RESTORE Act — Gulf Coast Ecosystem Restoration

The Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act of 2012 (RESTORE Act) created the Gulf Coast Restoration Trust Fund — a dedicated federal funding mechanism financed by 80 percent of all civil and administrative penalties paid under the Clean Water Act by parties responsible for the April 2010 Deepwater Horizon oil spill. Because BP agreed to pay $5.5 billion in Clean Water Act civil penalties under the 2016 consent decree, the Trust Fund received approximately $4.4 billion (80% of $5.5 billion) — the largest dedicated environmental restoration fund in United States history at the time of its creation. The Act directs that money across five program components focused on restoring the ecology and economy of the five Gulf Coast states directly affected by the spill: Alabama, Florida, Louisiana, Mississippi, and Texas. Unlike most appropriated programs, RESTORE Act funds are permanent appropriations — they do not require annual congressional action once deposited in the Trust Fund.

Current Law (2026)

Legal Authority

• 33 U.S.C. § 1321(t) — Gulf Coast Restoration Trust Fund: establishes the Trust Fund in the Treasury; directs 80% of Clean Water Act penalties from the Deepwater Horizon spill into the Fund; specifies the five-component allocation structure; authorizes Treasury and the Gulf Coast Ecosystem Restoration Council to administer grants to states and coastal subdivisions
• 31 U.S.C. § 301, § 321 — Treasury general authority: authorizes Treasury to administer the Trust Fund, issue implementing regulations, and conduct audits and reviews of grant recipients

The Five Program Components

The RESTORE Act divides Trust Fund money among five distinct program streams, each with separate eligible uses and administering entities:

1. Direct Component (35% of Trust Fund) — Equal shares of 35% are distributed to the five Gulf Coast States. Each state's allocation is split: 75% goes to the state for state-identified restoration projects, and 25% goes to coastal political subdivisions (counties and parishes within 25 miles of the Gulf Coast shoreline). States must submit a Multiyear Implementation Plan to Treasury identifying how they will use their allocation; the plan must be approved before grant funds are released. Administrative costs are capped at 3% of amounts received. This is the largest single funding stream for state-directed restoration.

2. Comprehensive Plan Component (30% of Trust Fund) — Administered by the Gulf Coast Ecosystem Restoration Council, a federal-state body comprising the Secretaries of Agriculture, Army (Corps of Engineers), Commerce (NOAA), Homeland Security, and Interior, plus the EPA Administrator and the Governors of all five Gulf Coast states (Alabama, Florida, Louisiana, Mississippi, Texas). The Council develops a Comprehensive Plan for Gulf Coast ecosystem restoration — selecting projects based on scientific priorities, and contracting with federal agencies or state entities to implement them. Priority restoration targets include coastal wetlands, barrier islands, seagrasses, oyster reefs, fish populations, and water quality in estuaries affected by the spill.

3. Spill Impact Component (30% of Trust Fund) — Also Council-administered, but allocated among the five states using a formula that weights three factors: (1) proximity of the state's shoreline to the spill site, (2) miles of state shoreline affected, and (3) economic losses suffered by the state as a result of the spill. Louisiana — with the most affected shoreline and greatest economic impact — receives the largest Spill Impact allocation. States submit State Expenditure Plans to the Council; approved plans trigger grant awards.

4. NOAA RESTORE Act Science Program (~2.5% of Trust Fund) — Administered by the National Oceanic and Atmospheric Administration (NOAA), in consultation with the U.S. Fish and Wildlife Service. Funds research, monitoring, and observation to understand Gulf Coast ecosystem dynamics and measure the effectiveness of restoration activities. Priority research areas include: Gulf of Mexico fish population dynamics, harmful algal bloom prediction, deep-sea coral ecosystem characterization, and long-term water quality monitoring. Administrative costs capped at 3% of NOAA's allocation. NOAA must submit annual reports to Treasury on program activities and expenditures.

5. Centers of Excellence Research Grants Program (~2.5% of Trust Fund) — Administered by Treasury; equal shares allocated to each of the five Gulf Coast States. Each state receives grants to fund one or more Centers of Excellence — research programs at universities or research institutions within the state focused on Gulf Coast-relevant science. Eligible research areas include: coastal and deltaic sustainability; offshore energy development and associated environmental impacts; seafood supply chain improvement and marketing; sustainable Gulf fisheries; and tourism, recreation, and cultural resources. Grant recipients must report annually to the Council.

How It Works

Under the Clean Water Act, oil spills create civil liability of up to $1,100 per barrel (upgraded to $4,300 per barrel for gross negligence). The Deepwater Horizon spill discharged approximately 134 million gallons of oil — triggering maximum penalty exposure that resolved through a 2015 consent decree in which BP agreed to pay $5.5 billion in Clean Water Act civil penalties alone, in addition to other settlements for natural resource damages and economic harm. Eighty percent of those civil penalties flows into the RESTORE Act Trust Fund as permanent appropriations that do not lapse; Treasury deposits payments as received and invests uninvested amounts in interest-bearing U.S. government securities, with interest allocated among the five components proportionately. Each grant agreement must include certifications that funds will be used only for eligible activities, fraud and waste reporting requirements, record retention obligations (minimum 3 years after final payment), and audit rights for Treasury and the Treasury Inspector General — with a 3% cap on administrative costs across all components. Recipients must submit regular performance reports to Treasury or the Council.

Eligible activities across the Direct Component and Spill Impact Component include:

• Restoration and protection of natural resources, ecosystems, fisheries, marine and wildlife habitats, beaches, and coastal wetlands
• Mitigation of damage to fish, wildlife, and natural resources
• Implementation of a federally approved marine, coastal, or comprehensive conservation management plan
• Infrastructure projects benefiting coastal communities, the marine environment, or natural resources
• Workforce development and job creation in affected industries (fishing, tourism, seafood marketing)
• Planning for future emergencies affecting the Gulf Coast environment

How It Affects You

If you live in a Gulf Coast community (Alabama, Florida, Louisiana, Mississippi, or Texas) affected by the Deepwater Horizon spill, the RESTORE Act is the primary mechanism delivering restoration money to your state and local government. The Direct Component's 25% allocation to coastal political subdivisions means that parishes, counties, and municipalities along the Gulf shoreline receive their own direct grants — not just money filtered through state government. To find out what projects your local government has funded or is planning, contact your county or parish government's planning or grants department; most Direct Component recipients are required to maintain publicly accessible project information. The Gulf Coast Ecosystem Restoration Council maintains a project database at restorethegulf.gov tracking funded projects across all components.

If you work in Gulf Coast fisheries, tourism, or seafood marketing, RESTORE Act eligible activities specifically include workforce development and economic recovery for affected industries. Gulf fisheries experienced direct harm from the spill (oiled habitat, contamination concerns affecting seafood demand, fishing ground closures) and continue to deal with long-term ecosystem effects. State Expenditure Plans under the Spill Impact Component may include fisheries restoration, aquatic habitat enhancement, and seafood marketing programs. Louisiana's seafood industry and Florida's tourism economy have been among the largest beneficiaries of state-directed spending.

If you're a researcher or scientist working on Gulf Coast ecosystems, the NOAA RESTORE Act Science Program and the Centers of Excellence have created substantial long-term funding for Gulf Coast-specific research that wouldn't otherwise receive federal support. NOAA's Science Program prioritizes multi-year monitoring programs — tracking ecosystem recovery over decades — as well as predictive modeling for harmful algal blooms (red tide), storm surge, and fisheries dynamics. State Centers of Excellence have created new research centers at universities including LSU, University of Florida, University of Southern Mississippi, University of South Alabama, and Texas A&M Corpus Christi.

Implementing Regulations

The Treasury Department's regulations implementing the RESTORE Act are at 31 CFR Part 34 — Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States (62 sections). Key provisions:

• § 34.100 — Trust Fund structure: Treasury deposits 80% of all CWA penalties and interest earned on investments into the Trust Fund; amounts are invested in interest-bearing U.S. obligations until needed for disbursements

• § 34.103 — Allocation formula: 35% Direct Component (equal shares to states, split 75/25 state vs. coastal subdivisions); 30% Comprehensive Plan; 30% Spill Impact (formula allocation); 2.5% NOAA Science; 2.5% Centers of Excellence

• § 34.201 — Direct Component eligible activities: restoration and protection of natural resources, ecosystems, fisheries, marine habitats, beaches, coastal wetlands; infrastructure benefiting coastal communities; workforce development in affected industries; tourism promotion and seafood marketing

• § 34.203 — Spill Impact Component additional eligibility criteria: activities must directly benefit the Gulf Coast ecosystem or economy; states must demonstrate connection to spill-related harm in their State Expenditure Plans

• § 34.204 — Administrative cost cap: no more than 3% of amounts received under Direct, Comprehensive Plan, or Spill Impact Components may be used for administrative costs (including salaries, overhead, and grant management); the cap ensures maximum funding reaches on-the-ground restoration

• §§ 34.300–34.308 — Direct Component grant procedures: Treasury develops the application process; states and coastal political subdivisions submit Multiyear Implementation Plans; Treasury reviews for consistency with the Act; approved plans trigger grant execution; grant agreements must include record-keeping, reporting, and audit access requirements

• §§ 34.400–34.406 — Comprehensive Plan Component: Council develops and publishes the plan; assigns implementation to federal agencies or state entities; each assignee is responsible for project delivery and reporting; Council and Treasury may conduct audits

• §§ 34.500–34.508 — Spill Impact Component: Council allocates by formula; each Gulf Coast State submits a State Expenditure Plan for Council approval; approved plans trigger grants; recipients maintain records accessible to Council and Treasury Inspector General

• §§ 34.600–34.607 — NOAA Science Program: NOAA establishes and administers the program; funds research, monitoring, and observation; no existing NOAA research may receive funding unless specifically approved; 3% administrative cost cap; NOAA reports annually to Treasury

• §§ 34.700–34.708 — Centers of Excellence: Treasury awards equal grants to each Gulf Coast State; each state administers a university-based research grant program; eligible research areas include coastal sustainability, offshore energy, seafood, fisheries, and tourism; annual performance reports required

• 40 CFR Part 1800 — Spill Impact Component (15 sections — the Gulf Coast Ecosystem Restoration Council's implementing regulations for the formula allocation and State Expenditure Plan procedures governing the 30% Spill Impact Component of the RESTORE Act):

  • § 1800.1 — Definitions: Deepwater Horizon oil spill means the April 20, 2010 blowout and resulting hydrocarbon releases; Gulf Coast State means Alabama, Florida, Louisiana, Mississippi, or Texas; Gulf Consortium means the consortium of Florida counties eligible for Spill Impact Component funds; Spill Impact Formula means the Council-established formula weighted by three factors
  • §§ 1800.10–1800.20 — Planning allocations: up to 5% of each state's Spill Impact allocation (the statutory minimum) is available for planning purposes — specifically for developing the State Expenditure Plan before a full grant is awarded; a Gulf Coast State, its administrative agent, or the Gulf Consortium may apply to the Council for a planning grant; planning activities are limited to conceptual design and development of the State Expenditure Plan itself
  • §§ 1800.100–1800.101 — General formula: 30% of the Trust Fund's Spill Impact Component is distributed to the five Gulf Coast States according to a formula based on a weighted average of three factors: (1) miles of shoreline affected by the Deepwater Horizon oil spill, weighted at 40% of the formula; (2) proximity of the state's shoreline to the mobile offshore drilling unit Deepwater Horizon at the time of the blowout (inverse distance), weighted at 40%; and (3) the proportionate economic damage to fishing, tourism, and related industries attributable to the spill, weighted at 20%; Louisiana receives the largest Spill Impact allocation due to its extensive affected coastline and proximity to the spill site; Florida receives the second largest share due to extensive shoreline, even though much of the Florida Gulf Coast received lighter oiling
  • §§ 1800.200–1800.202 — State Expenditure Plans: each Gulf Coast State must submit a State Expenditure Plan to the Council before receiving Spill Impact funds beyond the planning allocation; the Plan must identify specific projects, estimate costs, explain how projects address spill impacts, and demonstrate consistency with the Council's Comprehensive Plan and Funded Priorities List; the Council reviews the Plan for consistency with RESTORE Act eligible activities, the Council's comprehensive plan, and applicable federal requirements; approved Plans become the basis for Council grants

  The Part 1800 formula is the regulatory expression of Congress's judgment about how spill severity, proximity, and economic impact should be weighted in allocating Gulf restoration funds. Louisiana receives approximately 65% of the Spill Impact Component under the formula; the remaining 35% is divided among the other four states. Florida's Gulf Consortium (comprising the 23 Gulf coast counties) administers Florida's Spill Impact allocation separately from the state government, reflecting a unique arrangement in the RESTORE Act for Florida's coastal communities. Promulgated: 76 FR 45675 (July 29, 2011) — interim final rule; 79 FR 48044 (Aug. 15, 2014) — final rule.

Statutory Authority

This rule implements:

• 33 U.S.C. § 1321(t) (Clean Water Act § 311(t)) — the RESTORE Act itself, establishing the Trust Fund structure, program components, allocation percentages, eligible activities, and the Gulf Coast Ecosystem Restoration Council

Recent Rulemakings

The core implementing rule was published at 59 FR 62524 (December 2, 1994) — though the RESTORE Act itself was enacted in 2012 (the FR citation refers to the CFR's original codification reference). The primary rulemaking activity occurred through 85 FR 83440-83445 (December 22, 2020), a package of five related final rules revising the Direct Component grant application procedures, updating the Multiyear Implementation Plan requirements, and clarifying administrative cost cap calculations. No major amendments have been proposed since 2021.

Recent Developments

• BP consent decree payment installments ongoing: BP's 2016 consent decree with the United States provided for RESTORE Act Trust Fund contributions extending through the mid-2030s. The payments continue on schedule; the Trust Fund has now distributed the majority of its principal to the five RESTORE Act components. Gulf Coast states and the Council have established multi-year implementation plans and are advancing hundreds of restoration projects.
• Post-pandemic restoration project delivery: COVID-19 disruptions delayed permitting, contractor procurement, and fieldwork on numerous Gulf Coast restoration projects funded through the Spill Impact and Comprehensive Plan components. By 2023–2024, most delayed projects had resumed. Coastal wetland restoration, living shoreline projects, and oyster reef reconstruction have been priority project types across all five Gulf Coast states.
• Trump administration and RESTORE Act grant reviews: The Trump administration's 2025 review of federal financial assistance — including scrutiny of environmental grants with DEI elements or climate change framing — created uncertainty for some RESTORE Act-funded projects. RESTORE Act funds are constitutionally constrained to Gulf Coast ecosystem restoration purposes under RESTORE Act § 1602; the statutory restriction limits the administration's discretion to redirect funds, but administrative review added processing delays for some pending grants.
• Second Funded Priorities List (FPL): The Gulf Coast Ecosystem Restoration Council published its second FPL, guiding Comprehensive Plan and Spill Impact Component funding through 2030. Priority areas include freshwater management (Mississippi River diversions to restore marsh salinity), coastal barrier island restoration, and seagrass recovery. The Council's science-based FPL process has been cited as a model for large-scale natural resource damage restoration governance.

Pending Action

The Trust Fund continues to receive penalty payment installments under BP's consent decree (payments extend through the mid-2030s). As of 2026, approximately 60% of Trust Fund principal has been distributed to program components; remaining distributions await completion of state implementation plans and Council project selections for the Comprehensive Plan and Spill Impact Components. The Gulf Coast Ecosystem Restoration Council has published its second five-year Funded Priorities List (FPL) identifying priority restoration activities through 2030.