The Minnesota Legislature is considering a bill that would create a $5 million tax credit for the biofuel industry that would aid in the development and expansion of the industry, according to Minnesota Public Radio.
Environmentalists were initially against the bill because ethanol’s main ingredient – corn – can aid in pollution, MPR reported.
"It's a summer annual that is in the summer actively soaking up water and fertilizers, but in the spring or in the fall the land is basically bare, and that's when we get the heavy pollution," Steve Morse, executive director of the Minnesota Environmental Partnership, told MPR.
A compromise was reached by requiring 50 percent of the fuel to be made of perennials, like alfalfa and prairie grass, after five years, reported Midwest Energy News.
The bill has been approved in committees in both the House and the Senate and would be effective July 1, according to MPR.