Legislative Update: Biofuels infrastructure included in Governor’s budget proposal
By Amanda Bilek, senior public policy director for the Minnesota Corn Growers Association
We are now in the third full week of the Minnesota Legislative Session. Up to this point, various committees in the House and Senate have been conducting introductions and receiving overviews of state agencies and programs within their committee jurisdiction. A few bills have been heard in committee but the pace of bill introduction is much slower this year given the more difficult nature of writing and processing bills with staff mostly working remotely.
However, one of the first milestones in any legislative session occurred today. The Governor unveiled his administration’s proposed budget for the 2022-2023 biennium. A February budget forecast will lead that will likely lead to adjustments in the Governor’s proposed budget and legislative leadership in each the House and Senate will set budget targets for legislative finance committees. Work will ramp up in assembling a House and Senate two-year budget position that will be negotiated with the administration to reach final agreement on the next two year budget for the State of Minnesota. A two-year budget agreement will be the major work of the legislative session.
The budget presented today from Governor Walz and Lt. Governor Flanagan is based on the November forecast showing a project budget deficit of $1.3 billion for the next two-year budget period. Overall the proposed budget proposes $1.6 billion in new revenue for an overall budget proposal of $52.4 billion. There is a lot to unpack in the budget proposal but want to highlight a few items that are especially important to corn farmers and match with some of the legislative priorities of the Minnesota Corn Growers Association.
At the Minnesota Department of Agriculture, the administration is proposing $2 million per year for a new biofuels infrastructure grant program. It is important to note that this a new ongoing proposed infrastructure program. Grants would be used to make higher blends, including E15, the new regular fuel in Minnesota. Program funding for biofuels infrastructure complements MCGA’s top legislative priority to increase Minnesota’s biofuel standard from 10 to 15 percent. MCGA is working to help advance legislation on the biofuel standard and grants to fuel retailers to upgrade or replace infrastructure to store and deliver high blends of ethanol to consumers which will improve air quality, improve the market for ethanol and support Minnesota corn farmers.
Other items proposed at the Minnesota Department of Agriculture worth noting are:
- Increase ag and non-ag pesticide license fees to 0.9 percent
- $100,000 one-time funding for international trade expansion with a focus on SE Asia market
- $1 million each year for the Agricultural Best Management Practices (AgBMP) Program
- $500,000 one-time funding for Climate Smart Farm Establishment
- $750,000 increase per year for the Bioincentive Program
The MDA budget also includes ongoing spending increases for farmer mental health and advocates, noxious weeds and one-time spending increases for Livestock Processing Grants to name just a few other items.
Base funding for the Agriculture Research Education and Extension Technology Transfer Program (AGREET) is maintained in the budget proposal.
As the budget process continues to develop, we will be sure to keep you updated on developments along with developments on MCGA’s other legislative priorities.
Be sure to follow the MCGA blog and its social channels (Facebook, Twitter) for updates. You can also follow me on Twitter (@AjBilek).
