Minnesota Doubles Summer Biofuel Mandate For Diesel
On August 3, 2017, Minnesota Governor Mark Dayton announced that the state will implement a new biodiesel standard in May 2018 that will increase the biodiesel blend mandate from 10 percent (B10) to 20 percent (B20) between April and September each year. Currently under the state’s biodiesel program, diesel fuel sold in Minnesota must contain at least 10 percent biodiesel during the summer months, with the blend lowering to 5 percent from October to March. While the new mandate doubles the blend requirement during the summer months, the mandate will revert back to 5 percent over the winter months unless state officials and technical experts determine that accepted federal standards deem certain higher blends as suitable for year-round use in Minnesota.
Since a large portion of Minnesota’s biodiesel is made from homegrown soybeans, the new standard is expected to add an average of 63 cents to the market price of a bushel of soybeans for Minnesota farmers, and reduce carbon dioxide emissions by approximately 1 million tons next year. Minnesota’s biodiesel industry is estimated to contribute more than $1.7 billion annually to the economy, with the state’s three biodiesel plants producing a combined 74 million gallons of biodiesel annually.