EXECUTIVE ORDER No.2005 - 20
STATE OF ENERGY EMERGENCY
TEMPORARY USE OF DYED DIESEL FUEL
WHEREAS, Section 1 of Article V of the Michigan Constitution of 1963 vests the executive power of the State of Michigan in the Governor;
WHEREAS, under Section 4 of 1982 PA 191, MCL 10.84, during a declared State of Energy Emergency the Governor may by executive order suspend a statute, an order, a rule of a state agency, or a specific provision of the statute, rule, or order if strict compliance with the statute, order, rule, or a specific provision of the statute, rule, or order will prevent, hinder, or delay necessary action in coping with the energy emergency;
WHEREAS, based on the effects of Hurricane Katrina, Executive Order 2005-16 declared a State of Energy Emergency in this state beginning on August 31, 2005;
WHEREAS, effective August 31, 2005, in response to shortages of clear diesel fuel caused by the effects of Hurricane Katrina, the federal Environment Protection Agency is temporarily allowing regulated parties to supply motor vehicle diesel fuel having a sulfur content greater than 500 parts per million with visible evidence of red dye;
WHEREAS, on September 2, 2005, the federal Internal Revenue Service declared that it will not impose a penalty when dyed diesel fuel is sold for use or used on highways;
WHEREAS, the waiver provided by the Internal Revenue Service is available only if the operator of the vehicle in which the dyed diesel fuel is used or the person selling the fuel pays the federal tax of 24.4 cents per gallon;
WHEREAS, the waiver issued by the Internal Revenue Service remains in effect through September 15, 2005;
WHEREAS, appropriate measures must be taken in Michigan to ensure that fuel supplies will remain sufficient and to assure the health, safety, and welfare of Michigan residents and visitors;
NOW, THEREFORE, I, JENNIFER M. GRANHOLM, Governor of the State of Michigan, pursuant to powers vested in the Governor by the Michigan Constitution of 1963 and Michigan law, order the following:
1. The provisions of Section 121 of the Motor Fuel Tax Act, 2000 PA 403, MCL 207.1121, prohibiting the sale, use, holding for sale, or holding for use of dyed diesel fuel are suspended through September 15, 2005.
2. The provisions of Section 122 of the Motor Fuel Tax Act, 2000 PA 403, MCL 207.1122, prohibiting a person from operating or maintaining a motor vehicle on the public roads or highways of this state with dyed diesel fuel in the vehicle’s fuel supply tank are suspended through September 15, 2005.
3. Consistent with the Internal Revenue Service waiver of federal penalties, this Order does not remove the obligation of any nonexempt person to pay state taxes on dyed diesel fuel in the same manner as other diesel fuel.
4. As used in this Order, “dyed diesel fuel” means diesel fuel that is dyed in accordance with Internal Revenue Service rules or pursuant to any other Internal Revenue Service requirements, including any invisible marker requirements.
This Order is effective upon filing.
Given under my hand and the Great Seal of the State of Michigan this 2nd day of September in the year of our Lord, two thousand and five.
JENNIFER M. GRANHOLM
BY THE GOVERNOR:
SECRETARY OF STATE