Minnesota

POPULATION (2015): 5,489,594

REGISTERED CARS & LIGHT TRUCKS: 4,973,081

ANNUAL GAS CONSUMPTION (2014): 2.5 Billion GPY

TOTAL RETAIL STATIONS: 2,177

Maximum E85 use:470 Million GPY
FFVs in use:532,065
E85 stations:377
Flex Station implied demand:+29
Maximum E15 use:2 Billion GPY
EPA approved E15 vehicles:3,978,465
E15 Station implied demand:+1,742

Fuel specifications

Gasoline:

Conventional

Reid Vapor Pressure:

On a retail level, all counties use 9.0 psi RVP from June 15-September 15.

Contact information for key state regulatory agencies

Department of Commerce (Weights and Measures Division), 651-539-1555

State Laws & Incentives

Ethanol Fueling Infrastructure Grants
The Minnesota Department of Agriculture offer funding assistance to fuel retailers for the installation of equipment to dispense ethanol fuel blends ranging from E15 through E85. Grant amounts are based on the extent to which the installation meets project priorities. For more information, refer to the Clean Air Choice Minnesota Biofuel Infrastructure Projectwebsite. (Reference Minnesota Statutes 41A.12)

Point of Contact 
Jon Hunter 
Director 
American Lung Association in Minnesota 
Phone: (651) 268-7601 
Fax: (651) 227-5459 
jon.hunter@lung.org 
http://www.cleanairchoice.org/cities 

 

Biofuel Production Grant Program
The Minnesota Department of Agriculture provides grants to biofuel producers for up to $2.1053 per million British Thermal Unit (MMbtu) for advanced biofuel produced from cellulosic biomass and $1.053 per MMbtu for advanced biofuel produced from sugar- or starch-based crops. Eligible facilities must obtain 80% of their feedstocks from Minnesota; begin production by June 30, 2025; and not produce more than 23,750 MMbtu of biofuel quarterly before July 1, 2015. Additional requirements apply. Payments will not be made for production that occurs after June 30, 2035. For more information, see the Advanced Biofuels Production Incentive Program website. (Reference Minnesota Statutes 41A.16 and 239.051)

Alternative Fuel Tax
The Minnesota Department of Revenue imposes an excise tax on the first licensed distributor that receives E85 fuel products in the state and on distributors, special fuel dealers, or bulk purchasers of other alternative fuels. E85 is taxed at the pump at a rate of $0.2025 per gallon, pure biodiesel (B100) is taxed at $0.285 per gallon, propane is taxed at $0.2135 per gallon, liquefied natural gas is taxed at $0.171 per gallon, and compressed natural gas is taxed at the rate of $2.50 per thousand cubic feet. Gasoline is taxed at the rate of $0.285 per gallon. Exemptions apply. Fuel excise tax rates are updated July 1 of each year and are posted on the Minnesota Fuel Excise Tax Rates and Fees website. (Reference Minnesota Statutes 296A.07 and 296A.08)

Authorization for Biofuel Incentive
The Agricultural Growth, Research, and Innovation Program may offer grants, loans, or other financial incentives to alternative fuel retailers for the installation of ethanol blender pumps or other rural economic infrastructure activities, or to producers of transportation fuels from cellulosic material or bio-based products. The program will remain in effective through June 30, 2025, with funding subject to legislative appropriation. (Reference Minnesota Statutes 41A.12)

Biofuel Blend Mandate
All gasoline sold or offered for sale in Minnesota must contain at least:

  • 10% corn-based ethanol by volume or the maximum percent by volume of corn-based ethanol authorized in a waiver issued by the U.S. Environmental Protection Agency (EPA), whichever is greater; or
  • 10% other biofuel authorized in an EPA waiver by volume, or a biofuel formulation registered by EPA under Title 42 of the S. Code of Federal Regulations, section 7545.

Biofuel is defined as renewable fuel with an approved fuel pathway under the Energy Policy Act of 2005, as amended under the Energy Independence and Security Act of 2007.

Any biofuel may be used to meet the standards above, but corn-based ethanol may not comprise more than the following percentages of the total biofuel use in the state by the date specified:

(Reference Minnesota Statutes 239.761 and 239.791)

Minnesota Biofuels Replacement Goals
The Minnesota Department of Weights and Measures promotes the replacement of petroleum used in the state with the goal that biofuels will account for at least the specified percentage of all gasoline offered for sale by the dates below:

(Reference Minnesota Statutes 239.7911)

Ethanol Fuel Blend Dispensing Regulations
Gasoline blended for use in an alternative fuel vehicle (AFV) may contain any percentage of agriculturally derived, denatured ethanol, up to and including 85% (E85). Ethanol and gasoline blended at the point of retail sale in an ethanol-blending fuel dispenser must be clearly labeled "FLEX-FUEL VEHICLES ONLY." If a retailer sells both ethanol blends for use in AFVs as well as ethanol blends for use in standard combustion engines, the ethanol blends for use in a standard combustion engine must be dispensed from dedicated hoses, nozzles, or other equipment, and clearly labeled for use in conventional vehicles. Retailers are not responsible for customers' self-service fueling actions as long as they meet these requirements. (Reference Minnesota Statutes 239.761 and 296A.01)

Federal Incentives

Alternative Fuel Infrastructure Tax Credit
(Originally expired 12/31/13 - retroactively extended through 12/31/16, by H.R. 2029) Fueling equipment for E85 installed between January 1, 2014, and December 31, 2016, is eligible for a tax credit of 30% of the cost, not to exceed $30,000. Station owners with multiple locations can use the credit towards each site. For more information about claiming the credit, see IRS Form 8911.

Ethanol Infrastructure Grants and Loan Guarantees
The Rural Energy for America Program (REAP) provides grants and loan guarantees to rural (population less than 50K) small businesses to purchase renewable energy systems or make energy efficiency improvements. Eligible renewable energy systems include equipment used to distribute flexible fuels. The maximum grant funding is 25% of project costs and the maximum loan guarantee is $25 million. The program is funded through fiscal year 2018 but is subject to congressional appropriations thereafter. For more information, see the REAP website.

Point of Contact
Office of Rural Development, Business and Cooperative Programs
U.S. Department of Agriculture
Phone: (202) 690-4730
http://www.rurdev.usda.gov/

Ethanol plant direct E85/ethanol sales

Current ACE members that offer E85/direct ethanol sales in this state include:

Al-Corn Clean Fuel (Claremont)
Denatured ethanol:
Todd Kruggel – RPMG,
Email: toddk@rpmgllc.com; Phone: 952-465-3227
Patrick Griffin Boyle - RPMG,
Email: pboyle@rpmgllc.com; Phone: 952-465-3234

Bushmills Ethanol, LLC (Atwater)
Erik Osmon: 320-974-8050
Chippewa Valley Ethanol Co, LLLP (Benson)

E85:    
Chad Friese – Chippewa Valley Ethanol Company,
Phone: 320-843-4813.
Denatured ethanol:
Todd Kruggel – RPMG,
Email: toddk@rpmgllc.com; Phone: 952-465-3227
Patrick Griffin Boyle - RPMG,
Email: pboyle@rpmgllc.com; Phone: 952-465-3234

Granite Falls Energy, LLC (Granite Falls)
Matt Carter - EcoEnergy: 615-786-0404

Highwater Ethanol, LLC (Lamberton)
Denatured ethanol:
Todd Kruggel – RPMG,
Email: toddk@rpmgllc.com; Phone: 952-465-3227
Patrick Griffin Boyle - RPMG,
Email: pboyle@rpmgllc.com; Phone: 952-465-3234

Click here for a complete list of domestic ethanol producers and sales contacts for E85/direct ethanol sales

E15/Flex Fuel Profit Estimate
line
Minnesota
AVG STATION (96,500 GPM)
Average Retailer:
New gallons/$$/Mo E15 & Flex: 17,800 $3,000
New Customers/Mo:+1,980 
Additional Merch. Margin from above:$5,800
RINs not applied to reduce price:$860
line
TOTAL NEW PROFIT/MO  $9,660
Top Performing Retailer:
New gallons/$$/Mo E15 & Flex:42,300$7,000
New Customers/Mo:+4,696 
Additional Merch. Margin from above:$13,700
RINs not applied to reduce price:$2,400
line
TOTAL NEW PROFIT/MO  $23,100

Want to see what E15/Flex fuels could do for your operation?

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You’re thinking about adding or switching to a new fuel grade on your product slate, and you’ve considered premium and diesel, because those are the fuels all station owners consider. But today, the market is different, and you’re curious about what E15, E85, and other flex fuels could do for your business. Good move.

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