The greatest natural threat posed to  the New Orleans area continues to be from hurricane-induced storm  surges, waves, and rainfalls. The hurricane surge that can inundate coastal  lowlands is the most destructive characteristic of hurricanes and accounts  for most of the lives lost from hurricanes. Because of such threats, a series of control structures, concrete  floodwalls, and levees, was proposed for the area along Lake  Pontchartrain in the 1960s. Purpose and History of Lake Pontchartrain and Vicinity Flood Control Project

Congress first authorized construction of the Lake Pontchartrain and  Vicinity, Louisiana Hurricane Protection Project in the Flood Control Act  of 1965 to provide hurricane protection to areas around the lake in the  parishes of Orleans, Jefferson, St. Bernard, and St. Charles. Although  federally authorized, it was a joint federal, state, and local effort with the  federal government paying 70 percent of the costs and the state and local  interests paying 30 percent. The original project designs were developed to combat a hurricane that  might strike the coastal Louisiana region once in 200-300 years. The model projected a storm roughly equivalent to a fast-moving  Category 3 hurricane. During the first 17 years of construction on the barrier plan, the Corps  continued to face project delays and cost increases due to design changes  caused by technical issues, environmental concerns, legal challenges, and  local opposition to various aspects of the project. By 1981, cost estimates had grown to $757 million for  the barrier plan, not including the cost of any needed work along the  drainage canals, and project completion had slipped to 2008. These changes are not believed to have  had any role in the levee breaches recently experienced as the high-level  design selected was expected to provide the same level of protection as  the original barrier design. In fact, Corps staff believe that flooding would  have been worse if the original proposed design had been built because  the storm surge would likely have gone over the top of the barrier and  floodgates, flooded Lake Pontchartain, and gone over the original lower  levees planned for the lakefront area as part of the barrier plan. The current estimated cost of construction for the completed project is  $738 million with the federal share being $528 million and the local share  $210 million. The project was estimated to be from 60-90 percent  complete in different areas. Recent Funding History for the Project

Federal allocations for the project totaled $458 million as of the enactment  of the fiscal year 2005 federal appropriation. This represents 87 percent of  the Federal government’s responsibility of $528 million with about $70  million remaining to complete the project in 2015. Over the last 10 fiscal  years (1996-2005), federal appropriations have totaled about $128.6 million  and Corps reprogramming actions resulted in another $13 million being  made available to the project. During that time, appropriations have  generally declined from about $15-20 million annually in the earlier years  to about $5-7 million in the last three fiscal years. While this may not be  unusual given the state of completion of the project, the Corps’ project  fact sheet from May 2005 noted that the President’s Budget request for  fiscal years 2005 and 2006 and the appropriated amount for fiscal year  2005 were insufficient to fund new construction contracts. The Corps had also stated that it could spend $20 million in fiscal year  2006 on the project if the funds were available. The Corps noted that  several levees had settled and needed to be raised to provide the design- level of protection. A full feasibility  study was estimated to take at least five years to complete and cost about  $8 million.
Why GAO Did This Study

The greatest natural threat posed to the New Orleans area is from hurricane-induced storm surges, waves, and rainfalls. A hurricane surge that can inundate coastal lowlands is the most destructive characteristic of hurricanes and accounts for most of the lives lost from hurricanes. Hurricane surge heights along the Gulf and Atlantic coasts can exceed 20 feet. The effects of Hurricane Katrina flooded a large part of New Orleans and breached the levees that are part of the U.S. Army Corps of Engineers (Corps) Lake Pontchartrain, and Vicinity, Louisiana Hurricane Protection Project. This project, first authorized in 1965, was designed to protect the lowlands in the Lake Pontchartrain tidal basin from flooding by hurricane-induced sea surges and rainfall. GAO was asked to provide information on (1) the purpose and history of the Lake Pontchartrain, and Vicinity, Louisiana Hurricane Protection Project and (2) funding of the project. GAO is not making any recommendations in this testimony.

What GAO Found

Congress first authorized the Lake Pontchartrain and Vicinity, Louisiana Hurricane Protection Project in the Flood Control Act of 1965. The project was to construct a series of control structures, concrete floodwalls, and levees to provide hurricane protection to areas around Lake Pontchartrain. The project, when designed, was expected to take about 13 years to complete and cost about $85 million. Although federally authorized, it was a joint federal, state, and local effort. The original project designs were developed based on the equivalent of what is now called a fast-moving Category 3 hurricane that might strike the coastal Louisiana region once in 200-300 years. As GAO reported in 1976 and 1982, since the beginning of the project, the Corps has encountered project delays and cost increases due to design changes caused by technical issues, environmental concerns, legal challenges, and local opposition to portions of the project. As a result, in 1982, project costs had grown to $757 million and the expected completion date had slipped to 2008. None of the changes made to the project, however, are believed to have had any role in the levee breaches recently experienced as the alternative design selected was expected to provide the same level of protection. In fact, Corps officials believe that flooding would have been worse if the original proposed design had been built. When Hurricane Katrina struck, the project, including about 125 miles of levees, was estimated to be from 60-90 percent complete in different areas with an estimated completion date for the whole project of 2015. The floodwalls along the drainage canals that were breached were complete when the hurricane hit. The current estimated cost of construction for the completed project is $738 million with the federal share being $528 million and the local share $210 million. Federal allocations for the project were $458 million as of the enactment of the fiscal year 2005 federal appropriation. This represents 87 percent of the federal government's responsibility of $528 million with about $70 million remaining to complete the project. Over the last 10 fiscal years (1996-2005), federal appropriations have totaled about $128.6 million and Corps reprogramming actions resulted in another $13 million being made available to the project. During that time, appropriations have generally declined from about $15-20 million annually in the earlier years to about $5-7 million in the last three fiscal years. While this may not be unusual given the state of completion of the project, the Corps' project fact sheet from May 2005 noted that the President's budget request for fiscal years 2005 and 2006, and the appropriated amount for fiscal year 2005 were insufficient to fund new construction contracts. The Corps had also stated that it could spend $20 million in fiscal year 2006 on the project if the funds were available. The Corps noted that several levees had settled and needed to be raised to provide the level of protection intended by the design.