Multiple constraints limit Minnesota's biodiesel production.  First, while production capacity meets the current minimum standard, a state wide minimum biodiesel content of 5% or more would require Minnesota to increase its production capacity or import biodiesel.  Second, biodiesel consumes the oil production of large quantities of soybean, competing with food uses, and increases to biodiesel production would likely result in increases to feedstock prices.

Mitigating carbon dioxide through biodiesel consumption costs a great deal of money.  Minnesota consumers pay more than 25 dollars per metric ton of non-renewable carbon avoided.  The federal government provides a tax incentive worth 105 dollars per metric ton of non-renewable carbon.  Totaled together, these make it the most expensive carbon dioxide reduction strategy we are considering.

However, a biodiesel minimum content standard holds several advantages.  Biodiesel produces significantly less dangerous pollution than petroleum diesel, potentially reducing death and respiratory disease in affected areas.  Biodiesel recirculates more money within the state, particularly to rural areas.  Biodiesel potentially captures out of state exchange by serving long haul truckers.  Biodiesel provides a minor reduction in CO2 emission.  Biodiesel serves economic development goals and improves air quality, while assisting in global warming reduction goals.