Bill Text: MI HB5967 | 2013-2014 | 97th Legislature | Introduced

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Bill Title: Energy; conservation; energy optimization standard; increase and provide for on-bill financing and online information. Amends title & secs. 7, 71, 73, 75, 77, 83, 89, 91, 95, 191, 193 & 195 & title to pt. 6 of 2008 PA 295 (MCL 460.1007 et seq.) & adds pt. 7.

Spectrum: Slight Partisan Bill (Democrat 3-1)

Status: (Introduced - Dead) 2014-12-02 - Printed Bill Filed 11/14/2014 [HB5967 Detail]

Download: Michigan-2013-HB5967-Introduced.html

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HOUSE BILL No. 5967

 

November 13, 2014, Introduced by Reps. Schmidt, Hobbs, Singh and Cavanagh and referred to the Committee on Energy and Technology.

 

     A bill to amend 2008 PA 295, entitled

 

"Clean, renewable, and efficient energy act,"

 

by amending the title, sections 7, 71, 73, 75, 77, 83, 89, 91, 95,

 

191, 193, and 195, and the title to part 6 (MCL 460.1007, 460.1071,

 

460.1073, 460.1075, 460.1077, 460.1083, 460.1089, 460.1091,

 

460.1095, 460.1191, 460.1193, and 460.1195) and by adding part 7.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

                                TITLE

 

     An act to require certain providers of electric service to

 

establish renewable energy programs; to require certain providers

 

of electric or natural gas service to establish energy optimization

 

programs; to authorize the use of certain energy systems to meet

 

the requirements of those programs; to provide for the approval of

 

energy optimization service companies; to provide for certain

 

charges on electric and natural gas bills; to provide for on-bill

 

financing of customer energy efficiency measures and for funding of

 

that program by the sale of securities, issuance of debt

 

obligations, and other means; to promote energy conservation 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 a net metering program and the responsibilities of

 

certain providers of electric service and customers with respect to

 

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; and to provide

 

for civil sanctions, remedies, and penalties.

 

     Sec. 7. As used in this act:

 

     (a) "Gasification facility" means a facility located in this

 

state that uses a thermochemical process that does not involve

 

direct combustion to produce synthesis gas, composed of carbon

 

monoxide and hydrogen, from carbon-based feedstocks (such as coal,

 

petroleum coke, wood, biomass, hazardous waste, medical waste,

 

industrial waste, and solid waste, including, but not limited to,

 

municipal solid waste, electronic waste, and waste described in

 

section 11514 of the natural resources and environmental protection

 

act, 1994 PA 451, MCL 324.11514) and that uses the synthesis gas or

 

a mixture of the synthesis gas and methane to generate electricity

 

for commercial use. Gasification facility includes the transmission

 

lines, gas transportation lines and facilities, and associated

 

property and equipment specifically attributable to such a

 

facility. Gasification facility includes, but is not limited to, an

 

integrated gasification combined cycle facility and a plasma arc

 

gasification facility.

 

     (b) "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.

 

     (c) "Independent transmission company" means that term as

 

defined in section 2 of the electric transmission line

 

certification act, 1995 PA 30, MCL 460.562.

 

     (d) "Industrial cogeneration facility" means a facility that

 

generates electricity using industrial thermal energy or industrial

 

waste energy.

 

     (e) "Industrial thermal energy" means thermal energy that is a

 

by-product of an industrial or manufacturing process and that would

 

otherwise be wasted. For the purposes of this subdivision,

 

industrial or manufacturing process does not include the generation

 

of electricity.

 

     (f) "Industrial waste energy" means exhaust gas or flue gas

 

that is a by-product of an industrial or manufacturing process and

 

that would otherwise be wasted. For the purposes of this

 

subdivision, industrial or manufacturing process does not include

 

the generation of electricity.

 

     (g) "Integrated gasification combined cycle facility" means a

 

gasification facility that uses a thermochemical process, including

 

high temperatures and controlled amounts of air and oxygen, to

 

break substances down into their molecular structures and that uses

 

exhaust heat to generate electricity.

 

     (h) "LEED" means the leadership in energy and environmental

 

design green building rating system developed by the United States

 

green building council.

 

     (i) "Load management" means measures or programs that target

 

equipment or devices to result in decreased peak electricity demand

 

such as by shifting demand from a peak to an off-peak period. Load

 

management includes, but is not limited to, automated energy

 

management systems responsive to time-specific pricing or demand

 

response requests from an electric provider, customer-premise

 

thermal storage, customer-premise electrochemical storage, electric

 

vehicle charging control, and conservation voltage regulation.

 

     (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(4). Standby charges for modified net metering

 

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 for modified net metering customers on demand-based rate

 

schedules that provide an equivalent contribution to utility system

 

costs.

 

     Sec. 71. (1) A provider shall file a proposed energy

 

optimization plan with the commission within the following time

 

period:

 

     (a) For a provider whose rates are regulated by the

 

commission, 90 days after the commission enters a temporary order

 

under section 171. by March 3, 2009.

 

     (b) For 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, or a

 

municipally-owned electric utility, 120 days after the commission

 

enters a temporary order under section 171. by April 2, 2009.

 

     (2) The overall goal of an energy optimization plan shall be

 

to reduce the future costs of provider service to customers and

 

eliminate the waste of energy. In particular, an EO plan shall be

 

designed to delay the need for constructing new electric generating

 

facilities and thereby protect consumers from incurring the costs

 

of such that construction. The proposed energy optimization plan

 

shall be is subject to approval in the same manner as an electric

 

provider's renewable energy plan under subpart A. A provider may

 

combine its energy optimization plan with its renewable energy

 

plan.

 

     (3) An energy optimization plan shall do all of the following:

 

     (a) Propose a set of energy optimization programs that include

 

offerings for each customer class, including low income

 

residential. The commission shall allow providers flexibility to

 

tailor the relative amount of effort devoted to each customer class

 

based on the specific characteristics of their service territory.

 

The set of energy optimization programs shall be designed to do all

 

of the following:

 

     (i) Encourage and assist customers to adopt all available cost-

 

effective energy efficiency measures.

 

     (ii) Incorporate all available cost-effective provider load

 

management measures.

 

     (iii) Encourage and assist customers to adopt all available

 

cost-effective customer load management.

 

     (b) Specify necessary funding levels.

 

     (c) Describe how energy optimization program costs will be

 

recovered as provided in section 89(2).89.

 

     (d) Ensure, to the extent feasible, that charges collected

 

from a particular customer rate class are spent on energy

 

optimization programs for that rate class.

 

     (e) Demonstrate that the proposed energy optimization programs

 

and funding are sufficient to ensure the achievement of applicable

 

energy optimization standards.

 

     (f) Specify whether the number of megawatt hours of

 

electricity or decatherms or MCFs of natural gas used in the

 

calculation of incremental energy savings under section 77 will be

 

weather-normalized or based on the average number of megawatt hours

 

of electricity or decatherms or MCFs of natural gas sold by the

 

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.

 

     (g) Demonstrate that the provider's energy optimization

 

programs, excluding program offerings to low income residential

 

customers, will collectively be cost-effective.

 

     (h) Provide for the practical and effective administration of

 

the proposed energy optimization programs. The commission shall

 

allow providers flexibility in designing their energy optimization

 

programs and administrative approach. A provider's energy

 

optimization programs or any part thereof , may be administered, at

 

the provider's option, by the provider, alone or jointly with other

 

providers, by a state agency, or by an appropriate experienced

 

nonprofit organization selected after a competitive bid process.

 

     (i) Include a process for obtaining an independent expert

 

evaluation of the actual energy optimization programs to verify the

 

incremental energy savings from each energy optimization program

 

for purposes of section 77. All such evaluations shall be are

 

subject to public review and commission oversight.

 

     (j) Allocate 1% of energy optimization funding to any of the

 

following:

 

     (i) Innovation in energy efficiency through research and

 

development grants to universities, to nonprofit research and

 

development organizations, or to small businesses receiving funds

 

from innovation funds of the United States or this state.

 

     (ii) Commercialization of innovation in energy efficiency

 

through grants, joint ventures, or investments.

 

     (4) Subject to subsection (5), an energy optimization plan may

 

do 1 or more of the following:

 

     (a) Utilize educational programs designed to alter consumer

 

behavior or any other measures that can reasonably be used to meet

 

the goals set forth in subsection (2).

 

     (b) Propose to the commission measures that are designed to

 

meet the goals set forth in subsection (1) (2) and that provide

 

additional customer benefits.

 

     (5) Expenditures under subsection (4) shall not exceed 3% of

 

the costs of implementing the energy optimization plan.

 

     (6) By January 1, 2017, an energy optimization plan shall

 

include programs for on-bill financing of energy efficiency

 

measures. An on-bill financing program shall meet all of the

 

following requirements:

 

     (a) Be designed so that savings in electricity or natural gas

 

bills from the energy efficiency measures are greater than the cost

 

of debt service, on an annual basis.

 

     (b) Limit the period of repayment for a financed energy

 

efficiency measure to a time not greater than 80% of its expected

 

useful life.

 

     (c) Provide that any arrearage in bill payment be

 

proportionally allocated to current electricity or natural gas

 

service charges and current debt service charges.

 

     (d) Be offered on equal terms for owner-occupied and rented

 

property.

 

     (e) Provide that the debt service obligation remains with the

 

metered premises through changes of customers and for the provider

 

to give notice of the on-bill financing obligations to a new

 

customer before the account is transferred.

 

     (f) Offer customers financial terms that are superior to those

 

generally available for unsecured debt to members of the customer

 

class.

 

     (g) Provide for funding through 1 or more of the following:

 

     (i) Participation in a program under the property assessed

 

clean energy act, 2010 PA 270, MCL 460.931 to 460.949.

 

     (ii) Debt placement through a nonprofit organization

 

established for the purpose of financing energy efficiency measures

 

or other lending institution to which the provider provides funding

 

for a loan-loss reserve or letter of credit of at least 20% of the

 

debt balance.

 

     (iii) Sale of securities backed by the aggregated on-bill

 

repayment obligations of the participating customers.

 

     (iv) Short-term debt obligations of the provider.

 

     Sec. 73. (1) A provider's energy optimization plan shall be

 

filed, reviewed, and approved or rejected by the commission and

 

enforced subject to the same procedures that apply to a renewable

 

energy plan.

 

     (2) The commission shall not approve a proposed energy

 

optimization plan unless the commission determines that the EO plan

 

meets the utility system resource cost test and is reasonable and

 

prudent. In determining whether the EO plan is reasonable and

 

prudent, the commission shall review each element and consider

 

whether it would reduce the future cost of service for the

 

provider's customers. In addition, the commission shall consider at

 

least all of the following:

 

     (a) The specific changes in customers' consumption patterns

 

that the proposed EO plan is attempting to influence.

 

     (b) The cost and benefit analysis and other justification for

 

specific programs and measures included in a proposed EO plan.

 

     (c) Whether the proposed EO plan includes all achievable cost-

 

effective energy optimization measures.

 

     (d) (c) Whether the proposed EO plan is consistent with any

 

long-range resource plan filed by the provider with the commission.

 

     (e) (d) Whether the proposed EO plan will result in any

 

unreasonable prejudice or disadvantage to any class of customers.

 

     (f) (e) The extent to which the EO plan provides programs that

 

are available, affordable, and useful to all customers.

 

     Sec. 75. An energy optimization plan of a provider whose rates

 

are regulated by the commission may authorize a commensurate

 

financial incentive for the provider for exceeding the energy

 

optimization performance standard. Payment of any financial

 

incentive authorized in the EO plan is subject to the approval of

 

the commission. The total amount of a financial incentive shall not

 

exceed the lesser of the following amounts:

 

     (a) 25% of the net cost reductions experienced by the

 

provider's customers as a result of implementation of the energy

 

optimization plan.

 

     (b) 15% percent 20% of the provider's actual energy efficiency

 

program expenditures for the year.

 

     Sec. 77. (1) Except as provided in section 81, 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, each year thereafter equivalent to

 

1.0% of total annual retail electricity sales in megawatt hours in

 

the preceding year.

 

     (e) Annual incremental savings in 2016 equivalent to 1.1% of

 

total annual retail electricity sales in megawatt hours in 2015.

 

     (f) Annual incremental savings in 2017 equivalent to 1.3% of

 

total annual retail electricity sales in megawatt hours in 2016.

 

     (g) Annual incremental savings in 2018 and each year

 

thereafter equivalent to 1.5% 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 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, each year thereafter equivalent to

 

0.75% of total annual retail natural gas sales in decatherms or

 

equivalent MCFs in the preceding year.

 

     (e) Annual incremental savings in 2016 equivalent to 0.85% of

 

total annual retail natural gas sales in decatherms or equivalent

 

MCFs in 2015.

 

     (f) Annual incremental savings in 2017 equivalent to 0.95% of

 

total annual retail natural gas sales in decatherms or equivalent

 

MCFs in 2016.

 

     (g) Annual incremental savings in 2018 and each year

 

thereafter equivalent to 1.0% 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.

 

     Sec. 83. (1) One energy optimization credit shall be granted

 

to a provider for each megawatt hour of annual incremental energy

 

savings achieved through energy optimization. If an electric

 

provider accepts electricity from the cogeneration system of a

 

residential or commercial customer pursuant to a fair-value tariff

 

or standard-offer contract pursuant to section 173, energy

 

optimization credits shall be granted only for that portion of

 

electricity generated with fuel equivalent to the fuel that would

 

have been used for the purpose of heating or cooling if the

 

cogeneration system were not capturing waste heat for that purpose.

 

     (2) An energy optimization credit expires as follows:

 

     (a) When used by a provider to comply with its energy

 

optimization performance standard.

 

     (b) When substituted for a renewable energy credit under

 

section 27.

 

     (c) As provided in subsection (3).

 

     (3) If a provider's incremental energy savings in the 2008-

 

2009 biennium or any year thereafter exceed the applicable energy

 

optimization standard, the associated energy optimization credits

 

may be carried forward and applied to the next year's energy

 

optimization standard. However, all of the following apply:

 

     (a) The number of energy optimization credits carried forward

 

shall not exceed 1/3 of the next year's standard. Any energy

 

optimization credits carried forward to the next year shall expire

 

that year. Any remaining energy optimization credits shall expire

 

at the end of the year in which the incremental energy savings were

 

achieved, unless substituted, by an electric provider, for

 

renewable energy credits under section 27.

 

     (b) Energy optimization credits shall not be carried forward

 

if, for its performance during the same biennium or year, the

 

provider accepts a financial incentive under section 75. The excess

 

energy optimization credits shall expire at the end of the year in

 

which the incremental energy savings were achieved, unless

 

substituted, by an electric provider, for renewable energy credits

 

under section 27.

 

     Sec. 89. (1) The commission shall allow a provider whose rates

 

are regulated by the commission to recover the actual costs of

 

implementing its approved energy optimization plan. However, costs

 

exceeding the overall funding levels specified in the energy

 

optimization plan are not recoverable unless those costs are

 

reasonable and prudent and meet the utility system resource cost

 

test. Furthermore, costs for load management undertaken pursuant to

 

an energy optimization plan are not recoverable as energy

 

optimization program costs under this section, but may be recovered

 

as described in section 95.

 

     (2) Under subsection (1), costs shall be recovered from all

 

natural gas customers and from residential electric customers by

 

volumetric charges, from all other metered electric customers by

 

per-meter charges, and from unmetered electric customers by an

 

appropriate charge, applied to utility bills as an itemized charge.

 

     (3) For the electric primary customer rate class customers of

 

electric providers and customers of natural gas providers with an

 

aggregate annual natural gas billing demand of more than 100,000

 

decatherms or equivalent MCFs for all sites in the natural gas

 

utility's service territory, the cost recovery under subsection (1)

 

shall not exceed 1.7% of total retail sales revenue for that

 

customer class. For electric secondary customers and for

 

residential customers, the cost recovery shall not exceed 2.2% of

 

total retail sales revenue for those customer classes. This

 

subsection does not apply to cost recovery for energy optimization

 

programs conducted after 2015.

 

     (4) Upon petition by a provider whose rates are regulated by

 

the commission, the commission shall authorize the provider to

 

capitalize all energy efficiency and energy conservation equipment,

 

materials, and installation costs with an expected economic life

 

greater than 1 year incurred in implementing its energy

 

optimization plan, including such costs paid to third parties, such

 

as customer rebates and customer incentives. The provider shall

 

also propose depreciation treatment with respect to its capitalized

 

costs in its energy optimization plan, and the commission shall

 

order reasonable depreciation treatment related to these

 

capitalized costs. A provider shall not capitalize payments made to

 

an independent energy optimization program administrator under

 

section 91.

 

     (5) The established funding at the level established for low

 

income residential programs shall be provided from each customer

 

rate class in proportion to that customer rate class's funding of

 

the provider's total energy optimization programs. Charges shall be

 

applied to distribution customers regardless of the source of their

 

electricity or natural gas supply.

 

     (6) The commission shall authorize a natural gas provider that

 

spends a minimum of 0.5% of total natural gas retail sales

 

revenues, including, for a natural gas provider, natural gas

 

commodity costs, in a year on commission-approved energy

 

optimization programs to implement a symmetrical revenue decoupling

 

true-up mechanism that adjusts for sales volumes that are above or

 

below the projected levels that were used to determine the revenue

 

requirement authorized in the natural gas provider's most recent

 

rate case. In determining the symmetrical revenue decoupling true-

 

up mechanism utilized for each provider, the commission shall give

 

deference to the proposed mechanism submitted by the provider. The

 

commission may approve an alternative mechanism if the commission

 

determines that the alternative mechanism is reasonable and

 

prudent. The commission shall authorize the natural gas provider to

 

decouple rates regardless of whether the natural gas provider's

 

energy optimization programs are administered by the provider or an

 

independent energy optimization program administrator under section

 

91.

 

     (7) A natural gas provider or an electric provider shall not

 

spend more than the following percentage of total utility retail

 

sales revenues, including electricity or natural gas commodity

 

costs, in any year to comply with the energy optimization

 

performance standard without specific approval from the commission:

 

     (a) In 2009, 0.75% of total retail sales revenues for 2007.

 

     (b) In 2010, 1.0% of total retail sales revenues for 2008.

 

     (c) In 2011, 1.5% of total retail sales revenues for 2009.

 

     (d) In 2012, and each year thereafter, 2013, 2014, and 2015,

 

2.0% of total retail sales revenues for the 2 years preceding.

 

     Sec. 91. (1) Except for section 89(6), sections 71 to 89 do

 

not apply to a provider that pays the following percentage of total

 

utility sales revenues, including electricity or natural gas

 

commodity costs, each year to an independent energy optimization

 

program administrator selected by the commission:

 

     (a) In 2009, 0.75% of total retail sales revenues for 2007.

 

     (b) In 2010, 1.0% of total retail sales revenues for 2008.

 

     (c) In 2011, 1.5% of total retail sales revenues for 2009.

 

     (d) In 2012, and each year thereafter, 2013, 2014, and 2015,

 

2.0% of total retail sales revenues for the 2 years second year

 

preceding.

 

     (e) In 2016 and each year thereafter, a percentage of total

 

retail sales revenues for the second year preceding determined by

 

the commission as necessary for the independent energy optimization

 

program administrator to meet the standards for an approvable

 

energy optimization plan.

 

     (2) An alternative compliance payment received from a provider

 

by the energy optimization program administrator under subsection

 

(1) shall be used to administer energy efficiency programs for the

 

provider. Money unspent in a year shall be carried forward to be

 

spent in the subsequent year.

 

     (3) The commission shall allow a provider to recover an

 

alternative compliance payment under subsection (1). This cost

 

shall be recovered from residential customers by volumetric

 

charges, from all other metered customers by per-meter charges, and

 

from unmetered customers by an appropriate charge, applied to

 

utility bills.

 

     (4) An A provider's alternative compliance payment under

 

subsection (1) shall only be used to fund energy optimization

 

programs for that provider's customers. To the extent feasible,

 

charges collected from a particular customer rate class and paid to

 

the energy optimization program administrator under subsection (1)

 

shall be devoted to used for energy optimization programs and

 

services for that rate class.

 

     (5) Money paid to the energy optimization program

 

administrator under subsection (1) and not spent by the

 

administrator that year shall remain available for expenditure the

 

following year, subject to the requirements of subsection (4).

 

     (6) The commission shall select a qualified nonprofit

 

organization to serve as an energy optimization program

 

administrator under this section, through a competitive bid

 

process.

 

     (7) The commission shall arrange for a biennial independent

 

audit of the energy optimization program administrator.

 

     Sec. 95. (1) The commission shall do all of the following:

 

     (a) Promote load management in appropriate circumstances.

 

     (b) Actively pursue increasing public awareness of load

 

management techniques.

 

     (c) Engage in regional load management efforts to reduce the

 

annual demand for energy whenever possible.

 

     (d) Work with residential, commercial, and industrial

 

customers to reduce annual demand and conserve energy through load

 

management techniques and other activities it considers

 

appropriate. The commission shall file a report with the

 

legislature by December 31, 2010 on the effort to reduce peak

 

demand. The report shall also include any recommendations for

 

legislative action concerning load management that the commission

 

considers necessary.

 

     (2) The commission may allow a provider whose rates are

 

regulated by the commission to recover costs for load management

 

undertaken pursuant to an energy optimization plan through base

 

rates as part of a proceeding under section 6 of 1939 PA 3, MCL

 

460.6, if the costs are reasonable and prudent and meet the utility

 

systems resource cost test.

 

     (3) The commission shall do all of the following:

 

     (a) Promote energy efficiency and energy conservation.

 

     (b) Actively pursue increasing public awareness of energy

 

conservation and energy efficiency.

 

     (c) Actively engage in energy conservation and energy

 

efficiency efforts with providers.

 

     (d) Engage in regional efforts to reduce demand for energy

 

through energy conservation and energy efficiency.

 

     (e) By November 30, 2009, and each year thereafter, submit to

 

the standing committees of the senate and house of representatives

 

with primary responsibility for energy and environmental issues a

 

report on the effort to implement energy conservation and energy

 

efficiency programs or measures. The report may include any

 

recommendations of the commission for energy conservation

 

legislation.

 

     (4) This subpart does not limit the authority of the

 

commission, following an integrated resource plan proceeding and as

 

part of a rate-making process, to allow a provider whose rates are

 

regulated by the commission to recover for additional prudent

 

energy efficiency and energy conservation measures not included in

 

the provider's energy optimization plan if the provider has met the

 

requirements of the energy optimization program.

 

     (5) The commission shall establish and maintain a website

 

referred to as the Michigan energy optimization portal. The

 

Michigan energy optimization portal shall allow provider customers

 

in this state to obtain all of the following, after providing

 

appropriate credentials:

 

     (a) Electric and natural gas metering data for their property.

 

     (b) Reliable energy optimization guidance using the data under

 

subdivision (a).

 

     (c) A building energy rating showing the relationship between

 

weather and building energy consumption.

 

     (d) Measurement and verification of energy savings suitable

 

for use as performance standards in energy efficiency performance

 

contracts.

 

     (6) The commission, in collaboration and consultation with the

 

utilities and statewide organizations representing local

 

governments and school districts, shall develop a uniform statewide

 

energy optimization program for public infrastructure, including

 

water and sewer systems, street lighting, traffic signals, parking

 

garage lighting, public safety communications systems, and

 

buildings. The program shall be funded by utility energy

 

optimization programs beginning January 1, 2017. The program shall

 

incorporate the use of performance contracting to the extent

 

possible.

 

     (7) Within 2 years after the effective date of the amendatory

 

act that added this subsection, the commission, in collaboration

 

and consultation with the department of community health, the

 

department of human services, the Michigan state housing

 

development authority, the Michigan economic development

 

corporation, and representatives of low income weatherization

 

providers, low income housing providers, and low income

 

individuals, shall submit to the legislature a comprehensive and

 

detailed report on low income household energy assistance and

 

energy efficiency programs. The report shall recommend the most

 

effective ways to do all of the following:

 

     (a) Ensure that residential customers participate in energy

 

efficiency programs if the customers are subject to low income or

 

senior electric or natural gas rates or the customers participate

 

in low income electric or natural gas bill payment assistance

 

programs.

 

     (b) Integrate utility low income energy optimization programs

 

with other housing and health programs for maximum effectiveness in

 

providing healthy, affordable low income housing.

 

     (8) By October 1, 2018, the commission shall submit to the

 

legislature a report on the potential for greater energy efficiency

 

in this state, including recommendations on whether the minimum

 

annual incremental energy savings requirements for providers in

 

section 77 should be increased.

 

PART 6.

 

MISCELLANEOUS COMMISSION PROVISIONS METERING AND INFORMATION

 

SERVICES

 

     Sec. 191. (1) Within 60 days after the effective date of this

 

act, the commission shall issue a temporary order implementing this

 

act, including, but not limited to, all of the following:

 

     (a) Formats of renewable energy plans for various categories

 

of electric providers.

 

     (b) Guidelines for requests for proposals under this act.

 

     (2) Within 1 year after the effective date of this act, the

 

commission shall promulgate rules to implement this act pursuant to

 

the administrative procedures act of 1969, 1969 PA 306, MCL 24.201

 

to 24.328. Upon promulgation of the rules, the order under

 

subsection (1) is rescinded.All electricity and natural gas

 

delivery in this state shall be metered by the distribution

 

utility, unless unmetered service is authorized by the commission.

 

Meters shall meet technical specifications adopted by the

 

commission. All electric meters installed on or after January 1,

 

2018 shall be able to record and report electricity usage in

 

intervals of 1 hour or less. All electric meters in use by electric

 

providers subject to regulation by the commission on or after

 

January 1, 2021 shall record and report electricity usage in

 

intervals of 1 hour or less, the start and end times of electrical

 

outages, and power quality parameters as specified by the

 

commission.

 

     Sec. 193. (1) Any interested party may intervene in a

 

contested case proceeding under this act as provided in general

 

rules of the commission.

 

     (2) The commission and a provider shall handle confidential

 

business information under this act in a manner consistent with

 

state law and general rules of the commission.

 

     (1) Electric or natural gas metering data are owned by the

 

current customer of record for the property to which the data

 

apply. The distribution utility providing metering service to the

 

property is the custodian of that metering data and may use the

 

metering data for billing, operations, and other internal purposes.

 

However, the distribution utility shall not convey the metering

 

data to third parties without permission of the current customer of

 

record for the property, except as otherwise provided by law. The

 

distribution utility shall retain metering data for at least 5

 

years but not more than 7 years. Subject to this subsection, the

 

distribution utility shall promptly make metering data available

 

through the utility's website.

 

     (2) Annually, upon account transfer to a new party, and upon

 

customer request, the distribution utility providing metering

 

services to a property shall provide to the customer a report in a

 

format specified by the commission showing electricity or natural

 

gas usage at the property in total and in relation to weather, time

 

of day, and such other factors as the commission determines useful

 

to customers.

 

     Sec. 195. This act does not limit any authority of the

 

commission otherwise provided by law.For distribution utilities

 

whose rates are regulated by the commission, charges for metering,

 

billing, and information services shall be uniform by meter class.

 

However, customers who opt out of remote meter reading may be

 

charged an additional fee to recover the extra costs of metering

 

service. A distribution utility may provide to customers metering

 

services for purposes other than billing on the same terms and

 

charges as metering services for billing purposes.

 

PART 7.

 

MISCELLANEOUS COMMISSION PROVISIONS

 

     Sec. 221. To implement this act, the commission may issue

 

orders or, pursuant to the administrative procedures act of 1969,

 

1969 PA 306, MCL 24.201 to 24.328, promulgate rules.

 

     Sec. 223. (1) Any interested party may intervene in a

 

contested case proceeding under this act as provided in general

 

rules of the commission.

 

     (2) The commission and a provider shall handle confidential

 

business information under this act in a manner consistent with

 

state law and general rules of the commission.

 

     Sec. 225. This act does not limit any authority of the

 

commission otherwise provided by law.