summary of tentative deepwater horizon oil spill settlement · deepwater horizon oil spill...
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Summary of Tentative Deepwater Horizon Oil Spill
Settlement
Doug Robison, PWS Mike Langton, GPC
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Total BPXP Settlement Component Dollars
CWA Penalties (RESTORE Act)1 $5,500,000,000 Natural Resource Damages1 $7,100,000,000 NRD Set Aside for Future Impacts2 $232,000,000 State Economic Claims3 $4,900,000,000 Local Economic Claims $1,000,000,000
Sub-Total $18,732,000,000 NRD Early Restoration Projects $1,000,000,000 Outstanding NRDA $350,000,000 Outstanding Response Costs $250,000,000
Total $20,332,000,000 1 Payable over 15 years 2 Payable at the end of the 15 year payout period 3 Payable over 18 years
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Total BPXP Settlement
$0
$1,000,000,000
$2,000,000,000
$3,000,000,000
$4,000,000,000
$5,000,000,000
$6,000,000,000
$7,000,000,000
$8,000,000,000
Clean WaterAct
NaturalResourceDamages
NRD SetAside
StateEconomic
Claims
LocalEconomic
Claims
NRD EarlyRestoration
Projects
OutstandingNRDA
OutstandingResponse
Costs
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RESTORE Act Funding by State*
State Dollars
Texas $430,000,000 Louisiana $787,000,000 Mississippi $582,000,000 Alabama $599,000,000 Florida $572,000,000
Total $2,970,000,000
* Pots 1, 3 and 5 for BPXP settlement only
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RESTORE Act Funding by State
$0
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
$600,000,000
$700,000,000
$800,000,000
$900,000,000
Texas Louisiana Mississippi Alabama Florida
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Note: BPXP settlement only Source: Environmental Law Institute
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NRD Funding by State
State Dollars
Texas $238,000,000 Louisiana $5,000,000,000 Mississippi $296,000,000 Alabama $296,000,000 Florida $680,000,000 Gulf Wide $350,000,000 Open Ocean $1,240,000,000
Total $8,100,000,000
Note: Includes $1 billion already paid for early restoration
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NRD Funding by State
$0
$1,000,000,000
$2,000,000,000
$3,000,000,000
$4,000,000,000
$5,000,000,000
$6,000,000,000
Texas Louisiana Mississippi Alabama Florida Gulf Wide Open Ocean
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Economic Settlements by State
State Dollars
Texas $150,000,000 Louisiana $1,000,000,000 Mississippi $750,000,000 Alabama $1,000,000,000 Florida $2,000,000,000
Total $4,900,000,000
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Economic Settlements by State
$0
$500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
$2,500,000,000
Texas Louisiana Mississippi Alabama Florida
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Triumph Gulf Coast, Inc.
• Non-profit corporation established within the Department of Economic Opportunity (DEO)
• Will oversee 75% of all funds recovered by the Florida attorney general for economic damages ($1.5B)
• Must establish, hold, invest and administer a trust account and grant program for the economic recovery, diversification and enhancement of the eight disproportionally affected counties
• Remaining 25% of recovered funds controlled by the DEO and Florida legislature
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Total Settlement for Florida
State Dollars
RA Direct Component (Pot 1) $364,000,000 RA Spill Impact Component (Pot 3) $286,000,000 RA Center of Excellence (Pot 5) $26,000,000 Natural Resource Damages $680,000,000 Economic Damages $2,000,000,000
Total $3,356,000,000
Note: Includes Transocean + BPXP settlements Source: Erin Deady
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Total Settlement for Florida
$0
$500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
$2,500,000,000
RA DirectComponent (Pot 1)
RA Spill ImpactComponent (Pot 3)
RA Center ofExcellence (Pot 5)
Natural ResourceDamages
Economic Damages
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Total Settlement for Florida
$0
$500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
$2,500,000,000
RA DirectComponent (Pot 1)
RA Spill ImpactComponent (Pot 3)
RA Center ofExcellence (Pot 5)
Natural ResourceDamages
Economic Damages
County Discretionary Use
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Florida Direct Component
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
Note: Includes Transocean + BPXP settlements Source: Erin Deady
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Total Settlement for Florida
$0
$500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
$2,500,000,000
RA DirectComponent (Pot 1)
RA Spill ImpactComponent (Pot 3)
RA Center ofExcellence (Pot 5)
Natural ResourceDamages
Economic Damages
Economic Recovery
Environmental Restoration
Scientific Research
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Total Settlement for Florida
$0
$500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
$2,500,000,000
RA DirectComponent (Pot 1)
RA Spill ImpactComponent (Pot 3)
RA Center ofExcellence (Pot 5)
Natural ResourceDamages
Economic Damages
It’s Up to You!
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Florida Spill Impact Component
State Dollars Percent
RA Direct Component (Pot 1) $364,000,000 11% RA Spill Impact Component (Pot 3) $286,000,000 8% RA Center of Excellence (Pot 5) $26,000,000 1% Natural Resource Damages $680,000,000 20% Economic Damages $2,000,000,000 60%
Total $3,356,000,000
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Maximizing Impact
• $286M basis + $14M interest = $300M
• Scenario 1 – $300M ÷ 23 counties = $13M/county – $13M ÷ 15 years = $866K county/year
• Scenario 2 – $300M ÷ 15 years = $20M/year over 15 years = Fifteen regionally significant projects ~$20M+
• Leveraging could substantially increase the impact of Pot 3 funds!
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Leveraging Funds Will Be Critical
• Leverage = the use of a small initial investment, credit, or borrowed funds to gain a high return in relation to one's investment
• Grant programs often require match or leverage or give additional points to projects that leverage the grantor agencies funds
• Leveraging encourages coordination and discourages duplication
• The Consortium has the opportunity to require leverage to get a return of $1B on its investment of $286M from the settlement
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Potential Sources of Leverage • Applicant’s own cash • Other Restore Act sources (Pots 1 and 2) • Other DWH settlement sources
– Triumph Gulf Coast = economic project – NNFWF = environmental projects – NRD = environmental and economic projects
• State/regional agency sources – FDEP
• 319 grants = stormwater • Amendment 1 = land acquisition
– Water Management Districts • SWIM Program funds • Local government cooperative funding
• Federal grant programs/initiatives • Foundation and corporate grant programs