Legislation introduced in the Minnesota House of Representatives on March 17 aims to create a reimbursement program that would help fuel retailers install equipment compatible with higher blends of ethanol and biodiesel. The bill, tilted the Liquid Fuel Modernization Act, or HF 4328, is supported by the Minnesota Corn Growers Association.

Beginning on July 1, 2022, the bill would impose a liquid fuel modernization fee on the use of tanks that contain petroleum products. The rate of the fee would be set at $13 per 1,000 gallons, which equates to 1.3 cents per gallon. The fee would be in place through June 30, 2023.

Proceeds from the liquid fuel modernization fee would be used to reimburse eligible entities for a portion of the costs to acquire and install eligible fuel infrastructure. Reimbursements would be limited to 65 percent of total reasonable equipment and labor costs, with a cap of $800,000 per eligible entity each year. Applicants must use the eligible fuel infrastructure to offer higher blends of biofuel for sale at the retail fueling site or to store higher blends of biofuel at the bulk plant. Higher blends of biofuel are defined as gasoline blends containing more than 10 percent ethanol and diesel blends containing more than 20 percent biodiesel.

MCGA has spoken out in support of the bill, noting it aims to provide the resources needed for infrastructure improvements enabling every fuel retailer in Minnesota to offer higher ethanol blends within the next decade. According to MCGA, the program would aim to reimburse $52 million annually for equipment replacements at fuel retailers.

A full copy of HF 4328 is available on the Minnesota Legislature website.