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Economic Opportunity on the Line: CCS Makes Session Debut
The first of several harmful anti-carbon capture and sequestration (CCS) bills filed this session will make its debut this week. Expected to be a major distraction from the tremendous economic opportunity to move Louisiana forward, these bills would add complexity, uncertainty and red tape to projects promising millions of dollars in local impact.
We will extensively highlight our opposition to HB 7 by Speaker Pro Tempore Mike Johnson (R-Pineville), which will be heard Tuesday by the House Natural Resources Committee, down below, but first, we want to address the CCS conversation from a high-level perspective.
Louisiana has long stood at the center of America’s energy economy—powering the nation, fueling industry and supporting hundreds of thousands of high-quality jobs. Today, that leadership is being tested. As global demand for lower-carbon energy solutions accelerates, CCS represents one of the most significant economic opportunities in a generation.
CCS is not theoretical. It is a safe, proven and effective technology already deployed across the United States and the world. For decades, carbon dioxide has been safely transported and stored underground using the same geologic formations and expertise that underpin Louisiana’s oil and gas industry. The science is established, the infrastructure is familiar and the workforce is ready.
What sets Louisiana apart is its unmatched combination of natural resources, industrial base and technical expertise. Our state’s unique geology makes it one of the most viable locations in the country for long-term carbon storage. Combined with an existing network of pipelines, ports, industrial facilities and a highly skilled industrial workforce, Louisiana is exceptionally positioned to lead in CCS deployment at scale. The federal government acknowledged that when we became one of the first states to receive primacy.
This is more than an energy issue—it is an economic opportunity. CCS has the potential to:
- Attract billions in investment,
- Preserve and grow Louisiana’s industrial base,
- Create and sustain tens of thousands of jobs, and
- Strengthen domestic energy production while reducing emissions.
As LABI President & CEO Will Green laid out in an Op-Ed last September, some of the historic investments Louisiana has announced over the last two years, including Hyundai’s first North American steel mill, are due in part to our CCS framework.
“Notably, this project is only possible because of our state’s emerging CCS infrastructure, which provides Hyundai with a path to meet global decarbonization goals while operating in one of the world’s most competitive industrial corridors. It’s a shining example of how we can grow our economy and reduce emissions, all while strengthening our workforce and communities.”
At a time when companies are making long-term investment decisions, certainty matters. States that provide a stable, predictable regulatory environment will win these projects. Those that do not will watch investment—and jobs—go elsewhere.
And make no mistake: competition is fierce. Texas, now with primacy of its own, is moving aggressively to capture this market, positioning itself as the national leader in carbon storage. Other neighboring states are watching closely, ready to follow suit. Louisiana cannot afford to cede its competitive edge.
Unfortunately, recent legislative efforts threaten to do just that.
While often framed around safety concerns, many of these proposals are rooted in misinformation and misunderstandings about CCS technology and regulation. In reality, CCS projects are subject to rigorous federal and state oversight, including permitting requirements designed to ensure environmental protection and public safety. Louisiana regulators have decades of experience managing subsurface energy activity safely and effectively.
Take it from Rep. Jessica Domangue (R-Houma). In a recent column, she noted how “carbon capture is vilified from many corners, most commonly from self-serving interests” including foreign entities and extremists, with the purpose of muddying the waters. Rep. Domangue also addressed Louisiana’s energy future on a recent episode of Sounds of Session. You can listen here.
It’s not just legislators in Baton Rouge who are touting the economic opportunities associated with CCS. Robert Haymon, a small business owner in Vernon Parish—where anti-CCS messaging is fomenting—recently penned a letter admonishing those spreading fear, and laying out how communities like his stand to benefit.
The choice before policymakers is clear: Louisiana can build on its legacy and reputation—leveraging its strengths to lead in CCS and secure a new era of economic growth—or it can allow uncertainty and misinformation to drive investment elsewhere.
Policies that unnecessarily restrict or delay CCS development risk sending a clear and damaging message: that Louisiana is not open for business in the next generation of energy.
The consequences would be immediate and lasting. Projects would shift to more welcoming states. Jobs would follow. And Louisiana’s hard-earned reputation as an energy leader would be diminished.
Now, let’s talk about Rep. Johnson’s HB 7. This is the only bill House Natural Resources will hear Tuesday. Chairman Brett Geymann (R-Lake Charles) recently told LaPolitics he expects testimony and questioning to last several hours. Additional CCS bills should be heard later on in policy-specific “clusters,” he added.
“I think it’s a repeat of last year, except more people are engaged on both sides,” Geymann said. “More people are aware, and it’s come into new districts from last year. I think there are some bills filed this year that we didn’t see last year, but there’s a lot of repeat bills too. So, I think it’s going to be generally what we went through last year.”
The measure, dubbed the “Louisiana Landowners Protection Act,” is the most all-encompassing CCS measure filed this session. It changes the CCS unitization statute and revokes the state’s eminent domain and expropriation authority, affecting both carbon capture projects and the development of associated CO₂ pipeline infrastructure.
Eminent domain exists under federal and state law with strict rules that govern its use, and while it has become a trendy term, it is rarely invoked. In practice, more than 99% of pipeline projects are completed through voluntary agreements with landowners.
Here’s how it really works: companies negotiate rights-of-way that allow pipeline construction and operation on a designated portion of land. These agreements provide landowners with long-term compensation while letting them continue to live, farm and use their property with minimal disruption and standard safety measures. To better understand this process, watch LABI’s Louisiana Free Enterprise Institute’s video explaining the ins and outs of property rights and pipeline development below.
LABI opposes HB 7 as it would effectively prohibit expropriation for CCS pipelines, allowing opponents with even minimal land ownership interests to block major projects.
It is important to point out that Louisiana’s landowner protections are already among the strongest anywhere in the country. While we appreciate the author’s intent, this legislation will only create unnecessary barriers and project delays—sending jobs and investment to neighboring states.