Editor’s note: This is a guest opinion column penned by LSU President William Tate. The viewpoints expressed in this column are those of the author and do not necessarily reflect those of 10/12 Industry Report or its staff.
Louisiana sits at the epicenter of America’s energy economy. From offshore drilling to grid resilience, our state’s ingenuity and infrastructure help power the nation. At LSU, energy research is a central pillar of our mission—one that fuels job creation, safeguards the environment, and secures Louisiana’s role as a leader in the energy market.
But the momentum we’ve built is now at risk. Energy is Louisiana’s legacy and LSU’s future, yet sustaining progress in this vital sector requires protecting the resources that drive discovery and innovation. That means research. Proposed changes to the U.S. Department of Energy’s reimbursement policies threaten to undercut that foundation. These costs cover behind-the-scenes expenses—like facilities, electricity, and support staff—that allow universities to conduct research. By capping university reimbursement these mandatory expenses at a flat 15%, especially after contracts have been issued and work has commenced, the infrastructure essential to energy innovation is not only compromised … it’s in extreme jeopardy. What may appear to be a bureaucratic adjustment is a direct threat to the research engine that powers our economy.
LSU energy research supports breakthroughs in everything from petrochemical innovation, battery materials to energy storage and clean fuels. These discoveries don’t stay in the lab—they shape federal energy policy, attract local industry partnerships, and train the next generation of workers in Louisiana’s most vital economic sector. Our research enterprise, with a Compound Annual Growth Rate (CAGR) from 2021 to 2024 of 14.5% per year, seeks to anchor one of the most consequential economic transformations in state history.
Our energy research supports local industry and protects the state’s future. Changing reimbursement status after grants are awarded pulls the rug out from under researchers who have committed to work for the good of America, undermining a funding system built to ensure our stability as a nation. This disruption not only weakens the discovery process—it threatens America’s competitiveness and the economic progress that research makes possible. We can’t afford to slow down. Energy is one of the five focus areas of LSU’s Scholarship First agenda. We partner with the U.S. Department of Energy, major utilities, and startup firms alike, conducting research from the lab bench to the levee. And most importantly, we do it in service to Louisiana.
LSU’s path forward is clear: invest, compete, and lead. Just as I argued on behalf of biomedicine and coastal science, we must protect the funding model that sustains discovery related to energy. If federal agencies follow through with across-the-board reductions that limit our ability to contribute to our state’s economic stability, we chip away at our capacity to innovate.
