Treasury clears way for Gulf restoration funds

The Treasury Department cleared the way for funding to Gulf states to help with coastal restoration projects on Tuesday.

Treasury’s final regulation took effect Tuesday, opening up grants for eligible states and local governments to support communities impacted by the 2010 Deepwater Horizon oil spill from an explosion at a BP rig.

{mosads}Alabama, Louisiana, Mississippi, and Texas along with 23 other counties in the Florida Gulf Coast, and 20 Louisiana coastal towns will receive funds under the rule.

The grants are being supplied by the trust fund under the RESTORE Act passed by Congress.

“Treasury is working in support of the states and communities that were impacted by the Deepwater Horizon oil spill as they select environmental and economic renewal projects for funding,” said David Lebryk, fiscal assistant Secretary at the Treasury Department.

“We look forward to continuing to work with our state, county and parish partners on the awarding of these grants,” Lebryk added.

The BP oil spill released millions of crude oil into the Gulf of Mexico, causing damage to wildlife habitats, fishing and tourism.

Under the final Treasury rule published earlier this year and effective on Tuesday, 35 percent of the trust fund is divided equally among he five Gulf states.

“I am pleased that Treasury’s final rule is in effect, and Louisiana and our parishes can now turn dirt with some of the funding.  This is yet another step in the right direction for implementing the RESTORE Act,” said Sen. Mary Landrieu(D-La.), who is facing a tough reelection race.

Rep. Bill Cassidy (R-La.), who is challenging Landrieu for her Senate seat, cheered the Treasury announcement, but said more work needs to be done.

“More than 600 miles of Louisiana’s shoreline was affected by the Deepwater Horizon oil spill—that’s more than three times the amount suffered by any other Gulf State,” Cassidy said “Insuring that Louisiana receives its fair share of funding to restore our coasts and protect families from future storms is a priority.”