Title: Payment In Lieu of Lost Revenues Act
Policy area: Energy

Summary:
Payment In Lieu of Lost Revenues Act or the PILLR Act
This bill requires the Department of the Interior to compensate, using federal mineral royalties, states for lost revenue derived from oil and gas production that is caused by a moratorium or similar action to prevent oil and gas leasing on federal land.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6086 Introduced in House (IH)]

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117th CONGRESS
  1st Session
                                H. R. 6086

 To direct the Secretary of the Interior to compensate States for lost 
   revenue for any year during which Federal oil and gas leasing of 
Federal land within a State does not occur or otherwise results in lost 
 revenue to that State as a result of an order, moratorium, pause, or 
other action by the President, Secretary of the Interior, Secretary of 
               Agriculture, or other designated official.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 30, 2021

  Ms. Cheney introduced the following bill; which was referred to the 
                     Committee on Natural Resources

_______________________________________________________________________

                                 A BILL


 
 To direct the Secretary of the Interior to compensate States for lost 
   revenue for any year during which Federal oil and gas leasing of 
Federal land within a State does not occur or otherwise results in lost 
 revenue to that State as a result of an order, moratorium, pause, or 
other action by the President, Secretary of the Interior, Secretary of 
               Agriculture, or other designated official.

    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 ``Payment In Lieu of Lost Revenues 
Act'' or the ``PILLR Act''.

SEC. 2. AUTHORITY TO MAKE PAYMENTS.

    For any year during which Federal oil and gas leasing of Federal 
land within a State does not occur or is otherwise affected in a manner 
that results in lost revenue to that State as a result of an order, 
moratorium, pause, or other action by the President, the Secretary of 
the Interior, Secretary of Agriculture, or other designated official, 
the Secretary of the Interior shall make a payment to that State from 
Federal mineral royalties, subject to further appropriation, in an 
amount determined under section 3.

SEC. 3. AMOUNT OF PAYMENTS.

    (a) Amount.--A payment to a State shall seek to compensate the 
State for lost revenues, including oil and gas lease rentals, bonuses 
and royalties, and tax revenues due to an order, moratorium, pause or 
other action described in section 2, and shall be in an amount 
calculated by the Secretary of the Interior equal to the sum of--
            (1) an amount equal to the 10-year average disbursement 
        amount to the State from the Office of Natural Resources and 
        Revenue for oil and gas lease bonuses and rentals, and other 
        similar non-royalty disbursements from Federal oil and gas 
        leases, less the amount actually received by the State for such 
        Federal lease bonuses and rentals during the fiscal year in 
        which the order, moratorium, or pause was in effect;
            (2) an amount equal to the product of--
                    (A) the 10-year average disbursement amount to the 
                State from the Office of Natural Resources and Revenue 
                for oil and gas lease production royalties based on 
                data collected for the previous 10 years; and
                    (B) the 10-year average of the percentage of oil 
                and gas production that is derived from new wells 
                drilled during such year determined from data submitted 
                by the relevant State oil and gas regulatory agency 
                based on data collected for the previous 10 years; and
            (3) an amount equal to the product of--
                    (A) the lost royalties as calculated under 
                paragraph (2); and
                    (B) the average rate of severance, ad valorem, and 
                production taxes imposed by the State during the 
                previous 10 years on oil and gas extracted in such 
                State, determined from data submitted by the State 
                based on data collected for the previous 10 years.
    (b) Adjustments.--On October 1 of each year after the date of 
enactment of this Act, the Secretary shall adjust each payment amount 
calculated in accordance with subsection (a) to reflect changes in the 
Consumer Price Index published by the Bureau of Labor Statistics of the 
Department of Labor, for the 12 months ending the preceding June 30.
    (c) Correction of Under-Payments.--The Secretary of the Interior 
shall use amounts made available for payments under this section from 
Federal mineral royalties to correct under-payments to a State in the 
previous fiscal year. The Secretary of the Interior shall allocate 
amounts under this subsection so as to achieve equity in payments among 
States eligible for payments under this Act.
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