The bill would also amend the Gulf of Mexico Energy Security Act of 2006 by gradually increasing the $500 million cap on revenues that may be allocated to states along the Gulf of Mexico. The cap would be raised $100 million each year between fiscal years 2015 through 2024, and the cap would be abandoned starting in fiscal year 2025.
In addition, the bill would amend the Mineral Leasing Act to remove the distinction between traditional and alternative energy sources with regard to revenue sharing for onshore energy development. Under current law, 50 percent of the revenues derived from payments to the federal government in connection with onshore exploration and development of traditional energy sources are allocated to the states within which such projects are located. The bill would expand this program to include renewable and alternative energy sources.
The Senate Energy and Natural Resources Committee will conduct a hearing on the bill on Tuesday, July 23.