|
WASHINGTON— U.S. Senator Bill Cassidy, M.D. (R-LA) joined Energy and Natural Resources Chairman Lisa Murkowski (R-AK), Sen. Tim Kaine (D-VA), Sen. Tim Scott (R-SC), Sen. Thom Tillis (R-NC), Sen. David Vitter (R-LA) and Sen. Mark Warner (D-VA) to introduce an amendment to the Energy Policy Modernization Act that brings greater equity in revenue sharing for the Gulf states by lifting the Gulf of Mexico Energy Security Act (GOMESA) revenue sharing cap, while allowing Mid-Atlantic states and Alaska to share in future revenue from offshore energy production.
Dr. Cassidy released the following statement:
“By law, money from revenue sharing goes towards rebuilding a healthy coast. Strengthening Louisiana’s coastline not only keeps our economy strong and families safe from future storm surge—but it’s also critical to protecting our nation’s energy infrastructure. One fourth of our nation’s energy supply depends on the support facilities in South Louisiana. “In fiscal year 2014, the federal government received $4.6 billion in royalties from crude oil production in the Gulf of Mexico, while the coastal states who supply the energy infrastructure only received $3.4 million—.07 percent. To put this in perspective, states who produce energy onshore get 50 percent of the royalties. Revenue sharing is not only about fairness, it is about Louisiana’s survival and American energy security.”
Revenue Sharing Amendment Summery
Provides greater equity in revenue sharing for states that host offshore energy production by lifting the GOMESA revenue sharing cap for Louisiana, Texas, Mississippi, and Alabama, from $500 million to $999 million from 2027 to 2031. It is estimated that Gulf States would receive an additional $1.87 billion.
Establishes revenue sharing to Mid-Atlantic states (VA, NC, SC, GA). The states will receive 37.5% from 2027 to 2031. It directs 12.5% of federal treasury revenues generated in the Mid-Atlantic states to: 4.2% to energy efficiency, renewable energy and nuclear programs at the Department of Energy 4.2% to National Park Service for deferred maintenance 4.2% to the Secretary of Transportation to administer and award TIGER discretionary grants
Alaska will receive 37.5% of royalties while directing 12.5% of federal treasury revenues to a new Tribal Resilience Program. The state money will be distributed in the following manner: 28% to State of Alaska 7.5% to coastal political subdivisions 2% to the Denali Commission
Read the amendment here. |