; (2) 35 percent shall be distributed by the Secretary to States based on a formula reflecting the quantity of fossil fuels historically produced and extracted in each such State on public lands before the date of enactment of this Act; and (3) 30 percent shall be allocated to a competitive grant program pursuant to subsection (d). (c) Use of funds (1) In general Funds distributed by the Secretary to States under paragraphs (1) and (2) of subsection (b) may be used for— (A) environmental remediation of lands and waters impacted by fossil fuel extraction and mining; (B) building partnerships to attract and invest in the economic future of historically fossil fuel dependent communities; (C) increasing capacity and other technical assistance fostering long-term economic growth and opportunity in historically fossil fuel dependent communities; (D) guaranteeing pensions and retirement security and providing a bridge of wage support until a displaced worker either finds new employment or reaches retirement; (E) severance payments for displaced workers; or (F) carbon sequestration projects in natural systems on public lands and private agricultural lands. (d) Competitive Grant Program The Secretary shall establish a competitive grant program to provide funds to eligible entities for the purposes described in paragraph (2). (1) Eligible entities Local, State, and Tribal governments, development districts (as such term is defined in section 382E of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 2009aa–4 )), nonprofits, labor unions, and institutions of higher education (as such term is defined in section 101 of the Higher Education Act of 1965 ( 20 U.S.C. 1001 )). (2) Eligible Use of Funds The Secretary may award grants from amounts in the Fund for the purposes listed in subsection (c) and for— (A) existing job retraining and apprenticeship programs for impacted workers or for programs designed to promote economic development in communities affected by a downturn in fossil fuel extraction and mining