Report From The State Capitol: Michigan Legislature Goes On Summer Break

This past week, lawmakers concluded session for their summer recess, finalizing votes on the state budget and deferring several bills for later consideration.

As the final session day before break went into the early hours of Thursday morning, the Sierra Club's legislative team focused on critical legislation regarding tax breaks for data centers. The Sierra Club, along with partners at Michigan League of Conservation Voters, Michigan Environmental Council, Natural Resources Defense Council and Climate Cabinet, worked with lawmakers to require safeguards to ensure that data center growth does not undermine Michigan's clean energy progress, water resources, or ratepayers' interests. Unfortunately, the version of the bills they were trying to pass had no such safeguards, forcing us and our partners to oppose. Due to our pressure along with other factors, the data center bills lacked sufficient votes to pass before the session ended, delivering a victory.

The Sierra Club did see progress on key legislation. Governor Whitmer signed HB 4824-4826, eliminating the Environmental Rules Review Committee, which had allowed unelected industry-heavy boards to influence environmental rules. The Michigan Senate passed SB 663, which would enhance the Department of Environment, Great Lakes and Energy's authority to protect state waters, and the Michigan Senate took the first step with a legislative hearing on SB 152-153, which could enable locally owned community solar projects in Michigan.

When it comes to the state budget, the final version ended up being a mixed bag for environmental priorities. On the positive side, it includes significant investments in clean energy, such as funding for Michigan's clean energy laws and the expansion of renewable energy sources. Notably, it allocates funds for the start of a whole home retrofit program to enhance energy efficiency and sustainability in low-income homes. Funding is provided as well for e-bike incentives and EV charging infrastructure, which help promote cleaner transportation. The final budget also did not include funds for the contentious Copperwood mine located in an environmentally sensitive area adjacent to the Porcupine Mountains and upstream from Lake Superior, a victory for environmental preservation.

However, the budget has its downsides. It underfunds water affordability programs, posing a risk of water shutoffs. Public transit, while not ignored, is still underfunded, threatening service cuts. It overlooks critical water initiatives, like cleaning the Detroit and Rouge Rivers and providing filters for schools to protect against PFAS. Additionally, it allocates $150 million to the failed Palisades nuclear plant.

In summary, the budget supports clean energy and efficiency but falls short in fully safeguarding residents from pollution and cost increases. The Sierra Club's legislative team will soon provide a detailed budget analysis, including funding figures and program details. You can view Sierra Club’s 2025 budget priorities here

With more work ahead, we will continue to engage our partners and the legislature on unaddressed issues. With legislators on a two month summer break, now is the perfect time to speak with your lawmakers at coffee hours and other events in their districts. Sierra Club will be following in the coming week with information on how to engage, so stay tuned!