REP. TOM MEYER
Renewable Fuels
by Rep. Tom Meyer

Thumb-area farmers received good news recently as a result of action by the Michigan House.

The state House approved legislation to help spur growth in Michigan's agriculture industry by encouraging retail access to renewable fuels such as ethanol and biodiesel.

As many people know, a nationwide effort is under way to reduce dependency on foreign oil and develop innovative ideas to rebuild the economy. Legislators and Michigan residents see this legislation as a way for the state to move forward in producing renewable fuels and follow the president's call for more research into these fuels.

I believe the package is a huge step forward in reaching our goals and objectives with increasing the development and access of renewable fuels in Michigan. By partnering agriculture and automakers, our two largest industries, we are providing the state with a means to improve economic development in Michigan and bring in more business.

Two primary players in the renewable fuels market are biodiesel and ethanol. This package focuses on an 85 percent blend of ethanol, called E85, and a five percent blend and up of biodiesel, called B5. Biodiesel is a cleaner burning diesel fuel made from natural renewable sources such as soybean oil. Ethanol is a clean burning high-octane fuel primarily produced today from corn kernels.

Michigan automakers are already in the process of producing more fuel-efficient vehicles to run on E85 fuels. As GM and Ford will produce 650,000 E85 vehicles this year alone, Michigan needs to increase its availability of gas pumps that provide E85 to fuel these automobiles.

There are currently only four gas stations in Michigan containing E85 fuels for the fuel-efficient vehicles made by Michigan automakers.

The package:

• Provides tax incentives for renewable fuels;
• Gives gas stations the opportunity to receive a grant of up to 50 percent of the total cost for converting an existing gas station to be E85 or B5 fuel efficient;
• Offers a grant for 50 percent of the total cost for the construction of a new E85 pump, which could be up to $15,000 per facility providing more business and economic development Michigan retailers;
• Requires state flex fuel vehicles to use the fuels they were designed for;
• Creates 10 new renaissance zones in Michigan to be used specifically for manufacturing alternative energy to increase the supply of E85 for Michigan business and industry; and
• Requires the Department of Agriculture to test diesel fuels to ensure Michigan residents are receiving the best quality fuels.

The proposal will provide a stable infrastructure for the development of renewable fuels, while encouraging job creation for Michigan residents. This legislation is a win for this great state and brings Michigan to the forefront in addressing our long-term energy needs.

The package now heads to the state Senate for consideration.

If anyone has any questions or concerns about state government, do not hesitate to call me toll free at 1-888-254-5284. Residents can also reach me through e-mail at tommeyer@house.mi.gov. I look forward to hearing from you.