After almost two years of debate, and much compromising, the Michigan legislature took a few halting steps down the path to our new, clean energy future when they passed a package of energy legislation on September 18th. It was clearly not strong enough, but it represents some modest gains and will push investment in renewable energy.
The following is a brief overview of key elements included in Michigan's new energy laws:
1. Utilities must get 10% of their energy from renewable sources by 2015.
Michigan has become the 28th state to adopt a renewable energy standard. Many other states get much larger percentages of their power from renewable sources, but we now have some requirement that utilities invest in clean energy like wind and solar power. While Clean Water Action is pushing for 25% renewable energy by 2025, this 10% standard is a good start.
2. Energy efficiency programs must be created to save at least 1% of the state's energy use by 2012.
Energy efficiency programs will be revived. These programs will keep residents and business owners from wasting so much valuable energy while saving ratepayer dollars. Energy efficiency funds will be used to add insulation to homes and will give help to customers who need to upgrade their doors, windows and appliances.
3. Integrated Resource Planning must now be used before a new power source is built.
This ensures that utilities weigh the huge economic and health costs of new polluting power sources against the many benefits of renewable energy and efficiency programs.
4. Net metering provisions were created.
Net metering enables Michigan homeowners and businesses to get paid for the extra power that they give back to the utility. The power will come from solar or wind energy they create on their property. Net metering will do a lot to push the investment in renewable resources.
5. Customers will be educated on renewables and efficiency savings.
Provisions in the legislation will require utilities to list efficiency savings on customer's energy bills. There will also be information that outlines how good of an investment renewables are compared to expensive, polluting coal power.
Even though these first steps were made, there are many ways in which the energy package fell short. Clean Water Action has already begun the next phase of our energy campaign and is working to amp-up the legislation so that Michigan can become a true leader in renewable energy and energy efficiency.