Louisiana 2024 Regular Legislative Session: Laying the groundwork for clean energy policy

New leadership in Louisiana brought about considerable shifts in the state’s energy policy during the 2024 Regular Legislative Session. In addition to a new governor, Governor Jeff Landry, who assumed office in January, many members of the legislature were also new, including 50 out of 105 members of the state House of Representatives and 19 out of 39 members of the state Senate. With new legislators and leadership came new policies. Louisiana made big changes in energy policy, ranging from unitization for carbon capture and sequestration (CCS) to a clean hydrogen task force, and from state agency reorganizations to increased air monitoring requirements.   

Here are some of the highlights: 

1. Carbon Capture and Sequestration (CCS): The Louisiana legislature passed eight bills related to CCS, including HB492, which clarified the use of eminent domain authority for CCS transport and geologic storage; HB966, which authorized the unitization of land for carbon dioxide (CO₂) sequestration to enable efficient storage of CO2 across land areas; HB937, which limited the liability of landowners for CO₂ sequestration activities on their property; HB169, which clarified the amount recoverable for compensatory damages resulting from CCS; and HB516, which provided a framework for state approval and oversight of CCS projects to increase safety, property rights, and compliance. These bills further clarified geologic storage rights and laid the groundwork for future CCS projects in Louisiana. The House also approved two resolutions for it to study how local governments could earn revenue from CO₂ storage (HSR5) and to understand compensation for owners of stranded minerals (HSR6). 

2. Clean Hydrogen: The legislature sparked an important and dynamic conversation on clean hydrogen through HCR64, which established a clean hydrogen task force to develop strategies and policies that advance clean hydrogen within the state. CATF Action worked closely to share information with legislators and support legislation on this topic.  

3. Renewable and Alternative Energy: Louisiana took steps to support renewable energy efforts through HB300 and HB305, which required distribution of state funds received through offshore renewable energy production to state coastal restoration; SR60, which recognized Louisiana Renewable Energy Day; and SR26, which designated Gulf State Renewable Energy Industries Association Day. 

4. Agency Reorganizations: The legislature brought about Governor Landry’s commitment to reorganize state agencies. SB65 formally reestablished the Department of Energy and Natural Resources (LDENR) while HB810 established LDENR’s organization, duties, and responsibilities to consolidate energy and natural resources functions. LDENR’s reorganization will improve departmental efficiency, streamline regulatory processes for clean and traditional energy, and enforce environmental standards. Additionally, SB494 known as the “Positioning Louisiana to Win” bill significantly reformed the state’s economic development strategy and restructures the Louisiana Department of Economic Development. This bill may indirectly benefit clean energy by, for example, streamlining the process for business permits and approvals  

5. Siting: The legislature passed SB108, which altered the procedures and conditions under which property can be expropriated by public entities. HR2 called on the U.S. Congress to pass federal permitting reforms to accelerate the deployment of new energy infrastructure. Related, HB461 mandated the confidentiality of documents related to economic development projects at the local and parish levels, intended to protect sensitive information during planning and negotiation phases of projects, including clean energy projects. While protecting information, this legislation could create public skepticism by excluding communities in the decision-making process.  

6. Brine: SB285, which passed unanimously through the House and Senate, sought to clarify the process and use of brine for direct lithium extraction, intended to increase lithium production in Louisiana.  

7. Air Monitoring:  SB503 mandated the implementation of regulatory-grade community air monitoring systems for state-level review of and response to permit noncompliance and alleged violations and SCR30 established a community air monitoring and notification task force, to which CATF was appointed. 

Of note, several energy-related bills failed to garner enough support this session, including bills on CCS moratoria and eminent domain. For example, HB276, which would have imposed local land use requirements on CCS activity,  HB73, which would have levied a tax on CO2 injections for geologic sequestration, and HB96 which would have provided for a property assessed clean energy loan program, all failed in the House. HB934, which would have allocated revenue from geologic sequestration projects to fund various state environmental and conservation initiatives, was vetoed. 

Louisiana’s 2024 Regular Legislative Session carried many energy-related policies across the finish line and laid the groundwork for more important conversations. In 2025, we anticipate greater buy-in on clean energy, further discussions around air monitoring and CCS, increased momentum for clean hydrogen, and more clarity on agency reorganizations. CATF looks forward to continuing to serve as a partner in Louisiana to secure a cleaner future.