Louisiana House Bill HB60

Louisiana 2017 Regular Session

• Introduced: 3/15/17
• Refer: 3/15/17
• Refer: 4/10/17

Caption

Imposes a tax on all oil and gas that runs through pipelines located in the state

Impact

If enacted, HB 60 would fundamentally alter the financial landscape for natural gas transportation within Louisiana. The bill represents a departure from existing laws that prohibited additional taxes based on the transportation of oil and gas. By permitting this new tax, the legislation could provide local and state revenue streams that are crucial for addressing infrastructure and environmental concerns related to gas transportation. Furthermore, it positions Louisiana to receive complicated compensation for the impact that pipeline infrastructures have on its economy and environment.

Summary

House Bill 60 is a proposed piece of legislation that aims to levy a tax on the transportation of natural gas through pipelines in Louisiana. Specifically, the bill imposes a tax of 50 cents for every 1,000 cubic feet of natural gas transported via a pipeline exceeding one mile in length. The proceeds from this tax are intended to go into the Fair Share Fund, which is established under the Louisiana Constitution. This legislation seeks to rectify perceived injustices regarding the distribution of the costs and benefits associated with natural gas transportation, arguing that Louisiana has borne an unfair burden relative to its role in the energy sector.

Sentiment

The response to House Bill 60 has been mixed among stakeholders. Proponents argue that the tax will create much-needed revenue to support state infrastructure and address the environmental impacts of natural gas transportation, which they view as a fair exchange for the benefits provided to other states. However, detractors may see the bill as an additional financial burden on the natural gas industry, potentially affecting delivery costs and market competitiveness. The sentiment is thus split, reflecting a broader debate about resource equity and environmental responsibilities.

Contention

Among the notable points of contention are concerns regarding the potential for increased operational costs for natural gas companies operating in Louisiana. Critics of the bill worry that this new tax could lead to increased prices for consumers and might discourage investment in the state's energy sector. Additionally, discussions may extend to the implications of the Fair Share Fund's deployment and oversight, raising questions about transparency and the intended use of the collected tax revenues.