LANSING, Mich. — The state Senate recently voted to approve Sen. Kevin Daley’s legislation aimed at growing alternative fuel production in Michigan and providing cleaner, more affordable options for Michigan drivers.
“We’re seeing a major push to transition away from traditional fuels to electricity, but we just aren’t there yet,” said Daley, R-Lum. “In the meantime, folks are being priced out of driving as costs and reliance on foreign energy increases. This bill would bring Michigan to the forefront of domestic energy production using clean biofuels produced with renewable energy from Michigan farms.
“This is a benefit to Michigan drivers, Michigan farmers, and Michigan processors. It’s a win-win-win for Michiganders!”
Senate Bill 814 would create a tax credit for retailers who choose to sell alternative fuels. The bill would create a 5-cents-per-gallon tax credit for the sale of E-15 fuel and an 8.5-cents-per-gallon tax credit for the sale of E-85 fuel. Both of the credits would expire after five years unless renewed by the Legislature.
Supporters note that the legislation will help ensure stable, growing markets for Michigan farmers, who supply the corn for the state’s five ethanol plants.
“The return on investment is clear,” Daley said. “If signed into law, this would provide additional, more affordable options for Michigan drivers, ultimately saving families money at the pump. If passed, this legislation will grow Michigan’s biofuel industry and keep production local, while also creating long-term, sustainable jobs, and ultimately providing cleaner and cheaper options that can fuel our economy and our cars for decades to come.”
SB 814 is now before the House of Representatives for consideration.