Appropriations panel reviews Energy and Natural Resources FY26 budget, flags IIJA timing and offshore-wind roadmap cuts

Paige Filia, a House Fiscal analyst, presented the Department of Energy and Natural Resources’ FY26 budget review to the House Committee on Appropriations on April 1, 2025, outlining sources of funding and recent changes.

The department’s largest funding source is federal money; Filia told the committee federal funds account for the single largest share (she cited $115,500,000), followed by statutory dedications ($48,300,000) and reductions to general fund authority ($10,900,000). Filia said the department will show a net federal funding decrease of about $14,800,000 in FY26 tied to delayed IIJA grants.

Why it matters: federal grants and one‑time receipts have driven recent budget volatility. Committee members pressed the department on how timing and federal priorities affect what the state can spend in FY26 and on which projects remain active.

Deputy Secretary Dustin Davidson said the department is adjusting travel and staffing approaches to control costs. “What we've been able to do is partner with LED,” Davidson said, describing a shift that reduced the need for some travel by coordinating staff assignments with Louisiana Economic Development and by continuing field inspections of remote sites.

Members also questioned professional‑services cuts and project carryforwards. Filia told lawmakers the department expects an overall budget decrease of about 11.3 percent compared with the FY25 existing operating budget; the professional‑services category showed a large reduction driven in part by removal of one‑time funding, including $6,300,000 tied to Salt Cavern collapse response funding and a $10,000,000 reduction in “other charges” because of delayed federal receipts.

On offshore wind, Representative Zareff asked about a $3,200,000 reduction tied to the offshore‑wind roadmap. Secretary Tyler Gray (present at the hearing) and Davidson said the road map effort continues but that some federal activity has slowed; the department described the program as lower priority for immediate funding given long lead times for offshore projects and shifting federal signals, but said planning and meetings continue.

On carbon storage, Representative DeWitt asked about a $2,800,000 reduction to the carbon geologic storage trust fund. Davidson said that the trust fund is paid by fees collected from operators and applicants and that, while the Legislature once front‑funded management, the program now collects fees to sustain activity.

Committee members pressed department officials on vacancy levels (Filia reported 37 vacancies as of Dec. 30, 2024), consolidation efforts and how internal reorganization is intended to improve efficiency before requesting additional funds. Gray said reorganization focused on reducing management layers and reallocating subject‑matter expertise inside the department.

The hearing produced no formal votes. Members and staff agreed to supply follow‑up answers to some line‑item questions requested during Q&A.