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.
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)