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Committee advances bill to expand biofuels infrastructure program and raise retailer eligibility cap
Summary
House File 43, amended to increase the retail‑site cap from 15 to 20, would expand the Minnesota Department of Agriculture’s biofuels infrastructure grant program supporting E15 (unleaded 88) availability. The committee adopted the amendment and laid the bill over; testifiers cited consumer savings and increased E15 sales.
The House Ag Finance and Policy Committee on Feb. 26 considered House File 43, a bill to fund and expand Minnesota’s biofuels infrastructure grant program that supports retail upgrades to sell higher ethanol blends such as E15 (marketed as unleaded 88).
Chair Anderson said the program encourages use of E15 by helping retailers upgrade storage and pumps. He reviewed statewide usage figures cited by testifiers: average monthly E15 sales in 2024 were roughly 11.825 million gallons and, per testimony, E15 carried an average price discount of 16–17¢ per gallon last year—about $22.7 million in consumer savings statewide in 2024, he said.
Brian Werner of the Minnesota Biofuels Association described program outcomes: the program has helped push Minnesota past 500 retail stations offering E15 (about 25% of statewide stations), and MDA data show record statewide E15 sales of about 142 million gallons in 2024 (an 11% increase over 2023). Werner also noted federal regulatory changes: EPA announced a rule to allow year‑round E15 sales in several Midwestern states effective April 28; federal legislation is advancing that could authorize year‑round E15 nationwide.
The committee adopted an A1 amendment, offered by Chair Anderson, to change the eligibility cap from “15 retail dispensing sites” to “20 retail dispensing sites,” expanding the pool of retailers that may apply for grants. Mr. Savery, the fiscal analyst, told the committee the bill would appropriate $4.5 million in each fiscal year; the base is $3.0 million meaning the bill proposes $1.5 million above base in the upcoming biennium (the base returns to $3.0 million in later years in bill language presented).
Amanda Bilic, Senior Public Policy Director at the Minnesota Corn Growers Association, testified in support and noted the program’s return on investment and careful stewardship; she also said state programs are especially important because federal biofuels infrastructure funding is distributed nationwide and states can play a targeted role.
Why this matters: The bill aims to expand the availability of lower‑cost, higher‑octane fuel in Minnesota, support ethanol demand and processing, and reduce greenhouse gas emissions through higher ethanol blends; changes to retailer eligibility would broaden the types of applicants who can receive grants for pump and tank upgrades.
Committee action: The A1 amendment (raising the retailer cap to 20 sites) was adopted by voice vote. Chair Anderson renewed his motion that House File 43 be laid over in committee for possible inclusion in budget language; the committee laid the bill over. The transcript records voice votes rather than roll‑call tallies.
Ending: The bill remains under committee consideration; staff and testifiers encouraged members to consider local retail and producer impacts as budget decisions proceed.
