Senate Democrats seek 'clean' energy mandates as bill plans revealed

Michigan Senate Democrats announced Wednesday a slate of upcoming policy proposals aimed at reducing carbon emissions in Michigan, including a mandate for 100% "clean energy standard" by 2035.

The package, called the Clean Energy Future Plan, takes aim at coal-powered energy plants, energy waste, solar siting issues and transportation emissions, and would grant more power to the Michigan Public Service Commission to consider the environment, equity and public health when evaluating utilities’ plans.

"It allows protection of our residents, protection of our rates and then it allows for us to tackle a very difficult issue, climate," said Sen. Sam Singh, D-East Lansing.

One of the proposals includes phasing out coal-fired electricity generation by 2030, requiring utilities to move toward eliminating greenhouse gas emissions from power generation by 2035 and developing a 100% clean energy standard by 2035.

The 2035 clean energy standard and 2030 phase-out of coal would be a mandate, not goal.

"We'd like that to be a mandate," Singh said. "We do believe it's time for us to be moving beyond just goals."

Nuclear energy will be included as a "clean energy" source that could satisfy that mandate, along with sources like wind and solar, Singh's Chief of Staff Molly Korn said in an email.

That could affect the future of a decommissioned nuclear plant on Michigan's west coast. Holtec International is pursuing plans to restart operations at Palisades Power Plant in Covert Township, which was shut down before Holtec purchased it last year.

Details of the bills were not available at the announcement Wednesday. The bills had not been introduced as of Wednesday afternoon.

The bill package is in line with the MI Healthy Climate Plan that Gov. Gretchen Whitmer's administration released last year. The plan lays out strategies for meeting carbon neutrality goals Whitmer announced in 2020, which include reducing Michigan’s carbon emissions 28% by 2025, 52% by 2030 and achieving carbon neutrality by 2050.

To get there, the plan called for adopting strategies such as cleaning the electric grid, increasing public transit and electric vehicle use, improving energy efficiency and more.

The bills Senate Democrats introduced Wednesday echo the proposals in the state climate plan, such as phasing out coal-powered electricity generation by 2030.

Specifically, the bills would :

• Increase the energy waste reduction target required for electric utilities from 1% to 2% annually and require municipal and cooperative electric utilities to meet an energy waste reduction target.
• Allow the Public Service Commission to evaluate climate, health, equity and affordability in the approval of regulated utility companies’ Integrated Resource Plans. 
• Codify the Michigan Department of Agriculture and Rural Development plan that allows farmers to rent their land for solar operations while keeping that land in the farmland preservation program under Public Act 116.
• Adopt a clean fuels standard to reduce the carbon intensity of transportation fuels 25% by the end of 2035. 
• Develop a Michigan Construction Decarbonization Strategic Plan to support a goal of reducing emissions from heating homes and businesses 17% by 2030.

Sen. Sue Shink, D-Northfield Township, said expanding the purview of the MPSC to allow it to consider climate, health, equity and affordability when overseeing utility companies like DTE Energy and Consumers Energy gives residents who weigh in on rate cases more opportunity to voice their concerns about emissions and rate prices.

"Now when they talk about climate change and the effects of power generation on climate change, those details will be considered in setting the rates, and also in determining how the power will be produced," Shink said. "When our electricity generation results in the release of carbon, it increases the likelihood of catastrophic storms including ice storms."

Warming temperatures mean the atmosphere can hold more water, which increases the likelihood and power of major storms like those that caused widespread power outages this winter. A partnership of federal and university scientists in Michigan have found the amount of precipitation falling in the heaviest 1% of storms increased 35% from 1951-2017 in the Great Lakes region as air temperatures warmed an average of 2.3 degrees Fahrenheit.

Advocates have been pushing for the Legislature to expand MPSC's authority to regulate utilities' impacts on climate, health, affordability and equity, said Derrell Slaughter, Michigan Clean Energy advocate for the Natural Resources Defense Council.

"To actually have that in statute to consider that as part of their decision-making I think is huge," Slaughter said.

Slaughter said the Natural Resources Defense Council supports the Clean Energy Future Plan, but he will review the details when the bill language is available. He wants to see specific programs that will support renewable energy and energy efficiency in low-income communities.

"We want to make sure that transition is equitable, and all folks are able to take part in that clean energy transition," he said.

Senate Democrats said Wednesday they also are developing bills that would promote the purchase and use of electric vehicles and make energy more affordable.

"It is past due that we take action to address climate change and invest in the resources needed to make Michigan a leader in environmental resiliency and sustainability,” Singh said. “Creating energy efficiency standards and working to reduce carbon emissions and utility costs for residents will make a significant economic impact."

Staff Writer Craig Mauger contributed.

ckthompson@detroitnews.com