LCDA Approves .1 Billion In Revenue Bonds To Fund LGF Project

LCDA Approves $1.1 Billion In Revenue Bonds To Fund LGF Project

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The LCDA is a statewide income bond issuer and is authorized to issue bonds to finance economic development, industrial and manufacturing facilities, and a variety of projects on behalf of local government agencies in the state of Louisiana. Although the state of Louisiana authorizes the issuance of the bonds, they are not guaranteed by the state or the LCDA, nor are they involved taxpayers’ money. To date, Strategic Biofuels has received a total of $450 million in bond allocations, $200 million for 2020 and $250 million for 2021. The company expects to receive substantial additional allocations over the next two years.

“We are excited to be a part of this important transaction because of the economic impact it will have in Caldwell Parish and throughout northeastern Louisiana,” said Ty E. Carlos, executive director of the LCDA.

The increased bond cap approval complements the positive financial impact on the LGF project from the recent Inflation Reduction Act. Specifically, the law increased the 45Q sequestration tax credit from $50 to $85 per ton of CO2 for the approximately 1.4 million tons of CO2 per year are expected to be sequestered. This will contribute to project revenue from the sale of the 32 million gallons of renewable fuel, credits under the Federal Renewable Fuel Standard (RINs), credits under the California Low Carbon Fuels Standard (LCFS), and applicable Federal Blender’s Tax Credits (BTC) or Production Tax Credits (PTC). These revenue streams provide the deeply carbon negative project with an exceptionally robust economy.

“The LCDA’s mission is to help municipalities, 501c3 and private entities, such as Louisiana Green Fuels, issue bonds for the construction of economic development projects, infrastructure and environmental facilities. This project fits in perfectly with our mission,” said David Rabalais, LCDA Executive Committee Chairman.

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