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Mackinac Center for Public Policy
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2007 House Bill 5549: Impose “renewable energy” mandates on utilities
  1. Introduced by Rep. David Palsrok (R) on December 6, 2007, to mandate that electric utilities acquire a certain amount of their power from “renewable” sources, with the specifics to be determined by the Public Service Commission according to a formula contained in the bill. The commission would have discretion to grant exemptions. "Renewable energy" is defined as that generated by biomass, geothermal, solar, wind, hydroelectric, industrial cogeneration, and gas captured from the decomposition of waste. Nuclear power is not included in the definition, but is not explicitly excluded as in other similar bills.
    • Referred to the House Energy and Technology Committee on December 6, 2007.
      • Reported in the House on January 24, 2008, with the recommendation that the substitute (H-1) be adopted and that the bill then pass.
    • Substitute offered in the House on April 17, 2008, to replace the previous version of the bill with one that makes substantive revisions based on months of lobbying and negotiations. This version was subsequently superseded by another substitute with more changes. The substitute failed by voice vote in the House on April 17, 2008.
    • Substitute offered by Rep. David Palsrok (R) on April 17, 2008, to replace the previous version of the bill with one that makes substantive revisions based on months of lobbying and negotiations. See House-passed version for details. The substitute passed by voice vote in the House on April 17, 2008.
    • Amendment offered by Rep. Kevin Green (R) on April 17, 2008, to clarify a technical provision in the bill so the language of the amended law is internally consistent. The amendment passed by voice vote in the House on April 17, 2008.
    • Amendment offered by Rep. Bill Huizenga (R) on April 17, 2008, to suspend the renewable energy mandates if an annual report the Public Service Commission would be required to prepare shows that this regime does not result in specified levels of "cumulative net job creation" in the state, meaning more "renewable energy" jobs are created than jobs are lost in other sectors of the economy because of the higher electricity prices the proposed law would generate.
      • Withdrawn in the House on April 17, 2008.
  2. Passed 82 to 21 in the House on April 17, 2008, to mandate that Michigan electric utilities acquire 4 percent of their power from "renewable" sources by the end of 2012, and 10 percent by the end of 2015. The mandate would be reduced to the extent it increased residential rates by more than $3 per month, and on commercial customers from $15.83 to $187.50 per month. Utilities could meet the mandate by producing or purchasing renewable energy, or purchasing "credits" from a firm that exceeded the mandate. The provisions creating this regime are divided between this and House Bill 5548.
    Who Voted "Yes" and Who Voted "No"

  3. Moved to reconsider by Rep. Steve Tobocman (D) on April 17, 2008, the vote by which the House passed the bill. The motion passed by voice vote in the House on April 17, 2008.
  4. Received in the House on April 17, 2008, to mandate that Michigan electric utilities acquire 4 percent of their power from "renewable" sources by the end of 2012, and 10 percent by the end of 2015. The mandate would be reduced to the extent it increased residential rates by more than $3 per month, and on commercial customers from $15.83 to $187.50 per month. Utilities could meet the mandate by producing or purchasing renewable energy, or purchasing "credits" from a firm that exceeded the mandate. The provisions creating this regime are divided between this and House Bill 5548. Passed 84 to 21 in the House on April 17, 2008.
    Who Voted "Yes" and Who Voted "No"

  5. Received in the Senate on April 22, 2008.
    • Referred to the Senate Energy Policy & Public Utilities Committee on April 22, 2008.
      • Reported in the Senate on June 17, 2008, with the recommendation that the substitute (S-1) be adopted and that the bill then pass.

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