[StBernard] [LANDRIEU] BREAKING NEWS: House Passes Domenici-Landrieu Oil and Gas Revenue-Sharing Plan

[Westley Annis]

***Breaking News***

House Passes Domenici-Landrieu 

Oil and Gas Revenue-Sharing Plan
 President Truman's offer "accepted," 37.5 percent to go to La. and Gulf
Coast states.

 

WASHINGTON - The U.S. House of Representatives today passed final
legislation that includes the Domenici-Landrieu Gulf of Mexico Energy
Security Act, S. 3711, which opens substantial new areas to oil and natural
gas drilling in the Gulf of Mexico and shares billions of dollars in
revenues with Louisiana and other energy-producing Gulf Coast states for
coastal wetlands restoration, hurricane protection and flood control
projects. An additional share will be used to build parks and preserve green
spaces in all 50 states. The package also includes several key tax
provisions, including a two-year extension of the Gulf Opportunity (GO) Zone
tax incentive that provides strong motivation to invest in the Gulf Coast.

"A mighty hurdle was cleared for Louisiana and the Gulf Coast today when the
House passed the Domenici-Landrieu plan as part of a final legislative
package," Sen. Landrieu said. "After almost 60 years, Louisiana will finally
receive a fair share of the oil and gas revenues produced off our shores.
This dedicated revenue stream is necessary to restore our coastal wetlands,
build levees and construct an effective flood control system - all of which
will fend off hurricanes rising in the Gulf. 

"This victory for Louisiana demonstrates how successful we can be when we
work as a team and keep our focus. The Louisiana congressional delegation
and Governor Kathleen Blanco, Lt. Governor Mitch Landrieu and many local
officials, business leaders and civic groups never stopped working to
achieve this goal. Numerous groups have been essential to this effort,
including America's WETLAND Campaign to Save Coastal Louisiana, Parishes
Against Coastal Erosion, Coalition to Restore Coastal Louisiana, Women of
the Storm, Levees.org, Coast Guardians as well as national groups such as
the National Association of Manufacturers, the American Chemistry Council,
the Consumer Alliance for Energy Security, the Agriculture Energy Alliance
and countless others."

Gulf of Mexico Energy Security Act

Sen. Landrieu and Senate Energy Committee Chairman Pete Domenici, R-N.M.,
coauthored the plan to open 8.3 million acres in the Gulf of Mexico and
share 37.5 percent of the new revenues, dedicated to coastal protection,
with Louisiana, Texas, Mississippi and Alabama. An additional 12.5 percent
will be dedicated to the state side of the Land and Conservation Fund, which
funds the acquisition of parks and green spaces across the country. The
White House endorsed the bill in late July.

"The plan is essential for the recovery and long-term economic vitality of
South Louisiana from Venice to Cameron because it will help us defend
against hurricanes while at the same time protecting one of America's most
vital ecosystems," Sen. Landrieu said. "It's also vital for the nation
because it increases energy production along America's only Energy Coast and
restores the wetlands that protect some of our nation's most critical energy
infrastructure. It further serves the Louisiana economy by creating jobs and
stimulating business activity, and does so in a fiscally responsible manner
without raising the federal budget deficit."

In the last decade, the price of natural gas has shot up. The National
Association of Manufacturers estimates that more than 3 million U.S. jobs
have been lost since 2000. The Domenici-Landrieu plan allows for increased
domestic energy production for the first time in 25 years, and geologists
expect to find significant oil and natural gas reserves. The area is
projected to produce enough natural gas to sustain more than 1,000 chemical
plants for 40 years, and enough oil to keep 2.7 million cars running and 1.2
million homes heated for more than 15 years. 

The Domenici-Landrieu plan is a significant step toward solving South
Louisiana's coastal erosion, as Louisiana is projected to receive more than
$13 billion over the next 30 years. Coupled with that, the state is expected
to receive $12 billion in the next 10 years from the regular budget process
and other previous legislation, such as The Breaux Act, the Coastal Impact
Assistance Program, and supplemental appropriations bills, which Sen.
Landrieu helped to craft from her position on the Senate Appropriations
Committee. Bonding programs will also allow the state to begin taking
immediate action to restore and protect the coast by relying on future
funds.

Tax Extenders

The legislative package the House passed along with the Domenici-Landrieu
plan would extend tax breaks benefiting Louisianians. Most important among
these is the Gulf Opportunity (GO) Zone tax incentive, which the whole
delegation has been pushing Congress to extend. The GO Zone incentive passed
in 2005 has allowed hundreds of businesses to invest in areas impacted by
Hurricanes Katrina and Rita and to take a 50 percent tax reduction for new
facilities or equipment, jumpstarting recovery by giving businesses an
incentive to quickly invest. Current law requires that businesses put new
facilities or equipment in place by the end of 2008, but the package will
extend the benefit until 2010. 

"The recovery effort resulting from Hurricanes Katrina and Rita in my state
and other Gulf states is beyond what the country has ever seen before," Sen.
Landrieu said. "Many businesses need incentives, such as the GO Zone tax
breaks, to encourage redevelopment in very difficult circumstances, which is
essential to strengthening our economy and rebuilding our communities."

Also included in the tax package are extensions for college tuition
deduction, a research-and-development credit and a deduction for teachers'
out-of-pocket expenses. 

The Senate, which passed the Domenici-Landrieu bill with a strongly
bipartisan 71-to-25 vote in August, is expected to pass the combined revenue
sharing and tax-extender package this weekend and send it to the President
for his signature.

 

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