ADD ANAEROBIC DIGESTER TO PACE PROGRAM

Senate Bill 375 (S-1) as passed by the Senate

Sponsor:  Sen. Darwin L. Booher

House Committee:  Agriculture

Senate Committee:  Local Government

Complete to 10-31-17

SUMMARY:

Senate Bill 375 would amend the Property Assessed Clean Energy Act (PACE) by adding anaerobic digester energy systems to the PACE program.

Under the bill, an “anaerobic digester” would mean a device for optimizing the anaerobic digestion of biomass for the purpose of recovering biofuel for energy production.

“Anaerobic digester energy system” would mean an anaerobic digester and the devices used to generate electricity or heat from biogas produced by the anaerobic digester or to store the biogas for the future generation of electricity or heat.

The bill would also add “anaerobic digester energy system” to the definition of “energy project,” and a local unit of government would be required to obtain verification that a system was properly installed and operating as intended at the completion of an energy project.

If enacted, the bill would take effect 90 days after enactment.

MCL 460.933 and 460.939

FISCAL IMPACT:

Senate Bill 375 would have a minimal fiscal impact on local units of government generally.  The fiscal impact for each local government would be directly related to the local government's usage of anaerobic digesters in its PACE plan and their impact on development and property values.  Local governments retain discretion regarding the creation of PACE programs.

                                                                                        Legislative Analyst:   Emily S. Smith

                                                                                                Fiscal Analyst:   Ben Gielczyk

                                                                                                                           Jim Stansell

■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.