Front view of the Capitol

Congressmen Carter, Scalise Introduce Bill to Increase Coastal Restoration Funding, Set Stage for Offshore Wind Revenue Sharing

July 20, 2022
Press Release

 

WASHINGTON, D.C. – Today, Congressman Troy A. Carter, Sr. and House Republican Whip Steve Scalise introduced bipartisan legislation that puts Louisiana first by updating the Gulf of Mexico Energy Security Act (GOMESA) to increase coastal states' share of oil and natural gas revenue. The Budgeting for Renewable Electrical Energy Zone Earnings (BREEZE) Act equalizes the percentage of revenue sharing to match those of onshore states, improves South Louisiana's resiliency against hurricanes, provides hundreds of millions more dollars to restore our coast, and sets the stage to invest and collect revenue from offshore wind energy.

“Louisiana’s coastline is facing an existential threat, and our state needs and deserves a sufficient and reliable funding stream to protect against erosion and more intense hurricanes due to climate change,” said Congressman Carter. “After long being shortchanged in our state’s share of energy revenues, the BREEZE Act would help level the playing field for Louisiana while building a framework to bring home more funds for coastal restoration from the growing sector of offshore wind. The scale of this challenge is enormous, and I’m glad to collaborate on this problem-solving bill with Congressman Scalise to protect the people, environment, and economy of Louisiana.”

“Offshore energy production provides crucial dollars for our state to use to restore our coast, which is the first line of defense against powerful Gulf storms. For years, I have fought to increase the share of oil and gas revenue that Louisiana receives from GOMESA to 50 percent, leveling out the playing field with interior states. The BREEZE Act not only achieves that goal but goes even further by allowing Louisiana to collect revenue from future offshore wind development in the Gulf of Mexico, which our state can use to continue to make major investments in coastal restoration and hurricane protection projects that protect Louisiana families from storms. I’m proud to partner with Congressman Carter to improve our state’s resiliency against Gulf storms and further support our coastal communities,” said Whip Scalise.

Louisiana leaders and stakeholders also praised the introduction of the BREEZE Act:

“Parishes Advocating for Coastal Endurance (PACE) is a proud supporter of the BREEZE Act. GOMESA funding is vitally important to our working coast and parishes as we use these funds for restoration and hurricane protection. Establishing another revenue sharing opportunity for our coastal parishes for wind lease sales would be another opportunity to protect, restore and create a more resilient coast,” said Matthew Jewell, President, St. Charles Parish, President, Parishes Advocating for Coastal Endurance.

“The BREEZE Act makes the long needed legislative changes to give a greater portion of OCS hydrocarbon revenue to the coastal states and makes similar allotments for future revenue from offshore wind projects on the OCS. Most importantly, it includes a mandate that the funds be spent on coastal resiliency / restoration, wildlife preservation, or improved infrastructure projects,” said Joseph Orgeron, Ph.D., Executive Director, Restore Or Retreat.

“This critical funding stream allows us to continue making historic investments in restoration and hurricane protection while benefiting Louisiana for years to come. The Gulf of Mexico has great potential for offshore wind lease sales starting next year, and we are directly investing in Louisiana’s future by securing revenue sharing from offshore wind. The BREEZE Act makes the necessary amendments to GOMESA to better serve coastal Louisiana and aligns us with other states with energy and mineral development on federal land that face no cap and share 50% of the revenues produced. We are appreciative of Congressman Steve Scalise and Congressmen Troy Carter for authoring this bipartisan bill and prioritizing the restoration of our coast,”said Chip Kline, Chairman, Louisiana Coastal Protection and Restoration Authority.

“The BREEZE Act enables coastal economies to invest in, and protect, themselves. The BREEZE Act is a win for both industry and communities, while fairly funding ecological restoration. As nearly 50 percent of refining and 15 percent of production domestically occurs along the Gulf Coast, investing in coastal restoration not only serves Gulf states, but further doubles as an investment in stabilizing energy prices nationwide. Moreover, the BREEZE Act captures the crosswinds of the energy sector by establishing revenue-sharing provisions for offshore wind, facilitating a future for clean industrial hydrogen,”said Michael Hecht, President and CEO, GNO, Inc.

Background on the BREEZE Act:

  • Increases states' share of revenue from oil and natural gas production in the Gulf of Mexico from 37.5 percent to 50 percent and eliminates the annual cap on funds received by Gulf states under GOMESA.Interior states get 50 percent of revenues from their energy leases, without being subject to an annual cap like Louisiana is.

  • The BREEZE Act corrects this disparity by increasing Gulf states’ share of oil and gas revenues to 50 percent – matching the interior states’ share – and removes the annual cap. This increase will ensure more funding goes towards our coastline so we can continue to make the major investments in coastal restoration and hurricane protection that our state needs and Louisiana families deserve.

  • Establishes a revenue sharing structure for coastal states for wind lease sales and production on the Outer Continental Shelf (OCS). All qualified OCS revenue shall be distributed as follows:
    • 12.5 percent to the U.S. Treasury.
    • 37.5 percent to the North American Wetlands Conservation Fund.
    • 50 percent to each eligible state.

  • Authorizes the funds received under the bill to be used for:
    • Projects and activities for the purposes of coastal protection and resiliency, including conservation, coastal restoration, estuary management, beach nourishment, hurricane and flood protection, and infrastructure directly affected by coastal wetland losses.
    • Mitigation of damage to fish, wildlife, or natural resources, including through fisheries science and research.
    • Implementation of a federally approved marine, coastal, or comprehensive conservation management plan.
    • Mitigation of the impact of outer Continental Shelf activities through the funding of onshore infrastructure projects.
    • Planning assistance and the administrative costs of complying with this section.

Groups Supporting the BREEZE Act:

  • American Clean Power Association
  • Congressional Sportsmen's Foundation
  • Ducks Unlimited
  • National Audubon Society
  • National Ocean Industries Association
  • National Wildlife Federation
  • Bayou Industrial Group
  • Coast Builders Coalition
  • GNO, Inc.
  • Greater Lafourche Port Commission
  • Houma-Terrebonne Chamber of Commerce
  • Jefferson Chamber of Commerce
  • LA-1 Coalition
  • Lafourche Parish Government
  • Morganza Action Coalition
  • Parishes Advocating for Coastal Endurance
  • Pontchartrain Conservancy
  • Tangipahoa Chamber of Commerce
  • Tangipahoa Parish Government
  • South Central Industrial Association
  • St. Bernard Parish Government 
  • St. Tammany Chamber of Commerce

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