MCGA-supported biofuel-infrastructure bill introduced
An effort by the Minnesota Corn Growers Association (MCGA) to ensure that all Minnesota consumers have access to cleaner-burning Unleaded 88 and higher ethanol blends is taking shape at the state Capitol.
On March 17, state lawmakers introduced the Liquid Fuel Modernization Act, an MCGA-supported bill that would provide the resources needed for infrastructure improvements enabling every fuel retailer in Minnesota to offer higher ethanol blends within 10 years.
Sponsored by Rep. Mike Sundin (DFL-Esko), the bipartisan bill would reimburse fuel retailers that replace equipment compatible with higher ethanol blends. Minnesota has an aging fueling infrastructure and nearly 80 percent of underground storage tanks (USTs) are older than 20 years. USTs manufactured today are compatible with E100 so replacing tanks now will ensure Minnesota has the infrastructure in place to enable even higher blends of ethanol in transportation fuel.
Funding for the program, which would be administered by the state Department of Commerce, would come from a new 1.3-cent-per-gallon fee on petroleum products. The goal would be to reimburse $52 million annually for equipment replacements at fuel retailers.
[Learn more: Read about other MCGA advocacy efforts]
The bill stems from efforts by MCGA and the Minnesota Petroleum Marketers Association (MPMA) to increase the use of ethanol-blended fuels while ensuring fuel retailers have a stable, long-term funding source for biofuel infrastructure. Among its many benefits, the legislation would:
- increase consumer access to Unleaded 88 (also known as E15), midlevel ethanol blends and E85;
- ensure family fuel businesses and co-ops can offer higher biofuel blends;
- support rural farm families by adding value to the ethanol already produced in Minnesota; and
- create jobs with fuel equipment suppliers and in the service industry; and
Unleaded 88, on average, costs 3 cents to 40 cents less per gallon at the pump than regular unleaded. Ethanol-blended fuels, such as Unleaded 88, also reduce greenhouse gas emissions compared to regular unleaded and contain higher levels of engine-boosting octane.
MCGA is grateful to the bipartisan lawmakers who are sponsoring this bill. We also thank MPMA for working together on this proactive effort to ensure that all Minnesota consumers have access to higher ethanol blends. We’re proud to advocate for legislation that would effectively move Minnesota to an E15 standard while supporting fuel retailers and rural communities.
[Read more: MCGA, national partners continue ethanol efforts]
More broadly, MCGA continues to seek out ways to advance policies that support ethanol at the state and federal level. E15 and higher ethanol blends deliver lower carbon emissions today while reducing costs at the pump for consumers and supporting local farmers and ethanol plants. MCGA supports the development of homegrown biofuels and will continue to work with our state and federal champions on policies that increase access to this cleaner-burning, lower-cost fuel.
To learn more about the many benefits of ethanol-blended fuels, and to find a station near you, visit betterfuel.org.
