Greater New Orleans, Inc. celebrates passage of Constitutional Amendment 1

Greater New Orleans, Inc. (GNO, Inc.) applauds the voters of Louisiana for passing Constitutional Amendment 1 in Tuesday's election, a transformative measure that will direct federal revenues from offshore renewable energy production to Louisiana’s Coastal Protection and Restoration Fund. This amendment marks a crucial step in fortifying the state’s efforts to safeguard and restore its receding coastlines.

The amendment, supported by an overwhelming majority of Louisiana voters, will ensure that all future federal revenues generated from alternative and renewable energy production in federal Gulf waters off the state’s coast — such as offshore wind, solar, and other future energy sources — will be dedicated to the Coastal Protection and Restoration Fund. This fund, established in 1989 and strengthened by voters in 2006, serves as the primary financial source for projects that mitigate flood risks and protect the coastline through levees, floodgates, wetlands creation, barrier island restoration, and more.

“This amendment represents an important commitment by Louisianans to simultaneously embrace an “all-of-the-above” energy strategy, combined with protections of communities and industries along the coast,” said Michael Hecht, President and CEO of Greater New Orleans, Inc. “By ensuring that federal revenues from renewable energy production are invested directly into coastal resilience, Louisiana is building a sustainable future that supports both the economy and environment.”

Louisiana’s Coastal Protection and Restoration Fund, which already receives revenues from the Gulf of Mexico Energy Security Act (GOMESA) and state oil and gas revenues, is poised to grow significantly through this amendment. GOMESA has served as a model of federal revenue sharing for energy-producing states, allocating a portion of Outer Continental Shelf (OCS) oil and gas revenues to coastal protection.

“Every type of energy production that occurs off our coast depends on healthy and resilient communities and ecosystems, so funds generated by that energy production should be reinvested in coastal protection and restoration – and 72 percent of Louisiana voters from north to south agree,” said Simone Maloz, Campaign Director of Restore the Mississippi River Delta. “With offshore alternative energy production still in the earliest stages, it will not be a silver bullet for Louisiana’s coastal funding cliff, but it is a positive step toward closing that funding gap and continuing our strong track record of investing in the protection and restoration of our coast for the benefit of the entire state and its economy.”

To date, federal revenues generated from offshore renewable energy have remained within the U.S. Treasury. However, Amendment 1 anticipates expansion of federal revenue sharing to include renewables, rectifying an imbalance and ensuring that Louisiana's coast benefits directly from the emerging offshore wind and renewable energy industries, which are anticipated to create thousands of new jobs and diversify the state’s energy sector. GNO, Inc.’s GNOwind Alliance, comprised of 250+ company and public sector members, has been instrumental in not only advocating for this extension of the revenue sharing model but also in advancing the local offshore wind industry in Louisiana.

"Recent election results have shown the vast majority of Louisiana citizens realize the importance of Louisiana's working coast and support the state's restoration efforts to improve its long-term sustainability.," said Representative Joseph Orgeron, District 54 of the Louisiana House of Representatives. "As we move to an 'All-Of-The-Above' offshore energy state, the available federal revenues will go to the fund our science-based coastal masterplan for the improved resiliency of coastal communities where those workers live."

Louisiana’s coast supports critical industries and communities, providing natural storm protection, vibrant ecosystems, and recreation for residents and visitors alike. With rising sea levels and intensifying storms, this dedicated revenue source is more essential than ever. By leveraging funds from all forms of offshore energy production, the amendment aligns state resilience efforts with emerging energy developments, creating a more balanced and sustainable approach to resource management.

GNO, Inc. remains committed to supporting the broader national efforts, such as the RISEE (Reinvesting in Shoreline Economies and Ecosystems) Act and BREEZE (Budgeting for Renewable Electrical Energy Zone Earnings) Act, which aim to increase revenue-sharing opportunities with Gulf Coast states and extend revenue sharing to include offshore wind. These initiatives, combined with this newly passed amendment, underscore Louisiana’s leadership in securing a resilient, prosperous coastal future for generations to come.