The bill amends the "Clean and Renewable Energy and Energy Waste Reduction Act" to strengthen the requirements for electric and natural gas service providers in Michigan, focusing on energy waste reduction programs. It mandates that these providers establish and recover costs for such programs, ensuring that any savings are returned to customers. Key changes include the deletion of references to "renewable energy" and "clean energy," shifting the focus to energy waste reduction. The bill also introduces new definitions, such as "cleaner energy resources," and outlines the responsibilities of state agencies in relation to these initiatives, aiming to enhance energy security and improve air quality.

Additionally, the bill sets new financial incentives for energy providers that exceed energy waste reduction standards, establishes a statewide energy storage target of 2,500 megawatts by 2029, and modifies criteria for distributed generation programs. It reduces the maximum generation capacity for customers and lowers the cap on distributed generation programs. The commission is tasked with creating a certification and tracking program for energy waste reduction credits, ensuring compliance with new interconnection requirements. Overall, the bill seeks to improve the effectiveness of energy waste reduction programs while promoting renewable energy sources and maintaining grid reliability.