Michigan's Future as a Biofuels Leader

Today the Green Machines Tour was at the Capital in Lansing, MI to watch the Governor’s Renewable Fuels Commission present their recommendations to the state legislature.  The Commission has been hard at work for the past 8 months debating policies to promote biofuels in the state.  The Green Machines Tour’s Charles Griffith was appointed by the governor to be on the commission, and he fought to incorporate recommendations that would ensure the sustainability of biofuels.  What came out of his and the other commissioners’ efforts is a broad set of regulations and incentives that would propel Michigan into a leadership role in the bio-energy sector – but only if the governor and legislator act on them.

It’s quite well known these days that renewable fuels hold potential to reduce CO2 emissions and dependence on oil. If done responsibly, biofuels could also be implemented without negative impacts to our natural ecosystems (see related post and video clip "Talkin' Biofuels with Jim" ).  And they could help increase local investment, income and jobs in the state - providing a much needed boost to Michigan’s economy.

Of course, biofuels are not a guaranteed win for the state or the environment.  In order to maximize the benefits of biofuels in Michigan, and minimize some of the potential negative impacts, we find some key recommendations in the Commission’s report to be particularly important:

Low-Carbon Fuels Strategy
A “Low Carbon Fuels” approach would require that an increasing amount of low carbon fuels – such as ethanol from agricultural  “wastes,” perennial grasses and trees – be sold in the state.  This approach is being pursued in California and would go a long way toward growing the market for new cellulosic fuels, which hold the most promise for reducing green house gas emissions and gasoline usage.  It would also put Michigan in a good position if/when carbon emissions are regulated in the future.

Next-Generation Fuel Feedstock Program
In order to speed up production of new feedstocks for low carbon fuels, incentives are needed to help farmers transition to growing next-generation energy crops.  A comprehensive package listed in the recommendations includes payments to landowners that produce dedicated energy crops in sustainable agronomic systems; tax incentives or loan guarantees for the purchase of new equipment; and research and technical assistance on sustainable energy crop production. These policies would reduce risk to farmers, encouraging them to invest in biofuels crops that have a long lead-time and a limited current market.

Green Retailers Program
To ensure a growing market for renewable fuels, establishment of a fueling infrastructure for E85 and biodiesel is needed in the state. In addition to increased incentives for installation of new renewable fuel pumps, the Commission also recommends a “Green Retailer” program that would reward retail and wholesale outlets that sell a certain percentage of renewable fuels. This is an innovative program that Michigan would be first to implement.

Of course, additional measures would also be needed that maximize environmental performance at every step – including feedstock production, fuel production and distribution.  These environmental requirements are essential for ensuring public benefits, such as biodiversity, soil and water conservation, and clean air.

Together, the above programs would send a loud message to potential investors that Michigan is serious about biofuels, and that investing in them here is a smart idea.  The state needs to hurry up and implement these policies before all the investment dollars go somewhere else.

Learn more about biofuels -

Related posts:
Interview with Jim Kleinschmit from Institute for Agriculture and Trade Policy
The Corn’s Cookin’ in Iowa
Growing the BioEconomy in WI

Websites:
Green Machines Tour
Institute for Agriculture and Trade Policy
Michigan Renewable Fuels Commission