LANSING – House Democrats today approved a plan to speed up the development of 21st century technology such as advanced batteries and solar panels to make Michigan a magnet for jobs in the emerging alternative energy industry. The legislation provides $30 million in grants to businesses as part of the Centers of Energy Excellence Program to help move technology from the research stage to commercial production.
"Moving new technology from the drawing board to the market is essential to Michigan leading the new energy economy," House Majority Floor Leader Kathy Angerer (D-Dundee) said. "These grants will create partnerships between cutting-edge businesses and research universities to make Michigan the center of 21st century technologies needed to power the nation and the world. By investing in these emerging industries we can attract the jobs and investment needed to move Michigan forward."
Under the plan, $30 million in grants from the 21st Century Jobs Trust Fund will be used to bring in matching federal grants. This funding will act as a catalyst for developing energy technology and attracting new businesses in the growing alternative energy sector. According to the 2009 Michigan Green Jobs Report from the Department of Energy, Labor and Economic Growth, a sample of more than 350 green-related firms showed job growth of 7.7 percent. In contrast, other Michigan businesses shed jobs at a rate of 5.4 percent.
Two companies, Adaptive Materials and A123 Systems, are slated to receive awards from the Centers of Energy Excellence Program in order to secure matching federal dollars. Ann Arbor-based Adaptive Materials is a leading manufacturer of fuel cells that convert readily available fuels such as propane into clean, long-lasting power sources. A123 Systems, which has invested in facilities in Ann Arbor, is a leading producer of lithium-ion advanced batteries for cleaner, more efficient vehicles. As part of this plan, businesses receiving the grants are required to work with an institution of higher education.
"Developing renewable energy technologies will create jobs and protect our natural resources," said State Representative Rebekah Warren (D-Ann Arbor), Chair of the House Great Lakes and Environment Committee. "This plan will strengthen our efforts to reinvent Michigan's economy and lead the way in clean energy. With our top-notch institutions of higher education, the Ann Arbor area is a perfect spot for developing advanced battery and renewable energy technologies necessary to make Michigan the electric car capital of the world."
Today's action builds on House Dems' creation of $555 million in ground-breaking incentives for advanced batteries that already have resulted in more than $3 billion in investments by seven world-class advanced battery companies that will create more than 6,600 jobs in Michigan. These first-in-the-nation credits helped position our state to land $1.36 billion in federal advanced battery grants.
The plan passing the House today also comes on the heels of the Michigan Economic Development Corporation's recent announcement of state tax credits to two leading companies in advanced battery and solar panel technologies. Those companies plan to anchor a cutting-edge energy park at the shuttered Ford plant in Wixom, creating at least 3,250 jobs.
"We must keep pushing Michigan to the forefront of the alternative energy industry to ensure Michigan workers are building the advanced batteries and solar panel components that will power the 21st century," said State Representative Lisa Brown (D-West Bloomfield), who championed legislation creating incentives to redevelop the Wixom plant. "By investing in emerging industries we can create the jobs we need to turn around Michigan's economy."