Securing Our Energy Coast and Saving America's Wetland
| Additional Resources |
For a history of coastal restorations efforts at the federal level, please view the Senator's presentation, "Louisiana's Coastline: Federal Initiatives to Save Our Coast." |
To learn more about the efforts of the Louisiana Department of Natural Resources on the issue of coastal erosion, log on to their website. |
The Mineral Lands Leasing Act of 1920 shares with states 50 percent of revenues from mineral production on federal lands within each state's boundaries. These funds are distributed to states automatically, outside the budget process and not subject to appropriations. But there is no similar provision for coastal producing states to share federal oil and gas revenues generated on the Outer Continental Shelf (OCS).
In light of the OCS' vital contribution to our nation's energy, economic and national security needs, we should return a share of these revenues to the few states that sustain this critical energy supply. In this regard, Louisiana and other coastal producing states are no different than states producing onshore. They each serve as the platforms that support basic elements of our daily lives - turning on our lights, heating our homes and running our commuter trains.
In supporting the production and transportation of 80 percent of our nation's offshore oil supply, Louisiana's coast has a tremendous national impact. Though Hurricane Katrina struck our shores more than four months ago, its impact on the price and supply of oil and gas in the United States can still be felt today. Louisiana's coast is truly America's Wetland - and America faces a national emergency.
Coastal erosion in Louisiana presents a direct threat to our national security and the global economy, and we must meet this threat with the same vigor we would anything else that endangered our homeland to such a potentially devastating ends. Returning a portion of OCS revenues to Louisiana and other coastal producing states is a crucial first step to restoring and preserving our vital wetlands and the billions of dollars in energy investments they protect.
Advancements made in 2005: The Energy Bill
| Annual Funding by Parish in the 2005 Energy Bill |
Assumption $1.36 million | Calcasieu $2.25 million |
Cameron $2.61 million |
Iberia $2.17 million |
Jefferson $4.286 million |
Lafourche $2.44 million |
Livingston 2.028 million |
Orleans $4.133 million |
Plaquemines $3.404 million |
St. Bernard $3.306 million |
St. Charles $1.82 million |
St. James $1.55 million |
St. John $1.747 million |
St. Martin $1.519 million |
St. Mary $2.284 million |
St. Tammany $2.646 million |
Tangipahoa $1.931 million |
Terrebonne $3.216 million |
Vermilion $2.278 million |
For the first time ever, the federal government acknowledged the significant contributions that America's Wetlands and the Gulf Coast provide to the security and economic strength of our country through our offshore oil and gas production. The Energy Bill, which was signed into law on August 8, 2005, includes $1 billion in coastal impact assistance for Louisiana and other coastal oil- and gas-producing states. Championed through the diligent efforts of Sen. Landrieu and her Gulf Coast colleagues, the measure provides $250 million per year for fiscal years 2007 through 2010 to six coastal energy-producing states: Louisiana, Texas, Mississippi, Alabama, Alaska and California. Each state would be allocated a fair share based on the oil and gas production off its coast, with Louisiana standing to receive a particularly fair 54 percent, or $135 million per year.
The measure included in the final Energy Bill authorizes funds to be used for the conservation, protection and restoration of coastal areas and wetlands; the mitigation of damage to fish, wildlife and other natural resources; and the implementation of federally-approved marine, coastal and other conservation management plans. Coastal parishes, counties and boroughs, would receive 35 percent of each state's share. The direct spending, which is not subject to appropriations, was originally added to the Senate version of the bill by a 69-26 vote in June of 2006 despite strong White House opposition.
For a great part of our nation's history, we looked to the Western frontier for its rich resources and the promise of new economic and military security. Before that, this promise was found on the seas, as our ancestors defied conventional wisdom in search of new possibilities, new markets and the hope of a new nation. In this spirit, the passage of Energy Bill gives America a brand new set of tools for its toolbox as we look to the Ocean Frontier and build a future of energy independence.
The inclusion of the coastal impact assistance provision is a particularly important victory for Louisiana and the other Gulf Coast producing states who contribute so much to our national energy supply, security and economy each year.
Future Goals: OCS Revenue Sharing
Every year, inshore states keep half of the royalties they create from oil and gas drilling on their federal lands. This year, Wyoming is expected to receive $1.3 billion as their fair share of royalties. If Louisiana were able to keep our fair share of OCS revenues, we would be able to finance the greatest hurricane protection system in the world. That is why this March, I introduced the Gulf Coast Protection Act, which provides coastal, energy producing states with 50 percent of the federal revenue generated by energy production off their coasts on the OCS. This funding would be dedicated to increased coastal hurricane protection, including stronger levees and comprehensive coastal restoration for all of southern Louisiana.
It is long past time for the federal government to make a full-fledged commitment to coastal protection and restoration. As such, I and the entire Louisiana delegation are using every avenue available to leverage the federal support we need. We came one 
step closer to achieving out goal when I cast the deciding vote in favor of the FY 2007 Budget Resolution, after a $10 billion reserve fund from excess federal revenue was created to help coastal states meet their restoration and protection needs. The excess revenue will come from three areas: future revenue from offshore energy production that is not currently part of the federal budget; a significant portion of the federal share of revenue from energy production in the Alaska National Wildlife Refuge (ANWR), upon future passage by the U.S. Congress; and a portion of revenues that exceed the current projection for television spectrum auctions.
Through their devastating effects, Hurricanes Katrina and Rita illustrated the importance of the Gulf Coast as the nation's Energy Coast. While we debate how recovery and rebuilding efforts for the region will be funded, I have and will continue to promote OCS Revenue Sharing as a method to allow these states to rebuild themselves.
Conserving Our Environment: Americans Outdoors Act
Senator Alexander (R-TN) and I reintroduced legislation, the Americans Outdoors Act (S. 964), which would provide $1.425 billion a year in OCS revenues for four conservation programs: coastal impact assistance for oil and gas producing coastal producing states. While Louisiana would benefit from each of the programs included in this legislation, the coastal impact assistance program could provide our State with as much as $260 million annually for six years without being subject to the appropriation process. This legislation was first introduced during the 108th Congress and the Senate Energy and Natural Resources Committee held a hearing on the bill on July 20, 2004.