2002 Review-State Profiles

Frequently, EPM features U.S. states that have either paved the way for ethanol production in this nation, or are making efforts to become a part of the industry. In 2002, we profiled three states that have established model ethanol production programs, one that is exploring growth through strong initiatives, and another that is looking to non-traditional feedstocks to fill its future production needs. Here's a brief look back at the State Profiles of 2002:
By | December 01, 2002
When we profiled Minnesota, the state was just beginning to talk about cutting its producer payments, a threat that still exists.

Arguably the nation's most progressive and multifaceted ethanol state of the 1990s, Minnesota is widely credited with developing a template for small-scale ethanol production incentive programs in the U.S.

South Dakota
South Dakota producers and future producers "won big," EPM reported in March, with in-state legislation that nearly tripled South Dakota's total ethanol production payments from $2.5 million in 2003 to $7 million in 2006. The state's success is due in large part to a 20-cent per gallon producer credit ($1 million per year, per plant - $10 million per plant cap), as well as a 2-cent per gallon fuel tax exemption for ethanol blends. State legislators called the funding expansion a "win-win" situation for agriculture and industry.

In terms of ethanol production capacity, EPM reported in April, Iowa is second only to Illinois. And with five plants under construction, eight producing, and another set to break ground at the time of our profile, there was plenty of ethanol news to talk about in Iowa.

"When finished," we said, "the Hawkeye State will be a mighty ethanol powerhouse, with the capacity to produce over 645 mmgy.

Hawaii"The beautiful, yet isolated, geographical characteristics of the Hawaiian Islands are as punishing to the state's energy supply and security as they are rewarding to tourism," we reported in our November issue.

Fortunately, the state has passed legislation to provide ethanol production tax credits intended to encourage sugar producers on the islands to produce ethanol from molasses and other waste feedstocks.

North Dakota
Also in November, we reported, "North Dakota has earned a reputation in the ethanol industry as a state with a finicky ethanol incentive program and a moderate-to-weak supply of corn."

However, the state's governor has outlined an ethanol initiative aimed at bringing more ethanol production and use to the state. Dakota Renewable Fuels wants to build the state's third ethanol plant.