On Wednesday, Governor Whitmer released her budget proposal, which is being lauded by a diverse group of non-profit organizations across the state. Among the billions of dollars in investments for climate resiliency, clean water, and land and wildlife protection, the proposed budget includes more than $498 million in programs and incentives to accelerate the transition to cleaner mobility in Michigan.
Programs and incentives outlined in the budget include:
- $150 million for electric school buses
- $65 million to expand electric vehicle charging infrastructure networks and access, including fleet electrification, at-home charging, multifamily dwellings, and community charging needs
- $45 million for the Michigan Clean Fleet Initiative to support local governments and businesses transitioning their vehicle fleet to electric vehicles and clean fuels
- $10 million to begin the transition the of State of Michigan’s fleet to electric vehicles
- $160 million for transit capital grants to plan for and transition to cleaner modalities
- $15 million for a critical minerals recycling and reuse program to bolster the EV supply chain
- $5 million for the Office of Future Mobility and Electrification to support clean mobility projects in Southeastern Michigan
- Approximately $48 million for sales tax incentives of up to $2,400 for the purchase of a new, used, or leased electric vehicle
- A temporary sales tax pause on electric vehicle sales
This Governor’s proposal follows a concerted effort by a coalition of groups, including the Ecology Center, that advocated for equitable electrification investments to be included in the budget. Equitable investments are critical in making EVs more affordable and accessible for low- and moderate-income Michiganders. The proposal includes more funding than expected for electric school buses and cleaner government fleets. However, advocates will continue to push for more equitable clean mobility funding during the budget review.
“The state that put the world on wheels can now help to lead the transition to electric vehicles with the clean mobility investments Governor Whitmer included in this budget,” said Charles Griffith, climate and energy program director for the Ecology Center. “The proposed clean mobility investments--for electric school buses, EV charging stations and cleaner government fleets, as well as a sales tax credit for the purchase of new and used EVs--will all help to reduce pollution from the tailpipe and improve public health, while also meeting the goals of the MI Healthy Climate Plan. While we will continue advocating for additional state budget support for e-bikes, public transit and additional non-motorized mobility programs, the governor’s budget is a great step forward.”
The Ecology Center looks forward to collaborating with Governor Whitmer’s Administration and the Michigan state legislature to support a swifter and more equitable transition to clean energy.