The incentives are funded by a $150,000 grant awarded by the Michigan Department of Labor & Economic Growth (DLEG). This is the second round of grant funding awarded to NextEnergy, the first being a $50,000 incentive grant, which NextEnergy is in the process of distributing to six stations.
The cash incentives range up to $3,000 per station for converting equipment to E85 or B20; up to $4,000 for installing new equipment to dispense B20; and up to $12,000 for E85. Projects must be completed and providing biofuel to the public by August 31, 2007 and station owners must agree to provide the E85 or B20 for at least 3 years after receiving the incentive.
Funding for the Biofuels Infrastructure Incentive Grant was made available through a grant from the State Energy Office, a division of the State of Michigan Department of Labor and Economic Growth.
NextEnergy is managing the implementation of the program in coordination with the Clean Energy Coalition, an Ann Arbor-based nonprofit which was also awarded funding through the state program. Other program partners include the Michigan Corn Marketing Program, Michigan Soybean Promotion Committee, National Ethanol Vehicle Coalition, and National Biodiesel Board. Applications for grant funding must be received by December 15.