Growth Energy, the nation's largest biofuel trade association, has voiced strong disapproval following Michigan Governor Gretchen Whitmer's recent decision to use a line-item veto to cancel the state's E15 tax incentive. The incentive, enacted earlier this summer, aimed to expand access to E15, a fuel blend containing 15% American bioethanol known for its lower emissions and affordability compared to standard fuel.
"Governor Whitmer's unilateral veto of Michigan's E15 tax incentive will cost consumers more money and leave carbon reductions on the table," stated Growth Energy CEO Emily Skor. "Higher biofuel blends like E15 cost less than standard fuel and are a critical decarbonization tool. Members of the Michigan legislature understood this, and that’s why they approved the incentive to expand access to this fuel choice. With the Governor's veto, Michigan drivers will now miss out on those cost savings and lose an opportunity to quickly and easily lower their carbon emissions. We thank the Michigan lawmakers who recognized the important role American biofuels can play in decarbonizing the vast majority of cars and trucks on the road today. It’s unfortunate for Michigan drivers their Governor disagreed."
Michigan plays a significant role in the bioethanol industry as both a consumer and producer. The state currently has 23 fuel stations offering E15, a number that would likely have increased if the incentive had been implemented. Additionally, Michigan hosts five biorefineries that process over 100 million bushels of corn annually to produce more than 400 million gallons of bioethanol each year.
The veto has sparked concern among biofuel advocates and legislators who see E15 as an effective means to reduce fuel costs and carbon emissions. Growth Energy and its supporters argue that the tax incentive would have provided a dual benefit of economic savings for consumers and environmental gains through reduced carbon emissions.
