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House committee rejects Shammerhorn proposal to levy per‑ton‑mile fee on carbon pipelines
Summary
House Bill 552, proposing a 5¢ per ton‑per‑mile fee on carbon dioxide pipelines with proceeds directed to local emergency preparedness within a three‑mile radius, failed in committee after debate over costs, scope and legal complications. The bill received a recorded count and failed to pass.
Representative Shammerhorn’s House Bill 552, which sought to impose a 5¢ per ton‑per‑mile levy on the operation of carbon capture and storage pipelines and dedicate proceeds to emergency services and infrastructure within three miles of a pipeline, failed to pass in the House Committee on Ways and Means on May 19.
Representative Shammerhorn told the committee the proposal aimed to provide local governments with revenues to bolster volunteer fire departments and emergency response capacity. He said the fee — “the 5¢ that I’m asking for” — would allow parishes to “upgrade their fire departments, their emergency response” and would be restricted “to be spent within 3 miles of the pipeline.”
Members and witnesses raised legal, fiscal and practical concerns. Opponents said the levy would increase pipeline operating costs dramatically and queried whether it could be applied to lines used for enhanced oil recovery (EOR) or that cross state lines. An industry witness noted the proposal could raise operating costs and raised interstate‑commerce questions. A county tax assessor in support suggested local emergency needs were underserved.
The committee held a roll‑call tally on the motion to report favorably; the vote failed with 3 yeas and 8 nays and the bill did not pass in committee. Representative Shammerhorn closed by saying the fee is needed to provide local protections for residents near planned facilities.
