Title
Resolution Concerning Michigan’s Energy Policy and Current State Legislation Under Consideration
Memo
At its October 13, 2015 meeting, the Ann Arbor Energy Commission passed a resolution for City Council’s consideration. The resolution offers commentary and positions on a series of legislative bills proposed in the Michigan Senate and House of Representatives. Attached is a recent summary of the bills made available by the State of Michigan that is also downloadable at: <https://www.michigan.gov/documents/mpsc/Synopsis_of_Michigan_Renewable_Energy_Legislation_-_March_2013_413610_7.pdf>.
Action on legislation is thought to be imminent or at least taken by years’ end. These bills (from both the majority and minority parties and both chambers) impact the portion of renewable energy supplies required of utilities in the future, possible limiting or rescinding of current requirements, or alternatively increasing them; inhibit current ways of recouping solar and other small-scale renewable electricity supplied (“net-metered”) to the grid and the compensation to those supplying it, redefine renewable energy sources, and address the competitive marketplace through changes to customer energy choice programs. Other changes in the varied legislation generally impact the direction for energy supply in the state, last addressed through passage of Public Act 295 of 2008, provisions of which sunset in 2015. Primarily, without new legislative directives, there is lack of clarity on how utilities will continue to incentivize energy efficiency and whether Michigan’s 10% renewable portfolio standard (RPS) will be expanded. The Energy Commission believes many of the bills if passed in their current form would have a negative impact on the City’s ability to reach climate and energy goals set forth in the Climate Action Plan.
While not delineating specific recipients in the resolution, the following are the majority and minority leaders of each chamber to whom a transmission could be directed, as well as the Governor’s Office. Additional others in the capitol could be identified with assistance from the City Administrator’s Office:
Speaker of the House Kevin Cotter
House Minority Leader Tim Greimel
Senate Majority Leader Arlan Meekhof
Senate Minority Leader Jim Ananich
Governor Rick Snyder
Body
Whereas, The City of Ann Arbor recognizes the serious threat that climate change poses to the local environment, to our economy and to our residents’ long-term security, livelihoods, and quality of life;
Whereas, On December 17, 2012, the Ann Arbor City Council adopted the Ann Arbor Climate Action Plan which identifies steps to reduce greenhouse gas (GHG) emissions to meet current short-term goals, and to set mid- and long-range targets for emissions reductions into the future;
Whereas, Several findings within the last year have pointed to evidence that the deleterious effects of GHG emissions are increasing at a more rapid rate than previously acknowledged, making rapid action on GHG emission reductions even more imperative;
Whereas, The submission of IRPs (Integrated Resource Plans) by the utilities for many years prior to the enactment of Act 295 did not produce measurable use of renewable energies;
Whereas, The Renewable Portfolio Standard (RPS) enacted as Act 295 in 2009 moved Michigan to a more stable energy system by incorporating 10% renewable energies;
Whereas, The ability of the City of Ann Arbor to meet our climate and energy goals is highly dependent on the State of Michigan’s energy policies;
Whereas, The State Legislature is presently or recently considering HB 4171, HB 4297, HB 4308, HB 4518, HB 4519, HB 4055, HB 4878, HB 4880, HB 4881, SB 0295, SB 0297, and SB 0438, among several bills all pertaining to Renewable Energy and related issues; and
Whereas, The Ann Arbor Energy Commission passed a resolution on October 13, 2015, urging the City Council to express its support for state legislation to promote renewable energy in the State of Michigan;
RESOLVED, That the Ann Arbor City Council supports the continuance and expansion of energy efficiency and conservation as well as renewable energy programs at the state level;
RESOLVED, The Ann Arbor City Council opposes efforts to weaken or remove the state of Michigan’s current Renewable Energy Standard and Energy Optimization Program;
RESOLVED, The Ann Arbor City Council supports the expansion of the Energy Optimization Program, net metering to include virtual net metering (the ability to net meter from a large array in one location to meter(s) at another location within the utility area);
RESOLVED, That the Ann Arbor City Council supports the increase of the Renewable Energy Standard to as close to 30% as possible and no less than 15% by 2030; and
RESOLVED, That the City Administrator is directed to cause a certified copy of this resolution to be delivered to the Washtenaw County delegation as well as Speaker of the House Kevin Cotter, House Minority Leader Tim Greimel, Senate Majority Leader Arlan Meekhof, Senate Minority Leader Jim Ananich, and Governor Rick Snyder.
Sponsored by: Mayor Taylor and Council Members Briere, Grand, Smith and Warpehoski