Energy Conservation
Key Issues:Energy in Michigan
Energy in Michigan

Following is an overview of Michigan's consumption and production of transportation fuels, electricity, and heating fuels, as well as the mandates and initiatives that affect the state's energy supply and economy.
Transportation fuels (gasoline and diesel fuel)
Two major pipelines carry Canadian crude oil into Michigan from the west, and additional petroleum pipelines enter Michigan from other states. In addition, the Lower Peninsula has some small crude oil wells and Detroit has a 103,000-barrel-per-day refinery.
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Coal, which primarily comes from Wyoming and Montana by rail and then by ship on Lake Superior, supplies 59% of the state's electricity supply. The Cook, Fermi and Palisades nuclear power plants meet 26% of the demand. Natural gas, of which Michigan has more reserves than any other Great Lakes state, accounts for 11%.
Heating fuels
Michigan leads the nation in underground storage capacity of natural gas, which heats 78% of the homes in Michigan. The next greatest residential heating source is liquefied petroleum gas (LPG), or propane. With 9% of homes using LPG for heating, Michigan is the largest residential LPG market in the nation.
Natural gas
Fuel oil
Source: U.S. Department of Energy,
2000 Census data
Michigan's existing energy mandates and incentives
Motor Fuels Quality Program
Established in 1996 and amended in 2006, the Motor Fuels Quality Program requires the gasoline sold in eight southeast Michigan counties from June 1-September 15 to be a maximum of 7.0 pounds per square inch of pressure. This summer-formula gas is designed to reduce the likelihood of evaporation that contributes to ozone damage.
Alternative fueling infrastructure tax credit
Through 2012, Michigan is scheduled to offer an income tax credit to eligible gas stations that convert existing fuel delivery systems or install new systems to provide E85 or biodiesel blends of at least 5%.
Alternative fueling infrastructure grants
Michigan has a matching grant program that provides incentives to eligible gas stations to convert existing fuel delivery systems and/or install new systems that provide E85 and biodiesel blends.
Alternative fuel and vehicle research, development, and manufacturing tax credits
Since 2008, qualified taxpayers have been able to claim a nonrefundable credit for tax liability attributable to researching, developing or manufacturing alternative fuel vehicles and biodiesel blends of at least 20%.

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