EV Infrastructure Has Funding – When Will There Be Stations?
Three years ago, under the Bipartisan Infrastructure Law, Congress allocated $5 billion in federal funding to establish the National Electric Vehicle Infrastructure (NEVI) Program. This initiative aims to develop charger networks across each state to support electric vehicles (EVs). Of this funding, $110 million was earmarked for Michigan, covering the period through fiscal year 2026. However, the state has not yet seen the installation of any new power stations. As part of this effort, Red E Charging LLC – an EV infrastructure developer and charging network based in Detroit – has been awarded several NEVI contracts to install and manage in Michigan and a number of other states. SBN Detroit interviewed Red E Charging Founder Abass El-Hage about the timeline, barriers, and factors specific to Michigan regarding power station installation. Q: Since the announcement in 2021 of the $5 billion in federal funding just 11 EV stations have been installed across seven states, with none in Michigan to date. From your perspective, why is this? A: There are several reasons. First, this is a new process and it took time to get organized, generate RFPs, and kick it off. RFPs were published at the end of last year and contracts were awarded early this year. Setting up the necessary paperwork is tedious and time-consuming, and around public funds, there is just a lot of due diligence required. There are also multiple and varied requirements around bonding that can take another six months to sort out. Identifying appropriate locations for the charging stations with the right amenities on the property that’s willing to host can be time-consuming. On top of that, regardless of how long the paperwork takes, working with the utilities and getting the right equipment and resources in place can take six months to a year. It’s simply an arduous process that takes time. Q: Do the requirements vary from state to state? A: Yes. Every state is different when it comes to execution under NEVI. In Texas and New Mexico, the NEVI process is pretty straightforward, but Texas has issues with utilities that can slow things down. I would say Michigan is the middle of the road. And the biggest hurdle here is the strict bonding requirements. Not every state requires bonding, but Michigan requires a five-year bond that’s not run of the mill. Q: Outside of NEVI projects, is every state different? A: Yes. Incentives are different in every state. Utilities are different. In Michigan, we are lucky to have DTE and Consumers Energy. They have been helpful and proactive, and they facilitate a lot. EGLE (Michigan Department of Environment, Great Lakes, and Energy) and the EPA have been helpful in Michigan as well, helping to create infrastructure in off-highway locations that are still easily accessible at reasonable rates. Q: In Michigan, are the challenges different in the Upper Peninsula compared with the Lower Peninsula? A: Yes. With every project there are financials, and in the UP there are fewer people, there is less traffic, and therefore less charger usage. It’s harder to justify a project when you don’t make the money back as fast. Additionally, utilities in the Upper Peninsula impose demand charges, which are flat fees added to the electric bill. These charges can be quite substantial. When considering these costs, the financial viability of a project often becomes questionable. Q: How do you view the transition from gas to electric vehicles being understood and received by the public? A: It’s a mixed bag. I think there is still a stigma around charging and how difficult and inconvenient it could be. It’s a misconception in my opinion. I drive from Detroit to Chicago regularly and along that route, I can stop to charge just like stopping for gas. Also, I think there’s been mixed messaging to the public by the auto industry – especially here in Detroit. When there are recalls, or if an automaker commits to building x amount of EVs and then scales back, this sends mixed signals to the public. Q: How many contracts in Michigan has Red E Charging been awarded and what is the status? A: We’ve been awarded 12 NEVI contracts all over the state and an additional 60 fast charger projects across the state for EGLE and utilities. As I explained, the paperwork along with bonding requirements plus environmental approvals, site checks, and more make this a slow process. But we have notice to proceed and are moving forward with the first few now, so these will be underway. The actual installation takes just about two weeks. We were also awarded a project outside of NEVI with the City of Detroit to install public-facing chargers throughout the city. Q: Michigan aims to have enough infrastructure for 2 million EVs on the roads by 2030. Do you think this is possible? A: Yes, I think it can happen. DTE and Consumers Energy are very helpful when it comes to single-family and multifamily homes. It’s cost-effective to have a charger at your home. That drive from Chicago to Detroit I talked about … I think by the end of the year there will be chargers every 20 miles or so, eliminating any planning needed because people will feel confident they can stop whenever they need a charge. I think in the near future the logistics involved in an EV experience will be no different than driving a gas-powered vehicle. It’s just a different thing fueling the car. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
The Role of Businesses in Sustainability
A sustainable Great Lakes region cannot be achieved without the leadership, involvement, and commitment of businesses. From decarbonization and the circular economy to water stewardship and workforce development, businesses across all industries and sizes have a unique opportunity to make decisions and investments that impact the region On October 31, the Sustainable Business Network of Detroit (SBND) and the Council of the Great Lakes Region (CGLR) held a jointly organized event to hear from business leaders who share a commitment to sustainable development and learn about the actions they are taking to embed sustainability in their operations and corporate strategies. Discussion focused on the role of businesses in sustainability, measuring the data, automation, and workforce development. The panelists were: Edna Lorenz, energy director for Corewell Health. Mark Schrupp, executive director, the Detroit/Wayne County Port Authority. Lillian Woolley, senior chemical engineer, Fishbeck. Shanelle Jackson, senior manager for State Government Relations for LyondellBasell. Colin Bird, Consul General of Canada in Detroit, also participated as a special guest. Takeaways follow: Bird: This region really is the epicenter of North America, and we have the ability to become the green economy that powers the world and addresses climate change issues around the globe. Wolley: Regarding the role businesses have in sustainability, I think every business and industry is different. Businesses certainly need to support the efforts the state has committed to, and there are programs and utility rate breaks available to help. Shrupp: Businesses will do what is in their interest financially. Five years ago, businesses were largely not engaged in sustainability, but they are at the table now because government entities – and their customers – have made it a priority. Jackson: I think employees today want to be proud of the company they work for and are demanding more and more from companies regarding their sustainability commitments. Shrupp: The Port of Detroit is the linchpin of manufacturing in the city. Heavy industry comes in here and that’s been a huge cost to the environment and air quality. We are developing a decarbonization plan now and we hope to create the greenest port in the Great Lakes and act as an example for others. Jackson: When it comes to sustainability, we are engaging employees at every level from the factories to the C-suite, and having the conversations. Woolley: When it comes to metrics there are companies that are good at it and companies that don’t know what they should be looking at. There are lots of tools available to help though. Lorenz: One of our 2024 initiatives is water. Not just the water we drink but the water we wash our hands and bedding and dishes in. Hospitals utilize water for heating and cooling and there is chemical treatment of that water. This is a big initiative for us in 2024. Shrupp: Working in a port region is a dirty job. The air quality is bad. We are working to raise the level of standard and pushing that agenda throughout the industry. Jackson: I’ve been hearing women and people of color are saying we’ve seen a decline when it comes to DE&I. There was a push for it in 2020 (and before) but was it a thing of the moment? Lorenz: I think healthcare is embracing automation. We have robots delivering food to patients and robots making food. The industry is utilizing software and AI solutions to supplement human staff so that human staff is better able to focus their attention on the data analysis piece. Jackson: Our top goal is to help end plastic waste so we need the latest technology to do that. LyondellBasell is consistently investing in opportunities to increase innovation in ways that will ultimately save us money. Shrupp: There is a lot of work to be done. We need more young people to choose to live in this region and help our businesses transition. Millennials are raising the importance and demand for sustainability. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
With 110,000 Jobs and $5 Billion in Wages, Michigan’s Outdoor Rec Industry Continues to Grow
With 36,000 miles of rivers and streams, 20.3 million acres of forests, 1,300 miles of designated mountain bike and bicycle trails, 6,500 miles of snowmobile trails, and more than 600 campgrounds, Michigan has a lot to offer in the way of outdoor recreation. These resources provide connections with nature and opportunities for a healthier lifestyle, and they support Michigan’s economic growth with more than 7,000 outdoor recreation industry companies that include manufacturers and retail and service-sector businesses. And the goal is to continue growing. “When you put Michigan’s outdoor rec growth stats next to the fact that Southeast Michigan is one of the best places for entrepreneurship and venture capital, it becomes about how do we exemplify this and amplify it and bring and support talent here toward even more growth,” said Brad Garmon, director of the Michigan Office of Outdoor Recreation Industry of the Michigan Economic Development Corp. Gov. Gretchen Whitmer created the office in 2019 to focus on the outdoor economy, and the same year, the state joined the Confluence of States (COS), a bipartisan coalition of states dedicated to cultivating strong outdoor recreational economies while preserving land and other natural resources. Garmon, the coalition’s incoming chair for 2023, said the coalition’s four areas of focus align with Michigan’s goals of developing a sustainable future: Economic development, workforce and education, public health and wellness, and conservation and stewardship. “There is inherent connectivity between the outdoor recreation industry and building a sustainable future – a sustainable Michigan,” Garmon said. “We are leaning into the four COS areas of focus to create jobs, strengthen the economy, and promote physical activity while also being stewards of our wetlands, waters, forests, trails, parks, and natural resources.” The added infrastructure points to the growth in the outdoor recreation economy. According to the Michigan Economic Development Corp. and the U.S. Bureau of Economic Analysis: Michigan’s outdoor recreation economy grew 15.4% from 2020 to 2021 and is up 30 percent since 2012. The outdoor recreation industry employs nearly 110,000 people in a wide range of occupations and skills, including design and manufacturing, retail sales, and hospitality, accounting for $5 billion in wages and salaries. More than 7,200 of Michigan’s outdoor recreation jobs are in manufacturing, such as boating, RV, and gear manufacturing. The outdoor recreation economy also impacts local retailers across the state to the tune of $3.5 billion, accounting for 32% of the total value-add impact. Retail jobs supporting outdoor recreation totaled over 41,000 in 2021. The value-add is the difference between sales receipts plus other operating income and inventory change and production costs. And more growth is the plan. “We are working on identifying how we can add jobs, and also bring companies in from out of state,” Garmon said. He points to the bike industry as an example, saying, “I attended a bike industry summit recently and a large area of discussion focused on the fact that manufacturing is mostly overseas, and that the legacy of bicycle production in the U.S. has been lost. By pointing them to the manufacturing and engineering expertise in Michigan this creates a pathway for opportunity and a win/win for all.” Another area of interest for Michigan is the electrification of motor sports vehicles. “This industry is looking at and thinking about an electric future now, and our innovation in this area could bring big opportunities and more business,” Garmon said. Given that Michigan is also being recognized as a destination for startups and venture capital investment, the implication of opportunity gets even stronger. In fact, Detroit is the No. 1 emerging startup ecosystem globally, according to newly released rankings from Startup Genome’s 2022 Global Startup Ecosystem Report (GSER). When you consider that Detroit has also been recognized as one of the best travel destinations in the world, one of Time’s ‘Worlds’ Greatest Places’, and the Riverwalk is consistently voted best in the America, Detroit becomes even more interesting. Garmon shares, There is this antiquated idea that recreation only happens in wild or natural places, but Detroit is demonstrating that recreation happens everywhere. The Dequindre Cut, Belle Isle, the Riverwalk, and our parks all support quality of life and activity and recreation in Detroit. He added: “You don’t have to be on a trail or working in the wilderness to apply work skills and/or enjoy life. We are getting better at telling Detroit’s story and talking about Michigan’s assets and not living in the shadows of places like Colorado – we are now standing right next to them.” Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
Detroit 2030 District is Promoting Carbon-Free, High-Performance Built Environments
SBN Detroit interviews the executive director of the Detroit 2030 District, Connie Lilley. Connie has been working within the commercial built environment for over 25 years, with the last 16 years focusing on energy efficiency and sustainability. She has served on many industry trade groups, including past vice chair for the U.S. Green Building Council, Detroit Regional Chapter, where she implemented the popular My Green School Art Contest that runs annually throughout Michigan. Connie has received two awards from the National Women in Construction Detroit Chapter for being a green/sustainable leader. She has also volunteered for BOMA, IFMA, and the City of Detroit Green Task Force. Connie is a LEED AP, O & M (accredited professional, operations and maintenance) and has an MBA focusing on corporate sustainability. Q: Please tell me about Detroit 2030 District and your role. A: I am the executive director of the Detroit 2030 District, which is a nonprofit working with building owners and managers to help them reduce energy and water consumption and transportation emissions to and from their buildings. The movement promotes a carbon-free future, high-performance buildings, economic development, and environmental justice. The District is one of twenty-four 2030 Districts across North America, with three in Michigan – Grand Rapids, Detroit, and Ann Arbor. The Detroit 2030 District Is the fourth-largest District in the network, with over 51 million square feet committed. The District has 40 local nonprofit partners and 42 local businesses that support the program. The Detroit District was launched in 2017 with the support of the Michigan Department, of Environment, Great Lakes, and Energy. Q: Please elaborate on the work you are currently doing. A: We offer our building members resources and a robust calendar of educational opportunities to learn how to reduce energy and water consumption, transportation emissions, and operating expenses. We have three best practice groups, including houses of worship, venues, and museums, and multifamily. We assist our members in many ways, including helping them start an Energy Star Portfolio Manager Account to measure and track energy and water consumption and work towards reducing them. We also run many pilots on new technologies at member buildings, allowing our members to see if the technology is suitable for their buildings. We run webinars on relevant topics, including funding mechanisms, grant opportunities, renewables, green infrastructure, solar, etc. Q: You were instrumental in bringing a District to Detroit in 2017. What prompted this and what was the process of bringing this to Detroit? A: My industry colleague, Peggy Matta, and I talked for many years about the benefits of this type of program. We knew that Detroit had many aging buildings that would need renovation in the coming years. If Detroit were to make a comeback, healthy buildings and communities would be significant to the process and help to spur economic development. We both know it is best to consider energy efficiencies and other high-performance building techniques before a building is built or renovated. We felt we would be more successful in helping to rebuild Detroit if we educated many building owners at a time instead of one at a time. We had heard of the 2030 District Network and how it works. We thought it would be great to bring a District to Detroit. After working for several years with many volunteers and an exploratory committee, we became an Emerging 2030 District. After a lot of groundwork, and collaboration with municipalities, businesses, and nonprofits, our movement began to grow and finally became a full District in 2017. Peggy became the founder and Chair of the organization and is still very involved. Q: Are you pleased with the progress and impact you’ve been able to make? A: While there have been many ups and downs, including the pandemic, flooding, stormwater issues, and the political environment, we have made it through. Never in my wildest dreams did I think we would have 51 million square feet signed into our program. When we were first touting the benefits of reducing carbon emissions from the built environment, the conversation about the impact of climate change on the built environment was challenging. Many people didn’t understand the economic and health benefits of reducing a building’s carbon footprint. Since our inception, we have helped hundreds of building owners and facility managers understand how to measure, track and work to reduce energy and water consumption. Many building owners don’t have an energy manager or a sustainability professional who understands how to combat issues with climate challenges. We have implemented several successful programs, including a Museum Best Practice Group, which has gone national across all 2030 Districts. Our unique House of Worship Best Practices Group includes over 20 local congregations. This program partners with 15 different local businesses and the EPA for Congregations and has crafted a collaboration opportunity for all denominations. One of the District’s strengths is bringing together groups of people from different entities and organizations to collaborate on strategies. Our program provides various events and workshops that bring people together that may not have had the opportunity to meet before. Facility managers across the city can now collaborate and work together instead of in a silo. Sharing best practices reduces the time and effort a building owner/manager must put into understanding climate challenges and overcoming them. We launched the Detroit Energy Challenge along with the City of Detroit and the Michigan Battle of the Buildings. Our first awards breakfast took place this June. We will also be adding awards in the future for internal water consumption reduction. This competition is an excellent opportunity for us to recognize facility managers who have done a fantastic job reducing energy consumption and carbon footprint Our organization also supports a future benchmarking ordinance for the City of Detroit. We are hopeful to see this pass soon as it will allow building owners to benchmark their buildings. We have made great strides and relationships with the local utilities, including DTE and Detroit thermal. We work to understand their goals and missions
