The bill amends the "Clean and Renewable Energy and Energy Waste Reduction Act" to modernize Michigan's energy policies, focusing on enhancing renewable energy and energy efficiency. Key updates include the insertion of new legal language that emphasizes private investment in renewable energy and the establishment of a wind energy resource zone board. The purpose of the act is modified to prioritize diversifying energy resources, improving energy security, and ensuring reliable energy supplies during extreme weather. Additionally, new definitions for terms such as "distributed generation," "energy efficiency," and "energy storage systems" are introduced, while outdated language is removed to streamline the regulatory framework for electric and natural gas providers.

Significant amendments also include lowering the participation limit for distributed generation programs from 10% to 1% of an electric utility's average in-state peak load, with specific allocations for different generator sizes. The bill establishes a statewide energy storage target of at least 2,500 megawatts and mandates competitive bidding processes for energy storage contracts. It also sets uniform interconnection requirements for eligible electric generators and ensures that distributed generation customers receive retail rates for electricity inflow while earning credits for outflow. Overall, these changes aim to facilitate the development of renewable energy resources, improve energy distribution efficiency, and ensure compliance with regulatory standards.

Statutes affected:
Substitute (H-3): 460.1001
House Introduced Bill: 460.1001
As Passed by the House: 460.1001