Business leaders criticize Landry moratorium on future carbon capture projects across Louisiana
BATON ROUGE — Gov. Jeff Landry has halted new applications for carbon capture projects in the state.
Prompting backlash from industry leaders who have already invested billions of dollars in projects that target climate change.
The executive order released on Wednesday says the pause will ensure that the applications for proposed projects follow state guidelines pertaining to carbon dioxide pipelines and carbon injection.
It goes on to state that no permit will be issued unless regulations and orders are followed sufficiently by the applicant.
Some of those rules and regulations address well control procedures, emergency operation plans, and data collection and monitoring.
Will Green, President and CEO of the Louisiana Association of Business and Industry, says these new hurdles create uncertainties.
"And uncertainties send a message to the businesses that are in the pipeline, the projects that are in the pipeline that really send a chilling effect and a negative message, and so this is disappointing," he said.
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Landry imposed the moratorium saying he wants the state to provide a "clear road map" for projects designed to sequester greenhouse gases. Emissions are considered a prime source of global warming, and scientists say that storing carbon below ground could address the problem.
The Louisiana Chemical Association says its members have already spent $60 billion on projects and that stopping work at this point is counter-intuitive. The Environmental Protection Agency last year allowed the state to approve or disapprove carbon capture projects within its border.
"A pause on applications, regardless of the reasoning, signals uncertainty for projects that enable lower-emissions production, support thousands of high-wage jobs and encourage future reinvestment," LCA President David Cresson said.
Likewise, the Louisiana Association of Business and Industry said Landry's move threatened to harm Louisiana's position at the forefront of carbon capture technology.
"Inserting any manner of regulatory tape, hurdles, uncertainty, unpredictability, changing the rules after the game has started will send these types of projects out of state to states like Texas, we cannot give up the ground that we've gained in Louisiana," Green said.
Dean Coates, a councilman in Livingston, has shared his opposition of Carbon Sequestration projects in Livingston Parish, like the one on Lake Maurepas.
"I'm optimistic that the governors trying to do the right thing, that he is listening to the people, and I hope that that is the case," Coates said.
Coates says he would like for each individual parish to have the authority to make the decision to allow carbon sequestration projects.
"I think that would be great for the governor to do and hopefully he is behind us on doing that," he said.
Landry has not said how long this executive order will be in effect.
"These are billions of dollars in projects with thousands of jobs on the line and when you have states like Texas that are begging for projects like this, it really creates a difficult regulatory scheme here in Louisiana," Green said.