II 

113TH CONGRESS 

1ST SESSION S. 630 

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 

MARCH 20, 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— 

6 ‘‘(A) a wind, solar, renewable biomass, or 

7 ocean (including tidal, wave, current, and ther8 mal) source; or 

9 ‘‘(B) hydrogen derived from renewable bio10 mass or water using an energy source described 

11 in subparagraph (A). 

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

13 term ‘coastal political subdivision’ means a county14 equivalent subdivision of a coastal State all or part 

15 of which— 

16 ‘‘(A) lies within the coastal zone (as de17 fined in section 304 of the Coastal Zone Man18 agement Act of 1972 (16 U.S.C. 1453)); and 

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

20 than 200 nautical miles from the geographical 

21 center of any leased tract. 

22 ‘‘(3) COASTAL STATE.—The term ‘coastal 

23 State’ means a State with a coastal seaward bound24 ary within 200 nautical miles distance of the geo25 graphical center of a leased tract in an outer Conti26 nental Shelf area that is not a Gulf producing State 


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1 (as defined in section 102 of the Gulf of Mexico En2 ergy Security Act of 2006 (43 U.S.C. 1331 note; 

3 Public Law 109–432)). 

4 ‘‘(4) DISTANCE.—The terms ‘distance’ and ‘dis5 tances’ mean minimum great circle distance and dis6 tances, respectively. 

7 ‘‘(5) SECRETARY.—The term ‘Secretary’ means 

8 the Secretary of the Interior. 

9 ‘‘(b) COASTAL STATE REVENUE SHARING FOR

10 OUTER CONTINENTAL SHELF ENERGY SOURCES.— 

11 ‘‘(1) IN GENERAL.—Subject to the other provi12 sions of this section, for fiscal year 2013 and each 

13 subsequent fiscal year— 

14 ‘‘(A) the Secretary of the Treasury shall 

15 deposit in the Treasury, 37.5 percent of all rev16 enues derived from all rentals, royalties, bonus 

17 bids, and other sums due and payable to the 

18 United States from energy development on the 

19 outer Continental Shelf areas of coastal States; 

20 and 

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

22 with subsection (b), disburse— 

23 ‘‘(i) 27.5 percent of the revenues de24 scribed in subparagraph (A) to coastal 


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1 States and coastal political subdivisions; 

2 and 

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

4 coastal States that establish funds in the 

5 treasuries of the coastal States to support 

6 projects and activities relating to alter7 native and renewable energy, energy re8 search and development, energy efficiency, 

9 or conservation. 

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

11 paragraph (1) do not include revenues generated 

12 from leases subject to section 8(g). 

13 ‘‘(3) ALLOCATION AMONG COASTAL STATES

14 AND COASTAL POLITICAL SUBDIVISIONS.— 

15 ‘‘(A) IN GENERAL.—Subject to paragraph 

16 (2), for each fiscal year, the amount made 

17 available under subsection (a) from any lease 

18 shall be allocated to each coastal State in 

19 amounts (based on a formula established by the 

20 Secretary by regulation) that are inversely pro21 portional to the respective distances between 

22 the point on the coastline of each coastal State 

23 that is closest to the geographic center of the 

24 applicable leased tract and the geographic cen25 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. 

6 ‘‘(C) PAYMENTS TO COASTAL POLITICAL

7 SUBDIVISIONS.— 

8 ‘‘(i) IN GENERAL.—The Secretary 

9 shall pay 25 percent of the allocable share 

10 of each coastal State, as determined under 

11 paragraph (1), to the coastal political sub12 divisions of the coastal State. 

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

14 by the Secretary to coastal political sub15 divisions shall be allocated to each coastal 

16 political subdivision in accordance with 

17 subparagraphs (B) and (C) of section 

18 31(b)(4) of the Outer Continental Shelf 

19 Lands Act (43 U.S.C. 1356a(b)(4)). 

20 ‘‘(iii) EXCEPTION FOR THE STATE OF

21 ALASKA.—For purposes of carrying out 

22 subparagraph (A) 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 coastal political 

13 subdivision that— 

14 ‘‘(aa) is more than 200 nau15 tical miles from the geographic 

16 center of a leased tract; and 

17 ‘‘(bb) the State of Alaska 

18 determines to be a significant 

19 staging area for oil and gas serv20 icing, supply vessels, operations, 

21 suppliers, or workers. 

22 ‘‘(4) ADMINISTRATION.—The Secretary shall 

23 ensure that revenues from all sources of alternative 

24 and renewable energy leased, developed, or produced 

25 from any outer Continental Shelf area are distribVerDate Mar 15 2010 15:59 Mar 27, 2013 Jkt 029200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S630.IS S630

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1 uted among coastal States, coastal political subdivi2 sions, and Gulf producing States (as defined in sec3 tion 102 of the Gulf of Mexico Energy Security Act 

4 of 2006 (43 U.S.C. 1331 note; Public Law 109– 

5 432)) in accordance with this section. 

6 ‘‘(c) REVENUE SHARING FOR CERTAIN ONSHORE

7 ENERGY SOURCES.—The Secretary of the Treasury shall 

8 disburse 50 percent of all revenues derived from all rent9 als, royalties, bonus bids, rights-of-way, and other 

10 amounts due and payable to the United States from the 

11 development of alternative and renewable onshore energy 

12 sources to the State within the boundaries of which the 

13 energy source is located.’’. 

14 SEC. 3. DISTRIBUTION OF REVENUES TO GULF PRODUCING 

15 STATES. 

16 (a) DEFINITION OF QUALIFIED OUTER CONTI17 NENTAL SHELF REVENUES.—Section 102(9) of the Gulf 

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

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

20 (1) by striking subparagraph (A); and 

21 (2) by inserting the following: 

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

23 outer Continental Shelf revenues’ means all 

24 rentals, royalties, bonus bids, and other sums 

25 due and payable to the United States received 


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1 on or after October 1, 2012, from leases en2 tered into on or after the date of enactment of 

3 Public Law 109–432 for— 

4 ‘‘(i) the 181 Area; 

5 ‘‘(ii) the 181 South Area; and 

6 ‘‘(iii) the 2002–2007 planning area.’’. 

7 (b) DISPOSITION OF QUALIFIED OUTER CONTI8 NENTAL SHELF REVENUES.—Section 105 of the Gulf of 

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

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

11 (1) in subsection (b)— 

12 (A) in paragraph (1)— 

13 (i) in the paragraph heading, by strik14 ing ‘‘2016’’ and inserting ‘‘2012’’; and 

15 (ii) in subparagraph (A), by striking 

16 ‘‘2016’’ and inserting ‘‘2012’’; and 

17 (B) in paragraph (2)— 

18 (i) in the paragraph heading, by strik19 ing ‘‘2017’’ and inserting ‘‘2013’’; and 

20 (ii) in subparagraph (A), by striking 

21 ‘‘2017’’ and inserting ‘‘2013’’; and 

22 (2) by striking subsection (f) and inserting the 

23 following: 

24 ‘‘(f) LIMITATIONS ON AMOUNT OF DISTRIBUTED

25 QUALIFIED OUTER CONTINENTAL SHELF REVENUES.— 


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1 ‘‘(1) DISTRIBUTION TO GULF PRODUCING

2 STATES.— 

3 ‘‘(A) IN GENERAL.—Subject to subpara4 graphs (B) and (C), the total amount of quali5 fied outer Continental Shelf revenues made 

6 available under subsection (a)(2) shall not ex7 ceed $500,000,000 for each fiscal year. 

8 ‘‘(B) CAP INCREASE FOR GULF PRODUCING

9 STATES.—In the case of the qualified outer 

10 Continental Shelf revenues that may be made 

11 available to Gulf producing States under sub12 section (a)(2)(A), the cap on amounts specified 

13 in subparagraph (A) shall be for— 

14 ‘‘(i) fiscal year 2014, $600,000,000; 

15 and 

16 ‘‘(ii) each of fiscal years 2015 through 

17 2023, the applicable amount for the pre18 vious fiscal year increased by 

19 $100,000,000. 

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

21 fiscal year 2024 and each fiscal year thereafter, 

22 all qualified outer Continental Shelf revenues 

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

24 be made available without limitation for allocaVerDate Mar 15 2010 15:59 Mar 27, 2013 Jkt 029200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S630.IS S630

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1 tion to the Gulf producing States in accordance 

2 with subsection (b). 

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

4 limits the amount of qualified outer Continental 

5 Shelf revenues that would be paid under subsection 

6 (a)(2)(A)— 

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

8 of qualified outer Continental Shelf revenues 

9 provided to each recipient on a pro rata basis; 

10 and 

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

12 Continental Shelf revenues shall revert to the 

13 general fund of the Treasury.’’. 

14 SEC. 4. EFFECTIVE DATE. 

15 This Act and the amendments made by this Act take 

16 effect on October 1, 2012. 

Æ 


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