A federal appeals court has rejected Louisiana's contention that the federal government should pay $586 million to restore barrier islands and wetlands damaged by Hurricanes Katrina and Rita in 2005.

The 5th U.S. Circuit Court of Appeals upheld decisions by the Federal Emergency Management Agency, an arbitration panel and a district court.

NOLA.com | The Times-Picayune reports that the decision says the islands and wetlands would have had to be improved and maintained to get FEMA money.

The state Coastal Protection and Restoration Authority says this won't stop its efforts to get public assistance for the restoration. It says it's "effectively procedural," about whether to have one or several arbitrations with FEMA.

The original arbitration panel suggested separate applications for each island with a record of improvements and maintenance.