Photo courtesy of National Carbon Capture Center
In a significant victory for Michigan’s business community and environmental future, the Michigan Senate passed a bipartisan package of bills this week to establish a state-level regulatory framework for carbon sequestration projects. The Detroit Regional Chamber supports this legislation, recognizing its immense potential to unlock substantial economic development and position Michigan as a leader in clean energy technology.
This legislative package is a critical step forward in providing a clear and efficient pathway for businesses to invest in carbon capture and storage (CCS) technology. By creating a state-managed permitting process overseen by the Department of Environment, Great Lakes, and Energy, Michigan can streamline the often-lengthy approval process, which has been a barrier to investment. This greater certainty will attract new businesses and encourage existing companies to expand their operations in the state, knowing they have a reliable framework for managing their carbon footprint.
Captured carbon has the potential to be transformed into a valuable commodity rather than a liability. There are growing opportunities to utilize captured CO2 in producing cement, synthetic fuels, and even plastics, creating new revenue streams and strengthening Michigan’s manufacturing sector.
The MI SUCCESS Coalition, a consortium of business and labor groups that the Chamber is a member of, has lauded the legislation for its potential to create good-paying jobs and stimulate economic investment that has been flowing to neighboring states.
While some opponents raised concerns about carbon storage’s long-term safety and financial responsibility, the legislation includes provisions to address these issues. The bills establish several new funds, including a long-term remediation fund to address any future CO2 leakages and a community benefits fund to mitigate any local impacts of these projects.
The Chamber applauds the Michigan Senate for its forward-thinking approach. This legislation strikes a crucial balance between environmental responsibility and economic prosperity. Michigan is seizing a vital opportunity to enhance its economic competitiveness by providing a clear regulatory pathway for carbon sequestration. The Chamber urges the House of Representatives to swiftly take up and pass this critical legislation.