Repeals liability limits related to carbon dioxide sequestration and transmission (OR SEE FISC NOTE SG RV)

House Bill 507 repeals Louisiana Revised Statutes 30:1109(B) in its entirety, eliminating statutory caps on compensatory damages in civil liability actions involving carbon dioxide sequestration and transmission infrastructure. Under present law, noneconomic damages recoverable against the owner or operator of a carbon dioxide storage facility, carbon dioxide transmission pipeline, or the generator of carbon dioxide handled by either facility are capped at $250,000 per person, with an increased cap of $500,000 per person in cases involving wrongful death or permanent life-altering disfigurement or injury. The bill removes these maximum damage limitations entirely, allowing plaintiffs to recover uncapped noneconomic damages in such civil actions.

The practical effect of this legislation falls on owners and operators of carbon dioxide storage facilities and transmission pipelines, as well as generators of carbon dioxide handled by these infrastructure systems. These entities will face substantially increased potential liability exposure in civil litigation, as juries will no longer be constrained by statutory damage caps when awarding noneconomic compensation for personal injuries or deaths resulting from operations of these facilities and pipelines. Companies engaged in carbon capture and sequestration activities, which represent an emerging energy sector in Louisiana, will experience altered risk profiles and potentially higher insurance costs and litigation expenses related to their operations.

This statute operates within Louisiana's broader regulatory framework governing carbon dioxide sequestration under Title 30 of the Louisiana Revised Statutes, which addresses natural resources and environmental matters. The liability cap being repealed was enacted as part of Louisiana's legal structure encouraging investment and development of carbon sequestration technology and infrastructure. By removing these damage limitations, the bill fundamentally alters the legal framework that previously balanced incentives for carbon management infrastructure development against potential compensation for affected parties, returning noneconomic damages in this sector to the general principles of tort law applicable to other industries without such statutory protections.