minnesota

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:743,967
E85 stations:297
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 incentives

Ethanol Fueling Infrastructure Grants
The Minnesota Corn Research & Promotion Council and 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 E85 Retailer Information website.
Point of Contact
Kelly Marczak
Director
American Lung Association in Minnesota
Phone: 651-268-7590
Fax: 651-227-5459
kelly.marczak@lung.org
http://www.cleanairchoice.org/cities

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. 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. (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. Once established, the program will remain in effect through June 30, 2025, with funding subject to legislative appropriation. (Senate File 5, 2015; House File 1554, 2015; and Minnesota Statutes 41A.12)

Authorization for E15 Infrastructure Grant Program
The Minnesota Department of Agriculture may establish a program to provide grants to eligible fuel retailers for equipment and installation costs to dispense E15. Grants would be available to retailers with no more than 15 fueling stations in the state. (Senate File 5, Special Session 2015)

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 49 of the U.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:

minnesota_chart1

Effective August 30, 2015, all gasoline sold or offered for sale in the state must contain at least 20% ethanol (E20), unless EPA has not granted approval for the use of E20 in all vehicles regardless of model year. Certain exemptions apply. (Minnesota Statutes 239.761 and 239.791)

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. (Minnesota Statutes 239.761 and 296A.01)

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:

minnesota_chart2

Biofuel Use Requirement
State agencies must take all reasonable actions to develop the infrastructure necessary to increase the availability and use of E85 and biodiesel throughout the state. Employees using state-owned vehicles are expected to use E85 fuel when operating flexible fuel vehicles whenever E85 is reasonably available. (Executive Orders 04-10, 2004, and 06-03, 2006)

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 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?

Try out the E15/Flex fuel profit Estimator
A Roadmap for Ethanol cover

a roadmap for ethanol

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.

Download the Full Guide