The bill amends the Clean and Renewable Energy and Energy Waste Reduction Act to establish new renewable energy credit portfolio requirements for electric providers in Michigan. Specifically, it mandates that electric providers achieve a renewable energy credit portfolio of at least 15% through 2029, 50% from 2030 to 2034, and 60% starting in 2035. The calculation of the renewable energy credit portfolio must now use the term "must" instead of "shall" in several instances, emphasizing the obligation of electric providers to meet these standards. Additionally, the bill outlines specific methods for calculating the portfolio, including options for cooperative and multistate electric providers, and stipulates that renewable energy credits must be produced within the regional transmission organization territory.

Furthermore, the bill introduces provisions for electric providers to substitute energy waste reduction credits for renewable energy credits under certain conditions, with a cap of 10% of the renewable energy credit standard. It also establishes a financial incentive for electric providers entering into purchase power agreements for renewable energy resources or clean energy systems, with the incentive calculated based on contract payments and the provider's cost of capital. The language of the bill includes various insertions and deletions to clarify obligations and processes, ensuring that electric providers adhere to the updated standards and requirements for renewable energy credits.

Statutes affected:
Senate Introduced Bill: 460.1028