Michigan House Bill HB4256

Michigan 2023-2024 Regular Session

• Introduced: 3/9/23
• Refer: 3/9/23

Caption

Public utilities: electric utilities; electricity storage system technology; modify. Amends secs. 1, 5 & 7 of 2008 PA 295 (MCL 460.1001 et seq.); adds secs. 101 & 103 to subpt. D of pt. 2; amends heading of subpt. D of pt. 2; designates secs. 111 & 113 as subpt. E of pt. 2 & adds heading for subpt. E of pt. 2.

Impact

The legislation proposes several strategies to achieve its clean energy goals, which include encouraging private investment in renewable technologies and aligning state efforts with federal regulations to improve air quality and other beneficial outcomes for energy consumers. Additionally, the bill mandates electric providers to construct, acquire, or contract for energy storage systems with a capacity summing up to 2,500 megawatts by a set deadline. At least half of this capacity must come from long-term contracts involving energy storage systems owned by non-affiliated entities, fostering competition and ensuring cost-effectiveness for customers.

Summary

House Bill 4256 seeks to amend the Clean and Renewable Energy and Energy Waste Reduction Act of 2008 in Michigan. The bill's primary aim is to enhance the promotion of clean and renewable energy resources and to facilitate the reduction of energy waste by setting specific goals for electricity provision. One of the key targets mentioned in the bill is that by the year 2025, at least 35% of the state's electric needs should be met through a blend of energy waste reduction and renewable energy efforts. This is intended to increase energy diversity and security, especially during extreme weather conditions, by leveraging indigenous energy resources available in Michigan.

Contention

While the bill's supporters argue that it will modernize the energy grid and enhance Michigan's energy independence, critics express concerns regarding the potential costs associated with these ambitious targets and the implications for existing energy infrastructure. Furthermore, there might be apprehensions about the feasibility of achieving the specified renewable energy milestones, especially in light of the current electricity supply challenges faced by providers. Overall, as House Bill 4256 moves forward, it embodies a significant shift towards cleaner energy solutions coupled with the necessity of balancing economic and environmental sustainability.