Michigan Stimulus Funds to Jolt Companies and Demand Reduction

Michigan is set to receive 32.8 million in federal grants to reduce residential and commercial energy consumption.

Department of Energy Secretary Steven Chu announced this week that part of the federal stimulus plan would be dedicated to reducing energy consumption in public buildings by 20% by 2012.

Secretary Chu said in a statement that, "this funding will provide an important boost for state economies, help put Americans back to work and move us toward energy independence. It reflects our commitment to support innovative state and local strategies to promote energy efficient and renewable energy while insisting that taxpayer dollars be spent responsibly."

Part of the $3.1 billion dedicated to lowering energy consumption and adopting renewable energy, the grants will cover energy audits by DTE Energy (NYSE:DTE) and Consumers Energy (NYSE:CMS), the state's largest utilities, of 500 homes and businesses.

The money is also intended to foster renewable energy markets, especially wind, and could also be used for grant and loan incentives for smaller businesses to use alternative energy.  This week, Iowa also will receive $16 million to reduce consumption and encourage the shift to renewable energy.

Michigan is one of 27 states to have adopted a renewable-energy standard, warming the seat for alternative energy. Michigan is home to Energetx, a company that will produce large-scale wind turbine components, plans to add over a thousand jobs in the next five years.

Also in Michigan are the producers of the Windspire® Wind Turbine (featured on ABC's 20/20), Mariah Power, who use a retrofitted automotive factory which began operation this April.

Michigan's strong manufacturing and engineering core could result in impressive gains for clean energy technology development and implementation.

Photo courtesy of the Center for American Progress Action Fund