December 12, 2013, Introduced by Rep. Nesbitt and referred to the Committee on Energy and Technology.
A bill to amend 2008 PA 295, entitled
"Clean, renewable, and efficient energy act,"
by amending sections 1, 3, 7, 9, 11, and 39 (MCL 460.1001,
460.1003, 460.1007, 460.1009, 460.1011, and 460.1039).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. (1) This act shall be known and may be cited as the
"clean, renewable, and efficient energy act".
(2) The purpose of this act is to promote the development of
clean energy, renewable energy, and energy optimization through the
implementation of a clean, renewable, and energy efficient standard
that will cost-effectively do all of the following:
(a) Diversify the resources used to reliably meet the energy
needs of consumers in this state.
(b) Provide greater energy security through the use of
indigenous
energy resources available within the this state.
(c) Encourage private investment in renewable energy and
energy efficiency.
(d) Provide improved air quality and other benefits to energy
consumers and citizens of this state.
(e) Remove unnecessary burdens on the appropriate use of solid
waste as a clean energy source.
Sec. 3. As used in this act:
(a) "Advanced cleaner energy" means electricity generated
using an advanced cleaner energy system.
(b) "Advanced cleaner energy credit" means a credit certified
under section 43 that represents generated advanced cleaner energy.
(c) "Advanced cleaner energy system" means any of the
following:
(i) A gasification facility.Any system using advanced thermal
technology.
(ii) An industrial cogeneration facility.
(iii) A coal-fired electric generating facility if 85% or more
of the carbon dioxide emissions are captured and permanently
geologically sequestered.
(iv) An electric generating facility or system that uses
technologies
not in commercial operation on the effective date of
this
act.October 6, 2008.
(v) Any facility using fuel that has been manufactured in
whole or significant part from industrial waste or solid waste,
including, but not limited to, municipal solid waste and waste
described in section 11514 of the natural resources and
environmental protection act, 1994 PA 451, MCL 324.11514.
(vi) An advanced waste to energy facility.
(d) "Advanced thermal technology" means technology to achieve
thermochemical decomposition of waste at elevated temperatures with
reduced or no participation of oxygen, including, but not limited
to, gasification, pyrolysis, hydrothermal liquefaction, and plasma
arc technologies.
(e) "Advanced waste to energy facility" means a municipal
solid waste incinerator as defined in section 11504 of the natural
resources and environmental protection act, 1994 PA 451, MCL
324.11504 that is subject to regulation under 40 CFR part 60
subpart Cb, Ea, or EB.
(f) (d)
"Affiliated transmission
company" means that term as
defined in section 2 of the electric transmission line
certification act, 1995 PA 30, MCL 460.562.
(g) (e)
"Applicable regional
transmission organization" means
a nonprofit, member-based organization governed by an independent
board of directors that serves as the federal energy regulatory
commission-approved
commission approved regional transmission
organization with oversight responsibility for the region that
includes the provider's service territory.
(h) (f)
"Biomass" means any
organic matter that is not derived
from fossil fuels, that can be converted to usable fuel for the
production of energy, and that replenishes over a human, not a
geological, time frame, including, but not limited to, all of the
following:
(i) Agricultural crops and crop wastes.
(ii) Short-rotation energy crops.
(iii) Herbaceous plants.
(iv) Trees and wood, but only if derived from sustainably
managed forests or procurement systems, as defined in section 261c
of the management and budget act, 1984 PA 431, MCL 18.1261c.
(v) Paper and pulp products.
(vi) Precommercial wood thinning waste, brush, or yard waste.
(vii) Wood wastes and residues from the processing of wood
products or paper.
(viii) Animal wastes.
(ix) Wastewater sludge or sewage.
(x) Aquatic plants.
(xi) Food production and processing waste.
(xii) Organic by-products from the production of biofuels.
(i) (g)
"Board" means the wind
energy resource zone board
created under section 143.
(j) (h)
"Carbon dioxide emissions
benefits" means that the
carbon dioxide emissions per megawatt hour of electricity generated
by the advanced cleaner energy system are at least 85% less or, for
an integrated gasification combined cycle facility or an integrated
pyrolysis combined cycle facility, 70% less than the average carbon
dioxide emissions per megawatt hour of electricity generated from
all coal-fired electric generating facilities operating in this
state on January 1, 2008.
(k) (i)
"Commission" means the
Michigan public service
commission.
(l) (j)
"Customer meter" means an
electric meter of a
provider's retail customer. Customer meter does not include a
municipal water pumping meter or additional meters at a single site
that were installed specifically to support interruptible air
conditioning, interruptible water heating, net metering, or time-
of-day tariffs.
Sec. 7. As used in this act:
(a) "Gasification facility" means a facility located in this
state that uses a thermochemical process that does not involve
direct combustion to produce synthesis gas, composed of carbon
monoxide and hydrogen, from carbon-based feedstocks (such as coal,
petroleum coke, wood, biomass, hazardous waste, medical waste,
industrial waste, and solid waste, including, but not limited to,
municipal solid waste, electronic waste, and waste described in
section 11514 of the natural resources and environmental protection
act, 1994 PA 451, MCL 324.11514) and that uses the synthesis gas or
a mixture of the synthesis gas and methane to generate electricity
for commercial use. Gasification facility includes the transmission
lines, gas transportation lines and facilities, and associated
property and equipment specifically attributable to such a
facility. Gasification facility includes, but is not limited to, an
integrated gasification combined cycle facility and a plasma arc
gasification facility.
(b) "Incremental costs of compliance" means the net revenue
required by an electric provider to comply with the renewable
energy standard, calculated as provided under section 47.
(c) "Independent transmission company" means that term as
defined in section 2 of the electric transmission line
certification act, 1995 PA 30, MCL 460.562.
(d) "Industrial cogeneration facility" means a facility that
generates electricity using industrial thermal energy or industrial
waste energy.
(e) "Industrial thermal energy" means thermal energy that is a
by-product of an industrial or manufacturing process and that would
otherwise be wasted. For the purposes of this subdivision,
industrial or manufacturing process does not include the generation
of electricity.
(f) "Industrial waste energy" means exhaust gas or flue gas
that is a by-product of an industrial or manufacturing process and
that would otherwise be wasted. For the purposes of this
subdivision, industrial or manufacturing process does not include
the generation of electricity.
(g) "Integrated gasification combined cycle facility" means a
gasification facility that uses a thermochemical process, including
high temperatures and controlled amounts of air and oxygen, to
break substances down into their molecular structures and that uses
exhaust heat to generate electricity.
(h) "Integrated pyrolysis combined cycle facility" means a
pyrolysis facility that uses exhaust heat to generate electricity.
(i) (h)
"LEED" means the
leadership in energy and
environmental design green building rating system developed by the
United States green building council.
(j) (i)
"Load management" means
measures or programs that
target equipment or devices to result in decreased peak electricity
demand such as by shifting demand from a peak to an off-peak
period.
(k) (j)
"Modified net metering"
means a utility billing method
that applies the power supply component of the full retail rate to
the net of the bidirectional flow of kilowatt hours across the
customer interconnection with the utility distribution system,
during a billing period or time-of-use pricing period. A negative
net metered quantity during the billing period or during each time-
of-use pricing period within the billing period reflects net excess
generation for which the customer is entitled to receive credit
under section 177(4). Standby charges for modified net metering
customers on an energy rate schedule shall be equal to the retail
distribution charge applied to the imputed customer usage during
the billing period. The imputed customer usage is calculated as the
sum of the metered on-site generation and the net of the
bidirectional flow of power across the customer interconnection
during the billing period. The commission shall establish standby
charges for modified net metering customers on demand-based rate
schedules that provide an equivalent contribution to utility system
costs.
Sec. 9. As used in this act:
(a) "Natural gas provider" means an investor-owned business
engaged in the sale and distribution of natural gas within this
state whose rates are regulated by the commission. However, as used
in subpart B of part 2, natural gas provider does not include an
alternative gas supplier licensed under section 9b of 1939 PA 3,
MCL 460.9b.
(b) "Plasma arc gasification facility" means a gasification
facility that uses a plasma torch to break substances down into
their molecular structures.
(c) "Provider" means an electric provider or a natural gas
provider.
(d) "PURPA" means the public utility regulatory policies act
of 1978, Public Law 95-617.
(e) "Pyrolysis facility" means a facility that effects
thermochemical decomposition at elevated temperatures without the
participation of oxygen, from carbon-based feedstocks such as coal,
petroleum coke, wood, biomass, industrial waste, or solid waste,
including, but not limited to, waste described in section 11514 of
the natural resources and environmental protection act, 1994 PA
451, MCL 324.11514. Pyrolysis facility includes the transmission
lines, gas transportation lines and facilities, and associated
property and equipment specifically attributable to the facility.
Pyrolysis facility includes, but is not limited to, an integrated
pyrolysis combined cycle facility.
(f) (e)
"Qualifying small power
production facility" means
that term as defined in 16 USC 824a-3.
Sec. 11. As used in this act:
(a) "Renewable energy" means electricity generated using a
renewable energy system.
(b) "Renewable energy capacity portfolio" means the number of
megawatts calculated under section 27(2) for a particular year.
(c) "Renewable energy contract" means a contract to acquire
renewable energy and the associated renewable energy credits from 1
or more renewable energy systems.
(d) "Renewable energy credit" means a credit granted pursuant
to section 41 that represents generated renewable energy.
(e) "Renewable energy credit portfolio" means the sum of the
renewable energy credits achieved by a provider for a particular
year.
(f) "Renewable energy credit standard" means a minimum
renewable
energy portfolio required under section 27.27(3).
(g) "Renewable energy generator" means a person that, together
with its affiliates, has constructed or has owned and operated 1 or
more renewable energy systems with combined gross generating
capacity of at least 10 megawatts.
(h) "Renewable energy plan" or "plan", means a plan approved
under section 21 or 23 or found to comply with this act under
section 25, with any amendments adopted under this act.
(i)
"Renewable energy resource" means a resource that
naturally
replenishes over a human, not a geological, time frame
and
that is ultimately derived from solar power, water power, or
wind
power. Renewable energy resource does not include petroleum,
nuclear,
natural gas, or coal. A renewable energy resource comes
from
the sun or from thermal inertia of the earth and minimizes the
output
of toxic material in the conversion of the energy and
includes,
but is not limited to, all any
of the following:
(i) Biomass.
(ii) Solar and solar thermal energy.
(iii) Wind energy.
(iv) Kinetic energy of moving water, including all of the
following:
(A) Waves, tides, or currents.
(B) Water released through a dam.
(v) Geothermal energy.
(vi) Municipal solid waste, including both the biogenic and
anthropogenic fractions.
(vii) Landfill gas produced by municipal solid waste.
(viii) Fuel that has been manufactured in whole or significant
part from waste, including, but not limited to, municipal solid
waste or waste described in section 11514 of the natural resources
and
environmental protection act, 1994 PA 451, MCL 324.11514.
(j) "Renewable energy standard" means the minimum renewable
energy capacity portfolio, if applicable, and the renewable energy
credit portfolio required to be achieved under section 27.
(k) "Renewable energy system" means a facility, electricity
generation system, or set of electricity generation systems that
use 1 or more renewable energy resources to generate electricity.
Renewable energy system does not include any of the following:
(i) A hydroelectric pumped storage facility.
(ii) A hydroelectric facility that uses a dam constructed after
the
effective date of this act October
6, 2008 unless the dam is a
repair
or replacement of a dam in existence on the effective date
of
this act October 6, 2008 or an upgrade of a dam in existence on
the
effective date of this act October
6, 2008 that increases its
energy efficiency.
(iii) An incinerator unless the incinerator is an advanced waste
to
energy facility. a municipal solid
waste incinerator as defined
in
section 11504 of the natural resources and environmental
protection
act, 1994 PA 451, MCL 324.11504, that was brought into
service
before the effective date of this act, including any of the
following:
(A)
Any upgrade of such an incinerator that increases energy
efficiency.
(B)
Any expansion of such an incinerator before the effective
date
of this act.
(C)
Any expansion of such an incinerator on or after the
effective
date of this act to an approximate design rated capacity
of
not more than 950 tons per day pursuant to the terms of a final
request
for proposals issued on or before October 1, 1986.
(l) "Revenue recovery mechanism" means the mechanism for
recovery of incremental costs of compliance established under
section 21.
Sec. 39. (1) Except as otherwise provided in section 35(1), 1
renewable energy credit shall be granted to the owner of a
renewable energy system for each megawatt hour of electricity
generated from the renewable energy system, subject to all of the
following:
(a) If a renewable energy system uses both a renewable energy
resource and a nonrenewable energy resource to generate
electricity, the number of renewable energy credits granted shall
be based on the percentage of the electricity generated from the
renewable energy resource.
(b)
A renewable energy credit shall not be granted for
renewable
energy generated from a municipal solid waste incinerator
to
the extent that the renewable energy was generated by operating
the
incinerator in excess of the greater of the following, as
applicable:
(i) The incinerator's nameplate capacity rating on
January 1,
2008.
(ii) If the incinerator is expanded after the effective
date of
this
act to an approximate continuous design rated capacity of not
more
than 950 tons per day pursuant to the terms of a final request
for
proposals issued not later than October 1986, the nameplate
capacity
rating required to accommodate that expansion.
(b) (c)
A renewable energy credit shall not
be granted for
renewable energy the renewable attributes of which are used by an
electric provider in a commission-approved voluntary renewable
energy program.
(2)
Subject to subsection (3), the The
following additional
renewable energy credits, to be known as Michigan incentive
renewable energy credits, shall be granted under the following
circumstances:
(a) 2 renewable energy credits for each megawatt hour of
electricity from solar power.
(b) 1/5 renewable energy credit for each megawatt hour of
electricity generated from a renewable energy system, other than
wind, at peak demand time as determined by the commission.
(c) 1/5 renewable energy credit for each megawatt hour of
electricity generated from a renewable energy system during off-
peak hours, stored using advanced electric storage technology or a
hydroelectric pumped storage facility, and used during peak hours.
However, the number of renewable energy credits shall be calculated
based on the number of megawatt hours of renewable energy used to
charge the advanced electric storage technology or fill the pumped
storage facility, not the number of megawatt hours actually
discharged or generated by discharge from the advanced energy
storage facility or pumped storage facility.
(d) 1/10 renewable energy credit for each megawatt hour of
electricity generated from a renewable energy system constructed
using equipment made in this state as determined by the commission.
The additional credit under this subdivision is available for the
first 3 years after the renewable energy system first produces
electricity on a commercial basis.
(e) 1/10 renewable energy credit for each megawatt hour of
electricity from a renewable energy system constructed using a
workforce composed of residents of this state as determined by the
commission. The additional credit under this subdivision is
available for the first 3 years after the renewable energy system
first produces electricity on a commercial basis.
(3) A renewable energy credit expires at the earliest of the
following times:
(a) When used by an electric provider to comply with its
renewable energy credit standard.
(b) When substituted for an energy optimization credit under
section 77.
(c) Three years after the end of the month in which the
renewable energy credit was generated.
(4) A renewable energy credit associated with renewable energy
generated within 120 days after the start of a calendar year may be
used to satisfy the prior year's renewable energy standard and
expires when so used.