LANSING – Major energy legislation cleared the Michigan House Energy Policy Committee on Thursday with some significant changes, including changes to the proposed renewable energy definitions and a “goal” for utilities to get 30 percent of production from renewables and energy efficiency.
But advocates for expanding choice, or at least keeping it the same as current law, were not successful.
After convening at 8 a.m., recessing until 2:07 p.m. and then going until 7:45 p.m., coming in and out of order on its fourth attempt this week to meet on the issue, the committee reported HB 4298 – the bill involving choice and utility regulations – 18-7. Rep. Gary Glenn (R-Midland), the vice chair, Rep. Andrea LaFontaine (R-Columbus), Rep. Holly Hughes (R-White River Township), Rep. Tom Barrett(R-Potterville), Rep. Peter Lucido (R-Shelby Township), Rep. Derek Miller (D-Warren) and Rep. Scott Dianda (D-Calumet) all voted no.
HB 4297, dealing with the environmental aspects of energy, cleared the committee 21-3 with Rep. Julie Plawecki (D-Dearborn Heights) abstaining and HB 4575 cleared 19-4 with Plawecki andRep. LaTanya Garrett (D-Detroit) abstaining.
Rep. Aric Nesbitt (R-Lawton), the chair of the committee, said his goal is getting the bills finished before the end of the year.
He said utilities are going to make investments and if the state is going to deal with capacity in the long run, it should deal with it proactively instead of reactively, which he believes the legislation does.
“As you can imagine this has been legislation I have been working on for years now and it’s the first down, and I look forward to getting to a touchdown,” he told reporters after the vote.
Throughout the meeting, and the week, it was clear Mr. Nesbitt was negotiating with House Democrats to get the votes needed for the legislation to clear the committee. House Minority Floor Leader Sam Singh (D-East Lansing) attended the majority of the meeting Thursday and House Minority Leader Tim Greimel (D-Auburn Hills) also attended the meeting briefly and talked to Democrats serving on the panel.
Glenn has been criticizing the process for much of the week, and continued on Thursday before the vote, saying members likely were not clear on what certain amendments did in the context of a lengthy and complex bill.
But Rep. Bill LaVoy (D-Monroe), the minority vice chair of the committee, said he felt the process was fair and he was grateful the Democrats, despite being in the minority, were included.
Those following the issue said Nesbitt, if he wanted to get a bill out of the committee, would either need to compromise on choice or on environmental components. For several days, it seemed clear he had opted for the latter option.
Changes to the legislation include not requiring alternative energy suppliers to address local reliability needs unless a projected capacity shortfall was determined. Under the amendment there would be no changes to requirements on the alternative suppliers unless the Public Service Commission made certain determinations involving capacity.
Amendments adopted to HB 4298 would require alternative energy consumers to remain with the utility, if they go back, for 15 years if it doesn’t cause an increased cost. For those consumers who would cause an increased cost, they would have to stay with the utility for 20 years.
Michigan Agency for Energy Executive Director Valerie Brader told the committee the changes regarding additional regulations for alternative suppliers would not go into effect unless there were some extreme circumstances.
But Glenn was unhappy he could not bring up an alternative energy supplier – or advocate – to confirm or deny Brader’s statement. He said he simply doesn’t know if the new language effectively kills choice or not.
An approved amendment offered by LaVoy would set up an energy efficiency program.
Another Democratic amendment would include in the language describing the Integrated Resource Plan that utilities would have a goal of reaching 30 percent of energy production through renewable energy and reduction of energy waste through energy efficiency by 2025.
Rep. Julie Plawecki (D-Dearborn Heights) noted it was a goal and not a mandate on utilities.
Another amendment provided financial incentives for utilities achieving annual incremental energy waste reduction of between 1.5 and 3 percent.
Another approved amendment would add a general taxpayer to the Public Service Commission with the intent of representing the average consumer, said Rep. Ed McBroom (R-Vulcan), the sponsor of the amendment. It would also increase the commission from three members to five.
It was not immediately clear if that amendment would remain the final version of the bill. Nesbitt said he would continue to work with McBroom.
Changes to HB 4297 include an amendment from Nesbitt and makes changes to the renewable portfolio standard, removing what the federal government does not consider renewable energy.
Another approved amendment offered by LaVoy “tightens up” the definition of renewable energy, but still expands the definition from the current law, including biomass and geothermal.
And another amendment, from Hughes, would ensure pet coke, hazardous waste, coal waste and scrap tires were not included in the renewable energy definition. That addressed a major criticism from Democrats, though some forms of waste to energy could still count.
Glenn attempted to make a variety of amendments regarding the 10 percent choice market, including ensuring all schools, community colleges and universities would not count against the cap.
Hughes attempted to pass an amendment, which she said the Michigan Chamber of Commerce supported, that would keep the choice market the same as current law. That amendment failed 10-10 with five members abstaining.
Throughout the committee meeting Thursday, which went at ease several times, comments from members indicated they weren’t pleased with the process.
Glenn, when the committee first began, said he could not vote on Nesbitt’s amendments because they were several pages and he had no time to know what they did.
Later, Glenn made another comment about the amendments and Nesbitt quipped: “The reason I did it as an amendment and not an additional sub is because of the criticism I’ve received,” he said.
“Well I had zero time to read the amendments,” Glenn said.
Glenn said after the meeting that he didn’t think the legislation would be well received in the full House, particularly the Republican caucus. He said there would likely be concerns regarding the choice piece of the legislation.
Nesbitt said a vast majority of committee members supported the bills and he believes he would have the support of a majority of the House Republican caucus.
On the criticism on the process, Nesbitt said the legislation has been up for almost the entire year and everyone has their own thought son how to improve bills.
“This in terms of the legislative process, this is a part of it, we allowed a lot of amendments to be debated,” he said, also adding more than 120 people have testified throughout the year.
But Glenn said he felt members were being pressured by the time frame, knowing the meeting would end with a vote. He said many of the questions members have will be answered in the coming weeks.
This story was published by Gongwer News Service. To subscribe, click on www.gongwer.com
