Blunt family has ethanol ties

Blunt family has ethanol ties
Governor’s brother stands to profit from state funds.

Published Tuesday, June 6, 2006

JEFFERSON CITY (AP) - Republican Gov. Matt Blunt has been a big supporter of the ethanol industry. He pushed for passage of an ethanol mandate for Missouri vehicles and increased state aid for ethanol and biodiesel producers.

Blunt

Now Blunt’s brother and several supporters have formed a new company that plans to invest in ethanol and biodiesel plants.

Andy Blunt, a lobbyist and political consultant who served as chairman of his brother’s 2004 gubernatorial campaign, confirmed yesterday that he is one of the founders of Central Missouri Biofuels LLC.

The company, formed May 24, lists its purpose as owning and operating ethanol and biodiesel production facilities, according to documents filed at the secretary of state’s office. It’s looking at investing in Show Me Ethanol LLC, another relatively new company holding fundraising meetings this week for a potential ethanol plant in Carroll County.

The company also is looking for other investment opportunities in renewable fuels or agriculture, including in the cattle industry.

The next state budget passed May 2 includes $13.8 million for incentives to ethanol and biodiesel fuel plants that have a majority ownership of farmers - more than double the $6.4 million in the budget when Matt Blunt became governor in 2005.

Lawmakers on May 11 passed a bill mandating that most gasoline sold in Missouri contain a 10 percent ethanol blend effective in 2008, so long as it costs no more than traditional gas.

Matt Blunt campaigned on the ethanol mandate in 2004 - a fact both the governor and his brother cited yesterday when asked whether there was a potential conflict between Andy Blunt’s new business and the legislation, now awaiting Matt Blunt’s signature to become law.

The governor dismissed suggestions of impropriety, saying the ethanol scenario was no different than if his brother had opened a manufacturing company after the governor’s policies on lawsuit limits and workers’ compensation restrictions improved the business climate.

The Missouri Democratic Party, however, accused Andy Blunt of profiting from his brother’s policies.

"I think it’s just another way Matt Blunt set up the system to help family and close friends make money off the taxpayers," said Corey Dillon, executive director of the state Democratic Party.

Among the others involved with Andy Blunt in Central Missouri Biofuels is Mike Kehoe, a Mid-Missouri auto dealer who helped on Matt Blunt’s campaign and was appointed by him to the Missouri Highways and Transportation Commission. Also involved are Thomas and John Kolb, co-owners of Jefferson City Oil Co. Inc. Thomas Kolb contributed the maximum $1,275 to Blunt’s campaign in March and contributed to his 2004 campaign.