The Louisiana Legislature's Ways & Means Committee convened on May 12, 2025, to discuss significant amendments to a proposed carbon dioxide injection tax bill. The meeting focused on a conceptual amendment to reduce the tax rate from $3 to $1 per metric ton of carbon dioxide injected, with discussions surrounding the implications of this change.

The amendment was introduced by a committee member who expressed the need for further dialogue regarding a sunset date for the tax, indicating that the specifics of this provision were still under consideration. The chair acknowledged the proposal and opened the floor for questions regarding the amendment.

Representative Macon raised concerns about the lack of substantial evidence to support the proposed tax rate, questioning whether a comprehensive study involving all stakeholders had been conducted. He emphasized the importance of ensuring that the tax rate is fair for local communities, industries, and the state as a whole. In response, the proposing member clarified that while no formal study had been completed, there had been verbal communications with various stakeholders, including industrial representatives, indicating a general comfort with the $1 rate.

The discussion also touched on the need for a balanced approach to taxation in light of the emerging carbon dioxide injection industry. Representative Echols highlighted the necessity for local governments to receive adequate funding to provide essential services, such as emergency response and infrastructure maintenance, as new industries develop.

The committee members acknowledged that while the proposed tax is new and may require adjustments in the future, it is crucial for supporting local government services without overburdening taxpayers. The chair concluded the discussion by reiterating the importance of continued stakeholder engagement and the need for a fair and informed approach to the tax structure.

As the meeting progressed, the committee aimed to finalize the amendment and prepare for further discussions on the bill's implications for Louisiana's emerging carbon dioxide injection industry. The next steps will involve additional stakeholder consultations to ensure that the tax framework is equitable and effective.