Funding Coastal Protection & Restoration

Transcription

1 Funding Coastal Protection & Restoration Chip Kline Office of the Governor- Coastal committed to our coast committed to our coast

2 Funding Stream State Mineral Revenues GOMESA NRDA RESTORE Pot 1 Summary 15 Year Upper Limit $375 Million $2,100 Million $5,000 Million $260 Million RESTORE Pot 2 $52 Million (+?) RESTORE Pot 3 NFWF CWPPRA $551 Million $1,272 Million $1,125 Million Total $10.7 Billion (+) Funding CPRA is a highly complex business CPRA has multiple revenue streams with significant compliance requirements Oil spill funding is staggered over time Sufficient cash flow capability is critical for timely project delivery

3 Annual Budget

4 Recent Annual Plan Expenditure Totals Fiscal Year FY 2018 (draft) FY 2017 FY 2016 FY 2015 Total Budget $663.3 Million $735.6 Million $883.5 Million $725.5 Million *Official Revenue Forecast Estimate

5 CPRA Recurring Revenues

6 Recurring Funding Sources 1. State Mineral Revenues 2. Gulf of Mexico Energy Security Act (GOMESA)

7 State Mineral Revenue Constitutional/Statutory dedicated revenue derived from royalties, bonuses, and severance taxes (Art. VII, Section 10.2(B)(2)) and R.S. 49: D(1) The only dedicated recurring state revenue to the Coastal Program Revenue Collection History and Projections FY $33,092,429 FY $28,100,000 FY $30,805,054 FY $30,859,351 FY $29,462,094 FY $25,000,000 FY $15,508,000 FY 16-17* $15,600,000 FY 17-18* $16,900,000 Official State Revenue Forecast Estimate 8

8 Primary Uses of the Mineral Revenue State Match for CWPPRA projects 15% State 85% Federal Various program expenditures Adaptive Management Master Plan Contingency issues Interagency Transfers Cash Flow for grant expenditures Operational Expenses 9

9 GOMESA (Gulf of Mexico Energy Security Act) Revenue sharing arrangement for certain Outer Continental Shelf (OCS) oil and gas revenues for the Gulf Coast producing states of AL, LA, MS, and TX and their political subdivisions Qualifying revenues distribution 50% to the U.S. Treasury 12.5% to the Land and Water Conservation Fund 30% to the Gulf producing states 7.5% to the eligible coastal political subdivisions (according to a formula) 10

10 GOMESA Phase I - covers fiscal years 2007 through 2016 Limited revenue sharing Phase II will begin in fiscal year 2017 Revenue sharing expands across the entire Gulf of Mexico OCS Revenue sharing cap of $500 million per year for the four Gulf producing States and their Coastal Political Subdivisions through 2055

11 GOMESA PHASE II Timing of dollars: State Fiscal Year 2019 Total estimated maximum amount available to the States and their CPS s is $375M distributed as follows* Alabama - $49 M Louisiana - $145-$176 M Mississippi $52 M Texas - $98 M *This estimate is based on the $500,000,000 cap being met each year, but revenue disbursement is ultimately dependent upon production and the price of oil.

12 GOMESA PHASE II 80% of LA State Share to CPRA Only regularly recurring federal revenue for Coastal Program LA Const. Article 7, Section 10.2(E) Voters placed additional restrictions on federal law GOMESA funds deposited into the Trust Fund Only for the purpose of coastal protection, including conservation, coastal restoration, hurricane protection, and infrastructure directly impacted by coastal wetland losses Not more than 10% may be used for the purposes of infrastructure directly impacted by coastal wetlands losses Not more than 7% may be used for administrative costs

13 Other Funding Streams

14 Funding Sources National Fish and Wildlife Foundation (NFWF) Natural Resources Damages (NRDA) Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act (RESTORE) Coastal Wetlands Planning, Protection and Restoration Act (CWPPRA) Other

15 NRDA Restoration Planning Funds LA receives $5 billion for Deepwater Horizon (DWH) NRDA restoration activities - Pursuant to the Oil Pollution Act, these funds must be used to restore environmental damages caused by DWH LA receives funds after: - LA Trustee Implementation Group (TIG) approves projects and approves final restoration plan following public review - Final restoration plan and withdrawal request are submitted to the Department of Interior (DOI) Settlement funds to be paid by BP on or before April 4 th of each year beginning in 2017 through 2031

16 Five Restoration Categories Replenish and Protect Coastal and Marine Resources $343,311,600 7% Monitoring, Adaptive Management, and Administrative Oversight $258,000,000 5% Restore and Conserve Habitat $4,318,688,400 86% Restore Water Quality $20,000,000 1% Provide and Enhance Recreational Opportunities $60,000,000 1%

17 RESTORE Act Allocations Total CWA Penalties Transocean ($1B), Anadarko ($159.5M), BP ($5.5B) Clean Water Act Penalties - $6.7B 20% Oil Spill Liability Trust Fund - ~$1.3B 80% Gulf Coast Restoration Trust Fund - ~$5.36B (plus interest payments) over 15 years (1) Direct Component 35% Equally distributed to 5 Gulf States (AL, FL, LA, MS, TX) ~$1.87B ~$372M LA ~$260.4M CPRA ~$111.6M Parish (2) Council- Selected Restoration 30%* Gulf Coast Ecosystem Restoration Council for ecosystem restoration ~$1.6B* $52M LA for Initial FPL ($38.3M CPRA & $13.8M Federal) (3) Spill Impact Component 30% Impact based distribution to 5 Gulf States (AL, FL, LA, MS, TX) ~$1.6B 34.59% or ~$551.5M CPRA (4) NOAA Science Program 2.5%* Gulf Coast Ecosystem Restoration Science, Observation, Monitoring, and Technology Program ~$133.7M* (5) Centers of Excellence 2.5%* Centers of Excellence ~$133.7M* ~$26.6M CPRA for The Water Institute of the Gulf *Supplemented by interest generated by the Trust Fund (50% 18 to Gulf Coast Ecosystem Restoration Council, 25% to Science Program, 25% to Centers of Excellence)

18 Bucket 1 Direct Component 35% Equally distributed to 5 Gulf States (AL, FL, LA, MS, TX) ~$1.87B ~$374M LA ~$260.4M CPRA ~$111M Parish Over 15 years Requires Treasury-accepted Multiyear Implementation Plan (MYIP) CPRA Board has approved the Calcasieu Ship Channel Salinity Control Measures project for Bucket 1 funds Total: ~$260.4M over 15 years U.S. Treasury approved the plan 3/2017.

19 Bucket 3 Spill Impact Component 30% Impact based distribution to 5 Gulf States (AL, FL, LA, MS, TX) ~$1.6B Total CPRA to receive 34.59% or ~$551.5M Over 15 years Requires Council-approved State Expenditure Plan (SEP) CPRA Board has approved the following for Bucket 3 funds over 15 years: Houma Navigation Canal Lock Complex: ~$366M Parish Matching Program: up to ~$100M Adaptive Management: ~$60.9M Contingency Funds: ~$24.6M 25% Infrastructure Cap on Bucket 3 Exception: If plan certifies that (i) projects address ecosystem restoration needs, and (ii) additional investment is required to mitigate DWH oil spill impacts to ecosystem or economy. RESTORE Council approved the plan 3/2017

20 NFWF GEBF Criminal Agreement National Fish & Wildlife Foundation (NFWF) Gulf Environmental Benefit Fund (GEBF): $1.272B for Louisiana Restrictions: Barrier island & river diversion projects Funded efforts must be necessary and appropriate to implement barrier island & diversion projects Cannot be used for items or activities that the applicant is already funded to perform as part of its existing sovereign functions Cannot be used to support political advocacy, fundraising, lobbying, litigation

21 Coastal Wetlands Planning Protection and Restoration Act 100,000 acres built and 355,600+ acres improved since 1990 $30-$80 million annually to projects in LA 153 active projects 108 completed 17 under construction 23 engineering and design 85/15 Federal/State cost share 22

22 Funding Stream State Mineral Revenues GOMESA NRDA RESTORE Pot 1 Summary 15 Year Upper Limit $375 Million $2,100 Million $5,000 Million $260 Million RESTORE Pot 2 $52 Million (+?) RESTORE Pot 3 NFWF CWPPRA $551 Million $1,272 Million $1,125 Million Total $10.7 Billion (+) Funding CPRA is a highly complex business CPRA has multiple revenue streams with significant compliance requirements Oil spill funding is staggered over time Sufficient cash flow capability is critical for timely project delivery