Title: BREEZE Act
Policy area: Energy

Summary:
Budgeting for Renewable Electrical Energy Zone Earnings Act or the BREEZE Act
This bill makes various changes to the allocation of revenues from offshore oil, gas, and wind projects on the Outer Continental Shelf in the Gulf of Mexico, including to increase the share of revenues paid to states. It also exempts the payments to states from sequestration (a process of automatic, usually across-the-board spending reductions under which budgetary resources are permanently cancelled to enforce specific budget policy goals.)

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8437 Introduced in House (IH)]

<DOC>






117th CONGRESS
  2d Session
                                H. R. 8437

  To distribute revenues from oil, gas, and wind leasing on the Outer 
               Continental Shelf, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 20, 2022

 Mr. Scalise (for himself and Mr. Carter of Louisiana) introduced the 
    following bill; which was referred to the Committee on Natural 
Resources, and in addition to the Committee on the Budget, for a period 
    to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
  To distribute revenues from oil, gas, and wind leasing on the Outer 
               Continental Shelf, 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 ``Budgeting for Renewable Electrical 
Energy Zone Earnings Act'' or the ``BREEZE Act''.

SEC. 2. GULF OF MEXICO OUTER CONTINENTAL SHELF REVENUE.

    (a) Distribution of Outer Continental Shelf Revenue to Gulf 
Producing States.--Section 105 of the Gulf of Mexico Energy Security 
Act of 2006 (43 U.S.C. 1331 note) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``50'' and 
                inserting ``37.5''; and
                    (B) in paragraph (2)--
                            (i) by striking ``50'' and inserting 
                        ``62.5'';
                            (ii) in subparagraph (A), by striking 
                        ``75'' and inserting ``80''; and
                            (iii) in subparagraph (B), by striking 
                        ``25'' and inserting ``20''; and
            (2) by striking subsection (f).
    (b) Exemption of Certain Payments From Sequestration.--
            (1) In general.--Section 255(g)(1)(A) of the Balanced 
        Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 
        905(g)(1)(A)) is amended by inserting after ``Payments to 
        Social Security Trust Funds (28-0404-0-1-651).'' the following:
            ``Payments to States pursuant to section 105(a)(2)(A) of 
        the Gulf of Mexico Energy Security Act of 2006 (Public Law 109-
        432; 43 U.S.C. 1331 note) (014-5535-0-2-302).''.
            (2) Applicability.--The amendment made by this subsection 
        shall apply to any sequestration order issued under the 
        Balanced Budget and Emergency Deficit Control Act of 1985 (2 
        U.S.C. 900 et seq.) on or after the date of enactment of this 
        Act.

SEC. 3. PARITY IN OFFSHORE WIND REVENUE SHARING.

    (a) Payments and Revenues.--Section 8(p)(2) of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1337(p)(2)) is amended--
            (1) in subparagraph (A), by striking ``(A) The Secretary'' 
        and inserting the following:
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), the Secretary'';
            (2) in subparagraph (B), by striking ``(B) The Secretary'' 
        and inserting the following:
                    ``(B) Disposition of revenues for projects located 
                within 3 nautical miles seaward of state submerged 
                land.--The Secretary''; and
            (3) by adding at the end the following:
                    ``(C) Disposition of revenues for offshore wind 
                projects in certain areas.--
                            ``(i) Definitions.--In this subparagraph:
                                    ``(I) Covered offshore wind 
                                project.--The term `covered offshore 
                                wind project' means a wind powered 
                                electric generation project in a wind 
                                energy area on the outer Continental 
                                Shelf that is not wholly or partially 
                                located within an area subject to 
                                subparagraph (B).
                                    ``(II) Eligible state.--The term 
                                `eligible State' means a State a point 
                                on the coastline of which is located 
                                within 75 miles of the geographic 
                                center of a covered offshore wind 
                                project.
                                    ``(III) Qualified outer continental 
                                shelf revenues.--The term `qualified 
                                outer Continental Shelf revenues' means 
                                all royalties, fees, rentals, bonuses, 
                                or other payments from covered offshore 
                                wind projects carried out pursuant to 
                                this subsection.
                            ``(ii) Requirement.--
                                    ``(I) In general.--The Secretary of 
                                the Treasury shall deposit--
                                            ``(aa) 12.5 percent of 
                                        qualified outer Continental 
                                        Shelf revenues in the general 
                                        fund of the Treasury;
                                            ``(bb) 37.5 percent of 
                                        qualified outer Continental 
                                        Shelf revenues in the North 
                                        American Wetlands Conservation 
                                        Fund; and
                                            ``(cc) 50 percent of 
                                        qualified outer Continental 
                                        Shelf revenues in a special 
                                        account in the Treasury from 
                                        which the Secretary shall 
                                        disburse to each eligible State 
                                        an amount determined pursuant 
                                        to subclause (II).
                                    ``(II) Allocation.--
                                            ``(aa) In general.--Subject 
                                        to item (bb), for each fiscal 
                                        year beginning after the date 
                                        of enactment of this 
                                        subparagraph, the amount made 
                                        available under subclause 
                                        (I)(cc) shall be allocated to 
                                        each eligible State in amounts 
                                        (based on a formula established 
                                        by the Secretary by regulation) 
                                        that are inversely proportional 
                                        to the respective distances 
                                        between the point on the 
                                        coastline of each eligible 
                                        State that is closest to the 
                                        geographic center of the 
                                        applicable leased tract and the 
                                        geographic center of the leased 
                                        tract.
                                            ``(bb) Minimum 
                                        allocation.--The amount 
                                        allocated to an eligible State 
                                        each fiscal year under item 
                                        (aa) shall be at least 10 
                                        percent of the amounts made 
                                        available under subclause 
                                        (I)(cc).
                                            ``(cc) Payments to coastal 
                                        political subdivisions.--

                                                    ``(AA) In 
                                                general.--The Secretary 
                                                shall pay 20 percent of 
                                                the allocable share of 
                                                each eligible State, as 
                                                determined pursuant to 
                                                item (aa), to the 
                                                coastal political 
                                                subdivisions of the 
                                                eligible State.

                                                    ``(BB) 
                                                Allocation.--The amount 
                                                paid by the Secretary 
                                                to coastal political 
                                                subdivisions under 
                                                subitem (AA) shall be 
                                                allocated to each 
                                                coastal political 
                                                subdivision in 
                                                accordance with 
                                                subparagraphs (B) and 
                                                (C) of section 31(b)(4) 
                                                of this Act.

                            ``(iii) Timing.--The amounts required to be 
                        deposited under subclause (I) of clause (ii) 
                        for the applicable fiscal year shall be made 
                        available in accordance with such subclause 
                        during the fiscal year immediately following 
                        the applicable fiscal year.
                            ``(iv) Authorized uses.--
                                    ``(I) In general.--Subject to 
                                subclause (II), each eligible State 
                                shall use all amounts received under 
                                clause (ii)(II) in accordance with all 
                                applicable Federal and State laws, only 
                                for 1 or more of the following 
                                purposes:
                                            ``(aa) Projects and 
                                        activities for the purposes of 
                                        coastal protection and 
                                        resiliency, including 
                                        conservation, coastal 
                                        restoration, estuary 
                                        management, beach nourishment, 
                                        hurricane and flood protection, 
                                        and infrastructure directly 
                                        affected by coastal wetland 
                                        losses.
                                            ``(bb) Mitigation of damage 
                                        to fish, wildlife, or natural 
                                        resources, including through 
                                        fisheries science and research.
                                            ``(cc) Implementation of a 
                                        federally approved marine, 
                                        coastal, or comprehensive 
                                        conservation management plan.
                                            ``(dd) Mitigation of the 
                                        impact of outer Continental 
                                        Shelf activities through the 
                                        funding of onshore 
                                        infrastructure projects.
                                            ``(ee) Planning assistance 
                                        and the administrative costs of 
                                        complying with this section.
                                    ``(II) Limitation.--Of the amounts 
                                received by an eligible State under 
                                clause (ii)(II), not more than 3 
                                percent shall be used for the purposes 
                                described in subclause (I)(ee).
                            ``(v) Administration.--Subject to clause 
                        (vi)(III), amounts made available under items 
                        (aa) and (cc) of clause (ii)(I) shall--
                                    ``(I) be made available, without 
                                further appropriation, in accordance 
                                with this subparagraph;
                                    ``(II) remain available until 
                                expended; and
                                    ``(III) be in addition to any 
                                amount appropriated under any other 
                                Act.
                            ``(vi) Reporting requirement.--
                                    ``(I) In general.--Not later than 
                                180 days after the end of each fiscal 
                                year, the Governor of each eligible 
                                State that receives amounts under 
                                clause (ii)(II) for the applicable 
                                fiscal year shall submit to the 
                                Secretary a report that describes the 
                                use of the amounts by the eligible 
                                State during the period covered by the 
                                report.
                                    ``(II) Public availability.--On 
                                receipt of a report submitted under 
                                subclause (I), the Secretary shall make 
                                the report available to the public on 
                                the website of the Department of the 
                                Interior.
                                    ``(III) Limitation.--If the 
                                Governor of an eligible State that 
                                receives amounts under clause (ii)(II) 
                                fails to submit the report required 
                                under subclause (I) by the deadline 
                                specified in that subclause, any 
                                amounts that would otherwise be 
                                provided to the eligible State under 
                                clause (ii)(II) for the succeeding 
                                fiscal year shall be deposited in the 
                                Treasury.''.
    (b) Exemption of Certain Payments From Sequestration.--
            (1) In general.--Section 255(g)(1)(A) of the Balanced 
        Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 
        905(g)(1)(A)) is amended by inserting after ``Payments to 
        Social Security Trust Funds (28-0404-0-1-651).'' the following:
            ``Payments to States pursuant to subparagraph 
        (C)(ii)(I)(cc) of section 8(p)(2) of the Outer Continental 
        Shelf Lands Act (43 U.S.C. 1337(p)(2)).''.
            (2) Applicability.--The amendment made by this subsection 
        shall apply to any sequestration order issued under the 
        Balanced Budget and Emergency Deficit Control Act of 1985 (2 
        U.S.C. 900 et seq.) on or after the date of enactment of this 
        Act.
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