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House Natural Resources to Hear 12 Bills Targeting CCS

 

For the first time since March, carbon capture and sequestration (CCS) will be the dominating energy topic at the Capitol. A dozen harmful measures that would stifle CCS investment and energy-related opportunities across Louisiana are slated to be heard by the House Natural Resources Committee today.

All of the bills are relatively straightforward and would introduce a patchwork of CCS rules, regulations or outright bans across parishes—the exact opposite of the predictability investors rely on when choosing where to locate projects. LABI will continue to prioritize policy decisions that expand Louisiana’s global reputation as an all-of-the-above energy leader.

The 12 measures LABI will oppose are:

  • HB 5 by Rep. Mike Johnson (R-Pineville) would let individual parishes—or voters through a local election—decide whether carbon capture wells, CO₂ storage projects and related pipelines can operate within their borders. If a parish adopts a prohibition, that decision would immediately override the state’s current authority to permit and regulate these projects. Parish leaders could act on their own or be required to hold an election if enough voters sign a petition, and any election result would control for at least five years. LABI opposes the measure because it would replace a consistent statewide regulatory system with a hodgepodge of rules that change from parish to parish. That uncertainty would make it significantly harder to plan and finance large-scale energy and carbon capture projects, discouraging investment and undermining Louisiana’s ability to compete for jobs and economic growth tied to this emerging industry.
  • HB 6 by Rep. Johnson would remove state authority over CCS permitting in favor of a local option for Rapides Parish and its governing authority.
  • HB 494 by Rep. Robby Carter (D-Greensburg) would prohibit all CCS projects in St. Helena Parish.
  • HB 497 by Rep. Rodney Schamerhorn (R-Hornbeck) would remove state authority over CCS permitting in favor of a local option for Vernon Parish and its governing authority.
  • HB 498 by Rep. Schamerhorn would remove state authority over CCS permitting in favor of a local option for Beauregard Parish and its governing authority.
  • HB 501 by Rep. Dewith Carrier (R-Oakdale) would remove state authority over CCS permitting in favor of a local option for Allen Parish and its governing authority.
  • HB 504 by Rep. Schamerhorn would remove state authority over CCS permitting in favor of a local option for Sabine Parish and its governing authority.
  • HB 509 by Rep. Chuck Owen (R-Rosepine) would require a hearing to receive public comments in every parish in which a Class V or VI injection well permit is proposed.
  • HB 510 by Rep. Schamerhorn would require that any carbon dioxide stored underground in Louisiana must be produced within the state. The bill also tightens existing rules by requiring that all listed conditions be met before a storage reservoir can be used or before eminent domain can be exercised for these projects. In simple terms, the proposal limits carbon capture storage to Louisiana-generated emissions only, which could make projects smaller, less flexible and harder to finance since many large carbon capture hubs rely on transporting and storing CO₂ across state lines.
  • HB 878 by Rep. Carter would prohibit the geologic storage of carbon dioxide beneath a scenic river system.
  • HB 879 by Rep. Carter would require carbon dioxide storage facility operators pay 25% of their gross tax credit amount to the landowners of the area of operations.
  • HB 1136 by Rep. Carter would prohibit carbon dioxide pipelines from being located in the same right-of-way as a petroleum product pipeline.