H. R. 1682
To promote alternative and renewable fuels and domestic energy production,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
May 3, 2011
Mr. ROSS of Arkansas introduced the following bill; which was referred to
the Committee on Natural Resources, and in addition to the Committee on Energy
and Commerce, 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
To promote alternative and renewable fuels and domestic energy production,
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; TABLE OF CONTENTS.
(a) Short Title- This Act may be cited as the `American-Made Energy Act of
(b) Table of Contents- The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I--AMERICAN-MADE ENERGY TRUST FUND
Sec. 101. American-Made Energy Trust Fund.
TITLE II--DEVELOPMENT OF OIL AND GAS RESOURCES OF THE COASTAL PLAIN OF ALASKA
Sec. 202. Leasing program for lands within the Coastal Plain.
Sec. 204. Grant of leases by the Secretary.
Sec. 205. Lease terms and conditions.
Sec. 206. Coastal plain environmental protection.
Sec. 207. Expedited judicial review.
Sec. 208. Federal and State distribution of revenues.
Sec. 209. Rights-of-way across the Coastal Plain.
Sec. 211. Local government impact aid and community service assistance.
TITLE III--OFFSHORE OIL AND GAS LEASING
Sec. 301. Termination of prohibitions on expenditures for, and withdrawals
from, offshore leasing.
Sec. 302. Sharing of revenues.
TITLE I--AMERICAN-MADE ENERGY TRUST FUND
SEC. 101. AMERICAN-MADE ENERGY TRUST FUND.
(a) Establishment of Trust Fund- There is established in the Treasury of the
United States a trust fund to be known as the `American-Made Energy Trust
Fund', consisting of such amounts as may be appropriated or credited to the
American-Made Energy Trust Fund as provided in this section.
(b) Transfers to Trust Fund-
(1) IN GENERAL- There are hereby appropriated to the American-Made Energy
Trust Fund amounts required to be transferred under section 208 of this
Act and under section 8(g)(6) of the Outer Continental Shelf Lands Act (as
added by section 302 of this Act).
(A) IN GENERAL- The Secretary of the Treasury shall invest such portion
of the American-Made Energy Trust Fund as is not, in the Secretary's judgment,
required to meet current withdrawals. Such investments may be made only
in interest-bearing obligations of the United States. For purposes of
this paragraph rules similar to the rules of section 9602(b) of the Internal
Revenue Code of 1986 shall apply.
(B) INTEREST ON CERTAIN PROCEEDS- The interest on, and the proceeds from
the sale or redemption of, any obligations held in the American-Made Energy
Trust Fund shall be credited to and form a part of the Trust Fund.
(c) Expenditures From American-Made Energy Trust Fund- Amounts in the American-Made
Energy Trust Fund shall be available in any year to the Secretary of Energy
for alternative and renewable energy incentives and projects, including with
(4) biodiesel and renewable diesel resources,
(6) waste to energy, including municipal solid waste technology and technologies
to convert renewable biomass to electricity, biogas, and synthesis gas,
(7) geothermal resources,
(10) carbon capture and sequestration, including where carbon capture and
sequestration technology is retrofitted,
(11) coal to liquid technology,
(12) energy efficiency measures,
(13) compressed natural gas, or
(14) liquified natural gas.
TITLE II--DEVELOPMENT OF OIL AND GAS RESOURCES OF THE COASTAL PLAIN OF ALASKA
SEC. 201. DEFINITIONS.
(1) COASTAL PLAIN- The term `Coastal Plain' means that area described in
appendix I to part 37 of title 50, Code of Federal Regulations.
(2) SECRETARY- The term `Secretary', except as otherwise provided, means
the Secretary of the Interior or the Secretary's designee.
SEC. 202. LEASING PROGRAM FOR LANDS WITHIN THE COASTAL PLAIN.
(a) In General- The Secretary shall take such actions as are necessary--
(1) to establish and implement, in accordance with this title and acting
through the Director of the Bureau of Land Management in consultation with
the Director of the United States Fish and Wildlife Service, a competitive
oil and gas leasing program that will result in an environmentally sound
program for the exploration, development, and production of the oil and
gas resources of the Coastal Plain; and
(2) to administer the provisions of this title through regulations, lease
terms, conditions, restrictions, prohibitions, stipulations, and other provisions
that ensure the oil and gas exploration, development, and production activities
on the Coastal Plain will result in no significant adverse effect on fish
and wildlife, their habitat, subsistence resources, and the environment,
including, in furtherance of this goal, by requiring the application of
the best commercially available technology for oil and gas exploration,
development, and production to all exploration, development, and production
operations under this title in a manner that ensures the receipt of fair
market value by the public for the mineral resources to be leased.
The Secretary shall not commence leasing under the program described in paragraph
(1) unless a finding has been made that bonus bids for offered leases are
estimated to be not less than $6,000,000,000.
(1) REPEAL- Section 1003 of the Alaska National Interest Lands Conservation
Act of 1980 (16 U.S.C. 3143) is repealed.
(2) CONFORMING AMENDMENT- The table of contents in section 1 of such Act
is amended by striking the item relating to section 1003.
(c) Compliance With Requirements Under Certain Other Laws-
(1) COMPATIBILITY- For purposes of the National Wildlife Refuge System Administration
Act of 1966 (16 U.S.C. 668dd et seq.), the oil and gas leasing program and
activities authorized by this section in the Coastal Plain are deemed to
be compatible with the purposes for which the Arctic National Wildlife Refuge
was established, and no further findings or decisions are required to implement
(2) ADEQUACY OF THE DEPARTMENT OF THE INTERIOR'S LEGISLATIVE ENVIRONMENTAL
IMPACT STATEMENT- The `Final Legislative Environmental Impact Statement'
(April 1987) on the Coastal Plain prepared pursuant to section 1002 of the
Alaska National Interest Lands Conservation Act of 1980 (16 U.S.C. 3142)
and section 102(2)(C) of the National Environmental Policy Act of 1969 (42
U.S.C. 4332(2)(C)) is deemed to satisfy the requirements under the National
Environmental Policy Act of 1969 that apply with respect to prelease activities,
including actions authorized to be taken by the Secretary to develop and
promulgate the regulations for the establishment of a leasing program authorized
by this title before the conduct of the first lease sale.
(3) COMPLIANCE WITH NEPA FOR OTHER ACTIONS- Before conducting the first
lease sale under this title, the Secretary shall prepare an environmental
impact statement under the National Environmental Policy Act of 1969 with
respect to the actions authorized by this title that are not referred to
in paragraph (2). Notwithstanding any other law, the Secretary is not required
to identify nonleasing alternative courses of action or to analyze the environmental
effects of such courses of action. The Secretary shall only identify a preferred
action for such leasing and a single leasing alternative, and analyze the
environmental effects and potential mitigation measures for those two alternatives.
The identification of the preferred action and related analysis for the
first lease sale under this title shall be completed within 18 months after
the date of enactment of this title. The Secretary shall only consider public
comments that specifically address the Secretary's preferred action and
that are filed within 30 days after publication of an environmental analysis.
Notwithstanding any other law, compliance with this paragraph is deemed
to satisfy all requirements for the analysis and consideration of the environmental
effects of proposed leasing under this title.
(d) Relationship to State and Local Authority- Nothing in this title shall
be considered to expand or limit State and local regulatory authority.
(1) IN GENERAL- The Secretary, after consultation with the State of Alaska,
the city of Kaktovik, and the North Slope Borough, may designate up to a
total of 45,000 acres of the Coastal Plain as a Special Area if the Secretary
determines that the Special Area is of such unique character and interest
so as to require special management and regulatory protection. The Secretary
shall designate as such a Special Area the Sadlerochit Spring area, comprising
approximately 4,000 acres.
(2) MANAGEMENT- Each such Special Area shall be managed so as to protect
and preserve the area's unique and diverse character including its fish,
wildlife, and subsistence resource values.
(3) EXCLUSION FROM LEASING OR SURFACE OCCUPANCY- The Secretary may exclude
any Special Area from leasing. If the Secretary leases a Special Area, or
any part thereof, for purposes of oil and gas exploration, development,
production, and related activities, there shall be no surface occupancy
of the lands comprising the Special Area.
(4) DIRECTIONAL DRILLING- Notwithstanding the other provisions of this subsection,
the Secretary may lease all or a portion of a Special Area under terms that
permit the use of horizontal drilling technology from sites on leases located
outside the Special Area.
(f) Limitation on Closed Areas- The Secretary's sole authority to close lands
within the Coastal Plain to oil and gas leasing and to exploration, development,
and production is that set forth in this title.
(1) IN GENERAL- The Secretary shall prescribe such regulations as may be
necessary to carry out this title, including rules and regulations relating
to protection of the fish and wildlife, their habitat, subsistence resources,
and environment of the Coastal Plain, by no later than 15 months after the
date of enactment of this title.
(2) REVISION OF REGULATIONS- The Secretary shall periodically review and,
if appropriate, revise the rules and regulations issued under subsection
(a) to reflect any significant biological, environmental, or engineering
data that come to the Secretary's attention.
SEC. 203. LEASE SALES.
(a) In General- Lands may be leased pursuant to this title to any person qualified
to obtain a lease for deposits of oil and gas under the Mineral Leasing Act
(30 U.S.C. 181 et seq.).
(b) Procedures- The Secretary shall, by regulation, establish procedures for--
(1) receipt and consideration of sealed nominations for any area in the
Coastal Plain for inclusion in, or exclusion (as provided in subsection
(c)) from, a lease sale;
(2) the holding of lease sales after such nomination process; and
(3) public notice of and comment on designation of areas to be included
in, or excluded from, a lease sale.
(c) Lease Sale Bids- Bidding for leases under this title shall be by sealed
competitive cash bonus bids.
(d) Acreage Minimum in First Sale- In the first lease sale under this title,
the Secretary shall offer for lease those tracts the Secretary considers to
have the greatest potential for the discovery of hydrocarbons, taking into
consideration nominations received pursuant to subsection (b)(1), but in no
case less than 200,000 acres.
(e) Timing of Lease Sales- The Secretary shall--
(1) conduct the first lease sale under this title within 30 months after
the date of the enactment of this title; and
(2) conduct additional sales so long as sufficient interest in development
exists to warrant, in the Secretary's judgment, the conduct of such sales.
SEC. 204. GRANT OF LEASES BY THE SECRETARY.
(a) In General- The Secretary may grant to the highest responsible qualified
bidder in a lease sale conducted pursuant to section 203 any lands to be leased
on the Coastal Plain upon payment by the lessee of such bonus as may be accepted
by the Secretary.
(b) Subsequent Transfers- No lease issued under this title may be sold, exchanged,
assigned, sublet, or otherwise transferred except with the approval of the
Secretary. Prior to any such approval the Secretary shall consult with, and
give due consideration to the views of, the Attorney General.
SEC. 205. LEASE TERMS AND CONDITIONS.
(a) In General- An oil or gas lease issued pursuant to this title shall--
(1) provide for the payment of a royalty of not less than 12 1/2 percent
in amount or value of the production removed or sold from the lease, as
determined by the Secretary under the regulations applicable to other Federal
oil and gas leases;
(2) provide that the Secretary may close, on a seasonal basis, portions
of the Coastal Plain to exploratory drilling activities as necessary to
protect caribou calving areas and other species of fish and wildlife;
(3) require that the lessee of lands within the Coastal Plain shall be fully
responsible and liable for the reclamation of lands within the Coastal Plain
and any other Federal lands that are adversely affected in connection with
exploration, development, production, or transportation activities conducted
under the lease and within the Coastal Plain by the lessee or by any of
the subcontractors or agents of the lessee;
(4) provide that the lessee may not delegate or convey, by contract or otherwise,
the reclamation responsibility and liability to another person without the
express written approval of the Secretary;
(5) provide that the standard of reclamation for lands required to be reclaimed
under this title shall be, as nearly as practicable, a condition capable
of supporting the uses which the lands were capable of supporting prior
to any exploration, development, or production activities, or upon application
by the lessee, to a higher or better use as approved by the Secretary;
(6) contain terms and conditions relating to protection of fish and wildlife,
their habitat, subsistence resources, and the environment as required pursuant
to section 202(a)(2);
(7) provide that the lessee, its agents, and its contractors use best efforts
to provide a fair share, as determined by the level of obligation previously
agreed to in the 1974 agreement implementing section 29 of the Federal Agreement
and Grant of Right of Way for the Operation of the Trans-Alaska Pipeline,
of employment and contracting for Alaska Natives and Alaska Native Corporations
from throughout the State; and
(8) contain such other provisions as the Secretary determines necessary
to ensure compliance with the provisions of this title and the regulations
issued under this title.
(b) Project Labor Agreements- The Secretary, as a term and condition of each
lease under this title and in recognizing the Government's proprietary interest
in labor stability and in the ability of construction labor and management
to meet the particular needs and conditions of projects to be developed under
the leases issued pursuant to this title and the special concerns of the parties
to such leases, shall require that the lessee and its agents and contractors
negotiate to obtain a project labor agreement for the employment of laborers
and mechanics on production, maintenance, and construction under the lease.
SEC. 206. COASTAL PLAIN ENVIRONMENTAL PROTECTION.
(a) No Significant Adverse Effect Standard To Govern Authorized Coastal Plain
Activities- The Secretary shall, consistent with the requirements of section
202, administer the provisions of this title through regulations, lease terms,
conditions, restrictions, prohibitions, stipulations, and other provisions
(1) ensure the oil and gas exploration, development, and production activities
on the Coastal Plain will result in no significant adverse effect on fish
and wildlife, their habitat, and the environment;
(2) require the application of the best commercially available technology
for oil and gas exploration, development, and production on all new exploration,
development, and production operations; and
(3) minimize the amount of surface acreage covered by production and support
facilities, including airstrips and any areas covered by gravel berms or
piers for support of pipelines.
(b) Site-Specific Assessment and Mitigation- The Secretary shall also require,
with respect to any proposed drilling and related activities, that--
(1) a site-specific analysis be made of the probable effects, if any, that
the drilling or related activities will have on fish and wildlife, their
habitat, subsistence resources, and the environment;
(2) a plan be implemented to avoid, minimize, and mitigate (in that order
and to the extent practicable) any significant adverse effect identified
under paragraph (1); and
(3) the development of the plan shall occur after consultation with the
agency or agencies having jurisdiction over matters mitigated by the plan.
(c) Regulations To Protect Coastal Plain Fish and Wildlife Resources, Subsistence
Users, and the Environment- Before implementing the leasing program authorized
by this title, the Secretary shall prepare and promulgate regulations, lease
terms, conditions, restrictions, prohibitions, stipulations, and other measures
designed to ensure that the activities undertaken on the Coastal Plain under
this title are conducted in a manner consistent with the purposes and environmental
requirements of this title.
(d) Compliance With Federal and State Environmental Laws and Other Requirements-
The proposed regulations, lease terms, conditions, restrictions, prohibitions,
and stipulations for the leasing program under this title shall require compliance
with all applicable provisions of Federal and State environmental law, and
shall also require the following:
(1) Standards at least as effective as the safety and environmental mitigation
measures set forth in items 1 through 29 at pages 167 through 169 of the
`Final Legislative Environmental Impact Statement' (April 1987) on the Coastal
(2) Seasonal limitations on exploration, development, and related activities,
where necessary, to avoid significant adverse effects during periods of
concentrated fish and wildlife breeding, denning, nesting, spawning, and
(3) That exploration activities, except for surface geological studies,
be limited to the period between approximately November 1 and May 1 each
year and that exploration activities shall be supported, if necessary, by
ice roads, winter trails with adequate snow cover, ice pads, ice airstrips,
and air transport methods, except that such exploration activities may occur
at other times if the Secretary finds that such exploration will have no
significant adverse effect on the fish and wildlife, their habitat, and
the environment of the Coastal Plain.
(4) Design safety and construction standards for all pipelines and any access
and service roads, that--
(A) minimize, to the maximum extent possible, adverse effects upon the
passage of migratory species such as caribou; and
(B) minimize adverse effects upon the flow of surface water by requiring
the use of culverts, bridges, and other structural devices.
(5) Prohibitions on general public access and use on all pipeline access
and service roads.
(6) Stringent reclamation and rehabilitation requirements, consistent with
the standards set forth in this title, requiring the removal from the Coastal
Plain of all oil and gas development and production facilities, structures,
and equipment upon completion of oil and gas production operations, except
that the Secretary may exempt from the requirements of this paragraph those
facilities, structures, or equipment that the Secretary determines would
assist in the management of the Arctic National Wildlife Refuge and that
are donated to the United States for that purpose.
(7) Appropriate prohibitions or restrictions on access by all modes of transportation.
(8) Appropriate prohibitions or restrictions on sand and gravel extraction.
(9) Consolidation of facility siting.
(10) Appropriate prohibitions or restrictions on use of explosives.
(11) Avoidance, to the extent practicable, of springs, streams, and river
system; the protection of natural surface drainage patterns, wetlands, and
riparian habitats; and the regulation of methods or techniques for developing
or transporting adequate supplies of water for exploratory drilling.
(12) Avoidance or minimization of air traffic-related disturbance to fish
(13) Treatment and disposal of hazardous and toxic wastes, solid wastes,
reserve pit fluids, drilling muds and cuttings, and domestic wastewater,
including an annual waste management report, a hazardous materials tracking
system, and a prohibition on chlorinated solvents, in accordance with applicable
Federal and State environmental law.
(14) Fuel storage and oil spill contingency planning.
(15) Research, monitoring, and reporting requirements.
(16) Field crew environmental briefings.
(17) Avoidance of significant adverse effects upon subsistence hunting,
fishing, and trapping by subsistence users.
(18) Compliance with applicable air and water quality standards.
(19) Appropriate seasonal and safety zone designations around well sites,
within which subsistence hunting and trapping shall be limited.
(20) Reasonable stipulations for protection of cultural and archeological
(21) All other protective environmental stipulations, restrictions, terms,
and conditions deemed necessary by the Secretary.
(e) Considerations- In preparing and promulgating regulations, lease terms,
conditions, restrictions, prohibitions, and stipulations under this section,
the Secretary shall consider the following:
(1) The stipulations and conditions that govern the National Petroleum Reserve-Alaska
leasing program, as set forth in the 1999 Northeast National Petroleum Reserve-Alaska
Final Integrated Activity Plan/Environmental Impact Statement.
(2) The environmental protection standards that governed the initial Coastal
Plain seismic exploration program under parts 37.31 to 37.33 of title 50,
Code of Federal Regulations.
(3) The land use stipulations for exploratory drilling on the KIC-ASRC private
lands that are set forth in appendix 2 of the August 9, 1983, agreement
between Arctic Slope Regional Corporation and the United States.
(f) Facility Consolidation Planning-
(1) IN GENERAL- The Secretary shall, after providing for public notice and
comment, prepare and update periodically a plan to govern, guide, and direct
the siting and construction of facilities for the exploration, development,
production, and transportation of Coastal Plain oil and gas resources.
(2) OBJECTIVES- The plan shall have the following objectives:
(A) Avoiding unnecessary duplication of facilities and activities.
(B) Encouraging consolidation of common facilities and activities.
(C) Locating or confining facilities and activities to areas that will
minimize impact on fish and wildlife, their habitat, and the environment.
(D) Utilizing existing facilities wherever practicable.
(E) Enhancing compatibility between wildlife values and development activities.
(g) Access to Public Lands- The Secretary shall--
(1) manage public lands in the Coastal Plain subject to subsections (a)
and (b) of section 811 of the Alaska National Interest Lands Conservation
Act (16 U.S.C. 3121); and
(2) ensure that local residents shall have reasonable access to public lands
in the Coastal Plain for traditional uses.
SEC. 207. EXPEDITED JUDICIAL REVIEW.
(1) DEADLINE- Subject to paragraph (2), any complaint seeking judicial review
of any provision of this title or any action of the Secretary under this
title shall be filed--
(A) except as provided in subparagraph (B), within the 90-day period beginning
on the date of the action being challenged; or
(B) in the case of a complaint based solely on grounds arising after such
period, within 90 days after the complainant knew or reasonably should
have known of the grounds for the complaint.
(2) VENUE- Any complaint seeking judicial review of any provision of this
title or any action of the Secretary under this title may be filed only
in the United States Court of Appeals for the District of Columbia.
(3) LIMITATION ON SCOPE OF CERTAIN REVIEW- Judicial review of a Secretarial
decision to conduct a lease sale under this title, including the environmental
analysis thereof, shall be limited to whether the Secretary has complied
with the terms of this title and shall be based upon the administrative
record of that decision. The Secretary's identification of a preferred course
of action to enable leasing to proceed and the Secretary's analysis of environmental
effects under this title shall be presumed to be correct unless shown otherwise
by clear and convincing evidence to the contrary.
(b) Limitation on Other Review- Actions of the Secretary with respect to which
review could have been obtained under this section shall not be subject to
judicial review in any civil or criminal proceeding for enforcement.
SEC. 208. FEDERAL AND STATE DISTRIBUTION OF REVENUES.
(a) In General- Notwithstanding any other provision of law, of the amount
of adjusted bonus, rental, and royalty revenues from Federal oil and gas leasing
and operations authorized under this title--
(1) 50 percent shall be paid to the State of Alaska; and
(2) except as provided in section 211(d), the balance shall be transferred
to the American-Made Energy Trust Fund.
(b) Payments to Alaska- Payments to the State of Alaska under this section
shall be made semiannually.
SEC. 209. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.
(a) In General- The Secretary shall issue rights-of-way and easements across
the Coastal Plain for the transportation of oil and gas--
(1) except as provided in paragraph (2), under section 28 of the Mineral
Leasing Act (30 U.S.C. 185), without regard to title XI of the Alaska National
Interest Lands Conservation Act (30 U.S.C. 3161 et seq.); and
(2) under title XI of the Alaska National Interest Lands Conservation Act
(30 U.S.C. 3161 et seq.), for access authorized by sections 1110 and 1111
of that Act (16 U.S.C. 3170 and 3171).
(b) Terms and Conditions- The Secretary shall include in any right-of-way
or easement issued under subsection (a) such terms and conditions as may be
necessary to ensure that transportation of oil and gas does not result in
a significant adverse effect on the fish and wildlife, subsistence resources,
their habitat, and the environment of the Coastal Plain, including requirements
that facilities be sited or designed so as to avoid unnecessary duplication
of roads and pipelines.
(c) Regulations- The Secretary shall include in regulations under section
202(g) provisions granting rights-of-way and easements described in subsection
(a) of this section.
SEC. 210. CONVEYANCE.
In order to maximize Federal revenues by removing clouds on title to lands
and clarifying land ownership patterns within the Coastal Plain, the Secretary,
notwithstanding the provisions of section 1302(h)(2) of the Alaska National
Interest Lands Conservation Act (16 U.S.C. 3192(h)(2)), shall convey--
(1) to the Kaktovik Inupiat Corporation the surface estate of the lands
described in paragraph 1 of Public Land Order 6959, to the extent necessary
to fulfill the Corporation's entitlement under sections 12 and 14 of the
Alaska Native Claims Settlement Act (43 U.S.C. 1611 and 1613) in accordance
with the terms and conditions of the Agreement between the Department of
the Interior, the United States Fish and Wildlife Service, the Bureau of
Land Management, and the Kaktovik Inupiat Corporation effective January
22, 1993; and
(2) to the Arctic Slope Regional Corporation the remaining subsurface estate
to which it is entitled pursuant to the August 9, 1983, agreement between
the Arctic Slope Regional Corporation and the United States of America.
SEC. 211. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE ASSISTANCE.
(a) Financial Assistance Authorized-
(1) IN GENERAL- The Secretary may use amounts available from the Coastal
Plain Local Government Impact Aid Assistance Fund established by subsection
(d) to provide timely financial assistance to entities that are eligible
under paragraph (2) and that are directly impacted by the exploration for
or production of oil and gas on the Coastal Plain under this title.
(2) ELIGIBLE ENTITIES- The North Slope Borough, the city of Kaktovik, and
any other borough, municipal subdivision, village, or other community in
the State of Alaska that is directly impacted by exploration for, or the
production of, oil or gas on the Coastal Plain under this title, as determined
by the Secretary, shall be eligible for financial assistance under this
(b) Use of Assistance- Financial assistance under this section may be used
(1) planning for mitigation of the potential effects of oil and gas exploration
and development on environmental, social, cultural, recreational, and subsistence
(2) implementing mitigation plans and maintaining mitigation projects;
(3) developing, carrying out, and maintaining projects and programs that
provide new or expanded public facilities and services to address needs
and problems associated with such effects, including fire-fighting, police,
water, waste treatment, medivac, and medical services; and
(4) establishment of a coordination office, by the North Slope Borough,
in the city of Kaktovik, which shall--
(A) coordinate with and advise developers on local conditions, impact,
and history of the areas utilized for development; and
(B) provide to the Committee on Natural Resources of the House of Representatives
and the Committee on Energy and Natural Resources of the Senate an annual
report on the status of coordination between developers and the communities
affected by development.
(1) IN GENERAL- Any community that is eligible for assistance under this
section may submit an application for such assistance to the Secretary,
in such form and under such procedures as the Secretary may prescribe by
(2) NORTH SLOPE BOROUGH COMMUNITIES- A community located in the North Slope
Borough may apply for assistance under this section either directly to the
Secretary or through the North Slope Borough.
(3) APPLICATION ASSISTANCE- The Secretary shall work closely with and assist
the North Slope Borough and other communities eligible for assistance under
this section in developing and submitting applications for assistance under
(d) Establishment of Fund-
(1) IN GENERAL- There is established in the Treasury the Coastal Plain Local
Government Impact Aid Assistance Fund.
(2) USE- Amounts in the fund may be used only for providing financial assistance
under this section.
(3) DEPOSITS- Subject to paragraph (4), there shall be deposited into the
fund amounts received by the United States as revenues derived from rents,
bonuses, and royalties from Federal leases and lease sales authorized under
(4) LIMITATION ON DEPOSITS- The total amount in the fund may not exceed
(5) INVESTMENT OF BALANCES- The Secretary of the Treasury shall invest amounts
in the fund in interest bearing government securities.
(e) Authorization of Appropriations- To provide financial assistance under
this section there is authorized to be appropriated to the Secretary from
the Coastal Plain Local Government Impact Aid Assistance Fund $5,000,000 for
each fiscal year.
TITLE III--OFFSHORE OIL AND GAS LEASING
SEC. 301. TERMINATION OF PROHIBITIONS ON EXPENDITURES FOR, AND WITHDRAWALS
FROM, OFFSHORE LEASING.
(a) Prohibitions on Expenditures- All provisions of Federal law that prohibit
the expenditure of appropriated funds to conduct oil or natural gas leasing
and preleasing activities for any area of the Outer Continental Shelf shall
have no force or effect with respect to such activities.
(b) Revocation Withdrawals- All withdrawals of Federal submerged lands of
the Outer Continental Shelf from leasing, including withdrawals by the President
under the authority of section 12(a) of the Outer Continental Shelf Lands
Act (43 U.S.C. 1341(a)), are hereby revoked and are no longer in effect with
respect to the leasing of areas for exploration for, and development and production
of, oil and natural gas.
SEC. 302. SHARING OF REVENUES.
(a) In General- Section 8(g) of the Outer Continental Shelf Lands Act (43
U.S.C. 1337(g)) is amended--
(1) in paragraph (2) by striking `Notwithstanding' and inserting `Except
as provided in paragraph (6), and notwithstanding';
(2) by redesignating paragraphs (6) and (7) as paragraphs (8) and (9); and
(3) by inserting after paragraph (5) the following:
`(6) BONUS BIDS AND ROYALTIES UNDER QUALIFIED OIL AND GAS LEASES-
`(A) NEW OIL AND GAS LEASES- Of amounts received by the United States
as bonus bids and royalties under any qualified oil or gas lease on submerged
lands that are located within the seaward boundaries of a State established
under section 4(a)(2)(A)--
`(i) 37.5 percent shall be paid to the States that are producing States
with respect to those submerged lands; and
`(ii) the remainder shall be transferred to the American-Made Energy
Trust Fund established by the American-Made Energy Act of 2011.
`(B) LEASED TRACT THAT LIES PARTIALLY WITHIN THE SEAWARD BOUNDARIES OF
A STATE- In the case of a leased tract that lies partially within the
seaward boundaries of a State, the amounts of bonus bids and royalties
from such tract that are subject to subparagraph (A) with respect to such
State shall be a percentage of the total amounts of bonus bids and royalties
from such tract that is equivalent to the total percentage of surface
acreage of the tract that lies within such seaward boundaries.
`(C) USE OF PAYMENTS TO STATES- Amounts paid to a State under subparagraph
(A)(ii) shall be used by the State for one or more of the following:
`(iv) Coastal and environmental restoration.
`(v) Energy infrastructure and projects.
`(vi) State seismic monitoring programs.
`(vii) Alternative energy development.
`(viii) Energy efficiency and conservation.
`(ix) Hurricane and natural disaster insurance programs.
`(x) Any other purpose determined by State law.
`(D) DEFINITIONS- In this paragraph:
`(i) ADJACENT STATE- The term `adjacent State' means, with respect to
any program, plan, lease sale, leased tract or other activity, proposed,
conducted, or approved pursuant to the provisions of this Act, any State
the laws of which are declared, pursuant to section 4(a)(2), to be the
law of the United States for the portion of the outer Continental Shelf
on which such program, plan, lease sale, leased tract, or activity appertains
or is, or is proposed to be, conducted.
`(ii) ADJACENT ZONE- The term `adjacent zone' means, with respect to
any program, plan, lease sale, leased tract, or other activity, proposed,
conducted, or approved pursuant to the provisions of this Act, the portion
of the outer Continental Shelf for which the laws of a particular adjacent
State are declared, pursuant to section 4(a)(2), to be the law of the
`(iii) PRODUCING STATE- The term `producing State' means an Adjacent
State having an adjacent zone containing leased tracts from which are
derived bonus bids and royalties under a lease under this Act.
`(iv) STATE- The term `State' includes Puerto Rico and the other Territories
of the United States.
`(v) QUALIFIED GAS LEASE- The term `qualified oil or gas lease' means
a lease under this Act granted after the date of the enactment of the
National Environment and Energy Development Act that authorizes development
and production of oil or natural gas and associated condensate.
`(E) APPLICATION- This paragraph shall apply to bonus bids and royalties
received by the United States after September 30, 2011.
`(7) MAINTENANCE OF EFFORT BY STATES- The Secretary of the Interior shall
ensure that financial assistance provided to a State for any purpose with
amounts made available under this subsection supplement, and do not replace,
the amounts expended by the State for that purpose before the date of the
enactment of this paragraph.'.
(b) Establishment of State Seaward Boundaries- Section 4(a)(2)(A) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1333(a)(2)(A)) is amended in the first
sentence by striking `, and the President' and all that follows through the
end of the sentence and inserting the following: `. Such extended lines are
deemed to be as indicated on the maps for each Outer Continental Shelf region
entitled `Alaska OCS Region State Adjacent Zone and OCS Planning Areas', `Pacific
OCS Region State Adjacent Zones and OCS Planning Areas', `Gulf of Mexico OCS
Region State Adjacent Zones and OCS Planning Areas', and `Atlantic OCS Region
State Adjacent Zones and OCS Planning Areas', all of which are dated September
2005 and on file in the Office of the Director, Minerals Management Service.
The preceding sentence shall not apply with respect to the treatment under
section 105 of the Gulf of Mexico Energy Security Act of 2006 (title I of
division C of Public Law 109-432) of qualified outer Continental Shelf revenues
deposited and disbursed under subsection (a)(2) of that section.'.