This chart compares 2023 and 2024 revenue to potential existing and new revenue streams that may be available in 2032 when the money related to the BP oil spill becomes unavailable. (Coastal Defense and Restoration Authority)
The state expects to continue receiving some funding through the federal Coastal Wetlands Planning, Protection and Restoration Act, which is dedicated to restoration projects.
Since its inception in 1990, this law has resulted in the state receiving between $30 million and $80 million a year, with the money coming from a federal tax on fuels used by small engines such as outboard motors. The state has to raise 15% of its own funds under this program. No changes are expected to this law.
The state is also already dedicating a portion of its own mineral revenues to the Coastal Protection and Restoration Trust, but while this has resulted in up to $30 million a year being available for projects in the past, oil and gas production in the State Declined Only $12 million has been available in recent years.
Additionally, coastal projects have benefited from some of the government’s surplus dollars in 2007, 2008, 2009, 2018, 2020, 2021, 2022 and possibly again this year. But amounts were limited, too, ranging from $51 million in 2021 to an average of $263 million for 2007-2009.
Officials hope revenue could be generated from the potential of coastal restoration projects to capture and contain carbon emissions. Wetland grasses use carbon dioxide to grow, and when they die, the carbon in the organic matter becomes buried in the sediment and can remain in place until the land beneath the wetlands has eroded.
The problem is trying to monetize sequestration by selling loans to companies that have to prove they reduce carbon emissions, or by getting federal funding for the loans. The development of such a plan is likely several years away, although a consortium from northeastern states has already created a similar voluntary lending plan.
There is also potential revenue for the state from coastal communities filing 43 lawsuits against oil and gas companies that proponents of the lawsuits say could result in billions of dollars in damages or cleanup projects. The lawsuits aim to force oil companies to pay for damage their operations have caused to the coast over the years.
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