http://biz.yahoo.com/prnews/010425/mnw015.html
Wednesday April 25, 1:01 pm Eastern Time Press Release SOURCE: Minnesota Trucking Association Broad Coalition Opposes State Biodiesel Fuel Mandate; Businesses, Consumers Will See Higher Fuel Prices and Tight Supplies ST. PAUL, Minn., April 25 /PRNewswire/ -- Higher diesel fuel prices, loss of fuel sales to surrounding states and possible fuel supply shortages will be the result if the state Legislature mandates the use of experimental "biodiesel" oils in all diesel fuel sold in Minnesota. This is the analysis of a broad-based coalition of state businesses and industry trade groups that voiced their opposition to a proposed biodiesel mandate today in St. Paul. The coalition opposed to the proposed mandate is comprised of representatives from Minnesota's trucking, airline, railroad, construction, delivery service, general commuter and fuel supply and delivery industries and advocacy organizations. The target of the coalition's opposition is legislation under consideration in the Minnesota Legislature that would mandate mixing soybean oil or vegetable oil derivatives, known as "biodiesel oil," in all diesel fuel sold in Minnesota beginning in 2002, and expanding the mandate in 2006. "Biodiesel fuels have a promising future, but mandating the use of biodiesel is not the way to develop the industry," said John Hausladen, president of the Minnesota Trucking Association. "The serious negative economic impacts a state mandate would have on consumers, main street businesses, farmers and other state industries should convince the state Legislature to reject this proposal." A recent economic study found that a Minnesota biodiesel mandate would increase the cost of diesel fuel sold in the state by 2-6 cents per gallon, costing diesel fuel consumers and suppliers $16-48 million per year. The study also found that a state biodiesel mandate could increase the cost of airline fuel in the state by up to 9 cents per gallon. Dr. C. Ford Runge, Distinguished McKnight Professor of Applied Economics and Law and adjunct professor at the University of Minnesota's Hubert H. Humphrey Institute of Public Affairs and Department of Forest Resources, conducted the study. "The increased cost of biodiesel fuel will be passed on to all consumers of transportation services, affecting farmers, transit users, grocery store owners and customers, manufacturers, you name it," Hausladen said. "Some trucking contracts carry provisions calling for automatic fuel surcharges when the cost of fuel rises certain amounts and the cost of a biodiesel mandate could trigger those surcharges. A state biodiesel mandate really amounts to a hidden tax on all segments of the economy that rely on diesel-powered transportation." Consumer and railroad representatives expressed similar concerns about higher prices and tight supplies. "Instituting yet another fuel requirement, like a biodiesel mandate, will not only increase the cost for diesel fuel, it will also impact the cost of every gallon of gasoline sold in Minnesota in the long run," said Daron Van Helden, spokesman for AAA Minnesota/Iowa, representing more than 400,000 Minnesota motorists. "At a time when fuel costs are approaching record levels, we cannot afford the negative cost impacts a biodiesel mandate would impose on all Minnesota fuel users." "Under a Minnesota biodiesel mandate, maintaining an adequate supply of diesel fuel at a competitive price is a major concern for the railroad industry," said John Bergene, assistant director of public affairs for Canadian Pacific Railway. "We would have to seriously consider securing alternative sources of fuel outside of the state." Members of the coalition opposed to the biodiesel mandate include: Minnesota Trucking Association, Northwest Airlines, Canadian Pacific Railway, AAA Minnesota/Iowa, Sun Country Airlines, Koch Petroleum Group, Burlington Northern Sante Fe Railway, United Parcel Service, MN Service Station Assoc., MN Petroleum Council, Fed Ex, Cummins North Central, Yellow Freight Company, National Assoc. of Truck Stop Operators, MN Waste Haulers Assoc., MN Utility Contractors Association, National Solid Wastes Management Assoc., Interstate Detroit Diesel, Marathon Ashland Petroleum LLC, Ryder Trucks. Biofuel at Journey to Forever: http://journeytoforever.org/biofuel.html To unsubscribe, send an email to: [EMAIL PROTECTED] Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
