Travel Plaza Industry Expresses Disappointment Over Minnesota Committee Vote on Biodiesel Fuel Bill

          Bill Would Hike Fuel Costs, Lower Truck Engine Performance

    ALEXANDRIA, Va., March 29 NATSO, the professional
association of the travel plaza and truckstop industry, expressed
disappointment over a Minnesota committee's recent decision to approve
legislation requiring fuel sold in that state to contain biodiesel.   The
bill, H.F. 362, would require that diesel fuel sold in Minnesota contain a
minimum of five percent biodiesel fuel oil by volume.
    Even though the Minnesota House Environment and Natural Resources Policy
Committee "tabled" H.F. 362 on March 20, the committee later elected to
reconsider and pass the bill.  H.F. 362 has been referred to the Minnesota
House Transportation Policy Committee.  That committee could act on the
legislation as early as next week.
    "Biodiesel fuel is more costly and there are serious concerns about its
performance, particularly in cold weather," said Senior Director of NATSO
Government Affairs Jason Lynn.  "We are obviously disappointed by the
committee's vote, but we will continue to work to ensure Minnesota lawmakers
realize the negative impacts a biodiesel fuel requirement would have on state
business operators."
    Fuel costs make up a significant percentage of a fleet's or independent
truck driver's operating costs, making the sale of diesel fuel extremely
competitive.  The typical truckstop operator's margin on diesel fuel amounts
to only pennies on the gallon.  Because the standard long-haul truck can
travel over 1,000 miles without refueling, purchasing decisions can more
easily be made on price rather than convenience.
    A minimum biodiesel requirement, as contemplated in H.F. 362, would create
a more expensive product than traditional diesel fuel. Such a requirement
could result in a price increase of anywhere from 5 to 30 cents more per
gallon than traditional diesel fuel, making diesel fuel sold in Minnesota
substantially more expensive than fuel in neighboring states and prompting
fleets and drivers to purchase fuel elsewhere.
    In addition to cost there are many questions about the performance of
biodiesel in colder climates.  Cold weather can "cloud" or "gel" biodiesel to
a greater degree than traditional fuel, greatly lowering truck engine
performance.  Increased concerns about biodiesel "gelling" in colder weather
could also persuade purchasers to avoid Minnesota businesses in favor of
fueling up in other states.

    NATSO is the professional association of America's $42 billion travel
plaza and truckstop industry, representing over 1,100 locations nationwide.
Founded in 1960, NATSO represents the industry on legislative and regulatory
matters; serves as the official source of information on the diverse travel
plaza and truckstop industry; provides education to its members; conducts an
annual convention and trade show; and supports efforts to generally improve
the business climate in which its members operate.