Michigan House approves biodiesel bills

| Friday, March 17, 2006

Michigan’s House of Representatives approved several bills on Thursday, March 16, aimed at increasing the use of alternative fuels within the state.

The Associated Press reported that one of the bills would give incentives for buying ethanol-blended gasoline and B5 biodiesel blends.

The tax would be 12 cents per gallon on those fuels, compared to the current 19 cents per gallon for gasoline and 15 cents per gallon for regular diesel fuel. The state’s Treasury Department officials estimate that the tax would initially cost the state about $100,000 per year in lost revenues, according to The AP.

Another bill passed by the House would give fueling stations grant money to cover the cost of adding ethanol and biodiesel pumps.

A third bill would expand Michigan’s renaissance zones – areas targeted for economic development – to cover the manufacturing of alternative fuels, The AP reported.

The bills have now been sent to the Senate for consideration.

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