Energy Opportunities in Michigan

alternative-alternative-energy-clean-356049Every so often, there is a change in government policy that creates opportunities for jobs and new investment in our communities. One of our roles in economic development is to help our local government leaders learn about these opportunities and educate themselves as much as possible to make informed decisions. We have one such opportunity in front of us today.

The state of Michigan established a Renewable Portfolio Standard (RPS), requiring that the state’s 84 electric providers in Michigan secure 10% of their energy from renewable sources by 2015. In 2016, the State of Michigan increased its renewable portfolio standards to 15% by 2021.

In addition, last month, Consumers Energy announced it had filed a plan with the MPSC that outlined a path to using zero coal, while ensuring affordable and reliable energy for Michigan families and businesses. Under the plan, the company would increase renewable energy from 11% today to 37% by 2030. The company has a goal of reducing its carbon emissions and eliminating the use of coal to generate electricity by 2040. The company proposes to add 550 MW of wind to help them reach Michigan’s goal of 15% by 2021. They also expect to add 5,000 MW of solar energy with ramp-up throughout the 2020’s.

DTE Energy is also planning to reduce its carbon footprint and incorporate substantially more renewable and cleaner sources of energy into its generation mix. In 2017, DTE announced a broad sustainability initiative to reduce the company’s carbon emissions by more than 80 percent while continuing to provide reliable and affordable power to its 2.2 million customers. DTE will achieve this reduction by incorporating substantially more renewable energy, eliminating coal, using low emission natural gas, continuing to operate its zero-emission Fermi 2 nuclear power plant, and improving options for customers to save energy and reduce bills. Recently, DTE filed plans to double its renewable energy capacity by 2022, adding another 1,000 MW of wind and solar and driving investment of more than $1.7 billion in Michigan’s energy sector.

What can we do to help our communities become prepared for renewable energy?

During the initial RPS period, a majority of wind-generated projects were developed in areas such as Michigan’s Thumb and Gratiot County among others. With the increase in the RPS and the recently released goals of our largest utilities, we anticipate that there may be an opportunity for additional wind and solar projects.

In our area, developers are already contacting landowners to secure sites for solar and wind projects. Local government officials are considering amendments to their master plans to address renewable energy production. They are also looking at developing zoning ordinances that align with the community’s plan for renewable energy production.

As economic developers, we may want to assist our local government officials by providing educational opportunities related to solar and wind energy. MSU Extension recently provided an excellent workshop called, “Shining a Light on Agricultural Solar Energy Development”, which provided great information for property owners considering solar development.

Webinars

Collaborating with MSU Extension and local government associations to develop a similar workshop on wind energy would be of great benefit to our local government officials trying to address these opportunities and challenges; some for the first time. Potential topics could include an overview of the industry and siting wind turbines and their operational characteristics. You may also want to invite an official from one of the Thumb or Gratiot Communities to share their experience with wind development. As the local economic developer, you may want to prepare an economic impact analysis to show the property tax increase provided by a wind energy project.

At the end of the day, it is a local government decision and our role is to ensure that these public officials are able to make well-informed decisions for the economic betterment of their communities.

Authored by: JoAnn Crary, CEcD, President, Saginaw Future, Inc. JoAnn is a long-time member of MEDA and our 2018 Committee Chair.

NOTE: For more information on the webinars mentioned, you can contact M. Charles Gould, Agricultural Bioenergy and Energy Conservation Educator, Michigan State University Extension, PH: 616-994-4547, gouldm@anr.msu.edu.

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Making Connections for the Betterment of Our Community

Business development is a vital piece of the puzzle in creating vibrant, successful communities. There are several tools available for municipalities to use that create revenue streams to help finance economic investment, such as business retention visits, tax increment financing, brownfield redevelopment, tax abatements, and talent and training funding just to name a few. All are examples of the core strategies and instruments utilized by the City of Auburn Hills. Most of them are funded or authorized through our State legislature.

Part of my role in business development is engaging and interacting with our elected officials in Lansing. We continually have conversations about issues impacting business and investment at the local and regional levels. As a practitioner, I work on behalf of the City and its business community to advocate why funding these programs is so important. We often invite our elected officials from the State and Federal levels to visit companies so that they can witness firsthand the success of the tools we use on a daily basis.

Last week, State Representative Tim Greimel and State Senator Jim Marleau visited BorgWarner in Auburn Hills to talk about issues in Lansing and how they will impact areas like infrastructure, health care, and schools.

The budget process in Lansing is unclear at times, but it’s important to continue to reach out to elected officials so that they can assist us in achieving sustainable growth and development, which will ultimately bring improved quality of life for the residents of Auburn Hills. My role is to work with business leaders and City officials to make these worthwhile connections. As you can imagine, it’s an exciting and rewarding job.

Authored by: Stephanie Carroll, Manager of Business Development and Community Relations. Stephanie is MEDA’s Board Secretary and Emerging Leaders Committee Chair.

Stephanie blogs regularly at https://auburnhillsdevelopment.com/

Who Are You? A DNA Test for Municipalities

Question MarkWe hear a lot today about ancestry testing and finding out about our heritage. Many of us want to know “who we really are.” While these tests can be fun, they can also tell us a lot about ourselves that we thought we knew but had all wrong. For instance, we may know that our ancestors emigrated from a specific country, and claim that as our heritage, but with the help of these tests, we may learn that said ancestor only briefly lived in the “country of origin” and our actual roots lie elsewhere. The test may not change some of the facts we already know; it just gave us a different way to look at them.

Today I want to talk about a DNA test for municipal units – NAICS. The North American Industry Classification System is a great way to take a new look at your community. Just like the DNA tests described above, it can tell you so much on many different levels. At the broadest level, the two digit code, you can learn what industries in general are represented in your community. You may ask, “Why is this important? I know my companies and what industries they are in” – but do you? You may have a broad thought in your head such as automotive or even supplier; but did you know that there is no category “automotive” in NAICS? Did you know that what you considered an automotive supplier could be classified as a wholesaler? This is a new way of understanding your business community and the types of companies who may find your community attractive. Now you have opened a potential pathway to new markets and opportunities to improve your tax base.

Digging deeper into the code at the three digit level allows you to get a little more specific and go from retail trade to motor parts supplier. At the four digit level, you can find that “automotive” label, but it won’t be stand alone. It will come with something like automotive parts dealer. You can get a list of NAICS classifications for your community through a database such as Hoovers. Your local librarian should be able to help you with that effort if you do not already subscribe to one.

I encourage you to take the leap and find out “who you are” with your NAICS test.

Authored by Khalfani Stephens, Director of Economic Development, City of Farmington Hills, and 2018 MEDA Board Vice President.

The Spring Toolbox, Tuesday, May 16th – A Look Ahead

17 Spring Toolbox Postcard for RoblyIn economic development sharing best practices and growing good relationships is imperative to being successful. I have enjoyed volunteering on the Education Committee to develop The Spring Economic Development Toolbox and co-chairing this year with Kimberly Marrone, Economic Development and Communications Director, City of Oak Park.

Some of the topics that will be covered:

  • Understanding the Implications of Federal Foreign Policy Changes

What will it mean for trade in a major manufacturing state? How will it impact our state’s relationships with foreign companies? Will the dynamics of foreign workers shift? And what will the impact be on our university’s admissions of international students and the local economies of communities they reside in?

  • Opportunity for All: Strategies for Inclusive Economic Development

Although residents in many communities are thriving, there are those who are experiencing declining incomes, low or no participation in the labor force, and living in increasingly concentrated poverty. Expanding economic opportunity for these residents impacts a region’s ability to grow its economy and be the best it can be. A review of a paper presented at IEDC explores the issue of economic opportunity from a developer’s perspective, and highlights best practices from nine case studies.

  • Streamlining the Development Process: Applying One Stop Ready Principles in Local Communities

One Stop Ready is Oakland County’s economic development program to provide local communities with the resources, tools and trainings needed to capitalize on local strengths, improve processes, and make its vision a reality. A review of best practices and of the Benchmark Self-Evaluation Tool.

  • Educational Attainment as an Economic Driver for States, Regions, and Communities

How the result of this co-learning project is making an impact and why economic developers should pay close attention to credentials.

Visit www.medaweb.org/springtoolbox to view the full agenda and to register.

Author: Maria Nevai, Michigan Economic Developers Association Education Committee Co-Chair, Vice President, The Opportunity Group Alliance – Capitol Area Opportunity Group and Principal/Consultant, Maria Nevai, LLC 

How Do We Lean-In? Growing Female Economic Developers

JOIN_MEDA_MEMBERSHIP_Student (427x640)Recently, I had a chance to participate in a panel of female leaders in economic development at the International Economic Development Council’s annual conference in Fort Worth, Texas. The focus of the panel titled “Lean-In” was to examine both the challenges and the successes women economic development leaders have faced and the lessons learned.

The room was packed with 70+ aspiring, up and coming young women and four very enlightened males (thank you for being one of those Ron Kitchens).

The discussion really got my wheels spinning as to how I can lift other women and what advice would I give to myself 13 years ago when I first entered the field. Moreover, how can male leaders who want to support their female colleagues do the same?

Here are some ideas from myself and the panel of amazing women:

  • Mentor/Mentee: As a woman looking to excel, find someone who inspires you and begin a formal mentoring relationship. Most of my panelist had at least four formal mentoring relationships that helped them chart their course and provide honest feedback. For women already in leadership position, take time when approached to be a mentor to offer words of wisdom and regular advice.
  • Confidence: We all agreed that women can be their own worst enemies. Believing that you deserve to lead and demonstrating it to an external audience will take you far. I call it swagger. You have to own the room even if you are screaming on the inside. Speak up when you know the answers and have great insight. Let your voice be heard.
  • Emotions: I have admittedly cried on the job and each instance I would love to take back. Keep your emotions in check. When you are offered feedback that not be viewed as positive, don’t take it personally. You, the individual, is not being judged. Separate yourself from your performance and get stronger with each criticism or set back. A good friend of mine told me to bite the inside of my cheek if you feel emotional. It’s a great way to stop tears.
  • Dress: Dress for how you want others to perceive you. Don’t allow your dress to be a reason to discredit you or take away from your words. I personally despise pants suits and panty hose, but I regularly put them on knowing it is a necessary evil.

Now a few words of advice for those enlightened male leaders. I am forever grateful to those male leaders in our profession that contributed to my professional growth.

Here’s how they helped me:

  • Equal Treatment: Don’t treat your female leaders any different that your male leaders. They will let you know if they have commitments at home or need you to cut them slack.
  • Share: Share the lessons learned on your leadership path. I would recommend sharing stories of your professional struggles and lessons learned that will create deeper connections.
  • Feedback: Provide regular feedback on her progress, both good and bad. Providing honest conversations on a regular basis help most women chart their course to success.

I feel blessed to be female economic development leader in Michigan. When talking to women leaders from other states, it seems that team Michigan is head and shoulders above with many powerful female economic development leaders who have paved the path for newcomers over the past 20 years. They have charted the path for others to follow and now it is my turn to lift other women up and Lean In.

Authored by: Jennifer Owens, President, Lakeshore Advantage Corporation. Jennifer is a Member at Large on MEDA’s Board of Directors.