MPSC, EGLE announce applications are open for propane storage and resilience grants

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The application period has opened for funding through a state program designed to help ensure the supply adequacy and affordability of propane in Michigan, where more than 320,000 households rely on the fuel for home heating.

The Michigan Public Service Commission and the Michigan Department of Environment, Great Lakes, and Energy announced they are accepting applications for $8 million in funding made available through the Propane Resilience Enhancement Program, or PREP, by Governor Gretchen Whitmer and the Michigan Legislature in Public Act 119 of 2023.

PREP is a critical piece of the state’s strategy to enhance energy security and resilience and stabilize and lower energy costs for families. The program aims to help ensure the adequacy of supply and affordability of pricing for residential and commercial propane consumers who rely on the fuel as a primary energy source or as part of preparedness and continuity plans.

“Investments like PREP will enhance Michigan's energy security and work to lower energy prices for Michigan families,” EGLE Director Phil Roos said. “While the State of Michigan works to transition towards cleaner sources of energy, we remain focused on ensuring the resilience of our existing energy systems.”

In Part A of PREP, $5 million is available for projects that develop and expand the storage capacity of wholesale and retail suppliers in Michigan who transport or distribute propane via rail or truck. In Part B of PREP, an additional $3 million is available for projects that expand storage capacity connected to expanded propane pipeline and fractionation capacity.

“The grant funds made available through these two PREP programs are part of the broader strategy on propane resilience outlined in the MI Propane Security Plan,” said Dan Scripps, Chair of the MPSC. “These investments will boost propane storage capacity in Michigan and ensure propane continues to be available in the event of any disruptions to the propane markets or periods of constrained supply.”

Additional details about PREP and application information are available at the state website for PREP. Additional information on the state’s propane efforts, including a link to the MI Propane Security Plan, can be found at the MPSC’s Propane & Petroleum webpage.

 

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