20 Years Later: Minnesota's Biodiesel Legacy Leads the Nation

by Noah Fish (AgWeek) Minnesota became the first in the nation in 2005 to require a biodiesel blend in its diesel fuel. -- Twenty years ago, Minnesota farmers helped make history. In the fall of 2005, the state became the first in the nation to require a biodiesel blend in its diesel fuel, which was a milestone that launched a new era for soybean growers, energy independence and rural innovation.

For soybean farmers and biofuels advocates, it was a significant event when the B2 biodiesel law was implemented, changing the state’s energy landscape for good.

In 2002, following several years of leadership from MSGA (Minnesota Soybean Growers Association) and research funded by the Minnesota Soybean Research & Promotion Council, the biodiesel law passed the Minnesota Legislature.

Before receiving final approval from the Minnesota Department of Agriculture, biodiesel processors were required to produce 8 million gallons of B100. Between 2002 and 2004, three biodiesel plants were built across the state, exceeding that requirement.

The law officially took effect on Sept. 29, 2005, when B2 pumps began operating statewide. With implementation, Minnesota became the first state to mandate a biodiesel percentage in its diesel fuel.

The effort began as a grassroots collaboration between farmer leaders from both MSGA and MSR&PC. The Council helped fund research showing biodiesel’s benefits, while MSGA focused on policy and legislative outreach.

Since the 2002 mandate passed, Minnesota has steadily increased its biodiesel blend requirements. The most recent increase came in 2018, when the summer blend rose to B20, another national first.

Minnesota produces about 74 million gallons of biodiesel and consumes 77 million gallons, with 96% of what’s consumed coming directly from Minnesota farms. Since the B20 law took effect in 2018, biodiesel use has surged — and by 2022, Minnesota farmers were producing 60% of what was consumed in the state.

Biodiesel’s benefits also extend to the environment. Studies show it reduces greenhouse gas emissions by more than 50% and displaces about 130 million gallons of petroleum diesel in Minnesota each year. Using a B20 blend in summer and B5 in winter equates to removing the emissions from nearly a quarter-million vehicles annually.

After Minnesota opened the door, many states followed. In 2005, Washington became the second state to implement a mandate. Iowa state vehicles use B20 year-round, and Ames runs its snowplows on B100. Texas is now the top market for biodiesel and the No. 2 producer. Currently, 18 states have a biodiesel mandate, with California the top consumer. READ MORE