The legislature finalized their plan establishing new energy standards and reforming renewable energy oversight. While the package makes several changes in the energy sphere, one of the most highly discussed aspects moves the approval of large-scale renewable energy projects from local units of government to the Michigan Public Service Commission (MPSC).
Key Points:
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- Establishes a clean energy standard of 80% by 2035 and 100% by 2040.
- Establishes a renewable energy standard of 50% by 2030 and 60% by 2035.
- Requires electric utilities to achieve a minimum of 1.5% annual electric energy efficiency savings, with an additional incentive goal of 2% and over.
- Sets the natural gas energy waste reduction (EWR) target to 0.875% beginning in 2026 and provides financial incentives for exceeding that target up to 1.25%.
- Creates a low-income EWR program for residents with low incomes or living in multi-family properties to have access to energy efficiency programs.
- Requires the MPSC to add affordability and overall cost-effectiveness to its consideration in the Integrated Resource Planning process.
Next Steps:
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- The bills will be sent to Governor Whitmer for her consideration.
