The Sullivan County, Tenn. Commission is expected to vote Monday on proposed tax increment financing for a new trash-into-ethanol plant in Bristol, Tenn., the Kingsport Times-News in Kingsport, Tenn. said.

Reclaimed Resources Inc. is planning to build waste-to-ethanol plant that will employ about 100 people within two years.

According to information presented to commissioners the plant will convert solid waste otherwise destined for landfills into ethanol and other useable products.

With the requested five-year TIF, the increase in property tax revenues would be earmarked to help fund the project. The business pays the property tax, but the difference between the old tax bill and the new tax bill is paid by the county to a redevelopment fund.

(Kingsport Times-News, Nov. 15, 2009)

(http://www.timesnews.net/…)

DTN: The use of tax increment financing to attract ethanol plants has been a significant risk for many rural communities. During the recent economic recession we've seen ethanol plants cease production and their futures come into question. As a result, some communities that have committed to TIF for up to 20 years at a time face the risk that some ethanol plants may not be viable. Other communities have made infrastructure improvements to help plants open shop. This means that some towns are on the hook for municipal bonds to help fund improvements to water supply, etc. If an ethanol plant is shut down and not using water, for example, some cities may have to raise water rates or take other measures to make sure bond payments are made. (Todd Neeley)