WeVote
Log In

Bill

Bill

SB 1076

Energy: gas and oil; certain standards under the motor fuels quality act; update.

2025-2026 Regular Session Introduced by Sue Shink

SB 1076 modernizes Michigan motor fuels standards to align with ASTM specs, enhances labeling/testing/enforcement, and licenses/disciplines fuel producers and retailers.

REFERRED TO COMMITTEE ON ENERGY AND ENVIRONMENT
#energy:gasandoil #environmentalprotection:hazardousproducts
0
WeVote Research Nonpartisan
Bill Summary · SB 1076

Bill overview

  • Bill: SB 1076
  • Session: 2025-2026
  • Jurisdiction: Michigan
  • Subject: Energy; updates to standards under the Motor Fuels Quality Act (1984 PA 44)
  • Status: Introduced June 24, 2026; referred to the Senate Energy and Environment Committee
  • Primary sponsor: Senator Sue Shink (co-sponsor)

Purpose and intent

SB 1076 proposes comprehensive amendments to the Motor Fuels Quality Act to modernize and tighten standards for gasoline, diesel, biodiesel, ethanol blends, biomass-based diesel, hydrogen fuel, and related fuels sold or offered for sale in Michigan. The bill aims to align state standards with current ASTM International specifications, regulate additives and labeling, enhance fuel quality testing and enforcement, and improve transparency for consumers and regulators. It also adds new provisions for licensing, recordkeeping, and enforcement tools and clarifies compliance pathways for fuels that do not meet existing standards.

Key provisions and changes

  • Section 2 – Definitions

    • Updates and clarifies terms used throughout the act, including additives, alcohols (ethanol, methanol, etc.), biodiesel, biomass-based diesel, oxygenates, cosolvents, reformulated gasoline, and other fuel categories.
    • Establishes definitions for terms like “Stage I vapor-recovery system,” “vapor pressure,” “AKI,” “MON,” and various roles (distributor, blender, retailer, refiner, etc.).

  • Section 3 – Standards and testing framework

    • Directs the director to establish standards to ensure the purity and quality of gasoline and diesel fuels sold in Michigan, largely aligning with ASTM standards (e.g., D4814, D4806, D6751, D975, D7467, D5798; with updates as standards evolve).
    • Sets rules for gasoline-ethanol blends, including vapor pressure considerations and mixing limits for ethanol blends (including temporary allowances for higher vapor pressure under certain conditions).
    • Requires specifications and grading for gasoline (e.g., AKI/MON targets for Regular through Premium grades; various AKI/MON thresholds).
    • Establishes registration requirements for special or non-standard fuels, including information needed, renewal timelines, and conditions for changes.
    • Maintains exemptions for EPA waivers and prohibits MTBE use starting June 1, 2003 (consistent with prior policy).
    • Sets anticipated standards for biodiesel and diesel blends (including B20 and higher) and requires public commentary on biodiesel diesel standards by 2009.

  • Section 4 – Labeling and notices at dispensers

    • Retailers must post notices on pumps indicating fuel grade and additives (including specific labeling for alcohols like methanol) and consumer hotlines.
    • Establishes labeling rules for ethanol blends (especially ethanol flex fuels) and ensures labeling complies with EPA requirements for higher ethanol concentrations.
    • Requires notices to indicate compliance with Michigan standards and provides a toll-free consumer hotline number.

  • Section 4a – Tank testing and filtration requirements

    • Requires periodic testing of storage tanks for water and water-alcohol at the bottom; tanks with >2 inches of water/water-alcohol prohibited from dispensing until corrected.
    • Sets filtration requirements for dispensers: water-detecting filters (10-µm or smaller for gasoline/ethanol blends) and 30-µm or smaller for diesel and related fuels.
    • Requires testing supplies to be maintained on-site for compliance verification.

  • Section 4b – Additional dispenser notices (diesel, biodiesel, ethanol blends)

    • Requires specific notices for diesel/biodiesel/biomass-based diesel blends, including precise phrasing about biodiesel content, biomass-based diesel, ULTRA-LOW SULFUR, and FFV labeling for ethanol flex fuels.
    • Specifies placement, size, and typography requirements (font, height, color contrast) and visibility standards.

  • Section 5 – Production and sale compliance

    • Refineries, blenders, distributors, and retailers must ensure fuels meet the act’s standards and adhere to labeling, testing, and transfer requirements.
    • Requires documentation on deliveries to include product identity, AKI, ethanol content, and biodiesel content; prohibits selling fuels that contain undissolved water or are not clear and bright.
    • Imposes civil fines for violations (up to $10,000 per day for ongoing violations).

  • Section 6 – Licensing of distributors and retail outlets

    • Requires licenses for distributors and retail outlets; licenses expire annually on November 30 with late renewal fees if renewed after December 1.
    • Licenses can be suspended, denied, or revoked for noncompliance or violations.
    • Sets application and renewal requirements, including detailed ownership and outlet information.
    • Establishes timelines for approval (initial or renewal licenses issued within 120 days of a complete application) and processes for incomplete applications.

  • Section 7 – Inspection, testing, and enforcement program

    • Creates a department-led inspection and testing program to ensure fuels meet act requirements; funds from the gasoline inspection and testing fund support this program.
    • Maintains a 24-hour consumer hot line for complaints.
    • Empowers the director to access records, seize documents, and require preservation of records for enforcement and investigations.
    • Allows sharing information with other agencies where helpful for regulatory purposes.
    • Protects confidentiality of whistleblower information and sensitive business data.

  • Sections 7a and 7b – Compliance mechanics and exemptions

    • Section 7a specifies gasoline testing procedures for ethanol content and vapor pressure to align with 40 CFR 1065.710.
    • Section 7b lists exemptions (e.g., testing facilities for vehicle development, reformulated gasoline, and allowances for noncompliant fuels stored separately with proper labeling).

  • Section 10a – Administrative fines

    • Establishes scales for administrative fines for violations, with escalating penalties for repeated offenses and guidance for hearing procedures and collection.

  • Section 10d – Vapor pressure timing and regional adjustments

    • Sets seasonal vapor pressure standards (June 1–September 15) with regional adjustments (7.0 psi in certain counties; 7.8 psi in others as of prior practice).
    • Allows termination of low vapor pressure requirements for areas redesignated as attaining national ambient air quality standards, with EPA approval.

  • Enacting section

    • Repeals Section 5a of the Motor Fuels Quality Act (MCL 290.645a), eliminating the prior standalone provision.

Who and what would be affected

  • Refiners, blenders, distributors, bulk purchaser-end users, and retail dealers of gasoline, diesel fuel, biodiesel, biomass-based diesel, ethanol flex fuel, biodiesel blends, and hydrogen fuel.
  • Gasoline pump operators and retail outlets (dispensing facilities) must display specified notices and ensure labeling compliance.
  • Fuel producers and marketers would need to register nonstandard fuels and provide testing data.
  • Consumers would benefit from enhanced labeling, hotlines, and assurance of fuel quality and purity.
  • The Michigan Department of Agriculture and Rural Development (MDARD) and related agencies would administer licensing, inspection, testing, and enforcement programs, financed by the gasoline inspection and testing fund.

Procedural and timeline aspects

  • Standards adoption: Director to adopt updated ASTM-based standards and related rules; ongoing updates as ASTM and federal regulations evolve.
  • Tank testing and filtration: Phased implementation, with specific requirements taking effect within defined time frames after enactment.
  • Licensing: New/renewal licenses due; renewal penalties apply if submitted late; initial licensing timeline targets within 120 days of a complete application.
  • Vapor pressure: Seasonal standards apply June 1 through September 15; regional adjustments may apply; potential termination with EPA approval if attainment conditions are met.
  • Public registration: Nonstandard fuels require annual registration with the department, including information and testing data; changes trigger re-registration.
  • Enforcement: Violations trigger administrative fines, with funds deposited into the gasoline inspection and testing fund; hearing rights provided under the Administrative Procedures Act.

Note: The bill adds new sections (4b, 7a, 7b) and repeals a prior provision (Section 5a) as part of the overhaul. It emphasizes consumer information, fuel quality control, and robust regulatory oversight to modernize Michigan’s motor fuels quality framework.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.