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ConAgra Foods has dropped plans to build an ethanol plant in Clovis.

Last month, the state Environmental Improvement Board ordered another hearing on the plant after groups that opposed it appealed the Environment Department's decision to issue an air-quality permit for the facility.

A spokeswoman for ConAgra Foods in Omaha, Neb., on Tuesday said the company withdrew its application for an air-quality permit and had no plans for a Clovis plant.

The decision to drop the project was based on increased construction and operating costs, as well as volatility in the ethanol market, she said.