Michigan Gov. Jennifer Granholm is considering legislation that would
lower the state tax on biodiesel from 15 cents per gallon to 12 cents.
If the governor signs the bill, The
Associated Press reported that it would also drop the tax on ethanol
from 19 cents to 7 cents. About $2.5 million would be set aside to cover the
tax cut for up to 10 years.
The AP reported
that the bill has drawn controversy in the state because some legislators say
the tax money is needed to pay for the state’s transportation infrastructure,
including upgrades and repairs on roads, bridges and other needs.
Some legislators have even been pushing for a fuel tax increase, a move
that has become unpopular with voters as fuel prices continue to rise.