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2023 Energy Legislation

Public Acts 229, 231, 233, 234, and 235 were passed on November 8, 2023 and signed by Governor Gretchen Whitmer on November 28, 2023. These new laws make changes to requirements related to Integrated Resource Plans, establish a clean energy standard, increase the Renewable Energy and Energy Waste Reduction standards, and create a voluntary siting process at the Commission for renewable energy and energy storage projects of statewide significance. 

 

Public Act 229, which addresses the energy waste reduction standard, and Public Act 231, which makes changes to the Integrated Resource Planning Process, are effective February 13, 2024. 

 

Public Act 235, which establishes the new clean energy standard and updates the renewable energy standard is effective February 27, 2024. 

 

Public Act 233, which creates the siting process for renewable energy and energy storage projects at the Commission, is effective November 29, 2024. 

 

Taken as a whole, these four public acts impact five key work areas at the Commission and direct the Commission to undertake four, one-time tasks. Below, you’ll find general information on each of these work areas and one-time tasks.  As work on implementation begins in earnest, additional information regarding implementation and opportunities for involvement will be posted here. 

 

Clean Energy Standard and Integrated Resource Plans 

Integrated Resource Planning Process 

Public Act 231 includes several updates to the IRP Statute including updates to the planning parameters, plan filing requirements, and considerations    the Commission must review in its evaluation of the plan. The planning parameters are also required to be updated in 2025. 

Statutory Section: MCL 460.6t

Status: In Process

Lead Staff: Naomi Simpson

 

Clean Energy Standard

Public Act 235 establishes a clean energy standard of 80% by 2035 and 100% by 2040. Electric providers will need to file plans with the Commission    beginning no later than 2028.  The Commission will need to establish formats and guidelines for the Clean Energy Plans by January 1, 2026. 

Statutory Section: MCL 460.1051, 1191

Status: In Process

Lead: Naomi Simpson

 

Statewide Energy Storage Target

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 Dec. 31, 2024.  By Dec. 31, 2029, IOUs will need to file petitions for approvals related to the storage target and Alternative Electric Suppliers will need to file plans for how they will comply with the target. 

Statutory Section: MCL 460.1101

Status: In Process

Lead Staff: Naomi Simpson

 

Renewable Energy Standards and Plans

Public Act 235 establishes a renewable energy standard of 50% by 2030 and 60% by 2035. Electric Providers must file amended renewable energy plans by February 27, 2025, that includes a forecast of resources that will be needed to comply with the standard. 

Statutory Sections: MCL 460.1122, 1128, 1129, 1132, 1139, 1145, 1147, 1149

Status:  In Process

Lead Staff: Jesse Harlow

 

Energy Waste Reduction Standards and Plans

Public Act 229 establishes new Energy Waste Reduction targets for Electric and Natural gas providers and requires the filing of new customer energy optimization plans beginning January 1, 2025, which are to include energy waste reduction plans as well as optional efficient electrification measures plans. By July 1, 2024, the Commission must commence a proceeding to adopt a framework for the updated energy waste reduction programs of the independent program administrator, Efficiency United, and establish an Alternative Compliance Payment. 

Statutory Sections: MCL 460.1071-1099

Status: In Process

Lead Staff: Karen Gould

 

Distributed Generation and Interconnection 

Public Act 235 increases the Distributed Generation program cap from 1% to 10% and makes other changes to utility distributed generation programs including program categories, system size, and meter requirements. These changes necessitate review of interconnection standards and utility programs. 

Statutory Section: MCL 460.1003, 1005, 1173, 1177

Status: In Process

Lead Staff: Julie Baldwin

 

Renewable Energy and Energy Storage Facility Siting

Public Act 233 creates a voluntary siting process at the Commission for Renewable Energy and Energy Storage facilities of statewide significance. 

Statutory Section: MCL 460.1221 – 460.1232 

Status: In Process 

Lead Staff: Cathy Cole

 

One-Time Projects 

The 2023 Energy Laws includes three one-time proceedings.  Information regarding these proceedings can be found below. 

UP Energy Study 

PA 235 directs the Commission to prepare a report by Dec. 1, 2024, that examines the unique conditions impacting electric generation, transmission, and electricity demand in the Upper Peninsula with a focus on the UMERC RICE units and electric demand attributable to mining activities.  The report must also identify options for reducing the carbon intensity of the RICE units and feasibility of deploying clean energy systems. 

Statutory Section: MCL 460.1051(5)

Status: In Process

Lead Staff: Naomi Simpson

 

Exploring opportunities to improve Commission Accessibility

PA 231 directs the Commission to open a proceeding to consider opportunities to expand opportunities for engagement in the Commission’s decision making processes and procedures. The proceeding must be commenced by June 1, 2024. 

Statutory Section: MCL 460.6aa

Status: Not Yet Started

Lead Staff:

 

Exploring opportunities to improve the Rate Case Process 

PA 231 directs the Commission to open a proceeding to consider opportunities for improving the process by which it reviews rate case applications. The proceeding must be commenced by June 1, 2024. 

Statutory Section: MCL 460.6aa

Status: Not Yet Started

Lead Staff:

 

  

Information regarding implementation of the 2016 energy legislation may be found here