House blesses boost in ethanol

04/28/2005

Dane Smith, Star Tribune
April 28, 2005

A proposal that could end up doubling the ethanol content of Minnesota gasoline by 2013 passed easily through the Minnesota House Wednesday, winning approval by a comfortable margin after rural legislators hailed it as a boon to rural regions and a declaration of independence from foreign oil.

Minnesota soon could become “the Middle East of the Middle West,” said Rep. Al Juhnke, DFL-Willmar. He was referring to claims that the legislation will enhance the state’s already dominant status in production of ethanol, an alcohol fuel additive derived mainly from corn, one of Minnesota’s leading farm commodities.

During a lengthy floor debate, some suburban fiscal conservatives argued that the proposal amounted to an improper interference in the marketplace. And some urban liberals contended that environmental claims were off-base and that the bill could produce more pollution of surface water and groundwater.

But the political forces behind increasing both usage and production of ethanol in Minnesota appear to be irresistible, and the bill is likely to be signed into law soon. Corn growers and an alliance of rural interest groups support it. Gov. Tim Pawlenty has made it a top priority and current gas prices give the proposal an added boost.

During Wednesday’s debate, frequent mention was made of the recent spike in gas prices and the nation’s increasing reliance on petroleum from the politically unstable Middle East. The bill has been approved by lopsided margins in both legislative chambers, 91-43 in the House on Wednesday, and 54-12 in the Senate earlier in the session.

The House bill’s chief sponsor, Rep. Greg Davids, R-Preston, said he thinks the Senate might be interested in simply passing the House version and sending it on to the governor for his signature. But a House-Senate conference committee may be needed to reconcile differences, because the House bill picked up a few amendments that are not on the Senate bill or in Pawlenty’s proposal.

One provides an added measure of immunity for refiners and dealers from lawsuits alleging damages from ethanol. Another requires Pawlenty to seek an assessment by federal authorities to determine whether 20-percent ethanol (nicknamed E20)—twice the 10 percent now used—will damage small engines in motorcycles, snowmobiles, lawn mowers or other equipment.

Opponents put up a strong fight. They raised concerns voiced by some manufacturers that E20 might not work properly in small engines. State Rep. Frank Hornstein, DFL-Minneapolis, tried unsuccessfully to attach an amendment that would require the growing number of coal-fired ethanol plants to submit to environmental impact studies.

But perhaps the most spirited debate was over water quality claims, as urban DFLers clashed with outstate legislators from both parties. Reps. Keith Ellison and Jean Wagenius, both Minneapolis DFLers, argued that corn growers have been unwilling to accept legislation that would restrict the use of Atrazine and other pesticides and fertilizers, which could represent a growing threat to water quality, on the surface and on the ground.

“Corn growers are asking too much,” Wagenius said. And in response to rural legislators’ suggestions that the issue wasn’t really any business of city dwellers, Ellison said that Atrazine has found itself into the city’s lakes and water supplies.

Proponents claim that adding ethanol improves air quality, but even that assertion was challenged by Rep. Michael Paymar, DFL-St. Paul. He said there was “no conclusive evidence” of cleaner air. “I think we should stop propping up this industry and let it compete in the open market,” Paymar added.

The legislation does not actually mandate any increase in ethanol content at the gas pumps anytime in the near future. Rather, it sets a state goal of reaching 20 percent “renewable fuels” in Minnesota’s total liquid fuel usage by 2010. That could be achieved through the growing numbers of vehicles equipped to burn 85-percent ethanol fuel (E85), increased biodiesel usage or other initiatives.

If the 2010 goal is not met, the state would require refiners and suppliers to double the current standard of 10 percent ethanol content to 20 percent, by 2013 in the House bill and by 2012 in the Senate version. The state also would need a go-ahead from the federal Environmental Protection Agency for use of E20.

Davids said the real significance of the bill is that it makes Minnesota the national leader in pursuit of alternative fuels and could add 1,200 jobs and another $1.58 billion to the state economy in the next few years.

“This is a huge victory for rural Minnesota,” Davids said.