An amendment to the Energy Policy Modernization Act (EPMA) that would provide greater equity in revenue sharing for Gulf states was introduced on Wednesday by U.S. Sens. Bill Cassidy (R-LA), Tim Kaine (D-VA), Tim Scott (R-SC), Thom Tillis (R-NC), David Vitter (R-LA), Mark Warner (D-VA), and Energy and Natural Resources Chairman Lisa Murkowski (R-AK).
The amendment would lift the Gulf of Mexico Energy Security Act (GOMESA) revenue sharing cap and allow Mid-Atlantic states and Alaska to share in future offshore energy production revenue.
“By law, money from revenue sharing goes towards rebuilding a healthy coast,” Cassidy said. “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 — 0.07 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.”
The EPMA amendment would raise the GOMESA revenue sharing cap for Alabama, Louisiana, Mississippi and Texas from $500 million to $999 million from 2027 to 2031. Gulf states would receive an estimated additional $1.87 billion as a result.
The Mid-Atlantic states – Virginia, North Carolina, South Carolina and Georgia – would receive 37.5 percent of revenue from 2027 to 2031. The amendment directs 12.5 percent of Mid-Atlantic generated federal treasury revenue be split between Department of Energy renewable energy, energy efficiency and nuclear programs, the National Park Service for deferred maintenance, and the Secretary of Transportation to administer and award TIGER discretionary grants.
Alaska would also receive 37.5 percent of royalties. A total of 12.5 percent of its federal treasury revenues would go to a new Tribal Resilience Program.