Proposed budget recommends providing resources to help better protect Michigan’s environment and public health

Michigan Governor Gretchen Whitmer recently released her executive budget recommendations, including $1.3 billion for the Michigan Department of Environment, Great Lakes, and Energy (EGLE).

“The Governor’s recommended budget provides critical resources to help EGLE and our local partners across the state better protect Michigan’s environment and public health,” said Dan Eichinger, EGLE acting director. “Investments in water infrastructure projects, renewable resources and projects in environmental justice communities to improve air quality and clean up contaminated sites are exciting highlights of the EGLE budget that also includes resources for sealing abandoned oil and gas wells, improving the permitting process and better understanding the state’s groundwater resources.

“More than half of EGLE’s budget traditionally is passed through to Michigan cities, towns, villages and other local government agencies who are on the front lines of protecting residents and their resources. We look forward to working together to ensure healthy water, land and air for all.”

Overall, the recommended budget for fiscal years 2024 and 2025 includes total ongoing funding of $899.4 million for EGLE, a 42% increase from FY 2023 not including the one-time allocations. Of that, $149.2 million comes from the state’s general fund. The Governor also recommends $412 million in one-time funding in fiscal year 2024, all of which comes from the general fund.

The Governor’s budget recommends investment in the following programs:

• $280.5 million for water infrastructure projects ($30.5 million general fund) to provide loans, grants, and direct funding to local communities for water infrastructure. These projects are supported through the federal Infrastructure Investment and Jobs Act and include service line replacements, water treatment facility upgrades, and stormwater management systems.

   

• $225.8 million for lead service line replacement (general fund; $200 million one-time) to remove and replace lead lines in significantly disadvantaged communities. Funding will also provide ongoing technical assistance to these communities to ensure they can fully access and manage all available resources for water improvement projects.

   

• $100 million for environmental justice projects (one-time general fund) to remediate and redevelop contaminated sites and expand air pollution controls in historically disadvantaged and underrepresented communities. This funding will begin the process of rectifying 20th century pollution policies.

   

• $40 million for creating renewable ready communities (one-time general fund) to provide grants to local communities for the creation of renewable energy facilities at a regional scale.

   

• $25 million for restoring Michigan’s waterways (one-time general fund) to provide grants for the removal of dams that are not essential to the containment of invasive species or are not necessary for power generation and community safety. This investment will assist in the restoration of Michigan’s aquatic ecosystems and grow the recreational water economy.

   

• $23.8 million for the collection and management of data on Michigan’s groundwater resources (general fund; $23.5 million one-time) to collect data and conduct studies on the state’s underground aquifers. These data will allow for the preservation of a resource from which 40% of Michigan communities draw their water and enable its effective future management.

   

• $15 million for the creation of a critical mineral recycling research hub (one-time general fund) to conduct research into recycling processes for minerals essential to the modern electronic and industrial economy.

   

• $10.4 million for orphan oil and gas well remediation ($5.2 million general fund) to continue efforts to seal and remediate abandoned oil and gas wells, and adjacent areas, throughout the state. This program is supported by federal Infrastructure Investment and Jobs Act funding.

   

• $8.5 million for the propane resiliency enhancement plan (general fund) to support efforts to ensure resiliency in critical markets relative to the adequacy of supply and affordability of pricing for residential and commercial propane consumers in Michigan who rely on propane as a primary energy source or as part of their preparedness and continuity plans.

   

• $6.6 million for improving permitting processes (general fund) to expand capacity to department permitting divisions to improve application review and reduce permit issuance wait times.

   

• $680,000 for the water discharge permit program (state restricted funds) to increase permitting capacity in response to an uptick in demand from new state industries. This increase will enhance the department’s ability to review and issue permits while ensuring the safe management of the state’s water resources.

Highlights End Fiscal Year 2023 Supplemental

• $212 million for residential energy efficiency improvements (federal funds) through point-of-sale rebates for home appliances, water heaters, home heating and cooling systems, and thermal envelope improvements such as improved insulation and installation of efficient windows. This funding will be issued through the state energy office and is made available by the federal Inflation Reduction Act.

   

• $45 million for the Michigan Clean Fleet Initiative (federal funds) to provide grants to counties, municipalities, airports, and regional transportation authorities for the conversion of their fleet operations to net-zero greenhouse gas emissions. This investment will move Michigan toward accomplishing its climate goals and mitigate the state’s contribution to climate change. This funding is made available by the federal American Rescue Plan Act.

   

• $43 million for energy grid resiliency ($5.6 million general fund; $37.4 federal funds) to implement a program to harden Michigan’s energy grid against natural disasters. The program will further fund the relocation and undergrounding of power lines, the diversification of energy sources and capacity relief, and preparation of the grid for future load increases. This funding is made available by the federal Infrastructure Investment and Jobs Act.