Provides for carbon sequestration. (8/1/25) (EN NO IMPACT See Note)
Summary
SB 36 revises Louisiana’s carbon sequestration law, which governs the permitting and oversight of carbon dioxide injection and storage projects. The bill amends the duties of the commissioner of conservation and adds a new requirement that the secretary give substantial consideration to local government comments when deciding how to proceed in matters that require a public comment period or public hearing under the chapter.
The bill also clarifies treatment of existing and future certificates tied to carbon dioxide transport and storage. It preserves the validity of any certificate of public convenience and necessity already issued to a carbon dioxide transporter before the effective date, and it authorizes the commissioner to issue a certificate of completion of injection operations after a public hearing if the operator meets the statutory conditions.
A major policy provision states that accepting or complying with certificates, rules, or orders under the carbon sequestration chapter does not make a storage operator or transporter a common carrier or public utility, does not impose common-carrier or public-utility duties or liabilities, and does not increase state tax liability unless tax laws are separately changed. This is intended to limit unintended legal consequences for carbon capture and storage participants.
The bill’s impact is primarily on Louisiana’s carbon sequestration regulatory framework and the legal status of carbon dioxide transport and storage operators. It reinforces agency authority, formalizes local-government input in public proceedings, protects previously issued transport certificates, and provides liability and tax clarifications for project participants. The bill was enacted with strong support in both chambers, passing the Senate 36-0 and the House 99-2, indicating broad bipartisan approval.
Overall sentiment around SB 36 appears favorable and pragmatic, with legislators supporting clearer rules for carbon sequestration development and regulatory certainty for operators. The main point of contention, reflected in the structure of the bill rather than in recorded debate, is the balance between promoting carbon capture infrastructure and ensuring local government participation and public oversight. The bill’s protections against common-carrier/public-utility classification and added tax exposure suggest an effort to reduce legal risk for industry, while the local-comment provision reflects sensitivity to community and parish concerns.
Impact
SB 36 amends Louisiana Revised Statutes Title 30, Chapter 7/related carbon sequestration provisions by adding local-government comment consideration, preserving existing transporter certificates, and clarifying that compliance with carbon sequestration regulations does not itself convert operators into common carriers or public utilities or increase tax liability absent separate tax-law changes. It affects the commissioner of conservation, carbon dioxide transporters, storage operators, and applicants for certificates of completion of injection operations.
Sentiment
The bill appears to have enjoyed broad support and little overt opposition, as shown by unanimous or near-unanimous votes in the Senate and overwhelming approval in the House. The available voting history suggests a generally positive, consensus-driven view of the measure as a technical but important clarification of carbon sequestration law and project regulation.
Contention
The principal policy tensions are between facilitating carbon capture and storage development and preserving local oversight and legal accountability. Supporters likely favored the bill’s regulatory certainty, protection for existing certificates, and limits on unintended common-carrier, public-utility, and tax consequences. Potentially affected parties include local governments seeking meaningful input, and carbon sequestration operators and transporters seeking reduced regulatory and liability exposure.