Majority Republicans are interested in abolishing the
state’s requirement mandating that utilities generate a certain percentage of
their energy from renewable sources, but not without a counter proposal from
the Democrats. Top Democrats on the House and Senate energy committees stated
their top priority is to increase the current renewable portfolio standard and
to raise Michigan’s energy efficiency from 1 to 2 percent.
Representative Bill LaVoy (D-Monroe) and Senator
Hoon-Yung Hopgood (D-Taylor), Minority Vice Chairs on the House Energy Policy
Committee and Senate Energy and Technology Committee, proposed an increase in
the renewable standard. Ideally, the Democratic proposal would like to raise this
standard from 10 percent by 2015 to 20 percent by 2022. In addition to this
increase, Democrats feel it’s imperative to improve on the efficiency
percentage.
This proposal will also establish exceptions from the 20
percent by 2022 goal, as more affordable alternatives and new technology becomes
available. Utilities will also be forbidden from placing surcharges on
consumers for the new renewable standard. Democrats are also looking to
prioritize the upgrading of the state’s energy infrastructure and develop a better
method to advocate on behalf of residential utility customers.
The existing renewable standard has been under constant scrutiny
this year as it nears its expiration date. Representative Aric Nesbitt
(R-Lawton) and Senator Mike Nofs (R-Battle Creek), chairs of the two energy
committees, both are in support of ending the current standard in exchange for
a natural gas incorporated initiative for clean energy. Various business
groups, including major utilities, have also rejected the standard.
Environmental groups, on the other hand, have praised the
proposal from the Democrats. Mike Berkowitz, Legislative Director of the Sierra
Club’s Michigan chapter, stated that the proposal will help keep Michigan from
falling further behind other states in renewable and energy efficiency.
Senator Hopgood commented that the state needs a
renewable standard and the clean energy standard could be a useful addition to
the conversation. He and Representative LaVoy are interested in working with
Republicans to develop a solution on renewable standards.