Michigan gets $129M from feds to accelerate development of large wind, solar projects - MLive.com

Michigan gets $129M from feds to accelerate development of large wind, solar projects - mlive.com

Michigan will soon have millions more at its disposal to reward communities that host solar farms or wind turbines covering hundreds of acres, as well as support their expansion across the state.

The state is in line for $129 million in federal funds to accelerate the siting, zoning and permitting of large-scale renewable energy installations key to the state’s goal of rapidly decarbonizing the electric grid over the coming decade, the U.S. Environmental Protection Agency, the Biden administration and Michigan Gov. Gretchen Whitmer announced on Monday, July 22.

The money, part of $4.3 billion being distributed nationwide, comes from the 2022 federal Inflation Reduction Act’s Climate Pollution Reduction Grant program focused on tackling the climate crisis and juicing efforts to transition to clean energy sources.

In Michigan, local opposition to sprawling renewable projects has in some cases posed roadblocks to their development, with residents packing township halls to rally against their placement on large tracts of farmland and targeting local leaders with recall campaigns if they support the projects.
Residents along M-21 display their displeasure by posting signs in their yards opposing a potential solar farm project on Tuesday, March 31, 2021 near Lennon. (Jake May | MLive.com)Jake May

Cases of local backlash prompted a new state law in 2023 that wrenches away local permitting authority for some larger projects and allows developers to go through state regulators to get approval under limited circumstances.

Rules outlining exactly when and how that could happen are still in development ahead of when the law, pushed by Democrats and opposed by Republicans, takes effect in November. The legislation sparked a ballot initiative seeking to overturn the energy siting law, though organizers failed to collect sufficient signatures to make the ballot in 2024.

At the same time, the state is offering a carrot to municipalities that work with developers to welcome larger solar and wind installations or major battery storage projects.

The federal money announced Monday will support Michigan’s Renewable Ready Communities Award, officials said, offering grants of $5,000 per megawatt to communities that host and permit any portion of grid-connected projects of at least 50 megawatts, or at least 100 megawatts if wind generation is involved.

Municipalities that are responsible for permitting a project but do not physically host it, or vice versa, can get $2,500 per megawatt through the program.

The initiative, which opened for applications earlier this year with $30 million in state funding, could push developers and officials to negotiate for project approvals at the local level, observers say.

Some national research has shown state-level approval processes, like the one made possible by the 2023 energy siting law, tend to be more expensive for developers and result in fewer community benefits, according to Sarah Mills, a University of Michigan researcher who studies renewable energy and land use in rural areas.

Under the Michigan grant program, the state pays $5,000 per megawatt, whereas if a developer sought permitting through regulators at the Michigan Public Service Commission it would have to pay $2,000 per megawatt to a host municipality out of its own pocket as part of community benefits payment, she said.

“There’s more in it for the local government if they can come to an amicable arrangement, and there’s a financial incentive for the developer to also work it out (at the local level),” Mills said.
The sun sets on windmills in northern Gratiot County, Michigan. Dozens of windmills make up a wind farm between Breckenridge and Alma in this file photo. (Jeff Schrier | MLive.com file)The Saginaw News/MLive.com

Phil Roos, director of the Michigan Department of Environment, Great Lakes and Energy, which administers the grants, said in a statement the new funding will allow officials to “scale” the program, “offering additional supports and benefits to communities who want to be part of the solution to the climate crisis.”

The $129 million in federal funds will also help Michigan kick off other initiatives aimed at breaking down barriers to building more solar, wind and renewable energy projects across the state, launching a new “Renewable Ready Communities Program.”

Officials will create a Brownfield Renewable Energy Pilot program, offering grants for renewable projects built on previously-developed land that is abandoned or underused because of factors like industrial pollution.

The money will also strengthen the EGLE’s Renewable Energy Academy, offering technical assistance for local and tribal governments to improve planning, siting and permitting for renewable energy facilities.

Federal money will also flow to workforce development programs to ensure the state has the workers necessary build out renewable projects, as well as the development of a strategic plan to ensure adequate projects to meet a state goal of receiving 60% of its electricity from renewable sources by 2030, officials said.

The funds are also key to making progress on the state’s new energy standards, adopted in 2023 and requiring a move away from fossil fuel-based power generation.

“Together, we can install more solar panels and wind turbines using well-paid American workers. We can make clean, reliable energy right here in America while lowering costs and keeping our natural resources safe for future generations,” said Whitmer in a statement. “Together, let’s keep leading the future of clean energy manufacturing and move towards our goal of 100% clean energy by 2040. Let’s get it done.”

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