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Plain-language explanations of carbon storage, clean fuels, environmental credits and the role registries play in keeping track of them.
This material is educational. It describes how these programs generally work and is not legal, tax or investment advice.
An environmental credit, sometimes called an environmental attribute, is a tradable record of a measurable environmental outcome, such as one metric tonne of carbon dioxide stored underground or one megawatt-hour of renewable electricity generated. The credit can be sold separately from the physical product, which lets the buyer claim the outcome.
A registry is the system of record for credits. It gives each credit a unique serial number, records who owns it, and marks it retired once it is used, so the same outcome is never claimed twice.
Programs such as Verra, ACR, Puro.earth and Isometric set standards and issue credits. A state record does not issue credits or replace those programs. It keeps one verified account of the credits produced within the State's borders, reconciled to the State's own permit data.
Without one, it is hard to know how much carbon is stored in Louisiana, which credits came from which project, or whether a credit has already been counted somewhere else.
Carbon dioxide is separated from an industrial facility's emissions, such as an ammonia, hydrogen or natural gas processing plant, or removed directly from the air.
The carbon dioxide is compressed and moved, usually by pipeline, to a storage site.
It is injected through a permitted well into deep rock formations, typically more than a mile underground, beneath layers of dense rock that act as a seal.
Operators monitor the stored carbon dioxide, the wells and groundwater during operations and for years after injection stops.
Class VI wells are permitted specifically for long-term storage of carbon dioxide under the federal Safe Drinking Water Act. Class II wells are used in oil and gas operations, including injecting carbon dioxide to recover additional oil, which leaves some carbon dioxide underground.
The U.S. Environmental Protection Agency granted Louisiana primary authority over Class VI wells, and the State has run the program since early 2024. Permits are issued by the Louisiana Department of Conservation and Energy, which also holds public notice, comment and hearing processes on applications.
Each Class VI permit defines an area of review, the region around the injection site that stored carbon dioxide or pressure could reach. Operators must study that area before injecting and monitor it afterward.
Pore space is the tiny open space inside underground rock. In storage projects, carbon dioxide is injected into the pore space of deep saline rock formations.
Under Louisiana law, the right to use pore space generally rests with the owner of the surface. Surface, mineral and pore space rights can be held by different people, so it is worth checking your title.
Storage operators usually sign pore space leases or servitudes with landowners. Louisiana law also allows the State to combine pore space into a single storage unit once owners of at least 85 percent of the interests, measured by surface acreage, have agreed in writing, with provisions for owners who did not sign.
How am I paid: per acre, per tonne stored, or both?
How long does the agreement last, and what happens after injection stops?
What surface use is allowed for wells, roads, pipelines or monitoring equipment?
Who is responsible if something goes wrong, and am I indemnified?
Will I have access to monitoring data for my property?
How does this agreement interact with existing mineral leases?
Can the operator assign the agreement to another company?
LAR does not represent landowners or operators and does not negotiate leases. Landowners should consider independent legal advice before signing.
Permits for Class VI storage wells are issued by the State. Projects still affect local roads, emergency planning, land use and the local economy, so parish officials and residents often have questions.
The Department of Conservation and Energy publishes Class VI applications, draft permits, public notices and hearing dates on its website. Registered projects and registry activity will also be visible through the Louisiana Asset Registry.
A federal tax credit for each metric tonne of carbon dioxide captured and securely stored or used. For facilities placed in service after July 4, 2025, the credit is up to $85 per tonne for capture at industrial sources and up to $180 per tonne for direct air capture, available for 12 years, with inflation adjustments beginning in 2027. The credit can be transferred to other taxpayers.
Claimants must show that the carbon dioxide is securely stored. That has historically relied on federal greenhouse gas reporting, and the Treasury Department has issued interim guidance while those reporting rules are revised.
A federal tax credit for low-emission transportation fuels made in the U.S., such as renewable diesel, sustainable aviation fuel and renewable natural gas. The credit is calculated per gallon or gallon equivalent and grows as a fuel's lifecycle emissions fall. Under current law it applies to fuel produced through 2029.
A renewable energy certificate (REC) represents one megawatt-hour of renewable electricity. A RIN is a serial number under the federal Renewable Fuel Standard that tracks gallons of renewable fuel.
Credit values and rules change. Consult a qualified tax adviser about any specific project.
Permits, applications and program rules.
Federal requirements for carbon storage wells.
Current guidance on proving secure storage.
Louisiana carbon management education.
Research on Louisiana's energy economy.