Senate Commerce Committee advances bill to promote wood-pellet plants after debate over pollution and forest management

The Louisiana Senate Commerce Committee on May 13 advanced House Bill 670, a measure from Representative Owen intended to promote wood-pellet manufacturing in the state, after extended testimony from industry representatives and environmental advocates.

Representative Owen said the bill is intended to help develop manufacturing in areas with suitable soil and timber resources and to spur local economic activity. Industry witness Jeff Sanders of Sanders Forest Services Inc. told the committee his firm plans modular pellet facilities with the first production line becoming operational in about six to eight months if permitting proceeds on schedule. Sanders estimated capital costs of roughly $150 million to $180 million per facility, in-plant employment of about 68 workers (not including loggers and truck drivers), and potential annual output in the range of 750,000 to 1,000,000 tons per plant. "We're not asking for financial help, but more help to clear the road so we can explore these paths," Sanders said.

Environmental concerns were raised during public comment. Naya Black, Gulf South organizer for Dogwood Alliance, urged the committee to oppose HB 670, saying biomass plants have harmed communities in other states. "Biomass companies present themselves as clean energy companies, but in reality they cut down forests, process them into wood pellets, and ship them overseas to be burned for European energy," Black said, and she cited fines and permitting problems at specific facilities as part of her testimony. Black warned that communities have experienced health and noise impacts and cited what she said were enforcement actions at a Drax facility.

Committee members pressed witnesses on permitting, corrective actions and whether modern manufacturing processes would reduce emissions. Sanders said his planned facilities would operate indoors and that the company intends to use technologies he described as direct air capture and to capture and utilize emissions, but he said he did not plan geological carbon storage. Senators asked that the state Department of Environmental Quality (DEQ) be consulted to review permitting and community impacts before the bill goes to the full Senate.

Senator Abraham moved to report HB 670 favorably; the motion was adopted "without objection," and the committee directed that sponsors meet with DEQ to address environmental and permitting questions before floor consideration. The committee record shows no roll-call vote; the bill was reported favorably by general consent.

What's next: The bill was reported favorably out of committee and may be amended on the floor; sponsors agreed to consult DEQ and consider technical amendments to address environmental and permitting concerns.

Clarifying details: Sponsor-provided figures (Sanders): capital cost $150–180 million per plant; in-plant employees ~68 each; per-plant annual output 750,000–1,000,000 tons; timeline 6–8 months for first production line (subject to permits). These figures were presented by the industry witness and not independently verified by the committee at the hearing.