Michigan governor signs clean energy package

Michigan Gov. Gretchen Whitmer has signed into law a suite of clean energy legislation. The five clean energy bills deliver on the governor’s Michigan Healthy Climate Plan proposals, which lay out a roadmap for Michigan’s clean energy future.

The primary bill, SB 271, establishes a 100 percent clean energy standard for Michigan. By 2040, Michigan plans to produce all its energy from clean sources. By 2030, Michigan will produce 50 percent of its energy from renewable sources and 60 percent from renewables by 2035.

According to the state, the new clean energy standard will drive down consumer costs while reducing the state’s reliance on foreign fuel.

“This legislation is a monumental step towards creating healthier communities in Michigan and a sustainable future for our planet. By transitioning to clean energy, we can decrease our dependence on fossil fuels and mitigate the harmful effects of our climate crisis,” says Sen. Erika Geiss, the bill’s sponsor. “There is no Planet B—and it is incumbent upon us to secure a clean energy future that ensures marginalized communities are not continually, disproportionately affected by environmental hazards.”

According to the bill, applicable renewable energy resources include landfill gas; gas from methane digesters used to treat wastewater, sludge and sewage; and biomass and food waste. It also has a provision that waste incinerators could count toward renewable electricity until 2040 if the facility began operations before 2023.

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SB 273, sponsored by Sen. Sam Singh, is aimed at improving energy efficiency and waste reduction programs to drive down costs for families and small businesses.

Singh says the bill demonstrates the state’s commitment to “creating a sustainable future for our residents, communities, workers and the economy as a whole.”

These clean energy projects will be streamlined by HB 5120, which bolsters the Michigan Public Service Commission (MPSC) by authorizing them to streamline permitting of utility-scale clean energy the same way they can currently do so for other sources of energy. 

“We’re seizing the moment to make Michigan a national leader in clean energy production while creating jobs and lowering costs,” Rep. Ranjeev Puri says. “The projects this legislation enables will create good-paying jobs, decrease energy bills and build healthier communities. This is a major step to make Michigan a more affordable and attractive place to raise a family.”

Two bills, SB 502 and SB 277, also were passed to better prioritize local communities.

SB 502 authorizes the MPSC to consider climate and equity in their regulatory decisions to prioritize the health and well-being of our communities as we expand energy production. SB 277 protects farmers’ rights to host solar projects on their land. 

Earlier this year, 5 Lakes Energy released a report on the clean energy package. The report found that in addition to saving Michigan households an average of $145 a year in energy costs, policies like the ones in the package and would help secure $7.8 billion more in federal investment from President Biden’s Inflation Reduction Act and create nearly 160,000 jobs.