Senate approves comprehensive energy plan for Michigan
LANSING-The Michigan Legislature today approved measures that will encourage increased use and production of renewable energy in Michigan and advance investment in the state’s energy infrastructure, said Sen. Randy Richardville.
“Lawmakers from both parties in the House and Senate worked together to develop this comprehensive energy strategy,” Richardville said. “This bipartisan package gives Michigan job providers a realistic ability to plan for their future business and energy needs. It also promotes the importance of clean, renewable resources of electric power.”
Senate Bill 213 will create a Renewable Portfolio Standard of 10 percent and will give Michigan the flexibility to meet a targeted and integrated renewable energy standard. It allows businesses to meet this aggressive renewable standard through energy optimization, net metering, and advanced clean technologies.
The other major piece of the package, House Bill 5524, provides the state’s existing power providers with a guaranteed market share in exchange for a return to an updated version of a more regulated market.
The legislation will also:
- Provide a 25 percent income tax credit to residents for rate increases due to the RPS for the first three years;
- Cap the costs for residents of implementing the RPS to $3 per month;
- Require utility companies to clearly list the cost of RPS fees on customer bills;
- Decrease the state’s reliance on out-of-state generation of electricity; and
- Limit cost overruns on new plant construction to 10 percent.
“My colleagues and I spent many hours in committee hearings, workgroups and meetings with all interested parties to reach a compromise on this legislation,” Richardville said. “The passage of this important energy package shows that legislators can come together to develop and pass sound public policy.”
With the adoption of the legislation, Michigan will join 28 other states that offer energy efficiency programs and have established a RPS to encourage greater reliance on clean, renewable resources of electric power.
Richardville was appointed to both energy conference committees by Sen. Majority Leader Michael D. Bishop.
“Sen. Richardville’s unique background with energy-related issues made him an excellent candidate for the negotiation process,” said Bishop, R-Rochester. “In addition to his knowledge of these complex energy issues, he is known as a legislative leader who works in a bipartisan manner to negotiate deals and get the job done. That's why I trusted him to be the only member of our caucus to serve on both conference committees.”
Posted: Thursday, September 18, 2008
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