The CTS would reduce transportation fuel emissions allowing Minnesota to cut its carbon intensity in transportation fuels by 25 percent by the end of 2030, adding up to even greater reductions when combined with other policies.
In addition to reducing GHG emissions, the CTS reduces air pollution attributable to transportation fuels, with an emphasis on improving air quality in disadvantaged and low-income communities.
The CTS takes the right step forward and brings us closer to a future that includes a cleaner transportation system by investing in a variety of alternative fuels, including electrification as well as low-carbon liquid fuels and hydrogen.
The CTS would require a reduction in transportation greenhouse gas emissions but is technology and fuel neutral, rewarding a fuel’s greenhouse gas reduction based on actual performance.
The CTS would establish a process for evaluating the lifecycle greenhouse gas emissions from any transportation fuel and allow transportation fuel providers to compete in offering lower carbon fuels at lower cost.
Economy
Over 10 years, a clean transportation policy like the CTS would generate $946 million in labor income in Minnesota and Iowa. Across these two states, an approach such as the CTS would contribute $1.98 billion to the regional gross domestic product (GDP) and generate $10.3 billion in regional economic output.
This equates to an annual average of nearly 1,500 jobs and $95 million in labor income, with an annual contribution of over $197 million to GDP.
A variety of industries within the region will see beneficial economic impacts from value added to their product, additional labor income and employment, and increased total output due to demand for lower carbon alternative fuels. The bill requires that laborers and mechanics working on electrification projects funded by the program earn the prevailing wage.
Consumers
The CTS lets the marketplace innovate and advance how we use cleaner energy.
Through the CTS, Minnesota residents and those traveling into our state will benefit by increased access to more transportation fuel choices.
Gasoline users and customers could see a total economic benefit of $726 million over 10 years from cost savings due to lower cost fuel blends.
Some of the revenue from the program could be used to provide financial incentives for households to transition to electric vehicles.
Communities
The CTS provides equitable access to clean transportation for all Minnesota communities.
The CTS contributes to reductions in air pollution and increased health benefits, particularly in areas that have been disproportionately impacted by transportation pollution.
The CTS provides economic incentives and market demand to maximize the value of organic waste, supporting county efforts to achieve recycling goals.
Farmers & Manufacturers
The CTS does not directly regulate agriculture, but provides voluntary incentives for formers that choose to adopt climate smart agricultural practices that lower the carbon footprint of feedstocks for biofuel production.
The CTS would reduce emissions from transportation fuels and support low-carbon biofuels produced from crops grown by farmers in Minnesota.
The CTS supports the sale of higher biofuel blends, increasing access to the marketplace.
This would give our farmers an important opportunity to play a key role in defining this energy policy.
