Finance

Michigan will implement ambitious clean energy mandates with goal of carbon-free electricity by 2040

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LANSING, Mich. — Michigan is implementing one of the nation’s most ambitious clean energy mandates, aiming to be carbon-free by 2040 in what is a pivotal test of the Democrats’ environmental goals in a state with a long-standing manufacturing legacy.

Michigan will join four other states in requiring utility providers to transition to 100% carbon-free energy generation by 2040 under legislation signed Tuesday by Gov. Gretchen Whitmer. The state has also set a goal for utilities to generate 50% of their energy from renewable sources by 2030, a significant leap from the current 12%.

The state-level mandates support the Biden administration’s goals of a carbon pollution-free electricity sector by 2035 and a net-zero emissions economy by no later than 2050.

The clean energy package, which was approved by Democrats in the Michigan Legislature this month, has been lauded by environmental groups. Lisa Wozniak, executive director of the Michigan League of Conservation Voters, said she hopes Michigan’s plan serves as a model for other states.

“Michigan is at the heart of the industrial Midwest. What happens here sets the tone for what could happen all across this country,” Wozniak said.

Michigan ranked 11th in electricity consumption nationwide in 2021, with a majority of it coming from coal, natural gas and motor gasoline. Of the 12% produced through renewable sources last year, most came from winds that sweep across the Great Lakes.

A resource that naturally replenishes over time and is derived from solar, water or wind power is considered renewable. Under the package, clean energy includes renewable sources along with nuclear energy and natural gas. Natural gas can be used only if utilities capture and store the carbon emissions.

Meeting the 50% renewable energy goal by 2030, and 60% five years later, will require a massive buildout of utility-scale renewable energy resources in Michigan.

Just over 17,000 acres (6,880 hectares) of land in the state are currently used for wind and solar generation, according to Dan Scripps, chairman of the Michigan Public Service Commission. Scripps told lawmakers during a Nov. 7 committee hearing that an additional 209,000 acres (84,579 hectares) of land will be needed for projects to hit the 60% renewable energy goal.

To achieve this, Michigan lawmakers will give the state’s Public Service Commission the authority to supersede local governments for the approval of these large projects.

The provision has quickly become…

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