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terms and conditions as are necessary to require that de-
velopment and production may occur only from offshore 
infrastructure in existence on the date of the enactment 
of this Act or from onshore-based, extended-reach drilling. 
SEC. 10204. ENVIRONMENTAL IMPACT STATEMENT RE-
QUIREMENT. 
(a) IN GENERAL.—For the purposes of this title, the 
Secretary of the Interior shall prepare a multisale environ-
mental impact statement under section 102 of the Na-
tional Environmental Policy Act of 1969 (42 U.S.C. 4332) 
for all lease sales required under this subtitle. 
(b) ACTIONS TO BE CONSIDERED.—Notwithstanding 
section 102 of the National Environmental Policy Act of 
1969 (42 U.S.C. 4332), in such statement— 
(1) the Secretary is not required to identify 
nonleasing alternative courses of action or to analyze 
the environmental effects of such alternative courses 
of action; and 
(2) the Secretary shall only— 
(A) identify a preferred action for leasing 
and not more than one alternative leasing pro-
posal; and 
(B) analyze the environmental effects and 
potential mitigation measures for such pre-
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ferred action and such alternative leasing pro-
posal. 
SEC. 10205. NATIONAL DEFENSE. 
(a) NATIONAL DEFENSE AREAS.—This title does not 
affect the existing authority of the Secretary of Defense, 
with the approval of the President, to designate national 
defense areas on the Outer Continental Shelf pursuant to 
section 12(d) of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1341(d)). 
(b) PROHIBITION ON CONFLICTS WITH MILITARY 
OPERATIONS.—No person may engage in any exploration, 
development, or production of oil or natural gas on the 
Outer Continental Shelf under a lease issued under this 
title that would conflict with any military operation, as 
determined in accordance with the Memorandum of Agree-
ment between the Department of Defense and the Depart-
ment of the Interior on Mutual Concerns on the Outer 
Continental Shelf signed July 20, 1983, and any revision 
or replacement for that agreement that is agreed to by 
the Secretary of Defense and the Secretary of the Interior 
after that date but before the date of issuance of the lease 
under which such exploration, development, or production 
is conducted. 
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SEC. 10206. EASTERN GULF OF MEXICO NOT INCLUDED. 
Nothing in this title affects restrictions on oil and gas 
leasing under the Gulf of Mexico Energy Security Act of 
2006 (title I of division C of Public Law 109–432; 43 
U.S.C. 1331 note). 
Subtitle C—Equitable Sharing of 
Outer Continental Shelf Revenues 
SEC. 10301. DISPOSITION OF OUTER CONTINENTAL SHELF 
REVENUES TO COASTAL STATES. 
(a) IN GENERAL.—Section 9 of the Outer Conti-
nental Shelf Lands Act (43 U.S.C. 1338) is amended— 
(1) in the existing text— 
(A) in the first sentence, by striking ‘‘All 
rentals,’’ and inserting the following: 
‘‘(c) DISPOSITION
OF
REVENUE
UNDER
OLD 
LEASES.—All rentals,’’; and 
(B) in subsection (c) (as designated by the 
amendment made by subparagraph (A) of this 
paragraph), by striking ‘‘for the period from 
June 5, 1950, to date, and thereafter’’ and in-
serting ‘‘in the period beginning June 5, 1950, 
and ending on the date of enactment of the 
Lowering Gasoline Prices to Fuel an America 
That Works Act of 2014’’; 
(2) by adding after subsection (c) (as so des-
ignated) the following: 
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‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) COASTAL
STATE.—The term ‘coastal 
State’ includes a territory of the United States. 
‘‘(2) NEW LEASING REVENUES.—The term ‘new 
leasing revenues’— 
‘‘(A) means amounts received by the 
United States as bonuses, rents, and royalties 
under leases for oil and gas, wind, tidal, or 
other energy exploration, development, and pro-
duction on new areas of the outer Continental 
Shelf that are authorized to be made available 
for leasing as a result of enactment of the Low-
ering Gasoline Prices to Fuel an America That 
Works Act of 2014 and leasing under that Act; 
and 
‘‘(B) does not include amounts received by 
the United States under any lease of an area lo-
cated in the boundaries of the Central Gulf of 
Mexico and Western Gulf of Mexico Outer Con-
tinental Shelf Planning Areas on the date of en-
actment of the Lowering Gasoline Prices to 
Fuel an America That Works Act of 2014, in-
cluding a lease issued before, on, or after such 
date of enactment.’’; and 
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(3) by inserting before subsection (c) (as so 
designated) the following: 
‘‘(a) PAYMENT
OF NEW LEASING REVENUES
TO 
COASTAL STATES.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), of the amount of new leasing revenues re-
ceived by the United States each fiscal year, 37.5 
percent shall be allocated and paid in accordance 
with subsection (b) to coastal States that are af-
fected States with respect to the leases under which 
those revenues are received by the United States. 
‘‘(2) PHASE-IN.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), paragraph (1) shall be ap-
plied— 
‘‘(i) with respect to new leasing reve-
nues under leases awarded under the first 
leasing program under section 18(a) that 
takes effect after the date of enactment of 
the Lowering Gasoline Prices to Fuel an 
America That Works Act of 2014, by sub-
stituting ‘12.5 percent’ for ‘37.5 percent’; 
and 
‘‘(ii) with respect to new leasing reve-
nues under leases awarded under the sec-
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ond leasing program under section 18(a) 
that takes effect after the date of enact-
ment of the Lowering Gasoline Prices to 
Fuel an America That Works Act of 2014, 
by substituting ‘25 percent’ for ‘37.5 per-
cent’. 
‘‘(B) EXEMPTED
LEASE
SALES.—This 
paragraph shall not apply with respect to any 
lease issued under subtitle B of the Lowering 
Gasoline Prices to Fuel an America That 
Works Act of 2014. 
‘‘(b) ALLOCATION OF PAYMENTS.— 
‘‘(1) IN GENERAL.—The amount of new leasing 
revenues received by the United States with respect 
to a leased tract that are required to be paid to 
coastal States in accordance with this subsection 
each fiscal year shall be allocated among and paid 
to coastal States that are within 200 miles of the 
leased tract, in amounts that are inversely propor-
tional to the respective distances between the point 
on the coastline of each such State that is closest to 
the geographic center of the lease tract, as deter-
mined by the Secretary. 
‘‘(2) MINIMUM AND MAXIMUM ALLOCATION.— 
The amount allocated to a coastal State under para-
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graph (1) each fiscal year with respect to a leased 
tract shall be— 
‘‘(A) in the case of a coastal State that is 
the nearest State to the geographic center of 
the leased tract, not less than 25 percent of the 
total amounts allocated with respect to the 
leased tract; 
‘‘(B) in the case of any other coastal State, 
not less than 10 percent, and not more than 15 
percent, of the total amounts allocated with re-
spect to the leased tract; and 
‘‘(C) in the case of a coastal State that is 
the only coastal State within 200 miles of a 
leased tract, 100 percent of the total amounts 
allocated with respect to the leased tract. 
‘‘(3) ADMINISTRATION.—Amounts allocated to 
a coastal State under this subsection— 
‘‘(A) shall be available to the coastal State 
without further appropriation; 
‘‘(B) shall remain available until expended; 
‘‘(C) shall be in addition to any other 
amounts available to the coastal State under 
this Act; and 
‘‘(D) shall be distributed in the fiscal year 
following receipt. 
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‘‘(4) USE OF FUNDS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), a coastal State may use 
funds allocated and paid to it under this sub-
section for any purpose as determined by the 
laws of that State. 
‘‘(B) RESTRICTION ON USE FOR MATCH-
ING.—Funds allocated and paid to a coastal 
State under this subsection may not be used as 
matching funds for any other Federal pro-
gram.’’. 
(b) LIMITATION ON APPLICATION.—This section and 
the amendment made by this section shall not affect the 
application of section 105 of the Gulf of Mexico Energy 
Security Act of 2006 (title I of division C of Public Law 
109–432; (43 U.S.C. 1331 note)), as in effect before the 
enactment of this Act, with respect to revenues received 
by the United States under oil and gas leases issued for 
tracts located in the Western and Central Gulf of Mexico 
Outer Continental Shelf Planning Areas, including such 
leases issued on or after the date of the enactment of this 
Act. 
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Subtitle D—Reorganization of Min-
erals Management Agencies of 
the Department of the Interior 
SEC. 10401. ESTABLISHMENT OF UNDER SECRETARY FOR 
ENERGY, LANDS, AND MINERALS AND ASSIST-
ANT SECRETARY OF OCEAN ENERGY AND 
SAFETY. 
There shall be in the Department of the Interior— 
(1) an Under Secretary for Energy, Lands, and 
Minerals, who shall— 
(A) be appointed by the President, by and 
with the advise and consent of the Senate; 
(B) report to the Secretary of the Interior 
or, if directed by the Secretary, to the Deputy 
Secretary of the Interior; 
(C) be paid at the rate payable for level III 
of the Executive Schedule; and 
(D) be responsible for— 
(i) the safe and responsible develop-
ment of our energy and mineral resources 
on Federal lands in appropriate accordance 
with United States energy demands; and 
(ii) ensuring multiple-use missions of 
the Department of the Interior that pro-
mote the safe and sustained development 
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of energy and minerals resources on public 
lands (as that term is defined in the Fed-
eral Land Policy and Management Act of 
1976 (43 U.S.C. 1701 et seq.)); 
(2) an Assistant Secretary of Ocean Energy 
and Safety, who shall— 
(A) be appointed by the President, by and 
with the advise and consent of the Senate; 
(B) report to the Under Secretary for En-
ergy, Lands, and Minerals; 
(C) be paid at the rate payable for level IV 
of the Executive Schedule; and 
(D) be responsible for ensuring safe and 
efficient development of energy and minerals on 
the Outer Continental Shelf of the United 
States; and 
(3) an Assistant Secretary of Land and Min-
erals Management, who shall— 
(A) be appointed by the President, by and 
with the advise and consent of the Senate; 
(B) report to the Under Secretary for En-
ergy, Lands, and Minerals; 
(C) be paid at the rate payable for level IV 
of the Executive Schedule; and 
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(D) be responsible for ensuring safe and 
efficient development of energy and minerals on 
public lands and other Federal onshore lands 
under the jurisdiction of the Department of the 
Interior, including implementation of the Min-
eral Leasing Act (30 U.S.C. 181 et seq.) and 
the Surface Mining Control and Reclamation 
Act (30 U.S.C. 1201 et seq.) and administra-
tion of the Office of Surface Mining. 
SEC. 10402. BUREAU OF OCEAN ENERGY. 
(a) ESTABLISHMENT.—There is established in the 
Department of the Interior a Bureau of Ocean Energy (re-
ferred to in this section as the ‘‘Bureau’’), which shall— 
(1) be headed by a Director of Ocean Energy 
(referred to in this section as the ‘‘Director’’); and 
(2) be administered under the direction of the 
Assistant Secretary of Ocean Energy and Safety. 
(b) DIRECTOR.— 
(1) APPOINTMENT.—The Director shall be ap-
pointed by the Secretary of the Interior. 
(2) COMPENSATION.—The Director shall be 
compensated at the rate provided for level V of the 
Executive Schedule under section 5316 of title 5, 
United States Code. 
(c) DUTIES.— 
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Executive Schedule under section 5316 of title 5, 
United States Code. 
(c) DUTIES.— 
(1) IN GENERAL.—The Secretary of the Inte-
rior shall carry out, through the Office, all functions, 
powers, and duties vested in the Secretary and relat-
ing to the administration of offshore royalty and rev-
enue management functions. 
(2) SPECIFIC
AUTHORITIES.—The Secretary 
shall carry out, through the Office, all functions, 
powers, and duties previously assigned to the Min-
erals Management Service (including the authority 
to develop, promulgate, and enforce regulations) re-
garding offshore royalty and revenue collection; roy-
alty and revenue distribution; auditing and compli-
ance; investigation and enforcement of royalty and 
revenue regulations; and asset management for on-
shore and offshore activities. 
(d) LIMITATION.—The Secretary shall not carry out 
through the Office any function, power, or duty that is— 
(1) required by section 10402 to be carried out 
through Bureau of Ocean Energy; or 
(2) required by section 10403 to be carried out 
through the Ocean Energy Safety Service. 
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