Program Purpose
The purpose of CEC's Biofuel Infrastructure Grant Incentive Program is to offer financial incentives to increase biofuel infrastructure (ethanol and biodiesel) in Michigan. For 2008 & 2009, we are offering infrastructure incentives for E85 (85% Ethanol) conversions through a grant from the Michigan Department of Energy, Labor, and Economic Growth - Energy Office. (DELEG). Additional support for 2008 and 2009's project has been provided by the Corn Marketing Program of Michigan (CMPM).
The Problem That This Program Addresses
Rising oil prices have highlighted the need for domestic sources of transportation fuel. E85 and B20 are alternatives to petroleum-based fuels. They have been proven to burn cleaner than petroleum, and are part of an economic strategy that favors domestic production of energy from renewable sources. Service station owners are unaware of available government incentives available for installing or converting to biofuels infrastructure, which can reduce the cost and risk of developing such infrastructure. With federal and state incentives combined, a station owner may qualify for up to a 50% cost reduction. Finally, Michigan needs an effective delivery approach to expand the public biofuels infrastructure for both consumers and area fleets that must rely on accessible service stations for refueling.
Program Objectives
Increase biofuel infrastructure along major highway corridors and in urban areas throughout Michigan with incentives for installing such infrastructure at retail locations. Sites for biofuel infrastructure should accommodate travel routes of EPAct mandated fleets that have purchased flexible fuel vehicles and/or alternative fuel credits
E85 Conversion Incentive
The Clean Energy Coalition has received funding for 2008 and 2009's E85 Infrastructure Conversion Project from the State of Michigan Department of Labor and Economic Growth - Energy Office. A total of $188,000 is available with individual incentives of up to $5,000 per facility (not to exceed 50% of E85 conversion costs).
Funds can be used for costs associated with purchasing and installing necessary materials and equipment parts compatible with E85, for "hanging hardware" necessary for the dispensing of E85, for cleaning of tanks, and for on-site signage that advertises the availability and/or price of E85.
E85 Marketing Materials
Reduced price E85 marketing materials - including pump wraps, pump toppers, information posters, and magnets - are available to Michigan public service stations and fleets. Download an application or contact us.
Additional Alternative Fuel Incentives
State of Michigan Tax Credit: 30% of conversion cost after receiving CEC's $5,000 incentive (PA 335; download the paperwork here).
Federal Tax Credit: 50% of total conversion (up to $50,000) - Form 8911 must be used to claim the tax credit (download it here).
State of Mchigan Biofuel Signage Rebate Program: 50% of costs to design, install, and pay the first year's annual fee for signage. Download the application form here.
Eligibility
Incentives are available for both retail and public fleet locations. Incentive applications demonstrating any of the following will be given priority: stations along interstate corridors within one mile of an exit; stations located on major connectors and intersections in or near large metropolitan areas; stations near large fleets of E85 FFVs or stations that serve large numbers of federal or state government or other EPAct mandated fleet vehicles. Public fleet applications will be prioritized based on demonstrated quantity of E85 to be dispensed. Ethanol fuel blends lower than E85 are not eligible for incentive funds.
Applicant Responsibilities
Incentive grant recipients will be required to comply with the following:
- Provide documentation acceptable to the Clean Energy Coalition, including: (a) a signed and completed "Checklist to Convert Equipment to Dispense E85" and (b) project invoices detailing costs associated with purchasing and installing necessary materials and equipment parts compatible with E85, for "hanging hardware" necessary for the dispensing of E85, for cleaning of tanks and for on-site signage that advertises the availability and/or price of E85, and verifying that the incentive funding requested is not greater than 50% of the costs to convert an existing fuel delivery system; not to exceed $5,000 per facility.
- Complete the E85 delivery system and make it available for public use by no later than July 1, 2009.
- Provide ongoing project updates to CEC as requested throughout the fuel delivery system conversion process.
- Provide E85 continuously for a minimum of three years commencing when the delivery system is operational. If this commitment is broken, a portion of the grant/incentive must be repaid (see P.A. 274 of 2006, Sec. 78(2)c to determine amount of repayment).
- Prominently display price/menu signs for promoting E85 at roadside along with other fuels (sandwich board style signs not acceptable).
- Utilize approved pump stickers and nozzle covers to label biofuels.
- Competitively price E85, barring any large market fluctuations, with that of regular gasoline.
- Install a card reader for major credit cards and fleet cards at the E85 pump.
- Track and report to CEC the number of gallons of E85 used on a quarterly basis for the duration of three years identified in item number 4 above.
- Host a promotional/press event to promote the pump opening and market fuel availability in cooperation with DELEG - Energy Office, and other partners such as CEC, the Corn Marketing Program of Michigan, or National Ethanol Vehicle Coalition.
- Promote E85 availability on an ongoing basis including display of E85 brochures.
Proposal Solicitation, Review, and Award Process
Applications for BIG E85 Conversion grants are open and subject to monthly review until all grant funds have been committed.
More Information?
If you would like additional information on this program including application instructions, contact Robyn Skodzinsky today!