2023 Senate Bill 271 / Public Act 235

Energy: alternative sources; energy storage, clean energy, and increased renewable energy; set targets for.

An act to amend 2008 PA 295, entitled “An act to require certain providers of electric service to establish and recover costs for renewable energy programs; to require certain providers of electric or natural gas service to establish energy waste reduction programs; to authorize the use of certain energy systems to meet the requirements of those programs; to provide for the approval of energy waste reduction service companies; to reduce energy waste by state agencies and the public; to create a wind energy resource zone board and provide for its power and duties; to authorize the creation and implementation of wind energy resource zones; to provide for expedited transmission line siting certificates; to provide for customer generation and net metering programs and the responsibilities of certain providers of electric service and customers with respect to customer generation and net metering; to provide for fees; to prescribe the powers and duties of certain state agencies and officials; to require the promulgation of rules and the issuance of orders; to authorize the establishment of residential energy improvement programs by providers of electric or natural gas service; and to provide for civil sanctions, remedies, and penalties,” by amending the title, the heading of subpart A of part 2, and sections 1, 3, 5, 7, 9, 11, 13, 22, 28, 29, 39, 45, 47, 49, 173, 177, and 191 (MCL 460.1001, 460.1003, 460.1005, 460.1007, 460.1009, 460.1011, 460.1013, 460.1022, 460.1028, 460.1029, 460.1039, 460.1045, 460.1047, 460.1049, 460.1173, 460.1177, and 460.1191), the title and sections 1, 3, 5, 7, 9, 11, 13, 29, 39, 45, 47, 49, 173, and 177 as amended and sections 22 and 28 as added by 2016 PA 342, and by adding sections 32, 51, 53, 101, and 103.

Mackinac Center Analysis

This legislation will further expose the state’s electrical system to instability and price increases.

Introduced in the Senate

April 19, 2023

Introduced by Sen. Erika Geiss (D-1) and 13 co-sponsors

Co-sponsored by Sens. Sam Singh (D-28), Mallory McMorrow (D-8), Mary Cavanagh (D-6), Jeff Irwin (D-15), Sylvia Santana (D-2), Sue Shink (D-14), Stephanie Chang (D-3), Darrin Camilleri (D-4), Kevin Hertel (D-12), Jeremy Moss (D-7), Rosemary Bayer (D-13), Winnie Brinks (D-29) and Sarah Anthony (D-21)

Referred to the Committee on Energy and Environment

Oct. 25, 2023

Reported with substitute S-2

Oct. 26, 2023

Referred to the Committee of the Whole

Reported with substitute S-3

Substitute S-3 concurred in by voice vote

Amendment offered by Sen. Ed McBroom (R-38)

1. Amend page 6, following line 22, by inserting:

“(iii) Is a reciprocating internal combustion engine placed in service to facilitate the retirement of coal-fired generation located in the Upper Peninsula before the effective date of the amendatory act that added this subparagraph. This subparagraph does not apply after the end of the Midcontinent Independent System Operator planning year ending in 2050.” and renumbering the remaining subparagraph.

2. Amend page 16, line 1, after “that” by inserting a comma and “except as provided in subparagraph (iii),”.

3. Amend page 16, following line 14, by inserting:

“(iii) A reciprocating internal combustion engine placed in service to facilitate the retirement of coal-fired generation located in the Upper Peninsula before the effective date of the amendatory act that added this subparagraph. This subparagraph does not apply after the end of the Midcontinent Independent System Operator planning year ending in 2050.”.

The amendment failed 18 to 20 (details)

Amendment offered by Sen. Aric Nesbitt (R-20)

1. Amend page 14, line 10, by striking out “nuclear,”.

2. Amend page 14, line 11, after “coal.” by striking out “A renewable energy resource comes” and inserting “Renewable energy resource includes nuclear fuel. Other renewable energy resources come”.

3. Amend page 14, line 13, by striking out “minimizes” and inserting “minimize”.

4. Amend page 14, line 14, after “and” by striking out “includes, but is” and inserting “include, but are”.

5. Amend page 16, following line 14, by inserting:

“(iii) A nuclear power plant.”.

The amendment failed 18 to 20 (details)

Amendment offered by Sen. Michele Hoitenga (R-36)

1. Amend page 59, following line 7, by inserting:

“Enacting section 2. This amendatory act does not take effect unless Senate Bill No. 61 of the 102nd Legislature is enacted into law.”.

The amendment failed 18 to 20 (details)

Amendment offered by Sen. Joseph Bellino (R-16)

1. Amend page 59, following line 7, by inserting:

“Enacting section 2. This amendatory act does not take effect unless Senate Bill No. 10 of the 102nd Legislature is enacted into law.”.

The amendment failed 18 to 20 (details)

Amendment offered by Sen. John Damoose (R-37)

1. Amend page 59, following line 5, by inserting:

“(3) If statewide average customer electric rate increases for 2025 or any subsequent calendar year exceed the increase in the Consumer Price Index for that year, the commission shall by order permanently suspend the application of the amendatory act that added section 51 and the amendatory act that added section 53.

(4) As used in this section, “Consumer Price Index” means the most comprehensive index of consumer prices available for this state from the Bureau of Labor Statistics of the United States Department of Labor.”.

The amendment failed 18 to 20 (details)

Amendment offered by Sen. Jonathan Lindsey (R-17)

1. Amend page 53, line 29, after “program” by inserting “for eligible electric generators other than rooftop solar”.

The amendment failed 18 to 20 (details)

Amendment offered by Sen. Jonathan Lindsey (R-17)

1. Amend page 16, line 2, by striking out “use” and inserting “uses”.

2. Amend page 16, line 3, after “steam” by inserting “and that, if installed after the effective date of the amendatory act that added section 51, was manufactured in the United States”.

The amendment failed 18 to 20 (details)

Amendment offered by Sen. Aric Nesbitt (R-20)

1. Amend page 59, line 7, after “law.” by inserting “However, this amendatory act does not take effect until the Midcontinent Independent System Operator issues a report concluding that this amendatory act will increase or maintain grid reliability.”.

The amendment failed 18 to 20 (details)

Amendment offered by Sen. Aric Nesbitt (R-20)

1. Amend page 59, following line 7, by inserting:

“Enacting section 2. This amendatory act does not take effect unless House Bill No. 4002 of the 102nd Legislature is enacted into law.”.

The amendment failed 18 to 20 (details)

Amendment offered by Sen. Dan Lauwers (R-25)

1. Amend page 59, line 6, after “effect” by striking out the balance of the bill and inserting “January 1, 2025.”.

The amendment failed 18 to 20 (details)

Amendment offered by Sen. Dan Lauwers (R-25)

1. Amend page 59, following line 5, by inserting:

“(3) If statewide average customer electric rate increases after the effective date of the amendatory act that added this subsection exceed 10%, the commission shall by order permanently suspend the application of the amendatory act that added this subsection.”.

The amendment failed 18 to 20 (details)

Amendment offered by Sen. Dan Lauwers (R-25)

1. Amend page 59, following line 5, by inserting:

“(3) If statewide average customer electric rate increases exceed 20% after the effective date of the amendatory act that added this subsection, the commission shall, by order, permanently suspend the application of the amendatory act that added this subsection.”.

The amendment failed 18 to 20 (details)

Amendment offered by Sen. Dan Lauwers (R-25)

1. Amend page 59, following line 5, by inserting:

“(3) If statewide average customer electric rate increases after the effective date of the amendatory act that added this subsection exceed 30%, the commission shall by order permanently suspend the application of the amendatory act that added this subsection.”.

The amendment failed 18 to 20 (details)

Amendment offered by Sen. Aric Nesbitt (R-20)

1. Amend page 59, following line 5, by inserting:

“(3) If the commission determines that the amendatory act that added this subsection fails to lower statewide average electric costs, the commission shall by order permanently suspend the application of the amendatory act that added this subsection.”.

The amendment failed 18 to 20 (details)

Amendment offered by Sen. Aric Nesbitt (R-20)

1. Amend page 2, line 23, by striking out the balance of the line and inserting ““unreliable and unaffordable energy act”.”.

The amendment failed 18 to 20 (details)

Passed in the Senate 20 to 18 (details)

Received in the House

Oct. 31, 2023

Referred to the Committee on Energy, Communications, and Technology

Nov. 1, 2023

Reported without amendment

Nov. 3, 2023

Amendment offered by Rep. Pat Outman (R-91)

1. Amend page 16, line 2, by striking out “use” and inserting “uses”.

2. Amend page 16, line 3, after “steam” by inserting “and that, if installed after the effective date of the amendatory act that added section 51, was manufactured in the United States”.

The amendment failed by voice vote

Amendment offered by Rep. Joseph Aragona (R-60)

1. Amend page 59, line 7, after “law.” by inserting “However, this amendatory act does not take effect until the Midcontinent Independent System Operator issues a report concluding that this amendatory act will increase or maintain grid reliability.”.

The amendment failed by voice vote

Amendment offered by Rep. Kathy Schmaltz (R-46)

1. Amend page 59, following line 5, by inserting:

“(3) If statewide average customer electric rate increases after the effective date of the amendatory act that added this subsection exceed 30%, the commission shall by order permanently suspend the application of the amendatory act that added this subsection.”.

The amendment failed by voice vote

Amendment offered by Rep. Mark Tisdel (R-55)

1. Amend page 5, following line 22, by inserting:

“(d) “Capacity” means the maximum output, commonly expressed in megawatts, that generating equipment can supply to system load, adjusted for ambient conditions.” and relettering the remaining subdivisions.

2. Amend page 12, following line 21, after by inserting:

“(a) “Nameplate capacity” means the maximum rated output, commonly expressed in megawatts, of a generator, prime mover, or other electric power production equipment under specific conditions designated by the manufacturer, and usually indicated on a nameplate physically attached to the generator.” and relettering the remaining subdivisions.

The amendment failed by voice vote

Amendment offered by Rep. Mark Tisdel (R-55)

1. Amend page 14, line 11, after “coal” by inserting “or any resource produced using forced labor or child labor in violation of international standards”.

The amendment failed by voice vote

Amendment offered by Rep. Mark Tisdel (R-55)

1. Amend page 14, line 11, after “coal.” by inserting “Renewable energy resource does not include any resource manufactured or distributed using petroleum, nuclear, natural gas, or coal.”.

The amendment failed by voice vote

Amendment offered by Rep. David Prestin (R-108)

1. Amend page 6, following line 22, by inserting:

“(iii) Is a reciprocating internal combustion engine placed in service to facilitate the retirement of coal-fired generation located in the Upper Peninsula before the effective date of the amendatory act that added this subparagraph. This subparagraph does not apply after the end of the Midcontinent Independent System Operator planning year ending in 2050.” and renumbering the remaining subparagraph.

2. Amend page 16, line 1, after “that” by inserting a comma and “except as provided in subparagraph (iii),”.

3. Amend page 16, following line 14, by inserting:

“(iii) A reciprocating internal combustion engine placed in service to facilitate the retirement of coal-fired generation located in the Upper Peninsula before the effective date of the amendatory act that added this subparagraph. This subparagraph does not apply after the end of the Midcontinent Independent System Operator planning year ending in 2050.”.

The amendment failed by voice vote

Amendment offered by Rep. Curtis VanderWall (R-102)

1. Amend page 6, line 20, after “51.” by striking out the balance of the subparagraph.

The amendment failed by voice vote

Amendment offered by Rep. Dylan Wegela (D-26)

1. Amend page 6, line 11, by striking out all of subparagraph (ii) and renumbering the remaining subparagraphs.

The amendment failed by voice vote

Amendment offered by Rep. Bryan Posthumus (R-90)

1. Amend page 14, line 10, after “polymers,” by striking out “tires, tire-derived fuel,”.

2. Amend page 16, line 27, after “biomass” by striking out “with tires or tire-derived fuel”.

The amendment failed by voice vote

Substitute H-5 offered by Rep. Abraham Aiyash (D-9)

The substitute passed by voice vote

Amendment offered by Rep. Phil Skaggs (D-80)

1. Amend page 17, line 13, after “municipal” by striking” wastewater” and inserting “solid waste”.

2. Amend page 18, line 4, after “municipal” by inserting “solid”

The amendment passed by voice vote

Amendment offered by Rep. Jenn Hill (D-109)

1. Amend page 15, line 27, after “nuclear,” by striking out “natural gas,”.

2. Amend page 17, following line 13, by inserting:

“(ix) Natural gas.”.

The amendment failed by voice vote

Amendment offered by Rep. Dylan Wegela (D-26)

1. Amend page 6, line 14, by striking all of subparagraph (ii) and renumbering the remaining subparagraphs.

The amendment failed by voice vote

Amendment offered by Rep. John Fitzgerald (D-83)

1. Amend page 34, line 29, after “thereafter.” by inserting “A renewable energy system described in section 11(j) (iii) shall, by January 1, 2035, file a decommissioning plan with the county in which the facility is located detailing its plans to retire and decommission the facility not later than January 1, 2040.”.

The amendment passed by voice vote

Passed in the House 56 to 51 (details)

Motion to give immediate effect by Rep. Abraham Aiyash (D-9)

The motion prevailed by voice vote

Received in the Senate

Nov. 7, 2023

Nov. 8, 2023

Amendment offered by Sen. Ed McBroom (R-38)

1. Amend page 52, line 17, after “By” by striking out “December 1, 2024,” and inserting “30 days after the effective date of the amendatory act that added this section,”.

2. Amend page 52, line 22, after “report” by striking out the balance of the subsection and inserting “based on the report “Upper Peninsula Energy Task Force Committee Recommendations: Part II – Energy Supply” prepared by the UP Energy Task Force created by Executive Order No. 2019-14.”.

The amendment failed 17 to 20 (details)

Amendment offered by Sen. Ed McBroom (R-38)

1. Amend page 7, following line 8, by inserting:

“(iv) Is a reciprocating internal combustion engine placed in service to facilitate the retirement of coal-fired generation located in the Upper Peninsula before the effective date of the amendatory act that added this subparagraph. This subparagraph does not apply after the end of the Midcontinent Independent System Operator planning year ending in 2050.” and renumbering the remaining subparagraph.

2. Amend page 17, line 19, after “that” by inserting a comma and “except as provided in subparagraph (iv),”.

3. Amend page 18, following line 11, by inserting:

“(iv) A reciprocating internal combustion engine placed in service to facilitate the retirement of coal-fired generation located in the Upper Peninsula before the effective date of the amendatory act that added this subparagraph. This subparagraph does not apply after the end of the Midcontinent Independent System Operator planning year ending in 2050.”.

The amendment failed by voice vote

Amendment offered by Sen. Ed McBroom (R-38)

1. Amend page 62, following line 29, by inserting:

“Enacting section 2. This amendatory act does not take effect unless approved by a majority of the electors of this state voting on the question at the general election to be held November 5, 2024. This amendatory act shall be submitted to the qualified electors of this state at that election as provided by the Michigan election law, 1954 PA 116, MCL 168.1 to 168.992. If approved by the electors, this amendatory act takes effect 90 days after the date of the official declaration of the vote.”.

The amendment failed 17 to 20 (details)

Substitute H-5 concurred in 20 to 17 (details)

Signed by Gov. Gretchen Whitmer

Nov. 29, 2023