Sec. 202. Disposition of revenue from oil and gas leasing on the Outer Continental Shelf to Atlantic States and Alaska
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Section 9 of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1338 ) is amended— by striking All rentals and inserting the following: Except as otherwise provided in this section, all rentals ; and by adding at the end the following: In this subsection: Subject to clause (ii), the term covered planning area means each of the following planning areas (as such planning areas are depicted in the document titled 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program , dated November 2016, or a subsequent oil and gas leasing program developed under section 18 of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1344 )):
The Mid-Atlantic planning area. The South Atlantic planning area. Any planning area located off the coast of the State of Alaska. The term covered planning area does not include any area in the Atlantic Ocean— north of the southernmost lateral seaward administrative boundary of the State of Maryland; or south of the northernmost lateral seaward administrative boundary of the State of Florida. The term producing State means each of the following States: Virginia. North Carolina.
South Carolina. Georgia. Alaska. The term producing State does not include any State the coastal seaward boundary of which is further than 200 nautical miles from the geographic center of any leased tract of the Outer Continental Shelf. The term qualified revenue means any revenue derived from rentals, royalties, bonus bids, and other sums due and payable to the United States under an oil and gas lease with respect to a covered planning area entered into on or after the date of the enactment of this subsection.
The term qualified revenue does not include— revenue from the forfeiture of a bond or other surety securing obligations other than royalties, civil penalties, or royalties taken by the Secretary in kind and not sold; revenue generated from a lease subject to section 8(g); and the portion of the rental revenue in excess of the amount of rental revenue that would have been collected at the rates in effect before August 5, 1993. With respect to qualified revenue from leases awarded under the first leasing program approved under section 18(a) that takes effect after the date of the enactment of this subsection, the Secretary of the Treasury shall deposit or allocate, as applicable— 87.5 percent of such qualified revenue into the general fund of the Treasury; and 12.5 percent of such qualified revenue to producing States in accordance with paragraph (3).
With respect to qualified revenue from leases awarded under the second leasing program approved under section 18(a) that takes effect after the date of the enactment of this subsection, the Secretary of the Treasury shall deposit or allocate, as applicable— 75 percent of such qualified revenue into the general fund of the Treasury; and 25 percent of such qualified revenue to producing States in accordance with paragraph (3). With respect to qualified revenue from leases awarded under the third leasing program approved under section 18(a) that takes effect after the date of the enactment of this subsection, and under any subsequent such leasing program, the Secretary of the Treasury shall deposit or allocate, as applicable— 50 percent of such qualified revenue into the general fund of the Treasury; and 50 percent of such qualified revenue into a special account in the Treasury from which the Secretary of the Treasury shall disburse— 75 percent to States in accordance with paragraph (3); and 25 percent to the Secretary of the Interior for units of the National Park System.
In accordance with subparagraphs
(B)and (C), the Secretary of the Treasury shall annually allocate the amounts made available under subparagraphs (A)(ii), (B)(ii), and (C)(ii)(I) of paragraph
(2)to each producing State in an amount (based on a formula established by the Secretary by regulation) that— is inversely proportional to the respective distances between— the point on the coastline of the producing State that is closest to the geographical center of the applicable leased tract; and the geographical center of that leased tract; and is not less than 10 percent of the qualified revenue for a given leasing program. With respect to each producing State that is a noncontiguous coastal State, the Secretary of the Treasury shall allocate 20 percent of the allocable share of such State determined under this paragraph to the coastal political subdivisions of such State. The amount allocated by the Secretary of the Treasury to coastal political subdivisions under this subparagraph shall be allocated to each such coastal political subdivision in accordance with subparagraphs
(B)and
(E)of section 31(b)(4). In this subparagraph, the term coastal political subdivision means— a county-equivalent subdivision of a State for which— all or part of such subdivision lies within the coastal zone of the State (as defined in section 304 of the Coastal Zone Management Act of 1972 ( 16 U.S.C. 1453 )); and the closest coastal point of such subdivision is not more than 200 nautical miles from the geographical center of any leased tract on the Outer Continental Shelf; or a municipal subdivision of a State— for which the closest point of such subdivision is not more than 200 nautical miles from the geographical center of a leased tract on the Outer Continental Shelf; and that the State determines is a significant staging area for oil and gas servicing, supply vessels, operations, suppliers, or workers. With respect to each producing State that is a contiguous coastal State, the Secretary of the Treasury shall allocate— 50 percent of the allocable share of such State determined under this paragraph to the State treasury to be used by the State in accordance with clause (ii); 25 percent of the allocable share of such State determined under this paragraph to coastal towns; and 25 percent of the allocable share of such State determined under this paragraph to coastal counties. Funds allocated to a producing State under clause (i)(I) shall be used by such State— to enhance State land and water conservation efforts, particularly in inlets, waterways, and beaches; for the purposes of beach nourishment and coastline enhancements; for the protection of coastal wildlife; to support estuary health and aquaculture management; for dredging and port infrastructure development; to provide grants to support the geological and geophysical sciences or petroleum engineering programs or departments at institutions of higher education (as such term is defined in section 101 of the Higher Education Act of 1965 ( 20 U.S.C. 1001 )) that— are accredited by the Accreditation Board for Engineering and Technology; and are located within the producing State; or for any other purpose that enhances coastal communities, as determined by the Governor of the producing State. In this subparagraph, the term coastal town means an economic and residential center that is not more than 20 miles from the coast of the producing State. Amounts made available under paragraph (2)(B) shall— be made available, without further appropriation, in accordance with this subsection; remain available until expended; be in addition to any amounts appropriated under— chapter 2003 of title 54, United States Code; any other provision of this Act; and any other provision of law; and be made available during the fiscal year immediately following the fiscal year in which such amounts were received. .
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Sec. 202
Disposition of revenue from oil and gas leasing on the Outer Continental Shelf to Atlantic States and Alaska
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