Walz Includes Biofuel Infrastructure Funding in Budget Proposal

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February 1, 2023

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by Erin Voegele (Ethanol Producer Magazine) Minnesota Gov. Tim Walz has included a proposed $1.5 million in annual in biofuel infrastructure funding in his proposed budget, which was delivered to the state legislature on Jan. 24. The Minnesota Bio-Fuels Association (MN Bio-Fuels) is applauding the proposed funding.

In the proposed budget, Walz recommends an appropriation of $1.5 million be allocated for each fiscal year (FY) 2024-2027 under the state’s Agricultural Growth, Research and Innovation Biofuels Infrastructure Financial Assistance Program. Grands awarded under the program help service stations upgrade their equipment, such as fuel dispensers, underground tanks, and associated equipment, to enable the sale of gasoline blends containing 15 percent or more ethanol. According to the budget, grants are to be made to service stations within the state that are independently owned or belong to chains of 10 stations or less.

Budget documents show that the Minnesota Department of Commerce estimates that 435 of the 3,100 retails stations within the state currently offer E15. The Minnesota Pollution Control Agency estimates that only 15 percent of service-station sites are currently compatible with E15, meaning 85 percent of sites need equipment upgrades. The total cost to bring all these stations to E15 compatibility is approximately $784 million, according to MPCA.

The Minnesota Department of Agriculture received $6 million in FY 2022-2023 funding for the Biofuels Infrastructure Financial Assistance Program, which also leveraged a $1 million contribution from the Minnesota Corn Growers Association. Grant applications requesting funds greatly exceeded the $7 million available for infrastructure upgrades. The budget documents estimate that the proposed $3 million recommendation per biennium would provide grants to approximately 20 retail fuel stations to enable the supply of E15 blends. READ MORE

Minnesota governor aims to increase Bioincentive Program funding (Ethanol Producer Magazine)

E15 SALES IN MINNESOTA EXCEEDED 100 MILLION GALLONS IN 2022 (Minnesota Bio-Fuels Association)

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