Michigan may join growing list of states using biodiesel

| Thursday, March 02, 2006

Michigan is considering legislation that would make it the latest state to endorse the use of biodiesel and other biofuels.

Though instead of passing laws that would require biodiesel and ethanol within the state, lawmakers are counting on measures such as tax breaks and grant money to do the trick.

The Daily Oakland Press, a newspaper in Pontiac, MI, reported that the measures are part of a package sponsored by a group of Republicans in the state House of Representatives.

If passed, the legislation would provide tax incentives to consumers for using renewable fuels such as ethanol and biodiesel.

It would also provide grants for gas stations to cover up to 50 percent of the total cost of converting a station to sell ethanol or biodiesel. Stations could also receive money to cover up to 50 percent of the total coast for construction of a new ethanol pump.

The legislation calls for the creation of 10 zones in Michigan that would be used for manufacturing ethanol and other renewable fuels to supply the state.

The Oakland Press reported that the package has gained support from General Motors Corp., Ford Motor Co. and DaimlerChrysler.

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