Texas House Bill HB4667

Texas 2009 - 81st Regular

Caption

Relating to the amount and use of the coastal protection fee.

Impact

The adjustments made under HB4667 notably revise the fee structure, establishing a fixed rate of 25 cents per barrel for the relevant products. This change is designed to bolster the financial resources allocated to coastal protection efforts, which are essential for maintaining the integrity of Texas's coastal areas. The bill also establishes a threshold at which the fee collection will cease, pending the unencumbered balance in the fund reaching $20 million, thereby providing a clear financial framework for stakeholders involved.

Summary

House Bill 4667 focuses on the imposition and management of a coastal protection fee in Texas. The bill amends existing provisions within the Natural Resources Code that govern fees assessed on crude oil, petroleum products, and liquefied natural gas when transferred at marine terminals. The intent of the legislation is to ensure adequate funding for coastal protection initiatives while refining the mechanisms for fee collection and management by state authorities.

Contention

Debate surrounding HB4667 centers on its economic implications and the potential impacts on the local oil and gas industry. Proponents argue that stabilizing the fee at a fixed rate will provide predictability for businesses involved in the offshore transfer of these products, ensuring that coastal preservation efforts are consistently funded. Conversely, critics express concerns that imposing a new fee could burden the industry, particularly at a time when fluctuations in oil prices can significantly affect profit margins.