Louisiana Passes Significant New Carbon Capture and Sequestration Bill

June 13, 2023

The Louisiana Legislature recently wrapped up its 2023 Session. While there were nine bills this Session that addressed carbon capture and sequestration (CCS), only one of them passed and is currently awaiting the Governor's signature—House Bill 571 sponsored by House Speaker Clay Schexnayder. This bill was the only one of the nine original CCS bills that actually sought to advance CCS projects in Louisiana. The bill made a number of notable amendments to current law, as outlined below.

Key Changes:

New Environmental Analysis Requirement:

New Reporting and Record-Keeping Requirements:

Limited Liability for Project Operators:

Fiscal Updates:

Recordation of Notice of Geologic Storage:

(1)  Upon recordation of an instrument signed by the parties to the agreement or their successors declaring that the geologic storage agreement has terminated.

(2)  On the date that the geologic storage agreement may finally terminate as set forth in the notice of geologic storage agreement.

Key Takeaways

The passage of this bill shows that Louisiana is serious about its commitment to carbon capture and sequestration development. The fact that eight of the nine bills were defeated in committee or on the House Floor—all of which were aimed at deterring future CCS projects—is significant. It shows that Louisiana is moving forward with CCS because CCS projects will not only help eliminate climate change, but will also be an economic driver for the State, bringing in crucial revenue and jobs to local parishes. Now is the time for companies at the forefront of CCS operations to communicate to the general public the facts and science behind CCS so that everyone can operate from a place of knowledge and understanding, not fear.