September 24, 2013

The Honorable Dave Tomassoni Chair, Senate Environment, Economic Development and Agriculture Finance Division 317 Capitol 75 Rev. Dr. Martin Luther King, Jr. Blvd. St. Paul, MN 55155 The Honorable Scott Dibble Chair, Transportation and Public Safety Finance Division Chair, Transportation and Public Safety Policy Committee 111 Capitol 75 Rev. Dr. Martin Luther King, Jr. Blvd. St. Paul, MN 55155

The Honorable Dan Sparks Chair, Senate Jobs, Agriculture and Rural Development Committee 328 Capitol 75 Rev. Dr. Martin Luther King, Jr. Blvd. St. Paul, MN 55155 The Honorable Jim Metzen Chair, Senate Commerce Committee 322 Capitol 75 Rev. Dr. Martin Luther King, Jr. Blvd. St. Paul, MN 55155

Dear Committee Chairs: Minnesota became the first state to mandate the use of biodiesel in September of 2005 and currently requires a minimum content level of five percent biodiesel (B5) in diesel fuel sold in Minnesota. State statute sets forth a schedule for increasing the minimum biodiesel content mandate to B10 in 2012 and to B20 in 2015 for the months of April, May, June, July August, September and October only. However before a new mandate can be implemented, the law (Minn. Stat. 239.77, Subd. 2(b) requires the commissioners of agriculture, commerce and the pollution control agency to determine whether four statutory conditions have been met. These conditions involve federal standards for blend specifications, the production capacity of biodiesel in Minnesota, the amount of infrastructure and regulatory protocol for biodiesel blending, and the source of feedstocks. In November, 2011, we issued a letter stating that, in consultation with the Biodiesel Task Force, we had determined the four conditions had not been met. Specifically, there was not adequate blending capability for Southwest Minnesota, and the regulatory protocols at the Department of Commerce were under review for possible alteration. Therefore, we recommended a one-year delay in the implementation of the B10 mandate. In December, 2012, we revisited the issue and the blending capability for Southwest Minnesota was still of concern. At that time, we decided to revisit the issue in the summer of 2013. On July 16, 2013, the Biodiesel Task Force met and examined the status of the biodiesel industry in relation to the four conditions outlined in statute. They identified no significant concerns which would require a delay in movement to B10. Therefore, we have determined that the four

conditions laid out in statute have been met, and the way is clear for Minnesota to move to a B10 biodiesel mandate. Now that you have been notified, once this letter is printed in the State Register then the move to B10 will be in place for July 1, 2014. This letter is set to be published in the September 30, 2013, edition of the Minnesota State Register. Please contact us with any questions or for further information. Sincerely,

David J. Frederickson Commissioner, MN Department of Agriculture

Mike Rothman Commissioner, MN Department of Commerce

John Linc Stine Commissioner, MN Pollution Control Agency

cc: The Honorable Jean Wagenius The Honorable Frank Hornstein The Honorable Jeanne Poppe The Honorable Joe Atkins The Honorable Ron Erhardt