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Dayton to vote for energy bill
November 21, 2003

Ethanol producers in Minnesota and the Upper Midwest, such as the Al-Corn plant in Claremont, Minn., would benefit from the energy bill. Opponents say ethanol takes more energy to produce than it provides. (MPR file photo)

Washington, DC — (AP) Minutes before Senate opponents blocked the energy bill, Sen. Mark Dayton announced that he would reluctantly support the legislation.

"It's a very, very difficult decision," Dayton spokeswoman Chris Lisi said. "He doesn't think that it's a very good bill, especially on the environmental front, but he really felt he didn't have a choice."

The energy bill includes $800 million in federal loan guarantees for a huge, high-tech power plant on Minnesota's Iron Range, as well as provisions to mandate use of corn-based ethanol in gasoline nationwide.

"This is good for Minnesota's farmers, good on the renewable fuels, good for the Iron range," Lisi said.

The vote was a tough one for Dayton because environmentalists, normally allies of Dayton, say the bill would hurt the environment.

So far the state of Minnesota, via the Iron Range Resources Agency, has already granted Excelsior Energy Inc. a $500,000 loan for the Iron Range power plant.

Excelsior's top executive, Thomas A. Micheletti, told the Duluth News Tribune his company would press on with or without the loan guarantees.

He predicted the Senate would eventually move the bill. "I'm only quoting Yogi," Micheletti said. "It ain't over until it's over."

Still the federal support is key to securing financing for the project quickly.

"Is the project dead? Nope. Not dead," Micheletti said. "We are not giving up. We are going to build this project. But what we are trying to do is get this thing built and under construction as quickly as possible. People are hurting in northeast Minnesota."

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