For more information contact: Jason Wenisch 651-296-2317
Much State Capitol discussion recently has centered on ethanol. According to a bill that has been approved in our House Agriculture Policy Committee, all gasoline sold in Minnesota would contain at least 20 percent ethanol by Jan. 1, 2010, or 60 days after half of the new model automobiles being sold in Minnesota carry warranties for the new fuel.
Based on this newfound support for increased ethanol usage, I have co-authored legislation that would provide a tax credit to gas stations in order to install an E85 pump, which would distribute a fuel that would be 20 percent ethanol.
Stations would receive a one-time $20,000 credit to fund the installation of an E85 pump. This bill supports other legislation that would increase the minimum content of ethanol in Minnesota gasoline.
Since corn prices remain low, vertical integration from the bottom up has the potential to create long-range profitability for farmers and rural communities. The Minnesota Ethanol Program was formed to build a new market for the state’s largest crop, develop processing facilities in the state, as well as help meet EPA standards set for the Twin Cities Area.
Currently, ethanol’s economic impact on Minnesota has created $587 million in output and has created 2,562 jobs. About 14 percent of Minnesota’s crop or 140 million bushels of corn are made into ethanol and livestock feed yearly. Minnesota’s 14 plants can create 380 million gallons of ethanol each year. Close to 10 percent of our gasoline is being replaced with ethanol as 10 percent blends are required statewide.
Furthermore, the Twin Cities Area met EPA carbon monoxide standards partly through the use of ethanol. By processing corn products instead of exporting raw corn, the value of each bushel nearly doubles. In addition to the creation of ethanol fuel, corn produces 1 million tons of high protein livestock feed plus other products including; industrial ethanol, starch, sweeteners, and carbon dioxide.
I believe this legislation is welcome news for our corn growers and it will help improve economic development in rural Minnesota. Increasing the use of a renewable fuel is a common-sense decision. It’s good for the environment, good for our farmers, and it reduces our reliance on foreign oil. And if this increase in ethanol production is going to take place, we should have the means to provide it to motorists, especially those in Greater Minnesota.