U.S. Department of Energy - Energy Efficiency and Renewable Energy

Alternative Fuels and Advanced Vehicles Data Center

Minnesota Incentives and Laws for Biodiesel

The list below contains summaries of all Minnesota incentives and laws related to Biodiesel.

State Incentives

Alternative Fuel and Technology Grants

The University of Minnesota's Initiative for Renewable Energy and the Environment offers various types of grants to promote statewide economic development; sustainable, healthy and diverse ecosystems; and national energy security through development of biobased and other renewable resources and processes. Eligible projects include those focused on environmentally sound production of energy, including transportation fuels such as hydrogen and biofuels, from renewable sources; development of energy conservation and efficient energy utilization technologies; energy storage technologies; and analysis of policy options to facilitate adoption of technologies that use or produce low-carbon renewable energy. Funds are available through 2012. (Reference Minnesota Statutes 116C.779)

Laws and Regulations

Biodiesel Blend Mandate

Diesel fuel sold or offered for sale in the state for use in internal combustion engines must contain at least 5% biodiesel (B5). Beginning May 1, 2012, during the months of April through October, diesel fuel must contain at least 10% biodiesel (B10). By May 1, 2015, diesel fuel must contain 20% biodiesel (B20) during these months. Diesel fuel sold during the remainder of the year must be B5. The Minnesota Department of Agriculture, Department of Commerce, and the Pollution Control Agency, in consultation with the Biodiesel Task Force and other technical experts, may allow the higher specified biodiesel blend levels to be effective year round if determined that an ASTM specification or equivalent federal standard exists for the specified biodiesel blend level that adequately addresses technical issues associated with Minnesota's cold weather and publish a notice in the State Register to that effect. Additional exceptions may apply. (Reference Minnesota Statutes 239.75 and 239.77)

State Agency Sustainability Plan and Requirements

State agencies must establish interagency teams to develop and implement sustainability goals that reduce state vehicle petroleum consumption. In addition, each state department or agency must prepare an annual sustainability plan that includes ways to modify vehicle use practices, and report annually on progress towards implementing their plan. Each state agency plan must be based on following targets and mandates:

Using 2005 as a baseline, the state must achieve a 50% reduction in gasoline used to operate state agency owned on-road vehicles by 2015;
Using 2005 as a baseline, the state must achieve a 25% reduction in the use of petroleum-based diesel fuel for state owned on-road vehicles by 2015;
When reasonably possible, state agencies must purchase on-road vehicles that use alternative fuels, including biodiesel blends of 20% (B20) or greater, compressed or liquefied natural gas, ethanol blends of 70% (E70) or greater, hydrogen, propane, or electricity, or (with the exception of buses, snowplows, and construction vehicles) have a fuel economy rating that exceeds 30 miles per gallon (mpg) in the city and 35 mpg on the highway;
When reasonably possible, state employees must fuel vehicles capable of operating on an alternative fuel with that fuel;
State agencies must increase the use of renewable fuels derived from agricultural products or waste products; and
State agencies must increase the use of technology for delivering information and services in order to reduce reliance on the state's fleet.

(Reference Executive Order 11-13, 2011, and Minnesota Statutes 16C.135 and 16C.137)

Biofuels Promotion

The Minnesota Department of Agriculture (Department) must pursue available resources to promote and increase the production and use of biofuels in the state. These efforts should include increasing the availability of E85 fuel dispensers and ethanol blends. The Department outlined the federal, state, and local opportunities under this initiative in their report to the Minnesota Legislature entitled Bioenergy Development. (Reference Senate File 2737, 2010)

Biofuel Use Requirement

State agencies must take all reasonable actions to develop the infrastructure necessary to increase the availability and use of E85 and biodiesel throughout the state. Employees using state vehicles are expected to use E85 fuel when operating flexible fuel vehicles, whenever E85 is reasonably available. The Minnesota's SmartFleet Committee sets goals for reducing state government consumption of petroleum-based transportation fuels and reports annually on the use of E85 in the state fleet. (Reference Executive Orders 04-10, 2004, and 06-03, 2006)

Biodiesel Definition

Biodiesel is defined as a renewable, biodegradable, mono alkyl ester combustible liquid fuel that is derived from agricultural plant oils or animal fats and meets ASTM specification D6751-08. A biodiesel blend is a blend of diesel fuel and biodiesel fuel (between 6% and 20%) for on-road and off-road diesel vehicle use. Biodiesel blends must comply with ASTM specification D7467-08. Biodiesel produced from palm oil is not considered biodiesel fuel, unless the palm oil is waste oil and grease collected from within the United States or Canada. (Reference Minnesota Statutes 239.761 and 239.77)

Regional Biofuels Promotion Plan

Minnesota has joined Indiana, Iowa, Kansas, Michigan, Ohio, South Dakota, and Wisconsin in adopting the Energy Security and Climate Stewardship Platform Plan (Platform), which establishes shared goals for the Midwest region, including increased biofuels production and use. . Specifically, the Platform sets the following goals:

Produce commercially available cellulosic ethanol and other low carbon fuels in the region by 2012;
Increase E85 availability at retail fueling stations in the region to 15% of stations by 2015, 20% by 2020, and 33% of all fueling stations in the region by 2025;
Reduce the amount of fossil fuel that is used in the production of biofuels by 50% by 2025;
By 2025, at least 50% of all transportation fuels consumed in the Midwest will be from regionally produced biofuels and other low carbon transportation fuels.

The Platform also establishes a regional biofuels corridor program. The program directs state transportation, agriculture, and regulatory officials to develop a system of coordinated signage across the region for biofuels and advanced transportation fuels and to collaborate to create regional E85 corridors. The program requires standardized fuel product coding at fueling stations as well as increased education for retailers about converting existing fueling infrastructure to dispense E85.