MOBILE COUNTY GULF OF MEXICO ENERGY SECURITY ACT EXPENDITURE PLAN 2018-2020 MOBILE COUNTY COMMISSION District 2 Connie Hudson, President District 1 Merceria Ludgood District 3 Jerry Carl RESOLUTION WHEREAS, the Mobile County Commission recognizes that the qualified outer continental shelf revenue sharing authorized by the Gulf of Mexico Energy Security Act (GOMESA) has the potential to be a great asset to Mobile County; and WHEREAS, Mobile County desires to guide investment of these revenues by establishing direction and priorities that span multiple ?scal years; and WHEREAS, the Mobile County Commission ?nds that it is in the public interest to dedicate the allocation of GOMESA revenues consistent With federal and state laws and in the interest of the welfare of the citizens and environment of Mobile County; and WHEREAS, the Mobile County Environmental Services Department has developed a GOMESA Expenditure Plan to enable the County to more efficiently and effectively fund environmental projects with qualified outer continental shelf revenues consistent with the Act and applicable regulations. NOW, THEREFORE, BE IT RESOLVED BY THE MOBILE COUNTY COMMISSION THAT MOBILE GOMESA EXPENDITURE PLAN IS HEREBY APPROVED. DONE this Dismay of September, 2018, at Mobile County, Alabama. MOBILE COUNTY COMMISSION CONNIE HUDS N, PRESIDE J, 1? 1/ Administrator Table of Contents Background and Purpose 1 Project Selection Process and Funding Allocations 1 Project Descriptions 4 Appendix A: Gulf of Mexico Energy Security Act Appendix B: Federal Register Vol. 80, No. 250, 12/30/15 Appendix C: Catalog of Federal Domestic Assistance (15.435) Background The Gulf of Mexico Energy Security Act (GOMESA) provides four Gulf Coast states (Alabama, Mississippi, Louisiana, and Texas) and their Coastal Political Subdivisions, with 37.5 percent of quali?ed federal revenue gained from Outer Continental Shelf leases. Revenue sharing is capped at $500 million through federal FY 2055, but the revenue sharing established under GOMESA will continue beyond that date. The first payment of from Phase II of GOMESA was received by Mobile County in April 2018. Projections provided by the Of?ce of Natural Resources Revenue indicate revenue will likely remain at or near the level through 2020. Coastal Political Subdivisions may spend GOMESA funds on the federally approved uses included in the Act: - Coastal Protection?conservation, restoration, hurricane protection - Mitigation of damage to wildlife or natural resources - Implementation of a federally approved conservation management plan - Mitigation of effects from OCS activities through onshore infrastructure project 0 Associated planning and administrative expenses (capped) The Gulf of Mexico Energy Security Act text, the 12/30/ 15 Federal Register ?nalizing the GOMESA Phase II allocation and distribution of revenues regulations and a copy of the GOMESA Catalog of Federal Domestic Assistance can be found in Appendices Purpose and Authorization The Mobile County Commission developed this Gulf of Mexico Energy Security Act Expenditure Plan (GEP) to guide investment of revenue over a three year planning horizon. Upon adoption of the GEP, the Commission authorizes the use of GOMESA funds from the Fiscal Years 2018 through FY 2020 distributions to fund implementation of the projects included herein and allocates the total estimated cost to the same. This plan may be amended by vote of the Mobile County Commission to accommodate changes in revenue distribution amounts, new project priorities, or to increase project allocation levels. The Environmental Services Department will lead implementation of the plan and projects. Project Selection Process Mobile County Commission established a program management team approach to develop and implement a process for selecting projects to be included in the GOMESA'Expenditure Plan. Staff from multiple departments within the Administration arm of the Commission worked to identify feasible projects that are consistent with the Authorized Uses and Mobile County project 1 needs and priorities. The outline below describes the steps included in the project selection process. 0 Set focus areas/priorities 0 Review Mobile Mobile County Initial Review GOMESA .geggtfo; . er evrew Project th 0 ues nor aion Review 0 Review and Consider - Evaluate and Select Recommended Projects 0 Prepare Draft Expenditure Plan 0 Commission Review and Adoption Select Projects Initial Review Consider needs and priorities identi?ed during preliminary meetings with County Commission to establish focus areas or project types that will guide project selection. Consider potential projects from Mobile County Project Suggestion posted on Alabama Gulf Coast Recovery Council (AGCRC) Portal. Determine which projects meet basic eligibility criteria and focus area/need to ?nalize list of projects that will move forward for Further Review Further Review Once selected for further review, further information will be requested in order to obtain information necessary to validate the proposed project. This information should include a narrative that describes the purpose and need, a description of the scope of work, and a detailed budget and budget narrative along with estimated cash needs by quarter. Review additional information taking into consideration additional factors established by the Commission and prepare potential slate(s) of projects to assist with ?nal project determinations. For example, such slates could provide potential ways to combine projects within certain ranges of funding and forecast cash needs. Select Projects 0 Evaluate slate of proposed projects to determine feasible projects to recommend be included in the GOMESA Expenditure Plan. Project evaluations will include, but are not limited to, feasibility, budget reasonableness, readiness review and regulatory requirements/permit status. 0 Prepare Draft Expenditure Plan by creating one page summaries of each project, an expenditure/budget summary, and an introductory description that describes focus areas/priorities and the project selection process. 0 Submit draft GEP for Commission review and adoption to authorize projects. The following table lists the projects selected for funding through the 2018-2020 GOMESA Expenditure Plan and the corresponding total project allocation. estimated annual expenditures for each project. The table also includes Mobile County GOMESA Expenditure Plan 2018 Project Allocations and Estimated Annual Expenditures 17.016; Public Access '18-01 Acquisition $1,800,000 0 0 $1,800,000 Permeable Paving? 18-02 Soccer Complex $300,000 $900,000 0 $1,200,000 18-03 Dirt Road Paving $250,000 $650,000 0 $900,000 Conservation Land 18-04 Management $165,000 $240,000 $215,000 $620,000 Public Access Master Plan Development (Chickasabogue Park, 18-05 River Delta) $125,000 $725,000 $2,300,000 $3,150,000 I Public Information 18?06 Program $100,000 $25 0,000 $250,000 $600,000 Recycle Program 18-07 Support $100,000 $75,000 $75,000 $250,000 GOMESA Program 18-08 Administration $90,000 $90,000 $90,000 $270,000 NOAA Storm Surge 18-09 Monitoring Agreement $70,000 $70,000 $70,000 $210,000 0 Totals $3,000,000 $3,000,000 $3,000,000 $9,000,000 MOBILE COUNTY GULF OF MEXICO ENERGY SECURITY ACT EXPENDITURE PLAN PROJECT TITLE: Public Access Acquisition PROJECT NUMBER: 18-01 PROJECT SUMMARY: This project involves land acquisition focused on providing public access to water. ESTIMATED COST: Total Project Cost $1,800,000 . Year 1 $1,800,000 Year 2 $0 Year 3 $0 GOAL: Increase the public?s access to coastal and riverine shorelines in Mobile County. OBJECTIVE: Acquire waterfront property from willing sellers that is suitable for providing the public with new or improved opportunities for recreation along local waters. AUTHORIZED USES This project meets the criteria set forth in Authorized Use implementation of a federally-approved marine, coastal, or comprehensive conservation management plan. 0 Bene?t to the Natural Coastal Environment: Lands acquired for this project will be managed so that public access is controlled to limit impacts and protect the surrounding environment. MOBILE COUNTY GULF OF MEXICO ENERGY SECURITY ACT EXPENDITURE PLAN PROJECT TITLE: Permeable Paving-Soccer Complex PROJECT NUMBER: 18-02 PROJECT SUMMARY: Construct innovative storm water management infrastructure at Mobile County Soccer Complex. ESTIMATED COST: Total Project Cost $1,200,000 Year 1 $300,000 Year 2 $900,000 Year 3 $0 GOAL: Mobile County Soccer Complex parking areas serve as an example of innovative storm water management controls. OBJECTIVE: Utilize a permeable parking paver system to reduce the need for above ground detention, control the quantity of storm water runoff and remove large debris from runoff. AUTHORIZED USES This project meets the criteria set forth in Authorized Use projects and activities for the conservation, protection, or restoration of coastal areas, including wetland. Bene?t to the Natural Coastal Environment: This approach will prevent litter from reaching the storm water conveyance system, reduce sediment and other pollutants in run off and thereby improve water quality entering the Dog River watershed. GULF OF MEXICO ENERGY SECURITY ACT EXPENDITURE PLAN PROJECT TITLE: Dirt Road Paving (Sediment Reduction) Engineering Design PROJECT NUMBER: 18-03 PROJECT SUMMARY: This project will focus on the selection and design for paving of dirt roads to be included in the RESTORE Act State Expenditure Plan project. ESTIMATED COST: Total Project Cost $900,000 Year 1 $250,000 Year 2 $650,000 Year 3 $0 GOAL: Reduce the number of miles of unpaved roads in coastal areas of Mobile County. OBJECTIVE: ?Perform engineering and design required to pave roads selected for the Sediment Reduction project to be funded by RESTORE Act through the Spill Impact Component. AUTHORIZED USES: This project meets the criteria set forth in Authorized Use projects and activities for the conservation, protection, or restoration of coastal areas, including wetland. Bene?t to the Natural Coastal Environment: To reduce the negative impact of sedimentation and erosion caused by the in?uence of runoff on unpaved roads by preventing erosion at the source with better drainage and stabilization. GULF OF MEXICO ENERGY SECURITY ACT EXPENDITURE PLAN PROJECT TITLE: Conservation and Land Management and Enhancement PROJECT NUMBER: 18-04 PROJECT SUMMARY: Continue activities designed to manage, enhance, and restore sensitive habitats on conservation land in Mobile County. ESTIMATED COST: Total Project Cost $620,000 Year 1 $165,000 Year 2 $240,000 Year 3 $215,000 GOAL: Sensitive habitats on County Conservation lands are restored, enhanced, and managed, using established best practices. OBJECTIVE: Engage in ongoing activities that include prescribed ?re, mechanical clearing and grubbing, and invasive species control to implement conservation land management plans on County owned property. AUTHORIZED USES This project meets the criteria set forth in Authorized Use projects and activities for the conservation, protection, or restoration of coastal areas, including wetland. Bene?t to the Natural Coastal Environment: Enhancement and/or restoration of sensitive habitats Mobile County will provide the much needed conservation, protection, and management of coastal natural resources. Indirect and direct bene?ts to the natural coastal environment include restoration of native shoreline vegetation, protection of shoreline property from coastal erosion, provision of controlled public access, restoration of wetland and stream bank impacts, and advancement of environmental stewardship. MOBILE COUNTY GULF OF MEXICO ENERGY SECURITY ACT EXPENDITURE PLAN PROJECT TITLE: Public Access Master Plan Development Implementation PROJECT NUMBER: 18-05 PROJECT SUMMARY This project will result in improved facilities at County owned parks to provide water based recreation opportunities. ESTIMATED COST: Total Project Cost $3,150,000 Year 1 $125,000 Year 2 $725,000 Year 3 $2,300,000 GOAL: Provide new and improved public access facilities at Mobile County parks that offer access to waterways of Alabama for swimming, paddling, ?shing, etc. OBJECTIVE: Use park and recreation planning and design best practices to develop and implement a Public Access Master Plan to increase public access to coastal and riverine areas and provide improved opportunities for recreation. AUTHORIZED USES This project meets the criteria set forth in Authorized Use implementation of a federally?approved marine, coastal, or comprehensive conservation management plan. 0 Bene?t to the Natural Coastal Environment: Public access to coastal areas in Mobile County will be more controlled and will provide increased opportunities for environmental education and recreation in order to foster support for conservation and restoration efforts. MOBILE COUNTY GULF OF MEXICO ENERGY SECURITY ACT EXPENDITURE PLAN PROJECT TITLE: Public Information Program PROJECT NUMBER: 18?06 PROJECT SUMMARY This environmental education and outreach project will focus on reaching target audiences through a range of activities identi?ed through a planning process that includes a diverse stakeholder group. ESTIMATED COST: Total Project Cost $600,000 Year 1 $100,000 Year 2 $250,000 Year 3 $250,000 GOAL: A planned and coordinated public information program results in a more resilient public, healthier watersheds, and lower costs associated with managing natural hazards and storm water. OBJECTIVE: Develop and implement a Public Information Program that is consistent with Community Rating System program guidance and focused. on changing attitudes and perceptions about watershed protection, natural hazards, and community resilience. AUTHORIZED USES This project meets the criteria set forth in Authorized Use projects and activities for the conservation, protection, or restoration of coastal areas, including wetland. Bene?t to the Natural Coastal Environment: Increased focus on targeted, ongoing environmental education and outreach activities will foster stewardship and support for conservation and restoration efforts. MOBILE COUNTY GULF OF MEXICO ENERGY SECURITY ACT EXPENDITURE PLAN PROJECT TITLE: Mobile County Recycle Program Support PROJECT NUMBER: 18-07 PROJECT SUMMARY: This project will support community recycling drop off activities at the Mobile County Recycle Center. ESTIMATED COST: Total Project Cost $250,000 Year 1 $100,000 Year 2 $75,000 Year 3 $75,000 GOAL: ?The Mobile County Recycling Center will reduce the amount of waste entering local land?lls by providing opportunities for the community to recycle. OBJECTIVE: Partner with Goodwill Easter Seals of the Gulf Coast to develop and implement long term strategies that provide support and funding for the Mobile County Recycle Center. AUTHORIZED USES This project meets the criteria set forth in Authorized Use projects and activities for the conservation, protection, or restoration of coastal areas, including wetland. Bene?t to the Natural Coastal Environment: Facilities and programs that make recycling possible promote environmental protection and wise stewardship of coastal resources. 10 MOBILE COUNTY GULF OF MEXICO ENERGY SECURITY ACT EXPENDITURE PLAN PROJECT TITLE: Mobile County GOMESA Program Administration PROJECT NUMBER: 18-08 PROJECT SUMMARY The Gulf of Mexico Energy Security Act authorizes the use of up to 3% of GOMESA revenue towards the costs of planning and administration (30 CF Part 1219.410). ESTIMATED COST: Cost estimated at 3% of proj ected $3,000,000 per year in GOMESA revenue distribution. Total Project Cost $270,000 Year 1 $90,000 Year 2 $90,000 Year 3 $90,000 GOAL: - The goal of this project is to effectively and ef?ciently administer the Mobile County GOMESA Program. OBJECTIVE: Develop and implement programs and projects that are consistent with the Authorized Uses and administer the expenditure of funds consistent with County and Federal regulations and requirements. Activities Will include, but not be limited to, grant administration and project development and management tasks performed by staff, property acquisition due diligence tasks, environmental assessments, surveying and mapping, and training related to grant administration, and project implementation. AUTHORIZED USES This project meets the criteria set forth in Authorized Use planning assistance and administrative costs. 0 Bene?t to the Natural. Coastal Environment: This is not applicable to this project. 11 3 GULF OF MEXICO ENERGY SECURITY ACT EXPENDITURE PLAN PROJECT TITLE: Storm Surge Monitoring Program PROJECT NUMBER: 18-09 PROJECT SUMMARY: This project continues support for the existing ?ve storm surge network stations located along the western shore of Mobile Bay. ESTIMATED COST: Total Project Cost $210,000 Year 1 $70,000 Year 2 $70,000 Year 3 $70,000 GOAL: High quality data will be readily available to the public that supports planning for a responding to both episodic and long?term changes in water levels. OBJECTIVE: Continue partnership with the National Oceanic and Atmospheric Administration in operation and maintenance of the storm surge monitoring program network. AUTHORIZED USES: This project meets the criteria set forth in Authorized Use Coastal protection, hurricane protection, infrastructure directly affected by coastal wetland losses. 0 Benefit to the Natural Coastal Environment: Coordinated and. comprehensive data can be utilized to predict and analyze changes in the local area?s weather patterns and will aid in assessing the best course of action to protect environmentally sensitive habitats from the harm?ll effects of these changes and/or severe weather events. Restoration planning efforts will bene?t from having easily accessible water level data to monitor relative sea level rise and to model hydrodynamic conditions near project areas. 12 Appendix A Gulf of Mexico Energy Security Act Gulf of Mexico Energy Security Act of 2006. 43 USC 1331 note. 43 USC 1331 note. DIVISION PROVISIONS TITLE OF MEXICO ENERGY SECURITY SEC. 101. SHORT TITLE. This title may be cited as the ?Gulf of Mexico Energy Security Act of 2006?. SEC. 102. DEFINITIONS. In this title: (1) 181 term ?181 Area? means the area identi- ?ed in map 15, page 58, of the Proposed Final Outer Conti- nental Shelf Oil and Gas Leasing Program for 1997?2002, dated August 1996, of the Minerals Management Service, avail- able in the Of?ce of the Director of the Minerals Management Service, excluding the area offered in OCS Lease Sale 181, held on December 5, 2001. (2) 181 SOUTH term ?181 South Area? means any area?? (A) located?? south of the 181 Area; (ii) west of the Military Mission Line; and in the Central Planning Area; (B) excluded from the Proposed Final Outer Conti? nental Shelf Oil and Gas Leasing Program for 1997?2002, dated August 1996, of the Minerals Management Service; and (C) included in the areas considered for oil and gas leasing, as identified in map 8, page 37 of the document entitled ?Draft Proposed Program Outer Continental Shelf Oil and Gas Leasing Program 2007?2012?, dated February 2006. PUBLIC LAW 20, 2006 120 STAT. 3001 (3) BONUS OR ROYALTY term ?bonus or royalty credit? means a legal instrument or other written documenta- tion, or an entry in an account managed by the Secretary, that may be used in lieu of any other monetary payment (A) a bonus bid for a lease on the outer Continental Shelf; or (B) a royalty due on oil or gas production from any lease located on the outer Continental Shelf. (4) CENTRAL PLANNING term ?Central Planning Area? means the Central Gulf of Mexico Planning Area of the outer Continental Shelf, as designated in the document entitled ?Draft Proposed Program Outer Continental Shelf Oil and Gas Leasing Program 2007?2012?, dated February 2006. (5) EASTERN PLANNING term ?Eastern Planning Area? means the Eastern Gulf of Mexico Planning Area of the outer Continental Shelf, as designated in the document entitled ?Draft Proposed Program Outer Continental Shelf Oil and Gas Leasing Program 2007?2012?, dated February 2006. (6) 2002?2007 PLANNING term ?2002?2007 planning area? means any area? (A) located in? the Eastern Planning Area, as designated in the Proposed Final Outer Continental Shelf Oil and Gas Leasing Program 2002?2007, dated April 2002, of the Minerals Management Service; (ii) the Central Planning Area, as designated in the Proposed Final Outer Continental Shelf Oil and Gas Leasing Program 2002?2007, dated April 2002, of the Minerals Management Service; or the Western Planning Area, as designated in the Proposed Final Outer Continental Shelf Oil and Gas Leasing Program 2002?2007, dated April 2002, of the Minerals Management Service; and (B) not located in? an area in which no funds may be expended to conduct offshore preleasing, leasing, and related activities under sections 104 through 106 of the Depart- ment Of the Interior, Environment, and Related Agen? cies Appropriations Act, 2006 (Public Law 109?54; 119 Stat. 521) (as in effect on August 2, 2005); (ii) an area Withdrawn from leasing under the ?Memorandum on Withdrawal of Certain Areas of the United States Outer Continental Shelf from Leasing 34 Weekly Comp. Pres. Doc. 1111, dated June 12, 1998; or the 181 Area or 181 South Area. (7) GULF PRODUCING term ?Gulf producing State? means each Of the States of Alabama, Louisiana, Mis? sissippi, and Texas. (8) MILITARY MISSION term ?Military Mission Line? means the north?south line at 86?41? W. longitude. (9) QUALIFIED OUTER CONTINENTAL SHELF (A) IN term ?quali?ed outer Conti? nental Shelf revenues? means? in the case of each Of ?scal years 2007 through 2016, all rentals, royalties, bonus bids, and other sums 120 STAT. 3002 PUBLIC LAW 20, 2006 43 USC 1331 note. due and payable to the United States from leases entered into on or after the date of enactment of this Act for? (I) areas in the 181 Area located in the Eastern Planning Area; and (II) the 181 South Area; and (ii) in the case of ?scal year 2017 and each ?scal year thereafter, all rentals, royalties, bonus bids, and other sums due and payable to the United States received on or after October 1, 2016, from leases entered into on or after the date of enactment of this Act for? (I) the 181 Area; (II) the 181 South Area; and the 2002?2007 planning area. (B) term ?quali?ed outer Conti? nental Shelf revenues? does not include? 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; or (ii) revenues generated from leases subject to sec- tion 8(g) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337030). (10) COASTAL POLITICAL term ?coastal political subdivision? means a political subdivision of a Gulf producing State any part of which political subdivision is? (A) Within the coastal zone (as de?ned in section 304 of the Coastal Zone Management Act of 1972 (16 U.S.C. 1453)) of the Gulf producing State as of the date of enact? ment of this Act; and (B) not more than 200 nautical miles from the geographic center of any leased tract. (11) term ?Secretary? means the Sec? retary of the Interior. SEC. 103. OFFSHORE OIL AND GAS LEASING IN 181 AREA AND 181 SOUTH AREA OF GULF OF NIEXICO. 181 AREA LEASE SALE?Except as provided in section 104, the Secretary shall offer the 181 Area for oil and gas leasing pursuant to the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) as soon as practicable, but not later than 1 year, after the date of enactment of this Act. 181 SOUTH AREA LEASE SALE. ?The Secretary shall offer the 181 South Area for oil and gas leasing pursuant to the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) as soon as practicable after the date of enactment of this Act. LEASING 181 Area and 181 South Area shall be offered for lease under this section notwithstanding the omission of the 181 Area or the 181 South Area from any outer Continental Shelf leasing program under section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 1344). CONFORMING 105 of the Department of the Interior, Environment, and Related Agencies Appropriations Act, 2006 (Public Law 109?54; 119 Stat. 522) is amended by inserting ?(other than the 181 South Area (as de?ned in section PUBLIC LAW 20, 2006 120 STAT. 3003 102 of the Gulf of Mexico Energy Security Act of 2006))? after ?lands located outside Sale 181?. SEC. 104. MORATORIUM ON OIL AND GAS LEASING IN CERTAIN AREAS OF GULF OF NIEXICO. IN GENERAL?Effective during the period beginning on the date of enactment of this Act and ending on June 30, 2022, the Secretary shall not offer for leasing, preleasing, or any related activity? (1) any area east of the Military Mission Line in the Gulf of Mexico; (2) any area in the Eastern Planning Area that is within 125 miles of the coastline of the State of Florida; or (3) any area in the Central Planning Area that is? (A) within?? the 181 Area; and (ii) 100 miles of the coastline of the State of Florida; or outside the 181 Area; (ii) east of the western edge of the Pensacola Of?cial Protraction Diagram (UTM coordinate 1,393,920 (NAD 27 feet)); and within 100 miles of the coastline of the State of Florida. MILITARY MISSION LINE?Notwithstanding subsection the United States reserves the right to designate by and through the Secretary of Defense, with the approval of the President, national defense areas on the outer Continental Shelf pursuant to section 12(d) of the Outer Continental Shelf Lands Act (43 U.S.C. 1341(d)). EXCHANGE OF CERTAIN (1) IN Secretary shall permit any person that, as of the date of enactment of this Act, has entered into an oil or gas lease with the Secretary in any area described in paragraph (2) or (3) of subsection to exchange the lease for a bonus or royalty credit that may only be used in the Gulf of Mexico. (2) VALUATION OF EXISTING amount of the bonus or royalty credit for a lease to be exchanged shall be equal to? (A) the amount of the bonus bid; and (B) any rental paid for the lease as of the date the lessee noti?es the Secretary of the decision to exchange the lease. (3) REVENUE bonus or royalty credit may be used under this subsection in lieu of any payment due under, or to acquire any interest in, a lease subject to the revenue distribution provisions of section 8(g) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(g)). (4) later than 1 year after the date of enactment of this Act, the Secretary shall, promulgate regula? tions that shall provide a process for?? (A) notification to the Secretary of a decision to exchange an eligible lease; (B) issuance of bonus or royalty credits in exchange for relinquishment of the existing lease; 43 USC 1331 note. Effective date. Termination date. Deadline. 120 STAT. 3004 PUBLIC LAW 20, 2006 (C) transfer of the bonus or royalty credit to any other person; and (D) determining the proper allocation of bonus or roy? alty credits to each lease interest owner. 43 USC 1331 SEC. 105. DISPOSITION OF QUALIFIED OUTER CONTINENTAL SHELF note. REVENUES FROM 181 AREA, 181 SOUTH AREA, AND 2002? 2007 PLANNING AREAS OF GULF OF MEXICO. IN section 9 of the Outer Conti- nental Shelf Lands Act (43 U.S.C. 1338) and subject to the other provisions of this section, for each applicable ?scal year, the Sec? retary Of the Treasury shall deposit? (1) 50 percent of quali?ed outer Continental Shelf revenues in the general fund of the Treasury; and (2) 50 percent of quali?ed outer Continental Shelf revenues in a special account in the Treasury from which the Secretary shall disburse? (A) 75 percent to Gulf producing States in accordance with subsection and (B) 25 percent to provide ?nancial assistance to States in accordance with section 6 of the Land and Water Con? servation Fund Act of 1965 (16 U.S.C. 4601?8), which shall be considered income to the Land and Water Conservation Funid for purposes of section 2 of that Act (16 U.S.C. 460 . - ALLOCATION AMONG GULF PRODUCING STATES AND COASTAL POLITICAL (1) ALLOCATION AMONG GULF PRODUCING STATES FOR FISCAL YEARS 2007 THROUGH 2016.? Regulations. (A) IN to subparagraph (B), effective EffectiVe dates- for each of ?scal years 2007 through 2016, the amount made available under subsection shall be allocated to each Gulf producing State in amounts (based on a for- mula established by the Secretary by regulation) that are inversely proportional to the respective distances between the point on the coastline of each Gulf producing State that is closest to the geographic center of the applicable leased tract and the geographic center of the leased tract. (B) MINIMUM amount allocated to a Gulf producing State each ?scal year under subparagraph (A) shall be at least 10 percent of the amounts available under subsection (2) ALLOCATION AMONG GULF PRODUCING STATES FOR FISCAL YEAR 2017 AND Effective dates. (A) IN to subparagraphs (B) and Regulations (C), effective for ?scal year 2017 and each ?scal year thereafter?? the amount made available under subsection from any lease entered into within the 181 Area or the 181 South Area shall be allocated to each Gulf producing 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 Gulf pro- ducing State that is closest to the geographic center of the applicable leased tract and the geographic center of the leased tract; and PUBLIC LAW 20, 2006 120 STAT. 3005 (ii) the amount made available under subsection from any lease entered into within the 2002? 2007 planning area shall be allocated to each Gulf producing State in amounts that are inversely propor- tional to the respective distances between the point on the coastline of each Gulf producing State that is closest to the geographic center Of each historical lease site and the geographic center of the historical lease site, as determined by the Secretary. (B) MINIMUM amount allocated to a Gulf producing State each ?scal year under subparagraph (A) shall be at least 10 percent of the amounts available under subsection (C) HISTORICAL LEASE Effective dates. IN to clause for purposes Temlination of subparagraph the historical lease sites in dates' the 2002?2007 planning area shall include all leases entered into by the Secretary for an area in the Gulf Of Mexico during the period beginning on October 1, 1982 (or an earlier date if practicable, as determined by the Secretary), and ending on December 31, 2015. (ii) January 1, 2022, and every 5 years thereafter, the ending date described in clause shall be extended for an additional 5 calendar years. (3) PAYMENTS TO COASTAL POLITICAL (A) IN Secretary shall pay 20 percent of the allocable share of each Gulf producing State, as determined under paragraphs (1) and (2), to the coastal political subdivisions of the Gulf producing State. (B) amount paid by the Secretary to coastal political subdivisions shall be allocated to each coastal political subdivision in accordance with subpara- graphs (B), (C), and (E) of section 31(b)(4) of the Outer Continental Shelf Lands Act (43 U.S.C. amounts required to be deposited under para? graph (2) of subsection for the applicable ?scal year shall be made available in accordance with that paragraph during the ?scal year immediately following the applicable ?scal year. AUTHORIZED (1) IN to paragraph (2), each Gulf pro- ducing State and coastal political subdivision shall use all amounts received under subsection in accordance with all applicable Federal and State laws, only for 1 or more of the following purposes: (A) Projects and activities for the purposes of coastal protection, including conservation, coastal restoration, hurricane protection, and infrastructure directly affected by coastal wetland losses. (B) Mitigation of damage to ?sh, wildlife, or natural resources. (C) Implementation of a federally-approved marine, coastal, or comprehensive conservation management plan. (D) Mitigation of the impact of outer Continental Shelf activities through the funding Of onshore infrastructure projects. 120 STAT. 3006 PUBLIC LAW 20, 2006 (E) Planning assistance and the administrative costs of complying with this section. (2) more than 3 percent of amounts received by a Gulf producing State or coastal political subdivi- sion under subsection may be used for the purposes described in paragraph made available under sub- section shall?- (1) be made available, without further appropriation, in accordance with this section; (2) remain available until expended; and (3) be in addition to any amounts appropriated under?- (A) the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq); (B) the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 4601?4 et seq); or (C) any other provision of law. LIMITATIONS ON AMOUNT OF DISTRIBUTED QUALIFIED OUTER CONTINENTAL SHELF (1) IN to paragraph (2), the total amount of quali?ed outer Continental Shelf revenues made available under subsection shall not exceed $500,000,000 for each of ?scal years 2016 through 2055. the purpose of paragraph (1), for each of ?scal years 2016 through 2055, expenditures under subsection shall be net of receipts from that ?scal year from any area in the 181 Area in the Eastern Planning Area and the 181 South Area. (3) PRO RATA paragraph (1) limits the amount of quali?ed outer Continental Shelf revenue that would be paid under subparagraphs (A) and (B) of subsection (A) the Secretary shall reduce the amount of quali?ed outer Continental Shelf revenue provided to each recipient on a pro rata basis; and (B) any remainder of the quali?ed outer Continental Shelf revenues shall revert to the general fund of the Treasury. Appendix Federal Register Vol. 80, N0. 250, 12/30/15 Allocation and Disbursement of Royalties, Rentals, and Bonuses?Oil and Gas, Offshore 81454 Federal Register/Vol. 80, No. 250/ Wednesday, December 30, 2015/ Rules and Regulations run. Round the final value for flow rate to two decimal places and record that value. (2) pray force. Test each unit in I accordance? with the test requirements specified in sections 6.2 and 6.4 through . 9.1 through 9.5.3.2 . (Preparation Of Apparatus), and 10.3-1 through 10.3.8 (Procedure) Of ASTM In section 9.1 of ASTM A .F2324?13,2the second instance of ?prerinse spray valve? refers to the deck-mounted prerinse unit 'definjedijinsection 6.8. In lieu of using manufacturer installation instructions or packaging, always connect the commercial prerinse spray valve to the ?ex tubing for testing. Record the water temperature and dynamic water ,4 pressure. (psi) once at the start for each . A. frun of the test. In order to calculate the . .imean spray force value for the unit ..1. ,.under,test, there are two measurements per run, and there are three runs per test. For each run of the test, record a minimum?of two spray force measurements and calculate the mean Of the measurements over the 15-second time period of stabilized ?ow during spray force testing. Record the time (min) once. at the end of each run of the test. Record spray force measurements . at the resolution of the test instrumentation. Conduct three runs on each unit, as specified in section 10.3.8 of ASTM but disregard any referen?cie's- to Annex A1. Ensure the unit has been stabilized separately during each run. Then for each unit, calculate and record the mean of the spray force values determined from each run. Round the final value for spray force to one decimal place. Testing and calculations for a unit with multiple spray settings. If a unit I. has, multiple?user-selectable spray settings, or includes multiple spray faces that can be installed, for each possible spray setting or spray face: (1) Measure both the ?ow rate and spray 'fO'rc?e according to paragraphs and (2) of this section (including calculating the mean flow rate and mean spray force) for each spray setting; and I (2) Record the mean flow rate for each spray setting, rounded to two decimal . places. Record the mean spray force for .. each spray setting, rounded to one 1 decimalplace. I is revised to read i ?431.266 Energy conservation standards . . and their effective dates. Commercial prerinse spray valves manufactured on or after January 1, 2006, shall have a ?ow rate of not more than 1.6 gallons per minute. For the purposes of this standard, a commercial prerinse spray valve is a handheld device designed and marketed for use with commercial dishwashing and ware washing equipment that sprays water on dishes, ?atware, and other food service items for the purpose of removing food residue before cleaning the items. DOC. 2015?32805 Filed 12?29?15; 8:45 am] BILLING CODE SECURITIES AND EXCHANGE COMMISSION 17 CFR Part 242 [Release No. File NO. 37?01? 13] RIN Regulation Systems Compliance and Integrity; Correction AGENCY: Securities and Exchange Commission. ACTION: Final rule; correction. SUMMARY: The Securities and Exchange Commission (?Commission?) is making a technical correction to its rules concerning Regulation Systems Compliance and Integrity (?Regulation under the Securities Exchange Act of 1934 (?Exchange Act?) and conforming amendments to Regulation ATS under the Exchange Act, which applies to certain self-regulatory organizations (including registered clearing agencies), alternative trading systems plan processors, and exempt clearing agencies (collectively, entities?). DATES: Effective December 30, 2015. FOR FURTHER INFORMATION CONTACT: Sara Hawkins, Special Counsel, Office of Market Supervision, at (202) 551?5523 and Alexander Zozos, Attorney-Adviser, Office of Market Supervision, at (202) 551?6932, Division of Trading and Markets, Securities and Exchange Commission, 100 Street NE., Washington, DC 20549?7010. SUPPLEMENTARY INFORMATION: The Commission is making a technical correction to final rules that were published in the Federal Register on December 5, 2014 (79 FR 72251) as part of Regulation SCI under the Exchange Act and conforming amendments to Regulation ATS under the Exchange Act. List of Subjects in 17 CFR 242 Brokers; Confidential business information; Reporting and recordkeeping requirements; and Securities. Accordingly, 17 CFR Part 242 is corrected by making the following correcting amendment: PART M, SI-IO, ATS, AC, NMS AND SCI AND CUSTOMER MARGIN REQUIREMENTS FOR SECURITY I 1. The authority citation for Part 242 continues to read as follows: Authority: 15 U.S.C. 77g, 77q(a), 77s(a), 78b, 78c, 78g(c)(2), 78i(a), 781, 78m, 78n, 780(b), 780(c), 780(g), 78q(a), 78q(b), 78q(b), 78w(a), 78dd?1, 78mm, 80a? 23, 80a?29, and 80a?37. [Amended] I 2. Amend 242.1000 in paragraph (3) of the de?nition of SCI alternative trading system or SCI ATS, by revising the phrase ?until six months after satisfying any of paragraphs or of this section? to read ?until six months after any of paragraphs (1) or (2) of this definition?. Dated: December 22, 2015. Brent I. Fields, Secretary. Doc. 2015?32646 Filed 12?29?15; 8:45 am] BILLING CODE DEPARTMENT OF THE INTERIOR Bureau of Ocean Energy Management 30 CFR Part 519 RIN Office Of Natural Resources Revenue 30 CFR Part 1219 [Docket ID: D863610000 RIN Allocation and Disbursement of Royalties, Rentals, and Bonuses?Oil and Gas, Offshore AGENCY: Bureau of Ocean Energy Management and Office of Natural Resources Revenue, Interior. ACTION: Final rule. SUMMARY: In this final rule, the Department of the Interior moves the Gulf Of Mexico Energy Security Act of 2006?s Phase I regulations from the Bureau of Ocean Energy Management?s (BOEM) title 30 of the Code of Federal Regulations (CFR) chapter to the Office Of Natural Resources Revenue?s (ONRR) title 30 CFR chapter XII and clarifies and adds minor definition changes to these current revenue? Federal Register/Vol. 80, No. 250/ Wednesday, December 30, 2015/ Rules and Regulations 81455 sharing regulations. Additionally, ONRR amends these regulations concerning the distribution and disbursement of qualified revenues from certain leases on the Gulf of Mexico?s Outer Continental Shelf, under the provisions of the Gulf of Mexico Energy Security Act of 2006. These regulations set forth - formulas and methodologies for calculating and allocating revenues to the States of Alabama, Louisiana, Mississippi, and Texas; their eligible COaStal political subdivisions; the Land and Water Conservation Fund; and the United States Treasury. DATES: Ejj?ective: January 29, 2016. FOR FURTHER INFORMATION CONTACT: For questions, contact Karen Osborne, Supervisory Management 8: Program Analyst, Office of the Deputy Director, ONRR, .at karen.osb0rne@onrr. gov. SUPPLEMENTARY INFORMATION: I. Background President George W. Bush signed the Gulf of Mexico Energy Security Act of - 2006 (GOMESA or Act) into law on (December 20, 2006 (Pub. L. 109?432, 120 Stat. 2922; 43 U.S.C. 1331 note), as part of HR. 6111, The Tax Relief and Health Care Act of 2006. With regard to the Gulf of Mexico (GOM) Outer Continental Shelf (OCS) provisions (Division C, Title 1, 120 Stat. 3000), .GOMESA: Provided for sharing of leasing revenues with Gulf producing States, coastal political subdivisions (CPSs) within those States, and the Land and Water Conservation Fund (LWCF), for coastal protection, conservation, and restoration projects. 0 Lifted the congressional 'moratorium'on oil and gas leasing and develOpment in a portion of the Eastern and Central GOM. . Mandated lease sales for 8.3 million acres in the Eastern and Central GOM, including 5.8 million acres in the Central GOM previously under Congressional moratoria. Barred, until June 30, 2022, oil and gas leasing within 125 miles of the Florida coastline in the Eastern Planning Area, and 100 miles of the Florida coastline in the Central Planning Area, as well as in all areas in the GOM east of the Military Mission Line (86?41? W. longitude). 6 Established a process for lessees to exchange with the Federal Government certain existing leases in moratorium areas for bonus or royalty credits to use on other GOM leases. This final rule sets forth the Department of the Interior?s (DOI, hereafter plan to implement the second phase of GOMESA revenue sharing in fiscal year 2017 and beyond. In addition, we add several clarifications and conforming modifications to the GOMESA Phase I revenue-sharing regulations, currently available in regulations at part 519, subpart D, of 30 CFR chapter V. We add these changes to differentiate between the two GOMESA revenue- sharing phases. We also move the Phase I regulations from 30 CFR chapter V, part 519, subpart D, to regulations at 30 CFR cha ter XII. We published a final ru (73 FR 78622, December 23, 2008) in the Federal Register on the allocation and disbursement of qualified revenues from two designated areas in the Gulf of Mexico, known as the 181 Area in the Eastern Planning Area and the 181 South Area. That final rule addressed such allocation and disbursement for each of fiscal years 2007 through 2016, to which we refer as Phase revenue sharing. You can find depictions of the 181 Area and the 181 South Area on the map available at The majority of this new final rule covers revenue sharing from the 181 Area, the 181 South Area, and the 2002?2007 Planning Area subject to ?scal year 2017 and thereafter?to which we refer as Phase revenue sharing. To avoid confusion between the two GOMESA revenue? sharing phases, we are adding a new subpart in the regulations for GOMESA Phase II. The differences between GOMESA Phase I and Phase II include the calculation methodology, revenue-sharing areas, and the imposition of a cap on shared revenues in Phase II. Moving the GOMESA Phase I regulations to 30 CFR chapter XII and modifying the definitions does not change the existing revenue-sharing methodology applicable to GOMESA Phase I. We have drawn on the experience that we gained during the first few years of GOMESA Phase I revenue sharing, along with comments and questions that we received, to refine the definitions. We have worked to eliminate any uncertainty, consistent with the Secretary?s authority under GOMESA. For each of the fiscal years 2017 and thereafter, GOMESA. directs the Secretary of the Interior to deposit 50 percent of qualified OCS revenues (Phase II) that we receive on or after October 1, 2016, from certain OCS oil and gas leases in the 181 Area, the 181 South Area, and the 2002?2007 Planning Area, into a special account in the US. Treasury. From that account, we distribute 25 percent of the qualified revenues to the LWCF and distribute the remaining 75 percent to the States of Alabama, Louisiana, Mississippi, and Texas (which we collectively identify as the ?Gulf producing States?) and their eligible CPSs. Under GOMESA Phase II, we share the revenues from leases that the Department issued on or after I December 20, 2006, in the 181 Area, the 181 South Area, and the 2002?2007 Planning Area. You can find the definition of these Phase II revenue- sharing areas in Section 102 of GOMESA, and you can also locate them on the map available at Map?Gallery. We allocate the GOMESA Phase II qualified OCS revenues among the Gulf producing States based upon proportional inverse distance calculations from applicable leased tracts (Phase II) in the 181 Area and- the 181 South Area, as well as historical lease sites in the 2002?2007 Planning Area, in accordance with GOMESA. The result of this inverse distance calculation is that States closest to the most applicable leased tracts (Phase well as historical lease sites?? will receive the greatest share of revenues. In determining each individual Gulf producing State?s share of the GOMESA Phase II qualified OCS revenues, GOMESA provides that no State receives less than 10 percent of the revenues that we disburse to the Gulf producing States, regardless of the amount that the application of the proportional inverse distance formula establishes. Additionally, the shared revenues from certain GOMESA Phase II areas are subject to a cap of $500 million for each of fiscal years 2016 through 2055. The CPSs located in the States? coastal zone and within 200 nautical miles of the geographic center of any OCS leased tract receive 20 percent of the qualified OCS revenues (Phase II) that GOMESA allocates to the State. We allOcate revenues to the CPSs based upon their in-State relative population, coastline length, and proportional inverse distance ?om applicable leased tracts (Phase II) in the 181 Area and historical lease sites in the 2002?2007 Planning Area. There are a few substantive differences between GOMESA Phase I and Phase II revenue sharing: First, the GOM acreage and resulting qualified revenues will be greater in GOMESA Phase II because Phase II acreage consists of the entire 181 Area, the 181 South Area, and the 2002?2007 Planning Area, whereas Phase I acreage consists of only the 181 Area in the Eastern Planning Area and the 181 South Area. Second, GOMESA Phase II requires that the proportional inverse 81456 Federal Register/Vol. 80, No. 250/ Wednesday, December 30, 2015/Rules and Regulations distance calculations be from both applicable leased tracts in the 181 Area and the 181 South Area and historical lease sites in the 2002?2007 Planning Area, rather than only from applicable leased tracts. Additionally, under GOMESA Phase II, we must update the group of historical lease sites in the 2002?2007 Planning Area once every five years. The result of the five-year periods between updates is that each Gulf producing State?s subset of inverse distances to historical lease sites remains static for five years following each update. Third, GOMESA Phase I ends with the disbursement of fiscal year 2016 qualified OCS revenues. GOMESA Phase II begins with the disbursement of fiscal year 2017 qualified OCS revenues. Fourth, for Phase II, GOMESA directs a $500 million annual cap on the majority of shared revenues, which equates to a $375 million annual cap among the four Gulf producing States and their eligible CPSs, and a $125 million annual cap to the LWCF. for each of fiscal years 2016 through 2055. Revenues Shared Under GOMESA Phase II Qualified OCS revenues under GOMESA Phase II are revenues from leases that the Department issued after the passage of GOMESA (December 20, 2006) in the 181 Area, the 181 South Area, and the 2002?2007 Planning Area, as GOMESA delineates. Excluded Acreage Selected acreage in the De Soto Canyon Protraction Area does not fall 'within the 181 Area, the 181 South Area, or the 2002?2007 Planning Area, as defined by GOMESA. You can locate the 21 blocks in the De Soto Canyon Protraction area bordering the Eastern Planning Area and not covered under GOMESA on the ?Call for Information and Nominations Map, Central Planning Area Lease Sale 213,? available at d-Gas-Energy? 3/ indexaspx. II. Cements on the Proposed Amendments ONRR and BOEM published the proposed rule on March 31, 2014 (79 FR 17948), with a 60-day comment period. We received two comment letters on the proposed rule: One from a Gulf producing State, and one from a coastal political subdivision. We have analyzed the comments contained in the letters and discuss them below: Speci?c Comments on 30 CFR Part 121 9?Subpart E?O?fshore Oil and Gas, GOMESA Phase II Revenue Sharing (1) Definition of ?Qualified Outer Continental Shelf Revenues? (Section 12 19.5 1 1) a Public Comment: Jefferson Parish, Louisiana, commented that the exclusion in the proposed regulation of (1) user fees and (2) lease revenues explicitly excluded from GOMESA revenue sharing by statute or appropriations law is contrary to requirements. ONRR Response: As we discussed in the preamble of the proposed rule, the definition of ?qualified Outer Continental Shelf revenues (Phase is consistent with the regulations that we published for GOMESA Phase I revenue sharing (RIN In addition, this definition is consistent with other laws that appropriate OCS leasing revenues and fees by excluding any leasing revenues and fees that Congress may authorize DOI to retain in appropriations legislation or that are otherwise precluded from GOMESA revenue sharing. Beginning in Fiscal Year 2009, the Appropriations Acts for the Department of the Interior have contained language that excludes certain rental receipts from GOMESA qualified OCS revenues, which Congress has appropriated to fund certain Departmental operations. Appropriations legislation for Fiscal Year 2012 made that exclusion permanent. Additionally, we collect fees for cost recovery of special services, such as the transfer of a record title, based on the cost of providing those services. We collect these fees under the authority of the Independent Offices Appropriations Act (31 U.S.C. 9701) and the Office of Management and Budget?s Circular 25. We do not derive these fees from the lease. For these reasons, Congress designates such fees as part of the Department?s appropriation, and they do not qualify as qualified OCS revenues under GOMESA. See Pub. L. 111?88, October 30, 2009. Public Comment: The State of Louisiana commented that we should revise the definition of qualified OCS revenues to include all funds due and payable to the United States, rather than only funds that ONRR receives. Louisiana expressed concern that including only funds received as qualified OCS revenues suggests that the United States (and therefore the Gulf- producing States and their CPSs) may not receive monies owed, and that ONRR may be perceived as having no obligation to collect monies owed. ONRR Response: mission is ?to collect, disburse and verify Federal and Indian energy and other natural resource revenues on behalf of all Americans.? The Secretary entrusts ONRR with a fiduciary role, and we ensure timely receipt of all revenues that payors owe. All qualified rentals, royalties, bonus bids, and other sums that ONRR receives within a fiscal year and subsequently transfers to the appropriate receipt account establish the amount of revenues due and payable for that fiscal year. We believe that this definition is consistent with the intent of the GOMESA provisions and other applicable laws. (2) GOMESA $500,000,000 Cap and ONRR Disbursement of Qualified OCS Revenues (Phase II) (Section 1219.512) Public Comments: Jefferson Parish, Louisiana, commented that it is concerned with what it believes is an arbitrary annual cap of five hundred million dollars per ear. The State of Louisiana requested that States and their CPSs be allowed to direct all or a specified portion of their payments directly to a trustee. ONRR Response: GOMESA is explicit about the annual cap. GOMESA states that, for each of fiscal years 2016 through 2055, the total amount that the Department shares with the States, CPSs, and the LWCF cannot exceed $500,000,000 annually. ONRR does not have the authority to alter the application of the cap. GOMESA specifically enumerates the four States, CPSs, and the LWCF as the recipients of GOMESA revenue-sharing funds. standard practice is to disburse revenue-sharing funds to the Government entity with which the Department shares the revenues. In order to maintain consistency between this standard practice and the revenue sharing under GOMESA, ONRR will disburse revenues to the States, CPSs, and the LWCF, and not directly to trustees. (3) ONRR Allocates the Qualified OCS Revenues (Phase II) to Coastal Political Subdivisions Within the Gulf Producing States (Section 1219.514) Public Comment: Jefferson Parish, Louisiana, commented that the portion of the allocation formula based upon proportionate coastline for CPSs in Louisiana results in an inequity for Jefferson Parish, since parishes without a coastline in Louisiana receive greater allocations than Jefferson Parish, which has a coastline. ONRR Response: GOMESA specifically states in Section Federal Register/Vol. 80, No. 250/ Wednesday, December 30, 2015/ Rules and Regulations 81457 105(b)(3)(B) that allocations to coastal political subdivisions will be made in accordance with paragraphs (B), (C), and (E) of section 31(b)(4) of the OCSLA. Paragraph (B) specifies that 25 percent of the allocation be based on the number of miles of coastline a CPS has in proportion to the total number of miles of coastline of all CPSs within each State. For the State of Louisiana, paragraph (C) specifies a proxy coastline length for CPSs Without a coastline. GOMESA does not provide an option to adjust the coastline length of any CPSs in Louisiana that have a coastline shorter than the proxy coastline length. Although Jefferson Parish does receive a smaller portion of revenues relative to CPSs without a coastline, GOMESA does not provide the Department with the authority to address this issue without a legislative change. (4) ONRR Disbursement of Funds to Gulf Producing States and Eligible Coastal Political Subdivisions (Section 1219.516) Public Comment: The State of Louisiana commented that we should make the disbursement of allocated funds as quickly as practicable, but not later than March 315t of the year following the fiscal year of qualified OCS revenues. ONRR Response: ONRR intends to disburse funds as quickly as practicable, but we cannot guarantee that we will do so before March 315t of the following fiscal year. GOMESA requires that ONRR disburse funds within the following fiscal year?or by September 30th. intent is to make the disbursements as soon as possible, but the disbursements may depend on factors outside of authority. ONRR has modified the final rule to include language that states that we will disburse as soon as authorized and practicable each year. This final rule also makes non- substantive technical or clarifying changes to the proposed rule. In the interim, between development of the proposed rule and the final rule, we made a technical update in 1219.102 due to the United States Department of the Treasury disbursing monies only by Electronic Funds Transfer (EFT). Procedural Matters Regulatory Planning and Review {Executive Orders 12866 and 13563} Executive Order (E.O.) 12866 provides that the Office of Information and Regulatory Affairs (OIRA) of the Office of Management and Budget (OMB) will review all significant rulemakings. OIRA determined that this rule is not significant. Executive Order 13563 reaffirms the principles of ED. 12866, while calling for improvements in the Nation?s regulatory system to promote predictability; to reduce uncertainty; and to use the best, most innovative, and least burdensome tools for achieving regulatory ends. E.O. 13563 directs agencies to consider regulatory approaches that reduce burdens and maintain flexibility and freedom of choice for the public where these approaches are relevant, feasible, and consistent with regulatory objectives. E.O. 13563 emphasizes further that regulations must be based on the best available science and that the rulemaking process must allow for public participation and an open exchange of ideas. We have developed this rule in a manner consistent with these requirements. Regulatory Flexibility Act DOI certifies that this rule will not have a significant economic effect on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). This rule specifies the formulas and methodologies for distributing DUI-collected shared revenues to the qualified Gulf producing States, their CPSs, and the LWCF. This rule has no effect on the amount of royalties, rents, or bonuses that lessees, operators, or payors owe, regardless of size and, consequently, does not have a significant economic effect on offshore lessees or operators, including those classified as small businesses. Small entities may be the beneficiaries of contracts that GOMESA revenues fund and that Gulf producing States or CPSs manage for coastal protection, conservation, or restoration services, but that is solely at the local government entity?s discretion rather than the Federal Government?s discretion. It is not possible to estimate ultimate effect on small entities since, under the statute, States and CPSs will be the entities disbursing the shared revenues for one or more of the five GOMESA-authorized uses. Small Business Regulatory Enforcement Fairness Act This rulemaking is not a major rule under 5 U.S.C. 801 et seq. of the Small Business Regulatory Enforcement Fairness Act. This rule: Does not have an annual effect on the economy of $100 million or more. This rule?s provisions specify how we will allocate qualified OCS revenues to States and CPSs during the second phase of GOMESA revenue sharing. This rule has no effect on the amount of royalties, rents, or bonuses that lessees, operators, or payors owe, regardless of size and, consequently, does not have a significant adverse economic effect on offshore lessees or operators, including those classified as small businesses. The Gulf producing States and CPS recipients of the revenues will likely fund contracts that will benefit the local economies, small entities, and the environment. We believe that these annual effects will be less than $100 million. Does not cause a major increase in costs or prices for consumers, individual industries, Federal, State, local government agencies, or geographic regions. Does not have significant adverse effects on competition, employment, investment, productivity, innovation, or the ability of United States-based enterprises to compete with foreign- based enterprises. We project that the effects, if any, of distributing revenues to the States and CPSs, will be beneficial. Unfunded Mandates Reform/lat This rule does not impose an unfunded mandate on State, local, or Tribal governments or the private sector of more than $100 million per year. This rule does not have a significant or unique effect on State, local, or Tribal governments or the private sector. We are not required to provide a statement containing the information that the Unfunded Mandates Reform Act (2 U.S.C. 1501 et seq.) requires because this rule is not a mandate. This rule merely provides the formulas and methods to implement an allocation of revenue to certain States and eligible CPSs, as Congress directed. Takings 12630 Under the criteria in section 2 of ED. 12630, this rule does not have significant takings implications. This rule will not be a governmental action capable of interference with constitutionally protected property rights. This rule does not require a Takings Implication Assessment. Federalism 13132) Under the criteria in section 1 of ED. 13132, this rule does not have sufficient federalism implications to warrant the preparation of a Federalism summary impact statement. This rule does not substantially and directly affect the relationship between the Federal and State governments. To the extent that State and local governments have a role in OCS activities, this rule does not affect that role. 81458 Federal Register/Vol. 80, No. 250/ Wednesday, December 30, 2015/Rules and Regulations Civil justice Reform (E0. 12988] This rule complies with the requirements of ED. 12988. Specifically, this rule: a. Meets the criteria of section which requires that all regulations undergo review to eliminate errors and ambiguity and are written to minimize litigation. b. Meets the criteria of section which requires that we write regulations in clear language using clear legal standards. Consultation With Indian Tribes 13175] The Department of the Interior strives to strengthen its government-to- government relationship with Indian Tribes through a commitment to consultation with Indian Tribes and recognition of their right to self? governance and Tribal sovereignty. Under the Department?s consultation policy and the criteria in ED. 13175, we have evaluated this rule and determined that it has no substantial direct effects on Federally recognized Indian Tribes. Paperwork Reduction Act This rule: DOes not contain any information collection requirements. (2) Does not require a submission under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.). National Environmental Policy Act This rule does not constitute a major Federal action significantly affecting the quality of the human environment. We are not required to provide a detailed statement under the National Environmental Policy Act of 1969 (NEPA) because this rule qualifies for categorical exclusion under 43 CFR 46.210(c) and and the DOI Departmental Manual, part 516, section 15.4.D: Routine financial transactions including such things as . . audits, fees, bonds, and royalties . . . Policies, directives, regulations, and guidelines: That are of an administrative, financial, legal, technical, or procedural nature.? We have also determined that this rule is not involved in any of the extraordinary circumstances listed in 43 CFR 46.215 that require further analysis under NEPA. This rule does not alter, in any material way, natural resources exploration, production, or transportation. E??ects on the Energy Supply (E.O. 13211] This rule is not a significant energy action under the definition in ED. 13211. A Statement of Energy Effects is not required. List of Subjects 30 CFR Part 519 Government contracts, Mineral royalties, Oil and gas exploration, Public lands?mineral resources. 30 CFR Part 1219 Government contracts, Mineral royalties, Oil and gas exploration, Public lands?mineral resources. Ianice M. Schneider, Assistant Secretary?Land and Minerals Management. Kristen]. Sarri, Principal Deputy Assistant Secretary?Policy, Management and Budget. Authority and Issuance For the reasons stated in the preamble, under the authority provided by the Reorganization Plan No. 3 of 1950 (64 Stat. 1262) and Secretarial Order Nos. 3299, 3302, and 3306, the Department of the Interior amends part 519 of title 30 CFR chapter and part 1219 of 30 CFR chapter XII as follows: Chapter V?Bureau of Ocean Energy Management, Department of the interior Subchapter A?Minerals Revenue Management PART 519 AND I 1. Remove and reserve part 519 Chapter XII?Office of Natural Resources Revenue, Department of the interior Subchapter A?Natural Resources Revenue I 2. Revise part 1219 to read as follows: PART AND DISBURSEMENT OF ROYALTIES, RENTALS, AND BONUSES Subpart A?[Reserved] Subpart B?[Reserved] Subpart C?Oil and Gas, Onshore Sec. 1219.100 What is timing of payment to the States? 1219.101 What receipts are subject to an interest charge? 1219.102 What is method of payment to the States? 1219.103 How will ONRR manage payments to Indian accounts? 1219.104 What are Explanation of Payments to the States and Indian Tribes? 1219.105 What definitions apply to this subpart? Subpart D?Oil and Gas, Offshore, GOMESA Phase I Revenue Sharing 1219.410 What does this subpart contain? 1219.411 What definitions apply to this subpart? 1219.412 How will ONRR divide the qualified OCS revenues (Phase 1219.413 How will ONRR determine each Gulf producing State?s share of the qualified OCS revenues (Phase I) from leases in the 181 Area in the Eastern Planning Area and the 181 South Area? 1219.414 How will ONRR allocate the qualified OCS revenues (Phase I) to coastal political subdivisions within the Gulf producing States? 1219.415 How will ONRR allocate qualified OCS revenues (Phase I) to the coastal political subdivisions if, during any fiscal year, there are no applicable leased tracts in the 181 Area in the Eastern Gulf of Mexico Planning Area? 1219.416 When will ONRR disburse funds to Gulf producing States and eligible coastal political subdivisions? Subpart E?Oil and Gas, Offshore, GOMESA Phase II Revenue Sharing 1219.510 What does this subpart contain? 1219.511 What definitions apply to this subpart? 1219.512 How will ONRR divide the qualified OCS revenues (Phase 1219.513 How will ONRR determine each Gulf producing State?s share of the qualified OCS revenues (Phase II) from leases in the 181 Area, the 181 South Area, and the 2002?2007 Planning Area? 1219.514 How will ONRR allocate the qualified OCS revenues (Phase II) to coastal political subdivisions within the Gulf producing States? 1219.515 How will ONRR update the group of ?historical lease sites? and ?applicable leased tracts (Phase used for determining the allocation of shared revenues? 1219.516 When will ONRR disburse funds to Gulf producing States and eligible coastal political subdivisions? Authority: Section 104, Pub. L. 97?451, 96 Stat. 2451 (30 U.S.C. 1714), Pub. L. 109?432, Div. C, Title I, 120 Stat. 3000. Subpart A?[Reserved] Subpart B?[Reserved] Subpart C?Oil and Gas, Onshore ?1219.100 What is timing of payment to the States? ONRR will pay a State?s share of mineral leasing revenues to the State not later than the last business day of the month in which the US. Treasury issues a warrant authorizing the disbursement, except for any portion of such revenues which is under challenge 2 and placed in a suspense account 3 pending resolution of a dispute. 1219.101 What receipts are subject to an interest charge? Subject to the availability of appropriations, the Office of Natural Resources Revenue (ONRR) will pay the Federal Register/ Vol. 80, No. 250/ Wednesday, December 30, 2015/Ru1es and Regulations 81459 State its proportionate share of any interest charge for royalty and related monies that are placed in a suspense account pending resolution of any matters that may disallow distribution and disbursement. Such monies not disbursed by the last business day of the month following receipt by ONRR will accrue interest until paid. Upon resolution of any matters that may disallow distribution and disbursement, ONRR will disburse the suspended monies found due in paragraph of this section, plus interest, to the State, under the provisions of 1219.100. ONRR will apply paragraph of this section to revenues that ONRR cannot disburse to the State because the payer/lessee provided to ONRR incorrect, inadequate, or incomplete information, which prevented ONRR from identifying the proper recipient of the payment. 1219.102 What is method of payment to the States? ONRR will disburse monies to a State by Electronic Funds Transfer (EFT). 1219.103 How will ONRR manage payments to Indian accounts? ONRR will transfer mineral revenues l' - received from Indian leases to the appropriate Indian accounts that the Bureau of Indian Affairs (BIA) manages for allotted and Tribal revenues. These accounts are specifically designated Treasury accounts. ONRR will transfer these revenues to the Indian accounts at the earliest practicable date after such funds are received, but in no case later than the last business day of the month in which ONRR receives these revenues. 1219.104 What are Explanation of Payments to the States and Indian Tribes? ONRR will describe the payments to States and BIA, on behalf of Indian Tribes or Indian allottees, discussed in this part, in ONRR-prepared Explanation of Payment reports. ONRR will-prepare these reports at the lease level and will include a description of the type of payment made, the period covered by the payment, the source of the payment, sales amounts upon which the payment is based, the royalty rate, and the unit value. If any State or Indian Tribe needs additional information - pertaining to mineral revenue payments, the State or Tribe may request this information from ONRR. ONRR will provide these reports to: (1) States, not later than the 10th day of the month following the month in which ONRR disburses the State?s share of royalties and related monies. (2) BIA, on behalf of Tribes and Indian allottees, not later than the 10th day of the month following the month in which ONRR disburses the funds. (0) ONRR will not include in these reports revenues that we cannot distribute to States, Tribes, or Indian allottees because the payor/ lessee provided incorrect, inadequate, or incomplete information about the proper recipient of the payment, until the payor/ lessee has submitted to ONRR the missing information. 1219.105 What definitions apply to this subpart? Terms that ONRR uses in this subpart will have the same meaning as in 30 U.S.C. 1702. Subpart D?Oil and Gas, Offshore, GOMESA Phase I Revenue Sharing 1219.410 What does this subpart contain? The Gulf of Mexico Energy Security Act of 2006 (GOMESA) directs the Secretary of the Interior to disburse a portion of the rentals, royalties, bonus bids, and other sums derived from certain Outer Continental Shelf (OCS) leases in the Gulf of Mexico (GOM) to the States of Alabama, Louisiana, Mississippi, and Texas (collectively identified as the Gulf producing States); to eligible coastal political subdivisions (CPSs) within those States; and to the Land and Water Conservation Fund (LWCF). Shared GOMESA revenues are reserved for the following purposes: (1) Projects and activities for the purpose of coastal protection, including conservation, coastal restoration, hurricane protection, and infrastructure directly affected by coastal wetland losses; (2) Mitigation of damage to fish, wildlife, or natural resources; (3) Implementation of a federally- approved marine, coastal, or comprehensive conservation management plan; (4) Mitigation of the impact of OCS activities through the funding of onshore infrastructure projects; and (5) Planning assistance and administrative costs not-to-exceed 3 percent of the amounts received. This subpart sets forth the formula and methodology ONRR uses to determine the amount of revenues allocated and disbursed to each Gulf producing State and each eligible CPS for each of fiscal years 2007 through 2016. Leasing revenues disbursed under this subpart originate from leases issued on or after December 20, 2006, in the 181 Area in the Eastern Planning Area and the 181 South Area, subject to restrictions identified in GOMESA. We collectively refer to the revenue sharing from these areas for these fiscal years as GOMESA Phase I revenue sharing. For questions related to the revenue?sharing provisions in this subpart, please contact: Program Manager, Financial Management, Office of Natural Resources Revenue, PO. Box 25165, Denver Federal Center, Building 85, Denver, CO 80225?0165. 1219.411 What definitions apply to this subpart? For purposes of this subpart: 181 Area means the area identified in map 15, page 58, of the ?Proposed Final Outer Continental Shelf Oil and Gas Leasing Program for 199 7?2002,? dated August 1996, excluding the area offered in OCS Lease Sale 181, held on December 5, 2001. 1 81 Area in the Eastern Planning Area is comprised of the area of overlap of the two geographic areas defined as the ?181 Area? and the ?Eastern Planning Area.? 181 South Area means any area?- (1) Located: South of the 181 Area; (ii) West of the Military Mission Line; and In the Central Planning Area; (2) Excluded from the ?Proposed Final Outer Continental Shelf Oil and Gas Leasing Program for 1997?2002,? dated August 1996, of the Bureau of Ocean Energy Management; and (3) Included in the areas considered for oil and gas leasing, as identified in map 8, page 84, of the document entitled, ?Revised Outer Continental Shelf Oil and Gas Leasing Program 2007?2012,? approved December 2010. Applicable leased tract [Phase I means a tract that is subject to a lease under section 8 of the Outer Continental Shelf Lands Act (OCSLA), 43 U.S.C. 1337, for the purpose of drilling for, developing, and producing oil or natural gas resources, issued on or after December 20, 2006, and located fully or partially in either the 181 Area in the Eastern Planning Area or in the 181 South Area. Central Planning Area means the Central Gulf of Mexico Planning Area of the Outer Continental Shelf, as designated in the document entitled, ?Revised Outer Continental Shelf Oil and Gas Leasing Program 2007?2012,? approved December 2010. Coastal political subdivision means a political subdivision of a Gulf producing State, any part of which is: (1) Within the coastal zone (as defined in section 304 of the Coastal Zone Management Act of 1972 (16 U.S.C. 1453)) of the Gulf producing State as of December 20, 2006; and 81460 Federal Register/ Vol. 80, No. 250/ Wednesday, December 30, 2015/ Rules and Regulations (2) Not more than 200 nautical miles from the geographic center of any leased tract. Coastline means the line of ordinary low water along that portion of the coast which is in direct contact with the open sea and the line marking the seaward limit of inland waters. This is the same definition used in section 2 of the Submerged Lands Act (43 U.S.C. 1301). Distance means the minimum great - circle distance. Eastern Planning Area means the Eastern Gulf of Mexico Planning Area of the Outer Continental Shelf, as designated in the document entitled, ?Revised Outer Continental Shelf Oil and Gas Leasing Program 2007?2012,? approved December 2010. Gulf producing State means each of the States of Alabama, Louisiana, Mississippi, and Texas. Leased tract means any tract that is subject to a lease under section 6 or 8 of the Outer Continental Shelf Lands Act for the purpose of drilling for, developing, and producing oil or natural gas resources. Military Mission Line means the north?south line at 86?41? W. longitude. Qualified OCS revenues (Phase I 'means? . (1) In .the case of each of the fiscal years 2007 through 2016, all rentals, royalties, bonus bids, and other sums received by the United States from leases issued on or after December 20, 2006,10Cated: In the 181 Area in the Eastern . Planning Area. (ii) In the 181 South Area. (2) For applicable leased tracts intersected by the planning area administrative boundary line separating the GOM Central Planning Area from the Eastern Planning Area), . only the percent of revenues equivalent to the percent of surface acreage in the 181 Area in the Eastern Planning Area will be considered qualified OCS revenues [Phase I (3) Exclusions from the term qualified OCS revenues (Phase I are: Revenues from the forfeiture of a bond or other surety securing obligations other than royalties; (ii) Civil penalties; ?taken by the Secretary in-kind and not sold.? (Pub. L. 109?432, Dec. 20, 2006); (iv) Revenues generated from leases subject to section 8(g) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(8)); User fees; and . (vi) Lease revenues explicitly excluded from GOMESA revenue sharing by statute or appropriations law. 1219.412 How will ONRR divide the qualified OCS revenues (Phase For each of the fiscal years 2007 through 2016, the Secretary of the Treasury will deposit 50 percent of the qualified OCS revenues (Phase I) into a special US. Treasury account, from which ONRR will disburse 75 percent to the Gulf producing States and 25 percent to the Land and Water Conservation Fund (LWCF). Of the revenues disbursed to a Gulf producing State, we will disburse 20 percent directly to the CPSs within that State. Each Gulf producing State will receive at least 10 percent of the qualified OCS revenues (Phase I) available for allocation to the Gulf producing States each fiscal year. The following table summarizes the resulting revenue shares (adding to 100 percent): REVENUE DISTRIBUTION OF QUALIFIED OCS REVENUES UNDER GOMESA PHASE I Recipientecgeq?l?eglgied OCS 23333389390? revenues US. Treasury (General Fund) 50 Land and Water Conserva- tion Fund 12.5 Gulf Producing States 30 Gulf Producing State Coast- al Political Subdivisions .. 7.5 1219.413 How will ONRR determine each Gulf producing State?s share of the qualified OCS revenues (Phase I) from leases in the 181 Area in the Eastern Planning Area and the 181 South Area? ONRR will determine the great circle distance between: (1) The geographic center of each ap licable leased tract (Phase and 2) The point on the coastline of each Gulf producing State that is closest to the geographic center of each applicable leased tract (Phase I). Based on these distances, we will calculate the qualified OCS revenues (Phase I) to disburse to each Gulf producing State as follows: (1) For each Gulf producing State, we will calculate and total, over all applicable leased tracts (Phase I), the mathematical inverses of the distances between the points on the State?s coastline that are closest to the geographic centers of the applicable leased tracts (Phase I), and the geographic centers of the applicable leased tracts (Phase I). For applicable leased tracts intersected by the planning area administrative boundary line, we will use the geographic center of the entire lease for the inverse distance determination. (2) For each Gulf producing State, we will divide the sum of each State?s inverse distances from all applicable leased tracts (Phase I) calculated under paragraph (1), by the sum of the inverse distances from all applicable leased tracts (Phase I) across all four Gulf producing States. In the formulas below, IAL, ILA, IMS, and In; represent the sum of the inverses of the shortest distances between Alabama, Louisiana, Mississippi, and Texas and all applicable leased tracts (Phase 1), respectively. We will multiply the result by the amount of shareable, qualified OCS revenues (Phase I). Alabama Share (IAL (IAL ILA IMS Ind) qualified OCS revenues (Phase I) . Louisiana Share (ILA (IAL ILA IMS Ina) qualified OCS revenues (Phase I) Mississippi Share (IMS (IAL ILA IMS Irxll qualified OCS revenues (Phase I) Texas Share (In; (IAL ILA IMS qualified OCS revenues (Phase (3) If, in any fiscal year, this calculation results in less than a 10- percent allocation of the qualified OCS revenues (Phase I) to any Gulf producing State, we will recalculate the distribution. We will allocate 10 percent of the qualified OCS revenues (Phase I) to the affected State and recalculate the other States? shares of the remaining qualified OCS revenues (Phase I), omitting from the calculation the State receiving the 10-percent minimum share. 1219.414 How will ONRR allocate the qualified OCS revenues (Phase I) to coastal political subdivisions within the Gulf producing States? Of the qualified OCS revenues (Phase I) allocated to a Gulf producing State?s CPSs, ONRR will allocate 25 percent based on the proportion that each population bears to the population of all CPSs in the State. Of the qualified OCS revenues (Phase I) allocated to a Gulf producing State?s CPSs, we will allocate 25 percent based on the proportion that each miles of coastline bears to the total miles of coastline across all CPSs in the State. However, for the State of Louisiana, we will deem CPSs without a coastline to each have a coastline one? third the average length of the coastline of all CPSs within Louisiana that have a coastline. Of the qualified OCS revenues (Phase I) allocated to a Gulf producing State?s CPSs, we will allocate 50 percent in amounts that are inversely Federal Register/Vol. 80, No. 250/ Wednesday, December 30, 2015/Rules and Regulations 81461 proportional to the respective distances between: The point in each CPS that is closest to the geographic center of each applicable leased tract (Phase and (ii) The geographic center of each applicable leased tract (Phase I). (2) However, we will exclude distances to an applicable leased tract (Phase I) from this calculation if any portion of the tract is located in a geographic area that was subject to a leasing moratorium on January 1, 2005, unless the leased tract was in production on that date. 1219.415 How will ONRR allocate qualified OCS revenues (Phase I) to the coastal political subdivisions if, during any ?scal year, there are no applicable leased tracts in the 181 Area in the Eastern Gulf of Mexico Planning Area? . If, during any fiscal year, there are no applicable. leased tracts in the 181 Area in the Eastern Gulf of Mexico Planning Area, ONRR will allocate revenues to the CPSs in accordance with the following criteria: Of the qualified OCS revenues (Phase I) allocated to a Gulf producing State?s CPSs, we will allocate 50 percent 'based on the proportion that each populatiOn bears to the population of all CPSs in the State. . Of the qualified OCS revenues (Phase I) allocated to a Gulf producing State?s CPSs, we will allocate 50 percent based on the proportion that each miles of coastline bears to the total miles of coastline across all CPSs within the State. However, for the State of Louisiana, we will deem CPSs without a coastline to each have a coastline one- third the average length of the coastline of all CPSs within Louis'ana that have a coastline. 1219.416 When will ONRR disburse funds to Gulf producing States and coastal political subdivisions? ONRR will disburse GOMESA revenues as soon as authorized and practicable within the fiscal year following the year that we collect qualified OCS revenues (Phase I). SubpartVE?Oil and Gas, Offshore, GOMESA Phase ll Revenue Sharing ,121 9.51 0 What does this subpart contain? GOMESA directs the Secretary of the Interior to disburse a portion of the rentals, royalties, bonus bids, and other sums derivedfrom certain OCS leases in the COM to the States of Alabama, Louisiana, Mississippi, and Texas (collectively identified as the Gulf producing States); to eligible CPSs within those States; and to the LWCF. GOMESA directs the Gulf producing States and CPSs to use the shared revenues for the following purposes: (1) Projects and activities for the purpose of coastal protection, including conservation, coastal restoration, hurricane protection, and infrastructure directly affected by coastal wetland losses; (2) Mitigation of damage to fish, wildlife, or natural resources; (3) Implementation of a federally- approved marine, coastal, or comprehensive conservation management plan; (4) Mitigation of the impact of OCS activities through the funding of onshore infrastructure projects; and (5) Planning assistance and administrative costs not-to-exceed 3 percent of the amounts received. This subpart sets forth the formula and methodology ONRR will use to determine the amount of revenues allocated and disbursed to each Gulf producing State and each eligible CPS for fiscal year 2017 and each fiscal year thereafter. Leasing revenues disbursed under this subpart (also referred to as GOMESA Phase II) originate from leases issued on or after December 20, 2006, in the 181 Area, the 181 South Area, and the COM 2002?2007 Planning Area, subject to restrictions and caps identified in GOMESA. For questions related to the revenue-sharing provisions in this subpart, please contact: Program Manager, Financial Management, Office of Natural Resources Revenue, PO. Box 25165, Denver Federal Center, Building 85, Denver, CO 80225?0165, or at (3031219.511 What definitions apply to this subpart? For purposes of this subpart: 181 Area is defined at 1219.411. 181 South Area is defined at 1219.411. ?181 Area in the Central Planning Area? is comprised of the area of overlap of the two geographic areas defined at 1219.411 as the ?181 Area? and the ?Central Planning Area.? 2002?2007 Planning Area means any area-? (1) Located in? The Eastern Planning Area, as designated in the ?Proposed Final Outer Continental Shelf Leasing Program 2002?2007,? dated April 2002; (ii) The Central Planning Area, as designated in the ?Proposed Final Outer Continental Shelf Leasing Program 2002?2007,? dated April 2002; or The Western Planning Area, as designated in the ?Proposed Final Outer Continental Shelf Leasing Program 2002?2007,? dated April 2002; and (2) Not located in? An area in which no funds may be expended to conduct offshore preleasing, leasing, and related activities under sections 104 through 106 of the Department of the Interior, Environment, and Related Agencies Appropriations Act, 2006 (Pub. L. 109? 54; 119 Stat. 521) (as in effect on August 2, 2005); (ii) An area withdrawn from leasing under the ?Memorandum on Withdrawal of Certain Areas of the United States Outer Continental Shelf from Leasing Disposition,? from 34 Weekly Comp. Pres. Doc. 1111, dated June 12, 1998; or The 181 Area or 181 South Area. Applicable leased tract (Phase II means a tract that is subject to a lease under section 8 of the OCSLA, for the purpose of drilling for, developing, and producing oil or natural gas resources, issued on or after December 20, 2006, and located fully or partially in either the 181 Area or the 181 South Area. Central Planning Area is defined at 1219.411. Coastal political subdivision is defined at 1219.411. Coastline is defined at 1219.411. Distance is defined at 1219.411. Eastern Planning Area is defined at 1219.411. Gulf producing State is defined at 1219.411. Historical lease site means any tract in the 2002?2007 Planning Area leased on or after October 1, 1982, under section 8 of the OCSLA, for the purpose of drilling for, developing, and producing oil or natural gas resources. Leased tract is defined at 1219.411. Military Mission Line is defined at 1219.411. Quali?ed OCS revenues (Phase II means?? (1) In the case of fiscal year 2017 and each fiscal year thereafter, all rentals, royalties, bonus bids, and other sums received by the United States from leases that lessees enter(ed) into on or after December 20, 2006, located: In the 181 Area; (ii) In the 181 South Area; In the 2002?2007 Planning Area. (2) Exclusions from the term ?Quali?ed OCS revenues [Phase II are: Revenues from the forfeiture of a bond or other surety instrument securing obligations other than royalties; (ii) Civil enalties; Roya ties ?taken by the Secretary in?kind and not sold? (Pub. L. 109?432, Dec 20, 2006); (iv) Revenues generated from leases subject to section 8(g) of the Outer Continental Shelf Lands Act (43 U.S.C. 1 3 3 81462 Federal Register/Vol. 80, No. 250/ Wednesday, December 30, 2015/ Rules and Regulations User fees; and (vi) Lease revenues explicitly excluded from GOMESA revenue sharing by statute or appropriations law. (3) The term ?Quali?ed OCS revenues [Phase consists wholly of the two subsets defined as ?Qualified OCS revenues {Phase II?capped)? and ?Quali?ed OCS revenues (Phase uncapped)? Quali?ed OCS revenues (Phase capped means, in the case of fiscal year 2017 and each fiscal year thereafter, the . subset of qualified OCS revenues (Phase II) received by the United States from leases that lessees enter(ed) into on or after December 20, 2006, located: (A) In the 181 Area in the Central Planning Area; or (B) In the 2002?2007 Planning Area. (ii) Quali?ed OCS revenues {Phase II?uncapped] means, in the case of fiscal year 2017 and each fiscal year thereafter, the subset of qualified OCS revenues (Phase II) received by the United States from leases that lessees enter(ed) into on or after December 20, 2006, located: (A) In the 181 Area in the Eastern Planning Area, or (B) In the 181 South Area. ?1219.512 How will ONRR divide the qualified OCS revenues (Phase For ?scal year 2017 and each fiscal year thereafter, the Secretary of the Treasury will deposit 50 percent of the qualified OCS revenues (Phase uncapped) into a special US. Treasury account, from which ONRR will disburse 75 percent to the Gulf producing States and 25 percent to the . LWCF. Of the revenues disbursed to a Gulf producing State, we will disburse 20 percent directly to the CPSs within that State. Each Gulf producing State will receive at least 10 percent of the qualified OCS revenues (Phase uncapped) available for allocation to the Gulf producing States each fiscal year. . The following table summarizes the resulting revenue shares (adding to 100 percent): REVENUE DISTRIBUTION OF QUALIFIED OCS REVENUES (PHASE CAPPED) UNDER GOMESA PHASE II Recipienteo/fequfaelgied OCS Z?g?gljagcosf revenues US. Treasury (General Fund) 50 Land and Water Conserva- tion Fund 12.5 Gulf Producing States 30 Gulf Producing State Coast- al Political Subdivisions .. 7.5 For fiscal year 2017 and each fiscal year thereafter, the Secretary of the Treasury will deposit 50 percent of the qualified OCS revenues (Phase capped) into a special US. Treasury account. The total amount of qualified OCS revenues (Phase II?capped) deposited in the special US. Treasury account and available for allocation to the Gulf producing States, the CPSs and the LWCF, under this subpart, cannot exceed $500,000,000 for each of the fiscal years 2017 through 2055. After applying the cap, if applicable, ONRR will disburse 75 percent to the Gulf producing States and 25 percent to the LWCF. Of the revenues disbursed to 3 Gulf producing State, we will disburse 20 percent directly to the CPSs within that State. Each Gulf producing State will receive at least 10 percent of the qualified OCS revenues (Phase capped) available for allocation to the Gulf producing States each fiscal year. 1219.513 How will ONRR determine each Gulf producing State?s share of the qualified OCS revenues (Phase II) from leases in the 181 Area, the 181 South Area and the 2002?2007 Planning Area? ONRR will determine the great circle distance between: (1) The geographic center of each applicable leased tract (Phase II) or historical lease site; and (2) The point on the coastline of each Gulf producing State that IS closest to the geographic center of each applicable leased tract (Phase II) or historical lease site. Based on a specific subset of these distances, we will calculate the qualified OCS revenues (Phase uncapped) to disburse to each Gulf producing State as follows: (1) For each Gulf producing State, we will calculate and total, over all applicable leased tracts (Phase II) located in the 181 Area in the Eastern Planning Area or the 181 South Area, the mathematical inverses of the distances between the points on the State?s coastline that are closest to the geographic centers of the applicable leased tracts (Phase II) located in the 181 Area in the Eastern Planning Area or the 181 South Area, and the geographic centers of the applicable leased tracts (Phase II) located 1n the 181 Area 1n the Eastern Planning Area or the 181 South Area. (2) For each Gulf producing State, we will divide the sum of each State?s inverse distances from all applicable leased tracts (Phase II) located in the 181 Area in the Eastern Planning Area or the 181 South Area calculated under paragraph (1), by the sum of the inverse distances from all applicable leased tracts (Phase II) located in the 181 Area in the Eastern Planning Area or the 181 South Area across all four Gulf producing States. In the formulas below, IAL, ILA, IMS, and In represent the sum of the inverses of the shortest distances between Alabama, Louisiana, Mississippi, and Texas and all applicable leased tracts (Phase II), respectively. We will multiply the result by the amount of shareable, qualified OCS revenues (Phase II?uncapped). Alabama Share (IAL -2- ILA IMS qualified OCS revenues (Phase II?uncapped) Louisiana Share (ILA (IAL ILA IMS ITXD qualified OCS revenues (Phase II?uncapped) Mississippi Share (IMS (IAL ILA IMS Ind) qualified OCS revenues (Phase II?uncapped) Texas Share (In; (IAL ILA IMS qualified OCS revenues (Phase II?uncapped) (3) If, in any fiscal year, this calculation results in less than a 10- percent allocation of the qualified OCS revenues (Phase II?uncapped) to any Gulf producing State, we will recalculate the distribution. We will allocate 10 percent of the qualified OCS revenues (Phase II?uncapped) to the affected State and recalculate the other States? shares of the remaining qualified OCS revenues (Phase II?uncapped), omitting from the calculation the State receiving the 10-percent minimum share. Based on a specific subset of these distances, we will calculate the qualified OCS revenues (Phase capped) to disburse to each Gulf producing State as follows: (1) For each Gulf producing State, we will calculate and total, over all applicable leased tracts (Phase II) located in the 181 Area in the Central Planning Area and historical lease sites, the mathematical inverses of the distances between the points on the State?s coastline that are closest to the geographic centers of the applicable leased tracts (Phase II) located in the 181 Area in the Central Planning Area and historical lease sites, and the geographic centers of the applicable leased tracts (Phase II) located in the 181 Area in the Central Planning Area and historical lease sites. (2) For each Gulf producing State, we will divide the sum of each State?s inverse distances from all applicable leased tracts (Phase II) located in the 181 Area in the Central Planning Area and historical lease sites calculated under paragraph (1), by the sum of the inverse distances from all applicable leased tracts (Phase II) located in the Federal Register/Vol. 80, No. 250/ Wednesday, December 30, 2015/Rules and Regulations 81463 181 Area in the Central Planning Area and historical lease sites across all four Gulf producing States. In the formulas below, IAL, ILA, IMS, and In represent the sum of the inverses of the shortest distances between Alabama, Louisiana, Mississippi, and Texas and all applicable leased tracts (Phase II) and . historical lease sites, respectively. We will multiply the result by the amount of shareable, qualified OCS revenues (Phase II??capped). Alabama Share (IAL (IAL ILA IMS Ina) qualified OCS revenues (Phase II?capped) Louisiana Share (ILA (IAL ILA Ina) qualified OCS revenues (Phase II?capped) Mississippi Share (IMS ILA IMS 1735)) qualified OCS revenues (Phase II?capped) Texas Share (1m (IAL ILA IMS Ina) qualified OCS revenues (Phase IL?capped) (3) If, in any fiscal year, this calCulation results in less than a 10? percent allocation of the qualified OCS reVenues? (Phase II?capped) to any Gulf producing State, we will recalculate the distribution. We will allocate 10 percent of the quali?ed OCS revenues (Phase II?capped) to the affected State and recalculate the other States? shares of 3 the remaining qualified OCS revenues (Phase II?capped), omitting from the calculation the State receiving the 10- percent minimum share. 1219.514 How will ONRR allocate the . qualified OCS revenues (Phase II) to coastal political subdivisions within the Gulf producing States? Of the qualified OCS revenues (Phase II)?allocated to a Gulf producing State?s CPSs, ONRR will allocate 25 percent based on the proportion that each population bears to the population of all CPSs in the State. . Of the qualified OCS revenues (Phase II)'allocated to a Gulf producing State?s CPSs, we will allocate 25 percent based on the proportion that each miles of coastline bears to the total miles of coastline across all CPSs in the State. However, for the State of Louisiana, we will deem CPSs without a coastline to each have a coastline one- third the average length of the coastline of all CPSs within Louisiana that have a coastline. Of the qualified OCS revenues (Phase II) allocated to a Gulf producing State?s CPSs, we will allocate 50 percent in amounts that are inversely proportional to the respective distances between: The point in each CPS that is closest to the geographic center of the applicable leased tract (Phase II) or historical lease site; and (ii) The geographic center of each applicable leased tract (Phase II) or historical lease site. (2) However, we will exclude distances to an applicable leased tract (Phase II) from this calculation if any portion of the tract is located in a geographic area that was subject to a leasing moratorium on January 1, 2005, unless the leased tract was in production on that date. {3 1219.515 How will ONRR update the group of ?historical lease sites? and ?applicable leased tracts (Phase used for determining the allocation of shared revenues? As GOMESA directs, ONRR will update the group of historical lease sites in the 2002?2007 Planning Area as follows: (1) On December 81, 2015, we will freeze the group of historical lease sites, subject to the adjustment under paragraph of this section. (2) Beginning January 1, 2022, and every fifth year thereafter, we will extend the ending date for determining the group of historical lease sites for an additional five calendar years by adding any new historical lease sites to the existing group. Each year we will update the group of applicable leased tracts (Phase II) to include only leases that were in effect at any time during the previous fiscal year. 1219.516 When will ONRR disburse funds to Gulf producing States and coastal political subdivisions? ONRR will disburse GOMESA revenues as soon as authorized and practicable within the fiscal year following the year that we collect qualified OCS revenues (Phase II). DOC. 2015?32787 Filed 12?29?15; 8:45 am] BILLING CODE DEPARTMENT OF THE TREASURY Fiscal Service 31 CFR Part 285 RIN Offset of Tax Refund Payments To Collect Past-Due Support AGENCY: Bureau of the Fiscal Service, Fiscal Service, Treasury. ACTION: Interim final rule with request for comments. SUMMARY: The Department of the Treasury (Treasury), Bureau of the Fiscal Service (Fiscal Service), is amending its regulation governing the offset of tax refund payments to collect past-due support obligations. This rule will limit the time period during which Treasury may recover certain tax refund offset collections from States, when the States have already forwarded such funds to custodial parents as required or as authorized by applicable laws. This change will limit the time period during which Treasury may require States to return the offset funds to six months from the date of such collection, if Treasury has determined that the underlying refund was not due to the taxpayer. DATES: Effective Date. This interim final rule is effective January 1, 2016. Comment date. Comments must be received by February 29, 2016. ADDRESSES: You can download this interim rule at the following Web site: You may also inspect and copy this interim rule at: Treasury Department Library, Freedom of Information Act (FOIA) Collection, Room 1428, Main Treasury Building, 1500 Avenue NW., Washington, DC 20220. Before visiting, you must call (202) 622~0990 for an appointment. In accordance with the US. government?s eRulemaking Initiative, Fiscal Service publishes rulemaking information on Regulationsgov offers the public the ability to comment on, search, and view publicly available rulemaking materials, including comments received on rules. Instructions for Comment Submission Comments on this rule, identified by docket should only be submitted using the following methods: 0 Federal eRuIemaking Portal: Follow the instructions on the Web site for submitting comments. Fiscal Service recommends using this method to submit comments since mail can be subject to delays caused by security screening. 0 Mai]: Thomas Kobielus, Manager, Treasury Offset Program Division, Debt Management Services, Bureau of the Fiscal Service, 401 14th Street SW., Room 220B, Washington, DC 20227. Please note that mail may be delayed due to security screening. The fax and email methods of submitting comments on rules to Fiscal Service have been discontinued. All submissions received must include the agency name (?Bureau of the Fiscal Service?) and docket number for this rulemaking. Appendix Catalog of Federal Domestic Assistance (15.435) 15.435 - - CFDA: Programs Page 1 of 3 Number: 15435 Agency: Department of the interior Office: Office of the Secretary PROGRAM Authorization (040): Public Law 109-432, 120 STAT 3000. Gulf of Mexico Energy Security Act of 2006, 30 CFR 1219.414. Objectives (050): ONRR shares 37.5 percent of selected revenue with Gulf producing states and political subdivisions; payable annually during the year after receipt in accordance with 30 CFR Section 1219.416. Types of Assistance (060): Direct Payments for Speci?ed Use Uses and Use Restrictions (070): To be used in accordance with all applicable Federal and State laws, only for ?l or more of the following purposes: A) Projects and activities for the purposes of coastal protection, including conservation, coastal restoration, hurricane protection, and infrastructure directly affected by coastal wetland losses; B) mitigation of damage to ?sh, wildlife or natural resources; C) implementation of a federally-approved marine, coastal or comprehensive conservation management plan; D) Mitigation of the impact of Outer Continental Shelf activities through the funding of onshore infrastructure projects; E) Planning assistance and the administrative costs of complying with this section. (2) Limitation: Not more than 3 percent of amount received may be spent on planning assistance and compliance administrative costs. Eligibility Requirements (080) Applicant Eligibility (081): Revenue from selected leases will automatically trigger distribution to states and political subdivisions Beneficiary (082): Eligible states and political subdivisions with Louisiana, Texas, Alabama, and Mississippi. Credentialleocumentation (083): No Credentials or documentation are required. This program is excluded from coverage under 2 CF 200, Subpart - Cost Principles. Application and Award Process (090) Preapplication Coordination (091): 1603 74df930d6b3c3c766fd63 1/3 0/201 7 15.435 - - CFDA: Programs Page 2 of 3 Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372. Application Procedures (092): 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. No application is necessary. Award Procedure (093): Automatic distribution is made as authorized by law. Deadlines (094): Contact the headquarters or regional office, as appropriate, for application deadlines. Range of Approval/Disapproval Time (095): Not Applicable. Appeals (096): Not Applicable. Renewals (097): Not Applicable. Assistance Consideration (100) Formula and Matching Requirements (101): Statutory formulas are not applicable to this program. Matching requirements are not applicable to this program. MOE requirements are not applicable to this program. Length and Time Phasing of Assistance (102): Not applicable. See the following for information on how assistance is awardedlreleased: Information not available. Post Assistance Requirements (110) Reports (1 1 1 Not Applicable. Audits (112): In accordance with the provisions of 2 CFR 200, Subpart - Audit Requirements. non-Federal entities that expend ?nancial assistance of $750,000 or more in Federal awards will have a single or a program-speci?c audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503. Records (1 13): Not applicable. Financial information (120) 1/30/2017 15.435 - - CFDA: Programs Account Identi?cation (121): 14-5535-0~0-000 - 14X5535. Obligations (122): (Direct Payments for Speci?ed Use) FY 15 $2,441,000; FY 16 est $314,000; and FY 17 est $2,284,000 Range and Average of Financial Assistance (123): Not applicable. Program Accomplishments (130): Not Applicable. Regulations, Guidelines, and Literature (140): Not Applicable. Information Contacts (150) Regional or Local Of?ce (151) Page 3 of3 See Regional Agency Of?ces. US. Department of interior. Of?ce of Natural Resources Revenue, Financial Management, Denver Federal Center, Building 85, MS 632103, PO. Box 25165, Denver, CO 80225-0165. Headquarters Office (152): Director Of?ce of Natural Resources Revenue, 1849 Street, NW. Mail Stop 4211, Washington, District of Columbia 20240 Phone: (202) 513-0600 Website Address (153): Related Programs (160): Not Applicable. Examples of Funded Projects (170): Not Applicable. Criteria for Selecting Proposals (180): Not Applicable. 1e03 74df93 0d6b3c3 1/30/2017