Editorial: ‘Coastal cliff’ demands coordinated response

Last minute push before vote on Scalise's energy bill
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For a state whose terrain is flat, Louisiana has encountered an extraordinary number of “cliffs” in recent decades, at least metaphorically. The term nonetheless applies to a handful of dramatic yet entirely foreseeable losses of significant state revenue sources.

The latest example is the “coastal cliff” — the day in 2032 when a fire hose of funding for Louisiana’s hurricane protection and coastal restoration projects suddenly slows to a trickle. In real money terms, revenue that currently averages more than $1 billion a year will drop to $200 million or less.

Much of the falloff relates to funds flowing from the 2010 BP Deepwater Horizon oil spill. Several legal settlements in the wake of that tragedy produced a torrent of funding for coastal and flood risk reduction projects in the state’s Coastal Master Plan. That money will run dry by 2032, and the state has not yet found a way to fill a massive fiscal hole that some officials fear could grow to $71 billion.

Louisiana currently relies on 23 different revenue sources to fund coastal restoration and flood risk reduction projects, but the biggest chunks come from BP funds.

The next biggest — and more permanent — supply of money for coastal projects comes from the federal Gulf of Mexico Energy Security Act, known as GOMESA. Under GOMESA, Louisiana gets 37.5% of revenue derived from certain offshore oil and gas projects in federal waters off our state’s coast. That’s far less than the 50% other states receive for onshore oil and gas development on federal lands — and our share is capped by law at about $132 million a year.

House Majority Leader Steve Scalise, R-Jefferson, offers hope via his proposed Lower Energy Costs Act. Scalise’s bill, which the House has passed, would increase Louisiana’s GOMESA share to 50% and extend revenue sharing to offshore wind energy in federal waters. State officials also hope Congress will remove GOMESA’s $132 million-a-year revenue cap; they say doing so could increase Louisiana’s annual share to $285 million.

While Scalise’s bill reflects a reasonable “ask” on Louisiana’s part, political realities strongly suggest his measure is DOA in the Senate, at least in its present form. The prospects of a compromise bill clearing both the Senate and the House with the GOMESA revisions intact are uncertain.

That’s unfortunate, because the argument for a significant federal investment in Louisiana’s coast is compelling. The Mississippi River levee system has protected massive federal investments in the river and its economy, but it also has deprived coastal wetlands of vitally needed, land-building sediment.

Major problems that arise from federal decisions justify — demand, even — a major federal response. At the same time, we must bear part of the burden ourselves.

The state already dedicates a share of its mineral revenues to a trust fund for coastal protection and restoration and it expects to continue receiving funds through the federal Coastal Wetlands Planning, Protection and Restoration Act, which is dedicated to restoration projects. Looking ahead, state Rep. Joseph Orgeron, R-LaPlace, has proposed a state constitutional amendment to require money from offshore wind development to go into the state’s coastal trust fund.

Meanwhile, the state and coastal parishes hope to derive billions via parish lawsuits against oil and gas companies. If that money materializes, it should be spent on coastal restoration and preservation, not pork barrel projects.

The coastal cliff affects all of Louisiana. A revitalized coast weakens incoming storms and protects inland communities — including those located many miles from the coastline.

In the long run, strengthening Louisiana’s coast will require a coordinated, multifaceted effort — and the same level of detailed strategizing that went into the Master Plan itself.

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About Mary Weyand 15924 Articles
Mary founded Scoop Tour with an aim to bring relevant and unaltered news to the general public with a specific view point for each story catered by the team. She is a proficient journalist who holds a reputable portfolio with proficiency in content analysis and research. With ample knowledge about the Automobile industry, she also contributes her knowledge for the Automobile section of the website.

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