House Bill No. [insert number] proposes the establishment of an excise tax on the operation of carbon capture and storage (CCS) pipelines in Louisiana. The tax is set at five cents per mile for each ton of carbon dioxide or related substances transported through these pipelines. The bill outlines the responsibilities of CCS pipeline operators, including the requirement to report and pay the tax quarterly. Additionally, it mandates that the state treasurer remit the collected revenues to the governing authorities of the parishes where the pipelines are located, using a formula based on the taxable activity in each parish.

The bill also stipulates that the funds received by parish governing authorities must be used exclusively for projects and services within three miles of a CCS pipeline. These funds can be allocated for infrastructure improvements, environmental mitigation, public safety enhancements, and other related public services. The provisions of this act will take effect on July 1, 2025, and the Department of Revenue is authorized to promulgate necessary rules and regulations to implement the tax and its administration.