How would not replacing Line 3 impact Minnesota’s economy?

Line 3 plays an important part in Minnesota’s economy both directly and indirectly. It directly supports jobs at two oil refineries while supporting a number of communities across Minnesota through property tax revenues it generates.  Indirectly, the energy it brings to Minnesota is used to help people and businesses across Minnesota live, work, and thrive.

Minnesota’s economy would be negatively impacted if Line 3 were not replaced. It will likely result in higher prices for fuel that will make it even harder for people already facing significant economic challenges to comfortably live.

The Institute for Energy Research has concluded that “Without sufficient pipeline capacity, consumers could face energy shortages and skyrocketing prices.” This limited capacity has an impact on Minnesotans, who use over 12.8 million gallons of petroleum products every day for vehicles of all kinds, from cars and trucks to planes, boats, ATVs, and snowmobiles. As transportation of oil by rail is less efficient than by pipeline, the added cost to delivery by rail can get passed on to refineries, and then to consumers. In addition, higher transportation costs also transfer to the cost of consumer goods.

Replacing Line 3 will restore it to its full capacity, reducing the need to rely on the more expensive rail transportation.

Additionally, by not replacing Line 3 it results in Minnesotans missing out on the economic boost from the project, which includes:

  • A private investment of $2.6 billion
  • An annual increase in property taxes of $19.5 million for communities along the route
  • 8,600 quality jobs
  • Boosts to economies along the route

From increased consumer costs to missing out on jobs, tax revenue, and boosts to local economies, not replacing Line 3 would have a negative economic impact on Minnesota.

Additional Information:

Line 3 is energizing Minnesota’s economy!

Work on Minnesota’s largest infrastructure project has started and the northern Minnesota economy is already reaping the benefits. On this page we’re sharing the stories of lives and businesses positively impacted by the project.

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