Alaska Offshore Parity Act
This bill requires the Department of the Treasury to share more revenues derived from energy and mineral development in the Alaska Outer Continental Shelf (OCS) region with Alaska and its coastal political subdivisions. Currently, only revenue generated by certain nearshore areas of the OCS is shared with Alaska. The bill requires Treasury to share a specified portion of revenue derived from all areas in the Alaska OCS region. Alaska may use the funding from such revenue for coastal protection, coastal infrastructure, systems to reduce energy costs and greenhouse gas emissions, programs at institutions of higher education, and other related purposes.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 620 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
1st Session
S. 620
To provide for the distribution of certain outer Continental Shelf
revenues to the State of Alaska, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 2, 2023
Ms. Murkowski (for herself and Mr. Sullivan) introduced the following
bill; which was read twice and referred to the Committee on Energy and
Natural Resources
_______________________________________________________________________
A BILL
To provide for the distribution of certain outer Continental Shelf
revenues to the State of Alaska, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Alaska Offshore Parity Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Coastal political subdivision.--The term ``coastal
political subdivision'' means--
(A) a county-equivalent subdivision of the State--
(i) all or part of which lies within the
coastal zone (as defined in section 304 of the
Coastal Zone Management Act of 1972 (16 U.S.C.
1453)) of the State; and
(ii) the closest coastal point of which is
not more than 200 nautical miles from the
geographical center of any leased tract in the
Alaska outer Continental Shelf region; and
(B) a municipal subdivision of the State that is
determined by the State to be a significant staging
area for oil and gas servicing, supply vessels,
operations, suppliers, or workers.
(2) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 102 of the Higher Education Act of 1965 (20
U.S.C. 1002).
(3) Qualified revenues.--
(A) In general.--The term ``qualified revenues''
means all revenues derived from all rentals, royalties,
bonus bids, and other sums due and payable to the
United States from energy development in the Alaska
outer Continental Shelf region.
(B) Exclusions.--The term ``qualified revenues''
does not include--
(i) revenues generated from leases subject
to section 8(g) of the Outer Continental Shelf
Lands Act (43 U.S.C. 1337(g)); or
(ii) revenues from the forfeiture of a bond
or other surety securing obligations other than
royalties, civil penalties, or royalties taken
by the Secretary in-kind and not sold.
(4) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(5) State.--The term ``State'' means the State of Alaska.
SEC. 3. DISPOSITION OF QUALIFIED REVENUES IN ALASKA.
(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 fiscal year 2024 and each fiscal year thereafter, the
Secretary of the Treasury shall deposit--
(1) 50 percent of qualified revenues in the general fund of
the Treasury;
(2) 30 percent of qualified revenues in a special account
in the Treasury, to be distributed by the Secretary to the
State;
(3) 7.5 percent of qualified revenues in a special account
in the Treasury, to be distributed by the Secretary to coastal
political subdivisions; and
(4) 12.5 percent of qualified revenues in the National
Oceans and Coastal Security Fund established under section
904(a) of the National Oceans and Coastal Security Act (16
U.S.C. 7503(a)).
(b) Allocation Among Coastal Political Subdivisions.--Of the amount
paid by the Secretary to coastal political subdivisions under
subsection (a)(3)--
(1) 90 percent shall be allocated among costal political
subdivisions described in section 2(1)(A) in amounts (based on
a formula established by the Secretary by regulation) that are
inversely proportional to the respective distances between the
point in each coastal political subdivision that is closest to
the geographic center of the applicable leased tract and not
more than 200 miles from the geographic center of the leased
tract; and
(2) 10 percent shall be divided equally among each coastal
political subdivision described in section 2(1)(B).
(c) Timing.--The amounts required to be deposited under subsection
(a) for the applicable fiscal year shall be made available in
accordance with that subsection during the fiscal year immediately
following the applicable fiscal year.
(d) Authorized Uses.--
(1) In general.--Subject to paragraph (2), the State shall
use all amounts received under subsection (a)(2) in accordance
with all applicable Federal and State laws, for 1 or more of
the following purposes:
(A) Projects and activities for the purposes of
coastal protection, conservation, and restoration,
including onshore infrastructure and relocation of
communities directly affected by coastal erosion,
melting permafrost, or climate change-related losses.
(B) Mitigation of damage to fish, wildlife, or
natural resources.
(C) Mitigation of the impact of outer Continental
Shelf activities through the funding of onshore
infrastructure projects and related rights-of-way.
(D) Adaptation planning, vulnerability assessments,
and emergency preparedness assistance to build healthy
and resilient communities.
(E) Installation and operation of energy systems to
reduce energy costs and greenhouse gas emissions
compared to systems in use as of the date of enactment
of this Act.
(F) Programs at institutions of higher education in
the State.
(G) Other purposes, as determined by the Governor
of the State, with approval from the State legislature.
(H) Planning assistance and the administrative
costs of complying with this section.
(2) Limitation.--Not more than 3 percent of amounts
received by the State under subsection (a)(2) may be used for
the purposes described in paragraph (1)(H).
(e) Administration.--Amounts made available under paragraphs (2)
and (3) of subsection (a) 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 any
other provision of law.
(f) Reporting Requirement for Fiscal Year 2025 and Thereafter.--
(1) In general.--Beginning with fiscal year 2025, not later
than 180 days after the end of each fiscal year in which the
State receives amounts under subsection (a)(2), the State shall
submit to the Secretary a report that describes the use of the
amounts by the State during the preceding fiscal year covered
by the report.
(2) Public availability.--On receipt of a report required
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 the State 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
State under subsection (a)(2) 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) the name and description of the project;
(B) the amount received under subsection (a)(2)
that is allocated to the project; and
(C) a description of how each project is consistent
with the authorized uses under subsection (d).
(5) Clarification.--Nothing in this subsection--
(A) requires or provides authority for the
Secretary to delay, modify, or withhold payment under
this subsection, 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 the State to obtain the approval of,
or review by, the Secretary prior to spending funds
disbursed under subsection (a)(2);
(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 the State to obligate or expend funds
disbursed under subsection (a)(2) by a certain date; or
(G) requires or provides authority for the
Secretary to request the State to return unobligated
funds.
<all>
Introduced in Senate
Read twice and referred to the Committee on Energy and Natural Resources.
Committee on Energy and Natural Resources. Ordered to be reported without amendment favorably.
Committee on Energy and Natural Resources. Reported by Senator Manchin without amendment. Without written report.
Committee on Energy and Natural Resources. Reported by Senator Manchin without amendment. Without written report.
Placed on Senate Legislative Calendar under General Orders. Calendar No. 578.
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