In July, a group of Minnesota House members proposed a five-year effort to encourage the use of E85 within the state. The lawmakers cited the fuel's cheaper cost and rural economic development, health and environmental benefits as reasons to adopt the plan. "We're in a chicken-and-egg situation," said one of the bill's sponsors. "General Motors, Ford and DaimlerChrysler have begun to sell flexible-fuel vehicles. Motorists need to know E85 is widely available - some are unaware they already own vehicles that can use it. We will break the logjam by giving every Minnesota gas station an incentive to carry E85. This is good for everyone in the state - rural and urban, business and consumer, for better health, for cleaner air, for a stronger rural economy and most of all, for lower gas prices."

The lawmakers proposed:

• Matching grants of up to $20,000 to service stations to install E85 tanks and pumps. The cost of converting 1,500 gas stations over five years would be a maximum of $30 million. The state grants could be matched with funds from private industry or other organizations interested in promoting E85.
• A five-year property tax exemption for the value of the new E85 equipment. This removes a disincentive to adding E85 pumps, and would help stations that have already installed them.
• Requiring the state to buy E85 vehicles if a desired model has a flexible-fuel engine available.

Thirty-seven Minnesota House members co-authored the bill proposal.