Minnesota on Brink of Historic Renewable Fuel Requirement, Notes
NCGA (5-6-05)
Minnesota is steps away
from enacting legislation that requires 20 percent ethanol in the
state’s fuel, the National Corn Growers Association (NCGA)
notes. The state Senate Tuesday night and the House voted Thursday
to endorse the legislation, which will now move to Gov. Tim Pawlenty’s
desk for signing. The signing ceremony is expected on May 10 at
a local metro E-85 fueling station.
The legislation, a boon
for the state’s corn growers, will require the state to blend
20 percent ethanol in the fuel supply by 2013. “This sets
an example for the rest of this country when it comes to using renewable
sources for fuel,” said NCGA First Vice President Gerald Tumbleson,
a grower from Sherburn, Minn.
The bill does not necessarily
mandate an E20 blend, if the state can achieve 20 percent renewables
through other sources, namely biodiesel and E85. Tumbleson said
there is still a lot of work to be done to promote E85 use. However,
more than 130 stations in Minnesota sell E85. If the price differential
holds, Minnesota could double 2004 E85 sales of 2.7 million gallons.
Sales at retail pumps in April were up 285 percent from last year.
“This is an example
of a state taking control of its own destiny and not waiting on
Washington to solve the fuel problems of the nation,” said
Tumbleson. “It is important to note this legislation had bipartisan
support. It came down to what is good for Minnesota.”
NCGA has advocated that
the use of ethanol in the nation’s fuel supply will aid in
decreasing our dangerous dependence on foreign oil, will stimulate
the economy and improve the environment for all Americans. “NCGA
has been working for a comprehensive energy bill that includes a
renewable fuel standard (RFS) for over four years,” said Tumbleson.
“Ethanol will help decrease gasoline prices for the consumer.
This is why a comprehensive energy bill that includes renewable
fuels like ethanol is so important.”
“Our governor has
been a big help to Minnesota when it comes to renewable fuels,”
said Tumbleson. “He believes in renewable fuels, he believes
in the environment and he believes in agriculture in Minnesota.”
Tumbleson said ethanol’s
ability to moderate gasoline prices is clearly evident in Minnesota.
As of May 2, the average price of gasoline in Minnesota, all of
which is blended with 10 percent ethanol, was $2.02 per gallon,
more than 20 cents less than the national average of $2.24 per gallon.
Minnesota’s average gasoline price was 21 cents per gallon
higher May 2 than it was during the same week in May 2004. Nationally,
the average gasoline price for the same period is up 39 cents per
gallon.
Minnesota fueling stations
selling E-85 are priced anywhere from 30 to 60 cents less than E-10,
said Tumbleson.