Governor Whitmer Accelerates Implementation of MI Healthy Climate Plan with 2025 Budget Investments

Governor Gretchen Whitmer and the Legislature announced a budget for fiscal year 2025 that includes more than half a billion dollars to help implement MI’s Healthy Climate Plan.

Michigan Capitol Building

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

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

Clean the electrical grid
In 2019, Michigan’s energy sector accounted for about 30 percent of Michigan’s total greenhouse gas emissions. The roadmap set a goal of generating 60 percent of the state’s electricity from renewable sources, as well as limiting consumer costs of powering and heating homes to no more than six percent of annual income for low-income households. The budget included the following energy-related investments, many of which overlap with other sectors:

$156 million to support MI Solar for All, a program that aims to lower operating costs and increase access to rooftop and community solar for 18,000 low-income families. (EGLE)
$150 million to support the restart of a key clean energy resource that provides 800 megawatts of clean energy. (LEO)
$5.8 million to support implementation of Michigan’s groundbreaking clean energy legislation. (LARA)
$5 million to support Michigan Saves, a nonprofit Greenbank in Michigan, to offer credit enhancement tools to encourage lending at lower interest rates and with better terms for clean energy and water improvements. (LARA)
$5 million to plug wells and reduce methane emissions. (EGLE)
$5 million to support acquisition and construction of renewable energy and electrification infrastructure projects. (LARA)
$3 million to support the implementation of a community-serving solar facility in the City of Grand Rapids. (EGLE)
$2.2 million to increase funding for the Utility Consumer Participation Board, as mandated by the recently signed Clean Energy Act. (LARA, DAG)
$1.9 million to support the development and implementation of a Class VI carbon capture and storage (EGLE) well program
$1.6 million for development, research and improvement of air quality and reduction of local pollution and health impacts. (EGLE)
$1 million to conduct a study on energy waste reduction and demand response, as directed by the recent clean energy regulations. (LARA)
$363,000 to help small agribusinesses make their farms and businesses more energy efficient or power their facilities with clean energy. (EGLE)

Electrify vehicles and increase public transport
In 2019, Michigan’s transportation sector accounted for nearly 28 percent of the state’s total greenhouse gas emissions. The roadmap calls for building the infrastructure needed to support two million electric vehicles on Michigan roads by 2030, as well as increasing access to clean transportation options — including public transit — by 15 percent annually. The budget included the following components for the transportation sector:

$118 million to increase resources for transit and intermodal transportation. (MDOT)
$30.2 million for the implementation of electric vehicle charging infrastructure. (EGLE, LEO)
$22.3 million for the implementation of hydrogen stations for heavy goods vehicles. (EGLE)
$11 million to develop a real-world prototype, the “Truck Stop of the Future,” enabling companies to transition to electric vehicles and future-proof their businesses. (LEO)
$6 million to expand Michigan Mobility Funding, a program that awards grants to mobility and electrification companies. (MDOT)
$4.5 million to support electric vehicle inductive charging pilot. (MDOT)
$3 million for expansion of streets and common areas. (MDOT)
$3 million to encourage electric bike purchases. (MDOT)
$693,000 to support the transition of vehicles and equipment that currently use diesel to electric vehicles and equipment. (EGLE)

Repairing and decarbonizing homes and businesses
In 2019, Michigan’s built environment, primarily homes and businesses, accounted for nearly 18 percent of the state’s total greenhouse gas emissions. The roadmap includes strategies to reduce emissions from heating Michigan’s homes and businesses by 17 percent, along with increasing investments in building repairs and improvements to lower costs for working families and small businesses. The budget included the following components for the built environment:
$5 million to help low-income households weatherize and make their homes more energy efficient, which can help reduce utility bills. (DHHS)
$1 million to expand the market for engineered lumber, a sustainable building material, in Michigan. (DNR)

Implementing clean innovation in industry
In 2019, Michigan’s manufacturing sector accounted for 15 percent of the state’s total greenhouse gas emissions. The roadmap includes recommendations to encourage the creation of clean innovation hubs, triple Michigan’s recycling rate and cut food waste in half. The budget included the following actions to decarbonize manufacturing:
$5 million to support new waste reduction programs, including circular economy, composting and recycling initiatives. (EGLE)

Protect Michigan’s Land and Water
In 2019, agriculture and agricultural lands accounted for nine percent of the state’s total greenhouse gas emissions. The roadmap includes goals to protect 30 percent of Michigan’s lands and waters and to use innovative strategies to support climate-smart agriculture. The budget included the following actions for natural and agricultural lands:
$10.5 million to make Michigan’s agriculture sector more climate-resilient, support regenerative agriculture, improve soil quality and promote Michigan-grown produce. (MDARD)
Engage in environmental justice and work towards a just transition
The plan prioritizes environmental justice (EJ) as essential to ensuring 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 and water infrastructure initiatives benefits disadvantaged communities, and that Michigan supports a just transition for all workers through proactive engagement, job training, and workforce development. The budget included the following actions to advance a just transition:
$8.6 million to provide technical assistance, capacity building, training and education, support services, and pilot programs to support communities and workers in economic transition. (LEO)
$2.5 million to support the work of the Office of Community and Workforce Economic Transformation to ensure communities, workers and employers impacted by the transition have the support they need to proactively prepare for, benefit from and shape Michigan’s future economy. (LEO)

Increasing community resilience to the impacts of climate change
While the MHCP is a climate change mitigation and greenhouse gas reduction plan, not a comprehensive climate change adaptation and resilience plan, the state continues to support residents and communities in adapting to the climate change impacts we are already facing, especially those in historically disadvantaged and underserved communities. The budget included:
$10.3 million to implement climate-resilient infrastructure and green infrastructure to mitigate the impacts of climate change on communities. (EGLE)