building an ethanol plant

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State of Illinois Rod R. Blagojevich, Governor A Guide to Permit Requirements, Funding Opportunities, and Other Considerations Department of Commerce & Economic Opportunity Jack Lavin, Director Illinois Environmental Protection Agency Douglas P. Scott, Director

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Page 1: Building an Ethanol Plant

SSttaattee ooff IIlllliinnooiissRod R. Blagojevich, Governor

A Guide to Permit Requirements, FundingOpportunities, and Other Considerations

Department of Commerce& Economic OpportunityJack Lavin, Director

Illinois EnvironmentalProtection AgencyDouglas P. Scott, Director

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Table of Contents

I. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

II. Environmental Controls and Permits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Air Pollution Controls and Permits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Water Pollution Controls and Permits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

III. State Resources Available for Ethanol Plants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Department of Commerce and Economic Opportunity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Illinois Department of Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Other State Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

IV. Site/Location Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Summary of Site/Location Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Brownfield Siting Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Using Landfill Gas as Alternative Energy Source . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

V. Illinois Maps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Major Sand and Gravel Aquifers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Major Bedrock Aquifers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Industrial and Commercial Groundwater Pumpage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Community Well Pumpage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Combined Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Illinois Natural Gas Pipelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Illinois Rail Transportation Routes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Appendix A - Federal, State, and Local Permits That May Be Required . . . . . . . . . . . . . . . . 19 Appendix B - Grants and Funding Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Appendix C - Best Practices for Ethanol Plants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

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I. INTRODUCTION

Ethanol’s benefits are well documented: it is renewable,reduces dependence on foreign oil, supports the agricul-tural economy, provides a net reduction in green housegases, and is cleaner-burning for carbon monoxide,particulates and air toxins compared to typical gasoline.

Six ethanol fuel plants are operating in the State ofIllinois, with a total capacity of over 800 million gallonsper year of ethanol. Ethanol production is expected tosignificantly ramp up because at least 16 states, includingCalifornia, Illinois, and Connecticut, have adopted banson the use of the fuel additive MTBE, which is beingreplaced by ethanol. In August of 2005, President Bushsigned into law a Renewable Fuels Standard that isexpected to double ethanol production and use by 2012.

To meet this increasing demand, the State of Illinoiswants to help companies build new fuel ethanol plantsthat are energy efficient, environmentally sound, and ofcourse profitable. With this in mind, the IllinoisEnvironmental Protection Agency (Illinois EPA) andthe Department of Commerce and EconomicOpportunity (DCEO) have developed Building anEthanol Plant in Illinois.

Anyone interested in building a fuel ethanol plant isencouraged to seek assistance from environmental profes-sionals who have experience with ethanol plant designand permitting. When you are ready to move forward,please schedule a meeting with Illinois EPA and DCEOto learn more about permitting issues and financialincentives that are available. Contact Illinois EPA at217-558-6818 or DCEO at 217-785-3969.

II. ENVIRONMENTALCONTROLS AND PERMITS

This chapter focuses on the most common air and waterpollution controls and permits that may be required foran ethanol plant in Illinois. Appendix A includes acomplete list of air, water and land permits that may berequired to build and operate an ethanol plant.However, for most plants, only a few of these permitswill be necessary.

In order to enhance energy efficiency while reducing anethanol plant’s “environmental footprint,” we encouragecompanies to use environmental best practices forethanol plants. A summary of these practices can befound in Appendix C.

AIR POLLUTION CONTROLS AND PERMITS

In general, companies should consider the most effectivecontrols that are available at the time the plant isdeveloped, based on guarantees from the contractors.At a minimum, for the principal process operations,consider the use of an afterburner or combustion typecontrol system for feed dryers and a high efficiencyscrubber(s) for fermentation. Other routine controlmeasures include internal floating roofs for storage tanksand the use of good work practices to minimize dust andabate odors. In addition to pollution controlefficiencies, companies should also assess reliabilityand durability.

Ethanol plants must first get an air pollution construc-tion permit before getting an operating permit. Theconstruction permit establishes, among other things,emission limits for individual pollutants, productionlimitations, stack testing and underlying record keeping,reporting and monitoring requirements. Plants canopen with only an approved construction permit, butan operating permit is needed for long-term operation.

Companies must submit a construction permit applica-tion that includes, but is not limited to, a generaldescription of the proposed plant, emission units and airpollution control equipment, and detailed informationon the uncontrolled and controlled emissions generatedby all emission units, including wet cake, emergencyengines and methanators. Applicants must cite all appli-cable emissions standards and control requirements thatapply, and indicate how emissions will be minimized toprevent an air pollution nuisance such as odors or dust.

When a complete construction permit application hasbeen submitted to the Illinois EPA, the Illinois EPA hasup to 180 days to process the application. A construc-tion permit fee is required upon submittal of the applica-tion. Expect a fee of at least $40,000. When the IllinoisEPA has approved a draft construction permit, publicnotice must be provided with the possibility of a publichearing if it is requested.

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“Major” sources of air pollution have emissions overcertain thresholds, specifically 100 tons/year for volatileorganic compounds and 10 tons/year for a singlehazardous air pollutant, like acetaldehyde, and aresubject to more stringent and complex air pollution con-trol requirements. As a result, ethanol plants in Illinoishave attempted to keep emissions below these thresholds.

Ethanol plants with a design production rate significant-ly greater than 60 million gallons per year are more likelyto be “major” sources of air emissions. Constructing anethanol plant anywhere in or near the Chicago or MetroEast St. Louis areas will also trigger more stringentemissions rules. In either of these cases, the applicantwill be required to install very stringent control measures(e.g., best available control technology or lowestachievable emission rate, air quality modeling andpossibly the acquisition of offsets).

The construction permit will specify initial testing thatmust be performed to ensure compliance to the emissionlimitations established within the permit. This will berequired as a precondition for future long-termoperation. Only when the stack test verifies that emis-sion limits were met can an operating permit applicationbe submitted. Once Illinois EPA issues the operatingpermit, a renewal application won’t be required forfive years.

To learn how existing ethanol plants are controlling airemissions, review their air pollution construction permitsat www.epa.state.il.us/air/permits/. All necessary airpollution permit application forms are available from theIllinois EPA website at www.epa.state.il.us/air/state-forms/. For further information, contact Illinois EPA’sAir Pollution Permitting program at 217-782-2113.

WATER POLLUTION CONTROLS AND PERMITS

There are two basic wastewater permit programs adminis-tered by Illinois EPA that are applicable to dischargesfrom ethanol plants: the National Pollutant DischargeElimination System (NPDES) permit and the StateWater Pollution Control (WPC) permit program. SeeAppendix A for these and other applicable permits.

The NPDES permit program regulates discharges towaters of the state (surface waters), and there are threekinds of NPDES permits that may be required for

ethanol plants: (1) NPDES Permit for Waste WaterDischarges to Surface Waters; (2) NPDES GeneralStorm Water Permit for Construction Site Activities forstorm water runoff; and (3) NPDES General StormWater Permits for Industrial Activity, also for stormwater runoff.

A NPDES permit must be obtained prior to the start offacility construction. When Illinois EPA has approved adraft NPDES permit, public notice must be provided,with the possibility of a public hearing if it is requested.

If it is determined that a NPDES permit is required forthe discharge of process and/or non-process wastewater,the appropriate application forms should be submittedto Illinois EPA at least 180 days prior to the anticipateddischarge date. The application must include an anti-degradation analysis. This analysis states that alternativesand impacts of any proposed discharge must beevaluated. NPDES permits will establish pollutantlimitations, monitoring requirements, and specialconditions governing discharges from your facility. Theduration of NPDES permits can not be any longer thanfive years. Individual NPDES permit fees for process andnon-process discharges from ethanol plants could rangefrom $1,000 to $50,000 with a typical fee being $10,000per year based on other ethanol facilities permitted inthe state.

Storm water permits have an annual fee of $500 andfirst year fees are due with the initial application. StormWater Construction Site Activity NPDES permits may beobtained by submitting a Notice of Intent form toIllinois EPA at least 30 days prior to start of constructionand should be terminated at the completion ofconstruction to avoid unnecessary annual fees. You willbe notified of your fee prior to the public notice of yourNPDES permit.

Storm Water Permits for Industrial Activity may berequired for ethanol plants if raw materials, finishedproducts (or by-products), or manufacturing processes areexposed to storm water at the site. If none of thesematerials or processes is exposed to storm water, a NoExposure Certification form must be submitted toIllinois EPA so that development of a Storm WaterPollution Prevention Plan (SWPPP) would not berequired. It should be noted that discharges of industrial

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storm water might be covered under the same permit asdischarges of process and non-process wastewater.

The State WPC permit program regulates discharges toPublicly Owned Treatment Plants (POTWs), subsurfacedischarges, and land application of treated wastewaterand solids (sludge). State WPC permit applications fordischarges to sanitary sewers or POTWs should besubmitted 45 days prior to the anticipated dischargedate. A one-time permit fee can range from $1,000 to$6,000, depending on whether or not you requirepretreatment for toxic pollutants.

A construction permit is also necessary for constructionof equipment that reduces pollutant loads either bypretreating discharge before it goes to a POTW, ortreating it prior to surface or subsurface discharge.Construction permit applications for equipment thatdischarges to the subsurface should be submitted 90 daysprior to expect discharge date, and require no fee.Construction permit aplications for treatment equip-ment that discharges to surface waters should besubmitted at the same time as the NPDES permitapplication. No fee is required for this permit.

If process wastewater will be discharged from your facili-ty, this wastewater discharge may fall under the FederalCategorical Standards for Manufactures of OrganicChemicals, Plastics, and Synthetic Fibers (OCPSF). Ifso, a State WPC permit is required. If processwastewater is recycled back into the process, theseregulations will not apply. Other discharges such ascooling tower or boiler blow down reverse osmosisconcentrates would most likely not be considered processwastewater, but would still require a State WPC permit.

All necessary water permit application forms are availablefrom the Illinois EPA website at www.epa.state.il.us/water/permits/wastewater/index.html. For further information, call Illinois EPA’s WaterPollution Control Permit Program at 217-782-0610.

III. STATE RESOURCES AVAILABLEFOR ETHANOL PLANTS

DEPARTMENT OF COMMERCE

AND ECONOMIC OPPORTUNITY

DCEO manages a number of research, demonstrationand grant programs in order to promote and expand theuse of ethanol as a clean, renewable transportation fuel.Illinois is a leader in corn and ethanol production, andDCEO works with the state’s agricultural community toincrease demand for and production of ethanol.

RReenneewwaabbllee FFuueellss RReesseeaarrcchh,, DDeevveellooppmmeenntt aannddDDeemmoonnssttrraattiioonn PPrrooggrraamm ((RRFFDDPP))This program provides grants for the construction of newbiofuels production facilities in Illinois. The RFDP isdesigned to:

• enhance the economy of Illinois; • expand rural economic development; • create new, permanent jobs in the state;• provide increased income to Illinois grain farmers; • reduce our dependence on foreign oil; and• improve air quality by reducing vehicular

exhaust emissions.

A Project Labor Agreement is required to be eligible toreceive a grant award. The RFDP provides up to a $5.5million incentive for the construction of a new biofuelsproduction facility, or for the expansion/modification ofan existing facility by at least 30 million gallons per year.The total grant award cannot exceed 10 percent of thetotal construction costs of the facility, or $0.10 per gallonof the new production.

BBiiooffuueellss PPllaannnniinngg GGrraannttssDCEO provides planning grants of up to $25,000 topotential biofuel production facilities for developingbusiness plans, engineering/architectural design plansand studies, permitting costs, or legal fees associated withthese plans. A feasibility study is required to be eligiblefor a grant award.

DDeemmoonnssttrraattiioonn PPrroojjeeccttssDCEO manages ethanol development, testing anddemonstration projects designed to encourageeconomic growth in both industrial manufacturingand rural communities.

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DCEO has funded a series of demonstrations to developand test a new ethanol blended diesel fuel known as“E-diesel” fuel. E-diesel is a blend of #2 diesel fuel, up to15 percent ethanol, and a special blending additivepackage that significantly reduces black smoke emissionsfrom diesel engines. Laboratory and field testing iscurrently underway with John Deere & Company tothoroughly test and evaluate the use of this fuel in dieselengines and equipment. The current market for dieselfuel in this country is over 50 billion gallons per year,and the commercialization of E-diesel could help reduceour dependence on foreign oil as well as reducingharmful diesel exhaust emissions.

DCEO and the U.S. Department of Energy co-fundedthe development of an ethanol-powered fuel cell througha joint project with Caterpillar, Aventine RenewableEnergy, Inc., and Nuvera Fuel Cells. The fuel celldeveloped under this project provided electrical powerfor the Aventine Renewable Energy Visitor's Centerin Pekin.

RReesseeaarrcchhDCEO sponsors the research and development ofnew and innovative technologies to help reduceethanol production costs, and to develop newvalue-added products.

DCEO helped fund the National Ethanol ResearchPilot Plant at Southern Illinois University–Edwardsville,which produces ethanol like a private manufacturer,but leases space and time to private companies andother universities to test their technological ideas andinventions.

ILLINOIS DEPARTMENT OF TRANSPORTATION

A major factor in siting an ethanol plant for prospectivebuilders is transportation infrastructure. Normal modesof transportation for the products and by-products of anethanol plant include road, rail, and water. In manycases the transportation infrastructure of a proposed siteneeds upgraded. The Illinois Department ofTransportation (IDOT) has several programs that meetthis need.

EEccoonnoommiicc DDeevveellooppmmeenntt PPrrooggrraamm ((EEDDPP))The EDP is a reimbursement program designed toprovide up to 50 percent state matching funds for

eligible local agency roadway-related construction andengineering to improve highway access to new orexpanding industrial distribution or tourism develop-ments. The EDP targets those projects that will expandthe state's existing job base or create new employmentopportunities.

Priority considerations include:• need for the highway improvement and imminence

of development;• compatibility of the proposed roadway with the

design of the existing roadway system;• primary jobs created or retained in Illinois and

total developer site cost estimate;• annual and peak day attendance at tourist

developments;• commitment of the industrial/distribution/tourist

development to the site to be served by facility; and• willingness of the sponsoring local government

to participate in the local share of theimprovement cost.

Local matching funds may be comprised of the localjurisdiction's motor fuel tax allocation, local road andbridge tax funds, or other local revenues. In some cases,local acceptance of the jurisdictional transfer of astate-owned unmarked highway may be used as payment-in-kind toward the local share of the total project cost.Truck Access Route Program funds (discussed later), ifawarded, can be applied towards the local matchingfunds. Local matching funds cannot include grant fundsreceived from other state agencies, such as DCEO. Thisbasic funding arrangement may be altered on a case-by-case basis for projects involving improvements on roadsunder state jurisdiction.

Projects must be constructed to motor fuel tax standardsand must have a local government sponsor (a county,municipality, township or other taxing body). Ifselected for funding, a joint local-state agreement mustbe executed between the governmental entitiesinvolved to serve as the basis of understanding forfinancial responsibilities.

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Examples of ineligble items include:• land acquisition, • building demolition,• landscaping,• sidewalks,• street lighting, and • utility adjustments.

To apply for EDP funds, local governments shouldsubmit the following information for all projects:

• name of company, type of product and totalcompany site investment

• location (include a map showing the location ofthe site) and general description of improvement

• estimate of the number of primary jobs createdand/or retained

• anticipated opening date for the company• projected visitors at tourist attraction (if a tourism

project)• letter of commitment from the company to expand

or locate• engineer’s cost estimate for the improvement• extent of local participation and source of local

matching funds• completed Employment Reporting Form

An economic development pre-application form entitledNotification of Intent to Apply for EconomicDevelopment Funds is available on-line atwww.dot.il.gov/edpapp.pdf. Please be advised that thepre-application form is being utilized as an initial notifi-cation for your project. IDOT will require additionalinformation before EDP funds can be committed.

The local sponsor should apply for funding as soon aspossible after the project site and an appropriate range ofaccess needs are identified. Notification of the Bureauof Statewide Program Planning will trigger a site evalua-tion process, which must occur before review of thefunding application can begin. An application can besubmitted before all of the details of firm cost estimatesand local participation have been finalized. Thisadvance effort can help to expedite final review anddisposition of the application.

Two copies of each submittal should be forwarded toIDOT, Bureau of Statewide Program Planning, EDP,2300 South Dirksen Parkway, Room 307, Springfield,

Illinois, 62764. An additional copy should beforwarded to the local district IDOT office. Generalquestions concerning the EDP can also be directedto 1-800-493-3434.

TTrruucckk AAcccceessss RRoouuttee PPrrooggrraamm ((TTAARRPP))The purpose of TARP is to help local governmentsupgrade roads to accommodate 80,000-pound trucks.The routes are to provide access to points of loading andunloading and to facilities for food, fuel, truck repair anddriver rest. Projects must connect to a truck route andend at another truck route or truck generator. IDOTwill provide up to $30,000 per lane mile and $15,000per intersection. The state participation will not exceed50 percent of the total construction cost or $600,000,whichever is less. Every fall IDOT solicits local projectsthat can be constructed during the upcoming fiscal year.We encourage you to initiate your inquires andrequests for assistance at the district engineer’s officefor your county.

The following information is needed for application:• general description of the project and map showing

project site and connections to existing truckroutes

• total mileage, including lane miles and number ofintersections

• description of truck generators and number oftrucks per day

• total cost of the project along with the localfunding share

• anticipated letting date

For more information on this program, contact IDOT’sTruck Access Route Program at 217-782-3805 orwww.dot.state.il.us/tarp.html.

RRaaiill FFrreeiigghhtt PPrrooggrraamm ((RRFFPP))The purpose of the RFP is to provide capital assistanceto communities, railroads and shippers to preserve andimprove rail freight service in Illinois. IDOT will gener-ally provide low interest loans to finance rail improve-ments and, in some cases, provide grants. The focus ison projects with the greatest potential for improvingaccess to markets and maintaining transportation costsavings, and where state participation will leverageprivate investment to foster permanent solutions to rail

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service problems. A benefit/cost ratio is used to evaluaterail freight projects.

Requests for RFP funds should include the followinginformation:

• general description of the project and a locationmap depicting the beginning and ending points

• benefits expected from the project (e.g., job cre-ation/retention, transportation savings, etc.)

• name of the industries involved, and principalcontact information

• engineer’s cost estimate, if available

For more information on the program contact IDOT’sBureau of Railroads at 217-782-2835 orwww.dot.state.il.us/rfp.html.

OTHER STATE RESOURCES

IIlllliinnooiiss CCoommmmeerrccee CCoommmmiissssiioonn ((IICCCC))If there is a railroad crossing within the limits of theproposed access improvement, additional funding maybe available from the ICC’s Grade Crossing Protectionfund through separate application to the ICC. For moreinformation on this program, please contact the ICC’sManager of Railroad Safety at 217-782-7660.

NNaattiioonnaall CCoorrnn--TToo--EEtthhaannooll RReesseeaarrcchh CCeenntteerr ((NNCCEERRCC))The NCERC is a not-for-profit research center focusedon the validation of near term technologies for enhanc-ing the economics and sustainability of renewable fuelproduction. Alternate use of the facility for bioprocessingscale up or validation is also possible.

NCERC:• conducts work for industrial or institutional clients

under confidentiality agreement on a fee-for-servicebasis;

• conducts its own research in areas of unmet need byleading or participating in collaborative grant fundedresearch;

• provides education and information to the public onthe importance of renewable fuels; and

• provides training opportunities to those interested in acareer in the industry.

This small-scale facility has all of the unit operations andlaboratory capabilities of a commercial facility. Thesecapabilities make the facility ideal for validating commer-cial concepts for improving fuel ethanol production,generating co-products for feeding trials or processstreams for further development, toll use of individual orcollective unit operations for other bioprocessing needs,and laboratory method development or analyticalservices. For more information visit www.ethanolre-search.com/.

IIlllliinnooiiss EEtthhaannooll PPrree--ffeeaassiibbiilliittyy EEvvaalluuaattoorrThe State of Illinois is committed to helping interestedparties learn more about the possibilities of producingethanol. The web site, www.iletohprefeas.com/provides an introduction to the business issues aroundethanol production. Its aim is to inform interestedindividuals and groups about the potential of buildingethanol plants.

Ethanol market conditions, grain supply and prices,transportation choices, environmental issues, energycosts, federal and state incentives and fundingalternatives are some of the many variables which mustbe understood and managed prior to embarking uponan ethanol venture. This web site can aid yourunderstanding of how these economic factors operatein successful and less successful combination beforeyou proceed with an in-depth analysis of yourspecific opportunity.

IV. SITE/LOCATION CONSIDERATIONS

This chapter provides information on how to find theright site for a new ethanol plant, a complex issue that isvital to its sustainability.

SUMMARY OF SITE/LOCATION FACTORS

Listed below is a summary of the many factors thatshould be considered when choosing an ethanol plantlocation.

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FFeeeeddssttoocckk• historic prices of feedstock• competition for feedstock from other businesses• sufficient feedstock availability or easy acceptance

and handling of unit trains• proximity of feedstock to plant• seasonality of the feedstock• storability• regional collection and delivery to plant

WWaatteerr• city water (contracts can be expensive)• well water (actual availability and water quality

must be thoroughly investigated)• river water (for non contact cooling)• water quality (mineral content)• adequate wastewater disposal options

EEnneerrggyy• proximity to energy source (natural gas, coal, other)• low utility rates• availability of good long term contracts• access to technological established alternative

energy sources (e.g., geothermal, lignin fromcellulose conversion, landfill gases)

• locate so plant can act as a steam host to otherindustrial facilities

TTrraannssppoorrttaattiioonn• access to rail for larger ethanol plants• close proximity to “mainline” of rail systems• access to good roads and interstate• minimal winter or springtime road restrictions• ability to generate back-hauls for truckers• track siding (away from the main building for

ethanol loading)• railcar switching performed by rail service provider

or by plant

MMaarrkkeett AAcccceessss –– EEtthhaannooll• geographical market potential (e.g., RFG areas, CO

non-attainment areas, oxygenated mandate areas,major and secondary metropolitan areas)

• proximity to gasoline blending terminals• adequate trucking/rail/barge services

MMaarrkkeett AAcccceessss –– CCoo--pprroodduuccttss• wet market vs. dry market for distillers grains• proximity to cattle/dairy/poultry feeding areas for

dry-mill co products (DDG, DDGS and syrup)• potential for carbon dioxide market or proximity to

processor

SSiittee SSiizzee• ample room for future capacity expansion• provisions for future co product systems (e.g.,

aquaculture, hydroponics)

• adequate space for truck and rail traffic to movewith ease

• adequate space for feedstock storage• space for water treatment facility if required• space for run-off lagoon, if required, on the

plant property• proper ethanol and denaturant storage facilities

with adequate storage volumes• ample space for efficient ethanol and co product

loading facilities

PPrrooxxiimmiittyy ttoo RReessiiddeennttiiaall AArreeaass• The closer a site is to residential areas and schools,

the more likely it is to face local opposition.

BROWNFIELD SITING

OPPORTUNITIES FOR ETHANOL PLANTS

Brownfields are abandoned or under-used industrial andcommercial properties with actual or perceivedcontamination and an active potential for redevelop-ment. Illinois EPA manages the brownfields grant andloan programs and offers technical support tocommunities through the services of its brownfieldsrepresentatives. Brownfields representatives work directlywith communities to explain cleanup options, regulatoryprograms and requirements and guide municipalitiesthrough the municipal brownfields cleanup andredevelopment process.

A number of brownfields sites in Illinois may be wellsuited for an ethanol plant as they offer significantacreage along with rail and highway access. Some ofthese sites include:

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SSiittee LLooccaattiioonn:: SSiillvviissCounty: Rock IslandContact: Lyle Lohse, Mayor, 309-792-4804Description: This 133-acre site has received a “No

Further Remediation” (NFR) letter from the Illinois EPA. It has rail lines on site and has major roadway access close by.

SSiittee LLooccaattiioonn:: CCaarrbboonn CClliiffffCounty: Rock IslandContact: Karen Hopkins, Village Clerk, 309-792-8235Description: This 250-acre site is close to receiving NFR

letter. It has rail lines on site and has major roadway access close by.

SSiittee LLooccaattiioonn:: SStteerrlliinnggCounty: WhitesideContact: Jay Wieland, City Administrator,

815-632-6621Description: This 730-acre site was the former location

of Northwestern Steel & Wire. One-half of the acreage has been parceled out. The site has direct rail service. Its most recent redevelopment is a one million bushel grain facility.

SSiittee LLooccaattiioonn:: RRaannttoouullCounty: ChampaignContact: Mike Loschen, Community Development

Director, 217-893-1661, ext. 2224Description: This 2,100-acre site was the former

location of Chanute Air Force Base. FSRS is still working on the site. There is a rail spur on site and it has access from Interstate 57.

SSiittee LLooccaattiioonn:: SSaavvaannnnaa AArreeaaCounty: CarrollContact: Dave Ylinden, Exec. Director Jo-Carroll

Local Redevelopment Authority, 815-273-4371, www.lrasavanna.com.

Description: This 2,930-acre site was the former location of Savanna Army Depot. It is on the Mississippi River and has rail access (twin line of Union Pacific).

SSiittee LLooccaattiioonn:: DDiixxoonn//AAmmbbooyy AArreeaaCounty: LeeContact: Andrew Cox, Jr., First Industrial Corp.,

815-284-3375Description: This 130-acre site was the former location

of the Green River Ordinance Plant. It lies in close proximity to Interstate 88.

SSiittee LLooccaattiioonn:: PPaannaaCounty: ChristianContact: Vanessa Myers, Illinois EPA Project

Manager, 217-558-6046 Description: This 93-acre site is an old petroleum

refinery. It is located on Route 51 just south of Pana.

UUssiinngg LLaannddffiillll GGaass aass aann AAlltteerrnnaattiivvee EEnneerrggyy SSoouurrcceeCompanies may want to explore the potential forusing methane gas from landfills as an alternativeenergy source. The landfills listed below currentlycapture methane.

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Municipality

Greenville

Taylorville

Clinton

Effingham

Morris

Iroquois County

Wataga

Ottawa

Bloomington

Decatur

Granite City

Litchfield/Hillsboro

Baylis

East Moline

Granite City

Harrisburg

Landfill

D & L Landfill

Five Oaks (Waste Management of IL)

Clinton Landfill

Landfill 33 Ltd.

Environtech Allied

K & H Mod #7

Knox County Landfill # 3

SLIC # 2

McLean County Landfill

Macon County Landfill

Chain of Rocks – North

American Disposal

Pike County Landfill

Upper Rock Island County Landfill

Chain of Rocks – South

Saline County Landfill

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Community Water Supply GroundwaterPump Rate in Millions of Gallons Per Day

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Legend

County Boundary

Sand & Gravel Aquifer

Shallow Bedrock Aquifer

Deep Bedrock Aquifer

Groundwater Pumpage Industrial/Commercial (2001)Less than .1 MGD

.1 to .5 MGD

.5 to 1 MGD

1 to 5 MGD

Over 5 MGD

Major Aquifers in Illinois andIndustrial/CommercialGroundwater Pumpage

Major Aquifiers in Illinois andIndustrial/Commercial Groundwater Pumpage

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Illinois Natural Gas Pipelines

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Illinois Rail Transportation Routes

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Appendix AFEDERAL, STATE, AND LOCAL PERMITS THAT MAY BE REQUIRED

FOR AN ETHANOL PLANT

Construction Permit/PSD Approval –Comprehensive air quality construction permit fornew major sources of emissions or a major modifica-tion of existing sources; required before beginningconstruction; implements the federal permitrequired the Prevention of Significant Deterioration(PSD) rules; 40 CFR 52.21

Federal Operating Permit (CAAPP Permit) –Operating permit pursuant to Clean Air Act Title VPermit for major sources; required for continuingoperation following the period of initial operationallowed by a Construction Permit / PSD Approval

Construction Permit w/out PSD Approval –Construction of minor sources of emissions or aminor project at a major source; required beforebeginning construction

State Air Operating Permit – Operation of minorsources of emissions; not applicable if a sourceneeds a CAAPP permit

Acid Rain Notification – Designation by the sourceof a Designated Representative and alternative forthe federal Acid Rain Program; required to be sub-mitted concurrent with Acid Rain PermitApplication; 40 CFR Part 72

AIR• Process and operating data• Air pollution emissions and control

equipment data• Process flow diagrams• Evaluation of applicable regulatory

requirements• Locations and dimensions of principle

structures• Air quality impact modeling

• Detailed BACT/LAER1/MACT demon-stration

• Identification of emission offsets

• Compliance plan for ERMS2

Illinois EPABureau of Air 1021 N. Grand Ave. EastP.O. Box 19276Springfield, IL 62694-9506Ph: 217-782-2113www.epa.state.il.us/air/permits

• Technical information as in ConstructionPermit/PSD Approval, i.e., process data,emission data, rule evaluation

• Compliance monitoring provisions• Compliance certification

• Process and operating data• Emissions and air pollution control

equipment data• Evaluation of applicable regulating

requirements• Description of plot plan/ process flow

drawings

• Information confirming compliance withrequirements established by constructionpermit(s)

• Contact information• Plant information• DOE ORIS number for plant

Illinois EPABureau of Air1021 N. Grand Ave. EastP.O. Box 19276Springfield, IL 62694-9506Ph: 217-782-2113www.epa.state.il.us/air/permits

Illinois EPABureau of Air 1021 N. Grand Ave. EastP.O. Box 19276Springfield, IL 62694-9506Ph: 217-782-2113www.epa.state.il.us/air

Illinois EPABureau of Air1021 N. Grand Ave. EastP.O. Box 19276Springfield, IL 62694-9506Ph: 217-782-2113www.epa.state.il.us/air

Illinois EPABureau of Air 1021 N. Grand Ave. EastP.O. Box 19276Springfield, IL 62694-9506Ph: 217-782-2113www.epa.state.il.us/air

1Applicable in ozone nonattainment area for a proposed source that would be major for VOM or NOx emission.2Applicable in Chicago ozone nonattainment area for major VOM source.

Name and Description of Permits and Approvals Required Information Contact Information

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Name and Description of Permits and Approvals

Acid Rain Permit – Operating permit pursuant toClean Air Act Title IV, for an affected source; sub-mittal required 2 years before starting operation (orpermit must be issued prior to start of operation);permit can be applied for and processed at the sametime as a Construction Permit/PSD Approval

Budget Permit – Operating permit pursuant to theregional NOx Trading Program; permit can beapplied for and processed at the same time as aConstruction Permit/PSD Approval

Qualifying Facility Certification – Cogenerationfacilities; form no. 556; necessary for rating benefitsto sell power at wholesale

Certification of Continuous Emission MonitoringSystem (CEMS) – Approval on installation of SO2and NOx CEMS and in compliance with Acid RainEmission Monitoring requirements; CFR Part 75

Risk Management Plan – Plan must be submittedto U.S. EPA and found complete prior to storage oruse of hazardous air pollutants (such as ammonia);in quantities greater than threshold amounts; 40CFR Part 68

Required Information Contact Information

• Completed Acid Rain Notification• NOx and SO2 compliance plan

Illinois EPABureau of Air1021 N. Grand Ave. EastP.O. Box 19276Springfield, IL 62694-9506Ph: 217-782-2113www.epa.state.il.us/air

• Completed Account Certificate ofRepresentation

• Identification of affected units

• Self-certification should be based on adetermination if facility qualifies

• Relative accuracy and bias test• Calibration error test• Cycle response time test• Linearity test

• Chemical inventory including maximumstorage capacity

Illinois EPABureau of Air 1021 N. Grand Ave. EastP.O. Box 19276Springfield, IL 62694-9506Ph: 217-782-2113www.epa.state.il.us/air

Federal Energy Regulatory Commission888 First St. N.E.Washington, D.C. 20585Ph: 202-208-2168www.fe.doe.gov/programs_coalpwr

Illinois EPABureau of Air1021 N. Grand Ave. EastP.O. Box 19276Springfield, IL 62694-9506Ph: 217-782-2113www.epa.state.il.us/air

U.S. EPA CEPPORisk Management Plan ReportingCenterP.O. Box 3346Merrifield, Virginia 22116-9280www.epa.gov/ceppo

First contact: Illinois EPABureau of Air1021 N. Grand Ave. EastP.O. Box 19276Springfield, IL 62694-9506Ph: 217-782-2113www.epa.state.il.us/air

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National Pollutant Discharge Elimination System(NPDES) Permit – Clean Water Act Section 402;discharge of wastewater to surface waters; requiresprior to operation: obtaining prior to constructionrecommended

NPDES Storm Water General PermitConstruction Site – Storm water runoff from con-struction areas; required before construction

NPDES Storm Water General Permit IndustrialSite – Industrial storm water runoff; required priorto operation

Sewer Connection Permits – Construction andoperation of connection to public sewer system;required prior to construction

State Endangered Species/ Natural AreasConsultation – State agencies/ local governmentswhich authorize, fund, or perform actions alteringenvironmental conditions must consult IDNR anduse their authority to avoid or minimize adverseimpacts; 520 ILCS 10/11; 525 ILCS 30/17; 17 Ill.Admin. Code 1075

Water

• Water balance diagram• Expected wastewater flow and

characteristics• Water pollution control equipment and

systems

Illinois EPABureau of WaterDiv. of Water Pollution Control1021 N. Grand Ave. EastP.O. Box 19276Springfield, IL 62694-9276Ph: 217-782-3362www.epa.state.il.us/water

• Storm Water Pollution Prevention Plan,including: 1) site description, 2) pollutionand erosion control measures, and 3)maintenance procedures

• Storm Water Pollution Prevention Plan,including: 1) site description 2) pollutionand erosion control measures, and 3)maintenance procedures

• Detailed biological assessment ofpotential impacts

• Map and legal description of location• Project conceptual or design plans

Illinois EPABureau of WaterDiv. of Water Pollution Control1021 N. Grand Ave. EastP.O. Box 19276Springfield, IL 62694-9276Ph. 217-782-3362www.epa.state.il.us/water

Illinois EPABureau of WaterDiv. of Water Pollution Control 1021 N. Grand Ave. EastP.O. Box 19276Springfield, IL 62694-9276Ph: 217-782-3362www.epa.state.il.us/water

Illinois EPABureau of WaterDivision of Water Pollution Control1021 N. Grand Ave. EastP.O. Box 19276Springfield, IL 62694-9276Ph: 217-782-0610www.epa.state.il.us/water

U.S. Fish and Wildlife ServiceChief, Ecological Services OperationsU.S. Fish and Wildlife ServiceBishop Henry Federal BuildingOne Federal DriveFt. Snelling, MN 55111-4056Ph: 612-713-5308www.nfwf.org

Federal Endangered Species Consultation –Issuance of COE Construction permit if it haspotential effects to federally listed species or criticalhabitat; Section 10 (Exceptions) of the EndangeredSpecies Act

• Design drawings of sewer connection• Description of wastewater and treatment

equipment

Illinois Dept. of Natural ResourcesDiv. of Resource Review and

CoordinationOne Natural Resources WaySpringfield, Illinois 62702-1271Ph: 217- 785-5500www.dnr.state.il.us/orep/nrrc

Name and Description of Permits and Approvals Required Information Contact Information

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IDNR Wetland Review – Requires that all projectsreceiving state support shall meet the state goal ofno overall net loss of the state’s existing wetlandacres. Projects shall be submitted to the IDNR for awetland impact assessment; Illinois Wetland PolicyAct of 1989 [20 ILCS 830]

Nationwide Permits – Construction of specifiedtypes of structures (e.g. intake/discharge structures)in lakes, streams, wetlands; 33 CFR 330

Water Quality Certificate – Triggered by applicationfor U.S. Army Corps of Engineers ConstructionPermit (Section 404 only); Section 401 of CWA

Water Supply Connection Permits – Constructionand operation of connection to public water supplysystem; 2 permits – one required prior to construc-tion, another for operation of system; permits typi-cally issued to municipal water supplier, butobtained by the project developer

Well Installation Permit – Installation of newgroundwater wells used for non-public drinkingwater system; required before construction

• Name and address of the supportingagency

• Project design plans• Wetland delineation of the project areas

as prescribed by the COE 1987 Manual

Illinois Dept. of Natural ResourcesDiv. of Resource Review andCoordinationOne Natural Resources WaySpringfield, Illinois 62702-1271Ph: 217- 785-5500www.dnr.state.il.us/orep

• Design drawings for structures and shore-line protection

• Description of overall project

• Design drawings for facility• Description of overall project• Delineation of wetland areas• EIS would require information on

existing environment, expected impacts,and alternatives

• Design drawings of water connection• Description of water use plans

• Design drawings of water connections• Plans for disinfections and sampling

U.S. Army Corps of EngineersSt. Louis DistrictAttention: CEMVS-CO-F1222 Spruce StreetSt. Louis, Missouri 63103-2833Ph: 314-331-8185Fax: 314-331-8741www.mvs.usace.army.mil

Illinois EPABureau of WaterWatershed Management1021 N. Grand Ave. EastP.O. Box 19276Springfield, IL 62694-9276Ph: 217-782--3362www.epa.state.il.us/water

Illinois EPABureau of WaterDivision of Public Water Supply1021 N. Grand Ave. EastP.O. Box 19276Springfield, IL 62694-9276Ph: 217-782-9470www.epa.state.il.us/water

Illinois Department of Public Health525 W. JeffersonSpringfield, Illinois 62762Ph: 217-782-5830www.idph.state.il.us

Well Water Withdrawal Permit – Installation ofnew groundwater wells used for non-public drinkingwater system; required prior to construction

• Design drawings for wells• Plans for disinfections and sampling

County Public Health Department

(Check the local phone directory of thecounty where the facility will be built forcontact information.)

Name and Description of Permits and Approvals Required Information Contact Information

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Septic Permit – Construction and operation of aseptic system; required prior to construction

Wastewater Facility Construction Approval –Construction of wastewater treatment equipment(oil separators, etc.); required prior to construction

Conditional Use Permit / Zoning – Constructionof facilities not specifically allowed by local zoningordinances; required prior to construction

Highway Alteration Permit – Construction ofaccess road connection to state highway; requiredbefore construction

Building / Occupancy Permits – Construction ofplant buildings; required prior to construction

Land

• Design drawings of septic system

Note: Illinois EPA issues permits for septicsystems larger than 15,000 gallons/day,serving more than one building, and/orcontaining non-domestic wastewater. Formore information call (217-782-0610)

County Public Health Department

(Check the local phone directory of thecounty where the facility will be built forcontact information.)

• Design information for wastewatertreatment equipment

• Expected characteristics of raw andtreated wastewater

• Description of project• Site development plans

• Design drawings for highway connection• Plans for controlling traffic during con-

struction

• Building design plans

Illinois EPABureau of WaterDivision of Water Pollution Control1021 N. Grand Ave. EastP.O. Box 19276Springfield, IL 62694-9276Ph: 217-782-0610www.epa.state.il.us/water

County Board

(Check the local phone directory of thecounty where the facility will be built forcontact information.)

Illinois Department of TransportationRoom 3222300 South Dirksen ParkwaySpringfield, Illinois 62764-0002Ph: 217-782-7526www.dot.state.il.us

County or Township HighwayDepartment

(Check the local phone directory of thecounty where the facility will be built forcontact information.)

Local Road Construction Permit(s) – Constructionof access road connection to local road; requiredprior to construction

• Design drawings for highway connection• Plans for traffic controls

County Building Commissioner

(Check the local phone directory of thecounty where the facility will be built forcontact information.)

Contact InformationRequired InformationName and Description of Permits and Approvals

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Storage Tank Construction – Construction of aboveground oil storage tanks; required beforeconstruction

Determination of Obstruction Hazard –Construction of tall structures; required if facilitystructures higher than 200 feet or located less than20,000 feet from airport

Historic Preservation Approval – Construction ofindustrial facilities; require review of historicalarchaeological resources

Noise Requirements – Noise emissions to residen-tial and commercial property; no permits or reviewrequired; enforcement by local agencies or by IllinoisPollution Control Board upon receipt of complaints;35 Ill. Rev. Code Parts 900 – 950

• Design drawings for storage tanks Illinois State Fire MarshalFire Prevention Division100 W. Randolph StreetSuite 11-800Chicago, IL 60601Ph: 312-814-2693www.state.il.us/osfm

• Locations and dimensions of stacks andother tall structures

Submit FAA Form 7460-I to:FAA-Great Lakes Regional OfficeAir Traffic Division, AGL-5202300 E Devon Ave.Des Plaines, IL 60018Ph: 847-294-7568

• Location and nature of project

Illinois Department of TransportationDivision of Aeronautics1 Langhorne Bond DriveSpringfield, Illinois 62707-8415Ph: 217-524-1580www.dot.state.il.us/aero/avaioforms.htmlwww.mvs.usace.army.mil

Illinois Historic Preservation AgencyPreservation Services DivisionOne Old State Capitol PlazaSpringfield, Illinois 62701Ph: 217-785-5027www.state.il.us/HPAPh: 217-782-3362www.epa.state.il.us/water

Illinois EPA1021 N. Grand Ave. EastP.O. Box 19276Springfield, IL 62694-9276Ph: 217-782-2113www.epa.state.il.us/landwww.epa.state.il.us/water

Contact InformationRequired InformationName and Description of Permits and Approvals

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Appendix BGRANTS AND FUNDING OPPORTUNITIES FOR ETHANOL PLANTS IN ILLINOIS

Renewable Fuels Development Program (RFDP) -This program was established by Public Act 93-15 toprovide grants for the construction of new biofuelsproduction facilities in Illinois.

Illinois Enterprise Zone Program – An enterprisezone is a specific area designated by the State ofIllinois in cooperation with local government toreceive various tax incentives such as: sales taxexemption on specific purchases, utility tax exemp-tions, investment tax credits, dividend incomedeductions, job tax credits, interest deductions andcontribution deductions. Enterprise zones rangefrom a half square mile to 15 square miles.

Property Tax Abatement – Local taxing districtsmay abate a portion of the property taxes on newfacilities for a period not to exceed 10 years for proj-ects designated as a High Impact Business.Enterprise Zone property tax abatement may beavailable for eligible projects.

• The minimum eligible facility size is 30million gallons per year.

• A Project Labor Agreement is required tobe eligible to receive a grant award.

• Total grant award cannot exceed 10per-cent of the total construction costs of thefacility, or $0.10 per gallon of the newproduction.

• Maximum RFDP grant award is$5.5 million.

• Applies to the construction of new bio-fuels facilities, or to the expansion/modi-fication of existing facilities.

Dept. of Commerce and Economic Opportunity620 East Adams, 3rd FloorSpringfield, IL 62701Ph: 217- 785-3969www.illinoisbiz.biz

• The program depends upon a creative partnership betweenstate and local government, businesses, labor and communitygroups in areas designated as Enterprise Zones.

• Businesses invest in qualified property and create or retain jobs.

• The exemptions, credits, and deductions available have various requirements.

• Local taxing districts may abateproperty taxes on new High Impact Businesses

Dept. of Commerce and Economic OpportunityBusiness Development DivisionEnterprise Zone Program620 East Adams, 3rd FloorSpringfield, IL 62701Ph: 217-785-6145www.illinoisbiz.biz

Contact the local enterprise zone admin-istrator to find out if abatements for thisproject type are available in the zone.

Name and Description of Grants/Incentives Qualifications Contact Information

Listed below are several funding opportunities that are available for ethanol production plants. Funding opportunitiesinclude grants, loans and specific incentives that are put in place to help the ethanol industry. In the first column thename of the grant or incentive is listed, followed by any specific qualification that is needed to be met and contactinformation in the third column. Specific questions pertaining to the grant or incentive should be taken to the appro-priate agency, department, or organization in which the program originates.

Economic Development for a Growing Economy(EDGE) – Tax credits calculated from personalincome tax collected on salaries paid for the createdand/or retained jobs; taken as a non-refundable taxcredit against corporate state income taxes assessedover a period of not more than 10 taxable years.

• Businesses newly locating orexpanding facilities in Illinois

• Interstate services that add an overall positive impact to the Illinois economy

• Businesses investing at least $5 million in capital improvementsand creating a minimum of 25 new jobs or investing at a levelspecified by DCEO

Dept. of Commerce and Economic OpportunityBusiness Development Division620 East Adams, 3rd FloorSpringfield, IL 62701Ph: 217-524-8449www.illinoisbiz.biz

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Name and Description of Grants/Incentives

First-Stop Business Information Center of Illinois --Provides access to information and referral assis-tance to guide through the permitting, licensing andregulatory processes

Community Development Assistance Program(CDAP) Economic Development Component –This federally funded program assists smaller Illinoislocal governments in financing economic develop-ment needs for infrastructure improvements or busi-ness loans. Funds are targeted toward projects thatbenefit low to moderate-income people.

Industrial Training Program – Assists Illinois com-panies in training new workers and retaining/upgrading skills of the existing workforce; grants canreimburse companies for up to 50 percent of thecost of training their employees

Economic Development Program (EDP) – Up to50 percent in matching state funds for highwayimprovements that are needed to provide access tonew or expanding existing industrial, distribution ortourism departments

Qualifications Contact Information

• Starting a new business or operating an existing one in Illinois

• Grants made to units of local governments with populations less than 50,000 that are not located within one of eight large urban counties that receive funds directly form the federal government.

• Trainees must have been employed by the company beforeimplementation of the training program.

• Commitment to expand or locatein Illinois

• Create or retain primary jobs in Illinois

• Retail and future, speculative projects are NOT eligible

Dept. of Commerce and Economic OpportunityBusiness Development DivisionFirst Stop Business Information Center620 East Adams, 3rd FloorSpringfield, IL 62701Ph: 800-252-2923www.illinoisbiz.biz

Dept. of Commerce and Economic OpportunityBusiness Development DivisionFirst Stop Business Information Center620 East Adams, 3rd FloorSpringfield, IL 62701Ph: 800-252-2923www.illinoisbiz.biz

Dept. of Commerce and Economic OpportunityBusiness Development DivisionFirst Stop Business Information Center620 East Adams, 3rd FloorSpringfield, IL 62701Ph: 800-252-2923www.illinoisbiz.biz

Illinois Dept. of TransportationBureau of Statewide Program PlanningRoom 3072300 South Dirksen ParkwaySpringfield, IL 62764-0002Ph: 217-782-2755www.dot.state.il.us

Truck Access Route Program (TARP) -- $20,000per lane mile and $10,000 per intersection or up to50 percent of the total project cost to upgrade roadsto accommodate 80,000-pound trucks to accesspoints of loading and unloading.

• Local government agencies mayapply.

• Roads must connect to a truck route and end at another truck route or truck generator.

Illinois Dept. of TransportationBureau of Local Roads and StreetsRoom 2052300 South Dirksen ParkwaySpringfield, IL 62764-0002Ph: 217-782-3970www.dot.state.il.us

USDA Value-Added Producer Grants (VAPG) • Grants may be used for planningactivities and working capital for marketing value-added agricultural products and for farm-based renewable energy.

• Eligible applicants areindependent producers, farmer and rancher cooperatives, agricultural producer groups, andmajority-controlled producer-based business ventures.

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Illinois Clean Energy Community Foundation –Grants for programs designed to develop consumerdemand for renewable energy.

Rail Freight Program (RFD) – Low interest loans orgrants to finance rail improvements.

• The deadlines to submit letters ofinquiry for competitive grants are posted on their website.

• The Illinois Clean Energy Community Foundation providesfunding to charitable (federally recognized 501c3) organizations,educational institutions and state and local government agenciesserving Illinois residents.

• Communities, railroads andshippers

• Projects should focus on: achieving statewide economicdevelopment, improving access to markets, maintaining transportation costs savings and/or leveraging private investments to foster permanent solutions to rail serviceproblems.

Illinois. Clean Energy Community Foundation2 N. LaSalle St.Suite 950Chicago, IL 60602Ph: 312-372-5191www.illinoiscleanenergy.org/

Illinois Dept. of TransportationBureau of RailroadsRoom 3022300 South Dirksen ParkwaySpringfield, Illinois 62764-0002Ph: 217-782-2835www.dot.state.il.us

Contact InformationQualificationsName and Description of Grants/Incentives

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Appendix CBEST PRACTICES FOR BUILDING AN ETHANOL PLANT: ENERGY, ENVIRONMENT AND

NEW ETHANOL PLANT EFFICIENCY

HEAT RECOVERY FOR INCREASED EFFICIENCY

Electricity can be generated or heat recovered for the distillation columns from the steam produced in the

liquefaction portion of the process where the meal is passed through cookers at high temperatures. Heat should be recovered from the TO/RTO for the DDG dryer.

Heat recovery should be possible from the fermentation tanks.

During the mash preparation, a new natural starch-degrading enzyme can be used to reduce the amount of heat

needed and can reduce the time required in that step of the process. www.ars.usda.gov/is/pr/2001/010404.htm

CONSIDER ALTERNATIVE ENERGY SOURCES

Utilize syrup from the evaporators as a fuel supply.Consider alternative fuels such as wood chips or fluidized bed biomass. When using an anaerobic digester system, the methane can be captured and used as an energy source.Use solar energy for some of the heat required in the distillation process. http://narithaltan.virturalave.net/ethanoldist.pdf

OUTREACH AND COMMUNITY RELATIONS

Hold informational meetings with the community.Set up a repository of information about the proposed project.Make sure that the company establishes a point of contact.

• New ethanol plants should recover at least 2.7 gallons of ethanol per bushel of corn processed and consume lessthan 32,000 Btu’s per gallon of ethanol produced.

• The process of dry milling is more efficient than wet milling in terms of BTU/gallon of ethanol produced.

• Molecular sieves reduce distillation energy significantly in the dehydration step, where the last of the ethanol isseparated for the water.

• Elimination of wastewater from dry plants should be easily attainable. Zero discharge dry plants are possible byeliminating the need for live steam injection for starch conversion; and using semi-permeable membranes toremove co-products from the process water.

• Uses of byproducts such as carbon dioxide for the carbonation in sodas (food grade) and the distillers grain foruse in animal feed help reduce waste generation and provide energy credit.

• Minimize compressed air use and pressure requirements in the plant design since 90 percent of input power islost to heat. Locate necessary compressors away from heat sources and utilize outdoor cool air for compression.

• Utilize high efficiency electric motors and implement variable frequency drives for operations that require varyingmotor speeds (i.e. fans, pumps).

r3

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r3

r3

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• Great strides in energy efficiency could be gained by minimizing the removal of water from the products.Elimination of the dryer, RTO, and evaporator would drastically reduce power consumption and save tens ofmillions in installation costs while reducing the annual operating expense by millions of dollars (depending uponplant size).

• When designing an ethanol production facility a Combined Heat and Power System (CHP) should be consideredand evaluated for its potential to reduce electrical costs, provide a means of destroying VOCs from the dryers andan efficient means of recovering and utilizing waste heat. The U.S. EPA has established a CHP Partnership toevaluate and provide technical assistance on the design and use of CHP systems for ethanol production facilities.For more information contact U.S. EPA Combined Heat and Power Partnership at www.epa.gov/chp/ or contactthe University of Illinois at Chicago Energy Resources Center at 312-996-4382.

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Printed by the Authority ofThe State of Illinois

January 2006 • 200