Friday, November 20, 2009

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Minnesota has long been a leader in the biofuels movement. This week, the state took another bold step in promoting biofuels when Gov. Tim Pawlenty signed a bill increasing the current 2% biodiesel mandate to a whopping 20% by 2015.

According to the legislation, all diesel fuel sold in Minneseota must include 5% biodiesel by May 1, 2009; rising up to 10% on May 1, 2012; and to 20% on May 1, 2015.
 

State officials think so. They say implementation of the legislation starting in May of 2009 is timely and workable. "The supply from the current biodiesel production capacity in Minnesota already exceeds 64 million gallons, more than enough to meet the 5% requirement, which would be 40 million gallons," says Chuck Neece, Chairman of the Minnesota Biodiesel Council, which championed the legislation.

In addition, the bill allows the state to abandon the biodiesel requirement if the costs get too high or if there's a shortage of supply. There is built-in flexibility, including an approval process before moving to higher blends.

The legislation also fosters the use of non-traditional feedstocks to fulfill the mandate -- requiring that 5% of the feedstock come from non-traditional state agricultural resources – that includes algae, waste oils, and tallow, as well as other future feedstocks being researched in the state, such as cuphea (an oilseed plant that can grow on marginal soils) and industrial hazelnuts.
 

Even though the higher mandate is now law, both supporters and opponents of biofuels said during the House debate that rising oil and food prices mean the Minnesota Legislature will revisit this issue for years to come.