Alcohol Questions and Answers

Not long ago THE MOTHER EARTH NEWS® asked the Bureau of Alcohol, Tobacco, and Firearms Southeast Regional Regulatory Administrator, Mr. Dee L. Flynn, if he would be willing to speak candidly with us on the subject of alcohol-for-fuel . . . to detail just what the federal government expects of people, tell us how individuals might best meet the needs of his agency, and reveal the planned regulation changes that should make things easier on the "little guy". We think you'll find the exchange both interesting and informative.

MOTHER: We knew, when we published our interview with Lance Crombie in issue 55, that an experimental distilled spirits permit could allow a fuel "brewer" to take advantage of a little-known loophole in the federal laws governing al coholic beverage production. Could you tell us approximately how many experimental permits have been issued nationally to date?

FLYNN: Our records indicate that 3,657 two-year experimental distilled spirits permits have been issued.

MOTHER: Can an experimental permit be renewed, after two years, in the name of the party that previously held it?

FLYNN: Currently qualified experimental distilled spirits permits may be renewed only if the holder gives good cause... demonstrating that he or she is indeed engaged in the operations specified and is authorized by law to do so. However, as a result of the Crude Oil Windfall Profits Tax Act passed this year, a new category has been established in addition to the experimental status. It's been set up specifically for alcohol fuel producers, and—as of July 1, 1980—anyone applying for an experimental permit with the intent to make ethanol fuel is automatically considered for an "alcohol fuel producers permit".

MOTHER: Can you describe the individual's responsibility in obtaining bonding?

FLYNN: Existing experimental small fuel producers, and new alcohol fuel producers, may make and receive up to 10,000 proof-gallons—a proof-gallon is defined as one gallon of ethanol at 100 proof-per year without a bond. The bond requirements for plants producing more than 10,000 proof-gallons per annum will be determined by the amount of alcohol manufactured and received within a calendar year.

MOTHER: Must an extremely accurate record of the corn or other raw materials used for fermentation—and their solid residue weights—be kept by a small fuel producer? In other words, will the distiller incur considerable expense for the purchase of scales or other measuring equipment?

FLYNN: Only if he or she is operating a commercial plant. Experimental producers need only keep production records showing the date, kind, and quantity of raw materials used . . . and disposition reports indicating the date, quanti ty, and manner of the product's use or disposal.