Daly proposes bill to boost Michigan biofuels, expand clean options at the pump

Lansing, Michigan – State Senator Kevin Daly on Tuesday introduced legislation that would help increase production of alternative fuels in Michigan and provide Michigan drivers with cleaner, more affordable options using biofuels produced using renewable energy from Michigan farms.

“Biofuels are a major economic driver for rural communities across Michigan, and help position our state to rely less on foreign oil,” said Daley, R-Lum. “This legislation will help accelerate biofuel production in Michigan and ultimately provide cheaper, cleaner fuels that are grown and produced locally.”

The legislation would create a tax credit for retailers who choose to sell alternative fuels. The bill would create a tax credit of five cents per gallon for the sale of E-15 fuel and a credit of 8.5 cents per gallon for the sale of E-85 fuel. Both credits will expire after five years unless renewed by the legislature.

“The goal of this legislation is to create an incentive for gas stations to offer a higher blend of ethanol, which will help reduce emissions, benefit Michigan corn growers, and provide drivers with additional, affordable options at the pump,” Daly said.

Supporters point out that the legislation will help ensure stable and growing markets for Michigan farmers, who supply corn to the state’s five ethanol plants.

“COVID has taken a huge chunk out of family farmers and small business owners,” said Jim Zuk, executive director of the Michigan Corn Growers Association. This incentive will drive the demand for biofuels and corn and will help them get back on their feet. The growing markets for E-15 and E-85 will generate significant new demand for Michigan corn — a game-changing factor for farm families looking to rebuild and reinvest after several tough years. We applaud Senator Daly for working to keep our air clean and keep rural communities strong.”

Gabe Currie, general manager of Carbon Green BioEnergy and industry representative on the Michigan Corn Growers Association board of directors, agreed, adding that the initiative would help Michigan become more self-reliant.

“With so much uncertainty at the federal level, it is more important than ever for Michigan lawmakers to promote new biofuel markets,” Corey said. The return on investment is clear. Statewide adoption of E-15 and E-85 would lower carbon emissions, save families money at the pump and fuel Michigan’s economy for decades to come.”

Daly agreed, saying this legislation would help Michigan families struggling with the current hike in fuel prices.

“People are getting very expensive, you just have to go to work and their daily commute around town to pick up their kids, buy groceries or go to the pharmacy,” Daly said. “This legislation would unlock the potential to increase Michigan biofuel production, create jobs, and ultimately provide cleaner, cheaper fuels that are grown and produced locally.

“I really see a lot of potential and I think this plan is going to be great for the future of our country.”

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