Posted on November 4, 2024
Louisianans heading to the polls on Tuesday will decide on a state constitutional amendment that would dedicate future federal revenue from offshore wind energy to coastal restoration and protection.
The proposed amendment, approved by the state Legislature earlier this year, could help the state address expected cash shortages for coastal restoration as billions in funding related to the 2010 BP Deepwater Horizon oil spill runs out by 2032. Offshore oil and gas revenue distributed to Louisiana by the federal government is already subject to the same restrictions and has helped fund a list of marsh restoration and coastal protection projects.
The state’s congressional delegation has been pursuing legislation in Washington that would define how future wind energy from federal waters would be distributed to coastal states, but it is unclear if or when it may pass. Louisiana’s Legislature has also approved a companion bill, signed into law by Gov. Jeff Landry, that dedicates revenue from alternative energy, such as wind, in state waters to the coastal fund. That fund is set aside for restoration, hurricane protection and related spending.
The amendment relates to all forms of alternative or renewable energy, though wind is the most prominent for now. Wind energy in the Gulf of Mexico remains in its infancy, though efforts are underway to develop the potential. The federal government wants to produce 30 gigawatts of energy offshore by the end of the decade, and Louisiana is seeking to leverage its expertise in offshore oil and gas to benefit from the wind industry.
The state has signed its first two wind energy agreements for Louisiana waters, to be constructed off the southwest and central coasts. The federal government held its first wind energy auction for the Gulf in 2023, resulting in a successful bid for a project off the coast of southwest Louisiana from German company RWE.
State Rep. Joseph Orgeron, R-Golden Meadow, sponsored the bill on the amendment and noted the importance of finding additional sources of money for coastal projects as the $8.5 billion from fines and settlements related to the BP spill runs out.
“As the BP oil spill monies come to an end in 2031, a ‘yes’ vote for amendment No. 1 is a proactive, first step in additional federally received revenue from offshore energy to pay for the improved resiliency of coastal communities where those workers live,” he said. “A vote of support is a vote to simply add all-of-the-above offshore energy revenues to the existing offshore oil and gas revenues to the fund that pays for our science-based coastal master plan.”
Orgeron’s bills had failed in the Legislature in the two previous years, when some lawmakers objected to reserving future revenue only for coastal areas. That remains an argument against the amendment since it would tie the state’s hands when it comes to budgeting the money.
But coastal advocacy organizations point out that Louisiana does not have many options to even partially replace the BP funds and note the enormity of the land loss crisis, as well as the need for strong hurricane protections.
The Coalition to Restore Coastal Louisiana, the nonprofit that has worked to address land loss issues for decades, said it “emphatically supports the constitutional amendment.”
“We need to implement the coastal master plan, but the Deepwater Horizon money is going to run out eventually,” Ethan Melancon, the group’s advocacy director, said in a statement. “Dedicating this revenue to the coastal trust fund establishes a recurring funding stream for our world-class coastal program.”
