By RACHELLE HAUGHN, Commercial Review

A South Dakota company has been given the nod by state officials to begin construction on an ethanol plant near Portland.

Premier Ethanol LLC was issued an air quality permit by the Indiana Department of Environmental Management on Monday, Doug Wagner, technical environmental specialist for IDEM's office of air quality, said Monday afternoon.

Construction of the plant, planned to be located along county road 200 West near Meshberger Brothers Stone Co., can now begin, Wagner said.

Premier officials also applied for a water discharge permit from IDEM, which would allow water used in the refining process to be discharged into the Salamonie River.

The application was received by IDEM on May 17, said Lonnie Brumfield, an employee of the water quality permit office. On May 23, the ethanol company was sent a letter stating that application was incomplete, he said. Brumfield could find no other activity on the water quality permit application.

At a public hearing held Aug. 17 for the air quality permit, another IDEM official said construction could begin without a water discharge permit. This permit would be for the plant's water emissions.

Wagner said 60 to 100 days after the plant begins operations, Premier officials must notify IDEM officials of when they would like the plant's air emissions to be tested. After that initial test is done, the emissions will be tested annually, he said.

Site preparation work, which is allowed to begin without an air quality permit, started before the Aug. 17 hearing. Bill Milligan, Jay/Portland Building and Planning administrator, said the company was issued a building permit on Aug. 21.

A handful of local residents attended the Aug. 17 hearing.
The proposed ethanol plant has been a sensitive subject for many who live near the plant site. Many have shown up at Portland Planning Commission and Portland City Council meetings to voice their opposition to the plant project.

Jay County Commissioners voted Monday morning to establish a redevelopment commission to oversee the creation of a Tax Increment Financing district for the plant. Creation of the TIF will assist in providing infrastructure to the site of the proposed plant. Funds also are expected to be used to help the county provide sewer service to residents of the Foxfire addition, which is located near the plant site.

Premier officials have said they plan to produce about 60 million gallons of ethanol per year at the plant, which is expected to bring a total investment of about $175 million.
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