FAIR Act of 2013

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fixing America's Inequities with 
Revenues Act of 2013'' or the ``FAIR Act of 2013''.

SEC. 2. DISTRIBUTION OF REVENUES TO COASTAL STATES.

    Section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338) 
is amended to read as follows:

``SEC. 9. DISPOSITION OF REVENUES.

    ``(a) Definitions.--In this section:
            ``(1) Alternative and renewable energy.--The term 
        `alternative and renewable energy' means energy derived from a 
        wind, solar, or ocean (including tidal, wave, and current) 
        source.
            ``(2) Coastal political subdivision.--The term `coastal 
        political subdivision' means a county-equivalent subdivision of 
        a coastal State all or part of which--
                    ``(A) lies within the coastal zone (as defined in 
                section 304 of the Coastal Zone Management Act of 1972 
                (16 U.S.C. 1453)); and
                    ``(B) the closest point of which is not more than 
                200 nautical miles from the geographical center of any 
                leased tract.
            ``(3) Coastal state.--
                    ``(A) In general.--The term `coastal State' means a 
                State with a coastal seaward boundary within 200 
                nautical miles distance of the geographical center of a 
                leased tract in an outer Continental Shelf region 
                adjacent to the State.
                    ``(B) Exclusion.--The term `coastal State' does not 
                include a coastal State, the majority of the coastline 
                of which is subject to a leasing moratorium.
            ``(4) Distance.--The terms `distance' and `distances' mean 
        minimum great circle distance and distances, respectively.
            ``(5) Leased tract.--The term `leased tract' means a tract 
        or other area leased or made available for the exploration, 
        development, or production of oil, natural gas, or alternative 
        or renewable energy.
            ``(6) Leasing moratorium.--The term `leasing moratorium' 
        means any State or Federal prohibition on the development of 
        oil, natural gas, and alternative and renewable energy sources, 
        including preleasing, leasing, and related activities, on the 
        outer Continental Shelf.
            ``(7) Outer continental shelf region.--The term `outer 
        Continental Shelf region' means--
                    ``(A) the Alaska outer Continental Shelf region;
                    ``(B) the North Atlantic planning area (as 
                described in the 2012-2017 Outer Continental Shelf Oil 
                and Gas Leasing Program);
                    ``(C) the Mid-Atlantic planning area (as described 
                in the 2012-2017 Outer Continental Shelf Oil and Gas 
                Leasing Program);
                    ``(D) the South Atlantic planning area (as 
                described in the 2012-2017 Outer Continental Shelf Oil 
                and Gas Leasing Program);
                    ``(E) the Gulf of Mexico outer Continental Shelf 
                region; or
                    ``(F) the Pacific outer Continental Shelf region.
            ``(8) Secretary.--The term `Secretary' means the Secretary 
        of the Interior.
    ``(b) Coastal State Revenue Sharing for Outer Continental Shelf 
Energy Sources.--
            ``(1) In general.--Subject to the other provisions of this 
        section, for fiscal year 2014 and each subsequent fiscal year--
                    ``(A) the Secretary of the Interior shall deposit 
                in a special account in the Treasury, 37.5 percent of 
                all revenues derived from all rentals, royalties, bonus 
                bids, and other sums due and payable to the United 
                States from the development of oil, natural gas, and 
                alternative and renewable energy on the outer 
                Continental Shelf; and
                    ``(B) the Secretary shall, in accordance with 
                subsection (b), disburse--
                            ``(i) 27.5 percent of the revenues 
                        described in subparagraph (A) to coastal States 
                        and coastal political subdivisions; and
                            ``(ii) 10 percent of the revenues to 
                        coastal States that establish funds in the 
                        treasuries of the coastal States to support 
                        projects and activities relating to alternative 
                        or renewable energy, energy research and 
                        development, energy efficiency, or 
                        conservation.
            ``(2) Exclusions.--The revenues described in paragraph (1) 
        do not include--
                    ``(A) the qualified outer Continental Shelf 
                revenues described in the third proviso under the 
                heading `ocean energy management' under the heading 
                `Bureau of Ocean Energy Management' of title I of the 
                Department of the Interior, Environment, and Related 
                Agencies Appropriations Act, 2012 (division E of Public 
                Law 112-74; 125 Stat. 994);
                    ``(B) 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
                    ``(C) revenues generated from leases--
                            ``(i) subject to--
                                    ``(I) section 8(g);
                                    ``(II) section 8(p)(2)(B); or
                                    ``(III) the Gulf of Mexico Energy 
                                Security Act of 2006 (43 U.S.C. 1331 
                                note; Public Law 109-432); or
                            ``(ii) in the Gulf of Mexico before the 
                        date of enactment of the Gulf of Mexico Energy 
                        Security Act of 2006 (43 U.S.C. 1331 note; 
                        Public Law 109-432).
            ``(3) Allocation among coastal states and coastal political 
        subdivisions.--
                    ``(A) In general.--Subject to subparagraph (B), for 
                each fiscal year, the amount made available under 
                paragraph (1) from any lease shall be allocated to each 
                coastal 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 coastal 
                State that is closest to the geographic center of the 
                applicable leased tract and the geographic center of 
                the leased tract.
                    ``(B) Limitation.--The allocable share of a coastal 
                State is limited to the revenues collected from a 
                leased tract located no more than 200 nautical miles 
                from the coastline of the coastal State and within the 
                outer Continental Shelf region of the coastal State.
                    ``(C) Payments to coastal political subdivisions.--
                            ``(i) In general.--The Secretary shall pay 
                        25 percent of the allocable share of each 
                        coastal State, as determined under subparagraph 
                        (A), to the coastal political subdivisions of 
                        the coastal State.
                            ``(ii) Allocation.--The amount paid by the 
                        Secretary to coastal political subdivisions 
                        shall be allocated to each coastal political 
                        subdivision in accordance with subparagraphs 
                        (B), (C), and (E) of section 31(b)(4).
                            ``(iii) Exception for the state of 
                        alaska.--For purposes of carrying out this 
                        subparagraph in the State of Alaska, of the 
                        amount paid by the Secretary to coastal 
                        political subdivisions--
                                    ``(I) 90 percent shall be allocated 
                                in amounts (based on a formula 
                                established by the Secretary by 
                                regulation) that are inversely 
                                proportional to the respective 
                                distances between the point in each 
                                coastal political subdivision that is 
                                closest to the geographic center of the 
                                applicable leased tract and the 
                                geographic center of the leased tract; 
                                and
                                    ``(II) 10 percent shall be divided 
                                equally among each county-equivalent 
                                subdivision of the State of Alaska, all 
                                or part of which lies within the 
                                coastal zone (as defined in section 304 
                                of the Coastal Zone Management Act of 
                                1972 (16 U.S.C. 1453)), that--
                                            ``(aa) is more than 200 
                                        nautical miles from the 
                                        geographic center of a leased 
                                        tract; and
                                            ``(bb) the State of Alaska 
                                        determines to be a significant 
                                        staging area for oil and gas 
                                        servicing, supply vessels, 
                                        operations, suppliers, or 
                                        workers.''.

SEC. 3. REVENUE SHARING FOR CERTAIN ONSHORE ENERGY SOURCES.

    Section 35 of the Mineral Leasing Act (30 U.S.C. 191) is amended by 
adding at the end the following:
    ``(d) Revenue Sharing for Certain Onshore Energy Sources.--The 
Secretary of the Interior shall disburse 50 percent of all revenues 
derived from all rentals, operating fees, royalties, bonus bids, 
rights-of-way, and other amounts due and payable to the United States 
from the development of alternative or renewable onshore energy sources 
to the State within the boundaries of which the energy source is 
located.''.

SEC. 4. DISTRIBUTION OF REVENUES TO GULF PRODUCING STATES.

    (a) Definition of Qualified Outer Continental Shelf Revenues.--
Section 102(9) of the Gulf of Mexico Energy Security Act of 2006 (43 
U.S.C. 1331 note; Public Law 109-432) is amended by striking 
subparagraphs (A) and (B) inserting the following:
                    ``(A) In general.--The term `qualified outer 
                Continental Shelf revenues' means all rentals, 
                royalties, bonus bids, and other sums due and payable 
                to the United States received on or after October 1, 
                2013, from leases entered into on or after the date of 
                enactment of Public Law 109-432 for the portions of the 
                Western Gulf of Mexico planning area, the Central Gulf 
                of Mexico planning area, and the Eastern Gulf of Mexico 
                planning area not subject to a leasing moratorium under 
                section 104(a) of the Gulf of Mexico Energy Security 
                Act of 2006 (43 U.S.C. 1331 note; Public Law 109-432).
                    ``(B) Exclusions.--The term `qualified outer 
                Continental Shelf revenues' does not include--
                            ``(i) the qualified outer Continental Shelf 
                        revenues described in the third proviso under 
                        the heading `ocean energy management' under the 
                        heading `Bureau of Ocean Energy Management' of 
                        title I of the Department of the Interior, 
                        Environment, and Related Agencies 
                        Appropriations Act, 2012 (division E of Public 
                        Law 112-74; 125 Stat. 994);
                            ``(ii) the qualified outer Continental 
                        Shelf revenues described in the third proviso 
                        under the heading `offshore safety and 
                        environmental enforcement' under the heading 
                        `Bureau of Safety and Environmental 
                        Enforcement' of title I of the Department of 
                        the Interior, Environment, and Related Agencies 
                        Appropriations Act, 2012 (division E of Public 
                        Law 112-74; 125 Stat. 995);
                            ``(iii) 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
                            ``(iv) revenues generated from leases 
                        subject to subsection (g) or (p)(2)(B) of 
                        section 8 of the Outer Continental Shelf Lands 
                        Act (43 U.S.C. 1337).''.
    (b) Disposition of Qualified Outer Continental Shelf Revenues.--
Section 105 of the Gulf of Mexico Energy Security Act of 2006 (43 
U.S.C. 1331 note; Public Law 109-432) is amended--
            (1) in subsection (a), in the matter preceding paragraph 
        (1), by striking ``shall deposit'' and all that follows through 
        the period at the end of paragraph (2)(B) and inserting the 
        following:
``shall deposit--
            ``(1) in a special account in the Treasury--
                    ``(A) 37.5 percent of qualified outer Continental 
                Shelf revenues, which the Secretary shall disburse to 
                Gulf producing States in accordance with subsection 
                (b); and
                    ``(B) $62,500,000, which the Secretary shall 
                disburse to provide financial assistance to States in 
                accordance with section 6 of the Land and Water 
                Conservation Fund Act of 1965 (16 U.S.C. 4601-8), which 
                shall be considered income to the Land and Water 
                Conservation Fund for purposes of section 2 of that Act 
                (16 U.S.C. 4601-5); and
            ``(2) the remainder of qualified outer Continental Shelf 
        revenues in the general fund of the Treasury.'';
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by striking ``(1) Allocation'' and all 
                        that follows through ``subsection (a)(2)(A)'' 
                        in subparagraph (A) and inserting the 
                        following:
            ``(1) Allocation among gulf producing states.--
                    ``(A) In general.--Effective beginning in fiscal 
                year 2014, the amount made available under subsection 
                (a)(1)(A)'';
                            (ii) in subparagraph (A)--
                                    (I) by inserting ``each historical 
                                lease site and the geographic center of 
                                the historical lease site, as 
                                determined by the Secretary'' after 
                                ``closest to the geographic center 
                                of''; and
                                    (II) by striking ``the applicable 
                                leased tract and the geographic center 
                                of the leased tract''; and
                            (iii) by striking subparagraph (B);
                    (B) in paragraph (2), by striking ``(2)'' and all 
                that follows through ``(C) Historical lease sites'' and 
                inserting ``(B) Historical lease sites'';
                    (C) in paragraph (1)(B)(i) (as so redesignated)--
                            (i) by striking ``subparagraph (A)(ii)'' 
                        and inserting ``subparagraph (A)''; and
                            (ii) by striking ``December 31, 2015'' and 
                        inserting ``December 31, 2012'';
                    (D) by redesignating paragraph (3) as paragraph 
                (2); and
                    (E) in paragraph (2) (as so redesignated), in 
                subparagraph (A), by striking ``paragraphs (1) and 
                (2)'' and inserting ``paragraph (1)''; and
            (3) by striking subsection (f) and inserting the following:
    ``(f) Limitations on Amount of Distributed Qualified Outer 
Continental Shelf Revenues.--
            ``(1) Distribution to gulf producing states.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), the total amount of qualified outer Continental 
                Shelf revenues distributed under subsection (a)(1)(A) 
                shall not exceed $500,000,000 for fiscal year 2014.
                    ``(B) Cap increase for gulf producing states.--In 
                the case of the qualified outer Continental Shelf 
                revenues distributed to Gulf producing States under 
                subsection (a)(1)(A), the cap on amounts specified in 
                subparagraph (A) shall be for--
                            ``(i) fiscal year 2015, $600,000,000; and
                            ``(ii) each of fiscal years 2016 through 
                        2024, the applicable amount for the previous 
                        fiscal year increased by $100,000,000.
                    ``(C) Subsequent fiscal years.--For fiscal year 
                2025 and each fiscal year thereafter, all qualified 
                outer Continental Shelf revenues made available under 
                subsection (a)(1)(A) shall be made available without 
                limitation for allocation to the Gulf producing States 
                in accordance with subsection (b).
            ``(2) Pro rata reductions.--If paragraph (1) limits the 
        amount of qualified outer Continental Shelf revenues that would 
        be paid under subsection (a)(1)(A)--
                    ``(A) the Secretary shall reduce the amount of 
                qualified outer Continental Shelf revenues provided to 
                each recipient on a pro rata basis; and
                    ``(B) any remainder of the qualified outer 
                Continental Shelf revenues shall revert to the general 
                fund of the Treasury.''.

SEC. 5. EFFECTIVE DATE.

    This Act and the amendments made by this Act take effect on October 
1, 2013.

Summary: Fixing America's Inequities with Revenues Act of 2013 or FAIR Act of 2013 - Amends the Outer Continental Shelf Lands Act (OCSLA) to direct the Secretary of the Interior to deposit into a special account in the Treasury 37.5 of all revenues payable to the United States from oil, natural gas, and alternative and renewable energy on the outer Continental Shelf (OCS). Instructs the Secretary to disburse such revenues according to this formula: (1) 27.5 of such revenues to coastal states and coastal political subdivisions, and (2) 10 of the revenues to coastal states that establish funds in their treasuries to support projects relating to alternative or renewable energy, energy research and development, energy efficiency, or conservation. Prescribes requirements for allocating such revenues to coastal states and their coastal subdivisions, with a special rule for Alaska. Limits the allocable share of each coastal state to the revenues collected from a leased tract located no more than 200 nautical miles from the coastline of the state and within the state's OCS region. Requires the Secretary of the Treasury to disburse 50 of all revenues derived from all rentals, operating fees, royalties, bonus bids, rights-of-way, and other amounts payable to the United States from the development of alternative or renewable onshore energy sources to the state within whose boundaries the energy source is located. Amends the Gulf of Mexico Energy Security Act of 2006 to: (1) redefine qualified OCS revenues, (2) prescribe requirements for the disposition of qualified OCS revenues into a special account in the Treasury, and (3) revise the formula for allocating federal funds among the Gulf producing states.