GREEN SHEET REDIGEST
HB 845 2020 Regular Session Dwight
WATERWAYS: Provides relative to the Calcasieu Ship Channel public-private
partnership
DIGEST
Proposed law defines "board" as the Calcasieu Ship Channel Funding Management Board.
Proposed law defines "Corps" as the U.S. Army Corps of Engineers.
Proposed law defines "DMMP" as the Dredged Material Management Plan dated Nov. 22,
2010, as adopted by the U.S. Army Corps of Engineers.
Proposed law defines "fund" as the Calcasieu River Fund which is a separate and distinct
fund kept and maintained by the Port of Lake Charles.
Proposed law defines "industry" as a fixed facility located on the Calcasieu Ship Channel
with a terminal having at least one vessel call utilizing a state-commissioned pilot.
Proposed law defines "non-federal sponsor" as the Lake Charles Harbor and Terminal
District acting on behalf of the state of Louisiana, as authorized by present law.
Proposed law defines "port" as the Lake Charles Harbor and Terminal District.
Proposed law defines "PPA" as the project partnership agreement between the Non-federal
sponsor and the U.S. Army Corps of Engineers dated April 20, 2015, which implemented the
Dredged Material Management Plan.
Proposed law defines "ship channel" as the Calcasieu Ship Channel, which may also be
referred to as the Calcasieu River and Pass Project.
Proposed law defines "vessel" as any watercraft utilizing a state-commissioned pilot to
navigate the Calcasieu Ship Channel, whether foreign or domestic.
Proposed law creates the Calcasieu Ship Channel Funding Management Board composed of
three members including the executive director of the Lake Charles Harbor and Terminal
District or his designee, the governor of the state of Louisiana or his designee, and a
representative from an entity with a facility located on the Ship Channel that contributes to
the fund and appointed by the La. Mid-Continent Oil and Gas Assoc.
Proposed law requires the board to elect a chairman to serve a term of one year and
authorizes the chairman to serve consecutive terms.
Proposed law limits the powers of the board to include determining how money from the
fund is used to pay the non-federal sponsor's cost share of the DMMP or non-federal
sponsor's costs under the PPA or as required by federal law or regulation including, but not
limited to, projects presented to the board for construction and any real estate acquisitions
as are necessary to implement the objectives of the DMMP.
Proposed law specifies that the board members must serve without compensation.
Proposed law requires, for the 2020-2021 Fiscal Year, that certain entities operating a facility
on the Calcasieu Ship Channel and receiving vessels contribute to the Calcasieu River Fund.
Proposed law provides that the calculation for each entity's contribution must be based on
the estimated number of ships expected at the facility for the year 2020 at a flat rate of $1,500
per vessel plus $84.50 per mile for each mile the facility is located from mile marker zero
as shown on sheet 27 of the U.S. Army Corps of Engineers hydrologic maps of the Calcasieu
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Prepared by Xavier Alexander.
Ship Channel. Proposed law specifies that the total amount of private investment must not
exceed $3,000,000. Proposed law requires that the Lake Charles Harbor and Terminal
District contribute $3,000,000 to the fund and the legislature contribute $3,000,000 to the
fund.
Proposed law provides that funding for each subsequent year must be contributed as follows:
(1) Industry must contribute $2,500,000 as provided in the cooperative endeavor
agreement. Industry must determine the number of working vessels anticipated to
arrive at its facility for the following year and submit that number to the Port of Lake
Charles by Nov. first of each year. Within 45 days, the Port of Lake Charles must
invoice each entity for their individual contribution considering a minimum per
vessel transit charge of $1,500 dollars, a variable mileage charge based on distance
from the facility to mile marker zero as approved by the board, and an adjustment
using a true-up mechanism by the board using actual vessel transit count compared
to the anticipated vessel transit count from the previous year.
(2) The Port of Lake Charles must contribute an amount equal to $2,500,000.
(3) The legislature may contribute $5,000,000 as provided in the cooperative endeavor
agreement entered into between the Port of Lake Charles, the state of La., and the
entities operating on the Ship Channel as represented by La. Mid-Continent Oil and
Gas Assoc.
Proposed law provides that if the variable mileage charge per vessel transit has been adjusted
to zero and the per vessel transit charge of $1,500 would exceed $2,500,000, the per vessel
transit charge shall be lowered to an amount that equates to $2,500,000.
Proposed law requires that industry determine the number of working vessels anticipated to
arrive at its facility for the following year and submit that number to the Port of Lake Charles
by Nov. first of every year. Proposed law requires that the Port of Lake Charles invoice each
entity for their individual contribution based on the formula provided in proposed law with
payment due on Jan. first of every year.
Proposed law authorizes the board to provide for an adjustment to the contribution of an
entity after the entity has submitted written proof that a significant difference exists between
the anticipated vessel count and the actual vessel count.
Proposed law specifies that in any month in which the net of committed expenditures in the
fund exceeds $20,000,000, the board must suspend all payments to the fund from the
contributing entities. Reinstatement of payments must occur by resolution after the balance
falls below $20,000,000.
Proposed law authorizes the board to promulgate rules and regulations as are necessary to
implement the provisions of proposed law.
Proposed law creates the Calcasieu Ship Channel Advisory Committee, which consists of
a group of stakeholders that will offer advice and counsel, and meet with the management
board quarterly to review funding plans and activities. Proposed law specifies that the
committee has no decision making authority.
Proposed law specifies that the members of the advisory committee will serve without
compensation and concurrently with the governor.
Proposed law provides that the advisory board must be composed of seven members as
follows:
(1) One member must be a representative of the U.S. Army Corps of Engineers.
(2) One member must be the port director of the Cameron Parish Port, Harbor and
Terminal District or his designee.
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(3) One member must be the executive director of the Lake Charles Harbor and Terminal
District or his designee.
(4) One member must be a state-commissioned river port pilot appointed by the
Associated Branch Pilots for the Port of Lake Charles.
(5) Three members must be appointed by the governor and represent separate facilities
that utilize the Calcasieu Ship Channel for commerce involving deep draft seagoing
vessels. One member must represent a facility on the Ship Channel in Cameron
Parish and two members must represent a facility on the Ship Channel in Calcasieu
Parish.
Proposed law specifies that the appointments by the governor are subject to Senate
confirmation.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 34:221-224)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Transportation,
Highways, and Public Works to the engrossed bill
1. Makes technical changes.
2. Make funds appropriated by the legislature permissive.
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Prepared by Xavier Alexander.