The House Energy
Policy Committee reported a package of bills late Thursday that include
significant changes to the proposed renewable energy definitions. These bills
also include a utilities goal of 30 percent production from renewable and
energy efficiency. Attempts to expand choice were made, but were not
successful.
The committee
reported, HB 4297, HB 4298, and HB 4575. HB 4297 deals with environmental
aspects of energy. The bill cleared the committee 21-3 with Representative
Julie Plawecki (D-Dearborn Heights) abstaining. HB 4298 addresses choice and
utility regulations, and passed 18-7 with Vice Chair Representative Gary Glenn
(R-Midland), Representative Andrea LaFontaine (R-Columbus), Representative
Holly Hughes (R-White River Township), Representative Tom Barrett
(R-Potterville), Representative Peter Lucido (R-Shelby Township),
Representative Derek Miller (D-Warren), and Representative Scott Dianda
(D-Calumet) voting no.
Chairmen Aric Nesbitt
(R-Lawton) wants to finish the bills before the year is over. He believes
utilities are going to make investments and believes the state needs to deal
with this increase proactively, not reactively. Mr. Nesbitt continually worked
with House Democrats, specifically House Minority Floor Leader Sam Singh
(D-East Lansing) and House Minority Leader Tim Greimel (D-Auburn Hills) to
garner bipartisan support.
Representative
Nesbitt included an amendment to HB 4297 to remove what the federal government
does not consider renewable energy. Representative LaVoy (D-Monroe) presented
an amendment that clarifies the definition of renewable energy and includes
biomass and geothermal. Representative Hughes attempted to pass an amendment
that would keep the choice market the same as it is currently, but this motion
failed. Ms. Hughes also created an amendment to ensure pet coke, hazardous
waste, coal waste, and scrap tires were not included in the definition of
renewable energy. Representative Glenn also attempted to amend the 10 percent choice
market, ensuring all schools, community colleges, and universities would not
count against the cap.
Amendments were
adopted to HB 4298 that require alternative energy consumers to remain with the
utility for 15 years if it doesn’t cause increased cost. For those with an
increased cost, it would be 20 years. Valerie Brader, Executive Director for
the Michigan Agency for Energy, told the committee these changes would not go
into effect unless there were extreme circumstances.
A Democratic amendment
included language describing the Integrated Resource Plan that gave utilities a
30 percent of energy production goal through renewable energy and reduction of
energy waste through energy efficiency goal by 2025. An additional amendment
provided a financial incentive for utilities to reach an annual energy waste
reduction between 1.5 and 3 percent.
Representative Ed
McBroom (R-Vulcan) sponsored an amendment to add a general taxpayer to the
Public Service Commission and increase said commission from three members to
five. It is unclear if this amendment will remain on the final version of the
bill.
Terri Reid, President
of the Michigan Freedom Fund, believes these bills were rushed and went through
a secretive process and Executive Director of Energy Choice Now Wayne Kuipers
commented the bills would kill electric choice. Environmental advocates don’t
believe the bills go far enough.
Representative
Nesbitt believes a majority of the House Republican caucus will be supportive
of these bills, and looks forward to completing these bills before the end of
the year.