Standard would benefit Michigan jobs and economic growth
LANSING – State Representative Joey Andrews (D- District 38) and leading industry organizations have partnered to introduce legislation – House Bill 5083 – to implement a Clean Fuel Standard in Michigan. A Senate version of this bill – Senate Bill 275 – was introduced in April of this year by State Senator Sam Singh (D- District 28) as a part of the Senate Democrat’s Clean Energy Future Plan.
The Michigan Clean Fuel Standard is a proposed law that would require a reduction of carbon emissions by producers and suppliers of transportation fuels. The policy would increase access to cleaner and lower-cost fuels, including EV charging, and support domestic fuel production and energy independence.
The standard requires reducing the average carbon emissions from transportation fuels over time, based on a life cycle. Fuels with carbon emissions higher than the standard generate deficits, while fuels below the standard generate credits. Credits would have a market value that varies based on the standard and market forces.
The Michigan Clean Fuel Standard Coalition stands ready to work with the legislature to implement a clean fuel standard that will adhere to these principles:
- Promote Michigan’s Leadership in Advanced Mobility: Support the creation of good-paying jobs in the clean fuels and advanced automotive industries and elevate Michigan as a leader in the transition to a zero-carbon economy.
- Remain Technology and Fuel-Neutral: Base the policy on lifecycle assessment of a portfolio of clean fuels, including biodiesel, ethanol, renewable natural gas, electricity as a transportation fuel, hydrogen, and other renewable and low-carbon fuels. The policy should follow the best peer-reviewed science and utilize the most rigorous lifecycle emissions modeling.
- Catalyze Innovation in Low Carbon Fuels: Use a performance-based standard to grow low-carbon fuel use and infrastructure with transparency, scale, and fair competition.
- Center Michigan Communities: Target the benefits to Michiganders and Michigan businesses by creating incentives to invest in the state, growing the clean fuel industries, creating good-paying jobs, and reducing pollution affecting public health and water quality in our Great Lakes.
- Build on Existing Policies: Build on existing state and federal fuel, transit & mobility, transportation decarbonization, infrastructure, and greenhouse gas emissions policies rather than seeking to replace existing policies and programs.
- Include Appropriate Safeguards: Identify safeguards and incentives to protect biodiversity, reduce potential land use impacts, consider unintended consequences at scale, safeguard customer privacy, and promote equity.
- Reward Climate-Smart Agricultural Practices: Recognize a variety of voluntary agricultural practices that contribute to the reduced carbon intensity of fuels. Reinforce and complement existing efforts by the agricultural sector to increase the adoption of practices that improve soil health and water quality.
The Coalition is supported by these 56 partner organizations:
|Alliance for Automotive
|Electrification Coalition||Michigan Clean Cities|
|ABB||Electrify America||Michigan EIBC|
|American Biogas Council||Enel X Way||The Mobility House|
|Advanced Energy United||EV Connect||Noodoe|
|AmpUp||EVgo Services||NGV America|
|BorgWarner||FLO EV Charging||Renewable Fuels Association|
|bp||FreeWire Technologies||The Coalition for Renewable Natural Gas|
|bp pulse||Generate Capital PBC||RRS|
|Clean Energy||Great Plains Institute||Southwest Detroit Environmental Vision|
|Clean Fuels Michigan||Groen Solutions LLC||SWTCH|
|Darling Ingredients||Indigenous Energy||SREC Trade|
|DC America||Low Carbon Fuels Coalition||Tesla|
|Delta Air Lines||MI Air MI Health||Toyota|
|DTE||Middle M Management||Xeal Energy|
|Ecology Center||Michigan Corn|
“If Michigan is going to continue leading the automotive industry, we must provide the right economic signals to clean fuels producers, including EV charging providers, and this bill takes an important first step in reaching that attainable goal,” said Cory Bullis, Public Affairs Director at FLO EV Charging. “FLO is building a cleaner transportation future in Michigan, but we can’t do it alone. The Clean Fuel Standard Coalition brings together organizations and advocates that are committed to diversifying our transportation fuels market.”
“As an EV-only manufacturer, we are committed to accelerating the electric vehicle transition,” said Tom Van Heeke, Senior Policy Advisor at Rivian. “A clean fuel standard would do more than just encourage electric vehicle adoption and reduce emissions–it would provide the scale and certainty for investments driving new manufacturing, innovation, job creation, and sustainable development across Michigan.”
“A Clean Fuel Standard is a market-based policy that not only supports electrification but further reduces emissions from every vehicle on the road,” said Dan Bowerson, Senior Director of Energy & Environment at the Alliance for Automotive Innovation. “Even with increasing EV goals and more stringent regulations, and the tremendous progress toward electrification, the vast majority of vehicles on the road for the foreseeable future will run on liquid fuels. To get clean liquid fuels in the marketplace, and have an impact, they need to be under development today.”
“A Clean Fuel Standard will help facilitate Michigan’s transportation future and support job growth,” said Dr. Laura Sherman, president of the Michigan Energy Innovation Business Council. ”The latest Clean Jobs Midwest report showed an 11.2% increase in clean transportation jobs, making it the fastest growing clean energy sector. A clean fuel standard will help further grow Michigan businesses and create even more well-paying jobs, bringing new talent and investment to the state.”
“Public-private collaboration is a key component of Delta’s bold sustainability strategy,” said Amelia DeLuca, Delta’s Chief Sustainability Officer. “Home to Delta’s Detroit hub, Michigan is positioned to lead in building a robust clean energy economy. Delta applauds Michigan lawmakers for prioritizing the transportation industry’s path to net zero through the Clean Fuel Standard and supporting the critical role aviation can play in achieving a more sustainable future.”
“The state of Michigan has the opportunity to lead the Midwest and achieve goals set forth in the MI Healthy Climate Plan and the MI Future Mobility Plan by implementing a Clean Fuel Standard,” said Jane McCurry, Executive Director at Clean Fuels Michigan. “The future is coming, and Michigan must pursue policy solutions that support growth in the clean fuel industries.”
“This technology-neutral policy will decrease the carbon intensity of our transportation system while increasing our energy and national security,” said Aaron Viles, Senior Campaigns Director with the Electrification Coalition. “As Michigan competes to remain the national leader in the automotive industry, this policy will support our transition to an advanced technology future.”
“EVgo commends Michigan for its leadership in propelling the state’s low-carbon fuel market forward,” said Lindsey Stegall, Senior Manager of Market Development and Public Policy at EVgo, “A Clean Fuel Standard is a proven and cost-effective strategy that provides reliable, long-term support for transportation decarbonization. As the state gears up for increased EV adoption, driven by national programs, complementary state policies, and technological advancements, a Clean Fuel Standard will create market stability and serve as a catalyst for growth in the low-carbon fuels sector, leading to reduced greenhouse gas emissions, enhanced air quality, and improved public health outcomes in the Wolverine State.”
“Electrify America is committed to advancing the adoption of zero-emissions vehicles, so we commend Michigan for taking significant strides toward establishing a clean fuel standard in the state,” said Anthony Willingham, State Government Affairs Manager at Electrify America. “A clean fuel standard is critical to the reduction of emissions in the transportation sector, growth of the nascent clean fuels industry and to the widespread adoption of electric vehicles. As the largest open Direct Current Fast Charging (DCFC) network in the U.S., Electrify America looks forward to working with Clean Fuels Michigan and state officials to realize the benefits of a clean fuel standard.”
“It is time for Michigan to continue its legacy of innovation by embracing a CFS program that can help decarbonize the very automotive system which Michiganders have had a key hand in constructing,” Dana Adams, manager of legislative policy for the Coalition for Renewable Natural Gas, said. “Similar policies in other states have already prompted a sustained, measurable move away from fossil fuel consumption in transportation markets, in part through advanced capture and utilization of renewable natural gas (RNG). Clean alternatives to fossil fuels, including waste-derived RNG, are readily available in Michigan and across the continent, if only policymakers heed our call to create the necessary pathways to investment and wider use through enabling policies like this potential CFS.”
“With transportation now the single largest source of greenhouse gas emissions, Michigan has the opportunity to join other leading states in passing innovative Clean Fuels legislation that will ensure steady progress toward vehicle electrification and other low-carbon fuels,” said Charles Griffith, Climate and Energy Program Director at the Ecology Center. “The Ecology Center commends Rep. Andrews for introducing this legislation, along with Senator Singh in the Senate, and urges the legislature to take swift action to adopt it into law.”
“Maintaining Michigan’s pole position as a global leader in automotive and mobility innovation means leaning into legislation like this Bill,” said Glenn Stevens, Jr., Executive Director of MICHauto and VP Automotive & Mobility Initiatives, Detroit Regional Chamber. “A Clean Fuel Standard in Michigan will help accelerate our state’s clean energy technology sector, create good jobs, and make our environment healthier. All things that will make Michigan better place to call home.”
“Clean Fuels Standards have proven to be immensely successful in reducing greenhouse gas and criteria pollutant emissions, while displacing petroleum and mitigating gasoline price spikes with growing supplies of clean transportation fuels,” said Neil Koehler, Policy Advisor, Renewable Fuels Association. “The policy sends strong market signals for the development of lower carbon fuels produced by Michigan’s farmers through incentivizing climate smart agricultural practices and providing new economic opportunities for rural development.”
About the Clean Fuel Standard Coalition
The Clean Fuel Standard Coalition is a partner effort of 56 companies and growing that supports implementing a Clean Fuel Standard in Michigan. For more information, visit standard.cleanfuelsmi.org.