HLS 25RS-457 ORIGINAL 2025 Regular Session HOUSE BILL NO. 568 BY REPRESENTATIVE CARRIER Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. ENERGY/CONSERVATION: Establishes public safety and accountability procedures applicable to carbon capture and storage projects 1 AN ACT 2To amend and reenact R.S. 30:1107.1(C) and to enact R.S. 30:1107.1(B)(4) through (6) and 3 (D) and (E) and 1107.3, relative to carbon capture and storage projects; to establish 4 additional mandatory incident reporting requirements; to impose criminal penalties 5 for failure to report carbon dioxide leaks, pipeline ruptures, and sequestration 6 failures; to provide for public disclosure and emergency response measures; to 7 ensure full corporate accountability in the event of an incident; to provide for 8 severability; to provide an effective date; and to provide for related matters. 9Be it enacted by the Legislature of Louisiana: 10 Section 1. R.S. 30:1107.1(C) is hereby amended and reenacted to read and R.S. 1130:1107.1(B)(4) through (6) and (D) and (E) and 1107.3 are hereby enacted to read as 12follows as follows: 13 §1107.1. Reporting; recordkeeping 14 * * * 15 B. At a minimum, the owner or operator of a permitted Class VI well shall 16 provide a report within twenty-four hours of the occurrence of any of the following: 17 * * * 18 (4) Carbon dioxide pipeline ruptures or leaks, including those detected by 19 pressure loss or visual evidence. Page 1 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 25RS-457 ORIGINAL HB NO. 568 1 (5) Seismic activity or ground disturbances linked to carbon dioxide 2 injection operations. 3 (6) Any equipment malfunction that could lead to the release of stored 4 carbon dioxide. 5 C. Reports required by this Section shall include: 6 (1) The precise location of the incident. 7 (2) A description of the incident, including its cause, when possible. 8 (3) Potential risks to public health, water sources, and land stability. 9 (4) Immediate mitigation steps taken in response. 10 (5) A timeline for corrective action. 11 D. Owners or operators of Class VI wells shall retain records as required by 12 applicable administrative rules. 13 E.(1) Any report required by Subsection B of this Section shall be disclosed 14 within forty-eight hours to the following persons and entities: 15 (a) All affected landowners within a five mile radius of the incident. 16 (b) Emergency response teams, local law enforcement, and local governing 17 officials. 18 (c) The general public through an official press release and publication on 19 the Department of Energy and Natural Resources and the Department of 20 Environmental Quality websites. 21 (2) Failure to notify the public as required by this Subsection shall result in 22 a fine of two hundred fifty thousand dollars per day. 23 * * * 24 §1107.3 Penalties for failure to report 25 A. Any storage operator of a Class VI well or other responsible party who 26 knowingly fails to report a carbon dioxide related incident within twenty-four hours 27 as required by R.S. 30:1107.1 shall be subject to: 28 (1) A felony charge carrying a penalty of up to five years in prison for the 29 chief executive officer or owner of the offending entity. Page 2 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 25RS-457 ORIGINAL HB NO. 568 1 (2) Fines of up to five hundred thousand dollars per violation for each day 2 the incident remains unreported. 3 (3) Permanent revocation of state operating permits for repeat offenses as 4 determined by the department. 5 (4) Personal liability for damages caused by delayed reporting, including 6 injury, death, or environmental destruction for the chief executive officer or owner 7 of the offending entity. 8 B. Any individual or entity who intentionally conceals or alters data related 9 to carbon dioxide incidents required to be reported pursuant to R.S. 30:1107.1(B) 10 shall be subject to: 11 (1) A minimum fine of one million dollars. 12 (2) Civil lawsuits from affected residents and businesses. 13 (3) Criminal prosecution under Louisiana fraud and environmental 14 protections contained in Chapter 2 of Subtitle II of Title 30 of the Louisiana Revised 15 Statutes of 1950. 16 C. The attorney general shall have the authority to prosecute criminal 17 violations under this Section. 18 Section 3. If any provision of this Act or the application thereof is held invalid, such 19invalidity shall not affect other provisions or applications of this Act which can be given 20effect without the invalid provisions or applications, and to this end the provisions of this 21Act are hereby declared severable. 22 Section 4. This Act shall become effective upon signature by the governor or, if not 23signed by the governor, upon expiration of the time for bills to become law without signature 24by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If 25vetoed by the governor and subsequently approved by the legislature, this Act shall become 26effective on the day following such approval. Page 3 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 25RS-457 ORIGINAL HB NO. 568 DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] HB 568 Original 2025 Regular Session Carrier Abstract: Establishes additional mandatory incident reporting requirements for carbon capture and storage projects and imposes criminal penalties for failure to report carbon dioxide leaks, pipeline ruptures, and sequestration failures. Further provides for public disclosure and emergency response measures to ensure full corporate accountability in the event of an incident and for related matters. Present law requires quarterly reports to the commissioner by owners or operators of Class VI wells that contain: (1)Any changes to the characteristics of the carbon dioxide stream from the proposed operating data or parameters. (2)Monthly values for injection pressure, flow rate and volume, and annular pressure. (3)Monthly total of carbon dioxide injected and cumulative total. (4)Additional reporting required by administrative rules. Present law requires reporting by owners or operators of Class VI wells within 24 hours of the occurrence of: (1)Evidence that the injected carbon dioxide stream or pressure may endanger underground sources of drinking water. (2)Noncompliance with a permit condition, or malfunction of the injection system, which may cause fluid migration into or between underground sources of drinking water. (3)Failure to maintain mechanical integrity. Proposed law retains present law but adds further requirements for reporting: (1)Carbon dioxide pipeline ruptures or leaks, including those detected by pressure loss or visual evidence. (2)Seismic activity or ground disturbances linked to carbon dioxide injection operations. Proposed law adds additional reporting requirements by owners or operators of Class VI wells within 24 hours of the occurrence of any equipment malfunction that could lead to the release of stored carbon dioxide and requires that the report include: (1)The precise location of the incident. (2)A description of the incident, including its cause, when possible. (3)Potential risks to public health, water sources, and land stability. (4)Immediate mitigation steps taken in response. Page 4 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 25RS-457 ORIGINAL HB NO. 568 (5)A timeline for corrective action. Proposed law further requires additional reporting by owners or operators of Class VI wells, including a $250,000 per day fine for failure to report, within 48 hours of the occurrence of any equipment malfunction to: (1)All affected landowners within a five mile radius of the incident. (2)Emergency response teams, local law enforcement, and local governing officials. (3)The general public through an official press release and publication on the Dept. of Energy and Natural Resources and the Dept. of Environmental Quality websites. Proposed law adds penalties for any storage operator of a Class VI well or other responsible party who knowingly fails to report a carbon dioxide related incident within 24 hours as required by present law and proposed law including: (1)A felony charge carrying a penalty of up to five years in prison for the chief executive officer or owner of the offending entity. (2)Fines of up to $500,000 per violation for each day the incident remains unreported. (3)Permanent revocation of state operating permits for repeat offenses as determined by the department. (4)Personal liability for damages caused by delayed reporting, including injury, death, or environmental destruction for the chief executive officer or owner of the offending entity. Proposed law provides additional penalties for any individual or entity who intentionally conceals or alters data related to carbon dioxide incidents, including: (1)A minimum fine of $1,000,000. (2)Civil lawsuits from affected residents and businesses. (3)Criminal prosecution under La. fraud and environmental protection statutes. Proposed law provides authority for the attorney general to prosecute criminal violations of proposed law. Provides for severability of the provisions included in proposed law. Effective upon signature of the governor or lapse of time for gubernatorial action. (Amends R.S. 30:1107.1(C); Adds R.S. 30:1107.1(B)(4) - (6) and (D) and (E) and 1107.3) Page 5 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions.