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Partnerships and New Commitments Further Michigan’s Clean Energy Journey

Michigan is in the midst of a major energy transition, with many entities playing a role in moving our state’s efforts forward.

Michigan is in the midst of a major energy transition, with many entities playing a role in moving our state’s efforts forward.

In May 2018, two of Michigan’s largest energy providers announced their commitment to new clean energy goals. DTE Energy and Consumers Energy now have a 50 percent clean energy goal by 2030, with half from solar, wind and hydro-electric generation and the remaining 25 percent achieved through energy efficiency efforts.

Michigan's current energy law requires the two utilities to generate 15 percent of electricity from renewable sources by 2021 after they met a previous mandate of 10 percent in 2015.

The new commitment was made as part of a deal with billionaire environmentalist Tom Steyer, who had been campaigning for a voter-imposed law on clean energy, Crain’s reports. The goal of generating 25 percent of their power from renewable sources by 2030 meant Steyer and Clean Energy, Healthy Michigan would drop a signature-gathering campaign to put a 30 percent renewable mandate for 2030 on the November ballot.

In a joint statement, Patti Poppe, president and CEO of Consumers Energy and Gerry Anderson, chairman and CEO of DTE Energy, said they appreciated that Steyer and the campaign sponsors had taken the time to understand how Michigan's energy plan “puts the tools in place to achieve this goal in a thoughtful and affordable manner."

"Our two companies are overwhelmingly in favor of renewable energy and are focused on bringing additional energy efficiency opportunities to our customers. We will continue to work within the framework put forward by our legislature and regulators to build on our environmental initiatives to benefit all residents of the state."

In June, Consumers shared plans to close two coal-fired units at its Karn Generating Complex near Bay City by 2023 as part of a plan to eliminate coal completely and reduce carbon emissions 80 percent by 2040. 

While this progress presents a bright spot for our state, not all of Michigan is serviced by these providers. Plus, about 300 workers will be impacted by the Karn closures, and another 600 people work at the utility's remaining coal-fired power plants.

“We plan to support Hampton Township and the Bay region as they re-imagine the local economic landscape after these units are retired,” Poppe said.

Many of our state’s communities need the opportunities clean energy provides beyond the environmental benefits, including lower utility costs for low-income residents and greater efficiencies for businesses and nonprofits, in addition to the preservation of local jobs.

Acknowledging this challenge, the C.S. Mott Foundation began partnering with CMF in 2016 to explore opportunities with Michigan community foundations to support community-led clean energy transition projects. From this initial research, the C.S. Mott Foundation made four grants to community foundations to launch local efforts which centered around education, demonstration and collaboration:

  • The Community Foundation of Marquette County - To create and distribute energy information materials, develop demonstration sites that illustrate energy efficiency and renewable energy practices and convene an energy awareness community event at the end of the project.

  • The Northern Lower MI Collaborative (Charlevoix County Community Foundation, Petoskey-Harbor Springs Community Foundation and Grand Traverse Regional Community Foundation) - To support local efforts to advance the use of clean and renewable energy, serving as a catalyst for greater sustainability efforts. The collaborative is working closely with local governments to support strong community partnership with nonprofits, businesses, and governments and pursue ambitious clean energy goals.

  • The Keweenaw Community Foundation - To conduct a community-wide energy summit, promote energy efficiency among its nonprofit partners and support the installation of a community solar installation. The community foundation is working closely with nonprofit partners and a team at Michigan Technological University.

  • The M&M Area Community Foundation - To work with their community school districts to raise awareness and adoption of clean energy technologies. The community foundation has already completed a successful outreach event to engage students and parents. Recently, Clean Energy Committee volunteers attended the Niagara Community Picnic in Niagara and Family Recreation Day held in Menominee, engaging with local families about easy and practical ways to conserve energy at home and to consider clean energy alternatives.

CMF was also awarded funds by the C.S. Mott Foundation to provide technical assistance, peer learning and additional support throughout the grant period.

Michigan's Property Assessed Clean Energy (PACE) projects are another exciting improvement in this space. With PACE projects, the participating company takes out a long-term loan via private financing, but unlike a traditional loan, it's paid back via a special assessment on the property over a period of years. The loan costs the company nothing or very little up front but has the immediate benefit of lower energy bills. The assessment transfers from one owner to the next.

Commercial, industrial and multi-family property owners of five units and up in a participating city or county can participate in this initiative, administered by either Lean & Green Michigan or the Ann Arbor Clean Energy Coalition.

Andy Levin, president of Lean & Green Michigan, explains that the property owner saves more in reduced energy costs than the payments on the PACE loan.

“Effectively, they finance the whole thing out of the energy savings."

It was recently reported that between January 2018 and July 2018, PACE projects in Michigan totaled $14.5 million, more than doubling PACE projects in the prior three years.

It is estimated that PACE districts cover 69 percent of our state’s population. Levin says interest is reaching a “tipping point” as more projects are approved and more contractors and lenders get involved.

The two latest projects involve Liquid Web, a data center near Lansing, and the historic Roberts Riverwalk Hotel in Detroit.

Michigan now has 14 PACE projects valued at more than $20 million, and more are expected this year.

Want more?

Dive deeper into the “game-changing” year for PACE projects.

Read more on the Consumers Energy plans for the closure of coal-fired plants.

Read about CMF’s clean energy efforts.

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