Chair Shink,
Thank you for the opportunity to provide testimony on SB 1171. Growth Energy is the world’s largest association of biofuel producers, representing 97 U.S. plants—including two plants in Michigan—that produce more than 9 billion gallons of renewable fuel annually; 123 businesses associated with the production process; and tens of thousands of biofuel supporters nationwide. Together, we are working to bring consumers better and more affordable choices at the fuel pump, improve air quality, and protect the environment for future generations. We remain committed to helping diversify our country’s energy portfolio, grow more energy jobs, decarbonize our nation’s energy mix, sustain family farms, and drive down the costs of transportation fuels for consumers.
Growth Energy supports SB 1171, which provides certain updates to the Motor Fuels Quality Act of 1984. As a partner with fuel retailers across the country, we work to ensure statutory and regulatory certainty in the fuel retail market so that consumers have access to fuels with higher blends of ethanol, which will help them save money at the pump while using a lower carbon fuel.
We appreciate the efforts in SB 1171 to streamline Michigan’s statute with federal regulations regarding dispenser labeling for retailers offering E15. E15 is a blend consisting of 15 percent bioethanol, has been approved for use by the EPA in all passenger vehicles model year 2001 and newer, more than 96 percent of the vehicles on the road today. It is now for sale at more than 3,400 locations in 32 states.
Provisions in SB 1171 ensure the federal label required by the U.S. Environmental Protection Agency in 40 CFR 1090.1510 for retailers offering E15 is sufficient for the state and provides consumers the assurance they are filling their tank with a more affordable fuel option that is safe for their engines. The EPA label is the standard for E15 dispensers and consistent for fuel retailers across the country.
According to recent data from Environmental Health and Engineering, today’s bioethanol reduces greenhouse gases (GHG) by nearly 50 percent compared to gasoline and can provide even further GHG reductions with additional readily available technologies. A national analysis showed a reduction of 580,000 tons of GHGs annually in Michigan if E15 replaced E10 gasoline. This is the GHG reduction equivalent of removing more than 126,000 vehicles from Michigan’s roads without impacting a single driver just by using a higher ethanol-blend fuel. These emissions reductions also come with meaningful consumer cost-savings. During the summer of 2023, E15 was sold at 15 cents less per gallon where available on average nationwide.
We thank Chair Shink for introducing this bill, appreciate the collaboration with the Department of Agriculture and Rural Development, and urge all members of the committee to support the bill.