No deal on Eyota plant ... yet, MPCA panel tells ethanol firm

Foes fear impact on groundwater and noise near Eyota. Proponents say the facility would benefit local farmers.

By TOM MEERSMAN, Star Tribune

Last update: October 29, 2008 - 12:56 AM

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A controversial ethanol plant proposed for southeastern Minnesota will likely require more study, according to a decision Tuesday by the Minnesota Pollution Control Agency Citizens' Board.

The panel voted unanimously to postpone a final decision on the question until next month. At stake is whether MinnErgy, the firm that proposed the $133 million plant, will need to conduct an environmental impact study that would delay the project for at least six months and cost $150,000 or more.

Board members said they wanted more information from longer pump tests to determine whether the project would consume too much groundwater, how its discharge would affect a nearby creek and whether its operation might contaminate deeper, cleaner water supplies.

About 75 people packed the MPCA board room in St. Paul for the entire day, and authorities heard more than four hours of testimony against the project. In addition to concerns about polluting underground water and reducing groundwater that feeds nearby rivers, opponents said they were also worried about air pollution, traffic and noise if the 55-million-gallon ethanol plant is built.

Many of them were residents of Eyota, a city of about 1,900 that is within a half-mile of the proposed plant and 10 miles east of Rochester.

MinnErgy president and CEO Ron Scherbring and several company board members testified that the plant would benefit local corn growers and the area's economy, and that a second phase of the project is planned to increase its capacity to 75 million gallons of ethanol.

Scherbring said MinnErgy is committed to building a state-of-the-art facility that would go above and beyond all environmental requirements. He disagreed that more environmental study is needed.

The company has already spent about $2 million on consultants and studies during the past two and a half years, he said.

Tom Meersman • 612-673-7388