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Michigan’s Latest Budget Makes Progress on Clean Energy and Transportation

Posted by Adam Winer on Jun 29, 2023

Advanced Energy United commends Michigan legislators for passing a strong budget that will advance transportation electrification, renewable energy, energy efficiency, and resiliency. Work remains—the legislature must take bold action on clean energy after summer recess.

LANSING, MI, JUNE 29, 2023 – Last night, the Michigan legislature passed a fiscal year 2024 budget which received bipartisan support and will go into effect immediately after approval from the Governor. The state budget makes key investments in infrastructure including advanced energy and transportation, which will add jobs to the state’s strong clean energy industry while improving grid resiliency, lowering energy bills, and reducing greenhouse gas emissions.

“This budget represents a historic investment in Michigan’s infrastructure, and doubles down on the jobs that are part of the fastest growing industry sectors in the nation,” said Samarth Medakkar, Michigan state lead for Advanced Energy United, the national association of businesses working to achieve 100% clean energy and electrified transportation. “From Governor Whitmer’s initial introduction of her budget priorities, through passage yesterday by leaders and champions in the state legislature, Michigan has secured its spot as a Midwest leader in the clean energy economy."

The budget supports implementation of key aspects of the Governor’s MI Healthy Climate Plan, the state roadmap to economy-wide carbon neutrality by 2050 and leverages the state’s legacy of innovation in the auto industry and manufacturing, broadly, to lead in the energy transition. Still, more work is needed to carry the MI Healthy Climate Plan forward beyond these historic state budget investments. The state legislature has introduced many bills that will continue to realize the economic gains that clean energy and clean transportation industries offer.

“This budget sends a strong message that the state legislature is embracing the need for more public charging to support electric vehicle (EV) adoption,” added Medakkar. “It makes progress towards more energy efficiency, rooftop solar, energy storage, and large-scale renewable energy. We are eager to roll up our sleeves to help implement the programs in the budget and support the legislature this fall in going further to unleash the businesses that are pivotal in realizing a carbon-neutral economy.” 

The budget includes the following key programs: 

  • School Aid Budget 
    • Clean school bus grant program ($125 million) 
    • Grants for schools towards energy efficiency, renewable energy, and electrification projects ($50 million) 
    • Grants for schools towards energy efficiency audits and solar feasibility studies ($20 million)
  • Omnibus Budget 
    • Federal funds from Infrastructure Investment and Jobs Act (IIJA) for public utility investment in grid resiliency ($43 million) 
    • Incentives for communities to site renewable energy projects of greater than 20MW ($30 million) 
    • Federal funding for pre-weatherization ($25 million) and funding for weatherization ($60 million), $40 million of which allocated from IIJA 
    • Grants for businesses, local government units, and non-profits for deploying renewable energy and electrification infrastructure projects, including EV charging ($21.3 million) 
    • Energy efficiency revolving loan program for businesses and homeowners ($8.4 million) 
    • Funding for Michigan Saves Green Bank for to spur investment in residential and commercial clean energy ($5.5 million) 
    • Funding for public charging around Lake Michigan ($5 million) 
    • Funding for state fleet electrification ($1 million) 

Click here to learn more about Advanced Energy United’s work in Michigan advocating for clean energy and electrified transportation.

Topics: Press Releases, Michigan, Samarth Medakkar