Minnesota begins to wind down ethanol subsidies; industry “jump-start” incentive program ending in 2010

In Minnesota, the state government is preparing plans for ending subsidies to ethanol plants in the state. The last payments, under a state plan designed to incentivize ethanol production in the state, are scheduled for 2010, and only six plants are still receiving per-gallon incentive payments.

Minnesota has an E-20 mandate that will take effect in 2013. Currently Minnesota has an E10 mandate in place, and was the first state (in 2005) to establish an E10 standard.  Implementation of the E20 mandate is contingent on obtaining federeal approval to use E20  blends.

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