Sec. 104. Sharing of OCS receipts with States and local governments
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Section 9 of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1338 ) is amended as follows: By designating the existing text as a subsection (a). In subsection
(a)(as so designated) by inserting , if not paid as otherwise provided in this title after receipts . By adding at the end the following: The Secretary shall deposit into a separate account in the Treasury the portion of OCS Receipts for each fiscal year that will be shared under paragraph (2). Beginning October 1, 2013, the Secretary shall pay under subsection
(c)50 percent of OCS Receipts received by the United States under all leases under this Act, except that the Secretary shall only pay 25 percent of such OCS Receipts received under all such leases within a State’s Adjacent Zone if leasing is not allowed within at least 25 percent of the portion of that State’s Adjacent Zone located completely within 75 miles of any coastline. The Secretary shall allocate the OCS Receipts deposited into the separate account established by paragraph
(1)that are paid under paragraph
(2)as follows: Deposits of bonus bids from a leased tract, including interest thereon, shall be allocated at the end of each fiscal year to the Adjacent State. Deposits of royalties and net profit shares from a leased tract, including interest thereon, shall be allocated at the end of each fiscal year as follows: 50 percent to the Adjacent State. 50 percent, in equal amounts, to all States, including the Adjacent State, that— have a coastline point within 300 miles of the center of the leased tract; and allow leasing within at least 25 percent of the portion of each State’s Adjacent Zone that is within 75 miles of the coastline. Any territory of the United States shall only be entitled to one-half of a State share under this paragraph. Not later than 90 days after the end of each fiscal year, the Secretary shall pay— to each State 60 percent of such State’s allocations under subsection b)(3) for the preceding fiscal year, together with all accrued interest thereon; and to the coastal county-equivalents and municipal political subdivisions of such State a total of 40 percent of such State’s allocations under subsection (b)(3) for the preceding fiscal year, together with all accrued interest thereon, allocated among such county equivalents and subdivision in accordance with paragraph (2). The Secretary shall make an initial allocation of the OCS Receipts to be paid with respect to a State under paragraph (1)(B) for a fiscal year as follows: 25 percent shall be allocated among coastal county-equivalent political subdivisions of the State that each— are completely more than 25 miles landward of the coastline of the State; and have a part of which that lies not more than 75 miles landward from the coastline, based on the population of such subdivisions. 75 percent shall be allocated among coastal county-equivalent political subdivisions of the State that each are completely or partially less than 25 miles landward of the coastline, of which— 25 percent shall be allocated based on the ratio of each such subdivision’s population to the coastal population of all such subdivisions; 25 percent shall be allocated based on the ratio of the coastline miles of each such subdivision’s to the coastline miles of all such subdivisions of the State, as calculated by the Secretary with each such subdivisions without a coastline considered to have 50 percent of the average coastline miles of such subdivisions that do have coastlines; and 50 percent shall be allocated equally to all such subdivisions having a coastline point within 300 miles of the center of the leased tract with respect to which OCS Receipts are paid. The initial allocation to each coastal county-equivalent political subdivision under paragraph
(2)shall be further allocated to the coastal county-equivalent political subdivision and any coastal municipal political subdivisions located partially or wholly within the boundaries of the coastal county-equivalent political subdivision, as follows: One-third shall be allocated to the coastal county-equivalent political subdivision. Two-thirds shall be allocated on a per capita basis to the municipal political subdivisions and the county-equivalent political subdivision, with the allocation to the latter based upon its population not included within the boundaries of a municipal political subdivision. Amounts deposited under this section shall be invested by the Secretary of the Treasury in securities backed by the full faith and credit of the United States having maturities suitable to the needs of the account in which they are deposited and yielding the highest reasonably available interest rates as determined by the Secretary of the Treasury. A recipient of funds under this section may use the funds for one or more of the following: To reduce in-State college tuition at public institutions of higher learning and otherwise support public education, including career technical education. To make transportation infrastructure improvements. To reduce taxes. To promote, fund, and provide for— coastal or environmental restoration; fish, wildlife, and marine life habitat enhancement; waterways construction and maintenance; levee construction and maintenance and shore protection; and marine and oceanographic education and research. To promote, fund, and provide for— infrastructure associated with energy production activities conducted on the outer Continental Shelf; energy demonstration projects; supporting infrastructure for shore-based energy projects; State geologic programs, including geologic mapping and data storage programs, and State geophysical data acquisition; State seismic monitoring programs, including operation of monitoring stations; development of oil and gas resources through enhanced recovery techniques; alternative energy development, including bio fuels, coal-to-liquids, oil shale, tar sands, geothermal, geopressure, wind, waves, currents, hydro, and other renewable energy; energy efficiency and conservation programs; and front-end engineering and design for facilities that produce liquid fuels from hydrocarbons and other biological matter. To promote, fund, and provide for— historic preservation programs and projects; natural disaster planning and response; and hurricane and natural disaster insurance programs. No recipient of funds under this section shall be required to account to the Federal Government for the expenditure of such funds, except as otherwise may be required by law. However, States may enact legislation providing for accounting for and auditing of such expenditures. Funds allocated under this section to States and political subdivisions may be used as matching funds for other Federal programs. Enactment after the date of the enactment of the Energy Security and Employment Act of any Federal statute that has the effect, as determined by the Secretary, of restricting any Federal agency from spending appropriated funds, or otherwise preventing it from fulfilling its preexisting responsibilities as of the date of enactment of the statute (unless such responsibilities have been reassigned to another Federal agency by the statute with no prevention of performance) to issue any permit or other approval impacting on the OCS oil and gas leasing program, or any lease issued thereunder, or to implement any provision of this Act shall automatically prohibit any payment of OCS Receipts under this section directly to States, and their coastal political subdivisions, for the duration of the restriction. The Secretary shall make the determination of the existence of such restricting effects within 30 days of a petition by any outer Continental Shelf lessee or producing State. In this section: The term Adjacent State means, with respect to any program, plan, lease sale, leased tract or other activity, proposed, conducted, or approved pursuant to the provisions of this Act, any State the laws of which are declared to be the law of the United States for the portion of the outer Continental Shelf on which such program, plan, lease sale, leased tract, or activity appertains or is, or is proposed to be, conducted. Each of the terms Adjacent Zone and State Adjacent Zone means, with respect to any program, plan, lease sale, leased tract, or other activity, proposed, conducted, or approved under this Act, the portion of the outer Continental Shelf for which the laws of a particular Adjacent State are declared to be the law of the United States. The term bonus bid means all funds received by the Secretary to issue an outer Continental Shelf mineral lease. The term coastal county-equivalent political subdivision means a political jurisdiction immediately below the level of State government, including a county, parish, borough in Alaska, independent municipality that is not part of a county, parish, or borough in Alaska, or other equivalent subdivision of a coastal State, that lies within the coastal zone. The term coastal municipal political subdivision means a municipality located within and part of a county, parish, borough in Alaska, or other equivalent subdivision of a State, all or part of which coastal municipal political subdivision lies within the coastal zone. The term coastal population means the population of all coastal county-equivalent political subdivisions, as determined by the most recent official data of the Census Bureau. The term coastal zone means that portion of a coastal State, including the entire territory of any coastal county-equivalent political subdivision at least a part of which lies, within 75 miles landward from the coastline, or a greater distance as determined by State law enacted to implement this section. The term OCS Receipts means bonus bids and royalties, excluding royalties from leases amended under the authority of section 8(s) of this Act. The term producing State means an Adjacent State having an Adjacent Zone containing a leased tract from which OCS Receipts are derived. The term royalty means all funds received by the United States from production of oil or natural gas, or the sale of production taken in-kind, or from net profit shares, from an outer Continental Shelf mineral lease. .
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Sec. 104
Sharing of OCS receipts with States and local governments
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