The Gulf Coast Post Katrina: Business As Usual? Remarks by Leslie Carothers, President Environmental Law Institute Ecosystems, Infrastructure and the Environment Conference of ABA Standing Committee On Environmental Law June 9, 2006

The Gulf Coast Environment Productive and diverse coastal ecosystem altered by navigation/shipping flood control oil and gas extraction real estate development Huge and continuing losses of land and wetlands Old and new development in flood-prone areas New Orleans sinking while sea level rising

Coastal Ecosystem Impacts Channelization of Mississippi River for navigation greatly reduced historic silt deposition 10,000 miles of delta canals for oil and gas development, extraction, and pipelines Flood control levees accelerated development in areas behind them

Louisiana lost 1,900 square miles of wetlands between Annual loss 25 square miles despite better control under wetland protection permitting 80 square miles lost during Katrina Wetland Degradation and Loss

Development in Flood Zones Low-lying areas of New Orleans home to poorer and minority communities Coastal areas settled with higher end residential and resort development Two thirds of homes flooded were outside established flood zones

The Path Forward Goal: Restore Gulf Coast community on a more resilient and sustainable basis working with natural systems Means: Better governmental decisionmaking More rational risk management and insurance system Private sector leadership and support

Governmental Decisionmaking “It will not be feasible to provide an assured level of protection for this larger metropolitan region without first making significant changes in the organizational structure and interactions of the national and local governmental bodies and agencies jointly responsible for this effort.” Seed Report funded by University of California, Berkeley, and National Science Foundation (2006)

Governmental Decisionmaking (2) “We treated the whole water resources effort more like a re-election machine than a serious program, run by local interests, lobbyists, congressmen and ex-congressmen who are glued to the status quo. We have a flood control program, a navigation program, a permitting program, a coastal management program, a flood insurance program, a coastal restoration program – just for openers – and they do not talk to each other.” Professor Oliver Houck, Tulane University Law School

A New Institution to Guide Louisiana Coastal Restoration? Essential players: Executive Office of President, Army Corps; Depts. Of Agriculture, Commerce and Interior; EPA, Congressional representatives; governor; mayor(s); community leaders; business leaders; scientific experts Essential roles: setting goals, project priorities for funding, capacity to implement construction and land use decisions, all with public engagement

Possible Models to Build On Louisiana Task Force on Restoration under federal CWPPRA (limited scope, funding and authority) Louisiana Reconstruction Authority (lacks independent funding and clear authority over parishes) TVA “Light”? (could align federal and state authorities but old style lacked local and stakeholder involvement)

Rational Risk Management: The 3R’s Realism about risks, costs, and who pays Redundancy in control of flood hazards (natural and structural) Resilience in community development

Flood Insurance Reform Update flood maps Strengthen local flood zone management and building code enforcement Mandate insurance in flood zones Determine real risk-based premiums Make subsidies explicit Reduce or eliminate second home and business subsidies Current federal system does too little to reduce damage or cover repair costs. Needed changes include:

Need for Private Sector Leadership and Support Oil and gas industry vital to state and national economy (29% oil and 27% natural gas) but estimated 50% of wetland loss caused by oil and gas operations Major investment in levees to protect real estate development has contributed to wetland and storm losses

Oil and Gas Industry Opportunity to Support Wetlands Restoration Adopt best available practices for facility development and service Contribute to restoration through in kind services (e.g. backfilling canals) and funding - Divert larger share of royalties to state? - Surcharge on royalties payable to state? Energy users (all of us) should pay

Real Estate Industry Opportunity to Support Sustainable Redevelopment Support realistic flood maps and building elevation requirements Advocate incentives for green rebuilding including energy efficiency and mold resistant materials Seek subsidies for better development and not lower standards for cheaper construction Elevated house in the Bayou Liberty Area

Doing the same thing over and over again and expecting different results. Albert Einstein Insanity: