The state’s retail propane marketers have approved a referendum to establish the funding mechanism for the Michigan Propane Commission, created in statute last year. The initial assessment will be at the rate of 1/10 of 1 cent per gallon upon odorized propane sold and placed into commerce in the state. The results of the referendum were certified Friday by Michigan Department of Agriculture and Rural Development Director Gary McDowell.
“Improving energy efficiency helps protect our natural resources, reduces long-term environmental impacts and makes sure that Michiganders can heat their homes,” said McDowell. “We look forward to working with the Commission to educate consumers and increase the use of high-efficiency products in our rural communities.”
The Michigan Propane Commission will use the funds to educate residents, business owners and other users on the safe use of propane and promote the use of high efficiency appliances and equipment through rebate and incentive programs for Michigan residents. The Commission members will be appointed by Governor Gretchen Whitmer.
MDARD mailed 119 ballots to retail propane marketers and received 65 ballots back. Of those ballots received, 75 percent voted yes and 25 percent voted no. The referendum was conducted from February 15 through February 26, 2021.
“Propane remains a clean, affordable, and reliable energy source throughout rural Michigan,” added Jeff Hynes, President of the Michigan Propane Gas Association (MPGA). “All of us here at the MPGA look forward to working with our friends at MDARD and the Michigan Propane Commission to help Michigan’s propane customers save money on their utility bills by adding new, energy efficient propane appliances.”
Assessment fees will be collected at the propane marketer level and are not the responsibility of retailers or consumers. Michigan consumers will not see and should not see the assessment on their residential propane delivery bills or on receipts at a retail level.
A copy of the Act and Order are available below.