In March, Minnesota House Transportation Committee Co-Chair Erin Koegel introduced the Minnesota clean transportation standard (CTS), House File 2847. On behalf of the Future Fuels Coalition, the Great Plains Institute commissioned analyses to better understand the potential benefits of the proposed program.
According to these analyses, the Minnesota clean transportation standard would generate significant economic and public health benefits while reducing greenhouse gas emissions from the transportation sector.
Key takeaways:
- Minnesota’s proposed clean transportation standard program would speed the transition from fossil fuels to cleaner fuels, reducing greenhouse gas emissions, improving air quality in every county, and spurring billions in clean energy economic activity.
- The CTS would achieve between $37 million and $70 million in health benefits through reduced emissions of ammonia, volatile organic compounds, particulate matter, and nitrous oxide.
- By 2040, the CTS would result in $20.7 billion in cumulative economic output, support 55,000 new clean energy jobs, and generate $310 million annually in labor income.
- The Future Fuels Coalition continues to advocate for passage of the Minnesota CTS.
Minnesota’s proposed clean transportation standard
Minnesota is one of a few Midwestern states considering CTS legislation to reduce transportation-related greenhouse gas emissions statewide. The program would require fuel producers to reduce the average carbon intensity of transportation fuels by at least 75 percent within 20 years.
This would reduce the use of high-carbon fuels like gasoline and diesel and drive investment in a variety of cleaner fuels, including low-carbon biofuels, hydrogen, and electricity.
Improving air quality in all Minnesota counties
According to a new report from the American Lung Association, nearly half of people living in the United States are exposed to unhealthy levels of air pollution. Pollutants like particulate matter and ozone lead to health impacts like asthma attacks, heart attacks, strokes, lung cancer, and even premature death. On-road vehicles are a major source of these air pollutants.
According to an analysis by Dr. Paul Meier from the Holloway Group at the University of Wisconsin–Madison’s Center for Sustainability & Global Environment, the Minnesota CTS would improve air quality in all Minnesota counties by accelerating the adoption of electric vehicles and other low-carbon fuels.
Dr. Meier utilized the US Environmental Protection Agency’s CO-Benefits Risk Assessment (COBRA) Risk Assessment Health Impacts Screening and Mapping Tool to quantity how the CTS would impact concentrations of particulate matter and ozone in the atmosphere and the resulting health benefits. COBRA estimates the economic value associated with adverse health impacts such as hospital visits, lost workdays, and premature death.
Compared to a reference case without a CTS, the policy would achieve between $37 million and $70 million in health benefits. It would reduce ammonia emissions by 74 percent, volatile organic compound emissions by 32 percent, particulate matter emissions by 7 percent, and nitrous oxide emissions by 6 percent.
For more information about the potential health benefits of Minnesota’s proposed CTS, download our fact sheet.
Download factsheet
Driving Minnesota’s clean fuel economy
While reducing emissions of greenhouse gases and other air pollutants, the Minnesota clean transportation standard would support the state’s local economy. According to modeling conducted by Horizon Climate Group for the Great Plains Institute, the CTS would create net positive economic impacts in Minnesota due to investments in biofuels and electric vehicle infrastructure, increased availability of lower-cost, lower-carbon fuels, and increased electricity sales.
Horizon Climate Group utilized the IMPLAN (impact analysis for planning) model for this study. IMPLAN is an input-output model that estimates a policy’s economic impact on a jurisdiction through direct, indirect, and induced economic activity. According to the analysis, the policy would result in $20.7 billion in cumulative economic output through 2040.
The clean transportation standard would reduce reliance on imported oil and increase the use of homegrown energy like biofuels and electricity. Over 15 years, it would create 55,000 new jobs in the clean fuel industry statewide, generating $310 million annually in labor income.
Through annual credit revenue, the program would generate the following benefits for clean fuel-producing sectors:
| SECTOR | AVERAGE ANNUAL BENEFIT |
| Electricity producers | $682 million |
| Ethanol producers | $64 million |
| Biodiesel producers | $82 million |
| Renewable diesel producers | $293 million |
| Biofuel farmers | $12 million |
| Renewable natural gas producers | $59 million |
| Jet fuel producers | $70 million |
| Hydrogen producers | $14 million |
For more information about the potential economic benefits of Minnesota’s proposed CTS, download our fact sheet.
Download factsheet
Next steps for Minnesota’s CTS policy
Minnesota’s 2025 legislative session is winding down, and legislators are focusing on resolving negotiations on the state’s budget for the next two years. Within this context, advocates are looking ahead to 2026 for another push to pass a clean transportation standard in Minnesota.
The Future Fuels Coalition supports the Minnesota clean transportation standard bill. To learn more about the coalition and the legislation, visit the Future Fuels Coalition website. The Great Plains Institute facilitates the coalition.
