Copyright Baton Rouge Advocate
Energy security is vital to our country’s national security. America cannot, and should not, rely on foreign sources of energy if we are going to continue to be the leader of the free world. Nowhere is this connection between energy and security clearer than in Louisiana. When America flips on the lights, Louisiana makes it possible. The Pelican State is also a leader in providing the fuel that powers the world in a safe, environmentally responsible way, and carbon capture and sequestration will play an important role in maintaining this leadership. Unfortunately, Louisiana’s momentum is now at risk under the recent executive order by Gov. Jeff Landry to place a moratorium on new carbon capture and sequestration projects. Louisiana was the first state along the Gulf Coast to secure primacy from the federal government to permit and regulate CCS projects, temporarily giving our state a competitive edge to review pending CCS applications with greater efficiency. However, the governor’s moratorium effectively neutralizes Louisiana’s hard-earned primacy status while Texas is securing the green light on primacy. This moratorium — combined with Texas securing primacy — effectively places a big red stop sign at Louisiana’s border for new CCS projects. According to Louisiana Economic Development, over $23 billion in carbon capture-related capital investments has been announced to date and over 4,500 jobs and greater tax revenues are estimated to result from CCS-related projects. These projects provide direct and indirect benefits such as job creation during construction and operation, increased property tax revenue for local governments and enhanced long-term viability for existing industries like liquefied natural gas. It’s also important to recognize the importance of CCS to achieving a more sustainable energy future while scaling demand for American-produced energy. CCS works by capturing the carbon dioxide emissions produced from electricity generation and industrial processes, preventing CO2 from entering the Earth’s atmosphere and reducing emissions without shutting down critical operations. In short, CCS allows us to safely store CO2 underground while simultaneously meeting global demand for energy products. CCS also strengthens our existing oil, gas and manufacturing sectors. The current moratorium on new CCS project applications could impact existing CCS projects as well, creating regulatory uncertainty as companies navigate the already complex permitting process. Louisiana has billions in potential investment — including CCS-enabled data centers, LNG facilities and manufacturing and energy infrastructure projects — that are facing new challenges and uncertainty. For example, as companies like Meta establish large data centers across the state to support AI technology, the moratorium on CCS makes many of our private sector goals harder to achieve. Landry just signed onto a bipartisan letter through the National Governors Association to improve federal permitting and regulatory processes. Among the policy priorities mentioned in the letter, the governors are calling on the U.S. Congress to streamline federal agency reviews, reform the National Environmental Policy Act to broaden fast-track programs and reduce legal uncertainty. Yet, a moratorium on CCS is a large dose of uncertainty for Louisiana that gives other states the lead on attracting new investments. In closing, Landry could tackle permitting reform, streamlining and prioritization, as outlined in his executive order, without imposing a harmful, anti-business moratorium. The American Petroleum Institute strongly shares the governor’s goal of addressing the backlog of CCS project applications and supports his efforts to streamline the permitting process around energy exploration and production. But an indefinite moratorium on CCS undermines Louisiana’s economic status as an energy leader and sets a dangerous precedent of uncertainty that could kill innovation and job creation. It is our hope that the CCS moratorium will be lifted as soon as possible, and we can collectively get back to work on policies that maintain Louisiana’s energy dominance goals. Louisiana must remain competitive with Texas, which is charging ahead with CCS and attracting more investment during this moratorium. We must send a signal to the state and the nation that Louisiana is proud to be the heartbeat of energy security in America. Gifford Briggs is a native of Louisiana and the executive director for the Gulf Coast region at the American Petroleum Institute.
