Two years ago, an ammonia manufacturer built a $26 million, natural-gas powered boiler on Cornerstone Chemical Company’s property in Waggaman without obtaining state or local permits.
Neighbors expressed outrage and distrust, and local elected officials called the move “extremely disturbing.” In Jefferson Parish Council hearings, Cornerstone apologized to the public.
But when the time came for the parish to take punitive action against Cornerstone or its tenant, Dyno Nobel, it couldn’t levy a fine of more than $500 because of a little-known state law restricting the maximum penalties for violations of Jefferson Parish ordinances.
Jefferson Parish successfully lobbied the Legislature in 2024 to repeal the law. On Wednesday, the Parish Council will formalize new rules that dramatically increase fines for industrial properties that violate parish ordinances — up to $25,000 for the first offense, and up to $50,000 for subsequent offenses.
“If you’re going to build a $20 million generator … what do you care about $500?” said Council member Deano Bonano, who spearheaded the new fines. “What this (does) is put more significant fines in place to get industrial companies to do the right thing.”
Jefferson Parish Council member Deano Bonano speaks during an inauguration ceremony for the elected officials of Jefferson Parish at the Jefferson Performing Arts Center in Metairie on Wednesday, January 3, 2024.
The new rules also increase the maximum penalty for non-industrial properties, including residential homes, from $500 to $1,000 and/or imprisonment of up to six months.
A judge may also choose to fine the maximum penalty for each day that a violation takes place, according to Bonano.
In a statement, Shawn Ward, Cornerstone’s corporate health, safety, security, environmental and sustainability director, said the company strides to comply with industry standards and regulatory requirements.
“… Our priority is always the safety and security of our employees, contractors, the community, and the environment in which we operate,” Ward said in the statement. “We take compliance seriously and we work daily to assure we meet or exceed all applicable requirements and regulations set forth.”
Dyno Nobel sold its ammonia plant at Cornerstone in December 2023 and no longer operates there.
Overhaul of industrial regulations
The new fines were made possible through a 2024 law sponsored by state Rep. Debbie Villio, R-Kenner.
Villio’s original bill would have allowed the parish to decide its own fine limits; however, state chemical lobbying groups negotiated the addition of $25,000 and $50,000 limits for chemical companies, according to Bonano.
Jerry Bologna, executive director of the Jefferson Parish Economic Development Commission, said the penalty caps are “commensurate with typical violations that an industrial company would find themselves in” elsewhere. He added that he supported the new penalties as currently written.
“From our perspective, yes we want to be conducive to business, but we want our operators in Jefferson to operate cleanly and effectively,” Bologna said.
The new penalties are the latest in an overhaul of Jefferson Parish industrial regulations that Bonano has taken on during his council tenure.
Last year, the council unanimously approved a series of changes to the parish’s zoning rules for new industrial properties, including odor control plans, a 24-hour staffed hotline and buffer zones between the hazardous materials and residential areas.
The measures came in a last-minute compromise following deep negotiations between the parish, industrial leaders and business interest groups, including redline edits to draft legislation made by Cornerstone.
Ward said Cornerstone did not participate in any conversations with Bonano or Villio regarding the proposed fines.
Bonano does not represent Waggaman, where Cornerstone is located, but does represent surrounding parts of Avondale and Bridge City, as well as River Ridge and Harahan across the Mississippi River.
Byron Lee of District 3 represents Waggaman and the Cornerstone property.
