Gathering Discusses RPS  & Redefines 'Work Group'
The hottest ticket in downtown Lansing this morning was the House Energy and Technology work group, which met in the Mackinac Room on the 5th floor of the House Office Building.

A very large crowd filled the large room, which stretched the definition of "work group."

"This is not our normal work group," Committee Chair Frank Accavitti, Jr. (D-Eastpointe) explained to one out-of-town attendee. Accavitti and others repeatedly caught themselves using the words "testify" only to correct the phrase with "I mean comment."

Whether it was testimony or commentary, the work group looked a lot like a hearing, and generally those attending still opposed what they had opposed all along and supported what they've supported.

The discussion in the morning was about HB 5548 and HB 5549, the alternative energy portfolio standard bills sponsored by Rep. Jeff Mayes (D-Bay City) and Rep. Dave Palsrok (R-Manistee).

The first to comment was Skip Pruss, representing the Gov. Jennifer Granholm administration. Price said he would like two changes. In HB 5548 the language pertaining to the Ludington pump storage facility, which would be in line for credit as a renewable, should, Pruss said, make it clear that the credit would be based on the facility's use of alternative energy.

The Ludington facility has already become a favorite target for opponents of the package to point out evidence that the bills have more to do with empowering government to hand out credits than actually encourage alternative energy development.

The other change Pruss said the administration would favor would be language in HB 5549 to encourage businesses that have yet to obtain permits, to continue to seek approval.  Mayes said the suggestions would be forwarded to Consumers Energy (CMS) and Detroit Edison (DTE).

Members of the Customer Choice Coalition (CCC) argued their position, which generally opposes government controls, and favors market-oriented concepts, including open bidding for alternative energy companies that the portfolio bills would impact.

Hans Detweiler of the American Wind Energy Association told the committee it wasn't thinking big enough.

"Michigan ranks in the top four in total jobs and benefits (that could be created in wind power)," Detweiler said. "What can be done to this legislation to make sure Michigan attracts the business it should? The most important factor is the size of the total market."

Detweiler claimed the model in the current proposed legislation would amount to a relatively small amount of wind power — and that amount could be produced by one large facility.   "That number is so low it's not going to excite anybody," Detweiler said.

When Detweiler said Ohio's House Speaker was suggesting a larger amount for his state's portfolio, Mayes suggested Detweiler turn in data on actual legislation in other states, not just verbal proposals.

A representative of RES America, claiming to be the world's oldest wind power company, commented that his company was "comfortable with the bill."

Kent County Public Works Director Douglas Wood commented that energy derived from burning municipal waste should be considered alternative energy under the legislation.

James Clift of the Michigan Environmental Council testified against this idea, arguing that such waste included too much fossil fuels and "doesn't fit the classic model of renewables."

Chuck Hadden, of the Michigan Manufacturers Association (MMA), commented that his group has pretty much signed off on the bills, despite disagreeing with the very idea of their existence.

"We fought very hard not to have a mandate," Hadden said. "We have dropped that, so we could have (input). Now, we're fine with what's in there."

Senate Passes Renewable Bills Sans Mandates
The Senate today green-lighted three renewable energy bills, but Democrats said they didn't go far enough to help Michigan's environment and economy.

Republicans touted the legislation as a way to increase renewable energy by letting the state lead the way, without setting a mandate for businesses. They also claimed the more comprehensive bills in the House would impose a $6 to $8 billion surcharge on consumers for the next 20 to 25 years.

They're part of the Senate Republican "Green Michigan Initiative."

SB 1000, the flagship bill sponsored by Sen. Patty Birkholz (R-Saugatuck Twp.), would require the Department of Management and Budget to purchase 3 percent of renewable electrical energy by Jan. 1, 10 percent by 2010, 20 percent by 2020 and 25 percent by 2025. The purchase requirement will exist as long as renewable energy costs within 5 percent of non-renewable energy.

House bills do have overall mandates. Gov. Jennifer Granholm wants a mandate of 10 percent by 2015 and 25 percent by 2025.

Discussions have been stalled, with a jam-packed House work group Tuesday covering much of the same ground from the last 15 months

"State government is one of the largest consumers of electrical energy in Michigan," said Sen. Randy Richardville (R-Monroe). "It makes sense for the state to lead the way and purchase more renewable energy. This will prevent taxpayers from having to pay higher utility rates while still helping Michigan use more reliable and affordable energy."

"This is a first step to energy efficiency," said Birkholz, adding there were more bills pending before the Senate Energy Policy Committee.

Sen. Liz Brater (D-Ann Arbor) said she knew Birkholz's "heart was in the right place" but she said she's received e-mails from energy efficiency experts wondering, "How low can senators set the bar?"

"This is a pretty low hanging piece of fruit," she added.

Brater and other Democrats back a government mandate for renewable portfolio standards (RPS), as more than 20 other states have. They cite expert testimony that an aggressive RPS is the key to attracting new businesses and jobs to Michigan. That's a win-win for the environment and economic development, they claim.

Sen. Buzz Thomas (D-Detroit) withdrew an amendment calling for the state to replace all incandescent light bulbs with fluorescent bulbs. Although he maintained the amendment was important and germane, he acknowledged it "didn't have a chance in heck today" to pass.

The Senate also passed SB 1040, sponsored by Sen. Roger Kahn (R-Saginaw), that would provide consumers an income tax credit up to $200 a year to offset the higher cost of renewable energy.

SB 1041, sponsored by Richardville, would require utility companies to put information on customers' bills to educate consumers about the availability of renewable energy programs and potential tax credits.

"Although consumers will not be required to purchase renewable energy, they will still have the option to buy it," Richardville said.

MSEC Meetings:

MSEC Board of Directors Meeting

When: Monday, April 14, 2008 at noon

Where:  Michigan Farm Bureau, 7373 Saginaw Street, Lansing, MI (tentative)

Dial in numbers will be announced later

Legislative Meetings