I 117th CONGRESS 2d Session H. R. 8437 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.

1. Short title This Act may be cited as the Budgeting for Renewable Electrical Energy Zone Earnings Act or the BREEZE Act . 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. 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.