LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 167 SLS 21RS 403
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 9, 2021 10:34 AM Author: ALLAIN
Dept./Agy.: Treasury and Natural Resources
Subject: Transfer Funds from ARP to Oilfield Site Restoration Fund Analyst: Patrice Thomas
FUNDS/FUNDING EN NO IMPACT SD EX See Note Page 1 of 1
Provides for the transfer and use of funds from the American Rescue Plan Act to the Oilfield Site Restoration Fund. (gov sig)
Proposed law requires the state treasurer to transfer $30 million from the first funds received by the state from any Federal
funds for which oilfield site restoration or plugging orphan wells is an allowable use, as determined by the Joint Legislative
Committee on the Budget (JLCB). Proposed law provides any Federal appropriation or any Federal grant program for the
purpose of restoring orphan oilfield sites shall be placed into the Oilfield Site Restoration Fund and used for restoring orphan
oilfield sites. Proposed law provides a 5% administration cap on the Department of Natural Resources.
EXPENDITURES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other SEE BELOW SEE BELOW SEE BELOW SEE BELOW $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0
REVENUES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other SEE BELOW SEE BELOW SEE BELOW SEE BELOW $0 $0
Federal Funds SEE BELOW SEE BELOW SEE BELOW SEE BELOW $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0
EXPENDITURE EXPLANATION
Proposed law transfers $30 M from the first Federal funds received by the state for which oilfield site restoration or plugging
orphan wells is an allowable use to be deposited into the Oilfield Site Restoration Fund and requires the Joint Legislative
Committee on the Budget (JLCB) to determine whether the Federal funds can be used for restoring orphan wells.
Currently, the Oilfield Site Restoration program handles approximately $10 M annually with existing staff. The Department
of Natural Resources (DNR) reports a $30 M increase in funding would require additional administrative costs of
approximately $1.2 M (4% of $30 M) associated with workload increases of existing staff as well as contracting or
supplementing additional staff, such as hiring contractors, in order to complete larger volumes of paperwork, analyzing well
histories, issuing notices, and coordinating with contractors and operators to manage the additional projects.
REVENUE EXPLANATION
Proposed law will create no net change to revenue receipts for state or local governing entities. The proposed law directs
the first federal funds received by the state for which oilfield site restoration or plugging orphan wells is an allowable use to
be deposited into the Oilfield Site Restoration Fund statutory dedication. Absent the proposed law these monies may have
been appropriated as a Federal (Direct) revenue source. The monies will now be appropriated as a Statutorily Dedicated
source.
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}
13.5.2 >= $500,000 Annual Tax or Fee Alan M. Boxberger
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Staff Director


Statutes affected:
SB167 Original: 30:86(A)
SB167 Engrossed: 30:86(A)
SB167 Reengrossed: 30:86(A)
SB167 Enrolled: 30:86(A)
SB167 Act : 30:86(A)