Increased energy efficiency could generate up to $22 billion in economic activity
Michigan Conservative Energy Forum releases Hill Group report
LANSING, MI – Expanding Michigan’s successful energy optimization program could generate up to $22 billion in economic activity, according to a report released today by The Hill Group, Inc.
“Increasing investment in Michigan’s energy efficiency program could significantly reduce the state’s dependence on imported energy, save families and businesses money and increase economic vitality by supporting jobs and spurring economic activity,” said Johnathan Talcott, management consultant at The Hill Group, Inc. “This report will equip policymakers with the data needed to make informed decisions about Michigan’s energy future, including long-term strategies to advance Michigan’s energy economy.”
The report was commissioned by the MCEF and examines the economic impacts of continuing and expanding Michigan’s current energy optimization program.
“This study demonstrates that further investment in energy efficiency presents a huge opportunity for Michigan—one that we can’t let pass us by,” said Larry Ward, executive director of the Michigan Conservative Energy Forum (MCEF). “Michigan’s current energy policy goals were targeted to be met and reevaluated by 2015. We need strong leadership from Lansing to make sure the positive momentum we’ve built under the current goals continues. Increasing our use of energy efficiency will build on our successes, eliminate energy waste, grow Michigan’s clean energy economy by billions of dollars and support thousands of Michigan jobs.”
The report examines two scenarios: a continuation of current policy, which caps the annual program budget at two percent of a utility’s annual revenue, and an expansion of current policy, which would remove the cap on the annual program budget.
According to the report, removing the cap on the energy optimization program and pursuing all achievable cost-effective energy efficiency could:
• Create $22 billion in economic output
• Support 163,000 job-years
• Result in $7.6 billion in employment compensation
Continuing Michigan’s energy optimization program with a budget cap could:
• Create $8.1 billion in economic output
• Support 60,000 job-years
• Result in $2.8 billion in employment compensation
“I’ve witnessed first-hand the tremendous potential for businesses to save money through energy efficiency,” said Jeff Burks of Key Green Solutions, LLC. “My company helps hospitals reduce energy waste—saving the health care industry millions of dollars on utility bills, allowing them to reduce costs and invest in life-saving technology.”
“Michigan’s business community has seen fantastic results from our energy optimization program, which helps businesses and families reduce their energy use and save money on electric bills,” said Brindley Byrd, executive director of the Michigan Energy Efficiency Contractors Association. “This report confirms what we’re already experiencing in communities across Michigan – the energy optimization programs are a pro-business policy that helps businesses grow and create jobs. We need the Legislature to take the lead in crafting a new energy policy that emphasizes clean energy efficiency. ”
