Cassidy’s Offshore Revenue Sharing Bill to Receive Vote on Senate Floor

WASHINGTON—The American Energy and Conservation Act of 2016, originally introduced in June by US Senator Bill Cassidy, MD (R-LA), will be voted on this week on the floor of the US Senate.

This legislation provides for more equitable revenue sharing for states involved in existing, new or future energy production from both onshore and offshore leasing areas. It also makes funds available for various conservation and coastal restoration activities.

“One-fourth of our nation’s energy supply depends on the support facilities in South Louisiana. Our coastline is vital to supporting these facilities and protecting families from storm surge. Revenue sharing allows our state to rebuild and maintain a healthy coast, and in turn, support American energy security,” said Dr. Cassidy.

Several stakeholder groups support the bill.

“America has tremendous untapped offshore energy potential, and this important legislation will ensure that coastal states have the opportunity to experience the same economic boost from energy exploration that we’ve seen in other parts of the country,” said Karen Harbert, president and CEO of the U.S. Chamber’s Institute for 21st Century Energy. “This legislation is particularly important now that we will have an administration interested in expanding areas open to exploration, which we look forward to working on in the coming months.”

“Securing public recreational access continues to be a top priority for the sporting community. By dedicating a portion of Land and Water Conservation Fund dollars to access initiatives, these ‘Making Public Lands Public’ provisions provide critical resources to ensure that the nation’s sportsmen and women continue to have places to hunt, fish and spend time outdoors,” said Congressional Sportsmen’s Foundation President Jeff Crane.

“This legislation is a win-win for Louisiana. It will incentivize job creation and investment in the state’s oil and gas industry, as well as provide much needed funds for coastal protection,” Gifford Briggs, Acting-President of the Louisiana Oil & Gas Association said.

Energy and Natural Resources Chairman Lisa Murkowski (R-AK), Sen. Tim Scott (R-SC), Sen. Dan Sullivan (R-AK), Sen. Thom Tillis (R-NC) and Sen. David Vitter (R-LA) co-sponsored this bill in the Senate.

American Energy and Conservation Act of 2016

For years, energy activities in coastal Gulf States and adjacent offshore waters have produced billions of barrels of oil and trillions of cubic feet of natural gas for American energy consumers. In 2010, for example, over 30 percent of the oil and 11 percent of the natural gas produced in the US was produced in the Gulf of Mexico. Gulf States support offshore energy development for the rest of the country and provide the support for, and pay for the infrastructure needed to bring this energy to market.

With all development, there are increased costs associated with supporting increased traffic. This includes additional use of local and state resources, as well as transportation corridors such as pipelines, vessels and trucks, in order to get the energy delivered to consumers all across the US.

Addressing the historic costs of hosting a capital-intensive industry while ensuring resilient domestic energy supply can only be attained through equitable revenue sharing. This bill is anticipated to provide billions for coastal restoration efforts. 

• Read the fact sheet here.

• Read the legislative overview here.

• Read the legislation here.