Michigan legislators propose RPS for 2020
March 5, 2015 | By
Jaclyn Brandt
Michigan's legislative Democrats have released a list of energy principles to increase renewable energy generation in the state. Rep. Bill LaVoy and Sen. Hoon-Yung Hopgood said they hope the principles will help bring businesses to the state -- while making sure utility costs stay affordable.
"Through 2014, renewable energy projects have brought nearly $3 billion in investment to Michigan, and utilities are on track to meet the 10 percent goal required in current law," Rep. LaVoy said. "As long as renewable energy remains economically viable the percentage of power generation should increase. Additionally, increasing Michigan based generation keeps jobs and investment in Michigan." In 2008, the Michigan Legislature enacted Public Act 295, which set a new renewable portfolio standard (RPS) that required 10 percent of electric sales by electricity providers to be from renewable energy by 2015. According to a report issued in February by the Michigan Public Service Commission, the state is on track to meet that goal by the end of the year. But after 2015, the state's RPS requirement does not increase. The new proposed standards include a plan to increase the RPS for the state -- requiring 20 percent renewable energy by 2022 -- as well as increasing standards for energy efficiency. The legislators cite a report from The Hill Group, which said that an increase in the state's RPS could create nearly $6 billion in economic activity. "This plan is pro-business, pro-consumer and pro-environment. Michigan has the potential to be a leader in renewable energy and create thousands of jobs for hardworking men and women across the state," Hopgood said. "That's why it's crucial that we act this year. With these energy principles, my Democratic colleagues and I are ready to get to work." According to Rep. Lavoy, the guidelines released include the 20 percent RPS target by 2022, "allowing 'off-ramps' for new technologies and more affordable alternatives." They also propose to raise energy efficiency standards to 2 percent, as well as closing a loophole that lets companies access out-of-state energy markets. According to the guidelines, looking at energy in Michigan in the long term needs to be an important part of the plan, and infrastructure improvements and security should be the top priority. "Michigan's RPS is one of the lowest in the nation, and just last month, Illinois lawmakers introduced legislation to raise their renewable standards," Hopgood said. "If Michigan wants to stay competitive with other states and lure investment, we need to give businesses in this thriving sector a reason to locate here." For more: © 2015 FierceMarkets, a division of Questex Media Group LLC. All rights reserved. http://www.fierceenergy.com/story/michigan-legislators-propose-rps-2020/2015-03-05 |