A bill the Louisiana Legislature will consider
during this spring’s regular session would redress bad federal government
policy that diverts use of lands within the state to low priority purposes.
HB 4 by Republican
state Rep. Chuck
Owen would allow individual parishes to have a final say over carbon
capture sequestration within their boundaries, subject to a popular veto. The
governing authority may disapprove of a sequestration siting, but if it approves
a referendum may be called by 15 percent of registered voters to hold a vote
disapproving. Either way, local interests will determine whether such projects
get built.
That’s as it should be, because of the bias built
into the tax code that is the only thing, other than ideologically-based faith,
that prompts any building of these facilities placed underground to store carbon
produced in industrial or consumer surroundings. Understanding the interlocked
nature of the process explains where Louisiana is and why the law is beneficial.
Carbon capture, in varying forms from attendant to
some industrial process that produces carbon dioxide to grabbing it from ambient
as a byproduct of things such as vehicle exhaust, is the idea that removing it
from the atmosphere somehow conveys useful benefits to society. Ignoring the fact
that increased
levels of carbon dioxide bring a number of economic and social benefits to
humans, climate alarmists of a pragmatic streak have seized upon the idea
as a way of having fossil fuel use – which is forecast to continue to increase countering
an energy
transition that never will happen that both climate alarmist pragmatists
and ideologues fail to understand – along with renewable use that will solve
the intractable problems for the foreseeable future of renewable source
characteristics of intermittency and prohibitive expense.
The problem is capture
itself is prohibitively expensive, and even with generous federal government subsidies
the only activity close to break-even is capture from a manufacturing process. That’s
the expensive and entirely cost-ineffective side of the equation, which nevertheless
is pursued because there are some commercial applications for it and/or an ideological
imperative exists that it is one avenue to prevent the mythical catastrophic
anthropogenic global warning scenario that exists as an article of faith among
alarmists but which at present exists without any quality scientific basis to
it. Unfortunately, these fanatics make a lot of noise and cow business into pursuing
these kinds of wasteful projects.
So, it’s the other end of it, storage, where money
could be made at the individual level and where Louisiana landowners become
disproportionately advantaged given both the state’s geology and topography and
the concentration of industries producing carbon and pipelines to transport it.
But it has a different set of potential costs around how transport
or storage leakage can have severe environmental and public health effects.
In other words, the economic advantages of it to a community well may be
outweighed by the low-probability but extremely high-cost disadvantages, and as
there’s no climate emergency in the offing, communities that bear the risk of
these disadvantages ought to have every say possible in whether they must
submit to this.
Louisiana, for
now among just four other states, has complete control over permits for wells
that lead to storage capacity. But it has no control over federal tax credits
that are driving this misallocation of resources that distort the marketplace
into throwing money around for far more storage than the unsubsidized market
would bear. That could change through the budget reconciliation process, by
restoring much tougher eligibility requirements, reducing the value, and removing
the refundability of it, but with the GOP having slim congressional majorities
that doesn’t seem likely for now.
While government generally should be prevented
from interfering with voluntary transactions between private parties, that its
thumb already is on the scales in this instance justifies the exception with
this bill. Hysteria at its root doesn’t make for good policy, and the bill at
least partially corrects for that.