Ethanol Blog

LINCOLN, Neb. (DTN) -- A measure passed by the Michigan Legislature in June to incentivize the sale of E15 in the state has been eliminated by Democratic Gov. Gretchen Whitmer during the signing the state's $82.5 billion budget for 2025 on Wednesday.

The legislature passed legislation that included a 5-cent per-gallon tax credit for E15 sold by retailers, limited to $100,000 to individual fuel retailers.

Chuck Lippstreu, president of the Michigan Agri-Business Association, said in a statement to DTN the governor's action was disappointing.

"We are disappointed Gov. Whitmer vetoed a pro-agriculture, pro-environment, pro-consumer policy that had already been approved by the Michigan Legislature," he said.

"Promoting higher biofuel blends like E15 reduces our reliance on oil, supports the rural economy, reduces harmful emissions and gives families more choices at the pump. Legislators were spot on to approve this boost for E15 fuels and today's veto by the governor was a missed opportunity."

Growth Energy said in a news release that Whitmer "used a line-item veto to single-handedly cancel" the E15 incentive.

"Gov. Whitmer's unilateral veto of Michigan's E15 tax incentive will cost consumers more money and leave carbon reductions on the table," Growth Energy CEO Emily Skor said in a statement.

"Higher biofuel blends like E15 cost less than standard fuel and are a critical decarbonization tool. Members of the Michigan legislature understood this and that's why they approved the incentive to expand access to this fuel choice. With the governor's veto Michigan drivers will now miss out on those cost savings and lose an opportunity to quickly and easily lower their carbon emissions.

"We thank the Michigan lawmakers who recognized the important role American biofuels can play in decarbonizing the vast majority of cars and trucks on the road today. It's unfortunate for Michigan drivers their governor disagreed."

Michigan has 23 fuel stations that sell E15 -- a number Growth Energy said likely would have increased had the incentive taken effect. In addition, there are five ethanol plants in Michigan that purchase over 100 million bushels of corn annually to produce over 400 million gallons of ethanol.

Read more on DTN:

"California Adoption of E15 Could Save State Consumers Billions," https://www.dtnpf.com/…

"Biden Administration Grants Summer E15 Waiver," https://www.dtnpf.com/…

Todd Neeley can be reached at todd.neeley@dtn.com

Follow him on social platform X @DTNeeley

(c) Copyright 2024 DTN, LLC. All rights reserved.