Louisiana is “Open for Business,” but Projects Need to Proceed Carefully

On December 10, 2024, President-elect Donald Trump promised expedited permitting for energy and other construction projects worth more than $1 billion. While there have been no details of how this would practically look, it reflects the incoming administration’s focus on promoting industrial growth. This may make permitting on the federal level a quicker and easier process for industrial projects.

This is especially so in Louisiana, where the current state administration is also trying to attract and retain energy and industrial projects. For example, the Louisiana Department of Environmental Quality has suggested providing an even faster permit review process (dubbed “Super Duper Fast” permitting) for projects supported by Louisiana Economic Development. This could lead to quicker government engagement and support for such projects at both the state and federal levels.

Moreover, administration changes are likely to be magnified by court decisions in the coming year. While environmental assessments are required under the National Environmental Policy Act (“NEPA”), the exact limits and process for doing so may be changed by upcoming court decisions. The United State Supreme Court is poised to better define the boundaries of what must be considered in a NEPA assessment, and the DC Circuit Court of Appeals has suggested that the overarching NEPA regulations, promulgated by the Council on Environmental Quality, cannot be binding on how other federal agencies implement NEPA.

Much remains to be seen regarding how this will play out on the ground level, and we will be carefully monitoring policy and regulatory developments. While these reforms could result in a swifter permitting process, what will not change are the standards for judicial review of these permitting decisions. Proposed projects will still need to satisfy the legal requirements for industrial permitting, perhaps especially if the state and federal agencies fast track such decisions. Permittees must prioritize having complete and defensible decision records for any issued permits because the change in priorities at the federal level is expected to increase permit challenges from non-government organizations and judicial scrutiny of those decisions remains rigorous.

For assistance in project development and permitting, please contact Lou Buatt, Greg Johnson, Clare Bienvenu and Emily von Qualen and follow along Liskow’s The Louisiana Industrial Insights Hub for regular updates in the industrial project development landscape in Louisiana.