The amount of Louisiana offshore real estate eventually occupied by wind energy turbines could be much more than 25,000 acres as prescribed in a state law known as Act 443.
That’s because there’s nothing preventing a company from purchasing adjoining leases, according to Katharine Kollins, president of the Southeast Wind Coalition.
“Louisiana is unique in that it recognizes the opportunities that come with a working coastline,” she said.
Act 443 allocates for leasing to green energy companies up to 25,000 acres of Louisiana offshore water in the Gulf of Mexico to build wind turbines.
“The foundations are underwater, much like an oil and gas platform, where there's a metal foundation that is secured to the seabed, but the tower and the blades are all above water,” Kollins told the Louisiana Record. “Like any static structure in the water, they attract fish so they're very popular with recreational fishers because it creates an offshore ecosystem where there wasn't one before.”
However, opponents are concerned because there is no legislative oversight included in Act 443.
Ten House Republicans opposed the legislation. They include Rep. Alan Seabaugh (Caddo Parish), Rep. Beryl Amedee (Terrebonne Parish) Rep. Kathy Edmonston (Gonzales), Rep. Larry Frieman (Abita Springs), Rep. Ray Garofalo (Chalmette), Rep. Brett Geymann (Lake Charles), Rep. Valarie Hodges (Denham Springs), Rep. Sherman Mack (Baton Rouge), Rep. Chuck Owen (Rosepine), and Rep. Danny McCormick (Oil City).
“The oversight would be through the Department of Natural resources and other state agencies so there's certainly state-level oversight,” Kollins said. “Part of what this legislation did was it asked the Department of Natural Resources to promulgate the rules around what offshore wind projects might need to consider because currently, the statutes consider things that are specific to oil and gas.”
While critics are fearful that the law will enrich green energy investors at the expense of Louisiana taxpayers, according to media reports, Kollins claims that the law provides a timeframe in which the Department of Natural Resources (DNR) is required to determine the royalty rate for the state leases.
“Once the Department of Natural Resources determines what those royalty percentages will be, those companies that are looking to lease areas will factor that into what they're willing to pay upfront for a lease area,” she added. “This is state waters so anything leased in those waters is already going to be funneled into state revenues.”