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Committee advances bill to share carbon sequestration revenue with local governments
Summary
The committee reported House Bill 548 as amended, extending a 30% carbon sequestration revenue-sharing model to state agency lands and adding an amendment tying parish payments to any new carbon injection tax revenues.
The Senate Committee on Natural Resources reported House Bill 548 as amended, a bill by Rep. Lacombe that would dedicate a portion of revenue from carbon dioxide sequestration on state lands to local governments.
Rep. Lacombe said the bill extends a previously passed policy that gave 30% of carbon capture revenue on certain state lands to local governments and would now encompass state agency lands. He told the committee the measure had been revised after last year’s veto to address constitutional concerns and to include state agencies and agency lands in the revenue-sharing scheme.
Committee members adopted amendment 2731, which adds a section providing that if a carbon dioxide injection tax is enacted and portions are dedicated to parishes, any obligation of a state agency to remit payment under the bill will be reduced by amounts of tax revenue received by the local governing authority. Committee discussion noted the amendment delays remittance obligations until injection activity begins.
Stakeholders at the table included Guy Cormier and Cole Garrett. Guy Cormier thanked Wildlife and Fisheries and industry representatives for reaching a compromise and said the revenue would be “new revenues” and that collections would begin when injection operations start. Cole Garrett, general counsel for Wildlife and Fisheries, said the department had constitutional concerns with last year’s instrument but that the parties had worked to reach a resolution and that the bill is not expected to affect existing revenues.
The committee heard support from several groups on witness cards, including the Louisiana Shrimp Association, Calcasieu Parish Police Jury and the Louisiana Oil and Gas Association. After brief discussion the committee moved to report HB 548 as amended with no objections.
Next steps: HB 548, as amended, will proceed from committee; the amendment ties local payments to any new tax revenue and clarifies that payments commence when injection activity occurs.
