Missouri’s Show Me Ethanol to lose $6 million in low-cost loan savings; conflict of interest issues arise

In Missouri, Show Me Ethanol may miss out on $6 million in interest savings on low cost state government loans because of conflicts of interest. State rules prohibit legislators or their immediate family from becoming investors in plants that receive favorable state tax treatment, and state Rep. John Quinn, the brother of state Governor Matt Blunt, and the wife of U.S. Rep. Sam Graves are Show Me Ethanol investors., State Treasurer Steelman says that there will be no exceptions to the conflict of interest rules, while the investors are considering the option to sell off their investments.

Missourian ethanol plant development had slowed to a standstill as of last month, according to the state’s Department of Natural Resources. After boom conditions in recent years, no new plants have submitted new or revised permit applications since July, and of three plants that had previously received construction permits, none have proceeded to begin construction. The approved but not as-yet-built plants are Bootheel Agri-Energy, Renewable Power of Missouri and Ethanex.

To stimulate biofuel usage, Gov. Matt Blunt announced a series of tax incentive proposals designed to promote biofuels. The governor proposed $2 million in tax incentives for gas station owners converting to E85, and tax credits for consumers who buy E85 or a hybrid vehicle.

Missouri’s an E10 mandate took effect January 1st. With the new law, Missouri joins Minnesota and Hawaii as the only states mandating E10. Most Missouri stations switched months previously, and the transition as reported to be smooth.

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