Advocacy News – Nov. 3, 2023
Late last night House Democrats took up a series of bills that would place aggressive renewable and clean energy mandates onto electric providers. Under this legislation electricity utilized on Michigan’s grid will have to be 50% renewable by 2034 and 60% by 2035, with a clean energy standard of 100% by 2040. While the Chamber successfully worked to amend the bills to avoid certain dire consequences, it is still the belief by energy experts that these new legal restrictions to energy production are unachievable and will lead to higher prices and lower reliability.
Why it Matters: Michigan relies on a diverse supply of energy generating assets to ensure Michigan businesses and families have the power they need when they need it. The regulatory process has historically been structured in a way that allowed electric providers flexibility around what worked best for their customers. Now lawmakers have created strict requirements for what technologies can be used to power our state, creating the need for billions of new investments into the grid that will ultimately be paid for by ratepayers.
What we’re saying: These bills were strongly opposed by local government advocates seeking to preserve local control. The MI Chamber worked to educate lawmakers starting early in the year that renewable siting reform was a critical barrier to developing more renewable energy capacity in the state and therefore should be addressed, but did not take a prescriptive stance on how the problem should be solved.
What’s next: The bills now move back to the Senate for concurrence and are likely to be sent to the Governor’s desk next week. The House also passed legislation that would put the siting of renewable energy projects in the hands of state officials at the Michigan Public Service Commission.
While the bills are a significant shift away from how renewable projects are permitted today, local communities will continue to play an important role in the decision-making process. This will also open the door for economic development and increased tax revenues within rural and underdeveloped areas of the state.
For questions, contact Mike Alaimo at malaimo@michamber.com.