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HB-5711, As Passed House, May 12, 2026
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SUBSTITUTE FOR
HOUSE BILL NO. 5711
A bill to amend 2008 PA 295, entitled
"Clean and renewable energy and energy waste reduction act,"
by amending the title and sections 1, 3, 5, 7, 9, 11, 13, 61, 101,
173, and 191 (MCL 460.1001, 460.1003, 460.1005, 460.1007, 460.1009,
460.1011, 460.1013, 460.1061, 460.1101, 460.1173, and 460.1191),
the title and sections 1, 3, 5, 7, 9, 11, 13, 173, and 191 as
amended and section 101 as added by 2023 PA 235 and section 61 as
added by 2016 PA 342; and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE 1
An act to require certain providers of electric service to 2
establish and recover costs for renewable energy and clean energy 3
programs; to require certain providers of electric or natural gas 4
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service to establish, and recover costs for, energy waste reduction 1
programs; to ensure that any energy cost savings from renewable 2
energy, clean energy, and energy waste reduction programs are 3
ultimately returned to customers; to authorize the use of certain 4
energy systems to meet the requirements of those programs; to 5
provide for the approval of energy waste reduction service 6
companies; to reduce energy waste by state agencies and the public; 7
to create a wind energy resource zone board and provide for its 8
power and duties; to authorize the creation and implementation of 9
wind energy resource zones; to provide for expedited transmission 10
line siting certificates; to provide for customer generation and 11
net metering programs and the responsibilities of certain providers 12
of electric service and customers with respect to customer 13
generation and net metering; to provide for fees; to prescribe the 14
powers and duties of certain state agencies and officials; to 15
require the promulgation of rules and the issuance of orders; to 16
authorize the establishment of residential energy improvement 17
programs by providers of electric or natural gas service; to 18
authorize certification by this state before the construction of 19
certain wind and solar energy facilities and energy storage 20
facilities; to regulate certain local ordinances; and to provide 21
for civil sanctions, remedies, and penalties. 22
Sec. 1. (1) This act may be cited as the "clean and renewable 23
energy and energy waste reduction act". 24
(2) The purpose of this act is to promote the development and 25
use of clean and renewable energy resources and the reduction of 26
energy waste through programs that will cost-effectively do all of 27
the following: 28
(a) Diversify the resources used to reliably meet the energy 29
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needs of consumers in this state. 1
(b) Provide greater energy security through the use of 2
indigenous energy resources available within this state. 3
(c) Encourage private investment in renewable energy. and 4
energy waste reduction. 5
(d) Coordinate with federal regulations to provide improved 6
air quality and other benefits to energy consumers and citizens of 7
this state. 8
(e) Provide more reliable and resilient energy supplies during 9
periods of extreme weather. 10
(3) Pursuant to In accordance with the reconciliation 11
processes provided for in this act, the commission shall determine 12
the costs and savings resulting from compliance with the former 13
renewable energy , program and the former clean energy , and energy 14
waste reduction programs program required under this act and 15
include those costs and savings in the determination of the rates 16
charged to customers of the electric and natural gas providers. 17
This section does not prohibit the commission from authorizing 18
shared savings or incentive programs as provided for in this act. 19
Sec. 3. As used in this act: 20
(a) "Applicable regional transmission organization" means a 21
nonprofit, member-based organization governed by an independent 22
board of directors that serves as the regional transmission 23
organization approved by the Federal Energy Regulatory Commission 24
with oversight responsibility for the region that includes the 25
provider's service territory. 26
(b) "Biomass" means any organic matter that is not derived 27
from fossil fuels, that can be converted to usable fuel for the 28
production of energy, and that replenishes over a human, not a 29
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geological, time frame, including, but not limited to, all of the 1
following: 2
(i) Agricultural crops and crop wastes. 3
(ii) Short-rotation energy crops. 4
(iii) Herbaceous plants. 5
(iv) Trees and wood, but only if derived from sustainably 6
managed forests or procurement systems, as defined in section 261c 7
of the management and budget act, 1984 PA 431, MCL 18.1261c. 8
(v) Paper and pulp products. 9
(vi) Precommercial wood thinning waste, brush, or yard waste. 10
(vii) Wood wastes and residues from the processing of wood 11
products or paper. 12
(viii) Animal wastes. 13
(ix) Wastewater sludge or sewage. 14
(x) Aquatic plants. 15
(xi) Food production and processing waste. 16
(xii) Organic by-products from the production of biofuels. 17
(c) "Board" means the wind energy resource zone board created 18
under section 143. 19
(d) "Carbon capture and storage" means a process that involves 20
collecting carbon dioxide at its source and storing, or 21
sequestering, it to prevent its release into the atmosphere. 22
(e) "Clean energy" means electricity or steam generated using 23
a clean energy system. 24
(f) "Clean energy plan" means an electric provider's plan to 25
meet the clean energy standard approved under section 51. 26
(g) "Clean energy portfolio" means the percentage of an 27
electric provider's total retail electric sales consisting of clean 28
energy or renewable energy. 29
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(h) "Clean energy standard" means the clean energy portfolio 1
required under section 51(1). 2
(i) "Clean energy system" means an electricity generation 3
facility or system or set of electricity generation systems that 4
meets any of the following requirements: 5
(i) Generates electricity or steam without emitting greenhouse 6
gas, including nuclear generation. 7
(ii) Is fueled by natural gas and uses carbon capture and 8
storage that is at least 90% effective in capturing and permanently 9
storing carbon dioxide. If the department of environment, Great 10
Lakes, and energy determines, through a facility-specific major 11
source permitting analysis consistent with applicable United States 12
Environmental Protection Agency rules, that a capture rate higher 13
than 90% meets the best available control technology standard, as 14
applicable, that higher percentage shall be used instead of 90% for 15
facilities permitted after the effective date of the amendatory act 16
that added section 51. Using carbon dioxide for enhanced oil 17
recovery is not considered to be permanent storage for the purposes 18
of this subparagraph. 19
(iii) Is an independently owned combined cycle power plant 20
fueled by natural gas that has a power purchase agreement with an 21
electric provider as of the effective date of the amendatory act 22
that added this subparagraph and that by 2030 receives approval 23
from the commission for a plan that achieves functional equivalence 24
with the clean energy standard in section 51(1)(b) through 25
reduction of greenhouse gas emissions using carbon capture and 26
sequestration and other available applications, including, but not 27
limited to, carbon removal technologies. In reviewing and approving 28
a plan submitted under this subparagraph, the commission shall 29
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consider best available technology and applications as well as rate 1
affordability, resource adequacy, and grid reliability. 2
(iv) Is defined as a clean energy system in rules adopted by 3
the commission consistent with the purposes of this subdivision. 4
(d) (j) "Commission" means the Michigan public service 5
commission. 6
(k) "Customer meter" means an electric meter of a provider's 7
retail customer. Customer meter does not include a municipal water 8
pumping meter or additional meters at a single site that were 9
installed specifically to support interruptible air conditioning, 10
interruptible water heating, net metering, or time-of-day tariffs. 11
(e) (l) "Distributed generation" means the generation of 12
electricity under the distributed generation program. 13
(f) (m) "Distributed generation program" means the program 14
established by the commission under section 173. 15
Sec. 5. As used in this act: 16
(a) "Efficient electrification measure" means an electric 17
appliance or equipment installed in an existing building to 18
electrify, in whole or in part, space heating, water heating, 19
cooling, drying, cooking, industrial processes, or another building 20
or industrial end use that would otherwise be served by combustion 21
of fossil fuel on the premises and that meets best-practice 22
standards for cost-effective energy efficiency as determined by the 23
commission. Efficient electrification measure includes, but is not 24
limited to, any of the following: 25
(i) A cold-climate air-source heat pump. 26
(ii) An electric clothes dryer. 27
(iii) A ground-source heat pump. 28
(iv) High-efficiency electric cooking equipment. 29
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(v) A heat pump or high-efficiency electric water heater. 1
(b) "Efficient electrification measures plan" means a plan to 2
offer and promote efficient electrification measures. 3
(c) "Efficient electrification measures program" means a 4
program to implement an efficient electrification measures plan. 5
(a) (d) "Electric provider" means any of the following: 6
(i) Any person or entity that is regulated by the commission 7
for the purpose of selling electricity to retail customers in this 8
state. 9
(ii) A municipally owned electric utility in this state. 10
(iii) A cooperative electric utility in this state. 11
(iv) Except as used in subpart C of part 2, an An alternative 12
electric supplier licensed under section 10a of 1939 PA 3, MCL 13
460.10a. 14
(b) (e) "Eligible electric generator" means a methane digester 15
or renewable energy system with a generation capacity limited to 16
110% of the customer's electricity consumption for the previous 12 17
months. 18
(f) "Energy conservation" means the reduction of customer 19
energy use through the installation of measures or changes in 20
energy usage behavior. 21
(c) (g) "Energy efficiency" means a decrease in customer 22
consumption of electricity or natural gas achieved through measures 23
or programs that target customer behavior, equipment, devices, or 24
materials without reducing the quality of energy services. 25
(h) "Energy star" means the voluntary partnership among the 26
United States Department of Energy, the United States Environmental 27
Protection Agency, product manufacturers, local utilities, and 28
retailers to help promote energy efficient products by labeling 29
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with the energy star logo, educate consumers about the benefits of 1
energy efficiency, and help promote energy efficiency in buildings 2
by benchmarking and rating energy performance. 3
(d) (i) "Energy storage system" means any technology that is 4
capable of absorbing energy, storing the energy for a period of 5
time, and redelivering the energy. Energy storage system does not 6
include either of the following: 7
(i) Fossil fuel storage. 8
(ii) Power-to-gas storage that directly uses fossil fuel 9
inputs. 10
(j) "Energy waste reduction", subject to subdivision (k), 11
means all of the following: 12
(i) Energy efficiency. 13
(ii) Load management, to the extent that the load management 14
reduces provider costs. 15
(iii) Energy conservation, but only to the extent that the 16
decreases in the consumption of electricity produced by energy 17
conservation are objectively measurable and attributable to an 18
energy waste reduction plan. 19
(k) Energy waste reduction does not include electric provider 20
infrastructure projects that are approved for cost recovery by the 21
commission other than as provided in this act. 22
(l) "Energy waste reduction credit" means a credit certified 23
pursuant to section 87 that represents achieved energy waste 24
reduction. 25
(m) "Energy waste reduction plan" means a plan under section 26
71. 27
(n) "Energy waste reduction standard" means the minimum energy 28
savings required to be achieved under section 77. 29
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(e) (o) "Federal approval" means approval by the applicable 1
regional transmission organization or other Federal Energy 2
Regulatory Commission-approved transmission planning process of a 3
transmission project that includes the transmission line. Federal 4
approval may be evidenced in any of the following manners: 5
(i) The proposed transmission line is part of a transmission 6
project included in the applicable regional transmission 7
organization's board-approved transmission expansion plan. 8
(ii) The applicable regional transmission organization has 9
informed the electric utility, affiliated transmission company, or 10
independent transmission company that a transmission project 11
submitted for an out-of-cycle project review has been approved by 12
the applicable regional transmission organization, and the approved 13
transmission project includes the proposed transmission line. 14
(iii) If, after October 6, 2008, the applicable regional 15
transmission organization utilizes another approval process for 16
transmission projects proposed by an electric utility, affiliated 17
transmission company, or independent transmission company, the 18
proposed transmission line is included in a transmission project 19
approved by the applicable regional transmission organization 20
through the approval process developed after October 6, 2008. 21
(iv) Any other Federal Energy Regulatory Commission-approved 22
transmission planning process for a transmission project. 23
Sec. 7. As used in this act: 24
(a) "Greenhouse gas" means carbon dioxide, methane, nitrous 25
oxide, hydrofluorocarbons, perfluorocarbons, or sulfur 26
hexafluoride. 27
(a) (b) "Grid reliability" means the ability, as defined by 28
the regional transmission organization, of the bulk power system to 29
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withstand sudden, unexpected disturbances, such as short circuits 1
or unanticipated loss of system elements because of natural causes. 2
(c) "Incremental costs of compliance" means the net revenue 3
required by an electric provider to comply with the renewable 4
energy standard, calculated as provided under section 47. 5
(b) (d) "Independent transmission company" means that term as 6
defined in section 2 of the electric transmission line 7
certification act, 1995 PA 30, MCL 460.562. 8
(e) "LEED" means the leadership in energy and environmental 9
design green building rating system developed by the United States 10
Green Building Council. 11
(f) "Load management" means measures or programs that target 12
equipment or behavior to result in decreased peak electricity 13
demand such as by shifting demand from a peak to an off-peak 14
period. 15
(g) "Long-duration energy storage system" means an energy 16
storage system capable of continuously discharging electricity at 17
its full rated capacity for more than 10 hours. 18
(h) "Low-income residential customer" means a customer that 19
meets any of the following requirements: 20
(i) The customer's household income does not exceed 250% of the 21
federal poverty line, as published by the United States Department 22
of Health and Human Services under its authority to revise the 23
poverty line under 42 USC 9902. 24
(ii) The customer's household income does not exceed 80% of the 25
adjusted median income as determined by the United States 26
Department of Housing and Urban Development. 27
(iii) The customer is enrolled in a federal, state, or local 28
program with similar income eligibility requirements, including, 29
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but not limited to, an emergency relief or food assistance program 1
or Medicaid. 2
(c) (i) "Megawatt", "megawatt hour", or "megawatt hour of 3
electricity", unless the context implies otherwise, includes the 4
steam equivalent of a megawatt or megawatt hour of electricity. 5
(j) "Modified net metering" means a utility billing method 6
that applies the power supply component of the full retail rate to 7
the net of the bidirectional flow of kilowatt hours across the 8
customer interconnection with the utility distribution system, 9
during a billing period or time-of-use pricing period. A negative 10
net metered quantity during the billing period or during each time-11
of-use pricing period within the billing period reflects net excess 12
generation for which the customer is entitled to receive credit 13
under section 177(2). Under modified net metering, standby charges 14
for distributed generation customers on an energy rate schedule 15
shall be equal to the retail distribution charge applied to the 16
imputed customer usage during the billing period. The imputed 17
customer usage is calculated as the sum of the metered on-site 18
generation and the net of the bidirectional flow of power across 19
the customer interconnection during the billing period. The 20
commission shall establish standby charges under modified net 21
metering for distributed generation customers on demand-based rate 22
schedules that provide an equivalent contribution to utility system 23
costs. A charge for net metering and distributed generation 24
customers established pursuant to section 6a of 1939 PA 3, MCL 25
460.6a, shall not be recovered more than once. 26
(k) "Multiday energy storage system" means an energy storage 27
system capable of continuously discharging electricity at its full 28
rated capacity for more than 24 hours. 29
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Sec. 9. As used in this act: 1
(a) "Natural gas provider" means an investor-owned business 2
engaged in the sale and distribution at retail of natural gas 3
within this state whose rates are regulated by the commission. 4
(b) "Pet coke" means a solid carbonaceous residue produced 5
from a coker after cracking and distillation from petroleum 6
refining operations. 7
(c) "Provider" means an electric provider or a natural gas 8
provider. 9
(d) "PURPA" means the public utility regulatory policies act 10
of 1978, Public Law 95-617. 11
Sec. 11. As used in this act: 12
(a) "Renewable energy" means electricity or steam generated 13
using a renewable energy system. 14
(b) "Renewable energy contract" means a contract to acquire 15
renewable energy and the associated renewable energy credits from 1 16
or more renewable energy systems. 17
(c) "Renewable energy credit" means a credit granted under a 18
certification and tracking program established under section 41, 19
which represents generated renewable energy. 20
(d) "Renewable energy credit portfolio" means the sum of the 21
renewable energy credits achieved by a provider for a particular 22
year. 23
(e) "Renewable energy credit standard" means a minimum 24
renewable energy credit portfolio required under section 28 or 25
former section 27. 26
(f) "Renewable energy plan" or "plan" means a plan approved 27
under section 22 or former section 21 or 23 or found to comply with 28
this act under former section 25, with any amendments adopted under 29
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this act. 1
(b) (g) "Renewable energy resource" means a resource that 2
naturally replenishes over a human, not a geological, time frame 3
and that is ultimately derived from solar power, water power, or 4
wind power. Renewable energy resource does not include petroleum, 5
nuclear, natural gas, industrial waste, post-use polymers, tires, 6
tire-derived fuel, plastic, or coal. A renewable energy resource 7
comes from the sun or from thermal inertia of the earth and 8
minimizes the output of toxic material in the conversion of the 9
energy and includes, but is not limited to, all of the following: 10
(i) Biomass, as described in any either of the following: 11
(A) Landfill gas as described in subparagraph (vii). 12
(B) Gas from a methane digester using only feedstock as 13
described in subparagraph (viii). 14
(C) Biomass used by renewable energy systems that are in 15
commercial operation on the effective date of the amendatory act 16
that added section 51. 17
(D) Trees and wood used in renewable energy systems that are 18
placed in commercial operation after the effective date of the 19
amendatory act that added section 51, if the trees and wood are 20
derived from sustainably managed forests or procurement systems, as 21
defined in section 261c of the management and budget act, 1984 PA 22
431, MCL 18.1261c. 23
(ii) Solar and solar thermal energy. 24
(iii) Wind energy. 25
(iv) Kinetic energy of moving water, including all of the 26
following: 27
(A) Waves, tides, or currents. 28
(B) Water released through a dam. 29
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(v) Geothermal energy. 1
(vi) Thermal energy produced from a geothermal heat pump. 2
(vii) Landfill gas produced from solid waste facilities. 3
(vii) (viii) Any of the following if used as feedstock in a 4
methane digester:cleaner energy resources: 5
(A) Municipal wastewater treatment sludge, wastewater, and 6
sewage.solid waste, including biogenic and anthropogenic factions. 7
(B) Food waste and food production and processing 8
waste.Landfill gas produced by municipal solid waste. 9
(C) Animal manure.Fuel that has been manufactured in whole or 10
in significant part from waste, including, but not limited to, 11
municipal solid waste. Fuel that meets the requirements of this 12
sub-subparagraph includes, but is not limited to, material that is 13
listed under 40 CFR 241.3(b) or 241.4(a) or for which a nonwasted 14
determination is made by the United States Environmental Protection 15
Agency in accordance with 40 CFR 241.3(c). Pet coke, hazardous 16
waste, coal waste, or scrap tires are not fuel that meet the 17
requirements of this sub-subparagraph. 18
(D) Organics separated from municipal solid waste. 19
(h) "Renewable energy standard" means the minimum renewable 20
energy capacity portfolio, if applicable, and the renewable energy 21
credit portfolio required to be achieved under section 28 or former 22
section 27. 23
(c) (i) "Renewable energy system" means a facility, 24
electricity generation system, or set of electricity generation 25
systems that use 1 or more renewable energy resources to generate 26
electricity or steam. Renewable energy system includes the 27
following: 28
(i) A landfill gas recovery and electricity generation facility 29
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located in a landfill whose operator employs best practices for 1
methane gas collection and control and emissions monitoring, as 2
determined by the department of environment, Great Lakes, and 3
energy. 4
(ii) A methane digester, if it processes only 1 or more of the 5
following: 6
(A) Municipal wastewater treatment sludge, wastewater, or 7
sewage. 8
(B) Food waste or food production and processing waste. 9
(C) Animal manure. 10
(D) Organics separated from municipal solid waste. 11
(iii) A facility or generation system or set of systems that is 12
placed in commercial operation after the effective date of the 13
amendatory act that added section 51, but only if the facility or 14
generation system or set of systems uses as feedstock trees and 15
wood derived from sustainably managed forests or procurement 16
systems, as defined in section 261c of the management and budget 17
act, 1984 PA 431, MCL 18.1261c. 18
(d) (j) Renewable energy system does not include any of the 19
following: 20
(i) A hydroelectric pumped storage facility. 21
(ii) A hydroelectric facility that uses a dam constructed after 22
October 6, 2008 unless the dam is a repair or replacement of a dam 23
in existence on October 6, 2008 or an upgrade of a dam in existence 24
on October 6, 2008 that increases its energy efficiency. 25
(iii) An incinerator. This subparagraph does not apply before 26
2040 to an incinerator that was generating power before January 1, 27
2023, unless the incinerator is expanded. 28
(iv) A gasification facility. 29
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(v) A facility that cofires biomass with tires or tire-derived 1
fuel. 2
(e) (k) "Resource adequacy" describes having sufficient 3
resources to provide customers with a continuous supply of 4
electricity at the proper voltage and frequency, virtually always 5
and across a range of reasonably foreseeable conditions. 6
(l) "Revenue recovery mechanism" means the mechanism for 7
recovery of incremental costs of compliance provided for under 8
section 22. 9
Sec. 13. As used in this act: 10
(a) "Site" means, except as used in part 8, a contiguous site, 11
regardless of the number of meters at that site. A site that would 12
be contiguous but for the presence of a street, road, or highway is 13
considered to be contiguous for the purposes of this subdivision. 14
(b) "Transmission line" means all structures, equipment, and 15
real property necessary to transfer electricity at system bulk 16
supply voltage of 100 kilovolts or more. 17
(c) "Utility system resource cost test" means a standard that 18
is met for an investment in energy waste reduction if, on a life 19
cycle basis, using a real societal discount rate based on actual 20
long-term United States treasury bond yields, the total avoided 21
supply-side costs to the provider, including representative values 22
for electricity or natural gas supply, transmission, distribution, 23
and other associated costs, are greater than the total costs to the 24
provider of administering and delivering the energy waste reduction 25
program, including net costs for any provider incentives paid by 26
customers and capitalized costs recovered under section 89. 27
(c) (d) "Wind energy conversion system" means a system that 28
uses 1 or more wind turbines to generate electricity and has a 29
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nameplate capacity of 100 kilowatts or more. 1
(d) (e) "Wind energy resource zone" or "wind zone" means an 2
area designated by the commission under section 147. 3
Sec. 61. An electric provider shall offer to its customers the 4
opportunity to participate in a voluntary green pricing program 5
under which the customer may specify, from the options made 6
available by the electric provider, the amount of electricity 7
attributable to the customer that will be renewable energy. If the 8
electric provider's rates are regulated by the commission, the 9
program, including the rates paid for renewable energy, must be 10
approved by the commission. The customer is responsible for any 11
additional costs incurred and shall accrue any additional savings 12
realized by the electric provider as a result of the customer's 13
participation in the program. If an electric provider has not yet 14
fully recovered the incremental costs of compliance, both of the 15
following apply: 16
(a) A customer that receives at least 50% of the customer's 17
average monthly electricity consumption through the program is 18
exempt from paying surcharges for incremental costs of compliance. 19
(b) Before entering into an agreement to participate in a 20
commission-approved voluntary green pricing program with a customer 21
that will not receive at least 50% of the customer's average 22
monthly electricity consumption through the program, the electric 23
provider shall notify the customer that the customer will be 24
responsible for the full applicable charges for the incremental 25
costs of compliance and for participation in the voluntary 26
renewable energy program as provided under this section. 27
Sec. 101. (1) By Not later than December 31, 2029, each 28
electric provider whose rates are regulated by the commission shall 29
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petition the commission for any necessary approvals, and each 1
alternative electric supplier shall submit a plan to the 2
commission, to construct or acquire eligible energy storage systems 3
or enter into eligible energy storage contracts to meet its share 4
of a statewide energy storage target of a combined capacity of at 5
least 2,500 megawatts. An electric provider's share of the 6
statewide energy storage target shall must be apportioned based on 7
the electric provider's annual average contribution to in-state 8
retail electric peak load for the 5-year period immediately 9
preceding the filing of the electric provider's plan under this 10
subsection. 11
(2) An electric provider whose rates are regulated by the 12
commission shall demonstrate compliance with its plan under 13
subsection (1) as part of the electric provider's integrated 14
resource plan filed under section 6t of 1939 PA 3, MCL 460.6t. An 15
alternative electric supplier shall demonstrate compliance with its 16
plan under subsection (1) in the demonstration required under 17
section 6w(8)(b) of 1939 PA 3, MCL 460.6w. 18
(3) An alternative electric supplier may contract with an 19
electric provider whose rates are regulated by the commission to 20
construct the eligible energy storage systems necessary to fulfil 21
the alternative electric supplier's portion of the statewide energy 22
storage target that is attributable to the alternative electric 23
supplier's load within the service territory of the electric 24
provider whose rates are regulated by the commission. An eligible 25
energy storage contract under this subsection shall must be filed 26
with the commission. The contract prices may not exceed the cost 27
plus the applicable rate of return for the electric provider whose 28
rates are regulated by the commission. 29
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(4) An electric provider whose rates are regulated by the 1
commission shall submit to the commission for review and approval 2
eligible energy storage contracts entered into to meet its share of 3
the statewide storage target under subsection (1). If the 4
commission approves an eligible energy storage contract, the 5
commission shall authorize the electric provider to recover the 6
costs of the contract in the electric provider's base rates. An 7
electric provider whose rates are regulated by the commission shall 8
conduct a competitive bidding process before entering an eligible 9
energy storage contract to meet its share of the statewide target 10
under subsection (1). 11
(5) An electric provider whose rates are regulated by the 12
commission qualifies for a financial incentive under section 28(8) 13
for an eligible energy storage contract. 14
(5) (6) This act does not limit the amount of energy storage 15
capacity an electric provider may procure. 16
(6) (7) Within 1 year after the effective date of the 17
amendatory act that added this section, Not later than February 27, 18
2025, the commission shall complete a study on long-term energy 19
storage systems and multiday energy storage systems. 20
(7) (8) For purposes of this subsection, an energy storage 21
system must have been placed in service on or after the effective 22
date of the amendatory act that added this section.February 27, 23
2024. 24
(8) (9) As used in this section: 25
(a) "Eligible energy storage contract" means a contract to 26
construct, acquire, or use the services of an eligible energy 27
storage system. 28
(b) "Eligible energy storage system" means an energy storage 29
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RMH H02431'25 (H-3)_HB5711_APH_1 6g37vd
system that is located within the local resource zone or the 1
locational deliverability area, as defined by the appropriate 2
independent system operator or regional transmission organization, 3
in which the electric provider is subject to capacity demonstration 4
obligations pursuant to section 6w(8)(b) of 1939 PA 3, MCL 460.6w. 5
Sec. 173. (1) The commission shall establish a distributed 6
generation program by order issued by July 19, 2017. The commission 7
may promulgate rules the commission considers necessary to 8
implement this program. Any rules adopted regarding time limits for 9
approval of parallel operation must recognize grid reliability and 10
safety complications including those arising from equipment 11
saturation, use of multiple technologies, and proximity to 12
synchronous motor loads. The program must apply to all electric 13
utilities whose rates are regulated by the commission and 14
alternative electric suppliers in this state. 15
(2) Except as otherwise provided under this part, an electric 16
customer of any class is eligible to interconnect an eligible 17
electric generator with the customer's local electric utility and 18
operate the eligible electric generator in parallel with the 19
distribution system. The program must limit each customer to 20
generation capacity designed to meet up to 110% 100% of the 21
customer's electricity consumption for the previous 12 months. The 22
commission may waive the application, interconnection, and 23
installation requirements of this part for customers participating 24
in the net metering program under the commission's March 29, 2005 25
order in case no. U-14346. 26
(3) An electric utility or alternative electric supplier is 27
not required to allow for a distributed generation program that is 28
greater than 10% 1% of its average in-state peak load for the 29
21
RMH H02431'25 (H-3)_HB5711_APH_1 6g37vd
preceding 5 calendar years. The electric utility or alternative 1
electric supplier shall notify the commission if its distributed 2
generation program reaches the 10% 1% limit under this subsection. 3
The 10% 1% limit under this subsection shall be allocated as 4
follows: 5
(a) Not less than 50% for customers with an eligible electric 6
generator capable of generating 20 kilowatts or less. 7
(b) Not more than 50% for customers with an eligible electric 8
generator capable of generating more than 20 kilowatts but not more 9
than 550 kilowatts. 10
(4) Selection of customers for participation in the 11
distributed generation program must be based on the order in which 12
the applications for participation in the program are received by 13
the electric utility or alternative electric supplier. 14
(5) An electric utility or alternative electric supplier shall 15
not discontinue or refuse to provide electric service to a customer 16
solely because the customer participates in the distributed 17
generation program. An electric utility or alternative electric 18
supplier shall not limit the rate schedule under which a customer 19
is served solely because the customer participates in the 20
distributed generation program. 21
(6) The distributed generation program created under 22
subsection (1) must include all of the following: 23
(a) Statewide uniform interconnection requirements for all 24
eligible electric generators. The interconnection requirements must 25
be designed to protect electric utility workers and equipment and 26
the general public. 27
(b) Distributed generation equipment and its installation 28
shall meet all current local and state electric and construction 29
22
RMH H02431'25 (H-3)_HB5711_APH_1 6g37vd
code requirements. Any equipment that is certified by a nationally 1
recognized testing laboratory to IEEE 1547.1-2020 testing standards 2
and in compliance with UL 1741 scope 1.1A and installed in 3
compliance with this part is considered to be compliant. The 4
commission may adopt successor requirements by promulgating rules 5
under the administrative procedures act of 1969, 1969 PA 306, MCL 6
24.201 to 24.328, if the commission determines the successor 7
requirements are reasonable and consistent with the purposes of 8
this subdivision. Within the time provided by the commission in 9
rules promulgated under subsection (1) and consistent with good 10
utility practice, and the protection of electric utility workers, 11
electric utility equipment, and the general public, an electric 12
utility may study, confirm, and ensure that an eligible electric 13
generator installation at the customer's site meets the IEEE 14
1547.1-2020 requirements or any applicable successor requirements 15
adopted by the commission. If necessary to promote grid reliability 16
or safety, the commission may promulgate rules that require the use 17
of inverters that perform specific automated grid-balancing 18
functions to integrate distributed generation onto the electric 19
grid. Inverters that interconnect distributed generation resources 20
may be owned and operated by electric utilities. Both of the 21
following must be completed before the equipment is operated in 22
parallel with the distribution system of the utility: 23
(i) Utility testing and approval of the interconnection, 24
including all metering. 25
(ii) Execution of a parallel operating agreement. 26
(c) A uniform application form and process to be used by all 27
electric utilities and alternative electric suppliers in this 28
state. Customers who are served by an alternative electric supplier 29
23
RMH H02431'25 (H-3)_HB5711_APH_1 6g37vd
shall submit a copy of the application to the electric utility for 1
the customer's service area. 2
(d) Distributed generation customers shall pay the retail 3
rates for electricity inflow under the rate schedule under which 4
the customer is served. 5
(7) Distributed generation customers shall receive a monthly 6
bill credit for outflow as determined by the commission. Credits 7
for outflow must reflect cost of service. 8
(8) Each electric utility and alternative electric supplier 9
shall maintain records of all applications and up-to-date records 10
of all active eligible electric generators located within their 11
service area. 12
Sec. 191. (1) Subject to subsection (2), to To implement this 13
act, the commission shall issue orders or promulgate rules pursuant 14
to in accordance with the administrative procedures act of 1969, 15
1969 PA 306, MCL 24.201 to 24.328. 16
(2) By January 1, 2026, the commission shall issue an order 17
providing formats and guidelines for an electric provider to submit 18
a clean energy plan pursuant to section 51. 19
Enacting section 1. The following acts and parts of acts are 20
repealed: 21
(a) Subpart A of part 2 of the clean and renewable energy and 22
energy waste reduction act, 2008 PA 295, MCL 460.1022 to 460.1054. 23
(b) Sections 71 to 99 of the clean and renewable energy and 24
energy waste reduction act, 2008 PA 295, MCL 460.1071 to 460.1099. 25
(c) Part 3 of the clean and renewable energy and energy waste 26
reduction act, 2008 PA 295, MCL 460.1131 to 460.1133. 27
(d) Section 179 of the clean and renewable energy and energy 28
waste reduction act, 2008 PA 295, MCL 460.1179. 29
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Final Page
RMH H02431'25 (H-3)_HB5711_APH_1 6g37vd
(e) Section 17 of the property assessed clean energy act, 2010 1
PA 270, MCL 460.947. 2
Enacting section 2. This amendatory act does not take effect 3
unless House Bill No. 5710 of the 103rd Legislature is enacted into 4
law. 5