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) a wind, solar, renewable biomass, or ocean 
                (including tidal, wave, current, and thermal) source; 
                or
                    ``(B) hydrogen derived from renewable biomass or 
                water using an energy source described in subparagraph 
                (A).
            ``(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.--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 area that is not a Gulf producing State 
        (as defined in section 102 of the Gulf of Mexico Energy 
        Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109-
        432)).
            ``(4) Distance.--The terms `distance' and `distances' mean 
        minimum great circle distance and distances, respectively.
            ``(5) 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 2013 and each subsequent fiscal year--
                    ``(A) the Secretary of the Treasury shall deposit 
                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 energy 
                development on the outer Continental Shelf areas of 
                coastal States; 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 
                        and renewable energy, energy research and 
                        development, energy efficiency, or 
                        conservation.
            ``(2) Exclusions.--The revenues described in paragraph (1) 
        do not include revenues generated from leases subject to 
        section 8(g).
            ``(3) Allocation among coastal states and coastal political 
        subdivisions.--
                    ``(A) In general.--Subject to paragraph (2), for 
                each fiscal year, the amount made available under 
                subsection (a) 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.
                    ``(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 paragraph 
                        (1), 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) and (C) of section 31(b)(4) of the Outer 
                        Continental Shelf Lands Act (43 U.S.C. 
                        1356a(b)(4)).
                            ``(iii) Exception for the state of 
                        alaska.--For purposes of carrying out 
                        subparagraph (A) 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 coastal political 
                                subdivision 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.
            ``(4) Administration.--The Secretary shall ensure that 
        revenues from all sources of alternative and renewable energy 
        leased, developed, or produced from any outer Continental Shelf 
        area are distributed among coastal States, coastal political 
        subdivisions, and Gulf producing States (as defined in section 
        102 of the Gulf of Mexico Energy Security Act of 2006 (43 
        U.S.C. 1331 note; Public Law 109-432)) in accordance with this 
        section.
    ``(c) Revenue Sharing for Certain Onshore Energy Sources.--The 
Secretary of the Treasury shall disburse 50 percent of all revenues 
derived from all rentals, royalties, bonus bids, rights-of-way, and 
other amounts due and payable to the United States from the development 
of alternative and renewable onshore energy sources to the State within 
the boundaries of which the energy source is located.''.

SEC. 3. 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--
            (1) by striking subparagraph (A); and
            (2) by 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, 
                2012, from leases entered into on or after the date of 
                enactment of Public Law 109-432 for--
                            ``(i) the 181 Area;
                            ``(ii) the 181 South Area; and
                            ``(iii) the 2002-2007 planning area.''.
    (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 (b)--
                    (A) in paragraph (1)--
                            (i) in the paragraph heading, by striking 
                        ``2016'' and inserting ``2012''; and
                            (ii) in subparagraph (A), by striking 
                        ``2016'' and inserting ``2012''; and
                    (B) in paragraph (2)--
                            (i) in the paragraph heading, by striking 
                        ``2017'' and inserting ``2013''; and
                            (ii) in subparagraph (A), by striking 
                        ``2017'' and inserting ``2013''; and
            (2) 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 made available under subsection (a)(2) 
                shall not exceed $500,000,000 for each fiscal year.
                    ``(B) Cap increase for gulf producing states.--In 
                the case of the qualified outer Continental Shelf 
                revenues that may be made available to Gulf producing 
                States under subsection (a)(2)(A), the cap on amounts 
                specified in subparagraph (A) shall be for--
                            ``(i) fiscal year 2014, $600,000,000; and
                            ``(ii) each of fiscal years 2015 through 
                        2023, the applicable amount for the previous 
                        fiscal year increased by $100,000,000.
                    ``(C) Subsequent fiscal years.--For fiscal year 
                2024 and each fiscal year thereafter, all qualified 
                outer Continental Shelf revenues made available under 
                subsection (a)(2)(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)(2)(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. 4. EFFECTIVE DATE.

    This Act and the amendments made by this Act take effect on October 
1, 2012.

Summary: Fixing America's Inequities with Revenues Act of 2013 or FAIR Act of 2013 - Amends the Outer Continental Shelf Lands Act to require the Secretary of the Treasury to deposit in the Treasury 37.5% of all revenues derived from all rentals, royalties, bonus bids, and other sums payable to the United States from energy development on the outer Continental Shelf (OCS) areas of coastal states (those within 200 nautical miles of a leased tract in the OCS which are not, however, in a Gulf producing state). Excludes from deposit under these terms any revenues generated from the leasing of lands within three miles of seaward boundaries of coastal states. Requires the Secretary of the Interior to disperse: (1) 27.5% of these revenues to coastal states and their political subdivisions; and (2) 10% of such revenues to coastal states that establish funds in their treasuries to support projects relating to alternative and 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. Requires the Secretary of the Treasury to disburse 50% of all revenues derived from all rentals, royalties, bonus bids, rights-of-way, and other amounts payable to the United States from the development of alternative and renewable onshore energy sources to the state within the boundaries of which the energy source is located. Amends the Gulf of Mexico Energy Security Act of 2006 by: (1) redefining the term &quot;qualified outer Continental Shelf revenues,&quot; and (2) revising the cap on the amount of such qualified revenues that may be made available to Gulf producing states.