MN Biofuels Remarks To House Tax Committee On CHP /EG Bill

  • Friday, 20 April 2018 13:30

On April 18, Minnesota Bio-Fuels Association's executive director, Tim Rudnicki, delivered prepared remarks to the Minnesota House of Representatives tax committee on the benefits of the proposed combined heat and power (CHP) / expander generator (EG) tax credit. 

Below are his prepared remarks in full:

Good morning Mr. Chair and Members of the Committee.

I’m Tim Rudnicki, the executive director of the Minnesota Bio-Fuels Association.

The Association, based in Minneapolis, represents biofuel producers located throughout Minnesota. From Benson to Clairmont. From Preston to Janesville. From Lamberton to Little Falls.

When it comes to energy in Minnesota, all the power used in homes, businesses and the transportation sector is imported but for the renewables.

Yes, Minnesota is blessed with a well educated populace. And Minnesota is blessed with abundant renewable resources including biomass which is used to make biofuels such as ethanol.

But the ethanol industry is about more than the 1.2 billion gallons of clean, biofuel produced in 2017. And the industry is about more than the $2.2 billion dollars it contributed to the economy. It’s also about environmental benefits and the 18,815 jobs supported by the industry.

The biofuel industry in Minnesota is diverse with annual production plant capacities ranging from 16 million to 136 million gallons. These producers, regardless of plant size, are continually modernizing their operations. Whether it’s the enzymes and yeast used in fermentation or hammer mills and variable frequency drive motors used in production.

One of the next innovations the industry needs to capture and use is combined heat and power and expander generators. These power systems help producers lower their carbon footprints even more and can help make them more competitive in a global marketplace.

In our estimation, the CHP and EG tax credit bill provides the appropriate level of credits so ethanol producers can make this next leap in energy system technology.

Based on the ABF Economic analysis of this bill, when fully utilized, it could add $189 million to Minnesota's GDP, boost household income by an additional $147 million, support an additional 1,458 jobs and add an additional $17 million to state and local tax revenue.

In closing, this CHP/EG tax credit holds great potential to unleash a host of environmental, economic and employment benefits for rural communities and all of Minnesota. We ask for your support of this bill and the inclusion of this bill in the omnibus tax bill.

Thank you.

Click here to read more about the CHP/EG tax credit bill. Click here to read ABF Economics' analysis on the CHP/EG tax credit bill.