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SB 367

WATER MANAGEMENT: Creates the Watershed Restoration and Conservation Fund. (8/1/26) (EN INCREASE SD EX See Note)

2026 Regular Session Introduced by Rick Edmonds

Creates a dedicated Watershed Restoration and Conservation Fund funded by severance taxes to reclaim mining sites and fund flood risk, water/soil improvements in priority watershed

Signed by the Governor. Becomes Act No. 761.
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Bill Summary · SB 367

Summary of Louisiana SB 367 (2026) — Watershed Restoration and Conservation Fund

What the bill does (Purpose)

  • Creates a new dedicated fund in the state treasury: the Watershed Restoration and Conservation Fund.
  • The fund is intended to support reclamation, restoration, and long-term stewardship of lands and watersheds impacted by sand and stone mining operations, with priority given to flood-prone areas and impaired watersheds.
  • Administrative responsibility for the fund falls to the Secretary of the Department of Wildlife and Fisheries? Note: The bill text identifies administration by the “secretary” (in practice, the administering department is part of the state executive structure; the digest notes “secretary of C&E,” i.e., Conservation and Environment/Environmental Quality context).

Key provisions and changes

  • Fund establishment: Creates a special fund in the state treasury named the Watershed Restoration and Conservation Fund (the “fund”).
  • Source of funding: Uses severance tax revenues from mining and production of sand and stone.
    • Allocations to other constitutional funds occur first (Bond Security and Redemption Fund; Coastal Protection and Restoration Fund; to political subdivisions) as required by the Louisiana Constitution.
    • Any remaining severance tax revenue from sand and stone mining is deposited into the fund.
  • Eligible uses of the fund (exclusively within eligible watersheds):
    1. Reclamation and restoration of abandoned, inactive, or unrestored sand/stone mining sites.
    2. Watershed-based flood risk reduction projects and floodplain management activities.
    3. Soil, sediment, and water quality improvement projects in mined or impaired watersheds.
    4. Reasonable operating, administrative, and planning costs necessary to carry out the fund’s purposes.
  • Eligibility criteria for recipient entities:
    • Must be established under Louisiana law and required to develop and maintain a master plan and an annual plan (subject to legislative review/approval).
    • Must have statutory responsibility/authority for floodplain management within the watershed, including authority over flood risk reduction projects.
    • Must be authorized to adopt/regulate to carry out their responsibilities.
    • Must be governed by a legislatively authorized governing board with specific composition requirements:
    • Includes representation from parishes located in parts or all of the watershed.
    • Members must collectively have relevant professional expertise/credentials (engineering, hydrology, water resource management, floodplain management, environmental science, land use planning, public administration, etc.), as prescribed by law.
  • Secretary’s powers and duties (in addition to existing authorities):
    • Make expenditures or commitments from the fund for reclamation, restoration, and stewardship as described.
    • Hire staff and cover administrative costs necessary to administer the fund.
    • Adopt and promulgate rules/regulations under the Administrative Procedure Act.
    • Negotiate and execute contracts for services (legal, financial, engineering, construction, etc.) needed to achieve the fund’s purposes.
    • Perform other related functions as enumerated or envisioned by the section.
  • Accountability and reporting:
    • The secretary must maintain accurate accounts of receipts and disbursements.
    • An annual report detailing the administration of the fund must be provided to:
    • Senate Committee on Natural Resources
    • House Committee on Natural Resources and Environment
    • Senate Committee on Environmental Quality
    • The annual report must be submitted by March 1 each year.
  • Effective date: August 1, 2026.
  • Legal citation: Adds R.S. 30:1270 to establish the Watershed Restoration and Conservation Fund.

Who is affected

  • State government and the executive branch entity responsible for administering the fund (the secretary referenced in the bill).
  • Sand and stone mining operations as a source of severance tax revenue that funds the program.
  • Eligible watershed-focused entities (potential recipients) that meet statutory criteria (master/annual planning, floodplain management authority, ability to regulate, and an established governing board with expert representation).
  • Parishes within eligible watersheds will have representation on the governing boards of eligible entities.

Procedural and timeline notes

  • The bill creates a new fund with funding derived from severance tax revenues, after constitutional allocations.
  • Eligible recipient entities must be established under Louisiana law and undergo master/annual planning review by the legislature.
  • Annual reporting to specified legislative committees is required, due by March 1 each year.
  • Effective date: August 1, 2026.

Overall impact

SB 367 aims to channel a portion of severance tax revenue from sand and stone mining into a dedicated Watershed Restoration and Conservation Fund. The fund would finance reclamation of mining sites, flood risk reduction, water/soil quality improvements in targeted watersheds, and related administrative costs, with stringent eligibility criteria and governance designed to ensure technical expertise and local floodplain management emphasis. It emphasizes prioritized attention to flood-prone and impaired watershed areas and introduces a structured, legislatively overseen governance and reporting framework.

Compiled from official sources — confirm details with the bill’s official record.

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