

| Legislative Watch |
Michigan |
6/23/06-The Senate Technology and Energy Committee has approved a bill that would give incentives for buying ethanol-blended gasoline and B5 biodiesel blends.
Sponsored by Rep. Jeff Mayes, D-Bangor Township, HB5751 would amend the Motor Fuel Tax Act to provide a motor fuel tax of 12 cents per gallon on gasoline that is at least 85 percent ethanol and on diesel fuel that contains at least 5 percent biodiesel.
The current 19-cent per gallon tax would remain on other gasoline and the 15-cent per gallon tax would remain on other diesel fuel.
The director of the Department of Agriculture would annually determine the difference between the amount of motor fuel collected at the lower rates and the amount that would have been collected had the higher rates remained in place.
The Legislature would be required to appropriate the amount of the difference annually to the Michigan Transportation Fund. If the Legislature did not make the appropriation, the lower rates would cease to be in effect beginning the first fiscal year after the year in which an appropriation was not made.
The lower rates would be no longer be effective the earlier of 10 years after the effective date of this bill; or the date that the total cumulative differential in tax receipts was greater than $2.5 million.
The bill, which already passed the House, has been sent to the full Senate for further consideration. If approved there, it would head to Gov. Jennifer Granholm’s desk.
For bill status, call (517) 373-0630.
3/17/06-The House has approved a bill that would give incentives for buying ethanol-blended gasoline and B5 biodiesel blends.
Sponsored by Rep. Jeff Mayes, D-Bangor Township, HB5751 would amend the Motor Fuel Tax Act to provide a motor fuel tax of 12 cents per gallon on gasoline that is at least 85 percent ethanol and on diesel fuel that contains at least 5 percent biodiesel.
The current 19-cent per gallon tax would remain on other gasoline and the 15-cent per gallon tax would remain on other diesel fuel.
The director of the Department of Agriculture would annually determine the difference between the amount of motor fuel collected at the lower rates and the amount that would have been collected had the higher rates remained in place.
The Legislature would be required to appropriate the amount of the difference annually to the Michigan Transportation Fund. If the Legislature did not make the appropriation, the lower rates would cease to be in effect beginning the first fiscal year after the year in which an appropriation was not made.
The lower rates would be no longer be effective the earlier of 10 years after the effective date of this bill; or the date that the total cumulative differential in tax receipts was greater than $2.5 million.
The bill has been sent to the Senate for further consideration.
For bill status, call (517) 373-0630.






