LOW-INCOME ENERGY ASSISTANCE FUND S.B. 881:
SUMMARY OF INTRODUCED BILL
IN COMMITTEE
Senate Bill 881 (as introduced 5-22-24)
Sponsor: Senator Rick Outman
Committee: Energy and Environment
Date Completed: 6-5-24
CONTENT
The bill would amend Public Act 3 of 1939, the Public Service Commission law, to
modify the amount used by the Michigan Public Service Commission (MPSC) to
calculate a low-income energy assistance funding factor during each fiscal year.
Section 9t creates the Low-Income Energy Assistance Fund within the State Treasury, to
provide energy assistance for low-income households. The Department of Health and Human
Services, in consultation with the MPSC, must ensure that all money collected for the Fund
from a geographic area is returned, to the extent possible, to that geographic area.
Under the Act, the State Treasurer may receive money or other assets from any source for
deposit into the Fund, direct the investment of the Fund, and credit to the Fund interest and
earnings from Fund investments. Under the bill, on September 30 of each year, the State
Treasurer would have to determine the amount of money in the Fund that was not
appropriated for expenditure during the fiscal year.
Under the Act, the MPSC may, after an opportunity to comment, annually approve a low-
income energy assistance funding factor no later than July 31 of each year for the subsequent
fiscal year. The low-income energy assistance funding factor must be the same across all
customer classes and may not exceed $1. The amount used by the MPSC to calculate a low-
income energy assistance funding factor during each fiscal year may not exceed $50.0 million
minus the amount appropriated from the General Fund in that fiscal year for home energy
assistance and the amount remaining in the Low-Income Energy Assistance Fund from the
prior fiscal year. An electric utility, municipally-owned electric utility, or cooperative electric
utility that collects money for this purpose must remit that money to the State Treasurer for
deposit in the Fund on a monthly basis within 30 days after the last day in each calendar
month. The electric utility, municipally owned electric utility, or cooperative electric utility
must list the low-income energy assistance funding factor as a separate line item on each
customer's bill.
Under the bill, the amount used by the MPSC to calculate a low-income energy assistance
funding factor during each fiscal year could not exceed $50.0 million minus the designated
amount. "Designated amount" would mean an amount equal to the sum of the following:
-- The amount appropriated from the General Fund in the current fiscal year for home energy
assistance.
-- The amount of money in the Fund that was not appropriated for expenditure during the
fiscal year as determined by the State Treasurer.
MCL 460.9t Legislative Analyst: Nathan Leaman
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FISCAL IMPACT
The bill would have a minimal fiscal impact on the Department of Treasury and no fiscal impact
on local units of government. The Department of Treasury would experience minimal
additional costs to oversee the Low Income Energy Assistance Fund. Any additional costs
would be within current appropriations.
Fiscal Analyst: Cory Savino, PhD
SAS\S2324\s881sa
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official
statement of legislative intent.
Page 2 of 2 Bill Analysis @ www.senate.michigan.gov/sfa 881/2324


Statutes affected:
Substitute (S-1): 460.9
Senate Introduced Bill: 460.9
As Passed by the Senate: 460.9