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Incentives/Policies for Renewables & Efficiency

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Energy Efficiency in State Buildings   

Last DSIRE Review: 04/25/2013
Program Overview:
State: Michigan
Incentive Type: Energy Standards for Public Buildings
Eligible Efficiency Technologies: Lighting, Comprehensive Measures/Whole Building, Other technologies not identified
Eligible Renewable/Other Technologies: Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Biomass, Geothermal Heat Pumps, CHP/Cogeneration, Bio-gas, Daylighting, Small Hydroelectric
Applicable Sectors: State Government
Goal:25% reduction in grid-based energy purchases by the end of 2015, as compared with purchases in the fiscal year ending September 30, 2002.
Equipment/Products:Energy efficient equipment must be used whenever possible, with specific references made to cost-effective lighting and geothermal heat pumps.
Requirement:Examine the costs and benefits of using the LEED green building standard when constructing or remodeling a state building, and in leasing or remodeling leased buildings. Buildings should qualify for the Energy Star designation.
Web Site:,4611,7-122-25676_25689---,00.html
Authority 1:
Date Enacted:
Date Effective:
MCL ยง 460.1131 et seq.
Authority 2:
Date Enacted:
Date Effective:
Executive Directive 2007-22

In October 2008, the Michigan legislature enacted a series of bills addressing several components of the state’s energy markets. Among the enacted laws was Public Act (P.A.) 295, which renewed and revised the state’s commitment to energy efficiency in state facilities that had previously been addressed under several Executive Directives. The new law also created a state renewables portfolio standard (RPS), revised the state’s net metering law, and provided for the formation of the Wind Energy Resource Zone Board to investigate state wind resources, electricity transmission, and siting issues.

In the area of state government energy efficiency, P.A. 295 sets a goal of reducing state government grid-based energy purchases 25% by 2015 compared to a 2002 baseline. As of July 2010, Michigan had achieved a 22% reduction in energy use in state facilities. The law directs the Department of Management and Budget (DMB), in consultation with the state Energy Office, to perform and oversee a number of tasks related to achieving this goal. The responsibilities of the DMB under P.A. 295 are as follows:

  • Establish an energy analysis program to evaluate each building owned or leased by the state for ways of reducing energy use. The analyses must take place at least once every five years.
  • Examine the costs and benefits of using the LEED green building standard when constructing or remodeling a state building, and in leasing or remodeling leased buildings.
  • Ensure that energy efficient equipment is purchased and used in state operations whenever possible, specifically including cost-effective lighting technologies and geothermal heat pumps.
  • Assist each state department in naming an Energy Reduction Coordinator to work on reducing energy use.
  • Implement a program to educate state employees on ways to reduce energy use.
  • Reduce state government energy use during peak summer use periods beginning in 2010.
  • Create a web-based tracking system for state energy efficiency and conservation projects.

Although specific details are not identified in the law, the 25% by 2015 grid-based energy reduction goal may be met with the use of on-site energy generation such as combined heat and power (CHP) or renewable energy generation in addition to energy efficiency improvements, operational changes, or other measures.


In April 2005, Michigan’s governor signed Executive Directive No. 2005-4 establishing an energy savings target for all state buildings managed by the Department of Management and Budget (DMB) or other departments within the jurisdiction of the executive branch of state government. The directive set a target of 10% reduction in energy use by the end of 2008 and 20% reduction in grid-based energy purchases by the end of 2015, as compared with energy use and purchases in the fiscal year ending September 30, 2002. The directive also contained provisions requiring state agencies to purchase energy efficient products or equipment, and use green building practices in new construction.

In January 2007, Executive Directive 2007-06 required the DMB to develop a plan to further reduce energy use by departments and agencies within the executive branch by at least 10% as compared to energy use during the fiscal year ending September 30, 2006. This additional requirement did not affect the various other requirements and goals authorized under Executive Directive 2005-04.

Executive Directive No. 2007-22, signed in November 2007, rescinded the previous directives in their entirety, but maintained the energy use reduction goal, the grid-based energy purchases reduction goal, and energy efficient product procurement provisions described above. Green building guidelines for new state construction were retained in a slightly modified form. Thus far grid-based energy purchases by state agencies have been reduced by 23% compared to 2002, exceeding the 20% by 2015 goal.

  Keith Paasch
Michigan Department of Management and Budget
Building Operations
530 W. Allegan
P.O. Box 30026
Lansing, MI 48909
Phone: (517) 373-0185
Web Site:
  General Information
Michigan Energy Office
MEDC Building
300 N. Washington Square
Lansing, MI 48913
Phone: (517) 241-6228
Fax: (517) 241-6229
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2014 - 2015 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.