Louisiana Energy Regulations
In Louisiana, the Department of Natural Resources (DNR) is one of twenty departments under the executive branch of state government. The DNR aims to preserve and enhance the nonrenewable natural resources of the state, consisting of land, water, oil, gas, and other minerals. The DNR conserves, regulates, manages, and exploits natural resources of the state. It ensures that the state realizes the appropriate economic benefit from its asset base.
The DNR serves as one of the state government’s major revenue-generating agencies by way of oil and gas bonuses, rentals, and royalties. It exercises complex and various regulatory and permitting functions through the offices of Conservation and Coastal Restoration and Management.
The State Energy Office, a division of the DNR, promotes the efficient use and management of energy in the state. The DNR maximizes Louisiana’s energy potential by:
- exploring all energy sources; and
- reducing current energy consumption.
Energy consumption is reduced through education, energy-use studies, and demonstrations of energy-efficient technologies.
Additionally, the State Energy Office serves as the primary manager of energy efficiency and renewable energy programs funded by the U.S. Department of Energy. It coordinates the state’s residential home energy efficiency programs as well.
In Louisiana, the Department of Environmental Quality provides service to the people of Louisiana through comprehensive environmental protection. The department aims to promote and protect the health, safety, and welfare of Louisiana residents by formulating sound policies regarding employment and economic development.
In Louisiana, the Louisiana Public Service Commission (LPSC) is an independent regulatory agency which manages public utilities and motor carriers in the state. The LPSC has regulatory authority over publicly owned utilities which offer electric, water, waste water, natural gas, and telecommunication services. The LPSC aims to ensure a regulatory balance that enables utilities to provide customers with safe, adequate, and reliable service at rates that are just and reasonable, equitable, and economically efficient. It allows utilities an opportunity to earn a fair rate of return on their investment. It also regulates the Louisiana electric cooperatives. Additionally, the LPSC regulates intrastate transportation, including passenger carrier services, waste haulers, household goods carriers, non-consensual towing, and intrastate pipelines. Moreover, the LPSC take an active and cautious role in development of a competitive, market-based approach to utility regulation whenever such an approach is in the public interest.