Mich. pushes to increase use of renewable energy

The Michigan Senate unanimously approved a state renewable portfolio standard Thursday, which would require state facilities to purchase 25 percent of its energy from renewable sources by 2025.

Several legislators and experts said such a measure could expand to consumer purchases of renewable energy.

All renewable energy purchased cannot exceed 5 percent of the market price for nonrenewable energy under the legislation.

The bill, which will go to the state House of Representatives, was accompanied by legislation that offers an income tax credit of up to $200 for residents using renewable energy beginning in 2009. The state is estimated to lose more than $4 million in tax revenues if the tax credit legislation is enacted.

The Michigan House of Representatives returns from a legislative recess April 7.

Although Liz Boyd, spokeswoman for Gov. Jennifer Granholm, said the renewable portfolio standard — which also requires 3 percent by 2009, 10 percent by 2010 and 20 percent by 2020 — points Michigan in the right direction, she said there is still work to be done.

“Certainly it’s a first step in moving toward a (renewable portfolio standard) for the state of Michigan, but it is a first step,” Boyd said.

Sen. Patty Birkholz, R-Saugatuck Township, who introduced the renewable portfolio standard legislation, said she designed the bill so the state could signal to residents and renewable energy companies that it is committed to such a project.

“It’s the foundation of really having an aggressive program to bring renewables to Michigan,” she said.

Mark Nixon, spokesman for the Lansing Board of Water & Light, said despite his company being the first in Michigan to adopt its own portfolio standard, the state’s standard is “unfeasible.”

The Lansing Board of Water & Light plans to produce 7 percent of its electricity from renewable sources by 2016, but Nixon said it will be difficult for utility companies to produce 10 percent by 2010.

“I don’t think it’s practical,” Nixon said.

“That’s a pretty short turnaround for us. That would be pretty tough.”

What would be even more challenging, Nixon said, is if the House of Representatives passes a proposed energy package that would require 10 percent of consumer electricity purchased by 2015 to be clean energy.

Rep. Jeff Mayes, D-Bay City, introduced part of the package and said it is expected to pass in the House in April.

Although Nixon said meeting Mayes’ proposal requirements wouldn’t be easy, David Gard, energy program director of the Michigan Environmental Council, said it would have a positive economic effect.

“I think it (would bring jobs) based on what I’ve heard from experts from the private sector talking about,” Gard said.

Published on Thursday, March 27, 2008