The Mississippi Senate during Friday’s special session passed legislation approving an incentive package that will allow KiOR to build five biofuel plants in timber rich parts of the state, creating up to 1,000 jobs over five years.

House Bill 8 authorized $75 million in total loans for the company and $4 million for research and work force training. KiOR will use timber and wood chips to create a synthetic form of crude oil that will be refined into gasoline and diesel fuel. An additional $2 million grant will be divided between Alcorn State University and Mississippi State University for research into how other byproducts, like corn stalks, can be converted into synthetic crude.

KiOR plans a total investment of $500 million.

KiOR’s first site is expected to open in Columbus by late 2011, with facilities following in Newton County and near Franklin County, areas where an abundance of timber is located.

Other high points of KiOR:

4Will spend $85 million a year on salaries and purchases.

4Will pay its workers an average salary of $60,000 annually. Mostly engineers or mechanics will be employed there.

4 KiOR’s combined facilities will purchase 100-120 loads of timber and wood chips per day, providing increased work for truckers and loggers within a 30-40 mile radius around the plants.

4At combined full production, KiOR plans to produce 1,500-3,000 barrels of oil per day.

Also passed was Senate Bill 2004 that outlawed the sale and possession of the synthetic marijuana/incense, commonly known as “spice,” which cities across the state have banned in recent months. The bill, which becomes effective upon receiving the governor’s signature, gives retailers until Oct. 1, to return to wholesale distributors any unsold stock.

The sale of synthetic marijuana will be a felony. Possession of small quantities of the substance will be a misdemeanor punished in accordance with laws currently regulating marijuana possession.

The passage of House Bill 2 will allow Desoto County to construct a new jail, and the passage of House Bill 3 allows the city of D’Iberville to sell or lease long-term, city-owned property for construction of a casino and shopping center.

Senate Bill 2005, a measure that would have allowed McComb residents to vote on whether to create a 3-percent hotel tax to pay for tourism marketing and maintenance of parks and recreation facilities, died in the House Local and Private Committee, after passing the Senate.

Please feel free to call me at 601-359-3244 or e-mail me at kbutler@senate.ms.gov.

Kelvin Butler is a Mississippi senator representing a portion of Adams County.