Louisiana House Bill HCR11

Louisiana 2020 1st Special Session

• Introduced: 6/9/20
• Refer: 6/9/20
• Report Pass: 6/10/20
• Engrossed: 6/17/20
• Passed: 6/22/20

Caption

Memorializes the U.S. Congress and the Louisiana congressional delegation to remove the revenue sharing cap on the Gulf of Mexico Energy Securities Act of 2006 for Gulf producing states and to take such actions as are necessary to rectify the federal revenue sharing inequities between energy producing states

Impact

The resolution indicates that the current cap on GOMESA revenues has significant implications for Louisiana, which is home to critical infrastructure supporting energy production and distribution. Louisiana’s coastal ecosystems play a vital role in energy security, as they house and protect the infrastructure necessary for accessing and transporting energy resources. The document underscores how vital the GOMESA revenue stream is for the state's Coastal Protection and Restoration Fund, which supports various initiatives aimed at hurricane protection, coastal conservation, and restoration in response to the state’s struggle against wetland loss.

Summary

HCR11 is a concurrent resolution that memorializes the United States Congress and the Louisiana congressional delegation to eliminate the revenue sharing cap imposed by the Gulf of Mexico Energy Security Act of 2006 (GOMESA) for Gulf producing states. The purpose of this resolution is to address the inequities in federal revenue sharing that affect states actively producing energy from the Gulf. Currently, revenues from oil and gas production in federal waters are capped at $375 million annually, which restricts the amount of funding available for states like Louisiana that contribute significantly to the energy supply of the entire nation.

Sentiment

The sentiment around HCR11 appears to be largely supportive among Louisiana legislators, reflecting a unifying concern for the state’s environmental and economic well-being. The resolution has drawn bipartisan support, with an understanding that rectifying federal revenue sharing inequities is necessary not only for economic reasons but also to sustain Louisiana’s coastal ecosystems that are essential for both local communities and national energy production. This collaborative push highlights the importance placed on Louisiana’s unique position as a leading state in oil and gas production.

Contention

While HCR11 presents a clear call to action, it potentially raises concerns about the balance of state and federal powers over energy resource management. There may be apprehensions from those who fear that removing caps on revenue sharing could lead to unchecked federal exploitation of natural resources without adequate environmental safeguards. Nevertheless, the resolution emphasizes the collaborative need for federal recognition of the specific challenges faced by Gulf producing states, particularly in context to funding for coastal restoration and protection efforts.