July 13, 2007

This Fiscal Session provided many opportunities for energy conservation, coastal restoration, and small but significant encouragements to local governments to handle some environmental issues. LEAN also monitored bills that dealt with Coastal Restoration and issues relating to rebuilding Louisiana’s coastal wetlands, which were almost all funding related.  We also closely followed the bills that dealt with the Building Codes enacted in 2006, ready to protect the Energy Conservation section that was included. Several bills that dealt with Exploration and Production Wastes were filed as well as one dealing with   carbon dioxide pipelines. Many good Resolutions were passed as well dealing with a myriad of issues. In a Fiscal Session, Legislators are allowed to file up to five bills on matters unrelated to taxes and unlimited Local bills on any subject matter.  There is no limit on Resolutions.

VERY FEW BILLS IN THE ENERGY CONSERVATION REALM MADE IT THROUGH THE PROCESS.

There were more than a dozen bills filed dealing with the new building codes. Most would have significantly scaled back the new building requirements or do away with them altogether. Others would have given tax credits to those retrofitting or rebuilding to the new codes.  Most credits were left on the House Ways and Means Committee calendar.

SB240/ACT270 - Amedee which will push for more energy conservation construction in public buildings did pass. More ambitious bills, HB543/Barrow and one by Rep. Gray (HB548) both of which had LEED standards failed in committee. HB543 and HB548  were opposed by the Forestry Association and by the Vinyl Institute.  These two groups along with the Louisiana Chemical Association helped craft the Amedee bill which will not do as much to assure “green” construction as the Barrow bill. The environmental community was not a part of this process until the bills were heard in committee. LEAN supported all these  bills. HR97/Barrow asks the Commerce Committee to study construction under the LEED standards.

SB90/ACT 37 - N. Gautreaux passed in the very last minutes of the session by a strange confluence of events.  It will give a tax credit up to 50% of the first $25,000 cost of installation of solar or wind energy systems for a residential use starting in 2008.  If the tax credit exceeds the taxpayer’s tax liability, the balance is refundable to the filer. LEAN supported this bill.   Three amendments were added in Conference Committee:  rescinding the State Gift Tax starting in 2008; Inheritance Tax relief, and starting in 2008, tax relief from insurance premiums. We feared the Governor wouldn’t sign it but she finally did. This bill may encourage the strengthening of a start-up industry in the state.  Two other bills encouraging solar energy, HB885/Carter and HB933/Williams died in committee.

Only one bill that actually changed the language in the laws passed regarding Building Codes made it through the process, HB704/ACT334 - Pinac.  It seems to have satisfied all parties... including the Insurance industry which fought to keep the Codes intact.  There was one small change in the Energy Conservation section that lowered from R-8 to R-6 the insulation rating on ductwork. 

Another bill passed that will reduce insurance premiums for people who either build or retrofit in accordance with the new Building Codes. (HB558/ACT323 - Salter)   HB743/ACT110 -  White simply adopted later Energy Code editions (2004&2006) for commercial buildings.  LEAN closely monitored these bills.

HB187/ACT428-Pierre and Daniel  While its goal is laudable... reuse of carbon dioxide in manufacturing processes and enhanced recovery processes, it unfortunately allows the expropriation of property in Louisiana for pipelines to carry the gas to projects outside of Louisiana.  LEAN did not support this bill because of the expropriation feature.

Bills to encourage ethanol and other alternate fuel manufacture (HB551/Strain)(HB852/Daniel) died in committee. A bill that would have given a tax credit for purchase of hybrid vehicles (HB181-Richmond) died on the Senate calendar.  The bill had languished on the House Calendar and had been attached to SB313/Adley that dealt with vehicles reconfigured for the handicapped.  The Conference Committee report was adopted by the House but not the Senate and so both bills died.

OILFIELD WASTE

Given the new “push” by DEQ to allow some Oilfield Exploration and Production wastes into Type I landfills, LEAN was very cognizant of related legislation.

Two bills filed regarding Exploration and Production Wastes were very troubling. SB133/Adley would have allowed the “offsite beneficial use” of these materials to be spread on sites other than the production site (which is regulated by DNR).  HB337/Morrish “exempts motor carriers of nonhazardous oilfield waste from proving public convenience and necessity and certain taxation.”  This would have lessened PSC oversight on the haulers.  Both bills were involuntarily deferred in committee. It appeared that the Oil and Gas Industry did not back Sen.Adley’s bill and the truck drivers opposed Rep. Morrish’s bill... our good fortune.  LEAN did testify and send up cards in opposition. 

Another bill was converted into Mr. Morrish’s bill, but was not moved from the Senate calendar and was removed from the files of the legislature. (SB283/Fontenot)

DRILLING AND SALT DOMES

There were three bills that showed serious concern about punching holes through areas near and around Louisiana’s salt domes.  HB805/Baudoin and SB173/Chaisson were never scheduled to be heard.  HB617/Durand was heard in House Natural Resources at her insistence.  It was specific to Lake Peigneur and Jefferson Island.  There have been mysterious bubbling episodes at these locations. An extensive presentation was made and many people from the area did attend.  It was to no avail.  The bill failed to win a favorable vote in the committee.

COASTAL BILLS

Many good bills and resolutions were filed.  Only a few made it through.  There was money in the Administration’s supplemental funding bill for the Coastal Restoration Fund... $147.3 million, with 52.7 million for DOTD to use in hurricane protection projects. LEAN closely monitored this appropriation.  It was moved three times into different bills, finally coming to rest in HB 765/ACT203-Alario.   Supplemental funding (Waste Tire Fund $3.245 million and $8.552 million) for DEQ passed in HB615/ACT208-Alario.  Four other bills allocating money for Coastal Restoration did not move. (HB104 and HB255/Scalise)(HB620/Trahan) (HB811and HB812/Dove) SB76/Dupre that would have exempted payment of monies to the Dept. of Wildlife and Fisheries for dredged material used for coastal restoration projects also did not move. 

SB53/ACT249 - Dupre creates the Louisiana Coastal Protection and Restoration Financing Corporation that will act as a repository to accept money from various sources until the money is designated to some other fund for coastal restoration projects.  It may also issue bonds.  

****SB146/Dupre creates the Windfall of Highway, Infrastructure and Protection (WHIP) Fund.  It initially required the deposit in the fund of 50% of mineral revenues in excess of the amount required to be deposited in the Budget Stabilization Fund excluding the Outer Continental Shelf revenues, dedicated to certain infrastructure, hurricane protection, and coastal restoration projects.  As the bill cleared Conference Committee and was sent to the Governor, the numbers apportioning the money changed.  In the new bill, a very complex formula is presented. As of this report, the Governor has not yet signed the bill. SB146/Dupre has been vetoed by the Governor.

SCR11/Dupre/Rep.Pitre approves the CPRA Comprehensive Master Plan for Coastal Protection.  SCR12/Dupre approves the CPRA annual Coastal Protection Plan for Fiscal Year 2007-2008.

SCR34/B.Gautreaux and Dupre is an urge and request to agencies to consider using slurry pipelines to accelerate coastal restoration. 

WASTE AND LITTER

Sen. Duplessis bill (SB166) to prohibit solid waste landfills in New Orleans east failed in Senate    Committee.  LEAN testified on behalf of an amended bill that restricted municipal solid waste landfills in this area.  A large contingent of citizens from Waggaman came to protest because the River Birch landfill, which is located in their community, has been accepting New Orleans waste.  They want less waste at River Birch and protested eliminating future sites in New Orleans.

HCR56/Badon requests all agencies of LA government not to allow a landfill at the intersection of Bayou Bienvenue and the MRGO.

HB378/ACT149 - Baldone creates an “Adopt a Water Body” program similar to one in place for roads and highways.  It will be under DOTD.

HB430/ ACT233- Burns will impose further requirements on covering garbage truck loads.

Sen. B. Gautreaux had a bill (SB288) that would “create regional litter abatement study groups to evaluate the state’s litter laws, rules and regulations.”  It met its untimely demise in the House Environment committee.  The director of the Keep Louisiana Beautiful organization testified against it and the committee seemed predisposed to vote to defer.  Sen. Gautreaux voluntarily deferred the bill with some distress.  One dollar of everyone’s drivers license renewals/fees is allocated to the Office of Environmental Education in the Executive office... about $800,000 per year (HB407/ACT190-K.Carter (renewal).

LOCAL GOVERNMENT EMPOWERMENT

The legislature gave local governments a little additional power over their own areas this session.  Since Police Juries come under state laws and DEQ has primary responsibility for some environmental sectors, bills must be passed to allow local government to handle their problems if DEQ will not step up. 

One such instance is HB758/ACT340 - Montgomery concerning odors that are disrupting downtown Shreveport.  His bill enables the local government to enact and enforce local odor ordinances in a very narrow set of circumstances.  It was a small, hard won victory for the Shreveport area that LEAN assisted in passing.

HB718/ACT238 - Baylor “authorizes any mayor and any police chief of a municipality to petition for an injunction or order of abatement of a nuisance.”  This provision already allows certain parish authorities to do the same, all at no court costs to the government and both include a provision “for any 10 residents of the election precinct wherein any nuisance described in this Subpart exists.”

BROWNFIELDS

Legislation to encourage the cleanup of contaminated sites by increasing the percentage of tax credit for the cleanup and making the credits transferable was passed. LEAN supported SB339/ACT392 - Fontenot. Getting these sites cleaned up is important to the health of citizens in the vicinity of the site. The site can then be used for office or manufacturing purposes, both of which can revitalize a depressed neighborhood.

OTHER RESOLUTIONS FILED WITH THE SECRETARY OF STATE - LEAN SUPPORTED

SCR49/ N. Gautreaux “To urge and request the federal Department of Interior, U.S, Fish and Wildlife Serve to reestablish migratory and nonmigratory flocks of the endangered whooping crane in Louisiana.” ....Historically, both migratory and nonmigratory flocks inhabited the coastal marshes of southwest Louisiana, including a migratory flock that wintered on the Louisiana coast and a nonmigratory flock that inhabited the wetlands near White Lake in Vermillion Parish.

SCR94/McPherson  Requests the Department of Natural Resources to study the establishment of a state coastal land trust to acquire, accept and manage coastal lands consistent with the state’s coastal protection and restoration plan....

SR146/Jackson “Request the Senate Health and Welfare Committee to study current status of chronic disease of asthma in Louisiana.”

HCR67/Odinet Memorializes the U.S. Congress to take such actions as are necessary to expedite the repair and rebuilding of the St. Bernard Parish levee system by all appropriate federal agencies and to immediately close the Mississippi River Gulf Outlet.

HCR79/Farrar “To urge and request the commissioner of conservation to require public water systems to conduct periodic water loss audits.” ...performance of water audits by public water systems would prevent waste of water resources and greatly enhance the evaluation of both water demands and any conservation program implemented by the commissioner.

HCR80/Pitre “To memorialize the U.S. Congress, the president of the United States, and Mississippi River/Gulf of Mexico Watershed Nutrient Task Force to fulfill their commitments to address the problem of Hypoxia in the Gulf of Mexico.”