From:
gov_office@MICHIGAN.GOV [mailto:gov_office@MICHIGAN.GOV]
Sent: Tuesday, August 29, 2006
1:34 PM
To: GOV-NL@LISTSERV.MICHIGAN.GOV
Subject: Grants for ethanol and
biodiesel fuels
Governor Granholm Announces Goal of 1,000
BioFuel Pumps by 2008; Announces $250,000 Grant Program
Second round of grants to help defray
costs
LANSING –
Governor Jennifer M. Granholm today announced that the state of Michigan will work to have 1,000 biofuel pumps by 2008 to
make ethanol and biodiesel fuel more accessible to Michigan motorists. To reach that
goal, the governor announced a $250,000 grant program to help service station
owners defray the costs of installing or converting infrastructure at public
service stations to provide ethanol and biodiesel fuel to Michigan consumers. This is the second
round in a series of grants being made available by the state.
“Michigan
is moving aggressively to increase production and use of both ethanol and
biodiesel fuels,” Granholm said. “Ethanol and biodiesel
production facilities are coming on line. We’ve cut taxes on the
purchase of these fuels, and now, thanks to this grant program, we will greatly
expand access. Expanding access and use will help reduce the cost of gas
for all of us.”
Five ethanol plants are already in production in Michigan, with two more
under construction. Two biodiesel plants are also beginning production,
with another plant in the works. In addition, the legislative package
signed by the governor in July cut the gas tax by 36 percent for the purchase
of ethanol and 20 percent for biodiesel.
Granholm said that Michigan’s
investment in alternative energy production and use will benefit consumers in
the long-run as increased use of ethanol and biodiesel helps reduce the demand
for foreign oil. In the short-term, Granholm said the state is doing
everything in its power to protect consumers at the pump, including doubling
the number of inspections this year to ensure that consumers are receiving the
quantity and quality of gasoline they are paying for. The governor said
that President Bush could provide short-term relief, as well, by capping
outrageous oil company profits.
“It’s time for President Bush to stand up for Michigan citizens and
cap big oil’s outrageous profits,” said Granholm. “That
will provide our citizens immediate relief from high gas prices, while our
long-term solutions take route and end our dependence on foreign oil once and
for all.”
Legislation signed by the governor in July called for the
creation of this program to increase the number of retail outlets throughout
the state that provide ethanol and biodiesel to fleet owners and the
public.
To implement the grant program, the state is seeking
proposals from 501(c) (3) nonprofit corporations for state projects to provide
incentives to service station owners to convert existing pumps or install new
ethanol and biodiesel pumps. Ethanol and biodiesel are clean burning
fuels that can be made from renewable resources grown in Michigan. Most ethanol is made from
corn, and biodiesel is made from vegetable oils and waste grease. Over
the last two years, rising oil prices and an increased number of biofuel
production facilities in the U.S.
have helped reduce the price difference between petroleum fuels and bio-based
alternatives.
Today’s announcement is the second phase of the grant
program. In July, NextEnergy received a $62,500 grant to provide the
first round of grants to service stations. The initial grants are
expected to be awarded in September.
“This program will greatly expand the availability of
ethanol and biodiesel to consumers throughout Michigan,” said Bob Swanson, director
of the Department of Labor and Economic Growth, which will oversee the
program. “Michigan farmers will
benefit through increased demand for corn and soybeans, Michigan
citizens will enjoy cheaper gas prices and a cleaner environment, and Michigan’s economy
will be strengthened through increased investment in infrastructure and a
decreased reliance on foreign oil.
Funding for the Biofuel Infrastructure Incentive Program was
made available through a grant from the U.S. Department of Energy
(www.energy.gov). The program will be administered by the Department of
Labor and Economic Growth (DLEG) Energy Office, (www.michigan.gov/energyoffice)
in cooperation with the Michigan Strategic Fund.
# # #