Biofuel Legislation In Minnesota Criticized For Focus On Corn

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Courtesy of Bergeson & Campbell, P.C.

The Bioeconomy Coalition of Minnesota is advocating strongly for two bills in the state that if passed would result in a two-year, $5 million production incentive for producers, and a capital loan equipment program. The bills, HF 536 and SF 517, would benefit companies that develop biochemicals, advanced biofuels, and anaerobic digestion projects. There is concern, however, that the legislation would increase the production of corn rather than encourage the production of crops that do not require the same heavy use of fertilizer as corn. Citing concerns about fertilizer runoffs in the river, combined with corn being an easy source to convert to biofuel, the Minnesota Environmental Partnership and Friends of the Mississippi River have suggested amending the bills to: (1) require biofuel refineries receiving the production incentive to have at least 50 percent of their feedstock come from perennials; and (2) pay incentives to farmers who switch from corn to perennials. HF 536 has already been changed to include a 20 percent bonus for the use of perennials over corn. It is likely that both bills will continue to change to reflect continued concerns about water quality in Minnesota.

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