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Granholm Establishes Department of Energy, Consolidates Efforts to Grow Energy Sector, Create Jobs

October 27, 2008

Director will serve as state's Chief Energy Officer

LANSING - Governor Jennifer M. Granholm today announced a reorganization of state government that aligns all activities related to renewable energy and energy efficiency in one department in an effort to grow the energy sector and create jobs in Michigan. 

By executive order, all activities related to the energy sector will be consolidated into the Department of Labor and Economic Growth.  The department will be renamed the Department of Energy, Labor and Economic Growth (DELEG), and its director will be designated the Chief Energy Officer for the state of Michigan.  Michigan is now among a growing number of states to have a state department focused on the new energy economy. 

Granholm announced the appointment of her special advisor on renewable energy, Stanley "Skip" Pruss, to serve as the CEO and director of DELEG.  He replaces Keith Cooley who has accepted a position as CEO of NextEnergy in Detroit.  Cooley and NextEnergy will strategically partner with the DELEG to aggressively further the state's energy agenda.

"The new energy economy is, singularly, Michigan's greatest opportunity to create thousands of new jobs, attract new investment and diversify our economy," Granholm said.  "By consolidating the state's energy efforts, we will create an efficient alignment of all the state's tools and resources to focus with laser-like precision on leading the nation in the new evolving energy sectors." 

The reorganization will include the No Worker Left Behind green jobs training initiatives; Michigan's new energy efficiency building code; the Public Service Commission and energy efficiency programs; the Office of Sustainability; the Renewable Fuels Commission; and the State Energy Office, all working in tandem with the Michigan Economic Development Corporation's (MEDC) tax incentives and attraction efforts.

Granholm said the reorganization and the partnership with NextEnergy will allow the state to build strong, collaborative relationships with the private sector and state universities and community colleges, coordinate efforts across state government - eliminating redundancies and inefficiencies - and create new opportunities for research and development centers.

The department will also facilitate the development of advanced energy technologies, which is critical to the state's efforts to revitalize Michigan's auto industry by utilizing Michigan's great strengths in tool and die, metal fabrication and supply chain superiority.  Those advanced technologies will enable the industry to develop new power trains and fuel systems, including electrification capabilities for the coming plug-in hybrids like the Chevy Volt. 

Under the order, DELEG will assume responsibility for activities related to the development of renewable fuels and "greening" programs like Leadership in Energy and Environmental Design (LEED), which assists communities in fostering environmentally sustainable construction.  Those programs have been the respective responsibility of the departments of Agriculture and Environmental Quality (DEQ).

"Keith Cooley has provided important leadership in helping our economic plan benefit from channeling both the quality of our workforce and the demand to new workforce development initiatives, such as No Worker Left Behind," Granholm said.  "Keith's NextEnergy appointment will allow us to seize the opportunities available in the private energy sector.  And no one is more capable of being the state's chief energy officer than Skip Pruss, who knows more about the future of this sector than most anyone in the state." 

As the state's Chief Energy Officer and DELEG director, Pruss will be responsible for promoting the use of renewable energy, the development of advanced energy technologies, and the implementation of energy efficiency measures in the state and serve as an advisor to the governor on matters relating to renewable energy, energy efficiency and other energy matters as requested by the governor.

Pruss has most recently served as special advisor to the governor on renewable energy and the environment.  Prior to joining the executive office, he served as deputy director for the DEQ, where he oversaw the environmental services and science, water quality, and land and water management divisions.  He began his 30-year tenure in state government as an assistant attorney general, ultimately serving as the assistant attorney general-in-charge of the Consumer Protection, Anti-Trust and Charitable Trust Division.  He is a graduate of the University of Michigan and Wayne State University School of Law. He resides in St. Johns, Michigan.

The economic impact of renewable energy is well-documented.  The International Energy Agency estimates that more than $20 trillion will be spent on energy production to meet demand worldwide over the next 25 years. Another study has found that the renewable energy and energy efficiency industries have the potential to generate more than $4.5 trillion in revenues and create 40 million jobs in the United States by 2030.

Executive Order 2008-20 stands unless rejected by the  s tate Senate and House of Representatives. It takes effect December 28, 2008.

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