In a move drawing sharp criticism from environmentalists and energy policy experts alike, Louisiana lawmakers have passed HB692, a bill that reclassifies natural gas a fossil fuel as “green energy.” The bill, expected to be signed into law by Gov. Jeff Landry, has ignited debate over the state’s energy future, with opponents warning it could entrench fossil fuel dominance at the expense of renewable energy development and grid reliability.
Louisiana has long depended on the oil and gas industry to fuel its economy. While the sector once contributed up to 60% of the state’s revenues, that number has plummeted to just 4.5% as global energy markets shift and environmental concerns grow. Yet HB692 takes a starkly different approach than what experts recommend for a sustainable transition.
Spearheaded by Rep. Jacob Landry (R-Erath), the bill codifies hydrocarbons specifically natural gas and nuclear energy as forms of “green” or “clean” energy. It directs state utilities to prioritize energy generated by hydrocarbons, citing affordability, reliability, and energy security. Critics argue this approach is not only misleading but also harmful.
“There’s nothing clean or green about continued extraction of carbon from underground,” said James Hiatt, a former oil and gas worker and founder of For a Better Bayou.
The National Origins of a State Law
Although marketed as a Louisiana-specific solution, HB692 appears to originate from a national effort backed by fossil fuel lobbyists and dark money groups. Its language mirrors a model bill from the American Legislative Exchange Council (ALEC), a Koch-funded lobbying group. ALEC’s model legislation promotes natural gas as an equivalent to renewables under the guise of “clean” energy.
The Empowerment Alliance, another gas advocacy group, celebrated Louisiana’s move, framing it as part of a larger campaign. “That’s three down, 47 more states to go,” the group wrote, referencing similar laws passed in Ohio, Tennessee, and Indiana.
Redefining “Green” and Risking the Grid
Under HB692, “green energy” is redefined to include any energy source that meets National Ambient Air Quality Standards when combusted. This includes gas, despite its high methane emissions a greenhouse gas over 80 times more potent than CO₂ over a 20-year period.
Critics note that the bill ignores the environmental and public health costs of burning gas and fails to define how “affordable” energy should be calculated. The vagueness of the bill, paired with a clear emphasis on hydrocarbons, has left consumer advocates deeply concerned.
“The rest of the bill skews toward fossil fuels,” said Jackson Voss, climate policy coordinator for the Alliance for Affordable Energy. “It implies utilities should have a strong preference for things that use hydrocarbons, at the very least.”
HB692 doesn’t explicitly override municipal regulations, but renewable energy supporters fear it will undercut local efforts. New Orleans, which regulates Entergy New Orleans independently, has a goal of reaching 100% carbon-free energy by 2050. If HB692 is used as a rationale to slow down or reject solar and wind investments, New Orleans’ clean energy goals may be jeopardized.
Similar legislation in Tennessee went further, requiring municipalities to accept gas as a renewable source effectively overriding local standards.
Proponents, including Rep. Landry, argue that natural gas is necessary to meet the state’s rising industrial demands. He cites major infrastructure projects like Meta’s $10 billion data center in Richland Parish and CF Industries’ $4 billion “blue” ammonia facility. Both projects have enormous energy demands, and Entergy has proposed building three new gas plants to meet the load.
However, the cost of this fossil-heavy expansion will fall on ratepayers. Entergy customers are expected to shoulder $470 million in upfront costs for the new power plants. Meanwhile, studies show that Louisianans already pay some of the highest utility bills in the country and suffer some of the longest and most frequent outages.
Louisiana is on the front lines of climate change. Rising sea levels, severe storms, and extreme heat are escalating in both frequency and severity. The state’s overreliance on gas, environmentalists argue, is a major contributor to this crisis.
Gas plants not only emit CO₂ but also spew hazardous pollutants that contribute to poor air quality, exacerbating public health issues in communities already vulnerable due to industrial exposure.
In 2018, a new Entergy gas plant in New Orleans failed during a storm casting doubt on the reliability claims made by gas proponents. Yet, HB692 frames gas as the only dependable option, dismissing storage-enhanced solar and wind as unreliable.
HB692 mandates that Louisiana utilities “shall… use energy generated by hydrocarbons” and grants gas projects access to state funds previously reserved for green initiatives. It also directs the Department of Energy and Natural Resources to collaborate with regulators on enforcing these priorities.
While the bill includes a clause about ensuring a sufficient supply of renewable sources, the emphasis on gas is clear. Rep. Edmond Jordan and others warn that the legislation could face constitutional challenges for encroaching on the regulatory authority of the Louisiana Public Service Commission.
Despite public support for renewables highlighted in recent LSU surveys Louisiana’s political leadership appears to be steering the state in the opposite direction. HB692 represents not just a policy shift but a philosophical one: from planning for a low-carbon future to doubling down on fossil fuels in the face of mounting climate and economic risks.
For environmentalists and consumer advocates, the new law is a dangerous detour on Louisiana’s path toward a sustainable, reliable, and affordable energy future.
