Oil’s pumping, but energy cutback confusing market

South Louisiana is at the tip of the iceberg when it comes to natural gas and oil. The area is also hailed as a land of opportunity for sportsmen. Deputy Secretary of the Louisiana Department of Natural Resources (DNR), Lori LeBlanc, told a crowd of nearly 50 people at a monthly Bayou Industrial Group (BIG) meeting, “We can truly have it all through responsible management of our natural resources.” The secretary assured listeners that although operations to secure oil and boost the local economy will continue; “…the area can continue to be the sportsman’s paradise…” it’s known for – promoting activities like hunting, fishing and bird watching.

To ensure the prized resources don’t disappear, DNR will funnel nearly $91 million in stimulus funds to the state, a large portion of which will be used by the State Energy Office. Some project details aren’t clear, but LeBlanc touted a line of rebates that would encourage local businesses and homeowners to retrofit their establishments to become more energy efficient. That means doing things like replacing windows, upgrading heating and air units and fixing drafty doors.

According to LeBlanc, homeowners could receive up to $3,000 in cash for updating an existing home. Business owners could grab $5,000 and those building a new home could get an additional $3,000. The secretary said $15 million would be pipelined into the rebate program.

The state’s energy office typically gets about $500,000 a year, which it invests into alternative energy projects and renewable resource programs. This year, stimulus funds will provide a boost. “This is really a shot in the arm,” explained the secretary.

In the next two months, DNR hopes to go full steam ahead. Consumers looking for new appliances might want to hold out. LeBlanc said $4.2 million was awarded to DNR to promote Energy Star appliances, which use less energy and save owners money. The funds will come from the American Recovery and Reinvestment Act and will be part of the stimulus package.

However, LeBlanc noted DNR will delve into it’s own piggy bank, upping the amount of rebates available from $4.2 million to $6.8 million. She believes the program will provide incentives to consumers looking to save and businesses hoping to sell.

The list of appliances shoppers can choose from looks more like a multi-family grocery list: washers, dishwashers, refrigerators, freezers, water heaters and more. Rebates will range from $75 to $500 and will be sent to customers via a third party contractor, not DNR. “That way, people won’t be waiting for their checks,” explained the secretary.

“A lot of these programs are beyond the resources we have at DNR,” she added. So the department hired contractors to help roll out the programs and insure funds are used appropriately and properly. “We didn’t have to hire a single employee. It’s not our aim to grow the government, but to maximize the use of stimulus money.”

Also on the list is $13.8 million in Energy Efficiency and Conservation Block Grants (EECBG), which will be allocated to parishes to improve energy efficiency in the building and transportation sectors, including reducing fossil fuel emissions and the amount of energy local entities use.

For local parishes, it’s a win-win.

“There’s absolutely no match for municipalities. They can basically get approval for a project and go do it,” said LeBlanc, meaning parishes won’t have to dip into their savings to “clean up” their act.

More than a quarter of the nation’s oil and gas come from Louisiana. “It’s about who we are. It’s a part of us,” touted the secretary. The state is also first in OCS oil and natural gas production. There’s about a $70 billion a year impact on the region from those industries.

State Department of Natural Resources Deputy Secretary Lori LeBlanc talks with Bayou Industrial Group member Roy Sternfels following a presentation on the importance of oil and gas in the region. * Photo by BRETT SCHWEINBERG