Minn. B10 Starts July 1; B20 Delayed
STREATOR, Ill. (DTN) -- The Minnesota mandate for 10% biodiesel blended into petroleum-based fuel kicks in July 1, two years late, according to the Minnesota Soybean Growers Association.
The reason for the two-year delay was the state needed to wait for blending infrastructure to catch up with the mandates, said Mike Youngerberg, senior director of field service for the association.
He said the state legislature passed a biodiesel blending mandate for B5 in 2008 with blends ramping up to B10 in 2012 and B20 in 2015. The higher blends were for summer months only, with the mandate reverting back to B5 in the colder weather.
"Unfortunately, there were some delays that statutory requirements in 2008 legislation," Youngerberg said.
He said among the requirements were an ASTM specification and adequate blending infrastructure.
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"We had a lack of blending capacity to support rack blending for southwest Minnesota," he said. "It was a hindrance to moving forward, so we delayed the move to B10 two times."
Last September in Sioux Falls, S.D., a blending facility was built that serves blenders in southwest Minnesota, alleviating blending infrastructure issues, he added.
This year from July 1 to Sept. 30, B10 blending will be mandated in the state, reverting back to B5 until April 2015.
From April to September during the years 2015 through 2017, B10 will be mandated in Minnesota.
The original legislation required the mandate to increase to B20 next year, but that is now delayed to 2018, Youngerberg said.
He said the state biodiesel industry along with other stakeholders such as petroleum marketers agreed to move the B20 mandate to 2018.
"When dealing with a statewide mandate, you have to take it slow," he added. "We want the product to work."
He said that the state is well positioned for biodiesel consumption.
"We have a number of petroleum jobbers who are blending biodiesel for delivery to customers," he said. "So I think we're well situated."
Myke Feinman can be reached at myke.feinman@dtn.com
(BM/AG)
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