Louisiana Senate Bill SB739

Louisiana 2010 Regular Session

• Introduced: 4/20/10
• Refer: 4/20/10
• Report Pass: 5/17/10
• Refer: 5/18/10
• Report Pass: 6/7/10

Caption

Provides relative to the Louisiana Carbon Capture and Enhanced Oil Recovery Act. (8/15/10) (RE SEE FISC NOTE SD RV See Note)

Impact

By setting up the Carbon Dioxide Project Incentive Fund, SB739 aims to allocate financial resources to projects that meet its defined criteria. This fund is capped at $35 million per project, with a total funding limit of $350 million for each qualified project. The bill is seen as a way to stimulate investment in carbon capture technology within Louisiana, potentially boosting local economies and creating jobs in the energy sector while also addressing climate change objectives.

Summary

Senate Bill 739 establishes the Louisiana Carbon Capture and Enhanced Oil Recovery Act, aiming to promote the geologic sequestration of carbon dioxide and its use in enhanced oil recovery. The bill is framed as a response to environmental concerns regarding greenhouse gas emissions, asserting that carbon capture technologies can provide economic benefits while helping to reduce the state's carbon footprint. It focuses on creating an incentive fund to support qualified low carbon energy projects that produce significant amounts of carbon dioxide and use it to enhance oil or gas recovery processes.

Sentiment

Overall, the sentiment around SB739 is mixed. Proponents, including industry stakeholders and some lawmakers, view it as a crucial step towards modernizing Louisiana's energy sector and aligning it with emerging environmental standards. Conversely, critics argue that it may not sufficiently address the long-term impacts of carbon emissions or provide adequate oversight of how the funds are utilized. Concerns have been raised about the effectiveness of enhanced oil recovery as a solution to emissions and the potential for the legislation to prioritize economic interests over environmental protection.

Contention

Key points of contention involve the definitions and criteria used to qualify projects for the incentive fund, particularly regarding what constitutes a 'low carbon energy project.' Additionally, debates have surfaced over the transparency of fund management and appropriate oversight mechanisms to ensure that the financial incentives lead to genuine environmental benefits rather than merely extending the lifespan of certain fossil fuel-based projects. The certification process by the secretary of the Department of Natural Resources has also sparked discussions on the level of discretion granted to state officials in approving projects.