Governor’s Council on Biofuels Submits Recommendations for Growing Industry

(Minnesota Department of Agriculture) Report aims to help Minnesota meet renewable energy goals -- The Governor’s Council on Biofuels has given Gov. Tim Walz its consensus report on the steps needed to grow Minnesota’s biofuels industry and get the state back on track to meet renewable energy goals.

Walz charged the 15-member council to recommend policies to accelerate achievement of Minnesota’s biofuels and greenhouse gas reduction goals. The group worked over the past nine months to find ways to achieve this that help farmers, rural communities, the natural environment, and economically disadvantaged populations.

“I am a longtime supporter of biofuels because they are good for both our environment and our economy. A strong biofuels industry in Minnesota not only provides good-paying jobs and helps our economy grow, but it also aids in reducing harmful greenhouse gases,” said Governor Tim Walz. “I am grateful for the work of each member of the Council, and I look forward to reviewing the full set of recommendations.”

The Council’s recommendations (pdf) include accelerating the state’s move toward 15% ethanol content in gasoline; adopting a Low Carbon Fuel Standard; increasing biofuels use in the state fleet; increasing public understanding and marketing of biofuels; and developing advanced biofuels.

“Agriculture has a big role to play in helping our state achieve its renewable energy goals,” Minnesota Agriculture Commissioner Thom Petersen said. “I want to thank all the council members for helping us figure out how to move Minnesota toward those goals in a way that will be good for producers and consumers.”

Minnesota adopted statutory goals in the 2007 Next Generation Energy Act to replace 30% of the state’s petroleum use with biofuels by 2025. But is not on track to meet those goals, due to a combination of low market prices and changes in federal policy.

”Gov. Walz, Lt. Gov. Peggy Flanagan and Commissioner Petersen convened us to ensure that Minnesota homegrown biofuels play a vital role in Minnesota’s response to the climate challenge,” said Mike Bull, director of policy and external affairs at the Center for Energy and Environment, and a member of the council. “I’m thankful for their leadership and grateful to my fellow council members for our good work together.”

The biofuels industry provides important markets for agricultural commodities and generates an estimated $6.7 billion in annual economic impact.

Members of the council represented the biofuels industry, agricultural and farm groups, the service station industry, the wood products industry, and energy and environmental organizations.

“Our Biofuels Council approved the final report today culminating from a year of work among the stakeholders,” said Brian Thalmann, board member of the Minnesota Corn Growers Association, and a member of the council. “It recognizes the value that expanded biofuel use will provide to Minnesota’s citizens and the environment and provides recommendations to accelerate achievement of our petroleum replacement goals. I look forward to engagement by the stakeholders moving forward as we work with state officials in the implementation of these ideas.”

The Minnesota Department of Agriculture (MDA) facilitated the Council’s work. Find more resources about the Council’s goals and view the report on the MDA’s website. READ MORE

Excerpt from Minnesota Bio-Fuels Association: The Governor’s Council on Biofuels, earlier this month, set forth some constructive recommendations for attaining at least 25 percent volume ethanol in Minnesota by 2025, stimulating enhanced production efficiency of biofuels and helping to reduce Greenhouse Gas emissions in the transportation sector. These recommendations, when taken as a package, chart a very positive future for ethanol in Minnesota.

Five key recommendations of the Council, if fully implemented, hold the potential to boost the agriculture sector, significantly increase demand for renewable ethanol over more carbon intensive petroleum and renew Minnesota’s leadership role on ethanol issues.

One of the recommendations calls for making the transition from the standard E10 fuel to E15. Most notable in these recommendations is the realization that many fuel retailers will need some type of financial assistance to properly upgrade their fuel storage and dispensing systems to offer the better emission reduction E15 to Minnesotans. Interestingly, the Council also calls for equipment standards that will enable fuel retailers to offer even E25 at some point in time.

In its wisdom and foresight, the Council also set the course for work on a Clean Fuels Program. Absent action by the Minnesota Legislature in the 2021 session, the recommendation calls for the use of a working group to chart a course of action. If properly constructed, a CFP holds the potential to stimulate further reductions in transportation sector GHG emissions while giving a boost to Minnesota agriculture. Agriculture holds tremendous potential for reducing and sequestering GHG emissions. Therein rests an important tool and economic opportunity for farmers.

While it seems straightforward, there are a number of hurdles to getting E85 and E15 into state fleet vehicles. Council recommendations call for the Governor to use an Executive Order to make biofuels a priority for use in State vehicles. This is where the Minnesota Bio-Fuels Association biofuel locator app can of service - rather than paper documents in vehicles, state employees can simply use the app to find the nearest fuel retailer that offers E15 and higher bends.

Most of us know the level of disinformation that surrounds ethanol. Given the challenges on this front, the Council calls for a coordinated communications and education program to provide Minnesotans with the facts about homegrown and produced ethanol and to provided a stable source of funding.

Lastly, the Council calls for increased funding to the bioincentive program. This is a sure path to boosting the production of advanced biofuels and further lowering their carbon intensity thereby making it an even greater value to Minnesotans.

Although the Minnesota ethanol industry is confronted with some short-term challenges due to the Covid-19 crisis, implementation of the Councils recommendations suggest a positive future and some new paths for renewable ethanol in Minnesota to boost the economy and reduce GHG emissions. READ MORE