Louisiana Bill Redefines Gas as “Green Energy”: A Controversial Move

Baton Rouge, LA – A new bill redefining natural gas as “green energy” has sparked controversy in Louisiana, raising concerns about the state’s commitment to renewable energy and its vulnerability to climate change.

The bill, recently passed by the Louisiana Legislature and awaiting Governor Jeff Landry’s signature, instructs state utilities to prioritize energy generated by hydrocarbons. Critics argue this move undermines efforts to transition to cleaner, more sustainable energy sources.

“There’s nothing clean or green about continued extraction of carbon from underground,” says James Hiatt, founder of For a Better Bayou. “To categorize [hydrocarbons] as green is just a blatant lie by lobbyists for the oil and gas industry.”

Implications for Louisiana’s Energy Future

House Bill 692, sponsored by Rep. Jacob Landry, arrives as state regulators begin planning how Louisiana utilities will source energy to meet growing demands. Advocates worry this could lead utilities to favor gas over renewable developments, potentially weakening clean energy initiatives in cities like New Orleans.

While Louisiana has historically relied on the petrochemical industry, its economic contributions are declining. Simultaneously, the state faces severe climate change impacts, including coastal erosion and record-high temperatures.

The “Green” Gas Campaign

The bill appears to be part of a broader, nationally-backed campaign to rebrand gas as “clean” or “renewable” energy. Similar laws have been passed in other states since 2023, challenging renewable energy initiatives.

Louisiana’s energy grid already struggles with reliability despite high energy consumption. The state lags in renewable energy generation, relying heavily on gas and nuclear power.

Defining “Green Energy” in Louisiana

The new definition of “green energy” will include hydrocarbons that meet National Ambient Air Quality Standards during combustion. This could make gas entities eligible for state funding programs supporting “green” or “clean” energy initiatives.

The bill also emphasizes domestically produced energy sources and mandates that utilities use energy generated by hydrocarbons. It tasks the Department of Energy and Natural Resources with determining the state’s energy sourcing.

Concerns Over Energy Costs and Reliability

Critics, like Jackson Voss of the Alliance for Affordable Energy, point out that the bill’s assumptions about energy sources are based on misconceptions. The bill defines “affordable” energy vaguely, without specifying how costs will be calculated.

Louisiana residents already face high energy bills and frequent power outages. A recent report found that the state’s overreliance on gas contributes to these issues.

Potential Impact on Renewable Energy

While most Louisiana residents support expanding renewables, this bill could hinder their growth. New Orleans has a renewable portfolio standard requiring Entergy, the state’s largest utility, to eliminate carbon-emitting energy sources by 2040.

It remains unclear whether the bill will override the city’s requirements, but renewable energy advocates fear it could discourage new renewable projects.

Industrial Expansion and Energy Demands

Rep. Landry suggests the bill is designed to support Louisiana’s growing economy, citing projects like Meta’s $10 billion investment. However, meeting the energy demands of such projects could strain the state’s grid.

Entergy is planning new gas power plants to supply energy to Meta’s data center, a project that will cost customers millions. Other industrial expansions, such as CF Industries’ “blue” ammonia plant and Hyundai Motor Group’s steel plant, will further increase energy demands.

The Role of Dark Money and Industry Influence

Gov. Landry previously signed a pro-gas proclamation, echoing sentiments promoted by gas advocacy groups like The Empowerment Alliance. This group is pushing similar bills across the country.

The Heartland Institute, a climate denialist group, also supports the bill. These groups are working to block transitions away from fossil fuels and undermine renewable energy development.

Bills similar to Louisiana’s have passed in Ohio, Tennessee, and Indiana, many mirroring a model bill by the American Legislative Exchange Council (ALEC), a Koch-funded lobbying network.

This legislation marks a significant shift in Louisiana’s energy policy, potentially locking the state into continued reliance on fossil fuels despite the growing risks of climate change.