Good News for the Gulf: Why the Largest Environmental Settlement in U.S. History Won鈥檛 Get Wasted

Six years after the BP oil spill, a new plan outlines how billions of dollars dedicated to Gulf Coast restoration will go where it鈥檚 needed most.

Last week, the Gulf Coast Ecosystem Restoration Council, the body charged with overseeing the expenditure of some $3 billion in civil penalties resulting from the 2010 BP oil spill, released laying out how that money will be put to use for ecological restoration efforts in the Gulf. The plan is, on its face, not an exciting document: Running roughly 30 pages, it doesn鈥檛 describe any actual restoration projects to be undertaken. Instead, it painstakingly describes the process and criteria that will guide the selection of such projects, including lengthy definitions for words like 鈥減rogram鈥 (鈥渁 suite of intrinsically-linked restoration and/or conservation activities that must be implemented together in order to achieve the desired outcome鈥).

But for conservationists, the new plan from the so-called RESTORE Council represents an exhilarating step forward, the聽culmination of a years-long effort to ensure that the funds from the biggest U.S.聽environmental settlement in history (in total, BP will pay the federal and Gulf state governments more than $20 billion, ) go where they鈥檙e most needed. 鈥淲e see this as the blueprint for what is going to be the most fully funded restoration program in United States history,鈥 says David Muth, the director of the Gulf Restoration Program of the National Wildlife Federation, which is part of a coalition of environmental groups, including the 探花精选 and Environmental Defense Fund, that helped guide the council as it hammered out the plan聽

In fact, it鈥檚 the very language that makes the new Comprehensive Plan so boring to the average reader that also makes the plan a success: It spells out in explicit terms how the council, which is composed of members from the five Gulf states and six federal agencies, will seek to develop the kind of ambitious, coordinated, long-term ecosystem restoration projects that are desperately needed in the Gulf region.

Putting funding toward its best use might sound like a given, but nothing is easy when it comes governmental spending, much less when there鈥檚 an unprecedented sum of money up for grabs. 鈥淲hen you鈥檙e dealing with a bureaucratic maze as complicated as federal funding going to five separate states, with all the different stakeholders involved, that鈥檚 a recipe for a quagmire,鈥 says David Yarnold, president and CEO of the 探花精选. And for a while, some conservationists worried that a quagmire鈥攁nd the loss of a historic opportunity for ecological recovery in the Gulf鈥攚as exactly what might happen.聽

A Region in Peril 聽

When the Deepwater Horizon rig blew in April of 2010, it immediately plunged the Gulf into an environmental nightmare. Over the course of three months, 200 million gallons of oil poured into the Gulf of Mexico, coating tens of thousands of miles of sea and shoreline and poisoning anything in its path. The devastation that followed the spill was almost unfathomable鈥攍istless, dying coated in crude, washed up on beaches, .

But as catastrophic as the BP spill was (and continues to be), the Gulf鈥檚 problems didn鈥檛 begin there. Even before 2010, the natural ecological structure of the region had been fundamentally disrupted by a century of human development. , for example, the construction of levees, shipping channels, and oil and gas infrastructure drastically altered the delta鈥檚 natural hydrology, leading to a dramatic that provide crucial habitat for hundreds of species of migratory birds. As sea levels continue to rise, further eroding the coastline鈥檚 protective barrier islands, even more habitat will be lost.聽

All this has taken a heavy toll on Gulf ecosystems. 鈥淓ven before the BP spill we were very much on the collapse of our fisheries,鈥 says Doug Meffert, 探花精选聽vice president for the Gulf Coast and Mississippi聽Flyway. The fish and birds that depend on the region 鈥渨ere already at a tipping point in being able to deal with the pressures we鈥檝e put on them.鈥

In Louisiana, the damage was so acute鈥斺攖hat in 2009, then-Senator Mary Landrieu convened a team of NGOs, scientists, and state and federal officials to come together for a series of workshops with the goal of developing federal legislation to advance coastal restoration. The group held its first daylong retreat in the fall of 2009. The Deepwater Horizon rig blew the following spring.聽

Avoiding a Quagmire

After the BP spill occurred, conservationists wondered how it might possibly lead toward a path to recovery鈥攏ot just from the effects of the spill, but from long-term ecological damage in the region, says Courtney Taylor, who at the time worked for EDF and has more recently served as an outside consultant to the environmental coalition. As Taylor puts it, 鈥淲here could you create a bigger, better, broader opportunity for the Gulf?鈥

One answer seemed to be the Clean Water Act; in December 2010, the Justice Department filed a lawsuit against BP (and other companies implicated in the spill, such as Transocean) for violations of the act. And while it was unclear exactly how much money would result from the lawsuit, it was evident that

So during the year following the spill, Landrieu and other Gulf officials, with the input of conservation groups, began to formulate a legislative plan for how the anticipated penalties could be returned to the Gulf region. According to Taylor, the two big questions that kept cropping up during the haggling were: 鈥淪hould all the money go back to the states for basically whatever they want in equal shares, or should it have some different structure where there鈥檚 still federal control and specified uses?鈥澛

In the end, the bill that emerged, which secured 80 percent of the Clean Water Act penalties for restoration activities in the Gulf, was something of a compromise. It divided the settlement into three main pots: 35 percent of the funds would be split equally among the five Gulf states to use as they saw fit; 30 percent would be turned over to a newly established RESTORE Council to allocate for environmental restoration projects; and 30 percent would be divided unequally among the states to develop their own proposals, subject to the approval of the council. (The remaining 5 percent is reserved for various scientific research and monitoring programs.) When Landrieu introduced the bill in 2011, nearly every Gulf senator signed on as a co-sponsor, and in 2012 the RESTORE Act was signed into law.

At the time, there was still no telling how much the BP settlement would be under the Clean Water Act or even when a sum would be decided. With the clock ticking, the first step was to set up the RESTORE Council鈥攊tself a monumental undertaking, essentially creating a new federal agency鈥攁nd develop an Initial Comprehensive Plan for spending the anticipated settlement money (the council intended to update the plan later). After that, there would be a vote on the primary list of projects to be funded.聽

For conservationists, the priority was to ensure that the projects ultimately funded through the RESTORE Act were in the service of a broad vision of holistic restoration of the Gulf鈥檚 broken ecosystems鈥攏ot piecemeal efforts that, while worthwhile, didn鈥檛 take the bigger ecological picture into account. 鈥淟arge-scale ecosystem processes created these systems as we know them today,鈥 Meffert says, 鈥渁nd restoring those large-scale processes is critical for the long-term sustainability of the Gulf.鈥

The projects would also need to be developed in close coordination with each other, with Gulf restoration projects from other funding streams (including other pots of money from the BP settlement), and with state and local restoration programs (such as ). The key, Taylor says, is using various funding sources so that they 鈥渁dd up to a whole bigger than the sum of its parts.鈥

When the council released its in 2013, some conservationists were underwhelmed. It was 鈥渢oo brief and too vague and didn鈥檛 have the specifics that we felt were necessary,鈥 Muth says. That lack of direction could be seen in the project proposals the council received for its first round of funding, around $240 million that came from the Justice Department鈥檚 with Transocean earlier that year.

鈥淲e saw projects proposed by individual states and federal agencies where there clearly had been no coordination, where there were overlapping geographies and goals,鈥 Muth says. 鈥淎nd that鈥檚 just not acceptable. They don鈥檛 need to all go in there looking for their share of the pie.鈥

The Turning Point

Part of the challenge for the council was that it had drafted the initial plan while the lawsuit against BP was still being litigated. 鈥淔or the first several years, we were operating without knowing how much money we were going to have and when we were going to have it,鈥 says Justin Ehrenwerth, the council鈥檚 executive director. 鈥淚n that first round we really wanted to pick foundational projects鈥攑rojects that we could build upon as the dollars from BP became available.鈥澛

Then in the summer of 2015, BP and the government , and it finally became clear how much total money would be on the table. As work began on an updated Comprehensive Plan, the environmental coalition met with members of the council to push for the inclusion of firm guidelines to make sure future proposals would be explicitly guided by a long-term vision for restoration in the Gulf.

A turning point seemed to come earlier this year when Tom Vilsack, the secretary of the Department of Agriculture, was brought on as the council chair, with Robert Bonnie, the USDA鈥檚 under secretary for Natural Resources and Environment, serving as his designee. After Bonnie joined the council in March, the overhaul of the plan kicked off in earnest.聽

鈥淏onnie brought a new energy to the whole process,鈥 Taylor says. 鈥淗e comes from an agency and a perspective of knowing how to work on the ground with states.鈥

This spring, as it began to draft its updated Comprehensive Plan, the council 鈥渄id something that is not typically done by the federal government,鈥 according to Ehrenwerth: It reached out to the public, to scientists, and to conservation groups for feedback on how it could improve the initial plan and project-selection process. 鈥淲e had done good work in the first [funding round], and there were a number of good projects there,鈥 Bonnie says. 鈥淏ut there were also a number of lessons to be learned.鈥

The released last week, which will be open to public comment before being finalized, is a reflection of that feedback. It puts forth a clear path for moving forward, including meetings throughout 2017 between council members and stakeholders in other Gulf-restoration funding streams to look for ways to coordinate projects. The plan also elaborates how the council will improve on the review process for proposals so that the projects selected are grounded in the best possible science.

While far from a thrilling read, taken as a whole, the聽council's final plan inspires optimism: It signals a serious commitment to the kind of big-picture, long-term vision that the Gulf needs, taking on the nitty-gritty work of setting out rules that will help make that vision happen. In the end聽鈥渢hey鈥檝e committed to large-scale, to evaluating cumulative benefits of the entire program as they move forward,鈥 Muth says. And in doing so, the council has聽ensured聽that the worst environmental disaster the U.S. has ever seen isn鈥檛 made worse by a failure to take advantage of the monumental conservation opportunity that arose from it鈥攐ne that conservationists aren鈥檛 likely to see again.