Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Clean Fuels topic
No spam. Unsubscribe anytime.
Committee hears bipartisan biodiesel tax credit package to keep production in‑state
Summary
Sponsors and industry groups told the committee HB 47‑21 and HB 47‑22 would create a capped tax incentive (up to $16 million annually; $14M for retailers, $2M for producers; sunset 2030) to spur in‑state biodiesel production and use, reduce emissions and support Michigan farmers; experts answered questions on engine compatibility, cold‑weather performance and market dynamics.
Representatives Whitner and Alexander presented a bipartisan two‑bill package to create tax incentives for biodiesel production and retail sales in Michigan, arguing the policy would both cut greenhouse gas emissions and retain Michigan‑made biodiesel that is currently shipped to other states with incentives.
Rep. Whitner told the committee studies and prior testimony show benefits to urban air quality and the agricultural economy; the sponsor and other proponents pointed to Midwestern precedents in Iowa, Illinois and Missouri. The bills would create a program capped at $16,000,000 per year, with $14,000,000 allocated to retailers and $2,000,000 to producers, and would sunset in 2030, according to testimony.
Tom Walmer, president of the Michigan Soybean Association and a sixth‑generation farmer, said biodiesel and renewable diesel offer immediate emissions reductions and a new domestic market for soybeans. "Biodiesel reduces greenhouse gas emissions by 74% compared to petroleum diesel according to the United States Department of Energy," Walmer testified, and he outlined how Michigan crops and existing production capacity could feed an in‑state supply chain.
Pete Probst of Indigenous Energy described technical details and standards. He said a 20% biodiesel blend (B20) is a "drop in" fuel that requires no engine modifications, that ASTM fuel standards ensure quality, and that cold‑weather management and additives address gelling issues. Probst said a recent survey found only about eight of 180 retail stations carried biodiesel blends, and that a state incentive would increase retail availability and keep more economic activity in Michigan.
Committee members probed the economics and policy design. Chair Altman and Rep. Brock asked why a subsidy is necessary if biodiesel can be competitive; witnesses said price structures and demand in other states—where incentives or tax exemptions reduced retail prices—explain why Michigan product has flowed out of state. Members also raised engine‑compatibility and storage questions, and proponents said fuel quality standards and industry experience have reduced early problems.
Opponents were on the public card list for future or written testimony (including Michigan League of Conservation Voters and Michigan Environmental Council). The committee took testimony, read additional supporting and opposing cards, and did not immediately vote on the bills.
