8(g) State Coastal Zone
Program Funding
Annual program obligations reported to SAM.gov.
Program Objective
ONRR shares 27 percent of mineral leasing revenue derived from any lease issued after September 18, 1978, of any Federal tract which lies wholly or partially within 3 nautical miles of the Seaward boundary of any coastal state. Shared revenue is paid monthly.
Eligibility
Eligible Applicants
- State
Revenue from qualified leasing will trigger automatic payment disbursement computed in accordance with the law.
Beneficiaries
- 4
Coastal states adjacent to the Outer Continental Shelf (OCS) benefit directly through revenue sharing. This funding supports coastal restoration, infrastructure, environmental protection and other state level initiatives.
Local communities benefit indirectly through job creation, economic development, and environmental protection.
Energy companies indirectly benefit through clear leasing boundaries, stable regulatory frameworks and access to resource-rich offshore areas.
How to Apply
Application Procedure
No application is necessary.
Award Procedure
Automatic distribution is made as authorized by law.
Program details & compliance
Description
The purpose of the OCS 8(g) provision is to resolve boundary disputes and ensure fair revenue sharing between the federal government and the coastal states for oil and gas resources extracted from the 8(g) zone. It is unique because:
*it lies between state and federal offshore boundaries and
*it is a shared revenue zone, where 27% of revenues from oil and gas leases are disbursed to adjacent coastal states.
Use of Funds
Allowed Uses
The assistance may be used for:
1. Coastal Conservation and Restoration
- Projects to restore wetlands, barrier islands, and estuaries.
- Protection of coastal ecosystems from erosion and degradation.
2. Hurricane and Storm Damage Mitigation
- Infrastructure improvements to reduce storm surge impacts.
- Flood control and levee reinforcement.
- Environmental Protection
3. Monitoring and managing marine habitats.
- Pollution control and water quality improvement.
- Public Infrastructure and Resilience
4. Enhancing ports, roads, and public facilities in coastal areas.
- Supporting community resilience to climate change and sea-level rise.
- Recreation and Public Access
5. Development of parks, trails, and public waterfronts.
- Enhancing access to natural and cultural resources.
- Land and Water Conservation
6. A portion of OCS revenues also supports the Land and Water Conservation Fund (LWCF), which invests in public lands, recreation, and conservation nationwide.
Reporting & Compliance
Applicable 2 CFR 200 Subparts
- Subpart F — Audit Requirements