II 

113TH CONGRESS 

1ST SESSION S. 1273 

To establish a partnership between States that produce energy onshore and 

offshore for our country with the Federal Government. 

IN THE SENATE OF THE UNITED STATES 

JULY 10, 2013 

Ms. MURKOWSKI (for herself, Ms. LANDRIEU, Mr. BEGICH, and Ms. 

HEITKAMP) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources 

A BILL 

To establish a partnership between States that produce energy onshore and offshore for our country with the Federal Government. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Fixing America’s In5 equities with Revenues Act of 2013’’ or the ‘‘FAIR Act 

6 of 2013’’. 

7 SEC. 2. DISTRIBUTION OF REVENUES TO COASTAL STATES. 

8 Section 9 of the Outer Continental Shelf Lands Act 

9 (43 U.S.C. 1338) is amended to read as follows: 


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1 ‘‘SEC. 9. DISPOSITION OF REVENUES. 

2 ‘‘(a) DEFINITIONS.—In this section: 

3 ‘‘(1) ALTERNATIVE AND RENEWABLE EN4 ERGY.—The term ‘alternative and renewable energy’ 

5 means energy derived from a wind, solar, or ocean 

6 (including tidal, wave, and current) source. 

7 ‘‘(2) COASTAL POLITICAL SUBDIVISION.—The 

8 term ‘coastal political subdivision’ means a county9 equivalent subdivision of a coastal State all or part 

10 of which— 

11 ‘‘(A) lies within the coastal zone (as de12 fined in section 304 of the Coastal Zone Man13 agement Act of 1972 (16 U.S.C. 1453)); and 

14 ‘‘(B) the closest point of which is not more 

15 than 200 nautical miles from the geographical 

16 center of any leased tract. 

17 ‘‘(3) COASTAL STATE.— 

18 ‘‘(A) IN GENERAL.—The term ‘coastal 

19 State’ means a State with a coastal seaward 

20 boundary within 200 nautical miles distance of 

21 the geographical center of a leased tract in an 

22 outer Continental Shelf region adjacent to the 

23 State. 

24 ‘‘(B) EXCLUSION.—The term ‘coastal 

25 State’ does not include a coastal State, the maVerDate Mar 15 2010 00:10 Jul 11, 2013 Jkt 029200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1273.IS S1273

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1 jority of the coastline of which is subject to a 

2 leasing moratorium. 

3 ‘‘(4) DISTANCE.—The terms ‘distance’ and ‘dis4 tances’ mean minimum great circle distance and dis5 tances, respectively. 

6 ‘‘(5) LEASED TRACT.—The term ‘leased tract’ 

7 means a tract or other area leased or made available 

8 for the exploration, development, or production of 

9 oil, natural gas, or alternative or renewable energy. 

10 ‘‘(6) LEASING MORATORIUM.—The term ‘leas11 ing moratorium’ means any State or Federal prohi12 bition on the development of oil, natural gas, and al13 ternative and renewable energy sources, including 

14 preleasing, leasing, and related activities, on the 

15 outer Continental Shelf. 

16 ‘‘(7) OUTER CONTINENTAL SHELF REGION.— 

17 The term ‘outer Continental Shelf region’ means— 

18 ‘‘(A) the Alaska outer Continental Shelf 

19 region; 

20 ‘‘(B) the North Atlantic planning area (as 

21 described in the 2012–2017 Outer Continental 

22 Shelf Oil and Gas Leasing Program); 

23 ‘‘(C) the Mid-Atlantic planning area (as 

24 described in the 2012–2017 Outer Continental 

25 Shelf Oil and Gas Leasing Program); 


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1 ‘‘(D) the South Atlantic planning area (as 

2 described in the 2012–2017 Outer Continental 

3 Shelf Oil and Gas Leasing Program); 

4 ‘‘(E) the Gulf of Mexico outer Continental 

5 Shelf region; or 

6 ‘‘(F) the Pacific outer Continental Shelf 

7 region. 

8 ‘‘(8) SECRETARY.—The term ‘Secretary’ means 

9 the Secretary of the Interior. 

10 ‘‘(b) COASTAL STATE REVENUE SHARING FOR

11 OUTER CONTINENTAL SHELF ENERGY SOURCES.— 

12 ‘‘(1) IN GENERAL.—Subject to the other provi13 sions of this section, for fiscal year 2014 and each 

14 subsequent fiscal year— 

15 ‘‘(A) the Secretary of the Interior shall de16 posit in a special account in the Treasury, 37.5 

17 percent of all revenues derived from all rentals, 

18 royalties, bonus bids, and other sums due and 

19 payable to the United States from the develop20 ment of oil, natural gas, and alternative and re21 newable energy on the outer Continental Shelf; 

22 and 

23 ‘‘(B) the Secretary shall, in accordance 

24 with subsection (b), disburse— 


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1 ‘‘(i) 27.5 percent of the revenues de2 scribed in subparagraph (A) to coastal 

3 States and coastal political subdivisions; 

4 and 

5 ‘‘(ii) 10 percent of the revenues to 

6 coastal States that establish funds in the 

7 treasuries of the coastal States to support 

8 projects and activities relating to alter9 native or renewable energy, energy re10 search and development, energy efficiency, 

11 or conservation. 

12 ‘‘(2) EXCLUSIONS.—The revenues described in 

13 paragraph (1) do not include— 

14 ‘‘(A) the qualified outer Continental Shelf 

15 revenues described in the third proviso under 

16 the heading ‘OCEAN ENERGY MANAGEMENT’ 

17 under the heading ‘BUREAU OF OCEAN EN18 ERGY MANAGEMENT’ of title I of the Depart19 ment of the Interior, Environment, and Related 

20 Agencies Appropriations Act, 2012 (division E 

21 of Public Law 112–74; 125 Stat. 994); 

22 ‘‘(B) revenues from the forfeiture of a 

23 bond or other surety securing obligations other 

24 than royalties, civil penalties, or royalties taken 

25 by the Secretary in-kind and not sold; or 


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1 ‘‘(C) revenues generated from leases— 

2 ‘‘(i) subject to— 

3 ‘‘(I) section 8(g); 

4 ‘‘(II) section 8(p)(2)(B); or 

5 ‘‘(III) the Gulf of Mexico Energy 

6 Security Act of 2006 (43 U.S.C. 1331 

7 note; Public Law 109–432); or 

8 ‘‘(ii) in the Gulf of Mexico before the 

9 date of enactment of the Gulf of Mexico 

10 Energy Security Act of 2006 (43 U.S.C. 

11 1331 note; Public Law 109–432). 

12 ‘‘(3) ALLOCATION AMONG COASTAL STATES

13 AND COASTAL POLITICAL SUBDIVISIONS.— 

14 ‘‘(A) IN GENERAL.—Subject to subpara15 graph (B), for each fiscal year, the amount 

16 made available under paragraph (1) from any 

17 lease shall be allocated to each coastal State in 

18 amounts (based on a formula established by the 

19 Secretary by regulation) that are inversely pro20 portional to the respective distances between 

21 the point on the coastline of each coastal State 

22 that is closest to the geographic center of the 

23 applicable leased tract and the geographic cen24 ter of the leased tract. 


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1 ‘‘(B) LIMITATION.—The allocable share of 

2 a coastal State is limited to the revenues col3 lected from a leased tract located no more than 

4 200 nautical miles from the coastline of the 

5 coastal State and within the outer Continental 

6 Shelf region of the coastal State. 

7 ‘‘(C) PAYMENTS TO COASTAL POLITICAL

8 SUBDIVISIONS.— 

9 ‘‘(i) IN GENERAL.—The Secretary 

10 shall pay 25 percent of the allocable share 

11 of each coastal State, as determined under 

12 subparagraph (A), to the coastal political 

13 subdivisions of the coastal State. 

14 ‘‘(ii) ALLOCATION.—The amount paid 

15 by the Secretary to coastal political sub16 divisions shall be allocated to each coastal 

17 political subdivision in accordance with 

18 subparagraphs (B), (C), and (E) of section 

19 31(b)(4). 

20 ‘‘(iii) EXCEPTION FOR THE STATE OF

21 ALASKA.—For purposes of carrying out 

22 this subparagraph in the State of Alaska, 

23 of the amount paid by the Secretary to 

24 coastal political subdivisions— 


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1 ‘‘(I) 90 percent shall be allocated 

2 in amounts (based on a formula es3 tablished by the Secretary by regula4 tion) that are inversely proportional to 

5 the respective distances between the 

6 point in each coastal political subdivi7 sion that is closest to the geographic 

8 center of the applicable leased tract 

9 and the geographic center of the 

10 leased tract; and 

11 ‘‘(II) 10 percent shall be divided 

12 equally among each county-equivalent 

13 subdivision of the State of Alaska, all 

14 or part of which lies within the coastal 

15 zone (as defined in section 304 of the 

16 Coastal Zone Management Act of 

17 1972 (16 U.S.C. 1453)), that— 

18 ‘‘(aa) is more than 200 nau19 tical miles from the geographic 

20 center of a leased tract; and 

21 ‘‘(bb) the State of Alaska 

22 determines to be a significant 

23 staging area for oil and gas serv24 icing, supply vessels, operations, 

25 suppliers, or workers.’’. 


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1 SEC. 3. REVENUE SHARING FOR CERTAIN ONSHORE EN2 ERGY SOURCES. 

3 Section 35 of the Mineral Leasing Act (30 U.S.C. 

4 191) is amended by adding at the end the following: 

5 ‘‘(d) REVENUE SHARING FOR CERTAIN ONSHORE

6 ENERGY SOURCES.—The Secretary of the Interior shall 

7 disburse 50 percent of all revenues derived from all rent8 als, operating fees, royalties, bonus bids, rights-of-way, 

9 and other amounts due and payable to the United States 

10 from the development of alternative or renewable onshore 

11 energy sources to the State within the boundaries of which 

12 the energy source is located.’’. 

13 SEC. 4. DISTRIBUTION OF REVENUES TO GULF PRODUCING 

14 STATES. 

15 (a) DEFINITION OF QUALIFIED OUTER CONTI16 NENTAL SHELF REVENUES.—Section 102(9) of the Gulf 

17 of Mexico Energy Security Act of 2006 (43 U.S.C. 1331 

18 note; Public Law 109–432) is amended by striking sub19 paragraphs (A) and (B) inserting the following: 

20 ‘‘(A) IN GENERAL.—The term ‘qualified 

21 outer Continental Shelf revenues’ means all 

22 rentals, royalties, bonus bids, and other sums 

23 due and payable to the United States received 

24 on or after October 1, 2013, from leases en25 tered into on or after the date of enactment of 

26 Public Law 109–432 for the portions of the 


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1 Western Gulf of Mexico planning area, the Cen2 tral Gulf of Mexico planning area, and the 

3 Eastern Gulf of Mexico planning area not sub4 ject to a leasing moratorium under section 

5 104(a) of the Gulf of Mexico Energy Security 

6 Act of 2006 (43 U.S.C. 1331 note; Public Law 

7 109–432). 

8 ‘‘(B) EXCLUSIONS.—The term ‘qualified 

9 outer Continental Shelf revenues’ does not in10 clude— 

11 ‘‘(i) the qualified outer Continental 

12 Shelf revenues described in the third pro13 viso under the heading ‘OCEAN ENERGY

14 MANAGEMENT’ under the heading ‘BUREAU

15 OF OCEAN ENERGY MANAGEMENT’ of title 

16 I of the Department of the Interior, Envi17 ronment, and Related Agencies Appropria18 tions Act, 2012 (division E of Public Law 

19 112–74; 125 Stat. 994); 

20 ‘‘(ii) the qualified outer Continental 

21 Shelf revenues described in the third pro22 viso under the heading ‘OFFSHORE SAFETY

23 AND ENVIRONMENTAL ENFORCEMENT’ 

24 under the heading ‘BUREAU OF SAFETY

25 AND ENVIRONMENTAL ENFORCEMENT’ of 


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1 title I of the Department of the Interior, 

2 Environment, and Related Agencies Appro3 priations Act, 2012 (division E of Public 

4 Law 112–74; 125 Stat. 995); 

5 ‘‘(iii) revenues from the forfeiture of a 

6 bond or other surety securing obligations 

7 other than royalties, civil penalties, or roy8 alties taken by the Secretary in-kind and 

9 not sold; or 

10 ‘‘(iv) revenues generated from leases 

11 subject to subsection (g) or (p)(2)(B) of 

12 section 8 of the Outer Continental Shelf 

13 Lands Act (43 U.S.C. 1337).’’. 

14 (b) DISPOSITION OF QUALIFIED OUTER CONTI15 NENTAL SHELF REVENUES.—Section 105 of the Gulf of 

16 Mexico Energy Security Act of 2006 (43 U.S.C. 1331 

17 note; Public Law 109–432) is amended— 

18 (1) in subsection (a), in the matter preceding 

19 paragraph (1), by striking ‘‘shall deposit’’ and all 

20 that follows through the period at the end of para21 graph (2)(B) and inserting the following: 

22 ‘‘shall deposit— 

23 ‘‘(1) in a special account in the Treasury— 

24 ‘‘(A) 37.5 percent of qualified outer Conti25 nental Shelf revenues, which the Secretary shall 


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1 disburse to Gulf producing States in accordance 

2 with subsection (b); and 

3 ‘‘(B) $62,500,000, which the Secretary 

4 shall disburse to provide financial assistance to 

5 States in accordance with section 6 of the Land 

6 and Water Conservation Fund Act of 1965 (16 

7 U.S.C. 4601–8), which shall be considered in8 come to the Land and Water Conservation 

9 Fund for purposes of section 2 of that Act (16 

10 U.S.C. 4601–5); and 

11 ‘‘(2) the remainder of qualified outer Conti12 nental Shelf revenues in the general fund of the 

13 Treasury.’’; 

14 (2) in subsection (b)— 

15 (A) in paragraph (1)— 

16 (i) by striking ‘‘(1) ALLOCATION’’ and 

17 all that follows through ‘‘subsection 

18 (a)(2)(A)’’ in subparagraph (A) and insert19 ing the following: 

20 ‘‘(1) ALLOCATION AMONG GULF PRODUCING

21 STATES.— 

22 ‘‘(A) IN GENERAL.—Effective beginning in 

23 fiscal year 2014, the amount made available 

24 under subsection (a)(1)(A)’’; 

25 (ii) in subparagraph (A)— 


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1 (I) by inserting ‘‘each historical 

2 lease site and the geographic center of 

3 the historical lease site, as determined 

4 by the Secretary’’ after ‘‘closest to the 

5 geographic center of’’; and 

6 (II) by striking ‘‘the applicable 

7 leased tract and the geographic center 

8 of the leased tract’’; and 

9 (iii) by striking subparagraph (B); 

10 (B) in paragraph (2), by striking ‘‘(2)’’ 

11 and all that follows through ‘‘(C) HISTORICAL

12 LEASE SITES’’ and inserting ‘‘(B) HISTORICAL

13 LEASE SITES’’; 

14 (C) in paragraph (1)(B)(i) (as so redesig15 nated)— 

16 (i) by striking ‘‘subparagraph (A)(ii)’’ 

17 and inserting ‘‘subparagraph (A)’’; and 

18 (ii) by striking ‘‘December 31, 2015’’ 

19 and inserting ‘‘December 31, 2012’’; 

20 (D) by redesignating paragraph (3) as 

21 paragraph (2); and 

22 (E) in paragraph (2) (as so redesignated), 

23 in subparagraph (A), by striking ‘‘paragraphs 

24 (1) and (2)’’ and inserting ‘‘paragraph (1)’’; 

25 and 


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1 (3) by striking subsection (f) and inserting the 

2 following: 

3 ‘‘(f) LIMITATIONS ON AMOUNT OF DISTRIBUTED

4 QUALIFIED OUTER CONTINENTAL SHELF REVENUES.— 

5 ‘‘(1) DISTRIBUTION TO GULF PRODUCING

6 STATES.— 

7 ‘‘(A) IN GENERAL.—Subject to subpara8 graphs (B) and (C), the total amount of quali9 fied outer Continental Shelf revenues distrib10 uted under subsection (a)(1)(A) shall not ex11 ceed $500,000,000 for fiscal year 2014. 

12 ‘‘(B) CAP INCREASE FOR GULF PRODUCING

13 STATES.—In the case of the qualified outer 

14 Continental Shelf revenues distributed to Gulf 

15 producing States under subsection (a)(1)(A), 

16 the cap on amounts specified in subparagraph 

17 (A) shall be for— 

18 ‘‘(i) fiscal year 2015, $600,000,000; 

19 and 

20 ‘‘(ii) each of fiscal years 2016 through 

21 2024, the applicable amount for the pre22 vious fiscal year increased by 

23 $100,000,000. 

24 ‘‘(C) SUBSEQUENT FISCAL YEARS.—For 

25 fiscal year 2025 and each fiscal year thereafter, 


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1 all qualified outer Continental Shelf revenues 

2 made available under subsection (a)(1)(A) shall 

3 be made available without limitation for alloca4 tion to the Gulf producing States in accordance 

5 with subsection (b). 

6 ‘‘(2) PRO RATA REDUCTIONS.—If paragraph (1) 

7 limits the amount of qualified outer Continental 

8 Shelf revenues that would be paid under subsection 

9 (a)(1)(A)— 

10 ‘‘(A) the Secretary shall reduce the amount 

11 of qualified outer Continental Shelf revenues 

12 provided to each recipient on a pro rata basis; 

13 and 

14 ‘‘(B) any remainder of the qualified outer 

15 Continental Shelf revenues shall revert to the 

16 general fund of the Treasury.’’. 

17 SEC. 5. EFFECTIVE DATE. 

18 This Act and the amendments made by this Act take 

19 effect on October 1, 2013. 

Æ 


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