Report on Louisiana’s HB692 Bill and Its Implications for Sustainable Development Goals

Introduction

Louisiana’s recent legislative action, HB692, redefines natural gas—a fossil fuel—as “green energy” and mandates state utilities to utilize hydrocarbon-generated energy. This bill, sponsored by Rep. Jacob Landry and awaiting Governor Jeff Landry’s signature, poses significant challenges to the state’s transition toward renewable energy and impacts multiple Sustainable Development Goals (SDGs), including SDG 7 (Affordable and Clean Energy), SDG 13 (Climate Action), and SDG 3 (Good Health and Well-being).

Legislative Context and Content of HB692

Key Provisions of HB692

1. Redefinition of “green energy” to include hydrocarbons that meet National Ambient Air Quality Standards under the Clean Air Act.
2. Mandate for Louisiana utilities to use energy generated by hydrocarbons.
3. Eligibility of gas entities for all state programs funding “green” or “clean” energy initiatives.
4. Emphasis on domestically produced energy sources to ensure energy security and affordability.
5. Directive for the Department of Energy and Natural Resources to collaborate with state regulators on energy sourcing.

Ambiguities and Concerns

• “Affordable” energy is vaguely defined without clear methodology for cost calculation.
• Potential conflicts with existing renewable energy standards, particularly New Orleans’ renewable portfolio standard.
• Possible encroachment on the constitutional authority of the Louisiana Public Service Commission.

Implications for Sustainable Development Goals (SDGs)

SDG 7: Affordable and Clean Energy

• HB692’s reclassification of natural gas as “green energy” may hinder the expansion of renewable energy sources such as solar and wind, which currently contribute less than 5% of Louisiana’s electricity.
• The bill supports continued reliance on fossil fuels, potentially delaying progress toward affordable, reliable, sustainable, and modern energy for all.
• High energy consumption per capita and an unreliable grid highlight the need for diversified energy sources aligned with SDG 7 targets.

SDG 13: Climate Action

• Natural gas, primarily methane, is a potent greenhouse gas contributing to climate change, which disproportionately affects Louisiana through coastal erosion, rising sea levels, and extreme weather events.
• HB692’s support for hydrocarbon energy contradicts efforts to reduce greenhouse gas emissions and mitigate climate change impacts.
• The bill’s timing coincides with federal rollbacks of greenhouse gas emissions standards, exacerbating environmental risks.

SDG 3: Good Health and Well-being

• Combustion of gas plants releases carbon dioxide and toxic pollutants, worsening air quality and public health in Louisiana.
• Communities face increased health risks due to pollution and climate-related disasters, undermining SDG 3’s objective to reduce illnesses related to environmental factors.

Challenges to Renewable Energy Development

Potential Impact on Renewable Portfolio Standards

• HB692 may weaken adherence to New Orleans’ renewable portfolio standard, which mandates elimination of carbon-emitting energy sources by 2040 and fossil fuels by 2050.
• Similar legislation in other states has overridden municipal renewable energy goals, threatening local climate action initiatives.
• Post-committee amendments require ensuring sufficient renewable energy supply, but the bill’s overall preference for hydrocarbons may limit renewable energy growth.

Public and Expert Opposition

• Consumer and environmental advocates argue that the bill entrenches fossil fuel dependency, leading to high costs, unreliable electricity, and environmental harm.
• Reports indicate Louisiana residents experience higher energy bills and frequent power outages due to overreliance on natural gas.
• Experts emphasize the importance of energy resource diversity, transmission flexibility, and integration of renewable technologies for grid reliability.

Industrialization and Energy Demand

Supporting Large-Scale Industrial Projects

• HB692 aligns with plans for major industrial investments, such as Meta’s $10 billion data center in Richland Parish, requiring substantial energy supply.
• Entergy Louisiana’s proposed construction of three new gas power plants aims to meet increased industrial energy demands but raises concerns about fossil fuel reliance.
• Additional industrial projects, including fertilizer and steel manufacturing plants, will further strain the energy grid.

Carbon Capture and “Blue” Ammonia

• Some industrial projects rely on unproven carbon capture technologies to mitigate emissions, yet these technologies’ effectiveness remains uncertain.
• Electricity demands for carbon sequestration infrastructure may increase overall fossil fuel consumption.

Influence of Dark Money and Industry Lobbying

Campaign to Rebrand Gas as Green Energy

• HB692 reflects a national campaign, supported by fossil fuel industry groups and dark money organizations, to redefine natural gas as “clean” or “renewable.”
• Groups such as The Empowerment Alliance and the Heartland Institute have actively promoted similar legislation across multiple states.
• The American Legislative Exchange Council (ALEC) has drafted model bills to stall climate action and protect fossil fuel interests.

Impact on Policy and Public Perception

• Industry-backed legislation undermines efforts to meet SDG targets by promoting fossil fuels under the guise of clean energy.
• Lobbying efforts emphasize economic and consumer benefits while downplaying environmental and health consequences.

Conclusion

Louisiana’s HB692 bill presents significant challenges to the state’s alignment with the United Nations Sustainable Development Goals, particularly those related to clean energy, climate action, and public health. By redefining natural gas as green energy and mandating its use, the bill risks entrenching fossil fuel dependency, hindering renewable energy development, and exacerbating environmental and health issues. The influence of industry lobbying and dark money campaigns further complicates the state’s path toward sustainable and equitable energy solutions. To fulfill SDG commitments, Louisiana must critically assess the long-term impacts of such legislation and prioritize diversified, clean, and sustainable energy sources.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 7: Affordable and Clean Energy
   • The article discusses Louisiana’s energy policy, focusing on the classification of natural gas as “green energy” and its implications for renewable energy development.
   • Issues around energy affordability, reliability, and the transition to renewable sources are central themes.
2. SDG 13: Climate Action
   • Louisiana’s vulnerability to climate change impacts such as coastal erosion, rising sea levels, and extreme weather events is highlighted.
   • The article emphasizes methane emissions from natural gas as a potent greenhouse gas contributing to climate change.
3. SDG 3: Good Health and Well-being
   • Concerns about toxic air pollution from gas plants affecting public health are raised.
   • References to health harms in communities affected by fossil fuel pollution.
4. SDG 9: Industry, Innovation, and Infrastructure
   • Discussion on infrastructure investments and industrial expansion, including new gas plants and data centers requiring reliable energy supply.
5. SDG 11: Sustainable Cities and Communities
   • New Orleans’ renewable portfolio standards and local government efforts to reduce carbon emissions are mentioned.

2. Specific Targets Under the Identified SDGs

1. SDG 7: Affordable and Clean Energy
   • Target 7.2: Increase substantially the share of renewable energy in the global energy mix.
   • Target 7.3: Double the global rate of improvement in energy efficiency.
   • Target 7.a: Enhance international cooperation to facilitate access to clean energy research and technology.
2. SDG 13: Climate Action
   • Target 13.1: Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters.
   • Target 13.2: Integrate climate change measures into national policies, strategies, and planning.
3. SDG 3: Good Health and Well-being
   • Target 3.9: Reduce the number of deaths and illnesses from hazardous chemicals and air, water, and soil pollution and contamination.
4. SDG 9: Industry, Innovation, and Infrastructure
   • Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies.
5. SDG 11: Sustainable Cities and Communities
   • Target 11.6: Reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management.

3. Indicators Mentioned or Implied to Measure Progress

1. SDG 7 Indicators
   • Proportion of population with access to electricity (implied through discussion of grid reliability and energy access).
   • Share of renewable energy in the total final energy consumption (explicitly mentioned as less than 5% renewables in Louisiana).
   • Energy intensity measured in terms of primary energy and GDP (implied through discussions on energy efficiency and affordability).
2. SDG 13 Indicators
   • Greenhouse gas emissions, particularly methane and carbon dioxide emissions from natural gas plants (explicitly discussed).
   • Number and cost of climate-related disasters (referenced through rising climate disaster costs in Louisiana).
3. SDG 3 Indicators
   • Mortality rate attributed to household and ambient air pollution (implied through public health concerns related to air quality).
4. SDG 9 Indicators
   • Investments in energy infrastructure (referenced through infrastructure upgrades and new power plants).
5. SDG 11 Indicators
   • Air quality levels and emissions in urban areas (implied through New Orleans’ renewable energy standards and pollution concerns).

4. Table: SDGs, Targets and Indicators

Source: desmog.com