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Regular Session, 2010 ENROLLED
SENATE BILL NO. 624
BY SENATOR MARIONNEAUX
AN ACT1
To enact R.S. 51:2366, relative to economic development; to provide for the Louisiana2
Mega Project Energy Assistance Rebate; to provide for the businesses eligible for3
such rebate; to provide for the amount of such rebate; to provide certain authority to4
the secretary of the Department of Economic Development and the Department of5
Revenue; and to provide for a penalty for failure to file certain reports; and to6
provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 51:2366 is hereby enacted to read as follows: 9
ยง2366. Louisiana Mega Project Energy Assistance Rebate10
A. In addition to the funding for an economic development mega-project11
provided for in R.S. 51:2365 or as a separate incentive, the secretary of the12
Department of Economic Development with the concurrence of the governor13
may enter into a cooperative endeavor agreement to grant assistance to a mega-14
project as defined in R.S. 51:2365(F) the Louisiana Mega Project Energy15
Assistance Rebate as provided for in this Section, subject to approval of the16
cooperative endeavor agreement by the Joint Legislative Committee on the17
Budget.18
B. The assistance may be granted if the secretary determines that the19
consumption of energy will be a major cost component of the operation of a20
mega fund project and assistance in moderating the cost of such energy will be21
a major factor in inducing a mega fund project to locate, expand, or remain in22
the state. Also, the assistance may be granted only if the secretary of the23
Department of Economic Development certifies to the governor and the Joint24
Legislative Committee on the Budget that the grant of the energy assistance25
rebate shall not harm any business located in the state which may be a26
competitor of the business to be undertaken by the mega fund project.27
ACT No. 1006 SB NO. 624 ENROLLED
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C. The Louisiana Mega Project Energy Assistance Rebate to the mega-1
project shall be granted in the form of a rebate of Louisiana severance taxes2
that were paid to the state on any natural gas consumed or used directly in the3
operation of the mega-project facility or consumed indirectly in the4
manufacture or creation of energy sold to the mega-project facility for its5
operation, determined as follows:6
(1) Prior to implementation of the energy assistance rebate, the7
Department of Revenue, at the request of the secretary of the Department of8
Economic Development, shall consult with the operators of the mega-project9
facility and the following businesses:10
(a) The suppliers of natural gas for operation of the mega-project11
facility.12
(b) The utilities or other suppliers of energy which themselves use or13
consume natural gas for the production of energy which they are expected to14
sell to the mega-project facility for its operation. Utilities shall be entitled to use15
estimates for reporting purposes.16
(c) Any business or series of businesses back to the ultimate severance17
tax payer, which are expected to sell natural gas to the businesses described in18
Subparagraphs (a) and (b) of this Paragraph.19
(2)(a) Based upon such consultation, the Department of Revenue shall20
require periodic reports from any such supplier or utility provided for in21
Paragraph (1) of this Subsection which will enable the department to make the22
best estimate of the amount of natural gas which is consumed or used directly23
in the operation of the mega-project facility or consumed indirectly in the24
manufacture or creation of energy sold to the mega-project facility for its25
operation which bears a Louisiana severance tax and the amount of the26
severance tax paid to the state.27
(b) If the department finds that a supplier or utility not involved in such28
consultation is in the chain of supply of natural gas to the mega-project facility29
or the utilities or other suppliers as provided in Paragraph (1) of this30 SB NO. 624 ENROLLED
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Subsection, that supplier or utility may also be required to file the reports1
provided for in this Paragraph.2
(3) Based upon the reports, the secretary of the Department of Economic3
Development may award the Louisiana Mega Project Energy Assistance Rebate4
in an amount up to the Louisiana severance tax that has been paid to the state5
on natural gas for energy consumed or used in the mega-project facility6
operations as determined by the Department of Revenue at such times as7
provided for in the cooperative endeavor agreement.8
(4) For purposes of establishing the amount of severance taxes which9
have been paid to the state relative to the granting of a rebate pursuant to this10
Section, the amount shall be determined by reducing the total amount of11
severance taxes estimated to have been paid by the amount of such tax which12
would have been allocated by the state to political subdivisions pursuant to13
Article VII, Section 4(D) and (E) of the Constitution of Louisiana.14
D.(1) The secretary of the Department of Economic Development shall15
promulgate such rules and regulations for the implementation of this Section16
in the manner provided for in the Administrative Procedure Act.17
(2)(a) The Department of Revenue shall promulgate such rules and18
regulations for the implementation of the consultation and the reports required19
by the department in order to make the determination of the amount of rebate20
which may be granted, all in the manner provided for in the Administrative21
Procedure Act. Where specific identification of the amount of severance tax22
paid on natural gas consumed directly or indirectly in the operation of the23
mega-project is determined by the department not to be reasonably possible, the24
rules and regulations shall provide for the determination by estimate of the25
amount to be rebated.26
(b) In addition, in preparing such report, the department shall have any27
authority provided to it for examination and investigation pursuant to Part II28
of Chapter 18 of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950,29
(R.S. 47:1541 et seq.).30 SB NO. 624 ENROLLED
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(c) Failure to file the periodic reports by any supplier or utility required1
to do so by the department as provided for in Paragraph (C)(1) of this Section2
shall make the supplier or utility subject to the same penalty provided for3
failure to file the severance tax report provided for in R.S. 47:642(A).4
Section 2. This Act shall become effective on July 1, 2010; if vetoed by the governor5
and subsequently approved by the legislature, this Act shall become effective on July1, 2010,6
or on the day following such approval by the legislature, whichever is later.7
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: