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Committee hears bill to allow B100 biodiesel at peaking plants for limited hours
Summary
Senate File 2018 would let electric utilities qualify use of 100% biodiesel at peaking facilities as carbon-free for up to 400 hours per year; supporters cited emissions reductions and farm benefits, opponents cited the 100% carbon-free statute and raised process concerns. The bill was laid over.
Sen. Weber introduced Senate File 2018 on March 19, which would allow an electric utility to use 100% biodiesel (B100) at a peaking facility for up to 400 hours per year and qualify that use as "carbon free technology" under state law. "This bill is permissive," Sen. Weber said, noting the measure would not require utilities to use B100 but would give them an option.
Andrew Dewar, representing the Minnesota Biodiesel Council, testified in favor and said biodiesel is a drop-in fuel often produced from soybean oil and that, in practice, peaking facilities operate only a few days a year. Dewar gave commonly cited carbon-reduction figures for biodiesel — a historical number of about 74% and industry estimates up to about 90% for efficient facilities and vegetable oil feedstocks in Minnesota — and said developers expect further improvements over time.
Opponents argued the bill conflicts with Minnesota’s 100% carbon-free law. Sarah Meradian, government relations and policy director for CURE (testifying on behalf of CARE during this portion of the hearing), argued the statute’s language is explicit: she said the law defines carbon-free electricity as technology that "generates electricity without emitting carbon dioxide," and that declaring fuels that emit carbon to be carbon-free would undercut the statute’s purpose.
Members asked whether the Public Utilities Commission could resolve such questions in an open docket and whether allowing this statutory exemption is an appropriate legislative response. Senator Dibble noted the PUC has an open docket on the question; Senator McEwen and others questioned whether the legislature should act before the regulatory process concludes. Supporters emphasized reliability and farm-economy benefits: Sen. Weber and supporters said limited B100 use at peaking plants could reduce emissions compared with conventional diesel and support Minnesota soybean farmers.
The committee laid SF 2018 over for possible inclusion in an omnibus package; members requested further analysis of lifecycle carbon calculations and coordination with the PUC docket before advancing the proposal.
