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Michigan
State Programs
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State Planning and Incentive Structures | Energy Efficiency Actions | Energy Supply Actions
State Planning and Incentive Structures
Lead By Example—Energy Efficiency in Public Facilities
Status: Completed
Details: Executive Directive 2005-4 (April 2005) established an energy savings goal of a 10% reduction in energy use by December 31, 2008, and a 20% reduction in grid-based energy purchases by December 31, 2015, (compared to a 2002 baseline) for all executive branch buildings of the state government. Additionally, the directive established a program by which each state building occupied by state employees will undergo an energy analysis using the ENERGY STAR assessment and rating program.
Lead By Example—Energy Efficient Appliance and Equipment Purchase Requirements for Public Facilities
Status: Completed
Details: Executive Directive 2005-4 (April 2005) requires that new electronic equipment and appliances purchased by state departments and agencies shall be ENERGY STAR certified.
Lead By Example—Clean Energy Goals for Public Facilities
Status: Proposed
Details: On March 27, 2008, the Michigan State Senate unanimously passed Senate Bill 1000, which calls for 3% of state offices’ electricity to come from renewables by January 1, 2009, 10% by 2010, 20% by 2020, and 25% by 2025. As of October 2008, the bill remains with the House Committee on Energy and Technology.
Lead By Example—Energy Efficiency and Alternative Fuel Goals for Public Fleets
Status: Completed
Details: Executive Directive 2005-4 (April 2005) requires state departments and agencies to purchase hybrid vehicles and alternative fuels, where cost effective and available.
State and Regional Energy Planning
Status: Completed
Details: In response to her Executive Order in April 2006, Michigan's 21st Century State Electric Energy Plan was submitted to Governor Granholm in January 2007. The plan recommends that Michigan's future energy needs be met through a combination of renewable resources and the cleanest generating technology, with significant energy savings achieved by increased energy efficiency. Specifically, the plan calls for a 10% RPS to be met by 2015 and the creation of a PBF to fund the Michigan Energy Efficiency Program. The plan was developed with the input of both the public and private sectors.
Determining the Air Quality Benefits of Clean Energy—Energy Efficiency/Renewable Energy Set Asides (NOX Budget Trading Program)
Status: No Activity Identified
Determining the Air Quality Benefits of Clean Energy—Energy Efficiency/Renewable Energy Set Asides (CAIR Budget Trading Program)
Status: Completed
Details: Rule 825, entitled ''CAIR NOx ozone season trading program; renewable set-aside,'' establishes the provisions for an ozone season control period allocation pool to be allocated to renewable energy sources or renewable energy projects. There are 200 allowances allocated for renewable units.
- http://www.epa.gov/airmarkets/progsregs/cair/rulemakingactions.html
- http://www.michigan.gov/deq/0,1607,7-135-3310-122941--,00.html
Energy Efficiency Actions
Energy Efficiency Portfolio Standards
Status: Completed
Details: S.B. 213, signed by Governor Granholm on October 6, 2008, establishes an energy efficiency resource standard of 0.3% in 2009. By 2011, electricity providers must save 0.75% of prior-year sales and natural gas utilities must save 0.5% of prior-year sales. The standard will continue increasing after 2011 in increments of 1.0% and 0.75%, respectively.
On November 15, 2007, Michigan signed the Energy Security and Climate Stewardship Platform for the Midwest, committing to an overall 2% reduction in energy use by 2015.
- http://www.legislature.mi.gov/documents/2007-2008/publicact/pdf/2008-PA-0295.pdf
- http://www.midwesternaccord.org/Platform.pdf
Public Benefit Funds for Energy Efficiency
Status: Completed
Details: A 2000 restructuring law created Michigan's statewide public benefits fund, the Low-Income and Energy Efficiency Fund (LIEEF), which is financed by savings from utility securitization (bonds repaid through charges on utility customer bills). In February 2004, a court order changed the system (at the request of Detroit Edison) and allowed a surcharge on the utility's distribution rates to fund the program. The surcharge was set to generate $40M/year ($8 million allotted to energy efficiency). The majority of the money goes to low-income bill payment assistance.
- http://www.michigan.gov/mpsc/0,1607,7-159-16370_27289---,00.html
- http://www.ncat.org/liheap/dereg/states/michigan.htm
- http://www.aceee.org/briefs/dec05_02.htm
Building Codes for Energy Efficiency—Commercial Programs
Status: Meets ECPA
Details: ASHRAE/IESNA 90.1-1999 mandatory statewide, effective April, 2003; can use COMcheck-EZ to show compliance.
Building Codes for Energy Efficiency—Residential Programs
Status: Does Not Meet ECPA
Details: Michigan Uniform Energy Code Part 10 Rules, less stringent than 1992 MEC, mandatory statewide. In March 2005, an injunction was issued suspending the February 28 effective date for the new Michigan Uniform Energy Code. The status of the new rules will be determined in a trial at a later date. On January 11, 2006, the Michigan Court of Appeals granted the State of Michigan's emergency leave to appeal.
State Appliance Efficiency Standards
Status: No Activity Identified
Energy Supply Actions
Renewable Portfolio Standards
Status: Completed
Details: S.B. 213, signed by Governor Granholm on October 6, 2008, requires that 10% of Michigan’s power come from renewable sources by the end of 2015. Energy providers must comply with this new standard through renewable energy generation, renewable energy credits, and energy optimization schemes. The bill also allows for 20% of the RPS to be met with cleaner energy technology, such as integrated gas combined cycle power plants or other lower-carbon facilities.
On November 15, 2007, Michigan signed the Midwestern Regional Greenhouse Gas Reduction Accord, committing to a region-wide 10% renewable energy standard by 2015.
- http://www.legislature.mi.gov/documents/2007-2008/publicact/pdf/2008-PA-0295.pdf
- http://www.midwesterngovernors.org/Publications/Greenhouse%20gas%20accord_Layout%201.pdf
Public Benefit Funds for Clean Energy Supply
Status: Completed
Details: A 2000 restructuring law created Michigan's statewide public benefits fund. The Low-Income and Energy Efficiency Fund (LIEEF) provides energy assistance to low-income customers through a variety of energy efficiency programs. LIEEF has also begun to fund renewable energy initiatives, including wind turbines, PV systems, anaerobic digesters, and other biomass projects.
Output-Based Environmental Regulations
Status: No Activity Identified
Interconnection Standards—Clean Distributed Generation
Status: Completed/Further Work In Progress
Details: On February 22, 2007, following an investigation to identify deficiencies in existing interconnection procedures and to develop remedies, the Michigan Public Service Commission (PSC) improved interconnection standards for independent power producers via recommendations submitted in a report to the commission January 31, 2007 (Case #U-15113 and U-15239). Recommendations included suggestions that regulated utilities educate the public by speaking at conferences and workshops and maintain understandable Web-based information, and that the PSC convene separate workgroups to develop less complex interconnection procedures for projects up to 10 kW and projects 30 kW or larger. In February 2008, revised draft interconnection standards were issued. In July 2003, the PSC adopted revised administrative rules governing electric interconnection standards, which took effect September 2003. There are five levels of interconnection and no system size limits or additional insurance requirements. There is no size limit but simplified rules apply to systems <30kW; the rules apply to all distributed generation. Michigan does not have standard forms developed. There are set timeframes for the approval of applications ranging from 2 to 18 weeks.
- http://www.mtpc.org/renewableenergy/public_policy/DG/proceedings_index.htm
- http://efile.mpsc.cis.state.mi.us/efile/docs/15113/0049.pdf
- http://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=MI02R&state=MI&CurrentPageID=1&RE=1&EE=1
Interconnection Standards—Net Metering
Status: Completed/Further Work In Progress
Details: In October 2008, Michigan enacted legislation (S.B. 213) requiring the Michigan Public Service Commission (PSC) to establish a statewide net metering program for renewable-energy systems within 180 days. This program will take the place of the state's current net metering program, which is based on a voluntary consensus agreement between PSC and most of the state's utilities. The system size limit is 20kW.
The Michigan PSC adopted the federal net metering standard on August 6, 2008 (Case U-15316). The order issued in August 2008 requires Michigan’s investor-owned utilities to offer net metering and to file a new net metering tariff by December 31, 2009.
In March 2005, the PSC approved a consensus agreement that implemented a voluntary statewide net metering program for a minimum of five years. The program applied to solar, wind, biomass, hydro, geothermal, and MSW systems up to 30 kW.