July 7, 2006

Governor Signs Legislation Providing Economic Incentives to Encourage Use of Ethanol and Biodiesel

LANSING – In her weekly radio address, Governor Jennifer M. Granholm today announced she has signed a package of legislation that will, for the first time, create incentives for consumers who buy alternative fuel vehicles and service stations that make ethanol and biodiesel available to their customers.
 
“The state that put the world on wheels will be the state that makes those wheels independent of foreign oil,” Granholm said.  “As more E-85 and flex fuel vehicles are produced by the Big Three automakers, it is essential that we make biodiesel and ethanol products more widely available to encourage their use.”
 
Granholm said a portion of the $2 billion 21st Century Jobs Fund is being targeted to developing alternative energy production in Michigan.  As the automotive capital of the world, Michigan is a logical choice to be the center of alternative energy research and production.

The seven-bill package reduces the gas tax by 36 percent on fuel that contains ethanol and by 20 percent on biodiesel blends.  The legislation also provides grants to service station owners who want to renovate or expand their existing stations to make E-85 and biodiesel available and allows for the creation of new agriculture renaissance zones to help spur additional ethanol and biodiesel plants.
 
The legislation is just another step in the path to energy independence:

• Since 2003, four new ethanol plants have broken ground, quadrupling our state’s production of corn-based fuel.

• Later this month the state’s first biodiesel plant will open in Bangor.

• In its first round of funding, more than 80 alternative energy companies applied for funding from the $2 billion 21st Century Jobs Fund.

• The state has partnered with General Motors, Mejier, and CleanFUEL USA to significantly increase the number of stations where ethanol is available for purchase.

Michigan’s federal partners are also engaged in the effort to promote the use of alternative energy.  Earlier this week, Senator Debbie Stabenow challenged oil companies and Michigan service stations to dramatically increase the number of ethanol pumps available to motorists by 2008.  Also, Senator Carl Levin visited local service stations where E-85 fuel is available to encourage other stations to provide E-85 fuel. 

“All of these are important steps to fulfilling Michigan’s next great destiny – making our state and our nation independent of foreign oil,” Granholm said.

The Governor’s weekly radio address is released each Friday at 10:00 a.m. and may be heard on broadcast stations across the state through an affiliation with the Michigan Association of Broadcasters.  The address will also be available on the Governor’s website on Mondays as a podcast for general distribution to personal MP3 players and home computers.

Broadcasters Note: Governor Granholm’s radio address can be accessed through Sunday evening exclusively through the Members Only page of the Michigan Association of Broadcasters website.

Publishers Note: The text of today’s address is attached.