Legislators kill two taxes on carbon capture
By Nolan McKendry | The Center Square
Louisiana lawmakers have rejected two separate proposals that would have imposed new taxes on carbon capture and sequestration operators, stalling efforts to generate local revenue from the growing industry.
Rep. Shane Mack's House Bill 44, which proposed a per-ton injection tax on carbon dioxide stored underground, failed in committee last week in a 4-10 vote. The Livingston Parish Republican originally proposed a $3-per-metric-ton tax but amended it down to $1 in response to industry concerns.
'There are several industrial representatives that are comfortable with a $1 tax,' Mack said during testimony.
Under the bill, revenue from the tax would have been distributed to parishes where carbon is stored, based on the geographic footprint of each facility. The Louisiana Department of Revenue would have collected the tax, and the Department of Energy and Natural Resources would certify injection volumes.
The bill drew pushback from the oil and gas industry. Tommy Faucheux, president of the Louisiana Mid-Continent Oil and Gas Association, warned that imposing a tax too early in the industry's development could chill investment and drive CCS projects to other states.
A second measure, House Bill 646 by Rep. Robby Carter, D-St. Helena, proposed a 30% excise tax on the gross proceeds of geologic carbon storage. Carter voluntarily deferred the bill until next year, but not before voicing his broader concerns about CCS.
'I think everyone on the floor knows I'm against carbon sequestration,' Carter said. 'I see us in 50 or 60 years, St. Helena being like the problems with the coast — having a big problem with these wells, with the carbon bubbling up, or even having lakes form where they've fallen in, and having no money because we didn't get any money to take care of it.'
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