With the clock ticking on the shutdown and eventual decommissioning of the Palisades Nuclear Power Plant at Covert, the collective community of Michigan’s Great Southwest will get a sizeable boost in planning for a future without the plant and the resultant jobs thanks to the U.S. Department of Commerce.
U.S. Secretary of Commerce Gina M. Raimondo has announced that the Department’s Economic Development Administration (EDA) is awarding a $969,261 grant to the Southwestern Michigan Commission, headquartered in Benton Harbor, to develop an economic recovery strategy ahead of the closure of the Palisades Nuclear Generating Station. The EDA grant will be matched with $242,316 in state and local funds.
Secretary Raimondo says, “President Biden is committed to supporting local efforts to create new opportunity and jobs in communities impacted by nuclear plant closures,” and adds, “This EDA investment will create a roadmap for economic recovery and diversification that will help Southwest Michigan respond to the upcoming nuclear plant closure.”
Susan Brehm, Director of EDA’s Chicago Regional Office notes, “The Economic Development Administration is pleased to support the Southwestern Michigan Commission strategy to create new economic opportunities and jobs,” and says, “This EDA investment will help Southwest Michigan prepare for and recover from the closure of the Palisades Nuclear Generating Station, which is slated to close in 2022.”
Congressman Fred Upton issued the following statement following the news:
“Palisades has been such a strong part of the fabric of our Southwest Michigan community since 1971. They’ve employed thousands of workers with good-paying jobs and financial security. It’s important we do not turn our backs on these hardworking folks now. As the plant prepares to close in 2022, this EDA grant will help ensure a smooth transition, safely shut down the plant’s daily operations, and create new jobs in the process. I want to especially thank them for their longtime economic and philanthropic commitment to our corner of the state over the past several decades.”
Senator Debbie Stabenow says, “The community’s leadership has done a great job being proactive,” and adds, “This investment will help make sure the region is prepared to rebound from these changes, stronger than ever.”
The project is being funded under EDA’s Assistance to Nuclear Closure Communities program. Closures of nuclear power plants throughout the United States have had a significant impact on the economic foundations of surrounding communities through sudden job losses and a reduction to the local tax base. EDA has a strong history of working with communities facing structural economic adjustments, including those impacted by nuclear power plant closures.
During his tenure, Upton has visited the Palisades plant a number of times to see their work firsthand and emphasize the role of nuclear power in strengthening American energy independence and producing a reliable and affordable energy supply for hundreds of thousands of Michigan residents. In total, Palisades generates enough energy annually to power 800,000 homes across Southwest Michigan.
State Treasurer Rachael Eubanks has also applauded the announcement, saying, “Our energy supplies are changing — and the Michigan Department of Treasury is proactively working with communities as we all navigate closures of existing facilities that have been important parts of local economies for decades,” while adding, “This is an opportunity for us to help bring together resources and expertise to support communities as they chart their economic future. Together, we can create a blueprint to recover from such a loss and create a just transition for these communities.”
The grant’s funds are part of a statewide effort to implement the Energy Transition Impact Project (ETIP). Created under Executive Directive 2020-10, ETIP helps communities in Michigan overcome significant issues associated with the closure of an aging power plant, such as reduced tax base, lost employment, significant reduction in services, site remediation, environmental justice and the need for economic development.
With community input, the state Treasury Department has been providing analysis, assistance, expertise and planning to assist in developing an energy transition strategy for areas affected by changes in the energy industry and the sources of energy generation.
John Faul, Palisades Project Director for Van Buren County, says, “Van Buren County believes in a proactive, holistic approach to mitigate the job, real estate, human capital and tax revenue impacts resulting from the closure of Palisades,” and adds, “We welcome and appreciate the wonderful opportunity this project presents to collaborate with our state and federal partners for investment in Van Buren County that we expect to grow out of this work.”
Obtaining the U.S. Commerce Department’s EDA grant required the efforts of federal, state, local and private industry partners to collectively work together.
Brandon Hofmeister, President of the Consumers Energy Foundation, says, “Consumers Energy is committed to investing in Michigan communities as we transition to new energy resources to power our future,” and concludes, “The Consumers Energy Foundation is proud to show that through our $140,000 grant to support Southwest Michigan’s efforts to continue to grow and thrive.”
The photo of Palisades accompanying this story on Moody on the Market is courtesy of Professional Photographer Tom Renner of South Haven.
