House Bill No. [insert number] proposes the establishment of an injection tax for carbon dioxide sequestration in Louisiana, specifically targeting operators of Class VI wells. The bill mandates that these operators pay a tax of three dollars per metric ton of carbon dioxide injected. The tax must be reported monthly to the Louisiana Department of Revenue (LDR) and paid electronically by the twentieth day of the month following the injection. Additionally, operators are required to submit a report detailing the total amount of carbon dioxide injected, which will be certified by the Department of Energy and Natural Resources (DENR).

The revenue generated from this injection tax will be directed into the state treasury and, after fulfilling obligations to the Bond Security and Redemption Fund, will be allocated to the parishes where the carbon dioxide is stored. If the storage facility spans multiple parishes, the tax revenue will be distributed proportionately based on the surface area above the storage site. The bill also stipulates that storage operators must maintain relevant data for tax calculations and make it available for inspection by DENR, which can disclose this information to parishes entitled to tax revenue. The funds received by the parishes can be utilized for any lawful purpose.