In a surprising move, Michigan, traditionally an industrial hub, enacted leading climate laws in late 2023. The initiative, described as “bold” and “ambitious,” has brought attention to Governor Gretchen Whitmer, a potential Democratic candidate for the 2028 presidential race.
The new laws mandate Michigan to achieve carbon-free electricity by 2040. However, these goals are in jeopardy due to tax incentives for energy-intensive data centers, which could activate a legislative “off-ramp” allowing fossil fuel plants to operate beyond 2040 if renewable energy falls short. Utilities have already planned new gas plants.
“The tax credits for data centers effectively undo any positive impacts,” said Dylan Wegela, a Democratic Socialist state representative.
Despite Democratic efforts to mandate renewable energy for data centers, Whitmer did not act to preserve the climate law. “Her silence shows where priorities lie,” remarked Christy McGillivray, formerly with Sierra Club Michigan. Wegela concurred, stating, “Not speaking up conveys a message.”
The potential collapse of these climate initiatives reflects ongoing tensions under Whitmer’s leadership. Her 2018 election raised hopes following the environmentally detrimental tenure of former Republican Gov. Rick Snyder, infamous for the Flint water crisis.
Critics note Whitmer’s tendency to side with industry when environmental conflicts with economic interests arose, influenced by major campaign donors. Over 25 legislators, activists, and residents contributed to this narrative.
“You’re either for the environment or not, and she wasn’t,” said a former legislator advocating for environmental bills that stalled.
As Whitmer nears the end of her term, many environmental goals remain unmet. These include “polluter pay” laws, community solar, regulatory reforms, water affordability, air pollution reduction, Line 5 pipeline issues, and water infrastructure upgrades in Detroit.
Efforts to reform monopoly utilities, DTE Energy and Consumers Energy, were notably frustrated, further disappointing environmental advocates.
Despite criticism, Whitmer’s administration is regarded as more environmentally conscious than previous GOP administrations, having repealed a Snyder-era law limiting state pollution regulations and implementing lead filters in schools.
Critics also cite the influence of pro-business Democrats and state-wide industry sway as barriers. Michigan’s lax campaign finance laws allow dark money to flow with minimal oversight, and many of Whitmer’s significant donors, including DTE Energy, opposed environmental reforms.
“When something impacts major corporations financially, environmental bills stall,” said Jenn Hill, a former Democratic state representative from Marquette.
Whitmer’s perceived environmental inactivity may be tied to political ambitions, according to Chris Gilmer-Hill of the Michigan Environmental Justice Coalition. Whitmer aims to appeal as a pro-business moderate, boosting her economic development record with substantial corporate subsidies.
An analysis by Bridge Michigan found that despite $2.46 billion in tax incentives promised to businesses, roughly 80% of expected jobs have not arisen, costing taxpayers approximately $76,000 per job.
Fixing “Damn Roads,” but Not Regulatory Agencies
Under Whitmer, business interests often outweighed environmental concerns. The administration prioritized road repairs, resulting in increased emissions from concrete production in marginalized neighborhoods.
Michigan’s Department of Environment, Great Lakes and Energy (EGLE) frequently sided with business over community health, maintaining a pattern of lax permitting practices established during John Engler’s administration.
Efforts to improve permitting processes were undermined by legal challenges, leaving communities like Flint exposed to pollutants despite civil rights complaints.
Whitmer did not respond to calls for structural changes at EGLE, maintaining a system criticized for serving polluters instead of regulating them.
Theresa Landrum, a local environmental activist, remains hopeful for change, pointing to stalled initiatives like the Protecting Overburdened Communities Act.
Utility Reform Challenges
Despite initial hope, Michigan’s energy rates remain high, and the grid is unreliable. Numerous proposals to strengthen the grid and promote renewable energy stalled under Whitmer.
Proposals for credits during outages and increased renewable generation failed. Utility reform was hampered by extensive political spending from DTE and Consumers Energy, who have contributed nearly $1.8 million to Whitmer-linked PACs.
Whitmer did not publicly oppose utility reform, but sources noted her administration discouraged legislation opposed by DTE.
The Michigan Public Services Commission, under Whitmer appointees, has mandated some utility improvements. However, when a commissioner was perceived as too consumer-friendly, Whitmer replaced them with an industry ally.
A Democratic Trifecta Missed
In 2022, Democrats gained legislative control, yet little environmental legislation advanced due to party leadership and utility influence. Pro-business Speaker Joe Tate was noted for obstructing environmental bills.
Whitmer signed data center incentives likely to hinder her climate plan, highlighting the disconnect between environmental goals and corporate interests.
Original Story at insideclimatenews.org