SENATE BILL NO. 1072
BY SENATORS JORDAN, DECUIR, GREENE, PICARD,
ULLO, NUNEZ, BAGNERIS, BANKSTON, BEAN,
BRINKHAUS, COX, CRAIN, CRAVINS, FOSTER,
HEITMEIER, HOLLIS, JOHNSON, KELLY, LAURI-
CELLA, TARVER, AND CROSS AND REPRESENTA-
TIVES ARMSTRONG, DIXON, ELLINGTON, HIGGINBOTHAM, HOLDEN, HOPKINS, MCCLEARY,
REILLY, ROACH, STELLY, $TINE, TRAVIS, WES-
TON, AND HOLDEN

AN ACT

To enact Part VI of Chapter 7 of Title 30 of the Louisiana Revised Statutes of 1950 to be comprised of R.S. 30:650 through 656, and R.S. 36:359(G), relative to natural gas Markets; to create the Louisiana Natural Gas Marketing Commission within the Department of Natural Resources; and to provide for related matters.

Be it enacted by the Legislature of Louisiana:

Section 1. Part VI of Chapter 7 of Title 30 of the Louisiana Revised Statutes of 1950, comprised of R.S. 30:650 through 656, is hereby enacted to read as follows:

PART VI. LOUISIANA
NATURAL GAS MARKETING COMMISSION

§650. Purpose

A. The natural gas industry in Louisiana contributes significantly to the economy of the state and could have an even greater impact if new markets for natural gas could be developed. However, there has never been a cohesive, comprehensive strategy or effort to promote and market natural gas.

B. The purpose of this Part is to promote the use and consumption of natural gas, to assist the natural gas industry in market development, and to identify and remove impediments to the development of natural gas as an alternative fuel.

§651. Louisiana Natural Gas Marketing Commission;

creation; membership; panels of nominees; terms; filling of vacancies; oaths of office; quorum; domicile; meetings

A. The Louisiana Natural Gas Marketing Commission is hereby created within the Department of Natural Resources and shall consist of sixteen members, thirteen to be appointed by the governor as follows:

(1) One major gas producer, and one gas pipeline representative appointed from a list of three names from each sector nominated by the Mid-Continent Oil and Gas Association.

(2) Two independent gas producers appointed from a list of six names nominated by the Louisiana Association of Independent Producers and Royalty Owners.

(3) Two chemical manufacturers appointed from a list of six names nominated by the Louisiana Chemical Association.

(4) Two retailers appointed from a list of six names nominated by the Louisiana Gas Association.

(5) Two at large representatives from gas consumer groups appointed from a list of six names nominated by the president of the Senate.

(6) Two at large representatives from gas consumer groups appointed from a list of six names nominated by the speaker of the House.

(7) One representative of the Public Service Commission appointed from a list of three names nominated by said commission.

B. Each appointment by the governor shall be submitted to the Senate for confirmation, and beginning in 1994, every appointment confirmed by the Senate shall again be submitted by the governor to the Senate for confirmation every two years after the initial confirmation.

C. The additional three members shall be the secretaries of the Department of Natural Resources, the Department of Environmental Quality, and the Department of Economic Development, or their designees, who shall serve ex officio but with all of the powers, rights, duties, and privileges as members appointed by the governor, including the right to vote on all matters before the commission.

D. Members shall serve terms concurrent with the governor making the appointment. The organizations herein authorized to make nominations for appointments to the commission, the president of the Senate and the speaker of the House, shall file the initial list of nominees for appointment within sixty days after the effective date of this Part.

Thereafter, each organization, the president of the Senate and the speaker of the House shall file a list of nominees with the governor no later than June thirtieth of the year of the governor's inauguration.

E. Except as provided herein, vacancies shall be filled in the same manner as original appointments for the unexpired portion of the term. Whenever a vacancy occurs, the organization authorized to make nominations for appointment to the vacant position shall file a list of nominees with the governor within sixty days after the vacancy occurs. The governor shall make all appointments no later than sixty days after the submission of the list of nominees.

F. All members shall take and subscribe to the oath of office prescribed for state officials. Members shall serve until their successors are appointed and qualified.

G. Appointed members of the commission shall be entitled to receive reimbursement for mileage expenses and meals in accordance with the same regulations applying to state employees.

H. A majority of the membership shall constitute a quorum for the transaction of official business. All official actions of the commission shall require the affirmative vote of a majority of the members of the commission.

I. The commission shall be domiciled in Baton Rouge.

J. The commission shall meet at least once during each quarter, but may meet more frequently upon the call of the chairman.

§652. Officers; employees

A. At the first meeting of the commission, the members shall elect, from their membership, a chairman, vice-chairman, and such other officers as the commission may deem advisable.

B. The secretary of the Department of Natural Resources shall, with the concurrence of the assistant secretary of the office of conservation, appoint a director of the commission. The secretary shall also employ additional staff as necessary to carry out the duties and functions prescribed upon the commission by this Part.

§653. Powers of the commission; duties

The commission shall:

(1) Adopt a seal and alter the same at its pleasure.

(2) Sue and be sued in its own name.

(3) Receive donations, grants, and other sources of revenues which may be available and develop rules and regulations pertinent to the expenditure of the funds to carry out the purposes and duties imposed upon the commission by the provisions of this Part.

(4) Conduct an analysis which will:

(a) Identify marketing and development problems, impediments, and issues.

(b) Identify infrastructural problems which either currently, or will in the future, inhibit development of the Louisiana natural gas industry.

(c) Examine successful marketing and development programs in other states and countries,

(d) Identify potential new markets and marketing strategies which will result in new or expanded markets for Louisiana natural gas.

(e) Identify potential investment and tax incentives which could help spur development of natural gas in Louisiana.

(5) Develop and implement a plan to:

(a) Resolve marketing and development problems.

(b) Establish and develop strategies for removing impediments which inhibit marketing and development.

(c) Seek improvement in both public and private infrastructure in areas supporting the natural gas industry.

(d) Create new markets and expand activity in old markets for Louisiana natural gas.

(e) Educate current and potential participants in the Louisiana natural gas industry about investment, tax, and educational opportunities to improve both the quality and quantity of service and products.

(f) Educate Louisiana public officials and the private sectors of business and industry regarding the potential economic benefits of Louisiana natural gas and interface with other Louisiana agencies and the private sectors of business and industry to help promote and execute the plan outlined in this Paragraph.

(6) Encourage utilities and other industries to convert from coal to natural gas when possible.

(7) Explore the economic consequences of converting heating and cooling systems of public buildings to natural gas.

(8) Develop incentives for utilities to make natural gas available for home use in all parts of the state.

(9) Take appropriate action to promote the use of natural gas before all relevant federal agencies as well as agencies of other states which may have powers, duties, and responsibilities affecting the use of natural gas.

(10) Serve as a clearinghouse for information relative to natural gas in this state which is available for purchase.

(11) Make efforts toward having the state become involved in the Natural Gas Vehicle Coalition.

(12) Develop incentives for the conversion of fleet and other vehicles to natural gas.

(13) Perform any acts deemed necessary and proper to carry out the duties and responsibilities imposed upon the commission by the provisions of this Part.

§654. Advertising campaign

The commission, working with the Department of Natural Resources and other appropriate Louisiana officials and agencies, shall plan and execute a campaign for advertising, publicizing, and promoting Louisiana natural gas. The commission may take any other action which it deems necessary to promote and improve the well-being of the natural gas industry in Louisiana.

§655. Appropriations; warrants; records; audit

A. Funds made available by the legislature from any source may be used solely for the programs and purposes provided for in this Part. The Department of Natural Resources shall maintain records of the sources of the money received and the purpose therefor, as well as the person or persons to whom money is paid and the purpose therefor. Vouchers or receipts shall be kept for all money paid out. Money appropriated or otherwise made available to the department for authorized purposes shall be withdrawn from the treasury on warrant of the secretary of the department.

B. The financial records of the commission shall be audited by the legislative auditor pursuant to R.S. 24:513.

§666. Annual reports

The commission shall make a written operating report to the legislature at the end of the fiscal year, setting forth the accomplishments and progress of the commission for the previous year. This report shall be submitted to the House and Senate Committees on Natural Resources and the House and Senate Committees on Commerce not later than thirty days after the end of the fiscal year.

Section 2. R.S. 36:359(G) is hereby enacted to read as follows:

§359. Transfer of agencies and functions to the Department of Natural Resources

* * * *

G. The Louisiana Natural Gas Marketing Commission (R.S. 30:650-656) is placed within the Department of Natural Resources, and shall perform its powers, duties, functions, and responsibilities in the manner provided for agencies and commissions transferred as provided in Part III of Chapter 22 of this Title.

* * * *

Section 3. The Department of Natural Resources shall not be required to provide any personnel or funds to the commission until such time as funds are appropriated by the legislature to the Department of Natural Resources specifically for the purposes of the commission as specified by this Act.

Approved by the Governor, July 14, 1992.

Published in the Official Journal of the State:

August 5, 1992.

A true copy:

W. Fox McKeithen

Secretary of State

Return to Appendix B Table of Contents