ARTICLE
11 April 2025

The 2025 Liskow CCS Legislative Update

LL
Liskow & Lewis

Contributor

Liskow is a full-service law firm providing regulatory advice, transactional counsel, and handling high-stakes litigation for regional and national companies. Liskow lawyers are strategically located across the gulf coast region and serve clients in the energy, environmental, and maritime sectors, as well as local and regional businesses in virtually all industries.
The 2025 Louisiana Legislative Session will officially begin on Monday, April 14. Twenty bills have been filed on carbon capture sequestration in Louisiana.
United States Louisiana Energy and Natural Resources

The 2025 Louisiana Legislative Session will officially begin on Monday, April 14. Twenty bills have been filed on carbon capture sequestration in Louisiana. The bills range from:

  • allowing each parish to decide whether to allow CCS in its parish;
  • eliminating eminent domain for all CCS pipelines;
  • taxing CCS;
  • increasing requirements and reporting on both CCS storage facilities and pipelines;
  • requiring the compensation of mineral rights owners.

Read a brief overview of each proposed bill below:

House Bills:

  • HB 4 (Owen) Local Option – each parish can vote on allowing CCS in its parish
  • HB 75 (McCormick) Any pore space owner forced pooled/unitized will receive the highest compensation paid to any other owner
  • HB 78 (Carrier) Local option for Allen Parish to choose CCS
  • HB 250 & 251 (Owen) Local option for Vernon & Beauregard Parishes
  • HB 304 (Carter) Expropriation hearings are to be held in parish where property is located
  • HB 353 (Mack)
    • (1) Adds requirement for a storage operator to receive a certificate of public convenience and necessity to show the lack of producing minerals below the storage reservoir;
    • (2) Adds civil and criminal penalties if a storage operator does not provide required reports;
    • (3) Requires emergency plan relating to CCS pipelines;
    • (4) Requires storage operator and transporter to provide emergency equipment to local responders;
    • (5) Requires storage operator to have financial security or insurance to protect public water systems
    • (6) Adds strict liability to storage operator or transporter for any damages caused by unauthorized release of CO2
    • (7) Prohibits injection wells and pipelines within 1/2 mile of homes, schools, heath care facilities, houses of worship;
    • (8) Requires advance notice of construction of injection well or pipeline to all residences, business, and gov't entities within 2-mile radius
    • (9) Requires remediation plan for groundwater contamination
    • (10) Requires continuous monitoring of all underground drinking water sources
    • (11) Requires routine sampling and testing of public water system by a third party, upon request
    • (12) Requires alternative potable drinking water within 24 hours and alternative water supply within 30 days if drinking water is contaminated
  • HB 380 (Schamerhorn) Eliminates eminent domain for CCS storage and pipelines
  • HB 396 (McCormick) Declares CCS illegal
  • HB 444 (Mack) Establishes injection tax of $3 per metric ton for parish where CO2 is stored; also provides collection procedures
  • HB 522 (McCormick) Places moratorium on CCS in Louisiana until July 1, 2026
  • HB 537 (Schamerhorn) Creates a carbon dioxide pipeline victim lien for anyone within 25-mile radius of a pipeline release
  • HB 552 (Schamerhorn) Levies an excise tax on CCS pipelines at 5 cents per mile for parish(es) where pipeline is located
  • HB 553 (Schamerhorn) Eliminates eminent domain for CCS pipelines
  • HB 568 (Carrier) Adds reporting requirements for CCS pipeline leaks, seismic activity related to CCS injections, and CCS equipment malfunction that could lead to a release; and related penalties for failure to report
  • HB 585 (McCormick) Requires advance notice to all owners (surface, mineral, servitude, operators) within the AOR before a Class VI can be deemed administratively complete
  • HB 601 (Geymann) Limits right of eminent domain for CCS pipelines to 5% of the proposed right of way (i.e, need 95% by consent to use eminent domain); Limits right of eminent domain to US companies; Requires additional upfront notice to landowners that eminent domain cannot be used without 95% consent by all owners; Requires the Commissioner to consider whether CCS pipeline considered alternative routes for non-consensual landowners before issuing certificate of convenience and necessity
  • HB 632 (Riser) Requires CCS storage operators to obtain pore space agreements from mineral rights owners; Requires mineral rights owners to be included in the 75% minimum for unitization; Requires mineral rights owners to be compensated if forced pooled via unitization proceeding; Includes mineral right owners in notices required to be given to landowners by CCS companies

Senate Bills:

  • SB 36 (Hensgens) Placeholder bill
  • SSB 73 (Reese) Requires the Commissioner to give "substantial consideration to local government comments" when determining whether to issue a certificate of public convenience and necessity for a CCS storage facility or CCS pipeline

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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