          (i) ocean and coastal dependent 
                        industries;
                          (ii) geographic regions as defined by 
                        the Foundation; and
                          (iii) academic institutions.
          (3) 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).

SEC. 907. ANNUAL REPORT.

    (a) Requirement for Annual Report.--[Subject to subsection 
(c), beginning with fiscal year 2017, not later than 60 days 
after the end of each fiscal year, the Foundation] Not later 
than 60 days after the end of each fiscal year, the 
Administrator and the Foundation shall submit to the Committee 
on Commerce, Science, and Transportation of the Senate and the 
Committee on Natural Resources of the House of Representatives 
a report on the operation of the Fund during that fiscal year.
    (b) Content.--Each annual report submitted under subsection 
(a) for a fiscal year shall include--
          (1) a full and complete statement of the receipts, 
        including the source of all receipts, expenditures, and 
        investments of the Fund;
          (2) a statement of the amounts deposited in the Fund 
        and the balance remaining in the Fund at the end of the 
        fiscal year; and
          (3) a description of the expenditures made from the 
        Fund for the fiscal year, including the purpose of the 
        expenditures.

[SEC. 908. FUNDING.

    There is authorized to be appropriated such sums as are 
necessary for fiscal years 2017, 2018, and 2019 for this 
title.]

           *       *       *       *       *       *       *


                   OUTER CONTINENTAL SHELF LANDS ACT

                           Public Law 83-212


 AN ACT To provide for the jurisdiction of the United States over the 
 submerged lands of the outer Continental Shelf, and to authorize the 
Secretary of the Interior to lease such lands for certain purposes.

           *       *       *       *       *       *       *


    Sec. 8. Leases, Easements, and Rights-of-Way on the Outer 
Continental Shelf.--

           *       *       *       *       *       *       *

    (p) Leases, Easements, or Rights-of-Way for Energy and 
Related Purposes.--
          (1) In general.--The Secretary, in consultation with 
        the Secretary of the Department in which the Coast 
        Guard is operating and other relevant departments and 
        agencies of the Federal Government, may grant a lease, 
        easement, or right-of-way on the outer Continental 
        Shelf for activities not otherwise authorized in this 
        Act, the Deepwater Port Act of 1974 (33 U.S.C. 1501 et 
        seq.), the Ocean Thermal Energy Conversion Act of 1980 
        (42 U.S.C. 9101 et seq.), or other applicable law, if 
        those activities--
                  (A) support exploration, development, 
                production, or storage of oil or natural gas, 
                except that a lease, easement, or right-of-way 
                shall not be granted in an area in which oil 
                and gas preleasing, leasing, and related 
                activities are prohibited by a moratorium;
                  (B) support transportation of oil or natural 
                gas, excluding shipping activities;
                  (C) produce or support production, 
                transportation, or transmission of energy from 
                sources other than oil and gas; or
                  (D) use, for energy-related purposes or for 
                other authorized marine-related purposes, 
                facilities currently or previously used for 
                activities authorized under this Act, except 
                that any oil and gas energy-related uses shall 
                not be authorized in areas in which oil and gas 
                preleasing, leasing, and related activities are 
                prohibited by a moratorium.
                  (E) provide for, support, or are directly 
                related to the injection of a carbon dioxide 
                stream into sub-seabed geologic formations for 
                the purpose of long-term carbon sequestration.
          (2) Payments and revenues.--[(A) The Secretary]
                  (A) In general.--Subject to subparagraphs (B) 
                and (C), the Secretary shall establish 
                royalties, fees, rentals, bonuses, or other 
                payments to ensure a fair return to the United 
                States for any lease, easement, or right-of-way 
                granted under this subsection.
                  [(B) The Secretary] (B) Disposition of 
                revenues for projects located within three 
                nautical miles seaward of state submerged 
                land.--The Secretary shall provide for the 
                payment of 27 percent of the revenues received 
                by the Federal Government as a result of 
                payments under this section from projects that 
                are located wholly or partially within the area 
                extending three nautical miles seaward of State 
                submerged lands. Payments shall be made based 
                on a formula established by the Secretary by 
                rulemaking no later than 180 days after the 
                date of enactment of this section that provides 
                for equitable distribution, based on proximity 
                to the project, among coastal states that have 
                a coastline that is located within 15 miles of 
                the geographic center of the project.
                  (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 lease 
                                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 a least tract lying wholly 
                                or partly within the area of 
                                the applicable covered offshore 
                                wind project.
                          (ii) Requirement.--Of the operating 
                        fees, rentals bonuses, royalties, and 
                        other payments that are paid to the 
                        Secretary under subparagraph (A) from 
                        covered offshore wind projects carried 
                        out under a lease entered into on or 
                        after January 1, 2022--
                                  (I) 50 percent shall be 
                                deposited in the Treasury and 
                                credited to miscellaneous 
                                receipts;
                                  (II) 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
                                  (III) 37.5 percent shall be 
                                deposited in a special account 
                                in the Treasury, from which the 
                                Secretary 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 
                                Reinvesting in Shoreline 
                                Economies and Ecosystems Act of 
                                2022) 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.
                          (iii) Timing.--The amounts required 
                        to be deposited under subclause (III) 
                        of clause (ii) 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)(III) in 
                                accordance with all applicable 
                                Federal and State laws, only 
                                for 1or 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, including 
                                        through fisheries 
                                        science and research.
                                          (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, on the 
                                        condition that the 
                                        projects are not 
                                        primarily for 
                                        entertainment purposes.
                                          (ee) Planning 
                                        assistance and the 
                                        administrative costs of 
                                        complying with this 
                                        section.
                                  (II) Limitation.--Of the 
                                amounts received by a State 
                                under clause (ii)(III), 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) 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 for fiscal 
                        year 2023 and thereafter.--
                                  (I) In General.--Beginning 
                                with fiscal year 2023, not 
                                later than 180 days after the 
                                end of each fiscal year, each 
                                eligible State that receives 
                                amounts under clause (ii)(III) 
                                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 an 
                                eligible State that receives 
                                amounts under clause (ii)(III) 
                                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)(III) for the succeeding 
                                fiscal year shall be withheld 
                                for the succeeding fiscal year 
                                until the date on which the 
                                report is submitted.
                                  (IV) Contents of report.-- 
                                Each report required under 
                                subclause (I) shall include, 
                                for each project funded in 
                                whole or in part using amounts 
                                received under clause 
                                (ii)(III)--
                                          (aa) the name and 
                                        description of the 
                                        project;
                                          (bb) the amount 
                                        received under clause 
                                        (ii)(III) that is 
                                        allocated to the 
                                        project; and
                                          (cc) a description of 
                                        how each project is 
                                        consistent with the 
                                        authorized uses under 
                                        clause (iv)(I).
                                  (V) Clarification.--Nothing 
                                in this clause--
                                          (aa) requires or 
                                        provides authority for 
                                        the Secretary to delay, 
                                        modify, or withhold 
                                        payment under clause 
                                        (ii)(III), other than 
                                        for failure to submit a 
                                        report as required 
                                        under this clause;
                                          (bb) requires or 
                                        provides authority for 
                                        the Secretary to review 
                                        or approve uses of 
                                        funds reported under 
                                        this clause;
                                          (cc) requires or 
                                        provides authority for 
                                        the Secretary to 
                                        approve individual 
                                        projects that receive 
                                        funds reported under 
                                        this clause;
                                          (dd) requires an 
                                        eligible State to 
                                        obtain the approval of, 
                                        or review by, the 
                                        Secretary prior to 
                                        spending funds 
                                        disbursed under clause 
                                        (ii)(III);
                                          (ee) requires or 
                                        provides authority for 
                                        the Secretary to issue 
                                        guidance relating to 
                                        the contents of, or to 
                                        determine the 
                                        completeness of, the 
                                        report required under 
                                        this clause.
                                          (ff) requires an 
                                        eligible State to 
                                        obligate or expend 
                                        funds by a certain 
                                        date; or
                                          (gg) requires or 
                                        provides authority for 
                                        the Secretary to 
                                        request an eligible 
                                        State to return 
                                        unobligated funds.

           *       *       *       *       *       *       *


                   GULF OF MEXICO ENERGY SECURITY ACT

    Title I of Division C of the Tax Relief and Health Care Act 
of 2006, Public Law 109-432

           *       *       *       *       *       *       *


                      DIVISION C--OTHER PROVISIONS

                TITLE I--GULF OF MEXICO ENERGY SECURITY

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Gulf of Mexico Energy 
Security Act of 2006''.

           *       *       *       *       *       *       *


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.

           *       *       *       *       *       *       *

    (d) Authorized Uses.--
          (1) In general.--Subject to paragraph (2), each Gulf 
        producing State and coastal political subdivision shall 
        use all amounts received under subsection (b) in 
        accordance with all applicable Federal and State laws, 
        only for 1 or more of the following purposes:
                  (A) Projects and activities for the purposes 
                of coastal protection, including conservation, 
                coastal restoration, hurricane protection, and 
                infrastructure directly affected by coastal 
                wetland losses.
                  (B) Mitigation of damage to fish, wildlife, 
                or natural resources.
                  (C) Implementation of a federally-approved 
                marine, coastal, or comprehensive conservation 
                management plan.
                  (D) Mitigation of the impact of outer 
                Continental Shelf activities through the 
                funding of onshore infrastructure projects, on 
                the condition that the projects are not 
                primarily for entertainment purposes.
                  (E) Planning assistance and the 
                administrative costs of complying with this 
                section.
          (2) Limitation.--Not more than 3 percent of amounts 
        received by a Gulf producing State or coastal political 
        subdivision under subsection (b) may be used for the 
        purposes described in paragraph (1)(E).
    (e) Administration.--[Amounts] Subject to subsection 
(g)(3), amounts made available under subsection (a)(2) shall--
          (1) be made available, without further appropriation, 
        in accordance with this section;
          (2) remain available until expended; and
          (3) be in addition to any amounts appropriated 
        under--
                  (A) the Outer Continental Shelf Lands Act (43 
                U.S.C. 1331 et seq.);
                  (B) chapter 2003 of title 54, United States 
                Code; or
                  (C) any other provision of law.
    (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--
                  [(A) $500,000,000 for each of fiscal years 
                2016 through 2019;
                  (B) 650,000,000 for each of fiscal years 2020 
                and 2021; and
                  (C) 500,000,000 for each of fiscal years 2022 
                through 2055.]
                  (A) 500,000,000 for each of fiscal years 2016 
                through 2019;
                  (B) 650,000,000 for each of fiscal years 2020 
                through 2022.
          (2) Expenditures.--For the purpose of paragraph (1), 
        for each of fiscal years 2016 through [2055] 2022, 
        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.
          (3) Pro rata reductions.--If paragraph (1) limits the 
        amount of qualified outer Continental Shelf revenue 
        that would be paid under subparagraphs (A) and (B) of 
        subsection (a)(2)--
                  (A) the Secretary shall reduce the amount of 
                qualified outer Continental Shelf revenue 
                provided to each recipient on a pro rata basis; 
                and
                  (B) any remainder of the qualified outer 
                Continental Shelf revenues shall revert to the 
                general fund of the Treasury.
    (g) Reporting Requirement for Fiscal Year 2023 and 
Thereafter.--
          (1) In general.--Beginning with fiscal year 2023, not 
        later than 180 days after the end of each fiscal year, 
        each Gulf producing State that receives amounts under 
        subsection (a)(2)(A) for the applicable fiscal year 
        shall submit to the Secretary a report that describes 
        the use of the amounts by the Gulf producing State 
        during the period covered by the report.
          (2) Public availability.--On receipt of a report 
        under paragraph (1), the Secretary shall make the 
        report available to the public on the website of the 
        Department of the Interior.
          (3) Limitation.--If a Gulf producing State that 
        receives amounts under subsection (a)(2)(A) for the 
        applicable fiscal year fails to submit the report 
        required under paragraph (1) by the deadline specified 
        in that paragraph, any amounts that would otherwise be 
        provided to the Gulf producing State under subsection 
        (a)(2)(A) for the succeeding fiscal year shall be 
        withheld for the succeeding fiscal year until the date 
        on which the report is submitted.
          (4) Contents of report.--Each report required under 
        paragraph (1) shall include, for each project funded in 
        whole or in part using amounts received under 
        subsection (a)(2)(A)
                  (A) the name and description of the project;
                  (B) the amount received under subsection 
                (a)(2)(A) that is allocated to the project; and
                  (C) a description of how each project is 
                consistent with the authorized uses under 
                subsection (d)(1).
          (5) Clarification.--Nothing in this clause--
                  (A) requires or provides authority for the2 
                Secretary to delay, modify, or withhold payment 
                under subsection (a)(2)(A), other than for 
                failure to submit a report as required under 
                this subsection;
                  (B) requires or provides authority for the 
                Secretary to review or approve uses of funds 
                reported under this subsection;
                  (C) requires or provides authority for the 
                Secretary to approve individual projects that 
                receive funds reported under this subsection;
                  (D) requires a Gulf producing State to obtain 
                the approval of, or review by, the Secretary 
                prior to spending funds disbursed under 
                subsection (a)(2)(A);
                  (E) requires or provides authority for the 
                Secretary to issue guidance relating to the 
                contents of, or to determine the completeness 
                of, the report required under this subsection;
                  (F) requires a Gulf producing State to 
                obligate or expend funds by a certain date; or
                  (G) requires or provides authority for the 
                Secretary to request a Gulf producing State to 
                return unobligated funds.

           *       *       *       *       *       *       *


                          MINERAL LEASING ACT

                        Act of February 25, 1920


 An Act To promote the mining of coal, phosphate, oil, oil shale, gas, 
and sodium on the public domain.

           *       *       *       *       *       *       *


    SEC. 35. (a) All money received from sales, bonuses, 
royalties including interest charges collected under the 
Federal Oil and Gas Royalty Management Act of 1982, and rentals 
of the public lands under the provisions of this Act and the 
Geothermal Steam Act of 1970, shall be paid into the Treasury 
of the United States; [and, subject to the provisions of 
subsection (b),] 50 per centum thereof shall be paid by the 
Secretary of the Treasury to the State other than Alaska within 
the boundaries of which the leased lands or deposits are or 
were located; said moneys paid to any of such States on or 
after January 1, 1976, to be used by such State and its 
subdivisions, as the legislature of the State may direct giving 
priority to those subdivisions of the State socially or 
economically impacted by development of minerals leased under 
this Act, for (i) planning, (ii) construction and maintenance 
of public facilities, and (iii) provision of public service; 
and excepting those from Alaska, 40 per centum thereof shall be 
paid into, reserved, appropriated, as part of the reclamation 
fund created by the Act of Congress known as the Reclamation 
Act, approved June 17, 1902, and of those from Alaska, 90 per 
centum thereof shall be paid to the State of Alaska for 
disposition by the legislature thereof: Provided, That all 
moneys which may accrue to the United States under the 
provisions of this Act and the Geothermal Steam Act of 1970 
from lands within the naval petroleum reserves shall be 
deposited in the Treasury as ``miscellaneous receipts'', as 
provided by the Act of June 4, 1920 (41 Stat. 813), as amended 
June 30, 1938 (52 Stat.1252). All moneys received under the 
provisions of this Act and the Geothermal Steam Act of 1970 not 
otherwise disposed of by this section shall be credited to 
miscellaneous receipts. Payments to States under this section 
with respect to any moneys received by the United States, shall 
be made not later than the last business day of the month in 
which such moneys are warranted by the United States Treasury 
to the Secretary as having been received, except for any 
portion of such moneys which is under challenge and placed in a 
suspense account pending resolution of a dispute. Such warrants 
shall be issued by the United States Treasury not later than 10 
days after receipt of such moneys by the Treasury. Moneys 
placed in a suspense account which are determined to be payable 
to a State shall be made not later than the last business day 
of the month in which such dispute is resolved. Any such amount 
placed in a suspense account pending resolution shall bear 
interest until the dispute is resolved.
    [(b) Deduction For Administrative Costs.--In determining 
the amount of payments to the States under this section, 
beginning in fiscal year 2014 and for each year thereafter, the 
amount of such payments shall be reduced by 2 percent for any 
administrative or other costs incurred by the United States in 
carrying out the program authorized by this Act, and the amount 
of such reduction shall be deposited to miscellaneous receipts 
of the Treasury.]
    ([c]b) (1) Notwithstanding the first sentence of subsection 
(a), any rentals received from leases in any State (other than 
the State of Alaska) on or after August 8, 2005, shall be 
deposited in the Treasury, to be allocated in accordance with 
paragraph (2).
          (2) Of the amounts deposited in the Treasury under 
        paragraph (1)--
                  (A) 50 percent shall be paid by the Secretary 
                of the Treasury to the State within the 
                boundaries of which the leased land is located 
                or the deposits were derived; and
                  (B) 50 percent shall be deposited in a 
                special fund in the Treasury, to be known as 
                the ``BLM Permit Processing Improvement Fund'' 
                (referred to in this subsection as the 
                ``Fund'').
          (3) Use of fund.--
          (A) In general.--The Fund shall be available to the 
        Secretary of the Interior for expenditure, without 
        further appropriation and without fiscal year 
        limitation, for the coordination and processing of oil 
        and gas use authorizations on onshore Federal and 
        Indian trust mineral estate land.
                  (B) Accounts.--The Secretary shall divide the 
                Fund into--
                          (i) a Rental Account (referred to in 
                        this subsection as the ``Rental 
                        Account'') comprised of rental receipts 
                        collected under this section; and
                          (ii) a Fee Account (referred to in 
                        this subsection as the ``Fee Account'') 
                        comprised of fees collected under 
                        [subsection (d)] subsection (c).
          (4) Rental account.--
                  (A) In general.--The Secretary shall use the 
                Rental Account for--
                          (i) the coordination and processing 
                        of oil and gas use authorizations on 
                        onshore Federal and Indian trust 
                        mineral estate land under the 
                        jurisdiction of the Project offices 
                        identified under section 15924(d) of 
                        title 42; and
                          (ii) training programs for 
                        development of expertise related to 
                        coordinating and processing oil and gas 
                        use authorizations.
                  (B) Allocation.--In determining the 
                allocation of the Rental Account among Project 
                offices for a fiscal year, the Secretary shall 
                consider--
                          (i) the number of applications for 
                        permit to drill received in a Project 
                        office during the previous fiscal year;
                          (ii) the backlog of applications 
                        described in clause (i) in a Project 
                        office;
                          (iii) publicly available industry 
                        forecasts for development of oil and 
                        gas resources under the jurisdiction of 
                        a Project office; and
                          (iv) any opportunities for 
                        partnership with local industry 
                        organizations and educational 
                        institutions in developing training 
                        programs to facilitate the coordination 
                        and processing of oil and gas use 
                        authorizations.
          (5) Fee account.--
                  (A) In general.--The Secretary shall use the 
                Fee Account for the coordination and processing 
                of oil and gas use authorizations on onshore 
                Federal and Indian trust mineral estate land.
                  (B) Allocation.--The Secretary shall transfer 
                not less than 75 percent of the revenues 
                collected by an office for the processing of 
                applications for permits to the State office of 
                the State in which the fees were collected.
    ([d]c) BLM Oil and Gas Permit Processing Fee.--
          (1) In general.--Notwithstanding any other provision 
        of law, for each of fiscal years 2016 through 2026, the 
        Secretary, acting through the Director of the Bureau of 
        Land Management, shall collect a fee for each new 
        application for a permit to drill that is submitted to 
        the Secretary.
          (2) Amount.--The amount of the fee shall be $9,500 
        for each new application, as indexed for United States 
        dollar inflation from October 1, 2015 (as measured by 
        the Consumer Price Index).
          (3) Use.--Of the fees collected under this subsection 
        for a fiscal year, the Secretary shall transfer--
                  (A) for each of fiscal years 2016 through 
                2019--
                          (i) 15 percent to the field offices 
                        that collected the fees and used to 
                        process protests, leases, and permits 
                        under this Act, subject to 
                        appropriation; and
                          (ii) 85 percent to the BLM Permit 
                        Processing Improvement Fund established 
                        under subsection [(c)(2)(B)] subsection 
                        (b)(2)(B) (referred to in this 
                        subsection as the ``Fund''); and
                  (B) for each of fiscal years 2020 through 
                2026, all of the fees to the Fund.
          (4) Additional Costs.--During each of fiscal years of 
        2016 through 2026, the Secretary shall not implement a 
        rulemaking that would enable an increase in fees to 
        recover additional costs related to processing 
        applications for permits to drill.

           *       *       *       *       *       *       *


                 MINERAL LEASING ACT FOR ACQUIRED LANDS

                         Act of August 7, 1947


  AN ACT To promote the mining of coal, phosphate, sodium, potassium, 
   oil, oil shale, gas, and sulphur on lands acquired by the United 
States.

           *       *       *       *       *       *       *


    SEC. 6. (a) [Subject to the provisions of section 35(b) of 
the Mineral Leasing Act (30 U.S.C. 191(b)), all] All receipts 
derived from leases issued under the authority of this Act 
shall be paid into the same funds or accounts in the Treasury 
and shall be distributed in the same manner as prescribed for 
other receipts from the lands affected by the lease, the 
intention of this provision being that this Act shall not 
affect the distribution of receipts pursuant to legislation 
applicable to such lands: Provided, however, That receipts from 
leases or permits for minerals in lands set apart for Indian 
use, including lands the jurisdiction of which has been 
transferred to the Department of the Interior by the Executive 
order for Indian use, shall be deposited in a special fund in 
the Treasury until final disposition thereof by the Congress. 
Notwithstanding the preceding provisions of this section, all 
receipts derived from leases on lands acquired for military or 
naval purposes, except the naval petroleum reserves and 
national oil shale reserves, shall be paid into the Treasury of 
the United States and disposed of in the same manner as 
provided under section 35 [of the Act of February 25, 1920 (41 
Stat. 450; 30 U.S.C. 191),] of the Mineral Leasing Act (30 
U.S.C. 191) in the case of receipts from sales, bonuses, 
royalties, and rentals of the public lands under that Act.

           *       *       *       *       *       *       *


                      GEOTHERMAL STEAM ACT OF 1970

                           Public Law 91-581


 AN ACT To authorize the Secretary of the Interior to make disposition 
of geothermal steam and associated geothermal resources, and for other 
purposes.

           *       *       *       *       *       *       *


SEC. 20. DISPOSAL OF MONEYS FROM SALES, BONUSES, RENTALS, AND 
                    ROYALTIES.

    (a) In General.--Except with respect to lands in the State 
of Alaska, all monies received by the United States from sales, 
bonuses, rentals, and royalties under this Act shall be paid 
into the Treasury of the United States. Of amounts deposited 
under this subsection, subject to [the provisions of subsection 
(b) of section 35 of the Mineral Leasing Act (30 U.S.C. 191 
(b)) and section 5(a)(2) of this Act] section 5(a)(2)--
          (1) 50 percent shall be paid to the State within the 
        boundaries of which the leased lands or geothermal 
        resources are or were located; and
          (2) 25 percent shall be paid to the county within the 
        boundaries of which the leased lands or geothermal 
        resources are or were located.
    (b) Use of Payments.--Amounts paid to a State or county 
under subsection (a) shall be used consistent with the terms of 
section 35 of the Mineral Leasing Act (30 U.S.C. 191).

           *       *       *       *       *       *       *


           FEDERAL OIL AND GAS ROYALTY MANAGEMENT ACT OF 1982

                           Public Law 97-451


 AN ACT To ensure that all oil and gas originated on the public lands 
and on the Outer Continental Shelf are properly accounted for under the 
direction of the Secretary of the Interior, and for other purposes.

           *       *       *       *       *       *       *


SEC. 205. DELEGATION OF ROYALTY COLLECTIONS AND RELATED ACTIVITIES.

           *       *       *       *       *       *       *


    (f) Subject to appropriations, the Secretary shall 
compensate any State for those costs which may be necessary to 
carry out the delegated activities under [this Section] this 
section. Payment shall be made no less than every quarter 
during the fiscal year. Compensation to a State may not exceed 
the Secretary's reasonably anticipated expenditure for 
performance of such delegated activities by the Secretary. 
[Such costs shall be allocable for the purposes of section 
35(b) of the Act entitled ``An act to promote the mining of 
coal, phosphate, oil, oil shale, gas and sodium on the public 
domain'', approved February 25, 1920 (commonly known as the 
Mineral Leasing Act) (30 U.S.C. 191 (b)) to the administration 
and enforcement of laws providing for the leasing of any 
onshore lands or interests in land owned by the United States. 
Any further allocation of costs under section 35(b) made by the 
Secretary for oil and gas activities, other than those costs to 
compensate States for delegated activities under this Act, 
shall be only those costs associated with onshore oil and gas 
activities and may not include any duplication of costs 
allocated pursuant to the previous sentence. Nothing in this 
section affects the Secretary's authority to make allocations 
under section 35(b) for non-oil and gas mineral activities.] 
All moneys received from sales, bonuses, rentals, royalties, 
assessments and interest, including money claimed to be due and 
owing pursuant to a delegation under this section, shall be 
payable and paid to the Treasury of the United States.

           *       *       *       *       *       *       *


                                  [all]