PACMESA
Sponsored By: Representative King-Hinds, Kimberlyn [R-MP-At Large]
Introduced
Summary
Direct revenue sharing with Pacific territories. The Pacific Minerals Economic Security Act creates a framework to share seabed-mining lease revenues with Guam, American Samoa, and the Northern Mariana Islands and tightens bonding and environmental review rules for seabed mining.
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- Covered territories get a new revenue stream starting in fiscal year 2027. Half of covered leasing revenues go to a special treasury account for Guam, American Samoa, and CNMI and are distributed by a distance-based formula with at least a 10% minimum allocation per qualifying tract, and funds are limited to coastal restoration, infrastructure including energy, environmental mitigation, or fiscal stabilization and debt reduction and remain available until spent.
- Mining operators face stricter financial rules. The bill bars royalty relief and requires mandatory security such as initial and supplemental surety bonds with set criteria and adjustment mechanics and strengthens environmental review requirements.
- Environmental planning and local input are increased. The law funds a government study on mitigation methods for seabed mining with required consultation with regional colleges and requires notice to adjacent covered territories plus governor review and comment on environmental assessments that trigger Coastal Zone Management Act consistency reviews.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Revenue sharing for Pacific territories
If enacted, the bill would split covered leasing revenues for Pacific seabed leases starting in fiscal year 2027. Fifty percent would go to the U.S. Treasury general fund and fifty percent to a special Treasury account for the three covered territories. Eligible territories are Guam, American Samoa, and the Northern Mariana Islands, and eligibility for a leased tract depends on a coastline point within 200 nautical miles of the tract center. The Secretary would allocate the territory share by a distance-based formula but must give each eligible territory at least 10 percent per tract. The funds would only be used for coastal restoration, infrastructure (including energy), environmental mitigation, or fiscal stabilization and debt reduction, and would be available without further appropriation until spent. The bill would also define covered leasing revenues and covered areas, and would require the Secretary to notify and invite adjacent covered territory Governors to comment on plans that need Coastal Zone Management Act reviews or environmental assessments.
Higher bonds and no royalty relief
If enacted, the bill would require companies seeking leases for covered Pacific seabed areas to post an initial surety bond of at least $100,000 before lease issuance. Before any approved production plan, companies would have to provide a supplemental bond set by the Secretary based on company finances, expected decommissioning, and environmental restoration costs. The Secretary could raise or lower the supplemental amount if potential liabilities change. The bill would also bar the Secretary from reducing, waiving, or exempting cash bonuses, rentals, royalties, or other payments for those covered-area leases.
Sponsors & CoSponsors
Sponsor
King-Hinds, Kimberlyn [R-MP-At Large]
MP • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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