March 5, 2015, Introduced by Rep. Nesbitt and referred to the Committee on Energy Policy.
A bill to amend 2008 PA 295, entitled
"Clean, renewable, and efficient energy act,"
by amending sections 5 and 33 (MCL 460.1005 and 460.1033).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 5. As used in this act:
(a) "Electric provider", subject to sections 21(1), 23(1), and
25(1), means any of the following:
(i) Any person or entity that is regulated by the commission
for the purpose of selling electricity to retail customers in this
state.
(ii) A municipally-owned electric utility in this state.
(iii) A cooperative electric utility in this state.
(iv) Except as used in subpart B of part 2, an alternative
electric
supplier licensed under section 10a as that term is
defined
in section 10g of 1939 PA 3, MCL 460.10a.460.10g.
(b) "Eligible electric generator" means that a methane
digester or renewable energy system with a generation capacity
limited to the customer's electric need and that does not exceed
the following:
(i) For a renewable energy system, 150 kilowatts of aggregate
generation at a single site.
(ii) For a methane digester, 550 kilowatts of aggregate
generation at a single site.
(c) "Energy conservation" means the reduction of customer
energy use through the installation of measures or changes in
energy usage behavior. Energy conservation does not include the use
of advanced cleaner energy systems.
(d) "Energy efficiency" means a decrease in customer
consumption of electricity or natural gas achieved through measures
or programs that target customer behavior, equipment, devices, or
materials without reducing the quality of energy services.
(e) "Energy optimization", subject to subdivision (f), means
all of the following:
(i) Energy efficiency.
(ii) Load management, to the extent that the load management
reduces overall energy usage.
(iii) Energy conservation, but only to the extent that the
decreases in the consumption of electricity produced by energy
conservation are objectively measurable and attributable to an
energy optimization plan.
(f) Energy optimization does not include electric provider
infrastructure projects that are approved for cost recovery by the
commission other than as provided in this act.
(g) "Energy optimization credit" means a credit certified
pursuant to section 87 that represents achieved energy
optimization.
(h) "Energy optimization plan" or "EO plan" means a plan under
section 71.
(i) "Energy optimization standard" means the minimum energy
savings required to be achieved under section 77.
(j)
"Energy star" Star"
means the voluntary partnership among
the
United States department Department
of energy, Energy, the
United
States environmental protection agency, Environmental
Protection Agency, product manufacturers, local utilities, and
retailers to help promote energy efficient products by labeling
with
the energy star Energy
Star logo, educate consumers about the
benefits of energy efficiency, and help promote energy efficiency
in buildings by benchmarking and rating energy performance.
(k) "Federal approval" means approval by the applicable
regional transmission organization or other federal energy
regulatory commission approved transmission planning process of a
transmission project that includes the transmission line. Federal
approval may be evidenced in any of the following manners:
(i) The proposed transmission line is part of a transmission
project included in the applicable regional transmission
organization's board-approved transmission expansion plan.
(ii) The applicable regional transmission organization has
informed the electric utility, affiliated transmission company, or
independent transmission company that a transmission project
submitted for an out-of-cycle project review has been approved by
the applicable regional transmission organization, and the approved
transmission project includes the proposed transmission line.
(iii) If, after the effective date of this act, October 6, 2008,
the applicable regional transmission organization utilizes another
approval process for transmission projects proposed by an electric
utility, affiliated transmission company, or independent
transmission company, the proposed transmission line is included in
a transmission project approved by the applicable regional
transmission organization through the approval process developed
after
the effective date of this act.October
6, 2008.
(iv) Any other federal energy regulatory commission approved
transmission planning process for a transmission project.
Sec. 33. (1) Subject to subsections (2) and (3), an electric
provider that had 1,000,000 or more retail customers in this state
on January 1, 2008 shall obtain the renewable energy credits that
are necessary to meet the renewable energy credit standard in 2015
and thereafter as follows:
(a) At the electric provider's option, up to but no more than
50% of the renewable energy credits shall be from any of the
following:
(i) Renewable energy systems that were developed by and are
owned by the electric provider. An electric provider shall
competitively bid any contract for engineering, procurement, or
construction of any new renewable energy systems described in this
subdivision. However, an electric provider may consider unsolicited
proposals presented to it by a renewable energy system developer
outside of a competitive bid process. If the provider determines
that such an unsolicited proposal provides opportunities that may
not otherwise be available or commercially practical, the provider
may enter into a contract with the developer.
(ii) Renewable energy systems that were developed by 1 or more
third parties pursuant to a contract with the electric provider
under which the ownership of the renewable energy system may be
transferred to the electric provider, but only after the renewable
energy system begins commercial operation. Any such contract shall
be executed after a competitive bidding process conducted pursuant
to guidelines issued by the commission. However, an electric
provider may consider unsolicited proposals presented to it by a
renewable energy system developer outside of a competitive bid
process. If the provider determines that such an unsolicited
proposal provides opportunities that may not otherwise be available
or commercially practical, the provider may enter into a contract
with the developer. An affiliate of the electric provider may
submit a proposal in response to a request for proposals, subject
to
the code of conduct under section 10a(4) 10a of 1939 PA 3, MCL
460.10a, and the sanctions for violation of the code under section
10c of 1939 PA 3, MCL 460.10c.
(b) At least 50% of the renewable energy credits shall be from
renewable energy contracts that do not require transfer of
ownership of the applicable renewable energy system to the electric
provider or from contracts for the purchase of renewable energy
credits without the associated renewable energy. A renewable energy
contract or contract for the purchase of renewable energy credits
under this subdivision shall be executed after a competitive
bidding process conducted pursuant to guidelines issued by the
commission. However, an electric provider may consider unsolicited
proposals presented to it outside of a competitive bid process by a
renewable energy system developer that is not affiliated with the
electric provider. If the provider determines that such an
unsolicited proposal provides opportunities that may not otherwise
be available or commercially practical, the provider may enter into
a contract with the developer. The contract is subject to review
and approval by the commission under section 21. An electric
provider or its affiliate may not submit a proposal in response to
its own request for proposals under this subdivision. If an
electric provider selects a bid other than the lowest price
conforming bid from a qualified bidder, the electric provider shall
promptly notify the commission. The commission shall determine in
the manner provided under section 37 whether the electric provider
had good cause for selecting that bid. If the commission determines
that the electric provider did not have good cause, the commission
shall disapprove the contract.
(2) Subsection (1) does not apply to either of the following:
(a) Renewable energy credits that are transferred to the
electric provider pursuant to section 35(1).
(b) Renewable energy credits that are produced or obtained by
the electric provider from renewable energy systems for which
recovery in electric rates was approved as of the effective date of
this act, including renewable energy credits resulting from biomass
co-firing
of electric generation facilities in existence on the
effective
date of this act, October 6,
2008, except to the extent
the number of megawatt hours of electricity annually generated by
biomass co-firing exceeds the number of megawatt hours generated
during
the 1-year period immediately preceding the effective date
of
this act.October 6, 2008.
(3) An electric provider shall submit a contract entered into
pursuant to subsection (1) to the commission for review and
approval. If the commission approves the contract, it shall be
considered to be 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.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No. ____ or House Bill No. 4298 (request no.
01467'15) of the 98th Legislature is enacted into law.