Louisiana/EZ Policies

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EZ Policies for Louisiana

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Policy Place Policy Type Active Implementing Sector Summary
Bonding Assistance Program (Louisiana) Louisiana Bond Program No State/Province The Bonding Assistance Program provides assistance with new bond guarantees to small businesses. The bond underwriting is accomplished by a surety company, and the surety company has final bonding approval authority. Once the surety has given final bonding approval, the Bonding Assistance Program provides collateral up to 25% of the base contract amount, up to $200,000, on a project specific basis.
Climate Action Plan (Louisiana) Louisiana Climate Policies No State/Province The State of Louisiana currently does not have a climate action plan in place or in progress.
Coal seam natural gas producing areas (Louisiana) Louisiana Environmental Regulations
Siting and Permitting
Yes State/Province In order to prevent waste and to avoid the drilling of unnecessary wells and to encourage the development of coal seam natural gas producing areas in Louisiana, the commissioner of conservation is authorized, as provided in this law, to establish a single unit to be served by one or more wells for a coal seam natural gas producing area. Without in any way modifying the authority granted to the commissioner to establish a drilling unit or units for a pool, the commissioner, upon the application of any interested party, may enter an order requiring the unit operation of any coal seam natural gas producing area when such unit operation will promote the development of such coal seam natural gas producing area, prevent waste, and avoid the drilling of unnecessary wells.
Coastal Management (Louisiana) Louisiana Environmental Regulations Yes State/Province The Coastal Use Permit (CUP) process is part of the Louisiana Coastal Resources Program (LCRP), which is an effort among Louisiana citizens, as well as state, federal and local advisory and regulatory agencies to preserve, restore, and enhance Louisiana's valuable coastal resources. The purpose of the Coastal Use Permit process is to make certain that any activity affecting the Coastal Zone, such as a project that involves either dredging or filling, is performed in accordance with guidelines established in the LCRP. The guidelines are designed so that development in the Coastal Zone can be accomplished with the greatest benefit and the least amount of damage. Any project that may impact coastal waters through dredging, filling, water control structures, bulkheads, oil and gas facilities, marina, or residential development require a permit.
Community Development Block Grant/Economic Development Infrastructure Financing (United States) United States Grant Program
Loan Program
Yes Federal Community Development Block Grant/Economic Development Infrastructure Financing (CDBG/EDIF) provides public infrastructure financing to help communities grow jobs, enable new business startups and expansions for existing businesses. State programs help achieve the national objective of CDBG by funding projects in which at least 51 percent of the new jobs created are made available to low and moderate income individuals. The maximum amounts awarded under the program are $1 million for new businesses locating to the state and $500,000 for existing businesses expanding in the state.
Corporate Jobs Tax Credit (Louisiana) Louisiana Corporate Tax Incentive Yes State/Province Corporate Jobs Tax Credit is a one-time tax credit ranging from up to $225 for each net new permanent job created as the result of a new business start-up or the expansion of an existing one. Credits may be used to satisfy state corporate income tax obligations. The program is offered to most industries.
Enterprise Zone Program (Louisiana) Louisiana Corporate Tax Incentive
Enterprise Zone
Yes State/Province The Enterprise Zone Program is a jobs incentive program providing Louisiana income and franchise tax credits to businesses hiring at least 35% of net, new jobs from targeted groups. Enterprise Zones (EZs) are areas with high unemployment, low income, or a high percentage of residents receiving some public assistance. A business is not required to be located in the EZ, but must create permanent jobs at the EZ site (see eligibility requirements on the website). Benefits include a one-time $2500 credit per job or a 1.5% Refundable Investment Tax Credit.
Environmental Quality: Air (Louisiana) Louisiana Environmental Regulations Yes State/Province The Department of Environmental Quality regulates air quality in Louisiana. The Department has an established a fee system for funding the monitoring, investigation and other activities required to be conducted for the maintenance of a safe and healthful environment by the Department of Environmental Quality in accordance with the Louisiana Environmental Quality Act.

The regulations detail rules for fees and regulations for permits required for Oil and Gas Well Testing, Release of Natural Gas from Pipelines and Associated Equipment and Portable Air Curtain Incinerators.

Regulations on Control of Emissions through the Use of Emission Reduction Credits (ERC) Banking are also stated in a separate section. Ambient air quality standards are listed along with general regulations on control of emissions and emission standards.
Forestry Policies (Louisiana) Louisiana Environmental Regulations Yes State/Province Louisiana's Forests are managed by the Louisiana Department of Agriculture and Forestry. In 2010 the Department issued the Statewide Forest Resource Assessment and Strategy. The report identifies the harvesting of forestry residues for biomass energy as an untapped resource with great potential, and recognized Louisiana as an ideal location to develop biomass energy:

http://www.ldaf.state.la.us/wp-content/uploads/2014/10/Louisiana-Statewide-Forest-Resource-Assessment-and-Strategy.pdf

The document also states the goal of the Louisiana Office of Forestry to encourage effective and efficient use of woody biomass for renewable energy, including supply and demand opportunity assessment and provision of information and technical assistance to support programs and services promoting utilization of woody biomass.
General Air Permits (Louisiana) Louisiana Environmental Regulations Yes State/Province Any source, including a temporary source, which emits or has the potential to emit any air contaminant requires an air permit. Facilities with potential emissions less than 5 tons per year of any regulated air pollutant do not need a permit. The Louisiana Department of Environmental Quality issues Title V General Permits. The permit is developed based on equipment types versus facility types, the general permits are not limited in their use to a specific industry or category. Title V permits combine all enforceable requirements, including emissions limits, monitoring, record keeping, and reporting provisions, into one document.
General Order Ensuring Reliable Electric Service (Louisiana) Louisiana Safety and Operational Guidelines Yes Utility The standards set forth herein have been developed to provide consumers, the Louisiana Public Service Commission, and jurisdictional electric utilities with a uniform method of ensuring reliable electric service. The standards shall be applicable to the distribution systems of all electric utilities under the jurisdiction of the Louisiana Public Service Commission. The standards establish the reliability of service on an annual basis under all operating conditions except events that are beyond a utility’s control. It is the responsibility of the utility to provide and maintain the resources necessary to meet the service levels set by the Commission. All jurisdictional utilities must maintain complete records of all sustained interruptions. It is the utility’s responsibility to maintain and compile the data necessary to compute the System Average Interruption Duration Index and the System Average Interruption Frequency Index.
Geothermal Energy Resources (Louisiana) Louisiana Environmental Regulations Yes State/Province Louisiana developed policies regarding geothermal stating that the state should pursue the rapid and orderly development of geothermal resources.

Geothermal developments must comply with environmental regulations for protection of the environment and for the conservation of natural resources.

The state Department of Conservation has full regulatory authority over all geothermal exploration, drilling, development, and production as well as subsurface disposal of geothermal waters and/or waste.

Any discharge into any navigable or non-navigable streams or waters by geothermal resources is regulated by the Stream Control Commission of the state.
Ground Water Management Regulations (Louisiana) Louisiana Environmental Regulations Yes State/Province The rules and regulations apply to the management of the state's ground water resources. In addition, the Commissioner of Conservation has recommended that oil and gas operators with an interest in drilling or hydraulic fracturing prevent and minimize reductions of freshwater recharge into aquifer systems. Developers must choose their ground water sources wisely and should use surface water resources where feasible.
Incentive Cost Recovery Rule for Nuclear Power Generation (Louisiana) Louisiana Fees
Generating Facility Rate-Making
Yes Utility The Incentive Cost Recovery Rule for Nuclear Power Generation establishes guidelines for any utility seeking to develop a nuclear power plant in Louisiana. The rule clarifies, as well as supplements the Louisiana Public Service Commission’s 1983 General Order for the acquisition of nuclear generation resources. The goal of the rule is to provide a transparent process that identifies the responsibilities parties in the regulatory process for the approval of the siting, design, licensing, and construction of a nuclear power plant. Certification under this process comes in three phases: a siting and licensing phase; a plant design and development phase; and a construction phase. The rule describes the certification process and outlines utility filing requirements. Once a phase is certified, costs will be reviewed and approved on an annual basis for future recovery in rates when the plant is either canceled or begins commercial operation. Cash earnings on construction work in progress will be recovered in rates during the certified phase of nuclear plant development. The rule is covered in Docket R-29712.
Interconnection Guidelines (Louisiana) Louisiana Interconnection Yes State/Territory Note: Ongoing proceedings related to net metering can be found in Docket R-31417.

The Louisiana Public Service Commission (PSC) adopted rules for net metering and interconnection in November 2005. Louisiana's rules, based on those in place in Arkansas, require publicly-owned utilities and rural electric cooperatives to offer net metering to customers with systems that generate electricity using solar, wind, hydropower, geothermal or biomass resources.* Fuel cells and microturbines that generate electricity entirely derived from renewable resources are also eligible. The rules apply to residential facilities with a maximum capacity of 25 kilowatts (kW) and commercial systems with a maximum capacity of 300 kW. In 2008 (Act 543), the state legislature increased the net metering and interconnection limit from 100 kW to 300 kW for commercial and agricultural use. The PSC opened Docket R-31417 in July 2010 in order to review its rules to increase to the state-mandated 300 kW limit. The PSC approved the increase in May 2011.

Utilities must provide customers with a meter capable of measuring the flow of electricity in both directions. Although utilities must pay for the cost of the meter itself, customer-generators must pay a one-time charge to cover the installation cost of the meter. Interconnected systems must meet all safety and performance standards established by local and national electric codes, including the National Electric Code (NEC), the Institute of Electrical and Electronics Engineers (IEEE), the National Electrical Safety Code (NESC), and Underwriters Laboratories (UL). A manual external disconnect switch is required for all interconnected systems. The manual external disconnect switch requirement is waived if the inverter is designed to shut down in the event that utility service is lost, the inverter is warranted by the manufacturer to shut down in this situation, and the inverter has been inspected and tested by utility personnel.

Customers seeking to interconnect and net meter must submit an interconnection agreement to a utility 45 days prior to interconnection. Utilities must use a PSC-approved standard interconnection agreement for interconnected facilities.

Customers must pay for "interconnection costs," defined as "the reasonable costs of connection, switching, metering, transmission, distribution, safety provisions and administrative costs incurred by the electric utility directly related to the installation and maintenance of the physical facilities necessary to permit interconnected operations with a net-metering facility, to the extent the costs are in excess of the corresponding costs which the electric utility would have incurred if it had not engaged in interconnected operations, but instead generated an equivalent amount of electric energy itself or purchased an equivalent amount of electric energy or capacity from other sources." Furthermore, following notice and opportunity for public comment, the PSC may authorize a utility to assess customer-generators "a greater fee or customer charge, of any type, if the electric utility's direct costs of interconnection and administration of net metering outweigh the distribution system, environmental and public-policy benefits of allocating the costs among the electric utility's entire customer base."

Additional Resources:

Entergy Standard Interconnection Agreement


* The PSC regulates investor-owned utilities and electric cooperatives in Louisiana; it does not regulate municipal-owned utilities, and its rules do not apply to municipal utilities. Municipal utilities must develop their own programs based on the statute.
Interstate Mining Compact Commission (multi-state) Alabama
Arkansas
Illinois
Indiana
Kentucky
Louisiana
Maryland
Missouri
New York
North Carolina
North Dakota
Ohio
Oklahoma
Pennsylvania
South Carolina
Tennessee
Texas
Virginia
West Virginia
Safety and Operational Guidelines
Siting and Permitting
Yes State/Province The Interstate Mining Compact is a multi-state governmental agency / organization that represents the natural resource and related environmental protection interests of its member states. Currently, 23 states are members to the compact, and 6 additional states are associate members. The compact is administered by the Interstate Mining Compact Commission, which does not possess regulatory powers but “provides a forum for interstate action and communication on issues of concern to the member states” and thus aids the development of effective regulatory programs and environmental protection initiatives. The Commission exercises several powers on behalf of the states, all of which are of a study, recommendatory or consultative nature. The Commission does not possess regulatory powers, as some Compacts do. The Commission provides a forum for interstate action and communication on issues of concern to the member states. It is the potential to stimulate the development and production of each state's mineral wealth through effective regulatory programs that draws many of the states together in the prosecution of the Commission's work. Given the environmental sensitivities associated with this objective, a significant portion of the Commission's work is dedicated to the environmental protection issues naturally associated with this mineral development. It is the significant value and clout that comes from "compacting" together and speaking with a strong, united voice that can make a difference in each state's efforts to implement effective regulatory programs that will conserve natural resources and secure a vibrant state (and thus national) mineral economy.
Interstate Oil and Gas Conservation Compact (Multiple States) Alabama
Alaska
Arizona
Arkansas
California
Colorado
Florida
Georgia
Idaho
Illinois
Indiana
Kansas
Kentucky
Louisiana
Maryland
Michigan
Mississippi
Montana
Nebraska
Nevada
New Mexico
New York
North Dakota
Ohio
Oklahoma
Pennsylvania
South Dakota
Texas
Utah
Virginia
West Virginia
Wyoming
Environmental Regulations Yes State/Province The Interstate Oil and Gas Compact Commission assists member states efficiently maximize oil and natural gas resources through sound regulatory practices while protecting the nation's health, safety and the environment.

The Commission serves as the collective voice of member governors on oil and gas issues and advocates states' rights to govern petroleum resources within their borders.

The Commission formed the Geological CO2 Sequestration Task Force, which examines the technical, policy and regulatory issues related to safe and effective storage of CO2 in the subsurface (depleted oil and natural gas fields, saline formations and coal beds).

The Commission also funds research on hydraulic fracking, reusing water used in extracting oil and gas, and makes recommendations on national energy policies and statutes for individual states.

The Commission also has several associate states: North Carolina, South Carolina, Georgia, Tennessee, Missouri, Idaho, Oregon and Washington. In addition, it has international affiliations with the Canadian provinces of Alberta, British Columbia, New Brunswick, Newfoundland and Labrador, Nova Scotia, Saskatchewan, and the Yukon.
Local Option - Sustainable Energy Financing Districts (Louisiana) Louisiana PACE Financing Yes State/Territory Note: '''''In 2010, the Federal Housing Finance Agency (FHFA), which has authority over mortgage underwriters Fannie Mae and Freddie Mac, '''''directed''''' these enterprises against purchasing mortgages of homes with a PACE lien due to its senior status above a mortgage. Most residential PACE activity subsided following this directive; however, some residential PACE programs are now operating with loan loss reserve funds, appropriate disclosures, or other protections meant to address FHFA's concerns. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENow for more information about PACE financing, and for a comprehensive list of all PACE programs across the country.

Property-Assessed Clean Energy (PACE) financing effectively allows property owners to borrow money to pay for energy improvements. The amount borrowed is typically repaid via a special assessment on the property over a period of years. Louisiana has authorized certain local governments to establish such programs, as described below. (Not all local governments in Louisiana offer PACE financing; contact your local government to find out if it has established a PACE financing program.)

In July 2009, Louisiana legislators enacted SB 224 that enabled local governments to create a Sustainable Energy Financing District (SEFD) via ordinance or resolution. Once established, the owner of any immovable residential or commercial property may consent to include a property in the SEFD and execute a "cooperative endeavor agreement" with the district to receive financing for energy improvements. An owner's consent may be given before or after the initial creation of the district, and the district does not have to be contiguous.


In 2010, Louisiana legislators enacted HB 973 that provided financing qualifications and restrictions for energy efficiency improvement or renewable energy improvement loans. These include:


  • limiting the total amount borrowed by property owners to 10 percent of the reasonable expected fair market value of the property
  • equity must be available in the property, meaning the loan-to-value ratio cannot exceed 100%
  • maximum assessment amount per year shall not exceed the amount of the principal and interest for said year
  • property owners must be current on all outstanding mortgages and demonstrate ability to repay loan
  • energy audit must be conducted and reviewed by the district prior to finance approval
  • the SEFD must make written verification on residential properties that improvements were installed and work is completed prior to loan fund disbursement
  • work must be performed by qualified contractors, subcontractors and tradesmen
  • for loans over $100,000 a written notice must be sent to the mortgagee regarding the proposed program loan. The mortgagee then has 30 to approve or deny proposed program loan. (failure of mortgagee to provide written notice of ruling results in procession of loan)


A SEFD may borrow money, issue bonds or obligations, and pay for the bonds from assessments against property. Loan terms will be decided by the governing body of the district, including interest rates, administrative fees, and maximum loan amounts. The district is permitted to provide a source of revenue for retrofitting and installing improvements, products, systems, devices, or interacting groups of devices installed behind the meter of residential and commercial buildings that conserve energy or produce energy from renewable resources. Eligible technologies are determined locally, but may include:


  • Insulation in walls, roofs, floors, foundations, and heating/cooling distribution systems;
  • Storm and multi-glazed windows and doors;
  • Heat absorbing/reflective glazed and coated window and door systems, additional glazing, reductions in glass area, and other energy-efficient window and door systems;
  • Automatic energy control systems;
  • HVAC system upgrades and replacements;
  • Caulking and weather stripping (up to $1,500);
  • Daylighting and efficient lighting; and
  • Energy-recovery systems.

Renewable-energy improvements that interfere with a right held by a public utility regulated by the Louisiana Public Service Commission are not eligible.

New Orleans plans to create a Sustainable Energy Financing District with the help of a "special projects" grant from the U.S. Department of Energy SunShot Initiative.
Louisiana Air Control Law (Louisiana) Louisiana Environmental Regulations Yes State/Province This law states regulations for air quality control and states the powers and duties of the secretary of environmental quality. It provides information about permits and licenses, air quality regions, Toxic air pollutant emission control program and the Small business stationary source technical and environmental compliance assistance program.
Louisiana Geologic Sequestration of Carbon Dioxide Act (Louisiana) Louisiana Environmental Regulations Yes State/Province This law establishes that carbon dioxide and sequestration is a valuable commodity to the citizens of the state. Geologic storage of carbon dioxide may allow for the orderly withdrawal as appropriate or necessary, thereby allowing carbon dioxide to be available for commercial, industrial, or other uses, including the use of carbon dioxide for enhanced recovery of oil and gas. The mandates a coordinated statewide program related to the storage of carbon dioxide and to also fulfill the state's primary responsibility for assuring compliance with the federal Safe Drinking Water Act, including any amendments thereto related to the underground injection of carbon dioxide. The commissioner can issue a certificate of public convenience and necessity or a certificate of completion of injection operations to each person applying if, after a public hearing held in the parish where the storage facility is to be located, the commissioner determines that it is required by the present or future public convenience and necessity, and such decision is based upon the following criteria: the proposed storage facility meets the requirements of any rules adopted under this law.
Louisiana Hazardous Waste Control Law (Louisiana) Louisiana Environmental Regulations Yes State/Province The Louisiana Department of Environmental Quality is responsible for administering the Louisiana Hazardous Waste Control Law and the regulations created under that law.

These rules and regulations apply to owners and operators of all facilities that generate, transport, treat, store, or dispose of hazardous waste, except as specifically provided otherwise herein. The procedures of these regulations also apply to the denial of a permit for the active life of a hazardous waste management facility or TSD unit. This article states general conditions and requirements for treatment, storage, and disposal facility permits. Soil and groundwater contamination standards are listed. There are special requirements for hazardous waste generated by conditionally exempt small quantity generators.

The definition of hazardous waste as well as exceptions to the definition are provided in detail. Specific regulations for the owners/operators of waste facilities are stated, such as- air emission standards, for tanks, surface impoundments, and containers, prohibitions on land disposal and groundwater protection. Fee schedules are provided for permit, maintenance and other fees.
Louisiana Nuclear Energy and Radiation Control Law (Louisiana) Louisiana Environmental Regulations
Safety and Operational Guidelines
Yes State/Province The Louisiana Department of Environmental Quality is responsible for the regulation of nuclear energy safety, permitting and radiation safety and control in Louisiana. The Department operates under the Nuclear Energy and Radiation Control Law. This law states regulations for radiation protection and states the powers and duties of the secretary of environmental quality. It provides information about permits and licenses and nuclear power facilities. It also states regulations for the disposal of radioactive wastes.
Louisiana Solid Waste Management and Resource Recovery Law (Louisiana) Louisiana Environmental Regulations Yes State/Province The Louisiana Department of Environmental Quality manages solid waste for the state of Louisiana under the authority of the Solid Waste Management and Resource Recover Law. The Department makes rules and regulations that establish standards governing the storage, collection, processing, recovery and reuse, and disposal of solid waste; implement a management program that will protect the air, groundwater, and surface water, and the environment from pollution from solid wastes. Solid Waste is defined as any garbage, refuse, or sludge from a waste treatment plant, water-supply treatment plant, or air pollution-control facility, and other discarded material, including solid, liquid, semisolid, or contained gaseous material resulting from industrial, commercial, mining, agricultural operations, and from community activities, and construction/demolition debris.

The regulations state that no solid waste can be stored or allowed to be stored in a manner that may cause a nuisance or health hazard or detriment to the environment as determined by the Department. Unless authorized or approved by the Department, no solid waste can be stored at an offsite location unless such off-site location is an authorized transfer station or collection, processing, or disposal facility. Solid wastes may not be stored on-site for greater than one year without approval from the Office of Environmental Compliance. The facility must maintain records indicating the time frame that waste has been stored. The Department must have access to the premises of all facilities used for the management of solid waste.

Hazardous waste or nuclear material regulated under the Louisiana hazardous waste rules and regulations or Louisiana radiation regulations cannot be processed or disposed of at a solid waste facility except in conformance with those regulations. Solid waste cannot be disposed of in such a manner that it enters the waters of the state. Open burning of solid waste is prohibited. Standards, permit regulations and fees are listed for various types of waste disposal facilities.
Louisiana Water Control Law (Louisiana) Louisiana Environmental Regulations Yes State/Province The Louisiana Department of Environmental Quality administers the proper protection and maintenance of the state's waters, and regulate the discharges of waste materials, pollutants, and other substances into the waters of the state. The Department creates regulation under the authority of the Louisiana Water Control Law. This law states regulations for water quality control and states the powers and duties of the secretary of environmental quality. It provides information about permits and licenses, sewage treatment facilities and the Mississippi River Interstate Pollution Phase-Out Compact.
Natural Gas Rules (Louisiana) Louisiana Environmental Regulations Yes State/Province The Louisiana Department of Natural Resources administers the rules that govern natural gas exploration and extraction in the state. DNR works with the Louisiana Department of Environmental Quality to ensure that all natural gas operations adhere to applicable state laws and department regulations. The rules govern wells involved with natural gas extraction, conservation of natural gas, the purchasing of natural gas, reporting, permitting, and fees.
Natural Resources and Energy Act of 1973 (Louisiana) Louisiana Environmental Regulations
Generating Facility Rate-Making
Yes State/Province This law is designed to protect and conserve the natural energy resources of the state, and prevent the physical and economic waste, wasteful use and wasteful utilization of those resources through the development and implementation of a comprehensive energy policy for the state of Louisiana which will regulate the use, end-use, production, transportation, conservation, sale and prices of the state's energy resources, improve the available transportation facilities for movement of intrastate natural gas between the different parts of the state, provide for the equitable distribution of energy supplies to the residents and the commercial and industrial users of these energy supplies; and insure the maintenance of the highest practical level of energy supplies commensurate with the general health, safety, welfare and prosperity of the state. There are also provisions that apply to purchase prices of intrastate natural gas in purchases by privately or publicly owned public utilities. The provisions of this law apply to sale prices of intrastate natural gas in sales by privately or publicly owned public utilities direct to industrial users, but shall not apply to sales of such gas by such utilities to other users.
Net Metering (Louisiana) Louisiana Net Metering Yes State/Territory Note: Ongoing proceedings related to net metering can be found in Docket R-31417.

Louisiana enacted legislation in June 2003 establishing net metering. Modeled on Arkansas’s law, Louisiana's law requires investor-owned utilities, municipal utilities and electric cooperatives to offer net metering to customers that generate electricity using solar, wind, hydropower, geothermal or biomass resources. Fuel cells and microturbines that generate electricity entirely derived from renewable resources are also eligible.

Per state law, net metering is available for residential systems up to 25 kilowatts (kW) in capacity, and commercial and agricultural systems up to 300 kW. In 2008 (Act 543), the state legislature increased the net metering limit from 100 kW to 300 kW for commercial and agricultural use. The Louisiana Public Service Commission (PSC) opened Docket R-31417 in July 2010 in order to review its rules to increase to the state-mandated 300 kW limit. The PSC approved the increase in May 2011. In July of 2011, the PSC adopted Net Metering Standards, after which the PSC will determine on a case-by-case basis the appropriate pricing of projects exceeding 300kW.

The Louisiana PSC also established rates, terms and conditions for net metering for utilities under its jurisdiction in November 2005.* The PSC’s rules are described below.

Utilities must provide customer-generators with a meter capable of measuring the flow of electricity in both directions. Utilities must pay for the cost of the meter itself, but customer-generators must pay a one-time charge to cover the installation cost of the meter. Net excess generation (NEG) is credited to the customer's next bill indefinitely. For the final month in which the customer takes service from the utility, the utility will pay the customer for the balance of any credit at the utility's avoided-cost rate.

By the end of each calendar year, utilities must file with the PSC a report listing all existing net-metered systems and their capacities, and, where applicable, the inverter rating for each facility. The ownership of renewable-energy credits (RECs) associated with net metering has not been addressed.

The PSC will revisit these rules once any utility's net metering purchases exceed .5% of its retail peak load.

Additional Resources:

Entergy's net-metering webpage


* The PSC regulates investor-owned utilities and electric cooperatives in Louisiana; it does not regulate municipal-owned utilities, and its rules thereby do not apply to municipal utilities. Municipal utilities must develop their own programs based on the statute.
Local Coastal Program (Louisiana) Louisiana Environmental Regulations Yes Local The Local Coastal Programs Section provides technical assistance, guidance, and management to parishes in the development, approval, and implementation of local coastal programs (LCP). Once an LCP has received federal and state approval, the parish becomes the permitting authority for coastal uses of local concern defined as "those uses which directly and significantly affect coastal waters and are in need of coastal management but are not uses of state concern and which should be regulated primarily at the local level if the local government has an approved program" To date, ten coastal parishes: Calcasieu, Cameron, Lafourche, Jefferson, Orleans, Plaquemines, St. Bernard, St. James, St. Tammany and Terrebonne have approved, active LCPs. Two more are in development, St. Charles and St. John the Baptist.
Pipeline Operations Program (Louisiana) Louisiana Environmental Regulations Yes State/Province The Pipeline Operations Program regulates the construction, acquisition, abandonment and interconnection of natural gas pipelines, as well as, the transportation and use of natural gas supplies.
Qualifying RPS State Export Markets (Louisiana) Louisiana Renewables Portfolio Standards and Goals Yes State/Province This entry lists the states with Renewable Portfolio Standard (RPS) policies that accept generation located in Louisiana as eligible sources towards their RPS targets or goals. For specific information with regard to eligible technologies or other restrictions which may vary by state, see the RPS policy entries for the individual states, shown below in the Authority listings. Typically energy must be delivered to an in-state utility or Load Serving Entity, and often only a portion of compliance targets may be met by out-of-state generation. In addition to geographic and energy delivery requirements, ownership, registry, and other requirements may apply, such as resource eligibility, generator vintage and capacity limitations, as well as limits on Renewable Energy Certificate (REC) vintage. The listing applies to RPS Main Tiers only, and excludes solar or distributed generation that may require interconnection only within the RPS state. This assessment is based on energy delivery requirements and reasonable transmission availability. Acceptance of unbundled RECs varies. There may be additional sales opportunities in RPS states outside the Eastern Interconnection. REC prices in markets with voluntary goals (North Dakota, South Dakota) may be lower.
Quality Jobs Program (Louisiana) Louisiana Corporate Tax Incentive
Rebate Program
Yes State/Province The Quality Jobs Program provides a cash rebate to companies that create well-paid jobs and promote economic development. Benefits include a 5-6% cash rebate of annual gross payroll for new, direct jobs for up to ten years, or up to 1.5 investment tax credit for qualified expenses.

Business must be in one of the following industries:

Bioscience, Manufacturing, Software, Environmental Technology, Food Technology, Advanced Materials or Oil and Gas Field Service

OR

Must have at least 50% of annual sales out-of-state and/or to in-state customers or buyers if the product or service is resold by the purchaser to an out-of-state customer or buyer or to the federal government.

OR

Must be located in an area designated by Louisiana Economic Development as a distressed region. A distressed region is either of the following: A parish that is within the lowest 25% of parishes based on per capita income; A census tract block group that is below the state median per capita income, based upon the latest federal decennial census.

Nonprofit organizations are not eligible, unless the department determines that the new direct jobs created by the organization would have a significant impact on Louisiana
Restoration Tax Abatement (Louisiana) Louisiana Property Tax Incentive Yes State/Province Restoration Tax Abatement (RTA) Program provides five-year property tax abatement for the expansion, restoration, improvement, and development of existing commercial structures and owner-occupied residences. The program grants a five-year deferred assessment of the ad valorem property taxes on renovations and improvements. Equipment that becomes an integral part of the structure can qualify for this exemption. The structure must be located in Downtown Development Districts, Economic Development Districts, or Historic Districts.
Sabine River Compact (Multiple States) Texas
Louisiana
Siting and Permitting Yes State/Province The Sabine River Compact Commission administers the Sabine River Compact to ensure that Texas receives its equitable share of quality water from the Sabine River and its tributaries as apportioned by the Compact. The Compact includes the states of Texas and Louisiana. In addition, the SRCC cooperates with Louisiana for programs to increase the quantity and improve the quality of water available to Texas.
Small Business Loan Program (Louisiana) Louisiana Loan Program Yes State/Province The Louisiana Economic Development Small Business Loan Program provides loan guarantees and participations to banks to facilitate capital access for businesses. The program’s purpose is to provide financial assistance, which will help with the development, expansion, and retention of Louisiana’s small businesses. Benefit guarantees may range up to 75% of the loan amount, not to exceed $1.5 million. Loan participations of up to 40% are available as well.

ELIGIBILTY

Must be a Louisiana small business (as defined by the Small Business Administration) Must be domiciled in Louisiana Owners or principal stockholders shall be Louisiana residents For loans of $100,000 or less, there must be one new permanent job or one retained job

For loans over $100,000, there must be two new permanent jobs created
Solar and Wind Contractor Licensing (Louisiana) Louisiana Solar/Wind Contractor Licensing Yes State/Territory All solar and wind energy installations must be performed by a contractor duly licensed by and in good standing with the Louisiana Contractors Licensing Board with a classification of "Solar Energy Equipment" and a certificate of training in the design and installation of solar energy systems from an industry recognized training entity, or a Louisiana technical college, or the owner of the residence.

Installers must have the appropriate license, as well as this specialty classification in order for systems to take advantage of state tax credits. Installers must be licensed with the Louisiana Contractors Licensing Board. This specialty classification does not substitute for an electrical or plumbing license; installers must have this specialty classification in addition to an electrical contractor's license (for solar photovoltaic installations) or a plumbing contractor's license (for solar thermal installations).

A list of state approved trainers and course offerings can be found here.
Solid Waste Permits (Louisiana) Louisiana Environmental Regulations
Fees
Yes State/Province The Louisiana Department of Environmental Quality administers the rules and regulations governing the storage, collection, processing, recovery, and reuse of solid waste protect the air, groundwater, surface water, and the environment from pollution from solid wastes. The Solid and Hazardous Waste Permits section authorizes permits administered under the Solid Waste and Hazardous Waste Regulations.
Southern States Energy Compact (Multiple States) Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Maryland
Mississippi
Missouri
North Carolina
Oklahoma
Puerto Rico
South Carolina
Tennessee
Texas
United States Virgin Islands
Virginia
West Virginia
Industry Recruitment/Support
Environmental Regulations
Yes State/Province The Southern States Energy Compact provides for the proper employment and conservation of energy, and for the employment of energy-related facilities, materials, and products, within the context of a responsible regard for the environment, among the Southeastern states, Puerto Rico, and the U.S. Virgin Islands. The Southern States Energy Board is responsible for administering the Compact and may adopt bylaws, rules, and regulations in conjunction with state agencies. The Board also encourages the development, conservation, and responsible use of energy and energy-related facilities, installations, and products as part of a balanced economy and a healthy environment.
Tax Credit for Solar Energy Systems on Residential Property (Corporate) (Louisiana) Louisiana Corporate Tax Credit Yes State/Territory Note: HB 705 of 2013 phases out this tax credit until its termination at the beginning of 2018 in addition to halting credits for wind energy systems and adding special provisions for leased systems. The Louisiana Department of Revenue (LDR) has developed rules to carry out mandates of the legislation available here.


Louisiana provides a tax credit for solar energy systems purchased and installed on or after January 1, 2008 and before January 1, 2018. The credit may be applied to personal, corporate or franchise taxes, depending on the entity which purchases and installs the system, but the system must be installed at a single-family residence to be eligible (systems installed at residential rental apartments were made ineligible by HB 705 of 2013). HB 858, enacted in July 2009, extended the tax credit to all taxpayers that purchase and install systems. (The credit was previously only available to residential property owners). Only one credit may be taken per system, so if the property is sold, the taxpayer who originally claimed the credit must disclose this, as the new owner will not be eligible for another tax credit on the same system. Each residence is limited to just one credit. A second system installed at the same residence is ineligible for a credit. The tax credit may be applied both to solar-electric systems (photovoltaic systems) and solar-thermal systems, when the energy is used for space heating, space cooling or water heating.


Customer Owned Systems


For systems purchased between Januay 1, 2014 and January 1, 2018, the credit is equal to 50% of the first $25,000 of the cost of each system, including installation costs. The credit must be fully claimed in the taxable year in which the system is installed and placed in service. Equipment added at a later date cannot utilize any existing system components in order to qualify for the tax credit. Any excess credit which exceeds the taxpayer's liabilities for that year shall be treated as an overpayment, and the DOR will issue a refund for the remaining amount within one year of receiving the claim.


For photovoltaic (PV) systems, the tax credit applies to AC or DC generation systems which are grid-connected, net-metered systems (with or without battery backup) and stand-alone systems. Solar-thermal systems must be used for the primary purpose of heating water, space heating or space cooling.


Electrical equipment must be tested and certified by a Federal Occupational Safety and Health Administration (OSHA) nationally recognized testing laboratory and installed in compliance with all applicable building and electrical codes. Solar thermal equipment must be certified to SRCC OG-300 by either SRCC or by listing agency such as International Association of Plumbing and Mechanical Officials (IAPMO) and installed in compliance with all applicable building and plumbing codes. Installations must be performed by a licensed contractor, the owner of the residence, or by a person who has received certification by a technical college in the installation of such systems. In order to claim a tax credit for a wind or solar energy system all components must be installed at the same time as the system.


This tax credit may be combined with any federal tax incentive, but it may not be combined with any other state tax incentive. Whenever additional incentives such as cash rebates, prizes or gift certificates are offered in addition to the tax credit, the eligible cost must be reduced by the value of the additional incentive received.


Leased Systems


Systems leased by a third party and used at a residence can qualify for a tax credit, but there are additional provisions in the law that apply to these systems. For leased systems that are installed after December 31, 2013, the value of the credit will be reduced to 38% of the first $25,000 of the cost of each system. Additionally, leased systems can be no larger than 6 kilowatts (kW). The law also sets maximum system costs for leased systems. A leased system can claim system costs that do not exceed these limits depending on the year it is placed in service:


  • Placed in service between 7/1/13 - 6/30/14: $4.50 per watt with $12,500 limit
  • Placed in service between 7/1/14 - 6/30/15: $3.50 per watt with $9,500 limit
  • Placed in service between 7/1/15 - 12/31/17: $2.00 per watt with $4,560 limit
Tax Credit for Solar Energy Systems on Residential Property (Personal) (Louisiana) Louisiana Personal Tax Credit Yes State/Territory Note: HB 705 of 2013 phases out this tax credit until its termination at the beginning of 2018 in addition to halting credits for wind energy systems and adding special provisions for leased systems. The Louisiana Department of Revenue (LDR) has developed rules to carry out mandates of the legislation available here.


Louisiana provides a tax credit for solar energy systems purchased and installed on or after January 1, 2008 and before January 1, 2018. The credit may be applied to personal, corporate or franchise taxes, depending on the entity which purchases and installs the system, but the system must be installed at a single-family residence to be eligible (systems installed at residential rental apartments were made ineligible by HB 705 of 2013). HB 858, enacted in July 2009, extended the tax credit to all taxpayers that purchase and install systems. (The credit was previously only available to residential property owners). Only one credit may be taken per system, so if the property is sold, the taxpayer who originally claimed the credit must disclose this, as the new owner will not be eligible for another tax credit on the same system. Each residence is limited to just one credit. A second system installed at the same residence is ineligible for a credit. The tax credit may be applied both to solar-electric systems (photovoltaic systems) and solar-thermal systems, when the energy is used for space heating, space cooling or water heating.


Customer Owned Systems


For systems purchased between Januay 1, 2014 and January 1, 2018, the credit is equal to 50% of the first $25,000 of the cost of each system, including installation costs. The credit must be fully claimed in the taxable year in which the system is installed and placed in service. Equipment added at a later date cannot utilize any existing system components in order to qualify for the tax credit. Any excess credit which exceeds the taxpayer's liabilities for that year shall be treated as an overpayment, and the DOR will issue a refund for the remaining amount within one year of receiving the claim.


For photovoltaic (PV) systems, the tax credit applies to AC or DC generation systems which are grid-connected, net-metered systems (with or without battery backup) and stand-alone systems. Solar-thermal systems must be used for the primary purpose of heating water, space heating or space cooling.


Electrical equipment must be tested and certified by a Federal Occupational Safety and Health Administration (OSHA) nationally recognized testing laboratory and installed in compliance with all applicable building and electrical codes. Solar thermal equipment must be certified to SRCC OG-300 by either SRCC or by listing agency such as International Association of Plumbing and Mechanical Officials (IAPMO) and installed in compliance with all applicable building and plumbing codes. Installations must be performed by a licensed contractor, the owner of the residence, or by a person who has received certification by a technical college in the installation of such systems. In order to claim a tax credit for a wind or solar energy system all components must be installed at the same time as the system.


This tax credit may be combined with any federal tax incentive, but it may not be combined with any other state tax incentive. Whenever additional incentives such as cash rebates, prizes or gift certificates are offered in addition to the tax credit, the eligible cost must be reduced by the value of the additional incentive received.


Leased Systems


Systems leased by a third party and used at a residence can qualify for a tax credit, but there are additional provisions in the law that apply to these systems. For leased systems that are installed after December 31, 2013, the value of the credit will be reduced to 38% of the first $25,000 of the cost of each system. Additionally, leased systems can be no larger than 6 kilowatts (kW). The law also sets maximum system costs for leased systems. A leased system can claim system costs that do not exceed these limits depending on the year it is placed in service:


  • Placed in service between 7/1/13 - 6/30/14: $4.50 per watt with $12,500 limit
  • Placed in service between 7/1/14 - 6/30/15: $3.50 per watt with $9,500 limit
  • Placed in service between 7/1/15 - 12/31/17: $2.00 per watt with $4,560 limit
Tax Increment Financing (Louisiana) Louisiana Property Tax Incentive
Sales Tax Incentive
Yes Local Louisiana law provides for two types of Tax Increment Financing mechanisms: (1) property tax, also known as ad valorem, and (2) sales tax. Either form may be utilized to enhance an economic development project. In these, it is assumed the project will create future increases in tax revenue above present level of revenues collected in a specific geographic area. This portion of the specific revenue stream may be used to satisfy bond or other debt incurred in the construction of improvements, improvements which may be presumed to create increased tax revenues available. Economic development projects which may be enhanced through either TIF include initiatives in the following sectors: industrial/manufacturing, housing, hotel/motel, commercial/retail, amusement/theme park/tourism, transportation, medical services, and any other industry which the local government determines to be of economic significance.
Underground Injection Control (Louisiana) Louisiana Environmental Regulations Yes State/Province The Injection and Mining Division (IMD) has the responsibility of implementing two major federal environmental programs which were statutorily charged to the Office of Conservation: the Underground Injection Control (UIC) program with federal oversight from the Environmental Protection Administration (EPA) and the Surface Mining Program with federal oversight from the U.S. Department of the Interior, Office of Surface Mining. The Underground Injection Control (UIC) Section administers a regulatory and permit program to protect underground sources of drinking water from endangerment by the subsurface emplacement of both hazardous and non-hazardous fluids through deep well injection, and other oilfield waste disposal techniques.
Underground storage of natural gas, liquid hydrocarbons, and carbon dioxide (Louisiana) Louisiana Environmental Regulations
Siting and Permitting
Yes State/Province The Louisiana Department of Environmental Quality regulates the underground storage of natural gas or liquid hydrocarbons and carbon dioxide. Prior to the use of any underground reservoir for the storage of natural gas and prior to the exercise of eminent domain by any person, firm, or corporation having such right under laws of the state of Louisiana, the commissioner, shall have found all of the following:

(1) That the underground reservoir sought to be used for the injection, storage, and withdrawal of natural gas is suitable and feasible for such use (2) That the use of the underground reservoir for the storage of natural gas will not contaminate other formations containing fresh water, oil, gas, or other commercial mineral deposits.

(3) That the proposed storage will not endanger lives or property.
Water Permits (Louisiana) Louisiana Environmental Regulations Yes State/Province The Water Permits Division authorizes permits administered under the Water Quality Regulations. Louisiana's Water Quality Regulations require permits for the discharge of pollutants from any point source into waters of the state of Louisiana. This surface water is administered under the Louisiana Pollutant Discharge Elimination System (LPDES). An LPDES discharge permit is required for the discharge of pollutants from any point source into waters of the state. A point source is any discernible, confined, and discrete conveyance, including but not limited to any pipe, ditch, channel, tunnel, conduit, well, discrete fissure, container, rolling stock, etc. General permits are needed for oil and gas exploration, petroleum storage, gas production facilities, water treatment plants, construction and wood waste landfills, etc.
Water Quality (Louisiana) Louisiana Environmental Regulations Yes State/Province These regulations establish requirements and procedures for permitting, enforcement, monitoring, and surveillance, and spill control activities of the Department of Environmental Quality. Without first obtaining a LWDPS permit from the department, no person shall: discharge or allow to be discharged any pollutants into the waters of the state from any facility or activity; construct any new facility or undertake a new activity, the operation or conduct of which would result in a discharge into the waters of the state; construct, install, operate, or alter any facility or activity or any extension or modification thereof or addition thereto, the operation or conduct of which would cause increases in the quantity or degradation in the quality of the discharge of pollutants into the waters of the state or which would otherwise alter the physical, chemical, or biological properties of any waters of the state in any manner not already lawfully authorized; construct or use any new outlet for the discharge of any pollutants into the waters of the state. Criteria for surface water quality standards are also stated in this article along with Water Quality Certification Procedures. Details about the Louisiana Pollutant Discharge Elimination System (LPDES) Program and the Louisiana Sewage Sludge and Biosolids Program are also provided.