Payment In Lieu of Lost Revenues Act

Bill: 117-hr-6086
Sponsor: full_name: Rep. Cheney, Liz [R-WY-At Large]
Introduced: 2021-11-30
Policy area: Energy
Latest action: action_date: 2021-12-16
text: Referred to the Subcommittee on Energy and Mineral Resources.

Summaries:
action_date: 2021-11-30
action_desc: Introduced in House
text: <p><b>Payment In Lieu of Lost Revenues Act or the PILLR Act</b></p> <p>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.</p>

tv_txt: I 117th CONGRESS 1st Session H. R. 6086 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.

1. Short title This Act may be cited as the Payment In Lieu of Lost Revenues Act or the PILLR Act . 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. 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.