‘‘(xi) For fiscal year 2016, 30.0 per-
cent. 
‘‘(xii) For fiscal year 2017, 33.0 per-
cent. 
‘‘(xiii) For fiscal year 2018, 36.0 per-
cent. 
‘‘(xiv) For fiscal year 2019, 39.0 per-
cent. 
‘‘(xv) For fiscal year 2020, 42.0 per-
cent. 
‘‘(xvi) For fiscal year 2021, 45.0 per-
cent. 
‘‘(xvii) For fiscal year 2022 and each 
subsequent fiscal year, 50.0 percent. 
‘‘(C) The provisions of this paragraph shall 
not apply to leases that could not have been 
issued but for section 5(k) of this Act or section 
6(2) of the Domestic Energy Production 
through Offshore Exploration and Equitable 
Treatment of State Holdings Act of 2006. 
‘‘(3) IMMEDIATE RECEIPTS SHARING.—Begin-
ning October 1, 2005, the Secretary shall share 50 
percent of OCS Receipts derived on and after Octo-
ber 1, 2005, from all leases located partially or com-
pletely beyond 100 miles of any coastline not in-
cluded within the provisions of paragraph (2). 
‘‘(4) ALLOCATIONS.—The Secretary shall allo-
cate the OCS Receipts deposited into the separate 
account established by paragraph (1) that are 
shared under paragraphs (2) and (3) as follows: 
‘‘(A) BONUS BIDS.—Deposits derived from 
bonus bids from a leased tract, including inter-
est thereon, shall be allocated at the end of 
each fiscal year as follows: 
‘‘(i) 87.5 percent to the Adjacent 
State. 
‘‘(ii) 6.25 percent into the Treasury, 
which shall be allocated to the account es-
tablished by section 14 of the Domestic 
Energy Production through Offshore Ex-
ploration and Equitable Treatment of 
State Holdings Act of 2006. 
‘‘(iii) 5 percent into the account es-
tablished by section 23 of the Domestic 
Energy Production through Offshore Ex-
ploration and Equitable Treatment of 
State Holdings Act of 2006. 
‘‘(iv) 1.25 percent into the account es-
tablished by section 26 of the Domestic
Energy Production through Offshore Ex-
ploration and Equitable Treatment of 
State Holdings Act of 2006. 
‘‘(B) ROYALTIES.—Deposits derived from 
royalties from a leased tract, including interest 
thereon, shall be allocated at the end of each 
fiscal year as follows: 
‘‘(i) 87.5 percent to the Adjacent 
State and any other producing State or 
States with a leased tract within its Adja-
cent Zone partially or completely beyond 
100 miles of its coastline that generated 
royalties during the fiscal year, if the other 
producing State or States have a coastline 
point within 300 miles of any portion of 
the leased tract, in which case the amount 
allocated for the leased tract shall be— 
‘‘(I) one-third to the Adjacent 
State; and 
‘‘(II) two-thirds to each pro-
ducing State, including the Adjacent 
State, inversely proportional to the 
distance between the nearest point on 
the coastline of the producing State
and the geographic center of the 
leased tract. 
‘‘(ii) 6.25 percent into the account es-
tablished by section 14 of the Domestic 
Energy Production through Offshore Ex-
ploration and Equitable Treatment of 
State Holdings Act of 2006. 
‘‘(iii) 5 percent into the account es-
tablished by section 23 of the Domestic 
Energy Production through Offshore Ex-
ploration and Equitable Treatment of 
State Holdings Act of 2006. 
‘‘(iv) 1.25 percent into the account es-
tablished by section 26 of the Domestic 
Energy Production through Offshore Ex-
ploration and Equitable Treatment of 
State Holdings Act of 2006. 
‘‘(d) TRANSMISSION OF ALLOCATIONS.— 
‘‘(1) IN
GENERAL.—Not later than 90 days 
after the end of each fiscal year, the Secretary shall 
transmit— 
‘‘(A) to each State two-thirds of such 
State’s 
allocations 
under 
subsections 
(b)(5)(A)(i), 
(b)(5)(B)(i), 
(c)(4)(A)(i), 
and 
(c)(4)(B)(i) for the immediate prior fiscal year;
‘‘(B) to coastal county-equivalent and mu-
nicipal political subdivisions of such State a 
total of one-third of such State’s allocations 
under subsections (b)(5)(A)(i), (b)(5)(B)(i), 
(c)(4)(A)(i), and (c)(4)(B)(i), together with all 
accrued interest thereon; and 
‘‘(C) the remaining allocations under sub-
sections (b)(5) and (c)(4), together with all ac-
crued interest thereon. 
‘‘(2) ALLOCATIONS
TO
COASTAL
COUNTY- 
EQUIVALENT
POLITICAL
SUBDIVISIONS.—The Sec-
retary shall make an initial allocation of the OCS 
Receipts to be shared under paragraph (1)(B) as fol-
lows: 
‘‘(A) 25 percent shall be allocated based on 
the ratio of such coastal county-equivalent polit-
ical subdivision’s population to the coastal pop-
ulation of all coastal county-equivalent political 
subdivisions in the State. 
‘‘(B) 25 percent shall be allocated based on 
the ratio of such coastal county-equivalent polit-
ical subdivision’s coastline miles to the coastline 
miles of all coastal county-equivalent political 
subdivisions in the State as calculated by the 
Secretary. In such calculations, coastal county-
equivalent political subdivisions without a coast-
line shall be considered to have 50 percent of 
the average coastline miles of the coastal coun-
ty-equivalent political subdivisions that do have 
coastlines. 
‘‘(C) 25 percent shall be allocated to all 
coastal county-equivalent political subdivisions 
having a coastline point within 300 miles of the 
leased tract for which OCS Receipts are being 
shared based on a formula that allocates the 
funds based on such coastal county-equivalent 
political subdivision’s relative distance from the 
leased tract. 
‘‘(D) 25 percent shall be allocated to all 
coastal county-equivalent political subdivisions 
having a coastline point within 300 miles of the 
leased tract for which OCS Receipts are being 
shared based on the relative level of outer Con-
tinental Shelf oil and gas activities in a coastal 
political subdivision compared to the level of 
outer Continental Shelf activities in all coastal 
political subdivisions in the State. The Sec-
retary shall define the term ‘outer Continental 
Shelf oil and gas activities’ for purposes of this 
subparagraph to include, but not be limited to,
construction of vessels, drillships, and platforms 
involved in exploration, production, and develop-
ment on the outer Continental Shelf; support 
and supply bases, ports, and related activities; 
offices of geologists, geophysicists, engineers, 
and other professionals involved in support of 
exploration, production, and development of oil 
and gas on the outer Continental Shelf; pipe-
lines and other means of transporting oil and 
gas production from the outer Continental 
Shelf; and processing and refining of oil and 
gas production from the outer Continental 
Shelf. For purposes of this subparagraph, if a 
coastal county-equivalent political subdivision 
does not have a coastline, its coastal point shall 
be the point on the coastline closest to it. 
‘‘(3) ALLOCATIONS TO COASTAL MUNICIPAL PO-
LITICAL
SUBDIVISIONS.—The initial allocation to 
each coastal county-equivalent political subdivision 
under paragraph (2) shall be further allocated to the 
coastal county-equivalent political subdivision and 
any coastal municipal political subdivisions located 
partially or wholly within the boundaries of the 
coastal county-equivalent political subdivision as fol-
lows:
‘‘(A) One-third shall be allocated to the 
coastal county-equivalent political subdivision. 
‘‘(B) Two-thirds shall be allocated on a per 
capita basis to the municipal political subdivi-
sions and the county-equivalent political sub-
division, with the allocation to the latter based 
upon its population not included within the 
boundaries of a municipal political subdivision. 
‘‘(e) INVESTMENT OF DEPOSITS.—Amounts depos-
ited under this section shall be invested by the Secretary 
of the Treasury in securities backed by the full faith and 
credit of the United States having maturities suitable to 
the needs of the account in which they are deposited and 
yielding the highest reasonably available interest rates as 
determined by the Secretary of the Treasury. 
‘‘(f) USE OF FUNDS.—A recipient of funds under this 
section may use the funds for one or more of the following: 
‘‘(1) To reduce in-State college tuition at public 
institutions of higher learning and otherwise support 
public education, including career technical edu-
cation. 
‘‘(2) To make transportation infrastructure im-
provements. 
‘‘(3) To reduce taxes. 
‘‘(4) To promote and provide for—
‘‘(A) coastal or environmental restoration; 
‘‘(B) fish, wildlife, and marine life habitat 
enhancement; 
‘‘(C) waterways maintenance; 
‘‘(D) shore protection; and 
‘‘(E) marine and oceanographic education 
and research. 
‘‘(5) To improve infrastructure associated with 
energy production activities conducted on the outer 
Continental Shelf. 
‘‘(6) To fund energy demonstration projects 
and supporting infrastructure for energy projects. 
‘‘(7) For any other purpose as determined by 
State law. 
‘‘(g) NO ACCOUNTING REQUIRED.—No recipient of 
funds under this section shall be required to account to 
the Federal Government for the expenditure of such 
funds, except as otherwise may be required by law. How-
ever, States may enact legislation providing for accounting 
for and auditing of such expenditures. Further, funds allo-
cated under this section to States and political subdivi-
sions may be used as matching funds for other Federal 
programs. 
‘‘(h) EFFECT OF FUTURE LAWS.—Enactment of any 
future Federal statute that has the effect, as determined