3/18/02 - Gov. Jesse Ventura announced Mar. 15 he would allow the biodiesel mandate to become law without his signature.
In a letter to the president of the Senate, Ventura said he supports SF1495's outcomes, but disagrees with the idea of any mandate from the government. The letter notified Senate President Don Samuelson of Ventura's intention to allow SF1495 to become law without signing it and gave three reasons for his course of action.
"Agriculture plays a critical role in our state's economy," Ventura wrote. "We need to actively support agriculture in our Minnesota. SF1495 clearly benefits our farmers by creating a new market for soy oil and it benefits Greater Minnesota by creating economic development opportunities related to the biodiesel industry. I fully support both of these outcomes.
"However, I have serious reservations about any mandate from the government. I have reservations about legislation with elaborate conditions for future action. I am also troubled by the fact that the legislature can pass SF1495, increase future fuel costs and add to inflation while they ignore inflation in their proposed budget solutions. If this bill did not present such a clear opportunity for our farmers and our state, I would veto the bill on these grounds alone.
"After balancing the statewide benefits of SF1495 against my concerns about the process used to gain those benefits, I have decided that I cannot sign the bill but I also will not stand in the way of its implementation."
SF1495 will require all diesel fuel sold in Minnesota to contain a 2 percent blend of vegetable oil or animal fat by June 2005. The bill, which has been opposed by the trucking industry, passed the 2002 legislative session, after being tabled at the end of the 2001 session when the House and Senate could not agree on its content.
3-14-2002 -- Although the Minnesota legislature passed its biodiesel bill, it looks as if Governor Jesse Ventura might veto the bill. Governor Jesse Ventura has until Saturday to make his decision final on Minnesota's biodiesel bill. Since the legislature sent the bill to the governor March 13, Minnesota's Star Tribune and Environment & Energy Publishing's GreenWire indicated Ventura's intends to veto the bill because it could raise prices, but his press office would not confirm his intentions.
He has until Saturday to approve or veto SF1495, which would require all diesel fuel sold in Minnesota contain a 2 percent blend of vegetable oil or animal fat by June 2005. The bill, which has been opposed by the trucking industry, passed the 2002 legislative session, after being tabled at the end of the 2001 session when the House and Senate could not agree on its content.
OOIDA Executive Vice President Todd Spencer recommends that all Minnesota truckers contact Gov. Ventura's office urging him to veto the legislation.
"While we think there may very well be merits in alternative fuels and biodiesel, dual quality fuel standards cannot be adopted on a per state or per community basis without creating severe economic hardships with no benefit to anyone else," Spencer said.
To contact Gov. Ventura's office before Saturday, call (651) 296-3391 or 1-800-657-3717 within Minnesota; fax your letter to (651) 296-2089; or leave feedback on the governor's web site by visiting http://www.governor.state.mn.us/feedback_from_constituents.html.
8-2-01 -- The session ended May 21, 2001, but unresolved bills will carry over into the next session, which begins Jan. 29, 2002. For bill status information, call (651) 296-0504.
7/01/2001 -- The agricultural bill was stalled in a conference committee when the session closed May 21. Apparently, the Senate and House could not agree on the bill's provisions. S1495 would have required all diesel fuel sold in the state to contain 2 percent biodiesel, a blend of petroleum-based diesel fuel and an additive made from vegetable oil, by July 1, 2003. Although the session ended without passing the bill, it could carry over into the 2002 session.
5/14/2001 - On May 7, the Senate passed its agriculture policy bill with a provision requiring all diesel fuel sold in the state to contain 2 percent biodiesel, a blend of petroleum-based diesel fuel and an additive made from vegetable oil, by July 1, 2003. Proponents of biodiesel have been trying to raise the requirement to 5 percent, but this provision did not make it into the amended bill.
Trucking industry officials and railroads have raised concerns that the blend could damage engines, gel in cold temperatures, degrade gaskets and seals, and add at least 5 cents per gallon to the price if the 5 percent requirement was added.
After passing the Senate, the bill was sent to the House, who has its own agriculture policy bill, HF1547. After the House compared the two bills, the House indefinitely postponed its own bill and substituted it with the Senate's bill. At press time, the bill was awaiting its third reading and a vote in the House. If it doesn't pass before the session ends May 21, it could be carried over into the 2002 session.
The general information number for the Minnesota Legislature is (651) 296-0504.
2/23/01 - Minnesota legislators could require that soybean oil be added to diesel fuel. Farmers faced with full storage tanks of soybean oil are trying to persuade legislators to mandate that it be mixed with diesel fuel.
The issue pits soybean farmers and agri-businesses that stand to gain financially from biodiesel against trucking companies and railroads that believe biodiesel blends could damage engines. According to published reports, farmers are filling hearing rooms hoping to persuade legislators to mandate mixing soybean oil, or other plant oil, with diesel as the federal government issues orders to lower sulfur content of the fuel.
Senate and House agricultural committees each approved bills HF 362 and SF326, which require a 2 percent mix of vegetable-derived biodiesel in most diesel fuel pumped in the state by July 2002, and 5 percent by July 2006. Each bill was forwarded to environmental committees.
Trucking industry officials and railroads have raised concerns that the blend could damage engines, gel in cold temperatures, degrade gaskets and seals, and add at least 5 cents per gallon to the price once the 5 percent requirement takes effect.
Meanwhile, a bill (HF379) has been introduced by Rep. Ted Winter of Fulda, which would accelerate the biodiesel mandates while offering tax breaks for truckers and state aid to spark biodiesel production. "I don't believe we can pass a mandate this year if we don't deal with the issues in front of us," Congressman Winter told Land Line, referring to trucking industry concerns.
The general information number for the Minnesota Legislature is (651) 296-0504.
A Sample of Biodiesel.
On September 29, Minnesota will become the first U.S. state to require diesel fuel sold at filling stations in the state to be blended with 2% biodiesel.  This follows the statewide mandate requiring ethanol to be mixed into gasoline—also a first by Minnesota—which took effect in 1997.  The biodiesel mandate was approved by the 2002 state legislature, and was sent to then-Governor Jesse Ventura.  Ventura allowed the bill to become law without his signature, stating his concern that the increased cost of fuel would affect the trucking industry—potentially spurring inflation—though he felt that this was nearly balanced by the positive impact the mandate would have on agriculture in the state.

The law had an initial target date of July 1, 2005, but would only go into effect once production capacity exceeded 8 million gallons (30 millon liters) per year.  At the beginning of 2005, the state was only capable of producing three million gallons each year, but two new facilities in Albert Lea and Brewster increased state capacity twentyfold when they opened this summer.  Each of the two new plants can produce 30 million gallons (113 ML) annually.  Agriculture Commissioner Gene Hugoson verified production levels in the August 29 edition of the Minnesota State Register, meaning that the law will become effective following a month-long notification period.

The prices of diesel and biodiesel have equalized, so the negative economic impact initially feared by Ventura are not expected to come to pass and the effect should be pennies more or less per gallon.  Despite the dramatic increase in capacity, biodiesel production is not yet a broad solution to shortages or high prices—in 2001, the state used 14.3 million gallons of petroleum every day.