For more information contact: Ben Schweigert 651-296-5809
Representative Gene Pelowski (DFL-Winona) today praised the passage of a bill that will increase the amount of ethanol in fuel sold in Minnesota, saying the measure will allow Minnesota to remain a leader in ethanol production and ease the state's dependence on foreign sources of energy.
"With the passage of this bill, Minnesota moves one step closer to becoming the Middle East of the Midwest when it comes to energy production," said Pelowski, one of the bipartisan group of representatives who pushed the measure through the House. "For most of our history, Minnesota has been at the end of the energy pipeline, but today we took a huge step toward ensuring that Minnesota remains a leader in the use and production of renewable energy and fuels."
Under the bill, the minimum content requirement for ethanol in fuels sold in Minnesota will be increased from 10% to 20% by August 30, 2013. The bill also sets a goal of replacing 20% of all liquid fuel with renewable fuels by 2015.
"We’ve been suffering through another one of those sticker shock stretches at the gas pumps as gas prices surged well above $2 in places throughout the state," Pelowski said. "Prices will remain at that level until we reduce our demand for foreign oil. Increasing the amount of ethanol we use in our cars and trucks is one way to reduce our demand for Middle East oil. It's also better for the environment."
He said that in addition to helping wean the state off of foreign oil, the measure will also provide a significant boost to the rural economy.
"By increasing the demand for ethanol, we're adding value to corn produced in Minnesota and we're adding that value here in Minnesota," he said. "That in turn is going to create good-paying jobs in rural areas of the state and pump money back into our economy. It will also help the economy of the metro area, where high gas prices are wreaking havoc on family budgets and the bottom lines of Minnesota businesses."
Pelowski said the ethanol industry now generates an estimated $1.36 billion to the economy and is responsible for 5,300 jobs. This measure will increase the impact to the economy $1.58 billion and create and additional 1,200 jobs.
Most of the debate on the floor centered on claims by opponents that higher-content ethanol blends will reduce gas mileage and cause problems with engines. Pelowski, however, said those arguments have been refuted with the experience of the 10 percent blend currently in use and the use of E-85 blends (85 percent ethanol, 15 percent gasoline).
"They trotted out the same tired old arguments they used when ethanol blends were first approved," Pelowski said. Those charges were false then and they're false now."
Pelowski said the eventually passed because most legislators saw it as a win-win-win measure for agriculture, the economy and the environment.