Senate Energy Committee Considers Cassidy Legislation to Strengthen Gulf Revenue Sharing Program

Press Release

Madam Chair, Thank you for the hearing and for including S.2130 on the agenda, Protecting and Increasing Revenues Under the Gulf of Mexico Energy Security Act, or GOMESA, that is available to Louisiana, and that other Gulf States share, for coastal restoration, hurricane and flood protection, which is essential to restore our eroding coast--a coastline by the way, eroding in part due to levees built along the Mississippi for the benefit of inland ports and other states. And we bear the brunt.

According to the Department of Interior, from fiscal year 2016 to fiscal year 2020, Interior collected almost 21 billion dollars in offshore receipts from royalties, rents, bonus bids, inspection fees and other revenues. During that time, $757 million was shared with Gulf States, which is just 3.6% of offshore revenues generated. This is not equitable, certainly not in comparison with what states get for onshore revenue, and does not acknowledge the national significance of the Gulf region meeting the Nation's energy needs.

Bipartisan legislation introduced by Senator Sheldon Whitehouse and I, fixes this inequity and improves the existing revenue sharing program for states producing offshore energy revenue. The bill also creates the new national revenue sharing program from offshore wind energy generation and provides dedicated sustainable funding to the National Ocean's and Coastal Security Fund. I thank Senators Hyde-Smith, Heinrich, and King who are all cosponsors of the bill. And several of our Senate colleagues not on this committee, have also endorsed.

Specifically, S.2130, or the RISEE Act, removes an existing cap authorized in GOMESA on the amount of dollars shared among four Gulf States, as well as the cap on funds available for the Land and Water Conservation Fund's stateside assistance program. It increases the percentage of offshore revenue shared by the Gulf States. It protects offshore revenue from sequestration and makes additional leases eligible for revenue sharing in the future. And the reason I think Senator Whitehouse is in favor, in part, the bill also creates a fourth GOMESA equity to provide immediate funding to the National Ocean's and Coastal Security Fund, and as previously mentioned, creates a new national revenue sharing program for states hosting offshore wind energy generation.

The bill is supported by more than 50 national, state and local organizations from local chambers to levee districts, environmental organization such as the National Wildlife Federation, the Environmental Defense Fund, the Audubon Society, sporting groups such as the Congressional Sportsmen's Foundation, the Theodore Roosevelt Conservation Partnership, American Sport-fishing Association, and Ducks Unlimited along with associations representing all forms of energy production, as well as 25 Louisiana state legislator and parish leaders and Governors including Governor Edward's from Louisiana, Governor Baker from Massachusetts, and Governor McKee from Rhode Island.

In a letter I received from those environmental groups mentioned above, they say, "by investing coastal energy revenues in coastal protection and restoration and resilience, the RISEE Act will bring vital resources to mitigate the mounting hazards, risks, and impacts coastal communities face". By the way, I ask that unanimous consent be given to enter these letters into the record.

In the last two years, Louisiana has been hit by several hurricanes and tropical storms, including hurricane Laura, which was the most powerful storm to make landfall in Louisiana, and most recently hurricane Ida, with recorded wind gusts of more than 220 miles per hour. These storms exacerbate a land loss crisis that threatens ecosystems, communities, local economies, ways of life, and increases the risk of flooding. Coastal communities use the resources from offshore revenue sharing to restore our coastlines. By the way, Louisiana State Constitution requires this money be used to rebuild these coastlines. This is good legislation. I encourage my colleagues to support. Thank you for holding the hearing and I yield.