CPRA Financing Corporation December 18, 2012 Deepwater Horizon Oil Spill.

CPRA Financing CorporationDecember 18, 2012

Deepwater Horizon Oil Spill

Louisiana’s 2012 Coastal Master Plan

Louisiana’s 2012 Coastal Master Plan

Our Objectives:

•Reduce economic losses from storm-based flooding

•Promote a sustainable coastal ecosystem by harnessing natural system processes

•Provide habitats suitable to support an array of commercial and recreational activities coast-wide

•Sustain Louisiana’s unique heritage and culture

•Provide a viable working coast to support industry

Funding Sources from the Deepwater Horizon Oil Spill

• Natural Resource Damage Assessment

• Civil and Administrative Clean Water Act Penalties (RESTORE Act)

• Criminal CWA Penalties

Natural Resource Damage Assessment

Objective:

To make the environment and public whole for injuries to natural resources and services resulting from an incident involving a discharge or substantial threat of discharge of oil.

Natural Resource Damage Assessment (NRDA)

Coastal Protection and Restoration Authority of Louisiana

Stages of NRDA

NRDA Early Restoration

$300M for state sponsored restoration projects selected by DOI and NOAA

$500M split equally among Gulf State Trustees

$200M split equally among Federal Trustees

“Louisiana Plan” Projects

Oyster Re-establishment Program (Louisiana Oyster Cultch Project)

Cheniere Ronquille Barrier Island Restoration

Lake Hermitage Additional Increment (NRDA Early Restoration Project)

Bay Side Segmented Breakwater at Grand Isle

Saltwater Hatchery West Grand Terre Beach Nourishment

Shell Island Restoration West Grand Terre Stabilization

Chandeleur Islands Restoration Barataria Basin Barrier Shoreline Restoration - Caminada Headland

Biloxi Marsh Shoreline Protection Caillou Lake

Grand Liard Marsh & Ridge Restoration*

Clean Water Act(RESTORE Act)

RESTORE Act

• Signed into law on June 29, 2012

• Directs civil and administrative Clean Water Act penalties into the Gulf Coast Ecosystem Restoration Trust Fund– Directs 80% of administrative and civil CWA penalties from

the DWH spill to the trust fund– The remaining 20% will be directed to the Oil Spill Liability

Trust Fund pursuant to current law

• The actual amount of the CWA penalties has not been resolved.

RESTORE Act Overview

Interstate Ecosystem Restoration

Council

Equal-Share State Allocations

Impact-Based State Allocations

30% (+ 50% of the interest)35%

2.5% (+25% of the interest)

Centers of Excellence Research Grant Program

2.5% (+25% of the interest)

Restoration Science, Observation, Monitoring, and Technology Program

2.5% (+25% of the interest)

Criminal Fines and Penalties

• $4 billion in criminal fines and penalties paid over 5 years

• BP agreed to plead guilty to 14 counts • 11 counts of felony manslaughter• 1 count felony obstruction of Congress• 1 misdemeanor violation of CWA• 1 misdemeanor violation of Migratory Bird Treaty Act

• 5 years of probation

• Cooperation in criminal investigations

Criminal Fines and Penalties

$4b Criminal Penalty

Questions?