Enbridge Says Line 5 in Great Condition, but Would Consider Replacing, If Necessary

Following a meeting with the state’s pipeline task force, executives from the Canadian company announced that while the pipeline is regularly inspected, and remains in great condition, they are ensuring their ability to properly respond should the 62-year old pipeline fail. The company is very dedicated to help in the analysis for potential replacements, according to senior vice president for operations, Cynthia Hansen.

The state’s pipeline task force has said that due to the age of the pipeline, it is responsible to look into viable options for replacing the line. Many environmental groups have begun to press for the replacement of the pipeline, due to the damaging effects that a failure could have on the Great Lakes. Currently there are no plans from Enbridge to replace the line; however, they stated that their primary priority is ensuring the safety of the pipeline, and according to Bradley Shamla, vice president for U.S. operations, if replacement was necessary it would happen.

According to Ms. Hansen, pipelines are built with an average economic lifespan of 40 to 50 years; however, the pipelines built in the fashion of the Mackinac Straits pipeline regularly last beyond that lifespan. Both Mr. Shamla and Ms. Hansen stated that they believed all issues raised concerning the pipeline have been addressed and that the firm plans to make more information available to the general public soon.

posted by PAA Online , Friday, August 28, 2015 11:36 AM
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Brownfield Tax Credit Program Change Ok’d by Strategic Fund Board

The Brownfield Tax Credit Program, which was created under the Michigan Single Business Tax Act, will be seeing revisions according to a ruling from the Michigan Strategic Fund Board. The board approved new criteria for previously approved projects asking for scope changes during a meeting on Tuesday. The Brownfield Tax Credit Program is allowed to undergo these changes, according to state law, as long as the Strategic Fund approves them first.

While the current maximum liability for any Single Business Tax or Michigan Business Tax Brownfield credits is $270,980,380. The Michigan Economic Development Corporation (MEDC) suggested that this policy be updated due to a lack of funding for other MEDC programs.

Following the approval of the Strategic Fund four new criteria have been added: first, consideration for the impact on the community and state through job creation and private investment; second, the amended project’s meeting of current development guidance goals set by the community; third, firm lending commitments are planned and are ready to start construction with the goal of finishing the project in a more timely manner; fourth, shrinking liability through lessening eligible investment, lengthening the time allotted for finishing the project, or multi-phase projects will be considered in a good light.

While the proposed policy changes were accepted by the Strategic Fund Board, concern was raised over the fact that the liability cap was not lowered, which could lead to an increase in the amount of smaller projects receiving financing. The fund board was able to see real life examples while considering the changes to the Brownfield credits, as companies in East Lansing, Detroit, and Grand Rapids are currently completing projects that are directly affected by the tax credit.

posted by PAA Online , 11:36 AM
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New Solar Energy Facility in Ypsilanti

According to DTE Energy they are currently in the process of obtaining city approval to build a solar energy facility in Ypsilanti, with a goal of beginning construction by next summer. The proposed facility would rank as the third largest partially or fully owned by DTE, being made up of 2,800 solar panels. This massive installation would be the 24^th solar site in the Southeast Michigan region for DTE.

When finished the facility would be expected to produce another 800 kilowatts of electricity, roughly enough to power 150 homes, adding to the 10 megawatts currently produced in the area. According to DTE, the company will construct, operate, and maintain the new solar site for 20 years. The announcement comes shortly before Senate Bill 438, a bill that would change parts of the 2008 energy law that requires utility providers to generate 10 percent of their electricity from renewable energy sources, is expected to be discussed by the Senate Energy and Technology Committee again. Both DTE Energy and Consumers Energy are well on pace to meet their 10 percent requirement that is currently required by law.

The bill is a hotly debated item currently as groups like the Environmental Entrepreneurs and the Natural Resources Defense Council have celebrated the current policy as something that sets Michigan apart in the clean energy arena. Recently Michigan was recognized by the Environmental Entrepreneurs as a top 5 state for job announcements in 2015’s first quarter.

While currently DTE states that they can produce 1,000 megawatts of electricity, or enough power for 400,000 homes, when including solar power, wind power, and biomass, some believe it is difficult to gage how much of the clean energy emphasis would stay should the Legislature not continue setting concrete requirements.

posted by PAA Online , 11:35 AM
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Juvenile Prisoners Lose Case Against State, Continue to Press

The Court of Appeals decided the case, John Does 1-7 v. Department of Corrections. Wednesday, ruling against the juvenile inmates who claimed the state did not do its duty to protect them from sexual assault. The case, which could be incredibly costly for the state, has now been heard by both state and federal courts; however, a federal case is still pending and the plaintiffs in the case promised to appeal the decision handed down Wednesday.

While the state had previously been on the losing end of the case in both the Washtenaw Circuit Court and the Court of Appeals, the Supreme Court ordered the case back to the Court of Appeals, requiring them to consider the state’s appeal. During the case’s second time before the Court of Appeals, Judge Michael Riordan, Judge Pat Donofrio, and Judge Jane Beckering, ruled unanimously in favor of the state’s motion for summary judgment. The ruling came based on the plaintiffs’ failure to comply with a requirement to disclose the number of previous lawsuits that had been filed. This requirement, found in the Prison Litigation Reform Act, was ignored as the plaintiffs only counted the filings immediately surrounding the case.

The judges did not remain unanimous on all issues though, as a 2-1 split was reached on the issue of the juvenile prisoners suing the state under the Elliott-Larsen Act. While the act was amended to exclude prisoners, a U.S. District Court ruled that move to be unconstitutional; however, the state did not appeal the loss to the Supreme Court and continues to enforce the act in such a manner that excludes prisoners.

While the Department of Corrections celebrated the Court of Appeals’ ruling, the case is not over yet as the federal case is scheduled for a hearing on September 21 in the U.S. District Court.

posted by PAA Online , 11:35 AM
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PAAdvisory Briefs

Aging Services Available Through New Website

On Monday, the Department of Health and Human Services and the Aging and Adult Services Agency released a new website designed to better help senior citizens in the state. The new site, which has been called for by Governor Rick Snyder since 2014, will allow seniors to search for service centers in their county, as well as allow them to browse by the type of assistance needed.

Indiana Refinery Reopening Should Drop Gas Prices

After closing for over two weeks to repair three distillation units, the BP refinery in Whiting, Indiana has once again begun working at full capacity. When the refinery closed the use of three distillation units on August 8, they reduced their ability to refine gasoline to less than half their normal levels. The drastic drop in refined gasoline in the Midwest lead to steep price increases across the region drawing criticism from Michigan Attorney General, Bill Schuette and the Illinois attorney general. Mr. Schuette and Senator John Proos (R-St. Joseph) have stated they expect gas prices to decrease quickly throughout the state.

Supporters of Prevailing Wage Repeal File Complaint

Protecting Michigan Taxpayers, a group supportive of the initiative petition to repeal prevailing wage, has filed campaign finance violation complaints against Michigan Prevails, one of the organized attempts to stop the movement of the prevailing wage repeal. The complaints argue that the campaign statements have been misfiled, as they did not include any spending and were filed late. Protecting Michigan Taxpayers have also accused the Michigan Building and Construction Trades Council of conducting illegal campaign activities.

Florida Company being Sued by Schuette

On Thursday, Attorney General Bill Schuette announced that he had filed a suit against the Division of Corporate Services and their top executives: Joshua Strawn, Tate Howe, and Chad Davis. Mr. Schuette claims that the company illegally sent out mail, which appeared to be from the state government, requiring businesses to pay a $150 fee. The suit, attempts to stop the company from doing business in the state.

posted by PAA Online , 11:34 AM
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