LANSING – State Representative Gabe Leland (D-Detroit) and his House Democratic colleagues passed a package of bills today that will help ease the pain at pump for Michigan motorists, spur investment in renewable Fuels of the Future, including ethanol and biodiesel, and reduce Michigan's dependence on foreign oil.
"Michigan is quickly becoming a leader in alternative fuels and this plan will push our state further ahead," Leland said. "It is important to invest in ethanol and biodiesel to help boosts Michigan's agricultural industry. This is the kind of change our farmers, motorists and residents in Detroit and throughout the state want to see."
The package will:
- Create incentives for gas station owners to install equipment for ethanol and biodiesel. Gas station owners will be eligible for grants ranging from up to $2,000 to update a current pumping system to up to $15,000 to install a new system.
- Create an alternative fuel tax of 12 cents a gallon for gasoline that is at least 70 percent ethanol and diesel that is at least 5 percent biodiesel, down from 19 cents a gallon.
- Require that the state install fuel pumps that dispense biodiesel and E85 for the state fleet.
- Create a Renewable Fuels Commission to investigate and recommend strategies for encouraging the use of alternative fuels and educating residents on their benefits.
- Establish new renaissance zones for renewable energy facilities.
Biodiesel is made from soybeans and ethanol is made from corn; both are major agricultural commodities in Michigan. Ethanol costs an average of 70 to 80 cents less than regular gasoline, which will help reduce gas prices for Michigan motorists. In addition, increased investment in alternative fuels will help create jobs as new facilities are built across the state. In April, Governor Jennifer M. Granholm announced that 20 new E85 stations will be established across the state.
"In these tough economic times, we have to help our motorists save money at the gas pumps," Leland said. "Gasoline prices continue to climb and gasoline is becoming more and more unaffordable. This plan will give our motorists the relief at the gas pump that they need and deserve."