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Public Statements

Landrieu: Renewable Energy Lease Sale Shows Need for FAIR Act

Press Release

By:
Date:
Location: Washington, DC

U.S. Senator Mary L. Landrieu, D-La., today said that the first-ever offshore renewable energy lease sale highlights the need for a fair revenue sharing partnership between offshore producing states and the federal government. Currently, states that produce offshore renewable energy will share in none of the royalties, rentals and bonus bids that are sent to the federal government. Sen. Landrieu's Fixing America's Inequities with Revenues (FAIR) Act will ensure all energy producing states receive a fair share of the revenues they help produce, regardless of the type of energy. The legislation will also gradually lift the current congressionally mandated $500 million annual cap on revenues kept by Gulf Coast producing states.

"The upcoming lease sale for offshore renewable energy is a stark reminder of an inequity that offshore producing states have been fighting for decades - while coastal states like Louisiana have shared in virtually none of the revenues from the energy we produce off our shores, states that produce energy on federal lands onshore receive 50 percent of these revenues. That is why I joined Senator Lisa Murkowski to introduce the FAIR Act, to allow coastal states to keep up to 37.5 percent of revenues for all offshore energy production, regardless of the type. States that produce renewable energy on federal lands within their borders would keep 50 percent of revenues, just like traditional energy," Sen Landrieu said.

"If the FAIR Act had been law before the last Central Gulf of Mexico lease sale, Louisiana would have received approximately $400 million. This money would have gone a long way towards restoring our coast and protecting our communities; instead we received nothing. I am working to ensure that no state faces this kind of blatant injustice at the hands of federal energy policy. This is about justice for the coast and jobs for America. I will continue to work with my colleagues to pass this important legislation."

The FAIR Act:

Strengthens the partnerships between federal and state governments: Coastal energy producing states that produce any form of energy in the Outer Continental Shelf, whether oil, gas, or renewable wind or wave energy, will keep up to 37.5 percent of all revenues produced from that offshore energy production
Treats onshore renewable energy production equally: States that produce renewable energy onshore (solar, wind, etc.) on federal lands within their borders will keep 50 percent of the revenues from energy production to match the 50 percent already shared from oil, gas and coal production.
Fixes inequity between coastal and interior energy producing states: Interior states currently keep 50 percent of the oil, natural gas and coal mineral payments (royalties, bonus and rentals) generated from energy production on federal lands within their states. However, coastal states keep virtually nothing. Alaska and the Atlantic Seaboard states have no partnership with the federal government to keep revenues generated from their offshore energy production that is produced for our nation.
Lifts cap on GOMESA states, accelerates payments: The cap mandated by the Gulf of Mexico Energy Security Act will be gradually lifted, and phase two of GOMESA will be accelerated to 2013.


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