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March 30, 2010

CVEC Resolves MPCA Permit Infractions

Benson, MN - Chippewa Valley Ethanol Company, LLLP (CVEC) today announced that it has entered into a Stipulation Agreement with the Minnesota Pollution Control Agency (MPCA) to settle alleged violations of CVEC's Minnesota Air Quality Permit.

The allegations sited included items such as unclear record keeping and tardy performance testing of regulated emission control equipment.  However, the primary focus of the MPCA was related to the self-reporting of an unallowed feedstock associated with the biomass gasification system.  Although CVEC strongly disagrees with the conclusions drawn by MPCA, it has agreed to the payment of a civil penalty to put the issue to rest.  CVEC will pay $70,000 in cash and submit a proposal for a supplemental environmental project for at least an additional $50,000. The total penalty is $120,000.

"CVEC cares deeply about being a good steward of the environment.  That philosophy is part of our culture.  While missing a set calendar date for a stack test or having unclear records may not have a direct adverse impact on the environment, it is nonetheless, unacceptable. As a Company, we expect better," stated Mike Jerke, CVEC General Manager. "The frustrating part of this whole situation was the stance of MPCA enforcement personnel concerning our gasification system."

Gasification is a process whereby biomass such as clean wood scraps and corn cobs are heated in a unique way to make a natural gas substitute called producer gas.  Producer gas decreases CVEC's reliance on fossil fuel and reduces the carbon footprint of the ethanol plant.

"CVEC's gasification system is the first of its kind in existence.  It is an example of industry investing considerable resources in new technology for the betterment of the environment," remarked Jerke.

In early 2009, through voluntary testing of the biomass char left after gasification, CVEC personnel came to the conclusion that one of their wood suppliers had shipped a load to CVEC that contained some adulterated wood (i.e. painted or treated).

"We alerted the MPCA to the adulterated wood event and concluded that the offending contaminant likely amounted to one eight foot long two-by-four that had been chipped and shredded into a 20 ton load of wood.  CVEC agrees with MPCA that this should not have occurred.  We do not agree with the magnitude of the penalty," said Jerke. "Steps were taken to mitigate this issue and our research indicates there was no appreciable impact on the environment. CVEC remains committed to developing renewable sources of energy in an environmentally beneficial fashion."

For additional information contact Mike Jerke at (320) 843-4813.

Chippewa Valley Ethanol Company (CVEC) is a 48 MM gpy ethanol plant located in Benson, Minnesota. One of the longest-tenured of the cooperative ethanol facilities, the CVEC organization has built a reputation for its ethanol policy leadership and for expanding the boundaries of farmer-owned ethanol with its innovative processes and marketing programs. For more information about CVEC, log on to cvec.com

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