Ag committee considers funding to make E15 gasoline more accessible

To promote the sale of biofuel, lawmakers have set a statutory goal that 30 percent of the total gasoline sold or offered for sale in Minnesota be biofuel by the year 2025.

To try and achieve that goal, the House Agriculture Finance Committee approved a bill Wednesday that would provide cost-share grants to help those who sell fuel install tanks and pumps to store and dispense gasoline blended with at least 15 percent ethanol.

Sponsored by Rep. Paul Anderson (R-Starbuck), HF1257 would provide $12.5 million for fuel retailers, who could receive grants for up to 25 dispensing sites, and wholesalers, who’d be eligible to receive funding for two storage sites.

The bill was laid over for inclusion in a possible omnibus bill. The companion, SF1277, is sponsored by Sen. Bill Weber (R-Luverne) and awaits action by the Senate Agriculture, Rural Development and Housing Finance Committee.

“Minnesota has some replacement petroleum goals, and this should be a good way to jump start that and move in the direction of more biofuels in the United States gas supply,” Anderson said.

Tim Rudnicki, Minnesota Bio-Fuels Association executive director, said the bill would help “connect the dots” between biofuel production and consumers.

In a release to the committee, the association wrote that E15 sales in Minnesota reached a record high of 5.68 million gallons in 2016 – double the 2015 volume. The organization also estimated HF1257 would enable 150 more retail stations to sell E15, which would increase usage in Minnesota up to 150 million gallons each year.

“We’ve seen when retailers have the option of offering E15 to consumers, they’re finding consumer interest,” Rudnicki said.