Energy Waste Reduction Programs and Plans
On December 16, 2016, Public Act 342 was signed into law. This Act, known as the Clean and Renewable Energy and Energy Waste Reduction Act, amends Michigan’s 2008 energy law, Act 295.
Public Acts 341 and 342 of 2016 updated portions of the gas and electric provider energy efficiency programs (formerly known as energy optimization programs and now referred to as energy waste reduction programs) and created new requirements. For large electric and gas providers, the law requires continued annual energy savings through 2021 of 1% for electric providers and 0.75% for gas providers, of their prior year total annual retail sales.
In addition, the law revises the allowed financial incentive mechanism, and revises requirements for smaller electric and gas providers.
The program changes will be effective April 20, 2017 and in some cases will impact existing provider programs for 2017, requiring plan amendments for 2017.