With support from the legislature and Governor Whitmer’s Fiscal Year (FY) 2024 budget, Michigan’s Department of Environment, Great Lakes, and Energy (EGLE) is establishing a new funding opportunity to award Michigan communities for hosting renewable energy projects. This adds to the existing value provided through tax revenue, community benefits opportunities, advancement of clean energy commitments, and more.
The Renewables Ready Communities Award (RRCA), now open for FY 2024, awards $5,000 per megawatt (MW) to Michigan municipalities that will physically host and perform local permitting for any portion of an eligible renewable energy project on or after October 1, 2023. In cases of one municipality permitting for a separate host, each party may claim $2,500 per MW they were involved with hosting and performing. No match is required!
Up to $30 million is available with a maximum of $3 million available for one project. Applications will be reviewed on a rolling basis until September 30, 2024. Remaining funding is expected to rollover into a continuation of the award in the next fiscal year.
This award is intended to be applied for prior to the operation of the project, with 50 percent being disbursed upon project construction and 50 percent being disbursed upon project operation. As such, claims of hosting are expected to be made in advance. All applications will require a partnering renewable energy developer to determine the applicant’s quantity of eligible megawatts. For the application, the construction and operation dates may be tentative. Awardees will detail their expected usage of award funds and undergo biannual reporting and monitoring of this usage upon first award disbursement.
More information on this opportunity can be found on the RRCA Webpage, including the following:
Join us for our next Catalyst Communities Webinar to learn more:
March 5, 11 AM – 12 PM
Renewables Ready Communities Award: Request for Proposal and Application Overview Webinar
Eligible Projects
An eligible project is a grid-connected wind, solar, energy storage, or hybrid project in Michigan. All projects must be at least 50 MW, unless any wind energy is involved, in which case a project must be at least 100 MW. All capacity values refer to nameplate capacity in alternating current. Capacity totals may be the sum of all technology involved in a project. For example, a single project with 10 MW of storage and 40 MW of solar would be eligible. The portion of megawatts hosted or permitted by a municipality does not need to reach this threshold for eligibility; the project in total must reach the threshold.
Local Permitting
Local permitting is the acquisition of a land use permit, approved site use plan, or reasonable alternative for unzoned communities through a local process on or after October 1, 2023.
Additional Information
On our Catalyst Communities website, you can find additional resources and support for communities looking to advance clean energy and local sustainability goals. For questions about the new program, RFP, and awards, please contact Ian O’Leary at [email protected] or 517-930-4611.
Herasanna Richards is a legislative associate handling energy, environment, public safety, and technology for the League. She can be reached at [email protected] or 517-908-0309.