Louisiana becomes latest US state to redefine natural gas as green energy

Business Standard

6 days ago

Louisiana Gov Jeff Landry, a major booster of the state's petrochemical industry, says the new law 'sets the tone for the future' and will help the state 'pursue energy independence and dominance'
AP Washington
Louisiana is the latest state to redefine natural gas as green energy under a new law the Republican governor signed this week, even though it's a fossil fuel that emits planet-warming greenhouse gases.
Three other states led by Republicans Indiana, Ohio, and Tennessee have passed similar legislation.
In some Democratic-led states, there have been efforts to phase out natural gas. New York and California cities like San Francisco and Berkeley have moved to ban natural gas hookups in new buildings, though some of these policies have been successfully challenged in court.
President Donald Trump has signed a spate of executive orders promoting oil, gas and coal, which all warm the planet when burned to produce electricity. The European Union previously designated natural gas and nuclear as sustainable, a move that Greenpeace and the Austrian government are suing over.
Louisiana Gov Jeff Landry, a major booster of the state's petrochemical industry, says the new law "sets the tone for the future" and will help the state "pursue energy independence and dominance." Environmental groups say these new laws are part of a broader push by petrochemical industry-backed groups to rebrand fossil fuel as climate friendly and head off efforts to shift electric grids to renewables, such as solar and wind. It's "pure Orwellian greenwashing," said Tim Donaghy, research director of Greenpeace USA.
Globally, the term green energy is used to refer to energy derived from natural sources that do not pollute solar, wind, hydropower and geothermal energy. Louisiana's law could enable funds slated for state clean energy initiatives to be used to support natural gas.
Natural gas has been the top source of electricity generation in the United States for about a decade, since surpassing coal. Coal and natural gas both produce carbon dioxide that warms the planet when burned, but coal produces over twice as much.
Switching from coal to natural gas lowers carbon dioxide emissions, but it can increase emissions of methane. The primary component of natural gas, methane is an extraordinarily powerful greenhouse gas, more potent at trapping heat than carbon dioxide and responsible for about 30 per cent of today's global warming.
Besides coal, everything else is better than gas for the planet, said Rob Jackson, a Stanford University climate scientist. Building new gas plants locks in fossil fuel emissions for decades, he added.
Redefining natural gas Louisiana's law orders state agencies and utilities regulators to "prioritise" natural gas, along with nuclear power, on the grounds that it will improve the affordability and reliability of the state's electricity.
The law's author, Republican Rep. Jacob Landry, runs an oil and gas industry consulting firm.
"I don't think it's anything crippling to wind or solar, but you got to realise the wind don't blow all the time and the sun don't shine every day," Landry said. The legislation "is saying we need to prioritise what keeps the grid energised," he added.
Landry told The Associated Press that he used a model bill by the American Legislative Exchange Council as a template. ALEC is a conservative think tank with ties to the oil and gas industry's billionaire Koch family.
ALEC helped shape Ohio's 2023 law to legally redefine natural gas as a source of green energy, according to documents obtained by the watchdog group Energy and Policy Institute and first reported by the Washington Post.
ALEC spokesperson Lars Dalseide said that just because an Ohio lawmaker left the 2022 ALEC convention with what he described as a model for legislation to define natural gas as clean energy does not mean the group shaped Ohio law. Dalseide said the convention is "a place where legislators from across the country gather to exchange ideas." Ohio's legislation was also heavily influenced by an advocacy group led by Republican megadonor Tom Rastin, a now retired gas industry executive.
According to Dave Anderson, policy and communications manager for the Energy and Policy Institute, these laws are part of a long-running disinformation campaign by the gas industry to cast their product as clean to protect their businesses and prevent a shift to renewable energy sources that will address the climate crisis.
"The goal is to elbow out competition from renewables from wind and solar, and in some cases preempt localities' ability to choose to pursue 100 per cent truly clean energy," Anderson said, adding that ALEC's legislation makes natural gas "eligible for state and local clean energy standards and funding." Questions over grid reliability Gov Landry and other proponents of the new law said they want to make sure that residents and businesses have a reliable electric grid. Nearly 80 per cent of Louisiana's grid is already powered by natural gas.
Landry said that businesses will come to Louisiana if they know they can count on the state's electric grid. He highlighted Meta's plan to build a massive AI data centre powered by three natural gas plants.
Louisiana's law orders utilities providers to prioritise nuclear energy as well. Nuclear power does not emit greenhouse gases while producing electricity. However, critics say it is more expensive than solar and wind and the US does not have a sufficient long-term solution for storing the waste.
Consumer advocates say states do not need to embrace natural gas at the expense of wind, solar and other technologies to have a reliable grid.
Legally mandating that utilities prioritise natural gas is "blind to innovation, market evolution, and the practical demands of modern electric systems," Jeffrey Clark, president of the Advanced Power Alliance, a renewable energy advocacy group, wrote in a statement opposing Louisiana's law.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)