Great Jobs

Jumpstart Michigan’s Economy through Clean Energy Innovation

Our state’s growing clean energy sector is reinventing Michigan’s manufacturing base and putting people back to work. Products such as wind turbines, solar panels, as well as electric vehicles and advanced batteries, save energy for families and businesses, while harvesting Michigan’s plentiful sources of renewable energy.  Making the transition to cleaner energy will provide jobs in our state, save consumers money, and protect our natural resources for future generations.

Despite having no in-state coal supplies, Michigan relies on coal for more than 60 percent of its electricity generation, and in 2008, Michigan spent $1.36 billion to import this coal from other states.¹ These huge costs for importing energy are increasing consumer spending, sending money to other states, emitting large amounts of pollution into the air, and causing health problems for Michigan citizens.

Unfortunately, our utilities continue to propose huge coal-fired power plants that cost almost $2 billion to build, while petroleum producers continue to import oil from riskier sources, and prices at the pump continue to rise. At stake is Michigan’s ability to attract new business as well as families ability to afford to pay energy bills.

Our current process for making investment decisions is slowing our transition to clean energy. A major obstacle is that Michigan does not require utility companies to conduct long-term planning.  Known in the industry as "integrated resource planning", this involves evaluating the full range of supply and demand options for meeting energy needs.  It is a powerful tool for reducing consumers' costs.

In 2008, the legislature did require a limited application of this type of planning.  In doing so, the utility must show that building the new plant is the “most reasonable and prudent” investment for ratepayers.  However, this condition does not protect ratepayers of municipal or co-operative electric utilities.  It also fails to trigger planning for investments below $500 million.  Expanding long term planning requirements could limit consumer rate increases.

Additionally, in 2008, the legislature required utilities to invest significantly in energy efficiency for the first time in a decade. The results have been encouraging. Every consumer dollar invested in energy efficiency programs is returning $3.50 in avoided future energy costs. But much more needs to be done. Michigan’s current standard requires utilities to reduce electricity use by 1% annually by 2012. Other states are setting goals that double or triple that amount, saving residents millions of dollars a year. However, Michigan imposes arbitrary spending limits on cost-effective efficiency programs.These limits should be removed to achieve greater energy savings.

State policies are also needed to encourage alternatives to petroleum, such as home grown fuels made from new energy crops or waste, or by converting our vehicles to electricity. Because they are more efficient than conventional cars and trucks, electric vehicles save energy for consumers and can also be powered by clean renewable sources produced here in the state. 

The good news is that Michigan is steadily meeting more of its own energy needs from renewable sources. In 2008, we mandated that utilities use 10 percent renewable energy by 2015. Due to the 2008 law, Michigan has recently seen a significant jump in the number of large wind turbines. It has also helped to drive more manufacturing of wind equipment in our state, which in turn creates jobs. Sourcing even more of our electricity from renewable sources would spur additional investment and put Michigan citizens back to work.

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¹ Michigan Department of Energy, Labor and Economic Growth: Public Services Commission. Michigan 2008 Energy Overview. http://www.dleg.state.mi.us/mpsc/
reports/energy/energyoverview/

May, 2012: CBS Detroit releases article on Renewable Energy Standard, "GOP, Democratic consultants form unlikely alliance" http://detroit.cbslocal.com/2012/05/05/strange-bedfellows-gop-democratic-consultants-form-unlikely-alliance/

February, 2012: MI Energy, MI Jobs announces its campaign to bring a new Renewable Energy Standard to Michigan. If put on the ballot and passed, it would create thousands of Michigan jobs by diversifying our state's energy output to 25% renewables by the year 2025. 

Check out the MI Energy, MI Jobs campaign website.

December, 2011: Consumers Energy announces it will not build a a new coal-fired power plant near Bay City. The recommendations stemmed from the failure of the utilities to show that Michigan needs more energy in coming years. The utilities also failed to counter growing evidence that renewable energy – and not dirty coal – could meet future needs.

October, 2011: The energy optimization sections of PA 295 of 2008 received continued review from the Senate Energy and Technology Committee. Consumers Energy, Midwest Illumination, Michigan Municipal Electric Association testified. The hearings were a positive step toward greater energy efficiency programs in Michigan.

August, 2011: Clean energy candidate Ric Evans was elected to become one of the new Great Lakes Energy Cooperative board members. Evans entered co-op board of director race to urge proponents of the coal-fired power plant to consider more affordable and cleaner energy solutions.  Evans believes that GLE can provide its members with clean, reliable and affordable energy through weatherization, wind and solar power.

June, 2011: Governor Snyder and the DEQ approved the permit for the Rogers City coal plant. In 2010, the permit to install the project was denied because of a failure to demonstrate a need for the proposed facility. Wolverine Power challenged the decision.

May 19, 2011: Citizens gathered to oppose a proposed Clean Air Act permit for a new coal plant in Rogers City. The request came from Wolverine Power Supply Cooperative. In Holland, two citizen groups sued the Snyder administration on May 12 for its approval of the Holland Board of Public Works’ proposed $250 million, 78 MW coal plant.

May 2011:  the Michigan Environmental Council held a legislative lunch announcing a new report showing that Michigan’s old coal plants cost residents $1.5 billion annually in health care costs, and are increasingly expensive for rate payers.

Read more about stopping the Michigan coal rush

Read about citizen groups blocking Snyder's approval of permitting for new coal plants.