SLS 10RS-86 ENGROSSED Page 1 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2010 SENATE BILL NO. 183 BY SENATOR N. GAUTREAUX ENERGY DEVELOPMENT. Authorizes the State Mineral and Energy Board to lease state lands for the development or production of alternate energy resources. (8/15/10) AN ACT1 To amend and reenact R.S. 30:124, relative to the State Mineral and Energy Board; to2 provide for alternate energy resources; to authorize the State Mineral and Energy3 Board to lease state lands for the exploration, development, and production of energy4 from alternative energy resources; to provide definitions, terms, and conditions; to5 provide for rulemaking authority; and to provide for related matters.6 Be it enacted by the Legislature of Louisiana:7 Section 1. R.S. 30:124 is hereby amended and reenacted to read as follows: 8 ยง124. Board may lease public lands; fee9 A. The legislature finds that the state, through the Department of10 Natural Resources, should promote the generation and use of alternative energy11 sources, including but not be limited to wind energy, geothermal energy, solar12 energy and hydrokinetic energy, throughout the state to ensure the viability of13 the state's natural resources, to provide a continuing utility-scale clean energy14 source for the citizens and businesses of Louisiana, to support economic15 development through job retention and creation in Louisiana, and to promote16 a clean environment.17 SB NO. 183 SLS 10RS-86 ENGROSSED Page 2 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. B. The State Mineral and Energy Board , hereinafter referred to as the1 "board", has authority to lease for the development and production of minerals, oil,2 and gas, or alternative energy sources, any lands belonging to the state, or the title3 to which is in the public, including road beds, water bottoms, vacant state lands, and4 lands adjudicated to the state at tax sale. The board shall adopt rules and5 regulations in accordance with the Administrative Procedure Act to implement6 the provisions of this Subpart.7 C. As used in this Section, "alternative energy sources" means energy8 sources other than oil, gas, and other liquid, solid or gaseous minerals. It shall9 include, but not be limited to, wind energy, geothermal energy, solar energy and10 hydrokinetic energy. It shall not include the cultivation or harvesting of11 biomass fuels or the use of state land or water bottoms for facilities which utilize12 biomass fuel to produce energy.13 D. No lease shall be granted for hydrokinetic energy development that14 is inconsistent with the terms of a preliminary permit, license, exemption, or15 other authorization issued by the Federal Energy Regulatory Commission16 pursuant to its authority under the Federal Power Act, 16 U.S.C. Sec 791a, et17 seq.18 E. The mineral board is further authorized to collect a fee for such leasing19 in the amount of ten percent of the total cash bonus paid at the lease sale. The fee20 shall be in addition to the total cash bonus paid.21 The original instrument was prepared by J. W. Wiley. The following digest, which does not constitute a part of the legislative instrument, was prepared by Jerry G. Jones. DIGEST N. Gautreaux (SB 183) Present law authorizes the State Mineral and Energy Board ("board") to lease for the development and production of minerals, oil, and gas, any lands belonging to the state, or the title to which is in the public, including road beds, water bottoms, vacant state lands, and lands adjudicated to the state at tax sale. Proposed law retains present law and authorizes the board to lease for the development and production of "alternative energy sources". SB NO. 183 SLS 10RS-86 ENGROSSED Page 3 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Proposed law authorizes the board to adopt rules and regulations in accordance with the APA. Proposed law defines "alternative energy sources" as energy sources other than oil, gas, and other liquid, solid or gaseous minerals. It will include, but not be limited to, wind energy, geothermal energy, solar energy and hydrokinetic energy. It does not include the cultivation or harvesting of biomass fuels or the use of state land or water bottoms for facilities which utilize biomass fuel to produce energy. Proposed law further provides that no lease shall be granted for hydrokinetic energy development that is inconsistent with the terms of a permit, license, exemption, or other authorization issued by the Federal Energy Regulatory Commission. Effective August 15, 2010. (Amends R.S. 30:124) Summary of Amendments Adopted by Senate Committee Amendments Proposed by Senate Committee on Natural Resources to the original bill. 1. Adds legislative findings. 2. Adds that no lease shall be granted for hydrokinetic energy development that is inconsistent with a permit, license, or exemption issued by the Federal Energy Regulatory Commission.