LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 783 HLS 24RS 810
Bill Text Version: ENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: April 23, 2024 8:42 AM Author: MCCORMICK
Dept./Agy.: Depatement of Energy and Natural Resources
Subject: Eminent Domain Analyst: Richie Anderson
ENERGY/CONSERVATION EG SEE FISC NOTE GF RV See Note Page 1 of 1
Provides relative to eminent domain and compensation for pore space owners
In cases where the power of eminent domain is exercised to expropriate property including pore space for the purpose of
Carbon Capture and Sequestration, proposed law would require the landowner to receive compensation no less than the
maximum amount paid to any other landowner in the expropriation proceeding. Furthermore, it specifies that this
compensation for the pore space owner will be calculated on a per-acre basis. The provisions of the proposed law shall not
apply when a existing contract is present between the landowner and the storage operator.
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Annual Total
EXPENDITURE EXPLANATION
There is no anticipated direct material effect on governmental expenditures as a result of this measure.
REVENUE EXPLANATION
The Department of Energy and Natural Resources (DENR) reports that the proposed law may change the economic viability
and profitability of Carbon Capture and Sequestration (CCS) projects in Louisiana. Revenues may be impacted to the extent
that facility operators are discouraged from participating in CCS in Louisiana. The fiscal impact is uncertain because of the
unknown information surrounding the amount of expropriation of pore space that will be needed, the economic feasibility of
particular CCS projects, and the reaction of companies engaging in CCS activities. When a CCS project commences, the
revenues generated contribute to the SGF, to dedications in the Mineral and Energy Operation Fund, the Carbon Dioxide
Geologic Storage Trust Fund, and the parish governing authority where the injection site is located as seen in the table
above.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Patrice Thomas
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} Deputy Fiscal Officer
or a Net Fee Decrease {S}