Murkowski Unveils Offshore Revenue Sharing Legislation
Senator Joins with Mary Landrieu in Bipartisan Push for Fairness
WASHINGTON, D.C. – Senator Lisa Murkowski introduced major bipartisan legislation today with Senator Mary Landrieu (D-LA) to ensure that all states receive a fair and equitable share of the revenues from energy production on federal lands and waters.
The Fixing America’s Inequities with Revenues (FAIR) Act would give 27.5 percent of revenue from offshore energy development, including oil, gas, wind and other renewable energy sources, to coastal states, plus another 10 percent if the state creates a clean energy or conservation fund for a total of 37.5 percent.
“Revenue sharing is critical for the coastal communities that will shoulder the increased demands on their roads, docks and other infrastructure from offshore development. It’s only fair that these communities share in the revenues from the resources produced off their shores – regardless of whether that is oil and gas or wind and tidal energy,” Murkowski said.
Under the Murkowski-Landrieu plan, Alaska would receive billions of dollars once offshore development in the Beaufort and Chukchi seas is successful. These funds would help the state and impacted coastal communities enhance emergency response capabilities and construct critical infrastructure, such as deep water ports, airfields and docks.
The allocation method for Alaska directs 25 percent of the state’s 27.5 percent share to the communities most impacted by offshore development. Ninety percent of these funds would be allocated to the boroughs closest to offshore leases. Ten percent would go to boroughs that are significant staging areas for offshore development. The state would receive the remainder of the revenue. The federal government would still receive the lion’s share of revenues (62.5 percent) for deficit reduction.
The FAIR Act also extends the existing onshore revenue sharing program to provide states with an equal share of the revenue from renewable energy production on federal land.
“I could have introduced an Alaska-only bill, but we have purposefully expanded this legislation to gain the support of as many members as possible. We know that in this day and age, it’s a 60-vote world in the Senate,” Murkowski said.
Posted: March 20, 2013