Louisiana § RS 30:21.1 - Natural Resources Financial Security Fund

§ RS 30:21.1. Natural Resources Financial Security Fund

            A.(1) There is hereby created, in the state treasury, a special fund to be known as the Natural Resources Financial Security Fund, hereinafter referred to as the "fund". The fund shall be used exclusively to support the Department of Conservation and Energy in administering, managing, and responding to financial security obligations related to oil and gas, injection and mining, surface mining, solar, wind, or any other natural resource or energy-related regulatory program for which financial security or financial assurance are required by law or regulation.

            (2) Out of the funds remaining in the Bond Security and Redemption Fund, after a sufficient amount is allocated from that fund to pay all the obligations secured by the full faith and credit of the state that become due and payable within each fiscal year, the treasurer shall pay into Natural Resources Financial Security Fund an amount equal to the revenues generated from collection of the payments provided for in Subsection C of the Section.

            (3) The funds received shall be placed in the Natural Resources Financial Security Fund in the custody of the state treasurer to be used only in accordance with this Part and shall not be placed in the general fund. The funds provided to the trust authority pursuant to this Section shall at all times be and remain the property of the trust authority. The monies in this fund shall be used solely as provided in this Section and only in the amount appropriated by the legislature. All unexpended and unencumbered monies remaining in this fund at the end of the fiscal year shall remain in the fund. Except for the pledge of the revenues provided in R.S. 30:83.1, it is the intent of the legislature that this fund and its increments shall remain intact and inviolate. Monies in the fund shall be invested by the state treasurer in the same manner as monies in the state general fund. At the request of the Natural Resources Trust Authority, the state treasurer may invest monies in the fund, or any portion thereof, in accordance with the provisions of R.S. 33:2955, including the use of the Louisiana Asset Management Pool, and any interest earned on such investments shall be credited to the fund.

            B. The fund shall be administered by the Natural Resources Trust Authority in consultation with the Mineral and Energy Board.

            C. The fund shall consist of:

            (1) Annual payments, premiums, or fees collected from operators participating in financial security programs administered by the Natural Resources Trust Authority.

            (2) Appropriations, donations, grants, or other public or private sources received for the purposes of the fund.

            (3) Investment earnings on monies in the fund.

            (4) Any other funds lawfully designated for deposit into the fund.

            D. Monies in the fund shall be used solely for the following purposes:

            (1) To restore regulated sites for which financial security payments have been collected under programs administered by the department.

            (2) To provide a financial backstop for unfunded or underfunded regulatory obligations related to covered operators.

            (3) To cover custodial services, investment, and disbursement costs directly attributable to the investment of the fund and administrative and program costs associated with managing financial security instruments, including but not limited to risk assessment, compliance monitoring, rulemaking, legal services, actuarial evaluations, and reporting.

            (4) Upon certification by the Natural Resources Trust Authority that plugging or remediation has occurred for a site covered for which the department has collected financial security, the state treasurer is authorized and directed to transfer from the Natural Resources Financial Security Fund to the Oilfield Site Restoration Fund the amount necessary to reimburse related expenditures.

            (5) Upon request by the Natural Resources Trust Authority and with the approval of the Mineral and Energy Board, the state treasurer is hereby authorized and directed to transfer from the Natural Resources Financial Security Fund to the Mineral and Energy Operations Fund such amounts as are approved by the board and deemed necessary to implement any purpose for which monies in the Mineral and Operations Fund may be used, subject to the availability of funds and in accordance with applicable law.

            E. By July 1, 2026, excluding the proceeds from the oilfield site restoration fees collected pursuant to R.S. 30:87 and any interest thereon, all cash deposits held or managed under the Oilfield Site Restoration Fund pursuant to R.S. 30:86 or any related provision, shall be transferred to and administered under the Natural Resources Financial Security Fund. The Natural Resources Trust Authority, in consultation with the state treasurer, shall implement the transfer, including the transfer of associated records, in a manner that preserves financial integrity and ensures continuity of obligations.

            Acts 2025, No. 458, §1, eff. Oct. 1, 2025.