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ACT No. 394
Regular Session, 2013
HOUSE BILL NO. 636
BY REPRESENTATIVE DANAHAY
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
appropriated by the legislature shall be credited to a special fund hereby created in20
the state treasury to be known as the "Oil Spill Contingency Fund". The monies in21
this fund shall be used solely as provided in this Section Part and only in the amounts22
appropriated by the legislature. All unexpended and unencumbered monies in this23
fund at the end of the fiscal year shall remain in the fund. The monies in this fund24 ENROLLEDHB NO. 636
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shall be invested by the state treasurer in the same manner as monies in the state1
general fund, and interest earned on the investment of these monies shall remain in2
the fund. Except as otherwise provided in this Section, the balance of the fund shall3
not exceed thirty million dollars, exclusive of all fees, other than all fees collected4
pursuant to R.S. 30:2485 and 2486, penalties, judgments, reimbursements, charges,5
interest, and federal funds collected pursuant to the provisions of this Chapter. As6
authorized by Article VII, Section 10.7(C) of the Constitution of Louisiana, the7
amount of monies in the fund shall not be limited to thirty million dollars during a8
declared state of emergency or disaster caused by an unauthorized discharge of oil.9
§2484. Uses of fund 10
A. Money in the fund may be disbursed for the following purposes and no11
others: 12
(1) Administrative and personnel expenses of the office of the coordinator,13
excluding those of the oil spill technical assistance program, not to exceed six14
hundred thousand dollars in any fiscal year; except that during a declared state of15
emergency or disaster caused by an unauthorized discharge of oil, more than six16
hundred thousand dollars in a fiscal year may be disbursed from the fund after17
approval of the commissioner of administration and the Joint Legislative Committee18
on the Budget. 19
(2) Removal costs related to abatement and containment of actual or20
threatened unauthorized discharges of oil incidental to unauthorized discharges of21
hazardous substances. 22
(3) Removal costs and damages related to actual or threatened unauthorized23
discharges of oil as provided in this Chapter. 24
(4) Protection, assessment, restoration, rehabilitation, or replacement of or25
mitigation of damage to natural resources damaged by an unauthorized discharge of26
oil as provided in this Chapter. 27
(5) Grants, with the approval of the interagency council, for interagency28
contracts as provided in R.S. 30:2495, not to exceed seven hundred fifty thousand29
dollars in any fiscal year. Of the total amount of grants awarded in any fiscal year,30 ENROLLEDHB NO. 636
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one hundred thousand dollars shall be made available for including grants1
specifically for the purposes of research, testing, and development of discharge and2
blowout prevention and training using full scale well service training. 3
(6) Beginning in Fiscal Year 96-97 and each fiscal year thereafter until4
Fiscal Year 1999-2000, the monies expended from the fund for the The Oil Spill5
Technical Assistance Program established in R.S. 30:2480(C)(4) shall be increased6
by one hundred thousand dollars each fiscal year whereupon funding for the Oil Spill7
Technical Assistance Program shall reach five hundred thousand dollars during8
Fiscal Year 2000-2001. 9
(7) Operating costs and contracts for response and prevention as provided10
in this Chapter, excluding operating costs and contracts where indicated of the oil11
spill technical assistance program, not to exceed six hundred thousand dollars in any12
fiscal year; except that during a declared state of emergency or disaster caused by an13
unauthorized discharge of oil, more than six hundred thousand dollars in a fiscal year14
may be disbursed from the fund after approval of the commissioner of administration15
and the Joint Legislative Committee on the Budget. 16
(8) Other costs and damages authorized by this Chapter. 17
(9) B. Any state agency or political subdivision seeking an appropriation18
from the fund or proposing expenditures utilizing money from the fund must notify19
the coordinator in writing before submitting the appropriation request to the20
legislature. 21
(10) An inventory under R.S. 30:2480, to be completed by July 1, 2001, in22
an amount not to exceed five million five hundred fifty thousand dollars in total. 23
B. Funds paid to the office of the oil spill coordinator as cost recoveries from24
responsible parties, the Oil Spill Contingency Fund, or the federal Oil Spill Liability25
Trust Fund, shall not be included in the amounts provided for in Paragraphs (1) and26
(7) of Subsection A. Such cost recoveries and other funds may be used to27
supplement the activities normally funded under those Paragraphs beyond the set28
limits provided therein. 29 ENROLLEDHB NO. 636
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§2485. Oil spill contingency fee 1
A. There is hereby imposed a fee of one-quarter of one cent per barrel on2
every person owning crude oil received by a refinery for storage or processing. The3
person charged with the fee shall be the last owner of the crude oil prior to its4
transfer to the refinery or storage facility. in a vessel at the time such crude oil is5
transferred to or from a vessel at a marine terminal within the state of Louisiana.6
This fee is shall be in addition to all taxes or other fees levied on crude oil and the7
monies collected shall be placed in the Oil Spill Contingency Fund as provided in8
R.S. 30:2483. 9
B. The operator of the marine terminal refinery shall collect the fee from the10
owner of the crude oil and remit the fee to the secretary. The fee shall be imposed11
only once on the same crude oil. The fee shall be paid quarterly by the last day of12
the month following the calendar quarter in which liability for the fee is incurred. 13
Fees collected during a quarter must be remitted to the state even if the fee is14
suspended during that quarter. For the expenses of collecting this fee, the operator15
of the refinery is authorized to withhold one and one-half percent of the fees16
collected due during each quarter provided that the amount due was not delinquent17
at the time of payment. 18
C. Notwithstanding the provisions of Subsection A of this Section, the fee19
shall be levied at the rate of one-half cent per barrel if the coordinator certifies to the20
secretary of the Department of Revenue a written finding that the balance in the fund21
is less than five million dollars and that an unauthorized discharge of oil in excess22
of one hundred thousand gallons has occurred within the previous twelve months as23
certified by the coordinator. In addition, the fee shall be levied at the rate of one-half24
cent per barrel if the coordinator certifies in writing to the secretary of the25
Department of Revenue that the balance in the fund is less than five million dollars26
due to expenditures from the fund under the authority of R.S. 30:2484(A)(1) or (2)27
or (3) or (4) or (7) so long as the expenditures under the authority of R.S.28
30:2484(A)(1) and (7) are for costs and contracts exclusive of administrative costs29
of the office of the coordinator.30 ENROLLEDHB NO. 636
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D. In the event of a certification to the secretary under Subsection C of this1
Section, the secretary shall collect the fee at the rate of one-half cent per barrel until2
the balance in the fund reaches seven million dollars. The state treasurer shall certify3
to the secretary the date on which the balance in the fund equals seven million4
dollars. Upon such certification to the secretary, the fee shall revert to the standard5
fee delineated in R.S. 30:2485(A).6
E. The fee levied by this Part shall be subject to the provisions of Chapter7
18 of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950. The8
coordinator in conjunction with the secretary shall adopt rules for the collection and9
administration of the fee provided for in this Section. 10
Section 2. R.S. 30:2486 and 2487 are hereby repealed in their entirety.11
Section 3. Notwithstanding any other provision of law to the contrary, the fee levied12
by the provisions of R.S. 30:2485 shall be levied at the rate of one-half cent per barrel until13
December 31, 2015.14
Section 4. A. The Oil Spill Interagency Council, established in R.S. 30:2458, shall15
conduct a study of the Oil Spill Contingency Fund, its uses, revenues, and expenditures. The16
study shall include an assessment of the adequacy of the existing fee structure; identification17
of entities that might have the potential to create an oil spill that are currently not paying into18
the fund; an assessment of the levels of oil spill risk associated with various oil activities19
including exploration, production, and transportation activities; consideration of any20
disparity in the payment of fees that may exist; evaluation of the implications of an21
automatic adjustment to the fee based on the consumer price index; an appraisal of the22
future funding needs of the state of Louisiana to properly represent the state's interests23
related to the Deepwater Horizon disaster; a review of oil spill funding mechanisms24
employed by other countries, states, and political subdivisions; and an examination of other25
relevant issues as determined by the council.26
B. Not later than January 31, 2014, the council, acting through the oil spill27
coordinator, shall provide a report to the House Committee on Appropriations and the House28
Committee on Natural Resources and Environment and the Senate Committee on Finance29
and the Senate Committee on Natural Resources. The report shall include the council's30 ENROLLEDHB NO. 636
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findings and recommendations for possible modifications to the fee structure and mechanism1
of the Oil Spill Contingency Fund including recommendations for a fee mechanism and2
structure that fairly balances oil spill risks and potential oil spill implications with fee3
payments; a broad-based fee structure that includes payment by all potential sources of oil4
spills affecting Louisiana; a funding mechanism that achieves fund solvency without drastic5
fee increases beyond 2013 levels; consideration of an automatic fee adjustment for inflation;6
and appropriate funding for authorized uses through the Deepwater Horizon disaster. 7
Section 5. The provisions of Sections 4 and 5 of this Act shall become effective8
upon signature by the governor or lapse of time for gubernatorial action. The provisions of9
Sections 1, 2, and 3 of this Act shall become effective on July 1, 2014.10
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: