Armed with a quarter of a million dollar federal grant, the state of Michigan has announced it wants to have 1,000 biofuel pumps in place by 2008.

That’s a tall order, considering the state only has a handful of biodiesel and ethanol pumps right now.

A press release from the governor’s office says the grant money will be used to help retailers put in new pumps. A new Michigan law will also speed the process by cutting the fuel sales tax on ethanol by 36 percent, and on biodiesel by 20 percent.