Michigan Governor Signs Renewable Energy and Energy Efficiency Legislation

On October 6, 2008, Michigan Governor Jennifer Granholm signed into law three bills promoting renewable energy and energy conservation. 

S.B. 213, the “Clean, Renewable, and Efficient Energy Act,” establishes an Integrated Renewable Portfolio Standard (RPS) of 10 percent by 2015. Energy providers must comply with this new standard through renewable energy generation, renewable energy credits, and energy optimization schemes. The bill specifies biomass, solar photovoltaics and solar thermal energy, wind energy, hydroelectric power, geothermal energy, and energy generated from landfill gas capture as potential sources of renewable energy, but also allows for 20 percent of the RPS to be met with cleaner energy technology, such as integrated gas combined cycle power plants or other lower-carbon facilities. S.B. 213 establishes an Energy Efficiency Resource Standard (EERS), which mandates energy savings in increments over several years. By 2011, electricity providers must save 0.75 percent of prior-year sales and natural gas utilities must save 0.5 percent of prior-year sales. The standard will continue increasing after 2011 in increments of 1.0 percent and 0.75 percent, respectively.

S.B. 1048 allows consumers that have purchased and installed certain Energy Star products to claim an income tax credit equal to 10 percent of the cost of the product, or $100, whichever is less. H.B. 5524 expands the authorities of the state Public Service Commission to monitor utilities, oversee rate increases, and manage long-term generation plans.  It also requires utilities to implement net metering programs to harness consumer-generated electricity.   

Press Release [1] 
S.B. 213 [2]
S.B. 1048 [3]
H.B. 5524 [4]
Renewable Portfolio Standards [5]
Energy Efficiency Resource Standards [6]
Net Metering [7]