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2023 Energy Legislation

Public Acts 229, 231, 233, 234, and 235 of 2023 were passed on November 8, 2023 and signed by Governor Gretchen Whitmer on November 28, 2023. These 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, were effective February 13, 2024. 

 

Public Act 235, which established the clean energy standard and updated the renewable energy standard was effective February 27, 2024. 

 

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

 

Taken as a whole, these four public acts impacted five key work areas at the Commission and directed the Commission to undertake three, one-time tasks. Below, you’ll find general information on each of these work areas and one-time tasks.

 

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 were also required to be updated in 2025 and every four years thereafter. 

Statutory Section: MCL 460.6t

Implementation Status: In Process

Lead Staff: Karsten Szajner

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

Implementation Status: In Process

Lead: Naomi Simpson

Statewide Energy Storage Target

Public Act 235 establishes a statewide energy storage target of 2,500 MW. 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. The MPSC implemented these provisions in Case No. U-21571

Statutory Section: MCL 460.1101

Implementation Status: Implementation Complete

Lead Staff: Jon DeCooman

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.  The MPSC implemented changes to renewable energy plans in Case No. U-21568.

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

Implementation Status: Implementation Complete

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. The MPSC implemented these provisions in Case No. U-21567.  PA 229 also directed the Commission to adopt a framework for the updated energy waste reduction programs of the independent program administrator, Efficiency United, and establish an Alternative Compliance Payment. The MPSC implemented these provisions in Case No. U-21654.

Statutory Sections: MCL 460.1071-1099

Implementation Status: Implementation Complete

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. The MPSC implemented these provisions in Case No. U-21569 and U-21767.  These changes necessitated review of interconnection standards and utility programs. The MPSC implemented these provisions in Case No. U-21455 et al

Statutory Section: MCL 460.1003, 1005, 1173, 1177

Implementation Status: Implementation Complete

Lead Staff: Cody Matthews

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.  The MPSC implemented these provisions in Case No. U-21547

Statutory Section: MCL 460.1221 – 460.1232 

Implementation Status: Implementation Complete

Lead Staff: Sarah Mullkoff

One-Time Projects 

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

UP Energy Study 

PA 235 directed 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.  The MPSC issued the report in Case No. U-21572.

Statutory Section: MCL 460.1051(5)

Implementation Status: Implementation Complete

Lead Staff: Marcy Champion and Zack Heidemann

Exploring opportunities to improve Commission Accessibility

PA 231 directed the Commission to open a proceeding to consider opportunities to expand opportunities for engagement in the Commission’s decision-making processes and procedures. The Commission opened the proceeding, MPSC Case No. U-21638 on May 23, 2024.  The comments received in the proceeding helped to inform the Commission’s Participation and Engagement Framework.

Statutory Section: MCL 460.6aa

Implementation Status: Implementation Complete

Lead Staff: Reka Holley-Voelker

Exploring opportunities to improve the Rate Case Process 

PA 231 directed the Commission to open a proceeding to consider opportunities for improving the process by which it reviews rate case applications. The Proceeding, MPSC Case No. U-21637, was opened on May 23, 2024.

Statutory Section: MCL 460.6aa

Implementation Status: In Process

Lead Staff: Bill Stosik