Minnesota Introduces Bill to Increase Ethanol in Gasoline

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• H.F. 3520 increases the standard biofuel blend at Minnesota gas stations to 15% ethanol blend (E15). The current standard is 10%. No other state uses E15 as a standard blend.
   
• H.F. 3520 ignores marketplace economics in favor of arbitrary government mandates.
   
• H.F. 3520 disregards the fact that ethanol, especially in higher concentrations such as E15, can cause metal corrosion and dissolve certain plastics and rubbers in automobiles that were not constructed with ethanol-resistant materials. High-performance specialty parts, along with older cars and parts, may be most susceptible to such corrosion.
   
• H.F. 3520 fails to provide adequate safeguards for vehicles whose life spans can be reduced by misfuelling and subsequent corrosion of integral vehicle and equipment parts. Anti-corrosion additives are available for each purchase of gasoline but can become expensive, burdensome and require consumer education.
   
• H.F. 3520 does not acknowledge that ethanol has been shown to decrease fuel mileage.
   

Overview: Minnesota has introduced SAN-opposed legislation (H.F. 3520) to increase the standard biofuel blend to 15% ethanol. Currently there is a 10% state-wide standard, and there is an exemption in place for those selling or dispensing limited quantities of nonoxygenated gas for collector vehicles. This legislation would create a similar exemption for vehicles not approved to use more than 10% biofuel, which includes all model year 2000 and older vehicles. There is also an exemption for retailers who sell less than 500,000 gallons of gasoline/biofuel per year who are not equipped to store and dispense E15. In recent years, the state has introduced similar bills which have failed to be approved by their respective committees. The bill awaits consideration in the House Commerce Finance and Policy Committee.