LANSING – The Michigan Senate Energy Policy and Public Utilities put out legislation Tuesday that could become something like the House-passed energy efficiency measures. Or it could be something different.
The bill (SB 1228 ) as reported, unanimously, merely states legislative intent “to promote energy conservation and efficiency measures to save energy and reduce demand for electricity, natural gas, and oil.” It also requires an annual report from the Department of Labor and Economic Growth Energy Office making recommendations on legislation that would further that legislative intent.
The committee, on a party-line 5-3 vote, rejected the House energy efficiency legislation (HB 5525 ).
But neither vote indicated what policy would be passed back to the House.
Committee Chair Sen. Bruce Patterson (R-Canton) said SB 1228 at this point was a vehicle bill for some future plan, though he did not elaborate what that plan might be.
Patterson derided HB 5525: “It seems like this bill will really cost a lot of money,” he said. The bill would allow utilities to charge customers for energy efficiency programs that would, in turn, help customers to purchase energy efficient appliances and make their homes and businesses more weather tight.
But his statement that the substitute for SB 1228 “won’t look anything like 5525” appeared slightly tongue in cheek and drew laughs from the packed house of utility lobbyists.
The committee also reported legislation (HB 5316 ), 6-2, that would require the state, “whenever feasible”, to upgrade lighting in its offices to more efficient technology.
The bill does not require any particular technology, unlike some earlier measures that would require compact florescent bulbs, and leaves it to state officials to judge the technology.
Objections were still raised over the possible costs of the measure, as well as over the manufacturing location for the new lights.
“We’re making many decisions that we have to trust that energy efficiency will save money,” said Senate Minority Floor Leader Buzz Thomas (D-Detroit).
But legislation that would prohibit the sale of incandescent bulbs in the state (SB 578 ) died for lack of a motion to report.
Legislation to create state efficiency standards for appliances not covered under federal standards (SB 7 ) was nearly trapped in committee as a motion to report the measure, after adopting a substitute that takes out some appliances recently added to federal standards, failed. But Sen. Randy Richardville (R-Frenchtown Twp.) was willing to move to reconsider the vote, which Patterson quickly passed for the day.
Republicans were concerned about the additional costs the bill might impose for appliance purchases, particularly for those living along the border, as Indiana and Ohio would not have the same standards.
Tina Reynolds, spokesperson for Sen. Liz Brater (D-Ann Arbor), said the Public Service Commission would be required to consider the cost the standards would add to a product when setting them.
The committee did report legislation (SB 1048 ) that would provide an income tax credit of 10 percent of the cost of an Energy Star-certified appliance up to $100, but the bill moved on a party-line vote over concerns that it would cut into an already strapped state budget and would limit those eligible for the credit.
Sen. Patricia Birkholz (R-Saugatuck Twp.) said the most recent estimates were the credits would cost the state as much as $120 million, which she said was less than some initial Department of Treasury estimates.
“It’s still pretty large, but it would help us lower our energy usage,” she said.
Sen. Mike Prusi (D-Ishpeming) argued the proposal should not move until the coming budget has been adjusted. “I’m very reluctant to start pulling money out of the state budget before our colleagues on the Appropriations committees have had the ability to review the revenue estimates,” he said.
Thomas urged that the bill provide credits not only to homeowners who purchase appliances, but also to those who may rent new appliances or to those who are renting the home and the landlord purchases new appliances. Birkholz said she would be open to discussions on eligibility for the credits.
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