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FAQ: Propane Resilience Enhancement Program

Questions Received - Updated May 17, 2024

  • For consistency, the preference is to provide answers in the text boxes if possible. The format of the application forms has also been updated to allow additional text. Applicants should also submit additional information as an attachment if it is not included in the application form.

  • Completed and operational projects are not eligible for the grant. In-progress projects will be considered, however, preference may be given to projects that have not yet begun (will depend on number of grant applications). Grant applications should provide details relating to construction timing.

Frequently Asked Questions

  • Part A

    Applicants for PREP Part A grants should be propane storage and distribution companies or large-scale customers or entities, like local units of governments, agricultural entities, and railroads, that control the property and are undertaking the project to enhance propane supply and resilience. Applicants must be a registered corporation with the Michigan Department of Licensing and Regulatory Affairs (DLARA).

    Part B

    Applicants for PREP Part B grants should Applicants for PREP Part B grants should be propane fractionation, pipeline transport, or wholesale storage and distribution companies that are licensed to do business in Michigan and are undertaking the project to enhance propane supply and resilience.

  • Part A

    Grant funding is restricted to activities that support the development or expansion of wholesale and retail propane storage capacity in Michigan. Eligible costs include, but are not limited to, storage tanks, truck turnouts, loading/unloading equipment, safety and security equipment, and related permanently affixed equipment specific to trucking or rail integration.

    Part B

    Grant funding is restricted to activities that support expanded propane storage, pipeline, or fractionation capacity in Michigan. Eligible costs include, but are not limited to, storage tanks, underground storage development or expansion, fractionation equipment, pipeline and associated equipment, truck turnouts, loading/unloading equipment, and site preparation for new facilities.

  • Work items listed as eligible as part of the Michigan Department of Transportation’s (MDOT) Freight Economic Development Program (FEDP) will be considered ineligible for this program. Please see the PREP Grant Overview for more information.

  • Applicants can submit their application by email to EGLE-PREPGrants@Michigan.gov.

  • Applications must be received by June 21, 2024 using the application forms.

  • Funds must be obligated (signed grant agreement with grantee) by October 1, 2024.

  • All grant activities must be complete by November 1, 2026.

  • Part A

    The PREP can cover up to 50% of material, labor, and equipment associated with the installation or rehabilitation of propane storage infrastructure up to a maximum of $300,000 for retail providers and $600,000 for wholesale providers.

    Part B

    There is no maximum Grant award for Part B, however, funding multiple projects is preferred to ensure improved widespread resilience and affordability benefits to Michigan businesses and residents.

  • The maximums are per project location. A company may apply for multiple projects at different locations, each requesting the maximum grant amount. In evaluating project applications, however, preference will be given to awarding the most individual companies (one project per company). Companies applying for multiple projects should indicate the priority of each project.

  • Yes, if a wholesale provider qualifies for both Part A and Part B, they may apply to both as long the projects are distinct and at different locations.

  • No, applications for projects that are already completed and in operation will be rejected.

  • Wholesale providers are those that were required to submit Form EIA -782C “Monthly Report of Prime Suppliers Sales of Petroleum Products Sold for Local Consumption” to the Energy Information Administration. Additional entities may be considered wholesale distributors if the applicant can demonstrate the business distributes bulk propane supply to separate retail distributors as opposed to selling directly to consumers.

  • Part A

    Applications will be evaluated, considering the grant amount requested, for increased propane storage volume, improved propane distribution capabilities, geographic distribution (area served or improvement to regional resilience), and resilience enhancement of critical customers.  Consideration will also be given to projects that are in progress, “shovel-ready” in contrast to those in an early design phase. Projects in which all land rights have been acquired/secured will be given preference. All projects, at a minimum, must increase propane storage capacity or throughput.

    Part B

    Applications will be evaluated, considering the grant amount requested, for quantity of storage, transportation, or fractionation capacity upgrades at the facility, geographic distribution (area served or improvement to regional resilience), and resilience enhancement of critical customers. Consideration will also be given to projects that are in progress, “shovel-ready” in contrast to those in an early design phase. Projects in which all land rights have been acquired will be given preference. All projects, at a minimum, must increase propane storage capacity or throughput.

  • Grantees will provide a written project status update to the Grant Administrator each month until the project is complete.

  • Grant funds will be distributed once the project is complete and the grantee submits all relevant expense documentation to the Grant Administrator for review. Grant funds will only be issued for documented costs (invoices, receipts, etc.) of eligible activities.