Michigan Governor Unveils NextEnergy Blueprint

Michigan Governor John Engler on Thursday unveiled NextEnergy— a comprehensive economic development plan to make Michigan a leader in the research, development, commercialization and manufacture of alternative energy technologies such as hydrogen fuel cells.



Gov. Engler's energy blueprint proposes the creation of a 700-acre, tax-free NextEnergyZone in York Township near Ann Arbor, building the NextEnergy Center there and attracting alternative energy companies from around the world to the zone, making it a cluster of energy innovation.



Surrounded by fuel cell vehicles at the Henry Ford Museum in Dearborn, Gov. Engler announced his plan would help reduce America's dependence on foreign oil, improve the environment and strengthen the economy. He said he would work with the Michigan Legislature and Congress to fund the plan and would establish a Michigan NextEnergy Development Fund to leverage additional capital for industry expansion.



The market for fuel cell products alone is expected to grow to an estimated $95 billion by 2010, Gov. Engler added. He explained that not acting could put at risk nearly 200,000 Michigan jobs that are either directly or indirectly tied to the engineering and manufacture of engines and transmissions.



Highlights of the Governor's blueprint include:

• NextEnergy Center — a state-of-the-art facility affiliated with the University of Michigan will serve as a comprehensive clearinghouse and information resource on alternative energy technologies, develop college courses, provide technical assistance and fund industry-university collaborative research and commercialization projects.
• Michigan NextEnergyZone — a 700-acre, state-owned site in York Township near Ann Arbor that will become the locus of the alternative energy cluster of innovation. In addition to being designated a tax-free Renaissance Zone, companies that locate there will receive a tax rebate based on the jobs they create in the zone.
• National Alternative Energy Program — Designed to complement the work of the NextEnergy Center, the national program could act as a type of Underwriters Laboratory for the development of industry standards, certification systems and to identify research gaps and needs.
• NextEnergy Tax Incentives — Exemptions from the Small Business Tax and personal property tax for companies, or activities within companies, whose primary focus is alternative energy research, development or manufacturing.
• Spurring NextEnergy Demand — Steps include an exemption from the sales and use tax of any purchases of stationary and vehicular devices using alternative energy technologies.
• NextEnergy Leadership Council — Governor Engler will appoint national experts to this panel to provide critical advice on the implementation of the NextEnergy agenda and on issues ranging from research investment to questions about intellectual property.
• NextEnergy Demonstration Microgrids — These microgrids powered by fuel cells or other alternative energy technologies would demonstrate that these solutions are viable.
• International NextEnergy Conference — Michigan will host this event where industry and academic leaders can share innovations and work with government officials to develop new energy policy initiatives.

The complete text of NextEnergy is available at http://www.nextenergy.org