1. Governor’s Ethanol Conference The Minnesota Fuel Ethanol Industry: Regulatory and Permitting Perspectives from the Public Sector. James E. Sullivan Kansas City, MO February 9-10, 2006

2. Overview Siting Issues Siting Issues Environmental Review and Permits Environmental Review and Permits Water Usage Water Usage Pollution Prevention Practices Pollution Prevention Practices Community Involvement Community Involvement

3. Natural Resource Issues Siting Issues Siting Issues Job Zone Program Job Zone Program Often dictates project site location Often dictates project site location Noise Noise Zoning Zoning State Standard - Modeling and BMP’s State Standard - Modeling and BMP’s Traffic Traffic Typically involves turnout geometry issues Typically involves turnout geometry issues Reviewed in environmental review Reviewed in environmental review Odor Odor Require an Odor Management Plan Require an Odor Management Plan Most facilities direct operational emissions to the Thermal Oxidizer Most facilities direct operational emissions to the Thermal Oxidizer Lighting Lighting Addressed in the environmental review process Addressed in the environmental review process

4. Environmental Review and Permits Commissioner Air Quality (MPCA) Water Quality (MPCA) Tanks (MPCA) Water Supply (DNR) Environmental Assessment Worksheet (Integrating Program) Air Quality (MPCA) Water Quality (MPCA) Tanks (MPCA) Water Supply (DNR) Permit Applications (Servicing Programs) Public Comment PeriodDecision Phase Post comment scenarios: 1) MPCA Citizen’s Board 2) Signed by Commissioner Public Meeting (Typically held within 15 days of the public notice date.) MPCA Citizen’s Board EAW and/or Permits Application Phase Early phase of project is based on quality of submittals (Form and Content)

5. Water Usage Water Supply is managed by permit. Water Supply is managed by permit. Minnesota Department of Natural Minnesota Department of Natural Typically five years with pump rate and monitoring conditions Typically five years with pump rate and monitoring conditions Requirements for permit Requirements for permit Pump Test and analysis Pump Test and analysis Supply availability Supply availability Potential interference Potential interference Potential to impact surface waters Potential to impact surface waters

6. Pollution Prevention Practices Promote conservation opportunities. Promote conservation opportunities. Encourage flexibility for feedstocks and fuels Encourage flexibility for feedstocks and fuels Provide input on stormwater P2 plan and on-site stormwater management Provide input on stormwater P2 plan and on-site stormwater management Promote most efficient equipment and site layout (annual conference) Promote most efficient equipment and site layout (annual conference) Research long-term sustainability Research long-term sustainability

7. Community Involvement During public comment citizens During public comment citizens EIS EIS A contested case hearing A contested case hearing A conditional use permit may be required A conditional use permit may be required Permit could be challenged Permit could be challenged All local regulations observed All local regulations observed Third party lawsuits under CWA and CAA Third party lawsuits under CWA and CAA