< Back to H.R. 1682 (112th Congress, 2011–2013)

Text of the American-Made Energy Act of 2011

This bill was introduced on May 3, 2011, in a previous session of Congress, but was not enacted. The text of the bill below is as of May 3, 2011 (Introduced).

Download PDF

Source: GPO

I

112th CONGRESS

1st Session

H. R. 1682

IN THE HOUSE OF REPRESENTATIVES

May 3, 2011

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

A BILL

To promote alternative and renewable fuels and domestic energy production, and for other purposes.

1.

Short title; table of contents

(a)

Short title

This Act may be cited as the American-Made Energy Act of 2011.

(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. 201. Definitions.

Sec. 202. Leasing program for lands within the Coastal Plain.

Sec. 203. Lease sales.

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. 210. Conveyance.

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.

I

American-Made Energy Trust Fund

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).

(2)

Investment

(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 respect to—

(1)

wind resources,

(2)

solar resources,

(3)

biomass resources,

(4)

biodiesel and renewable diesel resources,

(5)

renewable jet fuel,

(6)

waste to energy, including municipal solid waste technology and technologies to convert renewable biomass to electricity, biogas, and synthesis gas,

(7)

geothermal resources,

(8)

hydropower,

(9)

nuclear power,

(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.

II

Development of oil and gas resources of the Coastal Plain of Alaska

201.

Definitions

In this title:

(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.

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.
(b)

Repeal

(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 this determination.

(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.

(e)

Special areas

(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.

(g)

Regulations

(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.

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.

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.

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 12½ 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.

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 that—

(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 Plain.

(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 migration.

(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 and wildlife.

(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 resources.

(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.

207.

Expedited judicial review

(a)

Filing of complaint

(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.

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.

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.

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.

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 section.

(b)

Use of assistance

Financial assistance under this section may be used only for—

(1)

planning for mitigation of the potential effects of oil and gas exploration and development on environmental, social, cultural, recreational, and subsistence values;

(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.

(c)

Application

(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 regulation.

(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 this section.

(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 this title.

(4)

Limitation on deposits

The total amount in the fund may not exceed $11,000,000.

(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.

III

Offshore oil and gas leasing

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.

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:

(i)

Education.

(ii)

Transportation.

(iii)

Reducing taxes.

(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 United States.

(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..