According to a recent study from Political Economy Research Institute, a Low Carbon Fuel Standard (LCFS) in Minnesota would have a positive environmental and economic impact. The paper, “The Employment Impacts of a Low- Carbon Fuel Standard for Minnesota,” studied the employment impacts of three different scenarios both to 2021 and further to 2035. In each situation, employment is measured on the number of jobs that could be created in construction and manufacturing (CM) as the transportation infrastructure expands, as well as the number of jobs that would be created in harvesting, transportation, and production (HTP).
In each scenario, employment increases, the least in Scenario 1 and the most in Scenario 3:
- Scenario 1: assume no change to the distribution of transportation fuel consumption.
- Scenario 2: assume that the fuel mix will change in response to a national Renewable Fuel Standard (RFS2)
- Scenario 3: outlines a more agressive change in the fuel mix in response to instituting a statewide Low Carbon Fuel Standard (LCFS).
In addition to employment impacts, the study also looks at strategies within the ethanol industry to lower carbon intensity. These include: using renewable energy in place of fossil fuels; increasing the use of flex-fuel vehicles (Minnesota has the largest number of E85 pumps in the country); increasing the blend wall for low level ethanol blends; and increasing production of cellulosic ethanol. The study also looks at increasing the use of biodiesel blends (from B2 to B20) and increasing the number of electric vehicles (EV).
The key findings:Read More







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