MI Senate Decisions Discourage Economic Opportunity
Friday, July 4th, 2008
Late last Friday night our Michigan Senate watered down and passed energy legislation that took months to put together. There was no attempt at bipartisanship here. As a result Michigan has a pretty shabby RPS or Renewable Portfolio Standards compared to surrounding states. What took the wind out of the sails of this legislation was the deletion of mandates. There will be no mandates on business, which means business may or may not choose to reduce it’s consumption of fossil fuels by choosing other sources of energy.
The Senate decided to go the route where state government would lead by example and be the first to reduce it’s dependency on fossil fuels by choosing alternative energy and also through conservation. The idea is that business would likely follow suit—but they don’t have to!
The positive side of this move by the senate is that taxpayers will be spared the cost of switching to alternative energy sources, and struggling business in MI won’t have to spend more to comply with any mandates. The state will bear the burden for moving forward. This is protectionism and admirable, but it also degrades Michigan’s RPS to nothing. States that have a strong RPS have reaped big rewards in economic growth as a result. Michigan is missing the importance of a strong RPS. It equates to jobs and investment into the economy.
So the biggest downside is that Michigan’s economy will not likely pick up soon despite the “Green Gold Rush” that is on right now. On top of that, among all the cities in the country that had dismal spring housing sales where that market dropped again, Detroit area home sales were actually up 8%. That was on the news. So Michigan is primed and salivating for economic growth from anywhere that more than likely will not happen thanks to this senate’s quick and rash decisions last week.
Also, Michigan ranks in the top fifteen states in the country for wind generation, but there were few incentives and little interest in wind production in the bills. Yet according to an article on Metro Mode’s website, “[A] fully harnessed wind industry could result in up to 50,000 Michigan jobs, ranging from construction to assembly to engineering to research.” In this instance, the Republican lead Senate in Michigan is actually blocking progress and job growth. Wind is nothing to overlook in Michigan where there are constant shoreline breezes.
The last negative to the final version of the bills is whether or not the environmental changes that take place within the state government will require outside contracts. I don’t like the sound of government contracting. Senator Waxman has uncovered billions of wasted dollars in contracts on the federal level both in Afghanistan and Iraq. This kind of thing looks like just another opportunity for friends to get paid.
Environmentally friendly voters should drop a line to our state senate. The cons outweigh the pros for their decision on this latest round of energy bills relative to the loss of a lot of new jobs, and new money into our economy from somewhere else besides the auto industry for a change. Michigan’s economy is supposed to be undergoing change remember?
Read about RPS in MI: http://www.blogsmonroe.com/world/2008/03/12/renewable-portfolio-standards-environmental-resume-for-states/
Entire article on Metro Mode about MI windpower: http://www.metromodemedia.com/features/MichiganWindPower0064.aspx