RS 214.5.4 - Funding and resource allocation
A. To provide a dedicated, recurring source of revenue for the development and implementation of a program to protect and restore Louisiana's coastal area, there is hereby established in the state treasury the Coastal Protection and Restoration Fund.
B. Of all mineral revenues received in each fiscal year by the state including those received as a result of the production of or exploration for minerals, hereinafter referred to as mineral revenues from severance taxes, royalty payments, bonus payments, or rentals, and excluding federal revenues received as provided in Subsection E of this Section and such revenues received by the state as a result of grants or donations when the terms or conditions thereof require otherwise, the treasurer shall make the following allocations:
(1) To the Bond Security and Redemption Fund as provided in Article VII, Section 9(B) of the Constitution of Louisiana.
(2) To the political subdivisions of the state as provided in Article VII, Sections 4(D) and (E) of the Constitution of Louisiana.
(3) As provided by the requirements of Article VII, Sections 10-A and 10.1 of the Constitution of Louisiana.
C. After making the allocations provided for in Subsection B of this Section, the treasurer shall then deposit in and credit to the Coastal Protection and Restoration Fund any amount of mineral revenues that may be necessary to ensure that a total of five million dollars is deposited into such fund for the fiscal year from this source; provided that the balance of the fund which consists of mineral revenues from severance taxes, royalty payments, bonus payments, or rentals shall not exceed the amount provided in Subsection F of this Section.
D. After making the allocations and deposits as provided for in Subsections B and C of this Section, the treasurer shall deposit in and credit to the fund as follows:
(1) Two percent of the mineral revenues received in excess of the allocations provided for in Subsections B and C of this Section. The treasurer shall reduce the deposit made pursuant to this Paragraph by the amount of deposits made pursuant to Paragraphs (2) and (3) of this Subsection.
(2) Ten million dollars of the mineral revenues in excess of six hundred million dollars which remain after the allocations provided for in Subsection B of this Section are made by the treasurer.
(3) Ten million dollars of the mineral revenues in excess of six hundred fifty million dollars which remain after the allocations provided in Subsection B of this Section are made by the treasurer.
E.(1) Subject to Article VII, Sections 9(B) and 10.1 of the Constitution of Louisiana, in each fiscal year, the federal revenues that are received by the state generated from Outer Continental Shelf oil and gas activity and eligible, as provided by federal law, to be used for the purposes provided in this Subsection shall be deposited and credited by the treasurer to the Coastal Protection and Restoration Fund.
(2) Such federal revenues shall be used only for the purposes of integrated coastal protection, including but not limited to coastal wetlands conservation, coastal restoration, hurricane protection, or for infrastructure directly impacted by coastal wetlands losses.
(3) In each year, no more than ten percent of the federal revenues received by the state generated from Outer Continental Shelf oil and gas activity may be used for the purposes of infrastructure directly impacted by coastal wetlands losses.
(4) In each fiscal year, at least two hundred thousand dollars but no more than seven percent of the federal revenues received by the state generated from Outer Continental Shelf oil and gas activity may be used for administrative costs or fees. The provisions of this Paragraph shall not apply to the following:
(a) Any revenues received by the state pursuant to 43 U.S.C. 1337(g), also known as "8(g)" funds.
(b) Any securitization or other monetizing of all or any portion of the federal revenues received by the state generated from Outer Continental Shelf oil and gas activity.
(c) Any monies received by the state for reimbursement of costs in response to the Deepwater Horizon oil spill.
(5)(a) Beginning with Fiscal Year 2022, a portion of the total federal revenues received by the state generated from Outer Continental Shelf oil and gas activity shall be allocated solely for hurricane protection projects, including operation and maintenance, that are included in or consistent with the master plan as follows:
(i) For Fiscal Years 2022 through 2024, a minimum of forty percent.
(ii) For Fiscal Years 2025 through 2027, a minimum of forty-five percent.
(iii) For Fiscal Year 2028 and subsequent fiscal years, a minimum of fifty percent.
(b) If the total federal revenues received by the state generated from Outer Continental Shelf oil and gas activity are less than one hundred million dollars in any fiscal year, then the minimum allocations contained in Subparagraph (a) of this Paragraph shall not apply.
(c) The authority may offset the funds allocated for hurricane protection projects as provided in Subparagraph (a) of this Paragraph with funds from other available sources.
(d) In the event the authority is unable to meet the allocations as provided in Subparagraph (a) of this Paragraph in any fiscal year, the authority may modify the allocation for that fiscal year. No modification shall be made without prior approval of the board and the Joint Legislative Committee on the Budget.
(e) Any revenues received by the state as provided in this Paragraph and allocated to a levee district shall only be utilized by a levee district for construction, and operations and maintenance of hurricane protection projects.
F. The money in the fund shall be invested as provided by law and any earnings realized on investment of money in the fund shall be deposited in and credited to the fund. Revenues derived from integrated coastal protection programs, projects, or activities shall be deposited in and credited to the fund. Money from other sources, such as donations, appropriations, or dedications, may be deposited in and credited to the fund; however, the balance of the fund which, exclusive of federal revenues received as provided for in Subsection E of this Section, consists of mineral revenues from severance taxes, royalty payments, bonus payments, or rentals shall not exceed five hundred million dollars. Any unexpended money remaining in the fund at the end of the fiscal year shall be retained in the fund.
G. The money in the Coastal Protection and Restoration Fund is subject to appropriations by the legislature for the purposes of integrated coastal protection. The money in the fund may be used only for those projects and programs which are consistent with the statement of intent, R.S. 49:214.1, and the annual plan as it pertains to the integrated coastal protection and may include but not be limited to the following purposes:
(1) Projects and structures engineered for the enhancement, creation, or restoration of coastal wetlands.
(2) Match for federal or local project planning, design, construction, and monitoring.
(3) Administration and project management, planning, design, construction, and monitoring.
(4) Operation and maintenance of structural projects consistent with the purpose of this fund.
(5) Vegetation planting, seeding, or other revegetation methods.
(6) Planning and implementation of modifications to federal, state, or local flood control, navigation, irrigation, or enhancement projects.
(7) For coastal wetlands conservation, coastal restoration, coastal zone management, hurricane protection, and infrastructure directly impacted by coastal wetlands losses.
(8) The administration and operation of the Coastal Protection and Restoration Authority, the Coastal Protection and Restoration Authority Board, the Governor's Advisory Commission on Coastal Protection, Restoration, and Conservation, and the Coastal Protection and Restoration Financing Corporation.
(9) Projects and programs promoting scientific, technical, and engineering advancements for the sustainability of coastal Louisiana and ensuring that the best available scientific and technical information and tools are available for the implementation of the master plan and annual plan.
(10) Payment of debt service or other payment obligations required in connection with bonds or other debt obligations of the Coastal Protection and Restoration Authority.
H. As used in this Section, the term "balance of the fund" shall mean those monies in the fund which have not been expended or obligated under the plan approved pursuant to R.S. 49:214.5.3, or otherwise obligated in accordance with law.
I.(1) Any monies received by the state for violations pursuant to section 311 of the Federal Water Pollution Control Act, 33 U.S.C. 1321; R.S. 30:2025(E)(1) and (2); and R.S. 30:2001 et seq., including R.S. 30:2071 et seq., associated with the Deepwater Horizon oil spill that began on April 20, 2010, shall be deposited and credited by the treasurer to the Coastal Protection and Restoration Fund for integrated coastal protection efforts, including coastal restoration, hurricane protection, and improving the resiliency of the Louisiana Coastal Area affected by the Deepwater Horizon oil spill.
(2) Nothing in this Subsection shall be construed as affecting funds associated with the Natural Resources Damage Assessment process.
J. The authority is authorized to create one or more construction or project funds within the Coastal Protection and Restoration Fund, into which may be deposited the proceeds of any bonds or other debt obligations of the authority. Such construction or project funds may be maintained by the authority or any fiduciary appointed in connection with the authority only for the purpose or purposes for which such bonds or other debt obligations are issued. Funds held in any such construction or project fund shall not be subject to the other requirements of this Section.
Acts 2009, No. 523, §3, eff. July 10, 2009; Acts 2010, No. 964, §1; Acts 2012, No. 604, §3, eff. June 7, 2012; Acts 2012, No. 805, §1, eff. June 13, 2012; Acts 2017, No. 405, §1, eff. July 1, 2017; Acts 2020, No. 89, §2.