Purpose
Currently, all gasoline in Minnesota is blended with 10 percent ethanol—commonly referred to as “E10.” According to Minnesota Statutes §239.791, subdivision 1a, all gasoline sold or offered for sale in the state of Minnesota must contain 20 percent ethanol by August 30, 2013. Minnesota could meet this mandate either by increasing its sales of E85 and other midlevel blends, or by increasing the amount of ethanol blended into gasoline to 20 percent (E20). Current data indicates that Minnesota is unlikely to achieve this requirement through E85 and midlevel blend sales alone. To meet the requirement by selling all fuel in Minnesota as E20, the U.S. Environmental Protection Agency (EPA) must grant a waiver to the Clean Air Act, certifying E20 as a legal fuel. A waiver application must be submitted by industry that contains data demonstrating that E20 will not cause more pollution than gasoline and will not adversely affect engines or fuel and emissions control systems. Preliminary state and federal-level studies indicate that the use of E20 fuels does not present problems for current automotive or fuel dispensing equipment. However, much federal-level research is ongoing and must be completed before a waiver application can be submitted.
Statutory Requirement
Minnesota Laws 2005, Chapter 52, Section 4
The commissioner of agriculture, in consultation with the commissioners of employment and economic development and the Pollution Control Agency, shall review the information and data collected in the evaluation of any federal waiver request for the use of E20 fuel in Minnesota. The commissioner shall use existing budgetary and staff resources in conducting the review. The review must include:
- issues involving the use of E20 fuel if such fuel is mandated in Minnesota;
- effects of E20 on development of Minnesota's ethanol industry; and
- effects of E20 on Minnesota consumers.
The commissioner shall present an initial report to the legislative committees having jurisdiction over agriculture and environment policy and finance on the findings of the review to the legislature by January 15, 2009, and present an updated report to those committees on January 15, 2011.
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