April 10, 2007
Governors' plan would reduce dependence on foreign oil, protect jobs
LANSING - Governor Jennifer M. Granholm today called the National Governors Association's energy plan an important list of federal initiatives that will strengthen state efforts to reduce energy consumption and end our nation's dependence on foreign oil. Granholm, who played a key role in building consensus for the plan, said "Energy Priorities for the 110th Congress" is a call for Congress to supplement state efforts to promote clean, secure and affordable energy.
"Michigan is well-positioned to lead the nation in the development and production of alternative energy," said Granholm. "This plan, developed by the nation's governors, outlines steps the federal government should take to be an effective partner in our efforts."
The governors' plan identifies a series of specific policies they believe should be energy priorities for Congress. The policies include:
- expanding alternative fuel standards to require additional use of alternative fuels and encouraging a broad use of fuels, including corn and cellulosic ethanol, hydrogen, butanol, and biodiesel;
- requiring the U.S. Department of Transportation to increase Corporate Fuel Economy Standards (CAFE) to the maximum feasible level while balancing concerns about job, economic, safety and other impacts;
- creating tax incentives to encourage research, development and use of advanced hybrid, clean diesel, electric, flex fuel and hydrogen technologies and incentives for energy efficiency and conservation;
- extending tax credits for renewable energy to ensure that companies continue to finance renewable energy projects.
Granholm said the governors' plan will benefit Michigan's efforts to develop an alternative energy economy while protecting the state's largest employers. In particular, she was pleased to work with other governors to advance a federal alternative fuels agenda while gaining bipartisan consensus that CAFE standards should be set by federal experts based on science and facts instead of a target set arbitrarily by Congress.
"The state that put the world on wheels should be the state that makes those wheels run on clean energy produced here at home," said Granholm. "This plan makes clear that we can reduce energy consumption and reduce our dependence on foreign oil while protecting Michigan jobs."
Under Granholm's leadership, Michigan is fast becoming a national leader in alternative energy development and production.
- Eleven ethanol and biodiesel plants have opened, broken ground, or been announced in Michigan.
- The 21st Century Jobs Fund awarded nearly $9 million last year to alternative energy products expected to create more than 750 jobs in the state.
- Granholm signed legislation reducing the tax on ethanol and biodiesel so people can get a break from high prices at the pump.
- Service stations can receive incentives for installing ethanol and biodiesel pumps.
- Granholm has set an aggressive goal of having 1,000 biofuel pumps in Michigan by the end of 2008.
- The state has partnered with General Motors, Meijer, and CleanFUEL USA to significantly increase the number of stations where biofuels are available for purchase.
In her State of the State Address earlier this year, Granholm called for an additional $100 million investment of public and private resources over the next three years in research and production of renewable energy sources. In addition, the governor has called for 10 percent of the state's power to come from renewable sources within the next eight years.
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