Michigan, Tennessee Plan for the Future of Renewable Fuels

During his keynote address at this month's renewable energy conference in St. Louis, President Bush informed attendees that the number of U.S. ethanol plants is expected to increase 40 percent in 2007. As the market for biofuels like ethanol grows, many states are creating plans to support businesses and research that can fill the current need for renewable alternatives at the pump. Among the states having taken steps to build a profitable alternative fuels industry and cleaner and safer highways are Michigan and Tennessee.

 

Michigan

Michigan Gov. Jennifer Granholm has made the first round of appointments to the state's recently approved Renewable Fuels Commission. The appointees will oversee Michigan's efforts to promote the production and distribution of petroleum alternatives, as well as the manufacture of vehicles that capitalize on eco-friendly biodiesel and ethanol technologies. The Commission will identify new ways to spur fuel research and recommend alternative fuel strategies to the governor and legislature.

 

Twenty-five representatives from the state's research universities, fuel producers and suppliers, automotive manufacturing sector, corn and soybean growers, and economic development agencies will serve on the Commission. David Cole, chairman of the Michigan Economic Development Corporation's Center for Automotive Research, will represent the state's lead economic development group. The commission, which will exist within the state Department of Agriculture, is expected to issue a report on its findings by next July. Follow-up reports will be published annually through the year 2010.

 

Gov. Granholm approved the commission in July, as part of a seven-bill package to promote the use of ethanol and biodiesel fuel blends. The package also reduces the tax on fuels that contain at least 5 percent biodiesel by 20 percent and lowers the tax on blends that contain 70 percent or more ethanol by 36 percent. Another provision permits the establishment of agriculture renaissance zones to support the construction of new ethanol and biodiesel plants. These zones provide tax breaks for any biomass energy plant or facilities for agricultural and forest product processing that are often necessary for biomass plants. Since the zones were announced in July, Michigan's first two biodiesel plants have opened in Gladstone and Bangor, Mich. Four ethanol plants have broken ground since 2003, and plans for two additional plants were announced in August.

 

The commission will evaluate the effectiveness of these measures and guide the state's financial investment in research and infrastructure to support alternative fuels. Currently, the Michigan Strategic Fund offers matching grants for service stations that install specialized fuel pumps and for bulk fuel plants adapting their equipment to accommodate ethanol and biodiesel blends. In addition, this year's inaugural round of awards from the state's 21st Century Jobs Fund has provided $8.9 million in financial support for four applied research and commercialization projects within Michigan companies.

 

Read the full list of appointments at: http://www.michigan.gov/gov/0,1607,7-168--153361--,00.html

 

Tennessee

Last week, Gov. Phil Bredesen of Tennessee released the details of his plan to increase the production and use of renewable fuels in the state. Bredesen's plan reflects the findings of the Tennessee Alternative Fuels Working Group, a body convened by the governor earlier this year to devise a statewide strategy to promote ethanol and biodiesel.

 

Bredesen's plan would make $1.5 million available through the Tennessee Department of Transportation grant program to establish a network of ethanol and biodiesel fuels outlets throughout the state. Additional funds would be used to educate local governments about renewable fuels and ensure that local automotive fleets meet federal air quality standards.

 

The state's most recent budget set aside $4 million to fund the states alternative fuel initiatives. These funds will be used to establish biofuel demonstration plants and to leverage U.S. Department of Energy investment in research projects at the University of Tennessee and Oak Ridge National Laboratory.

 

Read the governor's press release at: http://www.tennesseeanytime.org/governor/viewArticleContent.do?id=890