(The Center Square) — Currently, Louisiana voters are being asked to consider an amendment to the Louisiana constitution, which will direct federal funds from offshore wind to the Coastal Protection and Restoration Authority.
According to the Louisiana Secretary of State’s office, 960,561 have already cast their votes.
At the same time, Louisiana’s U.S. House delegation is working on legislation which, if passed, will allocate more federal dollars from oil and gas generated in the Gulf to the state, as well as revenues from wind farms.
These funds will be shared among eligible states and conservation programs, with half of all revenues from new offshore wind leases directed toward states within 75 miles of the wind project.
But if the legislation isn’t signed into law by President Joe Biden, the amendment to Louisiana’s constitution is useless, because the federal government has the ultimate authority over that revenue.
According to the Public Affairs Research Council, the current amendment primarily functions to encourage Congress to pass the bill.
In 2006, when the Gulf of Mexico Energy Security Act was passed in Congress, Louisianans also voted on an amendment to dedicate a portion of mineral revenues to fund coastal restoration and flood protection. Likewise, had Congress not passed GOMESA, that amendment would have been moot.
According to the bill, the U.S. Treasury will receive 12.5% of revenues from qualified offshore wind projects, while 37.5% will go to the North American Wetlands Conservation Fund to support habitat preservation and restoration efforts.
The remaining 50% of offshore wind revenues will be deposited into a special account for distribution among eligible states, determined based on their distance from the project.
States within proximity of these offshore wind projects will benefit from the new revenue, with closer states receiving a larger share. The amendment guarantees a minimum allocation of 10% to each eligible state.
The bill also amends the Gulf of Mexico Energy Security Act to allocate a greater share of oil and gas revenues to the states, reducing the federal share from 50% to 37.5% and increasing the state share to 62.5%.
Of the portion allocated to Gulf-producing states, 80% now goes directly to these states (up from 75%), while the remaining 20% (down from 25%) is directed to the Land and Water Conservation Fund to support conservation efforts across the United States.
