§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
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§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 energy production, including but not limited to oil and gas activity, wind
energy, solar energy, tidal energy, wave energy, geothermal energy, and other alternative or
renewable energy production or sources, 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 energy production 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
energy production 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 energy production.
(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 energy production 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 energy production 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 and state revenues as provided in Subsection K 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.
K.(1) Subject to Article VII, Sections 9(B) and 10.1 of the Constitution of Louisiana,
in each fiscal year, the revenues that are received by the state generated upon state lands or
waterbottoms located in the coastal area from alternative or renewable energy production or
sources, including but not limited to wind energy, solar energy, tidal energy, wave energy,
and geothermal energy, shall be deposited and credited by the treasurer to the Coastal
Protection and Restoration Fund.
(2) Such 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 revenues received by the state
generated upon state lands or waterbottoms located in the coastal area from alternative or
renewable energy production or sources, including but not limited to wind energy, solar
energy, tidal energy, wave energy, and geothermal energy, may be used for the purposes of
infrastructure directly impacted by coastal wetlands losses.