April 23, 2015, Introduced by Senators KNEZEK, HOPGOOD, ANANICH, SMITH, HERTEL, WARREN, YOUNG, HOOD, JOHNSON, GREGORY and BIEDA and referred to the Committee on Energy and Technology.
A bill to amend 2008 PA 295, entitled
"Clean, renewable, and efficient energy act,"
by amending section 77 (MCL 460.1077).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
77. (1) Except as provided in section sections 81 and
97(8) and subject to the sales revenue expenditure limits in
section 89, an electric provider's energy optimization programs
under this subpart shall collectively achieve the following minimum
energy savings:
(a) Biennial incremental energy savings in 2008-2009
equivalent to 0.3% of total annual retail electricity sales in
megawatt hours in 2007.
(b) Annual incremental energy savings in 2010 equivalent to
0.5% of total annual retail electricity sales in megawatt hours in
2009.
(c) Annual incremental energy savings in 2011 equivalent to
0.75% of total annual retail electricity sales in megawatt hours in
2010.
(d) Annual incremental energy savings in 2012, 2013, 2014, and
2015
and, subject to section 97, equivalent
to 1.0% of total annual
retail electricity sales in megawatt hours in the preceding year.
(e) Annual incremental energy savings in 2016 equivalent to
1.25% of total annual retail electricity sales in megawatt hours in
2015.
(f) Annual incremental energy savings in 2017 equivalent to
1.5% of total annual retail electricity sales in megawatt hours in
2016.
(g) Annual incremental energy savings in 2018 equivalent to
1.75% of total annual retail electricity sales in megawatt hours in
2017.
(h) Annual incremental energy savings in 2019 and each year
thereafter
equivalent to 1.0% 2.0% of total annual retail
electricity sales in megawatt hours in the preceding year.
(2) If an electric provider uses load management to achieve
energy savings under its energy optimization plan, the minimum
energy savings required under subsection (1) shall be adjusted by
an amount such that the ratio of the minimum energy savings to the
sum of maximum expenditures under section 89 and the load
management expenditures remains constant.
(3)
A Except as provided in section
97(8), a natural gas
provider shall meet the following minimum energy optimization
standards using energy efficiency programs under this subpart:
(a) Biennial incremental energy savings in 2008-2009
equivalent to 0.1% of total annual retail natural gas sales in
decatherms or equivalent MCFs in 2007.
(b) Annual incremental energy savings in 2010 equivalent to
0.25% of total annual retail natural gas sales in decatherms or
equivalent MCFs in 2009.
(c) Annual incremental energy savings in 2011 equivalent to
0.5% of total annual retail natural gas sales in decatherms or
equivalent MCFs in 2010.
(d) Annual incremental energy savings in 2012, 2013, 2014, and
2015
and, subject to section 97, equivalent
to 0.75% of total
annual retail natural gas sales in decatherms or equivalent MCFs in
the preceding year.
(e) Annual incremental energy savings in 2016 equivalent to
0.9375% of total annual retail natural gas sales in decatherms or
equivalent MCFs in 2015.
(f) Annual incremental energy savings in 2017 equivalent to
1.125% of total annual retail natural gas sales in decatherms or
equivalent MCFs in 2016.
(g) Annual incremental energy savings in 2018 equivalent to
1.3125% of total annual retail natural gas sales in decatherms or
equivalent MCFs in 2017.
(h) Annual incremental energy savings in 2019 and each year
thereafter
equivalent to 0.75% 1.5% of total annual retail natural
gas sales in decatherms or equivalent MCFs in the preceding year.
(4) Incremental energy savings under subsection (1) or (3) for
the 2008-2009 biennium or any year thereafter shall be determined
for a provider by adding the energy savings expected to be achieved
during a 1-year period by energy optimization measures implemented
during the 2008-2009 biennium or any year thereafter under any
energy efficiency programs consistent with the provider's energy
efficiency plan.
(5) For purposes of calculations under subsection (1) or (3),
total annual retail electricity or natural gas sales in a year
shall be based on 1 of the following at the option of the provider
as specified in its energy optimization plan:
(a) The number of weather-normalized megawatt hours or
decatherms or equivalent MCFs sold by the provider to retail
customers in this state during the year preceding the biennium or
year for which incremental energy savings are being calculated.
(b) The average number of megawatt hours or decatherms or
equivalent MCFs sold by the provider during the 3 years preceding
the biennium or year for which incremental energy savings are being
calculated.
(6) For any year after 2012, an electric provider may
substitute renewable energy credits associated with renewable
energy generated that year from a renewable energy system
constructed
after the effective date of this act, October 6, 2008,
advanced cleaner energy credits other than credits from industrial
cogeneration using industrial waste energy, load management that
reduces overall energy usage, or a combination thereof for energy
optimization credits otherwise required to meet the energy
optimization performance standard, if the substitution is approved
by the commission. The commission shall not approve a substitution
unless the commission determines that the substitution is cost-
effective and, if the substitution involves advanced cleaner energy
credits, that the advanced cleaner energy system provides carbon
dioxide emissions benefits. In determining whether the substitution
of advanced cleaner energy credits is cost-effective compared to
other available energy optimization measures, the commission shall
consider the environmental costs related to the advanced cleaner
energy system, including the costs of environmental control
equipment or greenhouse gas constraints or taxes. The commission's
determinations shall be made after a contested case hearing that
includes consultation with the department of environmental quality
on the issue of carbon dioxide emissions benefits, if relevant, and
environmental costs.
(7) Renewable energy credits, advanced cleaner energy credits,
load management that reduces overall energy usage, or a combination
thereof shall not be used by a provider to meet more than 10% of
the energy optimization standard. Substitutions for energy
optimization credits shall be made at the following rates per
energy optimization credit:
(a) 1 renewable energy credit.
(b) 1 advanced cleaner energy credit from plasma arc
gasification.
(c) 4 advanced cleaner energy credits other than from plasma
arc gasification.