Bill Text: MI SB0475 | 2017-2018 | 99th Legislature | Introduced

---

Bill Title: Energy; alternative sources; renewable portfolio standard; increase. Amends secs. 22, 28 & 45 of 2008 PA 295 (MCL 460.1022 et seq.) & adds sec. 32.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-06-21 - Referred To Committee On Energy And Technology [SB0475 Detail]

Download: Michigan-2017-SB0475-Introduced.html

---

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 475

 

 

June 21, 2017, Introduced by Senators WARREN, HOPGOOD, CONYERS and GREGORY and referred to the Committee on Energy and Technology.

 

 

     A bill to amend 2008 PA 295, entitled

 

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

 

by amending sections 22, 28, and 45 (MCL 460.1022, 460.1028, and

 

460.1045), sections 22 and 28 as added and section 45 as amended by

 

2016 PA 342, and by adding section 32.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     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 2016

 

amendatory act that added this section, April 20, 2017, remain in

 

effect, subject to amendments as provided for under subsections (3)

 

and (4).

 

     (2) For an electric provider whose rates are regulated by the

 

commission, amended renewable energy plans shall establish a

 

nonvolumetric mechanism for the recovery of the incremental costs

 

of compliance within the electric provider's customer rates. The

 

revenue recovery mechanism shall not result in rate impacts that

 

exceed the monthly maximum retail rate impacts specified under

 

section 45. The revenue recovery mechanism is subject to adjustment

 

under sections 47(4) and 49.

 

     (3) Within 1 year after the effective date of the 2016

 

amendatory act that added this section, By April 20, 2018, the

 

commission shall review each electric provider's plan 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 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 plan and any amendments to the plan. For all other

 

electric providers, the commission shall provide an opportunity for

 

public comment on the plan. After the applicable opportunity for

 

public comment, the commission shall determine whether any

 

amendment to the 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 plan. For cooperative

 

electric utilities and municipally owned utilities, the proposed

 

amendment is adopted if the commission determines that it complies

 

with this act.

     (4) The review process under subsection (3) shall include a

 

plan amendment to comply with the increased renewable energy credit

 

standards established by 2016 PA 342 and, except as provided in

 

this subsection, with the amendatory act that added this

 

subsection. If the review process commenced before the effective

 

date of the amendatory act that added this subsection and did not

 

account for the increased renewable energy credit standards

 

established by that amendatory act, the commission shall

 

subsequently review the plan under subsection (3) within 1 year

 

after the effective date of that amendatory act, and that review

 

process shall include a plan amendment to comply with the increased

 

renewable energy credit standards established by that amendatory

 

act.

 

     (5) (4) If an electric provider proposes to amend its plan

 

after the review process under subsection (3), subsections (3) and

 

(4), 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 90 days after the amendment is

 

filed, the commission shall approve, with any changes consented to

 

by the electric provider, or reject the plan and the proposed

 

amendment or amendments to the 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 90 days after the amendment is filed, the

 

commission shall determine whether the proposed amendment to the

 

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 plan.

 

For cooperative electric utilities and municipally owned utilities,

 

the proposed amendment is adopted if the commission determines that

 

it complies with this act.

 

     (6) (5) For an electric provider whose rates are regulated by

 

the commission, the commission shall approve the plan or amendments

 

to the plan if the commission determines:

 

     (a) That the 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 plans

 

were exceeded.

 

     (b) That the plan is consistent with the purpose and goal set

 

forth in section 1(2) and (3) and meets the renewable energy credit

 

standard through 2021.2035.

 

     (7) (6) If the commission rejects a proposed plan or amendment

 

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 as follows:

 

     (a) In 2016 through 2018, a renewable energy credit portfolio

 

that consists of at least the same number of renewable energy

 

credits as were required under former section 27.

 

     (b) In 2019 and 2020, a renewable energy credit portfolio of

at least 12.5%. , as calculated under subsection (2).

 

     (c) In 2021 and each year thereafter through 2034, a renewable

 

energy credit portfolio of at least 15%. , as calculated under

 

subsection (2).

 

     (d) In 2035 and each year thereafter, a renewable energy

 

credit portfolio of at least 50%.

 

     (2) An electric provider's renewable energy credit portfolio

 

under subsection (1)(b) to (d) 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.

 

     (3) Subject to subsection (5), 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.

 

     (4) 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 (3) to the commission for

 

review and approval. If the commission approves the contract, it

 

shall be considered consistent with the electric provider's

 

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.

 

     (5) An electric provider may substitute energy waste reduction

 

credits for renewable energy credits otherwise required to meet the

 

renewable energy credit standards 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.

 

     Sec. 32. (1) Upon petition by an electric provider, the

 

commission may for good cause grant 2 extensions of the 2035

 

renewable energy standard deadline under section 27. Each extension

 

shall be for up to 1 year.

 

     (2) If 2 extensions of the 2035 renewable energy standard

 

deadline have been granted to an electric provider under subsection

 

(1), upon subsequent petition by the electric provider at least 3

 

months before the expiration of the second extension, the

 

commission shall, after consideration of prior extension requests

 

under this section and for good cause, establish a revised

 

renewable energy standard attainable by the electric provider. If

the electric provider achieves the revised renewable energy

 

standard, the provider is considered to be in compliance with the

 

renewable energy standard otherwise required to be achieved under

 

this subpart by 2035.

 

     (3) An electric provider that makes a good-faith effort to

 

spend the full amount of incremental costs of compliance, as

 

outlined in its approved renewable energy plan and subject to

 

section 47(6), and that complies with its approved plan, subject to

 

any approved extensions or revisions, shall be considered to be in

 

compliance with this subpart.

 

     (4) As used in this section, "good cause" includes, but is not

 

limited to, the electric provider's inability, as determined by the

 

commission, to meet a renewable energy standard because of a

 

renewable energy system feasibility limitation including, but not

 

limited to, any of the following:

 

     (a) Renewable energy system site requirements; zoning, siting,

 

or land use issues; permits, including environmental permits; any

 

certificate of necessity process under section 6s of 1939 PA 3, MCL

 

460.6s; or any other necessary governmental approvals that

 

effectively limit availability of renewable energy systems, if the

 

electric provider exercised reasonable diligence in attempting to

 

secure the necessary governmental approvals. For purposes of this

 

subdivision, "reasonable diligence" includes, but is not limited

 

to, submitting timely applications for the necessary governmental

 

approvals and making good-faith efforts to ensure that the

 

applications are administratively complete and technically

 

sufficient.

     (b) High costs of or shortages of renewable energy system

 

components or electrical equipment if the high costs or shortages

 

effectively limit availability of renewable energy systems.

 

     (c) Cost, availability, or time requirements for electric

 

transmission and interconnection.

 

     (d) Projected or actual unfavorable electric system

 

reliability or operational impacts.

 

     (e) Labor shortages that effectively limit availability of

 

renewable energy systems.

 

     (f) An order of a court of competent jurisdiction that

 

effectively limits the availability of renewable energy systems.

 

     Sec. 45. (1) For an electric provider whose rates are

 

regulated by the commission, the commission shall determine the

 

appropriate charges for the electric provider's tariffs that permit

 

recovery of the incremental cost of compliance costs authorized for

 

recovery under section 47 subject to the retail rate impact limits

 

set forth in subsection (2).

 

     (2) An electric provider shall recover the incremental cost of

 

compliance with the renewable energy standards. An electric

 

provider shall not comply with the renewable energy standards to

 

the extent that, as determined by the commission, recovery of the

 

incremental cost of compliance costs authorized for recovery under

 

section 47 will have a retail rate impact that exceeds any of the

 

following:

 

     (a) $3.00 per month per residential customer meter.

 

     (b) $16.58 per month per commercial secondary customer meter.

 

     (c) $187.50 per month per commercial primary or industrial

customer meter.

 

     (3) The retail rate impact limits of subsection (2) apply only

 

to the incremental costs of compliance costs authorized for

 

recovery under section 47 and do not apply to costs approved for

 

recovery by the commission other than as provided in this act.

 

     (4) The incremental cost of compliance shall be calculated for

 

a 20-year period beginning with approval of the renewable energy

 

plan and shall be recovered on a levelized basis.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.