Bill increasing biofuel availability heard
A bill that would increase the availability of higher biofuel blends in Minnesota — a priority of the Minnesota Corn Growers Association (MCGA) — is taking its first steps this week at the state Legislature.
SF1246 is sponsored by state Sen. Rob Kupec (DFL-Moorhead). It would allocate $12 million for grants to help small fuel retailers install equipment compatible with higher biofuel blends. The state would distribute funds in 2024 and 2025.
On Monday, the Senate Agriculture, Broadband, and Rural Development Committee heard the bipartisan bill. The legislation has support from a coalition of agriculture and biofuel organizations. That includes MCGA, the Minnesota Biofuels Association the Minnesota Farm Bureau Federation, the Minnesota Farmers Union.
The bill’s companion, HF1474, is sponsored by state Rep. Luke Frederick (DFL-Mankato). The House Agriculture Finance and Policy Committee will hear the bill Thursday.
Higher biofuel blends like Unleaded 88/E15 and E85 reduce greenhouse gas emissions and improve air quality. They support family farmers and rural communities and save consumers money at the pump. The production of biofuels results in high-value coproducts such as corn oil and high-protein dried distillers grain animal feed.
More than 420 of 2,620 Minnesota fuel stations offer E15, and 461 fuel stations sell E85. In recent years, the number of stations offering both blends has increased, thanks in part to state and federal investments in biofuel infrastructure.
[More: Watch video of the hearing on SF1246]
In 2021, the Minnesota Legislature allocated $6 million for biofuel infrastructure grants. The Minnesota Corn Research & Promotion Council, MCGA’s partner organization, contributed an additional $1 million to the grant program, which is helping 44 fuel stations upgrade to equipment compatible with higher biofuel blends.
Cost-share grants
SF1246 would provide fuel stations with up to 65% of the costs of upgrading fuel dispensers, storage tanks, and other equipment needed to sell higher biofuel blends. The state would limit grants to $200,000 per station and to retailers with 10 or fewer locations.
Gov. Tim Walz has proposed funding for biofuel infrastructure grants in his 2024-25 budget.
“Senate File 1246 is a step in the right direction toward our goal of finding long-term, ongoing funding for biofuel infrastructure,” MCGA President Richard Syverson said in a statement. “We appreciate the bipartisan group of House and Senate members who are sponsoring this bill. We look forward to working with policymakers to continue increasing access to higher biofuel blends statewide.”
