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State and Federal Incentives and Laws

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Michigan Incentives and Laws

Biodiesel Retail and Storage Requirements

All biodiesel and biodiesel blends sold in the state must meet state quality requirements. A refiner, distributor, or retailer cannot transfer or dispense biodiesel or biodiesel blends unless the fuel is visibly free of undissolved water, sediments, and other suspended matter. Additionally, a biodiesel retailer is prohibited from selling biodiesel or biodiesel blends drawn from a storage tank that has more than two inches of water or water-alcohol at the bottom. Any retailer of biodiesel or biodiesel blends must obtain a license from the Michigan Department of Agriculture for each retail outlet they operate. (Reference Senate Bill 1079, 2006, and Michigan Compiled Laws 290.642-290.647)