The Michigan House is set to vote on the Clean Energy and Jobs Act this week—a package of bills to expedite the siting of solar, wind, and storage projects amidst a historic infusion of federal funding for renewable energy projects. The package includes several provisions to institute community benefits agreements that will help communities attract new sources of revenue and economic investment. 

While there has been promising action to pass and enact these bills, there has been a simultaneous all-out campaign to spread misinformation and stop the package. Republicans and special interests have been planting falsehoods and doubt in the very places that stand to benefit from these policies. Flying in the face of reality, opponents of the package seem intent on furthering the historic economic disinvestment faced by many communities across the state while hiding behind a smokescreen of fear tactics. 

The truth is that the Clean Energy and Jobs Act will supercharge Michigan’s economic development, allow the state to attract more federal dollars and private investment, create good-paying jobs with strong worker standards, and ensure communities benefit from the increased clean energy project revenue.

Clean Energy and Jobs Act—Fact vs. Fiction

FACT: These bills are a key strategy for Michigan to leverage more funding and private investment coming out of the Inflation Reduction Act, which will bolster Michigan’s economic competitiveness and help the state reach its climate and clean energy goals in the MI Healthy Climate Plan. According to modeling released by 5 Lakes Energy and Michigan Energy Innovation Business Council, clean energy and climate policies including a 100 percent clean energy standard could bring the state $14.7 billion in investment and 160,000 new jobs. Siting bills in the Michigan House and the Clean Energy Future package advancing in the Michigan Senate, which includes a clean energy standard, will ensure the benefits modeled in the 5 Lakes study are actually realized.

FACT: Modernizing wind and solar siting in Michigan will improve the state’s energy independence. Right now, Michigan is spending a whopping $18 billion a year on fossil fuel imports. Unfortunately, fossil fuel interests are bolstering grassroots misinformation campaigns to block the very clean energy projects that would lower the state’s dependence on out-of-state fossil fuels, save Michigan money, and attract new revenue. 

FACT: Siting modernization will help improve the state’s power reliability in the long-term. Breaking down barriers to getting more energy sources will help utilities build energy mixes that are the most affordable for ratepayers and reliable amidst grid disruptions like extreme weather. Without this ability, residents could see increased energy costs and lower reliability, especially as wind and solar sources continue to decline in price and out compete fossil fuels. 

FACT: Other states are capitalizing on the economic and climate benefits of modernizing clean energy siting. Several have passed reform policies this year, including Illinois, Washington, New York, California, and Minnesota. Wisconsin passed siting reform a long time ago, too. To put it frankly, these states are giving themselves a major advantage in attracting clean energy investments. 

FICTION: The siting bills shut out local input. In fact, public input and preservation of private property rights is a core piece of the package. HB5120 requires project developers to host public meetings in communities where potential projects will be sited to understand and incorporate community feedback before construction can begin. 

The language in these bills guarantees that communities have a seat at the table (intervention by right) in the Michigan Public Service Commission’s decision making process. The bill gives local governments a voice in the process, but limits unnecessary vetoes. Smaller renewable energy projects remain at the sole discretion of the local governments and developers have the choice to continue to utilize the existing local processes. 

FICTION: Siting reform disproportionately harms rural communities and farmland. In fact, renewable energy projects provide new sources of revenue for these communities and offer a better alternative than pollutive fossil infrastructure. Not to mention: this package includes significant provisions to conserve landscapes. 

Renewable siting is not at all limited to farmland. New projects will be sited in greenfields (undeveloped land) across the state beyond rural areas, brownfields like old industrial sites, and multi-land use spaces where development is already happening. For land being developed, these bills include significant protections for pollinator habitat and ensuring the quality of existing greenery, ground cover, and vegetation. 

There are significant, strategic factors that will play into the siting of projects—including proximity to transmission lines where the energy needs to go, local interests, and land value considerations. 

FICTION: The Clean Energy and Jobs Act undermines local interests. In fact, HB 5120 requires the project developer to enter into a community benefits agreement where the clean energy project is to be sited. This provision helps facilitate a more equitable, just transition to clean energy and real investment for communities in the state and requires the provider to include one of the following: 

1. Workforce development, job quality, and job access provisions that include, but are not limited to: 
   • Terms of employment, such as wages and benefits, employment status, workplace health and safety, scheduling, and career advancement opportunities.
   • Worker recruitment, screening, and hiring strategies and practices, targeted hiring planning and execution, investment in workforce training and education, and worker input and representation in decision making affecting employment and training.
2. Funding for or providing specific environmental benefits like remediation projects.
3. Funding for or providing specific community improvements or amenities, such as park and playground equipment, urban greening, enhanced safety crossings, paving roads, and bike paths.
4. Annual contributions to a nonprofit or community-based organization that awards grants.

Recent analysis from WRI shows that these types of community benefits are popular among voters– Republican, Democrat and Independent—and increase the support of new clean energy projects in communities.   

Here’s the reality: Michigan’s Clean Energy and Jobs Act will enshrine strong community engagement and preserve personal property rights as the state moves toward an equitable and prosperous clean energy future. Full stop. The package is a strategic step in the right direction for a state seeking economic investment, good-paying jobs, and energy independence. And with billions of dollars of federal funding on the table for clean energy projects, it couldn’t come at a better time.