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Granholm signs bills advancing Renewable Fuels

LANSING, Dec. 26, 2008: Governor Jennifer M. Granholm has signed legislation that will advance the state’s efforts to expand the production and use of renewable fuels in Michigan. The eleven bills were part of a series of recommendations from the state’s Renewable Fuels Commission, established in 2006. 

The legislation includes five additional renewable energy renaissance zones, creation of a Renewable Fuels Fund to promote the production and use of alternative fuels, and new tax incentives for the purchase of equipment capable of harvesting biomass and the conversion of existing gasoline pumps to pumps capable of delivering ethanol, biodiesel or other forms of renewable fuels.

Governor Jennifer M. Granholm

Public Act 329 of 2008, sponsored by Representative Frank Accavitti (D-Eastpointe), adds five additional renewable fuels renaissance zones in Michigan, bringing the total to fifteen.  Renaissance zones are specific geographic areas designated as tax exempt to encourage economic development.  Additionally, the new law requires that five of the state’s renewable fuels renaissance zones be designated for facilities that focus primarily on cellulosic biofuel production.

Public Acts 314, 332 and 334 of 2008 create tax incentives for the use of agricultural machinery that can harvest both grain and biomass.  These bills encourage farmers to invest in equipment that will allow them to harvest their crops while also collecting biomass residue from the crop or grain that can be used in alternative fuel production.  The bills were sponsored by Representative Paul Condino (D-Southfield), Senator Patty Birkholz (R-Saugatuck) and Representative Gary McDowell (D-Rudyard), respectively.

“The next generation of alternative fuel will be produced from non-food sources like wood waste, switchgrass, algae or other waste products,” said Granholm.  “Creating incentives to help ensure that the research and production of these next generation fuels are done here in Michigan will help ensure that the jobs created are here, too.”

Public Acts 321 and 322 of 2008, sponsored by Senators Cameron Brown ( R-Fawn River Township ) and Michael Switalski (D-Roseville), respectively, create a new Renewable Fuels Fund to promote the production and use of alternative fuels in Michigan . Citizens will have the option to contribute to the fund through a new check off on the state income tax form.

For more information on the Renewable Fuels Commission, visit:  www.michigan.gov/rfc   






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