Minnesota Governor expected to sign B20 biodiesel mandate

In Minnesota, Governor Tim Pawlenty has received and is expected to sign legislation that will increase the biodiesel mandate in the state from B2 to B20 by 2015. The bill passed 64-0 in the State Senate and 123-2 in the state House.
Minnesota has an E-20 mandate that will take effect in 2013. Currently Minnesota has an E10 mandate in place, and was the first state (in 2005) to establish an E10 standard. Implementation of the E20 mandate is contingent on obtaining federal approval to use E20 blends.

Most recently in biofuels, the Minnesota Department of Commerce’s Office of Energy Security awarded $150,000 to Chippewa Valley Ethanol for an evaluation of the plant’s process for producing energy from corn cobs. The plant utilizes the cobs to provide heat fro the plant, in lieu of natural gas.

Meanwhile, the state government is preparing plans for ending subsidies to ethanol plants in the state. The last payments, under a state plan designed to incentivize ethanol production in the state, are scheduled for 2010, and only six plants are still receiving per-gallon incentive payments.

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