Michigan’s Renewables Ready Communities Awards recently announced its third round of funding: nearly $4.9 million to seven local units of government that chose to host new utility-scale renewable energy projects. The program’s first round was announced in October and the second round in December.
The RRCA supports communities that approve and host large-scale wind, solar, and energy storage projects at the local level. The program provides flexible funding to local governments to help fund community improvements and services such as local road and bridge repairs, public safety systems, park and playground enhancements, accessibility accommodations, upgrades to grounds and facilities, energy for public buildings, and streetlights. The grants are in addition to tax revenue and other community benefits already received by host communities.
Communities are eligible for one-time awards of up to $5,000 per megawatt (MW) of a project’s size for permitting and hosting projects. So far, the program has announced awards of $12.43 million – over one-third of its $30 million budget allocation – to 23 counties, cities, and townships (listed below) in rural and urban areas across Michigan’s two peninsulas. The projects supported by RRCA will generate enough solar power and battery storage to power nearly 2.5 million households.
Here are a few of the awardees and their plans for using the funds:
Coldwater Township, in Branch County, has secured three awards through the RRCA, totaling $991,250.
Township Supervisor Donald E. Rogers said the community is considering investing in road improvements that have been on hold for lack of funds, accessible park playground equipment, and an expansion of the township’s office space to benefit residents conducting business there. “These awards will significantly enhance our financial bottom line,” Rogers said. “It was very important to work with the renewable energy companies to have these projects in our township, keeping in mind the impact they may have on our residents.”
While state law added an optional track to approve renewable energy project siting through the Michigan Public Service Commission, the township chose to work with developers to negotiate all facets of the projects to follow local ordinances. “We kept the projects under local control, alleviating the need for them to bypass local control,” he said. “An added benefit to these projects was the EGLE RRCA grant program, which we took advantage of.”
Ecorse, in Wayne County, qualified for $1 million through the RRCA – equivalent to 5% of the city’s annual budget, Mayor Lamar Tidwell said. It’s an opportunity to step up youth enrichment efforts.
“This award will allow the city to bring much-needed outdoor recreational activities to the community,” Tidwell said. He said it was important to the community to approve the Redstart Energy Storage project in the wake of the 2021 closure of the coal-fired DTE Energy River Rouge power plant.
Evergreen Township, in Montcalm County, will receive $330,000 after approving the Fish Creek Solar project.
“This is a very significant amount compared to our annual budget,” said Township Supervisor Andy Ross. “Our annual income is $427,000, of which approximately $270,000 comes from state revenue sharing and $157,000 comes from other sources such as millages, special assessments, etc.”
Ross said it was challenging but worth the effort to navigate the project’s approval amid opposition from some township residents. “The reason the Township Board went in the direction of approving the solar project was because we believe in property rights,” he said. “We did not want to waste taxpayer money on attorney fees and legal battles opposing the project. Also, we understood the economic impact to the community. We knew that the tax revenue would help out the community as a whole.” He added that the grant was an added bonus.
The RRCA was unexpected and will help improve local roads and the township’s hall and fire barn.
Belknap Township, in Presque Isle County, secured a $152,500 award – comparable to the township’s average annual general fund and roads budget – after agreeing to host the Little Trout Solar project.
“This award program appears to be one of the most straightforward grants that I have ever worked with,” said Township Supervisor Toby Kuznicki. “It will allow funding for projects that have transformational impacts to the community.” One such project will be reconstructing Claus Road, currently designated by the township as a failed road. Also planned are a disaster preparedness project and replacement of outdated equipment in the township hall.
Trenton, in Wayne County, will receive $1.1 million in RRCA funding following its approval of the Trenton Channel Energy Center project. The city plans to use this award to improve its West Road streetscape and enhance downtown placemaking opportunities.
“The Renewables Ready Communities Award will make these projects attainable for our city budget, where we otherwise have not had adequate funding opportunities,” said Mayor Steven Rzeppa. “When these projects are initiated and completed, they will greatly improve the quality of life for our residents, the walkability of our community, and opportunities for our small businesses.”
The state allocated $30 million for the RRCA in the 2024 budget – funding that helped secure an additional $129.1 million to expand the RRCA program and other efforts through the U.S. Environmental Protection Agency’s Climate Pollution Reduction Grants.
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