April 21, 2005: House Energy Bill Provision Would Divert Offshore Oil and Gas Royalties to Louisiana Coastal Restoration

The House passes its version of the 2005 Energy Policy Act (HR 6). One provision, secured by Louisiana Congressman Bobby Jindal, (R-Kenner), would provide Louisiana with up to $1 billion in offshore oil and gas royalties every year beginning in 2016. Louisiana and its coastal parishes would use the money to fund coastal wetland restoration efforts. Historically, offshore gas and oil royalties have been paid exclusively to the federal government, since these operations are conducted on federal territory. But Louisiana has long argued that a portion of this money should be used to help fund efforts aimed at restoring Louisiana’s coastal wetlands, the disappearance of which has been partly attributed to Gulf Coast oil and gas operations. A similar provision is included in the Senate version of the bill (see June 28, 2005). [Advocate (Baton Rouge), 4/17/2005]