S.Amdt. 1597

SA 1597. Mr. CASSIDY (for himself, Mr. Cornyn, Mr. Kennedy, Mr.
Jones, Mr. Wicker, Mr. Sullivan, Mr. Shelby, and Ms. Murkowski)
submitted an amendment intended to be proposed by him to the bill H.R.
1957, to amend the Internal Revenue Code of 1986 to modernize and
improve the Internal Revenue Service, and for other purposes; which was
ordered to lie on the table; as follows:

At the end, add the following:

SEC. 4. OUTER CONTINENTAL SHELF REVENUES.

(a) Gulf of Mexico Outer Continental Shelf Revenues.--
(1) Definition of qualified outer continental shelf
revenues.--Section 102(9)(A) of the Gulf of Mexico Energy
Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109-
432) is amended--
(A) in clause (i)(II), by striking ``and'' after the
semicolon;
(B) in clause (ii)--
(i) in the matter preceding subclause (I), by striking
``fiscal year 2017 and each fiscal year thereafter'' and
inserting ``each of fiscal years 2017 through 2020''; and
(ii) in subclause (III), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following:
``(iii) in the case of fiscal year 2021 and each fiscal
year thereafter, all rentals, royalties, bonus bids, and
other sums due and payable to the United States received on
or after October 1, 2020, from leases entered into on or
after October 1, 2000, for--

``(I) the 181 Area;
``(II) the 181 South Area; and
``(III) the 2002-2007 planning area.''.

(2) Elimination of limitation on amount of distributed
qualified outer continental shelf revenues.--Section 105 of
the Gulf of Mexico Energy Security Act of 2006 (43 U.S.C.
1331 note; Public Law 109-432) is amended by striking
subsection (f) and inserting the following:
``(f) Limitations on Amount of Distributed Qualified Outer
Continental Shelf Revenues.--
``(1) Limitations.--
``(A) Fiscal years 2016 through 2020.--Subject to paragraph
(2), the total amount of qualified outer Continental Shelf
revenues made available under subsection (a)(2) shall not
exceed--
``(i) $500,000,000 for each of fiscal years 2016 through
2019; and
``(ii) $650,000,000 for fiscal year 2020.
``(B) Fiscal years 2021 through 2055.--Subject to paragraph
(2), the total amount of qualified outer Continental Shelf
revenues made available under subsection (a)(2)(B) shall not
exceed $125,000,000 for each of fiscal years 2021 through
2055.
``(2) Expenditures.--
``(A) Fiscal years 2016 through 2020.--For the purpose of
paragraph (1)(A), for each of fiscal years 2016 through 2020,
expenditures under subsection (a)(2) shall be net of receipts
from that fiscal year from any area in the 181 Area in the
Eastern Planning Area and the 181 South Area.
``(B) Fiscal years 2021 through 2055.--For the purpose of
paragraph (1)(B), for each of fiscal years 2021 through 2055,
expenditures under subsection (a)(2)(B) shall be net of
receipts from that fiscal year from any area in the 181 Area
in the Eastern Planning Area and the 181 South Area.
``(3) Pro rata reductions; reversion.--
``(A) Fiscal years 2016 through 2020.--If paragraph (1)(A)
limits the amount of qualified outer Continental Shelf
revenues that would be paid under subparagraphs (A) and (B)
of subsection (a)(2)--
``(i) the Secretary shall reduce the amount of qualified
outer Continental Shelf revenues provided to each recipient
on a pro rata basis; and
``(ii) any remainder of the qualified outer Continental
Shelf revenues shall revert to the general fund of the
Treasury.
``(B) Fiscal years 2021 through 2055.--If paragraph (1)(B)
limits the amount of qualified outer Continental Shelf
revenues that would be paid under subsection (a)(2)(B), any
remainder of the qualified outer Continental Shelf revenues
shall be deposited in the National Oceans and Coastal
Security Fund established under section 904(a) of the
National Oceans and Coastal Security Act (16 U.S.C.
7503(a)).''.
(b) Alaska Outer Continental Shelf Revenues.--
(1) Definitions.--In this subsection:
(A) Coastal political subdivision.--The term ``coastal
political subdivision'' means--
(i) a county-equivalent subdivision of the State--

(I) all or part of which lies within the coastal zone (as
defined in section 304 of the Coastal Zone Management Act of
1972 (16 U.S.C. 1453)) of the State; and
(II) the closest coastal point of which is not more than
200 nautical miles from the geographical center of any leased
tract in the Alaska outer Continental Shelf region; and

(ii) a municipal subdivision of the State that is
determined by the State to be a significant staging area for
oil and gas servicing, supply vessels, operations, suppliers,
or workers.
(B) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 102 of the Higher Education Act of 1965 (20
U.S.C. 1002).
(C) Qualified revenues.--
(i) In general.--The term ``qualified revenues'' means all
revenues derived from all rentals, royalties, bonus bids, and
other sums due and payable to the United States from energy
development in the Alaska outer Continental Shelf region.
(ii) Exclusions.--The term ``qualified revenues'' does not
include--

(I) revenues generated from leases subject to section 8(g)
of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(g));
or
(II) revenues from the forfeiture of a bond or other surety
securing obligations other than royalties, civil penalties,
or royalties taken by the Secretary in-kind and not sold.

(D) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(E) State.--The term ``State'' means the State of Alaska.
(2) Disposition of qualified revenues in alaska.--
Notwithstanding section 9 of the Outer Continental Shelf
Lands Act (43 U.S.C. 1338) and subject to the other
provisions of this subsection, for fiscal year 2021 and each
fiscal year thereafter, the Secretary of the Treasury shall
deposit--
(A) 50 percent of qualified revenues in the general fund of
the Treasury;
(B) 42.5 percent of qualified revenues in a special account
in the Treasury, to be distributed by the Secretary to the
State; and
(C) 7.5 percent of qualified revenues in a special account
in the Treasury, to be distributed by the Secretary to
coastal political subdivisions.
(3) Allocation among coastal political subdivisions.--Of
the amount paid by the Secretary to coastal political
subdivisions under paragraph (2)(C)--
(A) 90 percent shall be allocated among costal political
subdivisions described in paragraph (1)(A)(i) in amounts
(based on a formula established by the Secretary by
regulation) that are inversely proportional to the respective
distances between the point in each coastal political
subdivision that is closest to the geographic center of the
applicable leased tract and not more than 200 miles from the
geographic center of the leased tract; and
(B) 10 percent shall be divided equally among each coastal
political subdivision described in paragraph (1)(A)(ii).
(4) Timing.--The amounts required to be deposited under
paragraph (2) for the applicable fiscal year shall be made
available in accordance with that paragraph during the fiscal
year immediately following the applicable fiscal year.
(5) Authorized uses.--
(A) In general.--Subject to subparagraph (B), the State
shall use all amounts received under paragraph (2)(B) in
accordance with all applicable Federal and State laws, for 1
or more of the following purposes:
(i) Projects and activities for the purposes of coastal
protection, conservation, and restoration, including onshore
infrastructure and relocation of communities directly
affected by coastal erosion, melting permafrost, or climate
change-related losses.
(ii) Mitigation of damage to fish, wildlife, or natural
resources.
(iii) Mitigation of the impact of outer Continental Shelf
activities through the funding of onshore infrastructure
projects and related rights-of-way.
(iv) Adaptation planning, vulnerability assessments, and
emergency preparedness assistance to build healthy and
resilient communities.
(v) Installation and operation of energy systems to reduce
energy costs and greenhouse gas emissions compared to systems
in use as of the date of enactment of this Act.
(vi) Programs at institutions of higher education in the
State.
(vii) Other purposes, as determined by the Governor of the
State, with approval from the State legislature.
(viii) Planning assistance and the administrative costs of
complying with this subsection.
(B) Limitation.--Not more than 3 percent of amounts
received by the State under paragraph (2)(B) may be used for
the purposes described in subparagraph (A)(viii).
(6) Administration.--Amounts made available under
subparagraphs (B) and (C) of paragraph (2) shall--
(A) be made available, without further appropriation, in
accordance with this subsection;
(B) remain available until expended; and
(C) be in addition to any amounts appropriated under any
other provision of law.
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