LANSING, Mich. — Environmental and community-action groups are stepping up pressure on the chair of Michigan’s House Energy Committee in hopes of getting action on a bill to expand rooftop solar by ending the state’s 1% cap on distributed energy.
The effort by the Michigan League of Conservation Voters and other groups is targeting constituents in Republican Rep. Joe Bellino’s home of Monroe County to call on him to take action on HB 4236. The campaign, which includes online ads, billboards and advertisements, prompted more than 1,800 people to sign a Sierra Club-sponsored online letter backing the bill, with hundreds more in Monroe County contacting Bellino.
Bob Allison, deputy director of the LCV, said the campaign to push Bellino on the bill extends an effort begun last spring to shore up Democratic support as utility worker unions opposed the legislation. The state’s largest utilities, CMS Energy (NYSE:CMS) and DTE Energy (NYSE:DTE), also oppose it.
The new focus on Bellino is an effort to get movement on the bill, which was initially proposed in 2016, he said. “We’re drawing a line in the sand. We’re not going to be placated with a hearing and a pledge of later action. We want to see action now.”
Allison said it was critical to see some action on the legislation no later than June 2022, before all lawmaking is hung up in the election season. If the bill passes the House, Allison said he is fairly confident it would pass in the Republican-controlled Senate.
HB 4236 is a priority of energy and climate change activists, who have urged its passage to the House Energy Committee and the Michigan Council on Climate Solutions, which is now working on its final recommendations for Gov. Gretchen Whitmer (D).
Enacted in 2016, the current cap is based on 1% of the utility’s average peak load for the previous five years. Utilities can change that cap, and CMS has done so, lifting it to 2%.
Bellino could not be reached for comment. But in an interview recently with Gongwer News Service, Bellino said his committee has not killed the bill and he wants to see the cap increased to 6%.
The utilities have argued repeatedly that they are subsidizing distributed energy providers, mostly small solar systems, which they said have shifted costs for their use of the grid to other ratepayers.
CMS spokesperson Katie Carey said the utility supports raising the cap on distributed generation, but “only if it’s done in a way to address the subsidy.” Carey said CMS sees renewable energy as “an important part of Michigan’s clean energy future,” and the utility is “committed to developing solar” as part of its future plans.
A study for the Public Service Commission concluded there was no economic reason to maintain the limit. (See Mich. Enviros Use Report for New Push to Remove Solar Cap.) PSC Chair Dan Scripps and other commission officials have said there is no indication of any cost shift.
One organization joining LCV’s campaign, the Michigan Conservative Energy Forum (MICEF), has run an ad in one publication showing a tombstone and a headline: “The Solar Subsidy is Dead!”
“There is no solar subsidy,” the ad says. “Take action on residential & community solar legislation.”
HB 4236 is sponsored by a fellow Republican on the committee, Rep. Greg Markkanen from Michigan’s Upper Peninsula where rooftop solar installations are becoming more popular. He has complained Bellino has not acted on the bill largely because of utility influence.
Allison said Bellino has not put the bill up for a vote despite clear bipartisan support. Allison blamed much of that on large campaign contributions Bellino and others have received from the utilities. They have talked with the House Speaker, Rep. Jason Wentworth (R), in hopes he could persuade Bellino to act, but Wentworth prefers giving committee chairs deference.
“We’ve been working on this since 2016, and now we have a situation where a majority of committee members say they could pass it with bipartisan support,” Allison said.
“The only people standing in the way of this bill are DTE and Consumers,” Allison said. “Michiganders are tired of paying the highest rates, and they’re tired of DTE and Consumers buying and selling legislators.”
State politicians have come under fire in recent months for accepting utility campaign donations, particularly after massive summer storms led to utility blackouts for about 1 million customers in the Detroit area. In August, DTE sponsored a fundraiser for Whitmer that collected nearly $50,000.
To push for committee action, Allison said the campaign is focusing on the high cost of electricity in the state — Michigan has the highest average retail rate in the Midwest, said the Energy Information Administration — and ongoing issues with reliability. With climate change and years of little upgrading of utilities’ infrastructure, Allison said, it’s reasonable to expect massive storms and service disruptions will recur in the future.
LCV’s campaign is backed by the group Vote Solar, and the social engagement group Michigan United, which focuses mostly on equity and justice issues.
Allison said LCV and other supporters are happy to talk about a compromise solution to move the bill. Bellino’s proposal to raise the cap to 6% could be a good starting point for those discussions, he said.
In 2022, all 148 of Michigan’s legislators are up for election, and under its term-limit system, most of the 38 senators will not be eligible for re-election. The House also could face changes as many members seek to move to the upper chamber.
Michigan’s primary takes place in August. “The bill has got to get some real serious consideration in the first couple of quarters” to have a chance to pass in this legislative session, Allison said.