Legislative Analysis
Phone: (517) 373-8080
CERTAIN REPAIRS AS ENERGY CONSERVATION
http://www.house.mi.gov/hfa
House Bill 4465 as introduced Analysis available at
Sponsor: Rep. John R. Roth http://www.legislature.mi.gov
Committee: Energy, Communications, and Technology
Complete to 11-7-23
SUMMARY:
House Bill 4465 would amend the Clean and Renewable Energy and Energy Waste Reduction
Act to include incidental repairs that are necessary for the protection of other energy
conservation measures (for example, roof and gutter repairs) in the definition of the term
energy conservation for purposes of the act.
Energy conservation
The act generally defines energy conservation as the reduction of customer energy use through
the installation of measures or changes in energy usage behavior. 1
Energy conservation can be considered energy waste reduction under the act, but only to the
extent that decreases in the consumption of electricity produced by energy conservation are
objectively measurable and attributable to an energy waste reduction plan under section 71 of
the act. 2
Energy waste reductions plans are filed with the Michigan Public Service Commission (MPSC)
by electric and natural gas providers whose rates are subject to MPSC regulation. As described
in the act, the overall goal of an energy waste reduction plan is to help the provider’s customers
reduce energy waste and to reduce the future costs of provider service to customers. In
particular, an electric provider’s energy waste reduction plan must be designed to delay the
need for constructing new electric generating facilities and thereby protect consumers from
incurring the costs of that construction.
Among other provisions regarding energy waste reduction plans, the act requires the MPSC,
upon petition by a provider, to authorize the provider to capitalize all energy efficiency and
energy conservation equipment, materials, and installation costs with an expected economic
life greater than one year incurred in implementing its energy waste reduction plan, including
such costs paid to third parties, such as customer rebates and customer incentives.
In addition, the act requires the Office of Climate and Energy to do all of the following:
• Promote energy efficiency and energy conservation.
• Actively pursue increasing public awareness of energy conservation and energy
efficiency.
• Actively engage in energy conservation and energy efficiency efforts with providers.
1
The term energy conservation is used in four sections of the act, as shown in these links: section 5, section 89,
section 95, and section 133.
2
http://legislature.mi.gov/doc.aspx?mcl-460-1071
House Fiscal Agency Page 1 of 2
 • Engage in regional efforts to reduce demand for energy through energy conservation
and energy efficiency.
The act also requires the Department of Technology, Management, and Budget to create a web-
based system for tracking energy efficiency and energy conservation projects occurring in state
government.
Part 7 (Residential Energy Improvements)
The bill would not appear to affect residential energy projects programs under Part 7 of the act.
The terms energy conservation and energy waste reduction are not used in those provisions.3
MCL 460.1005
FISCAL IMPACT:
House Bill 4465 would not have a fiscal impact on any units of state or local government.
Legislative Analyst: Rick Yuille
Fiscal Analyst: Marcus Coffin
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
3
https://www.legislature.mi.gov/documents/mcl/pdf/mcl-295-2008-7..pdf
House Fiscal Agency HB 4465 as introduced Page 2 of 2


Statutes affected:
House Introduced Bill: 460.1005