Get Involved
HB 7: Undermining Louisiana’s Competitive Edge in Carbon Capture
HB 7 by Speaker Pro Tempore Mike Johnson (R-Pineville) takes aim at the very framework that has positioned Louisiana as a national leader in carbon capture and sequestration (CCS) and risks sending that prosperity elsewhere. That is the message LABI is amplifying ahead of today’s House Natural Resources Committee hearing devoted solely to this measure.
At its core, HB 7 would weaken the authority of the Department of Conservation and Energy to effectively regulate CCS activity in the state. The bill also repeals Louisiana’s CCS unitization statute, a critical tool that allows for the efficient and coordinated development of these projects. Together, these changes introduce unnecessary uncertainty into a regulatory system that has been carefully built to support investment, innovation and responsible development.
Just as concerning, HB 7 removes eminent domain authority for CCS projects and carbon dioxide pipelines—an essential, though rarely used, tool for building large-scale infrastructure.
CCS projects—particularly pipelines—require continuous corridors that can span hundreds of miles, often involving coordination with dozens or even hundreds of landowners. In the overwhelming majority of cases (>99%), companies successfully reach voluntary agreements through communication and fair negotiation. In fact, eminent domain is used only as a last resort and typically in limited scenarios—most commonly when a landowner cannot be located or is unresponsive after multiple attempts.
Companies have no incentive to rely on eminent domain. Lengthy court proceedings can delay projects for years, adding cost and uncertainty. The clear preference is always good-faith negotiation and fair compensation. Taking a project to court is always a last resort.
Importantly, landowners do not lose ownership or access to their property. Instead, they grant a right-of-way, allowing infrastructure to be built while continuing to live on, farm or otherwise use their land—with only minor safety restrictions. In return, landowners receive compensation, often providing long-term financial benefit. As we mentioned yesterday, Louisiana already has some of the strongest landowner protections in the country.
Without a workable path to secure that final, necessary access point, particularly in cases involving absentee ownership, critical infrastructure projects can be halted entirely. One obstacle should not derail investments that create jobs, generates local revenue and strengthens Louisiana’s energy leadership.
States that offer a stable, predictable regulatory environment are the ones winning these projects. Those that do not will watch investment—and jobs—go elsewhere.
And competition is accelerating. Texas, Arizona and West Virginia have already been granted primacy and are moving aggressively to capture this market. Other neighboring states are watching closely and preparing to follow suit.
Louisiana has built a strong foundation for CCS, leveraging its existing energy infrastructure, skilled workforce and geologic advantages. But that advantage is not guaranteed.
If Louisiana removes eminent domain authority for CCS projects or adds new layers of complexity that make projects harder and more expensive to build, it sends a clear message: take your investment and jobs elsewhere.
The bottom line is HB 7 introduces uncertainty where Louisiana needs stability. It weakens proven regulatory tools, complicates project development and risks derailing a major economic opportunity for the state.
At a time when Louisiana should be doubling down on—and expanding—its energy leadership, HB 7 moves us in the wrong direction.