II 

116TH CONGRESS 

1ST SESSION S. 2418 

To amend the Gulf of Mexico Energy Security Act of 2006 to modify a 

definition and the disposition and authorized uses of qualified outer 

Continental Shelf revenues under that Act and to exempt State and 

county payments under that Act from sequestration, 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 

AUGUST 1, 2019 

Mr. CASSIDY (for himself, Ms. MURKOWSKI, Mr. KENNEDY, Mr. WICKER, Mr. 

JONES, and Mr. SULLIVAN) introduced the following bill; which was read 

twice and referred to the Committee on Energy and Natural Resources 

A BILL 

To amend the Gulf of Mexico Energy Security Act of 2006 

to modify a definition and the disposition and authorized 

uses of qualified outer Continental Shelf revenues under 

that Act and to exempt State and county payments 

under that Act from sequestration, to provide for the 

distribution of certain outer Continental Shelf revenues 

to the State of Alaska, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Conservation Of America’s Shoreline Terrain and Aquat4 ic Life Act’’ or the ‘‘COASTAL Act’’. 

5 (b) TABLE OF CONTENTS.—The table of contents for 

6 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—GULF OF MEXICO OUTER CONTINENTAL SHELF 

REVENUES 

Sec. 101. Definition of qualified outer Continental Shelf revenues. 

Sec. 102. Disposition of qualified outer Continental Shelf revenues. 

Sec. 103. Exemption of certain payments from sequestration. 

TITLE II—ALASKA OUTER CONTINENTAL SHELF REVENUES 

Sec. 201. Definitions. 

Sec. 202. Disposition of qualified revenues in Alaska. 

7 TITLE I—GULF OF MEXICO 

8 OUTER CONTINENTAL SHELF 

9 REVENUES 

10 SEC. 101. DEFINITION OF QUALIFIED OUTER CONTINENTAL 

11 SHELF REVENUES. 

12 Section 102(9)(A) of the Gulf of Mexico Energy Se13 curity Act of 2006 (43 U.S.C. 1331 note; Public Law 

14 109–432) is amended— 

15 (1) in clause (i)(II), by striking ‘‘and’’ after the 

16 semicolon; 

17 (2) in clause (ii)— 

18 (A) in the matter preceding subclause (I), 

19 by striking ‘‘fiscal year 2017 and each fiscal 


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1 year thereafter’’ and inserting ‘‘each of fiscal 

2 years 2017 through 2019’’; and 

3 (B) in subclause (III), by striking the pe4 riod and inserting ‘‘; and’’; and 

5 (3) by adding at the end the following: 

6 ‘‘(iii) in the case of fiscal year 2020 

7 and each fiscal year thereafter, all rentals, 

8 royalties, bonus bids, and other sums due 

9 and payable to the United States received 

10 on or after October 1, 2019, from leases 

11 entered into on or after October 1, 2000 

12 for— 

13 ‘‘(I) the 181 Area; 

14 ‘‘(II) the 181 South Area; and 

15 ‘‘(III) the 2002–2007 planning 

16 area.’’. 

17 SEC. 102. DISPOSITION OF QUALIFIED OUTER CONTI18 NENTAL SHELF REVENUES. 

19 (a) IN GENERAL.—Section 105(a) of the Gulf of 

20 Mexico Energy Security Act of 2006 (43 U.S.C. 1331 

21 note; Public Law 109–432) is amended— 

22 (1) in paragraph (1), by striking ‘‘50’’ and in23 serting ‘‘37.5’’; and 

24 (2) in paragraph (2)— 


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1 (A) in the matter preceding subparagraph 

2 (A), by striking ‘‘50’’ and inserting ‘‘62.5’’; 

3 (B) in subparagraph (A), by striking ‘‘75’’ 

4 and inserting ‘‘80’’; and 

5 (C) in subparagraph (B), by striking ‘‘25’’ 

6 and inserting ‘‘20’’. 

7 (b) AUTHORIZED USES.—Section 105(d)(1) of the 

8 Gulf of Mexico Energy Security Act of 2006 (43 U.S.C. 

9 1331 note; Public Law 109–432) is amended by adding 

10 at the end the following: 

11 ‘‘(F) Planning, engineering, design, con12 struction, operations, and maintenance of 1 or 

13 more projects that are specifically authorized by 

14 any other Act for ecosystem restoration, hurri15 cane protection, or flood damage prevention.’’. 

16 (c) LIMITATIONS ON AMOUNT OF DISTRIBUTED

17 QUALIFIED OUTER CONTINENTAL SHELF REVENUES.— 

18 Section 105(f) of the Gulf of Mexico Energy Security Act 

19 of 2006 (43 U.S.C. 1331 note; Public Law 109–432) is 

20 amended— 

21 (1) in paragraph (1)— 

22 (A) by striking subparagraphs (B) and 

23 (C); 


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1 (B) in subparagraph (A), by striking the 

2 semicolon at the end and inserting a period; 

3 and 

4 (C) beginning in the matter preceding sub5 paragraph (A), by striking ‘‘exceed—’’ and all 

6 that follows through ‘‘for each’’ in subpara7 graph (A) and inserting the following: ‘‘exceed 

8 $500,000,000 for each’’; and 

9 (2) in paragraph (2), by striking ‘‘2055’’ and 

10 inserting ‘‘2019’’. 

11 SEC. 103. EXEMPTION OF CERTAIN PAYMENTS FROM SE12 QUESTRATION. 

13 (a) IN GENERAL.—Section 255(g)(1)(A) of the Bal14 anced Budget and Emergency Deficit Control Act of 1985 

15 (2 U.S.C. 905(g)(1)(A)) is amended by inserting after 

16 ‘‘Payments to Social Security Trust Funds (28–0404–0– 

17 1–651).’’ the following: 

18 ‘‘Payments to States pursuant to section 

19 105(a)(2)(A) of the Gulf of Mexico Energy Se20 curity Act of 2006 (Public Law 109–432; 43 

21 U.S.C. 1331 note) (014–5535–0–2–302).’’. 

22 (b) APPLICABILITY.—The amendment made by this 

23 section shall apply to any sequestration order issued under 

24 the Balanced Budget and Emergency Deficit Control Act 


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1 of 1985 (2 U.S.C. 900 et seq.) on or after the date of 

2 enactment of this Act. 

3 TITLE II—ALASKA OUTER CONTI4 NENTAL SHELF REVENUES 

5 SEC. 201. DEFINITIONS. 

6 In this title: 

7 (1) COASTAL POLITICAL SUBDIVISION.—The 

8 term ‘‘coastal political subdivision’’ means— 

9 (A) a county-equivalent subdivision of the 

10 State— 

11 (i) all or part of which lies within the 

12 coastal zone (as defined in section 304 of 

13 the Coastal Zone Management Act of 1972 

14 (16 U.S.C. 1453)) of the State; and 

15 (ii) the closest coastal point of which 

16 is not more than 200 nautical miles from 

17 the geographical center of any leased tract 

18 in the Alaska outer Continental Shelf re19 gion; and 

20 (B) a municipal subdivision of the State 

21 that is determined by the State to be a signifi22 cant staging area for oil and gas servicing, sup23 ply vessels, operations, suppliers, or workers. 

24 (2) INSTITUTION OF HIGHER EDUCATION.—The 

25 term ‘‘institution of higher education’’ has the 


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1 meaning given the term in section 102 of the Higher 

2 Education Act of 1965 (20 U.S.C. 1002). 

3 (3) QUALIFIED REVENUES.— 

4 (A) IN GENERAL.—The term ‘‘qualified 

5 revenues’’ means all revenues derived from all 

6 rentals, royalties, bonus bids, and other sums 

7 due and payable to the United States from en8 ergy development in the Alaska outer Conti9 nental Shelf region. 

10 (B) EXCLUSIONS.—The term ‘‘qualified 

11 revenues’’ does not include— 

12 (i) revenues generated from leases 

13 subject to section 8(g) of the Outer Conti14 nental Shelf Lands Act (43 U.S.C. 

15 1337(g)); or 

16 (ii) revenues from the forfeiture of a 

17 bond or other surety securing obligations 

18 other than royalties, civil penalties, or roy19 alties taken by the Secretary in-kind and 

20 not sold. 

21 (4) SECRETARY.—The term ‘‘Secretary’’ means 

22 the Secretary of the Interior. 

23 (5) STATE.—The term ‘‘State’’ means the State 

24 of Alaska. 


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1 SEC. 202. DISPOSITION OF QUALIFIED REVENUES IN ALAS2 KA. 

3 (a) IN GENERAL.—Notwithstanding section 9 of the 

4 Outer Continental Shelf Lands Act (43 U.S.C. 1338) and 

5 subject to the other provisions of this section, for fiscal 

6 year 2021 and each fiscal year thereafter, the Secretary 

7 of the Treasury shall deposit— 

8 (1) 50 percent of qualified revenues in the gen9 eral fund of the Treasury; 

10 (2) 42.5 percent of qualified revenues in a spe11 cial account in the Treasury, to be distributed by the 

12 Secretary to the State; and 

13 (3) 7.5 percent of qualified revenues in a spe14 cial account in the Treasury, to be distributed by the 

15 Secretary to coastal political subdivisions. 

16 (b) ALLOCATION AMONG COASTAL POLITICAL SUB17 DIVISIONS.—Of the amount paid by the Secretary to 

18 coastal political subdivisions under subsection (a)(3)— 

19 (1) 90 percent shall be allocated among costal 

20 political subdivisions described in section 201(1)(A) 

21 in amounts (based on a formula established by the 

22 Secretary by regulation) that are inversely propor23 tional to the respective distances between the point 

24 in each coastal political subdivision that is closest to 

25 the geographic center of the applicable leased tract 


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1 and not more than 200 miles from the geographic 

2 center of the leased tract; and 

3 (2) 10 percent shall be divided equally among 

4 each coastal political subdivision described in section 

5 201(1)(B). 

6 (c) TIMING.—The amounts required to be deposited 

7 under subsection (a) for the applicable fiscal year shall 

8 be made available in accordance with that subsection dur9 ing the fiscal year immediately following the applicable fis10 cal year. 

11 (d) AUTHORIZED USES.— 

12 (1) IN GENERAL.—Subject to paragraph (2), 

13 the State shall use all amounts received under sub14 section (a)(2) in accordance with all applicable Fed15 eral and State laws, for 1 or more of the following 

16 purposes: 

17 (A) Projects and activities for the purposes 

18 of coastal protection, conservation, and restora19 tion, including onshore infrastructure and relo20 cation of communities directly affected by 

21 coastal erosion, melting permafrost, or climate 

22 change-related losses. 

23 (B) Mitigation of damage to fish, wildlife, 

24 or natural resources. 


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1 (C) Mitigation of the impact of outer Con2 tinental Shelf activities through the funding of 

3 onshore infrastructure projects and related 

4 rights-of-way. 

5 (D) Adaptation planning, vulnerability as6 sessments, and emergency preparedness assist7 ance to build healthy and resilient communities. 

8 (E) Installation and operation of energy 

9 systems to reduce energy costs and greenhouse 

10 gas emissions compared to systems in use as of 

11 the date of enactment of this Act. 

12 (F) Programs at institutions of higher edu13 cation in the State. 

14 (G) Other purposes, as determined by the 

15 Governor of the State, with approval from the 

16 State legislature. 

17 (H) Planning assistance and the adminis18 trative costs of complying with this section. 

19 (2) LIMITATION.—Not more than 3 percent of 

20 amounts received by the State under subsection 

21 (a)(2) may be used for the purposes described in 

22 paragraph (1)(H). 

23 (e) ADMINISTRATION.—Amounts made available 

24 under paragraphs (2) and (3) of subsection (a) shall— 


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1 (1) be made available, without further appro2 priation, in accordance with this section; 

3 (2) remain available until expended; and 

4 (3) be in addition to any amounts appropriated 

5 under any other provision of law. 

Æ 


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