September 2, 2005

LANSING – Governor Jennifer M. Granholm today issued an executive order aimed at increasing the diesel fuel supply and lowering the price of diesel gasoline around the state.

“Michigan manufacturing and agricultural industries rely heavily on diesel-fueled trucks to move their products efficiently,” Granholm said.  “Today’s move will help ensure these businesses can remain productive while the national fuel marketplace continues to stabilize.”

Executive Order 2005-20 lifts the restriction on the use of dyed diesel fuel, which under state law can only be used for agricultural purposes and not on state highways.  This restriction is lifted until September 15, 2005.  Earlier today the Internal Revenue Service also declared that it will not impose a penalty when dyed diesel fuel is sold for use or is used on highways. 

The Governor took this action at the request of the Michigan Petroleum Association and Marathon Oil Corporation to ensure that fuel supplies remain adequate to meet the needs of Michigan's industries that rely on truck transportation.

On Tuesday, Governor Granholm declared an energy emergency in Michigan and signed three executive orders temporarily suspending state laws that restrict the supply of gasoline.  The move came one day after the Department of Environmental Quality (DEQ) asked the federal Environmental Protection Agency (EPA) for a waiver to lift the requirement for use of low “Reid Vapor Pressure” (RVP) gasoline in Southeast Michigan, which has since been granted.