Propane Storage and Resilience Grants - Part B

The Propane Resilience Enhancement Program (PREP) Part B grant aims to ensure the adequacy of supply and affordability of pricing for residential and commercial consumers in Michigan who rely on propane as a primary energy source or as part of their preparedness and continuity plans. Under Section 510(2)(b) of PA 119 of 2023, state funding supports initiatives that develop or expand propane pipeline, fractionation, or wholesale storage capacity across Michigan.

Eligible applicants are propane fractionation, pipeline transport, or wholesale storage and distribution companies licensed to do business in Michigan and registered as a corporation with DLARA. Applicants must demonstrate good standing with EGLE programs, including having no prior grants terminated or revoked, and must not be listed on the federal debarment and suspension list.

Eligible project activities must directly support the development or expansion of propane pipeline, fractionation, or wholesale storage capacity in Michigan, and must at a minimum increase propane storage capacity or throughput. Allowable costs include propane storage tanks, underground storage facilities, fractionation systems, pipeline and monitoring equipment, site preparation, safety response equipment, transport truck turnarounds, shelters, and security lighting. Ineligible activities include company indirect expenses, project planning costs, and rail-associated infrastructure eligible under MDOT's Freight Economic Development Program.

Applications must be submitted electronically to EGLE during open application rounds. Submissions must include a general information form, project workplan, project details, resilience enhancement summary, project timeline adhering to American Rescue Plan deadlines, and a complete budget supported by vendor quotes or estimates. Applications are evaluated jointly by EGLE and the Michigan Public Service Commission on criteria such as storage and throughput capacity increases, regional resilience impact, project readiness, and site control.