
Louisiana should look ahead to when Deepwater Horizon oil spill fines will no longer refill coastal restoration coffers
Louisiana’s Coastal Protection and Restoration Authority has been building marshes, rebuilding barrier islands, restoring ridges and laying the foundation for diversions to reconnect the Mississippi River to coastal swamps and wetlands at an unprecedented pace the last decade.
The size and scale of the projects is setting records as well.
Gone are the days of piece-meal barrier island restorations in which half a beach got built one year with the hope of returning to finish the job five years later. The small-scale, $20-40 million, 80-150 acre marsh restoration projects have been replaced with 1,000-acre plus, $100-$300 million endeavors.
Two examples of the enlarged projects are the recently completed 1,700 acre, $100 million Spanish Pass Ridge and Marsh restoration just west of Venice and the ongoing 2,700 acre, $115 million Lake Borgne Marsh Creation Project in the Biloxi Marsh.
For those who believe coastal restoration stops and starts with rebuilding barrier islands, every barrier island west of the Mississippi River has been rebuilt or enhanced in some way in the last two decades, and work is being planned for the northern reaches of the Chandeleur Islands as well.
Oil spill fines
Coastal restoration dirt requires a lot of coastal restoration dollars. For about a dozen years those dollars have flowed Louisiana’s way from fines paid by BP and other companies responsible for the 2010 Deepwater Horizon oil spill. In all, Louisiana’s share of fines will total about $7 billion when the fines close in 2031.
Certainly, the 2010 Deepwater Horizon disaster wasn’t something Louisiana asked for or deserved. The painful memory of that spring, summer and fall of 2010 for the 11 families who lost loved ones due to BP’s negligence and those along the Gulf Coast who had their lives, culture, economies and health upended still burns 14 years later.
The challenge for those who led Louisiana through that tragedy was to ensure the penalties levied weren’t frittered away and pilfered but used to address the direct damage caused to coastal habitats, fish, wildlife and people from the spill as well as a century of marsh and barrier island loss. Largely, state coastal leaders, legislators and policy makers have met the challenge.
But, the question state coastal planners and protection and restoration advocates are starting to ask is, ‘where is the money going to come from when the oil spill fines run dry?’
Spill-fine built projects are going to need to be repaired and maintained. This summer, so far, has certainly shown hurricanes aren’t going to stop coming and the erosive effects of wind, waves, tides and subsidence are going to continue to rip at the coast. Dredge-built barrier island and marsh projects only realistically last about 20 years if they aren’t maintained.
Other coastal priorities like levees, floodgates, rock-armored shorelines, elevating homes, roads and other infrastructure often don’t qualify for oil spill penalties and must be funded through mineral revenues, state budget surpluses or federal appropriations.
The RISEE Act
Prior to the Deepwater Horizon spill filling coastal restoration coffers, Louisiana’s congressional delegation convinced their colleagues and President George W. Bush to pass the Gulf of Mexico Energy Security Act of 2006, which, for the first time, shared federal offshore oil and gas royalties with coastal states hosting that energy production.
Louisiana was still reeling from Hurricanes Katrina and Rita and the rest of the country finally appreciated the state needed a consistent source to pay for critical restoration and protection. Louisianans took the additional step of passing a constitutional amendment that forced the shared revenue to be used for coastal protection and restoration. In 2024, GOMESA sent more than $150 million to Louisiana for a host of restoration and protection priorities.
Congress has a chance to improve upon that investment by passing the RISEE Act this year. Short for “Reinvesting in America’s Shoreline Economies and Ecosystems,” RISEE would secure additional oil and gas revenues for coastal producing states and share a percentage of federal revenues from offshore wind lease sales and production as well.
Louisianans again have a chance to show the rest of the country their commitment to coastal fish and wildlife and communities by passing a constitutional amendment this November that commits the wind and other “alternative” energy revenues to the coast along with GOMESA funds.
Looking ahead
Unfortunately, oil spill penalties have allowed a few state lawmakers to assume Louisiana is flush with coastal funds for the foreseeable future. Reality is, the seven years between now and when those penalties run out will quickly pass without wholly addressing the ever-present need to restore and protect the coast.
Louisiana’s Coastal Master Plan is a 50-year, $50 billion plan. While the $50 billion seems unlikely, the 50 years are undoubtedly coming.
Congress passing the RISEE Act this year and Louisianans seizing upon the opportunity to protect the additional funds it provides by approving an amendment this November will allow coastal leaders and engineers to envision a 50-year plan, not just a seven-year plan.