RYAM Ethanol Exemption Bill to be heard by State House Commerce Committee

A proposed state legislative definition of bioethanol production as 'fermentation' that would nullify Fernandina Beach's denial of Rayonier Advanced Materials (RYAM) plans to build a production plant will be heard Tuesday by the House Commerce Committee.

House bill 579a states:

"Production of ethanol from plants or plant products by fermentation, distillation, or drying does not constitute chemical manufacturing or chemical refining. This subsection is intended to be remedial and clarifying in nature and shall apply retroactively to any law, regulation, or ordinance or any interpretation thereof."

The ethanol process definition was added to the bill recently and did not appear in previous versions that were approved by two other house committees.

The bill is the House version of an earlier State Senate bill that contained the same language. The Senate bill had advanced but has since been withdrawn.

The bill was filed by State Rep. Toby Overdorf, R-Palm City.

RYAM is currently suing the city of Fernandina Beach over its denial to build the facility on the grounds that bioethanol is 'chemical manufacturing', which is not allowed under the city's Comprehensive Plan and Land Development Code.

If passed into law, the bill would nullify the city's outside legal expert's previous opinion that RYAM's proposed bioethanol process is 'chemical manufacturing.' The legal ruling was the basis of the city's rejection of RYAM's application to construct the $51 million facility at its Gum Street complex.

Once in operation, the production plant would generate 7.5 million gallons of bioethanol yearly that would be transported for sale at other locations. The facility would include several large storage tanks.

Last month, City Manager Sarah Campbell sent RYAM a notice that its application to construct the bioethanol facility would not be reviewed by the city because chemical manufacturing is not permitted in the city.

RYAM has also filed a lawsuit against the city in federal court claiming the city failed to follow any established procedures in order to deny its application and acted improperly towards the company.

 That action by RYAM followed a lawsuit in Nassau County claiming the city acted improperly in processing its application for the project.