The
Senate’s Energy and Technology Committee reported to the full chamber a
comprehensive legislative package on energy. This is the first major energy
legislation reported this term in the Senate. The House Energy Policy Committee
reported an energy package six months ago, but no action has been taken since.
SB
437 and SB
438 keeps some provisions from the 2008 energy law, however
reworks aspects of the electrical generation legal framework. The bills
maintain at least a 10 percent goal of electrical generation through renewable
sources and to boost waste reduction. Instead of a renewal portfolio standard
percentage, the legislation calls for a 35 percent goal of generating
Michigan’s electrical needs through alternative generation and waste reduction
by 2025. Currently, the state has met around 20 percent of its needs this way.
The
package also creates requirements for utilities to produce integrated resource
plans (IRP) in concordance with their overall rate and plan proposals. IRPs
will include how effective utilities are at using alternative energy solutions.
The bills will also maintain current net metering rules that sell energy not
used to the utilities for the next 10 years.
Committee
Chair Senator Mike Nofs (R-Battle Creek) commented the bills can work within
federal and industry rules to end coal-burning plants. Senator Mike Shirkey
(R-Clarklake) was hesitant, specifically about SB 437, on the cost of the
package in relation to the effect on customers. Senator David Knezek
(D-Dearborn Heights) also wished to see further discussions.
Governor
Rick Snyder’s administration voiced support as Valerie Brader, head of the
Michigan Energy Agency, believes these bills put the state in a position to
provide more reliable sources of energy in the future. CEO of Consumers Energy
Patti Pope also voiced her support as these bills come at a critical time as
demand for alternative energy is high.
It
is unclear when and if this package will be taken up on the full Senate session
floor.