Bill Text: MI SB0912 | 2009-2010 | 95th Legislature | Engrossed
Bill Title: State agencies (existing); natural resources; powers and duties of the department of environmental quality under clean, renewable, and efficient energy act; transfer to the department of natural resources. Amends secs. 27 & 77 of 2008 PA 295 (MCL 460.1027 & 460.1077). TIE BAR WITH: SB 0807'09
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2009-12-02 - Referred To Committee On Government Operations [SB0912 Detail]
Download: Michigan-2009-SB0912-Engrossed.html
SB-0912, As Passed Senate, December 2, 2009
SENATE BILL No. 912
October 20, 2009, Introduced by Senator McMANUS and referred to the Committee on Appropriations.
A bill to amend 2008 PA 295, entitled
"Clean, renewable, and efficient energy act,"
by amending sections 27 and 77 (MCL 460.1027 and 460.1077).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 27. (1) Subject to sections 31 and 45, and in addition to
the requirements of subsection (3), an electric provider that is an
electric utility with 1,000,000 or more retail customers in this
state as of January 1, 2008 shall achieve a renewable energy
capacity portfolio of not less than the following:
(a) For an electric provider with more than 1,000,000 but less
than 2,000,000 retail electric customers in this state on January
1, 2008, a renewable energy capacity portfolio of 200 megawatts by
December 31, 2013 and 500 megawatts by December 31, 2015.
(b) For an electric provider with more than 2,000,000 retail
electric customers in this state on January 1, 2008, a renewable
energy capacity portfolio of 300 megawatts by December 31, 2013 and
600 megawatts by December 31, 2015.
(2) An electric provider's renewable energy capacity portfolio
shall be calculated by adding the following:
(a) The nameplate capacity in megawatts of renewable energy
systems owned by the electric provider that were not in commercial
operation
before the effective date of this act October 6, 2008.
(b) The capacity in megawatts of renewable energy that the
electric provider is entitled to purchase under contracts that were
not
in effect before the effective date of this act October 6,
2008.
(3) Subject to sections 31 and 45, an electric provider shall
achieve a renewable energy credit portfolio as follows:
(a) In 2012, 2013, 2014, and 2015, a renewable energy credit
portfolio based on the sum of the following:
(i) The number of renewable energy credits from electricity
generated
in the 1-year period preceding the effective date of this
act
October 6, 2008 that
would have been transferred to the
electric provider pursuant to section 35(1), if this act had been
in effect during that 1-year period.
(ii) The number of renewable energy credits equal to the number
of megawatt hours of electricity produced or obtained by the
electric
provider in the 1-year period preceding the effective date
of
this act October 6, 2008 from
renewable energy systems for which
recovery
in electric rates was approved on the effective date of
this
act October 6, 2008.
(iii) Renewable energy credits in an amount calculated as
follows:
(A) Taking into account the number of renewable energy credits
under subparagraphs (i) and (ii), determine the number of additional
renewable energy credits that the electric provider would need to
reach a 10% renewable energy portfolio in that year.
(B) Multiply the number under sub-subparagraph (A) by 20% for
2012, 33% for 2013, 50% for 2014, and 100% for 2015.
(b) In 2016 and each year thereafter, maintain a renewable
energy credit portfolio that consists of at least the same number
of renewable energy credits as were required in 2015 under
subdivision (a).
(4) An electric provider's 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.
(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.
(c) Multiply the quotient under subdivision (b) by 100.
(5) Subject to subsection (6), each electric provider shall
meet the renewable energy credit standards with renewable energy
credits obtained by 1 or more of the following means:
(a) Generating electricity from renewable energy systems for
sale to retail customers.
(b) Purchasing or otherwise acquiring renewable energy credits
with or without the associated renewable energy.
(6) An electric provider may substitute energy optimization
credits, advanced cleaner energy credits with or without the
associated advanced cleaner energy, or a combination thereof for
renewable energy credits otherwise required to meet the renewable
energy credit standards if the substitution is approved by the
commission. However, commission approval is not required to
substitute advanced cleaner energy from industrial cogeneration for
renewable energy credits. The commission shall not approve a
substitution unless the commission determines that the substitution
is cost-effective compared to other sources of renewable energy
credits 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, the
commission shall include as part of the costs of the system the
environmental costs attributed 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
natural resources on the issue of carbon dioxide emissions
benefits, if relevant, and environmental costs.
(7) Under subsection (6), energy optimization credits,
advanced cleaner energy credits, or a combination thereof shall not
be used by a provider to meet more than 10% of the renewable energy
credit standards. Advanced cleaner energy from advanced cleaner
energy systems in existence on January 1, 2008 shall not be used by
a provider to meet more than 70% of this 10% limit. This 10% limit
does not apply to advanced cleaner energy credits from plasma arc
gasification.
(8) Substitutions under subsection (6) shall be made at the
following rates per renewable energy credit:
(a) One energy optimization credit.
(b) One advanced cleaner energy credit from plasma arc
gasification or industrial cogeneration.
(c) Ten advanced cleaner energy credits other than from plasma
arc gasification or industrial cogeneration.
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.
(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.
(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
natural resources 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.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No. 807
of the 95th Legislature is enacted into law.
