Tenn. lawmakers approve funding for biofuels plant

A legislative panel that drew the ire of Gov. Phil Bredesen for delaying approval of a contract to operate a biofuels plant in East Tennessee has now signed off on the funding.

Bredesen had warned lawmakers that their hesitance over the pilot project in Vonore could threaten a major commercial investment related to the effort to turn corncobs and switchgrass into ethanol. The governor hasn't identified the company, but says an announcement could come as early as next month.

The Fiscal Review Committee on Wednesday voted 11-1 to approve the $11 million contract to operate the plant run by the University of Tennessee and DuPont Danisco.

Officials say the plant is scheduled to begin operations in December and that it will transition from using primarily corncobs to mostly switchgrass within a year.