President Signs into Law Domenici-Landrieu Gulf Coast Energy Plan
Landrieu attends White House signing ceremony on the 203rd anniversary of the Louisiana Purchase.
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.
For the latest estimates of the revenues projected for Louisiana under the bill, click here.
