Debate over local control and state regulation of emissions took on David vs. Goliath tones Tuesday at the State Capitol, where a legislative committee considered a raft of bills dealing with carbon capture and sequestration (CCS).
Some 30 CCS projects have been proposed for Louisiana that would pull carbon dioxide from industrial smokestacks and pipe it to locations where it can be stored underground. Ten carbon storage bills were on the House Committee on Natural Resources and Environment agenda.
They included House Bill 4 by Rep. Chuck Owen, R-Rosepine, which would give all 64 parishes the right to vote on whether they would allow CCS projects within their boundaries. After hours of debate, the proposal failed in a 6-10 vote with bipartisan opposition and Republicans accounting for all the votes in favor.
Three CCS projects are proposed for Allen and Vernon parishes within Owen’s district. In an interview after the vote, Owen said he believes the oil and gas industry is investing in the technology in response to so-called “legacy lawsuits” against their companies for damages to Louisiana’s coastal wetlands.
A Plaquemines Parish jury awarded its local government $740 million in damages earlier this month in their lawsuit against Chevron. Freeport-McMoran reached a $100 million settlement with 12 parishes in 2019 in its legacy lawsuit. Several similar cases are pending in other parishes against Big Oil.
“People like me – legislators and governors – created this mess, and it destroyed oil and gas,” Owen said. “It has forced oil and gas to be prostituted with (CCS).”
Support for carbon capture and sequestration in Louisiana does not fall along traditional political lines. Its proponents largely come from the oil and gas industry, who see the technology as a meaningful way to reduce the emissions tied to global warming. Opponents view the technology as an untested safety hazard and another way to promote more fossil fuel extraction.
CCS detractors have advocated for more local control over storage projects and have butted heads with industry backers who warn that varying governing regulation among 64 parishes will have a chilling effect on economic development.
Owen and Rep. Shane Mack, R-Livingston, argued that local control doesn’t necessarily end CCS projects but amplifies the voices of local communities.
“Please don’t think Chuck is here trying to kill off carbon capture,” Owen told committee members.
Rep. Danny McCormick, R-Oil City, framed his viewpoint on carbon capture with property rights in mind. He aired concerns over projects with underground storage that could expand past parish lines and noted that CO2 pipelines could have to cut through private land.
“Us here in Louisiana are pretty independent, you know, home of the free and of the brave. I think we should take into consideration private property rights,” McCormick said.
Industry representatives spoke in support of keeping carbon capture regulations minimal and managed on a statewide front, rather than allowing each parish and locality to establish its own rules.
Tommy Faucheux, Louisiana Mid-Continent Oil and Gas Association president, said CCS provides a “new opportunity” to “strengthen and expand” his industry in Louisiana. Interest in building such projects in Louisiana could cool at the thought of further regulation without consistency, he said.
The powerful Louisiana Association of Business and Industry also opposes House Bill 4, arguing it would add more red tape to industrial development. LABI president and CEO Will Green said there will be major economic consequences if locals are given power over whether CCS projects move forward.
“The last thing they need is more layers of government,” Green said, adding that more regulatory steps for CCS projects would be “harmful” to advancing the industry.
The state Department of Energy and Natural Resources expects to issue dozens of permits for the wells needed to store carbon dioxide underground starting later this year. Paige Carter, chief business development officer with Louisiana Economic Development, said changing the rules would not be fair to projects already in motion and cast Louisiana in a bad light to business.
Other bills the committee considered included:
Senate Bill 73 by Sen. Mike Reese, R- Leesville, advanced without opposition. It would require the state conservation commissioner to follow CCS permitting rules similar to those in place for coastal restoration projects. Applications would give “substantial consideration” to public comment and local government input on whether a project takes place.
House Bill 601 by Rep. Brett Geymann, R- Lake Charles, in a tie vote, did not advance from the committee. It would restrict the use of eminent domain for carbon dioxide storage pipelines. The principal allows a government or business entity to force the sale of private property for a use that’s considered to be for the greater good.
The House Committee on Natural Resources recessed so members could convene on the floor Tuesday afternoon. The meeting resumed after the full House adjourned, and this report will be updated with the outcome of other bills on the agenda.
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