A new transportation bill in the state Senate aims to use marketplace incentives to develop so-called "clean fuels."
The bill has wide support from the biofuel, auto, and utility industries, but some environmental groups say it's flawed and needs significant modifications, and critics of large-scale animal farms say it could devastate rural communities by encouraging Concentrated Animal Feeding Operations, or CAFOs.
Senate Bill 275 would set a state standard for the amount of carbon dioxide emitted per unit of fuel. Companies making fuel that beats the standard could generate credits to sell to companies that don't meet the standard.
Cleaner fuels could include gasoline, diesel, biodiesel, ethanol, methane gas from landfills, natural gas, biomethane from manure or other waste, and also — most importantly — electricity.
Supporters say the bill could create billions of dollars in credits, lower emissions over time as cleaner fuel producers are rewarded, and encourage innovations in cleaner fuels.
Jane McCurry is with Clean Fuels Michigan, a coalition of businesses and other groups that support the bill.
"So you'd have folks like electricity providers, charging station owners, renewable fuel providers, earning a premium for those fuels in the state and pushing the market towards those lower carbon fuels," she said.
Justin Carpenter, policy director for the Michigan Energy Innovation Business Council, said the legislation is critical to creating more clean transportation jobs and enabling the widespread electrification of mobility across the state.
"The MI Future Mobility Plan set a goal of 2 million electric vehicles and 100,000 electric vehicle chargers across the state by 2030," Carpenter said in a statement. "To achieve those goals, we need policies like a clean fuel standard to incentivize electrification with appropriate market forces."
The Michigan Environmental Council says it opposes the bill, however, and Sierra Club of Michigan says it cannot support the bill in its current form.
Tim Minotas, the Sierra Club chapter's deputy legislative and political director, said in a statement that a clean fuel standard can be a useful tool — if it's one part of a comprehensive suite of policies aimed at net zero transportation emissions.
"Done poorly, which SB 275 does, a clean fuel Standard could have substantial negative impacts across Michigan, such as actually increasing emissions, and negatively impacting our land, air, and water by promoting ineffective voluntary agricultural practices — and incentivizing dirty fuels such as ethanol, biomethane, and the further build-out of fossil fuel infrastructure over electrification. "
The bill as written is also opposed by Michiganders for a Just Farming System, a coalition of people and groups fighting what they say are harmful effects of factory farming.
In a statement, the group said "Monetizing manure encourages further livestock industry consolidation and greater CAFO herd sizes. More and bigger factory farms mean more manure, water pollution, and (greenhouse gas) emissions. It will cater to industry interests and unduly benefit fossil fuel and other energy companies and the industrial dairy sector at the expense of rural communities and the planet."
SB 275, referred to the Senate Committee on Energy and Environment, has not yet been scheduled for a hearing.
