HLS 24RS-2033 RE-REENGROSSED 2024 Regular Session HOUSE CONCURRENT RESOL UTION NO. 64 BY REPRESENTATIVE ORGERON ENERGY/ALTERNATE: Creates the Clean Hydrogen Task Force 1 A CONCURRENT RESOL UTION 2To create and provide with respect to a Clean Hydrogen Task Force to study and make 3 recommendations with respect to growing the clean hydrogen industry in the state, 4 including its production, connective and storage infrastructure, and end use. 5 WHEREAS, Louisiana has historically been a lead energy carrier for the nation, a 6top energy producer, and the primary energy consumer because of our leading industrial 7sector; and 8 WHEREAS, Louisiana leads the nation in the energy transition with over one-third 9of total industrial investments in clean energy or emissions reductions, and as a result, 10employment in Louisiana’s energy sector has grown and is expected to continue to grow in 11coming decades; and 12 WHEREAS, over the last five years, the state of Louisiana has announced thirty-five 13clean energy projects totaling $45.6 billion in capital expenditure and these projects will 14create twenty-three thousand new jobs with an average salary of $79,700; and that $23.3 15billion of the total $45.6 billion represent investments for renewable-powered industrial 16projects; and 17 WHEREAS, Louisiana is expected to have exponential growth in demand for clean 18hydrogen because of economic opportunity for industries, job growth, and energy 19diversification; and 20 WHEREAS, Louisiana is already one of the largest hydrogen producers in the nation, 21totaling 2.8 million metric tons of hydrogen in 2020, and is equipped to be a regional and 22global leader of clean hydrogen production, transport, storage, and use; and Page 1 of 5 HLS 24RS-2033 RE-REENGROSSED HCR NO. 64 1 WHEREAS, hydrogen is a chemical element commonly used as a feedstock in 2industrial processes like oil refining, fertilizer production, petrochemical, and steelmaking; 3and 4 WHEREAS, hydrogen is an energy carrier and can store and deliver usable energy 5derived from a variety of sources; and 6 WHEREAS, hydrogen can also be used as a substitute for conventional fossil fuels 7in some use cases with considerably lower greenhouse gas emissions at its point of use; and 8 WHEREAS, hydrogen can be produced using multiple methods, each with varying 9levels of carbon intensity based on the processes and inputs used; and 10 WHEREAS, the United States Department of Energy has issued guidance defining 11a Clean Hydrogen Production Standard based on the carbon intensity of production, rather 12than the method of production, with "well-to-gate" lifecycle intensity as less than or equal 13to 4.0 kg CO2e per kg hydrogen; and 14 WHEREAS, "well-to-gate" refers to carbon intensity associated with a product or 15process from the point of extraction or production of raw materials to the point where it 16leaves the manufacturing facility gate; and 17 WHEREAS, the United States Department of Energy is targeting clean hydrogen 18production costs in the $1/kg range within ten years and Louisiana is well-positioned to lead 19the seeking of this goal due to its vast industrial knowledge, facilities, research universities, 20trained workforce, and feedstock assets; and 21 WHEREAS, the study of and policy development for production, infrastructure 22buildout, and end uses for clean hydrogen will make the Louisiana market more competitive. 23 THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby 24create the Clean Hydrogen Task Force, herein referred to as the "task force", composed of 25members as hereinafter provided, to study and make recommendations related to the 26growing clean hydrogen industry in the state, including its production, connective and 27storage infrastructure, and end use. Page 2 of 5 HLS 24RS-2033 RE-REENGROSSED HCR NO. 64 1 BE IT FURTHER RESOLVED that the task force shall be composed of the 2following members: 3 (1)The chairman of the House Committee on Natural Resources and 4Environment, or his designee. 5 (2)The chairman of the Senate Committee on Natural Resources, or his designee. 6 (3)The secretary of the Department of Energy and Natural Resources, or his 7designee. 8 (4)The secretary of the Department of Environmental Quality, or his designee. 9 (5)The secretary of the Department of Economic Development, or his designee. 10 (6)The chairman of the Public Service Commission, or his designee. 11 (7)Two appointees from the clean hydrogen industry. 12 (8)Two representatives from regulated electric power generation and distribution 13companies, one of whom shall be appointed by the chairman of the House Committee on 14Natural Resources and Environment and one by the chairman of the Senate Committee on 15Natural Resources. 16 (9)Two appointees from the Louisiana higher education system with relevant 17expertise. 18 (10)One appointee from a regional economic development organization with 19relevant policy and ecosystem expertise. 20 (11)No more than three appointees that represent the interests of the community. 21 BE IT FURTHER RESOLVED that the task force shall be chaired by the chairman 22of the House Committee on Natural Resources and Environment or his designee and the 23chairman shall appoint members unless noted otherwise above. 24 BE IT FURTHER RESOLVED that the task force shall meet at least quarterly, with 25an initial meeting no later than July 31, 2024, and be staffed by the Louisiana Department 26of Energy and Natural Resources, office of energy, if such office is created on or after July 271, 2024, by House Bill 810 of the 2024 Regular Session of the Legislature and otherwise by 28the discretion of the secretary of the Louisiana Department of Energy and Natural Resources. Page 3 of 5 HLS 24RS-2033 RE-REENGROSSED HCR NO. 64 1 BE IT FURTHER RESOLVED that a majority of membership shall constitute a 2quorum for the transaction of business, and any official business shall require an affirmative 3vote of the majority of the quorum present and voting. 4 BE IT FURTHER RESOLVED that the task force shall develop a plan of 5recommendations for the governor and the legislature on Louisiana's future in clean 6hydrogen no later than December 1, 2025. 7 BE IT FURTHER RESOLVED that in developing this plan, the task force shall 8research and address the following topics: 9 (1)Assess the growing clean hydrogen economy and workforce in the nation and 10in the State of Louisiana. 11 (2)Provide transparency on hydrogen production, connective infrastructure, end 12use, and impacts on local communities. 13 (3)Review active and planned clean hydrogen projects, policy initiatives, public 14and private investments, tax incentives, project permitting, state procurement, pilot projects, 15projected workforce needs, and regulatory structures in Louisiana. 16 (4)Assess public and private policy mechanisms to incentivize clean hydrogen 17specifically for high-opportunity end uses for the State of Louisiana like ammonia and 18chemical products, oil and gas refining, maritime fuel production, power production, and 19port facility operations. 20 (5)Recommend policy strategies to accelerate the production and use of clean 21hydrogen, including processes such as electrolysis and steam methane reforming with carbon 22capture. Policy recommendations may include recommendations on how to overcome 23market and technical barriers and accelerate progress in clean hydrogen production; scaling 24and use, including use of public-private partnerships or demonstration projects; financing 25mechanisms; incentives; or other policies. 26 (6)Assess the largest sources of emissions in Louisiana, the divergence of 27Louisiana's emission sources compared to other states, and the opportunity of clean 28hydrogen production to decarbonize sectors of the state economy, reduce emissions and 29improve air quality. Page 4 of 5 HLS 24RS-2033 RE-REENGROSSED HCR NO. 64 1 (7)Assess opportunities for and barriers to deployment of clean hydrogen in the 2state economy and policy environment. 3 BE IT FURTHER RESOLVED that the task force shall submit this plan of 4recommendations for Louisiana's future in clean hydrogen to the governor, the House 5Natural Resources and Environment Committee, and the Senate Natural Resources 6Committee by December 1, 2025 and submit a progress report by March 1, 2025. 7 BE IT FURTHER RESOLVED that following the submission of the final plan of 8recommendations the task force shall be disbanded. 9 BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the 10secretary of the Department of Energy and Natural Resources, the secretary of the 11Department of Environmental Quality, the secretary of the Department of Economic 12Development, and the chairman of the Public Service Commission. DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] HCR 64 Re-Reengrossed 2024 Regular Session Orgeron Creates the Clean Hydrogen Task Force, to study and make recommendations related to the growing clean hydrogen industry in the state, including its production, connective and storage infrastructure, and end use. Requires the task force to develop a plan of recommendations for the governor and the legislature on Louisiana's future in clean hydrogen no later than Dec. 1, 2025. Specifies that the task force will be staffed by the La. Dept. of Energy and Natural Resources, office of energy, if it is created by July 1, 2024. Otherwise, the task force will be staffed at the discretion of the secretary. Summary of Amendments Adopted by House The Committee Amendments Proposed by House Committee on House and Governmental Affairs to the engrossed resolution: 1. Make a technical change. The House Floor Amendments to the reengrossed bill: 1. Specify that the task force will be staffed by the La. Dept. of Energy and Natural Resources, office of energy, if such office is created on or after July 1, 2024, by House Bill 810 of the 2024 R.S. and otherwise by the discretion of the secretary of the La. Dept. of Energy and Natural Resources. Page 5 of 5