Committee hears plan to pay retailers $0.05/gal to expand E15 sales; industry backs program, members question cost and equity

ST. PAUL — The House Agriculture Finance and Policy Committee heard House File 4085, a proposal to create a Department of Agriculture program that pays fuel retailers $0.05 per gallon for verified E15 sales.

Representative Anderson, sponsor of the bill, said the incentive aims to expand access to E15 (marketed as unleaded 88) by reducing the business risk for retailers that undertake modest upgrades or changes to offer the higher‑ethanol blend. "This would be an after‑the‑fact payment based on volume," Anderson said; a station that had not taken infrastructure grants could seek payments for verified gallons sold, but stations that received certain infrastructure grants would not be eligible for concurrent payments.

Industry witnesses supported the concept. Brian Warner, executive director of the Minnesota Biofuels Association, said E15 has historically been priced below regular gasoline and expanding access would save consumers money. Michael Walls, vice president for public affairs at POET LLC, and other ethanol producers argued the incentive would strengthen local demand, support Minnesota producers and could reduce greenhouse‑gas emissions relative to E10.

Wesley Back, representing the Minnesota Grocers/Kroger perspective via Zoom, said the $0.05 incentive could help retailers adopt E15 where only modest changes are needed. Committee members questioned whether a volumetric subsidy is the most efficient tool, whether it duplicates existing infrastructure grants, how the program would be funded and whether a program starting in 2026–2028 will address immediate price pressures. One member noted other states have implemented similar $0.05 volumetric incentives.

Representative Anderson renewed the motion to lay HF 4085 over; the committee laid the bill over at the hearing.