Alaska Outer Continental Shelf Lease Sale Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Alaska Outer Continental Shelf Lease 
Sale Act''.

SEC. 2. AUTHORIZATION OF BEAUFORT AND COOK INLET LEASE SALES.

    Beginning in fiscal year 2016 and each fiscal year thereafter, the 
Secretary shall conduct under the Outer Continental Shelf Lands Act (43 
U.S.C. 1331 et seq.) 1 or more oil and gas lease sales in--
            (1) the Cook Inlet Planning Area; and
            (2) the portion of the Beaufort Planning Area located 
        within 3 nautical miles of the seaward boundary of Alaska.

SEC. 3. LEASE TERMS OF CERTAIN CHUKCHI AND BEAUFORT LEASES.

    (a) In General.--Section 8(b)(2) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1337(b)(2)) is amended--
            (1) in subparagraph (A), by striking ``or'' at the end;
            (2) in subparagraph (B), by striking ``;'' and inserting 
        ``; or''; and
            (3) by adding at the end the following:
                    ``(C) in the case of an oil and gas lease in the 
                portion of the Beaufort Planning Area or Chukchi 
                Planning Area that is beyond 3 nautical miles of the 
                seaward boundary of the State of Alaska, 20 years;''.
    (b) Extension of Existing Leases.--
            (1) In general.--The Secretary, with the consent of the 
        holder of a covered lease described in paragraph (2), shall 
        extend the initial term of the covered lease to 20 years.
            (2) Description of covered lease.--A covered lease referred 
        to in paragraph (1) is a lease for oil and gas production in 
        effect on the date of enactment of this Act that was issued 
        under section 8 of the Outer Continental Shelf Lands Act (43 
        U.S.C. 1337) for a portion of the Beaufort Planning Area or 
        Chukchi Planning Area that is beyond 3 nautical miles of the 
        seaward boundary of the State.

SEC. 4. DISTRIBUTION OF REVENUE TO ALASKA.

    Section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338) 
is amended--
            (1) by striking ``All rentals,'' and inserting the 
        following:
    ``(a) In General.--Except as provided in subsection (b), all 
rentals,''; and
            (2) by adding at the end the following:
    ``(b) Distribution of Revenue to Alaska.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Coastal political subdivision.--The term 
                `coastal political subdivision' means a county-
                equivalent subdivision of the State--
                            ``(i) all or part of which lies within the 
                        coastal zone of the State (as defined in 
                        section 304 of the Coastal Zone Management Act 
                        of 1972 (16 U.S.C. 1453)); and
                            ``(ii)(I) the closest point of which is not 
                        more than 200 nautical miles from the 
                        geographical center of any leased tract in the 
                        Alaska outer Continental Shelf region; or
                            ``(II)(aa) the closest point of which is 
                        more than 200 nautical miles from the 
                        geographical center of a leased tract in the 
                        Alaska outer Continental Shelf region; and
                            ``(bb) that is determined by the State to 
                        be a significant staging area for oil and gas 
                        servicing, supply vessels, operations, 
                        suppliers, or workers.
                    ``(B) Institution of higher education.--The term 
                `institution of higher education' has the meaning given 
                the term in section 102 of the Higher Education Act of 
                1965 (20 U.S.C. 1002).
                    ``(C) Qualified revenues.--
                            ``(i) In general.--The term `qualified 
                        revenues' means all revenues derived from all 
                        rentals, royalties, bonus bids, and other sums 
                        due and payable to the United States from 
                        energy development in the Alaska outer 
                        Continental Shelf region.
                            ``(ii) Exclusions.--The term `qualified 
                        revenues' does not include revenues generated 
                        from leases subject to section 8(g).
                    ``(D) State.--The term `State' means the State of 
                Alaska.
                    ``(E) Workforce investment board.--The term 
                `workforce investment board' means a State or local 
                workforce investment board established under subtitle B 
                of title I of the Workforce Investment Act of 1998 (29 
                U.S.C. 2811 et seq.).
            ``(2) Fiscal years 2016-2026.--For each of fiscal years 
        2016 through 2026, the Secretary shall deposit--
                    ``(A) 50 percent of qualified revenues in the 
                general fund of the Treasury;
                    ``(B) 27.5 percent of qualified revenues in the 
                Treasury, to be used for deficit reduction;
                    ``(C) 7.5 percent of qualified revenues in a 
                special account in the Treasury, to be distributed by 
                the Secretary to the State;
                    ``(D) 7.5 percent of qualified revenues in a 
                special account in the Treasury, to be distributed by 
                the Secretary to coastal political subdivisions;
                    ``(E) 2.5 percent of qualified revenues in a 
                special account in the Treasury, to be used to carry 
                out the North Slope Science Initiative established 
                under section 6(a)(1) of the Alaska Outer Continental 
                Shelf Lease Sale Act;
                    ``(F) 2.5 percent of qualified revenues in a 
                special account in the Treasury, to be used by the 
                Secretary to provide grants on a competitive basis to 
                eligible institutions of higher education and workforce 
                investment boards in the State to establish and 
                providing funding for--
                            ``(i) programs to ensure an adequately 
                        skilled workforce to construct, operate, or 
                        maintain oil or gas pipelines; or
                            ``(ii) programs to ensure an adequately 
                        skilled workforce to operate, maintain, and 
                        perform all environmental processes relating to 
                        existing or future oil and gas infrastructure; 
                        and
                    ``(G) 2.5 percent of qualified revenues in a 
                special account in the Treasury to provide financial 
                assistance for--
                            ``(i) offshore leasing and development 
                        programs in the State; and
                            ``(ii) the development of rights-of-way for 
                        pipelines to transport oil or gas produced 
                        offshore through land under the jurisdiction of 
                        the Secretary in the State.
            ``(3) Subsequent fiscal years.--For fiscal year 2027 and 
        each subsequent fiscal year, the Secretary shall deposit--
                    ``(A) 50 percent of qualified revenues in general 
                fund of the Treasury;
                    ``(B) 30 percent of qualified revenues in a special 
                account in the Treasury, to be distributed by the 
                Secretary to the State;
                    ``(C) 12.5 percent of qualified revenues in the 
                Treasury, to be used for low-income home energy 
                assistance, weatherization programs, and infrastructure 
                in the Arctic; and
                    ``(D) 7.5 in a special account in the Treasury, to 
                be distributed by the Secretary to coastal political 
                subdivisions.
            ``(4) Allocation among coastal political subdivisions.--Of 
        the amount paid by the Secretary to coastal political 
        subdivisions under paragraph (2)(D) or (3)(D)--
                    ``(A) 90 percent shall be allocated in amounts 
                (based on a formula established by the Secretary by 
                regulation) that are inversely proportional to the 
                respective distances between the point in each coastal 
                political subdivision that is closest to the geographic 
                center of the applicable leased tract and the 
                geographic center of the leased tract; and
                    ``(B) 10 percent shall be divided equally among 
                each coastal political subdivision that--
                            ``(i) is more than 200 nautical miles from 
                        the geographic center of a leased tract; and
                            ``(ii) the State of Alaska determines to be 
                        a significant staging area for oil and gas 
                        servicing, supply vessels, operations, 
                        suppliers, or workers.
            ``(5) Timing.--The amounts required to be deposited under 
        paragraphs (2) and (3) for the applicable fiscal year shall be 
        made available in accordance with those paragraphs during the 
        fiscal year immediately following the applicable fiscal year.
            ``(6) Administration.--Amounts made available under 
        paragraphs (2) and (3) shall--
                    ``(A) be made available, without further 
                appropriation, in accordance with this subsection;
                    ``(B) remain available until expended; and
                    ``(C) be in addition to any amounts appropriated 
                under any other provision of law.''.

SEC. 5. INCLUSION OF BEAUFORT AND CHUKCHI LEASE SALES IN 5-YEAR LEASING 
              PROGRAMS.

    Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1344) is amended by adding at the end the following:
    ``(i) Inclusion of Certain Lease Sales.--The Secretary shall 
include in any leasing program prepared in accordance with this section 
provisions for the conduct of at least 3 lease sales in each of the 
Beaufort Planning Area and the Chukchi Planning Area during the term of 
the leasing program.''.

SEC. 6. NORTH SLOPE SCIENCE INITIATIVE.

    Section 348 of the Energy Policy Act of 2005 (42 U.S.C. 15906) is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by inserting ``(referred to 
                in this section as the `Secretary')'' after ``Secretary 
                of the Interior''; and
                    (B) in paragraph (2), by inserting ``(including the 
                Beaufort and Chukchi seas)'' after ``North Slope of 
                Alaska'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by inserting ``(including the 
                Beaufort and Chukchi seas)'' after ``North Slope''; and
                    (B) in paragraph (2), by striking ``develop an 
                understanding of'' and inserting ``identify''; and
            (3) in subsection (c)(2), by inserting ``the Northwest 
        Arctic Borough, the NANA Regional Corporation,'' after ``Arctic 
        Slope Regional Corporation,''.

Summary: Alaska Outer Continental Shelf Lease Sale Act This bill requires the Department of the Interior to conduct oil and gas lease sales in the Cook Inlet Planning Area, and in the portion of the Beaufort Planning Area located within three nautical miles of the seaward boundary of Alaska. Oil and gas leases under the Outer Continental Shelf Lands Act shall have an initial 20-year lease period if they are located in the portion of the Beaufort Planning Area or Chukchi Planning Area beyond three nautical miles of the seaward boundary of the State of Alaska. The bill establishes, for FY2016-FY2026, a scheme for revenue allocation between the Treasury and the state of Alaska for specified purposes, including workforce development relating to oil and gas infrastructure and, for FY2027 and beyond, certain related activities of coastal political subdivisions. Interior must also include in any leasing program at least three lease sales in each of the Beaufort Planning Area and the Chukchi Planning Area. The North Slope Science Initiative under the Energy Policy Act of 2005 shall now include the Beaufort and Chukchi Seas. Interior must enter into cooperative agreements with the Northwest Arctic Borough and the NANA Regional Corporation to coordinate efforts, share resources, and fund projects.