Funds from fiscal year 2023 energy revenues have been allocated to Alabama, Louisiana, Mississippi, Texas and their coastal political subdivisions. These funds will enable the recipients to undertake projects related to hurricane protection, coastal restoration, and conservation.
According to a news release from the U.S. Department of the Interior (DOI) on March 29, Alabama along with Baldwin and Mobile counties received a combined total of $49,830,178.25. Louisiana and its 19 parishes were granted $156,329,442.65. Mississippi and Hancock, Harrison, and Jackson counties received $51,915,113.45. Texas and 18 of its counties were allocated $95,550,265.70.
This distribution is in accordance with the Gulf of Mexico Energy Security Act (GOMESA) of 2006. The Act stipulates that revenue from oil and gas leases within the Gulf producing states and the Land and Water Conservation Fund should be directed towards coastal restoration projects. This information is available on the Bureau of Ocean Energy Management's (BOEM) page about the act. Since fiscal year 2007, 37.5% of qualified revenues have been shared among these four states and their CPS’s while twelve-and-a-half percent of qualified OCS revenue goes to the Land and Water Conservation Fund. In 2017 a revenue sharing cap of $500 million was implemented for fiscal years 2016-2055; however this cap was increased to $650 million in FY20 and FY21.
The Land and Water Conservation Fund (LWCF), which receives a portion of funds from GOMESA Act distributions has been operational since 1965 with a mission to protect natural areas, water resources and cultural heritage sites across America. According to DOI’s web page focusing on LWCF, it has funded over $5.2 billion in support of more than 45,000 projects in counties across the United States. The LWCF is also partly designed to support increased public access to national parks, forests, wildlife refuges and recreation areas. State governments receive matching grants from the fund to acquire and develop public parks and outdoor recreation sites.
This year marks the second consecutive year where disbursements to states and their coastal political subdivisions have reached the maximum allowable amount, thanks to record high oil and gas production, as stated in the DOI news release.
