The 2010 Legislative Session closed earlier this summer, and most of the passed laws are now in effect. It was a very active legislative session, and a very interesting one for the “green” interests. This post breaks down some of the more significant green legislation and links to PDFs of each relevant Act.

HB 973 – Amendments to PACE Financing Program

In the 2009 session, the legislature passed Act 348 creating sustainable energy financing districts in the state. As passed in 2009, the program was in the spirit of PACE Financing…but not quite there. The amendments in this Act make the SEFD (Sustainable Energy Financing District) a traditional PACE program. The amendments require all city loans to get paid back through property tax assessments. Now…Louisiana will likely have to wait and see how the Obama / California v. FHFA fight turns out to see if PACE Financing programs are viable any longer. The act amends La. R.S. 130.812. View HB 973. Sponsored by Representative Foil.

HB 699 – Oversight and Audit Additions to Performance Based Energy Contracts

How can a company guarantee the city will see energy savings? How does a city keep up and audit this? These are questions that Louisiana’s Performance-Based Energy Efficiency Contracts have struggled with, and that this law hopes to answer. The Act adds an “Energy Efficiency Procurement Support Team,” a few additional lawyers of administration and more rigid auditing requirements. The Act amends La. R.S. 39:1496. View HB 699. Sponsored by Louisiana Representative Geymann.

SB 103 – Alternative Fuel Vehicle Revolving Loan Fund

Senator Gautreaux wants Natural Gas to be a big deal in Louisiana. Why? Because Louisiana is the nation’s largest source of natural gas. Natural Gas vehicles are an excellent use of the natural gas resource, but the old “chicken or the egg” problem persists. Without natural gas fueling stations, folks won’t buy the vehicles. Without the vehicles, there’s no need for fueling stations.

The concept of this Fund is to create below market interest loans for public entities and subdivisions, for use of them to purchase or convert their fleets to CNG vehicles. This fund is not “funded,” meaning the state hasn’t allocated any money to actually offer these loans yet. But, they are getting ready to make the offering to give cities state-wide incentive to convert their fleets. Act enacts La. R.S. 33:1419. View SB 103. Sponsored by Louisiana Senator Gautreaux.

SB 183 – State Leases for Alternative Energy Production

Previously, the Louisiana Department of Natural Resources and State Mineral and Energy Board could only lease state land for the production and development of oil, minerals and gases. This law changes this slightly, allowing state land to also be leased through these departments for the development and production of “alternative energy sources.” The Act amends La. R.S. 30:124. View SB 183. Sponsored by Louisiana Senator Gautreaux.

SB 624 – Energy Rebates for Mega-Projects

This bill applies only to mega-projects in Louisiana. A mega-project is defined as one that brings 500 direct new jobs to the state, or a $500m facility. If a major operation cost for the mega-project is energy consumption, and if energy savings is a priority factor to get the mega-project in Louisiana, this law allows the state to offer a rebate of severance taxes equal to the natural gas consumption of the mega-project. The Act enacts La. R.S. 51:2366. View SB 624. Sponsored by Louisiana Senator Marionneaux.

SB 648 – Changes to Louisiana Appraisal Law

A simple bill making a change to the definitions portion of the Louisiana Appraisal Law. The change requires an appraiser to consider the energy efficiency of a property when estimating its value. The Act amends La. R.S. 37:3392. View SB648. Sponsored by Louisiana Senator Hebert.

HB 751 – Right to Install Solar Collectors

A simple bill prohibiting “unreasonable restrictions” on a property owner’s right to install solar collectors at its property. The Act enacts La. R.S. 9:1255. View HB 751. Sponsored by Louisiana Representative Foil

HB 733 – Carbon Sequestration

A bill authorizing the Department of Agriculture and Forestry to participate “to the fullest extent possible” regarding carbon sequestration and reduction of emissions of carbon dioxide. Enacts La. R.S. 3:1221. View HB 733. Sponsored by Louisiana Representative Anders.

Read our summary of the 2009 Green Legislation here and here.

Governor Bobby Jindal signed two Green Building bills into law this July 2009.

The first, Act 348, authorizes the creation of sustainable energy financing districts and was authored by Senator Nick Gautreaux. The second, ACT 520, authorizes a tax credit for certain green job industries, and was authored by Representative Walt Leger.

The two acts provide green building contractors and businesses, and the purchasers of those products and services, some of the most beneficial tax incentives in the nation. The new laws also help Louisiana hold its ground in the national green building boom.

Act 348 – Gautreaux (LA R.S. 33:130.790 – 793)

The digest of Act 348 only scratches the surface for the green building opportunities created by this act. Here is the official summary for the Act:

Authorizes creation of sustainable energy financing districts by local governmental subdivisions and provides for issuance of bonds and property assessment programs for solar and energy efficiency projects.

The effect of this act, in plain english, is to allow local governments and subdivisions to incur debt for the purposes of providing these “energy financing districts” with necessary funds to cover the cost of energy efficiency improvements or renewable energy improvements.

These loans are made directly by the district to the home or property owner, and can be paid back over a twenty year period. Property owners can even make arrangements to pay back loans through its payment of annual property taxes.

On July 7, 2009, Governor Bobby Jindal caused Act 348 to become law. Time will tell whether local government subdivisions will take advantage of the new law and start offering loans to homeowners and property owners who are interested in making green building improvements to their properties.

If these loans become available, and used, it could lead to an enormous amount of green building projects throughout Louisiana. Read the full text of Act 348

Act 520 – Leger (La R.S. 47:6035)

According to the New Orleans’ Times Picayune article on Act 520, the tax credit system created by this proposal is similar to the tax credits offered to filmmakers in Louisiana. State Representative Walt Leger hopes to lure green businesses to Louisiana through the same trick that helped coin New Orleans’ “Broadway South.”

The tax credits are explained in the Times Picayune Article as follows:

Working on a tiered system that offers 10 percent to 25 percent, based on how much companies spend, the tax credit applies to the start-up costs of a new green business as well as to the payroll of each new green job…As defined in the bill, green jobs and industries can include a wide range of potential businesses, including renewable energy services, green building and construction, weatherization, energy rating, biofuels, energy-efficient transportation, deconstruction and green product manufacturers.

The potential reach of the new legislation – known as the Louisiana Green Jobs Initiative – is wide.

With the post-Katrina construction silver lining, the injection of stimulus cash, and the national (and local) green building boom…Louisiana’s Green Market may be in for a perfect storm in 2009 and 2010.

Read full text of Act 520.