Schools and State Budgets Certainty Act of 2021
Bill: S.1740 | Sponsor: Sen. Heinrich, Martin (D-NM)
Policy area: Public Lands and Natural Resources

Summary:
Schools and State Budgets Certainty Act of 2021
This bill modifies how states, counties, and Indian tribes are paid for mineral extraction on their land.
The Department of the Interior shall pay to eligible states, counties, and Indian tribes an energy transition payment as calculated in accordance with this bill.
An energy transition payment received by a state or county pursuant to the Gulf of Mexico Energy Security Act of 2006 must be used for certain authorized uses, such as coastal protection and mitigation of damage to wildlife.

To require the Secretary of the Interior to make energy transition 
  payments to States, counties, and Indian Tribes to replace Federal 
mineral revenues lost as a result of changes in Federal policy, 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 ``Schools and State Budgets Certainty 
Act of 2021''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Base mineral revenue amount.--The term ``base mineral 
        revenue amount'' means--
                    (A) for fiscal year 2021, the average of the annual 
                mineral revenue payments received by an eligible State, 
                eligible county, or eligible Indian Tribe for the 
                period of fiscal years 2016 through 2020; and
                    (B) for fiscal year 2022 and each fiscal year 
                thereafter, an amount equal to 95 percent of the base 
                mineral revenue amount for the eligible State, eligible 
                county, or eligible Indian Tribe for the preceding 
                fiscal year.
            (2) County.--The term ``county'' means a coastal political 
        subdivision (as defined in section 102 of the Gulf of Mexico 
        Energy Security Act of 2006 (43 U.S.C. 1331 note; Public Law 
        109-432)).
            (3) Eligible state, eligible county, eligible indian 
        tribe.--The terms ``eligible State'', ``eligible county'', and 
        ``eligible Indian Tribe'' mean a State, county, and Indian 
        Tribe, respectively, that received a mineral revenue payment in 
        any of fiscal years 2016 through 2020.
            (4) Energy transition payment.--The term ``energy 
        transition payment'' means the payment for an eligible State, 
        eligible county, or eligible Indian Tribe calculated under 
        section 3(a).
            (5) Mineral revenue payment.--The term ``mineral revenue 
        payment'' means the total amount paid by the Federal Government 
        to a State, county, or Indian Tribe in a fiscal year pursuant 
        to--
                    (A) the Act of May 11, 1938 (52 Stat. 347, chapter 
                198; 25 U.S.C. 396a et seq.) (commonly known as the 
                ``Indian Mineral Leasing Act of 1938'');
                    (B) the Mineral Leasing Act (30 U.S.C. 181 et 
                seq.);
                    (C) the Mineral Leasing Act for Acquired Lands (30 
                U.S.C. 351 et seq.); and
                    (D) the Gulf of Mexico Energy Security Act of 2006 
                (43 U.S.C. 1331 note; Public Law 109-432) (other than 
                section 105(a)(2)(B) of that Act).
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.

SEC. 3. ANNUAL ENERGY TRANSITION PAYMENTS.

    (a) In General.--For fiscal year 2021 and each fiscal year 
thereafter, the Secretary shall calculate for each eligible State, 
eligible county, and eligible Indian Tribe an amount equal to the 
difference between--
            (1) the base mineral revenue amount for the eligible State, 
        eligible county, or eligible Indian Tribe for that fiscal year; 
        and
            (2) the mineral revenue payment for the eligible State, 
        eligible county, or eligible Indian Tribe for that fiscal year.
    (b) Payments to Eligible States, Counties, and Indian Tribes.--
            (1) In general.--Subject to subsection (c), for each fiscal 
        year, the Secretary shall pay to each eligible State, eligible 
        county, and eligible Indian Tribe, without further 
        appropriation, the amount of the energy transition payment 
        calculated under subsection (a).
            (2) Condition on use of funds.--For each energy transition 
        payment received by an eligible State or eligible county for a 
        fiscal year, the percentage of the energy transition payment 
        that is equivalent to the percentage of the mineral revenue 
        payment received by the eligible State or eligible county for 
        that fiscal year pursuant to the Gulf of Mexico Energy Security 
        Act of 2006 (43 U.S.C. 1331 note; Public Law 109-432) shall be 
        subject to section 105(d) that Act.
    (c) Limitation.--An eligible State, eligible county, or eligible 
Indian Tribe shall not receive an energy transition payment under this 
section for any fiscal year for which the mineral revenue payment 
received by the eligible State, eligible county, or eligible Indian 
Tribe is greater than the base mineral revenue amount for the eligible 
State, eligible county, or eligible Indian Tribe for that fiscal year.
    (d) Timing of Payment.--The energy transition payments required 
under this section for a fiscal year shall be made as soon as 
practicable after the end of that fiscal year.
    (e) Maintenance of Funding.--The energy transition payments made to 
eligible States, eligible counties, and eligible Indian Tribes under 
this section shall supplement (and not supplant) other Federal funding 
made available to eligible States, eligible counties, and eligible 
Indian Tribes.
    (f) Direct Payments.--The energy transition payments made to 
eligible States, eligible counties, and eligible Indian Tribes under 
this section shall be made as direct payments and not as Federal 
financial assistance.
    (g) Mandatory Funding.--
            (1) In general.--As soon as practicable after the date of 
        enactment of this Act, and on October 1, 2021, and on each 
        October 1 thereafter, out of any funds in the Treasury not 
        otherwise appropriated, the Secretary of the Treasury shall 
        transfer to the Secretary such sums as are necessary to carry 
        out this section, to remain available until expended.
            (2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this section the funds transferred under paragraph (1), without 
        further appropriation.
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