LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 934 HLS 24RS 1617
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 2, 2024 6:34 PM Author: LACOMBE
Dept./Agy.: Energy & Natural Resources, Wildlife & Fisheries
Subject: Allocation/Dedication of Sequestration Revenues Analyst: Benjamin Vincent
ENERGY/CONSERVATION EN SEE FISC NOTE SD RV See Note Page 1 of 1
Provides for the dedication of revenue from carbon dioxide sequestration on state lands and water bottoms
Current law generally allocates revenues from storage of carbon dioxide as follows: 30% to the Mineral & Energy Operations
Fund (M&EO), 30% to the governing authority of the parish located in the specific area of interest, and 40% to the state
general fund. Certain projects that qualify as “owned” by WLF are not allocated according to the same 30/30/40 distribution,
and are fully dedicated to the Conservation Fund.
Proposed law requires revenues from such projects that are beneath certain properties owned by, managed by, or under the
jurisdiction of the Department of Wildlife & Fisheries (WLF) to be allocated as follows, where such allocations are not
prohibited by prior agreements: 30% to the governing authority of the parish located in the specific area of interest, and
70% to the Louisiana Wildlife & Fisheries Conservation Fund (”Conservation Fund”).
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other DECREASE DECREASE DECREASE DECREASE DECREASE
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds INCREASE INCREASE INCREASE INCREASE INCREASE
Annual Total
EXPENDITURE EXPLANATION
There is no anticipated direct material effect on governmental expenditures as a result of this measure, although reductions
in dedicated revenues to WLF may eventually require SGF support to maintain existing WLF expenditure levels. LFO notes
that Conservation Fund revenues are the means of finance for a significant portion of WLF expenditures, and that
maintaining WLF expenditures may require additional general fund support as a result of proposed law.
REVENUE EXPLANATION
Current law generally provides that for carbon dioxide storage projects, revenues from bonus payments, liquidated damages
payments, and injection payments are allocated as follows: 30% to parish authorities, 30% to the M&EO Fund, and 40% to
the state general fund. Current law additionally provides that certain projects on properties that qualify as “owned” or
managed by WLF are not allocated according to the same 30/30/40 distribution. Instead, 100% of such revenues are
generally dedicated to the Conservation Fund (except in the case of properties having existing conditions on revenue
allocations as a term of the property’s donation or lease).
For revenues that are fully dedicated to the Conservation Fund under current law, and not otherwise prohibited by prior
donation or lease agreement, proposed law allocates 30% to parish authorities, and the remaining 70% to the Conservation
Fund.
DENR and WLF report that some existing projects are currently allocating 100% of revenues to the Conservation Fund under
current law. Proposed law would reduce Conservation Fund revenues from 100% to 70% of amounts in current law, and
would increase revenues to parish authorities in these cases. LFO is awaiting detail on existing agreements for all such
revenues, however preliminary information from DENR and LWF indicate that proposed law would effectively redirect at
least $1.4M from the Conservation Fund into local funds in FY25, growing under plausible assumptions to as
much as $6.9M in some years by FY29.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Deborah Vivien
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} Chief Economist
or a Net Fee Decrease {S}


Statutes affected:
HB934 Original: 30:149(B), 30:2(B)
HB934 Engrossed: 30:149(B), 30:2(B)
HB934 Reengrossed: 30:149(B), 30:2(B)
HB934 Enrolled: 30:149(B), 30:2(B)
Conference Committee Report, #5181, House Adopted, Senate Adopted:
Conference Committee Report, #5181, House Proposed, Senate Proposed: