Energy Dominance Act

A bill to unleash Michigan energy dominance; to establish an all-of-the-above energy strategy; to accelerate nuclear development including small modular reactors; to expand responsible fossil-fuel production and export infrastructure; to support cost-effective renewables that complement baseload power; to modernize and harden the electric grid; to create Energy Freedom Zones; to generate surplus revenue for tax relief culminating in the phase-out of the state personal income tax; to create the Michigan Energy Authority; and to deliver lower energy costs, high-wage jobs, and lasting prosperity for Michigan families.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Section 1. Short Title.

This act shall be known and may be cited as the “Michigan Energy Dominance and Tax Freedom Act.”

Section 2. Legislative Findings.

The Legislature finds and declares all of the following:

(a) Energy is the foundation of modern prosperity. Michigan possesses substantial natural resources, industrial capacity, skilled labor, and strategic geography, yet high costs, regulatory delay, and external dependence have constrained growth.

(b) An aggressive all-of-the-above strategy—nuclear, responsible fossil fuels, economic renewables, grid hardening, and emerging technologies—can make Michigan a net energy exporter, attract energy-intensive industry, create tens of thousands of high-wage jobs, and generate the fiscal capacity to reduce and ultimately eliminate the state personal income tax.

(c) Abundance lowers costs for families and businesses, expands the tax base, and creates a virtuous cycle of investment, employment, and tax relief.

(d) All permitting, development, and revenue mechanisms under this act shall operate under clear, predictable standards, environmental safeguards consistent with modern technology, and full constitutional authority.

Section 3. Definitions.

As used in this act:

(a) “All-of-the-above” means the simultaneous advancement of nuclear, oil, natural gas, coal where economically and environmentally viable, cost-effective renewables, hydrogen, advanced storage, and related technologies.

(b) “Small modular reactor” or “SMR” means an advanced nuclear reactor design of modular construction with enhanced safety and factory-fabrication characteristics.

(c) “Energy Freedom Zone” means a geographic area designated for accelerated permitting, tax incentives, and regulatory streamlining for energy production, manufacturing, and export facilities.

(d) “Authority” means the Michigan Energy Authority created in this act.

Section 4. All-of-the-Above Resource Utilization and Permitting Reform.

(1) Arbitrary restrictions that unreasonably impede the development of oil, natural gas, nuclear, and other lawful energy resources are repealed or modified to the extent necessary to achieve the purposes of this act.

(2) The Department of Environment, Great Lakes, and Energy and all other relevant agencies shall adopt fast-track permitting procedures for drilling, pipelines, refineries, nuclear facilities, and related infrastructure. Fixed timelines, concurrent review, and deemed-approved provisions for failure to act within statutory deadlines shall be established.

(3) Predictable, performance-based environmental standards that protect public health and the Great Lakes while enabling development shall replace process-heavy obstruction.

Section 5. Nuclear Renaissance.

(1) It is the policy of this State to become a national leader in advanced nuclear power.

(2) Approvals for new nuclear plants and small modular reactors, particularly on brownfield and former industrial sites, shall be streamlined.

(3) The State shall partner with private industry to establish Michigan as a hub for nuclear manufacturing, supply-chain production, and export of nuclear technology and components.

(4) Workforce training and university research partnerships focused on nuclear engineering and SMR deployment are authorized and encouraged.

Section 6. Fossil-Fuel Expansion and Export Infrastructure.

(1) Responsible expansion of extraction in the Antrim Shale and other productive formations is authorized and shall be facilitated under modern safety and environmental standards.

(2) Construction of new pipelines and evaluation of LNG or other export terminal capacity on suitable Great Lakes or connecting waterway sites shall be prioritized to enable Michigan to become a net energy exporter.

(3) All such development shall comply with applicable safety, spill-prevention, and water-protection requirements.

Section 7. Renewables Done Right.

(1) Wind, solar, geothermal, and other renewable resources shall be supported only where they deliver clear economic return, complement reliable baseload generation, and do not raise rates for families and businesses through excessive subsidy.

(2) Preference shall be given to Michigan-manufactured equipment and supply chains.

(3) Renewable projects that undermine grid reliability or impose net cost increases on ratepayers shall not receive state incentive support.

Section 8. Grid Modernization and Resilience.

(1) The State shall prioritize hardening of transmission and distribution infrastructure, development of microgrids, and advanced storage to end excessive reliance on unstable out-of-state power.

(2) Energy projects receiving state support shall demonstrate contribution to grid resilience and shall not impose unsustainable strain on local systems.

Section 9. Energy Freedom Zones and Emerging Technology.

(1) The Authority may designate Energy Freedom Zones offering tax incentives, accelerated permitting, and regulatory relief for hydrogen production, advanced batteries, carbon capture, next-generation nuclear, and related technologies developed and manufactured in Michigan.

(2) Zones shall be subject to performance metrics and claw-back provisions.

Section 10. Economic Impact, Jobs, and the Path to Tax Freedom.

(1) The explicit goals of this act include creation of more than 100,000 high-paying energy-related jobs within a decade across extraction, generation, manufacturing, and export, and a substantial reduction in electricity and natural-gas prices for Michigan families and businesses.

(2) New energy-related revenues shall be used in phases:

(a) Phase 1 – Immediate targeted tax relief, including elimination or reduction of state tax on energy-related earnings and business-tax relief in energy corridors;

(b) Phase 2 – Automatic triggers for broader rate reductions or rebates as surplus revenue and economic growth materialize;

(c) Phase 3 – Structural progress toward full phase-out of the state personal income tax within eight to twelve years, supported by energy-driven expansion of the tax base, royalties, and government-efficiency reforms.

(3) A portion of energy-project revenue shall offset state spending through zero-based budgeting and sunset reviews so that expenditure growth does not consume the gains.

Section 11. Michigan Energy Authority.

(1) There is created the Michigan Energy Authority to coordinate permitting facilitation, export strategy, private-investment attraction, Energy Freedom Zone designation, and the design of citizen-benefit mechanisms from energy revenues.

(2) The Authority shall operate under strict performance metrics, public reporting, and reauthorization requirements.

(3) Fixed, predictable regulatory frameworks and appropriate liability protections shall be offered to attract large-scale private capital.

Section 12. Metrics and Public Accountability.

The Authority and relevant agencies shall publish annual public reports on:

(a) Energy production volumes;

(b) Jobs created and wages paid;

(c) Electricity and fuel price trends;

(d) Tax-revenue growth attributable to energy expansion and corresponding tax-rate reductions or rebates; and

(e) Progress toward personal-income-tax elimination and net-exporter status.

Section 13. Severability.

If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act and the application of its provisions to other persons or circumstances shall not be affected.

Section 14. Effective Date.

This act takes effect 90 days after enactment. Fast-track permitting rules, the Michigan Energy Authority, and initial Energy Freedom Zone criteria shall be operational within 180 days.

Enacting Section.

This act is ordered to take immediate effect.

Energy Dominance Today. Tax Freedom Tomorrow.

Michigan First Forever.

Unleash the Resources. Power the Golden Age.