Cassidy Introduces Offshore Revenue Sharing Bill
WASHINGTON—US Senator Bill Cassidy, MD (R-LA), 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) introduced the American Energy and Conservation Act of 2016. This legislation will provide 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 important investments in various conservation and coastal restoration activities.
Dr. Cassidy previously announced that revenue sharing would receive a vote on the Senate floor. Senate Majority Leader Mitch McConnell tweeted, “Thanks to the Louisiana delegation, Senate is primed to take up the critical issue of resource production revenue sharing later this year.”
“Revenue sharing will receive a vote on the Senate floor. Leader McConnell and Chairman Murkowski’s commitment to revenue sharing is a big win for Louisiana and fellow coastal states. 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,” said Dr. Cassidy.
“Revenue sharing is one of my top legislative priorities because Alaskans deserve a fair share of the benefits and prosperity that accrue from the production of our vast offshore resources,” said Sen. Murkowski. “This bill encompasses both conventional and renewable energy alike, and will provide substantial dollars to our state and local governments. It also creates a Tribal Resilience Fund and provides a dedicated funding source for PILT payments to help communities throughout Alaska.”
“With this bill, Alaska will be poised to get its fair share from the federal government of proceeds from oil and gas development off of our coasts,” said Sen. Sullivan. “These funds will help areas closest to development, and will provide much needed funding for infrastructure, public safety, and education in Alaska.”
“America is blessed to have an abundance of offshore natural resources that can help put our nation on the path to energy independence,” said Sen. Tillis. “This legislation ensures equitable distribution of revenues derived from energy exploration, equity that is long overdue.”
“Increasing Louisiana’s revenue sharing from offshore oil and gas production is, quite frankly, a good pro-American energy policy. Considering Louisiana’s significant contributions to producing the energy this nation runs on, it’s only fair that our state – and other energy-producing states – are fairly compensated,” said Sen. Vitter. “This very important bill that will help support Louisiana’s offshore oil and gas production and the investments they make in Louisiana while also protecting and restoring our vital coastline.”
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.
- Read the fact sheet here.
- Read the legislative overview here.
- Read the legislation here.
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