Cassidy Offshore Revenue Sharing Bill Passes Senate Energy Committee

Legislation to Send Louisiana Hundreds of Millions for Coastal Restoration

WASHINGTON - The U.S. Senate Committee on Energy and Natural Resources voted to advance U.S. Senators Bill Cassidy's, M.D. (R-LA) Reinvesting in Shoreline Economies & Ecosystems (RISEE) Act, which would increase funding from offshore energy revenue sharing that Louisiana uses for coastal restoration. The bill would also amend the Gulf of Mexico Energy Security Act (GOMESA) to, among other things, remove the revenue sharing cap which could bring billions of additional dollars to Louisiana and the Gulf Coast region.

"We are one step closer to bringing hundreds of millions of additional dollars to Louisiana to rebuild our shoreline and support flood control structures while creating thousands of good-paying jobs," said Dr. Cassidy. "The RISEE Act is good for our economy, our environment, and the nation. Let's get this bill across the finish line."

"To unlock the full potential of offshore wind, we need to lower the barriers standing in the way of growth and support states investing in the future of clean energy," said Senator Sheldon Whitehouse (D-RI). "My bipartisan RISEE Act will help even the playing field for offshore wind, which doesn't enjoy the massive subsidies the oil and gas industry does, while giving coastal states a share of wind revenues to make investments in coastal resilience. I'm pleased to see continued progress and hope we can pass RISEE before the end of this Congress."

Cassidy announced that he secured committee consideration and a markup of the legislation in August.

The bill amends GOMESA by:

• Eliminating the state revenue sharing cap, currently at $375 million.
• Lifting the Land & Water Conservation Fund's state-side funding cap of $125 million.

Analysis suggests Louisiana, Texas, Mississippi, and Alabama missed out on about $216 million in offshore revenue sharing that would have been dedicated to local resiliency projects within the last year alone.

Louisiana constitutionally dedicates revenues from offshore energy production to pay for conservation, restoration, and environmental projects to preserve and restore its eroding coastline.

Current law requires all revenues generated from offshore wind leases and production beyond state waters be deposited in the U.S. Treasury. The RISEE Act sends 37.5% of offshore wind revenue to adjacent states where offshore wind farms are developed. The state share is based on a formula developed by the Secretary of Interior to ensure states are receiving revenues from wind energy development off their coasts. By sharing offshore wind revenues with nearby states, the RISEE Act will invest in coastal protection and restoration.

The state funds can be used:

• For coastal restoration, hurricane protection, or infrastructure;
• To mitigate damage to fish, wildlife, or other natural resources, including through fisheries science and research; and
• To implement a marine, coastal, or conservation management plan.

In addition, 12.5% of offshore wind revenues would serve as a further dedicated funding source for the National Oceans and Coastal Security Fund. This Fund includes dollars to States based on a formula and also provides competitive grants to coastal and Great Lakes communities to respond to coastal erosion and sea level rise, restore coastal habitat, and make improvements to coastal infrastructure.

Background

The RISEE Act was considered and passed out of the Senate Energy and Natural Resources Committee last Congress. Learn more about growing support for Cassidy's bill to strengthen the Gulf revenue sharing program.

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