Governor Whitmer accelerates implementation of the MI Healthy Climate Plan with 2025 budget investments

Governor Gretchen Whitmer and the legislature announced a Fiscal Year 2025 budget deal that included over half a billion dollars to help implement the MI Healthy Climate Plan.

Michigan Capitol Building

The MI Healthy Climate Plan (MHCP) is the state’s climate action roadmap that charts a path to a prosperous, healthy, equitable, carbon-neutral Michigan by 2050. The MHCP’s goal of carbon neutrality by 2050 includes an interim target of 52 percent greenhouse gas (GHG) emissions reductions by 2030 as part of a “Roadmap to 2030” (Roadmap) outlining immediate actions needed to meet the state’s climate goals. The Michigan Department of Environment, Great Lakes, and Energy (EGLE) is responsible for MHCP oversight and implementation, but the climate crisis requires an all-of-government approach.

The budget deal closely followed the plan’s Roadmap, covering nearly each focus area of the MHCP: just transition, energy, transportation, built environment, natural and working lands, industry, and other climate-related investments. This is a snapshot of new investments and does not necessarily cover all state programs with climate benefits.

Clean the Electric Grid
In 2019, Michigan’s power sector contributed approximately 30 percent of Michigan’s total GHG emissions. The Roadmap set a goal of generating 60 percent of the state’s electricity from renewable resources, as well as limiting the consumer cost of powering and heating homes to not more than six percent of annual income for low-income households. The budget included the following investments related to the energy sector (many of which overlap with other sectors):

• $156 million to support MI Solar for All, a program to lower utility costs and increase access to rooftop and community-serving solar for 18,000 low-income families. (EGLE)
• $150 million to support the restart of a critical clean energy asset that provides 800 megawatts of clean energy. (LEO)
• $5.8 million to support the implementation of Michigan’s landmark clean energy laws. (LARA)
• $5 million to support Michigan Saves, Michigan’s nonprofit Greenbank, in offering credit enhancement tools intended to incentivize lending at lower rates and under better terms for clean energy and water improvements. (LARA)
• $5 million to plug wells and reduce methane emissions. (EGLE)
• $5 million to support the acquisition and construction of renewable energy and electrification infrastructure projects. (LARA)
• $3 million to support the deployment of a community-serving solar array in the City of Grand Rapids. (EGLE)
• $2.2 million to increase funding for the Utility Consumer Participation Board, as directed by the recently signed clean energy laws. (LARA, DAG)
• $1.9 million to support the development and implementation of a Class VI well program for carbon capture and storage technologies. (EGLE)
• $1.6 million to develop, research, and improve air quality and reduce localized pollution and health impacts. (EGLE)
• $1 million to conduct an energy waste reduction and demand response study, as outlined in the recent clean energy laws. (LARA)
• $363k to help small agricultural businesses make their farms and businesses more energy efficient or power their facilities with clean energy. (EGLE)

Electrify Vehicles and Increase Public Transit
As of 2019, Michigan’s transportation sector accounted for almost 28 percent of the state’s total GHG emissions. The Roadmap calls for the infrastructure necessary to support two million electric vehicles on Michigan roads by 2030, along with increasing access to clean transportation options – including public transit – by 15 percent a year. The budget included the following for the transportation sector:

• $118 million to increase resources for transit and intermodal transportation. (MDOT)
• $30.2 million to deploy electric vehicle charging infrastructure. (EGLE, LEO)
• $22.3 million to deploy hydrogen stations for heavy duty vehicles. (EGLE)
• $11 million to develop a real-world prototype, “Truck Stop of the Future,” enabling companies to transition their fleets to electric and future-proof their businesses. (LEO)
• $6 million to expand the Michigan Mobility Funding platform, a program that provides grants to mobility and electrification companies. (MDOT)
• $4.5 million to support an inductive charging pilot for electric vehicles. (MDOT)
• $3 million to expand shared streets and spaces. (MDOT)
• $3 million to incentivize the purchase of e-bikes. (MDOT)
• $693k to support the transition of vehicles and equipment that currently utilize diesel to clean and electric. (EGLE)

   

  Repair and Decarbonize Homes and Businesses
  As of 2019, Michigan’s built environment, mainly homes and businesses, accounted for almost 18 percent of the state’s total GHG emissions. The Roadmap includes strategies for reducing emissions from heating Michigan homes and businesses by 17 percent, along with increasing investments in building repair and improvement to lower costs for working families and small businesses. The budget included the following for the built environment:

• $5 million to help low-income households with pre-weatherization and improve the energy efficiency of their homes, reducing utility bills. (DHHS)
• $1 million for the development of a mass timber, a sustainable building material, market in Michigan. (DNR)

   

  Drive Clean Innovation in Industry
  As of 2019, Michigan’s industrial sector accounted for 15 percent of the state’s total GHG emissions. The Roadmap includes recommendations to encourage clean innovation hubs, triple Michigan’s recycling rate, and cut food waste in half. The budget included the following industrial decarbonization efforts:

• $5 million to support new waste diversion programs, including circular economy initiatives, composting, and recycling. (EGLE)

   

  Protect Michigan’s Land and Water
  In 2019, agriculture and working lands accounted for nine percent of the state’s total GHG emissions. The Roadmap includes goals of protecting 30 percent of Michigan’s land and water and leveraging innovative strategies to support climate-smart agriculture. The budget included the following natural and working lands efforts:

• $10.5 million to make Michigan’s agriculture sector more resilient to climate change, support regenerative agriculture, enhance soil health, and promote Michigan grown products. (MDARD)

  Commit to Environmental Justice and Pursue a Just Transition
  The Plan prioritizes environmental justice (EJ) as necessary to drive better health outcomes, good jobs, and economic prosperity for all Michiganders. The Roadmap includes goals to ensure that at least 40 percent of state funding for climate-related and water infrastructure initiatives benefits disadvantaged communities and that Michigan fosters a just transition for all workers through proactive engagement, job training, and workforce development. The budget included the following for just transition efforts:

• $8.6 million to provide technical assistance, capacity building, training and education, support services, and pilots to support communities and workers experiencing economic transition. (LEO)
• $2.5 million to support the Community & Worker Economic Transition Office’s efforts to ensure that communities, workers, and employers impacted by transitions have the support they need to proactively prepare for, benefit from, and shape Michigan’s future economy. (LEO)

   

  Making Communities More Resilient to Climate Impacts
  While the MHCP is a climate mitigation and greenhouse gas reduction plan, not a comprehensive plan to adapt and become resilient to the effects of climate change, the state continues to support residents and communities in adapting to the climate impacts we are already facing, especially those in historically disadvantaged and underserved communities. The budget included:

• $10.3 million to deploy climate-resilient infrastructure and green infrastructure to mitigate the impacts of climate change on communities. (EGLE)