Elected officals skip crucial study on bio-refinery
Saturday, March 17, 2007 11:46 PM PDT
Kristin Gribben
Argus Observer
TREASURE VALLEY
Malheur County officials did not require the company pushing a bio-refinery concept to conduct a feasibility study, a move elected leaders in Idaho insisted upon when they were reviewing the viability of an ethanol plant proposed by the same company in Payette County.
Payette County commissioners requested a feasibility study for the ethanol plant proposed by Treasure Valley Renewable Resources, the firm behind an effort to build a bio-refinery in Malheur County.
TVRR originally set out to build an ethanol plant in Payette County but zoning issues and a backlash from a coalition of area residents eventually shelved the plan. In July 2002, Oregon Gov. Ted Kulongoski flew into Ontario to announce at an airport rally that TVRR would build a bio-refinery in Malheur County.
Supporters of the $77 million bio-refinery concept assert it will create more than 60 jobs for the local economy. A number of key local political leaders, Mr. Kulongoski and the Oregon Department of Economic Development worked to get TVRR to situate the plant in Malheur County.
In January the Malheur County Court approved an ordinance to create an M-3 Agricultural Processing Zone for a parcel of land south of Ontario. The land was previously zoned exclusive farm use.
The $25,000, taxpayer funded feasibility study for TVRR’s proposed ethanol plant in Payette County was completed in October, 2001 by Voudrie Business Development.
Unlike Payette County, though, Malheur County has not requested a feasibility study from TVRR for its local venture.
Feasibility studies are sometimes requested by county officials when a business is interested in situating locally. The study is performed to determine the viability of a business and the impacts it brings to a community, according to Oregon Department of Agriculture public information officer Bruce Pokarney.
John Hamilton, TVRR project manager, said the feasibility study in Payette County was not useful in determining if the ethanol plant would work.
“It says, ‘Yeah, it may or may not work.’ But the economics of it, the feasibility of it, say you need to look for another way of doing it . . . The Payette County feasibility study wasn’t very good,” Hamilton said.
That is why TVRR has shifted its focus from an ethanol plant to a bio-refinery, and has crafted a “business plan” instead of a feasibility study, Hamilton said.
The business plan TVRR consultants are formulating now incorporates core themes of a general feasibility study plus “trade secrets” and details of how the company will operate its proposed bio-refinery, he said.
The business plan for bio-refinery will not be made public — unlike the Payette County feasibility study — because it includes company “trade secrets,” Hamilton said.
Nor will a summary of the business plan be made public, he said, adding that Malheur County has expressed no interest in seeing a feasibility study or a business plan from TVRR.
Hamilton asserted another feasibility study in Malheur County was not needed because of the close proximity between Malheur County and Payette County, citing only a two mile distance.
However, Hamilton also said that no aspects of the Payette County feasibility study will be used or referenced for the new bio-refinery.
Payette County commissioner, and TVRR investor, Dennis Codr said, as a county commissioner, he would recommend a county request any potential business perform a feasibility study.
“Anytime you do any project I think it’s very important you do a feasibility study. It doesn’t matter what kind of project it is.”
At least one Malheur County elected official, though, said he does not think a feasibility study is necessary.
Malheur County Commissioner Louis Wettstein said he feels there is ample evidence the bio-refinery is feasible — even without a Malheur County feasibility study.
“I don’t think it is necessary in this instance,” Wettstein said.
He said sufficient testimony to the bio-refinery’s viability was provided in the two information meetings held prior to the land use planning meetings.
Wettstein added he felt feasibility studies help a company “know what they want to do,” and he said the studies were tools more for companies and less for counties.
Regarding the business plan, Hamilton said he is in the process of “verifying the equipment” the bio-refinery will need for its operations.
Despite some community opposition to the bio-refinery - reflected in the recent “intent to appeal” filing made to the Oregon Land Use Board of Appeals Court in Salem on behalf of Citizens Against the Bio-refinery — Hamilton said he will move forward with the business plan, which he said should be completed soon, though he would not disclose a date.
