Michigan House Bill HB5119

Michigan 2023-2024 Regular Session

• Introduced: 10/10/23
• Refer: 10/10/23

Caption

Energy: conservation and efficiency; credits for property assessed clean energy projects on residential property; grant to utility. Amends sec. 83 of 2008 PA 295 (MCL 460.1083). TIE BAR WITH: HB 5118'23

Impact

The amendment would allow providers to carry forward excess energy waste reduction credits, limited to one-third of the next year's standard. This provision seeks to encourage continued energy efficiency improvements and offers a financial mechanism for providers that exceed established savings targets. However, it specifies conditions under which these credits can be held over, ensuring that they are not simply stockpiled without a corresponding performance in energy savings.

Summary

House Bill 5119 aims to amend the 2008 PA 295, known as the Clean and Renewable Energy and Energy Waste Reduction Act, specifically focusing on the provisions surrounding energy waste reduction credits. This bill proposes that utility providers will receive one energy waste reduction credit for each megawatt hour of annual incremental energy savings achieved. In line with the bill, these credits can assist utility providers in meeting their energy waste reduction standards, potentially leading to more efficient energy usage across Michigan.

Contention

Notably, the bill is tied to House Bill 5118, indicating that the provisions of HB 5119 will only be enacted if the associated bill passes. This tie-in has sparked discussions among lawmakers about the feasibility and effectiveness of such regulatory changes. Critics may argue that linking the bills could complicate the legislative process, especially if there are contentious points within HB 5118 that could delay or hinder the efficacy of the energy savings initiative proposed in HB 5119.