Environmental groups push for enforceable protections for ratepayers, climate progress and freshwater resources
LANSING – A diverse group of environmental advocacy organizations is urging the Michigan Senate to add enforceable protections to House Bill 4906, the legislation that would provide tax breaks for data centers. The Michigan House passed the bill on Nov. 13, and it is now under review by the Senate.
Advocates are concerned power-hungry data centers will undermine Michigan’s climate plan to achieve 100% clean energy by 2040, aiming to protect Michigan’s air, land and water for future generations.
In addition, without specific protections for ratepayers included in the legislation, rates could possibly spike due to an increased demand for electricity or water.
“Without guardrails, data centers are a threat to climate progress. With guardrails, data centers can drive climate progress,” said Tim Minotas, deputy legislative and political director at Sierra Club Michigan Chapter. “Data centers can have significant impacts on our environment and public health – including water use, energy use, land use and noise – especially if back-up diesel generators are employed. We must prioritize protecting our water, air, and ratepayers while encouraging economic development in our state.”
“We cannot allow out-of-state corporations to write their own tax break legislation full of loopholes that allow them to exploit our resources and push their costs off onto the public in the form of higher water and electric rates,” said Dr. Denise Keele, executive director of the Michigan Climate Action Network. “These companies want Michiganders to pay for their enormous water and energy use and infrastructure, and the Legislature must require these rich corporations to pay their own costs, rather than pass them off onto everyday Michiganders.”
“We must not take corporate promises on faith. The Michigan Senate must require that these big companies deliver value to people in our state,” said Abby Clark, Midwest campaign manager at NRDC (Natural Resources Defense Council). “Failure to set enforceable, high standards now will inevitably lead to long-term data center issues in Michigan. Now is our opportunity to lead once again on strong clean energy, freshwater and climate policy while investing in Michigan’s future, and we must use it.”
“While providing tax incentives to build out data centers in Michigan may provide good paying jobs, data centers also use tremendously large amounts of energy and water," said Dr. Lisa DelBuono, MD, board chair and founder of Michigan Clinicians for Climate Action. “If we wish to protect the health of Michigan residents, it is essential to link any incentives to build out data centers with appropriate guardrails that ensures healthy, breathable air, affordable clean energy and clean water, and a livable planet.”
“Michigan’s future demands that we balance economic development with environmental responsibility," said Ashley Rudzinski, climate and environment program director for the Groundwork Center for Resilient Communities. "Data centers have the potential to contribute to local economies, but only if we proactively implement strong standards to protect our water, air and energy resources. Without these safeguards, we risk burdening communities with higher costs and environmental degradation while these megacorporations reap the rewards.”
“We know that data centers use enormous amounts of water and electricity, which can create new challenges for our utilities as well as impacts on air, water and land. Michiganders need the forward-thinking of our legislators to ensure that the big tech corporations who profit the most from these centers are held accountable," said Charles Griffith, climate & energy director for the Ecology Center. “Any new incentives must include, at a minimum, a requirement to power the data centers with 100% clean energy, consistent with Michigan’s new Clean Energy legislation, along with provisions to prevent these data companies from passing the costs of this new energy on to ratepayers."
The following group also expressed support for updating the legislation:
- Vote Solar
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