II
113th CONGRESS
1st Session
S. 630
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.
Short title
This Act may be cited as
the Fixing America's Inequities with
Revenues Act of 2013
or the FAIR Act of 2013
.
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:
Disposition of revenues
Definitions
In this section:
Alternative and renewable energy
The term alternative and renewable energy means energy derived from—
a wind, solar, renewable biomass, or ocean (including tidal, wave, current, and thermal) source; or
hydrogen derived from renewable biomass or water using an energy source described in subparagraph (A).
Coastal political subdivision
The term coastal political subdivision means a county-equivalent subdivision of a coastal State 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)); and
the closest point of which is not more than 200 nautical miles from the geographical center of any leased tract.
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)).
Distance
The terms distance and distances mean minimum great circle distance and distances, respectively.
Secretary
The term Secretary means the Secretary of the Interior.
Coastal State revenue sharing for outer Continental Shelf energy sources
In general
Subject to the other provisions of this section, for fiscal year 2013 and each subsequent fiscal year—
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
the Secretary shall, in accordance with subsection (b), disburse—
27.5 percent of the revenues described in subparagraph (A) to coastal States and coastal political subdivisions; and
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.
Exclusions
The revenues described in paragraph (1) do not include revenues generated from leases subject to section 8(g).
Allocation among coastal States and coastal political subdivisions
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.
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.
Payments to coastal political subdivisions
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.
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)).
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—
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
10 percent shall be divided equally among each coastal political subdivision that—
is more than 200 nautical miles from the geographic center of a leased tract; and
the State of Alaska determines to be a significant staging area for oil and gas servicing, supply vessels, operations, suppliers, or workers.
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.
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.
.
Distribution of revenues to Gulf producing States
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 subparagraph (A); and
by inserting the following:
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—
the 181 Area;
the 181 South Area; and
the 2002–2007 planning area.
.
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—
in subsection (b)—
in paragraph (1)—
in
the paragraph heading, by striking 2016
and inserting
2012
; and
in
subparagraph (A), by striking 2016
and inserting
2012
; and
in paragraph (2)—
in
the paragraph heading, by striking 2017
and inserting
2013
; and
in
subparagraph (A), by striking 2017
and inserting
2013
; and
by striking subsection (f) and inserting the following:
Limitations on amount of distributed qualified outer Continental Shelf revenues
Distribution to Gulf producing States
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.
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—
fiscal year 2014, $600,000,000; and
each of fiscal years 2015 through 2023, the applicable amount for the previous fiscal year increased by $100,000,000.
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).
Pro rata reductions
If paragraph (1) limits the amount of qualified outer Continental Shelf revenues that would be paid under subsection (a)(2)(A)—
the Secretary shall reduce the amount of qualified outer Continental Shelf revenues provided to each recipient on a pro rata basis; and
any remainder of the qualified outer Continental Shelf revenues shall revert to the general fund of the Treasury.
.
Effective date
This Act and the amendments made by this Act take effect on October 1, 2012.