II 

Calendar No. 430 

116TH CONGRESS 

2D 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, Mr. SULLIVAN, and Mrs. HYDE-SMITH) introduced the following 

bill; which was read twice and referred to the Committee on Energy and 

Natural Resources 

FEBRUARY 25, 2020 

Reported by Ms. MURKOWSKI, with amendments 

[Omit the part struck through and insert the part printed in italic] 

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. 


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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Conservation Of America’s Shoreline Terrain and Aquat6 ic Life Act’’ or the ‘‘COASTAL Act’’. 

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

8 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. 

TITLE III—STATE MINERAL REVENUE PROTECTION 

Sec. 301. Elimination of administrative fee. 

9 TITLE I—GULF OF MEXICO 

10 OUTER CONTINENTAL SHELF 

11 REVENUES 

12 SEC. 101. DEFINITION OF QUALIFIED OUTER CONTINENTAL 

13 SHELF REVENUES. 

14 Section 102(9)(A) of the Gulf of Mexico Energy Se15 curity Act of 2006 (43 U.S.C. 1331 note; Public Law 

16 109–432) is amended— 

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

18 semicolon; 


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1 (2) in clause (ii)— 

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

3 by striking ‘‘fiscal year 2017 and each fiscal 

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

5 years 2017 through 2019’’; and 

6 (B) in subclause (III), by striking the pe7 riod and inserting ‘‘; and’’; and 

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

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

10 and each fiscal year thereafter, all rentals, 

11 royalties, bonus bids, and other sums due 

12 and payable to the United States received 

13 on or after October 1, 2019, from leases 

14 entered into on or after October 1, 2000 

15 for— 

16 ‘‘(I) the 181 Area; 

17 ‘‘(II) the 181 South Area; and 

18 ‘‘(III) the 2002–2007 planning 

19 area.’’. 

20 SEC. 102. DISPOSITION OF QUALIFIED OUTER CONTI21 NENTAL SHELF REVENUES. 

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

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

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


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1 (1) in paragraph (1), by striking ‘‘50’’ and in2 serting ‘‘37.5’’; and 

3 (2) in paragraph (2)— 

4 (A) in the matter preceding subparagraph 

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

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

7 and inserting ‘‘80’’; and 

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

9 and inserting ‘‘20’’. 

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

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

12 1331 note; Public Law 109–432) is amended by adding 

13 at the end the following: 

14 ‘‘(F) Planning, engineering, design, con15 struction, operations, and maintenance of 1 or 

16 more projects that are specifically authorized by 

17 any other Act for ecosystem restoration, hurri18 cane protection, or flood damage prevention.’’. 

19 (c) LIMITATIONS ON AMOUNT OF DISTRIBUTED

20 QUALIFIED OUTER CONTINENTAL SHELF REVENUES.— 

21 (b) LIMITATIONS ON AMOUNT OF DISTRIBUTED QUALI22 FIED OUTER CONTINENTAL SHELF REVENUES.—Section 

23 105(f) of the Gulf of Mexico Energy Security Act of 2006 

24 (43 U.S.C. 1331 note; Public Law 109–432) is amend25 ed— 


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1 (1) in paragraph (1)— 

2 (A) by striking subparagraphs (B) and 

3 (C); 

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

5 semicolon at the end and inserting a period; 

6 and 

7 (C) beginning in the matter preceding sub8 paragraph (A), by striking ‘‘exceed—’’ and all 

9 that follows through ‘‘for each’’ in subpara10 graph (A) and inserting the following: ‘‘exceed 

11 $500,000,000 for each’’; and 

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

13 inserting ‘‘2019’’. 

14 SEC. 103. EXEMPTION OF CERTAIN PAYMENTS FROM SE15 QUESTRATION. 

16 (a) IN GENERAL.—Section 255(g)(1)(A) of the Bal17 anced Budget and Emergency Deficit Control Act of 1985 

18 (2 U.S.C. 905(g)(1)(A)) is amended by inserting after 

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

20 1–651).’’ the following: 

21 ‘‘Payments to States pursuant to section 

22 105(a)(2)(A) of the Gulf of Mexico Energy Se23 curity Act of 2006 (Public Law 109–432; 43 

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


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

2 section shall apply to any sequestration order issued under 

3 the Balanced Budget and Emergency Deficit Control Act 

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

5 enactment of this Act. 

6 TITLE II—ALASKA OUTER CONTI7 NENTAL SHELF REVENUES 

8 SEC. 201. DEFINITIONS. 

9 In this title: 

10 (1) COASTAL POLITICAL SUBDIVISION.—The 

11 term ‘‘coastal political subdivision’’ means— 

12 (A) a county-equivalent subdivision of the 

13 State— 

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

15 coastal zone (as defined in section 304 of 

16 the Coastal Zone Management Act of 1972 

17 (16 U.S.C. 1453)) of the State; and 

18 (ii) the closest coastal point of which 

19 is not more than 200 nautical miles from 

20 the geographical center of any leased tract 

21 in the Alaska outer Continental Shelf re22 gion; and 

23 (B) a municipal subdivision of the State 

24 that is determined by the State to be a signifiVerDate Sep 11 2014 22:15 Feb 25, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S2418.RS S2418

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1 cant staging area for oil and gas servicing, sup2 ply vessels, operations, suppliers, or workers. 

3 (2) INSTITUTION OF HIGHER EDUCATION.—The 

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

5 meaning given the term in section 102 of the Higher 

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

7 (3) QUALIFIED REVENUES.— 

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

9 revenues’’ means all revenues derived from all 

10 rentals, royalties, bonus bids, and other sums 

11 due and payable to the United States from en12 ergy development in the Alaska outer Conti13 nental Shelf region. 

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

15 revenues’’ does not include— 

16 (i) revenues generated from leases 

17 subject to section 8(g) of the Outer Conti18 nental Shelf Lands Act (43 U.S.C. 

19 1337(g)); or 

20 (ii) revenues from the forfeiture of a 

21 bond or other surety securing obligations 

22 other than royalties, civil penalties, or roy23 alties taken by the Secretary in-kind and 

24 not sold. 


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

2 the Secretary of the Interior. 

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

4 of Alaska. 

5 SEC. 202. DISPOSITION OF QUALIFIED REVENUES IN ALAS6 KA. 

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

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

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

10 year 2021 and each fiscal year thereafter, the Secretary 

11 of the Treasury shall deposit— 

12 (1) 50 percent of qualified revenues in the gen13 eral fund of the Treasury; 

14 (2) 42.5 percent of qualified revenues in a spe15 cial account in the Treasury, to be distributed by the 

16 Secretary to the State; and 

17 (3) 7.5 percent of qualified revenues in a spe18 cial account in the Treasury, to be distributed by the 

19 Secretary to coastal political subdivisions. 

20 (b) ALLOCATION AMONG COASTAL POLITICAL SUB21 DIVISIONS.—Of the amount paid by the Secretary to 

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

23 (1) 90 percent shall be allocated among costal 

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

25 in amounts (based on a formula established by the 


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1 Secretary by regulation) that are inversely propor2 tional to the respective distances between the point 

3 in each coastal political subdivision that is closest to 

4 the geographic center of the applicable leased tract 

5 and not more than 200 miles from the geographic 

6 center of the leased tract; and 

7 (2) 10 percent shall be divided equally among 

8 each coastal political subdivision described in section 

9 201(1)(B). 

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

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

12 be made available in accordance with that subsection dur13 ing the fiscal year immediately following the applicable fis14 cal year. 

15 (d) AUTHORIZED USES.— 

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

17 the State shall use all amounts received under sub18 section (a)(2) in accordance with all applicable Fed19 eral and State laws, for 1 or more of the following 

20 purposes: 

21 (A) Projects and activities for the purposes 

22 of coastal protection, conservation, and restora23 tion, including onshore infrastructure and relo24 cation of communities directly affected by 


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1 coastal erosion, melting permafrost, or climate 

2 change-related losses. 

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

4 or natural resources. 

5 (C) Mitigation of the impact of outer Con6 tinental Shelf activities through the funding of 

7 onshore infrastructure projects and related 

8 rights-of-way. 

9 (D) Adaptation planning, vulnerability as10 sessments, and emergency preparedness assist11 ance to build healthy and resilient communities. 

12 (E) Installation and operation of energy 

13 systems to reduce energy costs and greenhouse 

14 gas emissions compared to systems in use as of 

15 the date of enactment of this Act. 

16 (F) Programs at institutions of higher edu17 cation in the State. 

18 (G) Other purposes, as determined by the 

19 Governor of the State, with approval from the 

20 State legislature. 

21 (H) Planning assistance and the adminis22 trative costs of complying with this section. 

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

24 amounts received by the State under subsection 


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

2 paragraph (1)(H). 

3 (e) ADMINISTRATION.—Amounts made available 

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

5 (1) be made available, without further appro6 priation, in accordance with this section; 

7 (2) remain available until expended; and 

8 (3) be in addition to any amounts appropriated 

9 under any other provision of law. 

10 TITLE III—STATE MINERAL 

11 REVENUE PROTECTION 

12 SEC. 301. ELIMINATION OF ADMINISTRATIVE FEE. 

13 (a) IN GENERAL.—Section 35 of the Mineral Leasing 

14 Act (30 U.S.C. 191) is amended— 

15 (1) in subsection (a), in the first sentence, by 

16 striking ‘‘, subject to the provisions of subsection (b),’’; 

17 (2) by striking subsection (b); 

18 (3) by redesignating subsections (c) and (d) as 

19 subsections (b) and (c), respectively; 

20 (4) in subsection (b)(3)(B)(ii) (as so redesig21 nated), by striking ‘‘subsection (d)’’ and inserting 

22 ‘‘subsection (c)’’; and 

23 (5) in subsection (c)(3)(A)(ii) (as so redesig24 nated), by striking ‘‘subsection (c)(2)(B)’’ and insert25 ing ‘‘subsection (b)(2)(B)’’. 


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1 (b) CONFORMING AMENDMENTS.— 

2 (1) Section 6(a) of the Mineral Leasing Act for 

3 Acquired Lands (30 U.S.C. 355(a)) is amended— 

4 (A) in the first sentence, by striking ‘‘Sub5 ject to the provisions of section 35(b) of the Min6 eral Leasing Act (30 U.S.C. 191(b)), all’’ and in7 serting ‘‘All’’; and 

8 (B) in the second sentence, by striking ‘‘of 

9 the Act of February 25, 1920 (41 Stat. 450; 30 

10 U.S.C. 191)’’ and inserting ‘‘of the Mineral 

11 Leasing Act (30 U.S.C. 191)’’. 

12 (2) Section 20(a) of the Geothermal Steam Act 

13 of 1970 (30 U.S.C. 1019(a)) is amended in the matter 

14 preceding paragraph (1), in the second sentence, by 

15 striking ‘‘the provisions of subsection (b) of section 35 

16 of the Mineral Leasing Act (30 U.S.C. 191(b)) and’’. 

17 (3) Section 205(f) of the Federal Oil and Gas 

18 Royalty Management Act of 1982 (30 U.S.C. 1735(f)) 

19 is amended by striking the fourth, fifth, and sixth 

20 sentences. 


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Calendar No. 430 

116TH CONGRESS 

2D SESSION S. 2418 

A BILL 

To amend the Gulf of Mexico Energy Security Act 

to the State of Alaska, and for other purposes. tion of certain outer Continental Shelf revenues from sequestration, to provide for the distribuempt State and county payments under that Act nental Shelf revenues under that Act and to extion and authorized uses of qualified outer Contiof 2006 to modify a definition and the disposiFEBRUARY 25, 2020 

Reported with amendments 


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