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Showing posts with label net metering. Show all posts
Showing posts with label net metering. Show all posts
Sunday, December 4, 2016
Thursday, December 3, 2015
Position Statement on Energy Policy
Sierra Club Michigan Chapter Position Statement
Energy PolicySierra Club encourages lawmakers to expand Michigan’s renewable energy and efficiency programs, and more specifically:
- Increase Michigan's renewable energy standard to 30% by 2030.
- Increase Michigan's energy efficiency/optimization standard from 1% to 2% annually.
- Remove the existing spending cap on Michigan's energy efficiency program.
- Ensure that "clean" or "renewable" energy is not redefined to include any fossil fuels, nuclear energy, or energy from incinerating wastes.
- Ensure that customers are able to produce their own energy and are allowed to either use that energy themselves or sell it back to a utility company at full price, not a wholesale price.
- Enable everyone to participate in community renewable energy projects.
Issue Background
In 2008, the Michigan Legislature passed the Clean, Renewable, and Efficient Energy Act (PA 295). The law put in place a Renewable Energy Standard (RES) that requires Michigan’s utility companies to obtain 10% of their electricity from clean and renewable sources by 2015. The law also created an energy efficiency program, which is funded through a small fee on all ratepayers’ energy bills to help homeowners and businesses make their homes and offices more energy efficient.
PA295 has been an unparalleled success. All major utilities have met the 10% renewable energy standard and have reduced/eliminated surcharges to pay for it. While the costs of coal and nuclear energy range from $108-133 per megawatt/hour, wind contracts cost between $43-59 per megawatt/hour, which is cheaper than natural gas at $67 per MWh. The Michigan Public Service Commission’s 2013 report on renewables states that Michigan can achieve a 30% renewable energy standard (RES) without technical difficulties or increased costs. PA 295 defined renewable energy to include solar, wind, hydroelectric, biomass, geothermal, and landfill gas.
Michigan’s energy efficiency standard of 1% annual savings
has also been successful. For every $1 invested in our energy efficiency program, ratepayers have saved $4.38. Energy efficiency is the most cost-effective way to reduce spending on electricity, costing $11 per MWh, cheaper than any form of new generation. The 2008 law also set a cap on how much utilities could spend on energy efficiency.Sierra Club Perspective
Fossil fuels create $523 billion of domestic public health and environmental costs annually and receive over $500 billion in annual subsidies from our government. The Legislature should increase Michigan’s RES to 30% by 2030 and increase its efficiency standard to 2% annually. This would combat subsidies/costs and promote meaningful progress in climate disaster mitigation. The legislature should also ensure that customers are able to produce their own energy and sell it at full price.
Michigan currently spends $24 billion per year importing fuel into the state. 100% of our fuel for coal and nuclear power comes from out-of-state, 99% of our petroleum and 80% of our natural gas as well. Solar, wind and energy efficiency have no fuel costs and don’t send our money out of state.
The Sierra Club opposes proposals to gut the definition of renewable/clean energy. Fossil fuels, nuclear energy, waste incineration, and pumped storage are not renewable energy sources. Energy sources that emit air pollution (including the greenhouse gases carbon dioxide and methane), water pollution, and produce radioactive waste should not be considered “clean energy” in Michigan’s laws.
Current Legislation on Clean Energy in Michigan
There is currently no legislation introduced to establish a 30% Renewable Energy Standard annual increase.
Sierra Club Supports the Following Bills
Powering Michigan’s Future legislation SB 295-297 and HB 4518-4519, HB 4055: increase Michigan’s renewable energy standard to 20% by 2022, gradually increase the energy optimization standard until reaching 2% annually in 2019 for electricity and 1.5% for natural gas, and eliminate the renewable energy surcharge.
Bill sponsors: Hoon-Yung Hopgood, David Knezek, Sam Singh, Marcia Hovey-Wright, Julie Plawecki.
Bipartisan Energy Freedom legislation HB 4878-4881: remove barriers for businesses and individuals to generate their own energy and receive fair-value pricing. Enable community energy projects.
Bill sponsors: Gary Glenn, Ed McBroom, Scott Dianda, Jeff Irwin
HB 4304 (Jason Sheppard): prevent natural gas utilities from raising rates to pay for fines and penalties. This bill is a positive step toward establishing stricter accountability for utility companies when they fail to comply with the law.
HB 4683 (Scott Dianda): require the Michigan Public Service Commission to adopt integrated resource plans for regions of the state. This is designed to make energy distribution in the Upper Peninsula cheaper, cleaner and more reliable.
Sierra Club Opposes the Following Bills
SB 437-438 (Mike Nofs, John Proos): sunset Michigan’s Energy Optimization standard in 2019, repeal Michigan’s Renewable Energy Standard, establish a definition for “clean energy” that includes polluting fossil fuels, implement a voluntary green pricing program, eliminate net metering, destroy the distributed energy market, and replace standards with an Integrated Resource Planning process.
HB 4297-4298 (Aric Nesbitt): replace renewable energy/efficiency mandates with an Integrated Resource Planning process, establish an unenforceable 30% renewable/efficiency goal, and remove sustainability criteria for wood/tree biomass.
SB 465 (Mike Shirkey): require the legislature to review Michigan’s State Implementation Plan (SIP) for the federal Clean Power Plan and give them the power to disapprove it. It would also prevent a SIP from being submitted if there is pending litigation against the Clean Power Plan. This will handcuff our ability to comply with the Clean Power Plan, slow down our implementation, and lessen our ability to mitigate climate change.
HB 4303 (Brett Roberts): allow natural gas utilities to expand their infrastructure with Michigan Public Service Commission oversight/review and use ratepayer money to pay for it. This ratepayer money should instead be spent on repairing/replacing old natural gas pipelines, distributed generation, community renewable projects, or energy efficiency.
HB 4066 (Ray Franz): completely ban offshore wind deeds, leases, or permits in the Great Lakes.
HB 4308 (Ray Franz): repeal Michigan’s current Renewable Energy Standard.
Sunday, November 15, 2015
Tuesday, August 25, 2015
Sierra Club Submits Testimony Opposing SB 438: Destructive Energy Legislation
The Sierra Club Michigan Chapter submitted the following testimony to the Senate Energy and Technology Committee in response to Senate Bill 438 on Tuesday, August 25.
August 25, 2015
To: Chairman Nofs and members of the Senate Energy and Technology Committee
RE: Senate Bill 438
August 25, 2015
To: Chairman Nofs and members of the Senate Energy and Technology Committee
RE: Senate Bill 438
On behalf of our 60,000 members and supporters in Michigan, the Sierra Club urges a NO vote on SB 438 (Proos), a bill that would eliminate Michigan’s renewable energy standard, sunset the state’s energy optimization standard, establish a definition for “clean energy resources” that includes polluting fossil fuels, and modify net metering in a way that would discourage distributed generation. Michigan legislators must reject SB 438 because it would undermine Michigan’s progress to date and put our future at risk.
Michigan’s renewable energy and efficiency standards have been unparalleled successes. They’ve created jobs, saved ratepayers money and enhanced economic development, while simultaneously protecting the health of Michigan’s citizens and the Great Lakes by reducing dirty, costly fossil fuels in our energy sector. Now is the time for our elected officials to increase Michigan’s renewable energy standard as both Michigan state agencies and nationally acclaimed energy experts show that our state can dramatically increase its renewable energy and efficiency capacity while boosting our economy and protecting our environment.
Michigan’s renewable energy and efficiency standards have been unparalleled successes. They’ve created jobs, saved ratepayers money and enhanced economic development, while simultaneously protecting the health of Michigan’s citizens and the Great Lakes by reducing dirty, costly fossil fuels in our energy sector. Now is the time for our elected officials to increase Michigan’s renewable energy standard as both Michigan state agencies and nationally acclaimed energy experts show that our state can dramatically increase its renewable energy and efficiency capacity while boosting our economy and protecting our environment.
Energy Waste
Eliminating Michigan’s energy optimization (EO) standard in 2019 is the wrong choice for ratepayers. Energy savings, monetary savings, and greenhouse gas emission savings would all be decreased without an Energy Optimization standard. Integrated Resource Planning should be used in conjunction with a mandated efficiency goal, not instead of it. Investor-owned energy companies have little incentive to sell less energy and reap less profit, but as regulated monopolies they can and should be required to help their customers reduce energy waste.
Eliminating the EO standard contradicts both Governor Snyder’s plan to eliminate energy waste and the outstanding success of the current measure in saving ratepayers money. Michigan residents today save $3.55 for every dollar invested in our current efficiency program, while simultaneously preventing carbon and other pollution. Michigan’s energy efficiency industry is a driving force in our economy that employs more than 46,000 Michiganders, while also averting greenhouse gas emissions. The bill also establishes a cap on how much utility companies can spend on energy waste reduction programs at 2% of total utility retail sales. Waste Reduction is the cheapest way to save ratepayers money and decrease greenhouse gas emissions, so Sierra Club opposes any arbitrary limits or caps.
Definition of Clean Energy
The bill defines “Clean Energy” in a way that allows unsustainable forms of energy such as natural gas, waste incineration, nuclear, and other fossil fuels to be considered clean energy sources. This definition is too broad and weakens the true meaning of Clean Energy. Energy sources that emit air and water pollution, including the greenhouse gases carbon dioxide and methane, and produce radioactive waste should not be considered “clean energy” in Michigan’s laws.
Climate Change
SB 438 is a dangerous proposal that takes Michigan in the wrong direction when it comes to protecting our state from climate disaster. Climate disruption caused by greenhouse gases from human sources is an urgent threat to our everyday lives and our future, and its impact is already being felt in Michigan. Climate disruption is about more than warmer temperatures – it’s about disrupting the basic weather patterns that affect almost everything in our lives - our water supplies, how we grow our food, the kinds of diseases we deal with, and the ability to keep our families safe.
We can already see the effects of climate disruption all across America: unprecedented droughts and wildfires in Western states, record-breaking heat in the Southwest and Midwest, Hurricane Katrina and Superstorm Sandy, extreme winter weather in traditionally warm states, and melting glaciers in Alaska. Extreme weather events are becoming more frequent, harming people, their economic well-being, their health, their homes, and their futures. Right here in Michigan, we’ve seen cherry and apple crops completely devastated due to abnormal and extreme weather patterns exacerbated by climate disruption. The time to fight climate disruption is now, but enacting SB 438 would contribute to more climate disasters.
Sierra Club members call on our elected leaders to combat climate disruption by moving Michigan beyond fossil fuels and towards true clean energy sources like wind, solar, and energy efficiency. According to a Yale study from last year, 61% of Michiganders believe climate change is happening, 76% believe we should regulate carbon pollution, and 60% support increasing our state’s renewable energy standard. The message is clear: Michiganders oppose SB 438 and want more renewable energy and efficiency instead.
Green Pricing Program
The green pricing program established in this legislation is a step in the right direction. However, voluntary programs wane in the long run because utility companies operate under a regulated monopoly with a guaranteed rate of return/profit. Investor-owned energy companies have little incentive to invest in energy sources that protect the planet, because they are guaranteed a profit no matter which sources they utilize. If we can guarantee utility companies a profit, we should also require them to invest in energy sources that protect our air and water instead of unsustainable sources. We need mandates in addition to voluntary programs in order to truly protect Michigan’s environment and ratepayers.
Distributed Generation
The distributed generation portion of this legislation is a step in the wrong direction. Currently, small-scale solar projects in place or being installed on Michigan homes, businesses, and non-profits are able to connect to the grid through Michigan’s net metering program, which has been a huge success. SB 438 would drastically undercut homeowners who are investing in Michigan’s future through renewable energy systems. Under SB 438, those families which invest their own funds in their own private renewable power systems and connect them to the grid to help with power distribution and peak demand, would be mandated to buy all their power at retail rates from the monopoly power company in their area, and meanwhile be forced to sell the electricity they generate at home back to utility companies for less than it is worth. This staggeringly anti-entrepreneurial concept runs contrary to common sense and the best interests of our state. Net metered electricity from solar is normally produced when there is peak demand for electricity. This means solar power generation through net metering actually saves all ratepayers substantial money over time by reducing the need to invest in electric generation plants for peak load, which are the most expensive to build, maintain and run, and drive up the cost of electricity for all ratepayers.
According to the Metropolitan Policy Program at Brookings, between 2003 and 2010, the solar industry was one of the fastest growing segments of Michigan's economy, increasing at a rate of 15.8 percent each year with 121 companies in Michigan and employing 6,300 workers. This bill could kill that economic progress. This bill would discourage investment in solar production by delaying payback periods from 10 years (which most customers get today) to 18-20 years. Ratepayers who are investing in distributed generation already are willing to take on the burdensome costs for net metering, including application fees, metering installation, interconnection, and testing costs, while also requiring pay delivery charges and non-fuel portion of power supply rates. We should not be adding more costs on these ratepayers while at the same time requiring them to sell their clean, home generated energy for less than its true value. In addition, facilities that produce energy on-site via distributed generation are better protected from large power outages than traditional customers who depend on the grid.
Michigan should encourage distributed generation instead of limiting it. Although the new plan increases allowed distributed generation to 10% from the previous 1% cap, we believe there should be no cap, giving the opportunity for all Michiganders to participate and decide how they want to use their energy. Senate Bill 438 would discourage distributed generation to the detriment of ratepayers, homeowners and businesses.
Subsidies
Some supporters of SB 438 have claimed that renewable energy and efficiency programs are being unfairly subsidized and that this bill restores market forces. What they don’t disclose, however, is that the fossil fuel industry received $502 billion in overall subsidies from U.S. taxpayers in 2012, according to a report from the International Monetary Fund. In comparison, the renewable energy industry (excluding biomass) received $24 billion in federal support in 2012, less than five percent the subsidization of fossil fuels.
In addition, the International Monetary Fund recently reported that fossil fuel pollution costs the world $5 trillion annually in public health and environmental problems. Pollution costs are externalized from the market and are another form of fossil fuel subsidization, balanced out by costs to people’s health and degradation to our natural resources. For an example right here in Michigan, a 2011 report from Environmental Health and Engineering, Inc. showed that particulate matter pollution (PM2.5) from Michigan’s nine oldest coal plants are costing $5.4 billion a year in public health costs.
When determining Michigan’s next energy policy, the legislature must also consider the context of excessive subsidies currently given to fossil fuel based suppliers. We encourage you to pass policies that even the playing field for sustainable forms of energy such renewable energy standards, energy optimization standards, fair pricing for distributed generation, and enabling community energy projects.
Out of State Spending
Michigan currently spends $22 billion a year importing fossil fuel into the state, for both transportation and power. We get 100% of our fuel for coal and nuclear energy and 80 percent of our natural gas from other states. Solar and wind are fuel free; once installed, the cost of energy is zero. That is all money that then gets spent in Michigan instead of sent out of state to import fuel. Our public policies should support renewable energy development and energy optimization instead of continuing our reliance on polluting and volatile fossil fuels like natural gas and coal.
Sierra Club’s Policy Recommendations
The Sierra Club specifically calls on the Michigan legislature to:
- Increase Michigan's renewable energy standard to 30% by 2030, as the Public Service Commission and Energy Office have all said is readily achievable.
- Increase Michigan's energy optimization standard from 1% to 2% annually.
- Remove the existing spending cap on Michigan's energy efficiency program.
- Ensure that "clean" or "renewable" energy is not redefined to include anything that emits greenhouse gasses or creates radioactive waste such as fossil fuels, nuclear energy, or energy from incinerating wastes.
- Ensure that electric ratepayers are able to produce their own energy to either use themselves or sell back to a utility company at full retail price, not a wholesale or lowered price.
- Remove the existing cap on net metering and all other regulatory barriers to distributed generation.
- Enable all individuals, organizations, places of worship and utilities to establish community renewable energy gardens, similar to the ones currently operated by Cherryland Electric Co-Op and proposed for the Lansing Board of Water and Light, and require investor-owned utilities to purchase generated energy from these entities.
For these reasons, we urge you to vote NO on SB 438. Votes pertaining to this bill will be included in the Sierra Club’s legislative scorecard.
Sincerely,
Mike Berkowitz
Legislative and Political Director
Sierra Club Michigan Chapter
Saturday, August 15, 2015
Michigan Chapter Update - August 15, 2015
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