July 14, 2015
Deepwater Horizon Oil Spill: Gulf Coast Restoration Efforts
In Brief
The explosion of the Deepwater Horizon offshore drilling
parties in connection with the 2010 Deepwater Horizon oil
rig on April 20, 2010, which took place 41 miles southeast
spill are to be deposited in the fund and made available
of the Louisiana coast, resulted in an unprecedented
without further appropriation. The act divided funding into
discharge of oil in U.S. waters. An estimated 171 million
the following elements:
gallons (4.1 million barrels) of oil discharged into the Gulf
• 35% Direct Component, divided evenly among the five
of Mexico over 84 days, and a substantial portion remained,
Gulf Coast states for ecosystem/economic projects and
in some form, in the Gulf. The spill resulted in the oiling of
more than 1,100 miles of shoreline and, among other things,
administered by the U.S. Treasury Department;
caused significant short- and long-term damage to fish and
• 30% Comprehensive Plan Component, with projects to
wildlife species.
be selected by the Gulf Coast Ecosystem Restoration
Council (composed of six federal members and five
Oil Spill Restoration Processes
state representatives);
• 30% Spill Impact Component, distributed by the council
In the wake of the oil spill, several settlement agreements
based on a proportional formula to be used on specified
established new processes, or worked within existing
activities (limited to 25% infrastructure);
processes, to dedicate funding to mitigate and recover from
damages associated with the Deepwater Horizon spill.
• 2.5% Centers of Excellence Grants, divided evenly
These efforts have been in addition to preexisting, ongoing
among the five states and administered by the U.S.
federal, state, local, and nongovernmental efforts to restore
Treasury Department;
the Gulf of Mexico ecosystem.
• 2.5% National Oceanic and Atmospheric Administration
(NOAA) Science Program, administered by NOAA and
The distribution and use of funds under three of the major
processes is likely to have a major effect on restoration
focused on science, research, and monitoring.
work in the Gulf: (1) civil damages paid by responsible
Approximately $800 million currently is scheduled to be
parties under the Clean Water Act (CWA) to support efforts
outlined under the Resources and Ecosystems,
made available in the trust fund pursuant to the 2013
Transocean settlement. The July 2015 settlement
Sustainability, Tourist Opportunities, and Revived
announcement by DOJ stated that BP would pay $5.5
Economies (RESTORE) Act of 2012 (Subtitle F of P.L.
112-141); (2) criminal penalties under the CWA paid by
billion to resolve CWA claims, 80% ($4.4 billion) of which
would be distributed according to the RESTORE Act.
responsible parties to the National Fish and Wildlife
These funds would be in addition to the $800 million for
Foundation (NFWF) and other entities, as required under
relevant court settlements; and (3) Natural Resources
the Transocean settlement, for a total of $5.2 billion. The
status of each element is as follows:
Damages Assessment (also known as the NRDA process)
under the Oil Pollution Act of 1990 (OPA; P.L. 101-380).
• Direct Component and Centers of Excellence grants
have been announced in Federal Funding Opportunities
While funding available for some of these efforts was
(FFOs) by the U.S. Treasury Department and are
announced in 2013, other funding to settle outstanding
expected to be awarded on a rolling basis. The current
claims against BP under CWA and NRDA was announced
round ends in July 2015;
by the Department of Justice (DOJ) on July 2, 2015. Based
• The Initial Comprehensive Plan was published in
on information in this announcement and previous
settlements, the Congressional Research Service estimates
August 2013, and Comprehensive Plan proposals from
council members for the Transocean funding were
that $16.34 billion may go to ecosystem restoration and
solicited in an FFO from August to December 2014; 50
related projects in Gulf states under the RESTORE Act,
NFWF, and NRDA (among other processes). The following
proposals currently are under review. An initial funded
priorities list is expected in late 2015;
sections describe the content and status of these initiatives
as of mid-2015.
• A regulation allowing for release of 5% of Spill Impact
Component funds (for planning purposes) was published
RESTORE Act
in December 2014. A regulation proposing the final spill
impact formula (and thus allowing for the release of
The RESTORE Act establishes the Gulf Coast Restoration
remaining funds) is expected in 2015;
Trust Fund and the Gulf Coast Ecosystem Restoration
• The NOAA Science Program released its first FFO in
Council, among other things. Eighty percent of
administrative and civil CWA penalties paid by responsible
December 2014. In May 2015, it established 10 long-
term research priorities and released its Science Plan.
www.crs.gov | 7-5700

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Deepwater Horizon Oil Spill: Gulf Coast Restoration Efforts In Brief
NFWF Restoration
Timeline of Spill Restoration Activities
Pursuant to criminal settlements with BP and Transocean,
April 20, 2010: Deepwater Horizon spill
NFWF is expected to receive and distribute $2.5 billion in
its Gulf Environmental Benefit Fund over the 2013-2018
July 15, 2010: Well capped
time period, with more than half the funding coming in the
September 2010: Initial Oil Spill Commission Report (also
last two years of this period (an additional $500 million in
known as the Mabus Report) published
this settlement was designated for the National Academy of
Sciences). Of this amount, Louisiana is expected to receive
October 2010: Gulf Coast Restoration Task Force
approximately $1.27 billion and the other states are
established
expected to receive a portion of the remaining $1.27 billion.
The funds are to be used for barrier island and river
April 2011: NRDA early restoration framework announced
diversion projects in Louisiana and to remedy harm to
natural resources in other states affected by the spill. NFWF
December 2011: Task force strategy published
will be working with state natural resources agencies, Fish
April 2012: Phase I NRDA early restoration projects
and Wildlife Services, and NOAA to coordinate restoration
finalized
activities. As of early 2015, NFWF had funded 51 projects
worth approximately $395 million.
July 2012: RESTORE Act becomes law
NRDA Process and Early Restoration
December 2012: Phase II NRDA early restoration projects
finalized
The OPA, which became law after the Exxon Valdez oil
spill of 1989, allows state, federal, and tribal governments
January 2013: Criminal settlement/NFWF funds
to act as “trustees” to recover damages to natural resources
announced
in the public trust from the parties responsible for an oil
August 2013: RESTORE Initial Comprehensive Plan
spill. Under the OPA, responsible parties are liable for
finalized
damages to natural resources, the measure of which
includes the following:
November 2013: First NFWF projects announced
• the cost of restoring, rehabilitating, replacing, or
August-December 2014: RESTORE Comprehensive Plan
acquiring the equivalent of the damaged natural
solicitation
resources;
•
October 2014: Final rule for RESTORE Direct Component
the diminution in value of those natural resources
pending restoration;
October 2014: Phase III NRDA early restoration projects
• the reasonable cost of assessing those damages.
approved
December 2014: Initial spill impact regulation finalized
The trustees’ work occurs in three steps: a pre-assessment
phase, the restoration planning phase, and the restoration
May 2015: Phase IV NRDA draft early restoration projects
implementation phase. The Deepwater Horizon NRDA
published for public comment
process is in the restoration planning phase, which includes
assessment of injuries and development of an
July 2015: DOJ announces $18.732 billion settlement,
implementation plan.
including payments by BP to resolve CWA penalties and
NRDA
On April 21, 2011, the trustees for the Deepwater Horizon
oil spill announced an agreement with BP to provide $1
Additional Information
billion toward early restoration projects in the Gulf of
See CRS Report R43380, Gulf Coast Restoration:
Mexico to address injuries to natural resources caused by
RESTORE Act and Related Efforts, by Charles V. Stern,
the spill. As of 2015, the trustees and BP had approved 54
Pervaze A. Sheikh, and Jonathan L. Ramseur, or CRS
projects (phases I–III) with an estimated cost of $698
Report IN10217, Deepwater Horizon Oil Spill: Clean
million and proposed ten additional projects (phase IV)
Water Act Penalty Developments, by Jonathan L. Ramseur.
with an estimated cost of $134 million. Projects include
efforts to restore public trust resources such as coastal and
Charles V. Stern, cstern@crs.loc.gov, 7-7786
marine habitat, sea turtles, fish, and birds and to enhance
Pervaze A. Sheikh, psheikh@crs.loc.gov, 7-6070
related activities such as commercial fishing and recreation.
Harold F. Upton, hupton@crs.loc.gov, 7-2264
The July 2015 DOJ announcement stated that BP will pay

$8.1 billion (including the $1 billion in early restoration) to
resolve all NRDA claims.
IF10255
www.crs.gov | 7-5700

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