LANSING, Mich. – Several Agriculture groups were disappointed by the Michigan governor vetoing bi-partisan legislation designed to make gasoline containing 15 percent ethanol more available to motorists in the state.

Chuck Lippstreu, president of the Michigan Agri-Business Association, called the July 24 veto by Gretchen Whitmer a “missed opportunity” to help corn growers struggling right now with lower corn prices, consumers and Mother Nature.

“Promoting higher biofuel blends like E-15 reduces our reliance on oil, supports the rural economy, reduces harmful emissions and gives families more choices at the pump,” he said.

The legislation approved in the Michigan House and Senate in June contained a $3 million incentive program that offered retailers selling E-15 a 5-cent rebate for every gallon of the fuel sold.

Total rebates per retailer would have been capped at $100,000.

In a statement, Whitmer defended her decision, saying the veto resulted from a lack of negotiation on budget items and seemed open to future discussions over the proposal.

The tax incentive program was included in the new $82.5 billion fiscal year state budget until it was taken out by Whitmer prior to her signing the spending package.

Whitmer vetoed more than $9 million in earmarks in the $83 billion annual budget. 

According to July 24 article in the Detroit News, “The vetoed earmarks were among hundreds of pet projects contained in the $59 billion omnibus budget signed by the governor.” The newspaper further reported Whitmer said the line-item vetoes were made because lawmakers stuck them into the spending bill after they had negotiated a deal with her administration.

Emily Skor, CEO of Growth Energy, the nation’s largest biofuel trade association, said more fueling stations would have chosen to sell E-15. Currently, E-15 is offered at 23 locations in Michigan.

Skor said consumers in Michigan also could have seen relief from high gasoline prices since it’s less expensive to make the blended fuel containing more ethanol.

She said the legislation seemed like a perfect match for Michigan considering the state has five bio-refineries purchasing over 100 million bushels of corn annually to produce more than 400 million gallons of bioethanol each year.

Skor also pointed out the contribution the legislation could have made toward fighting climate change.

“Members of the Michigan legislature understood this and that’s why they approved the incentive to expand access to this fuel choice. Michigan drivers will now miss out on those cost savings and lose an opportunity to quickly and easily lower their carbon emissions,” she said.

A vast majority of fuel in vehicles nationwide contains 10 percent ethanol.

Theresa Sisung, an industry relations specialist with Michigan Farm Bureau, said E-15 can be used in all cars built since 2001.

She also said making the fuel more available through higher demand would help stabilize the price of U.S. corn, “which has seen a dramatic price reduction this year.”

Michigan Corn Growers Association Executive Director Jim Zook said the veto also went against members of Whitmer’s own party who “championed” the proposal.

“Ethanol is not only a significant market that helps keep Michigan farm families in business, it’s also cleaner burning fuel that reduces greenhouse gas emissions and lowers gas prices for drivers at the pump,” he said.

Zook went on to thank supporters of the measure.

“Though we are deeply disappointed in this outcome, we appreciate the legislators that were willing to stand up for Michigan farmers and pass this legislation in the first place,” he said.

“We are disappointed Gov. Whitmer vetoed a pro-agriculture, pro-environment, pro-consumer policy that had already been approved by the Michigan Legislature,” Lippstreu said.