Michigan Legislative Update

Following a disappointing February where we were forced to postpone our legislative luncheon due to the ice storm that covered most of the lower peninsula, we’ve ramped up our advocacy and education efforts this spring.

In late March, the Michigan Soybean Association (MSA) hosted a Legislative Outreach Farm Tour (LOFT) at Meyer Grain Farms in Milan, MI. We had over 30 farmers attend, and our featured guest was the Michigan House of Representatives Agriculture Committee Chairwoman, Rep. Reggie Miller.

In April, the Michigan Soybean Committee (MSC) hosted a tour at W2 Fuel in Adrian, MI with some of our industry partners and members of the Michigan Legislature. The discussion focused on educating guests on the benefits of biodiesel and how it’s emerging as a key alternative fuel option as the nation moves towards reducing its carbon emissions.

Our lobby efforts in Lansing have also accelerated in recent months as we’re supporting and monitoring key initiates in Lansing.

Biodiesel Tax Incentive for Retailers

MSA’s number one legislative priority for this session has been a fuel tax incentive for retailers and producers of biodiesel in Michigan.

Our advocacy team has been working behind the scenes with lawmakers to educate them on the benefits of a biodiesel tax incentive for the environment, retailers and producers, farmers and Michigan residents.

Our efforts have paid off as many legislators from both sides of the political aisle have indicated support for the legislation. We’re hopeful to have legislation introduced soon to begin the legislative process.

Environmental Sustainability Funding

MSA joined a coalition of agriculture commodity groups this year in advocating for state funding for long term research, outreach and education efforts to enhance an environmentally sustainable future for agriculture in Michigan.

The program will be administered through MSU AgBioResearch and MSU Extension. The ask of the Michigan Legislature is for a $16 million appropriation ($10 million recurring). We are joining this coalition and supporting these efforts for the following reasons:

• Crop producers are seeking methods to adapt to changing climate realities including the management of crops in extended periods of variable rainfall resulting in drought and flood (sometimes in the same season).

• Long term sustainability of soil productivity is critical to multigenerational farms. Improvement of soil health through the use of cover crops, reduced tillage and understanding soil microbes will benefit from long term research.

• Improved water quality is good for Michigan farmers and the natural environment. The loss of nutrients from cropland is a concern for algal blooms in rivers, lakes and streams. These nutrients are valuable to the crops grown and are expensive to replace using fertilizer and manure.

• Crop pests are changing as average temperatures and total rainfall increase. Diseases, weeds and insects are causing yield losses and farmers look to universities for management recommendations.

The appropriations process within the legislature is in its early stages for Fiscal Year 2023-24 but our feedback has been very positive with key legislators. We’re hopeful to have more news on its progress by the middle of June.

Michigan Clean Fuels Standard

Sen. Sam Singh of East Lansing recently introduced Senate Bill 275 to create a “Clean Energy Future Plan” in Michigan. MSA had the opportunity to participate in meetings with various stakeholders leading up to the introduction of the legislation to provide suggested language and feedback. The goal of the legislation is to:

• Phase out of coal-fired electricity generating plants by 2030, require utilities to make progress toward the elimination of greenhouse gas emissions from power generation by 2035, and develop a 100 percent clean energy standard by 2035.

• Energy Waste Reduction (EWR): Achieve at least two percent annual electric energy efficiency savings.

• Expand the Purview of the Michigan Public Service Commission (MPSC): Allow the MPSC to evaluate climate, health, equity and affordability in the approval of utility Integrated Resource Plans.

• Codify Michigan Department of Agriculture and Rural Development’s PA 116 Program: Allow farmers to rent land for solar operations while maintaining preservation of farmland enrolled in the PA 116 program.

• Clean Fuels Standard (CFS): Adopt to reduce the carbon intensity of transportation fuels by 25 percent by the end of 2035.

• Repair and Decarbonize Homes and Businesses: Reduce emissions related to heating Michigan homes and businesses by 17 percent by 2030.

We anticipate that public hearings will begin on this legislation in the summer. And while we believe there are still many details to be worked out in the bill, MSA will be at the table to ensure that the legislation allows for the growth of biodiesel in Michigan without negatively impacting farmers and our membership.

Upcoming

Aside from the legislation we will be working on in the coming months, we have two important upcoming education and advocacy days.

MSA is currently scheduled to testify in front of the Michigan House of Representatives Agriculture Committee on June 21 st in Lansing. The discussion will focus on the industry, the association itself and our legislative priorities for this session.

We have rescheduled our legislative luncheon for September 19 th at the State Capitol so MSA can connect with legislators, staff and state department officials.