Louisiana advances wood pellet manufacturing bill to boost jobs, exports

Louisiana’s legislature cleared HB 670 unanimously in May, advancing a plan to make the state a bigger hub for wood pellet manufacturing by streamlining permitting, building out workforce training and improving port-linked export logistics. The measure moved through the Louisiana House of Representatives on May 13, then passed the Louisiana Senate on May 27 before being sent to Gov. Jeff Landry on May 29.

The bill’s findings cast wood pellet manufacturing as a strategic fit for Louisiana because it leans on the state’s forest resources, deepwater ports and demand for biomass fuel. Lawmakers said the industry creates high-quality jobs in rural communities, supports the forestry sector and diversifies the economy, while positioning Louisiana to capture a share of the growing international market for biomass fuel.

HB 670 was reshaped before final passage. The original version would have directed Louisiana Economic Development to designate wood pellet manufacturing as a priority industry and write rules to spur development. The reengrossed bill instead lets LED support the recruitment, retention and expansion of wood pellet manufacturing facilities within existing authority and subject to available funds. It also allows the agency to develop policies, guidance or program criteria, including job-creation incentives, workforce training initiatives, coordination with ports on infrastructure needs, site-readiness criteria and clearer regulatory pathways.

The Senate Committee on Commerce, Consumer Protection and International Affairs reported the bill favorably without objection on May 13, the same day the House approved it unanimously. Legislative materials and the fiscal note said the approach was meant to work inside existing statutory authority rather than launch a large new standalone program. That design matters for the biomass sector, where developers often want faster permitting and better port logistics without waiting for a new state program to be built from scratch.

The bill also defines wood pellet manufacturing broadly, covering compressed biomass pellets made from forestry biomass and residues, including forest and agriculture residues, thinnings and storm-damaged residues for export or domestic use. That definition ties the policy to feedstock streams already embedded in Louisiana’s forestry and biomass supply chain.

The political message is clear: Louisiana is backing biomass manufacturing as an industrial strategy, not just as a raw-material play. But the emphasis on maintaining environmental safeguards signals that lawmakers are also aware of the scrutiny that has followed the state’s existing pellet sector. Drax Global previously disclosed that its Louisiana wood pellet plants emitted hazardous air pollutants above permitted limits, a record that will keep regulators, communities and industry watchers focused on how aggressively the state pushes new development.