Bill Text: MI HB4055 | 2015-2016 | 98th Legislature | Introduced


Bill Title: Energy; alternative sources; energy optimization standards; increase. Amends sec. 77 of 2008 PA 295 (MCL 460.1077).

Spectrum: Partisan Bill (Democrat 9-0)

Status: (Introduced - Dead) 2015-01-27 - Printed Bill Filed 01/23/2015 [HB4055 Detail]

Download: Michigan-2015-HB4055-Introduced.html

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 4055

January 22, 2015, Introduced by Reps. Singh, Plawecki, Sarah Roberts, Irwin, Hoadley, Driskell, Darany, Neeley and Geiss and referred to the Committee on Energy Policy.

 

     A bill to amend 2008 PA 295, entitled

 

"Clean, renewable, and efficient energy act,"

 

by amending section 77 (MCL 460.1077).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 77. (1) Except as provided in section sections 81 and

 

97(8) and subject to the sales revenue expenditure limits in

 

section 89, an electric provider's energy optimization programs

 

under this subpart shall collectively achieve the following minimum

 

energy savings:

 

     (a) Biennial incremental energy savings in 2008-2009

 

equivalent to 0.3% of total annual retail electricity sales in

 

megawatt hours in 2007.

 

     (b) Annual incremental energy savings in 2010 equivalent to

 

0.5% of total annual retail electricity sales in megawatt hours in

 

2009.


 

     (c) Annual incremental energy savings in 2011 equivalent to

 

0.75% of total annual retail electricity sales in megawatt hours in

 

2010.

 

     (d) Annual incremental energy savings in 2012, 2013, 2014, and

 

2015 and, subject to section 97, equivalent to 1.0% of total annual

 

retail electricity sales in megawatt hours in the preceding year.

 

     (e) Annual incremental energy savings in 2016 equivalent to

 

1.25% of total annual retail electricity sales in megawatt hours in

 

2015.

 

     (f) Annual incremental energy savings in 2017 equivalent to

 

1.5% of total annual retail electricity sales in megawatt hours in

 

2016.

 

     (g) Annual incremental energy savings in 2018 equivalent to

 

1.75% of total annual retail electricity sales in megawatt hours in

 

2017.

 

     (h) Annual incremental energy savings in 2019 and each year

 

thereafter equivalent to 1.0% 2.0% of total annual retail

 

electricity sales in megawatt hours in the preceding year.

 

     (2) If an electric provider uses load management to achieve

 

energy savings under its energy optimization plan, the minimum

 

energy savings required under subsection (1) shall be adjusted by

 

an amount such that the ratio of the minimum energy savings to the

 

sum of maximum expenditures under section 89 and the load

 

management expenditures remains constant.

 

     (3) A Except as provided in section 97(8), a natural gas

 

provider shall meet the following minimum energy optimization

 

standards using energy efficiency programs under this subpart:


 

     (a) Biennial incremental energy savings in 2008-2009

 

equivalent to 0.1% of total annual retail natural gas sales in

 

decatherms or equivalent MCFs in 2007.

 

     (b) Annual incremental energy savings in 2010 equivalent to

 

0.25% of total annual retail natural gas sales in decatherms or

 

equivalent MCFs in 2009.

 

     (c) Annual incremental energy savings in 2011 equivalent to

 

0.5% of total annual retail natural gas sales in decatherms or

 

equivalent MCFs in 2010.

 

     (d) Annual incremental energy savings in 2012, 2013, 2014, and

 

2015 and, subject to section 97, equivalent to 0.75% of total

 

annual retail natural gas sales in decatherms or equivalent MCFs in

 

the preceding year.

 

     (e) Annual incremental energy savings in 2016 equivalent to

 

0.9375% of total annual retail natural gas sales in decatherms or

 

equivalent MCFs in 2015.

 

     (f) Annual incremental energy savings in 2017 equivalent to

 

1.125% of total annual retail natural gas sales in decatherms or

 

equivalent MCFs in 2016.

 

     (g) Annual incremental energy savings in 2018 equivalent to

 

1.3125% of total annual retail natural gas sales in decatherms or

 

equivalent MCFs in 2017.

 

     (h) Annual incremental energy savings in 2019 and each year

 

thereafter equivalent to 0.75% 1.5% of total annual retail natural

 

gas sales in decatherms or equivalent MCFs in the preceding year.

 

     (4) Incremental energy savings under subsection (1) or (3) for

 

the 2008-2009 biennium or any year thereafter shall be determined


 

for a provider by adding the energy savings expected to be achieved

 

during a 1-year period by energy optimization measures implemented

 

during the 2008-2009 biennium or any year thereafter under any

 

energy efficiency programs consistent with the provider's energy

 

efficiency plan.

 

     (5) For purposes of calculations under subsection (1) or (3),

 

total annual retail electricity or natural gas sales in a year

 

shall be based on 1 of the following at the option of the provider

 

as specified in its energy optimization plan:

 

     (a) The number of weather-normalized megawatt hours or

 

decatherms or equivalent MCFs sold by the provider to retail

 

customers in this state during the year preceding the biennium or

 

year for which incremental energy savings are being calculated.

 

     (b) The average number of megawatt hours or decatherms or

 

equivalent MCFs sold by the provider during the 3 years preceding

 

the biennium or year for which incremental energy savings are being

 

calculated.

 

     (6) For any year after 2012, an electric provider may

 

substitute renewable energy credits associated with renewable

 

energy generated that year from a renewable energy system

 

constructed after the effective date of this act, October 6, 2008,

 

advanced cleaner energy credits other than credits from industrial

 

cogeneration using industrial waste energy, load management that

 

reduces overall energy usage, or a combination thereof for energy

 

optimization credits otherwise required to meet the energy

 

optimization performance standard, if the substitution is approved

 

by the commission. The commission shall not approve a substitution


 

unless the commission determines that the substitution is cost-

 

effective and, if the substitution involves advanced cleaner energy

 

credits, that the advanced cleaner energy system provides carbon

 

dioxide emissions benefits. In determining whether the substitution

 

of advanced cleaner energy credits is cost-effective compared to

 

other available energy optimization measures, the commission shall

 

consider the environmental costs related to the advanced cleaner

 

energy system, including the costs of environmental control

 

equipment or greenhouse gas constraints or taxes. The commission's

 

determinations shall be made after a contested case hearing that

 

includes consultation with the department of environmental quality

 

on the issue of carbon dioxide emissions benefits, if relevant, and

 

environmental costs.

 

     (7) Renewable energy credits, advanced cleaner energy credits,

 

load management that reduces overall energy usage, or a combination

 

thereof shall not be used by a provider to meet more than 10% of

 

the energy optimization standard. Substitutions for energy

 

optimization credits shall be made at the following rates per

 

energy optimization credit:

 

     (a) 1 renewable energy credit.

 

     (b) 1 advanced cleaner energy credit from plasma arc

 

gasification.

 

     (c) 4 advanced cleaner energy credits other than from plasma

 

arc gasification.

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