The 2025 Regular Session of the Louisiana Legislature convened April 14, 2025, and adjourned June 12, 2025. The first regular session of the new term saw legislation on several hot-button issues, including 944 bills (696 in the House/248 in the Senate), 24 constitutional amendments, and 751 resolutions and study requests. For fiscal year 2025-2026, the Legislature approved a $53.5 billion state operating budget to fund executive department operations.[1]
The Legislature enacted new laws affecting energy production and environmental regulation. Legislation was passed on several topics including carbon capture and sequestration, oil and gas, renewable energy, water and other natural resources and modifications to certain departments, among others. Many of these laws go into effect on August 1, 2025, while others became effective upon signature of the Governor, or another date prescribed by legislation. This article offers a synopsis of relevant changes that were made to energy and environmental laws, as well as the regulatory agencies that enforce them.
Energy and the Department of Conservation and Energy
SB 244 (Act No. 458) significantly changes Louisiana’s oilfield remediation statute, Act 312 (Louisiana Revised Statutes § 30:29), starting September 1, 2027. Act 312 applies to “legacy” cases and governs the procedure for the State to maintain oversight over oilfield evaluation and remediation.[2] Starting October 1, 2025, SB 244 also changes the official name of the Department of Energy and Natural Resources to the Department of Conservation and Energy (“DCE”). It eliminates the office of conservation and transfers those functions to the department. It organizes DCE into the executive office of the secretary that includes the offices of state resources, legal services, administration, permitting and compliance, mineral resources, enforcement, and energy.
It also creates the Natural Resources Commission as a coordinating body for management of the state’s natural resources. DCE is given the exclusive authority to regulate water-dependent activities and to manage and protect the water resources in Louisiana.[3]
The new law establishes an expedited permitting program. It requires advance notice to surface and mineral owners prior to permitting or performing carbon dioxide sequestration related activities. The new law requires the department to publish Class VI or Class V applications related to CCS on its website, and expropriation of carbon dioxide sequestration (CCS) pipelines is only permitted for absentee landowners and for pipelines that are common carriers.
HB 459 (Act No. 279) requires certain permits for renewable energy batteries, wind energy, and solar power generation facilities. The new permitting law applies to all uses other than residential property uses. It provides that no battery used for renewable storage facilities shall be installed without the operator first obtaining a permit for installation from DCE. To receive a permit, the applicant must show proof of financial security and a decommissioning plan.
It also introduces new permitting requirements for wind energy. It states that no onshore wind project shall be done without a permit from DCE and requires proof of financial security and a decommissioning plan in order to receive this permit. It defines the term “onshore” to mean “land-based wind turbines and those that are located on inland water bodies.”
As for solar power generation facilities, the secretary of DCE has jurisdiction over all persons and property and has the authority to perform all acts necessary for enforcement. The law prohibits someone from constructing, installing, or operating a solar power generation facility with a footprint of seventy-five or more acres without holding a permit issued by the department. Once the submission of the resolution to opt out is passed, the siting standards shall not apply to that parish. The Department of Agriculture and Forestry and the Department of Wildlife and Fisheries may submit comments in response to the construction, installation, and operation of any power generation facility to the department. The location of the facility determines which standards apply. There must be a buffer around the perimeter of each solar power generation facility that includes setbacks and a vegetative barrier to screen the facility from view. For residential property, unless otherwise agreed to by written instrument between the property owner and the facility operator, there shall be a three-hundred-foot setback from the residential property line to the nearest solar device with one of the following: (1) a thirty-five foot deep vegetative barrier composed of new plant material or (2) a fifty foot deep vegetative barrier composed of natural plant material. For natural and navigable water bodies, a one-hundred-foot setback from the ordinary low water mark to the nearest solar device is required. For public roads, a fifty-foot setback from the edge of the paved road surface to the nearest solar device, with a thirty-five-foot vegetative barrier is required. A parish that adopts solar ordinances may opt out of the siting requirements. This is effective on August 1, 2025.
SB 127 (Act No. 179) provides for development of a permitting program for nuclear generation and for expedited processing of environmental permits, and compliance for nuclear generation. DCE Secretary is authorized to establish a parity program for nuclear power generation and to expedite the permitting process for electric public utilities. The law also establishes the application requirements related to same. This law is effective August 1, 2025.
HR 212 contains a request for DCE and the Public Service Commission to study the legality and feasibility of the use of nuclear energy in Louisiana. It urges the agencies to consider the advantages and disadvantages of nuclear energy generation including economic and environmental impacts, workforce impacts for constructing and staffing facilities, evaluations and recommendations on site characteristics and industrial use, environmental and ecological impacts, safety criteria, tax implications at the local and state level, and job creation.
HB 692 (Act No. 462) provides definitions and a policy framework for clean and renewable energy that is affordable and reliable and promotes grid resilience. It requires that energy sources be affordable, reliable, clean, and dispatchable, that they deliver cost savings for commercial and residential customers, and that they include hydrocarbon-generated energy. It seeks to promote energy reliability and grid resilience. This law is effective August 1, 2025.
HR 265 directs the Louisiana Public Service Commission to explore technology, policy, and cost recovery mechanisms to strengthen the Louisiana electrical grid against electromagnetic threats. It acknowledges that the electric grid of Louisiana is integral to national security and that the high voltage transformers sustaining the Louisiana grid are extremely hard to replace. Due to the devastating potential of a major solar storm, preemptive action to harden Louisiana’s grid against such risks is necessary. It specifically considers the possibility for the Gulf of America to be a strategic launch point for an electromagnetic pulse (EMP) attack by hostile nations and terrorist organizations.
SR 195 creates a task force to study and make recommendations relative to policies that promote energy self-regulation, industrial microgrids, and expedited permitting in Louisiana. The task force must develop a written plan, including proposals for legislation, and submit the plan to the Louisiana Senate by March 1, 2026.
HB 600 (Act No. 295),in part, reduces the severance tax rate from 12.5% to 6.5% for oil produced from wells completed on or after July 1, 2025. The Act also makes related reductions to the severance tax rate for incapable, stripper, inactive, and orphan oil wells. The 12.5% severance tax rate is retained for oil produced from a well completed before July 1, 2025. The bill’s provisions will apply to taxable periods beginning on or after July 1, 2025.
HB 495 (Act. No. 284) limits the horizontal well exemption period to 18 months or until payout of the well, whichever comes first, for gas produced from a well completed on or after July 1, 2025. The 24-month exemption period (or until payout of the well) is retained for gas produced from a well completed before July 1, 2025. The exemption period for oil was not changed. The Act applies to taxable periods beginning on or after July 1, 2025.
Carbon Capture Sequestration (CCS)
HB 691 (Act No. 397) increases regulatory oversight of carbon sequestration activities. The legislation increases the maximum civil penalty for violations under La. R.S. 30:1106 (for underground injection control) from $5,000 to $200,000 per day and per violation. In addition, Act No. 397 imposes more detailed reporting requirements for certain incidents related to carbon injection. At a minimum, reports must now include:
- A description and the location of the incident;
- Potential risks to public health, water sources, and land stability;
- Immediate mitigation steps taken; and
- A timeline for corrective action.
These reports must be disclosed not only to emergency response teams, but also to local law enforcement, local governing officials, and the public via an official press release. The new law took effect on June 20, 2025.
HB 548 (Act No. 508) establishes a new framework for allocating revenue generated from carbon dioxide storage beneath State property. Prior law made no distinction between sovereign State lands and State agency-owned property, allocating revenue from storage beneath “state-owned land or water bottoms” as follows: 30% to the State’s Mineral and Energy Operation Fund, 30% to the parish where the storage facility is located, and the remainder to the State’s general fund. The new law replaces “state-owned land or water bottoms” with “public lands as defined in R.S. 41:1701 [i.e., bottoms of navigable waters, banks of shores and bays, arms of the sea, the Gulf of America, and navigable lakes] and dried lake beds that were formerly navigable and remain owned by the state.” The legislation then introduces a separate allocation scheme for “injected-based revenue” from carbon dioxide storage beneath property owned by State agencies. This revenue category includes, but is not limited to, injection fees, contractual minimum guaranteed annual payments, and any other revenue derived from injection operations. It excludes revenue collected from bonuses, rentals, pipeline rights-of-way, or other payments for surface use or surface facilities. For injected-based revenue collected on behalf of the Department of Wildlife and Fisheries or the Wildlife and Fisheries Commission, 30% is remitted to the governing authority of the parish where the storage facility is located, and the remainder is deposited into the Louisiana Wildlife and Fisheries Conservation Fund. For all other State agencies, 30% is similarly allocated to the parish, while the remainder goes to the State’s general fund.
HB 304 (Act No. 179) provides that expropriation hearings related to carbon capture sequestration activities must be heard in the parish where the subject property is located.
SB 36 (Act No. 407) primarily provides that if any transporter of carbon dioxide has been previously issued a certificate of public convenience and necessity prior to the law’s effective date (June 20, 2025), then that certificate shall remain valid.[4]
SB 73 (Act No. 414) modifies several procedures governing carbon sequestration projects. Most notably, it raises the unitization threshold for carbon dioxide storage projects, requiring written consent from at least 85% of the owners in interest within a proposed storage unit—up from the previous 75%. The law also establishes stricter requirements for initiating eminent domain proceedings related to carbon storage, some of which are:
- Providing written notice of intent to acquire property rights;
- Giving landowners a reasonable opportunity to be present during inspections conducted for appraisal purposes; and
- Engaging in good faith negotiations, including at least five in-person meetings or documented attempts.
Act No. 414 also imposes notice requirements for Class VI and Class V well permit applications.
Water
SB 97 (Act No. 418) creates “CURRENT” (the Coordinated Use of Resources for Recreation, Economy, Navigation, and Transportation Authority), establishing it as the lead entity for integrated flood control, risk reduction, navigation, water resource management, and infrastructure projects – mainly within inland floodplains and watersheds.
HB 687 (Act No. 217) authorizes the port of New Orleans to utilize public-private partnerships for the development of the St. Bernard Transportation Corridor, a roadway project supporting the Louisiana International Terminal.
SB 94 (Act No. 105) renames the Gulf of Mexico as the Gulf of America in state laws and defines jurisdictional “waters of the state” and “fastlands” (land protected by levees or otherwise not subject to regular inundation). The Act specifies that “waters of the state” do not include “fastlands.”
HB 688 (Act No. 395) adjusts the board memberships, leadership roles, term limits, and vacancy procedures for the Southeast Louisiana Flood Protection Authority, both East and West.
Department of Wildlife & Fisheries (DWF)
HB 497 (Act No. 201) expands promotion of the Catch and Cook Program by authorizing the Louisiana Seafood Promotion and Marketing Board, Louisiana Charter Boat Association, and Louisiana Restaurant Association to participate in the program with DWF. The law adds licensed charter boat captains as eligible participants in the program. It updates labeling requirements for fish and alligator products served in restaurants and modifies permitting for participants.
HB 564 (Act No. 87) establishes the Conservation Incentive Program within DWF to provide grants to assist private landowners for projects enhancing wildlife habitat and managing native species on private lands. Eligible projects include: (1) forest stand improvement; (2) increasing prevalence of water on agricultural landscapes to provide habitat for wintering waterfowl and wetland birds; (3) management of private wetlands to increase suitability for waterfowl and wetland birds; (4) prescribed fire implementation; and (5) feral swine control.
HCR 75 creates the Chronic Wasting Disease Task Force in response to the neurodegenerative disease, first found in Louisiana deer in 2022.
SB 85 (Act No. 415) allows local governments to establish and enforce no-wake zones within 300 feet of public bridges.
Environment
HB 173 (Act No. 67) authorizes State Park wardens to enforce litter laws statewide and to issue citations with civil penalties. The Department of Culture, Recreation and Tourism may initiate administrative proceedings to recover the penalties.
SB 46 (Act No. 95) prohibits the intentional release of substances into the atmosphere within Louisiana’s borders to affect the weather, except for firefighting and agricultural applications.
SB 32 (Act No. 94) provides a safe harbor from civil liability for suppliers, agricultural producers, and landowners using gypsum (typically an industrial by-product) as a soil amendment, provided they comply with all applicable laws, rules, regulations, and specifications.
Litigation
HB 431 (Act No. 15) amends Louisiana Civil Code article 2323 and replaces Louisiana’s longstanding pure comparative fault regime with a modified comparative fault regime. Under the prior version, a plaintiff’s damages were reduced in proportion to his or her percentage of fault, regardless of how significant that percentage was—even if plaintiff’s fault was 99%, in which case the plaintiff would recover 1% from the tortfeasor. The new law bars recovery for a plaintiff found to be 51% or more at fault. If the plaintiff’s fault is 50% or less, damages are reduced proportionally. Importantly, under both the prior version of Article 2323 and the amended version, recoverable damages will not be reduced if an intentional tortfeasor partly contributed to the injury, death, or loss.
HB 291 (Act No. 176) amends Civil Code articles 2315.1 and 2315.2 to modify the prescriptive periods for survival and wrongful death actions. Under prior law, both actions prescribed one year from the date of the decedent’s death. Under the new law, both actions prescribe the longer of (i) one year from date of death or (ii) two years from the date that injury or damage was sustained. The bill also provides that prescription for medical malpractice survival actions is governed by La. R.S. 9:5628 and wrongful death medical malpractice actions prescribe one year from death.
Effective Date of Acts and Future Sessions
Unless otherwise specified in the legislative text, the effective date of all bills during the 2025 Legislative Session is August 1, 2025. Kean Miller will continue to monitor these developments and future legislative sessions. For questions or to discuss any of the foregoing, please contact one of the authors of this article or Kean Miller’s Energy/Environmental Team.
[1] For more information about the State Operating Budget for the new fiscal year or other general information about the 2025 Regular Session, please see the Louisiana House of Representatives Legislative Services “Session Wrap” summary report, which is available at https://house.louisiana.gov/Agendas_2025/2025RS-SessionWrap.pdf.
[2] For a summary of the changes to the legacy lawsuit process, please see: Louisiana Legislature Revisits Act 312 and Oilfield Legacy Lawsuits | Louisiana Law Blog.
[3] For a summary of the reorganization of the DCE, please see: Introducing the Department of Conservation and Energy | Louisiana Law Blog.
[4] Both SB 36 (Act 407) and SB 73 (Act 414) provided modifications to the final language of SB 244 (Act 458).