SB 1171 — Motor Fuels Quality Act (Michigan) — Summary
Status / Timeline
- Introduced: December 3, 2024 (Sen. Sue Shink, substitute S‑1 reported 12/12/24)
- Passed Legislature: May 23, 2025 (enrolled and transmitted)
- Signed by Governor: June 20, 2025
- Effective date: September 1, 2025
- Fiscal impact: None reported (nonpartisan Senate analysis)
Purpose
- Modernize Michigan’s Motor Fuels Quality Act by replacing outdated in‑state fuel specifications with contemporary industry standards (ASTM International and certain federal regulations), tighten some retail and storage practices, improve consumer information at dispensers, and consolidate fuel quality regulation under the Michigan Department of Agriculture and Rural Development (MDARD).
Key provisions and changes
1. Adoption of ASTM standards (applies to retail motor fuels unless otherwise exempt):
- D4806‑21a (denatured fuel ethanol), D4814‑24A (automotive spark‑ignition engine fuel), D5798‑21 (ethanol fuel blends for flexible‑fuel vehicles), D6751‑24 (B100 biodiesel), D975‑24a (diesel fuel), D7467‑23 (diesel biodiesel blends B6–B20).
2. Vapor pressure (volatility) allowances for ethanol blends: specific temporary allowances above ASTM D5798‑21 for certain ethanol concentrations and volatility classes (e.g., +1.0 psi for 9–15% ethanol June 1–Sept 15; other class‑ and season‑based allowances detailed in the bill), with a stated cap relative to section 10d.
3. Fuel grades and special grades: eliminates Michigan’s “subregular” gasoline grade (85 AKI), leaving eight grades; allows “special grades” only if listed with and approved by MDARD (refiner/blender must submit brand name, grade specs, and full test results).
4. Registration and listings: all motor fuels that do not meet the referenced ASTM standards must be registered with MDARD (registration forms prescribed by Director) at least 30 days before sales; existing MDARD listings/registrations are rescinded 30 days after the bill’s effective date.
5. Retail dispenser notice requirements: gasoline dispensers must display standardized notices stating (a) Michigan compliance, (b) grade identification, (c) content statement, and (d) consumer complaint hotline number; non‑gasoline dispensers have analogous requirements. Font, size, and placement are prescribed.
6. Identification and handling: new standards for fuel identification during development, delivery, storage, loading, and unloading to reduce misfueling and mislabeling.
7. Licensing: retail dealers must obtain motor fuel outlet license to sell ethanol flex fuel and compressed natural gas; aircraft‑only gasoline outlets are exempt from that licensure requirement. New license application elements and late fees for renewals after December 1.
8. Storage and dispenser equipment: reduces allowable water/water‑alcohol at bottom of retail storage tanks from 2.0 inches to 0.5 inch; dispensers for alcohol fuel blends must have fuel‑water removing filters of 10 microns or less designed to detect phase separation.
9. Confidentiality and FOIA: certain information revealed during MDARD investigations of violations is designated confidential and exempt from FOIA.
10. Exemptions and repeals: certain manufacturer proving grounds, testing/assembly/production facilities and reformulated gasoline may be exempted; repeals Section 5a of the Act (the Renewable Fuels Fund).
Who is affected
- Primary: refiners, blenders, distributors, bulk purchasers, retail dealers/outlets, and MDARD (regulatory responsibilities).
- Secondary: consumers (better labeling/consumer hotline), equipment/service providers (tank testers, filter suppliers), and entities previously using the Renewable Fuels Fund.
Potential impacts
- Regulatory alignment with up‑to‑date national/international fuel specifications → easier interstate compliance for suppliers.
- Increased MDARD administrative duties (registrations, approvals, annual reporting to Legislature) but no fiscal impact was reported.
- Retail outlets selling ethanol blends or CNG will need a license and to comply with new posting, storage, and equipment rules.
- Removal of the Renewable Fuels Fund eliminates that funding mechanism.
Reporting
- MDARD Director required to submit an annual report to the Legislature on motor fuel quality issues.
Notes
- The bill consolidates contemporary fuel-specification references into the Motor Fuels Quality Act and emphasizes consumer information, fuel identification controls, and storage/dispenser safeguards to reduce quality and misfueling issues.
