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Council approves MOU making Hastings lead applicant for rail-infrastructure grant to support Chief Ethanol Fuels expansion
Summary
The council approved an MOU designating the city as the public sponsor and lead applicant for a Consolidated Rail Infrastructure and Safety Improvements (CRISI) grant supporting Chief Ethanol Fuels’ rail improvements and plant modernization; company leaders described plant upgrades, safety improvements, and a potential local match.
Hastings City Council voted to approve a memorandum of understanding that designates the City as the public sponsor and lead applicant for a Consolidated Rail Infrastructure and Safety Improvements (CRISI) grant on behalf of Chief Ethanol Fuels.
Mark introduced the MOU and noted the company approached the city to be the public-sector sponsor required by the grant rules. Wayne Garrett, general manager at Chief Ethanol Fuels, outlined an extensive modernization and expansion of the 41-year-old plant, including new fermentation and distillation equipment, a carbon capture/scrubber project already online, relocated wastewater treatment lagoons, and planned increases in grain storage capacity (reported in the record as about 2.5 million bushels). He said the company ships ethanol primarily by rail and that improvements will enhance efficiency.
Council members asked technical questions about whether the rail work was primarily for siding or larger track additions. Company representatives said the CRISI funding would be used to expand on-site siding and improve loadout so the plant could load two rail cars at once instead of one and better handle dried distillers grains shipments. A company representative said Chief expects to provide a significant local match (described as possibly 30–50%) and estimated the overall project would be well over $10,000,000.
After questions, the council voted to approve the MOU (motion by Brad Conzburg, second by Fawn); the motion passed unanimously, 7-0.
The MOU approval permits the city to act as lead applicant while company representatives continue to develop the grant application with FRA requirements and a consultant; future approvals will be required for project acceptance and local-match commitments.
