Bill Text: MI HB6526 | 2017-2018 | 99th Legislature | Introduced

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Bill Title: Energy; conservation and efficiency; energy waste reduction plan measures; authorize implementation through partnerships. Amends sec. 71 of 2008 PA 295 (MCL 460.1071).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-11-28 - Bill Electronically Reproduced 11/27/2018 [HB6526 Detail]

Download: Michigan-2017-HB6526-Introduced.html

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HOUSE BILL No. 6526

 

 

November 27, 2018, Introduced by Rep. LaFave and referred to the Committee on Energy Policy.

 

     A bill to amend 2008 PA 295, entitled

 

"Clean and renewable energy and energy waste reduction act,"

 

by amending section 71 (MCL 460.1071), as amended by 2016 PA 342.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     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, 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, by April 2, 2009.

 

     (2) Energy optimization plans filed under subsection (1)

 

remain in effect, subject to any amendments, as energy waste

 

reduction plans.

 

     (3) The overall goal of an energy waste reduction plan shall

 

be to help the provider's customers reduce energy waste and to

 

reduce the future costs of provider service to customers. In

 

particular, an electric provider's energy waste reduction plan

 

shall be designed to delay the need for constructing new electric

 

generating facilities and thereby protect consumers from incurring

 

the costs of such construction.

 

     (4) An energy waste reduction plan shall do all of the

 

following:

 

     (a) Propose Provide for a set of energy waste reduction

 

programs that include offerings for each customer class, including

 

low-income residential. The commission shall allow a provider

 

flexibility to tailor the relative amount of effort devoted to each

 

customer class based on the specific characteristics of the

 

provider's service territory.

 

     (b) Specify necessary funding levels.

 

     (c) Describe how energy waste reduction program costs will be

 

recovered as provided in section 89(2).

 

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

 

from a particular customer rate class are spent on energy waste

 

reduction programs that benefit that rate class.

 

     (e) Demonstrate that the proposed energy waste reduction

 

programs and funding are sufficient to ensure the achievement of

 

applicable energy waste reduction 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 waste reduction

 

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 waste reduction programs. The commission shall

 

allow providers flexibility in designing their energy waste

 

reduction programs and administrative approach, including the

 

flexibility to determine the relative amount of effort to be

 

devoted to each customer class based on the specific

 

characteristics of the provider's service territory. A provider's

 

energy waste reduction 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 waste reduction programs to verify

 

the incremental energy savings from each energy waste reduction

 

program for purposes of section 77. All such evaluations are

 

subject to public review and commission oversight.

     (5) Subject to subsection (6), an a provider's energy waste

 

reduction plan may do provide for 1 or more of the following:

 

     (a) Utilize educational Educational programs designed to alter

 

consumer behavior or any other measures that can reasonably be used

 

to meet the goals set forth in subsection (3).

 

     (b) Propose to the commission measures Measures that are

 

designed to meet the goals set forth in subsection (3) and that

 

provide additional customer benefits. The measures may be

 

implemented through a partnership with another provider that serves

 

any of the same customers. The partnership may involve, but is not

 

limited to, any of the following:

 

     (i) Sharing of incentive credits and other costs of the

 

measures.

 

     (ii) Incentivizing insulation or other measures that meet the

 

goals set forth in subsection (3).

 

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

 

the costs of implementing the energy waste reduction plan.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.