Clean Energy Future

Senate bills 271, 502, and 273, are the foundation of Michigan’s “Clean Energy Future.”  This legislation will create new standards for Michigan’s clean energy landscape, paving the way for a significant increase in clean, efficient, and renewable energy production. 

The bills require utilities to achieve 100% clean energy portfolios by 2040 and 60% renewable energy by 2035, and for the first time in Michigan’s history, the MPSC will be required to specifically consider low-income Michiganders, environmental justice communities, and our health when approving utility companies’ long-term energy plans.  

Also, for the first-time in Michigan law, “environmental justice community” (EJ) will be defined based on disproportionate impacts, elevated health risks and other factors with consultation from Michigan Department of Environment, Great Lakes and Energy (EGLE) and the Office of Environmental Justice Public Advocate, and the bill also specifically requires the MPSC to consider whether future energy production will decrease air pollution in overburdened communities. 

The legislation modestly increases energy efficiency standards from 1% to 1.5% by 2026, and SB 273 requires natural gas providers to spend a minimum of 67% of their energy efficiency spending on “deep” energy retrofits. It also requires utility companies to dedicate at least 25% and 35% of total weatherization and energy efficiency programs, for electric and gas respectively, in EJ and low-income communities – including investments in health and safety improvements. 

Utility companies will also be required to recruit, hire and train people from low-income communities to do weatherization and energy efficiency work, and SB 502 requires apprenticeship programs; Prevailing Wage, Union and Project Labor Agreements For the construction and maintenance of energy supply facilities as part of the IRP process. 

Finally, the bills increase Michigan’s rooftop solar cap from 1% to 10% and increase the cap on the size of distributed generation projects. Estimates show these changes will lead to new distributed generation systems for over 100,000 new households.