Thursday, November 12, 2015

Lobbying Rules; explaining advocacy & noting stances

Lobbying rules and what a 501c3 can/cannot do:

http://bolderadvocacy.org/wp-content/uploads/2014/05/Comparison_of_501c3_and_50c4_Permissible_Activities.pdf

http://www.ncte.org/library/NCTEFiles/Groups/Affiliates/LobbyingRules.pdf


https://kapost-files-prod.s3.amazonaws.com/uploads/direct/1442372448-6108-2394/USGBC_Green_Building_Economic_Impact_Study.pdf

Hi Christina (Maria, Cheri, Debra, & Kevin too)

Christina:
Would you mind taking a look at this note? I want to make sure I'm accurately explaining how our members can advocate; if necessary explaining details as a 501c3 and that the current legislative environment merits a more direct approach to advocacy (lobbying).

Maria, Cheri, Debra: If everything looks good, please distribute this to your members.

Kevin, please  add any relevant information to your efforts in updating the building codes I may have missed so we can stay on the same page with advocacy.

Thanks,
Ian D. Tran

###BEGIN DRAFT EMAIL###
###SUBJ: Advocacy Actions+House Energy News###
Advocates,

See forwarded House Bill amendment overview: 
From the MEIBC & Gongwer releases. Thanks, Anthony for the Gongwer coverage on House energy bills to help us get better acquainted.

I've highlighted sections indicate where the USGBC has 
positive, possiblenegativeor unknown interest based on our programs, the industry, and view for sustainability in general and comment in italicized brackets.

If it's possible or unknown, your help in discerning what the policy might mean will hellp us articulate our needs more clearly and be greatly appreciated.

Remember: our chief advocacy goal is to update the building codes.
At the same time, the current proposed legislative revisions to repealing the Energy Optimization framework (for energy efficiency & renewable portfolio standard) stands in conflict with our need to ensure proper public health and environmental integrity.

This allows us to tell the story about the business/economic benefits of green building in Michigan, and links to improving environmental health matter too.

YOU CAN HELP:
By telling your representatives:

1) How energy efficiency, LEED, and renewables benefit your organization, community or family and the environment

You can use USGBC's newly released economic impact study and our forecasts.

2) Why updating MI building codes is a win-win for everyone

The USGBC can also help with providing data, and by convening the two upcoming events:
November: 16th or 17th (date to be finalized) a Policy Round Table call-in with other building/energy industry leaders
December: 1st or 2nd (date to be finalized): a Lansing
 Policy Round Table & Advocacy Day in collaboration with E2

We also welcome help in organizing from fellow USGBC members.

A note on lobbying rules: what a 501c3 ought/ought not do

Some of this policy seems like it could be interpreted as out of self defense.

https://www.irs.gov/Charities-&-Non-Profits/Lobbying



Welcome to the weekly newsletter of the Michigan Energy Innovation Business Council.
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Michigan Energy Innovation Business Council
Welcome to the weekly newsletter of the Michigan Energy Innovation Business Council, the business voice for advanced energy in Michigan. Here’s what happening:

Michigan House Committee Moves Revised Energy Bills
The Michigan House Energy Policy Committee Thursday approved a revised version of the energy legislation introduced by Chairman Aric Nesbitt (R-Lawton) that makes a number of significant changes to Michigan’s energy policy landscape. As originally introduced, the legislation would have returned Michigan to a fully regulated electricity market, eliminated the Energy Optimization (EO) standard that requires utilities to achieve 1% annual energy efficiency savings (0.75%/ year for natural gas utilities), allowed the Renewable Portfolio Standard (RPS) to expire, and moved consideration of future utility investments to a new integrated resource planning process.

As part of the deliberations yesterday, however, the Committee considered and adopted a number of amendments, including the following:
  • Energy Efficiency: The Committee adopted an amendment that would maintain the EO standard for natural gas utilities, and extended the 1% EO standard for electric utilities through 2020, though it could be eliminated sooner in the case of an approved utility plan. The Committee also added incentives for utilities to go beyond the current EO standards, though left additional amendments regarding changes to current cost caps on efficiency measures to be considered on the House floor.
  • Renewable Energy: The RPS would still expire at the end of 2015. An amendment to HB 4397 would set a goal – but not a requirement – of getting 30% of Michigan’s energy from renewable energy and energy efficiency by 2025. There would also be no requirement that third party developers have the opportunity to develop a portion of any new renewable energy projects. (Under current law, independent developers are guaranteed at least 50% of the new renewable energy market, a requirement that has helped to drive down costs for renewables in Michigan.[2030 districts decentralized electric generation, LEED ND] An amendment was also adopted that would exclude the burning of tires and petroleum coke from the definition of renewable energy.
  • Retail Open Access/ Energy Choice: The amended legislation would maintain the current hybrid market that allows up to 10% of customers to purchase their electricity from alternative energy suppliers (AESs), but with the requirement that in cases in which the Public Service Commission projects a capacity shortfall, AESs would be required to demonstrate adequate capacity to cover the loads they propose to serve.
  • Utility Planning: The legislation maintains its shift of energy planning decisions to an Integrated Resource Planning process overseen by the Public Service Commission, which would evaluate utility proposals and allow rate recovery for new projects only if the utility could demonstrate their proposal was “the most reasonable” option available. The Committee also adopted an amendment that would expand the Michigan Public Service Commission to five members, including one member to represent the interests of residential ratepayers.
  • Other Measures: The Committee also adopted an amendment to expand the availability of on-bill financing for energy upgrades. Changes to the current Net Energy Metering framework, which have been a source of much discussion and controversy on the Senate side, were not addressed in the House legislation.
While many of the amendments represent an improvement over the bills as introduced, Michigan EIBC and its member companies are disappointed that the Michigan House Energy Policy Committee balked at a real opportunity to grow the advanced energy economy in Michigan. The existing renewable energy and energy efficiency standards have been a huge success in creating the diverse portfolio we need, and have provided the necessary certainty to spur billions of dollars in investment in Michigan. We should be building on that success, and hope these bills continue to be improved as the process moves forward.

The legislation now awaits further consideration on the House floor, but it does not appear that the House will take action prior to the annual hunting/ Thanksgiving break.

Road Funding Deal Passes, Imposes Additional Fees on Electric Vehicles
The Michigan Legislature this week passed a roads deal that will ultimately generate $1.2 billion in additional revenue to fix Michigan’s roads and bridges. The funding includes $600 million in reallocated funds from existing budgets, and $600 million in new revenue, including an increase in the tax on gasoline, increases in diesel fuel taxes, and an increase in registration fees. Part of the deal involves fee increases of between $30 and $100 for hybrid electric vehicles and between $100 and $200 for non-hybrid electric vehicles. In addition, hybrid vehicles will pay an additional $2.50 in registration fees for each $0.01 increase in gas taxes, while non-hybrid electric vehicles will pay an addition $5 in annual registration fees for each $0.01 increase in gas taxes. With the gas tax moving from $0.19 to $0.263/ gallon beginning next year, this represents an additional annual registration fee of $18.25 for hybrids and $36.50 for EVs.

Michigan EIBC opposed these increases, particularly at a time when Michigan manufacturers are expanding their production of advanced batteries and electric and hybrid vehicles. We remain concerned that these changes represent a disincentive for Michigan residents to become consumers of the new and burgeoning advanced battery and electric vehicle industry we’re helping to develop.

Energy Innovators Gala Tickets SOLD OUT!
Michigan EIBC is happy to host the 3rd annual Michigan Energy Innovators Gala.  James Chen, Vice President of Regulatory Affairs and Associate General Counsel of Tesla Motors, Inc. will give the keynote speech. Valerie Brader, Executive Director of the Michigan Agency for Energy, will offer opening remarks.

The Gala will take place on Tuesday, November 10, 2015 at the Kellogg Hotel and Conference Center in East Lansing. The event will kick off with a reception at 5:00 pm followed by dinner at 6:00 pm. Tickets have now sold out.
                                                  
James Chen joined Tesla in August of 2010 and currently serves as the company’s
Vice President of Regulatory Affairs. Based in Washington, D.C., Jim is responsible for all aspects of government affairs and regulation at the international, federal and state levels for Tesla. He also serves as Tesla’s Associate General Counsel where he is tasked with ensuring compliance with the legal requirements applicable to Tesla’s products and facilities. Jim also assists on business deals for the company, including furthering Tesla’s relationships with strategic partners in the established automobile industry.

Valerie Brader is the Executive Director of the Michigan Agency for Energy, a position she has held since the Agency’s creation earlier this year. Her service with the Snyder administration began in 2011, previously serving as Deputy Legal Counsel and Senior Policy Advisor to Governor Snyder, including work on the City of Detroit bankruptcy case. Before her service in state government she was a member (partner) at Bodman PLC, practicing primarily environmental and corporate law (with a specialization in assisting new or expanding businesses, from incorporation to securing permits and tax credits).

The annual Michigan Energy Innovators Gala is the opportunity for Michigan’s advanced energy industry to pay tribute to and recognize those businesses, policymakers, and others who are doing the most to build the industry in Michigan.

Awards will be presented in five categories:
  • Business of the Year
  • Emerging Company of the Year
  • Employer of the Year
  • Public Official of the Year
  • Energy Innovators Business Hall of Fame

Michigan Energy News
Michigan EIBC member company Walker-Miller Energy Services LLC was named one of the 100 fastest growing inner-city companies by Forbes.

The Traverse Ticker has a piece on Cherryland Electric Cooperative expanding its renewable portfolio.

A Stanford University professor released a report stating that Michigan could get 100 percent of its energy from renewables by 2050, with 26 percent coming from solar alone.
The final coal shipment is expected to arrive at the BC Cobb plant in Muskegon, the Detroit Free Press reports.

Roderick Coy from ABATE has an opinion piece in the Lansing State Journal about the importance of competitive bidding.

New and Renewing Members

Greater Gratiot Development
Greater Gratiot Development, Inc. (GGD) is a private nonprofit development company now in its 37th year of operation. GGD provides a wide range of development services for private industry on behalf of Gratiot County and all the municipal units, and has assisted companies working in wind, solar, bio, as well as oil and gas. GGD administers the Economic Development Corporation, the Brownfield Redevelopment Authority, the Hospital Finance Authority and partners with State and Federal agencies to assure the availability of public and private services to companies residing or considering locating in Gratiot County. GGD may show a company a variety of sites options either as a stand-alone or in one of 5 Michigan Certified Business Parks.

groSolar
For more than 17 years, groSolar has consistently been one of the nation’s leading solar firms providing the highest quality and innovative solutions for solar energy generation. Our firm has engineered, supplied, and constructed projects from coast to coast.  Our goal is to provide our customers with the most competitively priced, highest quality, on-time solar system that will meet or surpass the client’s needs.

Global Resource Options, Inc. (dba: groSolar) is a privately owned company, which provides turnkey engineering, procurement, and construction (EPC) solar photovoltaic (PV) projects for developers, financiers, utlities, and commercial, government, and other institutional clients.  groSolar has designed, built, installed, and procured equipment for more than 120 MW of solar PV systems across the US with more than 2,000 installations.  groSolar also provides operation and maintenance (O&M) services for solar PV system owners.

Mackinac Technology Company
The Mackinac Technology Company has developed an innovative window system that can achieve thermal performance of R-13 (U-.07) at price points low enough to achieve cost recovery from energy savings in 3-5 years. The new product is a "storm window" type insert that is attached to the interior side of an existing window; the orginal glazing remains in place. A key feature is that the product is color neutral and transparent to visible light. Mackinac's product is compatible with solar control films and dynamic shading devices and it is ultra light-weight, making it suitable for high rise commercial buildings.

Metro Consulting Associates
Metro Consulting Associates (MCA) is a full service consulting firm providing geographic information systems (GIS), land surveying, civil engineering, ecological, and land acquisition services. MCA was founded in 2009 has grown to provide a wide range of services. Areas of expertise include: utility, commercial, education, energy, governmental, healthcare, industrial, institutional, municipal, office, residential, and retail. The keys to MCA’s success are our professional relationships, outstanding reputation, and exceptional results. MCA thrives at building long term relationships with our clients through our responsiveness, service, professional integrity, staff, and experience. Today, MCA has grown to a staff of more than 60 professionals with exceptional services that continue to exceed our client’s expectations. MCA has offices in Michigan, Illinois, Indiana, and Ohio.

National Energy News
Utility Dive has a piece on the first fully dispatchable solar-storage project in Hawaii.

Morning Consult has a piece on the House Energy and Power committee voting out a resolution disproving of the EPA Clean Power Plan.

Utility Dive also has a piece about the legal battle over demand response and how it will affect California’s goal of a 50 percent renewable portfolio by 2030.

Lyndon Rive, SolarCity founder and CEO, has an opinion piece in Morning Consult, defending the case that net-metering is not a subsidy.

Michigan EIBC’s national partner, Advanced Energy Economy (AEE) released a reportthat suggests for every dollar spent in demand response, consumers will get four dollars back in value.
Utility Dive has a story on on-bill financing for energy efficiency projects gaining traction in Midwest states.
Visual Capitalist has a story on how the top 5 global brands use renewable energy.

Michigan Energy Events
The November Michigan Energy Forum will take place in Ann Arbor on November 12. The these for this month’s event is “Case Studies and Available Incentives for Commercial Energy Retrofits.” The event, which is free for attendees, takes place at Ann Arbor SPARK, 330 E. Liberty St. in Ann Arbor. Registration is available here.

Additional Resources

Advanced Energy Economy (AEE) is home to PowerSuite, a suite of tools that allows companies a one-stop on-line portal to search, track, and collaborate on state legislation and regulatory proceedings from around the country.

PowerSuite includes both BillBoard, the AEE dashboard for managing state legislation, and DocketDash, the AEE dashboard for managing state public utility commission proceedings. Subscription required.

SolarPermit.org is a national solar permitting database that provides information on permitting for solar in jurisdictions across the country. The database includes a variety of information, from average permit turnaround times, to information required to be included in the permit, to contact information for individual jurisdictions. You can browse the requirements for the Michigan cities included in the database here.

The U.S. Department of Energy is offering A Guide to Federal Finance Facilities Available for Energy Efficiency Upgrades and Clean Energy Deployment. The downloadable guide provides information about the various federal financing programs available for energy efficiency and renewable energy -- making it easier for state, local and tribal leaders, along with their partners in the private sector, to find capital for energy efficiency and renewable energy projects.
The Department of Energy has offers free public access to accepted peer-reviewed manuscripts or published scientific journal articles from projects funded by the DOE within 12 months of publication.

As a business-driven organization, the Michigan EIBC exists to serve its members, and relies on business support. We thank our members for their important support and participation. Is your business interested in joining Michigan EIBC? Click here for more info or to sign up.

Does your business have exciting news? Share it with us and we’ll help you spread the word. Email us at mieibc@mieibc.org.


Ian Tran
Advocacy Chair, USGBC MI
Principal Strategist - Sustainability, Operations, and Education
ISMOTION | Allegorical
+1 734 776 0822 (U.S. Mobile)  :  greatlakesian (Skype ID)  :
ian@ismotion.co (Google Hangouts)
ismotion.co : ride2learn.org



On 7 November 2015 at 07:33, Offak, Anthony <anthony.offak@akahn.com> wrote:
See second story by Gongwer for what made it out of the house

From: MichiganEnergy@googlegroups.com [mailto:MichiganEnergy@googlegroups.comOn Behalf Of Jen Flood
Sent: Friday, November 06, 2015 4:15 PM
To: michiganenergy@googlegroups.com
Subject: [MEMJ] MI Energy News Clips

UP Matters: Gov. Rick Snyder: House energy legislation would help Michigan meet its needs long into future

Gov. Rick Snyder issued the following statement regarding the state House Energy Policy Committee’s approval of a package of legislation that will help Michigan meet its energy needs long into the future:

“I commend the House Energy Policy Committee for its important work on bills that will lead Michigan toward a more adaptable, affordable, reliable, and environmentally protective energy future. This is a great step in the process and I’m hopeful we can build upon the good work being done in both chambers to get this done by the end of the year.

“The bills now headed to the House floor would be a victory for Michiganders and a positive step in the long-term direction of our state. The package helps us continue with the progress we have made on competitiveness and affordability. It also addresses our goal of controlling our own destiny on energy. Decisions about our state’s energy should be made in Michigan and not in Washington, D.C.

"Reducing energy waste, on-bill financing, and having at least 30 percent of our energy come from our cleanest sources -- renewables and energy waste reduction -- are all things that were in my March special message, and I am excited to see support for them."

Gongwer: After Week-Long Negotiations, Energy Bills Sent To House Floor

Major energy legislation cleared the House Energy Policy Committee on Thursday with some significant changes, including changes to the proposed renewable energy definitions and a "goal" for utilities to get 30 percent of production from renewables and energy efficiency.

But advocates for expanding choice, or at least keeping it the same as current law, were not successful.

After convening at 8 a.m., recessing until 2:07 p.m. and then going until 7:45 p.m., coming in and out of order on its fourth attempt this week to meet on the issue, the committee reported HB 4298* - the bill involving choice and utility regulations - 18-7. Rep. Gary Glenn (R-Midland), the vice chair, Rep. Andrea LaFontaine (R-Columbus), Rep. Holly Hughes (R-White River Township), Rep. Tom Barrett (R-Potterville), Rep. Peter Lucido (R-Shelby Township), Rep. Derek Miller (D-Warren) and Rep. Scott Dianda (D-Calumet) all voted no.

HB 4297*, dealing with the environmental aspects of energy, cleared the committee 21-3 with Rep. Julie Plawecki (D-Dearborn Heights) abstaining and HB 4575* cleared 19-4 with Ms. Plawecki and Rep. LaTanya Garrett (D-Detroit) abstaining.

Rep. Aric Nesbitt (R-Lawton), the chair of the committee, said his goal is getting the bills finished before the end of the year.

He said utilities are going to make investments and if the state is going to deal with capacity in the long run, it should deal with it proactively instead of reactively, which he believes the legislation does.

"As you can imagine this has been legislation I have been working on for years now and it's the first down, and I look forward to getting to a touchdown," he told reporters after the vote.

Throughout the meeting, and the week, it was clear Mr. Nesbitt was negotiating with House Democrats to get the votes needed for the legislation to clear the committee. House Minority Floor Leader Sam Singh (D-East Lansing) attended the majority of the meeting Thursday and House Minority Leader Tim Greimel (D-Auburn Hills) also attended the meeting briefly and talked to Democrats serving on the panel.

Mr. Glenn has been criticizing the process for much of the week, and continued on Thursday before the vote, saying members likely were not clear on what certain amendments did in the context of a lengthy and complex bill.

But Rep. Bill LaVoy (D-Monroe), the minority vice chair of the committee, said he felt the process was fair and he was grateful the Democrats, despite being in the minority, were included.

Those following the issue said Mr. Nesbitt, if he wanted to get a bill out of the committee, would either need to compromise on choice or on environmental components. For several days, it seemed clear he had opted for the latter option.

Changes to the legislation include not requiring alternative energy suppliers to address local reliability needs unless a projected capacity shortfall was determined. Under the amendment there would be no changes to requirements on the alternative suppliers unless the Public Service Commission made certain determinations involving capacity.

Amendments adopted to HB 4298 would require alternative energy consumers to remain with the utility, if they go back, for 15 years if it doesn't cause an increased cost. For those consumers who would cause an increased cost, they would have to stay with the utility for 20 years.

Michigan Agency for Energy Executive Director Valerie Brader told the committee the changes regarding additional regulations for alternative suppliers would not go into effect unless there were some extreme circumstances.

But Mr. Glenn was unhappy he could not bring up an alternative energy supplier - or advocate - to confirm or deny Ms. Brader's statement. He said he simply doesn't know if the new language effectively kills choice or not.

An approved amendment offered by Mr. LaVoy would set up an energy efficiency program.

Another Democratic amendment would include in the language describing the Integrated Resource Plan that utilities would have a goal of reaching 30 percent of energy production through renewable energy and reduction of energy waste through energy efficiency by 2025.

Rep. Julie Plawecki (D-Dearborn Heights) noted it was a goal and not a mandate on utilities.

Another amendment provided financial incentives for utilities achieving annual incremental energy waste reduction of between 1.5 and 3 percent.

Another approved amendment would add a general taxpayer to the Public Service Commission with the intent of representing the average consumer, said Rep. Ed McBroom (R-Vulcan), the sponsor of the amendment. It would also increase the commission from three members to five.

It was not immediately clear if that amendment would remain the final version of the bill. Mr. Nesbitt said he would continue to work with Mr. McBroom.

Changes to HB 4297 include an amendment from Mr. Nesbitt and makes changes to the renewable portfolio standard, removing what the federal government does not consider renewable energy.

Another approved amendment offered by Mr. LaVoy "tightens up" the definition of renewable energy, but still expands the definition from the current law, including biomass and geothermal.

And another amendment, from Ms. Hughes, would ensure pet coke, hazardous waste, coal waste and scrap tires were not included in the renewable energy definition. That addressed a major criticism from Democrats, though some forms of waste to energy could still count.

Mr. Glenn attempted to make a variety of amendments regarding the 10 percent choice market, including ensuring all schools, community colleges and universities would not count against the cap.

Ms. Hughes attempted to pass an amendment, which she said the Michigan Chamber of Commerce supported, that would keep the choice market the same as current law. That amendment failed 10-10 with five members abstaining.

Throughout the committee meeting Thursday, which went at ease several times, comments from members indicated they weren't pleased with the process.

Mr. Glenn, when the committee first began, said he could not vote on Mr. Nesbitt's amendments because they were several pages and he had no time to know what they did.

Later, Mr. Glenn made another comment about the amendments and Mr. Nesbitt quipped: "The reason I did it as an amendment and not an additional sub is because of the criticism I've received," he said.

"Well I had zero time to read the amendments," Mr. Glenn said.

Mr. Glenn said after the meeting that he didn't think the legislation would be well received in the full House, particularly the Republican caucus. He said there would likely be concerns regarding the choice piece of the legislation.

Mr. Nesbitt said a vast majority of committee members supported the bills and he believes he would have the support of a majority of the House Republican caucus.

On the criticism on the process, Mr. Nesbitt said the legislation has been up for almost the entire year and everyone has their own thought son how to improve bills.

"This in terms of the legislative process, this is a part of it, we allowed a lot of amendments to be debated," he said, also adding more than 120 people have testified throughout the year.

But Mr. Glenn said he felt members were being pressured by the time frame, knowing the meeting would end with a vote. He said many of the questions members have will be answered in the coming weeks.

REACTION: Statements poured in Thursday evening after the committee reported the bill, with many slamming the choice provisions.

Michigan Freedom Fund President Terri Reid said the bills were reported after a "rushed" and "secretive" process.

"The result is substitute language approved today that hurts Michigan ratepayers, schools and job creators who already face the highest electric costs in the region," Ms. Reid said in a statement. "Electric choice should be expanded, not eliminated. Competition serves as the best method of lowering energy costs for Michigan's hardworking families and keeping the large, monopoly utility providers honest."

Wayne Kuipers, Energy Choice Now executive director, said the bill would kill electric choice, which has saved $1.1 billion for those "lucky enough" to have it.

"The process of passing this utility-friendly/consumer-hostile legislation out of committee was as flawed and damaging as the bill itself," he said in a statement. "No public testimony was allowed on what was essentially - as verified by the governor's own energy advisor - a brand new bill before the committee. The bottom line is: the members of this committee just passed a bill that will potentially cost 40 percent of Michigan's public schools $24 million annually and cost Michigan job providers nearly $100 million each year."

And environmental advocates said the bills do not go far enough.

"The only way to hold utilities accountable for increasing our use of clean, renewable energy is through mandates for renewable energy and energy efficiency," Anne Woiwode, conservation director for Sierra Club, Michigan Chapter, said in a statement. "The Nesbitt bill is a giveaway to utility shareholders and puts polluter profits before Michigan's ratepayers and natural resources."

"The bills passed out of committee tonight are a step in the right direction, but do not go far enough to increase our use of clean, renewable energy, or to ensure we lower energy costs through reducing energy waste," Jack Schmitt, deputy director for the Michigan League of Conservation Voters, said in a statement. "We can and must do better to build upon the success of our clean energy standards. We look forward to working through the legislative process to strengthen this policy and to ensure Michigan continues to increase its use of renewable energy and takes further strides in reducing energy waste."

Finally, MI Air MI Health Coalition Director Rory Neuner said: "The Nesbitt plan ignores the health impacts of our energy choices and that's why health professionals are urging legislators to go back to the drawing board. We urge the legislature to support forward-looking legislation that will reduce dangerous pollution and protect public health."

MIRS News: Juiced-Up Energy Efficiency, Renewable Goal Added To House Energy Bills

A stronger energy efficiency program and a goal that 30 percent of the state's power comes from renewable sources and "energy waste reduction" by 2025 were two of the major changes made to legislation that cleared the House Energy Policy Committee this evening after a stop-and-start, six-hour meeting.

The three-bill package continues to put stricter requirements on alternative energy suppliers (AES), to the chagrin of some Republicans, and doesn't include a mandate that power companies use a certain percentage of renewables, which some Democrats want.

The main bill, Click to add MIRS Bill Hound HB 4298 -- which includes the electric choice restrictions and creates a new administrative process between utilities and state officials in establishing how much power will come from renewables -- moved 18-7 with a majority of Republican and Democratic members supporting it.

Click to add MIRS Bill Hound HB 4297, which deals with renewable energy and energy efficiency programs, moved, 21-3. And Click to add MIRS Bill Hound HB 4575, which creates the 13-member commission charged with looking into the costs of stringing a high-voltage power line across the Straits of Mackinac to improve electric reliability in the Upper Peninsula, moved to the floor 19-4.

In order to get the needed "yes" votes, however, House Energy Committee Chair Aric NESBITT (R-Lawton) had to compromise beyond his original concession of stepping back from his desire to eliminate Michigan's electric choice market.

House Minority Leader Tim GREIMEL (D-Auburn Hills) and House Minority Floor Leader Sam SINGH (D-East Lansing) made occasional visits to the 5th floor committee room to organize the changes Democrats wanted in exchange for their support.

One change was sweetening the pot for utility companies to expand their energy efficiency programs by offering extra incentives and allowing them to pass along more program costs to their customers.

Democrats didn't get an expansion to the state's current 10-percent-by-2015 renewable portfolio standard, but they did get a goal similar to what Gov. Rick SNYDER wanted, which is that 30 percent of Michigan energy comes from renewable sources and by cutting down on so called "energy waste" by 2030.

While a Democrat's name wasn't attached to it, Rep. Holly HUGHES (R-Montague) received overwhelming bipartisan support for her amendment that eliminates the burning of "hazardous waste," pet coke, coal ash and tires as a renewable energy source.

Hughes also won another amendment that an energy efficiency program option is available for schools and that utilities must reimburse those who take advantage of it.

The other major change made today was the nearly unanimous adoption of a Rep. Ed MCBROOM (R-Vulcan) amendment to expand the Michigan Public Service Commission from three members to five. McBroom envisions the panel being made up of no more than two members of a political party, creating a likely situation where it would be made up of two Republicans, two Democrats and an independent.

Nesbitt indicated to reporters after today's hearing that changes may be on the horizon for that particular amendment.

"I think there are going to be some continued questions on that," he said.

Nesbitt, also the House Majority Floor Leader, said he wants to see energy reform move to the Governor's desk by year's end since utilities are ready to "make some major investments" and these bills set a groundwork for utilities to make them.

"We need to make sure the lights stay on and we have long-term predictable, adaptable clean energy policy for the future," Nesbitt said.

However, he conceded to take up the bills next week on the floor may not happen as legislators work through the legislation. After next week, the Legislature takes its two-week hunting/Thanksgiving break, meaning session won't return until Dec. 1.

The most contentious topic today continued to be the state of alternative energy suppliers (AES) in Michigan. Rep. Gary GLENN (R-Midland) sponsored amendments that offered schools unlimited access to the electric choice market, allowed for competitive bidding on electric generation projects and eliminating a 15-to 20-year ban on when a former AES customer could leave an incumbent utility for another AES supplier.

None received more than seven yes votes from the 25-member committee.

Glenn and Nesbitt clashed openly during the committee about the perceived speed with which the Chair was moving through a version of legislation that members had not fully reviewed.

Glenn told reporters that members told him they didn't know what they were voting on this evening. He feels members were "under significant pressure" by the aggressive timetable of having to vote on something they had only received 48 hours ago (See "House Energy Package Readies For Amendments," 11/4/15).

"I had someone say, 'Do you understand what you just did? And I said, 'No.' That's a major source of frustration," Glenn said. "I don't even claim to understand every paragraph that was offered before us and I believe I've been pretty studious on this issue."

Nesbitt countered that the committee let 125 people testify on the electricity issue over 28 hours of testimony this year and his bills have been floating around since March.

DTE and Consumers Energy officials expressed support for the bills as they moved out of committee.

"It's a great step toward assuring cleaner, more affordable, reliable energy for Michigan," said Irene DIMITRY, DTE's vice president of planning and development.

Even with the amendments, the bills give the state's two incumbent utilities two major wins -- first, it mandates that AES providers show where they are getting their energy from three to five years into the future and mandates that they start dropping customers if they don't adequately prove to the MPSC that they have it.

Second, it has utilities working with the MPSC on an "integrated resource plan" to plot out how much and where it's getting its renewable energy from as opposed to the type of firm renewable portfolio standard that exists today.

Michigan Chamber of Commerce lobbyist Jim HOLCOMB didn't state whether his association had a position on the bill, but that they continue to follow the process as it moves through the House and, ultimately, Senate.

Rep. Derek MILLER (D-Warren) joined Rep. Scott DIANDA (D-Calumet) in being the two Democrats to vote against the legislation. Dianda questioned the potential costs associated with Click to add MIRS Bill Hound HB 4575. The bill has reads that any costs for this type of line, estimated earlier this year to run $500 million to $1 billion, are spread out to most of Michigan's "retail electric customers."

Miller objected to not being given time to read the bills before voting.

"I feel this is an important piece of legislation and I need to give it thorough look before I vote on it on the floor," he said.

Renewable energy advocates like Larry WARD, executive director of the Michigan Conservative Energy Forum, said today's bills represented "good movement toward advancing clean and renewable energy," but he'd like to see more done to encourage individuals to invest in solar panel or other types of energy generation.

"There is still a lot more work to do," Ward said. "This is not a complete picture."

MLive: Michigan AG Bill Schuette targeted by national PAC for Clean Power Plan lawsuit

Michigan Attorney General Bill Schuette is fighting the federal Clean Power Plan in court, something that will be highlighted as part of a four-state, eight-figure advertising buy from former New York Mayor Michael Bloomberg's Independence USA PAC.

The President Barack Obama administration in August issued a final rule from the Environmental Protection Agency on carbon emissions, sometimes referred to as the Clean Power Plan. While the Gov. Rick Snyder administration is moving toward complying with the plan, Schuette is fighting it as part of a multi-state lawsuit.

Howard Wolfson, senior advisor to the Independence USA PAC, said the eight-figure ad buy targeted Schuette along with attorneys general Pam Bondi of Florida, Chris Koster of Missouri, and Brad Schimel of Wisconsin.

"We will make sure that the voters in these states see these ads many many times and that the ads have an impact," Wolfson said.

Schuette, Bondi and Schimel are Republicans while Koster is a Democrat. Wolfson said the states chosen for ad targeting are politically competitive, neither deeply Republican or Democratic.

The ad against Schuette says he is siding with polluters. In the process, said Lisa Wozniak, executive director of the Michigan League of Conservation Voters, Schuette is working against the interest of Michiganders.

"Attorney General Bill Schuette is not acting in the interest of the citizens and communities he was elected to serve," Wozniak said.

Schuette's office did not immediately respond for comment.

Midwest Energy News: Has wind development in Michigan already peaked?

Michigan's Renewable Portfolio Standard has played a critical role in the development of more than 1,500 megawatts of wind capacity in the state since 2008.

But according to the Michigan Public Service Commission, the amount of new wind contracts may have peaked by 2014 due in part to the standard leveling off at 10 percent by the end of this year, a target utilities are on track to hit.

The trajectory of future wind development from here is anyone’s guess. With a Republican-dominated legislature and executive office, politically it's almost a foregone conclusion that a majority of lawmakers won't mandate additional renewable generation.

While major utilities and leading Republican lawmakers say additional renewables will come as a result of integrated resource planning, complying with the federal Clean Power Plan and declining costs, clean-energy advocates say none of those provide certainty the way standards do.

Advocates point to nuances they say stack the deck against opting for renewables and in favor of natural gas.

“All things being equal, incumbent utilities are really disinclined to build wind because, frankly, it’s much more difficult to do here,” said Stanley “Skip” Pruss, principal and co-founder of Lansing-based 5 Lakes Energy. “All things being equal, their preference would be to build conventional central base plants.”

Pruss formerly served as Michigan’s chief energy officer and director of the state Department of Energy, Labor and Economic Growth under former Gov. Jennifer Granholm.

On-shore wind is the primary resource utilities have used to meet the 10 percent standard.

Pruss said Michigan is already a “difficult environment” for wind companies that “have to aggregate lots of small parcels of property, lease them all out and observe the setback requirements they don't have to do in the Great Plains.”

In turn, utilities have to “administer and manage a ton of contracts with land holders,” contributing to the disincentive to go with wind here, he said.

An added pressure, Pruss noted, is a utility-backed media campaign warning about a capacity shortfall and reliability issues in the state, which suggests utilities building new base-load natural gas plants will be the solution.

Backers of that campaign led by Citizens for Michigan’s Energy Future say they promote an “all-of-the-above” approach that supports both renewables and natural gas.

A DTE Energy official says the utility will pursue more renewables “regardless of whether a new state mandate exists.”

“The previous mandate was helpful in getting renewable energy started in Michigan, but costs have come down and federal regulations are now in place that would make a new state mandate redundant and perhaps even more costly for customers,” said David Harwood, DTE’s director of renewable energy.

He added that more renewables will be required in the state’s portfolio as leaders develop a State Carbon Implementation Plan to comply with the federal Clean Power Plan. However, the extent of that is unclear.

“Until the state implementation plan is finalized, it is impossible for us to commit to specific future projects or timing,” Harwood said.

Renewables are ‘low-risk’

Michigan’s implementation plan will likely comprise a mix of new natural gas plants, energy efficiency and renewables, based on goals laid out earlier this year by Gov. Rick Snyder.

State lawmakers are simultaneously crafting a new comprehensive energy policy they hope to complete by the end of the year that could influence Michigan’s Clean Power Plan strategy.

In turning away from a more robust renewable standard, Republican lawmakers are pushing for a detailed integrated resource planning process that may be based on incentivizing utilities to make clean energy and efficiency investments. Supporters of the IRP approach also say renewables are close to competing with coal and gas on price.

“The economics certainly is a driver, but in and of itself (would not be sufficient),” Pruss countered. “The utility culture, the complexity of building wind farms and the number of contracts — these are all things that are weighing against building wind absent a mandate.”

Pruss also noted Michigan’s 10 percent cap on electric choice, which limits customers who can participate to 10 percent of a utility’s capacity, is hampering outside investment in renewables.

Major utilities are lobbying lawmakers to eliminate the electric choice entirely, while the main legislation being discussed in Lansing would keep it at 10 percent with tightened restrictions. Other proposals have surfaced but have not gained much traction to deregulate Michigan’s energy system entirely.

Pruss said the choice cap limits the amount of independent developers who could come in and build new renewable projects.

“My sense is there will be fewer projects,” Pruss said.

James Clift, policy director for the Michigan Environmental Council, said it would be beneficial for utilities to make “incremental investments” in renewables as a “low-risk way to proceed.”

“The thing about renewables is you’re buying in fairly small buckets with fairly limited exposure,” he said. “If you get it wrong and it’s a nuclear plant, that mistake costs you billions of dollars. You can’t make those mistakes on the renewables side.”

Clift said he does “worry we are seeing a little slowdown as the standard winds down” and that increasing the standard “is the smart way to go” and sees room for growth.

“Everything we’re seeing now as the price continues to go down, we should continue to take advantage of it,” he said. “The best way to find out (if utilities will invest in renewables) is to put out bids for renewable power. If all of a sudden those bids start to go up, maybe someone can make the point” against renewables.

Wind development has ‘likely peaked’

The Michigan Public Service Commission has reported over the past two years that, as utilities have steadily increased renewable production to meet the state standard by 2015, the number of new contracts approved by the commission have started to fall off.

“Additional future wind development is expected to be limited based on renewable energy plans filed with the Commission,” a report from earlier this year says. “Factors that could impact Michigan’s rate of wind development beyond 2015 include availability of the federal production tax credit and possible changes to Michigan’s renewable energy standard.”

The MPSC does note, however, that more than 1,200 megawatts of wind power are in grid-operator MISO’s “queue” that represent near-term potential in the “definitive planning phase.”

While that figure “surprised” Pruss as being more than he anticipated, the MPSC report notes: “Although the Queue continues to show additional wind development in Michigan, it is likely that, based on the current renewable energy standard, development has peaked.”

Julie Baldwin, renewable energy section manager for the MPSC, said because utilities have met their 10 percent obligation under the renewable standard: “I don’t expect utilities to be issuing requests for proposals for more renewables. I suppose if they receive an unsolicited bid that will be extremely beneficial for ratepayers then the utilities could bring us a contract. But I wouldn’t expect significantly more development because the RPS is full.”

Several projects in the Thumb region of the state — where the highest density of wind development has happened — are scheduled to be operational in 2016, including the 100 MW Apple Blossom and 150 MW Deerfield Wind projects.

Baldwin believes turning to an IRP process “will result in some new renewables, but I don’t know enough about how it will all work to know if it’s enough to keep Michigan going at 1 percent new generation per year.

“That was a pretty amazing growth rate in renewables,” she added, referring to the impact of the 2008 law. “We’ve certainly showed that our state can do it and renewables have value and are not as expensive as everyone thought they’d be pre-2008.”

Gongwer: PSC Eliminates DTE Electric's Renewable Energy Surcharge

As has been the case with numerous other utilities that had imposed a surcharge upon their customers to pay for their renewable energy investments as mandated by the 2008 energy law, the Public Service Commission on Thursday approved a settlement agreement amending DTE Electric Company's renewable energy plan to eliminate the utility's energy surcharge of 43 cents per meter per month, effective January 1, 2016.

"The falling cost of wind-generated energy has prompted DTE to eliminate its renewable energy surcharge," PSC Chair John Quackenbush said in a statement about the settlement (case U-17793). "DTE joins Consumers Energy, which eliminated the renewable energy surcharge last year. More Michigan customers will see the tangible benefits of lower renewable energy costs on their bills."

In a separate case, the PSC approved a settlement agreement reconciling DTE Electric Company's 2014 energy optimization plan expenses, resulting in an increase of 29 cents on the monthly bills of residential customers using 500 kilowatt-hours of electricity a month, effective January 1, 2016 (case U-17832).

CLOVERLAND ELECTRIC BECOMES MEMBER-REGULATED: The PSC also directed Cloverland Electric Cooperative to make certain filings and to meet with PSC staff as it transitions to a member-regulated cooperative effective January 19, 2016. It will become the eighth electric cooperative to do so since the new law became effective, the PSC said (case U-17971).

INDIANA MICHIGAN POWER COMPANY DECREASE: The PSC also approved a settlement agreement reconciling Indiana Michigan Power Company's 2014 energy optimization plan expenses, resulting in a decrease of 21 cents on the monthly bills of residential customers using 500 kilowatt-hours of electricity effective with the next billing cycle (case U-17833).

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Ian Tran
Advocacy Chair, USGBC MI
Principal Strategist - Sustainability, Operations, and Education
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