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

2. 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)

3. 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.

4. Federal and State Allowable Uses for GOMESA Funds
Federal Law
State Constitution Article VII. Section 10.2(E) and RS 49:
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.

5. 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

6. GOMESA Phases I and II
Revenue sharing with Gulf producing states and their eligible political subdivisions (TX, LA, MS, AL)
Phase I ( ) Phase II ( )

7. 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)

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

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

10. 2019 Parish GOMESA Shares

11. 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)

12. Act 405 (2017 Regular Session)
49: (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

13. CPRA Annual Plan FY 2020

14. 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.

15. GOMESA Compliance Requirements

16. .

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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.

23. 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: (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.

24. 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