Sen. Glenn S. Anderson: Renewable Energy and a Renewed Economy for Michigan

by: Glenn Anderson

Fri Feb 29, 2008 at 11:31:08 AM EST

Since last month's State of the State address, Gov. Granholm has been making a major push for an aggressive renewable energy plan for Michigan. Considering our state's challenging economic condition right now and the rising demand for energy, it's easy to understand why.

Consumers, businesses and manufacturers in Michigan currently pay $18 billion each year to import coal, oil and natural gas. Of that $18 billion we import 100% of the coal we use, 96% of the oil we consume for transportation fuels and 75% of our natural gas from other states. That money heads across the border each year to help workers and businesses in other states, and it does nothing to reduce our dependence on fossil fuels, lower greenhouse gas emissions, diversify our state's economy or create jobs here in Michigan.

By passing a strong Renewable Portfolio Standard (RPS) like the one I co-sponsored with Sen. Jim Barcia (D-Bay City), Michigan can join a growing list of states that have already chosen to make renewable energy a priority. It would create demand for alternative energy, which would allow businesses to capitalize on our state's strong manufacturing sector and create 21st Century jobs.

In fact, earlier this month energy company executives from General Electric, Cascade Industries and Environmental Power Corp. testified before the Senate Energy Committee in support of a strong RPS for Michigan. Jeff Metts, President of Dowding Industries, Inc. had this to say:

"Last May our company announced a new $7.1 million facility in Eaton Rapids to manufacture components used in the assembly of wind turbines. Michigan has a tremendous opportunity to be a leader in the production and management of renewable energy and attract even more business investment to the state."

The business community is clearly ready for an RPS because they see an opportunity to expand their operations here in Michigan. In terms of job creation, a report released last summer by Environment Michigan indicates that a strong RPS would generate thousands of new high tech manufacturing jobs, and help keep a larger portion of the $18 billion we spend to import materials for energy each year in Michigan.

In addition to strong renewable standards, energy efficiency measures could translate into immediate savings for Michigan ratepayers. Senate Bill 7, introduced last January by Sen. Liz Brater (D-Ann Arbor), would require energy efficiency standards for certain appliances or equipment sold or installed in the state, assuring consumers and businesses that the products meet minimum efficiency performance levels.

A study conducted by the American Council for an Energy-Efficient Economy found that a 2 to 4% reduction in natural gas use can reduce natural gas prices by 20% or more in tight market conditions. The best news for consumers is that the cost savings associated with energy efficiency standards more than offset the cost of implementation, which means more money in your pocket.

The bottom line is that even in these tough economic times, Michigan can't afford not to make renewable energy and energy efficiency a priority. We have an opportunity here to rejuvenate our economy, create new "green collar" jobs, reduce our reliance on fossil fuels and cut our energy expenses. It's time for the Legislature to take action on these measures and move Michigan forward.

Anderson represents the sixth state senate district which includes the communities of Livonia, Westland, Garden City, and Redford Township. He also serves as the Assistant Democratic Floor Leader.

(Cross-posted on Call of the Senate Democrats)