Biofuel-infrastructure bill receives hearing
On Monday, a bill that would allow more Minnesotans to access Unleaded 88 (fuel blended with 15% ethanol) and higher ethanol blends received an informational hearing at the state Capitol.
The Senate Commerce and Consumer Protection Finance and Policy Committee discussed the Liquid Fuel Modernization Act, which is sponsored by Sen. Gary Dahms (R-Redwood Falls) and Rep. Mike Sundin (DFL-Esko).
The bill would provide the resources needed for infrastructure improvements to allow every fuel retailer in Minnesota to offer higher ethanol blends within 10 years. Specifically, it would reimburse fuel retailers that replace equipment compatible with higher ethanol blends.
While it won’t be carried forward during the remaining weeks of the 2022 legislative session, Monday’s hearing sets the bill up for action in future sessions.
“This is a true win-win-win solution for Minnesota corn farmers, the ethanol sector and fuel retailers, but also will provide multiple long-term benefits, not only for the members of our association but for all Minnesotans,” said Amanda Bilek, Senior Public Policy Director for the Minnesota Corn Growers Association (MCGA).
[More: Watch the Senate Commerce and Consumer Protection Finance and Policy Committee discuss the Liquid Fuel Modernization Act]
Benefits of higher blends
Higher ethanol blends, such as Unleaded 88, have a host of benefits to consumers, rural communities and all Minnesotans. They reduce greenhouse gas emissions compared to standard gasoline, contain higher levels of engine-boosting octane and cost less at the pump.
Additionally, corn not only produces ethanol but also a high-protein animal feed called dried distillers grains.
While Minnesota has seen dramatic gains in the number of fueling stations offering Unleaded 88 and higher ethanol blends, there is still plenty of room for growth. A barrier to entry for some fuel retailers can be the cost of upgrading equipment compatible with higher-blend biofuels.
Funding for the proposed new biofuel-infrastructure 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.
“The proposed legislation would eliminate this bottleneck and allow the entire ag and biofuel-delivery industry to collectively solve the problem and benefit the motoring public,” Dahms said.
Collaborative effort
MCGA has worked with the Minnesota Petroleum Marketers Association (MPMA) on the bill. We thank MPMA for their efforts to advance the legislation and increase consumer access to higher ethanol blends.
“As fuel retailers, we want to meet this challenge and be ready for whatever the next decade and beyond brings for the future of liquid fuels,” MPMA Executive Director Tim Gross said. “[The Liquid Fuel Modernization Act] will provide for that challenge.”
Unleaded 88 has been offered for sale in Minnesota since 2013 and is currently available at more than 420 Minnesota fueling stations. Approved for use in more than 96% of vehicles on the road today, Unleaded 88 reduces costs at the pump — typically 3 cents to 20 cents per gallon— and ground-level ozone pollution compared to standard gasoline.
The significant increase in the number of stations offering Unleaded 88 in Minnesota has been in no small part because of the grassroots advocacy of Minnesota’s corn farmers. In 2021, for example, Minnesota’s corn farmers successfully advocated for a new state biofuel grant program. In total, the state allocated $6 million to the program for the current biennium (2022-23). MCGA, in conjunction with the Minnesota Corn Research & Promotion Council (MCR&PC) contributed an additional $1 million.
Applications for the program were open this past winter, and over 70 were received. They’re currently being reviewed, with funding decisions expected to be made this summer.
To learn more about the benefits of Unleaded 88, and to find a station offering the fuel near you, visit betterfuel.org.
The 2022 Minnesota legislative session will run through May 23. To read the latest updates on legislation affecting Minnesota’s corn farmers, visit mncorn.org/blog.
