Owner Operator

June 2015

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FUEL FACTOID 36 // OWNER OPERATOR // JUNE 2015 because they believe they lose sales and loy- al customers and face higher warranty costs thanks to the mandate. Petroleum companies say that distributing B-10 in Minnesota is go- ing to create additional costs. The lawsuit names the state commissioners for commerce, agriculture and pollution con- trol as well as the director of the weights and measures division that regulate fuel dispens- ing. The 25 page suit asserts that the Minneso- ta law violates the U.S. Clean Air Act, which prohibits states from enacting emissions con- trol measures. Additionally, the suit includes fi ndings by the EPA that state B10 is not com- patible with most existing diesel engines. An article in the Star Tribune published be- fore the mandate went into effect in July not- ed that lawmakers suggested that the higher blend would lead to lower diesel prices, be- cause biodiesel was selling for less than petro- leum-based diesel, while cutting down on pol- lution and making soybeans more valuable, which was great news for soybean farmers. However, according to a statement fi led with the case, Kyle Kottke, who owns Kottke Trucking in Buffalo Lake, MN, said that after the mandate, Minnesota diesel prices were an average of 3 cents higher than diesel prices in adjacent states, which caused economic losses for his company. "I consistently see higher prices for the die- sel/biodiesel blends sold by fuel providers in Minnesota when compared to the diesel fuel sold by the same fuel provider outside of Min- nesota," Kottke says. The debate over biodies- el doesn't seem to be anywhere close to being over in Minnesota, and it will be interesting to see how this battle plays out not only in the state of Minnesota but across the nation. OO

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