LOW INCOME ENERGY ASSISTANCE S.B. 879:
REVISED SUMMARY OF INTRODUCED BILL
IN COMMITTEE
Senate Bill 879 (as introduced 5-22-24)
Committee: Energy and Environment
CONTENT
The bill would amend Public Act 3 of 1939, the Public Service Commission law, to require the Department of Health and Human Services (DHHS) to do the following:
-- Ensure that the Low-income Energy Assistance Fund was administered to promote statewide access to the Michigan Energy Assistance Program (MEAP), in consultation with the Michigan Public Services Commission (MPSC).
-- Provide to the Legislature a report on the distribution of funds from the Fund by October 1 of each year starting in 2027.
Under the bill, the DHHS, in consultation with the MPSC, would have to ensure it was administered to promote all the following:
-- Statewide access to MEAP and that funds collected from a specific geographic area were, to the extent possible, returned to eligible low-income customers in that specific geographic area.
-- Collaboration between DHHS, MPSC, energy providers, and entities that administer assistance programs to ensure that low-income customers in a participating geographical area were receiving funds proportional to what customers in that geographical area were being assessed.
-- For energy providers and entities that administer assistance programs, education and outreach on availability of the assistance programs and funding.
Beginning October 1, 2027, and by each October 1 after, the DHHS would have to provide to the House and Senate appropriations committees for the DHHS budget and the House and Senate standing committees on energy a report that contained all the following information:
-- The distribution of money from the Fund across the State.
-- Each geographic area where funds were collected, and the extent to which the funds were returned to the geographic area from which the funds were collected.
-- A summary of the education, marketing, and outreach to improve the distribution of funds.
-- For an electric utility, municipally owned electric utility, or cooperative electric utility that served fewer than 45,000 retail customers, the total amount of funds collected from the retail customers and the total amount of funds distributed to eligible low-income customers in the electric utility's, municipally owned electric utility's, or cooperative electric utility's geographic area.
MCL 460.9t Legislative Analyst: Nathan Leaman
FISCAL IMPACT
The bill could have a fiscal impact on State government and no fiscal impact on units of local government.
The bill would require the DHHS to produce an annual report starting on October 1, 2027. To the extent that the reporting required additional staff resources to produce the report that did exist in the DHHS, there would be a fiscal impact to State government. The cost to DHHS to produce a statutorily required report would depend on the time it took to collect and compile the information required. The bill would require the DHHS to submit a report on the MEAP, which is based in the Department of Licensing and Regulatory Affairs and housed within the MPSC. The MPSC would likely see an increase in costs due to the added data collection and reporting needed to create the required reports. This would likely include new software and possible upgrades to the current information and technology systems used by the MPSC.
For context on the MEAP, the following two tables show data from 2017 through 2023 of the distribution of collection of Low-income Energy Assistance Fund (LIEAF) by participating electric service providers and distribution of MEAP funds by county.
Table 1
|
LIEAF Remittances from 2017 2023 by Electric Service Provider |
||
|
Electric Service Providers |
Total |
Years Reported |
|
Alger Delta Cooperative Electric Association |
$767,488 |
2017 - 2023 |
|
Alpena Power Company |
1,270,715 |
2017 - 2023 |
|
City of Bay City |
1,565,992 |
2017 - 2023 |
|
City of Crystal Falls |
86,771 |
2019 - 2023 |
|
City of Dowagiac |
84,449 |
2020 - 2023 |
|
City of Gladstone |
187,837 |
2018 - 2023 |
|
City of Hart |
83,212 |
2018 - 2023 |
|
City of Norway |
166,379 |
2017 - 2023 |
|
City of Petoskey |
396,440 |
2017 - 2023 |
|
City of St. Louis |
151,446 |
2017 - 2023 |
|
Consumers Energy |
140,977,974 |
2017 - 2023 |
|
Croswell Light & Power Department |
53,711 |
2020 - 2023 |
|
DTE Energy |
168,661,798 |
2017 - 2023 |
|
Great Lakes Energy Cooperative |
7,811,273 |
2018 - 2023 |
|
Hillsdale Board of Public Utilities |
460,193 |
2017 - 2023 |
|
HomeWorks Tri-County Electric Cooperative |
1,712,354 |
2018 - 2023 |
|
Indiana Michigan Power Company (AEP) |
9,952,331 |
2017 - 2023 |
|
Lowell Light & Power |
91,208 |
2017 - 2019 |
|
Marshall Electric Department |
353,629 |
2017 - 2023 |
|
Midwest Energy Cooperative |
2,457,437 |
2017 - 2023 |
|
Negaunee Department of Public Works |
149,283 |
2017 - 2023 |
|
Newberry Water & Light Board |
106,536 |
2017 - 2023 |
|
Niles Utilities Department |
531,857 |
2017 - 2023 |
|
Northern States Power Company -Wisconsin (Xcel) |
688,113 |
2017 - 2023 |
|
Presque Isle Electric & Gas Co-op |
2,542,216 |
2017 - 2023 |
|
Thumb Electric Cooperative |
914,203 |
2017 - 2023 |
|
Union City Electric Department |
115,026 |
2017 - 2023 |
|
Upper Peninsula Power Company |
3,424,343 |
2018 - 2023 |
|
Village of Baraga |
58,653 |
2017 - 2023 |
|
Village of Clinton |
15,786 |
2017 |
|
Total............................................................... |
$345,838,652 |
|
Source: Annual MEAP Reports from the MPSC
Table 2
|
Total Amount of MEAP Funding by County |
|
|
County |
Amount Distributed |
|
Alcona |
$482,806 |
|
Alger |
1,263,062 |
|
Allegan |
2,422,253 |
|
Alpena |
1,167,381 |
|
Antrim |
714,699 |
|
Arenac |
1,065,453 |
|
Baraga |
950,321 |
|
Barry |
1,268,776 |
|
Bay |
2,620,925 |
|
Benzie |
677,455 |
|
Berrien |
3,606,118 |
|
Branch |
601,657 |
|
Calhoun |
8,524,923 |
|
Cass |
992,482 |
|
Charlevoix |
426,392 |
|
Cheboygan |
1,044,726 |
|
Chippewa |
1,114,780 |
|
Clare |
2,378,364 |
|
Clinton |
1,038,911 |
|
Crawford |
460,280 |
|
Delta |
2,378,650 |
|
Dickinson |
481,501 |
|
Eaton |
1,485,810 |
|
Emmet |
564,393 |
|
Genesee |
26,474,166 |
|
Gladwin |
1,445,317 |
|
Gogebic |
1,179,049 |
|
Grand Traverse |
935,479 |
|
Gratiot |
1,502,350 |
|
Hillsdale |
1,380,425 |
|
Houghton |
2,616,984 |
|
Huron |
478,802 |
|
Ingham |
3,610,683 |
|
Ionia |
1,193,366 |
|
Iosco |
1,246,646 |
|
Iron |
1,130,785 |
|
Isabella |
1,442,418 |
|
Jackson |
7,210,126 |
|
Kalamazoo |
8,435,077 |
|
Kalkaska |
865,051 |
|
Kent |
11,734,709 |
|
Keweenaw |
166,617 |
|
Lake |
1,417,103 |
|
Lapeer |
916,886 |
|
Leelanau |
177,039 |
|
Lenawee |
1,335,435 |
|
Livingston |
1,107,689 |
|
Luce |
353,133 |
|
Mackinac |
402,072 |
|
Macomb |
11,476,662 |
|
Manistee |
1,212,422 |
|
Total Amount of MEAP Funding by County |
|
|
County |
Amount Distributed |
|
Marquette |
$4,321,650 |
|
Mason |
1,177,621 |
|
Mecosta |
1,673,957 |
|
Menominee |
1,116,644 |
|
Midland |
2,862,659 |
|
Missaukee |
896,980 |
|
Monroe |
1,721,831 |
|
Montcalm |
1,946,387 |
|
Montmorency |
302,566 |
|
Muskegon |
8,770,585 |
|
Newaygo |
4,038,911 |
|
Oakland |
12,196,178 |
|
Oceana |
1,668,419 |
|
Ogemaw |
1,278,932 |
|
Ontonagon |
787,135 |
|
Osceola |
1,008,295 |
|
Oscoda |
580,925 |
|
Otsego |
790,867 |
|
Ottawa |
2,155,207 |
|
Presque Isle |
329,088 |
|
Roscommon |
1,345,344 |
|
Saginaw |
16,503,789 |
|
St. Clair |
5,294,722 |
|
St. Joseph |
990,959 |
|
Sanilac |
1,218,219 |
|
Schoolcraft |
588,004 |
|
Shiawassee |
1,748,648 |
|
Tuscola |
854,636 |
|
Van Buren |
1,385,634 |
|
Washtenaw |
4,161,556 |
|
Wayne |
141,678,094 |
|
Wexford |
2,015,796 |
|
Total |
$356,588,850 |
Source: Annual MEAP Reports from the MPSC
*Amounts between Table 1 and Table 2 differ due to the inclusion of Federal Low-Income Home Energy Assistance Program (LIHEAP) funding that is not remitted by electric service providers.
John P. Maxwell
Cory Savino, PhD
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.