Cecily Zamora
In November 2023, Michigan Governor Gretchen Whitmer signed the Clean Energy and Jobs Act into law, making Michigan a national leader in clean energy. The Act includes Public Acts 229, 231, 233, 234, and 235, which aim to reduce carbon emissions, increase renewable energy generation, and boost energy efficiency. The Act also establishes a clean energy standard of 80% by 2035 and 100% by 2040, with a renewable energy standard of 50% by 2030 and 60% by 2035. These laws are a significant departure from Michigan's previous Renewable Energy Standard requirement of just 15% by 2021 and send a strong signal that Michigan is committed to a sustainable and clean energy future.
| Characteristics | Values |
|---|---|
| Renewable Energy Standard | 50% by 2030, 60% by 2035, and 100% by 2040 |
| Energy Storage Target | 2,500 MW |
| Clean Energy Standard | 80% by 2035, 100% by 2040 |
| Energy Waste Reduction | Increase in electric efficiency standards from 1% to 1.5%, increase in natural gas efficiency standards from 0.75% to 0.875% by 2026 |
| Energy Storage Projects | A statewide process to permit solar, wind, and battery projects |
| Energy Efficiency | Building electrification programs, low-income energy efficiency spending requirement, health and safety measures for low-income programs |
| Energy Jobs | 160,000 jobs |
| Energy Costs | Lower household utility costs by an average of $145 a year |
| Energy Equity | Requires MPSC to consider climate, equity, and affordability in decision-making, increased funding for attorney general intervention and utility customer representation |
| Energy and Climate Action | Signed by Governor Whitmer in November 2023 |
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What You'll Learn
The Clean Energy and Jobs Act
The Act requires the Michigan Public Service Commission (MPSC) to prioritize environmental quality, public health, and equity in utility companies' long-term energy plans. This includes expanding access to energy efficiency programs like rooftop solar, with dedicated spending in low-income communities, and authorizing the MPSC to regulate big energy utility companies on a broader array of issues impacting residents. The MPSC will also be required to consider the impact of energy policy and utility companies' plans on environmental justice and public health, with increased funding available for attorney general intervention and utility customer representation.
The legislation is expected to lower household utility costs, create tens of thousands of good-paying jobs, and protect Michigan's air, water, and public health. It delivers on the proposals in Governor Whitmer's MI Healthy Climate Plan and makes Michigan the best state in the Midwest for climate action and labour standards for clean energy production.
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Renewable energy standard
The Clean Energy and Jobs Act, passed in November 2023, is a significant step forward for Michigan's energy policy. The Act expands Michigan's Renewable Energy Standard, aiming for 50% renewable energy by 2030 and 60% by 2035. This is a substantial increase from the previous target of just 15% by 2021.
Public Act 235, part of the Clean Energy and Jobs Act, establishes this new renewable energy standard. It also sets a clean energy standard of 80% by 2035 and 100% by 2040. This means that by 2040, all of Michigan's energy will come from clean sources. The Act also includes a statewide energy storage target of 2,500 MW. Investor-Owned Utilities (IOUs) will need to file annual storage reports starting in December 2024, and all electric providers must file plans by February 2025 detailing how they will meet the renewable energy standard.
The Clean Energy and Jobs Act will allow for more large-scale renewable energy projects in Michigan, streamlining the approval process for projects such as solar, wind, and battery initiatives. This will help Michigan become energy independent and create union jobs for state residents. The Act also increases the limit on rooftop solar energy generation from 1% to 10% of a utility's energy supply, encouraging more Michiganders to adopt clean energy sources.
The Clean Energy and Jobs Act has important implications for utility companies as well. It requires the Michigan Public Service Commission (MPSC) to prioritize environmental quality, public health, and equity in utility companies' long-term energy plans. This means that utility companies will be held accountable for their impact on the environment and public health, and must increase their energy storage capabilities. The Act also increases electric efficiency standards for energy waste reduction and natural gas efficiency.
Overall, the Clean Energy and Jobs Act is a significant departure from Michigan's previous energy laws, setting ambitious targets for renewable and clean energy and boosting energy efficiency. It is an important step towards a cleaner, more sustainable energy future for the state.
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Energy storage targets
Michigan's Clean Energy and Jobs Act, passed in November 2023, sets ambitious targets for renewable energy generation and energy storage.
Public Act 235 establishes a statewide energy storage target of 2,500 MW. Investor-Owned Utilities (IOUs) are required to begin filing annual storage reports no later than December 31, 2024, and by December 31, 2029, they must file petitions for approvals related to the storage target. Alternative Electric Suppliers will also need to file plans by this date, outlining how they will comply with the target.
The Act also establishes a clean energy standard of 80% by 2035 and 100% by 2040. This includes a renewable energy standard of 50% by 2030 and 60% by 2035. The 100% clean energy target for 2040 will be achieved through a combination of renewable energy sources and clean energy systems.
The Clean Energy and Jobs Act will allow for more large-scale renewable energy projects in Michigan, including solar, wind, and battery projects. It streamlines the approval process for these projects, which is critical to the success of clean energy, and will improve reliability as the impacts of the climate crisis become more pronounced.
The Act also increases Michigan's limit on the number of residents who can generate their own clean energy from rooftop solar. This limit has been raised from 1% to 10% of a utility's energy supply, and the maximum size of solar projects has been increased from 150 kilowatts (kW) to 550 kW. This encourages more Michiganders to save money through energy efficiency and electrification.
Through a competitive bidding process, utility companies will be required to increase their energy storage beyond their current goals. DTE, for example, had committed to 780 mW by 2035, while Consumers had committed to 550 mW by 2024. The Act also increases electric efficiency standards from 1% to 1.5% for electricity energy waste reduction, and natural gas efficiency standards from 0.75% to 0.875% for gas energy waste reduction by 2026.
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Lowering utility costs
The Clean Energy and Jobs Act, passed in November 2023, is expected to lower household utility costs in Michigan. The Act will increase energy efficiency and reduce energy waste, helping to lower energy bills for residents.
The Act raises the limit on the number of Michiganders who can generate their own clean energy from rooftop solar. The previous limit was 1% of a utility's energy supply, but the Act increases this to 10%. This will allow more people to take advantage of solar energy and potentially lower their utility costs.
Additionally, the Act requires utilities to increase their energy storage capacity. This will improve the reliability of clean energy sources and reduce the need for more expensive and less environmentally friendly backup power sources. This increased energy storage will also contribute to lower utility costs for residents.
The Clean Energy and Jobs Act also prioritizes environmental quality, public health, and equity in utility companies' long-term energy plans. This means that utility companies will be held accountable for their energy plans' impact on the environment and public health, and they will be required to consider climate, equity, and affordability in their decision-making. This focus on equity and affordability is expected to help lower utility costs for all Michiganders, especially those in low-income communities.
Furthermore, the Act includes requirements for more public engagement and participation, particularly in low-income and environmental justice communities. This ensures that local voices are heard and that all Michiganders benefit from the state's clean energy future. The increased public engagement will also help to identify areas where utility costs can be lowered through energy efficiency and waste reduction measures.
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Public engagement
The Clean Energy and Jobs Act, passed in November 2023, has been praised for its potential to create tens of thousands of jobs, lower household utility costs, and protect Michigan's air, water, and public health.
The Act includes requirements for more public engagement and participation, particularly in low-income and environmental justice communities. This is to ensure that more Michiganders have a say in energy policy. Before the Act, Michigan did not have any laws to help state regulators prioritize environmental justice or public health in decision-making.
The Michigan Public Service Commission (MPSC) must now prioritize environmental quality, public health, and equity in utility companies' long-term energy plans. This means that the MPSC will be required to consider the impact of energy policy and utility companies' plans on environmental justice, public health, and the health of the environment.
The MPSC will also need to consider climate, equity, and affordability as part of its Integrated Resource Plan (IRP) cases, where utilities set their long-term power generation plans. This will ensure that local voices are heard and that Michiganders come first in the transition to clean energy.
Public Act 231 directs the Commission to open a proceeding to consider opportunities to expand engagement in the Commission's decision-making processes and procedures. This proceeding must be commenced by June 1, 2024.
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Frequently asked questions
The Clean Energy and Jobs Act, passed in November 2023, is Michigan's first major energy law.
The Clean Energy and Jobs Act is a law that requires the Michigan Public Service Commission (MPSC) to prioritize environmental quality, public health, and equity in utility companies' long-term energy plans.
The Act sets ambitious targets for renewable energy generation, aiming for 50% by 2030 and 60% by 2035. It also establishes a clean energy standard of 80% by 2035 and 100% by 2040.
The Act is expected to lower household utility costs, create tens of thousands of well-paying jobs, and protect Michigan's natural resources and public health. It also increases energy efficiency standards and incentivizes the development of clean energy projects.
