Louisiana voters will face a single Constitutional amendment on the November ballot. Many voters have a “vote no” default attitude regarding Constitutional amendments. It’s the easy vote because it effectively means “no change.”

Even the author of HB300 from the 2024 regular session, which became Act 408 and will now appear on the November ballot, has indicated he once had a similar mindset. Representative Joseph Orgeron (R 6/10) indicated he once felt the same way as many people. Still, with a more thorough understanding of the legislative process and the fact that it requires a 2/3 majority to get a constitutional amendment on the ballot, he has a different outlook.

To vote “yes” or “no – That is the question.

“Do you support an amendment to require that federal revenues received by the state generated from Outer Continental Shelf alternative or renewable energy production be deposited into the Coastal Protection and Restoration Fund?”

Our constitution provides that all “federal revenues that are received by the state generated from Outer Continental Shelf oil and gas activity… be deposited and credited by the treasurer to the Coastal Protection and Restoration fund.” The language comprising this section of the constitution stems from Act 69 of the First Extraordinary Session of 2005, which later received a favorable vote from the people. Then, in 2006, when the U.S. Congress enacted the Gulf of Mexico Energy Securities Act (GOMESA), the state of Louisiana, along with the coastal energy-producing states of Alabama, Mississippi, and Texas, became eligible to share in the revenues generated from energy production on the outer continental shelf.

Is it premature?

Some have accused Orgeron of putting the cart before the horse. Congress has not expanded GOMESA to include renewable and alternative energy production. However, this is the same scenario we saw in 2005 when the Louisiana legislature sought a constitutional amendment before the 2006 change in federal law.

Interestingly, this is not Orgeron’s first attempt at making this amendment. He tried to get similar legislation to a vote of the people in two prior legislative sessions, but each time, his bill died in the Senate Finance Committee, which was chaired by former Senator Bodi White (R 6/10).

How much money are we talking about?

We are talking about zero dollars because federal law has not changed to allow revenue sharing in this area. Additionally, there is just not much, if any, offshore wind energy production currently occurring.

One of the main objectives of the 2024 failed attempt at a Constitutional Convention was to remove provisions of the Constitution that protected certain funds, such as this section, and put them in statute. They could be modified there by a simple majority of both legislature chambers. The thought was that this would allow more flexibility in using funds to address ever-changing priorities and fiscal conditions. This Constitutional Amendment contradicts that thinking, but that doesn’t mean it is without merit.

Coastal restoration loss of revenue

By 2031, fine money collected from the 2010 BP Oil Spill will cease. Much of this money has been used to fund the coastal master plan. Since 2007, 157 projects have been completed as part of the Coastal Protection and Restoration Act. In just a few short years, this revenue loss could bring things to a screeching halt.

Coastal restoration is multifaceted and needs to be examined from several different perspectives. Aside from conservation and mitigating damage to fish, wildlife, and natural resources, other important factors include the economic impact on our nation’s energy security.

Louisiana ranks third in natural gas production and fifth in natural gas reserves. We have fifteen oil refineries, which account for nearly one-sixth of the total U.S. refining capacity. Coastal ports, such as Port Fourchon, are vital. In 2022, Louisiana shipped 63% of all U.S. Liquefied natural gas and 14% of coal exports.

It even impacts our insurance rates!

Insurance remains a hot topic for many people across our state. Aside from the litigious environment of our state’s sacred cow’s protected pastures and lax building codes, environmental risks are likely the next most significant factor in our high insurance rates. The devastating losses we experience from hurricanes and other weather-related events result in higher rates being passed on to consumers. However, coastal restoration projects could reduce our vulnerabilities and increase the effectiveness of existing hurricane protection levees. We should take careful note of this.

Not only did this Constitutional Amendment pass this year, but it did so with overwhelming support. The bill had unanimous support in the House, with 100 representatives voting in favor of it and receiving only three “nay” votes in the Senate. There are many things to consider regarding this constitutional amendment, so educate yourself before you go to the polls. Representative Orgeron encourages anyone interested in researching this topic further to visit the Mississippi River Delta Coalition website.