[StBernard] [LANDRIEU] Success! President Signs Domenici-Landrieu "Fair Share" Bill

[Westley Annis]

WASHINGTON - On the 203rd anniversary of the Louisiana Purchase, President
George Bush today signed into law the Tax Relief and Health Care Act of
2006, H.R. 6111, which includes the Domenici-Landrieu Gulf of Mexico Energy
Security Act. The package passed the Senate, 79 to 9, in the final roll call
vote of the 109th Congress on December 9.

"Today is truly historic for the state of Louisiana," said U.S. Senator Mary
L. Landrieu, D-La. "Since I came to the Senate, I have been working to
secure a dedicated revenue stream to rebuild Louisiana's eroding coastline.
Last year's hurricanes rocked our state and made it more evident than ever
that protecting coastal wetlands is a vital part of our national energy
security. Today we took a big step forward to restoring our wetlands and
protecting our many coastal communities.

"The bill President Bush signed is good for the country because it reduces
our dependence on foreign energy sources and protects the energy
infrastructure along the Gulf Coast. It is good for Louisiana because the
revenue stream will be used to protect our state from deadly storm surges
and the unprecedented flooding we experienced after Hurricanes Katrina and
Rita."

Upon signing the legislation into law, President Bush said coastal
restoration was an issue that has "united the people of Louisiana." 

Co-authored by Senate Energy Committee Chairman Pete Domenici, R-N.M., and
Sen. Landrieu, the only Democrat to attend today's ceremony, the law opens
8.3 million new acres in the Gulf of Mexico to oil and natural gas
production and shares 37.5 percent of new revenues with coastal,
energy-producing states: Louisiana, Texas, Mississippi and Alabama. The
revenues will be used for wetlands restoration, hurricane protection and
flood control projects. Louisiana further buttressed the money's dedicated
use by passing a constitutional amendment that specifically directs the
funds to these pressing needs. An additional 12.5 percent share will be used
for the state side of the Land and Water Conservation Fund, which funds
building parks and preserving green spaces in all 50 states.

Under the new law, Louisiana is projected to receive at least $13 billion
over the next 30 years. Coupled with that, the state is expected to receive
$9 billion for hurricane protection, wetlands restoration and navigation
projects in the next 10 years from the regular budget process and other
previous legislation, such as The Breaux Act, the Coastal Impact Assistance
Program Sen. Landrieu championed last year, as well as the Katrina- and
Rita-related supplemental appropriations bills which Sen. Landrieu helped to
craft from her position on the Senate Appropriations Committee. These
sources, when taken together, are estimated to represent a federal funding
plan that will average more than $1 billion for Louisiana's coast per year
for the next 30 years. Bonding programs will also allow the state to rely on
future funds to begin taking immediate action to restore and protect the
coast.

"The Domenici-Landrieu fair share bill will be the backbone of our effort to
rebuild and protect Louisiana's communities and coastline," Sen. Landrieu
said. "We can immediately get to the business of rebuilding with the
knowledge that we have the necessary funds to get the job done."

Business groups, including the National Association of Manufacturers, the
American Chemistry Council and the Consumer Alliance for Energy Security,
have hailed the bill as the key to increased domestic energy production and
more American jobs. The new area in the Gulf of Mexico 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 law also includes several key tax provisions, including a two-year
extension until 2010 of the Gulf Opportunity (GO) Zone tax incentive, which
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. 

"This law will help the economic future of Louisiana by giving businesses
additional confidence to invest while our state is rebuilt," Sen. Landrieu
said.

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