Louisiana 2024 Regular Session

Louisiana House Bill HB73

Introduced
2/14/24  
Refer
2/14/24  

Caption

Authorizes parishes to levy a tax on carbon dioxide injected for geologic sequestration

Impact

If enacted, HB 73 would modify existing state laws by granting parishes the authority to impose a tax on carbon dioxide injection for geologic purposes, thereby altering the financial dynamics surrounding carbon sequestration projects. This could incentivize environmentally responsible practices among businesses engaged in carbon management, as they would be financially accountable for their carbon emissions. Furthermore, the bill outlines that the entity holding the permit for such injection is liable for the payment of the tax, linking regulatory compliance with local fiscal responsibility.

Summary

House Bill 73, introduced by Representative Mack, aims to empower parish governing authorities in Louisiana to levy a tax on carbon dioxide that is injected for geologic sequestration by Class VI injection wells located within their boundaries. The primary objective of the bill is to create a new revenue stream for local parishes while addressing environmental concerns related to carbon emissions. The proposal mandates that the tax be collected through an ordinance that establishes the tax rate, collection procedures, and penalties for non-compliance, thus providing local governments with the autonomy to regulate this aspect of carbon management.

Sentiment

The sentiment surrounding HB 73 appears largely supportive among those advocating for local authority and environmental accountability. Proponents argue that this bill enables parishes to generate necessary funds while promoting sustainable practices in carbon management. However, concerns may arise regarding the potential for additional financial burdens on businesses involved in carbon sequestration, which could lead to opposition from some sectors. The discussions are likely focused on balancing environmental interests with economic impacts.

Contention

Notable points of contention may arise among stakeholders regarding how the tax rate will be determined and enforced by individual parishes. Questions surrounding the administrative capabilities of local governments to manage this new revenue stream and the potential impact of the tax on business decisions related to carbon sequestration efforts could lead to debates. Additionally, there may be apprehensions regarding the uniformity of regulations and their implementation across different parishes, potentially leading to a fragmented approach to carbon management throughout the state.

Companion Bills

No companion bills found.

Previously Filed As

LA HB453

Requires that carbon dioxide injected for geologic sequestration using a Class VI injection well be transported to and sequestered in a storage facility in the Gulf of Mexico

LA HB571

Provides relative to carbon capture and sequestration (EN SEE FISC NOTE LF RV)

LA HB35

Prohibits carbon dioxide sequestration projects in St. Helena Parish

LA HB454

Requires a local election for the approval of carbon dioxide sequestration within a parish (OR SEE FISC NOTE LF EX)

LA HB267

Places a moratorium on carbon dioxide sequestration projects on Lake Maurepas and the Maurepas Swamp Wildlife Management Area

LA SB141

Provides for carbon sequestration. (8/1/23)

LA HB312

Provides relative to liability and damages resulting from carbon sequestration

LA SR179

Establishes the Task Force on Local Impacts of Carbon Capture and Sequestration to study the benefits and revenue streams of carbon capture and sequestration projects.

LA SCR63

Establishes the Task Force on Local Impacts of Carbon Capture and Sequestration to study the benefits and revenue streams of carbon capture and sequestration projects.

LA HB10

Removes eminent domain authority of carbon dioxide storage facility operators

Similar Bills

No similar bills found.