State and Local Policy Database

Louisiana

State Scorecard Rank

47

Louisiana

6.5Scored out of 50Updated 9/2016
State Government
Score: 1.5 out of 7
State Government Summary List All

Louisiana offers several consumer incentives for energy efficiency investments. The state government leads by example by setting energy requirements for public buildings and fleets and encouraging the use of energy savings performance contracts. No public research centers have a focus on energy efficiency.

Financial Incentives List All

Financial incentive information for Louisiana is provided by the Database of State Incentives for Renewables and Efficiency (DSIRE Louisiana). Information about additional incentives not present on DSIRE is listed here.

Energy Fund Loan Program: Provides low interest loans for energy efficiency projects at schools and other public facilities.

Last Updated: August 2017

Building Energy Disclosure List All

There is no disclosure policy in place.

Last Updated: July 2016

Public Building Requirements List All

Senate Bill 240, signed on July 6, 2007, requires construction or renovation of major state-funded facilities to be designed and built to exceed state energy codes by at least 30%, subject to a life-cycle cost analysis.

Last Updated: July 2016

Fleets List All

LA Revised Statute 39:364 requires the Commissioner of Administration to purchase and/or lease alternative fueled vehicles unless fueling infrastructure is not available in the area where the vehicles will operate.

Note: For state efficient fleet initiatives, policies listed must require specific improvements to state fleet efficiency that exceed existing Corporate Average Fuel Economy (CAFE) standards.  State procurement requirements for hybrid-electric or plug-in electric vehicles may be counted, but alternative-fuel vehicle procurement requirements that give a voluntary option to count efficient vehicles are not included. 

Last Updated: August 2017

Energy Savings Performance Contracting List All

Louisiana statutes require that performance contracting be used to the “maximum extent possible”, and in 2008, Governor Jindal released an executive order that called for energy efficiency targets to be met using ESPCs.  The Department of Administration’s Office of Contractual Review houses the information about ESPCs, including a model contract, state ESPC rules, and a flowchart to describe the process step-by-step.

Last Updated: July 2017

Research & Development List All

While not research, the University of Louisiana-Lafayette operates the Smart and Secure Energy Assessment Program with funding from the Louisiana State Energy Office and focuses on energy efficiency opportunities at light industrial and commerical facilities. No public research centers have a focus on energy efficiency.

Last Updated: August 2017

Buildings
Score: 2.5 out of 7
Buildings Summary List All

Residential buildings must meet the 2009 IRC with reference to the 2009 IECC, while commercial and state-owned construction must meet ASHRAE 90.1-2007. The state offers code trainings.

Residential Codes List All

Residential buildings must meet the 2009 IRC with reference to the 2009 IECC. Multifamily residential construction three stories or less must comply with the 2012 IRC and the energy provisions of the 2009 IECC. Multifamily residential construction over three stories must comply with ASHRAE 90.1-2007.

Last Updated: August 2017

Commercial Code List All

Effective July 2011, ASHRAE Standard 90.1-2007 applies to all private commercial buildings built or remodeled as well as state-owned construction. 

Last Updated: August 2017

Compliance List All
  • Gap Analysis/Strategic Compliance Plan: NA
  • Baseline & Updated Compliance Studies: NA
  • Utility Involvement: NA
  • Stakeholder Advisory Group: NA
  • Training/Outreach: The state energy office has contracted with LSU with the assistance of SEEA to develop and conduct statewide code training. $50,000 has been made available for training.

Last Updated: July 2017

CHP
Score: 0.5 out of 4
CHP Summary List All

Louisiana promotes adoption of CHP in critical facilities, but has not otherwise pursued policies to promote CHP. One new CHP system was installed in 2016.

Interconnection StandardsList All

Policy: Louisiana Interconnection Standard, La. R.S. 51:3061

Description: Louisiana requires that regulated utilities offer interconnection to distributed generation systems powered by renewable fuels. The interconnection standard includes fuel cells and microturbines as eligible for interconnection, though they must be fully fueled by renewable fuels such as biomass. The maximum system size is 300kW for non-residential applications.

Last Updated: August 2017

Encouraging CHP as a ResourceList All

There are currently no state policies designed to acquire energy savings from CHP (like other efficiency resources) or energy generation from CHP (in terms of kWh production) that apply to all forms of CHP.

Last Updated: August 2017

Deployment IncentivesList All

There are currently no state policies that provide additional incentives for CHP deployment.

Last Updated: August 2017

Additional Supportive PoliciesList All

In 2012 the Louisiana legislature passed House Resolution 167, which prompts the state’s Department of Natural Resources (NDR) and Public Service Commission (PSC) to implement CHP systems to help increase and maintain stability and reliability in the state’s critical facilities. The law asks the DNR and PSC to develop and adopt rules that would encourage and hasten the deployment of CHP where “expected energy savings exceed the expected costs.”

The Louisiana Energy Office contracted with Louisiana State University to determine existing CHP opportunities, especially those that have an emergency planning or resiliency component to them. 

Last Updated: August 2017 

Utilities
Score: 0.5 out of 20
Utilities Summary List All

Louisiana’s investor-owned electric utilities began offering energy efficiency programs for electricity customers in 2014. Entergy New Orleans, which is regulated by the City of New Orleans, has been offering a portfolio of energy efficiency programs called Energy Smart since 2011. The Louisiana Public Service Commission (LPSC), which regulates all other investor-owned utilities (IOUs), approved final energy efficiency rules in 2013, which create a framework for voluntary quick-start energy efficiency programs (Docket R-31106). In early 2014, the electric utilities filed plans for quick-start energy efficiency programs, and they began rolling out the programs in November 2014. Gas utilities chose not to file quick-start programs. Next, the LPSC will work on the more comprehensive Phase Two energy efficiency programs.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables (below).

For more information see the ACEEE May 2013 report Louisiana’s 2030 Energy Efficiency Roadmap: Saving Energy, Lowering Bills, and Creating Jobs.

Customer Energy Efficiency Programs List All

Entergy New Orleans offers a portfolio of energy efficiency programs including residential, small commercial, and industrial offerings through its Energy Smart program. Entergy Louisiana/Gulf States, Cleco Power, and Southwestern Electric Power Company (SWEPCO) all began offering quick-start energy efficiency programs for residential and business customers in November 2014. In 2016 the three Louisiana utilities that opted in filed their first round of annual reports demonstrating that they had met or exceeded savings levels laid out in their plans.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables at the bottom of the page.

Last Updated: September 2016

Energy Efficiency as a Resource List All

In March 2012, the LPSC voted to adopt integrated resource planning (IRP) rules, which direct investor-owned electric utilities in the state to develop long-term plans for both supply- and demand-side resources (Docket No. R-30021). Other than indirectly through the IRP process, there is currently no policy in place that treats energy efficiency as a resource.

Last Updated: September 2016

Energy Efficiency Resource Standards List All

There is currently no EERS in place.

For more information on Energy Efficiency Resource Standards, click here.

Last Updated: September 2016

Utility Business Model List All

The Louisiana Public Service Commission authorized a Lost Contribution to Fixed Costs (LCFC) mechanism for efficiency programs in its “Quick Start” Energy Efficiency rules for electric and gas utilities (General Order Docket R-31106, September 20, 2013). The three investor-owned electric utilities (Cleco, Entergy Louisiana/Gulf States, and SWEPCO) began implementing energy efficiency programs, along with an LCFC mechanism, in November 2014.  Gas utilities chose not to file efficiency programs.

In New Orleans there is a rate rider that provides for recovery of lost contribution to fixed costs for the electric and gas utility, Entergy. The lost contribution estimate is the product of the adjusted gross margin per kWh and the total annual projected savings. There is currently no policy in place at the state level that decouples utility profits from sales. 

Also in New Orleans, there is a rate rider that includes an incentive mechanism for the electric and gas utility, Entergy. To be eligible for an incentive the utility must achieve 75% or greater of its approved savings goal. The incentive is based on a sliding scale and is a percentage of the utilities approved return on equity. The incentive is capped at 125% of the annual projected savings goal.

The LPSC Quick Start Energy Efficiency rules do not authorize utility shareholder incentive mechanism for efficiency, however it does list the topic for discussion during the Phase II Comprehensive program phase.

Last Updated: September 2016

Evaluation, Measurement, & Verification List All
  • Cost-effectiveness test(s) used: TRC, UCT, PCT, RIM
  • Uses a deemed savings database: no

The evaluation of ratepayer-funded energy efficiency programs in Louisiana relies on regulatory orders (Docket No. R-31106-) by the Louisiana Public Service Commission (LPSC). LPSC rules require that evaluations be conducted for each of the utilities, but there are no specific legal requirements for these evaluations in Louisiana.

Louisiana uses four of the five classic benefit-cost tests identified in the California Standard Practice Manual. These are the Total Resource Cost (TRC), Utility/Programs Administrator (UCT), Participant (PCT), and Ratepayer Impact Measure (RIM).  

The rules for benefit-cost tests are those of Arkansas, as stated in APSC Rules for Conservation and Energy Efficiency Programs, Docket 06-004-R. Louisiana specifies the TRC to be its cost-effectiveness test required for program-level screening.

Each utility is to hire an independent EM&V contractor, and to jointly fund an Independent EM&V Monitor. The Commission requires an EM&V collaborative to develop a Technical Resource Manual that is updated annually and approved by the Commission. 

For purposes of Quick Start EE program cost effectiveness evaluations, utilities may use deemed saving estimates from other state programs or other nationally recognized source(s) of information for EE program benefits, with appropriate adjustments for each specific Louisiana utility. 

Last updated: September 2016

Guidelines for Low-Income Energy Efficiency Programs List All

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

The Louisiana Public Service Commission (LPSC) approved final energy efficiency rules in 2013 in LPSC General Order dated January 10, 2013 (Docket R-31106), however these did not address specific requirements for low-income programs.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

No specific adjustments or exceptions to general cost-effectiveness rules are in place for low-income programs.

In its original Quick Start portfolio filing, Entergy submitted an income-qualified program that did not pass TRC on the basis of its overall value, as well as its role in allowing low-income customers to participate in Quick Start programs that might otherwise be inaccessible. Commission staff expressed concern surrounding this program and they suggested that Entergy consider removing it, which led to Entergy adjusting the program to meet TRC test requirements, amending its program plan, and ultimately receiving commission approval.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

Level of coordination is unclear from publicly available data.

Last updated: April 2017

Data AccessList All

Louisiana has no policy in place that requires utilities to release energy use data to customers or third parties. 

Last Updated: September 2016 

Transportation
Score: 1.5 out of 10
Transportation Summary List All

Lousiana adopted a complete streets policy in 2010 and has tax credits for the purchase of high-efficiency vehicles, but has not otherwise pursued efficient transportation measures.

Tailpipe Emission Standards List All

No policy in place or proposed.

Last Updated: July 2017

Transportation System Efficiency List All

Transportation and Land Use Integration: No policy in place or proposed.

VMT Targets: No policy in place or proposed.

Complete Streets: Louisiana’s complete streets policy, adopted in 2010, calls for “a comprehensive, integrated, connected transportation network for Louisiana that balances access, mobility, health and safety needs of motorists, transit users, bicyclists, and pedestrians of all ages and abilities.”

FAST Freight Plans and Goals: Louisiana has a state freight plan that identifies a multimodal freight network, but it does not include freight energy or greenhouse gas reduction goals.

Last Updated: July 2017

Transit Funding List All

No policy in place or proposed.

Last Updated: July 2017

Incentives for High-Efficiency Vehicles List All

Electric vehicles purchased in Louisiana qualify for a tax credit that amounts to 50% of the incremental cost of the vehicle. Tax payers may alternatively qualify for a tax credit equivalent to the lesser of 10% of the cost of the purchased electric vehicle or $3000.

Last Updated: July 2017

Equitable Access to Transportation:
Louisiana does not have any state programs in place to incentivize the creation of low-income housing near transit facilities, but it does consider the proximity of transit facilities when distributing federal Low-Income Housing Tax Credits to qualifying property owners. Last Updated: July 2017
Appliance Standards
Score: 0 out of 2
Appliance Standards Summary List All

Louisiana has not set appliance standards beyond those required by the federal government.

Last Updated: June 2017