Minnesota’s economy has always been powered by agriculture, trucking, manufacturing, and practical decision-making rooted in the realities of working families and businesses.
That is why current conversations around a proposed “Low Carbon Fuel Standard” (LCFS), now being branded as a “Clean Transportation Standard” (CTS), deserve careful economic analysis and thoughtful discussion.
Recent research shows that Minnesota drivers saved $24.7 million in 2024 alone by choosing E15, a lower-cost fuel option often marketed as Unleaded 88. Since 2013, E15 has delivered nearly $80 million in cumulative savings to Minnesota consumers while also supporting jobs, economic output, and tax revenue across the state.
The study found that E15:
• Saved consumers up to 18 cents per gallon compared to E10 in 2024
• Supports 1,081 Minnesota jobs
• Generates $166.3 million in annual economic output
• Contributes $30.8 million annually in tax revenue
These findings reinforce how important affordable and accessible fuel options are to consumers, agriculture, and the broader economy.
At the same time, a separate 2026 economic analysis projects significant economic consequences if Minnesota adopts an LCFS/CTS policy similar to California’s model:
• $4.2 billion in lost economic activity
• $1.1 billion in lost statewide value
• 7,155 jobs lost
• $520 million in lost wages
The impacts would extend far beyond the fuel pump.
Minnesota farmers could face:
• $13 million annually in additional fuel costs
• $19.3 million annually in lost farm revenue
Truckers could experience:
• $40.7 million annually in added fuel costs
Taxpayers could face:
• $178 million annually in additional public spending
Fuel and supply chain economics are deeply connected. Rising energy costs increase the cost of transporting food, livestock feed, consumer goods, and essential supplies throughout the Midwest and beyond.
This conversation becomes even more important in light of growing concerns surrounding global feed ingredient and amino acid supply vulnerabilities. Recent industry reporting highlighted how concentrated global production of critical feed ingredients and vitamins has created major supply chain chokepoints, particularly tied to international dependency and pricing pressures.
Research from Decision Innovation Solutions and related industry analysis has shown:
• China’s vitamin pricing advantages have widened significantly in recent years
• Key feed ingredients and amino acids remain vulnerable to supply disruptions
• Agricultural and livestock industries face increasing exposure to global supply concentration risks
These vulnerabilities create ripple effects across feed production, food costs, agriculture, transportation, and manufacturing sectors throughout the United States.
At Decision Innovation Solutions, we believe strong policy begins with understanding the complete economic picture. Minnesota’s geography, industries, infrastructure, and agricultural economy are unique. Policies should reflect the realities of the businesses, farmers, truckers, manufacturers, and families who help power the state every day.
Economic research matters because decisions made today shape affordability, competitiveness, and resilience for years to come.