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Ag groups speak in support of Michigan biofuels bill

Legislation to boost biofuel blending is making progress in Michigan’s state House.

Michigan Agri-Business Association President Chuck Lippstreu recently testified before the House Tax Policy Committee.

“Senate Bill 814 offers a tax incentive for fuel stations to carry E-15 and offer it to consumers,” he explains.

He tells Brownfield E-15 can be used in most all cars and light duty trucks built in the last 20 years and it provides up to 14 cents per gallon in savings at the pump.

“There are studies that have shown more than a half a billion dollars of economic benefits would be pumped into Michigan in terms of GDP increase, so this is a bipartisan bill for a reason,” he says.

Lippstreu says more than 2,700 fuels station in the Midwest offer higher ethanol blends like E-15, but there are only 10 in Michigan.

The bill offers qualifying retailers a tax credit for every gallon sold of higher ethanol blends, including $0.05 per gallon of E15 and $0.085 per gallon of E85.

The bill passed the Michigan Senate earlier this year and is also supported by the Michigan Corn Growers Association, Michigan Farmers Union, Clean Fuels Michigan, Michigan Farm Bureau, POET, Growth Energy, and others.