USA – LOUISIANA Trends and Developments Contributed by: Jeffrey P Good and Susan M Tyler, Jones Walker LLP
Climate resilience and real estate Climate resilience initiatives continue to shape Louisiana’s real estate landscape, creating both opportunities and challenges for development. Coastal restoration Federal and state funding, including allocations from the Infrastructure Investment and Jobs Act, supports projects to restore or expand natu - ral infrastructure such as wetlands and barrier islands. These initiatives offer funding through the National Oceanic and Atmospheric Adminis - tration (NOAA) National Coastal Resilience Fund for projects that can reduce storm impacts while potentially creating new real estate opportunities in protected areas. Flood mitigation requirements Flood risk assessment and mitigation increas - ingly influence development requirements and property values. Projects must navigate complex regulatory frameworks while addressing actual and perceived flood risks. The Louisiana Water - shed Initiative continues to promote regional approaches to flood risk reduction, potentially affecting development patterns and require - ments (Redfin). Climate Action Plan implementation Louisiana’s Climate Action Plan aims to achieve net-zero greenhouse gas emissions by mid-cen - tury, with potential implications for real estate development patterns and requirements. The plan recognises the role of natural lands in car - bon sequestration, creating potential value for previously marginal properties with high carbon storage potential.
dale palm oil facility, making it one of the largest in the USA, RNGD’s headquarters in Jefferson Parish, consolidating manufacturing opera - tions and corporate functions, S&W Wholesale Foods’ expansion in Hammond, and Mid South Extrusion’s investment in new equipment at its Ouachita Parish facility. These investments reflect continued industrial growth, creating demand for supporting real estate assets and services. Carbon sequestration: opportunities and legal challenges Carbon capture and sequestration (CCS) rep - resents both a significant opportunity and a legal challenge for Louisiana real estate. With numerous CCS projects planned or proposed in the state, this emerging industry has substan - tial implications for property rights, regulatory compliance and investment. Louisiana’s exist - ing legal framework establishes processes for obtaining pore-space, salt dome and other ancil - lary rights relating to carbon sequestration. In addition, the state has received primary authority from the Environmental Protection Agency (EPA) to administer class VI wells for CO₂ injection, potentially streamlining the permitting process. However, recent developments indicate growing political and legal challenges. In addition, local governments are increasingly seeking greater revenue shares from CCS projects. Current state law allocates a portion of revenue gener - ated from CCS projects on state land to parish governments where projects are located. Legis - lative efforts to increase this allocation continue, with parish officials citing infrastructure needs stemming from industrial activity.
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