A comprehensive framework is necessary to move Minnesota forward in a way that can benefit consumers and providers, while also aiding our environment and our economy. That framework is the Future Fuels Act.
- The Future Fuels Act (FFA) was first introduced in March 2021 and is sponsored by Assistant Majority Leader Todd Lippert (DFL) and Senate Energy and Utilities Finance and Policy Committee Chairman David Senjem (R).
- The FFA received numerous hearings during the 2021 legislative session and passed the Minnesota House of Representatives.
Background of the Future Fuels Act Legislation
- The bipartisan FFA establishes criteria for the Minnesota Department of Commerce Commissioner to follow in developing the rule, including:
- Broad economic development
- Reliance on domestically produced fuels
- Equitable transportation electrification powered primarily with low-carbon and carbon-free power
- Air quality and public health
- State solid waste recycling goals by facilitating credit generation from renewable natural gas produced from organic waste
- Voluntary efforts led by farmers to improve soil health and water quality in growing low-carbon clean fuel feedstocks
- Protecting natural lands and expanding biodiversity
- The FFA is a pragmatic way to work toward reducing transportation fuel emissions in Minnesota by focusing on opt-ins rather than mandates. The FFA is not biased by pre-determining outcomes but instead focuses on marketplace realities. With the incredible support from a variety of coalition members, we can make a real change.
- This legislation will bring us closer to a future that includes cleaner energy by reducing transportation fuel emissions in Minnesota and supporting low-carbon biofuels and renewable energy. In short, the FFA will allow us to achieve a 20 percent reduction in carbon intensity for all transportation fuel supplied in the state by the end of 2035.
- The FFA would allow Minnesota to figure out the best way to reduce carbon in our fuels in our state to support the way we live. The type of energy needed in Greater Minnesota is different than what’s needed in the Twin Cities, and all of that is different than what’s needed in other states.
Why Minnesota and why now?
- Minnesota has long been home to innovation in both policy and business leadership, and the FFA is an opportunity to build on this history.
- By acting now and being a leader, Minnesota has the chance to determine its own path on its own timeline, instead of having the Federal Government or states like California set the framework for Minnesota’s future.
- Unlike many pieces of energy legislation that are restrictive and define “winners” in terms of energy options, the FFA is more open and inclusive by not picking what type of fuel source should be emphasized and instead lets the market and innovation drive change.
- We need to reduce carbon in a way that reflects how we live across Minnesota. Just as the needs of California are different than Minnesota, the type of energy needed and used in Greater Minnesota is different than what is needed and used in the Twin Cities.
- Additionally, by being the first state in the Midwest to implement guidelines such as this, we have the opportunity to provide a model for other states.
- Clean fuels policies are in place in several jurisdictions already, and statewide legislation is pending this year in New York, New Mexico, and Washington state. This is the first legislative effort to try to implement a statewide clean fuels standard in the Midwest.
“The Future Fuels Act helps to transition Minnesota towards a clean transportation future by providing a regulatory scheme aimed at reducing the carbon intensity of transportation fuels like gasoline and diesel. This policy helps to highlight the cleaner transportation options available to consumers, like electric vehicles.”— Joel Levin, executive director of Plug In America