By:  Lucio                                                        S.B. No. 1560

A BILL TO BE ENTITLED
AN ACT
relating to the funding of coastal erosion response activities and the coastal management program. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 33.603, Natural Resources Code, is amended by amending Subsections (b) and (e) to read as follows: (b) The studies and projects shall address: (1) assessment of the feasibility, cost, and financing of different methods of avoiding, slowing, or remedying coastal erosion; (2) beneficial placement of dredged material where appropriate to replenish eroded public beach, bay shore, marsh, and dune areas; (3) public beach, bay shore, and marsh nourishment or restoration projects using sediments other than material from navigational or other dredging projects; (4) guidelines on grain size and toxicity level; (5) the economic, natural resource, and other benefits of coastal erosion projects; (6) the protection, revegetation, and restoration of dunes; (7) the planting of vegetation as a means of inhibiting bay shore erosion and projects developing and cultivating disease-resistant vegetation adapted to local conditions; (8) the construction or retrofitting of dams, jetties, groins, and other impoundment structures with sediment bypassing systems; (9) estimating the quantity and quality of sediment trapped by reservoirs, navigation channels, and placement areas and identification of other sediment sources; (10) hard structures on bay shorelines, giving preference to "soft" methods of avoiding, slowing, or remedying erosion in lieu of erecting hard or rigid shorefront structures; (11) storm damage mitigation, post-storm damage assessment, [and] debris removal, and removal and relocation of structures from public beaches; and (12) other studies or projects the commissioner considers necessary or appropriate to implement this subchapter. (e) A qualified project partner must pay: (1) not less than 25 percent of the shared project cost if the project is a beach nourishment project on a public beach or bay shore; [and] (2) not less than 40 percent of the shared project cost if the project is any other coastal erosion response study or project, including: (A) a marsh restoration project; or (B) a bay shoreline protection project other than a beach nourishment project; and (3) a share of the reasonable costs, as determined by the commissioner, for removal of debris or structures, or relocation of structures from the public beach. SECTION 2. Section 33.604, Natural Resources Code, is amended by amending Subsections (a) and (b) to read as follows: (a) The coastal erosion response account is an account in the coastal protection [general revenue] fund established in Section 40.151 of this code that may be appropriated only to the commissioner and used only for the purpose of implementing this subchapter and Subchapter F of this chapter. (b) The account consists of: (1) all money appropriated for the purposes of this subchapter; (2) grants to this state from the United States for the purposes of this subchapter; [and] (3) all money received by this state from the sale of dredged material; and (4) interest accruing to the coastal protection fund. SECTION 3. Section 33.605, Natural Resources Code is amended by amending Subsection (a) and adding Subsection (c) to read as follows: Sec. 33.605. USES OF ACCOUNT. (a) Money in the account may be used for the following purposes: (1) any action authorized by this subchapter; (2) any action to implement the coastal management plan authorized under Subchapter F of this chapter; and (3) any action to implement and enforce Chapters 61 and 63 of this code, including: (A) expenses of the land office related to implementation and enforcement under Section 61.018, Natural Resources Code, including costs of removal of structures and debris from the public beach, court costs, expert witness fees, and attorneys fees; (B) reimbursement to a city or county of reasonable costs, as determined by the commissioner, related to the removal of structures and debris from the public beach; and (C) reimbursement to a property owner of up to 100 percent of the reasonable costs, as determined by the commissioner, paid by the owner for relocation or removal of a structure that is situated wholly or partially on the public beach; provided, however, that no money in the account may be used to purchase real property or reimburse a property owner for the purchase of real property. (c) The commissioner may seek recovery to the use of the account all sums expended from the account under Subsection (a)(3) of this section in a suit for enforcement under Section 61.018 of this code, except for reimbursement to a property owner under Subsection (a)(3)(C) of this section. SECTION 4. Section 40.151, Natural Resources Code, is amended by amending Subsections (a) and (b) to read as follows: Sec. 40.151. COASTAL PROTECTION FUND. (a) The purpose of this subchapter is to provide immediately available funds for response to all unauthorized discharges, for cleanup of pollution from unauthorized discharges of oil, for payment of damages from unauthorized discharges of oil, [and] for erosion response projects and for implementation of the coastal management program. (b) The coastal protection fund is established in the state treasury to be used by the commissioner as a nonlapsing revolving fund only for carrying out the purposes of this chapter and of Subchapters [Subchapter] F and H, Chapter 33. To this fund shall be credited all fees, penalties, judgments, reimbursements, interest or income on the fund, and charges provided for in this chapter and the fee revenues levied, collected, and credited pursuant to this chapter and all money credited to the coastal erosion response account pursuant to Section 33.604 of this code. The fund shall not exceed $50 million, exclusive of the amount in the coastal erosion response account. SECTION 5. Section 40.152, Natural Resources Code, is amended by amending Subsection (a) and adding new Subsection (c) to read as follows: Sec. 40.152. USE OF FUND. (a) Money in the fund may be disbursed for the following purposes and no others: (1) administrative expenses, personnel and training expenses, and equipment maintenance and operating costs related to implementation and enforcement of this chapter; (2) response costs related to abatement and containment of actual or threatened unauthorized discharges of oil incidental to unauthorized discharges of hazardous substances; (3) response costs and damages related to actual or threatened unauthorized discharges of oil; (4) assessment, restoration, rehabilitation, or replacement of or mitigation of damage to natural resources damaged by an unauthorized discharge of oil; (5) in an amount not to exceed $50,000 annually, the small spill education program; (6) in an amount not to exceed $1,250,000 annually, interagency contracts under Section 40.302; (7) the purchase of response equipment under Section 40.105 within two years of the effective date of this chapter, in an amount not to exceed $4 million; thereafter, for the purchase of equipment to replace equipment that is worn or obsolete; (8) other costs and damages authorized by this chapter; (9) [in an amount not to exceed the interest accruing to the fund annually,] erosion response projects under Subchapter H, Chapter 33 and costs necessary to administer the coastal management program under Subchapter F, Chapter 33; and (10) in conjunction with the Railroad Commission of Texas, costs related to the plugging of abandoned or orphaned oil wells located on state-owned submerged lands. (c) There is hereby appropriated from the fund to the General Land Office, subject to this section, $2 million for administrative costs for the purposes specified in Subdivision (9) of Subsection (a) of this section for the two-year period beginning September 1, 2005. SECTION 6. Section 40.155, Natural Resources Code, is amended to read as follows: Sec. 40.155. Determination of Fee (a) Except as otherwise provided in this section, the rate of the fee shall be two cents per barrel of crude oil until the commissioner certifies that the unencumbered balance in the fund has reached $25 million, exclusive of the amount in the coastal erosion response account. The commissioner shall certify to the comptroller the date on which the unencumbered balance in the fund exceeds $25 million, exclusive of the amount in the coastal erosion response account. The fee shall not be collected or required to be paid on or after the first day of the second month following the commissioner's certification to the comptroller that the unencumbered balance in the fund exceeds $25 million, exclusive of the amount in the coastal erosion response account. (b) If the unencumbered balance in the fund falls below $14 million, exclusive of the amount in the coastal erosion response account, the commissioner shall certify such fact to the comptroller. On receiving the commissioner's certification, the comptroller shall resume collecting the fee until suspended in the manner provided in Subsection (a) of this section. (c) Notwithstanding the provisions of Subsection (a) or (b) of this section, the fee shall be levied at the rate of four cents per barrel if the commissioner certifies to the comptroller a written finding of the following facts: (1) the unencumbered balance in the fund is less than $25 million, exclusive of the amount in the coastal erosion response account; (2) an unauthorized discharge of oil in excess of 100,000 gallons has occurred within the previous 30 days; and (3) expenditures from the fund for response costs and damages are expected to deplete the fund substantially, exclusive of the amount in the coastal erosion response account. (d) In the event of a certification to the comptroller under Subsection (c) of this section, the comptroller shall collect the fee at the rate of four cents per barrel until the unencumbered balance in the fund reaches $25 million, exclusive of the amount in the coastal erosion response account, or any lesser amount that the commissioner determines is necessary to pay response costs and damages without substantially depleting the fund. The commissioner shall certify to the comptroller the date on which the unencumbered balance in the fund exceeds $25 million or such other lesser amount, exclusive of the amount in the coastal erosion response account. The fee shall not be collected or required to be paid on or after the first day of the second month following the commissioner's certification to the comptroller. (e) For purposes of this section, the unencumbered balance of the fund shall be determined by the unencumbered cash balance of the fund, exclusive of the amount in the coastal erosion response account, at the end of each month or on the date of a finding under Subsection (c) of this section. SECTION 7. EFFECTIVE DATE. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2005.