LANSING – Saying firms she intends to meet on a Japan trade trip are keenly interested in Michigan’s potential as a center of alternative energy, Governor Jennifer Granholm said Thursday she expects to begin her trip Monday with an agreement in hand on an energy package that includes a renewable energy portfolio standard. Whatever agreement she might take to Japan, however, would have an agreement in concept and not in statute.

While she expressed optimism that agreement would be embodied in legislative action, the Senate and House later adjourned without action and conference committees that were standing by to adopt agreements on two bills (SB 213 and HB 5524 ) cancelled their meetings.

The Public Service Commission, which reportedly was poised to act on an alternative approach to impose a renewable energy standard for regulated utilities, also cancelled an afternoon meeting it had scheduled.

The biggest holdup appears to be SB 213, which would create a renewal portfolio standard directing that a certain percentage of electricity generated in Michigan would have to come from renewal resources (which could include a coal plant where emissions are trapped and sealed underground).

Sen. Patricia Birkholz (R-Saugatuck Twp.) said meetings have been ongoing and progress has been made toward settling the remaining issues in the bill. Asked if it would be completed next week, she said, “I hope so. You don’t know how much I hope so.”

Asked then what Granholm could tell executives in Japan about an energy package, Birkholz said, “I think she’ll be able to say we’re very close.”

Earlier in the day when speaking to reporters about her upcoming trade mission – her 6th overseas job/investment trip – Granholm was upbeat about the outlook following negotiations into the prior night.

“I believe we have the framework of an understanding and now its just the process of crossing the t’s and dotting the i’s,” she said. “I assume we have an agreement. We are very, very close.”

That, she said, would be important as she meets with many of the 22 companies on the agenda in Japan. “We can tell them this is a focus for us,” she said of alternative energy programs. Granholm said it would be especially important to firms engaged in wind energy projects.

The pending legislation would commit Michigan to obtaining 10 percent of its energy through renewable sources by 2015. It also provides incentives for Consumers Energy and DTE Energy to build new power plants and increase rates for individual customers as the current set-up requires residential rates to be subsidized.

Granholm noted a study that estimates Michigan could gain 60,000 jobs through new investments in alternative energy.

Rep. Frank Accavitti (D-Eastpointe), the House Democratic point person on the energy package, told reporters in the afternoon that there are still negotiations to be completed on the RPS portion (SB 213), but he still believes the utility re-regulation portion (HB 5524) is practically ready to go.

Like the governor, he too expressed optimism that all sides can work out an agreement, but when that might come together was still a question. Accavitti said negotiations Thursday included discussions about “wind zones” and he said that technical issues have caused the delay in legislative action.

“(SB) 213 is still a work in progress. We have not gone to (legislative) drafting yet,” he said.

But he said it is important for the Legislature to act soon “because there are companies waiting to come to Michigan.”

And Birkholz said the legislation “is huge. We are changing the way we do business in Michigan.”

The Public Service Commission canceled its special meeting for the day shortly after the conference committee adjourned.

Those close to the process had speculated early Thursday that the PSC meeting was set to allow the commission to begin moving forward with the orders it would need to implement the agreement. Because that agreement never came, there was no need for the commission to act.

In addition to the alternative energy companies on her itinerary, Granholm and officials of the Michigan Economic Development Corporation will also meet with executives of automobile, auto supplier and life sciences companies.

Before returning Saturday, September 20, she will have visited three cities with executives who are considering investments in North America or more specifically Michigan. Ms. Granholm said she would be making a business case for choosing Michigan because of its workforce, incentives in the Michigan Business Tax for growing companies and other resources to help businesses.

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