Minnesota's trucking industry and other groups are warning that higher diesel prices, loss of fuel sales to surrounding states and possible fuel supply shortages will be the result if the Minnesota Legislature mandates the use of biodiesel
in all diesel fuel sold in Minnesota.
A coalition of state businesses and industry trade groups voiced their opposition to a proposed biodiesel mandate yesterday in St. Paul. The coalition includes representatives from Minnesota's trucking, airline, railroad, construction, delivery service, general commuter and fuel supply and delivery industries and advocacy organizations.
Legislation under consideration in the Minnesota Legislature would mandate mixing soybean oil or vegetable oil derivatives, known as biodiesel, in all diesel fuel sold in Minnesota beginning in 2002, and expanding the mandate in 2006.
"Biodiesel fuels have a promising future, but mandating the use of biodiesel is not the way to develop the industry," said John Hausladen, president of the Minnesota Trucking Association. "The serious negative economic impacts a state mandate would have on consumers, main street businesses, farmers and other state industries should convince the state Legislature to reject this proposal."
A recent economic study found that a Minnesota biodiesel mandate would increase the cost of diesel fuel sold in the state by 2-6 cents per gallon, according to the trucking group. C. Ford Runge, an economics professor at the University of Minnesota's Hubert H. Humphrey Institute of Public Affairs and Department of Forest Resources, conducted the study.
"A state biodiesel mandate really amounts to a hidden tax on all segments of the economy that rely on diesel-powered transportation," Hausladen said.
Members of the coalition opposed to the biodiesel mandate include: Minnesota Trucking Association, Northwest Airlines, Canadian Pacific Railway, AAA Minnesota/Iowa, Sun Country Airlines, Koch Petroleum Group, Burlington Northern Sante Fe Railway, United Parcel Service, Minnesota Service Station Assoc., Minnesota Petroleum Council, FedEx, Cummins North Central, Yellow Freight, NATSO, Minnesota Waste Haulers Association, Minnesota Utility Contractors Association, National Solid Wastes Management Association., Interstate Detroit Diesel, Marathon Ashland Petroleum and Ryder Trucks.