Alaska Offshore Parity Act
Bill: S.2996 | Sponsor: Sen. Murkowski, Lisa (R-AK)
Policy area: Energy

Summary:
Alaska Offshore Parity Act
This bill requires the Department of the Treasury to share more revenues derived from energy and mineral development in the Alaska Outer Continental Shelf (OCS) region with Alaska and its coastal political subdivisions. Currently, only revenue generated by certain nearshore areas of the OCS is shared with Alaska. Alaska may use the funding from such revenue for coastal protection, coastal infrastructure, systems to reduce energy costs and greenhouse gas emissions, programs at institutions of higher education, and other related purposes.

To provide for the distribution of certain outer Continental Shelf 
        revenues to the State of Alaska, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Alaska Offshore Parity Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Coastal political subdivision.--The term ``coastal 
        political subdivision'' means--
                    (A) a county-equivalent subdivision of the State--
                            (i) all or part of which lies within the 
                        coastal zone (as defined in section 304 of the 
                        Coastal Zone Management Act of 1972 (16 U.S.C. 
                        1453)) of the State; and
                            (ii) the closest coastal 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; and
                    (B) a municipal subdivision of the State that is 
                determined by the State to be a significant staging 
                area for oil and gas servicing, supply vessels, 
                operations, suppliers, or workers.
            (2) 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).
            (3) Qualified revenues.--
                    (A) 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.
                    (B) Exclusions.--The term ``qualified revenues'' 
                does not include--
                            (i) revenues generated from leases subject 
                        to section 8(g) of the Outer Continental Shelf 
                        Lands Act (43 U.S.C. 1337(g)); or
                            (ii) revenues from the forfeiture of a bond 
                        or other surety securing obligations other than 
                        royalties, civil penalties, or royalties taken 
                        by the Secretary in-kind and not sold.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (5) State.--The term ``State'' means the State of Alaska.

SEC. 3. DISPOSITION OF QUALIFIED REVENUES IN ALASKA.

    (a) In General.--Notwithstanding section 9 of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1338) and subject to the other provisions of 
this section, for fiscal year 2022 and each fiscal year thereafter, the 
Secretary of the Treasury shall deposit--
            (1) 50 percent of qualified revenues in the general fund of 
        the Treasury;
        <DELETED>    (2) 42.5 percent of qualified revenues in a 
        special account in the Treasury, to be distributed by the 
        Secretary to the State; and</DELETED>
        <DELETED>    (3) 7.5 percent of qualified revenues in a special 
        account in the Treasury, to be distributed by the Secretary to 
        coastal political subdivisions.</DELETED>
            (2) 30 percent of qualified revenues in a special account 
        in the Treasury, to be distributed by the Secretary to the 
        State;
            (3) 7.5 percent of qualified revenues in a special account 
        in the Treasury, to be distributed by the Secretary to coastal 
        political subdivisions; and
            (4) 12.5 percent of qualified revenues in the National 
        Oceans and Coastal Security Fund established under section 
        904(a) of the National Oceans and Coastal Security Act (16 
        U.S.C. 7503(a)).
    (b) Allocation Among Coastal Political Subdivisions.--Of the amount 
paid by the Secretary to coastal political subdivisions under 
subsection (a)(3)--
            (1) 90 percent shall be allocated among costal political 
        subdivisions described in section 2(1)(A) 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 not 
        more than 200 miles from the geographic center of the leased 
        tract; and
            (2) 10 percent shall be divided equally among each coastal 
        political subdivision described in section 2(1)(B).
    (c) Timing.--The amounts required to be deposited under subsection 
(a) for the applicable fiscal year shall be made available in 
accordance with that subsection during the fiscal year immediately 
following the applicable fiscal year.
    (d) Authorized Uses.--
            (1) In general.--Subject to paragraph (2), the State shall 
        use all amounts received under subsection (a)(2) in accordance 
        with all applicable Federal and State laws, for 1 or more of 
        the following purposes:
                    (A) Projects and activities for the purposes of 
                coastal protection, conservation, and restoration, 
                including onshore infrastructure and relocation of 
                communities directly affected by coastal erosion, 
                melting permafrost, or climate change-related losses.
                    (B) Mitigation of damage to fish, wildlife, or 
                natural resources.
                    (C) Mitigation of the impact of outer Continental 
                Shelf activities through the funding of onshore 
                infrastructure projects and related rights-of-way.
                    (D) Adaptation planning, vulnerability assessments, 
                and emergency preparedness assistance to build healthy 
                and resilient communities.
                    (E) Installation and operation of energy systems to 
                reduce energy costs and greenhouse gas emissions 
                compared to systems in use as of the date of enactment 
                of this Act.
                    (F) Programs at institutions of higher education in 
                the State.
                    (G) Other purposes, as determined by the Governor 
                of the State, with approval from the State legislature.
                    (H) Planning assistance and the administrative 
                costs of complying with this section.
            (2) Limitation.--Not more than 3 percent of amounts 
        received by the State under subsection (a)(2) may be used for 
        the purposes described in paragraph (1)(H).
    (e) Administration.--Amounts made available under paragraphs (2) 
and (3) of subsection (a) shall--
            (1) be made available, without further appropriation, in 
        accordance with this section;
            (2) remain available until expended; and
            (3) be in addition to any amounts appropriated under any 
        other provision of law.
    (f) Reporting Requirement for Fiscal Year 2023 and Thereafter.--
            (1) In general.--Beginning with fiscal year 2023, not later 
        than 180 days after the end of each fiscal year in which the 
        State receives amounts under subsection (a)(2), the State shall 
        submit to the Secretary a report that describes the use of the 
        amounts by the State during the preceding fiscal year covered 
        by the report.
            (2) Public availability.--On receipt of a report required 
        under paragraph (1), the Secretary shall make the report 
        available to the public on the website of the Department of the 
        Interior.
            (3) Limitation.--If the State fails to submit the report 
        required under paragraph (1) by the deadline specified in that 
        paragraph, any amounts that would otherwise be provided to the 
        State under subsection (a)(2) for the succeeding fiscal year 
        shall be withheld for the succeeding fiscal year until the date 
        on which the report is submitted.
            (4) Contents of report.--Each report required under 
        paragraph (1) shall include, for each project funded in whole 
        or in part using amounts received under subsection (a)(2)--
                    (A) the name and description of the project;
                    (B) the amount received under subsection (a)(2) 
                that is allocated to the project; and
                    (C) a description of how each project is consistent 
                with the authorized uses under subsection (d).
            (5) Clarification.--Nothing in this subsection--
                    (A) requires or provides authority for the 
                Secretary to delay, modify, or withhold payment under 
                this subsection, other than for failure to submit a 
                report as required under this subsection;
                    (B) requires or provides authority for the 
                Secretary to review or approve uses of funds reported 
                under this subsection;
                    (C) requires or provides authority for the 
                Secretary to approve individual projects that receive 
                funds reported under this subsection;
                    (D) requires the State to obtain the approval of, 
                or review by, the Secretary prior to spending funds 
                disbursed under subsection (a)(2);
                    (E) requires or provides authority for the 
                Secretary to issue guidance relating to the contents 
                of, or to determine the completeness of, the report 
                required under this subsection;
                    (F) requires the State to obligate or expend funds 
                disbursed under subsection (a)(2) by a certain date; or
                    (G) requires or provides authority for the 
                Secretary to request the State to return unobligated 
                funds.
                                                       Calendar No. 552

117th CONGRESS

  2d Session

                                S. 2996

                          [Report No. 117-201]

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