States redefining what is clean energy

By EPN staff

Louisiana Gov. Jeff Landry recently signed a law redefining natural gas, a traditional fossil fuel, as a form of “green energy.”

The law mandates that state agencies and utility regulators prioritize natural gas, alongside nuclear energy, to improve affordability and grid reliability.

Louisiana’s move follows a growing trend: Indiana, Ohio and Tennessee have also reclassified natural gas as “green energy,” while Colorado has similarly added nuclear power to its statutory definition of clean energy.

Why it matters

By altering what counts as “clean” or “green,” states can steer public funds, incentives and policy priorities toward energy sources that might otherwise be excluded from clean energy programs.

Louisiana’s new law sets a precedent that may influence both public perception and investment, raising concerns among climate and clean energy advocates that the redefinition amounts to “greenwashing” and risks diverting funds from renewable sources.

Critics argue such redefinitions risk undermining efforts to shift toward sustainable renewable energy, while proponents cite grid reliability and affordability concerns as justification.

While there is no single federal definition for clean or green energy, natural gas is a “relatively clean-burning fossil fuel,” according to the U.S. Energy Information Administration.

The bigger picture

Reclassification of energy sources is not limited to Louisiana. Several states are advancing similar legislative strategies:

• Indiana, Ohio, Tennessee – These Republican-led states have passed laws redefining natural gas as “green energy,” following Louisiana’s lead.
• Colorado – Lawmakers in Democratic-led Colorado passed a bipartisan bill (HB 25-1040) that legally classifies nuclear energy as a “clean energy resource,” making it eligible for clean energy financing programs, even though nuclear had been excluded from other clean energy definitions.
• New York – The state has directed the Power Authority to build a zero-emission nuclear plant to support its renewable and net-zero targets, signaling institutional validation of nuclear as “clean” energy.
• Texas – Lawmakers approved a $350 million grant program to attract advanced nuclear projects and created a state nuclear energy office, reinforcing nuclear development as part of the clean energy transition.
• Utah – Historically, Utah has included nuclear in definitions of “renewable energy,” reflecting an ongoing exception to typical statutory language.

Additional details

These laws operate at the intersection of energy policy, public funding and climate strategy.

By redefining natural gas or nuclear as “green” or “clean,” states may unlock new incentives, grant eligibility and regulatory pathways for these energy sources.

This could influence investor behavior, energy market mix and long-term decarbonization trajectories.