Sign Up.  Stay Informed.

House of Representatives Passes Parity in Revenue Sharing for Coastal States

March 30, 2023

Majority Leader Steve Scalise’s H.R. 1, the Lower Energy Costs Act, reforms GOMESA and initiates revenue sharing from offshore wind for the first time.

BATON ROUGE, La. – The Louisiana Coastal Protection and Restoration Authority Chairman Chip Kline applauds the House of Representatives’ passage of long championed revenue sharing improvements. Text from the bipartisan Budgeting for Renewable Electrical Energy Zone Earnings (BREEZE) Act, which was introduced last Congress by Majority Leader Steve Scalise and Congressman Troy Carter, was included in H.R. 1, the Lower Energy Costs Act.

“Just last week, a diverse coalition of Louisiana’s coastal leaders went to Washington with a clear message – coastal states deserve their fair share of the revenues earned from energy produced off our shores,” said Chairman Kline. “Louisiana’s coastal program is poised to gain an additional $3.1 billion over the next decade if these revenue sharing improvements are signed into law, which is critical revenue that will help us continue implementing projects that have been envisioned for years.”

The BREEZE Act provisions in H.R. 1 remove the limiting, arbitrary cap on shared Gulf of Mexico Energy Security Act (GOMESA) revenues and elevates the percentage shared to 50%, a level on par with interior states. If passed quickly, this legislation could also allow Louisiana to take full advantage of the first offshore wind lease sale coming to the state this summer.

“Majority Leader Steve Scalise delivered for Louisiana and other coastal states this week, spearheading the most favorable, and valuable, legislation on coastal revenue sharing to pass a chamber of Congress in decades, if not ever,” said Chairman Kline. “As Congress considers legislation to promote American energy and improve permitting, I am confident that the Louisiana federal delegation will keep revenue sharing reform in the mix. Legislation like this is essential to realizing the full potential of our coastal master plan for a sustainable, thriving South Louisiana.”

The revenue sharing portions of the legislation would increase the state share of offshore oil and gas revenues for Alabama, Louisiana, Mississippi, and Texas from 37.5% to 50%. It would establish revenue sharing for states with new offshore wind development off their coastline. Under this bill, states with offshore wind development would receive 50% of the revenues from offshore lease sales and 37.5% of the revenues will be deposited into the existing North American Wetlands Conservation Fund. Finally, the legislation repealed a 2% administrative fee imposed on energy revenue sharing for interior states with energy development on federal lands within their borders.

H.R. 1 now awaits consideration by the Senate.