Whitmer signs energy bills to advance Democrats' climate goals - Detroit Free Press

Whitmer signs energy bills to advance Democrats' climate goals
Clara Hendrickson

Gov. Gretchen Whitmer signed a series of energy-related bills that would offer public support for energy upgrades and solar facilities, make permanent an energy assistance program for low-income households and allow state agencies to adopt more stringent regulations than those at the federal level, a change sought by environmental groups.

"With these bills, we will help more communities unleash innovative clean energy resources, provide vital energy assistance to help families stay warm in winter, and create good-paying, high-skilled jobs right here in Michigan," Whitmer said in a statement.

Here's a look at the changes the bills will make.

Expand program to finance energy upgrades

A pair of bills signed by Whitmer — Senate Bills 302 and 303— modify a clean energy program that allows local governments to provide financing to help commercial and industrial properties improve their energy efficiency. The legislation would expand the program to include agricultural property.

The program allows for eligible properties to make energy efficiency upgrades without paying for the upfront costs, instead spreading the payments out over time through a special assessment agreement, according to a House Fiscal Agency analysis.

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Tax break for solar facilities

Whitmer also signed House Bills 4317 and 4318 which create the new "Solar Energy Facilities Taxation Act." The legislation allows local governments to establish solar energy districts, enabling qualified solar facilities to be exempt from property taxes. Instead, they would be subject to a Payment In Lieu of Taxes (PILT) — a solar energy facilities tax — based on the energy capacity of the facility. Both bills received bipartisan support in the state House and Senate.

Make energy assistance program permanent

Michigan's assistance program that helps eligible low-income households cover home energy costs will become permanent after Whitmer signed Senate Bill 288.

The bill — which passed with wide bipartisan support — eliminates the Sept. 30, 2023 sunset date when the program was initially set to expire. Households eligible for the Michigan Energy Assistance Program(MEAP) are at or below 150% of the federal poverty level ($45,000 for a household of four) and be past due on utility bills, had their services shut off or be at imminent risk of shut off.

In 2022, MEAP provided support and self-sufficient services aimed at helping households reduce their energy needs to 56,047 households, according to a spokesperson for the Michigan Public Service Commission.

Allow state agencies to go beyond federal regulations

Finally, Whitmer signed Senate Bill 14 which will allow state departments and agencies in Michigan to adopt regulations more stringent than those at the federal level. The Democratic bill passed along a party-line vote. Environmental groups support the bill, seeing it as an opportunity to protect the state's natural resources.

"Environmental policy should not be cookie cutter or set by the lowest common denominator," said bill sponsor state Sen. Sean McCann, D-Kalamazoo, during a Senate Energy and Environment Committee hearing on the bill. He emphasized that the bill would give Michigan regulators more flexibility to protect the state's environment, particularly amid the transition to electric vehicles that will bring new manufacturing activity to the state.

The bill reverses a GOP policy adopted by former Gov. Rick Snyder, a Republican, that barred state regulators from implementing rules stricter than regulations at the federal level.

House Minority Leader Matt Hall, R-Richland Township, said the legislation passed by Democrats will hurt the state's economy and hinder population growth. "Democrats have caved to one leftist political group after another, and now they’re letting unelected bureaucrats tank our state’s economy on the whim of environmental activists," he said in a statement.

Contact Clara Hendrickson at chendrickson@freepress.com or 313-296-5743. Follow her on Twitter @clarajanehen.