GOMESA and RESTORE Funding ALBL Workshop Chris Barnes CPRA May 2, 2019 committed to our coast committed to our coast

Gulf of Mexico Energy Security Act of 2006 (GOMESA) Gulf of Mexico Energy and Security Act of 2006 Lifts the congressional moratorium on oil and gas leasing and development in a portion of the eastern and central Gulf of Mexico Bars oil and gas leases within 125 miles of Florida coastline in eastern planning area and within 100 miles in central planning area Qualified Outer Continental Shelf (OCS) revenue sharing with Gulf producing states and their eligible political subdivisions (TX, LA, MS, AL)

GOMESA OCS Qualified Revenues Bonus Bids Paid when a lease is acquired. Rents (non-producing leases) Paid after a lease is awarded. Royalties (Producing leases) Paid once a lease starts producing.

Federal and State Allowable Uses for GOMESA Funds Federal Law State Constitution Article VII. Section 10.2(E) and RS 49:214.5.4 Projects and activities for the purposes of Coastal Protection including: Conservation Coastal Restoration Hurricane Protection Infrastructure directly affected by coastal wetland losses Mitigation of damage to fish, wildlife or natural resources Implementation of a federally-approved conservation management plan Mitigation of effects from OCS activities through onshore infrastructure projects Associated planning and administrative expenses (not more than 3%) Integrated coastal protection, including but not limited to: Coastal wetlands conservation Coastal restoration Hurricane protection, or Infrastructure directly impacted by coastal wetland losses (may not exceed 10% of the federal revenues received in each FY) At least $200,000 but no more than 7% of federal revenues received for administrative costs or fees.

GOMESA and LA’s Coastal Program Cash Flow: Crucial revenue stream for LA coastal program Flexible revenue stream cash flow large projects, ability to operate an integrated coastal program (restoration/protection/resilience) Leveraging of other revenue streams Hurricane Protection: Can fund protection projects (levees, flood gates, etc.), that are ineligible for Deepwater Horizon funding Resilience: Can fund proactive flood risk and resilience activities such as home elevation, flood proofing businesses, or voluntary acquisitions, actions that currently have no dedicated funding

GOMESA Phases I and II Revenue sharing with Gulf producing states and their eligible political subdivisions (TX, LA, MS, AL) Phase I (2006-2016) Phase II (2017-2055)

General Formula for Disbursements 50% of qualified revenues placed into special Treasury account (capped at $500 million until 2055) 12.5% goes to the Land and Water Conservation Fund (max of $125 million) 37.5% to TX, LA, MS, and AL and their eligible coastal political subdivisions according to a formula (max of $375 million)

GOMESA 2019 Disbursements Louisiana Share 44.07% Louisiana Total $: $94.7 Million CPRA Share: $75.8 Million All Parishes: $18.9 Million

GOMESA Maximum Disbursements (Capped) Louisiana Share 44.07% Louisiana Max Total $: $165 Million CPRA Share: $132 Million All Parishes: $33 Million

2019 Parish GOMESA Shares

GOMESA Forecast 4% of Gulf production qualifies for GOMESA revenue sharing Share will increase over time as old wells slow down and new leases begin producing Hit Cap between 2021 and 2027 (early in range most likely)

Act 405 (2017 Regular Session) 49:214.5.4(E)(5)(a) - Requires share of GOMESA revenues be dedicated to hurricane protection projects, including operation and maintenance, “included in or consistent with the master plan” FY22-FY24 minimum of 40% FY25-27 minimum of 45% FY28 and beyond minimum of 50% Only applies when total revenues are $100 M or more

CPRA Annual Plan FY 2020

Other Issues Parishes that have bonded (or are planning to): Lafourche, Cameron, Livingston, Terrebonne, Jefferson, St. Mary 2020 Census – may alter parish GOMESA shares. GOMESA Cap – the $500M cap is a hard number not indexed to inflation.

GOMESA Compliance Requirements

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RESTORE Act Allocation Total anticipated funds –Transocean, BP and Anadarko over 15 years Clean Water Act Penalties - $6.6B 20% Oil Spill Liability Trust Fund - ~$1.3B 80% Gulf Coast Restoration Trust Fund - ~$5.3B (plus interest payments) 35% Equally distributed to 5 Gulf States (AL, FL, LA, MS, TX) 30%* Gulf Coast Ecosystem Restoration Council for ecosystem restoration 30% Impact based distribution to 5 Gulf States (AL, FL, LA, MS, TX) 2.5%* Gulf Coast Ecosystem Restoration Science, Observation, Monitoring, and Technology Program 2.5%* Centers of Excellence *Supplemented by interest generated by the Trust Fund (50% to Gulf Coast Ecosystem Restoration Council, 25% to Science Program, 25% to Centers of Excellence) ~$1.86B ~$372M LA ~$260.4M CPRA ~$111.6M Parish ~$1.6B ~$52M LA for Initial FPL (~$38.3M CPRA & ~$13.8M Federal) ~$1.6B 34.59% or ~$551.5M CPRA ~$133.7M ~$133.7M ~$26.6M CPRA for The Water Institute of the Gulf

Bucket 1 – Direct Component 35% 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. Equally distributed to 5 Gulf States (AL, FL, LA, MS, TX) ~$1.87B ~$374M LA ~$260.4M CPRA ~$111M Parish Over 15 years

RESTORE Direct Component (Bucket 1) Parish Shares RESTORE B1 % 15 year total (ending 2031) Plaquemines 18.00% $20,087,714.51 Jefferson 11.95% $13,339,472.92 Terrebonne 9.91% $11,062,551.64 St. Bernard 9.67% $10,788,709.65 Lafourche 7.87% $8,779,970.72 Orleans 7.13% $7,955,581.70 St. Tammany 5.53% $6,172,047.00 Calcasieu 5.07% $5,658,749.02 Tangipahoa 3.40% $3,798,110.64 Livingston 3.33% $3,713,161.75 Vermilion 3.03% $3,378,824.40 Iberia 2.55% $2,845,963.40 Ascension 2.43% $2,707,513.78 Cameron 2.10% $2,344,640.52 St. Martin 2.07% $2,308,861.62 St. Mary 1.80% $2,011,263.27 St. Charles 1.36% $1,514,581.93 St. John the Baptist 1.12% $1,248,955.87 Assumption 0.93% $1,038,178.68 St. James 0.76% $843,685.20 Total 100% 111,598,538.22 RESTORE Direct Component (Bucket 1) Parish Shares

Bucket 3 – Spill Impact Component 30% 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 RESTORE Council approved the plan 3/2017 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

First Amended LA RESTORE Plan Spill Impact Component Identifies how all of LA’s Direct and Spill Impact Component funds will be used, including those to be paid over a 15 year period. Approved by CPRA Board on January 18, 2017. Approved by RESTORE Council and U.S. Dep’t of Treasury in March 2017. Project Name Direct Component Spill Impact Component Total Calcasieu Ship Channel Salinity Control Measures $260.4 million $0   Houma Navigation Canal Lock Complex $366 million Adaptive Management $60.9 million Parish Matching $100 million Contingency Funds - $ 24.6 million Estimated Totals $551.5 million $811.9M

Parish Matching Program Up to $100M over 15 year period. Initial solicitation of up to $20M opened on July 3, 2017 Minimum Project Standards Meet the requirements of the RESTORE Act; Be consistent with the objectives of the State’s Coastal Master Plan; and Be included for funding with Direct Component funds in the parish’s RESTORE Act Multiyear Implementation Plan. Detailed requirements were provided in the initial solicitation. CPRA Board approved the draft list of projects on December 13, 2017.

Criteria for evaluating proposals The following criteria will be used by CPRA to prioritize proposed activities for matching funds under the RESTORE Act: (1) The funds available to CPRA for matching; (2) Consistency with the objectives of the current Coastal Master Plan and the provisions of La. R.S. 49:214.5.4(I); (3) The relative merits of the proposed activity based on the information contained in the proposal; (4) Synergy with other conservation/restoration efforts; (5) Proposed constructability; and (6) Funds made available by the Parish for the proposed activity.

Bucket 2 – Council Selected Restoration 30% Competitive awards between 5 states and 6 federal agencies Restoration Only Decisions made on “Funded Priorities Lists” that require 3 State votes and the vote of the federal chair Gulf Coast Ecosystem Restoration Council for ecosystem restoration ~$1.6B $1.4B unallocated Over 15 years