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KHS S03517'25 a_SB0916_INTR_1 7kzhp2
SENATE BILL NO. 916
A bill to amend 2008 PA 295, entitled
"Clean and renewable energy and energy waste reduction act,"
by amending section 28 (MCL 460.1028), as amended by 2023 PA 235.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 28. (1) An electric provider shall achieve a renewable 1
energy credit portfolio of at least the following: 2
(a) Through 2029, 15%. 3
(b) In 2030 through 2034, 50%. 4
(c) In 2035 and each year thereafter, 60%. 5
(2) An electric provider's renewable energy credit portfolio 6
shall must be calculated as follows: 7
April 22, 2026, Introduced by Senators CHANG, CAVANAGH and MCMORROW and referred
to Committee on Energy and Environment.
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KHS S03517'25 a_SB0916_INTR_1 7kzhp2
(a) Determine the number of renewable energy credits used to 1
comply with this subpart during the applicable year. 2
(b) Divide by 1 of the following at the option of the electric 3
provider as specified in its renewable energy plan: 4
(i) The number of weather normalized megawatt hours of 5
electricity sold by the electric provider during the previous year 6
to retail customers in this state, less the amount of sales 7
attributable to customers participating in an electric provider's 8
voluntary green pricing program under section 61 and the outflow 9
from customers participating in the distributed generation program 10
under section 173 for that year. 11
(ii) The average number of megawatt hours of electricity sold 12
by the electric provider annually during the previous 3 years to 13
retail customers in this state, less the amount of sales 14
attributable to customers participating in an electric provider's 15
voluntary green pricing program under section 61 and the outflow 16
from customers participating in the distributed generation program 17
under section 173 for that year. 18
(c) Multiply the quotient under subdivision (b) by 100. 19
(3) Notwithstanding subsection (1) and subject to subsection 20
(4), in any year a cooperative electric provider or a multistate 21
electric provider may calculate its maximum renewable energy credit 22
portfolio requirement as follows: 23
(a) Determine the number of megawatt hours of electricity sold 24
by the electric provider to retail customers in this state using 25
the option the electric provider selected under subsection (2)(b). 26
(b) Subtract the number of megawatt hours of nuclear energy 27
that the electric provider obtained from a system located in this 28
state that the electric provider owned or from which the electric 29
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provider had contracted to receive nuclear energy on or before 1
January 1, 2024. 2
(4) An electric provider described in subsection (3) is 3
required to achieve a renewable energy credit portfolio equal only 4
to the electric provider's maximum renewable energy credit 5
portfolio requirement if the electric provider's maximum renewable 6
energy credit portfolio requirement is less than the number of 7
renewable energy credits required to comply with the applicable 8
standard in subsection (1). If the electric provider is a 9
multistate electric provider, and the electric provider's maximum 10
renewable energy credit portfolio requirement is less than the 11
number of renewable energy credits required to comply with the 12
applicable standard in subsection (1), then the electric provider 13
is required to achieve a renewable energy credit portfolio equal 14
only to the electric provider's maximum renewable energy credit 15
portfolio requirement if all of the following requirements are met: 16
(a) The electric provider's electricity generation systems 17
located within this state produce energy exceeding the electric 18
provider's electricity sales in this state. 19
(b) All of the electric provider's electricity generation 20
systems located within this state are clean energy systems. 21
(c) All of the renewable energy credits generated in this 22
state are used by the electric provider toward compliance with the 23
renewable energy credit portfolio as calculated under subsection 24
(2). 25
(d) Renewable energy and clean energy generated in this state 26
equal to or exceeding the provider's electricity sales in this 27
state are not used by the provider or any other provider to comply 28
with any similar standards. 29
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(5) Each electric provider shall meet the renewable energy 1
credit standard, subject to subsection (3), with renewable energy 2
credits obtained by any of the following means: 3
(a) Generating electricity from renewable energy systems for 4
sale to retail customers. 5
(b) Purchasing or otherwise acquiring renewable energy and 6
capacity. 7
(c) Purchasing or otherwise acquiring renewable energy credits 8
without the associated renewable energy or capacity. Renewable 9
energy credits acquired under this subdivision shall must be 10
produced within the territory of the regional transmission 11
organization of which the electric provider is a member, and, 12
except for a municipally owned electric utility, shall not exceed 13
5% of an electric provider's renewable energy credits annually used 14
to comply with the renewable energy standard. Renewable energy 15
credits acquired under this subdivision are not subject to the 16
requirements of section 29 and shall must not be used to comply 17
with the renewable energy standard after 2035. 18
(6) For an electric provider whose rates are regulated by the 19
commission, the electric provider shall submit a contract entered 20
into for the purposes of subsection (5) to the commission for 21
review and approval. If the commission approves the contract, it is 22
considered consistent with the electric provider's renewable energy 23
plan. The commission shall not approve a contract based on an 24
unsolicited proposal unless the commission determines that the 25
unsolicited proposal provides opportunities that may not otherwise 26
be available or commercially practical through a competitive bid 27
process. 28
(7) An electric provider that has achieved annual incremental 29
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energy savings of greater than 2% under an energy waste reduction 1
plan approved under section 73 may substitute energy waste 2
reduction credits for renewable energy credits otherwise required 3
to meet the renewable energy credit standard if the substitution is 4
approved by the commission. Under this subsection, energy waste 5
reduction credits shall must not be used by a provider to meet more 6
than 10% of the renewable energy credit standard. One renewable 7
energy credit shall must be awarded per 1 energy waste reduction 8
credit. 9
(8) If an electric provider whose rates are regulated by the 10
commission enters into a purchase power agreement for renewable 11
energy resources or a third-party contract for an energy storage 12
system or clean energy system with an entity that is not an 13
affiliate, the commission shall authorize an annual financial 14
incentive for the electric provider. The financial incentive shall 15
must be calculated as the product of contract payments in that year 16
multiplied by the electric provider's pre-tax weighted average cost 17
of permanent capital comprised of long-term debt obligations and 18
equity of the electric provider's total capital structure as 19
determined by the commission's final order in the electric 20
provider's most recent general rate case. The pre-tax weighted 21
average cost of permanent capital used to calculate the financial 22
incentive shall must not be fixed throughout the entire term of the 23
contract at the pre-tax weighted average cost of capital applicable 24
in the first year but shall must be updated based on the 25
commission's final order in each succeeding general rate case for 26
the electric provider. The financial incentive shall apply applies 27
to each contract described in this subsection from the date the 28
contract is executed for the entire term of the contract. This 29
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subsection applies to any contract entered into after June 30, 1
2024. 2
(9) As used in this section, "cooperative electric provider" 3
means an entity that is a member of or that purchases energy from 4
an entity that is either of the following: 5
(a) Organized as a cooperative corporation under sections 98 6
to 109 of 1931 PA 327, MCL 450.98 to 450.109. 7
(b) A cooperative corporation in the business of generating or 8
transmitting electricity. 9