Signed by Governor Jeff Landry

Vote Smart's Synopsis:

Vote to amend and pass a bill that amends the organization of the Department of Energy and Natural Resources and the Department of Conservation in Louisiana.

Highlights:

• Amends the establishment clause of the Department of Conservation to rename it as the Department of Conservation and Energy (Sec. 1).

• Establishes the position of secretary within the Department, and transfers the powers of the commissioner to the secretary position (Sec. 1).

• Requires the Department of Conservation and Energy to establish a procedure for expedited processing of permits, permit modifications, licenses, registrations, plans, proposals, exceptions, or variances (Sec. 1).

• Establishes the Natural Resources Financial Security Fund in the state treasury to support the Department’s administration, management, and response to financial obligations related to oil and gas, injection and mining, surface mining, solar, wind, or any other natural resource/energy related regulatory program (Sec. 1).

• Specifies that the Fund will consist of the following monetary sources (Sec. 1):

• Annual payments, premiums, or fees collected from participants of financial security programs administered by the Natural Resources Trust Authority;

• Appropriations, donations, grants, or other sources received specifically for the fund; and

• Investment earnings on monies in the Fund.

• Specifies that the Fund may only be used for the following purposes (Sec. 1):

• To restore regulated sites for which financial security payments have been collected by the Department;

• To provide a financial backstop for unfunded regulatory obligations;

• To cover administrative and program costs associated with risk assessment, compliance monitoring, rulemaking, legal services, actuarial evaluations, reporting, and other processes of financial security;

• To reimburse the Oilfield Site Restoration Fund for plugging or remediation; and

• To supplement the Mineral and Energy Operations Fund for general approved purposes.

• Repeals the requirement for the state treasurer to transfer $30 million from the first federal funds received by the state to the Oilfield Site Restoration Fund (Sec. 1).

• Expands authorized uses of the Oilfield Site Restoration Fund to include all expenditures consistent with a site restoration contribution agreement (Sec. 1).

• Specifies that federal appropriations for the purpose of restoring orphan oilfield sites may only be used for that purpose, including the plugging of orphan wells (Sec. 1).

• Requires the secretary of the Department to agree to certain levels of monetary or other contribution toward the cost of restoring an orphaned oilfield site by a party who has operated on the site in order to satisfy their contribution agreement (Sec. 1).

• Authorizes the Department to establish a comprehensive water resource management program, based on sound science and economics, to support the long-term sustainability of the state’s water resources and ecological welfare (Sec. 1).

• Requires the Department to develop a comprehensive statewide water resource management plan to address current and future water demands, conservation strategies, infrastructure needs, environmental impacts, and sustainable water management practices (Sec. 1).

• Authorizes the secretary to issue a certificate of public convenience and necessity to a transporter of carbon dioxide via common carrier pipeline (Sec. 1).

• Authorizes parties found legally responsible for environmental damage associated with oilfield sites or exploration and production sites to directly pay for the cost of implementing the most feasible plan for remediation in lieu of court costs (Sec. 2).

• Specifies that parties found legally responsible for environmental damage will be absolved of attorney fees and other court costs once the most feasible plan for remediation is adopted (Sec. 2).

• Establishes the Natural Resources Commission within the Department of Conservation and Energy which must do the following (Sec. 4):

• Serve as the primary coordination body for water management planning and statewide flood protection;

• Develop a process for agencies to coordinate intergovernmental responses;

• Develop a process for responding to and prioritizing legislative study requests;

• Engage legislative auditors for staffing matters and review of the executive branch; and

• Develop a process to identify, review, receive, clarify, and act on matters of agency overlap.

• Authorizes the secretary to establish a formal certification process to recognize academic and research institutions with expertise in areas such as energy technologies, natural resources management, environmental stewardship, resource economics, and other strategically significant fields related to the mission of the Department (Sec. 4).

• Authorizes the secretary to do the following for the purpose of streamlining and modernizing the operations of the Department (Sec. 4):

• Reorganize, consolidate, create, merge, or abolish divisions, offices, bureaus, sections, or other administrative units within the Department; and

• Delegate any function or duty to any subordinate officer or employee within the Department.

• Establishes a deputy secretary position to oversee the office of natural resources commission and perform other duties delegated by the secretary (Sec. 4).

• Authorizes the undersecretary of the Department to develop and enforce policies and procedures for the prevention of fraud, waste, and abuse by performing audits (Sec. 4).

Full Bill Text