(Source: MIRS.news, Published 07/10/23) Environmental groups make the case that legislators should promptly pass the "Clean Energy Future Plan" as the federal government prepares to deploy billions of dollars to states and local governments with competitive plans to reduce greenhouse gas emissions.
"Putting that clean energy target in, reforming the Michigan Public Service Commission (MPSC) so they can do more on climate, having a building decarbonization plan … those kinds of things are going to make the federal government look at Michigan and say, 'okay, they're serious about helping us reach our climate goals. They are probably going to get a bigger portion of that funding than a state that doesn't really have that infrastructure in place,'" said Courtney Bourgoin, the senior policy and advocacy manager in the Midwest for Evergreen Action.
Bourgoin spoke to MIRS following a roundtable discussion that took place today, featuring U.S. Rep. Haley Stevens (D-Birmingham), Sen. Stephanie Chang (D-Detroit), Rep. Donavan McKinney (D-Detroit) and various local and environmental leaders.
The highlight of today's event – which was hosted at a facility affiliated with the International Union of Painters and Allied Trades – was the Inflation Reduction Act (IRA) of 2022.
The legislation was approved 51-50 and 220-213 by the Democratic-led U.S. Senate and House, respectively, at the time. In it, $4.6 billion was set aside as competitive Climate Pollution Reduction Grants (CPRG) for states, municipalities, tribal governments and air pollution control agencies to implement greenhouse gas reduction strategies.
Additionally, 60 Solar for All grants will be distributed to states, territories and tribal and local governments – as well as eligible nonprofit organizations – to make solar energy more accessible to low-income households and disadvantaged communities.
"We have to just have a plan and a vision. That's what the federal government wants from any state," McKinney said to MIRS, explaining how Michigan legislators must "come together with a comprehensive plan … that these dollars are not only going to be the most useful here, but the most impactful. It's all about impact."
The Michigan Democrats' proposed "Clean Energy Future Plan" is being considered as one of the state's best bets at attracting substantial IRA awards.
The package would advise a utility provider in Michigan to demonstrate progress toward closing down all coal-fired plants by 2030, as well as acquiring a 100% clean energy standard by 2035, when filing for rate changes with the MPSC.
When a utility company files its integrated resources plan (IRP) for modifying its rates, the legislation would permit the MPSC to evaluate climate issues, health impacts and affordability during the determination process.
Moreover, the legislation demands the development of a "Michigan Construction Decarbonization Strategic Plan," aiming to drop emissions linked to heating homes and businesses by 17% by 2030.
The bill package includes SB 271, SB 272, SB 273, SB 274, SB 275, SB 276 and SB 277.
"Decades of under-investment and disinvestment in the energy system kind of has to be undone by this Governor and the Legislature, who's largely in support of the things that she wants to do," Bourgoin said. "It's going to be one – having those climate goals at the state level; but two – making sure they have the policies in the Legislature to really back up those goals. It's a lot of work, but there are good proposals on the table right now."
In June, the package was opposed by groups like the Michigan Manufacturers Association, the Detroit Regional Chamber, the Michigan Chemistry Council and the Michigan Chamber of Commerce.
In a letter to the Senate Energy and Environment Committee, the aforementioned parties expressed that because the tools in the decarbonization toolbox will continue evolving over the approaching decades, Michigan "should maintain flexibility in its regulatory approach utilizing cost-benefit analysis for grid technologies."
They warned that the legislation "picks clear winners and losers over the coming years, without the ability for regulators to properly account for the needs of energy customers."
However, today, McKinney referenced how communities across the country are preparing to return federal COVID-19 recovery dollars to Washington, D.C. because they failed to come together and develop spending plans.
"The federal government doesn't want to just send us money just to send us money," McKinney said, indicating that Michigan will appear undesirable for IRA grants if aligning policy isn't developed. "It's our job to come up with a plan and spend it."
During the roundtable, Stevens said the state does not want to have a lack of coordination when competing for IRA money, adding that "what we want to be, is what we've always been in Michigan, which is the leaders – the best practice." She asked if stakeholders in Michigan are going to run around, afraid.
