“SB 108 is unnecessary, protectionist, and economically harmful. It sends the wrong message about Louisiana’s business climate and conveys regulatory instability, entirely unhelpful to the state’s reputation, especially as leader are working so hard to attract job creation and capital investment.”
FOR IMMEDIATE RELEASE
April 17, 2024
The following statement can be attributed to Jeff Clark, President of Advanced Power Alliance:
Senate Bill 108 was introduced at the behest of special interests to stop the development of one multi-state electricity transmission project. It’s a bill motivated by their desires but, if it passes, this unnecessary and unconstitutional legislation will have a far-reaching and chilling harmful impacts that will hurt all Louisianans and will harm the future economic development of Louisiana. Its damage won’t be limited to just this one project, but would weaken this vital development tool and threaten infrastructure projects of all types including roads, ports, pipelines, railroads, and other electricity transmission and distribution lines.
SB 108 would prohibit expropriation by interstate transmission line developers unless a majority of the power is used by off-takers in Louisiana. In this case, one project being developed by a US-based private company is being targeted. This $2 billion high voltage direct current (HVDC) transmission line will connect the Electric Reliability Council of Texas (ERCOT) and electric grids in the Southeast. It is privately funded and will have no utility ratepayer impact.
The line will pass through some of the state’s most disadvantaged areas, providing an economic boost and an influx of essential tax revenue for schools and local governments. These include DeSoto, Red River, Bienville, Jackson, Ouachita, Richland, Franklin, and East Carroll parishes who will collectively benefit from roughly $349 million in new property tax revenue during the first 40 years of operation.
The developer of this line has already invested more than $75 million in Louisiana, but if SB108 passes the state – and these 8 parishes – will lose $2 billion in new capital investment, forfeit needed tax revenue, and miss out on jobs and economic growth to the state. This project will create 2,000 construction jobs and 400 permanent jobs for hard working Louisianans.
SB 108 foolishly sends a loud and clear message that Louisiana is closed for business and its effects will be felt far and wide. SB 108 targets one project but would weaken this tool, threatening all manner of infrastructure projects including roads, ports, pipelines, railways, and other electricity transmission and distribution lines. Those impacts affect commerce and transportation and prevent investment in electricity infrastructure essential to protecting the grid and building storm resilience.
The targeted project is a federally approved project and has been found by federal regulators to be in the public interest. While proponents argue inaccurately that this bill is needed to protect Louisiana citizens, they ignore the fact that the developer has voluntarily chosen to go through the Louisiana Public Service Commission’s process to secure a certificate of public convenience, and that review is underway. This very public analysis and approval ensures the interests of Louisiana, and its citizens, are protected.
SB 108 is unnecessary, protectionist, and economically harmful. It sends the wrong message about Louisiana’s business climate and conveys regulatory instability, entirely unhelpful to the state’s reputation, especially as leader are working so hard to attract job creation and capital investment.
Advanced Power Alliance urges members of the Louisiana Legislature to resoundingly defeat this measure.