| 1 | | - | Act No. 235 Public Acts of 2023 Approved by the Governor November 28, 2023 Filed with the Secretary of State November 29, 2023 EFFECTIVE DATE: February 27, 2024 state of michigan 102nd Legislature Regular session of 2023 Introduced by Senators Geiss, Singh, McMorrow, Cavanagh, Shink, Chang, Camilleri, Hertel, Moss, Bayer, Brinks, Anthony and Polehanki ENROLLED SENATE BILL No. 271 AN ACT to amend 2008 PA 295, entitled An act to require certain providers of electric service to establish and recover costs for renewable energy programs; to require certain providers of electric or natural gas service to establish energy waste reduction programs; to authorize the use of certain energy systems to meet the requirements of those programs; to provide for the approval of energy waste reduction service companies; to reduce energy waste by state agencies and the public; to create a wind energy resource zone board and provide for its power and duties; to authorize the creation and implementation of wind energy resource zones; to provide for expedited transmission line siting certificates; to provide for customer generation and net metering programs and the responsibilities of certain providers of electric service and customers with respect to customer generation and net metering; to provide for fees; to prescribe the powers and duties of certain state agencies and officials; to require the promulgation of rules and the issuance of orders; to authorize the establishment of residential energy improvement programs by providers of electric or natural gas service; and to provide for civil sanctions, remedies, and penalties, by amending the title, the heading of subpart A of part 2, and sections 1, 3, 5, 7, 9, 11, 13, 22, 28, 29, 39, 45, 47, 49, 173, 177, and 191 (MCL 460.1001, 460.1003, 460.1005, 460.1007, 460.1009, 460.1011, 460.1013, 460.1022, 460.1028, 460.1029, 460.1039, 460.1045, 460.1047, 460.1049, 460.1173, 460.1177, and 460.1191), the title and sections 1, 3, 5, 7, 9, 11, 13, 29, 39, 45, 47, 49, 173, and 177 as amended and sections 22 and 28 as added by 2016 PA 342, and by adding sections 32, 51, 53, 101, and 103. The People of the State of Michigan enact: TITLE An act to require certain providers of electric service to establish and recover costs for renewable energy and clean energy programs; to require certain providers of electric or natural gas service to establish, and recover costs for, energy waste reduction programs; to ensure that any energy cost savings from renewable energy, clean energy, and energy waste reduction programs are ultimately returned to customers; to authorize the use of certain energy systems to meet the requirements of those programs; to provide for the approval of energy waste reduction service companies; to reduce energy waste by state agencies and the public; to create a wind energy resource zone board and provide for its power and duties; to authorize the creation and implementation of wind energy resource zones; to provide for expedited transmission line siting certificates; to provide for customer generation and net metering programs and the responsibilities of certain providers of electric service and customers with respect to customer generation and net metering; to provide for fees; to prescribe the powers and duties of certain state agencies and officials; to require the promulgation of rules and the issuance of orders; to authorize the establishment of residential energy improvement programs by providers of electric or natural gas service; to authorize certification by this state before the construction of certain wind and solar energy facilities and energy storage facilities; to regulate certain local ordinances; and to provide for civil sanctions, remedies, and penalties. Sec. 1. (1) This act may be cited as the clean and renewable energy and energy waste reduction act. (2) The purpose of this act is to promote the development and use of clean and renewable energy resources and the reduction of energy waste through programs that will cost-effectively do all of the following: (a) Diversify the resources used to reliably meet the energy needs of consumers in this state. (b) Provide greater energy security through the use of indigenous energy resources available within this state. (c) Encourage private investment in renewable energy and energy waste reduction. (d) Coordinate with federal regulations to provide improved air quality and other benefits to energy consumers and citizens of this state. (e) Provide more reliable and resilient energy supplies during periods of extreme weather. (3) Pursuant to the reconciliation processes provided for in this act, the commission shall determine the costs and savings resulting from compliance with the renewable energy, clean energy, and energy waste reduction programs required under this act and include those costs and savings in the determination of the rates charged to customers of the electric and natural gas providers. This section does not prohibit the commission from authorizing shared savings or incentive programs as provided for in this act. Sec. 3. As used in this act: (a) Applicable regional transmission organization means a nonprofit, member-based organization governed by an independent board of directors that serves as the regional transmission organization approved by the Federal Energy Regulatory Commission with oversight responsibility for the region that includes the providers service territory. (b) Biomass means any organic matter that is not derived from fossil fuels, that can be converted to usable fuel for the production of energy, and that replenishes over a human, not a geological, time frame, including, but not limited to, all of the following: (i) Agricultural crops and crop wastes. (ii) Short-rotation energy crops. (iii) Herbaceous plants. (iv) Trees and wood, but only if derived from sustainably managed forests or procurement systems, as defined in section 261c of the management and budget act, 1984 PA 431, MCL 18.1261c. (v) Paper and pulp products. (vi) Precommercial wood thinning waste, brush, or yard waste. (vii) Wood wastes and residues from the processing of wood products or paper. (viii) Animal wastes. (ix) Wastewater sludge or sewage. (x) Aquatic plants. (xi) Food production and processing waste. (xii) Organic by-products from the production of biofuels. (c) Board means the wind energy resource zone board created under section 143. (d) Carbon capture and storage means a process that involves collecting carbon dioxide at its source and storing, or sequestering, it to prevent its release into the atmosphere. (e) Clean energy means electricity or steam generated using a clean energy system. (f) Clean energy plan means an electric providers plan to meet the clean energy standard approved under section 51. (g) Clean energy portfolio means the percentage of an electric providers total retail electric sales consisting of clean energy or renewable energy. (h) Clean energy standard means the clean energy portfolio required under section 51(1). (i) Clean energy system means an electricity generation facility or system or set of electricity generation systems that meets any of the following requirements: (i) Generates electricity or steam without emitting greenhouse gas, including nuclear generation. (ii) Is fueled by natural gas and uses carbon capture and storage that is at least 90% effective in capturing and permanently storing carbon dioxide. If the department of environment, Great Lakes, and energy determines, through a facility-specific major source permitting analysis consistent with applicable United States Environmental Protection Agency rules, that a capture rate higher than 90% meets the best available control technology standard, as applicable, that higher percentage shall be used instead of 90% for facilities permitted after the effective date of the amendatory act that added section 51. Using carbon dioxide for enhanced oil recovery is not considered to be permanent storage for the purposes of this subparagraph. (iii) Is an independently owned combined cycle power plant fueled by natural gas that has a power purchase agreement with an electric provider as of the effective date of the amendatory act that added this subparagraph and that by 2030 receives approval from the commission for a plan that achieves functional equivalence with the clean energy standard in section 51(1)(b) through reduction of greenhouse gas emissions using carbon capture and sequestration and other available applications, including, but not limited to, carbon removal technologies. In reviewing and approving a plan submitted under this subparagraph, the commission shall consider best available technology and applications as well as rate affordability, resource adequacy, and grid reliability. (iv) Is defined as a clean energy system in rules adopted by the commission consistent with the purposes of this subdivision. (j) Commission means the Michigan public service commission. (k) Customer meter means an electric meter of a providers retail customer. Customer meter does not include a municipal water pumping meter or additional meters at a single site that were installed specifically to support interruptible air conditioning, interruptible water heating, net metering, or time-of-day tariffs. (l) Distributed generation means the generation of electricity under the distributed generation program. (m) Distributed generation program means the program established by the commission under section 173. Sec. 5. As used in this act: (a) Efficient electrification measure means an electric appliance or equipment installed in an existing building to electrify, in whole or in part, space heating, water heating, cooling, drying, cooking, industrial processes, or another building or industrial end use that would otherwise be served by combustion of fossil fuel on the premises and that meets best-practice standards for cost-effective energy efficiency as determined by the commission. Efficient electrification measure includes, but is not limited to, any of the following: (i) A cold-climate air-source heat pump. (ii) An electric clothes dryer. (iii) A ground-source heat pump. (iv) High-efficiency electric cooking equipment. (v) A heat pump or high-efficiency electric water heater. (b) Efficient electrification measures plan means a plan to offer and promote efficient electrification measures. (c) Efficient electrification measures program means a program to implement an efficient electrification measures plan. (d) Electric provider means any of the following: (i) Any person or entity that is regulated by the commission for the purpose of selling electricity to retail customers in this state. (ii) A municipally owned electric utility in this state. (iii) A cooperative electric utility in this state. (iv) Except as used in subpart C of part 2, an alternative electric supplier licensed under section 10a of 1939 PA 3, MCL 460.10a. (e) Eligible electric generator means a methane digester or renewable energy system with a generation capacity limited to 110% of the customers electricity consumption for the previous 12 months. (f) Energy conservation means the reduction of customer energy use through the installation of measures or changes in energy usage behavior. (g) Energy efficiency means a decrease in customer consumption of electricity or natural gas achieved through measures or programs that target customer behavior, equipment, devices, or materials without reducing the quality of energy services. (h) Energy star means the voluntary partnership among the United States Department of Energy, the United States Environmental Protection Agency, product manufacturers, local utilities, and retailers to help promote energy efficient products by labeling with the energy star logo, educate consumers about the benefits of energy efficiency, and help promote energy efficiency in buildings by benchmarking and rating energy performance. (i) Energy storage system means any technology that is capable of absorbing energy, storing the energy for a period of time, and redelivering the energy. Energy storage system does not include either of the following: (i) Fossil fuel storage. (ii) Power-to-gas storage that directly uses fossil fuel inputs. (j) Energy waste reduction, subject to subdivision (k), means all of the following: (i) Energy efficiency. (ii) Load management, to the extent that the load management reduces provider costs. (iii) Energy conservation, but only to the extent that the decreases in the consumption of electricity produced by energy conservation are objectively measurable and attributable to an energy waste reduction plan. (k) Energy waste reduction does not include electric provider infrastructure projects that are approved for cost recovery by the commission other than as provided in this act. (l) Energy waste reduction credit means a credit certified pursuant to section 87 that represents achieved energy waste reduction. (m) Energy waste reduction plan means a plan under section 71. (n) Energy waste reduction standard means the minimum energy savings required to be achieved under section 77. (o) Federal approval means approval by the applicable regional transmission organization or other Federal Energy Regulatory Commission-approved transmission planning process of a transmission project that includes the transmission line. Federal approval may be evidenced in any of the following manners: (i) The proposed transmission line is part of a transmission project included in the applicable regional transmission organizations board-approved transmission expansion plan. (ii) The applicable regional transmission organization has informed the electric utility, affiliated transmission company, or independent transmission company that a transmission project submitted for an out-of-cycle project review has been approved by the applicable regional transmission organization, and the approved transmission project includes the proposed transmission line. (iii) If, after October 6, 2008, the applicable regional transmission organization utilizes another approval process for transmission projects proposed by an electric utility, affiliated transmission company, or independent transmission company, the proposed transmission line is included in a transmission project approved by the applicable regional transmission organization through the approval process developed after October 6, 2008. (iv) Any other Federal Energy Regulatory Commission-approved transmission planning process for a transmission project. Sec. 7. As used in this act: (a) Greenhouse gas means carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, or sulfur hexafluoride. (b) Grid reliability means the ability, as defined by the regional transmission organization, of the bulk power system to withstand sudden, unexpected disturbances, such as short circuits or unanticipated loss of system elements because of natural causes. (c) Incremental costs of compliance means the net revenue required by an electric provider to comply with the renewable energy standard, calculated as provided under section 47. (d) Independent transmission company means that term as defined in section 2 of the electric transmission line certification act, 1995 PA 30, MCL 460.562. (e) LEED means the leadership in energy and environmental design green building rating system developed by the United States Green Building Council. (f) Load management means measures or programs that target equipment or behavior to result in decreased peak electricity demand such as by shifting demand from a peak to an off-peak period. (g) Long-duration energy storage system means an energy storage system capable of continuously discharging electricity at its full rated capacity for more than 10 hours. (h) Low-income residential customer means a customer that meets any of the following requirements: (i) The customers household income does not exceed 250% of the federal poverty line, as published by the United States Department of Health and Human Services under its authority to revise the poverty line under 42 USC 9902. (ii) The customers household income does not exceed 80% of the adjusted median income as determined by the United States Department of Housing and Urban Development. (iii) The customer is enrolled in a federal, state, or local program with similar income eligibility requirements, including, but not limited to, an emergency relief or food assistance program or Medicaid. (i) Megawatt, megawatt hour, or megawatt hour of electricity, unless the context implies otherwise, includes the steam equivalent of a megawatt or megawatt hour of electricity. (j) Modified net metering means a utility billing method that applies the power supply component of the full retail rate to the net of the bidirectional flow of kilowatt hours across the customer interconnection with the utility distribution system, during a billing period or time-of-use pricing period. A negative net metered quantity during the billing period or during each time-of-use pricing period within the billing period reflects net excess generation for which the customer is entitled to receive credit under section 177(2). Under modified net metering, standby charges for distributed generation customers on an energy rate schedule shall be equal to the retail distribution charge applied to the imputed customer usage during the billing period. The imputed customer usage is calculated as the sum of the metered on-site generation and the net of the bidirectional flow of power across the customer interconnection during the billing period. The commission shall establish standby charges under modified net metering for distributed generation customers on demand-based rate schedules that provide an equivalent contribution to utility system costs. A charge for net metering and distributed generation customers established pursuant to section 6a of 1939 PA 3, MCL 460.6a, shall not be recovered more than once. (k) Multiday energy storage system means an energy storage system capable of continuously discharging electricity at its full rated capacity for more than 24 hours. Sec. 9. As used in this act: (a) Natural gas provider means an investor-owned business engaged in the sale and distribution at retail of natural gas within this state whose rates are regulated by the commission. (b) Pet coke means a solid carbonaceous residue produced from a coker after cracking and distillation from petroleum refining operations. (c) Provider means an electric provider or a natural gas provider. (d) PURPA means the public utility regulatory policies act of 1978, Public Law 95-617. Sec. 11. As used in this act: (a) Renewable energy means electricity or steam generated using a renewable energy system. (b) Renewable energy contract means a contract to acquire renewable energy and the associated renewable energy credits from 1 or more renewable energy systems. (c) Renewable energy credit means a credit granted under a certification and tracking program established under section 41, which represents generated renewable energy. (d) Renewable energy credit portfolio means the sum of the renewable energy credits achieved by a provider for a particular year. (e) Renewable energy credit standard means a minimum renewable energy credit portfolio required under section 28 or former section 27. (f) Renewable energy plan or plan means a plan approved under section 22 or former section 21 or 23 or found to comply with this act under former section 25, with any amendments adopted under this act. (g) Renewable energy resource means a resource that naturally replenishes over a human, not a geological, time frame and that is ultimately derived from solar power, water power, or wind power. Renewable energy resource does not include petroleum, nuclear, natural gas, industrial waste, post-use polymers, tires, tire-derived fuel, plastic, or coal. A renewable energy resource comes from the sun or from thermal inertia of the earth and minimizes the output of toxic material in the conversion of the energy and includes, but is not limited to, all of the following: (i) Biomass, as described in any of the following: (A) Landfill gas as described in subparagraph (vii). (B) Gas from a methane digester using only feedstock as described in subparagraph (viii). (C) Biomass used by renewable energy systems that are in commercial operation on the effective date of the amendatory act that added section 51. (D) Trees and wood used in renewable energy systems that are placed in commercial operation after the effective date of the amendatory act that added section 51, if the trees and wood are derived from sustainably managed forests or procurement systems, as defined in section 261c of the management and budget act, 1984 PA 431, MCL 18.1261c. (ii) Solar and solar thermal energy. (iii) Wind energy. (iv) Kinetic energy of moving water, including all of the following: (A) Waves, tides, or currents. (B) Water released through a dam. (v) Geothermal energy. (vi) Thermal energy produced from a geothermal heat pump. (vii) Landfill gas produced from solid waste facilities. (viii) Any of the following if used as feedstock in a methane digester: (A) Municipal wastewater treatment sludge, wastewater, and sewage. (B) Food waste and food production and processing waste. (C) Animal manure. (D) Organics separated from municipal solid waste. (h) Renewable energy standard means the minimum renewable energy capacity portfolio, if applicable, and the renewable energy credit portfolio required to be achieved under section 28 or former section 27. (i) Renewable energy system means a facility, electricity generation system, or set of electricity generation systems that use 1 or more renewable energy resources to generate electricity or steam. Renewable energy system includes the following: (i) A landfill gas recovery and electricity generation facility located in a landfill whose operator employs best practices for methane gas collection and control and emissions monitoring, as determined by the department of environment, Great Lakes, and energy. (ii) A methane digester, if it processes only 1 or more of the following: (A) Municipal wastewater treatment sludge, wastewater, or sewage. (B) Food waste or food production and processing waste. (C) Animal manure. (D) Organics separated from municipal solid waste. (iii) A facility or generation system or set of systems that is placed in commercial operation after the effective date of the amendatory act that added section 51, but only if the facility or generation system or set of systems uses as feedstock trees and wood derived from sustainably managed forests or procurement systems, as defined in section 261c of the management and budget act, 1984 PA 431, MCL 18.1261c. (j) Renewable energy system does not include any of the following: (i) A hydroelectric pumped storage facility. (ii) A hydroelectric facility that uses a dam constructed after October 6, 2008 unless the dam is a repair or replacement of a dam in existence on October 6, 2008 or an upgrade of a dam in existence on October 6, 2008 that increases its energy efficiency. (iii) An incinerator. This subparagraph does not apply before 2040 to an incinerator that was generating power before January 1, 2023, unless the incinerator is expanded. (iv) A gasification facility. (v) A facility that cofires biomass with tires or tire-derived fuel. (k) Resource adequacy describes having sufficient resources to provide customers with a continuous supply of electricity at the proper voltage and frequency, virtually always and across a range of reasonably foreseeable conditions. (l) Revenue recovery mechanism means the mechanism for recovery of incremental costs of compliance provided for under section 22. Sec. 13. As used in this act: (a) Site means, except as used in part 8, a contiguous site, regardless of the number of meters at that site. A site that would be contiguous but for the presence of a street, road, or highway is considered to be contiguous for the purposes of this subdivision. (b) Transmission line means all structures, equipment, and real property necessary to transfer electricity at system bulk supply voltage of 100 kilovolts or more. (c) Utility system resource cost test means a standard that is met for an investment in energy waste reduction if, on a life cycle basis, using a real societal discount rate based on actual long-term United States treasury bond yields, the total avoided supply-side costs to the provider, including representative values for electricity or natural gas supply, transmission, distribution, and other associated costs, are greater than the total costs to the provider of administering and delivering the energy waste reduction program, including net costs for any provider incentives paid by customers and capitalized costs recovered under section 89. (d) Wind energy conversion system means a system that uses 1 or more wind turbines to generate electricity and has a nameplate capacity of 100 kilowatts or more. (e) Wind energy resource zone or wind zone means an area designated by the commission under section 147. PART 2 ENERGY STANDARDS SUBPART A RENEWABLE AND CLEAN ENERGY Sec. 22. (1) Renewable energy plans and associated revenue recovery mechanisms filed by an electric provider, approved under former section 21 or 23 or found to comply with this act under former section 25 and in effect on the effective date of the amendatory act that added section 51, remain in effect, subject to amendments under subsection (3) or (4). (2) For an electric provider whose rates are regulated by the commission, amended renewable energy plans shall establish a mechanism for the recovery of the incremental costs of compliance within the electric providers customer rates. The revenue recovery mechanism is subject to adjustment in amended renewable energy plans under subsection (3) or (4) or as provided in section 49. (3) Within 1 year after the effective date of the amendatory act that added section 51, and within 2 years after the commission issues an order approving the electric providers last amended renewable energy plan, an electric provider shall file an amended renewable energy plan that includes a forecast of the renewable energy resources needed to comply with the renewable energy credit standard pursuant to a filing schedule established by the commission. For an electric provider whose rates are regulated by the commission, the commission shall conduct a contested case hearing on the amended renewable energy plan pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. After the hearing, the commission shall approve, with any changes consented to by the electric provider, or reject the amended renewable energy plan. For all other electric providers, the commission shall provide an opportunity for public comment on the amended renewable energy plan. After the applicable opportunity for public comment, the commission shall determine whether any amendment to the renewable energy plan proposed by the provider complies with this act. For alternative electric suppliers, the commission shall approve, with any changes consented to by the electric provider, or reject any proposed amendments to the renewable energy plan. For each amended renewable energy plan filed by an electric provider, the commission shall issue a final order within 300 days after the date the amended renewable energy plan was filed with the commission. For cooperative electric utilities and municipally owned utilities, the proposed amendment is adopted if the commission determines that it complies with this act. (4) If an electric provider proposes to amend its renewable energy plan at a time other than a scheduled review process under subsection (3), the electric provider shall file the proposed amendment with the commission. For an electric provider whose rates are regulated by the commission, if the proposed amendment would modify the revenue recovery mechanism, the commission shall conduct a contested case hearing on the amendment pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. After the hearing and within 180 days after the amendment is filed, the commission shall approve, with any changes consented to by the electric provider, or reject the proposed amendment or amendments to the renewable energy plan. For all other electric providers, the commission shall provide an opportunity for public comment on the amendment. After the applicable opportunity for public comment and within 180 days after the amendment is filed, the commission shall determine whether the proposed amendment to the renewable energy plan complies with this act. For alternative electric suppliers, the commission shall approve, with any changes consented to by the electric provider, or reject any proposed amendments to the renewable energy plan. For cooperative electric utilities and municipally owned utilities, the proposed amendment is adopted if the commission determines that it complies with this act. (5) For an electric provider whose rates are regulated by the commission, the commission shall approve amendments to the renewable energy plan if the commission determines both of the following: (a) That the amended renewable energy plan is reasonable and prudent. In making this determination, the commission shall take into consideration projected costs and whether or not projected costs in prior amended renewable energy plans were exceeded. (b) That the amended renewable energy plan is consistent with the purpose set forth in section 1(2) and meets the renewable energy credit standard. (6) For an electric provider whose rates are regulated by the commission, the commission shall review the projected costs of the renewable energy plan and approve, in whole or in part, the projected costs if the commission finds those projected costs, in whole or in part, to be reasonable and prudent. In making this determination, the commission shall consider whether projected costs in prior renewable energy plans were exceeded. (7) If the commission rejects a proposed renewable energy plan, an amendment, or projected costs under this section, the commission shall explain in writing the reasons for its determination. Sec. 28. (1) An electric provider shall achieve a renewable energy credit portfolio of at least the following: (a) Through 2029, 15%. (b) In 2030 through 2034, 50%. (c) In 2035 and each year thereafter, 60%. (2) An electric providers renewable energy credit portfolio shall be calculated as follows: (a) Determine the number of renewable energy credits used to comply with this subpart during the applicable year. (b) Divide by 1 of the following at the option of the electric provider as specified in its renewable energy plan: (i) The number of weather normalized megawatt hours of electricity sold by the electric provider during the previous year to retail customers in this state, less the amount of sales attributable to customers participating in an electric providers voluntary green pricing program under section 61 and the outflow from customers participating in the distributed generation program under section 173 for that year. (ii) The average number of megawatt hours of electricity sold by the electric provider annually during the previous 3 years to retail customers in this state, less the amount of sales attributable to customers participating in an electric providers voluntary green pricing program under section 61 and the outflow from customers participating in the distributed generation program under section 173 for that year. (c) Multiply the quotient under subdivision (b) by 100. (3) Notwithstanding subsection (1) and subject to subsection (4), in any year a cooperative electric provider or a multistate electric provider may calculate its maximum renewable energy credit portfolio requirement as follows: (a) Determine the number of megawatt hours of electricity sold by the electric provider to retail customers in this state using the option the electric provider selected under subsection (2)(b). (b) Subtract the number of megawatt hours of nuclear energy that the electric provider obtained from a system located in this state that the electric provider owned or from which the electric provider had contracted to receive nuclear energy on or before January 1, 2024. (4) An electric provider described in subsection (3) is required to achieve a renewable energy credit portfolio equal only to the electric providers maximum renewable energy credit portfolio requirement if the electric providers maximum renewable energy credit portfolio requirement is less than the number of renewable energy credits required to comply with the applicable standard in subsection (1). If the electric provider is a multistate electric provider, and the electric providers maximum renewable energy credit portfolio requirement is less than the number of renewable energy credits required to comply with the applicable standard in subsection (1), then the electric provider is required to achieve a renewable energy credit portfolio equal only to the electric providers maximum renewable energy credit portfolio requirement if all of the following requirements are met: (a) The electric providers electricity generation systems located within this state produce energy exceeding the electric providers electricity sales in this state. (b) All of the electric providers electricity generation systems located within this state are clean energy systems. (c) All of the renewable energy credits generated in this state are used by the electric provider toward compliance with the renewable energy credit portfolio as calculated under subsection (2). (d) Renewable energy and clean energy generated in this state equal to or exceeding the providers electricity sales in this state are not used by the provider or any other provider to comply with any similar standards. (5) Each electric provider shall meet the renewable energy credit standard, subject to subsection (3), with renewable energy credits obtained by any of the following means: (a) Generating electricity from renewable energy systems for sale to retail customers. (b) Purchasing or otherwise acquiring renewable energy and capacity. (c) Purchasing or otherwise acquiring renewable energy credits without the associated renewable energy or capacity. Renewable energy credits acquired under this subdivision shall be produced within the territory of the regional transmission organization of which the electric provider is a member, and, except for a municipally owned electric utility, shall not exceed 5% of an electric providers renewable energy credits annually used to comply with the renewable energy standard. Renewable energy credits acquired under this subdivision are not subject to the requirements of section 29 and shall not be used to comply with the renewable energy standard after 2035. (6) For an electric provider whose rates are regulated by the commission, the electric provider shall submit a contract entered into for the purposes of subsection (5) to the commission for review and approval. If the commission approves the contract, it is considered consistent with the electric providers renewable energy plan. The commission shall not approve a contract based on an unsolicited proposal unless the commission determines that the unsolicited proposal provides opportunities that may not otherwise be available or commercially practical through a competitive bid process. (7) An electric provider that has achieved annual incremental energy savings of greater than 2% under an energy waste reduction plan approved under section 73 may substitute energy waste reduction credits for renewable energy credits otherwise required to meet the renewable energy credit standard if the substitution is approved by the commission. Under this subsection, energy waste reduction credits shall not be used by a provider to meet more than 10% of the renewable energy credit standard. One renewable energy credit shall be awarded per 1 energy waste reduction credit. (8) If an electric provider whose rates are regulated by the commission enters into a purchase power agreement for renewable energy resources or a third-party contract for an energy storage system or clean energy system with an entity that is not an affiliate, the commission shall authorize an annual financial incentive for the electric provider. The financial incentive shall be calculated as the product of contract payments in that year multiplied by the electric providers pre-tax weighted average cost of permanent capital comprised of long-term debt obligations and equity of the electric providers total capital structure as determined by the commissions final order in the electric providers most recent general rate case. The pre-tax weighted average cost of permanent capital used to calculate the financial incentive shall not be fixed throughout the entire term of the contract at the pre-tax weighted average cost of capital applicable in the first year but shall be updated based on the commissions final order in each succeeding general rate case for the electric provider. The financial incentive shall apply to each contract described in this subsection from the date the contract is executed for the entire term of the contract. This subsection applies to any contract entered into after June 30, 2024. (9) As used in this section, cooperative electric provider means an entity that is a member of or that purchases energy from an entity that is either of the following: (a) Organized as a cooperative corporation under sections 98 to 109 of 1931 PA 327, MCL 450.98 to 450.109. (b) A cooperative corporation in the business of generating or transmitting electricity. Sec. 29. (1) Subject to subsections (2) to (4), a renewable energy system that is the source of renewable energy credits used to satisfy the renewable energy standards shall be located as described in either of the following: (a) Anywhere in this state. (b) Outside of this state, but only if the electric provider includes the capacity from the renewable energy system toward meeting its resource adequacy obligations to the applicable regional transmission organization. (2) Subsection (1) does not require an electric provider to procure firm transmission rights to ensure deliverability to the resource adequacy zone where the load is served. (3) Subsection (1) does not apply if electricity generated from the renewable energy system is sold by a not-for-profit entity located in Indiana, Ohio, or Wisconsin to a municipally owned electric utility in this state or cooperative electric utility in this state, and the electricity is not being used to meet another states standard for renewable energy. (4) Renewable energy credits produced in the continental United States and owned by a customer of an electric provider may be utilized by the electric provider to meet the renewable energy credit standard if the electric customer chooses to report renewable energy credits to its electric provider as attributable to the customers electric load. Any renewable energy credits reported by an electric customer for use by its electric provider shall be applied to the electric customers proportional share of a renewable energy credit portfolio requirement for the year in which renewable energy credits are used to comply with the renewable energy credit standard. On an annual basis, not later than December 1, the electric customer shall provide the electric provider with an update on its 5-year forecast and notify the electric provider of the expected amount of renewable energy credits to be used toward compliance in the coming year. If the projected amount of renewable energy credits available for compliance will be less than what the electric customer projected in its 5-year forecast, then the electric customer shall notify the electric provider at least 5 years before the compliance year in which a projected reduction in renewable energy credits will occur. If the electric providers rates are regulated by the commission and the electric provider uses the reported renewable energy credits to comply with the renewable energy credit portfolio standard, the electric provider shall grant the customer an appropriate cost-based rate credit against the cost of compliance under section 47. As used in this subsection, customer of an electric provider or customer means any of the following: (a) A customer taking service under a rate approved by the commission under section 10gg of 1939 PA 3, MCL 460.10gg. (b) A customer whose manufacturing complex is described in section 10a(4)(c) of 1939 PA 3, MCL 460.10a, and that takes service for a portion of its load from an alternative electric supplier licensed under section 10a of 1939 PA 3, MCL 460.10a, on the effective date of the amendatory act that added section 51. (c) A customer of a municipally owned electric utility on the effective date of the amendatory act that added this subsection if the customer represents at least 25% of the municipally owned electric utilitys peak load. (5) Renewable energy credits that qualify under subsection (1) and are owned by members of a public body corporate established under the urban cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512, on or before December 1, 2022, if those members are part of Michigans educational community and take service from an alternative electric supplier licensed under section 10a of 1939 PA 3, MCL 460.10a, may be utilized by the members electric provider to meet the renewable energy credit standards if the members choose to report renewable energy credits to the electric provider as attributable to the electric load of members of the cooperative. Any renewable energy credits reported by a member of the cooperative for use by a provider to the members of the cooperative shall be applied to the members proportional share of a renewable energy credit portfolio requirement for the year in which renewable energy credits are used to comply with the renewable energy credit standard. Sec. 32. (1) Upon petition by an electric provider, the commission may, upon a showing of good cause, grant an extension of a renewable energy credit portfolio deadline under section 28. Each extension shall not exceed 2 years. An extension of a deadline does not affect a subsequent deadline. (2) In a petition under subsection (1), an electric provider must include a plan for resolving the barrier to compliance and must make a showing of good cause by demonstrating any of the following: (a) Despite all commercially reasonable efforts by the electric provider to comply with the deadline, compliance is not practically feasible for reasons that may include, but are not limited to, zoning, siting, permitting, supply chains, transmission interconnection, labor shortages, delays in project deliverability from developers, or unanticipated load growth. Issuing a request for proposals to purchase renewable energy and not receiving a commercially viable offer creates a rebuttable presumption that compliance with the deadline is not practically feasible. (b) Compliance would be excessively costly to customers despite commercially reasonable efforts by the electric provider to contain costs. (c) Compliance would result in a deficiency in meeting resource adequacy requirements in the electric providers service territory. (d) Compliance would result in a local grid reliability issue. (3) Upon granting an additional extension for a particular renewable energy credit portfolio deadline beyond the first 2 extensions, the commission shall notify the speaker of the house, the majority leader of the senate, and the chairpersons of the committees of the legislature having jurisdiction over energy issues that it has granted an additional extension to the electric provider and the reasons for the extension. Sec. 39. (1) Except as otherwise provided in section 35(1), 1 renewable energy credit shall be granted to the owner of a renewable energy system for each megawatt hour of electricity generated from the renewable energy system, subject to all of the following: (a) If a renewable energy system uses both a renewable energy resource and a nonrenewable energy resource to generate electricity or steam, the number of renewable energy credits granted shall be based on the percentage of the electricity or steam, or both, generated from the renewable energy resource. (b) A renewable energy credit shall not be granted for renewable energy the renewable attributes of which are used by an electric provider in a commission-approved voluntary renewable energy program. (c) For a renewable energy system described in section 11(j)(iii), for each megawatt hour of electricity generated from the renewable energy system before 2040, 0.5 renewable energy credits shall be granted. No renewable energy credits shall be granted for electricity generated in 2040 or thereafter. A renewable energy system described in section 11(j)(iii) shall, by January 1, 2035, file a decommissioning plan with the county in which the facility is located detailing its plans to retire and decommission the facility not later than January 1, 2040. (2) The following additional renewable energy credits, to be known as Michigan incentive renewable energy credits, shall be granted under the following circumstances: (a) 2 renewable energy credits for each megawatt hour of electricity from solar power generated by a renewable energy system that was approved in a renewable energy plan before April 20, 2017. (b) 1/5 renewable energy credit for each megawatt hour of electricity generated from a renewable energy system, other than wind, at peak demand time as determined by the commission. (c) 1/5 renewable energy credit for each megawatt hour of electricity generated from a renewable energy system during off-peak hours, stored using an energy storage system or a hydroelectric pumped storage facility, and used during peak hours. However, the number of renewable energy credits shall be calculated based on the number of megawatt hours of renewable energy used to charge the energy storage system or fill the pumped storage facility, not the number of megawatt hours actually discharged or generated by discharge from the energy storage system or pumped storage facility. (d) 1/10 renewable energy credit for each megawatt hour of electricity generated from a renewable energy system constructed using equipment made in this state as determined by the commission. The additional credit under this subdivision is available for the first 3 years after the renewable energy system first produces electricity on a commercial basis. (e) 1/10 renewable energy credit for each megawatt hour of electricity from a renewable energy system constructed using a workforce composed of residents of this state as determined by the commission. The additional credit under this subdivision is available for the first 3 years after the renewable energy system first produces electricity on a commercial basis. (3) A renewable energy credit expires at the earliest of the following times: (a) When used by an electric provider to comply with its renewable energy standard. (b) When substituted for an energy waste reduction credit under section 77. (c) Five years after the end of the month in which the renewable energy credit was generated. Sec. 45. (1) For an electric provider whose rates are regulated by the commission, the commission shall determine a revenue recovery mechanism, subject to section 47, for the electric providers tariffs that permit recovery of the incremental cost of compliance to implement the amended renewable energy plan. (2) An electric providers incremental cost of compliance shall be recovered through a revenue recovery mechanism that is designed consistent with the production allocation approved in the providers most recent general rate case under section 6a of 1939 PA 3, MCL 460.6a. An electric provider may propose a revenue recovery mechanism in an amended renewable energy plan to include all or a portion of the electric providers incremental cost of compliance in base rates. If an electric provider proposes to include all or a portion of the incremental cost of compliance in base rates, the commission shall review and approve, approve with modifications, or deny the revenue recovery mechanism proposed by the electric provider. (3) The incremental cost of compliance shall be calculated for a 20-year period beginning with approval of the amended renewable energy plan and may be recovered on a levelized basis. Sec. 47. (1) The commission shall consider all actual costs reasonably and prudently incurred in good faith to implement an amended renewable energy plan by an electric provider whose rates are regulated by the commission to be a cost of service to be recovered by the electric provider. An electric provider whose rates are regulated by the commission shall recover through its retail electric rates all of the electric providers incremental costs of compliance beginning when the electric providers amended renewable energy plan is approved by the commission. The recovery shall include, but is not limited to, the electric providers authorized rate of return on equity for costs approved under this section. The authorized rate of return on equity for costs of any renewable energy system approved through the electric providers amended renewable energy plan to comply with the renewable energy standard in effect before the effective date of the amendatory act that added section 51 shall remain fixed at the rate of return and debt-to-equity ratio that was in effect when the electric providers amended renewable energy plan that first included the renewable energy system was approved by the commission. (2) Incremental costs of compliance shall be calculated as follows: (a) Determine the sum of the following costs to the extent those costs are reasonable and prudent and not already approved for recovery in electric rates as of October 6, 2008: (i) Capital, operating, and maintenance costs of renewable energy systems, including property taxes, insurance, and return on equity associated with an electric providers renewable energy systems, including the electric providers renewable energy portfolio established to achieve compliance with the renewable energy standards and any additional renewable energy systems that are built or acquired by the electric provider to maintain compliance with the renewable energy standards. (ii) Financing costs attributable to capital, operating, and maintenance costs of capital facilities associated with renewable energy systems used to meet the renewable energy standard. (iii) Costs that are not otherwise recoverable in rates approved by the Federal Energy Regulatory Commission and that are related to the infrastructure required to bring renewable energy systems used to achieve compliance with the renewable energy standards on to the transmission system, including interconnection and substation costs for renewable energy systems used to meet the renewable energy standard. (iv) Ancillary service costs determined by the commission to be necessarily incurred to ensure the quality and reliability of renewable energy used to meet the renewable energy standards, regardless of the ownership of a renewable energy system. (v) Except to the extent the costs are allocated under a different subparagraph, all of the following: (A) The costs of renewable energy credits purchased under this act. (B) The costs of contracts described in former section 33(1). (C) The financial compensation mechanism for all renewable energy contracts established under section 28(8). (vi) Expenses incurred as a result of state or federal governmental actions related to renewable energy systems attributable to the renewable energy standards, including changes in tax or other law. (vii) Any additional electric provider costs determined by the commission to be necessarily incurred to ensure the quality and reliability of renewable energy used to meet the renewable energy standards. (b) Subtract from the sum of costs not already included in electric rates determined under subdivision (a) the sum of the following revenues: (i) Revenue derived from the sale of environmental attributes associated with the generation of renewable energy attributable to the renewable energy standards. Such revenue shall not be considered in determining power supply cost recovery factors under section 6j of 1939 PA 3, MCL 460.6j. (ii) Interest on regulatory liabilities. (iii) Tax credits specifically designed to promote renewable energy. (iv) Revenue derived from the provision of renewable energy to retail electric customers subject to a power supply cost recovery clause under section 6j of 1939 PA 3, MCL 460.6j, of an electric provider whose rates are regulated by the commission. After providing an opportunity for a contested case hearing for an electric provider whose rates are regulated by the commission, the commission shall annually establish a price per megawatt hour. An electric provider whose rates are regulated by the commission may at any time petition the commission to revise the price. In setting the price per megawatt hour under this subparagraph, the commission shall consider factors, including, but not limited to, projected capacity, energy, maintenance, and operating costs; information filed under section 6j of 1939 PA 3, MCL 460.6j; and information from wholesale markets, including, but not limited to, locational marginal pricing. This price shall be multiplied by the sum of the number of megawatt hours of renewable energy used to maintain compliance with the renewable energy standard. The product shall be considered a booked cost of purchased and net interchanged power transactions under section 6j of 1939 PA 3, MCL 460.6j. For energy purchased by such an electric provider under a renewable energy contract, the price shall be the lower of the amount established by the commission or the actual price paid and shall be multiplied by the number of megawatt hours of renewable energy purchased. The resulting value shall be considered a booked cost of purchased and net interchanged power under section 6j of 1939 PA 3, MCL 460.6j. (v) Revenue from wholesale renewable energy sales. Such revenue shall not be considered in determining power supply cost recovery factors under section 6j of 1939 PA 3, MCL 460.6j. (vi) Any additional electric provider revenue considered by the commission to be attributable to the renewable energy standards. (vii) Any revenues recovered in rates for renewable energy costs that are included under subdivision (a). (3) The commission shall authorize an electric provider whose rates are regulated by the commission to spend in any given month more to comply with this act and implement an amended renewable energy plan than the revenue actually generated by the revenue recovery mechanism. An electric provider whose rates are regulated by the commission shall recover its commission approved pre-tax rate of return on regulatory assets during the appropriate period. An electric provider whose rates are regulated by the commission shall record interest on regulatory liabilities at the average short-term borrowing rate available to the electric provider during the appropriate period. Any regulatory assets or liabilities resulting from the recovery of costs of renewable energy attributable to renewable energy standards through the power supply cost recovery clause under section 6j of 1939 PA 3, MCL 460.6j, shall continue to be reconciled under that section. (4) The incremental costs of compliance as that term is used in section 61 shall be calculated as provided in this section. Sec. 49. (1) This section applies only to an electric provider whose rates are regulated by the commission and that has recorded a regulatory asset or regulatory liability under this subpart for the last 12 months. The commission shall commence an annual proceeding, to be known as a renewable cost reconciliation, for each electric provider whose rates are regulated by the commission. The renewable cost reconciliation proceeding shall be conducted as a contested case pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. Reasonable discovery shall be permitted before and during the reconciliation proceeding to assist in obtaining evidence concerning reconciliation issues, including, but not limited to, the reasonableness and prudence of expenditures and the amounts collected pursuant to the revenue recovery mechanism. (2) At the renewable cost reconciliation, an electric provider may propose any necessary modifications of the revenue recovery mechanism to ensure the electric providers recovery of its incremental cost of compliance with the renewable energy standards. (3) The commission shall reconcile the pertinent revenues recorded and the allowance for the revenue recovery mechanism with the amounts actually expensed and projected according to the electric providers amended renewable energy plan. The commission shall consider any issue regarding the reasonableness and prudence of expenses for which customers were charged in the relevant reconciliation period. In its order, the commission shall do all of the following: (a) Make a determination of an electric providers compliance with the renewable energy standards. (b) Adjust the revenue recovery mechanism for the incremental costs of compliance. Any regulatory asset or regulatory liability accrued during the reconciliation period shall be used to adjust the revenue recovery mechanism and reflected in the incremental cost of compliance for the following calendar year. (c) Establish the price per megawatt hour for renewable energy capacity and for renewable energy to be recovered through the power supply cost recovery clause under section 6j of 1939 PA 3, MCL 460.6j, as outlined in section 47(2)(b)(iv). (4) In its order in a renewable energy cost reconciliation, the commission shall require an electric provider to adjust the revenue recovery mechanism by any difference between the net amount determined to have been recovered and the net amount needed to recover the electric providers incremental cost of compliance. (5) The commission shall determine the appropriate charges for an electric providers tariffs that permit recovery of the cost of compliance and issue a final order in a renewable energy reconciliation proceeding within 270 days from the date an application is filed by an electric provider. Sec. 51. (1) As a clean energy standard, an electric provider shall achieve a clean energy portfolio of at least the following: (a) In 2035 through 2039, 80%. (b) In 2040 and each year thereafter, 100%. (2) All of the following apply to an electric provider whose rates are regulated by the commission: (a) The electric provider shall submit a plan to comply with the clean energy standard as part of that electric providers integrated resource plans filed under section 6t of 1939 PA 3, MCL 460.6t. The costs of compliance with the clean energy standard are a cost of service and may be recovered as provided by 1939 PA 3, MCL 460.1 to 460.11. (b) The commission may, upon a showing of good cause based on a factor listed in section 32(2), grant the electric provider an extension of a clean energy standard deadline. Each extension shall not exceed 2 years. An extension of a deadline does not affect a subsequent deadline. Upon granting an additional extension for a particular clean energy standard deadline beyond the first 2 extensions, the commission shall notify the speaker of the house, the majority leader of the senate, and the chairpersons of the committees of the legislature having jurisdiction over energy issues that it has granted an additional extension and the reasons for the extension. (c) The electric provider qualifies for a financial incentive for a clean energy contract under section 28(8). (3) All of the following apply to an alternative electric supplier or a cooperative electric utility that has elected to become member-regulated under the electric cooperative member-regulation act, 2008 PA 167, MCL 460.31 to 460.39: (a) An electric provider described in this subsection shall file a proposed clean energy plan with the commission by January 1, 2028. The proposed clean energy plan shall meet all of the following requirements: (i) Describe how the electric provider will meet the clean energy standard. (ii) Specify whether the number of megawatt hours of electricity used in the calculation of the clean energy portfolio will be weather-normalized or based on the average number of megawatt hours of electricity sold by the electric provider annually during the previous 3 years to retail customers in this state. Once the plan is approved by the commission, this option shall not be changed. (b) The commission shall provide an opportunity for public comment on the proposed clean energy plan filed under subdivision (a). After the opportunity for public comment and within 150 days after the proposed clean energy plan is filed with the commission, the commission shall approve, with any changes consented to by the electric provider, or reject the clean energy plan. (c) Every 4 years after initial approval of a clean energy plan under subdivision (b), the commission shall review the clean energy plan. The commission shall provide an opportunity for public comment on the clean energy plan. After the opportunity for public comment, the commission shall approve, with any changes consented to by the electric provider described in this subsection, or reject any proposed amendments to the clean energy plan. (d) If an electric provider described in this subsection proposes to amend its clean energy plan at a time other than during the review process under subdivision (c), the electric provider shall file the proposed amendment with the commission. The commission shall provide an opportunity for public comment on the amendment. After the opportunity for public comment and within 150 days after the amendment is filed, the commission shall approve, with any changes consented to by the electric provider, or reject the amendment. (e) If the commission rejects a proposed clean energy plan or amendment under this subsection, the commission shall explain in writing the reasons for its determination. (f) The commission may, upon a showing of good cause based on a factor listed in section 32(2), grant an alternative electric supplier an extension of a clean energy standard deadline. Each extension shall not exceed 2 years. An extension of a deadline does not affect a subsequent deadline. Upon granting an additional extension for a particular clean energy standard deadline beyond the first 2 extensions, the commission shall notify the speaker of the house, the majority leader of the senate, and the chairpersons of the committees of the legislature having jurisdiction over energy issues that it has granted an additional extension and the reasons for the extension. (g) The governing board of a cooperative electric utility may, upon a demonstration of good cause based on a factor listed in section 32(2), grant an extension of a clean energy standard deadline. Each extension shall not exceed 2 years. An extension of a deadline does not affect a subsequent deadline. Upon granting an additional extension for a particular clean energy standard deadline beyond the first 2 extensions, the governing board of a cooperative electric utility shall notify the commission that it has granted an additional extension and the reasons for the extension. (4) All of the following apply to a municipally owned electric utility: (a) Each municipally owned electric utility shall file a proposed clean energy plan with the commission by July 1, 2028. Two or more municipally owned electric utilities may file jointly for the purposes of compliance with the requirements of this subsection. The proposed clean energy plan shall meet all of the following requirements: (i) Describe how the municipally owned electric utility or a joint filing of municipally owned electric utilities will meet the clean energy standard. (ii) Specify whether the number of megawatt hours of electricity used in the calculation of the clean energy portfolio will be weather-normalized or based on the average number of megawatt hours of electricity sold by the municipally owned electric utility annually during the previous 3 years to retail customers in this state. Once the commission determines that the proposed plan complies with this act, this option shall not be changed. (b) Subject to subdivision (e), the commission shall provide an opportunity for public comment on the proposed clean energy plan filed under subdivision (a). After the applicable opportunity for public comment and within 150 days after the proposed clean energy plan is filed with the commission, the commission shall determine whether the proposed clean energy plan complies with this act. (c) Every 4 years after the commission initially determines under subdivision (b) that a clean energy plan complies with this act, the commission shall review the clean energy plan. Subject to subdivision (e), the commission shall provide an opportunity for public comment on the clean energy plan. After the opportunity for public comment, the commission shall determine whether any amendment to the clean energy plan proposed by the municipally owned electric utility complies with this act. The proposed amendment is adopted if the commission determines that it complies with this act. (d) If a municipally owned electric utility proposes to amend its clean energy plan at a time other than during the review process under subdivision (c), the municipally owned electric utility shall file the proposed amendment with the commission. Subject to subdivision (e), the commission shall provide an opportunity for public comment on the amendment. After the applicable opportunity for public comment and within 150 days after the amendment is filed, the commission shall determine whether the proposed amendment to the clean energy plan complies with this act. The proposed amendment is adopted if the commission determines that it complies with this act. (e) The commission need not provide an opportunity for public comment under subdivision (b), (c), or (d) if the governing body of the municipally owned electric utility has already provided an opportunity for public comment and filed the comments with the commission. (f) If the commission determines that a proposed clean energy plan or amendment under this subsection does not comply with this act, the commission shall explain in writing the reasons for its determination. (g) The governing board of a municipally owned electric utility may, upon a demonstration of good cause based on a factor listed in section 32(2), grant an extension of a clean energy standard deadline. Each extension shall not exceed 2 years. An extension of a deadline does not affect a subsequent deadline. Upon granting an additional extension for a particular clean energy standard deadline beyond the first 2 extensions, the governing board of a municipally owned electric utility shall notify the commission that it has granted an additional extension and the reasons for the extension. (5) By December 1, 2024, the commission shall deliver to the governor, the senate majority leader, the senate minority leader, the speaker of the house of representatives, the minority leader of the house of representatives, and the chairpersons of the senate and house of representatives standing committees with primary responsibility for energy issues a written report detailing all of the following: (a) The unique conditions influencing electric generation, transmission, and demand in the Upper Peninsula. (b) The unique role of the reciprocating internal combustion units placed in service to facilitate the retirement of coal-fired generation located in the Upper Peninsula after the regional transmission organization imposed system support resource charges. (c) Changes in electric demand, including changes from mining-related economic development projects, that may influence the utilization of the reciprocating internal combustion units described in subdivision (b). (d) Options to reduce the carbon intensity of the existing reciprocating internal combustion units described in subdivision (c), with particular focus on how the unique geological conditions within the Upper Peninsula influence the feasibility of deploying clean energy systems. (e) Any other information the commission determines may be relevant to the development of strategies to satisfy the clean energy standard for an electric provider whose rates are regulated by the commission and that owns and operates reciprocating internal commission engine units in the Upper Peninsula. Sec. 53. The attorney general or any customer of a municipally owned electric utility or a cooperative electric utility that is member-regulated under the electric cooperative member-regulation act, 2008 PA 167, MCL 460.31 to 460.39, may commence a civil action for injunctive relief against that municipally owned electric utility or cooperative electric utility if the municipally owned electric utility or cooperative electric utility fails to meet the applicable requirements of this subpart or an order issued or rule promulgated under this subpart. The attorney general or customer shall commence an action under this section in the circuit court for the circuit in which the principal office of the municipally owned electric utility or cooperative electric utility is located. The attorney general or customer shall not file an action under this section unless the attorney general or customer has given the municipally owned electric utility or cooperative electric utility at least 60 days written notice of the intent to sue, the basis for the suit, and the relief sought. Within 30 days after the municipally owned electric utility or cooperative electric utility receives written notice of the intent to sue, the municipally owned electric utility or cooperative electric utility and the attorney general or customer shall meet and make a good-faith attempt to determine if there is a credible basis for the action. The municipally owned electric utility or cooperative electric utility shall take all reasonable and prudent steps necessary to comply with the applicable requirements of this subpart or an order issued or rule promulgated under this subpart within 90 days after the meeting if there is a credible basis for the action. If the parties do not agree as to whether there is a credible basis for the action, the attorney general or customer may proceed to file the suit. When making a determination of whether a credible basis for the action exists, the attorney general or customer shall consider the factors listed in section 32(2). Sec. 101. (1) By December 31, 2029, each electric provider whose rates are regulated by the commission shall petition the commission for any necessary approvals, and each alternative electric supplier shall submit a plan to the commission, to construct or acquire eligible energy storage systems or enter into eligible energy storage contracts to meet its share of a statewide energy storage target of a combined capacity of at least 2,500 megawatts. An electric providers share of the statewide energy storage target shall be apportioned based on the electric providers annual average contribution to in-state retail electric peak load for the 5-year period immediately preceding the filing of the electric providers plan under this subsection. (2) An electric provider whose rates are regulated by the commission shall demonstrate compliance with its plan under subsection (1) as part of the electric providers integrated resource plan filed under section 6t of 1939 PA 3, MCL 460.6t. An alternative electric supplier shall demonstrate compliance with its plan under subsection (1) in the demonstration required under section 6w(8)(b) of 1939 PA 3, MCL 460.6w. (3) An alternative electric supplier may contract with an electric provider whose rates are regulated by the commission to construct the eligible energy storage systems necessary to fulfil the alternative electric suppliers portion of the statewide energy storage target that is attributable to the alternative electric suppliers load within the service territory of the electric provider whose rates are regulated by the commission. An eligible energy storage contract under this subsection shall be filed with the commission. The contract prices may not exceed the cost plus the applicable rate of return for the electric provider whose rates are regulated by the commission. (4) An electric provider whose rates are regulated by the commission shall submit to the commission for review and approval eligible energy storage contracts entered into to meet its share of the statewide storage target under subsection (1). If the commission approves an eligible energy storage contract, the commission shall authorize the electric provider to recover the costs of the contract in the electric providers base rates. An electric provider whose rates are regulated by the commission shall conduct a competitive bidding process before entering an eligible energy storage contract to meet its share of the statewide target under subsection (1). (5) An electric provider whose rates are regulated by the commission qualifies for a financial incentive under section 28(8) for an eligible energy storage contract. (6) This act does not limit the amount of energy storage capacity an electric provider may procure. (7) Within 1 year after the effective date of the amendatory act that added this section, the commission shall complete a study on long-term energy storage systems and multiday energy storage systems. (8) For purposes of this subsection, an energy storage system must have been placed in service on or after the effective date of the amendatory act that added this section. (9) As used in this section: (a) Eligible energy storage contract means a contract to construct, acquire, or use the services of an eligible energy storage system. (b) Eligible energy storage system means an energy storage system that is located within the local resource zone or the locational deliverability area, as defined by the appropriate independent system operator or regional transmission organization, in which the electric provider is subject to capacity demonstration obligations pursuant to section 6w(8)(b) of 1939 PA 3, MCL 460.6w. Sec. 103. By December 31, 2024, and each year thereafter, an electric provider whose rates are regulated by the commission shall submit a report to the commission documenting the centralized and distributed electricity storage systems in its service territory. Sec. 173. (1) The commission shall establish a distributed generation program by order issued by July 19, 2017. The commission may promulgate rules the commission considers necessary to implement this program. Any rules adopted regarding time limits for approval of parallel operation must recognize grid reliability and safety complications including those arising from equipment saturation, use of multiple technologies, and proximity to synchronous motor loads. The program must apply to all electric utilities whose rates are regulated by the commission and alternative electric suppliers in this state. (2) Except as otherwise provided under this part, an electric customer of any class is eligible to interconnect an eligible electric generator with the customers local electric utility and operate the eligible electric generator in parallel with the distribution system. The program must limit each customer to generation capacity designed to meet up to 110% of the customers electricity consumption for the previous 12 months. The commission may waive the application, interconnection, and installation requirements of this part for customers participating in the net metering program under the commissions March 29, 2005 order in case no. U-14346. (3) An electric utility or alternative electric supplier is not required to allow for a distributed generation program that is greater than 10% of its average in-state peak load for the preceding 5 calendar years. The electric utility or alternative electric supplier shall notify the commission if its distributed generation program reaches the 10% limit under this subsection. The 10% limit under this subsection shall be allocated as follows: (a) Not less than 50% for customers with an eligible electric generator capable of generating 20 kilowatts or less. (b) Not more than 50% for customers with an eligible electric generator capable of generating more than 20 kilowatts but not more than 550 kilowatts. (4) Selection of customers for participation in the distributed generation program must be based on the order in which the applications for participation in the program are received by the electric utility or alternative electric supplier. (5) An electric utility or alternative electric supplier shall not discontinue or refuse to provide electric service to a customer solely because the customer participates in the distributed generation program. An electric utility or alternative electric supplier shall not limit the rate schedule under which a customer is served solely because the customer participates in the distributed generation program. (6) The distributed generation program created under subsection (1) must include all of the following: (a) Statewide uniform interconnection requirements for all eligible electric generators. The interconnection requirements must be designed to protect electric utility workers and equipment and the general public. (b) Distributed generation equipment and its installation shall meet all current local and state electric and construction code requirements. Any equipment that is certified by a nationally recognized testing laboratory to IEEE 1547.1-2020 testing standards and in compliance with UL 1741 scope 1.1A and installed in compliance with this part is considered to be compliant. The commission may adopt successor requirements by promulgating rules under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, if the commission determines the successor requirements are reasonable and consistent with the purposes of this subdivision. Within the time provided by the commission in rules promulgated under subsection (1) and consistent with good utility practice, and the protection of electric utility workers, electric utility equipment, and the general public, an electric utility may study, confirm, and ensure that an eligible electric generator installation at the customers site meets the IEEE 1547.1-2020 requirements or any applicable successor requirements adopted by the commission. If necessary to promote grid reliability or safety, the commission may promulgate rules that require the use of inverters that perform specific automated grid-balancing functions to integrate distributed generation onto the electric grid. Inverters that interconnect distributed generation resources may be owned and operated by electric utilities. Both of the following must be completed before the equipment is operated in parallel with the distribution system of the utility: (i) Utility testing and approval of the interconnection, including all metering. (ii) Execution of a parallel operating agreement. (c) A uniform application form and process to be used by all electric utilities and alternative electric suppliers in this state. Customers who are served by an alternative electric supplier shall submit a copy of the application to the electric utility for the customers service area. (d) Distributed generation customers shall pay the retail rates for electricity inflow under the rate schedule under which the customer is served. (7) Distributed generation customers shall receive a monthly bill credit for outflow as determined by the commission. Credits for outflow must reflect cost of service. (8) Each electric utility and alternative electric supplier shall maintain records of all applications and up-to-date records of all active eligible electric generators located within their service area. Sec. 177. (1) An electric meter provided by a utility must be used to determine the amount of the customers inflow and outflow electricity in each pricing period. Eligible customers shall pay only the incremental cost above that for meters provided by the electric utility to similarly situated, nongenerating customers. (2) A distributed generation customer shall be credited by the customers supplier of electric generation service for the outflow during the billing period. The credit must appear on the bill for the following billing period and be limited to the total charges on that bill. Any excess bill credits not used to offset inflow charges in the next billing period will be carried forward to subsequent billing periods. Sec. 191. (1) Subject to subsection (2), to implement this act, the commission shall issue orders or promulgate rules pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. (2) By January 1, 2026, the commission shall issue an order providing formats and guidelines for an electric provider to submit a clean energy plan pursuant to section 51. Enacting section 1. This amendatory act takes effect 90 days after the date it is enacted into law. Secretary of the Senate Clerk of the House of Representatives Approved___________________________________________ ____________________________________________________ Governor |
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| 1 | + | state of michigan 102nd Legislature Regular session of 2023 Introduced by Senators Geiss, Singh, McMorrow, Cavanagh, Shink, Chang, Camilleri, Hertel, Moss, Bayer, Brinks, Anthony and Polehanki ENROLLED SENATE BILL No. 271 AN ACT to amend 2008 PA 295, entitled An act to require certain providers of electric service to establish and recover costs for renewable energy programs; to require certain providers of electric or natural gas service to establish energy waste reduction programs; to authorize the use of certain energy systems to meet the requirements of those programs; to provide for the approval of energy waste reduction service companies; to reduce energy waste by state agencies and the public; to create a wind energy resource zone board and provide for its power and duties; to authorize the creation and implementation of wind energy resource zones; to provide for expedited transmission line siting certificates; to provide for customer generation and net metering programs and the responsibilities of certain providers of electric service and customers with respect to customer generation and net metering; to provide for fees; to prescribe the powers and duties of certain state agencies and officials; to require the promulgation of rules and the issuance of orders; to authorize the establishment of residential energy improvement programs by providers of electric or natural gas service; and to provide for civil sanctions, remedies, and penalties, by amending the title, the heading of subpart A of part 2, and sections 1, 3, 5, 7, 9, 11, 13, 22, 28, 29, 39, 45, 47, 49, 173, 177, and 191 (MCL 460.1001, 460.1003, 460.1005, 460.1007, 460.1009, 460.1011, 460.1013, 460.1022, 460.1028, 460.1029, 460.1039, 460.1045, 460.1047, 460.1049, 460.1173, 460.1177, and 460.1191), the title and sections 1, 3, 5, 7, 9, 11, 13, 29, 39, 45, 47, 49, 173, and 177 as amended and sections 22 and 28 as added by 2016 PA 342, and by adding sections 32, 51, 53, 101, and 103. The People of the State of Michigan enact: TITLE An act to require certain providers of electric service to establish and recover costs for renewable energy and clean energy programs; to require certain providers of electric or natural gas service to establish, and recover costs for, energy waste reduction programs; to ensure that any energy cost savings from renewable energy, clean energy, and energy waste reduction programs are ultimately returned to customers; to authorize the use of certain energy systems to meet the requirements of those programs; to provide for the approval of energy waste reduction service companies; to reduce energy waste by state agencies and the public; to create a wind energy resource zone board and provide for its power and duties; to authorize the creation and implementation of wind energy resource zones; to provide for expedited transmission line siting certificates; to provide for customer generation and net metering programs and the responsibilities of certain providers of electric service and customers with respect to customer generation and net metering; to provide for fees; to prescribe the powers and duties of certain state agencies and officials; to require the promulgation of rules and the issuance of orders; to authorize the establishment of residential energy improvement programs by providers of electric or natural gas service; to authorize certification by this state before the construction of certain wind and solar energy facilities and energy storage facilities; to regulate certain local ordinances; and to provide for civil sanctions, remedies, and penalties. Sec. 1. (1) This act may be cited as the clean and renewable energy and energy waste reduction act. (2) The purpose of this act is to promote the development and use of clean and renewable energy resources and the reduction of energy waste through programs that will cost-effectively do all of the following: (a) Diversify the resources used to reliably meet the energy needs of consumers in this state. (b) Provide greater energy security through the use of indigenous energy resources available within this state. (c) Encourage private investment in renewable energy and energy waste reduction. (d) Coordinate with federal regulations to provide improved air quality and other benefits to energy consumers and citizens of this state. (e) Provide more reliable and resilient energy supplies during periods of extreme weather. (3) Pursuant to the reconciliation processes provided for in this act, the commission shall determine the costs and savings resulting from compliance with the renewable energy, clean energy, and energy waste reduction programs required under this act and include those costs and savings in the determination of the rates charged to customers of the electric and natural gas providers. This section does not prohibit the commission from authorizing shared savings or incentive programs as provided for in this act. Sec. 3. As used in this act: (a) Applicable regional transmission organization means a nonprofit, member-based organization governed by an independent board of directors that serves as the regional transmission organization approved by the Federal Energy Regulatory Commission with oversight responsibility for the region that includes the providers service territory. (b) Biomass means any organic matter that is not derived from fossil fuels, that can be converted to usable fuel for the production of energy, and that replenishes over a human, not a geological, time frame, including, but not limited to, all of the following: (i) Agricultural crops and crop wastes. (ii) Short-rotation energy crops. (iii) Herbaceous plants. (iv) Trees and wood, but only if derived from sustainably managed forests or procurement systems, as defined in section 261c of the management and budget act, 1984 PA 431, MCL 18.1261c. (v) Paper and pulp products. (vi) Precommercial wood thinning waste, brush, or yard waste. (vii) Wood wastes and residues from the processing of wood products or paper. (viii) Animal wastes. (ix) Wastewater sludge or sewage. (x) Aquatic plants. (xi) Food production and processing waste. (xii) Organic by-products from the production of biofuels. (c) Board means the wind energy resource zone board created under section 143. (d) Carbon capture and storage means a process that involves collecting carbon dioxide at its source and storing, or sequestering, it to prevent its release into the atmosphere. (e) Clean energy means electricity or steam generated using a clean energy system. (f) Clean energy plan means an electric providers plan to meet the clean energy standard approved under section 51. (g) Clean energy portfolio means the percentage of an electric providers total retail electric sales consisting of clean energy or renewable energy. (h) Clean energy standard means the clean energy portfolio required under section 51(1). (i) Clean energy system means an electricity generation facility or system or set of electricity generation systems that meets any of the following requirements: (i) Generates electricity or steam without emitting greenhouse gas, including nuclear generation. (ii) Is fueled by natural gas and uses carbon capture and storage that is at least 90% effective in capturing and permanently storing carbon dioxide. If the department of environment, Great Lakes, and energy determines, through a facility-specific major source permitting analysis consistent with applicable United States Environmental Protection Agency rules, that a capture rate higher than 90% meets the best available control technology standard, as applicable, that higher percentage shall be used instead of 90% for facilities permitted after the effective date of the amendatory act that added section 51. Using carbon dioxide for enhanced oil recovery is not considered to be permanent storage for the purposes of this subparagraph. (iii) Is an independently owned combined cycle power plant fueled by natural gas that has a power purchase agreement with an electric provider as of the effective date of the amendatory act that added this subparagraph and that by 2030 receives approval from the commission for a plan that achieves functional equivalence with the clean energy standard in section 51(1)(b) through reduction of greenhouse gas emissions using carbon capture and sequestration and other available applications, including, but not limited to, carbon removal technologies. In reviewing and approving a plan submitted under this subparagraph, the commission shall consider best available technology and applications as well as rate affordability, resource adequacy, and grid reliability. (iv) Is defined as a clean energy system in rules adopted by the commission consistent with the purposes of this subdivision. (j) Commission means the Michigan public service commission. (k) Customer meter means an electric meter of a providers retail customer. Customer meter does not include a municipal water pumping meter or additional meters at a single site that were installed specifically to support interruptible air conditioning, interruptible water heating, net metering, or time-of-day tariffs. (l) Distributed generation means the generation of electricity under the distributed generation program. (m) Distributed generation program means the program established by the commission under section 173. Sec. 5. As used in this act: (a) Efficient electrification measure means an electric appliance or equipment installed in an existing building to electrify, in whole or in part, space heating, water heating, cooling, drying, cooking, industrial processes, or another building or industrial end use that would otherwise be served by combustion of fossil fuel on the premises and that meets best-practice standards for cost-effective energy efficiency as determined by the commission. Efficient electrification measure includes, but is not limited to, any of the following: (i) A cold-climate air-source heat pump. (ii) An electric clothes dryer. (iii) A ground-source heat pump. (iv) High-efficiency electric cooking equipment. (v) A heat pump or high-efficiency electric water heater. (b) Efficient electrification measures plan means a plan to offer and promote efficient electrification measures. (c) Efficient electrification measures program means a program to implement an efficient electrification measures plan. (d) Electric provider means any of the following: (i) Any person or entity that is regulated by the commission for the purpose of selling electricity to retail customers in this state. (ii) A municipally owned electric utility in this state. (iii) A cooperative electric utility in this state. (iv) Except as used in subpart C of part 2, an alternative electric supplier licensed under section 10a of 1939 PA 3, MCL 460.10a. (e) Eligible electric generator means a methane digester or renewable energy system with a generation capacity limited to 110% of the customers electricity consumption for the previous 12 months. (f) Energy conservation means the reduction of customer energy use through the installation of measures or changes in energy usage behavior. (g) Energy efficiency means a decrease in customer consumption of electricity or natural gas achieved through measures or programs that target customer behavior, equipment, devices, or materials without reducing the quality of energy services. (h) Energy star means the voluntary partnership among the United States Department of Energy, the United States Environmental Protection Agency, product manufacturers, local utilities, and retailers to help promote energy efficient products by labeling with the energy star logo, educate consumers about the benefits of energy efficiency, and help promote energy efficiency in buildings by benchmarking and rating energy performance. (i) Energy storage system means any technology that is capable of absorbing energy, storing the energy for a period of time, and redelivering the energy. Energy storage system does not include either of the following: (i) Fossil fuel storage. (ii) Power-to-gas storage that directly uses fossil fuel inputs. (j) Energy waste reduction, subject to subdivision (k), means all of the following: (i) Energy efficiency. (ii) Load management, to the extent that the load management reduces provider costs. (iii) Energy conservation, but only to the extent that the decreases in the consumption of electricity produced by energy conservation are objectively measurable and attributable to an energy waste reduction plan. (k) Energy waste reduction does not include electric provider infrastructure projects that are approved for cost recovery by the commission other than as provided in this act. (l) Energy waste reduction credit means a credit certified pursuant to section 87 that represents achieved energy waste reduction. (m) Energy waste reduction plan means a plan under section 71. (n) Energy waste reduction standard means the minimum energy savings required to be achieved under section 77. (o) Federal approval means approval by the applicable regional transmission organization or other Federal Energy Regulatory Commission-approved transmission planning process of a transmission project that includes the transmission line. Federal approval may be evidenced in any of the following manners: (i) The proposed transmission line is part of a transmission project included in the applicable regional transmission organizations board-approved transmission expansion plan. (ii) The applicable regional transmission organization has informed the electric utility, affiliated transmission company, or independent transmission company that a transmission project submitted for an out-of-cycle project review has been approved by the applicable regional transmission organization, and the approved transmission project includes the proposed transmission line. (iii) If, after October 6, 2008, the applicable regional transmission organization utilizes another approval process for transmission projects proposed by an electric utility, affiliated transmission company, or independent transmission company, the proposed transmission line is included in a transmission project approved by the applicable regional transmission organization through the approval process developed after October 6, 2008. (iv) Any other Federal Energy Regulatory Commission-approved transmission planning process for a transmission project. Sec. 7. As used in this act: (a) Greenhouse gas means carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, or sulfur hexafluoride. (b) Grid reliability means the ability, as defined by the regional transmission organization, of the bulk power system to withstand sudden, unexpected disturbances, such as short circuits or unanticipated loss of system elements because of natural causes. (c) Incremental costs of compliance means the net revenue required by an electric provider to comply with the renewable energy standard, calculated as provided under section 47. (d) Independent transmission company means that term as defined in section 2 of the electric transmission line certification act, 1995 PA 30, MCL 460.562. (e) LEED means the leadership in energy and environmental design green building rating system developed by the United States Green Building Council. (f) Load management means measures or programs that target equipment or behavior to result in decreased peak electricity demand such as by shifting demand from a peak to an off-peak period. (g) Long-duration energy storage system means an energy storage system capable of continuously discharging electricity at its full rated capacity for more than 10 hours. (h) Low-income residential customer means a customer that meets any of the following requirements: (i) The customers household income does not exceed 250% of the federal poverty line, as published by the United States Department of Health and Human Services under its authority to revise the poverty line under 42 USC 9902. (ii) The customers household income does not exceed 80% of the adjusted median income as determined by the United States Department of Housing and Urban Development. (iii) The customer is enrolled in a federal, state, or local program with similar income eligibility requirements, including, but not limited to, an emergency relief or food assistance program or Medicaid. (i) Megawatt, megawatt hour, or megawatt hour of electricity, unless the context implies otherwise, includes the steam equivalent of a megawatt or megawatt hour of electricity. (j) Modified net metering means a utility billing method that applies the power supply component of the full retail rate to the net of the bidirectional flow of kilowatt hours across the customer interconnection with the utility distribution system, during a billing period or time-of-use pricing period. A negative net metered quantity during the billing period or during each time-of-use pricing period within the billing period reflects net excess generation for which the customer is entitled to receive credit under section 177(2). Under modified net metering, standby charges for distributed generation customers on an energy rate schedule shall be equal to the retail distribution charge applied to the imputed customer usage during the billing period. The imputed customer usage is calculated as the sum of the metered on-site generation and the net of the bidirectional flow of power across the customer interconnection during the billing period. The commission shall establish standby charges under modified net metering for distributed generation customers on demand-based rate schedules that provide an equivalent contribution to utility system costs. A charge for net metering and distributed generation customers established pursuant to section 6a of 1939 PA 3, MCL 460.6a, shall not be recovered more than once. (k) Multiday energy storage system means an energy storage system capable of continuously discharging electricity at its full rated capacity for more than 24 hours. Sec. 9. As used in this act: (a) Natural gas provider means an investor-owned business engaged in the sale and distribution at retail of natural gas within this state whose rates are regulated by the commission. (b) Pet coke means a solid carbonaceous residue produced from a coker after cracking and distillation from petroleum refining operations. (c) Provider means an electric provider or a natural gas provider. (d) PURPA means the public utility regulatory policies act of 1978, Public Law 95-617. Sec. 11. As used in this act: (a) Renewable energy means electricity or steam generated using a renewable energy system. (b) Renewable energy contract means a contract to acquire renewable energy and the associated renewable energy credits from 1 or more renewable energy systems. (c) Renewable energy credit means a credit granted under a certification and tracking program established under section 41, which represents generated renewable energy. (d) Renewable energy credit portfolio means the sum of the renewable energy credits achieved by a provider for a particular year. (e) Renewable energy credit standard means a minimum renewable energy credit portfolio required under section 28 or former section 27. (f) Renewable energy plan or plan means a plan approved under section 22 or former section 21 or 23 or found to comply with this act under former section 25, with any amendments adopted under this act. (g) Renewable energy resource means a resource that naturally replenishes over a human, not a geological, time frame and that is ultimately derived from solar power, water power, or wind power. Renewable energy resource does not include petroleum, nuclear, natural gas, industrial waste, post-use polymers, tires, tire-derived fuel, plastic, or coal. A renewable energy resource comes from the sun or from thermal inertia of the earth and minimizes the output of toxic material in the conversion of the energy and includes, but is not limited to, all of the following: (i) Biomass, as described in any of the following: (A) Landfill gas as described in subparagraph (vii). (B) Gas from a methane digester using only feedstock as described in subparagraph (viii). (C) Biomass used by renewable energy systems that are in commercial operation on the effective date of the amendatory act that added section 51. (D) Trees and wood used in renewable energy systems that are placed in commercial operation after the effective date of the amendatory act that added section 51, if the trees and wood are derived from sustainably managed forests or procurement systems, as defined in section 261c of the management and budget act, 1984 PA 431, MCL 18.1261c. (ii) Solar and solar thermal energy. (iii) Wind energy. (iv) Kinetic energy of moving water, including all of the following: (A) Waves, tides, or currents. (B) Water released through a dam. (v) Geothermal energy. (vi) Thermal energy produced from a geothermal heat pump. (vii) Landfill gas produced from solid waste facilities. (viii) Any of the following if used as feedstock in a methane digester: (A) Municipal wastewater treatment sludge, wastewater, and sewage. (B) Food waste and food production and processing waste. (C) Animal manure. (D) Organics separated from municipal solid waste. (h) Renewable energy standard means the minimum renewable energy capacity portfolio, if applicable, and the renewable energy credit portfolio required to be achieved under section 28 or former section 27. (i) Renewable energy system means a facility, electricity generation system, or set of electricity generation systems that use 1 or more renewable energy resources to generate electricity or steam. Renewable energy system includes the following: (i) A landfill gas recovery and electricity generation facility located in a landfill whose operator employs best practices for methane gas collection and control and emissions monitoring, as determined by the department of environment, Great Lakes, and energy. (ii) A methane digester, if it processes only 1 or more of the following: (A) Municipal wastewater treatment sludge, wastewater, or sewage. (B) Food waste or food production and processing waste. (C) Animal manure. (D) Organics separated from municipal solid waste. (iii) A facility or generation system or set of systems that is placed in commercial operation after the effective date of the amendatory act that added section 51, but only if the facility or generation system or set of systems uses as feedstock trees and wood derived from sustainably managed forests or procurement systems, as defined in section 261c of the management and budget act, 1984 PA 431, MCL 18.1261c. (j) Renewable energy system does not include any of the following: (i) A hydroelectric pumped storage facility. (ii) A hydroelectric facility that uses a dam constructed after October 6, 2008 unless the dam is a repair or replacement of a dam in existence on October 6, 2008 or an upgrade of a dam in existence on October 6, 2008 that increases its energy efficiency. (iii) An incinerator. This subparagraph does not apply before 2040 to an incinerator that was generating power before January 1, 2023, unless the incinerator is expanded. (iv) A gasification facility. (v) A facility that cofires biomass with tires or tire-derived fuel. (k) Resource adequacy describes having sufficient resources to provide customers with a continuous supply of electricity at the proper voltage and frequency, virtually always and across a range of reasonably foreseeable conditions. (l) Revenue recovery mechanism means the mechanism for recovery of incremental costs of compliance provided for under section 22. Sec. 13. As used in this act: (a) Site means, except as used in part 8, a contiguous site, regardless of the number of meters at that site. A site that would be contiguous but for the presence of a street, road, or highway is considered to be contiguous for the purposes of this subdivision. (b) Transmission line means all structures, equipment, and real property necessary to transfer electricity at system bulk supply voltage of 100 kilovolts or more. (c) Utility system resource cost test means a standard that is met for an investment in energy waste reduction if, on a life cycle basis, using a real societal discount rate based on actual long-term United States treasury bond yields, the total avoided supply-side costs to the provider, including representative values for electricity or natural gas supply, transmission, distribution, and other associated costs, are greater than the total costs to the provider of administering and delivering the energy waste reduction program, including net costs for any provider incentives paid by customers and capitalized costs recovered under section 89. (d) Wind energy conversion system means a system that uses 1 or more wind turbines to generate electricity and has a nameplate capacity of 100 kilowatts or more. (e) Wind energy resource zone or wind zone means an area designated by the commission under section 147. PART 2 ENERGY STANDARDS SUBPART A RENEWABLE AND CLEAN ENERGY Sec. 22. (1) Renewable energy plans and associated revenue recovery mechanisms filed by an electric provider, approved under former section 21 or 23 or found to comply with this act under former section 25 and in effect on the effective date of the amendatory act that added section 51, remain in effect, subject to amendments under subsection (3) or (4). (2) For an electric provider whose rates are regulated by the commission, amended renewable energy plans shall establish a mechanism for the recovery of the incremental costs of compliance within the electric providers customer rates. The revenue recovery mechanism is subject to adjustment in amended renewable energy plans under subsection (3) or (4) or as provided in section 49. (3) Within 1 year after the effective date of the amendatory act that added section 51, and within 2 years after the commission issues an order approving the electric providers last amended renewable energy plan, an electric provider shall file an amended renewable energy plan that includes a forecast of the renewable energy resources needed to comply with the renewable energy credit standard pursuant to a filing schedule established by the commission. For an electric provider whose rates are regulated by the commission, the commission shall conduct a contested case hearing on the amended renewable energy plan pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. After the hearing, the commission shall approve, with any changes consented to by the electric provider, or reject the amended renewable energy plan. For all other electric providers, the commission shall provide an opportunity for public comment on the amended renewable energy plan. After the applicable opportunity for public comment, the commission shall determine whether any amendment to the renewable energy plan proposed by the provider complies with this act. For alternative electric suppliers, the commission shall approve, with any changes consented to by the electric provider, or reject any proposed amendments to the renewable energy plan. For each amended renewable energy plan filed by an electric provider, the commission shall issue a final order within 300 days after the date the amended renewable energy plan was filed with the commission. For cooperative electric utilities and municipally owned utilities, the proposed amendment is adopted if the commission determines that it complies with this act. (4) If an electric provider proposes to amend its renewable energy plan at a time other than a scheduled review process under subsection (3), the electric provider shall file the proposed amendment with the commission. For an electric provider whose rates are regulated by the commission, if the proposed amendment would modify the revenue recovery mechanism, the commission shall conduct a contested case hearing on the amendment pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. After the hearing and within 180 days after the amendment is filed, the commission shall approve, with any changes consented to by the electric provider, or reject the proposed amendment or amendments to the renewable energy plan. For all other electric providers, the commission shall provide an opportunity for public comment on the amendment. After the applicable opportunity for public comment and within 180 days after the amendment is filed, the commission shall determine whether the proposed amendment to the renewable energy plan complies with this act. For alternative electric suppliers, the commission shall approve, with any changes consented to by the electric provider, or reject any proposed amendments to the renewable energy plan. For cooperative electric utilities and municipally owned utilities, the proposed amendment is adopted if the commission determines that it complies with this act. (5) For an electric provider whose rates are regulated by the commission, the commission shall approve amendments to the renewable energy plan if the commission determines both of the following: (a) That the amended renewable energy plan is reasonable and prudent. In making this determination, the commission shall take into consideration projected costs and whether or not projected costs in prior amended renewable energy plans were exceeded. (b) That the amended renewable energy plan is consistent with the purpose set forth in section 1(2) and meets the renewable energy credit standard. (6) For an electric provider whose rates are regulated by the commission, the commission shall review the projected costs of the renewable energy plan and approve, in whole or in part, the projected costs if the commission finds those projected costs, in whole or in part, to be reasonable and prudent. In making this determination, the commission shall consider whether projected costs in prior renewable energy plans were exceeded. (7) If the commission rejects a proposed renewable energy plan, an amendment, or projected costs under this section, the commission shall explain in writing the reasons for its determination. Sec. 28. (1) An electric provider shall achieve a renewable energy credit portfolio of at least the following: (a) Through 2029, 15%. (b) In 2030 through 2034, 50%. (c) In 2035 and each year thereafter, 60%. (2) An electric providers renewable energy credit portfolio shall be calculated as follows: (a) Determine the number of renewable energy credits used to comply with this subpart during the applicable year. (b) Divide by 1 of the following at the option of the electric provider as specified in its renewable energy plan: (i) The number of weather normalized megawatt hours of electricity sold by the electric provider during the previous year to retail customers in this state, less the amount of sales attributable to customers participating in an electric providers voluntary green pricing program under section 61 and the outflow from customers participating in the distributed generation program under section 173 for that year. (ii) The average number of megawatt hours of electricity sold by the electric provider annually during the previous 3 years to retail customers in this state, less the amount of sales attributable to customers participating in an electric providers voluntary green pricing program under section 61 and the outflow from customers participating in the distributed generation program under section 173 for that year. (c) Multiply the quotient under subdivision (b) by 100. (3) Notwithstanding subsection (1) and subject to subsection (4), in any year a cooperative electric provider or a multistate electric provider may calculate its maximum renewable energy credit portfolio requirement as follows: (a) Determine the number of megawatt hours of electricity sold by the electric provider to retail customers in this state using the option the electric provider selected under subsection (2)(b). (b) Subtract the number of megawatt hours of nuclear energy that the electric provider obtained from a system located in this state that the electric provider owned or from which the electric provider had contracted to receive nuclear energy on or before January 1, 2024. (4) An electric provider described in subsection (3) is required to achieve a renewable energy credit portfolio equal only to the electric providers maximum renewable energy credit portfolio requirement if the electric providers maximum renewable energy credit portfolio requirement is less than the number of renewable energy credits required to comply with the applicable standard in subsection (1). If the electric provider is a multistate electric provider, and the electric providers maximum renewable energy credit portfolio requirement is less than the number of renewable energy credits required to comply with the applicable standard in subsection (1), then the electric provider is required to achieve a renewable energy credit portfolio equal only to the electric providers maximum renewable energy credit portfolio requirement if all of the following requirements are met: (a) The electric providers electricity generation systems located within this state produce energy exceeding the electric providers electricity sales in this state. (b) All of the electric providers electricity generation systems located within this state are clean energy systems. (c) All of the renewable energy credits generated in this state are used by the electric provider toward compliance with the renewable energy credit portfolio as calculated under subsection (2). (d) Renewable energy and clean energy generated in this state equal to or exceeding the providers electricity sales in this state are not used by the provider or any other provider to comply with any similar standards. (5) Each electric provider shall meet the renewable energy credit standard, subject to subsection (3), with renewable energy credits obtained by any of the following means: (a) Generating electricity from renewable energy systems for sale to retail customers. (b) Purchasing or otherwise acquiring renewable energy and capacity. (c) Purchasing or otherwise acquiring renewable energy credits without the associated renewable energy or capacity. Renewable energy credits acquired under this subdivision shall be produced within the territory of the regional transmission organization of which the electric provider is a member, and, except for a municipally owned electric utility, shall not exceed 5% of an electric providers renewable energy credits annually used to comply with the renewable energy standard. Renewable energy credits acquired under this subdivision are not subject to the requirements of section 29 and shall not be used to comply with the renewable energy standard after 2035. (6) For an electric provider whose rates are regulated by the commission, the electric provider shall submit a contract entered into for the purposes of subsection (5) to the commission for review and approval. If the commission approves the contract, it is considered consistent with the electric providers renewable energy plan. The commission shall not approve a contract based on an unsolicited proposal unless the commission determines that the unsolicited proposal provides opportunities that may not otherwise be available or commercially practical through a competitive bid process. (7) An electric provider that has achieved annual incremental energy savings of greater than 2% under an energy waste reduction plan approved under section 73 may substitute energy waste reduction credits for renewable energy credits otherwise required to meet the renewable energy credit standard if the substitution is approved by the commission. Under this subsection, energy waste reduction credits shall not be used by a provider to meet more than 10% of the renewable energy credit standard. One renewable energy credit shall be awarded per 1 energy waste reduction credit. (8) If an electric provider whose rates are regulated by the commission enters into a purchase power agreement for renewable energy resources or a third-party contract for an energy storage system or clean energy system with an entity that is not an affiliate, the commission shall authorize an annual financial incentive for the electric provider. The financial incentive shall be calculated as the product of contract payments in that year multiplied by the electric providers pre-tax weighted average cost of permanent capital comprised of long-term debt obligations and equity of the electric providers total capital structure as determined by the commissions final order in the electric providers most recent general rate case. The pre-tax weighted average cost of permanent capital used to calculate the financial incentive shall not be fixed throughout the entire term of the contract at the pre-tax weighted average cost of capital applicable in the first year but shall be updated based on the commissions final order in each succeeding general rate case for the electric provider. The financial incentive shall apply to each contract described in this subsection from the date the contract is executed for the entire term of the contract. This subsection applies to any contract entered into after June 30, 2024. (9) As used in this section, cooperative electric provider means an entity that is a member of or that purchases energy from an entity that is either of the following: (a) Organized as a cooperative corporation under sections 98 to 109 of 1931 PA 327, MCL 450.98 to 450.109. (b) A cooperative corporation in the business of generating or transmitting electricity. Sec. 29. (1) Subject to subsections (2) to (4), a renewable energy system that is the source of renewable energy credits used to satisfy the renewable energy standards shall be located as described in either of the following: (a) Anywhere in this state. (b) Outside of this state, but only if the electric provider includes the capacity from the renewable energy system toward meeting its resource adequacy obligations to the applicable regional transmission organization. (2) Subsection (1) does not require an electric provider to procure firm transmission rights to ensure deliverability to the resource adequacy zone where the load is served. (3) Subsection (1) does not apply if electricity generated from the renewable energy system is sold by a not-for-profit entity located in Indiana, Ohio, or Wisconsin to a municipally owned electric utility in this state or cooperative electric utility in this state, and the electricity is not being used to meet another states standard for renewable energy. (4) Renewable energy credits produced in the continental United States and owned by a customer of an electric provider may be utilized by the electric provider to meet the renewable energy credit standard if the electric customer chooses to report renewable energy credits to its electric provider as attributable to the customers electric load. Any renewable energy credits reported by an electric customer for use by its electric provider shall be applied to the electric customers proportional share of a renewable energy credit portfolio requirement for the year in which renewable energy credits are used to comply with the renewable energy credit standard. On an annual basis, not later than December 1, the electric customer shall provide the electric provider with an update on its 5-year forecast and notify the electric provider of the expected amount of renewable energy credits to be used toward compliance in the coming year. If the projected amount of renewable energy credits available for compliance will be less than what the electric customer projected in its 5-year forecast, then the electric customer shall notify the electric provider at least 5 years before the compliance year in which a projected reduction in renewable energy credits will occur. If the electric providers rates are regulated by the commission and the electric provider uses the reported renewable energy credits to comply with the renewable energy credit portfolio standard, the electric provider shall grant the customer an appropriate cost-based rate credit against the cost of compliance under section 47. As used in this subsection, customer of an electric provider or customer means any of the following: (a) A customer taking service under a rate approved by the commission under section 10gg of 1939 PA 3, MCL 460.10gg. (b) A customer whose manufacturing complex is described in section 10a(4)(c) of 1939 PA 3, MCL 460.10a, and that takes service for a portion of its load from an alternative electric supplier licensed under section 10a of 1939 PA 3, MCL 460.10a, on the effective date of the amendatory act that added section 51. (c) A customer of a municipally owned electric utility on the effective date of the amendatory act that added this subsection if the customer represents at least 25% of the municipally owned electric utilitys peak load. (5) Renewable energy credits that qualify under subsection (1) and are owned by members of a public body corporate established under the urban cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512, on or before December 1, 2022, if those members are part of Michigans educational community and take service from an alternative electric supplier licensed under section 10a of 1939 PA 3, MCL 460.10a, may be utilized by the members electric provider to meet the renewable energy credit standards if the members choose to report renewable energy credits to the electric provider as attributable to the electric load of members of the cooperative. Any renewable energy credits reported by a member of the cooperative for use by a provider to the members of the cooperative shall be applied to the members proportional share of a renewable energy credit portfolio requirement for the year in which renewable energy credits are used to comply with the renewable energy credit standard. Sec. 32. (1) Upon petition by an electric provider, the commission may, upon a showing of good cause, grant an extension of a renewable energy credit portfolio deadline under section 28. Each extension shall not exceed 2 years. An extension of a deadline does not affect a subsequent deadline. (2) In a petition under subsection (1), an electric provider must include a plan for resolving the barrier to compliance and must make a showing of good cause by demonstrating any of the following: (a) Despite all commercially reasonable efforts by the electric provider to comply with the deadline, compliance is not practically feasible for reasons that may include, but are not limited to, zoning, siting, permitting, supply chains, transmission interconnection, labor shortages, delays in project deliverability from developers, or unanticipated load growth. Issuing a request for proposals to purchase renewable energy and not receiving a commercially viable offer creates a rebuttable presumption that compliance with the deadline is not practically feasible. (b) Compliance would be excessively costly to customers despite commercially reasonable efforts by the electric provider to contain costs. (c) Compliance would result in a deficiency in meeting resource adequacy requirements in the electric providers service territory. (d) Compliance would result in a local grid reliability issue. (3) Upon granting an additional extension for a particular renewable energy credit portfolio deadline beyond the first 2 extensions, the commission shall notify the speaker of the house, the majority leader of the senate, and the chairpersons of the committees of the legislature having jurisdiction over energy issues that it has granted an additional extension to the electric provider and the reasons for the extension. Sec. 39. (1) Except as otherwise provided in section 35(1), 1 renewable energy credit shall be granted to the owner of a renewable energy system for each megawatt hour of electricity generated from the renewable energy system, subject to all of the following: (a) If a renewable energy system uses both a renewable energy resource and a nonrenewable energy resource to generate electricity or steam, the number of renewable energy credits granted shall be based on the percentage of the electricity or steam, or both, generated from the renewable energy resource. (b) A renewable energy credit shall not be granted for renewable energy the renewable attributes of which are used by an electric provider in a commission-approved voluntary renewable energy program. (c) For a renewable energy system described in section 11(j)(iii), for each megawatt hour of electricity generated from the renewable energy system before 2040, 0.5 renewable energy credits shall be granted. No renewable energy credits shall be granted for electricity generated in 2040 or thereafter. A renewable energy system described in section 11(j)(iii) shall, by January 1, 2035, file a decommissioning plan with the county in which the facility is located detailing its plans to retire and decommission the facility not later than January 1, 2040. (2) The following additional renewable energy credits, to be known as Michigan incentive renewable energy credits, shall be granted under the following circumstances: (a) 2 renewable energy credits for each megawatt hour of electricity from solar power generated by a renewable energy system that was approved in a renewable energy plan before April 20, 2017. (b) 1/5 renewable energy credit for each megawatt hour of electricity generated from a renewable energy system, other than wind, at peak demand time as determined by the commission. (c) 1/5 renewable energy credit for each megawatt hour of electricity generated from a renewable energy system during off-peak hours, stored using an energy storage system or a hydroelectric pumped storage facility, and used during peak hours. However, the number of renewable energy credits shall be calculated based on the number of megawatt hours of renewable energy used to charge the energy storage system or fill the pumped storage facility, not the number of megawatt hours actually discharged or generated by discharge from the energy storage system or pumped storage facility. (d) 1/10 renewable energy credit for each megawatt hour of electricity generated from a renewable energy system constructed using equipment made in this state as determined by the commission. The additional credit under this subdivision is available for the first 3 years after the renewable energy system first produces electricity on a commercial basis. (e) 1/10 renewable energy credit for each megawatt hour of electricity from a renewable energy system constructed using a workforce composed of residents of this state as determined by the commission. The additional credit under this subdivision is available for the first 3 years after the renewable energy system first produces electricity on a commercial basis. (3) A renewable energy credit expires at the earliest of the following times: (a) When used by an electric provider to comply with its renewable energy standard. (b) When substituted for an energy waste reduction credit under section 77. (c) Five years after the end of the month in which the renewable energy credit was generated. Sec. 45. (1) For an electric provider whose rates are regulated by the commission, the commission shall determine a revenue recovery mechanism, subject to section 47, for the electric providers tariffs that permit recovery of the incremental cost of compliance to implement the amended renewable energy plan. (2) An electric providers incremental cost of compliance shall be recovered through a revenue recovery mechanism that is designed consistent with the production allocation approved in the providers most recent general rate case under section 6a of 1939 PA 3, MCL 460.6a. An electric provider may propose a revenue recovery mechanism in an amended renewable energy plan to include all or a portion of the electric providers incremental cost of compliance in base rates. If an electric provider proposes to include all or a portion of the incremental cost of compliance in base rates, the commission shall review and approve, approve with modifications, or deny the revenue recovery mechanism proposed by the electric provider. (3) The incremental cost of compliance shall be calculated for a 20-year period beginning with approval of the amended renewable energy plan and may be recovered on a levelized basis. Sec. 47. (1) The commission shall consider all actual costs reasonably and prudently incurred in good faith to implement an amended renewable energy plan by an electric provider whose rates are regulated by the commission to be a cost of service to be recovered by the electric provider. An electric provider whose rates are regulated by the commission shall recover through its retail electric rates all of the electric providers incremental costs of compliance beginning when the electric providers amended renewable energy plan is approved by the commission. The recovery shall include, but is not limited to, the electric providers authorized rate of return on equity for costs approved under this section. The authorized rate of return on equity for costs of any renewable energy system approved through the electric providers amended renewable energy plan to comply with the renewable energy standard in effect before the effective date of the amendatory act that added section 51 shall remain fixed at the rate of return and debt-to-equity ratio that was in effect when the electric providers amended renewable energy plan that first included the renewable energy system was approved by the commission. (2) Incremental costs of compliance shall be calculated as follows: (a) Determine the sum of the following costs to the extent those costs are reasonable and prudent and not already approved for recovery in electric rates as of October 6, 2008: (i) Capital, operating, and maintenance costs of renewable energy systems, including property taxes, insurance, and return on equity associated with an electric providers renewable energy systems, including the electric providers renewable energy portfolio established to achieve compliance with the renewable energy standards and any additional renewable energy systems that are built or acquired by the electric provider to maintain compliance with the renewable energy standards. (ii) Financing costs attributable to capital, operating, and maintenance costs of capital facilities associated with renewable energy systems used to meet the renewable energy standard. (iii) Costs that are not otherwise recoverable in rates approved by the Federal Energy Regulatory Commission and that are related to the infrastructure required to bring renewable energy systems used to achieve compliance with the renewable energy standards on to the transmission system, including interconnection and substation costs for renewable energy systems used to meet the renewable energy standard. (iv) Ancillary service costs determined by the commission to be necessarily incurred to ensure the quality and reliability of renewable energy used to meet the renewable energy standards, regardless of the ownership of a renewable energy system. (v) Except to the extent the costs are allocated under a different subparagraph, all of the following: (A) The costs of renewable energy credits purchased under this act. (B) The costs of contracts described in former section 33(1). (C) The financial compensation mechanism for all renewable energy contracts established under section 28(8). (vi) Expenses incurred as a result of state or federal governmental actions related to renewable energy systems attributable to the renewable energy standards, including changes in tax or other law. (vii) Any additional electric provider costs determined by the commission to be necessarily incurred to ensure the quality and reliability of renewable energy used to meet the renewable energy standards. (b) Subtract from the sum of costs not already included in electric rates determined under subdivision (a) the sum of the following revenues: (i) Revenue derived from the sale of environmental attributes associated with the generation of renewable energy attributable to the renewable energy standards. Such revenue shall not be considered in determining power supply cost recovery factors under section 6j of 1939 PA 3, MCL 460.6j. (ii) Interest on regulatory liabilities. (iii) Tax credits specifically designed to promote renewable energy. (iv) Revenue derived from the provision of renewable energy to retail electric customers subject to a power supply cost recovery clause under section 6j of 1939 PA 3, MCL 460.6j, of an electric provider whose rates are regulated by the commission. After providing an opportunity for a contested case hearing for an electric provider whose rates are regulated by the commission, the commission shall annually establish a price per megawatt hour. An electric provider whose rates are regulated by the commission may at any time petition the commission to revise the price. In setting the price per megawatt hour under this subparagraph, the commission shall consider factors, including, but not limited to, projected capacity, energy, maintenance, and operating costs; information filed under section 6j of 1939 PA 3, MCL 460.6j; and information from wholesale markets, including, but not limited to, locational marginal pricing. This price shall be multiplied by the sum of the number of megawatt hours of renewable energy used to maintain compliance with the renewable energy standard. The product shall be considered a booked cost of purchased and net interchanged power transactions under section 6j of 1939 PA 3, MCL 460.6j. For energy purchased by such an electric provider under a renewable energy contract, the price shall be the lower of the amount established by the commission or the actual price paid and shall be multiplied by the number of megawatt hours of renewable energy purchased. The resulting value shall be considered a booked cost of purchased and net interchanged power under section 6j of 1939 PA 3, MCL 460.6j. (v) Revenue from wholesale renewable energy sales. Such revenue shall not be considered in determining power supply cost recovery factors under section 6j of 1939 PA 3, MCL 460.6j. (vi) Any additional electric provider revenue considered by the commission to be attributable to the renewable energy standards. (vii) Any revenues recovered in rates for renewable energy costs that are included under subdivision (a). (3) The commission shall authorize an electric provider whose rates are regulated by the commission to spend in any given month more to comply with this act and implement an amended renewable energy plan than the revenue actually generated by the revenue recovery mechanism. An electric provider whose rates are regulated by the commission shall recover its commission approved pre-tax rate of return on regulatory assets during the appropriate period. An electric provider whose rates are regulated by the commission shall record interest on regulatory liabilities at the average short-term borrowing rate available to the electric provider during the appropriate period. Any regulatory assets or liabilities resulting from the recovery of costs of renewable energy attributable to renewable energy standards through the power supply cost recovery clause under section 6j of 1939 PA 3, MCL 460.6j, shall continue to be reconciled under that section. (4) The incremental costs of compliance as that term is used in section 61 shall be calculated as provided in this section. Sec. 49. (1) This section applies only to an electric provider whose rates are regulated by the commission and that has recorded a regulatory asset or regulatory liability under this subpart for the last 12 months. The commission shall commence an annual proceeding, to be known as a renewable cost reconciliation, for each electric provider whose rates are regulated by the commission. The renewable cost reconciliation proceeding shall be conducted as a contested case pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. Reasonable discovery shall be permitted before and during the reconciliation proceeding to assist in obtaining evidence concerning reconciliation issues, including, but not limited to, the reasonableness and prudence of expenditures and the amounts collected pursuant to the revenue recovery mechanism. (2) At the renewable cost reconciliation, an electric provider may propose any necessary modifications of the revenue recovery mechanism to ensure the electric providers recovery of its incremental cost of compliance with the renewable energy standards. (3) The commission shall reconcile the pertinent revenues recorded and the allowance for the revenue recovery mechanism with the amounts actually expensed and projected according to the electric providers amended renewable energy plan. The commission shall consider any issue regarding the reasonableness and prudence of expenses for which customers were charged in the relevant reconciliation period. In its order, the commission shall do all of the following: (a) Make a determination of an electric providers compliance with the renewable energy standards. (b) Adjust the revenue recovery mechanism for the incremental costs of compliance. Any regulatory asset or regulatory liability accrued during the reconciliation period shall be used to adjust the revenue recovery mechanism and reflected in the incremental cost of compliance for the following calendar year. (c) Establish the price per megawatt hour for renewable energy capacity and for renewable energy to be recovered through the power supply cost recovery clause under section 6j of 1939 PA 3, MCL 460.6j, as outlined in section 47(2)(b)(iv). (4) In its order in a renewable energy cost reconciliation, the commission shall require an electric provider to adjust the revenue recovery mechanism by any difference between the net amount determined to have been recovered and the net amount needed to recover the electric providers incremental cost of compliance. (5) The commission shall determine the appropriate charges for an electric providers tariffs that permit recovery of the cost of compliance and issue a final order in a renewable energy reconciliation proceeding within 270 days from the date an application is filed by an electric provider. Sec. 51. (1) As a clean energy standard, an electric provider shall achieve a clean energy portfolio of at least the following: (a) In 2035 through 2039, 80%. (b) In 2040 and each year thereafter, 100%. (2) All of the following apply to an electric provider whose rates are regulated by the commission: (a) The electric provider shall submit a plan to comply with the clean energy standard as part of that electric providers integrated resource plans filed under section 6t of 1939 PA 3, MCL 460.6t. The costs of compliance with the clean energy standard are a cost of service and may be recovered as provided by 1939 PA 3, MCL 460.1 to 460.11. (b) The commission may, upon a showing of good cause based on a factor listed in section 32(2), grant the electric provider an extension of a clean energy standard deadline. Each extension shall not exceed 2 years. An extension of a deadline does not affect a subsequent deadline. Upon granting an additional extension for a particular clean energy standard deadline beyond the first 2 extensions, the commission shall notify the speaker of the house, the majority leader of the senate, and the chairpersons of the committees of the legislature having jurisdiction over energy issues that it has granted an additional extension and the reasons for the extension. (c) The electric provider qualifies for a financial incentive for a clean energy contract under section 28(8). (3) All of the following apply to an alternative electric supplier or a cooperative electric utility that has elected to become member-regulated under the electric cooperative member-regulation act, 2008 PA 167, MCL 460.31 to 460.39: (a) An electric provider described in this subsection shall file a proposed clean energy plan with the commission by January 1, 2028. The proposed clean energy plan shall meet all of the following requirements: (i) Describe how the electric provider will meet the clean energy standard. (ii) Specify whether the number of megawatt hours of electricity used in the calculation of the clean energy portfolio will be weather-normalized or based on the average number of megawatt hours of electricity sold by the electric provider annually during the previous 3 years to retail customers in this state. Once the plan is approved by the commission, this option shall not be changed. (b) The commission shall provide an opportunity for public comment on the proposed clean energy plan filed under subdivision (a). After the opportunity for public comment and within 150 days after the proposed clean energy plan is filed with the commission, the commission shall approve, with any changes consented to by the electric provider, or reject the clean energy plan. (c) Every 4 years after initial approval of a clean energy plan under subdivision (b), the commission shall review the clean energy plan. The commission shall provide an opportunity for public comment on the clean energy plan. After the opportunity for public comment, the commission shall approve, with any changes consented to by the electric provider described in this subsection, or reject any proposed amendments to the clean energy plan. (d) If an electric provider described in this subsection proposes to amend its clean energy plan at a time other than during the review process under subdivision (c), the electric provider shall file the proposed amendment with the commission. The commission shall provide an opportunity for public comment on the amendment. After the opportunity for public comment and within 150 days after the amendment is filed, the commission shall approve, with any changes consented to by the electric provider, or reject the amendment. (e) If the commission rejects a proposed clean energy plan or amendment under this subsection, the commission shall explain in writing the reasons for its determination. (f) The commission may, upon a showing of good cause based on a factor listed in section 32(2), grant an alternative electric supplier an extension of a clean energy standard deadline. Each extension shall not exceed 2 years. An extension of a deadline does not affect a subsequent deadline. Upon granting an additional extension for a particular clean energy standard deadline beyond the first 2 extensions, the commission shall notify the speaker of the house, the majority leader of the senate, and the chairpersons of the committees of the legislature having jurisdiction over energy issues that it has granted an additional extension and the reasons for the extension. (g) The governing board of a cooperative electric utility may, upon a demonstration of good cause based on a factor listed in section 32(2), grant an extension of a clean energy standard deadline. Each extension shall not exceed 2 years. An extension of a deadline does not affect a subsequent deadline. Upon granting an additional extension for a particular clean energy standard deadline beyond the first 2 extensions, the governing board of a cooperative electric utility shall notify the commission that it has granted an additional extension and the reasons for the extension. (4) All of the following apply to a municipally owned electric utility: (a) Each municipally owned electric utility shall file a proposed clean energy plan with the commission by July 1, 2028. Two or more municipally owned electric utilities may file jointly for the purposes of compliance with the requirements of this subsection. The proposed clean energy plan shall meet all of the following requirements: (i) Describe how the municipally owned electric utility or a joint filing of municipally owned electric utilities will meet the clean energy standard. (ii) Specify whether the number of megawatt hours of electricity used in the calculation of the clean energy portfolio will be weather-normalized or based on the average number of megawatt hours of electricity sold by the municipally owned electric utility annually during the previous 3 years to retail customers in this state. Once the commission determines that the proposed plan complies with this act, this option shall not be changed. (b) Subject to subdivision (e), the commission shall provide an opportunity for public comment on the proposed clean energy plan filed under subdivision (a). After the applicable opportunity for public comment and within 150 days after the proposed clean energy plan is filed with the commission, the commission shall determine whether the proposed clean energy plan complies with this act. (c) Every 4 years after the commission initially determines under subdivision (b) that a clean energy plan complies with this act, the commission shall review the clean energy plan. Subject to subdivision (e), the commission shall provide an opportunity for public comment on the clean energy plan. After the opportunity for public comment, the commission shall determine whether any amendment to the clean energy plan proposed by the municipally owned electric utility complies with this act. The proposed amendment is adopted if the commission determines that it complies with this act. (d) If a municipally owned electric utility proposes to amend its clean energy plan at a time other than during the review process under subdivision (c), the municipally owned electric utility shall file the proposed amendment with the commission. Subject to subdivision (e), the commission shall provide an opportunity for public comment on the amendment. After the applicable opportunity for public comment and within 150 days after the amendment is filed, the commission shall determine whether the proposed amendment to the clean energy plan complies with this act. The proposed amendment is adopted if the commission determines that it complies with this act. (e) The commission need not provide an opportunity for public comment under subdivision (b), (c), or (d) if the governing body of the municipally owned electric utility has already provided an opportunity for public comment and filed the comments with the commission. (f) If the commission determines that a proposed clean energy plan or amendment under this subsection does not comply with this act, the commission shall explain in writing the reasons for its determination. (g) The governing board of a municipally owned electric utility may, upon a demonstration of good cause based on a factor listed in section 32(2), grant an extension of a clean energy standard deadline. Each extension shall not exceed 2 years. An extension of a deadline does not affect a subsequent deadline. Upon granting an additional extension for a particular clean energy standard deadline beyond the first 2 extensions, the governing board of a municipally owned electric utility shall notify the commission that it has granted an additional extension and the reasons for the extension. (5) By December 1, 2024, the commission shall deliver to the governor, the senate majority leader, the senate minority leader, the speaker of the house of representatives, the minority leader of the house of representatives, and the chairpersons of the senate and house of representatives standing committees with primary responsibility for energy issues a written report detailing all of the following: (a) The unique conditions influencing electric generation, transmission, and demand in the Upper Peninsula. (b) The unique role of the reciprocating internal combustion units placed in service to facilitate the retirement of coal-fired generation located in the Upper Peninsula after the regional transmission organization imposed system support resource charges. (c) Changes in electric demand, including changes from mining-related economic development projects, that may influence the utilization of the reciprocating internal combustion units described in subdivision (b). (d) Options to reduce the carbon intensity of the existing reciprocating internal combustion units described in subdivision (c), with particular focus on how the unique geological conditions within the Upper Peninsula influence the feasibility of deploying clean energy systems. (e) Any other information the commission determines may be relevant to the development of strategies to satisfy the clean energy standard for an electric provider whose rates are regulated by the commission and that owns and operates reciprocating internal commission engine units in the Upper Peninsula. Sec. 53. The attorney general or any customer of a municipally owned electric utility or a cooperative electric utility that is member-regulated under the electric cooperative member-regulation act, 2008 PA 167, MCL 460.31 to 460.39, may commence a civil action for injunctive relief against that municipally owned electric utility or cooperative electric utility if the municipally owned electric utility or cooperative electric utility fails to meet the applicable requirements of this subpart or an order issued or rule promulgated under this subpart. The attorney general or customer shall commence an action under this section in the circuit court for the circuit in which the principal office of the municipally owned electric utility or cooperative electric utility is located. The attorney general or customer shall not file an action under this section unless the attorney general or customer has given the municipally owned electric utility or cooperative electric utility at least 60 days written notice of the intent to sue, the basis for the suit, and the relief sought. Within 30 days after the municipally owned electric utility or cooperative electric utility receives written notice of the intent to sue, the municipally owned electric utility or cooperative electric utility and the attorney general or customer shall meet and make a good-faith attempt to determine if there is a credible basis for the action. The municipally owned electric utility or cooperative electric utility shall take all reasonable and prudent steps necessary to comply with the applicable requirements of this subpart or an order issued or rule promulgated under this subpart within 90 days after the meeting if there is a credible basis for the action. If the parties do not agree as to whether there is a credible basis for the action, the attorney general or customer may proceed to file the suit. When making a determination of whether a credible basis for the action exists, the attorney general or customer shall consider the factors listed in section 32(2). Sec. 101. (1) By December 31, 2029, each electric provider whose rates are regulated by the commission shall petition the commission for any necessary approvals, and each alternative electric supplier shall submit a plan to the commission, to construct or acquire eligible energy storage systems or enter into eligible energy storage contracts to meet its share of a statewide energy storage target of a combined capacity of at least 2,500 megawatts. An electric providers share of the statewide energy storage target shall be apportioned based on the electric providers annual average contribution to in-state retail electric peak load for the 5-year period immediately preceding the filing of the electric providers plan under this subsection. (2) An electric provider whose rates are regulated by the commission shall demonstrate compliance with its plan under subsection (1) as part of the electric providers integrated resource plan filed under section 6t of 1939 PA 3, MCL 460.6t. An alternative electric supplier shall demonstrate compliance with its plan under subsection (1) in the demonstration required under section 6w(8)(b) of 1939 PA 3, MCL 460.6w. (3) An alternative electric supplier may contract with an electric provider whose rates are regulated by the commission to construct the eligible energy storage systems necessary to fulfil the alternative electric suppliers portion of the statewide energy storage target that is attributable to the alternative electric suppliers load within the service territory of the electric provider whose rates are regulated by the commission. An eligible energy storage contract under this subsection shall be filed with the commission. The contract prices may not exceed the cost plus the applicable rate of return for the electric provider whose rates are regulated by the commission. (4) An electric provider whose rates are regulated by the commission shall submit to the commission for review and approval eligible energy storage contracts entered into to meet its share of the statewide storage target under subsection (1). If the commission approves an eligible energy storage contract, the commission shall authorize the electric provider to recover the costs of the contract in the electric providers base rates. An electric provider whose rates are regulated by the commission shall conduct a competitive bidding process before entering an eligible energy storage contract to meet its share of the statewide target under subsection (1). (5) An electric provider whose rates are regulated by the commission qualifies for a financial incentive under section 28(8) for an eligible energy storage contract. (6) This act does not limit the amount of energy storage capacity an electric provider may procure. (7) Within 1 year after the effective date of the amendatory act that added this section, the commission shall complete a study on long-term energy storage systems and multiday energy storage systems. (8) For purposes of this subsection, an energy storage system must have been placed in service on or after the effective date of the amendatory act that added this section. (9) As used in this section: (a) Eligible energy storage contract means a contract to construct, acquire, or use the services of an eligible energy storage system. (b) Eligible energy storage system means an energy storage system that is located within the local resource zone or the locational deliverability area, as defined by the appropriate independent system operator or regional transmission organization, in which the electric provider is subject to capacity demonstration obligations pursuant to section 6w(8)(b) of 1939 PA 3, MCL 460.6w. Sec. 103. By December 31, 2024, and each year thereafter, an electric provider whose rates are regulated by the commission shall submit a report to the commission documenting the centralized and distributed electricity storage systems in its service territory. Sec. 173. (1) The commission shall establish a distributed generation program by order issued by July 19, 2017. The commission may promulgate rules the commission considers necessary to implement this program. Any rules adopted regarding time limits for approval of parallel operation must recognize grid reliability and safety complications including those arising from equipment saturation, use of multiple technologies, and proximity to synchronous motor loads. The program must apply to all electric utilities whose rates are regulated by the commission and alternative electric suppliers in this state. (2) Except as otherwise provided under this part, an electric customer of any class is eligible to interconnect an eligible electric generator with the customers local electric utility and operate the eligible electric generator in parallel with the distribution system. The program must limit each customer to generation capacity designed to meet up to 110% of the customers electricity consumption for the previous 12 months. The commission may waive the application, interconnection, and installation requirements of this part for customers participating in the net metering program under the commissions March 29, 2005 order in case no. U-14346. (3) An electric utility or alternative electric supplier is not required to allow for a distributed generation program that is greater than 10% of its average in-state peak load for the preceding 5 calendar years. The electric utility or alternative electric supplier shall notify the commission if its distributed generation program reaches the 10% limit under this subsection. The 10% limit under this subsection shall be allocated as follows: (a) Not less than 50% for customers with an eligible electric generator capable of generating 20 kilowatts or less. (b) Not more than 50% for customers with an eligible electric generator capable of generating more than 20 kilowatts but not more than 550 kilowatts. (4) Selection of customers for participation in the distributed generation program must be based on the order in which the applications for participation in the program are received by the electric utility or alternative electric supplier. (5) An electric utility or alternative electric supplier shall not discontinue or refuse to provide electric service to a customer solely because the customer participates in the distributed generation program. An electric utility or alternative electric supplier shall not limit the rate schedule under which a customer is served solely because the customer participates in the distributed generation program. (6) The distributed generation program created under subsection (1) must include all of the following: (a) Statewide uniform interconnection requirements for all eligible electric generators. The interconnection requirements must be designed to protect electric utility workers and equipment and the general public. (b) Distributed generation equipment and its installation shall meet all current local and state electric and construction code requirements. Any equipment that is certified by a nationally recognized testing laboratory to IEEE 1547.1-2020 testing standards and in compliance with UL 1741 scope 1.1A and installed in compliance with this part is considered to be compliant. The commission may adopt successor requirements by promulgating rules under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, if the commission determines the successor requirements are reasonable and consistent with the purposes of this subdivision. Within the time provided by the commission in rules promulgated under subsection (1) and consistent with good utility practice, and the protection of electric utility workers, electric utility equipment, and the general public, an electric utility may study, confirm, and ensure that an eligible electric generator installation at the customers site meets the IEEE 1547.1-2020 requirements or any applicable successor requirements adopted by the commission. If necessary to promote grid reliability or safety, the commission may promulgate rules that require the use of inverters that perform specific automated grid-balancing functions to integrate distributed generation onto the electric grid. Inverters that interconnect distributed generation resources may be owned and operated by electric utilities. Both of the following must be completed before the equipment is operated in parallel with the distribution system of the utility: (i) Utility testing and approval of the interconnection, including all metering. (ii) Execution of a parallel operating agreement. (c) A uniform application form and process to be used by all electric utilities and alternative electric suppliers in this state. Customers who are served by an alternative electric supplier shall submit a copy of the application to the electric utility for the customers service area. (d) Distributed generation customers shall pay the retail rates for electricity inflow under the rate schedule under which the customer is served. (7) Distributed generation customers shall receive a monthly bill credit for outflow as determined by the commission. Credits for outflow must reflect cost of service. (8) Each electric utility and alternative electric supplier shall maintain records of all applications and up-to-date records of all active eligible electric generators located within their service area. Sec. 177. (1) An electric meter provided by a utility must be used to determine the amount of the customers inflow and outflow electricity in each pricing period. Eligible customers shall pay only the incremental cost above that for meters provided by the electric utility to similarly situated, nongenerating customers. (2) A distributed generation customer shall be credited by the customers supplier of electric generation service for the outflow during the billing period. The credit must appear on the bill for the following billing period and be limited to the total charges on that bill. Any excess bill credits not used to offset inflow charges in the next billing period will be carried forward to subsequent billing periods. Sec. 191. (1) Subject to subsection (2), to implement this act, the commission shall issue orders or promulgate rules pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. (2) By January 1, 2026, the commission shall issue an order providing formats and guidelines for an electric provider to submit a clean energy plan pursuant to section 51. Enacting section 1. This amendatory act takes effect 90 days after the date it is enacted into law. Secretary of the Senate Clerk of the House of Representatives Approved___________________________________________ ____________________________________________________ Governor |
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| 31 | 31 | | ENROLLED SENATE BILL No. 271 |
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| 33 | 33 | | AN ACT to amend 2008 PA 295, entitled An act to require certain providers of electric service to establish and recover costs for renewable energy programs; to require certain providers of electric or natural gas service to establish energy waste reduction programs; to authorize the use of certain energy systems to meet the requirements of those programs; to provide for the approval of energy waste reduction service companies; to reduce energy waste by state agencies and the public; to create a wind energy resource zone board and provide for its power and duties; to authorize the creation and implementation of wind energy resource zones; to provide for expedited transmission line siting certificates; to provide for customer generation and net metering programs and the responsibilities of certain providers of electric service and customers with respect to customer generation and net metering; to provide for fees; to prescribe the powers and duties of certain state agencies and officials; to require the promulgation of rules and the issuance of orders; to authorize the establishment of residential energy improvement programs by providers of electric or natural gas service; and to provide for civil sanctions, remedies, and penalties, by amending the title, the heading of subpart A of part 2, and sections 1, 3, 5, 7, 9, 11, 13, 22, 28, 29, 39, 45, 47, 49, 173, 177, and 191 (MCL 460.1001, 460.1003, 460.1005, 460.1007, 460.1009, 460.1011, 460.1013, 460.1022, 460.1028, 460.1029, 460.1039, 460.1045, 460.1047, 460.1049, 460.1173, 460.1177, and 460.1191), the title and sections 1, 3, 5, 7, 9, 11, 13, 29, 39, 45, 47, 49, 173, and 177 as amended and sections 22 and 28 as added by 2016 PA 342, and by adding sections 32, 51, 53, 101, and 103. |
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| 34 | 34 | | |
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| 35 | 35 | | The People of the State of Michigan enact: |
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| 36 | 36 | | |
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| 37 | 37 | | TITLE |
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| 38 | 38 | | |
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| 39 | 39 | | An act to require certain providers of electric service to establish and recover costs for renewable energy and clean energy programs; to require certain providers of electric or natural gas service to establish, and recover costs for, energy waste reduction programs; to ensure that any energy cost savings from renewable energy, clean energy, and energy waste reduction programs are ultimately returned to customers; to authorize the use of certain energy systems to meet the requirements of those programs; to provide for the approval of energy waste reduction service companies; to reduce energy waste by state agencies and the public; to create a wind energy resource zone board and provide for its power and duties; to authorize the creation and implementation of wind energy resource zones; to provide for expedited transmission line siting certificates; to provide for customer generation and net metering programs and the responsibilities of certain providers of electric service and customers with respect to customer generation and net metering; to provide for fees; to prescribe the powers and duties of certain state agencies and officials; to require the promulgation of rules and the issuance of orders; to authorize the establishment of residential energy improvement programs by providers of electric or natural gas service; to authorize certification by this state before the construction of certain wind and solar energy facilities and energy storage facilities; to regulate certain local ordinances; and to provide for civil sanctions, remedies, and penalties. |
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| 40 | 40 | | |
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| 41 | 41 | | |
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| 42 | 42 | | |
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| 43 | 43 | | Sec. 1. (1) This act may be cited as the clean and renewable energy and energy waste reduction act. |
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| 44 | 44 | | |
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| 45 | 45 | | (2) The purpose of this act is to promote the development and use of clean and renewable energy resources and the reduction of energy waste through programs that will cost-effectively do all of the following: |
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| 46 | 46 | | |
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| 47 | 47 | | (a) Diversify the resources used to reliably meet the energy needs of consumers in this state. |
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| 48 | 48 | | |
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| 49 | 49 | | (b) Provide greater energy security through the use of indigenous energy resources available within this state. |
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| 50 | 50 | | |
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| 51 | 51 | | (c) Encourage private investment in renewable energy and energy waste reduction. |
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| 52 | 52 | | |
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| 53 | 53 | | (d) Coordinate with federal regulations to provide improved air quality and other benefits to energy consumers and citizens of this state. |
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| 54 | 54 | | |
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| 55 | 55 | | (e) Provide more reliable and resilient energy supplies during periods of extreme weather. |
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| 56 | 56 | | |
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| 57 | 57 | | (3) Pursuant to the reconciliation processes provided for in this act, the commission shall determine the costs and savings resulting from compliance with the renewable energy, clean energy, and energy waste reduction programs required under this act and include those costs and savings in the determination of the rates charged to customers of the electric and natural gas providers. This section does not prohibit the commission from authorizing shared savings or incentive programs as provided for in this act. |
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| 58 | 58 | | |
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| 59 | 59 | | |
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| 60 | 60 | | |
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| 61 | 61 | | Sec. 3. As used in this act: |
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| 62 | 62 | | |
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| 63 | 63 | | (a) Applicable regional transmission organization means a nonprofit, member-based organization governed by an independent board of directors that serves as the regional transmission organization approved by the Federal Energy Regulatory Commission with oversight responsibility for the region that includes the providers service territory. |
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| 64 | 64 | | |
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| 65 | 65 | | (b) Biomass means any organic matter that is not derived from fossil fuels, that can be converted to usable fuel for the production of energy, and that replenishes over a human, not a geological, time frame, including, but not limited to, all of the following: |
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| 66 | 66 | | |
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| 67 | 67 | | (i) Agricultural crops and crop wastes. |
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| 68 | 68 | | |
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| 69 | 69 | | (ii) Short-rotation energy crops. |
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| 70 | 70 | | |
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| 71 | 71 | | (iii) Herbaceous plants. |
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| 72 | 72 | | |
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| 73 | 73 | | (iv) Trees and wood, but only if derived from sustainably managed forests or procurement systems, as defined in section 261c of the management and budget act, 1984 PA 431, MCL 18.1261c. |
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| 74 | 74 | | |
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| 75 | 75 | | (v) Paper and pulp products. |
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| 76 | 76 | | |
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| 77 | 77 | | (vi) Precommercial wood thinning waste, brush, or yard waste. |
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| 78 | 78 | | |
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| 79 | 79 | | (vii) Wood wastes and residues from the processing of wood products or paper. |
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| 80 | 80 | | |
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| 81 | 81 | | (viii) Animal wastes. |
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| 82 | 82 | | |
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| 83 | 83 | | (ix) Wastewater sludge or sewage. |
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| 84 | 84 | | |
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| 85 | 85 | | (x) Aquatic plants. |
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| 86 | 86 | | |
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| 87 | 87 | | (xi) Food production and processing waste. |
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| 88 | 88 | | |
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| 89 | 89 | | (xii) Organic by-products from the production of biofuels. |
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| 90 | 90 | | |
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| 91 | 91 | | (c) Board means the wind energy resource zone board created under section 143. |
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| 92 | 92 | | |
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| 93 | 93 | | (d) Carbon capture and storage means a process that involves collecting carbon dioxide at its source and storing, or sequestering, it to prevent its release into the atmosphere. |
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| 94 | 94 | | |
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| 95 | 95 | | (e) Clean energy means electricity or steam generated using a clean energy system. |
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| 96 | 96 | | |
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| 97 | 97 | | (f) Clean energy plan means an electric providers plan to meet the clean energy standard approved under section 51. |
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| 98 | 98 | | |
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| 99 | 99 | | (g) Clean energy portfolio means the percentage of an electric providers total retail electric sales consisting of clean energy or renewable energy. |
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| 100 | 100 | | |
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| 101 | 101 | | (h) Clean energy standard means the clean energy portfolio required under section 51(1). |
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| 102 | 102 | | |
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| 103 | 103 | | (i) Clean energy system means an electricity generation facility or system or set of electricity generation systems that meets any of the following requirements: |
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| 104 | 104 | | |
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| 105 | 105 | | (i) Generates electricity or steam without emitting greenhouse gas, including nuclear generation. |
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| 106 | 106 | | |
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| 107 | 107 | | (ii) Is fueled by natural gas and uses carbon capture and storage that is at least 90% effective in capturing and permanently storing carbon dioxide. If the department of environment, Great Lakes, and energy determines, through a facility-specific major source permitting analysis consistent with applicable United States Environmental Protection Agency rules, that a capture rate higher than 90% meets the best available control technology standard, as applicable, that higher percentage shall be used instead of 90% for facilities permitted after the effective date of the amendatory act that added section 51. Using carbon dioxide for enhanced oil recovery is not considered to be permanent storage for the purposes of this subparagraph. |
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| 108 | 108 | | |
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| 109 | 109 | | (iii) Is an independently owned combined cycle power plant fueled by natural gas that has a power purchase agreement with an electric provider as of the effective date of the amendatory act that added this subparagraph and that by 2030 receives approval from the commission for a plan that achieves functional equivalence with the clean energy standard in section 51(1)(b) through reduction of greenhouse gas emissions using carbon capture and sequestration and other available applications, including, but not limited to, carbon removal technologies. In reviewing and approving a plan submitted under this subparagraph, the commission shall consider best available technology and applications as well as rate affordability, resource adequacy, and grid reliability. |
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| 110 | 110 | | |
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| 111 | 111 | | (iv) Is defined as a clean energy system in rules adopted by the commission consistent with the purposes of this subdivision. |
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| 112 | 112 | | |
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| 113 | 113 | | (j) Commission means the Michigan public service commission. |
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| 114 | 114 | | |
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| 115 | 115 | | (k) Customer meter means an electric meter of a providers retail customer. Customer meter does not include a municipal water pumping meter or additional meters at a single site that were installed specifically to support interruptible air conditioning, interruptible water heating, net metering, or time-of-day tariffs. |
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| 116 | 116 | | |
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| 117 | 117 | | (l) Distributed generation means the generation of electricity under the distributed generation program. |
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| 118 | 118 | | |
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| 119 | 119 | | (m) Distributed generation program means the program established by the commission under section 173. |
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| 120 | 120 | | |
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| 121 | 121 | | |
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| 122 | 122 | | |
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| 123 | 123 | | Sec. 5. As used in this act: |
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| 124 | 124 | | |
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| 125 | 125 | | (a) Efficient electrification measure means an electric appliance or equipment installed in an existing building to electrify, in whole or in part, space heating, water heating, cooling, drying, cooking, industrial processes, or another building or industrial end use that would otherwise be served by combustion of fossil fuel on the premises and that meets best-practice standards for cost-effective energy efficiency as determined by the commission. Efficient electrification measure includes, but is not limited to, any of the following: |
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| 126 | 126 | | |
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| 127 | 127 | | (i) A cold-climate air-source heat pump. |
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| 128 | 128 | | |
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| 129 | 129 | | (ii) An electric clothes dryer. |
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| 130 | 130 | | |
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| 131 | 131 | | (iii) A ground-source heat pump. |
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| 132 | 132 | | |
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| 133 | 133 | | (iv) High-efficiency electric cooking equipment. |
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| 134 | 134 | | |
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| 135 | 135 | | (v) A heat pump or high-efficiency electric water heater. |
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| 136 | 136 | | |
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| 137 | 137 | | (b) Efficient electrification measures plan means a plan to offer and promote efficient electrification measures. |
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| 138 | 138 | | |
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| 139 | 139 | | (c) Efficient electrification measures program means a program to implement an efficient electrification measures plan. |
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| 140 | 140 | | |
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| 141 | 141 | | (d) Electric provider means any of the following: |
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| 142 | 142 | | |
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| 143 | 143 | | (i) Any person or entity that is regulated by the commission for the purpose of selling electricity to retail customers in this state. |
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| 144 | 144 | | |
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| 145 | 145 | | (ii) A municipally owned electric utility in this state. |
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| 146 | 146 | | |
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| 147 | 147 | | (iii) A cooperative electric utility in this state. |
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| 148 | 148 | | |
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| 149 | 149 | | (iv) Except as used in subpart C of part 2, an alternative electric supplier licensed under section 10a of 1939 PA 3, MCL 460.10a. |
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| 150 | 150 | | |
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| 151 | 151 | | (e) Eligible electric generator means a methane digester or renewable energy system with a generation capacity limited to 110% of the customers electricity consumption for the previous 12 months. |
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| 152 | 152 | | |
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| 153 | 153 | | (f) Energy conservation means the reduction of customer energy use through the installation of measures or changes in energy usage behavior. |
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| 154 | 154 | | |
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| 155 | 155 | | (g) Energy efficiency means a decrease in customer consumption of electricity or natural gas achieved through measures or programs that target customer behavior, equipment, devices, or materials without reducing the quality of energy services. |
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| 156 | 156 | | |
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| 157 | 157 | | (h) Energy star means the voluntary partnership among the United States Department of Energy, the United States Environmental Protection Agency, product manufacturers, local utilities, and retailers to help promote energy efficient products by labeling with the energy star logo, educate consumers about the benefits of energy efficiency, and help promote energy efficiency in buildings by benchmarking and rating energy performance. |
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| 158 | 158 | | |
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| 159 | 159 | | (i) Energy storage system means any technology that is capable of absorbing energy, storing the energy for a period of time, and redelivering the energy. Energy storage system does not include either of the following: |
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| 160 | 160 | | |
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| 161 | 161 | | (i) Fossil fuel storage. |
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| 162 | 162 | | |
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| 163 | 163 | | (ii) Power-to-gas storage that directly uses fossil fuel inputs. |
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| 164 | 164 | | |
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| 165 | 165 | | (j) Energy waste reduction, subject to subdivision (k), means all of the following: |
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| 166 | 166 | | |
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| 167 | 167 | | (i) Energy efficiency. |
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| 168 | 168 | | |
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| 169 | 169 | | (ii) Load management, to the extent that the load management reduces provider costs. |
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| 170 | 170 | | |
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| 171 | 171 | | (iii) Energy conservation, but only to the extent that the decreases in the consumption of electricity produced by energy conservation are objectively measurable and attributable to an energy waste reduction plan. |
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| 172 | 172 | | |
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| 173 | 173 | | (k) Energy waste reduction does not include electric provider infrastructure projects that are approved for cost recovery by the commission other than as provided in this act. |
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| 174 | 174 | | |
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| 175 | 175 | | (l) Energy waste reduction credit means a credit certified pursuant to section 87 that represents achieved energy waste reduction. |
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| 176 | 176 | | |
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| 177 | 177 | | (m) Energy waste reduction plan means a plan under section 71. |
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| 178 | 178 | | |
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| 179 | 179 | | (n) Energy waste reduction standard means the minimum energy savings required to be achieved under section 77. |
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| 180 | 180 | | |
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| 181 | 181 | | (o) Federal approval means approval by the applicable regional transmission organization or other Federal Energy Regulatory Commission-approved transmission planning process of a transmission project that includes the transmission line. Federal approval may be evidenced in any of the following manners: |
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| 182 | 182 | | |
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| 183 | 183 | | (i) The proposed transmission line is part of a transmission project included in the applicable regional transmission organizations board-approved transmission expansion plan. |
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| 184 | 184 | | |
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| 185 | 185 | | (ii) The applicable regional transmission organization has informed the electric utility, affiliated transmission company, or independent transmission company that a transmission project submitted for an out-of-cycle project review has been approved by the applicable regional transmission organization, and the approved transmission project includes the proposed transmission line. |
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| 186 | 186 | | |
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| 187 | 187 | | (iii) If, after October 6, 2008, the applicable regional transmission organization utilizes another approval process for transmission projects proposed by an electric utility, affiliated transmission company, or independent transmission company, the proposed transmission line is included in a transmission project approved by the applicable regional transmission organization through the approval process developed after October 6, 2008. |
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| 188 | 188 | | |
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| 189 | 189 | | (iv) Any other Federal Energy Regulatory Commission-approved transmission planning process for a transmission project. |
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| 190 | 190 | | |
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| 191 | 191 | | |
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| 192 | 192 | | |
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| 193 | 193 | | Sec. 7. As used in this act: |
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| 194 | 194 | | |
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| 195 | 195 | | (a) Greenhouse gas means carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, or sulfur hexafluoride. |
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| 196 | 196 | | |
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| 197 | 197 | | (b) Grid reliability means the ability, as defined by the regional transmission organization, of the bulk power system to withstand sudden, unexpected disturbances, such as short circuits or unanticipated loss of system elements because of natural causes. |
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| 198 | 198 | | |
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| 199 | 199 | | (c) Incremental costs of compliance means the net revenue required by an electric provider to comply with the renewable energy standard, calculated as provided under section 47. |
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| 200 | 200 | | |
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| 201 | 201 | | (d) Independent transmission company means that term as defined in section 2 of the electric transmission line certification act, 1995 PA 30, MCL 460.562. |
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| 202 | 202 | | |
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| 203 | 203 | | (e) LEED means the leadership in energy and environmental design green building rating system developed by the United States Green Building Council. |
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| 204 | 204 | | |
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| 205 | 205 | | (f) Load management means measures or programs that target equipment or behavior to result in decreased peak electricity demand such as by shifting demand from a peak to an off-peak period. |
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| 206 | 206 | | |
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| 207 | 207 | | (g) Long-duration energy storage system means an energy storage system capable of continuously discharging electricity at its full rated capacity for more than 10 hours. |
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| 208 | 208 | | |
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| 209 | 209 | | (h) Low-income residential customer means a customer that meets any of the following requirements: |
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| 210 | 210 | | |
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| 211 | 211 | | (i) The customers household income does not exceed 250% of the federal poverty line, as published by the United States Department of Health and Human Services under its authority to revise the poverty line under 42 USC 9902. |
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| 212 | 212 | | |
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| 213 | 213 | | (ii) The customers household income does not exceed 80% of the adjusted median income as determined by the United States Department of Housing and Urban Development. |
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| 214 | 214 | | |
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| 215 | 215 | | (iii) The customer is enrolled in a federal, state, or local program with similar income eligibility requirements, including, but not limited to, an emergency relief or food assistance program or Medicaid. |
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| 216 | 216 | | |
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| 217 | 217 | | (i) Megawatt, megawatt hour, or megawatt hour of electricity, unless the context implies otherwise, includes the steam equivalent of a megawatt or megawatt hour of electricity. |
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| 218 | 218 | | |
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| 219 | 219 | | (j) Modified net metering means a utility billing method that applies the power supply component of the full retail rate to the net of the bidirectional flow of kilowatt hours across the customer interconnection with the utility distribution system, during a billing period or time-of-use pricing period. A negative net metered quantity during the billing period or during each time-of-use pricing period within the billing period reflects net excess generation for which the customer is entitled to receive credit under section 177(2). Under modified net metering, standby charges for distributed generation customers on an energy rate schedule shall be equal to the retail distribution charge applied to the imputed customer usage during the billing period. The imputed customer usage is calculated as the sum of the metered on-site generation and the net of the bidirectional flow of power across the customer interconnection during the billing period. The commission shall establish standby charges under modified net metering for distributed generation customers on demand-based rate schedules that provide an equivalent contribution to utility system costs. A charge for net metering and distributed generation customers established pursuant to section 6a of 1939 PA 3, MCL 460.6a, shall not be recovered more than once. |
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| 220 | 220 | | |
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| 221 | 221 | | (k) Multiday energy storage system means an energy storage system capable of continuously discharging electricity at its full rated capacity for more than 24 hours. |
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| 222 | 222 | | |
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| 223 | 223 | | |
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| 224 | 224 | | |
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| 225 | 225 | | Sec. 9. As used in this act: |
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| 226 | 226 | | |
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| 227 | 227 | | (a) Natural gas provider means an investor-owned business engaged in the sale and distribution at retail of natural gas within this state whose rates are regulated by the commission. |
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| 228 | 228 | | |
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| 229 | 229 | | (b) Pet coke means a solid carbonaceous residue produced from a coker after cracking and distillation from petroleum refining operations. |
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| 230 | 230 | | |
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| 231 | 231 | | (c) Provider means an electric provider or a natural gas provider. |
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| 232 | 232 | | |
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| 233 | 233 | | (d) PURPA means the public utility regulatory policies act of 1978, Public Law 95-617. |
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| 234 | 234 | | |
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| 235 | 235 | | |
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| 236 | 236 | | |
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| 237 | 237 | | Sec. 11. As used in this act: |
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| 238 | 238 | | |
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| 239 | 239 | | (a) Renewable energy means electricity or steam generated using a renewable energy system. |
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| 240 | 240 | | |
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| 241 | 241 | | (b) Renewable energy contract means a contract to acquire renewable energy and the associated renewable energy credits from 1 or more renewable energy systems. |
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| 242 | 242 | | |
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| 243 | 243 | | (c) Renewable energy credit means a credit granted under a certification and tracking program established under section 41, which represents generated renewable energy. |
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| 244 | 244 | | |
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| 245 | 245 | | (d) Renewable energy credit portfolio means the sum of the renewable energy credits achieved by a provider for a particular year. |
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| 246 | 246 | | |
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| 247 | 247 | | (e) Renewable energy credit standard means a minimum renewable energy credit portfolio required under section 28 or former section 27. |
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| 248 | 248 | | |
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| 249 | 249 | | (f) Renewable energy plan or plan means a plan approved under section 22 or former section 21 or 23 or found to comply with this act under former section 25, with any amendments adopted under this act. |
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| 250 | 250 | | |
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| 251 | 251 | | (g) Renewable energy resource means a resource that naturally replenishes over a human, not a geological, time frame and that is ultimately derived from solar power, water power, or wind power. Renewable energy resource does not include petroleum, nuclear, natural gas, industrial waste, post-use polymers, tires, tire-derived fuel, plastic, or coal. A renewable energy resource comes from the sun or from thermal inertia of the earth and minimizes the output of toxic material in the conversion of the energy and includes, but is not limited to, all of the following: |
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| 252 | 252 | | |
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| 253 | 253 | | (i) Biomass, as described in any of the following: |
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| 254 | 254 | | |
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| 255 | 255 | | (A) Landfill gas as described in subparagraph (vii). |
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| 256 | 256 | | |
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| 257 | 257 | | (B) Gas from a methane digester using only feedstock as described in subparagraph (viii). |
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| 258 | 258 | | |
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| 259 | 259 | | (C) Biomass used by renewable energy systems that are in commercial operation on the effective date of the amendatory act that added section 51. |
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| 260 | 260 | | |
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| 261 | 261 | | (D) Trees and wood used in renewable energy systems that are placed in commercial operation after the effective date of the amendatory act that added section 51, if the trees and wood are derived from sustainably managed forests or procurement systems, as defined in section 261c of the management and budget act, 1984 PA 431, MCL 18.1261c. |
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| 262 | 262 | | |
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| 263 | 263 | | (ii) Solar and solar thermal energy. |
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| 264 | 264 | | |
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| 265 | 265 | | (iii) Wind energy. |
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| 266 | 266 | | |
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| 267 | 267 | | (iv) Kinetic energy of moving water, including all of the following: |
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| 268 | 268 | | |
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| 269 | 269 | | (A) Waves, tides, or currents. |
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| 270 | 270 | | |
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| 271 | 271 | | (B) Water released through a dam. |
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| 272 | 272 | | |
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| 273 | 273 | | (v) Geothermal energy. |
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| 274 | 274 | | |
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| 275 | 275 | | (vi) Thermal energy produced from a geothermal heat pump. |
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| 276 | 276 | | |
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| 277 | 277 | | (vii) Landfill gas produced from solid waste facilities. |
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| 278 | 278 | | |
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| 279 | 279 | | (viii) Any of the following if used as feedstock in a methane digester: |
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| 280 | 280 | | |
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| 281 | 281 | | (A) Municipal wastewater treatment sludge, wastewater, and sewage. |
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| 282 | 282 | | |
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| 283 | 283 | | (B) Food waste and food production and processing waste. |
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| 284 | 284 | | |
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| 285 | 285 | | (C) Animal manure. |
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| 286 | 286 | | |
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| 287 | 287 | | (D) Organics separated from municipal solid waste. |
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| 288 | 288 | | |
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| 289 | 289 | | (h) Renewable energy standard means the minimum renewable energy capacity portfolio, if applicable, and the renewable energy credit portfolio required to be achieved under section 28 or former section 27. |
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| 290 | 290 | | |
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| 291 | 291 | | (i) Renewable energy system means a facility, electricity generation system, or set of electricity generation systems that use 1 or more renewable energy resources to generate electricity or steam. Renewable energy system includes the following: |
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| 292 | 292 | | |
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| 293 | 293 | | (i) A landfill gas recovery and electricity generation facility located in a landfill whose operator employs best practices for methane gas collection and control and emissions monitoring, as determined by the department of environment, Great Lakes, and energy. |
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| 294 | 294 | | |
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| 295 | 295 | | (ii) A methane digester, if it processes only 1 or more of the following: |
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| 296 | 296 | | |
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| 297 | 297 | | (A) Municipal wastewater treatment sludge, wastewater, or sewage. |
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| 298 | 298 | | |
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| 299 | 299 | | (B) Food waste or food production and processing waste. |
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| 300 | 300 | | |
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| 301 | 301 | | (C) Animal manure. |
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| 302 | 302 | | |
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| 303 | 303 | | (D) Organics separated from municipal solid waste. |
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| 304 | 304 | | |
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| 305 | 305 | | (iii) A facility or generation system or set of systems that is placed in commercial operation after the effective date of the amendatory act that added section 51, but only if the facility or generation system or set of systems uses as feedstock trees and wood derived from sustainably managed forests or procurement systems, as defined in section 261c of the management and budget act, 1984 PA 431, MCL 18.1261c. |
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| 306 | 306 | | |
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| 307 | 307 | | (j) Renewable energy system does not include any of the following: |
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| 308 | 308 | | |
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| 309 | 309 | | (i) A hydroelectric pumped storage facility. |
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| 310 | 310 | | |
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| 311 | 311 | | (ii) A hydroelectric facility that uses a dam constructed after October 6, 2008 unless the dam is a repair or replacement of a dam in existence on October 6, 2008 or an upgrade of a dam in existence on October 6, 2008 that increases its energy efficiency. |
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| 312 | 312 | | |
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| 313 | 313 | | (iii) An incinerator. This subparagraph does not apply before 2040 to an incinerator that was generating power before January 1, 2023, unless the incinerator is expanded. |
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| 314 | 314 | | |
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| 315 | 315 | | (iv) A gasification facility. |
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| 316 | 316 | | |
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| 317 | 317 | | (v) A facility that cofires biomass with tires or tire-derived fuel. |
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| 318 | 318 | | |
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| 319 | 319 | | (k) Resource adequacy describes having sufficient resources to provide customers with a continuous supply of electricity at the proper voltage and frequency, virtually always and across a range of reasonably foreseeable conditions. |
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| 320 | 320 | | |
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| 321 | 321 | | (l) Revenue recovery mechanism means the mechanism for recovery of incremental costs of compliance provided for under section 22. |
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| 322 | 322 | | |
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| 323 | 323 | | Sec. 13. As used in this act: |
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| 324 | 324 | | |
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| 325 | 325 | | (a) Site means, except as used in part 8, a contiguous site, regardless of the number of meters at that site. A site that would be contiguous but for the presence of a street, road, or highway is considered to be contiguous for the purposes of this subdivision. |
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| 326 | 326 | | |
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| 327 | 327 | | (b) Transmission line means all structures, equipment, and real property necessary to transfer electricity at system bulk supply voltage of 100 kilovolts or more. |
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| 328 | 328 | | |
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| 329 | 329 | | (c) Utility system resource cost test means a standard that is met for an investment in energy waste reduction if, on a life cycle basis, using a real societal discount rate based on actual long-term United States treasury bond yields, the total avoided supply-side costs to the provider, including representative values for electricity or natural gas supply, transmission, distribution, and other associated costs, are greater than the total costs to the provider of administering and delivering the energy waste reduction program, including net costs for any provider incentives paid by customers and capitalized costs recovered under section 89. |
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| 330 | 330 | | |
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| 331 | 331 | | (d) Wind energy conversion system means a system that uses 1 or more wind turbines to generate electricity and has a nameplate capacity of 100 kilowatts or more. |
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| 332 | 332 | | |
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| 333 | 333 | | (e) Wind energy resource zone or wind zone means an area designated by the commission under section 147. |
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| 334 | 334 | | |
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| 335 | 335 | | |
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| 336 | 336 | | |
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| 337 | 337 | | PART 2 |
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| 338 | 338 | | |
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| 339 | 339 | | |
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| 340 | 340 | | |
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| 341 | 341 | | ENERGY STANDARDS |
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| 342 | 342 | | |
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| 343 | 343 | | |
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| 344 | 344 | | |
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| 345 | 345 | | SUBPART A |
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| 346 | 346 | | |
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| 347 | 347 | | |
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| 348 | 348 | | |
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| 349 | 349 | | RENEWABLE AND CLEAN ENERGY |
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| 350 | 350 | | |
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| 351 | 351 | | |
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| 352 | 352 | | |
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| 353 | 353 | | Sec. 22. (1) Renewable energy plans and associated revenue recovery mechanisms filed by an electric provider, approved under former section 21 or 23 or found to comply with this act under former section 25 and in effect on the effective date of the amendatory act that added section 51, remain in effect, subject to amendments under subsection (3) or (4). |
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| 354 | 354 | | |
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| 355 | 355 | | (2) For an electric provider whose rates are regulated by the commission, amended renewable energy plans shall establish a mechanism for the recovery of the incremental costs of compliance within the electric providers customer rates. The revenue recovery mechanism is subject to adjustment in amended renewable energy plans under subsection (3) or (4) or as provided in section 49. |
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| 356 | 356 | | |
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| 357 | 357 | | (3) Within 1 year after the effective date of the amendatory act that added section 51, and within 2 years after the commission issues an order approving the electric providers last amended renewable energy plan, an electric provider shall file an amended renewable energy plan that includes a forecast of the renewable energy resources needed to comply with the renewable energy credit standard pursuant to a filing schedule established by the commission. For an electric provider whose rates are regulated by the commission, the commission shall conduct a contested case hearing on the amended renewable energy plan pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. After the hearing, the commission shall approve, with any changes consented to by the electric provider, or reject the amended renewable energy plan. For all other electric providers, the commission shall provide an opportunity for public comment on the amended renewable energy plan. After the applicable opportunity for public comment, the commission shall determine whether any amendment to the renewable energy plan proposed by the provider complies with this act. For alternative electric suppliers, the commission shall approve, with any changes consented to by the electric provider, or reject any proposed amendments to the renewable energy plan. For each amended renewable energy plan filed by an electric provider, the commission shall issue a final order within 300 days after the date the amended renewable energy plan was filed with the commission. For cooperative electric utilities and municipally owned utilities, the proposed amendment is adopted if the commission determines that it complies with this act. |
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| 358 | 358 | | |
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| 359 | 359 | | (4) If an electric provider proposes to amend its renewable energy plan at a time other than a scheduled review process under subsection (3), the electric provider shall file the proposed amendment with the commission. For an electric provider whose rates are regulated by the commission, if the proposed amendment would modify the revenue recovery mechanism, the commission shall conduct a contested case hearing on the amendment pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. After the hearing and within 180 days after the amendment is filed, the commission shall approve, with any changes consented to by the electric provider, or reject the proposed amendment or amendments to the renewable energy plan. For all other electric providers, the commission shall provide an opportunity for public comment on the amendment. After the applicable opportunity for public comment and within 180 days after the amendment is filed, the commission shall determine whether the proposed amendment to the renewable energy plan complies with this act. For alternative electric suppliers, the commission shall approve, with any changes consented to by the electric provider, or reject any proposed amendments to the renewable energy plan. For cooperative electric utilities and municipally owned utilities, the proposed amendment is adopted if the commission determines that it complies with this act. |
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| 360 | 360 | | |
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| 361 | 361 | | (5) For an electric provider whose rates are regulated by the commission, the commission shall approve amendments to the renewable energy plan if the commission determines both of the following: |
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| 362 | 362 | | |
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| 363 | 363 | | (a) That the amended renewable energy plan is reasonable and prudent. In making this determination, the commission shall take into consideration projected costs and whether or not projected costs in prior amended renewable energy plans were exceeded. |
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| 364 | 364 | | |
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| 365 | 365 | | (b) That the amended renewable energy plan is consistent with the purpose set forth in section 1(2) and meets the renewable energy credit standard. |
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| 366 | 366 | | |
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| 367 | 367 | | (6) For an electric provider whose rates are regulated by the commission, the commission shall review the projected costs of the renewable energy plan and approve, in whole or in part, the projected costs if the commission finds those projected costs, in whole or in part, to be reasonable and prudent. In making this determination, the commission shall consider whether projected costs in prior renewable energy plans were exceeded. |
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| 368 | 368 | | |
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| 369 | 369 | | (7) If the commission rejects a proposed renewable energy plan, an amendment, or projected costs under this section, the commission shall explain in writing the reasons for its determination. |
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| 370 | 370 | | |
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| 371 | 371 | | |
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| 372 | 372 | | |
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| 373 | 373 | | Sec. 28. (1) An electric provider shall achieve a renewable energy credit portfolio of at least the following: |
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| 374 | 374 | | |
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| 375 | 375 | | (a) Through 2029, 15%. |
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| 376 | 376 | | |
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| 377 | 377 | | (b) In 2030 through 2034, 50%. |
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| 378 | 378 | | |
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| 379 | 379 | | (c) In 2035 and each year thereafter, 60%. |
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| 380 | 380 | | |
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| 381 | 381 | | (2) An electric providers renewable energy credit portfolio shall be calculated as follows: |
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| 382 | 382 | | |
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| 383 | 383 | | (a) Determine the number of renewable energy credits used to comply with this subpart during the applicable year. |
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| 384 | 384 | | |
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| 385 | 385 | | (b) Divide by 1 of the following at the option of the electric provider as specified in its renewable energy plan: |
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| 386 | 386 | | |
|---|
| 387 | 387 | | (i) The number of weather normalized megawatt hours of electricity sold by the electric provider during the previous year to retail customers in this state, less the amount of sales attributable to customers participating in an electric providers voluntary green pricing program under section 61 and the outflow from customers participating in the distributed generation program under section 173 for that year. |
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| 388 | 388 | | |
|---|
| 389 | 389 | | (ii) The average number of megawatt hours of electricity sold by the electric provider annually during the previous 3 years to retail customers in this state, less the amount of sales attributable to customers participating in an electric providers voluntary green pricing program under section 61 and the outflow from customers participating in the distributed generation program under section 173 for that year. |
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| 390 | 390 | | |
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| 391 | 391 | | (c) Multiply the quotient under subdivision (b) by 100. |
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| 392 | 392 | | |
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| 393 | 393 | | (3) Notwithstanding subsection (1) and subject to subsection (4), in any year a cooperative electric provider or a multistate electric provider may calculate its maximum renewable energy credit portfolio requirement as follows: |
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| 394 | 394 | | |
|---|
| 395 | 395 | | (a) Determine the number of megawatt hours of electricity sold by the electric provider to retail customers in this state using the option the electric provider selected under subsection (2)(b). |
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| 396 | 396 | | |
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| 397 | 397 | | (b) Subtract the number of megawatt hours of nuclear energy that the electric provider obtained from a system located in this state that the electric provider owned or from which the electric provider had contracted to receive nuclear energy on or before January 1, 2024. |
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| 398 | 398 | | |
|---|
| 399 | 399 | | (4) An electric provider described in subsection (3) is required to achieve a renewable energy credit portfolio equal only to the electric providers maximum renewable energy credit portfolio requirement if the electric providers maximum renewable energy credit portfolio requirement is less than the number of renewable energy credits required to comply with the applicable standard in subsection (1). If the electric provider is a multistate electric provider, and the electric providers maximum renewable energy credit portfolio requirement is less than the number of renewable energy credits required to comply with the applicable standard in subsection (1), then the electric provider is required to achieve a renewable energy credit portfolio equal only to the electric providers maximum renewable energy credit portfolio requirement if all of the following requirements are met: |
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| 400 | 400 | | |
|---|
| 401 | 401 | | (a) The electric providers electricity generation systems located within this state produce energy exceeding the electric providers electricity sales in this state. |
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| 402 | 402 | | |
|---|
| 403 | 403 | | (b) All of the electric providers electricity generation systems located within this state are clean energy systems. |
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| 404 | 404 | | |
|---|
| 405 | 405 | | (c) All of the renewable energy credits generated in this state are used by the electric provider toward compliance with the renewable energy credit portfolio as calculated under subsection (2). |
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| 406 | 406 | | |
|---|
| 407 | 407 | | (d) Renewable energy and clean energy generated in this state equal to or exceeding the providers electricity sales in this state are not used by the provider or any other provider to comply with any similar standards. |
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| 408 | 408 | | |
|---|
| 409 | 409 | | (5) Each electric provider shall meet the renewable energy credit standard, subject to subsection (3), with renewable energy credits obtained by any of the following means: |
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| 410 | 410 | | |
|---|
| 411 | 411 | | (a) Generating electricity from renewable energy systems for sale to retail customers. |
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| 412 | 412 | | |
|---|
| 413 | 413 | | (b) Purchasing or otherwise acquiring renewable energy and capacity. |
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| 414 | 414 | | |
|---|
| 415 | 415 | | (c) Purchasing or otherwise acquiring renewable energy credits without the associated renewable energy or capacity. Renewable energy credits acquired under this subdivision shall be produced within the territory of the regional transmission organization of which the electric provider is a member, and, except for a municipally owned electric utility, shall not exceed 5% of an electric providers renewable energy credits annually used to comply with the renewable energy standard. Renewable energy credits acquired under this subdivision are not subject to the requirements of section 29 and shall not be used to comply with the renewable energy standard after 2035. |
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| 416 | 416 | | |
|---|
| 417 | 417 | | (6) For an electric provider whose rates are regulated by the commission, the electric provider shall submit a contract entered into for the purposes of subsection (5) to the commission for review and approval. If the commission approves the contract, it is considered consistent with the electric providers renewable energy plan. The commission shall not approve a contract based on an unsolicited proposal unless the commission determines that the unsolicited proposal provides opportunities that may not otherwise be available or commercially practical through a competitive bid process. |
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| 418 | 418 | | |
|---|
| 419 | 419 | | (7) An electric provider that has achieved annual incremental energy savings of greater than 2% under an energy waste reduction plan approved under section 73 may substitute energy waste reduction credits for renewable energy credits otherwise required to meet the renewable energy credit standard if the substitution is approved by the commission. Under this subsection, energy waste reduction credits shall not be used by a provider to meet more than 10% of the renewable energy credit standard. One renewable energy credit shall be awarded per 1 energy waste reduction credit. |
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| 420 | 420 | | |
|---|
| 421 | 421 | | (8) If an electric provider whose rates are regulated by the commission enters into a purchase power agreement for renewable energy resources or a third-party contract for an energy storage system or clean energy system with an entity that is not an affiliate, the commission shall authorize an annual financial incentive for the electric provider. The financial incentive shall be calculated as the product of contract payments in that year multiplied by the electric providers pre-tax weighted average cost of permanent capital comprised of long-term debt obligations and equity of the electric providers total capital structure as determined by the commissions final order in the electric providers most recent general rate case. The pre-tax weighted average cost of permanent capital used to calculate the financial incentive shall not be fixed throughout the entire term of the contract at the pre-tax weighted average cost of capital applicable in the first year but shall be updated based on the commissions final order in each succeeding general rate case for the electric provider. The financial incentive shall apply to each contract described in this subsection from the date the contract is executed for the entire term of the contract. This subsection applies to any contract entered into after June 30, 2024. |
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| 422 | 422 | | |
|---|
| 423 | 423 | | (9) As used in this section, cooperative electric provider means an entity that is a member of or that purchases energy from an entity that is either of the following: |
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| 424 | 424 | | |
|---|
| 425 | 425 | | (a) Organized as a cooperative corporation under sections 98 to 109 of 1931 PA 327, MCL 450.98 to 450.109. |
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| 426 | 426 | | |
|---|
| 427 | 427 | | (b) A cooperative corporation in the business of generating or transmitting electricity. |
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| 428 | 428 | | |
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| 429 | 429 | | |
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| 430 | 430 | | |
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| 431 | 431 | | Sec. 29. (1) Subject to subsections (2) to (4), a renewable energy system that is the source of renewable energy credits used to satisfy the renewable energy standards shall be located as described in either of the following: |
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| 432 | 432 | | |
|---|
| 433 | 433 | | (a) Anywhere in this state. |
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| 434 | 434 | | |
|---|
| 435 | 435 | | (b) Outside of this state, but only if the electric provider includes the capacity from the renewable energy system toward meeting its resource adequacy obligations to the applicable regional transmission organization. |
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| 436 | 436 | | |
|---|
| 437 | 437 | | (2) Subsection (1) does not require an electric provider to procure firm transmission rights to ensure deliverability to the resource adequacy zone where the load is served. |
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| 438 | 438 | | |
|---|
| 439 | 439 | | (3) Subsection (1) does not apply if electricity generated from the renewable energy system is sold by a not-for-profit entity located in Indiana, Ohio, or Wisconsin to a municipally owned electric utility in this state or cooperative electric utility in this state, and the electricity is not being used to meet another states standard for renewable energy. |
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| 440 | 440 | | |
|---|
| 441 | 441 | | (4) Renewable energy credits produced in the continental United States and owned by a customer of an electric provider may be utilized by the electric provider to meet the renewable energy credit standard if the electric customer chooses to report renewable energy credits to its electric provider as attributable to the customers electric load. Any renewable energy credits reported by an electric customer for use by its electric provider shall be applied to the electric customers proportional share of a renewable energy credit portfolio requirement for the year in which renewable energy credits are used to comply with the renewable energy credit standard. On an annual basis, not later than December 1, the electric customer shall provide the electric provider with an update on its 5-year forecast and notify the electric provider of the expected amount of renewable energy credits to be used toward compliance in the coming year. If the projected amount of renewable energy credits available for compliance will be less than what the electric customer projected in its 5-year forecast, then the electric customer shall notify the electric provider at least 5 years before the compliance year in which a projected reduction in renewable energy credits will occur. If the electric providers rates are regulated by the commission and the electric provider uses the reported renewable energy credits to comply with the renewable energy credit portfolio standard, the electric provider shall grant the customer an appropriate cost-based rate credit against the cost of compliance under section 47. As used in this subsection, customer of an electric provider or customer means any of the following: |
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| 442 | 442 | | |
|---|
| 443 | 443 | | (a) A customer taking service under a rate approved by the commission under section 10gg of 1939 PA 3, MCL 460.10gg. |
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| 444 | 444 | | |
|---|
| 445 | 445 | | (b) A customer whose manufacturing complex is described in section 10a(4)(c) of 1939 PA 3, MCL 460.10a, and that takes service for a portion of its load from an alternative electric supplier licensed under section 10a of 1939 PA 3, MCL 460.10a, on the effective date of the amendatory act that added section 51. |
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| 446 | 446 | | |
|---|
| 447 | 447 | | (c) A customer of a municipally owned electric utility on the effective date of the amendatory act that added this subsection if the customer represents at least 25% of the municipally owned electric utilitys peak load. |
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| 448 | 448 | | |
|---|
| 449 | 449 | | (5) Renewable energy credits that qualify under subsection (1) and are owned by members of a public body corporate established under the urban cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512, on or before December 1, 2022, if those members are part of Michigans educational community and take service from an alternative electric supplier licensed under section 10a of 1939 PA 3, MCL 460.10a, may be utilized by the members electric provider to meet the renewable energy credit standards if the members choose to report renewable energy credits to the electric provider as attributable to the electric load of members of the cooperative. Any renewable energy credits reported by a member of the cooperative for use by a provider to the members of the cooperative shall be applied to the members proportional share of a renewable energy credit portfolio requirement for the year in which renewable energy credits are used to comply with the renewable energy credit standard. |
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| 450 | 450 | | |
|---|
| 451 | 451 | | |
|---|
| 452 | 452 | | |
|---|
| 453 | 453 | | Sec. 32. (1) Upon petition by an electric provider, the commission may, upon a showing of good cause, grant an extension of a renewable energy credit portfolio deadline under section 28. Each extension shall not exceed 2 years. An extension of a deadline does not affect a subsequent deadline. |
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| 454 | 454 | | |
|---|
| 455 | 455 | | (2) In a petition under subsection (1), an electric provider must include a plan for resolving the barrier to compliance and must make a showing of good cause by demonstrating any of the following: |
|---|
| 456 | 456 | | |
|---|
| 457 | 457 | | (a) Despite all commercially reasonable efforts by the electric provider to comply with the deadline, compliance is not practically feasible for reasons that may include, but are not limited to, zoning, siting, permitting, supply chains, transmission interconnection, labor shortages, delays in project deliverability from developers, or unanticipated load growth. Issuing a request for proposals to purchase renewable energy and not receiving a commercially viable offer creates a rebuttable presumption that compliance with the deadline is not practically feasible. |
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| 458 | 458 | | |
|---|
| 459 | 459 | | (b) Compliance would be excessively costly to customers despite commercially reasonable efforts by the electric provider to contain costs. |
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| 460 | 460 | | |
|---|
| 461 | 461 | | (c) Compliance would result in a deficiency in meeting resource adequacy requirements in the electric providers service territory. |
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| 462 | 462 | | |
|---|
| 463 | 463 | | (d) Compliance would result in a local grid reliability issue. |
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| 464 | 464 | | |
|---|
| 465 | 465 | | (3) Upon granting an additional extension for a particular renewable energy credit portfolio deadline beyond the first 2 extensions, the commission shall notify the speaker of the house, the majority leader of the senate, and the chairpersons of the committees of the legislature having jurisdiction over energy issues that it has granted an additional extension to the electric provider and the reasons for the extension. |
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| 466 | 466 | | |
|---|
| 467 | 467 | | Sec. 39. (1) Except as otherwise provided in section 35(1), 1 renewable energy credit shall be granted to the owner of a renewable energy system for each megawatt hour of electricity generated from the renewable energy system, subject to all of the following: |
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| 468 | 468 | | |
|---|
| 469 | 469 | | (a) If a renewable energy system uses both a renewable energy resource and a nonrenewable energy resource to generate electricity or steam, the number of renewable energy credits granted shall be based on the percentage of the electricity or steam, or both, generated from the renewable energy resource. |
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| 470 | 470 | | |
|---|
| 471 | 471 | | (b) A renewable energy credit shall not be granted for renewable energy the renewable attributes of which are used by an electric provider in a commission-approved voluntary renewable energy program. |
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| 472 | 472 | | |
|---|
| 473 | 473 | | (c) For a renewable energy system described in section 11(j)(iii), for each megawatt hour of electricity generated from the renewable energy system before 2040, 0.5 renewable energy credits shall be granted. No renewable energy credits shall be granted for electricity generated in 2040 or thereafter. A renewable energy system described in section 11(j)(iii) shall, by January 1, 2035, file a decommissioning plan with the county in which the facility is located detailing its plans to retire and decommission the facility not later than January 1, 2040. |
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| 474 | 474 | | |
|---|
| 475 | 475 | | (2) The following additional renewable energy credits, to be known as Michigan incentive renewable energy credits, shall be granted under the following circumstances: |
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| 476 | 476 | | |
|---|
| 477 | 477 | | (a) 2 renewable energy credits for each megawatt hour of electricity from solar power generated by a renewable energy system that was approved in a renewable energy plan before April 20, 2017. |
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| 478 | 478 | | |
|---|
| 479 | 479 | | (b) 1/5 renewable energy credit for each megawatt hour of electricity generated from a renewable energy system, other than wind, at peak demand time as determined by the commission. |
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| 480 | 480 | | |
|---|
| 481 | 481 | | (c) 1/5 renewable energy credit for each megawatt hour of electricity generated from a renewable energy system during off-peak hours, stored using an energy storage system or a hydroelectric pumped storage facility, and used during peak hours. However, the number of renewable energy credits shall be calculated based on the number of megawatt hours of renewable energy used to charge the energy storage system or fill the pumped storage facility, not the number of megawatt hours actually discharged or generated by discharge from the energy storage system or pumped storage facility. |
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| 482 | 482 | | |
|---|
| 483 | 483 | | (d) 1/10 renewable energy credit for each megawatt hour of electricity generated from a renewable energy system constructed using equipment made in this state as determined by the commission. The additional credit under this subdivision is available for the first 3 years after the renewable energy system first produces electricity on a commercial basis. |
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| 484 | 484 | | |
|---|
| 485 | 485 | | (e) 1/10 renewable energy credit for each megawatt hour of electricity from a renewable energy system constructed using a workforce composed of residents of this state as determined by the commission. The additional credit under this subdivision is available for the first 3 years after the renewable energy system first produces electricity on a commercial basis. |
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| 486 | 486 | | |
|---|
| 487 | 487 | | (3) A renewable energy credit expires at the earliest of the following times: |
|---|
| 488 | 488 | | |
|---|
| 489 | 489 | | (a) When used by an electric provider to comply with its renewable energy standard. |
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| 490 | 490 | | |
|---|
| 491 | 491 | | (b) When substituted for an energy waste reduction credit under section 77. |
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| 492 | 492 | | |
|---|
| 493 | 493 | | (c) Five years after the end of the month in which the renewable energy credit was generated. |
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| 494 | 494 | | |
|---|
| 495 | 495 | | |
|---|
| 496 | 496 | | |
|---|
| 497 | 497 | | Sec. 45. (1) For an electric provider whose rates are regulated by the commission, the commission shall determine a revenue recovery mechanism, subject to section 47, for the electric providers tariffs that permit recovery of the incremental cost of compliance to implement the amended renewable energy plan. |
|---|
| 498 | 498 | | |
|---|
| 499 | 499 | | (2) An electric providers incremental cost of compliance shall be recovered through a revenue recovery mechanism that is designed consistent with the production allocation approved in the providers most recent general rate case under section 6a of 1939 PA 3, MCL 460.6a. An electric provider may propose a revenue recovery mechanism in an amended renewable energy plan to include all or a portion of the electric providers incremental cost of compliance in base rates. If an electric provider proposes to include all or a portion of the incremental cost of compliance in base rates, the commission shall review and approve, approve with modifications, or deny the revenue recovery mechanism proposed by the electric provider. |
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| 500 | 500 | | |
|---|
| 501 | 501 | | (3) The incremental cost of compliance shall be calculated for a 20-year period beginning with approval of the amended renewable energy plan and may be recovered on a levelized basis. |
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| 502 | 502 | | |
|---|
| 503 | 503 | | |
|---|
| 504 | 504 | | |
|---|
| 505 | 505 | | Sec. 47. (1) The commission shall consider all actual costs reasonably and prudently incurred in good faith to implement an amended renewable energy plan by an electric provider whose rates are regulated by the commission to be a cost of service to be recovered by the electric provider. An electric provider whose rates are regulated by the commission shall recover through its retail electric rates all of the electric providers incremental costs of compliance beginning when the electric providers amended renewable energy plan is approved by the commission. The recovery shall include, but is not limited to, the electric providers authorized rate of return on equity for costs approved under this section. The authorized rate of return on equity for costs of any renewable energy system approved through the electric providers amended renewable energy plan to comply with the renewable energy standard in effect before the effective date of the amendatory act that added section 51 shall remain fixed at the rate of return and debt-to-equity ratio that was in effect when the electric providers amended renewable energy plan that first included the renewable energy system was approved by the commission. |
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| 506 | 506 | | |
|---|
| 507 | 507 | | (2) Incremental costs of compliance shall be calculated as follows: |
|---|
| 508 | 508 | | |
|---|
| 509 | 509 | | (a) Determine the sum of the following costs to the extent those costs are reasonable and prudent and not already approved for recovery in electric rates as of October 6, 2008: |
|---|
| 510 | 510 | | |
|---|
| 511 | 511 | | (i) Capital, operating, and maintenance costs of renewable energy systems, including property taxes, insurance, and return on equity associated with an electric providers renewable energy systems, including the electric providers renewable energy portfolio established to achieve compliance with the renewable energy standards and any additional renewable energy systems that are built or acquired by the electric provider to maintain compliance with the renewable energy standards. |
|---|
| 512 | 512 | | |
|---|
| 513 | 513 | | (ii) Financing costs attributable to capital, operating, and maintenance costs of capital facilities associated with renewable energy systems used to meet the renewable energy standard. |
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| 514 | 514 | | |
|---|
| 515 | 515 | | (iii) Costs that are not otherwise recoverable in rates approved by the Federal Energy Regulatory Commission and that are related to the infrastructure required to bring renewable energy systems used to achieve compliance with the renewable energy standards on to the transmission system, including interconnection and substation costs for renewable energy systems used to meet the renewable energy standard. |
|---|
| 516 | 516 | | |
|---|
| 517 | 517 | | (iv) Ancillary service costs determined by the commission to be necessarily incurred to ensure the quality and reliability of renewable energy used to meet the renewable energy standards, regardless of the ownership of a renewable energy system. |
|---|
| 518 | 518 | | |
|---|
| 519 | 519 | | (v) Except to the extent the costs are allocated under a different subparagraph, all of the following: |
|---|
| 520 | 520 | | |
|---|
| 521 | 521 | | (A) The costs of renewable energy credits purchased under this act. |
|---|
| 522 | 522 | | |
|---|
| 523 | 523 | | (B) The costs of contracts described in former section 33(1). |
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| 524 | 524 | | |
|---|
| 525 | 525 | | (C) The financial compensation mechanism for all renewable energy contracts established under section 28(8). |
|---|
| 526 | 526 | | |
|---|
| 527 | 527 | | (vi) Expenses incurred as a result of state or federal governmental actions related to renewable energy systems attributable to the renewable energy standards, including changes in tax or other law. |
|---|
| 528 | 528 | | |
|---|
| 529 | 529 | | (vii) Any additional electric provider costs determined by the commission to be necessarily incurred to ensure the quality and reliability of renewable energy used to meet the renewable energy standards. |
|---|
| 530 | 530 | | |
|---|
| 531 | 531 | | (b) Subtract from the sum of costs not already included in electric rates determined under subdivision (a) the sum of the following revenues: |
|---|
| 532 | 532 | | |
|---|
| 533 | 533 | | (i) Revenue derived from the sale of environmental attributes associated with the generation of renewable energy attributable to the renewable energy standards. Such revenue shall not be considered in determining power supply cost recovery factors under section 6j of 1939 PA 3, MCL 460.6j. |
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| 534 | 534 | | |
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| 535 | 535 | | (ii) Interest on regulatory liabilities. |
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| 536 | 536 | | |
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| 537 | 537 | | (iii) Tax credits specifically designed to promote renewable energy. |
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| 538 | 538 | | |
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| 539 | 539 | | (iv) Revenue derived from the provision of renewable energy to retail electric customers subject to a power supply cost recovery clause under section 6j of 1939 PA 3, MCL 460.6j, of an electric provider whose rates are regulated by the commission. After providing an opportunity for a contested case hearing for an electric provider whose rates are regulated by the commission, the commission shall annually establish a price per megawatt hour. An electric provider whose rates are regulated by the commission may at any time petition the commission to revise the price. In setting the price per megawatt hour under this subparagraph, the commission shall consider factors, including, but not limited to, projected capacity, energy, maintenance, and operating costs; information filed under section 6j of 1939 PA 3, MCL 460.6j; and information from wholesale markets, including, but not limited to, locational marginal pricing. This price shall be multiplied by the sum of the number of megawatt hours of renewable energy used to maintain compliance with the renewable energy standard. The product shall be considered a booked cost of purchased and net interchanged power transactions under section 6j of 1939 PA 3, MCL 460.6j. For energy purchased by such an electric provider under a renewable energy contract, the price shall be the lower of the amount established by the commission or the actual price paid and shall be multiplied by the number of megawatt hours of renewable energy purchased. The resulting value shall be considered a booked cost of purchased and net interchanged power under section 6j of 1939 PA 3, MCL 460.6j. |
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| 540 | 540 | | |
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| 541 | 541 | | (v) Revenue from wholesale renewable energy sales. Such revenue shall not be considered in determining power supply cost recovery factors under section 6j of 1939 PA 3, MCL 460.6j. |
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| 542 | 542 | | |
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| 543 | 543 | | (vi) Any additional electric provider revenue considered by the commission to be attributable to the renewable energy standards. |
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| 544 | 544 | | |
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| 545 | 545 | | (vii) Any revenues recovered in rates for renewable energy costs that are included under subdivision (a). |
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| 546 | 546 | | |
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| 547 | 547 | | (3) The commission shall authorize an electric provider whose rates are regulated by the commission to spend in any given month more to comply with this act and implement an amended renewable energy plan than the revenue actually generated by the revenue recovery mechanism. An electric provider whose rates are regulated by the commission shall recover its commission approved pre-tax rate of return on regulatory assets during the appropriate period. An electric provider whose rates are regulated by the commission shall record interest on regulatory liabilities at the average short-term borrowing rate available to the electric provider during the appropriate period. Any regulatory assets or liabilities resulting from the recovery of costs of renewable energy attributable to renewable energy standards through the power supply cost recovery clause under section 6j of 1939 PA 3, MCL 460.6j, shall continue to be reconciled under that section. |
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| 548 | 548 | | |
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| 549 | 549 | | (4) The incremental costs of compliance as that term is used in section 61 shall be calculated as provided in this section. |
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| 550 | 550 | | |
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| 551 | 551 | | |
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| 552 | 552 | | |
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| 553 | 553 | | Sec. 49. (1) This section applies only to an electric provider whose rates are regulated by the commission and that has recorded a regulatory asset or regulatory liability under this subpart for the last 12 months. The commission shall commence an annual proceeding, to be known as a renewable cost reconciliation, for each electric provider whose rates are regulated by the commission. The renewable cost reconciliation proceeding shall be conducted as a contested case pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. Reasonable discovery shall be permitted before and during the reconciliation proceeding to assist in obtaining evidence concerning reconciliation issues, including, but not limited to, the reasonableness and prudence of expenditures and the amounts collected pursuant to the revenue recovery mechanism. |
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| 554 | 554 | | |
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| 555 | 555 | | (2) At the renewable cost reconciliation, an electric provider may propose any necessary modifications of the revenue recovery mechanism to ensure the electric providers recovery of its incremental cost of compliance with the renewable energy standards. |
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| 556 | 556 | | |
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| 557 | 557 | | (3) The commission shall reconcile the pertinent revenues recorded and the allowance for the revenue recovery mechanism with the amounts actually expensed and projected according to the electric providers amended renewable energy plan. The commission shall consider any issue regarding the reasonableness and prudence of expenses for which customers were charged in the relevant reconciliation period. In its order, the commission shall do all of the following: |
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| 558 | 558 | | |
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| 559 | 559 | | (a) Make a determination of an electric providers compliance with the renewable energy standards. |
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| 560 | 560 | | |
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| 561 | 561 | | (b) Adjust the revenue recovery mechanism for the incremental costs of compliance. Any regulatory asset or regulatory liability accrued during the reconciliation period shall be used to adjust the revenue recovery mechanism and reflected in the incremental cost of compliance for the following calendar year. |
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| 562 | 562 | | |
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| 563 | 563 | | (c) Establish the price per megawatt hour for renewable energy capacity and for renewable energy to be recovered through the power supply cost recovery clause under section 6j of 1939 PA 3, MCL 460.6j, as outlined in section 47(2)(b)(iv). |
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| 564 | 564 | | |
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| 565 | 565 | | (4) In its order in a renewable energy cost reconciliation, the commission shall require an electric provider to adjust the revenue recovery mechanism by any difference between the net amount determined to have been recovered and the net amount needed to recover the electric providers incremental cost of compliance. |
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| 566 | 566 | | |
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| 567 | 567 | | (5) The commission shall determine the appropriate charges for an electric providers tariffs that permit recovery of the cost of compliance and issue a final order in a renewable energy reconciliation proceeding within 270 days from the date an application is filed by an electric provider. |
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| 568 | 568 | | |
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| 569 | 569 | | |
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| 570 | 570 | | |
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| 571 | 571 | | Sec. 51. (1) As a clean energy standard, an electric provider shall achieve a clean energy portfolio of at least the following: |
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| 572 | 572 | | |
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| 573 | 573 | | (a) In 2035 through 2039, 80%. |
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| 574 | 574 | | |
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| 575 | 575 | | (b) In 2040 and each year thereafter, 100%. |
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| 576 | 576 | | |
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| 577 | 577 | | (2) All of the following apply to an electric provider whose rates are regulated by the commission: |
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| 578 | 578 | | |
|---|
| 579 | 579 | | (a) The electric provider shall submit a plan to comply with the clean energy standard as part of that electric providers integrated resource plans filed under section 6t of 1939 PA 3, MCL 460.6t. The costs of compliance with the clean energy standard are a cost of service and may be recovered as provided by 1939 PA 3, MCL 460.1 to 460.11. |
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| 580 | 580 | | |
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| 581 | 581 | | (b) The commission may, upon a showing of good cause based on a factor listed in section 32(2), grant the electric provider an extension of a clean energy standard deadline. Each extension shall not exceed 2 years. An extension of a deadline does not affect a subsequent deadline. Upon granting an additional extension for a particular clean energy standard deadline beyond the first 2 extensions, the commission shall notify the speaker of the house, the majority leader of the senate, and the chairpersons of the committees of the legislature having jurisdiction over energy issues that it has granted an additional extension and the reasons for the extension. |
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| 582 | 582 | | |
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| 583 | 583 | | (c) The electric provider qualifies for a financial incentive for a clean energy contract under section 28(8). |
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| 584 | 584 | | |
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| 585 | 585 | | (3) All of the following apply to an alternative electric supplier or a cooperative electric utility that has elected to become member-regulated under the electric cooperative member-regulation act, 2008 PA 167, MCL 460.31 to 460.39: |
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| 586 | 586 | | |
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| 587 | 587 | | (a) An electric provider described in this subsection shall file a proposed clean energy plan with the commission by January 1, 2028. The proposed clean energy plan shall meet all of the following requirements: |
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| 588 | 588 | | |
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| 589 | 589 | | (i) Describe how the electric provider will meet the clean energy standard. |
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| 590 | 590 | | |
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| 591 | 591 | | (ii) Specify whether the number of megawatt hours of electricity used in the calculation of the clean energy portfolio will be weather-normalized or based on the average number of megawatt hours of electricity sold by the electric provider annually during the previous 3 years to retail customers in this state. Once the plan is approved by the commission, this option shall not be changed. |
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| 592 | 592 | | |
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| 593 | 593 | | (b) The commission shall provide an opportunity for public comment on the proposed clean energy plan filed under subdivision (a). After the opportunity for public comment and within 150 days after the proposed clean energy plan is filed with the commission, the commission shall approve, with any changes consented to by the electric provider, or reject the clean energy plan. |
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| 594 | 594 | | |
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| 595 | 595 | | (c) Every 4 years after initial approval of a clean energy plan under subdivision (b), the commission shall review the clean energy plan. The commission shall provide an opportunity for public comment on the clean energy plan. After the opportunity for public comment, the commission shall approve, with any changes consented to by the electric provider described in this subsection, or reject any proposed amendments to the clean energy plan. |
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| 596 | 596 | | |
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| 597 | 597 | | (d) If an electric provider described in this subsection proposes to amend its clean energy plan at a time other than during the review process under subdivision (c), the electric provider shall file the proposed amendment with the commission. The commission shall provide an opportunity for public comment on the amendment. After the opportunity for public comment and within 150 days after the amendment is filed, the commission shall approve, with any changes consented to by the electric provider, or reject the amendment. |
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| 598 | 598 | | |
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| 599 | 599 | | (e) If the commission rejects a proposed clean energy plan or amendment under this subsection, the commission shall explain in writing the reasons for its determination. |
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| 600 | 600 | | |
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| 601 | 601 | | (f) The commission may, upon a showing of good cause based on a factor listed in section 32(2), grant an alternative electric supplier an extension of a clean energy standard deadline. Each extension shall not exceed 2 years. An extension of a deadline does not affect a subsequent deadline. Upon granting an additional extension for a particular clean energy standard deadline beyond the first 2 extensions, the commission shall notify the speaker of the house, the majority leader of the senate, and the chairpersons of the committees of the legislature having jurisdiction over energy issues that it has granted an additional extension and the reasons for the extension. |
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| 602 | 602 | | |
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| 603 | 603 | | (g) The governing board of a cooperative electric utility may, upon a demonstration of good cause based on a factor listed in section 32(2), grant an extension of a clean energy standard deadline. Each extension shall not exceed 2 years. An extension of a deadline does not affect a subsequent deadline. Upon granting an additional extension for a particular clean energy standard deadline beyond the first 2 extensions, the governing board of a cooperative electric utility shall notify the commission that it has granted an additional extension and the reasons for the extension. |
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| 604 | 604 | | |
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| 605 | 605 | | (4) All of the following apply to a municipally owned electric utility: |
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| 606 | 606 | | |
|---|
| 607 | 607 | | (a) Each municipally owned electric utility shall file a proposed clean energy plan with the commission by July 1, 2028. Two or more municipally owned electric utilities may file jointly for the purposes of compliance with the requirements of this subsection. The proposed clean energy plan shall meet all of the following requirements: |
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| 608 | 608 | | |
|---|
| 609 | 609 | | (i) Describe how the municipally owned electric utility or a joint filing of municipally owned electric utilities will meet the clean energy standard. |
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| 610 | 610 | | |
|---|
| 611 | 611 | | (ii) Specify whether the number of megawatt hours of electricity used in the calculation of the clean energy portfolio will be weather-normalized or based on the average number of megawatt hours of electricity sold by the municipally owned electric utility annually during the previous 3 years to retail customers in this state. Once the commission determines that the proposed plan complies with this act, this option shall not be changed. |
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| 612 | 612 | | |
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| 613 | 613 | | (b) Subject to subdivision (e), the commission shall provide an opportunity for public comment on the proposed clean energy plan filed under subdivision (a). After the applicable opportunity for public comment and within 150 days after the proposed clean energy plan is filed with the commission, the commission shall determine whether the proposed clean energy plan complies with this act. |
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| 614 | 614 | | |
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| 615 | 615 | | (c) Every 4 years after the commission initially determines under subdivision (b) that a clean energy plan complies with this act, the commission shall review the clean energy plan. Subject to subdivision (e), the commission shall provide an opportunity for public comment on the clean energy plan. After the opportunity for public comment, the commission shall determine whether any amendment to the clean energy plan proposed by the municipally owned electric utility complies with this act. The proposed amendment is adopted if the commission determines that it complies with this act. |
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| 616 | 616 | | |
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| 617 | 617 | | (d) If a municipally owned electric utility proposes to amend its clean energy plan at a time other than during the review process under subdivision (c), the municipally owned electric utility shall file the proposed amendment with the commission. Subject to subdivision (e), the commission shall provide an opportunity for public comment on the amendment. After the applicable opportunity for public comment and within 150 days after the amendment is filed, the commission shall determine whether the proposed amendment to the clean energy plan complies with this act. The proposed amendment is adopted if the commission determines that it complies with this act. |
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| 618 | 618 | | |
|---|
| 619 | 619 | | (e) The commission need not provide an opportunity for public comment under subdivision (b), (c), or (d) if the governing body of the municipally owned electric utility has already provided an opportunity for public comment and filed the comments with the commission. |
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| 620 | 620 | | |
|---|
| 621 | 621 | | (f) If the commission determines that a proposed clean energy plan or amendment under this subsection does not comply with this act, the commission shall explain in writing the reasons for its determination. |
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| 622 | 622 | | |
|---|
| 623 | 623 | | (g) The governing board of a municipally owned electric utility may, upon a demonstration of good cause based on a factor listed in section 32(2), grant an extension of a clean energy standard deadline. Each extension shall not exceed 2 years. An extension of a deadline does not affect a subsequent deadline. Upon granting an additional extension for a particular clean energy standard deadline beyond the first 2 extensions, the governing board of a municipally owned electric utility shall notify the commission that it has granted an additional extension and the reasons for the extension. |
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| 624 | 624 | | |
|---|
| 625 | 625 | | (5) By December 1, 2024, the commission shall deliver to the governor, the senate majority leader, the senate minority leader, the speaker of the house of representatives, the minority leader of the house of representatives, and the chairpersons of the senate and house of representatives standing committees with primary responsibility for energy issues a written report detailing all of the following: |
|---|
| 626 | 626 | | |
|---|
| 627 | 627 | | (a) The unique conditions influencing electric generation, transmission, and demand in the Upper Peninsula. |
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| 628 | 628 | | |
|---|
| 629 | 629 | | (b) The unique role of the reciprocating internal combustion units placed in service to facilitate the retirement of coal-fired generation located in the Upper Peninsula after the regional transmission organization imposed system support resource charges. |
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| 630 | 630 | | |
|---|
| 631 | 631 | | (c) Changes in electric demand, including changes from mining-related economic development projects, that may influence the utilization of the reciprocating internal combustion units described in subdivision (b). |
|---|
| 632 | 632 | | |
|---|
| 633 | 633 | | (d) Options to reduce the carbon intensity of the existing reciprocating internal combustion units described in subdivision (c), with particular focus on how the unique geological conditions within the Upper Peninsula influence the feasibility of deploying clean energy systems. |
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| 634 | 634 | | |
|---|
| 635 | 635 | | (e) Any other information the commission determines may be relevant to the development of strategies to satisfy the clean energy standard for an electric provider whose rates are regulated by the commission and that owns and operates reciprocating internal commission engine units in the Upper Peninsula. |
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| 636 | 636 | | |
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| 637 | 637 | | |
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| 638 | 638 | | |
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| 639 | 639 | | Sec. 53. The attorney general or any customer of a municipally owned electric utility or a cooperative electric utility that is member-regulated under the electric cooperative member-regulation act, 2008 PA 167, MCL 460.31 to 460.39, may commence a civil action for injunctive relief against that municipally owned electric utility or cooperative electric utility if the municipally owned electric utility or cooperative electric utility fails to meet the applicable requirements of this subpart or an order issued or rule promulgated under this subpart. The attorney general or customer shall commence an action under this section in the circuit court for the circuit in which the principal office of the municipally owned electric utility or cooperative electric utility is located. The attorney general or customer shall not file an action under this section unless the attorney general or customer has given the municipally owned electric utility or cooperative electric utility at least 60 days written notice of the intent to sue, the basis for the suit, and the relief sought. Within 30 days after the municipally owned electric utility or cooperative electric utility receives written notice of the intent to sue, the municipally owned electric utility or cooperative electric utility and the attorney general or customer shall meet and make a good-faith attempt to determine if there is a credible basis for the action. The municipally owned electric utility or cooperative electric utility shall take all reasonable and prudent steps necessary to comply with the applicable requirements of this subpart or an order issued or rule promulgated under this subpart within 90 days after the meeting if there is a credible basis for the action. If the parties do not agree as to whether there is a credible basis for the action, the attorney general or customer may proceed to file the suit. When making a determination of whether a credible basis for the action exists, the attorney general or customer shall consider the factors listed in section 32(2). |
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| 640 | 640 | | |
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| 641 | 641 | | |
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| 642 | 642 | | |
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| 643 | 643 | | Sec. 101. (1) By December 31, 2029, each electric provider whose rates are regulated by the commission shall petition the commission for any necessary approvals, and each alternative electric supplier shall submit a plan to the commission, to construct or acquire eligible energy storage systems or enter into eligible energy storage contracts to meet its share of a statewide energy storage target of a combined capacity of at least 2,500 megawatts. An electric providers share of the statewide energy storage target shall be apportioned based on the electric providers annual average contribution to in-state retail electric peak load for the 5-year period immediately preceding the filing of the electric providers plan under this subsection. |
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| 644 | 644 | | |
|---|
| 645 | 645 | | (2) An electric provider whose rates are regulated by the commission shall demonstrate compliance with its plan under subsection (1) as part of the electric providers integrated resource plan filed under section 6t of 1939 PA 3, MCL 460.6t. An alternative electric supplier shall demonstrate compliance with its plan under subsection (1) in the demonstration required under section 6w(8)(b) of 1939 PA 3, MCL 460.6w. |
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| 646 | 646 | | |
|---|
| 647 | 647 | | (3) An alternative electric supplier may contract with an electric provider whose rates are regulated by the commission to construct the eligible energy storage systems necessary to fulfil the alternative electric suppliers portion of the statewide energy storage target that is attributable to the alternative electric suppliers load within the service territory of the electric provider whose rates are regulated by the commission. An eligible energy storage contract under this subsection shall be filed with the commission. The contract prices may not exceed the cost plus the applicable rate of return for the electric provider whose rates are regulated by the commission. |
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| 648 | 648 | | |
|---|
| 649 | 649 | | (4) An electric provider whose rates are regulated by the commission shall submit to the commission for review and approval eligible energy storage contracts entered into to meet its share of the statewide storage target under subsection (1). If the commission approves an eligible energy storage contract, the commission shall authorize the electric provider to recover the costs of the contract in the electric providers base rates. An electric provider whose rates are regulated by the commission shall conduct a competitive bidding process before entering an eligible energy storage contract to meet its share of the statewide target under subsection (1). |
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| 650 | 650 | | |
|---|
| 651 | 651 | | (5) An electric provider whose rates are regulated by the commission qualifies for a financial incentive under section 28(8) for an eligible energy storage contract. |
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| 652 | 652 | | |
|---|
| 653 | 653 | | (6) This act does not limit the amount of energy storage capacity an electric provider may procure. |
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| 654 | 654 | | |
|---|
| 655 | 655 | | (7) Within 1 year after the effective date of the amendatory act that added this section, the commission shall complete a study on long-term energy storage systems and multiday energy storage systems. |
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| 656 | 656 | | |
|---|
| 657 | 657 | | (8) For purposes of this subsection, an energy storage system must have been placed in service on or after the effective date of the amendatory act that added this section. |
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| 658 | 658 | | |
|---|
| 659 | 659 | | (9) As used in this section: |
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| 660 | 660 | | |
|---|
| 661 | 661 | | (a) Eligible energy storage contract means a contract to construct, acquire, or use the services of an eligible energy storage system. |
|---|
| 662 | 662 | | |
|---|
| 663 | 663 | | (b) Eligible energy storage system means an energy storage system that is located within the local resource zone or the locational deliverability area, as defined by the appropriate independent system operator or regional transmission organization, in which the electric provider is subject to capacity demonstration obligations pursuant to section 6w(8)(b) of 1939 PA 3, MCL 460.6w. |
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| 664 | 664 | | |
|---|
| 665 | 665 | | |
|---|
| 666 | 666 | | |
|---|
| 667 | 667 | | Sec. 103. By December 31, 2024, and each year thereafter, an electric provider whose rates are regulated by the commission shall submit a report to the commission documenting the centralized and distributed electricity storage systems in its service territory. |
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| 668 | 668 | | |
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| 669 | 669 | | |
|---|
| 670 | 670 | | |
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| 671 | 671 | | Sec. 173. (1) The commission shall establish a distributed generation program by order issued by July 19, 2017. The commission may promulgate rules the commission considers necessary to implement this program. Any rules adopted regarding time limits for approval of parallel operation must recognize grid reliability and safety complications including those arising from equipment saturation, use of multiple technologies, and proximity to synchronous motor loads. The program must apply to all electric utilities whose rates are regulated by the commission and alternative electric suppliers in this state. |
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| 672 | 672 | | |
|---|
| 673 | 673 | | (2) Except as otherwise provided under this part, an electric customer of any class is eligible to interconnect an eligible electric generator with the customers local electric utility and operate the eligible electric generator in parallel with the distribution system. The program must limit each customer to generation capacity designed to meet up to 110% of the customers electricity consumption for the previous 12 months. The commission may waive the application, interconnection, and installation requirements of this part for customers participating in the net metering program under the commissions March 29, 2005 order in case no. U-14346. |
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| 674 | 674 | | |
|---|
| 675 | 675 | | (3) An electric utility or alternative electric supplier is not required to allow for a distributed generation program that is greater than 10% of its average in-state peak load for the preceding 5 calendar years. The electric utility or alternative electric supplier shall notify the commission if its distributed generation program reaches the 10% limit under this subsection. The 10% limit under this subsection shall be allocated as follows: |
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| 676 | 676 | | |
|---|
| 677 | 677 | | (a) Not less than 50% for customers with an eligible electric generator capable of generating 20 kilowatts or less. |
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| 678 | 678 | | |
|---|
| 679 | 679 | | (b) Not more than 50% for customers with an eligible electric generator capable of generating more than 20 kilowatts but not more than 550 kilowatts. |
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| 680 | 680 | | |
|---|
| 681 | 681 | | (4) Selection of customers for participation in the distributed generation program must be based on the order in which the applications for participation in the program are received by the electric utility or alternative electric supplier. |
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| 682 | 682 | | |
|---|
| 683 | 683 | | (5) An electric utility or alternative electric supplier shall not discontinue or refuse to provide electric service to a customer solely because the customer participates in the distributed generation program. An electric utility or alternative electric supplier shall not limit the rate schedule under which a customer is served solely because the customer participates in the distributed generation program. |
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| 684 | 684 | | |
|---|
| 685 | 685 | | (6) The distributed generation program created under subsection (1) must include all of the following: |
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| 686 | 686 | | |
|---|
| 687 | 687 | | (a) Statewide uniform interconnection requirements for all eligible electric generators. The interconnection requirements must be designed to protect electric utility workers and equipment and the general public. |
|---|
| 688 | 688 | | |
|---|
| 689 | 689 | | (b) Distributed generation equipment and its installation shall meet all current local and state electric and construction code requirements. Any equipment that is certified by a nationally recognized testing laboratory to IEEE 1547.1-2020 testing standards and in compliance with UL 1741 scope 1.1A and installed in compliance with this part is considered to be compliant. The commission may adopt successor requirements by promulgating rules under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, if the commission determines the successor requirements are reasonable and consistent with the purposes of this subdivision. Within the time provided by the commission in rules promulgated under subsection (1) and consistent with good utility practice, and the protection of electric utility workers, electric utility equipment, and the general public, an electric utility may study, confirm, and ensure that an eligible electric generator installation at the customers site meets the IEEE 1547.1-2020 requirements or any applicable successor requirements adopted by the commission. If necessary to promote grid reliability or safety, the commission may promulgate rules that require the use of inverters that perform specific automated grid-balancing functions to integrate distributed generation onto the electric grid. Inverters that interconnect distributed generation resources may be owned and operated by electric utilities. Both of the following must be completed before the equipment is operated in parallel with the distribution system of the utility: |
|---|
| 690 | 690 | | |
|---|
| 691 | 691 | | (i) Utility testing and approval of the interconnection, including all metering. |
|---|
| 692 | 692 | | |
|---|
| 693 | 693 | | (ii) Execution of a parallel operating agreement. |
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| 694 | 694 | | |
|---|
| 695 | 695 | | (c) A uniform application form and process to be used by all electric utilities and alternative electric suppliers in this state. Customers who are served by an alternative electric supplier shall submit a copy of the application to the electric utility for the customers service area. |
|---|
| 696 | 696 | | |
|---|
| 697 | 697 | | (d) Distributed generation customers shall pay the retail rates for electricity inflow under the rate schedule under which the customer is served. |
|---|
| 698 | 698 | | |
|---|
| 699 | 699 | | (7) Distributed generation customers shall receive a monthly bill credit for outflow as determined by the commission. Credits for outflow must reflect cost of service. |
|---|
| 700 | 700 | | |
|---|
| 701 | 701 | | (8) Each electric utility and alternative electric supplier shall maintain records of all applications and up-to-date records of all active eligible electric generators located within their service area. |
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| 702 | 702 | | |
|---|
| 703 | 703 | | |
|---|
| 704 | 704 | | |
|---|
| 705 | 705 | | Sec. 177. (1) An electric meter provided by a utility must be used to determine the amount of the customers inflow and outflow electricity in each pricing period. Eligible customers shall pay only the incremental cost above that for meters provided by the electric utility to similarly situated, nongenerating customers. |
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| 706 | 706 | | |
|---|
| 707 | 707 | | (2) A distributed generation customer shall be credited by the customers supplier of electric generation service for the outflow during the billing period. The credit must appear on the bill for the following billing period and be limited to the total charges on that bill. Any excess bill credits not used to offset inflow charges in the next billing period will be carried forward to subsequent billing periods. |
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| 708 | 708 | | |
|---|
| 709 | 709 | | |
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| 710 | 710 | | |
|---|
| 711 | 711 | | Sec. 191. (1) |
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| 712 | 712 | | |
|---|
| 713 | 713 | | Subject to subsection (2), to implement this act, the commission shall issue orders or promulgate rules pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. |
|---|
| 714 | 714 | | |
|---|
| 715 | 715 | | (2) By January 1, 2026, the commission shall issue an order providing formats and guidelines for an electric provider to submit a clean energy plan pursuant to section 51. |
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| 716 | 716 | | |
|---|
| 717 | 717 | | |
|---|
| 718 | 718 | | |
|---|
| 719 | 719 | | Enacting section 1. This amendatory act takes effect 90 days after the date it is enacted into law. |
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| 720 | 720 | | |
|---|
| 721 | 721 | | |
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| 722 | 722 | | |
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| 723 | 723 | | |
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| 724 | 724 | | |
|---|
| 725 | 725 | | |
|---|
| 726 | 726 | | |
|---|
| 727 | 727 | | Secretary of the Senate |
|---|
| 728 | 728 | | |
|---|
| 729 | 729 | | |
|---|
| 730 | 730 | | |
|---|
| 731 | 731 | | |
|---|
| 732 | 732 | | |
|---|
| 733 | 733 | | Clerk of the House of Representatives |
|---|
| 734 | 734 | | |
|---|
| 735 | 735 | | Approved___________________________________________ |
|---|
| 736 | 736 | | |
|---|
| 737 | 737 | | ____________________________________________________ |
|---|
| 738 | 738 | | |
|---|
| 739 | 739 | | Governor |
|---|