The Energy and Natural Resources Committee voted 13-4 to advance Granholm's nomination.
Granholm has pledged she would protect jobs while working to transition the United States to sustainable energy sources.
Granholm served as governor of Michigan from 2003 to 2011 during which time she aggressively pushed renewable energy initiatives in line with Biden's current stated plans to combat climate change, including a pledge to reach net zero emissions by 2050.
The nomination of the former Michigan Governor will now go before the full Senate for a final vote.