New hydrocracker unit would be built with the $300 million
Valero Energy's St. Charles Refinery got St. Charles Parish's endorsement for $300 million in Gulf Opportunity Zone bonds to build a new hydrocracker unit at the Norco plant.
View full sizeValero EnergyâÂÂs St. Charles Refinery in Norco was photographed in November 2007. The project would cost $1.4 billion and could be on line by the end of 2013, company officials said.
The federal GO Zone program, approved in the wake of Hurricanes Katrina and Rita, provides accelerated tax depreciation, allowing the company to reduce its tax burden in return for investing in areas affected by the two storms.
The program expires at the end of this year.
The Parish Council vote on Monday clears the way for the company to seek approval from the state Bond Commission for the project.
The company will make a decision on whether to use the money by Dec. 8 and has yet to give the project a formal green light.
"It comes at a good time," parish Economic Development Director Corey Faucheux said Monday. "Not only will it increase our tax base, it will create construction jobs."
A hydrocracker uses heat, pressure and catalyst to extract fuel from vacuum gas, a byproduct of the refining process. It produces gasoline and diesel fuel.
Valero spokeswoman Taryn Miller said the project wouldn't increase refinery's capacity of 250,000 barrels of oil per day, but would increase its refining capacity enough to transform all of the gas that is created into fuel. The refinery currently sells the additional gas to other refineries as feedstock.
The parish's approval was needed so the company can go before the state Bond Commission, which will consider the request on Thursday.
The parish will not be liable for repaying the bonds, although the company will be allowed to take advantage of the parish's ability to issue tax-free bonds.
In other action, the council approved a measure designed to provide more supervision of animals other than pets in residential and commercial areas.
The measure allows the parish government to set stipulations for keeping those types of animals, including chickens, pigs and horses. Those stipulations include setting requirements for the size of enclosure.
The rules also require the applicant get the signatures of neighbors before becoming eligible to keep the livestock.
Councilman Paul Hogan made several attempts to amend the portion of the ordinance to include a sunset provision that would require the owner to get signatures again every five years.
Another unsuccessful proposed amendment would have put a prominent notice on the petition saying that permission could not be revoked.
Hogan said residents in his district have been asking him to find a way to remove neighbors' animals that have become a nuisance.
"Just tell the people never to sign one of those petitions because once those animals are there, they are there forever," he said. "Their only option is to sell their house and move away."
Matt Scallan can be reached at mscallan@timespicayune.com or 985.652.0953.