Biodiesel supporters are asking Michigan lawmakers to pass a tax incentive to accelerate production and availability of the fuel.
Michigan Soybean Association’s Ben Steyer says while two plants in the state produce more than 16 million gallons of biodiesel annually, it is not easily accessible.
“A recent survey of 250 retail fuel stations across Michigan show that only three stations carried biodiesel blends of B5 to B20,” he shares.
Head of the Detroit Wayne County Port Authority Mark Schrupp says cargo activity at the Port creates more than 27,000 tons of carbon emissions each year and biodiesel is the fastest way to meet emission reduction goals.
“The number one strategy to reduce emissions immediately is using biodiesel,” he says. “We need more biodiesel in the fuel centers throughout Southeast Michigan so those truck drivers have the option to choose biodiesel and improve air quality.”
Jeff Earl with Clean Fuels Alliance America says House Bill 4847 is similar to other legislation across the Midwest and will cause a value-added ripple effect for local communities.
“We know that the feedstock that is being grown in these states is staying there, the beans being crushed there is being produced in these states and it’s adding that value back to the local economies,” he says.
House Bill 4847 would provide fuel retailers tax credits of $0.02 per gallon for the sale of B5+ fuel and $0.05 per gallon for B11+ fuel through 2029.
Originally shared by Brownfield Ag News, May 20, 2023. Title updated for clarity and purpose, May 21, 2024.