DES MOINES -- The top Republican in the Iowa House called on Gov. Chet Culver Tuesday to end the state's environmental scrutiny of an oil refinery planned in neighboring South Dakota.
The GOP leader, Rep. Kraig Paulsen, R-Hiawatha, said Iowa Department of Natural Resources director Richard Leopold, in the form of letters and potential lawsuits has "thrown up roadblocks" that threaten the Hyperion Energy Center.
The 400,000-barrel-per day refinery and power plant would be built in rural Union County, S.D., about a half-hour drive north of Sioux City.
Paulsen noted the $10 billion project would create thousands of new jobs, many of which would spill over into the Sioux City area. More than 1,450 local workers lost their jobs this spring when John Morrell closed its pork plant, he noted.
"I'm calling on the governor to order Leopold to stand down and stop preventing new jobs for Iowans," Paulsen said in a statement.
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Culver's office shot back at Paulsen late Tuesday afternoon.
"We just wish Rep. Paulsen was as concerned with job creation in Iowa and his own legislative district as he is with job creation in South Dakota," Culver spokeswoman Polly Carver-Kimm said in an email. "Rep. Paulsen has tried to kill more than 7,000 new jobs the i-JOBS program has created this year in Iowa."
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At Culver's urging, the Democratically-controlled Legislature pushed through $800 million in bonding for flood repairs and other infrastructure work.
Culver also defended Leopold's actions regarding Hyperion, saying the director is "helping us protect the enviroment and create jobs with dozens of water quality projects the DNR is working on with I-JOBS funds statewide."
Earlier this month, Leopold, appointed by the Democrat governor after he took office in 2007, formally asked for an environmental impact statement for the refinery.
"While the effects of Hyperion Energy Center on Iowa may or may not be significant, verification by both Iowa and the federal government is important," Leopold said in letter addressed to Steve Pirner, secretary of the South Dakota Department of Environment and Natural Resources.
The S.D. DENR has not yet responded to Leopold's letter.
In an earlier interview with the Journal, Leopold expressed concern that emissions from the refinery could cause pollution in western Iowa, and limit future industrial growth in Sioux City.
Paulsen pointed out the South Dakota DENR approved an air quality permit for the energy center.
Opponents, including the Sierra Club and two local groups, went to court to overturn the decision. In June, a judge put the appeal on hold after granting Hyperion's request to return the permitting process to the state Board of Minerals and Environment.
Hyperion said it intends to amend its application to include new rules implemented by the EPA since the permit was granted.
