Responding to public pressure, Republican Louisiana Gov. Jeff Landry issued a moratorium on new applications for wells meant to store carbon dioxide (CO2) from industry.
The order signed Wednesday requires state agencies to “suspend review of any new” applications for underground CO2 storage wells meant to keep the climate-warming gas out of the atmosphere.
Louisiana has received dozens of applications to operate these wells, drawing concern from residents across the political spectrum about their potential to leak, taxpayer subsidies for CO2 capture, property rights, and other issues.
Landry’s order gives the state’s Department of Conservation and Energy 45 days to review the status of CO2 well applications and create a priority list. It lays out a list of existing regulations that companies must adhere to before the department issues a permit and requires the department to document in writing “all relevant local government concerns and demonstrate how these comments were taken into account in the permitting decision.”
The governor’s order drew immediate criticism from industry groups, including the Louisiana Chemical Association and Louisiana Association of Business and Industry.