Louisiana House Bill HB246

Louisiana 2021 Regular Session

• Introduced: 3/29/21
• Refer: 3/29/21
• Refer: 4/12/21
• Report Pass: 4/28/21
• Engrossed: 5/6/21
• Refer: 5/10/21
• Report Pass: 5/20/21

Caption

Provides relative to the storage of hydrogen in underground reservoirs and salt domes

Impact

The implications of this bill for Louisiana's regulatory framework are significant. It mandates that prior to the use of any salt dome for hydrogen storage, a comprehensive assessment must be conducted, ensuring that the facility is feasible, will not contaminate surrounding areas, and is environmentally safe. This adds a layer of regulatory oversight that aims to protect both natural resources and communities. Additionally, the bill sets guidelines on how the safety and environmental impacts of such storage will be evaluated, which is crucial as energy storage practices evolve.

Summary

House Bill 246 aims to expand the scope of substances that can be stored in underground reservoirs and salt domes by including hydrogen. The bill amends existing law that already allows for the storage of natural gas, liquid hydrocarbons, and carbon dioxide. With this new provision, the state intends to adapt its energy storage capabilities to accommodate emerging energy technologies and foster a more robust energy policy focusing on the future of cleaner energy sources such as hydrogen.

Sentiment

The general sentiment surrounding HB 246 appears to be cautiously optimistic. Supporters highlight the necessity of adapting energy policies to incorporate hydrogen as a means to transition towards cleaner energy solutions and reducing harmful emissions. However, there are underlying concerns about the potential environmental impacts of hydrogen storage, particularly regarding the integrity of salt dome formations. This has led to discussions about the balance between energy innovation and environmental safety, which reflects a broader trend in energy policy towards sustainability.

Contention

Notable points of contention arise from the responsibilities placed on the commissioner of the Department of Natural Resources, as they are charged with ensuring the safe implementation of hydrogen storage projects. Critics warn that while moving forward with hydrogen storage could have substantial benefits, it must be approached with vigilance to avoid environmental hazards. The bill's opponents argue that insufficient attention may still be given to local environmental concerns and potential job repercussions, specifically regarding temporary job losses that may arise during the transition to hydrogen storage.