FUNDING SOURCES

The Coastal Protection and Restoration Fund

For decades, Louisiana has constitutionally dedicated revenues from state mineral leases and other sources to the Wetlands Conservation and Restoration Fund to pay for the ongoing and expensive work of coastal restoration. In a special session convened after the hurricanes of 2005, the Louisiana Legislature passed an amendment to the state’s constitution to include hurricane protection as an additional authorized use of these funds. Also, the amendment dedicates any revenues shared by the federal government from oil and gas production on the outer continental shelf (OCS) for the sole purpose “of coastal wetlands conservation, coastal restoration, hurricane protection and infrastructure directly impacted by coastal wetland losses.” This amendment was passed as Act 69 of the 1st Extraordinary Session of 2005 and was overwhelmingly ratified by the voters of Louisiana on Sept. 30, 2006.

The dedication of funding streams to the sole purpose of coastal protection and restoration reflects that Louisianans understand the urgency of restoring and protecting the coast. The funds dedicated to this coastal protection trust fund ensure protection from the whims of politics when dealing with annual budgeting and appropriations. The trust fund is a commitment to the long term work of coastal protection and restoration.  

The Coastal Protection and Restoration Authority has the right and the authority to approve all requests for programs and projects pertaining to hurricane protection and coastal conservation and restoration if the funds for such requests are to be appropriated from the Coastal Protection and Restoration Trust. These requests are submitted in each year’s annual coastal plan for approval by the Legislature. To read Act 69 of the 1st Extraordinary Session of 2005, please click the following link:

Act 69 of the 2005 1st Extraordinary Session

From Act 69:
To change the name from the Wetlands Conservation and Restoration Fund to the Coastal Protection and Restoration Fund; to provide that the eligible federal revenues received by the state generated from Outer Continental Shelf oil and gas activity shall be credited to the Coastal Protection and Restoration Fund and used only for purposes of coastal wetlands conservation, coastal restoration, hurricane protection, and infrastructure directly impacted by coastal wetland losses. (AMENDS Article VII, Section 10(D)(2)(e), 10.2, and 10.5(B) and (C))

Funds deposited into the Coastal Protection and Restoration Fund will come from but are not limited to:

Federal Funding Sources

The sharing of Outer Continental Shelf (OCS) federal oil and gas revenue as prescribed in the Gulf of Mexico Energy Security Act of 2006 (Public Law 109-432 or H.R. 6111) which was passed by the 109th Congress and signed into law by President George W. Bush. To read the Gulf of Mexico Energy Security Act of 2006 please click the following link: Gulf of Mexico Energy Security Act of 2006.pdf

The Gulf of Mexico Energy Security Act of 2006 allows the sharing of 37.5 percent of revenues generated from royalties from the production of oil and gas off the OCS with the four Gulf Coast states that host production infrastructure and allow drilling off their coasts. Those states are: Louisiana, Alabama, Mississippi and Texas. Louisiana will receive the bulk of the money since it hosts the most oil and gas producing activities of the four states.

CWPPRA and Coastal Impact Assistance Program

Federal sources of revenue for coastal restoration projects will also come from the Coastal Impact Assistance Program (CIAP) and the Coastal Wetlands Planning, Protection and Restoration Act (CWPPRA). For more information about CIAP, please click the following link: http://dnr.louisiana.gov/crm/ciap/ciap.asp.

For more information about CWPPRA, please click the following link: http://www.lacoast.gov/


State Funding Sources

Act 854 of the 2006 Louisiana Regular Legislative Session is an amendment to the Louisiana Constitution that was ratified by voters in September 2006. It requires 20 percent of the proceeds from the securitization of the Louisiana tobacco settlement be deposited into the Coastal Protection and Restoration Fund with a portion to be used for barrier island stabilization and preservation.

The fund may also receive money from any budget excesses that the Governor and State Legislature choose to dedicate to coastal restoration and hurricane protection. Money from the trust fund can be used only for coastal restoration and protection projects.