Michigan Senate passes clean energy bills targeting reduced greenhouse gas emissions
After months of debate, Senate Democrats passed new legislation aimed at increasing clean and renewable energy standards in Michigan on Thursday.
The package sets new, more ambitious targets for clean and renewable energy standards in Michigan, increases the energy waste reduction standard for utility companies and gives state regulators more impetus to prioritize certain energy goals when working with those utilities.
Bills were passed along party lines Thursday — Democratic lawmakers have lauded the package as an overdue step toward addressing climate change in Michigan. Republicans, however, likened the legislation to the “Green New Deal” policies embraced by some progressives in Washington. Republican lawmakers attempted to adopt a series of amendments to the bills Thursday, but could not garner bipartisan support.
“This legislation marks the beginning of taking bold action to address this urgent crisis, one that is a clear and present danger, and failure to tackle it meaningfully cannot be an option. In fact, the cost of doing nothing is dire and detrimental to the health and welfare of our state and her people,” said Sen. Erika Geiss, D-Taylor.
“Clean energy legislation is crucial in combating the climate crisis, to reduce greenhouse gas emissions and transition to renewable energy sources.”
Senate Bill 271 requires utilities to generate energy using at least 15% renewables through 2027, 50% from 2030 to 2034, and then 60% from 2035 on. Separately, utilities would be required to have clean energy portfolios of 80% by 2035 and reach 100% clean energy by 2040. The 50% renewable energy target for 2030 matches the goal set by Gov. Gretchen Whitmer in the MI Healthy Climate Plan unveiled last year.
Michigan’s two largest utilities, DTE Energy and Consumers Energy, have previously outlined targets for clean energy generation, but have not been required to do so. Consumers, based in Jackson, has said it aims to reach carbon neutrality by 2040. DTE, based in Detroit, has said it’s aiming to be carbon neutral by 2050.
“Clean” energy doesn’t necessarily have to come from renewable sources, hence the different targets outlined in the legislation. SB 271, introduced by Geiss, states that clean energy sources generate electricity without emitting greenhouse gases. This includes nuclear generation and natural gas generation that can capture 90% of carbon emissions.
A renewable energy source “minimizes the output of toxic material in the conversion of energy,” according to the bill, and includes electricity generated by wind, solar and hydroelectric facilities, as well as certain biomass and methane gas products, depending on how they are generated. Energy sources like petroleum, nuclear, coal and industrial waste are not considered renewable.
Republican lawmakers said phasing out energy generation sources like coal and natural gas will lead to less reliable electric service and increased costs.
“The simple reality is that forcing the end of reliable energy production for less reliable and more expensive energy at increasing rates will only increase costs,” said Sen. Mark Huizenga, R-Walker.
Utility companies can obtain “good cause” extensions to the deadlines for their renewable energy portfolios of up to two years if they can show they are making efforts to meet the deadlines. Good cause extensions could also be granted if costs for customers would rise despite the efforts of utility companies.
Initially, when the clean energy package was introduced earlier this year, lawmakers called for utilities to have renewable energy portfolios of 60% by 2030 and 100% renewable portfolios by 2035. The clean energy package went through a series of committee hearings in the Senate before substitute bills were reported Wednesday.
SB 271 also boosts the amount of distributed generation permitted from 1% to 10%. Distributed generation is electricity generated where it will be used, and normally consists of rooftop solar panels.
Senate Bill 273, approved by lawmakers Thursday, increases the energy waste reduction requirements for electric generation from 1% to 1.5%, while setting a goal (but not a requirement) of 2%.
“We have shown, working with our providers, we can provide energy efficiency that saves money for all of our residents,” said bill sponsor Sen. Sam Singh, D-East Lansing.
SB 273 also outlines equity goals for utility companies to meet — including offering energy efficiency savings programs in low-income areas and requiring utilities to hire diverse workforces for energy waste reduction programs.
Senate Bill 502, introduced by Sen. Sue Shink, D-Northfield Township, would direct the Michigan Public Service Commission to prioritize certain goals, like ensuring equitable access to energy efficiency programs and increasing the amounts that utility companies must pay in cost recovery cases. The bill also would require utility companies to outline their plans for service reliability, affordability and service quality in the integrated resource plans they submit to the MPSC. Those plans are outlines of how utility companies plan on providing energy to their customers.
DTE and Consumers are both opposed to SB 502, according to testimony cards read in during a committee hearing Wednesday. The utilities are neutral on SB 271 and 273.
Lawmakers also passed a bill, Senate Bill 519, to create a Community and Worker Economic Transition Office within the Michigan Department of Labor and Economic Opportunity. The office will be tasked with assisting workers to transition to new industries created as the state’s economy pivots to renewable energy generation. The bill specifically points to the transition to electric vehicles in the auto industry, something UAW leaders have also made a lynchpin in negotiations with the Detroit Three automakers.
Republican lawmakers voted against the legislation. Sen. Ed McBroom, R-Waucedah Township, said it shouldn’t be the role of government to train workers in new industries, it should be done by the businesses hiring those workers.
The bills now advance to the Michigan House of Representatives for consideration. In the House, lawmakers have introduced similar clean energy legislation of their own, and have held hearings in recent months. Bills have to pass both chambers before they can advance to Gov. Gretchen Whitmer’s desk for signature. Whitmer, in a policy address given in the late summer, backed clean energy legislation.
Environmental advocates have applauded the legislation — a coalition of organizations have backed the bills through the legislative process this year.
“This package represents important and significant progress and makes Michigan a regional partner in the fight to address climate change in the Midwest,” said Lisa Wozniak, executive director for the Michigan League of Conservation Voters, in a statement issued Thursday.
Some business groups and trade organizations, however, are opposed to the bills. Great Lakes Growth, a coalition of business organizations including the Michigan Chamber of Commerce and Michigan Manufacturers Association, has signaled opposition to the package. Mike Johnston, executive vice president of government affairs and workforce development for the Michigan Manufacturers Association, previously said in committee hearings that utility companies have already outlined clean energy goals, and the new legislation is a “fundamental shift from goals to mandates.”
Contact Arpan Lobo: alobo@freepress.com. Follow him on X (Twitter) @arpanlobo.
This article originally appeared on Detroit Free Press: Michigan Senate passes legislation setting new goals for clean energy
