Landrieu Introduces Gulf Coast Protection Act
Bill provides long-term funding for levees, coastal protection and wetlands restoration for Louisiana and other Gulf Coast states
March 15, 2006
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Saying it is past time for America to make a "full-fledged national commitment to coastal protection and restoration," U.S. Senator Mary L. Landrieu, D-La., today introduced the Gulf Coast Protection Act, which uses offshore oil and gas revenues for increased coastal hurricane protection, including stronger levees and comprehensive coastal restoration. This legislation provides coastal, energy producing states with 50 percent of the federal revenue generated by energy production off their coasts on the outer continental shelf (OCS).
"The Gulf Coast Protection Act makes the same promise to millions of Americans who live in Louisiana and other Gulf Coast states that the Netherlands made to its citizens after a massive flood struck their nation in 1953: 'Never again,'" Sen. Landrieu said. "It presents a sensible, fiscally responsible, and long-term financing solution to a monumental problem that will require tens of billions of dollars over many years.
"Protecting our coastline will give confidence to American families who live along the Gulf Coast that they have a safe place to return home and raise their children. It also protects American trade and energy security through a mechanism that says every state deserves the same fair share of what it gives to the rest of the nation."
Sen. Landrieu added that "the federal government has been negligent in its duty to protect our Energy Coast and its citizens."
She cited a recent National Science Foundation report that said the Army Corps of Engineers tested New Orleans levee designs in a simulated hurricane in 1985, and discovered then the likelihood of the failures experienced after Hurricane Katrina. She also highlighted a Department of Homeland Security memo and presidential briefings highlighting the vulnerability in the days before the hurricane, as well as a denied 2004 request for hurricane protection and flood control funding.
As part of America's only Energy Coast, Louisiana produces a quarter of the nation's domestic oil supply and nearly a fifth of its domestic natural gas. But the pipelines, canals, refineries, and other onshore infrastructure so essential to our national energy security remain threatened by nature. To protect these assets, Louisiana receives less than one-tenth of one percent of the royalties shared with states.
Meanwhile, onshore energy-producing states share in the royalties generated by production on federal lands, recognizing the essential contributions these states make to the nation by hosting the activity - contributions identical to the work performed by Louisiana. Wyoming is expected to receive $1.3 billion this year under the program, while New Mexico's share is expected to approach $700 million.
"Through the continuous and reliable funding stream this bill creates, we can build the integrated flood control and levee systems to protect our people from future hurricanes and flooding," said Sen. Landrieu. "For America, this helps build and maintain the infrastructure that's needed to protect our national economy, energy security and environment.
"This legislation sets up a responsible, long-term revenue stream we can count on as we rebuild. In so doing, it protects the vital port system that sustains 20 percent of our global trade, and 70 percent of all our grain exports. It also protects the homes, lives and livelihood of millions of hardworking Americans who live along the Gulf Coast and wake up each morning to serve our nation."
Total federal OCS revenues are expected to fall in the $6 to $8 billion range this year, with half that amount then available to Gulf Coast energy-producing states under Sen. Landrieu's bill. This builds on funding Sens. Landrieu and David Vitter, R-La., secured in last year's Energy Bill that provides $1 billion in coastal impact assistance to these states over the next four years. The Gulf Coast Protection Act would distribute the state revenue shares using a similar formula as the Energy Bill did, allocating a portion to each state based on what share of OCS production occurs within 200 miles of each state's coast. Louisiana would stand to receive approximately 54 percent of the distributed state shares under this formula.
Sen. Landrieu also recently joined other Gulf Coast Senators in introducing legislation that provided these states with a fair share of OCS revenue from production in a limited area of the Gulf of Mexico known as Area 181. In addition to Sens. Landrieu and Vitter, the bill was cosponsored by Sens. Trent Lott, R-Miss., Thad Cochran, R-Miss., Richard Shelby, R-Ala., and Jeff Sessions, R-Ala.
"I'm proud to work with my other Gulf Coast colleagues on a nonpartisan basis to secure the long-term commitment we need to protect our people and our coastline," said Sen. Landrieu. "There is new momentum for this idea. The Coastal Impact Assistance provision in the Energy Bill sets a precedent for coastal revenue sharing, and the Gulf Coast Senators' Area 181 bill also provides an additional vehicle for this important discussion.
Sen. Landrieu called upon President Bush to support the idea.
"A presidential commitment is critical," she said. "We urge the Administration to join our bipartisan efforts. Effective coastal protection is not a small task, and I understand it does not come at an insignificant cost, but this is a question of priorities."
For the same amount of money over any entire year that the U.S. spends in Iraq every two weeks, the nation can build stronger and better levees to protect Gulf Coast communities from Category 5 hurricanes, and stem the erosion of Louisiana's coastal wetlands - the first line of defense against approaching storms. Already eroding at the alarming rate of a football field every half hour, the coastal land loss from hurricanes Katrina and Rita is estimated to be the equivalent of 73,000 lost football fields.
"Imagine that," Sen. Landrieu said. "An area more than twice the size of Washington, D.C., lost forever in a matter of hours."
The bill will now be referred for consideration by the Senate Energy Committee, of which Sen. Landrieu is a member.
Gulf Coast Senators Introduce Offshore Oil and Gas Revenue Sharing Bill
Bill provides coastal impact assistance to energy producing states.
March 8, 2006
Six Gulf Coast senators joined together today to introduce bipartisan legislation that will direct a portion of offshore oil and gas revenues from the Gulf of Mexico to the states of Mississippi, Louisiana, Alabama and Texas. The bill, authored by U.S. Senators Trent Lott, R-Miss., Mary Landrieu, D-La., Thad Cochran, R-Miss., David Vitter, R-La., Richard Shelby, R-Ala., and Jeff Sessions, R-Ala., responds to legislation reported out by the Senate Energy Committee today to open as much as 3.6 million acres of the Gulf to oil and gas production.
The Gulf Coast senators' bill would share with the coastal producing states 50 percent of the federal revenue generated by production in an area known as Area 181. This coastal impact assistance had not been included in S. 2253, the legislation passed by the committee this morning despite a letter from Senators Lott and Landrieu last month stating that they could not support such a bill unless coastal impact assistance was included. Read More