1 ESF #10 Funding Overview The Experiences and Perspectives of the National Pollution Funds Center Presentation for the USCG – EPA ESF #10 Seminar Seattle, Washington February , 2010

2 What Are Our Goals Today? n Overview of ESF #10 funding from the perspective and experiences of the of the National Pollution Funds Center n Baseline overview of the response funds available to the Coast Guard and EPA n The Disaster Funding Experience n NPFC thoughts on the Mission Assignment process

3 Major NPFC Response Funding Programs n Administer the Oil Spill Liability Trust Fund (OSLTF) u Provide Funding for Oil Removal Activities and the Initiation of Natural Resource Damage Assessments (NRDA) Related to Oil Discharges u Pay Claims for Loss and Damage from Oil Discharges u Recover Costs from Responsible Parties n CERCLA Funding Manager for the Coast Guard n Stafford Act ESF-10 Funding Manager for the Coast Guard

4 “Best Response”

5 Key Business Drivers Critical Success Factors Human Heath and Safety No spill related public injuries, illness, death. No response worker injuries, illness, death The Natural Environment Source Discharge Minimized Spill Effectively Contained/Controlled Sensitive Areas Protected Resource Damage Minimized The Economy Economic Impact Minimized Public Communication Accurate Timely Information Positive Media Coverage of Response Positive Public Perception Stakeholder Support and Services Minimize Impact to Stakeholders Stakeholders Well Informed Positive Meetings with Stakeholders Prompt Handling of Damage Claims

Primary Fund Sources for ESF #10 MAs n OSLTF Response Funds: u $50M available each year – No year $$ u Unused amounts automatically carried forward – available until expended u Current Balance (02/19/10): $84.2M n CERCLA u IAG from EPA u Current balance is $784K n Stafford Act – Limited to Approved ESF-10 Mission Assignment for Specific Disaster

n Fiscal Law – “Purpose Statute” n Broad scope of ESF- 10 can include work beyond scope of OSLTF or Superfund n Administrative burden of managing large numbers of OSLTF and CERCLA projects Why Stafford Act Funding is a Better Way to Go During a Disaster

n ESF #10 is primarily “disaster relief,” not “environmental protection” u Relief and Recovery u OPA/CERCLA liability regimes n Makris-Suter Policy Guidance and NRF n Funding limitation arising from Trust Fund balances

9 The OSLTF Experience

The Disaster Experience

Thoughts on Disaster Funding and the MA Process The Navy is a master plan designed by geniuses for execution by idiots. -Thomas Keefer speaking to Willie Keith, the Caine Mutiny, by Herman Wouk The NRF is a master plan designed by ________for execution by _________. The MA process is a master plan designed by ________for execution by _________.

Thoughts on Disaster Funding and the MA Process n Partnership between: u CG Sectors/Districts/Area u EPA Regions u FEMA Regions/JFOs u NPFC/SILC/CG-83

Pollution Response (ESF #10) n Incorporates National Contingency Plan n Covers both Oil and HAZMAT response u No cost recovery from spillers u Single case cost doc (per Mission Assignment) u Simplified contracting – can cover multiple sites in same area n Use CG-533 Pre-Scripted Mission Assignments

Pollution Response (ESF #10) Key points: n Mission Assignment $$ n DO POLLUTION RESPONSE BUSINESS THE SAME AS ANY OTHER TIME n PRFAs can be used, but can’t be issued to States

Disaster Funding n What MA process DOESN’T COVER: n CG Infrastructure Support u “Keeping the CG Operational” u Evacuating CG Personnel and families u Re-establishing CG Comms Systems u Damage & Repairs to CG units and equipment n Contact District/SILC for funds

18 Stafford Act Pollution Response ESF-10 Mission Assignment n Issued by FEMA or sub- tasked by EPA n District accepts MA n NPFC then issues DPN n Responding unit tracks costs per cost doc. SOPs n NPFC seeks cost reimbursement from FEMA

What Happens If There is No MA? n Standard OSLTF and CERCLA Pollution Response Funds u Discrete OSLTF or CERCLA Incident Responses by CG Sector/FOSC n Sector/FOSC controls Fund Management n Cost Recovery against spiller(s)

20 Greg Buie Case Management Division Western States and Pacific Regional Manager Desk: (202) Fax: (202) Mobile: (202) Web: NATIONAL POLLUTION FUNDS CENTER ATTN GREG BUIE US COAST GUARD STOP WILSON BLVD STE 1000 ARLINGTON VA Where is Greg Buie when I need him?