Executive Order 2026-4: Declaration of State of Energy Emergency

The Iran war has significantly disrupted global oil markets by threatening key transportation routes, including the Strait of Hormuz, a critical corridor for oil shipments. The war also jeopardizes the production capacity of key oil exporters. These conditions have increased crude oil prices and tightened fuel supply around the world, resulting in higher gasoline prices across the United States, including in Michigan, where consumers are paying more at the pump.

As of April 2, 2026, the average price of regular gasoline in Michigan is $3.89 per gallon, up from $2.99 per gallon before the conflict - a spike of approximately 30 percent. Prices have surged to their highest levels since 2023, and gas prices will likely continue to rise. Michigan families, already facing rising prices due to inflation and tariffs, now have to pay more to get to work and school, while businesses must absorb higher costs to operate.

In response to the reduced availability of fuel, the United States Environmental Protection Agency (EPA) has issued a temporary waiver of federal Reid vapor pressure (RVP) requirements to allow the production, distribution, and sale of gasoline at a common RVP standard of 9.0 psi, or 10.0 psi for certain ethanol blends. The waiver takes effect on May 1, 2026, and may be extended as necessary based on continued fuel supply constraints. This action is intended to stabilize fuel markets by enabling access to a broader pool of gasoline.

Separate from the EPA's federal regulations, Michigan law establishes RVP standards to reduce ozone formation. Under the Motor Fuels Quality Act, 1984 PA 44, MCL 290.641 et seq., the vapor pressure of gasoline is limited to 7.0 psi in the summer months in Wayne, Oakland, Macomb, Washtenaw, Livingston, Monroe, St. Clair, and Lenawee counties. MCL 290.650d. Under current conditions, enforcement may constrain fuel supply and contribute to higher prices and reduced availability.

This order temporarily suspends state-level RVP requirements applicable to the sale of gasoline in Michigan to align with the federal waiver issued by the EPA. This allows the continued distribution and sale of gasoline that meets the RVP limits specified in the EPA waiver, including fuel produced or in storage prior to the effective date of the waiver, provided all other fuel quality standards are met. By expanding the fuel supply available for distribution, this action will help alleviate upward pressure on prices.

This is a temporary and targeted step. It does not reflect a change in Michigan's commitment to clean air or fuel standards. It is a short-term measure to address rising fuel costs and supply constraints caused by the Iran war.

Section 1 of article 5 of the Michigan Constitution of 1963 vests the executive power of the State of Michigan in the governor. Under Public Act 191 of 1982, "the governor may declare, by executive order…a state of emergency…upon the governor's own initiative if the governor finds that an energy emergency exists or is imminent." MCL 10.83(1). An "energy emergency" means a "condition of danger to the health, safety, or welfare of the citizens of this state due to an impending or present energy shortage." MCL 10.81(b). Moreover, an "energy shortage" means a "lack of adequate available energy resources in the state, or any part of the state." MCL 10.81(e).

Among other powers, during a declared state of energy emergency, the governor may issue an executive order to "suspend a statute or an order or rule of a state agency or a specific provision of a statute, rule, or order, if strict compliance with the statute, rule, or order or a specific provision of the statute, rule, or order will prevent, hinder, or delay necessary action in coping with the energy emergency." MCL 10.84(c). The governor may also "grant a temporary variance suspending the low vapor pressure fuel provisions" of the Motor Fuels Quality Act during an energy emergency if she "concludes it is necessary to avoid disruptions in fuel supply." MCL 290.649k.

Therefore, acting under the Michigan Constitution of 1963 and Michigan law, including 1982 PA 191, MCL 10.81 to 10.87, and 1984 PA 44, MCL 290.641 et seq., I order the following:

1. A state of energy emergency is declared across the State of Michigan.

2. Vapor Pressure Requirements

a. The following laws and regulations are temporarily suspended to the extent that they would hinder or prohibit transportation, storage, or sale of motor fuels in excess of what is permitted under any EPA waivers of the federal Reid vapor pressure requirements:

i. MCL 290.650d.

ii. Regulation No. 561, promulgated by the Laboratory Division of the Department of Agriculture and Rural Development, R 285.561.1 to 285.561.10 of the Michigan Administrative Code.

b. The Department of Agriculture and Rural Development must coordinate state compliance with this section.

3. This order is effective upon filing and remains in effect until the conditions giving rise to the energy emergency no longer exist, but in no case later than July 1, 2026. The Legislature may extend this state of energy emergency past July 1, 2026, under MCL 10.83(3).