Pub. 65 2024-2025 Issue 1

Nearly seven years after Hurricane Harvey made landfall on the Texas coast, killing dozens of Texans and wreaking havoc on the state economy, officials are working to strengthen the resiliency of the coast against the next terrible storm. Hurricane Harvey stands as the second costliest hurricane in U.S. history, causing an estimated $158.8 billion in damage, according to the National Centers for Environmental Information. Much of this damage resulted from storm surge, or the rapid and excessive rise in seawater level. Powerful hurricanes like Harvey that bring destruction and loss of life drive home the importance of the federally authorized Coastal Texas Project. As a long-term risk management and coastal resiliency plan for the most vulnerable sections of the Texas coastline, the project includes new storm mitigation infrastructure and ecosystem restoration in the Houston-Galveston coastal region — one of the nation’s largest social and economic hubs — that are sponsored by the Gulf Coast Protection District (GCPD). Fiscal Notes staff spoke with GCPD Executive Director Nicole Sunstrum and Board Member Sally Bakko to learn more about this special purpose district and how it’s working to defend Texans and industry supply chains along the upper Gulf Coast from catastrophic storm surge. Fiscal Notes (FN): What can you tell us about the Coastal Texas Project? GCPD: The Coastal Texas Project is a U.S. Army Corps of Engineers (Corps) project that will use multiple lines of defense and methods of storm surge suppression along our state’s coast, including heavy infrastructure like pump systems and levees, as well as natural features like beach and dune systems. The Galveston Bay Storm Surge Barrier System represents one of three major projects under the Coastal Texas Project, and it’ll make up most of the estimated $34.4 billion price tag of the program (Exhibit 1). One part of the barrier, the Bolivar Roads Gate System, will be the biggest infrastructure project in U.S. history. The gate system, which is designed to stop storm surge and protect the people and communities of the region, is the economic engine of this project. It’s also the form of protection that will mean the most to the rest of Texas and the nation because of the reduction of damage to the energy and petrochemical industries that support critical economic supply chains. The Galveston Bay barrier system will ultimately pay for itself when you consider the total cost of past hurricanes, like Harvey and Ike. Exhibit 1: Galveston Bay Storm Surge Barrier System, Estimated Costs Funding Source Amount (Billions) Federal Share $19.41 Non-Federal Share $11.79 Total Cost of Galveston Bay Storm Surge Barrier System Cost $31.20 Total Cost of Coastal Texas Project $34.38 Share of Galveston Barrier System of Total Coastal Texas Project Cost 90.75% Note: Non-federal share funds are state funds appropriated by the Texas Legislature. Source: The Coastal Texas Project, Galveston Bay FN: Where does the GCPD come in? GCPD: The Legislature created the GCPD to be a non-federal sponsor of the Galveston Bay Storm Surge Barrier System, including the gate system. Our most important supply chain is the human supply chain, or the folks who operate the product supply chains. 25 DEALERS’ CHOICE

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