Minnesota Pollution Control Agency

For immediate release: Nov. 29, 2007 Contact: Ralph Pribble, 651-296-7792 Granite Falls, Minn. -- Granite Falls Energy LLC will pay a state civil penalty of $300,000 for a variety of alleged violations at the company's ethanol production facility in Granite Falls during 2006 and 2007. The violations were discovered during Minnesota Pollution Control Agency (MPCA) staff inspections of the facility, and through review of operational records the company is required to submit to the MPCA under its environmental permits. Numerous violations were identified, including producing ethanol above the facility's permitted limit, failure to inspect and maintain production and pollution control equipment, recordkeeping and reporting violations, exceeding permitted water-quality discharge limits, and the production of "wet cake," which is prohibited under the facility's permit. (Wet cake is a byproduct of corn ethanol manufacturing that can be used as animal feed, but is subject to special handling, storage and disposal requirements.) As a result of the violations, the facility emitted or created a potential to emit more regulated air and water pollutants than permitted. In addition to paying the civil penalty, the company agreed to resolve the violations through corrective actions, including specific plans on how it will ensure compliance with permit limits and prevent reoccurrence of the violations in the future. When calculating penalties, the MPCA takes into account how seriously the violations affected the environment, whether they were first-time or repeat, and how promptly the violations were reported to appropriate authorities. Penalties also attempt to recover the calculated economic benefit gained by failure to comply with environmental laws in a timely manner. For a comprehensive list of enforcement actions by the MPCA, refer to the agency Web site at www.pca.state.mn.us/newscenter/enforcement.html.