LANSING – Clearing key legislation out of the Michigan House Energy Policy Committee last week was important to give the full House enough time with the bills so when the chamber returns from its Thanksgiving break, members will possibly be ready to vote, Rep. Aric Nesbitt, the committee chair, said Friday.
The committee, last week, after meeting nearly 7 hours, reported HB 4298, HB 4297 and HB 4575. The bills make a variety of changes to the state’s energy laws, including requiring alternative energy costumers to remain with a utility for a certain number of years if they return from the choice market and setting a goal for utilities to reach 30 percent of production from renewables and energy efficiency by 2025.
Nesbitt (R-Lawton) said he hopes to vote on the bills in the full House shortly after the Legislature returns from its break on December 1.
“It is important to provide the full House time to come up to speed with the rest of committee members, so we gave them plenty of weeks,” Nesbitt told Gongwer News Service.
Nesbitt said he has remained in contact with Sen. Mike Nofs (R-Battle Creek), the chair of the Senate Energy and Technology Committee, as the process has moved along. Nofs said he is still planning on moving SB 437 and SB 438 through his committee and Senate floor.
Nesbitt said he would like the issue to be wrapped up by the end of the year. Nofs said it would be difficult, but is possible.
As the committee worked through the bills, it became clear Nesbitt was negotiating with Democrats to get the votes needed to win the votes for committee approval, which meant additional language regarding renewable energy.
Those close to the issue had said Nesbitt had a choice of either negotiating with those who wanted to expand the 10 percent energy choice market in the state or with environmentalists.
Nesbitt said expanding the choice market would risk capacity in the state. But, the additional language still didn’t put a mandate on utilities. Nesbitt called it a strong, bipartisan solution that is good for ratepayers.
“We continue to work on going away from mandates and going to an all of the above energy approach,” he said.
On the goal for utilities to reach 30 percent production through efficiencies and renewables, Nesbitt said at least six other states have goals instead of mandates. He said it allows more flexibility, especially with various requirements coming down from the federal level.
“As you look at them in the next 15 years, we will continue to have pressure from the federal government on reducing carbon emissions from Michigan’s power plants,” he said. “Instead of heaping other regulations on them, it is best to look at what new technologies are coming in and how to look at that.”
Critics of the legislation have accused Nesbitt of doing the bidding of Consumers Energy and DTE Energy. On if there is a perception that Nesbitt is in the “pocket” of the utilities, he said: “I think that is, as you look at the legislation, there is stuff that the utilities don’t like.” Nesbitt pointed out a change in the self-implementation of rates.
He said the bills will lead to more affordable and reliable energy in the state.
“It has been a large bipartisan compromise,” he said.
The process leading up to the committee vote was long, and some members, like Rep. Gary Glenn(R-Midland), the vice chair of the committee, said not enough time was given to members to digest the substitute language.
But Nesbitt said an original draft was sent to members Friday, the following Tuesday a final substitute was handed out, and 48 hours later he began taking amendments to the legislation before reporting it.
“I think that is a fair process,” he said. “I think the process works and a lot of times you know when people who are opposed to legislation, they say it is moving too fast. When they are supportive, it is not moving fast enough. … Sometimes we just have to agree to disagree.”
On if the issue has become personal for him, Nesbitt said it is about finding the best policy for the state.
“We’re trying to look at what’s best for the long term potential of the state,” he said. “I definitely have a passion on energy issues and that is something where I find it is a very important issue in terms of the backbone of our modern economy.”
In terms of the Michigan Chamber of Commerce’s position on sustaining the choice market in the state, Nesbitt said he has met with the group on the issue.
“That is part of the reason why … the sub and with my amendments were trying to … balance ending subsidies, sustaining choice and ensuring we meet long-term capacity needs,” he said.
Finally, Nesbitt said the process has worked the way it should, and he even came a long way from his first proposal, which would have ended the choice market in the state. Critics still contend the bills would kill choice, but the initial version was much more overt about returning the state to an electric market dominated by incumbent utilities.
“I believe it has been an open process and I have compromised greatly from my original position, and I get it, that is part of the legislative process and you’ve got to move the ball forward,” he said.
This story was written by Gongwer News Service. To subscribe, click on www.gongwer.com





