Calls for Tax Credits for Alternative Fuels, Other Incentives
LANSING - With gas prices speeding toward the $3-per-gallon mark, House Democrats today unveiled a multi-bill legislative package aimed at driving down the cost of diesel fuel and gasoline by decreasing our dependence on foreign fuel.
"We need to take serious steps to relieve the pain at the pump we're all feeling," said Rep. John Espinoza (D-Croswell), a lead sponsor of the legislation. "We're in the middle of the biggest run-up in oil and gasoline prices we've ever seen. It's time to take action to address the problem and ensure our long-term energy needs are met."
Rep. Gary McDowell (D-Rudyard), another leader in the effort to find long-range solutions to soaring gas prices, expressed deep concern over the toll higher gas prices are taking on small businesses and the overall economy.
McDowell, a teamster who drove a UPS truck for more than 30 years, put the blame squarely on "our dependence on foreign oil and the monopoly held by the big oil companies."
"Relying on foreign oil is bad for consumers, bad for the environment and bad for our wallets," McDowell said. "Right now, consumers are stuck in a foreign oil barrel and we're heading over the edge of the falls. We need to develop the fuels of the future right here in Michigan."
The multi-bill Democratic package includes:
* giving tax credits for gas retailers and blenders who purchase special equipment for biodiesel and ethanol products to encourage investment in the fuels of the future;
* promoting the use of alternative fuels by encouraging the state fleet to use biodiesel fuel, E-85 vehicles --- those with an 85 percent blend --- or American-made hybrids and encouraging local governments to do the same;
* creating a commission to promote the research and use of ethanol, biodiesel and other renewable fuels;
* requiring that all gasoline sold in Michigan consists of 10 percent ethanol; and
* establishing a B5--- five percent biodiesel --- requirement for diesel fuel.
Rep. Jeff Mayes (D-Bay City), a ranking Democrat on the House Committee on Agriculture, highlighted the many benefits of alternative fuels across various sectors of the economy.
"Decreasing our dependence on foreign oil with ethanol and biodiesels is a surefire way to create jobs, fuel economic prosperity in our agriculture community and bring price relief at the pump. It's also better for our air, land and water," Mayes said.
Promoting the production of alternative fuels also has additional economic benefits for Michigan farmers. Biodiesel is made from soybeans and ethanol is made from corn, both major agricultural commodities in our state. A third source of energy that is also produced in Michigan is sugar, which can be converted to an alcohol-based fuel blend that is more efficient and more environmentally friendly.
Three Michigan companies already are planning to build biodiesel plants and 40 percent of corn grown in the Thumb goes to an ethanol plant in Caro.
Rep. Dudley Spade (D-Tipton), who also is sponsoring a bill in the package, predicted the legislation, if passed, will lead to more Michigan jobs by "opening doors of opportunity in emerging fields." These fields include using existing technology to produce and use more biodiesel and ethanol, the development of technology to allow vehicles to use a higher percentage of bio-fuels, and the exploration of alternative fuel options such as fuel cells.
"With our auto manufacturing expertise and sizable agricultural economy, Michigan is a natural place to expand fuel options for existing and future vehicles," Spade said. "We can and should be the world leader in developing alternative and renewable energy sources."
Rep. Kathleen Law (D-Gibraltar), a research scientist and long-time advocate for renewable fuels, said, "Developing the homegrown fuels of the future will create jobs, clean the environment and help break our dependence on foreign oil."