This article was originally published by the Michigan Advance.
More than a year after 5 Lakes Energy released a report detailing more than $7.8 billion in federal investments available to fuel Michigan’s transition to clean energy, the consulting firm is taking stock of the state’s energy economy following the passage of multiple laws based on Gov. Gretchen Whitmer’s climate plan.
In November, the Democratic-led Michigan Legislature voted through a host of policies including goals for transitioning the state to 100% clean energy by 2040 and increasing the state’s energy waster reduction standards and efforts intended to streamline the permitting process by allowing the Michigan Public Service Commission (MPSC) to approve large scale renewable energy projects provided they meet state requirements.
“The future of our energy sector — and a significant part of our economy — lies in clean energy. This report highlights how investments in clean energy fuels robust job growth across the U.S. energy sector, with Michigan playing a key role,” state Sen. Sue Shink (D-Northfield Twp.) said in a statement.
“Our historic Clean Energy Future legislation has positioned Michigan as a national leader in the fight against climate change, reducing household utility cost and safeguarding our air, water and public health, while creating good-paying jobs for people. This report proves that prioritizing clean energy isn’t just good for the environment — it’s also a powerful boost for our economy and American workers,” said Shink, who was a lead sponsor of one of the bills in the clean energy package.
By examining the interactions between the Inflation Reduction Act and Michigan’s suite of clean energy legislation, the report estimates Michigan families will save an average of $297 a year on their energy bill by 2030 and $713 a year by 2040 compared to if these policies were not enacted, saving Michiganders more than was predicted in the previous report.
Additionally, Michigan will bring in $15.6 billion in investments from the Inflation Reduction Act by 2030 and $30.7 billion by 2040. The state will also shrink its greenhouse gas emissions by at least 65% over the next six years, down 88% by 2040.
Michigan is also projected to save $7.3 billion by 2030 in avoided public health costs — such as deaths, hospitalizations and lost school and work days — with savings across the state totaling $27.8 billion by 2040.
The report also broke down the economic impact of these policies on a more local level, breaking the state into 10 regions and examining the projected growth of jobs and the gross domestic product of those regions.
Alongside breaking down the economic impacts by region, the report also polled and interviewed 20 members of the Michigan Energy Innovation Business Council, a trade organization focused on supporting innovative energy technology.
In the survey, 75% of companies indicated they were hiring or understaffed, with 90% indicating they would need to hire or they would be understaffed in the next three years.
To further support Michigan’s clean energy, the report shares policy recommendations including additional state policies advancing the growth of clean energy and decarbonizing the state’s building and transportation sectors in line with Whitmer’s MI Healthy Climate Plan, continued investment into clean energy projects and monitoring and evaluation to ensure energy goals are met.
The report also advises lawmakers to enact a new policy on conducting cumulative impact assessments to determine the effects of retiring existing energy assets and building new projects, to ensure communities of color and low income communities and communities with a history of disinvestment can reap the benefits of clean energy.
Additionally, it recommends taking steps to reduce the amount households spend on their energy bills by ensuring that cost reductions for energy utilities translate into savings for customers.
In its final recommendation the report calls on the state to develop workforce training programs in support of the clean energy sector, placing a focus on ensuring opportunities for those transitioning away from traditional energy industries like those based in fossil fuels.
Clean energy laws and funding fuel Michigan jobs and economic growth, new study says is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.
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