Impact

The CTS would reduce the carbon intensity of transportation fuels used in Minnesota by at least 25 percent by the end of 2030 and 75 percent by 2040.
In addition to reducing greenhouse gas 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 it 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.

The CTS would put Minnesota on track to decarbonize the transportation sector while cutting household costs and supporting the state’s rural economies.
The policy would contribute 55,000 jobs and $4.6 billion in labor income to Minnesota’s economy.
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.

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.
Over 15 years, the Minnesota CTS would generate $1.2 billion in economic benefits for consumers.
Numerous studies have found minimal, if any, impacts on retail prices from existing CTS programs. Some of the revenue from the program could be used to provide financial incentives for households to transition to electric vehicles.

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.
The bill specifies that 60 percent of credit revenue from residential electric vehicle charging must be devoted to transportation electrification programs serving rural areas and environmental justice communities.

This policy would reduce Minnesota’s reliance on imported fuels and increase the use of homegrown energy.
The CTS does not directly regulate agriculture but provides voluntary incentives for farmers who 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.
This policy would create new markets for wood residuals, supporting advanced biofuel production in Northern Minnesota from wood waste and providing a market for managing insect-killed trees such as ash trees killed by emerald ash borer.