HLS 13RS-292 ORIGINAL
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Regular Session, 2013
HOUSE BILL NO. 636
BY REPRESENTATIVE DANAHAY
ENERGY/OIL & GAS: Changes the oil spill contingency fee both in amount and
application and removes limitation on expenditures from the Oil Spill Contingency
Fund
AN ACT1
To amend and reenact R.S. 30:2483(E), 2484, and 2485, to enact R.S. 30:2454(32), and to2
repeal R.S. 30:2486 and 2487, relative to the Oil Spill Contingency Fund, to provide3
for the fees levied to supply monies to such fund; to provide relative to uses for the4
fund; to remove limitations on the fund; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 30:2483(E), 2484, 2485 are hereby amended and reenacted and R.S.7
30:2454(32) is hereby enacted to read as follows: 8
§2454. Definitions9
* * *10
(32) "Refinery" means a facility located within the state of Louisiana where11
crude oil is converted into a finished or higher grade product. 12
* * *13
§2483. Oil Spill Contingency Fund14
* * *15
E. After compliance with the requirements of Article VII, Section 9(B) of16
the Constitution of Louisiana relative to the Bond Security and Redemption Fund,17
and prior to monies being placed in the state general fund, an amount equal to that18
deposited, as required in Subsection D hereof of this Section, and monies19 HLS 13RS-292 ORIGINAL
HB NO. 636
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appropriated by the legislature shall be credited to a special fund hereby created in1
the state treasury to be known as the "Oil Spill Contingency Fund". The monies in2
this fund shall be used solely as provided in this Section Part and only in the amounts3
appropriated by the legislature. All unexpended and unencumbered monies in this4
fund at the end of the fiscal year shall remain in the fund. The monies in this fund5
shall be invested by the state treasurer in the same manner as monies in the state6
general fund, and interest earned on the investment of these monies shall remain in7
the fund. Except as otherwise provided in this Section, the balance of the fund shall8
not exceed thirty million dollars, exclusive of all fees, other than all fees collected9
pursuant to R.S. 30:2485 and 2486, penalties, judgments, reimbursements, charges,10
interest, and federal funds collected pursuant to the provisions of this Chapter. As11
authorized by Article VII, Section 10.7(C) of the Constitution of Louisiana, the12
amount of monies in the fund shall not be limited to thirty million dollars during a13
declared state of emergency or disaster caused by an unauthorized discharge of oil.14
§2484. Uses of fund 15
A. Money in the fund may be disbursed for the following purposes and no16
others: 17
(1) Administrative and personnel expenses of the office of the coordinator,18
excluding those of the oil spill technical assistance program, not to exceed six19
hundred thousand dollars in any fiscal year; except that during a declared state of20
emergency or disaster caused by an unauthorized discharge of oil, more than six21
hundred thousand dollars in a fiscal year may be disbursed from the fund after22
approval of the commissioner of administration and the Joint Legislative Committee23
on the Budget. 24
(2) Removal costs related to abatement and containment of actual or25
threatened unauthorized discharges of oil incidental to unauthorized discharges of26
hazardous substances. 27
(3) Removal costs and damages related to actual or threatened unauthorized28
discharges of oil as provided in this Chapter. 29 HLS 13RS-292 ORIGINAL
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(4) Protection, assessment, restoration, rehabilitation, or replacement of or1
mitigation of damage to natural resources damaged by an unauthorized discharge of2
oil as provided in this Chapter. 3
(5) Grants, with the approval of the interagency council, for interagency4
contracts as provided in R.S. 30:2495, not to exceed seven hundred fifty thousand5
dollars in any fiscal year. Of the total amount of grants awarded in any fiscal year,6
one hundred thousand dollars shall be made available for including grants7
specifically for the purposes of research, testing, and development of discharge and8
blowout prevention and training using full scale well service training. 9
(6) Beginning in Fiscal Year 96-97 and each fiscal year thereafter until10
Fiscal Year 1999-2000, the monies expended from the fund for the The Oil Spill11
Technical Assistance Program established in R.S. 30:2480(C)(4) shall be increased12
by one hundred thousand dollars each fiscal year whereupon funding for the Oil Spill13
Technical Assistance Program shall reach five hundred thousand dollars during14
Fiscal Year 2000-2001. 15
(7) Operating costs and contracts for response and prevention as provided16
in this Chapter, excluding operating costs and contracts where indicated of the oil17
spill technical assistance program, not to exceed six hundred thousand dollars in any18
fiscal year; except that during a declared state of emergency or disaster caused by an19
unauthorized discharge of oil, more than six hundred thousand dollars in a fiscal year20
may be disbursed from the fund after approval of the commissioner of administration21
and the Joint Legislative Committee on the Budget. 22
(8) Other costs and damages authorized by this Chapter. 23
(9) B. Any state agency or political subdivision seeking an appropriation24
from the fund or proposing expenditures utilizing money from the fund must notify25
the coordinator in writing before submitting the appropriation request to the26
legislature. 27
(10) An inventory under R.S. 30:2480, to be completed by July 1, 2001, in28
an amount not to exceed five million five hundred fifty thousand dollars in total. 29 HLS 13RS-292 ORIGINAL
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B. Funds paid to the office of the oil spill coordinator as cost recoveries from1
responsible parties, the Oil Spill Contingency Fund, or the federal Oil Spill Liability2
Trust Fund, shall not be included in the amounts provided for in Paragraphs (1) and3
(7) of Subsection A. Such cost recoveries and other funds may be used to4
supplement the activities normally funded under those Paragraphs beyond the set5
limits provided therein. 6
§2485. Oil spill contingency fee 7
A. There is hereby imposed a fee of one-quarter of one cent per barrel on8
every person owning crude oil received by a refinery for storage or processing. in9
a vessel at the time such crude oil is transferred to or from a vessel at a marine10
terminal within the state of Louisiana. This fee is shall be in addition to all taxes or11
other fees levied on crude oil and the monies collected shall be placed in the Oil Spill12
Contingency Fund as provided in R.S. 30:2483. 13
B. The operator of the marine terminal refinery shall collect the fee from the14
owner of the crude oil and remit the fee to the secretary. The fee shall be imposed15
only once on the same crude oil. The fee shall be paid quarterly by the last day of16
the month following the calendar quarter in which liability for the fee is incurred. 17
Fees collected during a quarter must be remitted to the state even if the fee is18
suspended during that quarter. For the expenses of collecting this fee, the operator19
is authorized to withhold one and one-half percent of the fees collected due during20
each quarter provided that the amount due was not delinquent at the time of payment.21
C. (R.S. 30:2486(C)) Notwithstanding the provisions of Subsection A or B22
of this Section, the fee shall be levied at the rate of four cents one-half cent per barrel23
if the state treasurer certifies to the secretary of the Department of Revenue a written24
finding of the following facts: 25
(1) The balance in the fund is less than five million dollars. 26
(2) An unauthorized discharge of oil in excess of one hundred thousand27
gallons has occurred within the previous thirty days as certified by the coordinator.28 HLS 13RS-292 ORIGINAL
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(3) Expenditures from the fund for damages and removal costs are1
reasonably expected by the coordinator and interagency council to deplete the fund2
by more than fifty percent of the balance of the fund, and certification of this3
expectation and the estimated damages and removal costs have been submitted to the4
state treasurer. 5
D. (R.S. 30:2486(D)) In the event of a certification to the secretary under6
Subsection C of this Section, the secretary shall collect the fee at the rate of four7
cents one-half cent per barrel until the balance in the fund reaches seven million8
dollars. The state treasurer shall certify to the secretary the date on which the9
balance in the fund equals seven million dollars. The fee shall not be collected or10
required to be paid on or after the first day of the second month following the state11
treasurer's certification to the secretary. Upon such certification to the secretary, the12
fee shall revert to the standard fee delineated in R.S. 30:2485(A). 13
E. The fee levied by this Part shall be subject to the provisions of Chapter14
18 of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950. The15
coordinator in conjunction with the secretary shall adopt rules for the collection and16
administration of the fee provided for in this Section. 17
Section 2. R.S. 30:2486 and 2487 are hereby repealed in their entirety. 18
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Danahay HB No. 636
Abstract: Changes the oil spill contingency fee both in amount and in application and
removes limitations on the expenditures from the fund.
Present law provides for a means of financing oil spill response activities by the state of
Louisiana. Provides for a fee to be levied on crude oil transferred to or from a vessel at a
marine terminal with the state. Provides for those monies to be placed in the Oil Spill
Response Fund to be used to respond to oil spills in the state.
Proposed law defines "refinery" to mean a facility located within Louisiana where crude oil
is converted into a finished or higher grade product. HLS 13RS-292 ORIGINAL
HB NO. 636
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Present law limits the balance of the Oil Spill Contingency Fund to $30 million including
all fees collected, penalties, judgments, reimbursements, charges, interest, and federal funds.
Proposed law removes this ceiling on the fund.
Present law provides generally for the used of the monies in the fund. Authorizes the use
for administrative and personnel not to exceed $600,000. Authorizes the issuance of grants
for research, testing and development of discharge and blowout prevention and training not
to exceed $750,000. Authorizes monies to be spent on the Oil Spill Technical Assistance
Program. Authorizes operating costs and contracts expenses for response and prevention not
to exceed $600,000 except during times of declared emergency when funds in excess of
$600,000 can be disbursed upon approval by the Joint Legislative Committee on the Budget.
Proposed law removes all of the above listed expenditure limits.
Present law further authorizes the monies to be spent for an inventory by July 1, 2001, of
natural resources damages in an amount not to exceed $5,550,000. Proposed law removes
this provision.
Present law provides that funds paid to the oil spill coordinator as cost recoveries from
responsible parties, the Oil Spill Contingency Fund, or the federal Oil Spill Liability Trust
Fund shall not be used for administrative or operating purposes. Proposed law removes this
provision.
Present law imposes a fee of 4 cents per barrel of crude oil transferred to or from a vessel
to a marine terminal within the state. Provides that the fee is levied when the balance in the
fund is less than $5 million, when an unauthorized discharge in excess of 100,000 gallons
has occurred, or when expenditures from the fund for damages and removal costs are
expected to deplete the fund by more than 50% of the balance of the fund. Provides that the
4 cent fee shall be collected until such time as the balance in the fund equals $7 million and
that when the $7 million balance is reached the fee shall no longer be collected.
Proposed law levies the fee at all times on the operator of a refinery where crude oil is
received for storage or processing. The fee is 1/4 cent per barrel except when the fund
balance is less than $5 million or an authorized discharge in excess of 100,000 gallons has
occurred, or expenditures from the fund are anticipated to deplete the fund by more than
50% of the balance of the fund. At that point, the fee shall be increased to 1/2 cent per barrel
until the balance of the fund equals $7 million. Upon such certification to the secretary, the
fee shall revert to the standard fee provided for in proposed law.
Present law provides for a process by which it shall be determined whether or not the fee is
to be levied based on the balance of the fund, when the fund balance reaches $7 million, the
fee is suspended and when the balance falls below $5 million, the fee is reinstated. Proposed
law removes this process.
(Amends R.S. 30:2483(E), 2484, and 2485; Adds R.S. 30:2454(32); Repeals R.S. 30:2486
and 2487)