(Source: MIRS.news, Published 08/10/2023) (DETROIT) – Democrats and environmentalists behind legislation like the "Clean Energy Future Plan" – pushing utilities to develop a "100% clean energy standard" by 2035 – claim that their proposals could attract $7.8 billion in extra federal investment to Michigan.
Thursday, Lt. Gov. Garlin Gilchrist II, along with Sens. Stephanie Chang (D-Detroit) and Sue Shink (D-Ann Arbor) and Reps. Donavan McKinney (D-Detroit) and Jason Morgan (D-Ann Arbor), visited Walker-Miller Energy Services in Detroit to highlight a report released Thursday on how Michigan can improve its advantages in accessing the more than $50 billion in competitive grant funding offered through the federal Inflation Reduction Act (IRA) .
The report, which was prepared by 5 Lakes Energy and the Michigan Energy Innovation Business Council (MIEIBC), found that through adopting certain policies – such as those transitioning Michigan's electricity generation energy mix to 100% carbon-free sources, including nuclear power, by 2035 – the state can secure itself more than $5 billion in additional IRA investment by 2032.
By 2050, the policies could assist Michigan in acquiring nearly $8 billion in IRA resources supplemental from what the state's already likely to receive.
"This report demonstrates that investing in clean energy and climate mitigation is a win-win-win. We're building a more reliable electric grid, we're lowering costs for our residents and we're improving the health of our communities," said Courtney Bourgoin, the senior policy and advocacy manager for Evergreen Action in the Midwest region. "Now, timing and urgency are everything. Delaying these policies by even a year risks Michigan losing out on $1 billion extra in federal investment from the Inflation Reduction Act."
Legislation that received a reoccurring spotlight during the event was the "Clean Energy Future Plan." The package consists of SB 271, SB 272, SB 273, SB 274, SB 274, SB 275, SB 276 and SB 277.
Altogether, as the bills were introduced during the spring, the legislation would eliminate landfill gas, biomass and fuel originating from waste as "renewable energy resources" under the 2008 Clean and Renewable Energy and Energy Waste Reduction Act. The aforementioned act mandated specific electric and natural gas service providers to cultivate energy waste reduction programs.
Instead, nuclear energy would be enshrined as an option, as utility providers under the legislation are instructed to showcase progress toward shutting down all coal-fired plants by 2030 and obtaining a 100% clean energy standard by 2035 when filing an Integrated Resource Plan (IRP) every five years.
The Michigan Public Service Commission (MPSC) would also be permitted to consider health impacts, affordability and climate issues when reviewing an IRP. Moreover, the legislation would authorize farmers enrolled in the state's farmland preservation program to rent land for solar energy production, pausing their tax incentives as the solar farm operates.
Michigan's energy waste reduction standard would be expanded to 2% of total yearly electricity sales under the bill package, as well.
Although the Governor's MI Healthy Climate Plan aspires to reach 100% "carbon neutrality" by 2050, Gilchrist said Gov. Gretchen Whitmer's administration is supportive of the more aggressive standard by 2035, adding that it means "we get to get extra credit" for moving faster.
Rep. Jenn HILL (D-Marquette)'s HB 4839 and McKinney's HB 4840 were additionally discussed at Thursday’s event. Under the bills, residents who individually install solar and battery storage would receive $500 per-kilowatt rebates for their solar systems and $300 per-kilowatt-hour for batteries, with eligible low-income households acquiring double of the aforementioned incentives.
After Thursday’s remarks, Shink described how she hopes the various bills will be approved by lawmakers "a lot sooner" than right before the winter holidays.
"I think this report makes clear the financial stakes that we face if we don't act. A lot of times the consequences of not acting aren't quantified, and here we see a very direct relationship between acting and bringing down those federal dollars, creating those jobs and saving lives," Shink said. "It's money…in a sense, that we paid in taxes, coming back to our state."
Summaries of the report project that Michigan could see $6.9 billion in federal IRA investment through 2050 without passing the aforementioned legislation, or could obtain $14.7 billion in federal investment by approving the multiple bills.
Bourgoin said the proposals could slash energy costs for Michigan families by at least $145 annually by the end of the current decade, could avoid 1,000 premature deaths in the state by 2050 through avoiding pollution and could add 160,000 jobs over the next 26 years.
"It is so, so critical that we take action this fall in the Michigan Legislature and prioritize Michiganders' public health by addressing the climate crisis," Chang said in her remarks.
